WEBVTT - Bloomberg Daybreak: August 3, 2022 - Hour 2 (Radio) 0:00:03.000 --> 0:00:06.560 Live from the Bloomberg Interactive Burger Studios is Bloomberg Daybreak 0:00:06.600 --> 0:00:09.760 for a Wednesday, August three, two. Coming up the shower, 0:00:10.039 --> 0:00:13.400 Nancy Pelosi vows the US will not abandon Taiwan. We'll 0:00:13.440 --> 0:00:16.079 have the latest from the House Speaker's controversial trade. We 0:00:16.120 --> 0:00:19.360 also have key results from five state primaries, plus feed 0:00:19.400 --> 0:00:22.600 officials doubled down on plants to tighten policy, and shares 0:00:22.640 --> 0:00:25.599 of chip maker a m D slump on a lackluster forecast. 0:00:25.960 --> 0:00:28.480 The Senate has passed the burn Pit Bill after an 0:00:28.480 --> 0:00:32.400 outcry from veterans, Plus the January six missing text case widens. 0:00:32.720 --> 0:00:35.839 Michael Blarner More Ahead, I'm John Stashower and sports more 0:00:35.880 --> 0:00:38.360 trains for the Mets and Yankees they both lost their games, 0:00:38.360 --> 0:00:44.520 and Dodgers broadcasting legend Vin Scully has passed away. That's 0:00:44.560 --> 0:00:48.400 all straight ahead on Bloomberg Daybreak on Bloomberg eleven three, 0:00:48.400 --> 0:00:52.480 on New York, Bloomberg N one, Washington, d C, Bloomberg 0:00:52.479 --> 0:00:56.840 one six one, Boston, Bloomberg nine sixties, San Francisco, Sirius 0:00:57.000 --> 0:01:00.320 XM one nineteen and around the world on Bloomberg Radio 0:01:00.440 --> 0:01:07.759 dot Com and via The Bloomberg Business and Good Morning 0:01:07.800 --> 0:01:11.039 I'm par Moscow, I'm Nathan Hagar. Bloomberg Daybreak brought to 0:01:11.040 --> 0:01:13.080 you by b n y Melon's Pershing learned why the 0:01:13.080 --> 0:01:16.560 world's most sophisticated wealth management that institutional firms rely on 0:01:16.680 --> 0:01:20.280 Pershing to help them improve profitability, create efficiency, attract talent, 0:01:20.360 --> 0:01:24.080 and manage risk at Pershing dot Com. And futures are 0:01:24.160 --> 0:01:26.480 higher this morning six oh one on Wall Street. We 0:01:26.560 --> 0:01:29.080 check the markets every fifteen minutes throughout the trading day 0:01:29.160 --> 0:01:31.760 on Bloomberg S and P futures at fifteen points and 0:01:31.800 --> 0:01:34.440 now futures up a hundred twenty three and NASDACK futures 0:01:34.480 --> 0:01:37.240 up forty eight. The decks in Germany is up a 0:01:37.319 --> 0:01:40.440 quarter of a percent. The tenure treasury down three thirty seconds, 0:01:40.680 --> 0:01:43.040 yield two points seven five percent, and they yield on 0:01:43.080 --> 0:01:46.240 the two year three point oh seven percent. Nathan mccaren 0:01:46.280 --> 0:01:48.760 investors are keeping an eye on what's happening in Taiwan. 0:01:48.880 --> 0:01:52.000 This red headline just across the Bloomberg terminal. Nancy Pelosi's 0:01:52.000 --> 0:01:55.480 plane has taken off following a visit that made major 0:01:55.560 --> 0:01:59.240 waves with China. The House Speaker pledge continued US support 0:01:59.280 --> 0:02:04.440 for Taiwan despite Chinese threats now more than ever, America's 0:02:04.480 --> 0:02:08.360 solidarity with Tom Taiwan is crucial, and that is the 0:02:08.400 --> 0:02:11.440 message we are bringing here today. I'm speaking at a 0:02:11.440 --> 0:02:14.640 meeting with Taiwanese President saying, when Speaker Pelosi talked about 0:02:14.639 --> 0:02:18.080 the recently past bill to boost American made semiconductors the 0:02:18.160 --> 0:02:22.480 chips built, all of these members were instrumental in passing 0:02:22.520 --> 0:02:27.639 that important legislation, which we think offers great greater opportunity 0:02:27.720 --> 0:02:32.320 for US Taiwan economic cooperation. Speaker Pelosi is the highest 0:02:32.400 --> 0:02:35.840 ranking elected US official to visit Taiwan in a quarter century. 0:02:35.919 --> 0:02:39.240 China responded to the trip with new military drills surrounding 0:02:39.240 --> 0:02:42.200 the island and fresh trade curbs on fish, fruit and 0:02:42.360 --> 0:02:45.720 sand for construction. Well, Nathan, the timing of how Spigure 0:02:45.720 --> 0:02:49.240 Pelosi's trip is being questioned by some, including Douglas Luta, 0:02:49.320 --> 0:02:52.960 former US Ambassador to NATO. I'm not sure exactly what 0:02:53.080 --> 0:02:55.400 benefit we're getting from the trip, and it comes to 0:02:55.480 --> 0:03:00.239 the sensitive time just as the three senior executive Ranch 0:03:00.280 --> 0:03:04.480 officials have regained contact with their Chinese counterparts and begun 0:03:04.560 --> 0:03:08.800 to discuss the ramifications of the war in Ukraine. So 0:03:09.000 --> 0:03:11.560 it sort of sets us back I think. Former US 0:03:11.600 --> 0:03:14.840 Ambassador to NATO Douglas Lewis spoke at our Washington corresponded 0:03:14.919 --> 0:03:18.320 Joe Matthew on Bloombergy Sound on Catch the program weekdays 0:03:18.360 --> 0:03:21.320 at five pm Eastern on Bloomberg Radio. Well, another major 0:03:21.360 --> 0:03:24.639 political story we're following Karen involves some key primary races 0:03:24.680 --> 0:03:26.919 across the country, and we get the results from Amy 0:03:27.000 --> 0:03:31.480 Morris in our Bloomberg newsroom in Washington. We begin in Michigan, 0:03:31.480 --> 0:03:35.520 where Trump backed Republican commentator Tutor Dixon faces Democratic comment 0:03:35.560 --> 0:03:38.480 Gretchen Whitmer and the race for governor. In November, Dixon 0:03:38.520 --> 0:03:41.760 won the nomination with of the vote. Three House Republicans 0:03:41.800 --> 0:03:44.920 who voted to impeach Donald Trump, Michigan's Peter Meyer and 0:03:45.000 --> 0:03:48.280 Washington's Jamie Herrera Butler and Dan new House all lost 0:03:48.320 --> 0:03:52.280 their primaries to Trump endorsed candidates. In Missouri, Republican Eric 0:03:52.280 --> 0:03:55.160 Schmidt one the nomination with nearly forty six percent of 0:03:55.200 --> 0:03:59.480 the vote, derailing former Governor Eric Gryden's political comeback. In Arizona, 0:03:59.520 --> 0:04:02.400 Blake Math there's one the GOP primary with seven percent 0:04:02.440 --> 0:04:05.200 of the vote, and he'll face incumbent Senator Mark Kelly 0:04:05.200 --> 0:04:08.720 in November, in Kansas, fifty nine percent of voters rejected 0:04:08.760 --> 0:04:12.120 a proposal to outlaw abortion in Washington. I'm Amy Morris, 0:04:12.160 --> 0:04:14.720 Bloomberg Daybreak. All right, Amy, thank you a little more 0:04:14.880 --> 0:04:17.520 on that abortion vote out of Kansas. As we heard 0:04:17.600 --> 0:04:20.640 Amy say, fifty of voters chose to maintain abortion rights 0:04:20.640 --> 0:04:23.600 in the state. Turn Out in Kansas far exceeded other 0:04:23.720 --> 0:04:27.040 contests in recent years, totally nearly twice as many ballots 0:04:27.240 --> 0:04:30.680 as in eighteens primary election. Let's turn back to markets 0:04:30.760 --> 0:04:33.560 care and they are stabilizing this morning after yesterday's declines 0:04:33.600 --> 0:04:37.000 fueled by anxiety over US China relations and hawkish comments 0:04:37.040 --> 0:04:40.080 from the FED. Back four FED officials pushed back at 0:04:40.080 --> 0:04:43.240 the idea that the central bank could pivot away from tightening. Instead, 0:04:43.279 --> 0:04:46.000 they say there is no sign inflation is easing. Here's 0:04:46.040 --> 0:04:51.279 Cleveland's Larettamester. You don't talk about recession per se. It's 0:04:51.320 --> 0:04:55.360 are we growing below or above trend? And you know 0:04:55.440 --> 0:04:57.599 my forecast for this year is that will be growing 0:04:57.640 --> 0:05:03.120 below trend. But that's necessary in order to get price 0:05:03.200 --> 0:05:07.960 increases inflation under control. Those comments from Cleveland Fed President 0:05:08.040 --> 0:05:11.760 Loretta Mester helped trigger a surge in treasury yields yesterday. St. 0:05:11.800 --> 0:05:14.520 Louis FED President James Bullard says the FED is up 0:05:14.520 --> 0:05:18.120 to the task of tackling inflation, so modern central banks, 0:05:18.200 --> 0:05:21.360 I will try to convince you have more credibility than 0:05:21.400 --> 0:05:25.279 their counterparts in the nineteen seventies. Because of this, it 0:05:25.360 --> 0:05:27.760 seems like the FED and the ECB may be able 0:05:27.800 --> 0:05:31.560 to disinflate in an orderly manner and get a relatively 0:05:31.640 --> 0:05:34.799 soft landing. St. Louis President Jim Bullard reiterated the Central 0:05:34.800 --> 0:05:37.640 Banks should probably increase its benchmark rates to his highest 0:05:37.640 --> 0:05:40.279 four percent by the end of the year. Well. Several 0:05:40.320 --> 0:05:42.520 stocks are on the move this morning. Nathan Shares of 0:05:42.560 --> 0:05:45.600 Advanced micro Devices are down more than five percent. That's 0:05:45.640 --> 0:05:48.360 after the chipmaker gave a lukewarm sales forecast to meet 0:05:48.400 --> 0:05:51.640 the story from Bloomberg Charley Pillett. It indicates that market 0:05:51.640 --> 0:05:54.400 share gains against Intel will not make up for the 0:05:54.480 --> 0:05:57.880 decline in PC demand, and he said revenue in the 0:05:57.880 --> 0:06:01.000 period will be about six point seven million dollars. That 0:06:01.120 --> 0:06:04.040 compares with an average analysts estimate of six point eight 0:06:04.040 --> 0:06:07.920 one billion. Under CEO Lisa Sue, am d have been 0:06:07.960 --> 0:06:11.520 taking market share from Intel and benefiting from demand for 0:06:11.520 --> 0:06:14.760 its new powerful server chips, but the outlook shows that 0:06:14.839 --> 0:06:18.120 the company is not insulated from the slowing PC industry, 0:06:18.360 --> 0:06:21.520 which is still the biggest market for its products in 0:06:21.640 --> 0:06:24.920 New York. Charlie Pellett Bloomberg, debreak. All right, Charlie. Thanks. 0:06:25.000 --> 0:06:27.480 Let's look at some other movers this morning, with Bloomberg's 0:06:27.560 --> 0:06:30.479 John Tucker joining us live. Good morning, John, Good morning, Nathan. 0:06:30.520 --> 0:06:33.760 Airbnb shears slumping of the pre market down over seven percent, 0:06:33.920 --> 0:06:38.040 the company missing estimates on bookings shares a match plunging 0:06:38.080 --> 0:06:40.720 this morning, the parent company of dating apps like Tinder, 0:06:41.040 --> 0:06:43.599 delivering of foreign cans for revenue of the current quarter 0:06:43.680 --> 0:06:47.080 that fell short of estimates, growth being slowed still by 0:06:47.120 --> 0:06:51.400 fallout from COVID nineteen and a strong dollar. PayPal shares 0:06:51.520 --> 0:06:56.080 up eleven percent after saying activist Investory Elliott Investment Management 0:06:56.120 --> 0:06:58.960 now one of the largest shareholders, and the cost cutting 0:06:58.960 --> 0:07:02.039 will save nine of million dollars this year. And finally, 0:07:02.120 --> 0:07:05.080 robin Hood Market shares a little change after announcing it's 0:07:05.120 --> 0:07:08.480 eliminating almost a quarter of its workforce. Live in New 0:07:08.560 --> 0:07:11.640 York on John Tucker Bloomberg Daybreak. All right, John, thank you, 0:07:11.680 --> 0:07:14.080 and futures are on the rise. This morning, straight ahead, 0:07:14.080 --> 0:07:17.280 your latest local headlines, plus the check of sports, and 0:07:17.520 --> 0:07:24.640 this is Bloomberg. Thanks Terence. Six oh seven on Wall Street, 0:07:24.680 --> 0:07:27.680 seventy three degrees in Central Park. Gotta crash westbound l 0:07:27.760 --> 0:07:30.880 I at Queen's Boulevard. Details come up in traffic. First 0:07:30.920 --> 0:07:32.720 Michael Barr with what else is going on in New 0:07:32.800 --> 0:07:35.320 York and around the world. Michael, thank you very much. Nathan. 0:07:35.360 --> 0:07:38.960 The Senate passed the Packed Act and at helping veterans 0:07:39.000 --> 0:07:41.840 who have been exposed to toxic burn pits. The bill 0:07:41.920 --> 0:07:45.160 passed and in eight six to eleven vote, overcoming Republican 0:07:45.200 --> 0:07:49.720 claims it contains loopholes that would allow indiscriminate spending. Senate 0:07:49.720 --> 0:07:53.440 Democratic lead to Chuck Schumer's spoke after the bill passed. Finally, 0:07:54.040 --> 0:07:59.000 at long last, America lived up to its ideals by saying, 0:07:59.320 --> 0:08:02.760 to our vet trends who have been exposed to toxic 0:08:02.880 --> 0:08:08.240 chemicals from burn pitts, we have your back. Senate Veterans 0:08:08.240 --> 0:08:12.080 Affairs Committee chair John Tester credited veterans and comedian John 0:08:12.120 --> 0:08:16.080 Stewart's protests for helping get the bill passed. I've never 0:08:16.120 --> 0:08:18.760 seen so many veterans with tears in their eyes and 0:08:18.800 --> 0:08:21.440 tears in their eyes of joy that I've seen in 0:08:21.480 --> 0:08:24.200 the last hour. Senator to Tester says the bill will 0:08:24.200 --> 0:08:28.240 help thousands of sick US veterans. New York Congresswoman Carola 0:08:28.320 --> 0:08:31.280 Maloney has sent she didn't believe that President Joe Biden 0:08:31.280 --> 0:08:35.640 would run for re election in four The comments came 0:08:35.720 --> 0:08:38.880 during a New York One debate last evening among candidates 0:08:38.960 --> 0:08:42.120 vying for the Democratic primary nomination in New York's twelfth 0:08:42.120 --> 0:08:46.840 congressional district. Because of redistrict thing, Maloney is running against 0:08:46.840 --> 0:08:51.319 fellow New York House heavyweight Gerald Nadler and lawyer Savage Pittel. 0:08:51.840 --> 0:08:55.080 The Defense Department electronically wiped the phones of some former 0:08:55.120 --> 0:08:59.840 top officials who served under then President Donald Trump, Bloomberg said, 0:08:59.840 --> 0:09:03.240 back to reports, and the Department of Defense is confirming 0:09:03.280 --> 0:09:05.960 that a d o J investigation of the missing January 0:09:06.040 --> 0:09:10.440 six tax is now confirmed that along with accidentally deleting 0:09:10.480 --> 0:09:16.040 some texts, some phones were purposefully wiped after January six. 0:09:16.640 --> 0:09:19.959 Government lawyers made that admission in court filings tied to 0:09:20.000 --> 0:09:23.600 the Freedom of Information Act lawsuit, and the Oversight Group 0:09:23.679 --> 0:09:27.839 is urging attorney General Merritt Garland to investigate DODS actions 0:09:27.880 --> 0:09:31.680 in allowing the destruction of records potentially relevant to a 0:09:31.760 --> 0:09:36.719 significant matter of national attention and historical importance. In San Francisco, 0:09:36.800 --> 0:09:39.400 I'm at Baxter Bloomberg Daybreak, the State Department more an 0:09:39.400 --> 0:09:43.720 American citizens traveling overseas of possible retaliation by Al Qaeda 0:09:43.800 --> 0:09:46.800 and its supporters after the organization's leader was killed in 0:09:46.840 --> 0:09:49.880 the U s drone struke. Global News twenty four hours 0:09:49.880 --> 0:09:52.600 a day on air and on Bloomberg quick Take, powered 0:09:52.600 --> 0:09:55.720 by more than journalists and analysts more than a hundred 0:09:55.720 --> 0:09:58.800 twenty countries. I'm Michael Barr, and this is Bloomberg, Nathan. 0:09:58.840 --> 0:10:05.440 Thank you, Michael. Almost six ten on Wall Street time 0:10:05.480 --> 0:10:08.199 for the Bloomberg Sports Update with John sesshow Thanks Dathan. 0:10:08.280 --> 0:10:10.840 Vince Galley has passed away. The New York native began 0:10:10.880 --> 0:10:14.240 calling Brooklyn Dodgers games shortly after he graduated from Fordham, 0:10:14.240 --> 0:10:16.760 and he kept the job for sixty seven years. The 0:10:16.800 --> 0:10:20.080 owner of that soothing voice with an unparalleled ability to 0:10:20.160 --> 0:10:23.000 tell stories while calling the game, Vince Scully a true 0:10:23.320 --> 0:10:26.600 broadcasting legend. He was ninety four. Matts and Yankees both 0:10:26.600 --> 0:10:29.120 lost bets in Washington five to one, ending their seven 0:10:29.160 --> 0:10:31.640 game winnings. Draper Mets fans happy to see Jacob de 0:10:31.720 --> 0:10:35.120 Graham on the mound first time this season. Five solid 0:10:35.120 --> 0:10:37.160 and he's allowed just one run. Yankees battled back from 0:10:37.200 --> 0:10:39.320 deficits a couple of times, but in the end they 0:10:39.360 --> 0:10:41.199 lost the Seattle at the Stadium eight to six. The 0:10:41.280 --> 0:10:44.080 Yankees made a couple more trades before the deadline. They 0:10:44.120 --> 0:10:47.319 found a Joey gallow taker in the Dodgers. Gallow will 0:10:47.360 --> 0:10:50.079 complete bust in his time in Pence Pipe, betting just 0:10:50.120 --> 0:10:52.280 one fifty nine. The Dodgers gave the Yanks of top 0:10:52.280 --> 0:10:55.040 pitching prospect Clayton beat Her in return. The Yankees then 0:10:55.040 --> 0:10:57.840 made a more surprising move because Jordan Montgomery has been 0:10:57.880 --> 0:11:00.120 a solid starting pitcher for them, but they did just 0:11:00.160 --> 0:11:03.559 acquire another starter and Frankie Manta, so they shipped Montgomery 0:11:03.600 --> 0:11:06.439 to St. Louis for an outfield He was Yankees GM 0:11:06.520 --> 0:11:10.080 Brian Cashman and Harrison Vader. Dader is you know, one 0:11:10.120 --> 0:11:16.800 of the elite center field UH defenders in the game, um, 0:11:16.920 --> 0:11:20.760 and so he provides a lot of lanes for us, 0:11:21.000 --> 0:11:24.520 I think for a manager when he's when he's healthy Vada, 0:11:24.600 --> 0:11:26.319 currently out with a foot injury. He's in New York. 0:11:26.400 --> 0:11:28.319 Native went to high school at Paris Man and the Bronx. 0:11:28.400 --> 0:11:31.200 Mets acquired two players after the Darren Roff They sent J. D. 0:11:31.320 --> 0:11:33.920 Davis to the Giants. Mets also picked up a reliever, 0:11:34.080 --> 0:11:36.080 Michael Gibbons, from the Cubs. Of course, the big trade 0:11:36.160 --> 0:11:39.520 yesterday with Juan Soto join from Washington to San Diego. 0:11:39.760 --> 0:11:43.040 John Stashwart Bloomberg sports name all right, John, Thanks SMP 0:11:43.160 --> 0:11:45.640 future is now sixteen points. Staff features up a hundred 0:11:45.640 --> 0:11:48.120 thirty six stands A futures hired by forty six points. 0:11:48.120 --> 0:11:50.720 The tenure Treasury is down three thirty seconds. Yield close 0:11:50.760 --> 0:11:52.760 to two point seven six percent. Yield on the two 0:11:52.840 --> 0:11:56.360 year right now three point zero seven percent. Nimex crew 0:11:56.480 --> 0:11:59.400 down three quarters percent. Ninety three dollars seventies cent se 0:11:59.440 --> 0:12:02.840 barrel ahead of the OPEC plus policy meeting. This is 0:12:02.920 --> 0:12:09.280 Bloomberg Bloomberg eleven three oh weather abundant sunshine hid your 0:12:09.360 --> 0:12:13.440 ninety today heat advisory and effect tomorrow into Friday. Highs 0:12:13.600 --> 0:12:22.840 both days near right now seventy three in Central Park markets, 0:12:22.960 --> 0:12:26.040 headlines and breaking news twenty four hours a day at 0:12:26.040 --> 0:12:30.040 Bloomberg dot Com, a Bloomberg Business at and at Bloomberg Quicktape, 0:12:30.559 --> 0:12:39.480 He's a Bloomberg Business Flash and I'm Cameron Moscow and 0:12:39.520 --> 0:12:41.920 you West dot index Future is on the rise today 0:12:41.960 --> 0:12:44.680 as some of the investor anxiety over tense US China 0:12:44.760 --> 0:12:48.240 ties eases, while treasuries extend as slide sparked by hawkish 0:12:48.280 --> 0:12:51.320 Feder Reserve comments. We checked the markets every fifteen minutes 0:12:51.360 --> 0:12:54.199 throughout the trading day. On Bloomberg Guess and p Future 0:12:54.280 --> 0:12:56.240 is of fifteen points and down features of a dred 0:12:56.280 --> 0:12:59.120 twenty five and NASDAG future is up forty The decks 0:12:59.120 --> 0:13:01.199 in Germany's up three tents of upper cent, the ten 0:13:01.240 --> 0:13:05.160 year treasury down four thirday seconds two point seven six percent, 0:13:05.200 --> 0:13:07.720 the yield on the two year three point oh seven percent. 0:13:08.160 --> 0:13:10.679 Non mex screwed oil is down six tents percent or 0:13:10.720 --> 0:13:13.160 sixty one cents, and ninety three seventy nine cents in 0:13:13.200 --> 0:13:15.600 barrel called max schoold is down six tenths per cent 0:13:15.640 --> 0:13:19.560 or ten dollars thirty cents a seventeen seventy. The euro 0:13:19.679 --> 0:13:21.959 one point oh one nine one against the dollar, British 0:13:21.960 --> 0:13:24.840 found one point one eight seven and one thirty three 0:13:24.880 --> 0:13:27.640 point to eight and bitcoin this morning of one point 0:13:27.679 --> 0:13:31.000 seven percent at twenty three thousand, four hundred dollars. That's 0:13:31.000 --> 0:13:33.720 a Bloomberg business flash. Now here's Michael Barr with more 0:13:33.760 --> 0:13:36.160 on what's going on around the world. Michael Karen, thank 0:13:36.200 --> 0:13:39.080 you very much. Kansas voters refused to change the state 0:13:39.160 --> 0:13:42.320 constitution to declare there is no right to an abortion 0:13:42.760 --> 0:13:46.200 on our fifty nine to vote. The state Supreme Court 0:13:46.280 --> 0:13:51.360 decision in that Granite state constitutional abortion rights remains intact. 0:13:51.880 --> 0:13:54.839 President Biden says you will sign an executive order today 0:13:54.920 --> 0:13:59.040 intended to improve access to abortion services by allowing travel 0:13:59.200 --> 0:14:03.560 using Medicaid funds. Hall of Fame broadcaster Vin Scully has 0:14:03.640 --> 0:14:07.280 done Scully broadcast baseball games with the Dodgers for sixty 0:14:07.440 --> 0:14:10.880 seven years. Vin Scully was ninety four asked for the 0:14:10.920 --> 0:14:13.839 games The Yankees lost to the Marineers eight six, the 0:14:13.920 --> 0:14:17.520 Mets lost from the Nationals five one, the Orioles and 0:14:17.600 --> 0:14:21.960 Red Sox one, the A's and Giants lost. Global news 0:14:21.960 --> 0:14:24.200 twenty four hours a day on he Or and on 0:14:24.280 --> 0:14:27.640 Bloomberg quick Take, powered by more Event twenty seven hundred 0:14:27.680 --> 0:14:30.720 journalist and analyst. More than a hundred twenty countries. Michael 0:14:30.760 --> 0:14:33.160 Barr and this is Bloomberg. Nathan No, Michael, thank you. 0:14:33.200 --> 0:14:35.880 It is now six nineteen on Wall Street Live from 0:14:35.880 --> 0:14:39.760 the Bloomberg Interactive Broker Studios. This is Bloomberg and Daybreak, 0:14:39.760 --> 0:14:42.040 and we returned to our top story. Now, how speaker 0:14:42.120 --> 0:14:45.440 Nancy Pelosi pledging that the US will not abandon Taiwan, 0:14:45.840 --> 0:14:48.160 as she has just wrapped up a visit to the 0:14:48.200 --> 0:14:52.120 island that has caused major waves in mainland China. Joining 0:14:52.200 --> 0:14:56.080 us now is Rosalind Matheson, Executive editor for International Government 0:14:56.200 --> 0:14:58.880 for Bloomberg News. Ros Good morning. Of course, a lot 0:14:58.960 --> 0:15:04.320 of saber rattling around this trip, it doesn't go beyond that. Well, 0:15:04.360 --> 0:15:06.840 it's interesting to see the level of the China response 0:15:06.920 --> 0:15:09.560 so far. We're seeing threats to have missile tests a 0:15:09.600 --> 0:15:13.360 though none have actually eventuated, and very big military drills 0:15:13.360 --> 0:15:17.880 they say we'll start tomorrow. We're essentially Chinese ships are 0:15:18.000 --> 0:15:23.840 encircling Taiwan, cutting off the naval passageway and also the airspace. 0:15:24.320 --> 0:15:27.600 But we're also seeing perhaps a sense of restraint here 0:15:27.640 --> 0:15:29.280 from China in a sense that they don't want to 0:15:29.280 --> 0:15:32.240 push things too far. Of course, it's a very different 0:15:32.280 --> 0:15:34.600 kettle of fish when you talk about Taiwan and China, 0:15:34.640 --> 0:15:37.280 then when you talk about say Russia and Ukraine, it's 0:15:37.360 --> 0:15:39.480 very clear the US was never going to send troops 0:15:39.520 --> 0:15:43.200 into Ukraine to defend that Taiwan. Possibly they would have to, 0:15:43.400 --> 0:15:46.840 and so China knows that, and they're very careful perhaps 0:15:46.880 --> 0:15:48.760 to go up to the line, but not over it 0:15:48.800 --> 0:15:52.760 into something that might tip into outsight military confrontation, because 0:15:52.880 --> 0:15:55.880 anything that they do there with Taiwan could feasibly join 0:15:55.960 --> 0:15:58.200 the US, and then you've got a very big regional 0:15:58.560 --> 0:16:00.640 war going on or even be on. So we were 0:16:00.680 --> 0:16:04.200 seeing Chinese rhetoric, a lot of balid cost words from China. 0:16:04.600 --> 0:16:06.720 We're seeing this military action, We're seeing a little bit 0:16:06.760 --> 0:16:09.120 of action on the trade side, but nothing that would 0:16:09.160 --> 0:16:11.960 really tip it over at this point into a broader conflict. 0:16:12.160 --> 0:16:14.520 It's interesting that you say that in the event of 0:16:15.040 --> 0:16:17.640 military action against Taiwan that the U s would have 0:16:17.680 --> 0:16:20.360 to step in, because President Biden has been asked about 0:16:20.360 --> 0:16:21.720 that in the past and he sort of had to 0:16:21.760 --> 0:16:25.600 walk back comments sort of suggesting that the US would 0:16:26.080 --> 0:16:29.840 get directly involved in a military conflict. Does the speaker's 0:16:30.000 --> 0:16:34.400 visit change the dynamic when it comes to that. It 0:16:34.480 --> 0:16:37.440 possibly does. Of course, the US administration was so officially 0:16:37.440 --> 0:16:40.720 the policy remains what it was beforehand. But you saw 0:16:40.880 --> 0:16:43.600 very strong words from the US speaking Nancy Pelosi when 0:16:43.640 --> 0:16:47.080 she met today with the Taiwanese president, signing when showing 0:16:47.160 --> 0:16:48.840 we are with you, We're going to show support for 0:16:48.880 --> 0:16:52.080 you no matter what, and that's definitely a message to Beijing. 0:16:52.480 --> 0:16:55.400 It's also just a possibility of miscalculation. If you have 0:16:55.440 --> 0:16:58.800 a bunch of navy ships and planes in close proximity, 0:16:58.880 --> 0:17:02.000 flying over each other, are each other, and particularly into 0:17:02.040 --> 0:17:05.000 Taiwanese airspace, you just have the risk of something going 0:17:05.000 --> 0:17:10.239 wrong that sets off a confrontation that's inadvertent um So 0:17:10.359 --> 0:17:13.399 certainly China is aware of that also, but but just 0:17:13.680 --> 0:17:16.239 aware that at the margins you're probably expecting a very 0:17:16.320 --> 0:17:18.880 high chance the US will be drawn into a military 0:17:18.920 --> 0:17:21.560 conflict over Taiwan in a way that it's not been 0:17:21.640 --> 0:17:25.400 drawn in over Ukraine. Apart from the possibility of at 0:17:25.440 --> 0:17:28.439 least what China's announced of military drills starting as soon 0:17:28.480 --> 0:17:32.719 as tomorrow, we've got trade moves as well, with some 0:17:32.800 --> 0:17:38.439 restrictions on Taiwanese fish and fruit and Chinese exports of 0:17:39.080 --> 0:17:42.880 sand what's the economic impact. Is China trying to put 0:17:42.920 --> 0:17:47.920 the squeeze on Taiwan economically, well, so far those moves 0:17:47.920 --> 0:17:50.200 are fairly small. They don't know if that just snificant 0:17:50.200 --> 0:17:53.000 amount of the trade, and they're probably a bit symbolic, 0:17:53.080 --> 0:17:56.200 but certainly a Chaiwan want its China wanted to equi 0:17:56.359 --> 0:17:59.920 hit Taiwan very effectively on the economic side, of course, 0:18:00.040 --> 0:18:04.080 but now there's no penalties or measures to curb semiconducted trade, 0:18:04.080 --> 0:18:06.840 for example, which is crucial. So China is doing a 0:18:06.880 --> 0:18:09.560 few symbolic steps, but nothing that could rebound on its 0:18:09.560 --> 0:18:12.879 own economy. Of course, Sieging King is cognizant of the 0:18:12.920 --> 0:18:15.399 fact that he needs to keep his own economy taking 0:18:15.440 --> 0:18:19.200 over in decent shape ahead of his own leadership renewal 0:18:19.720 --> 0:18:22.240 later this year, and that he needs to have China 0:18:22.640 --> 0:18:26.159 domestically looking very stable. And so these are measure that 0:18:26.280 --> 0:18:28.800 that are designed to say to Taiwan, We're not happy 0:18:28.840 --> 0:18:32.920 with what's happening, but certainly not significant trade steps so far. 0:18:33.480 --> 0:18:36.000 And now that Speaker Pelosi is on her way out 0:18:36.040 --> 0:18:39.080 of Taiwan, how does this trip affect the rest of 0:18:39.080 --> 0:18:42.920 her Asian itinerary. We've got about a minute left here. Well, 0:18:43.000 --> 0:18:44.639 she goes to South Korea and then on to Japan. 0:18:44.680 --> 0:18:46.280 As you say, a lot of these countries have been 0:18:46.280 --> 0:18:49.720 a little bit cautious about commenting directly on her stop 0:18:49.800 --> 0:18:52.199 in Taiwan, perhaps not wanting to get drawn into the 0:18:52.200 --> 0:18:56.240 fray with China. Japan might be the one exception there. 0:18:56.240 --> 0:19:00.000 They've been quite strongly supportive of Taiwan in recent months, 0:19:00.440 --> 0:19:03.479 risking Chinese are in turn on that, But most countries 0:19:03.480 --> 0:19:05.680 in Asia probably just glad to be honest that she's 0:19:05.760 --> 0:19:08.040 left Taiwan again and that the trip has gone without 0:19:08.359 --> 0:19:11.159 some kind of inadvant and clash occurring as a result. 0:19:11.920 --> 0:19:14.080 Thanks for this Rose, great having you with us this morning. 0:19:14.160 --> 0:19:18.400 Rosalin Mathison, Executive editor for International Government for Bloomberg News. 0:19:18.440 --> 0:19:21.400 As we continue to follow developments in and around Taiwan, 0:19:21.480 --> 0:19:24.080 now that House Speaker Nancy Pelosi has left the island 0:19:24.080 --> 0:19:28.439 and China is announcing new military drills little encircle the 0:19:28.480 --> 0:19:32.120 island that could begin as soon as tomorrow. Looking ahead 0:19:32.160 --> 0:19:35.000 to the market, open futures are touch higher. We've got 0:19:35.080 --> 0:19:37.600 SMP futures right now up thirteen points, staff futures up 0:19:37.600 --> 0:19:40.840 a hundred fifteen and NAZZAC futures are higher by thirty 0:19:40.840 --> 0:19:43.760 three points. The tenure treasuries down nine thirty seconds, yield 0:19:43.760 --> 0:19:45.840 two point seven seven percent. Yield on the two year 0:19:45.880 --> 0:19:49.159 three point zero eight percent. Got some earnings crossing the 0:19:49.160 --> 0:19:55.320 Bloomberg terminal from CVS boosting their outlook. We'll have more 0:19:55.320 --> 0:19:59.600 on that straight ahead. And you are listening to Bloomberg Daybreak. 0:19:59.680 --> 0:20:09.840 Good morning, Bloomer eleven three oh weather, sunshine, your ninety today, 0:20:09.880 --> 0:20:14.720 heat advisory tomorrow near nine tomorrow and Friday when the 0:20:14.960 --> 0:20:18.680 heat advisory expires. Right now seventy three in Central Park, 0:20:22.080 --> 0:20:26.600 broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.720 --> 0:20:30.160 Bloomberg E living free to Washington, d C. Bloomberg ninety 0:20:30.240 --> 0:20:33.199 nine one to Boston, Bloomberg one O six one to 0:20:33.240 --> 0:20:37.000 San Francisco, Bloomberg nine sixty to the country, Sirius XM 0:20:37.040 --> 0:20:39.320 to the one nine team, and around the globe the 0:20:39.359 --> 0:20:43.840 Bloomberg business in Bloomberg Radio dot Com. This is Bloomberg 0:20:43.920 --> 0:20:51.720 Daybreak and at six thirty on Wall Street. Good morning. 0:20:51.720 --> 0:20:54.600 I'm Nathan Hagar and I'm Karen Moscow. We are just 0:20:54.640 --> 0:20:57.440 about three hours away from the open of US trading time. 0:20:57.480 --> 0:20:58.960 For the five things that you need to know to 0:20:59.040 --> 0:21:03.440 start your day. To you buy Interactive Brokers. Interactive Brokers 0:21:03.520 --> 0:21:06.000 charges margin loan race from two point three percent to 0:21:06.080 --> 0:21:09.000 three point three percent. Their clients can also earn extra 0:21:09.040 --> 0:21:12.000 income by lending their fully paid shares of stock rates 0:21:12.000 --> 0:21:14.080 subject to change. Learn more at I b k R 0:21:14.160 --> 0:21:17.920 dot com slash Compare First Investors keeping an eye on 0:21:17.960 --> 0:21:21.000 the fallout from how Speaker and Nancy Pelosi's visit to Taiwan. 0:21:21.280 --> 0:21:24.280 Pelosi left the island this morning after a visit during 0:21:24.280 --> 0:21:27.000 which he pledged a continued US commitment to the island. 0:21:27.440 --> 0:21:31.960 America's determination to preserve democraty here in Taiwan and around 0:21:32.000 --> 0:21:36.760 the world remains iron cloud how Spiager and Nancy Pelosi 0:21:36.880 --> 0:21:39.679 was speaking at a meeting which Taiwan's President. China responded 0:21:39.720 --> 0:21:42.840 to Pelosi's trip with new military drills and fresh trade 0:21:42.840 --> 0:21:45.760 curbs that were also following key primary races across the country. 0:21:45.840 --> 0:21:49.080 Karen Tutor Dixon, who was backed by Donald Trump, to 0:21:49.119 --> 0:21:52.440 the vote for the Republican nomination in Michigan's governor's race. 0:21:53.040 --> 0:21:56.440 She'll face Democratic incumbent Gretchen Witner this fall. Three House 0:21:56.480 --> 0:21:59.720 Republicans who voted to impeach Donald Trump lost primaries to 0:21:59.760 --> 0:22:03.320 Trump the doors candidates in Michigan and Washington. Republican Eric 0:22:03.359 --> 0:22:06.040 Schmidt secured nearly forty six percent of the vote from 0:22:06.040 --> 0:22:09.439 Missouri's open Senate seat, derailing former Governor Eric Gryton's and 0:22:09.520 --> 0:22:12.560 in Arizona, Blake Masters will face incumbent Senator Mark Kelly. 0:22:12.600 --> 0:22:15.199 He won the GOP primary with thirty seven percent of 0:22:15.240 --> 0:22:18.720 the vote. Well to Markets Now, Nathan, they're stabilizing after 0:22:18.800 --> 0:22:22.160 yesterday's declines. It comes as four Federal Reserve officials pushed 0:22:22.200 --> 0:22:24.760 back against the narrative that the Fed may pivot away 0:22:24.840 --> 0:22:28.800 from tightening. Cleveland President Lorrettemesters as officials are focused on 0:22:28.880 --> 0:22:31.439 the growth outlook by forecast for this year is that 0:22:31.480 --> 0:22:35.440 will be growing below trend, but that's necessary in order 0:22:35.520 --> 0:22:40.880 to get price increases inflation under control. And as Cleveland 0:22:40.920 --> 0:22:44.159 Fed President Larettamester and incorporate news this morning, shares of 0:22:44.200 --> 0:22:46.840 Advanced micro Devices are down about five percent after the 0:22:46.840 --> 0:22:49.720 company gave a lukewarm sales forecast. In Bloomberg's John Tucker 0:22:49.800 --> 0:22:52.520 joins US Live with the details. Good morning, John, and Nathan. 0:22:52.520 --> 0:22:56.000