1 00:00:02,920 --> 00:00:05,680 Speaker 1: By from the Bloomberg and Directive Burgers studios. This is 2 00:00:05,720 --> 00:00:09,520 Speaker 1: Bloomberg day Break for Tuesday, July twelve two. Coming up 3 00:00:09,560 --> 00:00:13,120 Speaker 1: this hour, The Wall Street stock sell off continues this morning. 4 00:00:13,280 --> 00:00:16,520 Speaker 1: They says the worst of the energy crisis maybe ahead. 5 00:00:16,640 --> 00:00:19,280 Speaker 1: We are tracking the latest developments in the Twitter elon 6 00:00:19,360 --> 00:00:22,560 Speaker 1: musk saga and the January six Committee focuses on far 7 00:00:22,720 --> 00:00:26,040 Speaker 1: right groups and what former President Trump knew about their plans. 8 00:00:26,280 --> 00:00:28,640 Speaker 1: Officials want people in New York City to mask up 9 00:00:28,680 --> 00:00:32,120 Speaker 1: again indoors plus. Funeral services were held today for former 10 00:00:32,200 --> 00:00:35,559 Speaker 1: Japanese per Minister Robert On Michael bar More Ahead, I'm 11 00:00:35,600 --> 00:00:38,159 Speaker 1: John Stashward sports matchers or pitched the Mets to a 12 00:00:38,200 --> 00:00:40,600 Speaker 1: big win in Atlanta, and pet Delonso will be in 13 00:00:40,720 --> 00:00:45,800 Speaker 1: next week's Home One Dirty. That's All's trading ahead on 14 00:00:45,920 --> 00:00:50,000 Speaker 1: Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg 15 00:00:50,120 --> 00:00:54,120 Speaker 1: nine one, Washington, d C, Bloomberg one oh six one, Boston, 16 00:00:54,440 --> 00:00:59,040 Speaker 1: Bloomberg nine sixties and Francisco Sirius XM one nine team 17 00:00:59,080 --> 00:01:02,000 Speaker 1: and around the world down Bloomberg Radio dot com and 18 00:01:02,160 --> 00:01:09,000 Speaker 1: via the Bloomberg Business App. Good morning, I'm Nathan Hagar 19 00:01:09,360 --> 00:01:12,600 Speaker 1: and I'm Karen. Moscow and US index futures are lower 20 00:01:12,600 --> 00:01:14,440 Speaker 1: this morning. We're coming up to find the one on 21 00:01:14,480 --> 00:01:16,680 Speaker 1: Wall Street, and we check the markets every fifteen minutes 22 00:01:16,720 --> 00:01:19,840 Speaker 1: throughout the trading day. On Bloomberg and SMP futures are 23 00:01:19,880 --> 00:01:23,040 Speaker 1: down twenty one points down, futures down a hundred sixty eight, 24 00:01:23,360 --> 00:01:26,600 Speaker 1: and NASDAG futures down sixty three. The decks in Germany's 25 00:01:26,640 --> 00:01:29,280 Speaker 1: down six tenths of upper cent. The ten year treasury 26 00:01:29,280 --> 00:01:32,680 Speaker 1: of twenty thirty seconds yield two point nine zero percent, 27 00:01:32,760 --> 00:01:35,440 Speaker 1: and they yield on the two year two point nine 28 00:01:35,520 --> 00:01:39,199 Speaker 1: nine percent, and Bitcoin is at nineteen thousand, seven hundred 29 00:01:39,280 --> 00:01:43,080 Speaker 1: sixty dollars. Nathan Well Karen futures are adding to yesterday's losses, 30 00:01:43,080 --> 00:01:46,319 Speaker 1: which saw all three major indexes fall. Hardest hit was 31 00:01:46,360 --> 00:01:49,680 Speaker 1: the Nasdaq, which fell two into quarter percent. Still, Alan 32 00:01:49,760 --> 00:01:52,639 Speaker 1: zaffron Co, CEO at I e Q Capital says growth 33 00:01:52,640 --> 00:01:56,040 Speaker 1: stocks may be the place to invest. We are looking 34 00:01:56,120 --> 00:01:59,760 Speaker 1: forward at a slower growing economy, given what's happening with 35 00:01:59,800 --> 00:02:03,160 Speaker 1: the ED, given what's happened with a more heightened inflationary environment, 36 00:02:03,160 --> 00:02:06,559 Speaker 1: and so it is a setup for growth stocks to outperform. 37 00:02:06,640 --> 00:02:09,200 Speaker 1: Value stocks looking forward for quite some time. I e 38 00:02:09,320 --> 00:02:12,359 Speaker 1: Q Capital's Alan Zafferan says the upcoming earning season will 39 00:02:12,400 --> 00:02:14,959 Speaker 1: be key for the markets. Well, Nathan, The Wall Street 40 00:02:15,040 --> 00:02:18,000 Speaker 1: sell off spread to Asia overnight, both Japan's and EK 41 00:02:18,200 --> 00:02:21,560 Speaker 1: and Hong Kong's Hang Sang Index strat more than one percent. 42 00:02:21,919 --> 00:02:25,000 Speaker 1: Make at the recap from Bloomberg Daybreak, Asia anchor Brian 43 00:02:25,000 --> 00:02:28,440 Speaker 1: Curtis in Hong Kong, Asian stocks fell on concerns over 44 00:02:28,480 --> 00:02:32,360 Speaker 1: the economic outlook, high inflation, and China's issues with COVID. 45 00:02:32,800 --> 00:02:36,280 Speaker 1: The tech sectors struggled, sparking weakness in Japan, Hong Kong, 46 00:02:36,320 --> 00:02:39,239 Speaker 1: and China. The dollar pushed higher, up near the levels 47 00:02:39,280 --> 00:02:42,560 Speaker 1: that we saw in the panic over COVID. The euro 48 00:02:42,639 --> 00:02:45,680 Speaker 1: has edged closer to parody, with the greenback sapped by 49 00:02:45,720 --> 00:02:50,120 Speaker 1: Europe's energy crisis and fears of recession. Treasuries gained, taking 50 00:02:50,120 --> 00:02:54,040 Speaker 1: the tenure yield well below three percent. Bonds also rallied 51 00:02:54,120 --> 00:02:57,400 Speaker 1: in Australia. You know, Hong Kong, Brian Curtis, Bloomberg Daybreak, 52 00:02:57,440 --> 00:02:59,760 Speaker 1: All right, Brian, thank you well. Oil is lower this 53 00:03:00,040 --> 00:03:02,040 Speaker 1: running down two and a quarter per cent for West 54 00:03:02,080 --> 00:03:05,080 Speaker 1: Texas Intermediate at a hundred one dollar seventy five cents 55 00:03:05,080 --> 00:03:08,280 Speaker 1: of barrel. A COVID resurgence in China is adding to 56 00:03:08,400 --> 00:03:12,519 Speaker 1: concerns about a global economic slowdown. Fatty Barol, executive director 57 00:03:12,520 --> 00:03:15,120 Speaker 1: at the International Energy Agency, says the worst of the 58 00:03:15,240 --> 00:03:20,480 Speaker 1: energy crisis maybe ahead. The world has never witnessed such 59 00:03:20,639 --> 00:03:25,880 Speaker 1: a major energy crisis. It is interwoven by many factors, 60 00:03:26,200 --> 00:03:30,240 Speaker 1: including the geopolitics, and I believe we might not have 61 00:03:30,639 --> 00:03:34,320 Speaker 1: seen the worst of it yet. I e A Executive 62 00:03:34,360 --> 00:03:37,000 Speaker 1: director Fatty Barol says this winter in Europe will be 63 00:03:37,080 --> 00:03:41,000 Speaker 1: quote very, very difficult. Well. Investors are closely watching for 64 00:03:41,040 --> 00:03:44,440 Speaker 1: the release of June's Consumer Price Index tomorrow, Nathan. The 65 00:03:44,440 --> 00:03:46,800 Speaker 1: White House is giving an eye on it too. Press 66 00:03:46,800 --> 00:03:49,880 Speaker 1: Secretary Karine John Pierre says the inflation data will be 67 00:03:49,960 --> 00:03:54,400 Speaker 1: highly elevated, but she also notes it's backward looking. June's 68 00:03:54,440 --> 00:03:58,080 Speaker 1: CPI data is already out of date because energy prices 69 00:03:58,120 --> 00:04:01,680 Speaker 1: have come down substantially this month and are expected to 70 00:04:01,760 --> 00:04:05,840 Speaker 1: fall further. White House Karen John Billerre says food and 71 00:04:05,920 --> 00:04:09,080 Speaker 1: gas prices continue to be impacted by the war in Ukraine. 72 00:04:09,360 --> 00:04:12,680 Speaker 1: Economist surveyed by Bloomberg expect June prices to jump eight 73 00:04:12,720 --> 00:04:15,080 Speaker 1: point eight percent compared to last year, and that would 74 00:04:15,080 --> 00:04:17,680 Speaker 1: be a fresh forty year high. Well, Karen, we continue 75 00:04:17,720 --> 00:04:21,040 Speaker 1: to follow the saga between Elon Musk and Twitter. Shares 76 00:04:21,120 --> 00:04:24,880 Speaker 1: fell more than eleven percent yesterday for the social media company. 77 00:04:25,000 --> 00:04:28,160 Speaker 1: Let's get the latest live from Bloomberg's Rnita Young. Good morning, Rnita, 78 00:04:28,200 --> 00:04:32,000 Speaker 1: Good morning, Nathan. Twitter lawyers are calling Elon Musk's termination 79 00:04:32,080 --> 00:04:34,360 Speaker 1: of his forty four billion dollar deal to buy the 80 00:04:34,400 --> 00:04:38,320 Speaker 1: company invalid and wrongful. They wrote it in a letter 81 00:04:38,360 --> 00:04:41,200 Speaker 1: to his attorneys, and it's a preliminary step in the 82 00:04:41,320 --> 00:04:44,159 Speaker 1: legal battle over the deal. And Musk agreed to buy 83 00:04:44,200 --> 00:04:46,800 Speaker 1: Twitter for fifty four dollars and twenty cents a share 84 00:04:46,800 --> 00:04:49,960 Speaker 1: back in late April, but he terminated the agreement because 85 00:04:50,000 --> 00:04:53,600 Speaker 1: he believes Twitter misrepresented user data, claiming the number of 86 00:04:53,640 --> 00:04:56,479 Speaker 1: spambots on the platform is much higher than the five 87 00:04:56,520 --> 00:05:00,719 Speaker 1: percent the company has disclosed. Bloomberg sources say Twitter aims 88 00:05:00,720 --> 00:05:04,520 Speaker 1: to file suit early this week. The agreement specifies any 89 00:05:04,600 --> 00:05:07,880 Speaker 1: legal dispute over the deal must be heard in Delaware. 90 00:05:08,440 --> 00:05:11,159 Speaker 1: Live in New York. I'm gonna need a Young Bloomberg daybreak, 91 00:05:11,240 --> 00:05:13,360 Speaker 1: all right, We need to thank you well, one other note. 92 00:05:13,360 --> 00:05:15,800 Speaker 1: In the World's Richest Man This Morning, Elon must says 93 00:05:15,880 --> 00:05:18,680 Speaker 1: Donald Trump should quote sail into the sunset and forget 94 00:05:18,720 --> 00:05:21,360 Speaker 1: about running for president again, And a series of tweets 95 00:05:21,440 --> 00:05:24,440 Speaker 1: Must claim to that Florida Governor Rhonda Santis would easily 96 00:05:24,480 --> 00:05:27,480 Speaker 1: defeat President Biden. He also told his one hundred million 97 00:05:27,520 --> 00:05:30,200 Speaker 1: followers that there was too much drama when former President 98 00:05:30,200 --> 00:05:33,240 Speaker 1: Trump was in office. A meantime, Karen testimony on last 99 00:05:33,279 --> 00:05:36,080 Speaker 1: year's attack at the US Capital rolls on in Washington. 100 00:05:36,440 --> 00:05:39,000 Speaker 1: Up next the House January six committee focuses on the 101 00:05:39,080 --> 00:05:42,520 Speaker 1: roll of extremists in the insurrection. Bloomberg said Baxter has 102 00:05:42,600 --> 00:05:46,160 Speaker 1: the story. Committee member Jamie Raskin says it will continue 103 00:05:46,200 --> 00:05:48,480 Speaker 1: building on the case that Donald Trump had a hand 104 00:05:48,520 --> 00:05:51,760 Speaker 1: and trying to overthrow the results of the election and 105 00:05:51,920 --> 00:05:55,800 Speaker 1: led to the advance that day on January six, Raskin says, 106 00:05:55,800 --> 00:05:59,320 Speaker 1: we will focus on what's become known as Team Crazy, 107 00:05:59,360 --> 00:06:02,240 Speaker 1: a group of people around Trump, Sidney Pale, Rudy Giuliani 108 00:06:02,279 --> 00:06:05,320 Speaker 1: among them. Raskin says one of the meetings was unlike 109 00:06:05,360 --> 00:06:09,080 Speaker 1: anything in American history. Now. The committee has also announced 110 00:06:09,120 --> 00:06:12,320 Speaker 1: postponement a Thursday's hearing because it is getting so much 111 00:06:12,440 --> 00:06:16,840 Speaker 1: new information on White House ties in San Francisco. I'm 112 00:06:16,839 --> 00:06:19,680 Speaker 1: at Baxter Bloomberg Daybreak, and thank you. In corporate news 113 00:06:19,720 --> 00:06:22,799 Speaker 1: this morning, San Francisco based Gap has fired at CEO 114 00:06:23,000 --> 00:06:25,479 Speaker 1: Sonia Singal was dismissed after two and a half years 115 00:06:25,480 --> 00:06:27,440 Speaker 1: in the job. And we get the story from Bloomberg's 116 00:06:27,480 --> 00:06:31,440 Speaker 1: Charlie Pellett. The apparel company is struggling to leave operational 117 00:06:31,560 --> 00:06:35,960 Speaker 1: challenges behind it. Chairman Bob Martin is taking over immediately 118 00:06:36,080 --> 00:06:39,880 Speaker 1: as CEO on an interim basis. GAP shares aren't down 119 00:06:39,960 --> 00:06:43,239 Speaker 1: fifty percent this year, compared with a thirty percent dropped 120 00:06:43,279 --> 00:06:46,479 Speaker 1: for the S and P five hundred retailing index. Single 121 00:06:46,560 --> 00:06:50,120 Speaker 1: took over in early twenty right before Covid royaled the 122 00:06:50,160 --> 00:06:53,200 Speaker 1: business and demand. Prior to that, she was in charge 123 00:06:53,240 --> 00:06:56,840 Speaker 1: of the company's old Navy brand in New York. Charlie 124 00:06:56,839 --> 00:06:59,680 Speaker 1: Pellett Bloomberg Daybreak. All right, thank you, Charlie, and job 125 00:06:59,680 --> 00:07:02,600 Speaker 1: cuts are coming at Microsoft. The layoffs effect less than 126 00:07:02,640 --> 00:07:05,240 Speaker 1: one percent of the workforce and span a variety of groups, 127 00:07:05,240 --> 00:07:09,120 Speaker 1: including consulting and customer and partner solutions. Microsoft says the 128 00:07:09,120 --> 00:07:12,040 Speaker 1: cuts were not spurred by economic factors, but in May 129 00:07:12,080 --> 00:07:15,360 Speaker 1: the company slowed hiring in its windows and office groups. 130 00:07:15,360 --> 00:07:18,280 Speaker 1: Straight ahead your latest local headlines in the check of sports. 131 00:07:18,320 --> 00:07:25,080 Speaker 1: This is Bloomberg South five oh seven on Wall Street. 132 00:07:25,120 --> 00:07:27,840 Speaker 1: We are at seventy degrees in central parking looking at 133 00:07:27,880 --> 00:07:31,000 Speaker 1: twenty minute delays on the upper level of George Washington Bridge. 134 00:07:31,680 --> 00:07:34,520 Speaker 1: Use the lower more coming up in traffic First Michael 135 00:07:34,520 --> 00:07:36,120 Speaker 1: Barr with what else is going on in New York 136 00:07:36,160 --> 00:07:38,560 Speaker 1: and around the world. Good morning, Michael, Good morning Nathan. 137 00:07:38,600 --> 00:07:41,240 Speaker 1: The Department of Health is continuing to urge New York 138 00:07:41,240 --> 00:07:44,400 Speaker 1: City residents to wear masks in all public indoor settings 139 00:07:44,680 --> 00:07:48,560 Speaker 1: and in crowded areas outdoors because I went uptick in COVID. 140 00:07:49,000 --> 00:07:52,480 Speaker 1: It comes as the latest omicron variant B A point 141 00:07:52,520 --> 00:07:55,760 Speaker 1: five has become the dominant strain in the US. This 142 00:07:55,920 --> 00:07:59,760 Speaker 1: New Yorkers says people got lacks about masking. I think 143 00:08:00,080 --> 00:08:02,960 Speaker 1: the city's the government's gonna have a hard time getting 144 00:08:03,000 --> 00:08:06,400 Speaker 1: people back into mask Meanwhile, about two out of three 145 00:08:06,440 --> 00:08:10,000 Speaker 1: people in the US are fully vaccinated. Harvard Medical School 146 00:08:10,000 --> 00:08:14,680 Speaker 1: professor Dr John Brownstein says the evolution of variance unresponsive 147 00:08:14,760 --> 00:08:19,240 Speaker 1: to immunity from previous infection means we are likely going 148 00:08:19,280 --> 00:08:22,040 Speaker 1: to have to give up on the idea of her immunity. 149 00:08:22,320 --> 00:08:25,200 Speaker 1: You see this virus evolved quicker and quicker, and we'll 150 00:08:25,200 --> 00:08:28,160 Speaker 1: probably see another variant in the fall. So the main 151 00:08:28,240 --> 00:08:31,840 Speaker 1: question really is can we avert really serious outcomes like 152 00:08:32,000 --> 00:08:36,680 Speaker 1: deaths and hospitalizations. But inmiologist Dr John Brownstein is also 153 00:08:36,760 --> 00:08:41,000 Speaker 1: the Chief Innovation Officer at Boston Children's Hospital. Police in 154 00:08:41,000 --> 00:08:43,120 Speaker 1: New York City they're looking for a man they say 155 00:08:43,400 --> 00:08:46,360 Speaker 1: is targeting homeless people in a string of stabbing attacks. 156 00:08:46,679 --> 00:08:49,240 Speaker 1: The latest victim a twenty eight year old woman attacked 157 00:08:49,240 --> 00:08:52,800 Speaker 1: early yesterday. Police say the same man can be seen 158 00:08:52,880 --> 00:08:56,880 Speaker 1: on surveillance cameras in all three locations where homeless people 159 00:08:56,880 --> 00:08:59,439 Speaker 1: have been stabbed in the last week. The first stabbing 160 00:08:59,520 --> 00:09:01,920 Speaker 1: was on jo I Five. Thirty four year old man 161 00:09:01,960 --> 00:09:04,520 Speaker 1: resting on the bench was stabbed and later died from 162 00:09:04,559 --> 00:09:07,400 Speaker 1: his injuries. Three days later, a fifty nine year old 163 00:09:07,400 --> 00:09:11,440 Speaker 1: homeless man was stabbed in the abdomen. Japanese people have 164 00:09:11,559 --> 00:09:15,959 Speaker 1: said goodbye to former Prime Minister Shinzo Abe. A family 165 00:09:16,000 --> 00:09:19,640 Speaker 1: funeral was held at a temple days after his assassination 166 00:09:19,960 --> 00:09:23,600 Speaker 1: that shocked the nation. Abbe the country's longest serving prime minister, 167 00:09:23,760 --> 00:09:27,680 Speaker 1: who remained influential even after he stepped down two years ago, 168 00:09:28,120 --> 00:09:31,080 Speaker 1: was gunned down Friday during a campaign speech. The first 169 00:09:31,120 --> 00:09:34,160 Speaker 1: image from NASA's new Space Telescope is the deepest view 170 00:09:34,200 --> 00:09:37,720 Speaker 1: of the universe ever captured. The image from the James 171 00:09:37,720 --> 00:09:41,280 Speaker 1: Webb Space Telescope was unveiled at the White House President 172 00:09:41,320 --> 00:09:44,760 Speaker 1: Joe Biden. Light from the Oldest Galaxies, the oldest documented 173 00:09:44,880 --> 00:09:49,040 Speaker 1: light in the history of the universe, from over thirteen 174 00:09:49,320 --> 00:09:53,360 Speaker 1: billion Let me say that again, thirteen billion years ago. Today, 175 00:09:53,480 --> 00:09:57,160 Speaker 1: four more galactic shots will be released Global News twenty 176 00:09:57,160 --> 00:09:59,720 Speaker 1: four hours a day on air and on Bloomberg Quicktake 177 00:09:59,760 --> 00:10:02,040 Speaker 1: Power about more than twenty seven hundred journalists and antaalists, 178 00:10:02,080 --> 00:10:04,360 Speaker 1: more than a hundred twenty countries. Michael bar this is 179 00:10:04,400 --> 00:10:11,880 Speaker 1: Bloomberg naked alright, Michael, thank you almost five ten on 180 00:10:12,000 --> 00:10:14,160 Speaker 1: All Street time for the Bloomberg Sports up Take. Good morning, 181 00:10:14,200 --> 00:10:16,920 Speaker 1: John Sho, Good morning Nathan. The Mets are paying maxers 182 00:10:16,920 --> 00:10:19,679 Speaker 1: are at forty three million dollars a year. They are 183 00:10:19,720 --> 00:10:22,480 Speaker 1: doing that for games like last night in Atlanta. Mets 184 00:10:22,559 --> 00:10:24,400 Speaker 1: lead over the Braids once ten and a half games 185 00:10:24,400 --> 00:10:27,319 Speaker 1: at dwindled to one and a half thanks to Atlanta's 186 00:10:27,400 --> 00:10:30,000 Speaker 1: twenty nine and eight records since June one, they have 187 00:10:30,120 --> 00:10:33,360 Speaker 1: the best offense in the National League. Shars shut them down, 188 00:10:33,360 --> 00:10:35,480 Speaker 1: allowed only one hit over the first six sitting stuck 189 00:10:35,520 --> 00:10:37,760 Speaker 1: out and nine shows are in. The Mets beat the 190 00:10:37,760 --> 00:10:39,760 Speaker 1: Prey four to one. We want to play good baseball, 191 00:10:39,760 --> 00:10:42,240 Speaker 1: and especially this time of year. Uh. You know, they're 192 00:10:42,240 --> 00:10:43,880 Speaker 1: a great team over there, and you want to come 193 00:10:43,920 --> 00:10:46,800 Speaker 1: out there and play your best baseball. Uh. And you 194 00:10:46,840 --> 00:10:48,760 Speaker 1: know when you you can collect wins against them, and 195 00:10:49,200 --> 00:10:51,360 Speaker 1: you know, that's kind of a measuring stick win and 196 00:10:51,400 --> 00:10:54,120 Speaker 1: you know it's it's a good feeling. So um, you know. 197 00:10:54,280 --> 00:10:56,920 Speaker 1: But like you said, we're in one getting game here 198 00:10:56,960 --> 00:10:58,800 Speaker 1: in July. We gotta go out there and played, you know, 199 00:10:58,960 --> 00:11:01,280 Speaker 1: great months of John got a home run from Luisti 200 00:11:01,440 --> 00:11:04,120 Speaker 1: or may rbi double from Pete Alonso, Pete an ounce 201 00:11:04,160 --> 00:11:06,360 Speaker 1: he'll go for the home run derby three. Pete. He's 202 00:11:06,400 --> 00:11:09,400 Speaker 1: never not won it, the winner in two thousand nineteen 203 00:11:09,480 --> 00:11:12,040 Speaker 1: and last year didn't have it in the Braves. Ronald 204 00:11:12,040 --> 00:11:14,439 Speaker 1: the Kun you will be one of his competitors next 205 00:11:14,440 --> 00:11:16,600 Speaker 1: Monday in Los Angeles. Rest of the field not getting 206 00:11:16,640 --> 00:11:19,559 Speaker 1: off Yankee so Cincinnati Reds tonight at the Reds are swept, 207 00:11:19,600 --> 00:11:21,680 Speaker 1: Tampa Bay the Rays. Last night Pete the Red Stots 208 00:11:21,720 --> 00:11:24,280 Speaker 1: ten to five. As the British Open gets ready to 209 00:11:24,280 --> 00:11:27,360 Speaker 1: tee off Thursday at St. Andrew's. Still much talk about 210 00:11:27,400 --> 00:11:29,960 Speaker 1: the new Live Tour, with word that the Anti Trust 211 00:11:30,000 --> 00:11:33,640 Speaker 1: Division of the Justice Department is investigating whether the PG 212 00:11:33,800 --> 00:11:37,319 Speaker 1: eight Tour used anti competitive practices against the Lift Tour. 213 00:11:37,400 --> 00:11:40,360 Speaker 1: The PGA says it expected this and is confident there 214 00:11:40,400 --> 00:11:43,960 Speaker 1: was no wrongdoing. John stash Award Bloomberg Sports All right, 215 00:11:44,080 --> 00:11:47,520 Speaker 1: John thanks SMP futures down one staff, futures down a 216 00:11:47,600 --> 00:11:51,720 Speaker 1: hundred seventy six, dance at Futures down fifty nine points 217 00:11:51,800 --> 00:11:55,079 Speaker 1: ahead of tomorrow's CPI data that the White House already 218 00:11:55,160 --> 00:11:58,960 Speaker 1: says will be highly elevated. More on what the White 219 00:11:58,960 --> 00:12:01,920 Speaker 1: House has to say about an inflation next, Bloomberg Washington 220 00:12:01,920 --> 00:12:08,800 Speaker 1: correspondent Joe Matthew is coming up. Bloomberg. Gay Break is 221 00:12:08,800 --> 00:12:10,520 Speaker 1: brought to you by the New York Community Trust. Your 222 00:12:10,559 --> 00:12:12,360 Speaker 1: name will live on as a champion of the causes 223 00:12:12,400 --> 00:12:14,440 Speaker 1: you care about for years to come through a charitable 224 00:12:14,440 --> 00:12:17,160 Speaker 1: request to the New York Community Trust. Learn more at 225 00:12:17,200 --> 00:12:24,320 Speaker 1: philanthropists dot n y C markets headlines and breaking news 226 00:12:24,400 --> 00:12:27,000 Speaker 1: twenty four hours a day at Bloomberg dot com. The 227 00:12:27,040 --> 00:12:31,160 Speaker 1: Bloomberg Business Outland at Bloomberg Quick Tape is a Bloomberg 228 00:12:31,280 --> 00:12:39,960 Speaker 1: Business Flash and I'm Karen Moscow Stocks in u S 229 00:12:39,960 --> 00:12:42,959 Speaker 1: stock index futures are following this morning as the dollar 230 00:12:43,040 --> 00:12:46,960 Speaker 1: and sovereign vaughns rise a pattern highlighting pervasive unease about 231 00:12:47,000 --> 00:12:50,440 Speaker 1: the economic outlook amid high inflation and China struggles with COVID. 232 00:12:50,679 --> 00:12:53,079 Speaker 1: We checked the markets every fifteen minutes throughout the trading 233 00:12:53,160 --> 00:12:56,920 Speaker 1: day on Bloomberg S and P futures down down futures 234 00:12:56,920 --> 00:13:00,000 Speaker 1: and A hundred seventy five and NASDAG futures down fifty seven. 235 00:13:00,280 --> 00:13:02,679 Speaker 1: The decks in Germany's down six tenths of upper sent 236 00:13:02,840 --> 00:13:05,319 Speaker 1: ten year treasury of twenty thirty seconds held two point 237 00:13:05,400 --> 00:13:08,079 Speaker 1: nine one percent yield on the two year two point 238 00:13:08,160 --> 00:13:11,559 Speaker 1: nine eight percent. Ninemex screwed oil is down two point 239 00:13:11,600 --> 00:13:13,719 Speaker 1: eight percent, down two dollars eighty eight cents at a 240 00:13:13,800 --> 00:13:16,720 Speaker 1: hundred one dollars twenty four cents of barrel. Comex school 241 00:13:16,840 --> 00:13:18,280 Speaker 1: is up a tenth of a percent of a dollar 242 00:13:18,400 --> 00:13:22,640 Speaker 1: sixty at seventeen thirty three fifty announced the euro one 243 00:13:22,720 --> 00:13:25,800 Speaker 1: against the dollar, the British pound one point one eight 244 00:13:26,000 --> 00:13:28,480 Speaker 1: to one, and the end is at one thirty seven 245 00:13:28,559 --> 00:13:31,480 Speaker 1: point to zero. Looking at a big coin at this morning, 246 00:13:31,520 --> 00:13:34,520 Speaker 1: down more than three percent at nineteen thousand, seven hundred 247 00:13:34,600 --> 00:13:37,160 Speaker 1: seventy dollars. And today we are watching for a report 248 00:13:37,200 --> 00:13:39,839 Speaker 1: on small business optimism amount at six o'clock Wall Street 249 00:13:39,840 --> 00:13:43,120 Speaker 1: time and PepsiCo. I'm on company schedule to report earnings 250 00:13:43,160 --> 00:13:46,120 Speaker 1: and that's a balloon Berg business flash. Now here's Michael 251 00:13:46,120 --> 00:13:48,640 Speaker 1: Barr with more on what's going on around the world. Muncle, 252 00:13:48,640 --> 00:13:51,280 Speaker 1: Good morning, Good morning care. In another public hearing today 253 00:13:51,400 --> 00:13:55,679 Speaker 1: by the Congressional Committee investigating the deadly January sixth insurrection, 254 00:13:56,160 --> 00:13:59,319 Speaker 1: This hearing will focus on the involvement of white supremacists 255 00:13:59,480 --> 00:14:02,640 Speaker 1: hate wops in the attack on the Capitol and feature 256 00:14:02,679 --> 00:14:06,760 Speaker 1: testimony by former White House Consul Pat Sabloni, whom investigators 257 00:14:06,760 --> 00:14:11,240 Speaker 1: say cooperates former White House aid Cassidy Hutchinson. People in 258 00:14:11,280 --> 00:14:13,640 Speaker 1: Japan to bid their final goodbye to former Prime Minister 259 00:14:13,679 --> 00:14:17,240 Speaker 1: Shinzo Abe. Family funeral was held at the Temple days 260 00:14:17,280 --> 00:14:21,080 Speaker 1: after his assassination that shocked the nation. In baseball, the 261 00:14:21,120 --> 00:14:24,880 Speaker 1: Mets one, red, Sox, A's and Giants lost. Global news 262 00:14:24,920 --> 00:14:27,000 Speaker 1: twenty four hours a day on a or and on 263 00:14:27,080 --> 00:14:30,640 Speaker 1: Bloomberg Quicktake, powered by more than twenty seven hun journalists 264 00:14:30,640 --> 00:14:33,440 Speaker 1: and analysts more than a hundred twenty countries. Michael Barr 265 00:14:33,480 --> 00:14:35,880 Speaker 1: and this is Bloomberg Natham. All right, Michael. Thanks, It's 266 00:14:35,920 --> 00:14:38,760 Speaker 1: five nineteen on Wall Street Live from the Bloomberg Interactive 267 00:14:38,760 --> 00:14:43,560 Speaker 1: Broker Studios. This is Bloomberg Daybreak. Investors are waiting closely 268 00:14:43,640 --> 00:14:46,840 Speaker 1: for the consumer price data that's coming out tomorrow for 269 00:14:46,840 --> 00:14:49,120 Speaker 1: the month of June. The White House is watching for 270 00:14:49,200 --> 00:14:52,480 Speaker 1: it as well, and already warning that it expects June 271 00:14:52,520 --> 00:14:56,520 Speaker 1: consumer prices to be highly elevated. Let's head over to 272 00:14:56,560 --> 00:14:59,320 Speaker 1: the nation's capital. Lots going on there, so we're pleased 273 00:14:59,320 --> 00:15:02,359 Speaker 1: to be joined out by Joe Matthew, Bloomberg, Washington correspondent, 274 00:15:02,400 --> 00:15:06,360 Speaker 1: host of sound On on Bloomberg Radio. Joe, good morning. 275 00:15:06,440 --> 00:15:08,840 Speaker 1: Sounds like the White House is really trying to get 276 00:15:08,880 --> 00:15:12,280 Speaker 1: out in front of tomorrow's inflation data based on what we 277 00:15:12,240 --> 00:15:14,360 Speaker 1: we heard from the White House Press Secretary yesterday, and 278 00:15:14,560 --> 00:15:16,560 Speaker 1: we saw this a month ago as well, and trying 279 00:15:16,560 --> 00:15:18,440 Speaker 1: to say, look, this is gonna be tough. Remember that 280 00:15:18,560 --> 00:15:21,320 Speaker 1: they were trying to delineate the difference for the brief 281 00:15:21,320 --> 00:15:23,640 Speaker 1: the reporters in the briefing room who are not mostly 282 00:15:23,680 --> 00:15:26,320 Speaker 1: financial reporters, and for people in their living rooms, the 283 00:15:26,360 --> 00:15:30,160 Speaker 1: difference between headline and core inflation. It's going over the 284 00:15:30,160 --> 00:15:31,960 Speaker 1: heads of a lot of people to at this time 285 00:15:32,000 --> 00:15:34,440 Speaker 1: around highly elevated to your point. Was the word from 286 00:15:35,520 --> 00:15:39,240 Speaker 1: or the phrase from the Press Secretary Karine Jean Pierre, 287 00:15:39,560 --> 00:15:43,000 Speaker 1: who said the reading as well, was already out of date. 288 00:15:43,040 --> 00:15:47,280 Speaker 1: Now that that's really where the White House is going here. Look, Nathan, 289 00:15:47,320 --> 00:15:50,240 Speaker 1: it's gonna be bad, but guess what, it's already out 290 00:15:50,240 --> 00:15:53,440 Speaker 1: of date. It's a rear view looking indicator. And we 291 00:15:53,480 --> 00:15:55,920 Speaker 1: know that prices have come down a bit since this 292 00:15:56,600 --> 00:15:58,840 Speaker 1: was taken. But of course, if you do this for 293 00:15:58,880 --> 00:16:01,640 Speaker 1: a living, like you do ethan Uh, you note that 294 00:16:01,720 --> 00:16:07,560 Speaker 1: all economic data is right and absolutely and it raises 295 00:16:07,600 --> 00:16:10,080 Speaker 1: the question as we try to look forward here what 296 00:16:10,160 --> 00:16:11,920 Speaker 1: the White House is doing about it. We also heard 297 00:16:11,920 --> 00:16:14,520 Speaker 1: from Karine John Pierre saying that the President has been 298 00:16:14,840 --> 00:16:18,200 Speaker 1: laser focused on getting prices down. That's also a message 299 00:16:18,200 --> 00:16:20,120 Speaker 1: that we've been hearing for the last couple of months. Yeah, 300 00:16:20,120 --> 00:16:22,400 Speaker 1: and we hear it just about every day from from 301 00:16:22,440 --> 00:16:25,200 Speaker 1: most of his surrogates who were out their cabinet secretaries 302 00:16:25,240 --> 00:16:29,479 Speaker 1: and the President himself. You could ask them something about Christmas, 303 00:16:29,920 --> 00:16:32,800 Speaker 1: Nathan whatever, come up with any the the answer will 304 00:16:32,840 --> 00:16:35,920 Speaker 1: be preceded by just a reminder that this president is 305 00:16:36,000 --> 00:16:39,000 Speaker 1: laser focused on inflation. It is his top domestic priority, 306 00:16:39,040 --> 00:16:41,600 Speaker 1: and that's partly why he's getting on an airplane tonight 307 00:16:41,640 --> 00:16:43,080 Speaker 1: to go to the Middle East in an attempt to 308 00:16:43,120 --> 00:16:46,480 Speaker 1: secure more oil resources. But of course energy is only 309 00:16:46,560 --> 00:16:48,760 Speaker 1: part of this inflation story, and we're gonna see that 310 00:16:49,040 --> 00:16:51,240 Speaker 1: come to bear in the CPI report. Is that really 311 00:16:51,280 --> 00:16:54,280 Speaker 1: gonna be the focus of what President Biden is looking 312 00:16:54,320 --> 00:16:56,400 Speaker 1: for when he heads to Saudi Arabia? I mean a 313 00:16:56,440 --> 00:16:58,960 Speaker 1: lot of the critics of the President have been saying 314 00:16:58,960 --> 00:17:01,960 Speaker 1: he's going hat in hand. Well, that's right, more energy, 315 00:17:02,160 --> 00:17:04,240 Speaker 1: and the White House has been careful to try to 316 00:17:04,280 --> 00:17:07,720 Speaker 1: manage the messaging around this. Look, he's clearly going to 317 00:17:07,800 --> 00:17:10,400 Speaker 1: be looking for more oil output, but the White House 318 00:17:10,480 --> 00:17:12,600 Speaker 1: is framing this is more of a security trip. He's 319 00:17:12,600 --> 00:17:15,480 Speaker 1: going to Israel first, it's gonna visit the West Bank. 320 00:17:15,560 --> 00:17:18,320 Speaker 1: Then he gets on an airplane and flies to jetto where, 321 00:17:18,359 --> 00:17:21,680 Speaker 1: and he'll be asking that all OPEC members increased production. 322 00:17:21,760 --> 00:17:24,199 Speaker 1: But look, if you if you read Bloomberg, if you 323 00:17:24,240 --> 00:17:26,560 Speaker 1: have a terminal, you know that Saudi Arabia and the 324 00:17:26,640 --> 00:17:28,399 Speaker 1: U a E are the only members of OPEC with 325 00:17:28,440 --> 00:17:31,960 Speaker 1: any real spare capacity. And there are questions about that, 326 00:17:32,359 --> 00:17:34,600 Speaker 1: not just their ability to pump more, but say we 327 00:17:34,640 --> 00:17:37,159 Speaker 1: get a whole bunch more crude, we gotta gush your Nathan. 328 00:17:37,760 --> 00:17:40,600 Speaker 1: It's only part of the story because US refineries are 329 00:17:40,640 --> 00:17:44,560 Speaker 1: of course already at nine capacity, so it's unclear that 330 00:17:44,600 --> 00:17:46,679 Speaker 1: we'd be able to do a lot with that oil 331 00:17:46,720 --> 00:17:49,160 Speaker 1: to lower gas prices in the time we have left. Joe. 332 00:17:49,200 --> 00:17:51,800 Speaker 1: We have another January sixth hearing coming up later on 333 00:17:51,840 --> 00:17:54,879 Speaker 1: this afternoon. It's gonna be focused on extremist groups. Give 334 00:17:54,960 --> 00:17:57,520 Speaker 1: us a little more of a setup. Extremist groups like 335 00:17:57,600 --> 00:18:00,199 Speaker 1: the Proud Boys, like the oath Keepers. The members of 336 00:18:00,240 --> 00:18:02,960 Speaker 1: this committee, Democrats and Republicans, are hoping to try to 337 00:18:03,000 --> 00:18:07,320 Speaker 1: start connecting the dots, the convergence that Congressman Jamie Raskin 338 00:18:07,400 --> 00:18:10,480 Speaker 1: has talked about. We're just not clear, Nathan, on whether 339 00:18:10,560 --> 00:18:12,560 Speaker 1: this is going to be directly from the White House 340 00:18:12,600 --> 00:18:15,000 Speaker 1: some sort of through some sort of back channels or 341 00:18:15,119 --> 00:18:18,480 Speaker 1: or indirect leaves, a convergence that just happened to take 342 00:18:18,520 --> 00:18:21,280 Speaker 1: place because people were reading the President's tweets. That's what 343 00:18:21,320 --> 00:18:23,520 Speaker 1: we have yet to learn. How much are we expecting 344 00:18:23,720 --> 00:18:27,399 Speaker 1: former White House counsel Hat Sipoloni's closed or testimony from 345 00:18:27,480 --> 00:18:29,639 Speaker 1: last week to factor and they will This woul be 346 00:18:29,680 --> 00:18:31,840 Speaker 1: a big part of the hearing. Of course, they're not 347 00:18:31,880 --> 00:18:33,439 Speaker 1: going to see it in long form, but like we 348 00:18:33,520 --> 00:18:36,879 Speaker 1: have in other interviews other testimony, they'll use clips to 349 00:18:36,960 --> 00:18:40,399 Speaker 1: corroborate what we heard from witnesses like Cassidy Hutchinson, knowing 350 00:18:40,760 --> 00:18:43,000 Speaker 1: that Sippoloni was in the room for a lot of 351 00:18:43,040 --> 00:18:46,840 Speaker 1: those uh, really outrageous events that she described in her 352 00:18:46,920 --> 00:18:50,160 Speaker 1: recent testimony. And we've also gotten word in our last 353 00:18:50,160 --> 00:18:53,760 Speaker 1: thirty seconds here that the next hearing after today has 354 00:18:53,800 --> 00:18:57,639 Speaker 1: been postponed. Is part of that because of the Steve 355 00:18:57,680 --> 00:19:01,000 Speaker 1: Bannon situation. It may well be Look, this was supposed 356 00:19:01,040 --> 00:19:03,240 Speaker 1: to be in prime time on Thursday night. This was 357 00:19:03,240 --> 00:19:06,320 Speaker 1: gonna be the big finale. It has been postponed. We're 358 00:19:06,320 --> 00:19:08,480 Speaker 1: not sure exactly when it's gonna take place, likely in 359 00:19:08,480 --> 00:19:11,760 Speaker 1: the next week. But yes, Donald Trump cleared Bannon to testify, 360 00:19:11,880 --> 00:19:14,280 Speaker 1: giving up executive privilege in this case that could lead 361 00:19:14,280 --> 00:19:17,840 Speaker 1: to some pretty dramatic testimony. Trump wants someone on that panel, 362 00:19:17,920 --> 00:19:21,119 Speaker 1: Nathan or testifying before that committee, to come to his 363 00:19:21,200 --> 00:19:22,919 Speaker 1: defense and thinks Bannon is the one to do it. 364 00:19:23,320 --> 00:19:26,240 Speaker 1: Joe Matthew Bloomberg Washington Correspondent, and of course much more 365 00:19:26,240 --> 00:19:30,480 Speaker 1: to come on sound on every weekday on Bloomberg Radio 366 00:19:30,640 --> 00:19:33,560 Speaker 1: five pm Wall Street Time. We'll be checking back with 367 00:19:33,640 --> 00:19:36,080 Speaker 1: Joe as well later on in this program here on 368 00:19:36,160 --> 00:19:39,800 Speaker 1: Bloomberg and Daybreak. Looking ahead to the market open this morning, 369 00:19:40,080 --> 00:19:43,760 Speaker 1: UH stocks are poised for more losses. Right now, SMP 370 00:19:43,920 --> 00:19:47,639 Speaker 1: futures are down twenty three points down, futures down eight 371 00:19:47,920 --> 00:19:51,920 Speaker 1: NASTAC futures down sixty six. The ten year treasury up 372 00:19:52,040 --> 00:19:55,720 Speaker 1: nineteen thirty seconds, yield two point nine one percent, yield 373 00:19:55,760 --> 00:19:58,640 Speaker 1: on the two year even higher two point nine nine percent. 374 00:19:59,040 --> 00:20:03,440 Speaker 1: The euro point zero zero zero five against the dollar. 375 00:20:03,880 --> 00:20:09,399 Speaker 1: This is Bloomberg Bloomberg eleven three oh Weather chance drafting 376 00:20:09,440 --> 00:20:12,280 Speaker 1: in showers and thunderstorms today. Some of them could be strong, 377 00:20:12,359 --> 00:20:15,920 Speaker 1: as we had a near ninety degrees near ninety again tomorrow. 378 00:20:16,000 --> 00:20:19,640 Speaker 1: Upper eighties by Thursday right now seventy in Central Park, 379 00:20:25,080 --> 00:20:29,600 Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York, 380 00:20:29,720 --> 00:20:34,360 Speaker 1: Bloomberg E Living Free to Washington, d C. Bloomberg to Boston, 381 00:20:34,480 --> 00:20:38,280 Speaker 1: Bloomberg one oh six one to San Francisco, Bloomberg sixty 382 00:20:38,440 --> 00:20:41,040 Speaker 1: to the country, Sirius XM to the one nine team, 383 00:20:41,160 --> 00:20:44,680 Speaker 1: and around the globe the Bloomberg Business and Bloomberg Radio 384 00:20:44,760 --> 00:20:53,879 Speaker 1: dot Com. This is Bloomberg Daybreak. HiT's five thirty on 385 00:20:53,880 --> 00:20:57,000 Speaker 1: Wall Street Coomboarding. I'm Nathan Hager and I'm Karen Moscow. 386 00:20:57,040 --> 00:20:59,480 Speaker 1: We are just about four hours away from the open 387 00:20:59,520 --> 00:21:01,280 Speaker 1: of US trading. Let's get you have to date on 388 00:21:01,320 --> 00:21:03,399 Speaker 1: the news you need to know. At this hour, US 389 00:21:03,480 --> 00:21:07,280 Speaker 1: futures are lower, adding to yesterday's losses, which saw all 390 00:21:07,400 --> 00:21:11,439 Speaker 1: three major indexes slump. Mike vocals Sang, chief investment officer 391 00:21:11,520 --> 00:21:14,320 Speaker 1: at cap Trust, says, at this point, it's unclear how 392 00:21:14,359 --> 00:21:17,480 Speaker 1: markets are pricing in a recession. This recession has been 393 00:21:17,520 --> 00:21:20,480 Speaker 1: so anticipated that it's far to believe the market hasn't 394 00:21:20,520 --> 00:21:22,840 Speaker 1: discounted most of it. Maybe the surprise will be that 395 00:21:22,880 --> 00:21:25,840 Speaker 1: it's that it's really really a negative and difficult and 396 00:21:25,880 --> 00:21:28,520 Speaker 1: deep recession. We don't think so. It also could be 397 00:21:28,600 --> 00:21:30,320 Speaker 1: that we don't really hit a recession. We're like a 398 00:21:30,440 --> 00:21:32,879 Speaker 1: stone skipping off the top of the pond and moving 399 00:21:32,920 --> 00:21:35,400 Speaker 1: on and back up again. That's the question I think, 400 00:21:35,440 --> 00:21:37,000 Speaker 1: and I think we're going to know a lot more 401 00:21:37,040 --> 00:21:39,800 Speaker 1: about that as we had into earning season later this 402 00:21:39,840 --> 00:21:42,359 Speaker 1: week and then the next couple of weeks. Mike vocals 403 00:21:42,400 --> 00:21:45,320 Speaker 1: Sang at Cap Trust as forward guide and from companies 404 00:21:45,359 --> 00:21:47,840 Speaker 1: will be watched closely over the next few weeks. Now, 405 00:21:47,840 --> 00:21:51,080 Speaker 1: the Wall Street Cell Office spreading overseas Karen Japan's NIEK 406 00:21:51,240 --> 00:21:54,320 Speaker 1: and Hong Kong's Hang Sang Index both dropped more than 407 00:21:54,400 --> 00:21:58,119 Speaker 1: one percent overnight over concerns of inflation and COVID in China. 408 00:21:58,480 --> 00:22:01,320 Speaker 1: Oil is moving lower as as well. Checking prices now 409 00:22:01,440 --> 00:22:04,800 Speaker 1: Nimex cruge down two point seven hundred one dollar thirty 410 00:22:04,800 --> 00:22:07,200 Speaker 1: one cents of barrel Brent is down two point four 411 00:22:07,240 --> 00:22:09,920 Speaker 1: percent at a hundred four dollars fifty four cents. Well, 412 00:22:09,920 --> 00:22:13,000 Speaker 1: investors are looking ahead to the release of June's Consumer 413 00:22:13,080 --> 00:22:16,280 Speaker 1: Price indext tomorrow, Nathan, and so is the White House 414 00:22:16,359 --> 00:22:20,280 Speaker 1: Press Secretary Karine Jeanpierre says prices continue to be impacted 415 00:22:20,320 --> 00:22:23,119 Speaker 1: by the war in Ukraine. We got here with the 416 00:22:23,840 --> 00:22:27,280 Speaker 1: with the increase of gas prices and food prices because 417 00:22:27,400 --> 00:22:30,800 Speaker 1: of Mr. Putin's war in Ukraine. White House Smoke showman 418 00:22:30,880 --> 00:22:34,440 Speaker 1: Karine Jeanpierre says the latest inflation data will be elevated, 419 00:22:34,480 --> 00:22:37,520 Speaker 1: but also notes it's backward looking. While we're continuing to 420 00:22:37,520 --> 00:22:40,440 Speaker 1: follow the saga between Elon Musk and Twitter. This morning, 421 00:22:40,480 --> 00:22:43,560 Speaker 1: Karen after it shares a Twitter fell eleven percent yesterday. 422 00:22:43,640 --> 00:22:46,960 Speaker 1: Bloomberg's Rnita Young joins us Live. Good morning, Ranita, Good morning, Nathan. 423 00:22:47,000 --> 00:22:50,560 Speaker 1: Twitter lawyers are calling Elon Musk's termination of his forty 424 00:22:50,600 --> 00:22:54,840 Speaker 1: four billion dollar deal to buy the company invalid and wrongful. 425 00:22:55,119 --> 00:22:57,320 Speaker 1: They wrote it in a letter to his attorneys, and 426 00:22:57,400 --> 00:23:00,280 Speaker 1: it's a preliminary step in the legal battle over the deal. 427 00:23:00,680 --> 00:23:03,200 Speaker 1: And Musk agreed to buy Twitter for fifty four dollars 428 00:23:03,240 --> 00:23:06,080 Speaker 1: in twenty cents a share, but he terminated the agreement, 429 00:23:06,160 --> 00:23:09,119 Speaker 1: claiming the number of spam bots on the platform is 430 00:23:09,200 --> 00:23:13,119 Speaker 1: much higher than the company disclosed. Bloomberg sources say Twitter 431 00:23:13,160 --> 00:23:16,600 Speaker 1: aims to file suit early this week. Live in New York. 432 00:23:16,640 --> 00:23:19,000 Speaker 1: I'm gonna need a Young Bloomberg Daybreak, All right, rened 433 00:23:19,040 --> 00:23:21,520 Speaker 1: to thank you and sticking with corporate news. Job cuts 434 00:23:21,520 --> 00:23:24,560 Speaker 1: are coming at Microsoft. Layoffs are affecting less than one 435 00:23:24,600 --> 00:23:27,200 Speaker 1: percent of its workforce, and the company says cuts were 436 00:23:27,280 --> 00:23:31,200 Speaker 1: not spurred by economic factors. Sure had your latest local 437 00:23:31,200 --> 00:23:38,400 Speaker 1: headlines plus a check of sports. This is Bloomberg. Thanks 438 00:23:39,280 --> 00:23:41,719 Speaker 1: on Wall Street. Seventy degrees in Central Park construction as 439 00:23:41,800 --> 00:23:44,920 Speaker 1: eighth Avenue closed from forty to Columbus Circle. More coming 440 00:23:45,000 --> 00:23:47,040 Speaker 1: up in traffic. First Michael Barr with more on what's 441 00:23:47,080 --> 00:23:48,920 Speaker 1: going on in New York and around the world. Michael, 442 00:23:48,960 --> 00:23:51,639 Speaker 1: thank you very much, Nathan. The January six Committee is 443 00:23:51,640 --> 00:23:54,840 Speaker 1: preparing to highlight how violent extremist groups answered what one 444 00:23:54,920 --> 00:23:58,840 Speaker 1: lawmaker says was Donald Trump's siren call to come to 445 00:23:58,880 --> 00:24:01,600 Speaker 1: Washington and attack the capital. The panel is set to 446 00:24:01,600 --> 00:24:05,520 Speaker 1: convene today. The committee is probing whether extremist groups coordinated 447 00:24:05,560 --> 00:24:08,480 Speaker 1: with White House allies ahead of the violence. Police in 448 00:24:08,520 --> 00:24:10,480 Speaker 1: New York City are looking for a man, they say 449 00:24:10,520 --> 00:24:13,760 Speaker 1: staff the twenty eight year old homeless woman early Monday. 450 00:24:13,920 --> 00:24:16,639 Speaker 1: They say the suspect is behind similar attacks in the 451 00:24:16,680 --> 00:24:20,160 Speaker 1: past week, including one that was fatal. Police say they 452 00:24:20,200 --> 00:24:22,960 Speaker 1: have video and photos of the same man at all 453 00:24:23,040 --> 00:24:27,480 Speaker 1: three locations. The latest omicron variant B A point five 454 00:24:27,840 --> 00:24:30,040 Speaker 1: has become the dominant strain in the U S. As 455 00:24:30,119 --> 00:24:33,960 Speaker 1: COVID cases increase, cities like New York and Los Angeles 456 00:24:34,040 --> 00:24:37,040 Speaker 1: are asking people to mask up indoors and in crowded areas. 457 00:24:37,320 --> 00:24:40,000 Speaker 1: This New Yorker says, though masking is not enough to 458 00:24:40,040 --> 00:24:43,720 Speaker 1: avoid COVID, people should remember even more important as washing 459 00:24:43,760 --> 00:24:48,439 Speaker 1: your hands. That's actually, that's actually as important, if not 460 00:24:48,560 --> 00:24:51,679 Speaker 1: more important, than the masking. Health officials across the nations 461 00:24:51,680 --> 00:24:54,440 Speaker 1: say the US is still averaging about one hundred thousand 462 00:24:54,520 --> 00:24:57,960 Speaker 1: cases a day. The family funeral was held today for 463 00:24:58,200 --> 00:25:02,080 Speaker 1: Japan's former Prime Ministrations Ambe. A motorcade including a hers 464 00:25:02,200 --> 00:25:06,000 Speaker 1: slowly drove by a packed crowd to the funeral. This 465 00:25:06,040 --> 00:25:09,480 Speaker 1: man was among the crowd of mourners. Mrs is one 466 00:25:09,520 --> 00:25:13,880 Speaker 1: of the greatest uh prime minister in the Japanese history, 467 00:25:14,359 --> 00:25:17,160 Speaker 1: and a lot of people look out to a lot 468 00:25:17,200 --> 00:25:20,600 Speaker 1: of people, and we're so sad that we lost him. 469 00:25:21,400 --> 00:25:24,920 Speaker 1: Only Abbe's widow, close family members, and senior party leaders, 470 00:25:24,960 --> 00:25:29,119 Speaker 1: including Prime Minister Fumio Kashita, attended the service. The Chief 471 00:25:29,240 --> 00:25:32,520 Speaker 1: Judge of New York's Court of Appeals says you will 472 00:25:32,520 --> 00:25:35,159 Speaker 1: step down after more than six years presiding at the 473 00:25:35,160 --> 00:25:39,359 Speaker 1: state's highest court. Judge Janet di Fiori, who is sixty six, 474 00:25:39,760 --> 00:25:41,720 Speaker 1: says she will leave at the end of August and 475 00:25:41,800 --> 00:25:44,359 Speaker 1: move on to the next chapter of her professional life. 476 00:25:44,800 --> 00:25:47,359 Speaker 1: Global News twenty four hours a day on air and 477 00:25:47,480 --> 00:25:50,720 Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred 478 00:25:50,760 --> 00:25:53,200 Speaker 1: journalists and analysts more than a d twenty countries. I'm 479 00:25:53,240 --> 00:25:55,800 Speaker 1: Michael barn This is Bloomberg. Nath It Michael, thank you 480 00:26:01,240 --> 00:26:03,119 Speaker 1: on All Street time for the Bloomberg Sports Upthing with 481 00:26:03,200 --> 00:26:05,200 Speaker 1: John steps Show. Thanks Nathan and Mets went down to 482 00:26:05,280 --> 00:26:08,200 Speaker 1: Atlanta well aware that fifteen of their last seventy six 483 00:26:08,280 --> 00:26:10,800 Speaker 1: games or against the team had stunned the defending World 484 00:26:10,840 --> 00:26:13,360 Speaker 1: Series James, but the hottest team in MLB twenty nine 485 00:26:13,440 --> 00:26:15,840 Speaker 1: and eight since June one, met still in first place, 486 00:26:15,880 --> 00:26:18,600 Speaker 1: but their lead over the on rushing praise that the 487 00:26:18,640 --> 00:26:21,480 Speaker 1: game and a half. That's the smallest since mid April. Thankfully. 488 00:26:21,880 --> 00:26:24,159 Speaker 1: For the series opener, the Mets had Max scherz Are 489 00:26:24,200 --> 00:26:26,200 Speaker 1: on the mound, pitched seven as allowed only one run, 490 00:26:26,280 --> 00:26:28,960 Speaker 1: three had struck out nine Mets beat the Braids four 491 00:26:29,000 --> 00:26:31,840 Speaker 1: to one. So shars or two starts to missing seven 492 00:26:31,880 --> 00:26:33,560 Speaker 1: weeks and its alloud of onnely one run. He was 493 00:26:33,640 --> 00:26:37,160 Speaker 1: asked the advice he gave to his younger teen nine 494 00:26:37,520 --> 00:26:39,400 Speaker 1: when you get a droning playoff bit, you know, don't 495 00:26:39,440 --> 00:26:41,720 Speaker 1: be don't don't be a shy away from it, bringing on, 496 00:26:42,080 --> 00:26:43,480 Speaker 1: this is what you played the game for. It. You 497 00:26:43,560 --> 00:26:45,159 Speaker 1: want to be in these situations. You want to be 498 00:26:45,240 --> 00:26:47,159 Speaker 1: facing the best teams in the league. You want to 499 00:26:47,160 --> 00:26:48,960 Speaker 1: be in a racist you know, you gotta rise to 500 00:26:48,960 --> 00:26:52,239 Speaker 1: the occasion and matching. Um. So they have a uh, 501 00:26:52,400 --> 00:26:54,840 Speaker 1: you know, atmosphere like this tonight. Uh, playing in this 502 00:26:54,920 --> 00:26:57,440 Speaker 1: type of environment, it's only good to you know, continue 503 00:26:57,440 --> 00:27:00,200 Speaker 1: playing this and uh, you know in feet off see, 504 00:27:00,240 --> 00:27:02,440 Speaker 1: Alonso won a four Mets name to play next week's 505 00:27:02,440 --> 00:27:04,080 Speaker 1: All Star Game in l a and Alonso announced he 506 00:27:04,080 --> 00:27:06,399 Speaker 1: will also be in the Home Run Derby next Monday. 507 00:27:06,720 --> 00:27:09,320 Speaker 1: He's won the last two Yankees only wants this season, 508 00:27:09,400 --> 00:27:10,920 Speaker 1: have lost three games in the row off the back 509 00:27:10,960 --> 00:27:13,640 Speaker 1: to back blown leads in Boston. The yanksos home tonight 510 00:27:13,680 --> 00:27:16,520 Speaker 1: to play the Cincinnati Bet. The NBA expected to make 511 00:27:16,560 --> 00:27:19,359 Speaker 1: official today that the play intorney that's been used the 512 00:27:19,440 --> 00:27:22,919 Speaker 1: last two seasons will become a permanent part of the postseason. 513 00:27:23,000 --> 00:27:25,560 Speaker 1: Four teams in each conference vying for the last two 514 00:27:25,640 --> 00:27:28,480 Speaker 1: spots that then goes into the first round. Jnifer Broncos 515 00:27:28,520 --> 00:27:30,359 Speaker 1: have new owners. It was revealed that part of the 516 00:27:30,440 --> 00:27:34,560 Speaker 1: new ownership group former National Security advisor Condoleeza lights John 517 00:27:34,600 --> 00:27:38,120 Speaker 1: Stash award Bloomberg's books. Nathan thanks John seven on Wall 518 00:27:38,160 --> 00:27:40,800 Speaker 1: Street Time for the Tri State Business Report with Bloomberg's 519 00:27:40,800 --> 00:27:44,840 Speaker 1: head Cory. New York City's multifamily developments face an unsettled 520 00:27:44,920 --> 00:27:48,919 Speaker 1: future following the expiration of a tax incentive for affordable housing. 521 00:27:49,400 --> 00:27:52,119 Speaker 1: The fifty one year old program expired in June. When 522 00:27:52,200 --> 00:27:55,800 Speaker 1: lawmakers fail to renew or replace it, dal Jones reports 523 00:27:55,840 --> 00:27:59,040 Speaker 1: developers are scrambling the complete rental projects or build other 524 00:27:59,119 --> 00:28:03,040 Speaker 1: types of property. Thirty nonprofits in New Jersey are expected 525 00:28:03,119 --> 00:28:06,720 Speaker 1: to get grants totally nearly eighteen million dollars. The money 526 00:28:06,760 --> 00:28:10,159 Speaker 1: will support the state's restaurant industry while battling hunger at 527 00:28:10,200 --> 00:28:13,120 Speaker 1: the same time. It's the third phase of its Sustain 528 00:28:13,240 --> 00:28:17,320 Speaker 1: and Serve New Jersey program. Cartena Capital of Connecticut Hedge 529 00:28:17,359 --> 00:28:20,080 Speaker 1: Fund committed eight and a half million dollars to support 530 00:28:20,160 --> 00:28:24,720 Speaker 1: Elon Musk's proposed acquisition of Twitter. The Connecticut Post reports 531 00:28:24,760 --> 00:28:28,160 Speaker 1: the fundest staying quiet after the world's richest man announced 532 00:28:28,240 --> 00:28:30,560 Speaker 1: last week that he would abandon his bid to buy 533 00:28:30,640 --> 00:28:34,800 Speaker 1: the social media platform. That's your Bloomberg Trying State Business Report. 534 00:28:34,960 --> 00:28:38,400 Speaker 1: I'm ed Corey than on Wall Street Bloomberg Radios on 535 00:28:38,440 --> 00:28:40,600 Speaker 1: the air from San Francisco to New York, London to 536 00:28:40,760 --> 00:28:42,880 Speaker 1: Hong Kong. Let's check in with our global news team 537 00:28:42,960 --> 00:28:44,479 Speaker 1: for some of the top stories heard on our three 538 00:28:44,560 --> 00:28:50,720 Speaker 1: hundred affiliate radio stations around the world. I'm Steve Potas 539 00:28:50,800 --> 00:28:52,960 Speaker 1: cat on ten ten Wins in New York. We're talking 540 00:28:53,000 --> 00:28:56,000 Speaker 1: about water Brothers Discovery looking to resume a deal with 541 00:28:56,080 --> 00:28:59,720 Speaker 1: Amazon to get it to distribute the HBO Max streaming 542 00:28:59,760 --> 00:29:04,400 Speaker 1: Sir m Bornitanahwan ktr H in Houston. The International Energy 543 00:29:04,480 --> 00:29:07,720 Speaker 1: Agency says to squeeze on energy supplies may get worse. 544 00:29:08,000 --> 00:29:10,800 Speaker 1: Nice Mateo and on came X and St. Louis, I'll 545 00:29:10,840 --> 00:29:14,120 Speaker 1: be reporting on an electric vehicle maker tightening its belt 546 00:29:14,480 --> 00:29:17,280 Speaker 1: on Kallen had called BlueBag Davy dish Do in London. 547 00:29:17,320 --> 00:29:20,520 Speaker 1: We've been reporting on warnings from the International Energy Agency 548 00:29:20,640 --> 00:29:23,800 Speaker 1: that the worst of the energy crisis maybe yet to come. 549 00:29:24,120 --> 00:29:27,080 Speaker 1: I mid Cory on w w J in Detroit. I'm 550 00:29:27,160 --> 00:29:30,600 Speaker 1: reporting Ribby and Automotive planned hundreds of lay off and 551 00:29:30,760 --> 00:29:33,719 Speaker 1: those are some of the stories our hundred Bloomberg journalist 552 00:29:33,760 --> 00:29:35,880 Speaker 1: and analysts are working on this morning around the world. 553 00:29:35,960 --> 00:29:38,840 Speaker 1: It's five thirty nine on Wall Street. The following is 554 00:29:38,880 --> 00:29:43,080 Speaker 1: an editorial from Bloomberg Opinion. This editorial was written by 555 00:29:43,200 --> 00:29:47,760 Speaker 1: the Bloomberg Editorial Board. Sympathy and outrage over last week's 556 00:29:47,920 --> 00:29:53,280 Speaker 1: shocking assassination of former Japanese Prime Minister Shinzo Abe contributed 557 00:29:53,320 --> 00:29:56,800 Speaker 1: to the sweeping victory of his Liberal Democratic Party in 558 00:29:56,960 --> 00:30:00,760 Speaker 1: recent UPPERA House elections. However much he owes the former 559 00:30:00,800 --> 00:30:05,000 Speaker 1: prime minister, though, Japan's current leader, Fumio Kashita, must now 560 00:30:05,160 --> 00:30:08,880 Speaker 1: find his own path. That will mean, for example, fleshing 561 00:30:08,920 --> 00:30:13,160 Speaker 1: out his own economic vision for Japan. Kashida has called 562 00:30:13,240 --> 00:30:17,480 Speaker 1: for a fairer and more inclusive new form of capitalism 563 00:30:17,800 --> 00:30:23,760 Speaker 1: that can tackle inequality in contrast to Abe's focus on growth. Ultimately, 564 00:30:23,920 --> 00:30:27,400 Speaker 1: Kasheda will need to implement tough reforms that even AB 565 00:30:27,640 --> 00:30:33,120 Speaker 1: couldn't manage, including making changes to Japan's rigid seniority based 566 00:30:33,200 --> 00:30:36,720 Speaker 1: employment system. Japan would not be the country it is 567 00:30:36,840 --> 00:30:40,240 Speaker 1: today had it not been for Abe's vision and drive. 568 00:30:40,720 --> 00:30:45,000 Speaker 1: Kashita can best respect Abe's legacy by forging his own. 569 00:30:45,560 --> 00:30:49,000 Speaker 1: The editorial was written by the Bloomberg Editorial Board. For 570 00:30:49,120 --> 00:30:52,280 Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash 571 00:30:52,400 --> 00:30:56,400 Speaker 1: opinion or ope I n go on the Bloomberg terminal. 572 00:30:56,720 --> 00:31:00,040 Speaker 1: This has been Bloomberg Opinion. Listen for Bloomberg opinion and 573 00:31:00,160 --> 00:31:03,400 Speaker 1: editorials every weekday. At this time, terminal customers can read 574 00:31:03,520 --> 00:31:07,240 Speaker 1: more at O P I n go. SMP futures down 575 00:31:07,320 --> 00:31:10,640 Speaker 1: twenty six points, Stown futures down two eleven, NASAC futures 576 00:31:10,720 --> 00:31:13,840 Speaker 1: down seventy six points ten. Your treasury yield two point 577 00:31:14,840 --> 00:31:22,960 Speaker 1: two year close to three percent. This is Bloomberg Bloomberg 578 00:31:22,960 --> 00:31:25,080 Speaker 1: eleven three oh weather partly sunny today. We could see 579 00:31:25,120 --> 00:31:28,360 Speaker 1: some strong thunderstorms this afternoon on our way near ninety degrees, 580 00:31:28,600 --> 00:31:31,600 Speaker 1: Sunshine near ninety Tomorrow upr eighties and chance for an 581 00:31:31,600 --> 00:31:37,720 Speaker 1: afternoon shower Thursday. Right now seventy in Central Park markets, 582 00:31:37,840 --> 00:31:40,880 Speaker 1: headlines and breaking news twenty four hours a day at 583 00:31:40,920 --> 00:31:44,320 Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg 584 00:31:44,440 --> 00:31:54,120 Speaker 1: Quick Take, He's a Bloomberg Business Flash and I'm Karen Moscow. 585 00:31:54,200 --> 00:31:56,600 Speaker 1: You must dock. Index future is falling as a dollar 586 00:31:56,720 --> 00:32:00,680 Speaker 1: and sovereign bonnds rise, a pattern highlighting pervation of unease 587 00:32:00,720 --> 00:32:03,920 Speaker 1: about the economic outlook amid high inflation and China's struggles 588 00:32:03,960 --> 00:32:06,920 Speaker 1: with COVID. They checked the markets every fifteen minutes throughout 589 00:32:06,920 --> 00:32:10,479 Speaker 1: the trading day on Bloomberg. Right now, SMP futures are 590 00:32:10,520 --> 00:32:13,520 Speaker 1: done about twenty nine points down, futures down two hundred 591 00:32:13,640 --> 00:32:17,120 Speaker 1: thirty four and NASDAG futures down seventies seven. The decks 592 00:32:17,240 --> 00:32:19,480 Speaker 1: in Germany is down nine tenths of upper cent. The 593 00:32:19,560 --> 00:32:22,480 Speaker 1: ten year treasury of twenty thirty seconds yield two point 594 00:32:22,560 --> 00:32:24,680 Speaker 1: nine one percent. The yield on the two year is 595 00:32:24,760 --> 00:32:27,640 Speaker 1: at three percent. NIMEX screwed oil is down two and 596 00:32:27,640 --> 00:32:30,000 Speaker 1: a half percent on two dollars fifty seven cents at 597 00:32:30,000 --> 00:32:32,800 Speaker 1: a hundred one dollars fifty two cents in barrel comes 598 00:32:32,840 --> 00:32:36,280 Speaker 1: gold is little change at seventeen thirty two twenty announced 599 00:32:36,360 --> 00:32:39,440 Speaker 1: the euro right at one point zero zero zero four 600 00:32:39,480 --> 00:32:41,920 Speaker 1: against the dollar. British found one point one one eight 601 00:32:42,000 --> 00:32:45,000 Speaker 1: and the en one thirty seven point one six Bitcoin 602 00:32:45,080 --> 00:32:47,720 Speaker 1: this morning down more than four percent and nineteen thousand, 603 00:32:47,800 --> 00:32:50,960 Speaker 1: five hundred sixty dollars. That's a Bloomberg business flash. Now 604 00:32:51,040 --> 00:32:53,680 Speaker 1: here's Michael Barr with more unless going on around the world. 605 00:32:53,800 --> 00:32:56,960 Speaker 1: Michael Karen, thank you very much. The January six Panel 606 00:32:57,040 --> 00:33:00,400 Speaker 1: holds another public hearing today. It is expected to explore 607 00:33:00,440 --> 00:33:03,760 Speaker 1: whether extremist groups worked in coordination with the White House 608 00:33:03,800 --> 00:33:07,480 Speaker 1: allies in an attempt to overthrow the result of the 609 00:33:07,560 --> 00:33:11,240 Speaker 1: presidential election through a political coup and the mobilization of 610 00:33:11,320 --> 00:33:14,640 Speaker 1: an armed, violent mob. President Biden is set to meet 611 00:33:14,680 --> 00:33:18,320 Speaker 1: with Mexico's president at the White House today Later. President 612 00:33:18,400 --> 00:33:21,440 Speaker 1: Biden is looking for cheaper oil prices on his Middle 613 00:33:21,480 --> 00:33:24,000 Speaker 1: East trip this week, which will include a stop in 614 00:33:24,040 --> 00:33:27,200 Speaker 1: Saudi Arabia. In baseball, the Mets one, the Red Sox, 615 00:33:27,280 --> 00:33:31,200 Speaker 1: A's and Giants lost Global News twenty four hours a 616 00:33:31,280 --> 00:33:34,239 Speaker 1: day on air and on Bloomberg Quick Take, powered by 617 00:33:34,280 --> 00:33:37,440 Speaker 1: more than seven hundred journalists and analysts in more than 618 00:33:37,520 --> 00:33:41,360 Speaker 1: one countries. I'm Michael bar and this is Bloomberg. Nathan 619 00:33:41,480 --> 00:33:43,200 Speaker 1: all right, Michael, thank you for coming up to five 620 00:33:43,280 --> 00:33:46,160 Speaker 1: forty nine on Wall Street Live from the Bloomberg Interactive 621 00:33:46,160 --> 00:33:49,400 Speaker 1: Brokers studios. This is Bloomberg Daybreak on what looks like 622 00:33:49,520 --> 00:33:52,560 Speaker 1: a risk off Tuesday morning. We are joined now by 623 00:33:52,680 --> 00:33:57,160 Speaker 1: Ivy Jack, head of equity research at north Star Asset Management. Ivy, 624 00:33:57,240 --> 00:33:59,800 Speaker 1: good morning, Futures continue to fall and we're watching for 625 00:34:00,000 --> 00:34:03,000 Speaker 1: euro dollar parody this morning. What is your read on 626 00:34:03,080 --> 00:34:09,759 Speaker 1: this market? Thank you, Nathan. Um. I think like everyone else, 627 00:34:10,040 --> 00:34:12,960 Speaker 1: we are waiting to see what happens. There are a 628 00:34:13,120 --> 00:34:16,200 Speaker 1: lot of puts and takes going on. I mean, I 629 00:34:16,239 --> 00:34:19,040 Speaker 1: will say first of all, Um, as I'm thinking about 630 00:34:19,080 --> 00:34:22,359 Speaker 1: going into earning season, I'm mindful that pandemic is still 631 00:34:22,520 --> 00:34:25,800 Speaker 1: with us. UM. This will be the first set of 632 00:34:25,880 --> 00:34:28,680 Speaker 1: results where I think we have a lot of the 633 00:34:29,080 --> 00:34:32,000 Speaker 1: bad news that we've been anticipating. We will get a 634 00:34:32,080 --> 00:34:35,320 Speaker 1: chance to really see how it impacts company earnings and 635 00:34:35,360 --> 00:34:38,200 Speaker 1: whether or not margins are really going to come under pressure. 636 00:34:38,320 --> 00:34:41,000 Speaker 1: So UM, I'm looking forward to starting off the week 637 00:34:41,120 --> 00:34:43,640 Speaker 1: with the banks reporting this week to see, you know, 638 00:34:43,760 --> 00:34:47,319 Speaker 1: what they're saying about consumers, what lending looks like. UM. 639 00:34:47,440 --> 00:34:48,879 Speaker 1: But I think this is going to be a very 640 00:34:49,120 --> 00:34:52,800 Speaker 1: telling reporter for all of us is there a concern 641 00:34:52,880 --> 00:34:55,560 Speaker 1: for you that there's more bad news to come. I mean, 642 00:34:55,640 --> 00:34:59,080 Speaker 1: we've heard from the head of the International Energy Agency 643 00:34:59,239 --> 00:35:02,560 Speaker 1: saying the worst the energy crunch isn't over. Well. The 644 00:35:02,640 --> 00:35:06,160 Speaker 1: White House is saying that the inflation data we're gonna 645 00:35:06,160 --> 00:35:09,400 Speaker 1: get tomorrow is backward looking. They're they're hoping for more optimism. 646 00:35:11,800 --> 00:35:13,879 Speaker 1: I think this is the first quarter where we're going 647 00:35:13,960 --> 00:35:18,000 Speaker 1: to begin to see, uh, the full effect of what 648 00:35:18,200 --> 00:35:20,800 Speaker 1: has happened with the war in Ukraine, the impact of 649 00:35:20,880 --> 00:35:23,640 Speaker 1: higher energy prices, how it kind of has worked its 650 00:35:23,680 --> 00:35:26,680 Speaker 1: way through the system. UM. I also think we're now 651 00:35:26,800 --> 00:35:30,920 Speaker 1: beginning to see that demand is cooling as well. Um, 652 00:35:31,239 --> 00:35:33,920 Speaker 1: you know, we have higher mortgage interest rates. So again, 653 00:35:34,360 --> 00:35:36,920 Speaker 1: this is the first quarter where a lot of the 654 00:35:37,080 --> 00:35:40,880 Speaker 1: bad news that we were anticipating we should start to 655 00:35:40,960 --> 00:35:44,400 Speaker 1: actually see, uh in the results of corporate earning. So 656 00:35:44,480 --> 00:35:48,000 Speaker 1: I think that's what really makes this quarter unique compared 657 00:35:48,160 --> 00:35:51,000 Speaker 1: to pass quarters, is we'll get to see the impact 658 00:35:51,040 --> 00:35:53,760 Speaker 1: and also to get to see, if you know, margins 659 00:35:53,800 --> 00:35:57,279 Speaker 1: are impacted. I will say I was really uh surprised 660 00:35:57,320 --> 00:36:00,440 Speaker 1: that companies were still able to pass on a lot 661 00:36:00,560 --> 00:36:03,160 Speaker 1: of higher costs to consumers. I don't know if they're 662 00:36:03,160 --> 00:36:05,600 Speaker 1: going to be able to do that this quarter. So, um, 663 00:36:05,680 --> 00:36:08,320 Speaker 1: there's still a lot for us to learn. Are you 664 00:36:08,440 --> 00:36:13,480 Speaker 1: looking for pretty strong downward revisions to the outlook for 665 00:36:13,560 --> 00:36:16,920 Speaker 1: profit margins? Then I definitely am. And I mean I 666 00:36:17,000 --> 00:36:18,800 Speaker 1: think I've started well, at least for the companies that 667 00:36:18,880 --> 00:36:21,680 Speaker 1: I currently cover and I'm looking at. I've started seeing 668 00:36:21,760 --> 00:36:24,680 Speaker 1: it already that earnings are coming down, and I think 669 00:36:24,680 --> 00:36:26,560 Speaker 1: they're gonna have to come down more than what we're 670 00:36:26,640 --> 00:36:30,560 Speaker 1: already seeing. What kind of catalysts do you think this 671 00:36:30,640 --> 00:36:37,880 Speaker 1: week's inflation data is going to be for markets? Wow? Catalysts. 672 00:36:38,160 --> 00:36:41,080 Speaker 1: I think it's going to give honestly the fan more 673 00:36:41,200 --> 00:36:45,759 Speaker 1: comfort to continue raising interest rates. Um. That's something else 674 00:36:45,800 --> 00:36:48,719 Speaker 1: that I think I'm not really sure that has been 675 00:36:48,760 --> 00:36:51,520 Speaker 1: fully appreciated the impact that that is going to have 676 00:36:51,880 --> 00:36:58,360 Speaker 1: on at the markets. Um. So I really think, like 677 00:36:58,480 --> 00:37:01,919 Speaker 1: I said, terms of catalysts, they're gonna be a lot 678 00:37:02,040 --> 00:37:04,600 Speaker 1: of things that probably come out that we haven't even 679 00:37:04,680 --> 00:37:07,719 Speaker 1: anticipated because there there's so many things that are going 680 00:37:07,800 --> 00:37:10,399 Speaker 1: on and coming together in this particular moment in time. 681 00:37:11,520 --> 00:37:13,920 Speaker 1: So when we hear from someone like Kansas City Fed 682 00:37:13,960 --> 00:37:17,239 Speaker 1: President Esther George, who was warning that raising rates too 683 00:37:17,320 --> 00:37:20,560 Speaker 1: fast could force the FED or cause the FED to Oversteerum, 684 00:37:20,600 --> 00:37:22,640 Speaker 1: you're thinking that that doesn't hold much weight with the 685 00:37:22,680 --> 00:37:26,480 Speaker 1: rest of the committee. Oh, I mean I think right now, look, 686 00:37:26,520 --> 00:37:28,320 Speaker 1: we just got the job to report. You know, we 687 00:37:28,400 --> 00:37:34,839 Speaker 1: got three hundred and seventy thousand jobs. That's still pretty strong. Um. 688 00:37:35,000 --> 00:37:37,759 Speaker 1: So I think that in and of itself tells us 689 00:37:37,800 --> 00:37:40,320 Speaker 1: that the labor market is holding up pretty well. And 690 00:37:40,400 --> 00:37:42,200 Speaker 1: I think if you're the FED, you want to try 691 00:37:42,239 --> 00:37:44,399 Speaker 1: to get this done as soon as possible. So you're 692 00:37:44,440 --> 00:37:46,480 Speaker 1: gonna try to raise interest raise as much as you can, 693 00:37:46,920 --> 00:37:49,040 Speaker 1: as fast as you can, so that you can back off. 694 00:37:49,680 --> 00:37:54,719 Speaker 1: So with that being said, Um, and on top of that, 695 00:37:55,200 --> 00:38:00,920 Speaker 1: I'm expecting for inflation to come out ye higher than 696 00:38:01,000 --> 00:38:03,680 Speaker 1: it was last month, and so I think again that 697 00:38:03,840 --> 00:38:05,560 Speaker 1: is going to allow the FIT to get a little 698 00:38:05,560 --> 00:38:10,000 Speaker 1: bit more aggressive. So um, right now, I think, you know, 699 00:38:10,520 --> 00:38:15,040 Speaker 1: we should be bracing ourselves for higher interest rates, perhaps 700 00:38:15,160 --> 00:38:18,799 Speaker 1: higher than we anticipated. And on top of that, I think, 701 00:38:18,960 --> 00:38:21,279 Speaker 1: you know, a labor market that has held up really 702 00:38:21,360 --> 00:38:26,239 Speaker 1: well gives the FIT ammunition to keep moving forward. Thanks 703 00:38:26,280 --> 00:38:28,239 Speaker 1: for this, Ivy, great having gone with us this morning. 704 00:38:28,320 --> 00:38:32,920 Speaker 1: Ivy jack Head of equity research at north Start Asset Management. Karen. 705 00:38:33,680 --> 00:38:36,120 Speaker 1: All right, Nathan, thank you. It is five fifty three 706 00:38:36,440 --> 00:38:39,000 Speaker 1: on Wall Street, and now we go to a story 707 00:38:39,160 --> 00:38:41,840 Speaker 1: we are watching this morning, brought to you by American 708 00:38:41,960 --> 00:38:46,239 Speaker 1: Arbitration Association. Business disputes are inevitable, resolve faster with the 709 00:38:46,280 --> 00:38:50,680 Speaker 1: American Arbitration Association, the global leader in alternative dispute resolution 710 00:38:50,760 --> 00:38:54,200 Speaker 1: for over ninety years. More at a d R dot org. 711 00:38:54,360 --> 00:38:57,080 Speaker 1: Now here's a legal story we're following with Elon Musk 712 00:38:57,560 --> 00:39:01,080 Speaker 1: may have decided he doesn't want to buy Twitter after all, 713 00:39:01,400 --> 00:39:03,879 Speaker 1: but he can't just walk away from the forty four 714 00:39:03,960 --> 00:39:07,440 Speaker 1: billion dollar deal. Twitter said it will take Mustachord to 715 00:39:07,520 --> 00:39:10,440 Speaker 1: compel him to go through with the agreement, and if 716 00:39:10,520 --> 00:39:13,440 Speaker 1: history is a god, the odds are in Twitter's favor. 717 00:39:13,760 --> 00:39:16,280 Speaker 1: For more, Bloomberg scu in Grasso speaks to Eric Tallely, 718 00:39:16,400 --> 00:39:19,520 Speaker 1: a professor at Columbia Law School. Eric, I believe a 719 00:39:19,600 --> 00:39:23,400 Speaker 1: few weeks ago you predicted that Musk would try to 720 00:39:23,480 --> 00:39:26,360 Speaker 1: walk away from the deal. Yeah, he was making sounds 721 00:39:26,480 --> 00:39:28,520 Speaker 1: that he was trying to figure out a way to 722 00:39:28,600 --> 00:39:31,239 Speaker 1: walk away from the deal, and most of the behavior 723 00:39:31,440 --> 00:39:34,680 Speaker 1: that has been publicly observable was completely consistent with it. 724 00:39:35,080 --> 00:39:39,400 Speaker 1: The theory about you know, his concern over spam or 725 00:39:39,560 --> 00:39:43,759 Speaker 1: body accounts set into motion what evidently has been a 726 00:39:44,160 --> 00:39:47,640 Speaker 1: back and forth in which Musk and his representatives had 727 00:39:47,719 --> 00:39:50,800 Speaker 1: made demands for more and more information, and at some 728 00:39:51,000 --> 00:39:55,080 Speaker 1: point Twitter must have said, no, that's enough information, We're 729 00:39:55,120 --> 00:39:56,719 Speaker 1: not going to give you anymore, or not going to 730 00:39:56,760 --> 00:40:00,320 Speaker 1: give you information along certain lines that you've requested, and that, 731 00:40:00,600 --> 00:40:04,040 Speaker 1: in part seems to have precipitated the letter that his 732 00:40:04,200 --> 00:40:08,200 Speaker 1: lawyer filed on Friday. And so that behavior, in some 733 00:40:08,360 --> 00:40:10,840 Speaker 1: ways is what you would expect from someone who is 734 00:40:10,840 --> 00:40:12,759 Speaker 1: trying to figure out a way to walk away from 735 00:40:12,800 --> 00:40:15,279 Speaker 1: a deal. And you know, there was a part of 736 00:40:15,440 --> 00:40:19,120 Speaker 1: the merger agreement that he is quite clearly now trying 737 00:40:19,160 --> 00:40:22,880 Speaker 1: to seize upon that requires Twitter to comply with the 738 00:40:22,960 --> 00:40:27,520 Speaker 1: reasonable requests to give information to Musk and his representatives, 739 00:40:28,000 --> 00:40:30,920 Speaker 1: and if they unreasonably refused to give him access to 740 00:40:31,040 --> 00:40:34,280 Speaker 1: that information, that could constitute a breach of the contract. 741 00:40:34,360 --> 00:40:38,520 Speaker 1: So I think that is effectively the course that most people, 742 00:40:38,640 --> 00:40:42,800 Speaker 1: myself included, thought he was setting himself on, and that 743 00:40:43,160 --> 00:40:46,040 Speaker 1: appears to have been correct. So Musk is claiming that 744 00:40:46,120 --> 00:40:49,800 Speaker 1: Twitter's failure to hand over specifics on the number of 745 00:40:49,920 --> 00:40:54,560 Speaker 1: bots amounts to a material adverse effect under the contract. 746 00:40:55,320 --> 00:40:59,400 Speaker 1: But haven't Delaware courts been reluctant to find that and 747 00:40:59,480 --> 00:41:02,560 Speaker 1: to allow people to walk away from mergers. Neither the 748 00:41:02,680 --> 00:41:08,280 Speaker 1: Delaware courts nor these provisions themselves are incredibly generous about 749 00:41:08,440 --> 00:41:11,520 Speaker 1: giving people the ability to walk away. Until a couple 750 00:41:11,560 --> 00:41:15,000 Speaker 1: of years ago. For example, although many buyers had tried 751 00:41:15,120 --> 00:41:17,839 Speaker 1: to use this language to walk away from a deal, 752 00:41:18,120 --> 00:41:21,040 Speaker 1: none had succeeded. Now one finally succeeded a couple of 753 00:41:21,160 --> 00:41:23,200 Speaker 1: years ago, But even in that case, it was a 754 00:41:23,360 --> 00:41:27,400 Speaker 1: fairly egregious form of fraud. And so the odds just 755 00:41:27,680 --> 00:41:31,440 Speaker 1: from a case law perspective, just don't favor Mosque. And 756 00:41:31,800 --> 00:41:35,320 Speaker 1: based on the language of the deal and what we 757 00:41:35,600 --> 00:41:38,799 Speaker 1: know that's in the factual record thus far, I think 758 00:41:38,840 --> 00:41:42,040 Speaker 1: Twitter would have a very good chance at getting a 759 00:41:42,160 --> 00:41:45,920 Speaker 1: specific performance decree, which is not just in order to 760 00:41:46,000 --> 00:41:49,800 Speaker 1: pay damages, but in order for Elon Musk to close 761 00:41:49,920 --> 00:41:53,680 Speaker 1: the transaction. And that's Eric tale Or, professor at Columbia 762 00:41:53,760 --> 00:41:56,759 Speaker 1: Law School, speaking with the Bloomberg June Grosso. Catch more 763 00:41:56,920 --> 00:42:00,200 Speaker 1: of that interview, plus analysis of the latest legal news 764 00:42:00,480 --> 00:42:03,600 Speaker 1: by subscribing to the Bloomberg Law Podcast or downloading the 765 00:42:03,640 --> 00:42:07,359 Speaker 1: show at Bloomberg dot com slash podcast. Attorneys can find 766 00:42:07,400 --> 00:42:11,120 Speaker 1: exceptional legal research and business development tools at Bloomberg Law 767 00:42:11,200 --> 00:42:14,360 Speaker 1: dot com and on the Bloomberg terminal at b law Go. 768 00:42:15,080 --> 00:42:18,680 Speaker 1: And futures this morning falling with SMP futures down about 769 00:42:18,719 --> 00:42:21,440 Speaker 1: thirty points, now futures down two hundred forty one and 770 00:42:21,520 --> 00:42:25,440 Speaker 1: NASDAG futures down. One ten year Treasury up twenty one 771 00:42:25,520 --> 00:42:28,360 Speaker 1: thirty seconds held two point nine one percent, and they 772 00:42:28,440 --> 00:42:31,640 Speaker 1: yield on the two year two point nine nine percent, 773 00:42:31,840 --> 00:42:34,800 Speaker 1: and nim X screwed oil down two point four percent. 774 00:42:34,920 --> 00:42:37,360 Speaker 1: It's aid one d one dollars fifty five cents of 775 00:42:37,440 --> 00:42:40,960 Speaker 1: barrel to get more on the markets straight ahead on 776 00:42:41,040 --> 00:42:43,800 Speaker 1: Bloomberg Daybreak and check on all the business headlines and 777 00:42:43,840 --> 00:42:45,920 Speaker 1: the news you need to start your day as well. 778 00:42:46,160 --> 00:42:47,200 Speaker 1: This is Bloomberg