WEBVTT - Bloomberg Daybreak: July 12, 2022 - Hour 1 (Radio) 0:00:02.920 --> 0:00:05.680 By from the Bloomberg and Directive Burgers studios. This is 0:00:05.720 --> 0:00:09.520 Bloomberg day Break for Tuesday, July twelve two. Coming up 0:00:09.560 --> 0:00:13.120 this hour, The Wall Street stock sell off continues this morning. 0:00:13.280 --> 0:00:16.520 They says the worst of the energy crisis maybe ahead. 0:00:16.640 --> 0:00:19.280 We are tracking the latest developments in the Twitter elon 0:00:19.360 --> 0:00:22.560 musk saga and the January six Committee focuses on far 0:00:22.720 --> 0:00:26.040 right groups and what former President Trump knew about their plans. 0:00:26.280 --> 0:00:28.640 Officials want people in New York City to mask up 0:00:28.680 --> 0:00:32.120 again indoors plus. Funeral services were held today for former 0:00:32.200 --> 0:00:35.559 Japanese per Minister Robert On Michael bar More Ahead, I'm 0:00:35.600 --> 0:00:38.159 John Stashward sports matchers or pitched the Mets to a 0:00:38.200 --> 0:00:40.600 big win in Atlanta, and pet Delonso will be in 0:00:40.720 --> 0:00:45.800 next week's Home One Dirty. That's All's trading ahead on 0:00:45.920 --> 0:00:50.000 Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg 0:00:50.120 --> 0:00:54.120 nine one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.440 --> 0:00:59.040 Bloomberg nine sixties and Francisco Sirius XM one nine team 0:00:59.080 --> 0:01:02.000 and around the world down Bloomberg Radio dot com and 0:01:02.160 --> 0:01:09.000 via the Bloomberg Business App. Good morning, I'm Nathan Hagar 0:01:09.360 --> 0:01:12.600 and I'm Karen. Moscow and US index futures are lower 0:01:12.600 --> 0:01:14.440 this morning. We're coming up to find the one on 0:01:14.480 --> 0:01:16.680 Wall Street, and we check the markets every fifteen minutes 0:01:16.720 --> 0:01:19.840 throughout the trading day. On Bloomberg and SMP futures are 0:01:19.880 --> 0:01:23.040 down twenty one points down, futures down a hundred sixty eight, 0:01:23.360 --> 0:01:26.600 and NASDAG futures down sixty three. The decks in Germany's 0:01:26.640 --> 0:01:29.280 down six tenths of upper cent. The ten year treasury 0:01:29.280 --> 0:01:32.680 of twenty thirty seconds yield two point nine zero percent, 0:01:32.760 --> 0:01:35.440 and they yield on the two year two point nine 0:01:35.520 --> 0:01:39.199 nine percent, and Bitcoin is at nineteen thousand, seven hundred 0:01:39.280 --> 0:01:43.080 sixty dollars. Nathan Well Karen futures are adding to yesterday's losses, 0:01:43.080 --> 0:01:46.319 which saw all three major indexes fall. Hardest hit was 0:01:46.360 --> 0:01:49.680 the Nasdaq, which fell two into quarter percent. Still, Alan 0:01:49.760 --> 0:01:52.639 zaffron Co, CEO at I e Q Capital says growth 0:01:52.640 --> 0:01:56.040 stocks may be the place to invest. We are looking 0:01:56.120 --> 0:01:59.760 forward at a slower growing economy, given what's happening with 0:01:59.800 --> 0:02:03.160 the ED, given what's happened with a more heightened inflationary environment, 0:02:03.160 --> 0:02:06.559 and so it is a setup for growth stocks to outperform. 0:02:06.640 --> 0:02:09.200 Value stocks looking forward for quite some time. I e 0:02:09.320 --> 0:02:12.359 Q Capital's Alan Zafferan says the upcoming earning season will 0:02:12.400 --> 0:02:14.959 be key for the markets. Well, Nathan, The Wall Street 0:02:15.040 --> 0:02:18.000 sell off spread to Asia overnight, both Japan's and EK 0:02:18.200 --> 0:02:21.560 and Hong Kong's Hang Sang Index strat more than one percent. 0:02:21.919 --> 0:02:25.000 Make at the recap from Bloomberg Daybreak, Asia anchor Brian 0:02:25.000 --> 0:02:28.440 Curtis in Hong Kong, Asian stocks fell on concerns over 0:02:28.480 --> 0:02:32.360 the economic outlook, high inflation, and China's issues with COVID. 0:02:32.800 --> 0:02:36.280 The tech sectors struggled, sparking weakness in Japan, Hong Kong, 0:02:36.320 --> 0:02:39.239 and China. The dollar pushed higher, up near the levels 0:02:39.280 --> 0:02:42.560 that we saw in the panic over COVID. The euro 0:02:42.639 --> 0:02:45.680 has edged closer to parody, with the greenback sapped by 0:02:45.720 --> 0:02:50.120 Europe's energy crisis and fears of recession. Treasuries gained, taking 0:02:50.120 --> 0:02:54.040 the tenure yield well below three percent. Bonds also rallied 0:02:54.120 --> 0:02:57.400 in Australia. You know, Hong Kong, Brian Curtis, Bloomberg Daybreak, 0:02:57.440 --> 0:02:59.760 All right, Brian, thank you well. Oil is lower this 0:03:00.040 --> 0:03:02.040 running down two and a quarter per cent for West 0:03:02.080 --> 0:03:05.080 Texas Intermediate at a hundred one dollar seventy five cents 0:03:05.080 --> 0:03:08.280 of barrel. A COVID resurgence in China is adding to 0:03:08.400 --> 0:03:12.519 concerns about a global economic slowdown. Fatty Barol, executive director 0:03:12.520 --> 0:03:15.120 at the International Energy Agency, says the worst of the 0:03:15.240 --> 0:03:20.480 energy crisis maybe ahead. The world has never witnessed such 0:03:20.639 --> 0:03:25.880 a major energy crisis. It is interwoven by many factors, 0:03:26.200 --> 0:03:30.240 including the geopolitics, and I believe we might not have 0:03:30.639 --> 0:03:34.320 seen the worst of it yet. I e A Executive 0:03:34.360 --> 0:03:37.000 director Fatty Barol says this winter in Europe will be 0:03:37.080 --> 0:03:41.000 quote very, very difficult. Well. Investors are closely watching for 0:03:41.040 --> 0:03:44.440 the release of June's Consumer Price Index tomorrow, Nathan. The 0:03:44.440 --> 0:03:46.800 White House is giving an eye on it too. Press 0:03:46.800 --> 0:03:49.880 Secretary Karine John Pierre says the inflation data will be 0:03:49.960 --> 0:03:54.400 highly elevated, but she also notes it's backward looking. June's 0:03:54.440 --> 0:03:58.080 CPI data is already out of date because energy prices 0:03:58.120 --> 0:04:01.680 have come down substantially this month and are expected to 0:04:01.760 --> 0:04:05.840 fall further. White House Karen John Billerre says food and 0:04:05.920 --> 0:04:09.080 gas prices continue to be impacted by the war in Ukraine. 0:04:09.360 --> 0:04:12.680 Economist surveyed by Bloomberg expect June prices to jump eight 0:04:12.720 --> 0:04:15.080 point eight percent compared to last year, and that would 0:04:15.080 --> 0:04:17.680 be a fresh forty year high. Well, Karen, we continue 0:04:17.720 --> 0:04:21.040 to follow the saga between Elon Musk and Twitter. Shares 0:04:21.120 --> 0:04:24.880 fell more than eleven percent yesterday for the social media company. 0:04:25.000 --> 0:04:28.160 Let's get the latest live from Bloomberg's Rnita Young. Good morning, Rnita, 0:04:28.200 --> 0:04:32.000 Good morning, Nathan. Twitter lawyers are calling Elon Musk's termination 0:04:32.080 --> 0:04:34.360 of his forty four billion dollar deal to buy the 0:04:34.400 --> 0:04:38.320 company invalid and wrongful. They wrote it in a letter 0:04:38.360 --> 0:04:41.200 to his attorneys, and it's a preliminary step in the 0:04:41.320 --> 0:04:44.159 legal battle over the deal. And Musk agreed to buy 0:04:44.200 --> 0:04:46.800 Twitter for fifty four dollars and twenty cents a share 0:04:46.800 --> 0:04:49.960 back in late April, but he terminated the agreement because 0:04:50.000 --> 0:04:53.600 he believes Twitter misrepresented user data, claiming the number of 0:04:53.640 --> 0:04:56.479 spambots on the platform is much higher than the five 0:04:56.520 --> 0:05:00.719 percent the company has disclosed. Bloomberg sources say Twitter aims 0:05:00.720 --> 0:05:04.520 to file suit early this week. The agreement specifies any 0:05:04.600 --> 0:05:07.880 legal dispute over the deal must be heard in Delaware. 0:05:08.440 --> 0:05:11.159 Live in New York. I'm gonna need a Young Bloomberg daybreak, 0:05:11.240 --> 0:05:13.360 all right, We need to thank you well, one other note. 0:05:13.360 --> 0:05:15.800 In the World's Richest Man This Morning, Elon must says 0:05:15.880 --> 0:05:18.680 Donald Trump should quote sail into the sunset and forget 0:05:18.720 --> 0:05:21.360 about running for president again, And a series of tweets 0:05:21.440 --> 0:05:24.440 Must claim to that Florida Governor Rhonda Santis would easily 0:05:24.480 --> 0:05:27.480 defeat President Biden. He also told his one hundred million 0:05:27.520 --> 0:05:30.200 followers that there was too much drama when former President 0:05:30.200 --> 0:05:33.240 Trump was in office. A meantime, Karen testimony on last 0:05:33.279 --> 0:05:36.080 year's attack at the US Capital rolls on in Washington. 0:05:36.440 --> 0:05:39.000 Up next the House January six committee focuses on the 0:05:39.080 --> 0:05:42.520 roll of extremists in the insurrection. Bloomberg said Baxter has 0:05:42.600 --> 0:05:46.160 the story. Committee member Jamie Raskin says it will continue 0:05:46.200 --> 0:05:48.480 building on the case that Donald Trump had a hand 0:05:48.520 --> 0:05:51.760 and trying to overthrow the results of the election and 0:05:51.920 --> 0:05:55.800 led to the advance that day on January six, Raskin says, 0:05:55.800 --> 0:05:59.320 we will focus on what's become known as Team Crazy, 0:05:59.360 --> 0:06:02.240 a group of people around Trump, Sidney Pale, Rudy Giuliani 0:06:02.279 --> 0:06:05.320 among them. Raskin says one of the meetings was unlike 0:06:05.360 --> 0:06:09.080 anything in American history. Now. The committee has also announced 0:06:09.120 --> 0:06:12.320 postponement a Thursday's hearing because it is getting so much 0:06:12.440 --> 0:06:16.840 new information on White House ties in San Francisco. I'm 0:06:16.839 --> 0:06:19.680 at Baxter Bloomberg Daybreak, and thank you. In corporate news 0:06:19.720 --> 0:06:22.799 this morning, San Francisco based Gap has fired at CEO 0:06:23.000 --> 0:06:25.479 Sonia Singal was dismissed after two and a half years 0:06:25.480 --> 0:06:27.440 in the job. And we get the story from Bloomberg's 0:06:27.480 --> 0:06:31.440 Charlie Pellett. The apparel company is struggling to leave operational 0:06:31.560 --> 0:06:35.960 challenges behind it. Chairman Bob Martin is taking over immediately 0:06:36.080 --> 0:06:39.880 as CEO on an interim basis. GAP shares aren't down 0:06:39.960 --> 0:06:43.239 fifty percent this year, compared with a thirty percent dropped 0:06:43.279 --> 0:06:46.479 for the S and P five hundred retailing index. Single 0:06:46.560 --> 0:06:50.120 took over in early twenty right before Covid royaled the 0:06:50.160 --> 0:06:53.200 business and demand. Prior to that, she was in charge 0:06:53.240 --> 0:06:56.840 of the company's old Navy brand in New York. Charlie 0:06:56.839 --> 0:06:59.680 Pellett Bloomberg Daybreak. All right, thank you, Charlie, and job 0:06:59.680 --> 0:07:02.600 cuts are coming at Microsoft. The layoffs effect less than 0:07:02.640 --> 0:07:05.240 one percent of the workforce and span a variety of groups, 0:07:05.240 --> 0:07:09.120 including consulting and customer and partner solutions. Microsoft says the 0:07:09.120 --> 0:07:12.040 cuts were not spurred by economic factors, but in May 0:07:12.080 --> 0:07:15.360 the company slowed hiring in its windows and office groups. 0:07:15.360 --> 0:07:18.280 Straight ahead your latest local headlines in the check of sports. 0:07:18.320 --> 0:07:25.080 This is Bloomberg South five oh seven on Wall Street. 0:07:25.120 --> 0:07:27.840 We are at seventy degrees in central parking looking at 0:07:27.880 --> 0:07:31.000 twenty minute delays on the upper level of George Washington Bridge. 0:07:31.680 --> 0:07:34.520 Use the lower more coming up in traffic First Michael 0:07:34.520 --> 0:07:36.120 Barr with what else is going on in New York 0:07:36.160 --> 0:07:38.560 and around the world. Good morning, Michael, Good morning Nathan. 0:07:38.600 --> 0:07:41.240 The Department of Health is continuing to urge New York 0:07:41.240 --> 0:07:44.400 City residents to wear masks in all public indoor settings 0:07:44.680 --> 0:07:48.560 and in crowded areas outdoors because I went uptick in COVID. 0:07:49.000 --> 0:07:52.480 It comes as the latest omicron variant B A point 0:07:52.520 --> 0:07:55.760 five has become the dominant strain in the US. This 0:07:55.920 --> 0:07:59.760 New Yorkers says people got lacks about masking. I think 0:08:00.080 --> 0:08:02.960 the city's the government's gonna have a hard time getting 0:08:03.000 --> 0:08:06.400 people back into mask Meanwhile, about two out of three 0:08:06.440 --> 0:08:10.000 people in the US are fully vaccinated. Harvard Medical School 0:08:10.000 --> 0:08:14.680 professor Dr John Brownstein says the evolution of variance unresponsive 0:08:14.760 --> 0:08:19.240 to immunity from previous infection means we are likely going 0:08:19.280 --> 0:08:22.040 to have to give up on the idea of her immunity. 0:08:22.320 --> 0:08:25.200 You see this virus evolved quicker and quicker, and we'll 0:08:25.200 --> 0:08:28.160 probably see another variant in the fall. So the main 0:08:28.240 --> 0:08:31.840 question really is can we avert really serious outcomes like 0:08:32.000 --> 0:08:36.680 deaths and hospitalizations. But inmiologist Dr John Brownstein is also 0:08:36.760 --> 0:08:41.000 the Chief Innovation Officer at Boston Children's Hospital. Police in 0:08:41.000 --> 0:08:43.120 New York City they're looking for a man they say 0:08:43.400 --> 0:08:46.360 is targeting homeless people in a string of stabbing attacks. 0:08:46.679 --> 0:08:49.240 The latest victim a twenty eight year old woman attacked 0:08:49.240 --> 0:08:52.800 early yesterday. Police say the same man can be seen 0:08:52.880 --> 0:08:56.880 on surveillance cameras in all three locations where homeless people 0:08:56.880 --> 0:08:59.439 have been stabbed in the last week. The first stabbing 0:08:59.520 --> 0:09:01.920 was on jo I Five. Thirty four year old man 0:09:01.960 --> 0:09:04.520 resting on the bench was stabbed and later died from 0:09:04.559 --> 0:09:07.400 his injuries. Three days later, a fifty nine year old 0:09:07.400 --> 0:09:11.440 homeless man was stabbed in the abdomen. Japanese people have 0:09:11.559 --> 0:09:15.959 said goodbye to former Prime Minister Shinzo Abe. A family 0:09:16.000 --> 0:09:19.640 funeral was held at a temple days after his assassination 0:09:19.960 --> 0:09:23.600 that shocked the nation. Abbe the country's longest serving prime minister, 0:09:23.760 --> 0:09:27.680 who remained influential even after he stepped down two years ago, 0:09:28.120 --> 0:09:31.080 was gunned down Friday during a campaign speech. The first 0:09:31.120 --> 0:09:34.160 image from NASA's new Space Telescope is the deepest view 0:09:34.200 --> 0:09:37.720 of the universe ever captured. The image from the James 0:09:37.720 --> 0:09:41.280 Webb Space Telescope was unveiled at the White House President 0:09:41.320 --> 0:09:44.760 Joe Biden. Light from the Oldest Galaxies, the oldest documented 0:09:44.880 --> 0:09:49.040 light in the history of the universe, from over thirteen 0:09:49.320 --> 0:09:53.360 billion Let me say that again, thirteen billion years ago. Today, 0:09:53.480 --> 0:09:57.160 four more galactic shots will be released Global News twenty 0:09:57.160 --> 0:09:59.720 four hours a day on air and on Bloomberg Quicktake 0:09:59.760 --> 0:10:02.040 Power about more than twenty seven hundred journalists and antaalists, 0:10:02.080 --> 0:10:04.360 more than a hundred twenty countries. Michael bar this is 0:10:04.400 --> 0:10:11.880 Bloomberg naked alright, Michael, thank you almost five ten on 0:10:12.000 --> 0:10:14.160 All Street time for the Bloomberg Sports up Take. Good morning, 0:10:14.200 --> 0:10:16.920 John Sho, Good morning Nathan. The Mets are paying maxers 0:10:16.920 --> 0:10:19.679 are at forty three million dollars a year. They are 0:10:19.720 --> 0:10:22.480 doing that for games like last night in Atlanta. Mets 0:10:22.559 --> 0:10:24.400 lead over the Braids once ten and a half games 0:10:24.400 --> 0:10:27.319 at dwindled to one and a half thanks to Atlanta's 0:10:27.400 --> 0:10:30.000 twenty nine and eight records since June one, they have 0:10:30.120 --> 0:10:33.360 the best offense in the National League. Shars shut them down, 0:10:33.360 --> 0:10:35.480 allowed only one hit over the first six sitting stuck 0:10:35.520 --> 0:10:37.760 out and nine shows are in. The Mets beat the 0:10:37.760 --> 0:10:39.760 Prey four to one. We want to play good baseball, 0:10:39.760 --> 0:10:42.240 and especially this time of year. Uh. You know, they're 0:10:42.240 --> 0:10:43.880 a great team over there, and you want to come 0:10:43.920 --> 0:10:46.800 out there and play your best baseball. Uh. And you 0:10:46.840 --> 0:10:48.760 know when you you can collect wins against them, and 0:10:49.200 --> 0:10:51.360 you know, that's kind of a measuring stick win and 0:10:51.400 --> 0:10:54.120 you know it's it's a good feeling. So um, you know. 0:10:54.280 --> 0:10:56.920 But like you said, we're in one getting game here 0:10:56.960 --> 0:10:58.800 in July. We gotta go out there and played, you know, 0:10:58.960 --> 0:11:01.280 great months of John got a home run from Luisti 0:11:01.440 --> 0:11:04.120 or may rbi double from Pete Alonso, Pete an ounce 0:11:04.160 --> 0:11:06.360 he'll go for the home run derby three. Pete. He's 0:11:06.400 --> 0:11:09.400 never not won it, the winner in two thousand nineteen 0:11:09.480 --> 0:11:12.040 and last year didn't have it in the Braves. Ronald 0:11:12.040 --> 0:11:14.439 the Kun you will be one of his competitors next 0:11:14.440 --> 0:11:16.600 Monday in Los Angeles. Rest of the field not getting 0:11:16.640 --> 0:11:19.559 off Yankee so Cincinnati Reds tonight at the Reds are swept, 0:11:19.600 --> 0:11:21.680 Tampa Bay the Rays. Last night Pete the Red Stots 0:11:21.720 --> 0:11:24.280 ten to five. As the British Open gets ready to 0:11:24.280 --> 0:11:27.360 tee off Thursday at St. Andrew's. Still much talk about 0:11:27.400 --> 0:11:29.960 the new Live Tour, with word that the Anti Trust 0:11:30.000 --> 0:11:33.640 Division of the Justice Department is investigating whether the PG 0:11:33.800 --> 0:11:37.319 eight Tour used anti competitive practices against the Lift Tour. 0:11:37.400 --> 0:11:40.360 The PGA says it expected this and is confident there 0:11:40.400 --> 0:11:43.960 was no wrongdoing. John stash Award Bloomberg Sports All right, 0:11:44.080 --> 0:11:47.520 John thanks SMP futures down one staff, futures down a 0:11:47.600 --> 0:11:51.720 hundred seventy six, dance at Futures down fifty nine points 0:11:51.800 --> 0:11:55.079 ahead of tomorrow's CPI data that the White House already 0:11:55.160 --> 0:11:58.960 says will be highly elevated. More on what the White 0:11:58.960 --> 0:12:01.920 House has to say about an inflation next, Bloomberg Washington 0:12:01.920 --> 0:12:08.800 correspondent Joe Matthew is coming up. Bloomberg. Gay Break is 0:12:08.800 --> 0:12:10.520 brought to you by the New York Community Trust. Your 0:12:10.559 --> 0:12:12.360 name will live on as a champion of the causes 0:12:12.400 --> 0:12:14.440 you care about for years to come through a charitable 0:12:14.440 --> 0:12:17.160 request to the New York Community Trust. Learn more at 0:12:17.200 --> 0:12:24.320 philanthropists dot n y C markets headlines and breaking news 0:12:24.400 --> 0:12:27.000 twenty four hours a day at Bloomberg dot com. The 0:12:27.040 --> 0:12:31.160 Bloomberg Business Outland at Bloomberg Quick Tape is a Bloomberg 0:12:31.280 --> 0:12:39.960 Business Flash and I'm Karen Moscow Stocks in u S 0:12:39.960 --> 0:12:42.959 stock index futures are following this morning as the dollar 0:12:43.040 --> 0:12:46.960 and sovereign vaughns rise a pattern highlighting pervasive unease about 0:12:47.000 --> 0:12:50.440 the economic outlook amid high inflation and China struggles with COVID. 0:12:50.679 --> 0:12:53.079 We checked the markets every fifteen minutes throughout the trading 0:12:53.160 --> 0:12:56.920 day on Bloomberg S and P futures down down futures 0:12:56.920 --> 0:13:00.000 and A hundred seventy five and NASDAG futures down fifty seven. 0:13:00.280 --> 0:13:02.679 The decks in Germany's down six tenths of upper sent 0:13:02.840 --> 0:13:05.319 ten year treasury of twenty thirty seconds held two point 0:13:05.400 --> 0:13:08.079 nine one percent yield on the two year two point 0:13:08.160 --> 0:13:11.559 nine eight percent. Ninemex screwed oil is down two point 0:13:11.600 --> 0:13:13.719 eight percent, down two dollars eighty eight cents at a 0:13:13.800 --> 0:13:16.720 hundred one dollars twenty four cents of barrel. Comex school 0:13:16.840 --> 0:13:18.280 is up a tenth of a percent of a dollar 0:13:18.400 --> 0:13:22.640 sixty at seventeen thirty three fifty announced the euro one 0:13:22.720 --> 0:13:25.800 against the dollar, the British pound one point one eight 0:13:26.000 --> 0:13:28.480 to one, and the end is at one thirty seven 0:13:28.559 --> 0:13:31.480 point to zero. Looking at a big coin at this morning, 0:13:31.520 --> 0:13:34.520 down more than three percent at nineteen thousand, seven hundred 0:13:34.600 --> 0:13:37.160 seventy dollars. And today we are watching for a report 0:13:37.200 --> 0:13:39.839 on small business optimism amount at six o'clock Wall Street 0:13:39.840 --> 0:13:43.120 time and PepsiCo. I'm on company schedule to report earnings 0:13:43.160 --> 0:13:46.120 and that's a balloon Berg business flash. Now here's Michael 0:13:46.120 --> 0:13:48.640 Barr with more on what's going on around the world. Muncle, 0:13:48.640 --> 0:13:51.280 Good morning, Good morning care. In another public hearing today 0:13:51.400 --> 0:13:55.679 by the Congressional Committee investigating the deadly January sixth insurrection, 0:13:56.160 --> 0:13:59.319 This hearing will focus on the involvement of white supremacists 0:13:59.480 --> 0:14:02.640 hate wops in the attack on the Capitol and feature 0:14:02.679 --> 0:14:06.760 testimony by former White House Consul Pat Sabloni, whom investigators 0:14:06.760 --> 0:14:11.240 say cooperates former White House aid Cassidy Hutchinson. People in 0:14:11.280 --> 0:14:13.640 Japan to bid their final goodbye to former Prime Minister 0:14:13.679 --> 0:14:17.240 Shinzo Abe. Family funeral was held at the Temple days 0:14:17.280 --> 0:14:21.080 after his assassination that shocked the nation. In baseball, the 0:14:21.120 --> 0:14:24.880 Mets one, red, Sox, A's and Giants lost. Global news 0:14:24.920 --> 0:14:27.000 twenty four hours a day on a or and on 0:14:27.080 --> 0:14:30.640 Bloomberg Quicktake, powered by more than twenty seven hun journalists 0:14:30.640 --> 0:14:33.440 and analysts more than a hundred twenty countries. Michael Barr 0:14:33.480 --> 0:14:35.880 and this is Bloomberg Natham. All right, Michael. Thanks, It's 0:14:35.920 --> 0:14:38.760 five nineteen on Wall Street Live from the Bloomberg Interactive 0:14:38.760 --> 0:14:43.560 Broker Studios. This is Bloomberg Daybreak. Investors are waiting closely 0:14:43.640 --> 0:14:46.840 for the consumer price data that's coming out tomorrow for 0:14:46.840 --> 0:14:49.120 the month of June. The White House is watching for 0:14:49.200 --> 0:14:52.480 it as well, and already warning that it expects June 0:14:52.520 --> 0:14:56.520 consumer prices to be highly elevated. Let's head over to 0:14:56.560 --> 0:14:59.320 the nation's capital. Lots going on there, so we're pleased 0:14:59.320 --> 0:15:02.359 to be joined out by Joe Matthew, Bloomberg, Washington correspondent, 0:15:02.400 --> 0:15:06.360 host of sound On on Bloomberg Radio. Joe, good morning. 0:15:06.440 --> 0:15:08.840 Sounds like the White House is really trying to get 0:15:08.880 --> 0:15:12.280 out in front of tomorrow's inflation data based on what we 0:15:12.240 --> 0:15:14.360 we heard from the White House Press Secretary yesterday, and 0:15:14.560 --> 0:15:16.560 we saw this a month ago as well, and trying 0:15:16.560 --> 0:15:18.440 to say, look, this is gonna be tough. Remember that 0:15:18.560 --> 0:15:21.320 they were trying to delineate the difference for the brief 0:15:21.320 --> 0:15:23.640 the reporters in the briefing room who are not mostly 0:15:23.680 --> 0:15:26.320 financial reporters, and for people in their living rooms, the 0:15:26.360 --> 0:15:30.160 difference between headline and core inflation. It's going over the 0:15:30.160 --> 0:15:31.960 heads of a lot of people to at this time 0:15:32.000 --> 0:15:34.440 around highly elevated to your point. Was the word from 0:15:35.520 --> 0:15:39.240 or the phrase from the Press Secretary Karine Jean Pierre, 0:15:39.560 --> 0:15:43.000 who said the reading as well, was already out of date. 0:15:43.040 --> 0:15:47.280 Now that that's really where the White House is going here. Look, Nathan, 0:15:47.320 --> 0:15:50.240 it's gonna be bad, but guess what, it's already out 0:15:50.240 --> 0:15:53.440 of date. It's a rear view looking indicator. And we 0:15:53.480 --> 0:15:55.920 know that prices have come down a bit since this 0:15:56.600 --> 0:15:58.840 was taken. But of course, if you do this for 0:15:58.880 --> 0:16:01.640 a living, like you do ethan Uh, you note that 0:16:01.720 --> 0:16:07.560 all economic data is right and absolutely and it raises 0:16:07.600 --> 0:16:10.080 the question as we try to look forward here what 0:16:10.160 --> 0:16:11.920 the White House is doing about it. We also heard 0:16:11.920 --> 0:16:14.520 from Karine John Pierre saying that the President has been 0:16:14.840 --> 0:16:18.200 laser focused on getting prices down. That's also a message 0:16:18.200 --> 0:16:20.120 that we've been hearing for the last couple of months. Yeah, 0:16:20.120 --> 0:16:22.400 and we hear it just about every day from from 0:16:22.440 --> 0:16:25.200 most of his surrogates who were out their cabinet secretaries 0:16:25.240 --> 0:16:29.479 and the President himself. You could ask them something about Christmas, 0:16:29.920 --> 0:16:32.800 Nathan whatever, come up with any the the answer will 0:16:32.840 --> 0:16:35.920 be preceded by just a reminder that this president is 0:16:36.000 --> 0:16:39.000 laser focused on inflation. It is his top domestic priority, 0:16:39.040 --> 0:16:41.600 and that's partly why he's getting on an airplane tonight 0:16:41.640 --> 0:16:43.080 to go to the Middle East in an attempt to 0:16:43.120 --> 0:16:46.480 secure more oil resources. But of course energy is only 0:16:46.560 --> 0:16:48.760 part of this inflation story, and we're gonna see that 0:16:49.040 --> 0:16:51.240 come to bear in the CPI report. Is that really 0:16:51.280 --> 0:16:54.280 gonna be the focus of what President Biden is looking 0:16:54.320 --> 0:16:56.400 for when he heads to Saudi Arabia? I mean a 0:16:56.440 --> 0:16:58.960 lot of the critics of the President have been saying 0:16:58.960 --> 0:17:01.960 he's going hat in hand. Well, that's right, more energy, 0:17:02.160 --> 0:17:04.240 and the White House has been careful to try to 0:17:04.280 --> 0:17:07.720 manage the messaging around this. Look, he's clearly going to 0:17:07.800 --> 0:17:10.400 be looking for more oil output, but the White House 0:17:10.480 --> 0:17:12.600 is framing this is more of a security trip. He's 0:17:12.600 --> 0:17:15.480 going to Israel first, it's gonna visit the West Bank. 0:17:15.560 --> 0:17:18.320 Then he gets on an airplane and flies to jetto where, 0:17:18.359 --> 0:17:21.680 and he'll be asking that all OPEC members increased production. 0:17:21.760 --> 0:17:24.199 But look, if you if you read Bloomberg, if you 0:17:24.240 --> 0:17:26.560 have a terminal, you know that Saudi Arabia and the 0:17:26.640 --> 0:17:28.399 U a E are the only members of OPEC with 0:17:28.440 --> 0:17:31.960 any real spare capacity. And there are questions about that, 0:17:32.359 --> 0:17:34.600 not just their ability to pump more, but say we 0:17:34.640 --> 0:17:37.159 get a whole bunch more crude, we gotta gush your Nathan. 0:17:37.760 --> 0:17:40.600 It's only part of the story because US refineries are 0:17:40.640 --> 0:17:44.560 of course already at nine capacity, so it's unclear that 0:17:44.600 --> 0:17:46.679 we'd be able to do a lot with that oil 0:17:46.720 --> 0:17:49.160 to lower gas prices in the time we have left. Joe. 0:17:49.200 --> 0:17:51.800 We have another January sixth hearing coming up later on 0:17:51.840 --> 0:17:54.879 this afternoon. It's gonna be focused on extremist groups. Give 0:17:54.960 --> 0:17:57.520 us a little more of a setup. Extremist groups like 0:17:57.600 --> 0:18:00.199 the Proud Boys, like the oath Keepers. The members of 0:18:00.240 --> 0:18:02.960 this committee, Democrats and Republicans, are hoping to try to 0:18:03.000 --> 0:18:07.320 start connecting the dots, the convergence that Congressman Jamie Raskin 0:18:07.400 --> 0:18:10.480 has talked about. We're just not clear, Nathan, on whether 0:18:10.560 --> 0:18:12.560 this is going to be directly from the White House 0:18:12.600 --> 0:18:15.000 some sort of through some sort of back channels or 0:18:15.119 --> 0:18:18.480 or indirect leaves, a convergence that just happened to take 0:18:18.520 --> 0:18:21.280 place because people were reading the President's tweets. That's what 0:18:21.320 --> 0:18:23.520 we have yet to learn. How much are we expecting 0:18:23.720 --> 0:18:27.399 former White House counsel Hat Sipoloni's closed or testimony from 0:18:27.480 --> 0:18:29.639 last week to factor and they will This woul be 0:18:29.680 --> 0:18:31.840 a big part of the hearing. Of course, they're not 0:18:31.880 --> 0:18:33.439 going to see it in long form, but like we 0:18:33.520 --> 0:18:36.879 have in other interviews other testimony, they'll use clips to 0:18:36.960 --> 0:18:40.399 corroborate what we heard from witnesses like Cassidy Hutchinson, knowing 0:18:40.760 --> 0:18:43.000 that Sippoloni was in the room for a lot of 0:18:43.040 --> 0:18:46.840 those uh, really outrageous events that she described in her 0:18:46.920 --> 0:18:50.160 recent testimony. And we've also gotten word in our last 0:18:50.160 --> 0:18:53.760 thirty seconds here that the next hearing after today has 0:18:53.800 --> 0:18:57.639 been postponed. Is part of that because of the Steve 0:18:57.680 --> 0:19:01.000 Bannon situation. It may well be Look, this was supposed 0:19:01.040 --> 0:19:03.240 to be in prime time on Thursday night. This was 0:19:03.240 --> 0:19:06.320 gonna be the big finale. It has been postponed. We're 0:19:06.320 --> 0:19:08.480 not sure exactly when it's gonna take place, likely in 0:19:08.480 --> 0:19:11.760 the next week. But yes, Donald Trump cleared Bannon to testify, 0:19:11.880 --> 0:19:14.280 giving up executive privilege in this case that could lead 0:19:14.280 --> 0:19:17.840 to some pretty dramatic testimony. Trump wants someone on that panel, 0:19:17.920 --> 0:19:21.119 Nathan or testifying before that committee, to come to his 0:19:21.200 --> 0:19:22.919 defense and thinks Bannon is the one to do it. 0:19:23.320 --> 0:19:26.240 Joe Matthew Bloomberg Washington Correspondent, and of course much more 0:19:26.240 --> 0:19:30.480 to come on sound on every weekday on Bloomberg Radio 0:19:30.640 --> 0:19:33.560 five pm Wall Street Time. We'll be checking back with 0:19:33.640 --> 0:19:36.080 Joe as well later on in this program here on 0:19:36.160 --> 0:19:39.800 Bloomberg and Daybreak. Looking ahead to the market open this morning, 0:19:40.080 --> 0:19:43.760 UH stocks are poised for more losses. Right now, SMP 0:19:43.920 --> 0:19:47.639 futures are down twenty three points down, futures down eight 0:19:47.920 --> 0:19:51.920 NASTAC futures down sixty six. The ten year treasury up 0:19:52.040 --> 0:19:55.720 nineteen thirty seconds, yield two point nine one percent, yield 0:19:55.760 --> 0:19:58.640 on the two year even higher two point nine nine percent. 0:19:59.040 --> 0:20:03.440 The euro point zero zero zero five against the dollar. 0:20:03.880 --> 0:20:09.399 This is Bloomberg Bloomberg eleven three oh Weather chance drafting 0:20:09.440 --> 0:20:12.280 in showers and thunderstorms today. Some of them could be strong, 0:20:12.359 --> 0:20:15.920 as we had a near ninety degrees near ninety again tomorrow. 0:20:16.000 --> 0:20:19.640 Upper eighties by Thursday right now seventy in Central Park, 0:20:25.080 --> 0:20:29.600 broadcasting live from the Bloomberg Interactive Broker Studio in New York, 0:20:29.720 --> 0:20:34.360 Bloomberg E Living Free to Washington, d C. Bloomberg to Boston, 0:20:34.480 --> 0:20:38.280 Bloomberg one oh six one to San Francisco, Bloomberg sixty 0:20:38.440 --> 0:20:41.040 to the country, Sirius XM to the one nine team, 0:20:41.160 --> 0:20:44.680 and around the globe the Bloomberg Business and Bloomberg Radio 0:20:44.760 --> 0:20:53.879 dot Com. This is Bloomberg Daybreak. HiT's five thirty on 0:20:53.880 --> 0:20:57.000 Wall Street Coomboarding. I'm Nathan Hager and I'm Karen Moscow. 0:20:57.040 --> 0:20:59.480 We are just about four hours away from the open 0:20:59.520 --> 0:21:01.280 of US trading. Let's get you have to date on 0:21:01.320 --> 0:21:03.399 the news you need to know. At this hour, US 0:21:03.480 --> 0:21:07.280 futures are lower, adding to yesterday's losses, which saw all 0:21:07.400 --> 0:21:11.439 three major indexes slump. Mike vocals Sang, chief investment officer 0:21:11.520 --> 0:21:14.320 at cap Trust, says, at this point, it's unclear how 0:21:14.359 --> 0:21:17.480 markets are pricing in a recession. This recession has been 0:21:17.520 --> 0:21:20.480 so anticipated that it's far to believe the market hasn't 0:21:20.520 --> 0:21:22.840 discounted most of it. Maybe the surprise will be that 0:21:22.880 --> 0:21:25.840 it's that it's really really a negative and difficult and 0:21:25.880 --> 0:21:28.520 deep recession. We don't think so. It also could be 0:21:28.600 --> 0:21:30.320 that we don't really hit a recession. We're like a 0:21:30.440 --> 0:21:32.879 stone skipping off the top of the pond and moving 0:21:32.920 --> 0:21:35.400 on and back up again. That's the question I think, 0:21:35.440 --> 0:21:37.000 and I think we're going to know a lot more 0:21:37.040 --> 0:21:39.800