Speaker 1: B from the Bloomberg Interacted Burger's Studios is Bloomberg day
Speaker 1: Break for Monday, August fifteen two. Coming up the shower,
Speaker 1: China's Central Bank unexpectedly cuts the interest rates. US China
Speaker 1: relations in focus as a congressional delegation visits Taiwan. The
Speaker 1: Fed releases minutes of its July policy meeting, and Walmart
Speaker 1: Home Depot and Target lead a busy week for retailer earnings.
Speaker 1: New York Governor wholecol speaks from where author Salmon Rushdie
Speaker 1: was attacked. Plus New York State is cracking down on speeders,
Speaker 1: especially this week. I'm Michael Vaughan. More ahead, I'm John Stage.
Speaker 1: In sports, the Mets stay hot, they shut out the Phillies.
Speaker 1: The Yankees slump continue to shut out loss in Boston.
Speaker 1: That's All's training ahead on Bloomberg Daybreak on Bloomberg. He
Speaker 1: Live in Free on New York, Bloomberg one, Washington d C,
Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and
Speaker 1: Francisco Sirius XM one nine Team, and around the world
Speaker 1: on Bloomberg Radio dot Com and via the Bloomberg Business App.
Speaker 1: Good Morning, I'm John Tucker and I'm Karen Moscow and
Speaker 1: US stock index futures are lower this morning and we're
Speaker 1: coming up to six o one on Wall Street. And
Speaker 1: we checked the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg S and P futures down twenty points down,
Speaker 1: futures down a thirty nine and nowasday future is down
Speaker 1: fifty five. The decks in Germany is little change ten
Speaker 1: your treasury that'll change yield two point eight three percent,
Speaker 1: and they yield on the two year three point to
Speaker 1: five percent. John and Karen, we begin with a surprise
Speaker 1: out of Asia. China's Central Bank is unexpensedly cut it's
Speaker 1: key interest rate that as fresh data shows its economic
Speaker 1: slowdown getting worse. Bloomberg Daybreak Asia anchor Brian Curtis is
Speaker 1: more from Hong Kong, the PBOC cut it's one year
Speaker 1: rate by ten basis points to two point seven five percent.
Speaker 1: None of the twenty economy is pulled by Bloomberg expected
Speaker 1: to change. The move comes as China's economy weakened in
Speaker 1: July COVID outbreaks and the property crisis taking a toll
Speaker 1: factory output up three point eight percent from a year
Speaker 1: ago retail sales growing two point seven percent, while fixed
Speaker 1: asset investment grew five point seven percent in the first
Speaker 1: seven months of the year. All of those missing estimates
Speaker 1: and China's home prices dropped an eleventh month in a
Speaker 1: row in on Kong, Brian Curtis Bloomberg deybreak all right, Brian,
Speaker 1: thank you. All. Stocks in Asia meantime finished mixed after
Speaker 1: that surprise rate cut from the PBOC, and we get
Speaker 1: the recap from Bloomberg's Juliette Sally in Singapore, Good Morning, Juliet,
Speaker 1: Good morning John and Karen. Markets in Hong Kong and
Speaker 1: China's struggled for direction after the July activity data was released,
Speaker 1: While bonds rallied, the yield on China's tenure not dropping
Speaker 1: as much as seven basis points, one of its steepest
Speaker 1: drops since the onset of the pandemic. The off show
Speaker 1: yuan fell along with the Kiwi and Ozzie dollas Japanese has.
Speaker 1: The rallied then to to five, close to erasing its
Speaker 1: losses for the year. Markets in South Korea and India
Speaker 1: were closed. In Singapore, Juliette Sally Bloomberg deybreak Thanks Juliet
Speaker 1: relations between the U S and Shina and focused once
Speaker 1: again this morning. A US congratual delegation landed in Taiwan
Speaker 1: over the weekend, and Bloomberg's Any Morris has details from
Speaker 1: our newsroom in Washington. This delegation is led by Democratic
Speaker 1: Senator Ed Markey of Massachusetts and tests whether China will
Speaker 1: react more forcefully after how Speaker Nancy Pelosi went to
Speaker 1: Taiwan earlier this month. The delegation is set to meet
Speaker 1: with Taiwan's president and Minister of Foreign Affairs to discuss
Speaker 1: bilateral relations, security, trade, and investment. The delegation will reaffirm
Speaker 1: US support for Taiwan. Reuters sided China's embassy saying this
Speaker 1: latest visit shows the US quote does not want to
Speaker 1: cease stability in the region. In Washington, I'm Amy Morris,
Speaker 1: Bloomberg Daybreak, right, Amy, thank you all back here in
Speaker 1: the US as senior Democrats says he has not seen
Speaker 1: any evidence the materials the FBI seas from Donald Trump's
Speaker 1: home were properly declassified. The former president has seven documents
Speaker 1: Wrenny classified, and his supporters claim he has the power
Speaker 1: to classify documents on his own. Adam Shift, his chair
Speaker 1: of the House Intelligence Committee, the former president has no
Speaker 1: declassification authority, and the idea that, eighteen months after the fact,
Speaker 1: donalka Trump Trump could simply announce, well, I'm you know,
Speaker 1: retroactively declassifying or whatever I took home had the effect
Speaker 1: of declassifying them is absurd. Adam Shift made the comments
Speaker 1: on CDs is face the nation heard Sundays on Bloomberg Radio,
Speaker 1: and turning to the economy, Now, the focus this week
Speaker 1: comes Wednesday. That's when the Feller Reserve issues minutes of
Speaker 1: its July policy meeting. Let's get more from Bloomberg's Vinny
Speaker 1: tells you guys. The minutes could indicate whether FED chair
Speaker 1: Jerome pale One tended to send a dovish signal the
Speaker 1: July's post meeting news conference. Bloombrig Economics is betting he didn't,
Speaker 1: and its full speed ahead on what the interest rates,
Speaker 1: underpinned by royd sence among officials that the upside risk
Speaker 1: to inflation is material. Turning to this week's key economic data,
Speaker 1: US retail sales may show falling gasolene prices freed up
Speaker 1: cash for such things as Amazon Prime Day, while rising
Speaker 1: more traits put in housing starts Jude Bloomberg, Daybreak, Vinnie,
Speaker 1: thank you. We'll retail will also be in focus when
Speaker 1: it comes to earnings this week. Let me get the
Speaker 1: story from Bloomberg's Charley Pellett. Walmart and Target let a
Speaker 1: list of retailers issuing profit warnings last month. This week
Speaker 1: they report, along with Home Depot, Low's, Cole's, Macy's, and
Speaker 1: t j X. Laurie Calvacina's head of US equity strategy
Speaker 1: at RBC Capital Markets, we would tell you we're not
Speaker 1: entirely out of the woods from a market perspective in
Speaker 1: terms of earnings right now, just because if there really
Speaker 1: is a big macro slow downcoming economically, UM numbers do
Speaker 1: still need to come down. But I think for the moment,
Speaker 1: investors are You're just excited about the resilience that we're seeing.
Speaker 1: Also reporting this week, Agile and Technologies, Analog Devices, Applied Materials,
Speaker 1: Cisco Systems, and Deer in New York. Charlie Pellet, Bloomberg,
Speaker 1: day Break, Thanks Shortly, we had earnings overseas out this weekend.
Speaker 1: Saudi Aramco posted the biggest quarterly profit of any Let's
Speaker 1: at company anywhere, net income at the South of Oil
Speaker 1: Giant rose to forty eight point four billion dollars in
Speaker 1: the second quarter from twenty five and a half billion
Speaker 1: a year earlier. Well searching oil prices give a boost
Speaker 1: to energy companies. John both oil and gas have come
Speaker 1: down since there June Hies and US Energy Secretary Jennifer
Speaker 1: Grandholmes says they may fall even further. Bloomberry said Baxter
Speaker 1: has the details. The caveat, as always is the instability
Speaker 1: of the globe. But Grant Holmes has given the four dollars.
Speaker 1: Depending on the region we're seeing now, it should go
Speaker 1: down even further. We'll probably drop to about three dollars
Speaker 1: and seventy eight cents. So we hope that that's true,
Speaker 1: but again it can be impacted by what's happening globally.
Speaker 1: Grant Home on CNN says the President is monitoring very
Speaker 1: closely and we'll do everything within his power to help.
Speaker 1: In San Francisco, I'm at Baxter Bloomberg Gay Break, and
Speaker 1: I think said some news on finances out of Russia now.
Speaker 1: Major Wall Street banks, including JP Morgan Chason City Group
Speaker 1: are reportedly offering to facilitate trades in Russia. Incorporate debt
Speaker 1: and government bonds. Reuter's reports the move took place in
Speaker 1: recent days after guidelines for the U. S. Treasury that
Speaker 1: did allow US holders to wind down their positions ahead
Speaker 1: of the market open. On Wall Street, Dow futures two
Speaker 1: points lower and SMP futures down twenty two, Nasday futures
Speaker 1: down fifty eight points and at six. I settled on
Speaker 1: Wall Street time to bring in Michael Bard to find
Speaker 1: out what else is going on in New York and
Speaker 1: around the world. John, thank you very much, sir. And
Speaker 1: Iranian government official Toni today that Tayron was involved in
Speaker 1: the assault on author Salomon Rushty. The comments from arounds
Speaker 1: Foreign Ministry come after Friday's attack on Rushdi and Western
Speaker 1: New York. New York Governor Kathy Hoco spoke at the
Speaker 1: side of where Rushty survived last week's knife attack. New
Speaker 1: York State will always stand up to protect freedom of expression,
Speaker 1: freedom of speech, and we condemned the cowardly attack. Governor
Speaker 1: Hocole at the Chautaqua Institution promised freedom will always eclipse
Speaker 1: hatred and oppression rust. He suffered a damage liver and
Speaker 1: severed nerves and an arm and and I. However, he
Speaker 1: is off a ventilator and is said to be on
Speaker 1: the road to recovery his assailants, a twenty four year
Speaker 1: old man from New Jersey, according to prosecutors, has pleaded
Speaker 1: not guilty. More details have been disclosing yesterday shooting in
Speaker 1: Jerusalem's Old City. Authorities in Israel say a Palestinian gunman
Speaker 1: opened fire at a bus, wounding several passengers, among them
Speaker 1: a New York family visiting the country. Three were from Brooklyn,
Speaker 1: which Senate Majority Leader Chuck Schumer represents. During a briefing,
Speaker 1: Schumer's shared details, he learned about one of the victims.
Speaker 1: He was very brave. He bent down over his family
Speaker 1: to protect them. He was shot in the neck, but
Speaker 1: and they had him on a respirator, but it looks
Speaker 1: like he will. His condition is improving. Senator Schumer says
Speaker 1: this incident in Jerusalem follows a tense week between his
Speaker 1: real and the Palestinians. Don't speed in New York State,
Speaker 1: especially this week. The week long crackdown has started. Governor
Speaker 1: Hulkel says there are countless risks and tragic consequences to speeding,
Speaker 1: and I want all New Yorkers to be mindful of
Speaker 1: the speed limits in your area. During last year's crackdown,
Speaker 1: police gave out twenty three thousand speeding tickets. Russian President
Speaker 1: Vladimir Putin offered to expand relations with North Korea, reaching
Speaker 1: out to his neighbor as the Kremlin scours the globe
Speaker 1: for weapons for its war in Ukraine. Amy winning film
Speaker 1: and television actor and Haiti has died of injuries from
Speaker 1: a fiery car crash. The spokeswoman says Haiti was peacefully
Speaker 1: taken off life support and has was fifty three Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Bloomberg Quick Take, powered by more than seven hundred journalist
Speaker 1: and analysts more than a hundred twenty countries. I'm Michael Barr.
Speaker 1: This is Bloomberg Jump Michael, thank you. Yes. Now six
Speaker 1: ten on Wall Street. That's time for the Bloomberg Sports Update.
Speaker 1: Here's John test Shower. Thanks John. Shutout win for the Mets,
Speaker 1: shutout loss for the Yankees. Mets have now won seventeen
Speaker 1: of their last twenty games. The Yanks have lost nine
Speaker 1: of eleven. In Fenway, they had just two hits, struck
Speaker 1: out eleven times, fell to the Red Sox. Three nothing.
Speaker 1: The Socks win a series within the division for the
Speaker 1: first time all year. Michael Waka, who had been out
Speaker 1: since June with the injured shoulder, was dominant. Jamison Tyone
Speaker 1: took the loss and ends a two and seven Yankee
Speaker 1: road trip. You're Aaron ud Baseball. You know you're gonna
Speaker 1: go like this. Um Every every team does. So it's
Speaker 1: just about us. You're staying consistent. You know, I don't
Speaker 1: sit on our woes here on our head. You know,
Speaker 1: I'm not happy about it, but that's still a lot
Speaker 1: of work to be done. It still a lot of
Speaker 1: Thingthony to improve on and keep working on. They come
Speaker 1: home for a nine game homestand three with Tampa Bay
Speaker 1: starting tonight, and then four with Toronto, and then two
Speaker 1: with the Mets, who now hit the road for the
Speaker 1: next ten games, four in Atlanta, four in Philadelphia. Mets
Speaker 1: just threw back to back shutouts with the Phillies, who
Speaker 1: scort only two runs in the three game series. Chris
Speaker 1: Bassett got his tent win four and inch from the bullpen.
Speaker 1: The Mets won six to nothing. They are seventy five
Speaker 1: and forty. It's the first time the Mets have been
Speaker 1: thirty five games over five hundred. Jets quarterback Zack Wilson
Speaker 1: headed l a for a knee procedure tomorrow that will
Speaker 1: determine just how long he'll be out. Suffered a bone
Speaker 1: bruise and torn meniscus in the preseason opener. Will's ALLATORUS
Speaker 1: nearly won the US Open, nearly one the pg H,
Speaker 1: but you have lost of the playoffs. In Memphis, finally
Speaker 1: got his first career victory. It came in a playoff,
Speaker 1: and in the start of the FedEx Cup playoffs. NBA
Speaker 1: announced it's Christmas Day schedule. The Knicks will host Philadelphia,
Speaker 1: but the Nets, perhaps because they might trade Kevin Durant,
Speaker 1: will not be featured on Christmas. John Stashower, Bluebird Sports, John,
Speaker 1: all right, thanks, so lunch had ahead of the cash
Speaker 1: open on Wall Street. Futures in the red to risk
Speaker 1: off so far this morning. The down futures down one
Speaker 1: fifty nine points. That's a decline of about half a
Speaker 1: percent right now, SMP even the futures twenty two points slower,
Speaker 1: that's down half a percent. The dance dank you many
Speaker 1: futures fifty three points slower, down four tenths of a percent.
Speaker 1: Looking at crude oil Mymex crude at eighties seven, nineties
Speaker 1: six and barrel that's down about four and a half percent.
Speaker 1: This is Bloomberg and just ahead, China Central Bank delivers
Speaker 1: a surprise rate cut. What does it all mean? We'll
Speaker 1: head to Beijing and speak with Bloomberg's James Meager. Markets
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape.
Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow
Speaker 1: and US Knock Index. Futures are slipping this morning and
Speaker 1: commodities from oil to iron ore falling as disappointing data
Speaker 1: from China further clouds the outlook for the global economy.
Speaker 1: We checked the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg s and p Future is down twenty
Speaker 1: two points down, futures down a hundred sixty three and
Speaker 1: asdack Future is down fifty four. The decks in Germany
Speaker 1: little ship aanged ten, your treasury little change yeld two
Speaker 1: point three percent. They yield on the two year three
Speaker 1: point to five percent. Nimax. Screwed oil is down four
Speaker 1: point four percent, down four dollars one cent at eighty
Speaker 1: eight dollars eight cents of Barrel Comic School is down
Speaker 1: one point three percent, or twenty three dollars sixty cents
Speaker 1: at seventeen two Announce the euro one point one nine
Speaker 1: eight against the dollar British found one point to zero
Speaker 1: six six and the yen one thirty three point four seven.
Speaker 1: And look at a bitcoin down sixtensive percent at twenty
Speaker 1: four thousand, one eighty dollars. That's a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Michael Karen, thank you very much. China
Speaker 1: announced more military drills around Taiwan as the island's president
Speaker 1: met with members of a new US congressional delegation led
Speaker 1: by Senator Ed Market. China regards formal contacts between US
Speaker 1: politicians and the island's government as support for its independence
Speaker 1: from Beijing. Russian diplomat says they are in talks right
Speaker 1: now with the US about a possible prisoners swap for
Speaker 1: w NBA star Britney Grinder. Grinder was sentenced to a
Speaker 1: Russian prison for nine years on drug smuggling charges. In baseball,
Speaker 1: the Red Sox be the Yankees three nothing. The match
Speaker 1: shut out the Phillies six zip. The Nationals and Orioles lost.
Speaker 1: The A's lost to the Astros six three the Giants one.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred
Speaker 1: journalist and analysts more than a hundred twenty countries. I'm
Speaker 1: Michael Barr, and this is Bloomberg Jump. Michael, thank you
Speaker 1: for coming up on six twenty on Wall Street. We
Speaker 1: are live from the Bloomberg intrant to Broker Studios. This
Speaker 1: is Bloomberg Day. Prey. China Central Bank, as you've been hearing,
Speaker 1: is delivered a surprise rate cut. Could be an indication
Speaker 1: of just how band the economic picture has gotten in
Speaker 1: the world's second largest economy. Joining us this morning with
Speaker 1: more in Bloomberg's James Maker, Economics Senator for Asia, joining
Speaker 1: us from Beijing this morning or this evening. James, Thanks
Speaker 1: for me with us. Wh appreciate it. What is the
Speaker 1: date of talents about China's economy the day of this morning?
Speaker 1: You know it was surprisingly bad. You saw not just
Speaker 1: a poor retail sales, which I think was expected. You know,
Speaker 1: the COVID lockdowns that have you know that have continued
Speaker 1: have really damaged China's retail market and consumption and tourism,
Speaker 1: the services sector. But you also saw really bad numbers
Speaker 1: for the industrial industrial outport. You know, we saw steel
Speaker 1: production was the lowest since miden Cement, production was down,
Speaker 1: glass production was down. You know, computers and phone production
Speaker 1: was also down. So, you know, so surprisingly bad across
Speaker 1: the board. And I think you saw you you saw
Speaker 1: a reaction to that just before the numbers came out.
Speaker 1: When then, as you said, the PBOC came out with
Speaker 1: a not with a rate cut, which was which was
Speaker 1: very there was expected by none of the economists that
Speaker 1: we surveyed, and sort of goes against their policy, which is,
Speaker 1: you know, since January of this year, they've been saying
Speaker 1: that there there was enough stimulus and there isn't any
Speaker 1: need for more action from the Central Bank. How did
Speaker 1: trying to get to this point? The two things I
Speaker 1: think that are driving this one is obviously the covered
Speaker 1: zero policy. Then you know the huge lockdowns we saw
Speaker 1: in April and May in uh in Shanghai and Jina
Speaker 1: and and other places in really in other places and
Speaker 1: trying to really damage the economy. We you know, in
Speaker 1: a normal country where you know government statistics, where you
Speaker 1: know not what they are here, I think in the
Speaker 1: company would have gone into a session. But even without that,
Speaker 1: I mean, it was clear that economic activity really slowed.
Speaker 1: The second thing that's really caused this is a massive
Speaker 1: flow down. Housing market prices have been falling now for
Speaker 1: eleven months. Property sales home sales have been falling for
Speaker 1: a basically a year now. Large numbers of property developers
Speaker 1: have declared bankruptcy or in trouble, stopped they've stopped producing
Speaker 1: the houses, they've stopped building the houses, and now more
Speaker 1: and more people are stopping paying their mortgages on the
Speaker 1: houses they haven't been delivered. So, you know, those two
Speaker 1: things combined, the covered zero thing is is shutting down
Speaker 1: industrial production in some places when when they have a lockdown,
Speaker 1: it's also hitting the consumer side of the economy. And
Speaker 1: then you know, housing is such a big portion of
Speaker 1: China's economy and that's in this you know continuing slump,
Speaker 1: and those two things combined it really sort of you know,
Speaker 1: you saw that the results of that are clear in
Speaker 1: the data that came out today. There's a rate cut enough.
Speaker 1: We saw in July we saw the lowest borrowing levels
Speaker 1: of borrowing by households and companies in at least five
Speaker 1: years UH and by yet, the the inter bank rates
Speaker 1: are very very low right now, which indicates that banks
Speaker 1: have a lot of money. It's so it's not the
Speaker 1: fact that they can't lend money, it's the fact that
Speaker 1: noyone wants to borrow money. So whether a tempasis point
Speaker 1: rate cut isn't really going to change that dynamic. The
Speaker 1: problem is not the banks don't have enough money, or
Speaker 1: that the cost of money is too high. The problem
Speaker 1: is that that there's not enough demand for cash. There's
Speaker 1: enough demand from companies to borrow money because they're not
Speaker 1: confident about investing in the future, so they're not taking
Speaker 1: on more debt. And households don't want to borrow money
Speaker 1: because they don't want to buy a house because prices
Speaker 1: of houses are falling right now, and obviously you're not
Speaker 1: going to buy an asset where the price is going
Speaker 1: to continue to fall. So I don't think a rate
Speaker 1: cut is going to be enough to turn this around.
Speaker 1: I mean, the problem is not a problem, as I said,
Speaker 1: it's not it's not supply, it's demand. They really have
Speaker 1: to change the dynamic, especially what's happening in the housing market.
Speaker 1: But also you know, an expectation that if they did
Speaker 1: change the COVID zero policies and stop locking people down,
Speaker 1: maybe that would in the long term lead to more
Speaker 1: stable consumption. Is suing Ping on the ropes right now.
Speaker 1: I don't think that's on the cards. I mean c
Speaker 1: Jumping is looking in the next couple of months, maybe
Speaker 1: in September October, you're going to have the party congress,
Speaker 1: which was you know, there's no way, there's no reason
Speaker 1: to think that he's not going to be confirmed as
Speaker 1: China's leader for a third term. So whether that what
Speaker 1: may happen. What may be happening right now within the
Speaker 1: party is people that sh Jmping is supporting for a
Speaker 1: lower level officials maybe won't be getting as much support
Speaker 1: from the Communist Party and other people who might have
Speaker 1: different ideas about their carey policy may get more support.
Speaker 1: But it's it's completely opaque what's going on. But I
Speaker 1: mean s Jimping is going to be confirmed as China's leader,
Speaker 1: you know, in whenever the party meeting happens. In the
Speaker 1: in the next couple of months. The economic problems that
Speaker 1: China is having the probably make his position more difficult.
Speaker 1: What's the in thirty seconds, what's the next thing we
Speaker 1: should be looking for? I think you're gontas continue to
Speaker 1: see week input to math from China. If you're an X,
Speaker 1: if you're a commodity exploiting country, you shouldn't be looking
Speaker 1: at China to be to be boosting your exports in
Speaker 1: the next six months. If you are a company that
Speaker 1: selling products in China, you shouldn't be looking at China
Speaker 1: to be boosting your sales in the next six months.
Speaker 1: All right, James Pleasure. We appreciated Bloombergs James Meager, Economics
Speaker 1: senator for Asia from Beijing this morning after the surprise
Speaker 1: rate cup from the PBOC, and that is having an
Speaker 1: effect on markets worldwide. It's risk off in the US,
Speaker 1: at least for now ahead of they can show up
Speaker 1: on Wall Street. The Dow futures on eighty one point slower.
Speaker 1: The SMB futures are twenty four points slower than asset
Speaker 1: futures right now, down sixty points. We are seeing in
Speaker 1: the commodity space, Nimax crew down to eighties seven eight
Speaker 1: three barrel. That's down over four and a half percent.
Speaker 1: You're listening to Bloomberg day Break and the Bloomberg Weather
Speaker 1: from meteorologist Rob Caroline. This morning, partly sunny day on tap,
Speaker 1: the high temperature in the mid eighties, cloudy tonight seventy.
Speaker 1: Tomorrow's out look partly to mostly sunny, the height to
Speaker 1: eighty five. Broadcasting live from the Bloomberg Interactive Broker Studio
Speaker 1: in New York, Bloomberg Living Freed to Washington, d C.
Speaker 1: Bloomberg to Boston, Bloomberg one six one to San Francisco,
Speaker 1: Bloomberg nine sixty to the Country, Sirius XM Cho one
Speaker 1: nine and around the globe, the Bloomberg Business app and
Speaker 1: Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's six
Speaker 1: thirty on wool Street. Good morning. I'm John Tucker and
Speaker 1: I'm Karen Moscow and we are just about three hours
Speaker 1: away from the open of US training. It's time to
Speaker 1: the five things you need to notice start your day.
Speaker 1: Brought to you by Interactive Brokers. Interactive Brokers Global Analysts
Speaker 1: helps you find a global investment opportunities to diversify your
Speaker 1: portfolio and discover undervalued companies, I mean a greater growth potential.
Speaker 1: Try ibk our Global analysts today at ib k R
Speaker 1: dot com slash g A. At first, a surprise in Asia,
Speaker 1: China's Central Bank unexpectedly cut its key interest rate ten
Speaker 1: basis points after data show July retail sales, investment, and
Speaker 1: industrial output missed estimates. Bloom Bars and The Current says
Speaker 1: it all signals trouble for the Chinese economy. All of
Speaker 1: his thought it was weak. But the reasons especially concerning
Speaker 1: is because July was meant to be the good month.
Speaker 1: July was meant to be, to think, the month when
Speaker 1: things pick up a bit of momentum again. The third
Speaker 1: quarter was supposed to be better than the second quarter
Speaker 1: and all the rest of it. But of course it's
Speaker 1: now underscores just how much pressure Shaina's economy is actually under.
Speaker 1: And Bloomberg's and the Current says the rate cut shows
Speaker 1: how concerned Chinese officials are about the deepening economic slowdown.
Speaker 1: And back here in the U, s will get a
Speaker 1: couple of data points about the economy this week, Julyants
Speaker 1: five minutes and retail sales. They'll be released on Wednesday.
Speaker 1: China and US relations are in focus once again this morning, John,
Speaker 1: as another U. S congressional delegation has landed in Taiwan.
Speaker 1: It's led by Democratic Senator at Marketam, Massachusetts. The delegation
Speaker 1: is set to meet what Taiwant's president and Minister of
Speaker 1: Foreign Affairs and will reaffirm US support for Taiwan and
Speaker 1: bank in Washington and senior Democrats says he hasn't seen
Speaker 1: any evidence that materials the MBI sees from Donald Trump's
Speaker 1: home were properly declassified. Last week, the former president said
Speaker 1: the documents were all classified declassified that is. Adam Schiff
Speaker 1: is chair of the House Intelligence Committee. He says is absurd.
Speaker 1: The president could retroactively declassify materials anyone in the intelligence
Speaker 1: community that had documents like that, or they would be
Speaker 1: under serious investigation. Adam Schiff making the comments on CBS's
Speaker 1: face the nation heard Sunday's on Bloomberg Radio. Well the
Speaker 1: oil Now, John first ever see Saudi Aramco posting the
Speaker 1: biggest quarterly profit of any listed company anywhere, with net
Speaker 1: income rising to forty eight point four billion dollars in
Speaker 1: the second quarter, while searching oil prices propelled to Ramco
Speaker 1: results last quarter. Both oil and gas that come down
Speaker 1: since they're June highs, and Energy Secretary Jennifer Grindholme tells
Speaker 1: CNN it may fall leven further. The price in the
Speaker 1: fourth quarter of this year per Dallen will probably drop
Speaker 1: to about three dollars and seventy eight cents. We hope
Speaker 1: that that's true. And that's Energy Secretary Grandham. That's the
Speaker 1: find things you need to notice start your day. Brought
Speaker 1: to you by Interactive Brokers. And it is now sixty
Speaker 1: three Wall Street, and it's time for a look at
Speaker 1: world news from around the world and in New York.
Speaker 1: And for that there's Bloomberg's Michael Bars. Yeah, thank you
Speaker 1: very much, sir. Author Salman Rushti is off eventually inter
Speaker 1: and is said to be on the road to recovery.
Speaker 1: New York's Governor Kaffe Hukel called the stabbing of Rushti
Speaker 1: allegedly carried out by a twenty four year old New
Speaker 1: jerseyman quote cowardly HOCl in Western New York spoke at
Speaker 1: the site where rushed. He survived a knife attack on Friday.
Speaker 1: We can damn any individual or any group that dare
Speaker 1: violates the safety of a place like the tako or
Speaker 1: to an attempt an assassination on a world leader that
Speaker 1: cannot happen in New York. You're standing up pocol At.
Speaker 1: The Chautauqua Institution says we will always defend a quote,
Speaker 1: freedom of expression and freedom of speech. We're learning more
Speaker 1: details about yesterday shooting in Jerusalem's Old City. Authorities in
Speaker 1: Israel saying Palestinian gunmen opened fire at a bus, wounding
Speaker 1: several passengers, among them three people from Brooklyn, where Senate
Speaker 1: Majority Leader Chuck Schumer represents. It hits close to club home.
Speaker 1: Three of the families three of those who were shot
Speaker 1: were American and from Brooklyn from Williamsburg. Senator Schumer says
Speaker 1: one of the victims wounded is improving. Russian President Vladimir
Speaker 1: Putin has found to expand relations with North Korea's Kim Johannon.
Speaker 1: The move may complicate President Joe Biden's pushed to isolate
Speaker 1: North Korea. Putin sent a congratulatory message to North Korea
Speaker 1: for its Liberation Day holiday today, marking the end of
Speaker 1: Japan's nineteen ten through ninety five colonial rule over the
Speaker 1: Korean Peninsula, just weeks after he was sentenced the thirty
Speaker 1: years in prison in New York. R Kelly's federal trial
Speaker 1: in Chicago starts today. Legal analists gil Sofur says multiple
Speaker 1: women will testify about being abused when they were miners,
Speaker 1: may face tough questions from defense attorneys. Well, they simply
Speaker 1: try to cast out on everything by calling all the
Speaker 1: the miners now adults who are going to testify liars,
Speaker 1: they may, Legal Analists gil Sofur spoke to ABC. Jury
Speaker 1: selection in the case gets underway today. New York State
Speaker 1: is cracking down on speeders this week. Governor Kathy Oakel
Speaker 1: says this enforcement campaign will be crucial for not only
Speaker 1: to catch speeders, but also to encourage all drivers to
Speaker 1: maintain safe speeds on our roadways. Last year, about twenties
Speaker 1: three thousand tickets were handed out during the crackdown period.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven under
Speaker 1: journalist and analyists more than a hundred twenty countries. I'm
Speaker 1: Michael bar This is Bloomberg, John Michael, thank you. Yeah.
Speaker 1: That sounds six thirty six on Wall Street this time
Speaker 1: for the Bloomberg Sports Update. Here's John Stown Show all right, John.
Speaker 1: Yankee Red Sox games, they usually tend to drag on,
Speaker 1: sometimes for more than four hours. Last night at Fenway Park,
Speaker 1: a crisp two hours fifteen minutes. That's tied for the
Speaker 1: shortest Yankee Red Sox game since the Sox won three nothing.
Speaker 1: The Yanks managed just two hits against Michael Walker, who
Speaker 1: hadn't pitched since June to his shoulder injury. Tommy fam
Speaker 1: who had the walk off hit on Friday, out hit
Speaker 1: the Yankees by himself. He had three hits rappidvers to
Speaker 1: run homer off loser Jamison tay On. So the Yankee
Speaker 1: tailspin continues at two and seven road trip, nine losses
Speaker 1: in the last eleven games, no back to back win
Speaker 1: since July. Still attend game division lead, but they're now
Speaker 1: two and a half games behind Houston for best record
Speaker 1: in the American Lady the Yankster back home tonight to
Speaker 1: play Tampa Bay. The Mets are in Atlanta. They lead
Speaker 1: the Braves by five and a half. The Mets with
Speaker 1: a second straight shut out of the Phillies six. Do
Speaker 1: not think Chris Bassett four relievers combined to beat x
Speaker 1: met Zack Wheeler a home run for Daniel Vogel back
Speaker 1: and Francisco Lindor bro kose Reys record for r b
Speaker 1: I s by a met short stop. The Mets have
Speaker 1: won seventeen to the last twenty forty home wins. That's
Speaker 1: as many as overall losses and thirty five games over
Speaker 1: five hundred for the first time since Jets quarterback Zack Wilson,
Speaker 1: who went down early in the preseason opener, will have
Speaker 1: minor knee surgery tomorrow. The feeling is out two to
Speaker 1: four weeks. Coach Robert Sala asked about not rushing him
Speaker 1: back for the season opener. I think that's all going
Speaker 1: to depend on what happens here with the surgery and
Speaker 1: in the feedback we get from the doctors working with
Speaker 1: Zuck and all and gathering all the information before we
Speaker 1: even come remotely close to making that decision. But uh,
Speaker 1: but yeah, that that that's that's all valid and something
Speaker 1: that we all talk about once we get all the
Speaker 1: information we need to. I said, better than Joe Flaco
Speaker 1: as well as David White. He reserved John actually Bloomberg Sports.
Speaker 1: John John, thanks very much. It is a six thirty
Speaker 1: eight on Wall Street. It's time to take a look
Speaker 1: at some of the stocks, some of the names that
Speaker 1: are moving in the pre market this morning, and for
Speaker 1: that we're joined by Bloomberg's Tatiyana dowry A and Tatiyana.
Speaker 1: I thought the meme stock, So it's through with that,
Speaker 1: but apparently not the most actively traded bed Bath and
Speaker 1: Beyond this morning. Exactly, band Bath and Beyond still on
Speaker 1: fire among the meme stocks. They are up about eight
Speaker 1: percent the pre market now a one dollar one billion
Speaker 1: dollar evaluation the company has and it has gained a
Speaker 1: just looked at, you know, the past two weeks, it
Speaker 1: now has gained one dred and fifty seven percent, so
Speaker 1: more than doubling. It's a share price. But you know,
Speaker 1: this is a company that is struggling with liquidity, certainly
Speaker 1: doesn't have great of fundamentals. Is one of the triple
Speaker 1: C rated companies as well. That means, you know, it
Speaker 1: is going to suffer because of higher interest rates. So
Speaker 1: this rally is certainly not on fundamentals. Um you know,
Speaker 1: it's part of a revival at a comeback of meme stocks,
Speaker 1: and that to me, you know, tells me that this
Speaker 1: is a fed communication problem. So the policymakers need to
Speaker 1: make clear that higher interest rates are coming, because you know,
Speaker 1: the rally in the stock market, uh and especially in
Speaker 1: the meme stock is getting out of control here. If
Speaker 1: you are involved in any way in commodities, you're glued
Speaker 1: to the story coming out of China. China, the second
Speaker 1: largest economy, will slow down, and we're seeing that this
Speaker 1: morning and some of the stocks on the move right exactly. Yeah, Well,
Speaker 1: we're seeing a Freeport nacmaron, one of the companies that
Speaker 1: is mostly impacted in the pre market at trading down
Speaker 1: about a four percent there. But we're also if you
Speaker 1: look the appears very gold and Newman Mining also down
Speaker 1: about two percent. That's, you know, on the China story.
Speaker 1: After that disappointing data, we saw retail sales, industrial output,
Speaker 1: investment all slowed in the month of July and missed
Speaker 1: economists estimates, and that is sort of you know, weighing
Speaker 1: on the global economic outlook and weighing on markets broadly
Speaker 1: this morning, but perhaps more on miners and industrials because
Speaker 1: they're more sensitive to the China story, to the economic story,
Speaker 1: to the global growth story. So not perhaps not surprising
Speaker 1: to see them underperformed there, and they're the ones to
Speaker 1: watch in today's trading. Let's not always pleasure. Appreciate it.
Speaker 1: To Bloomberg's Teta Darier with some of the stocks that
Speaker 1: are moving in the pre market and ahead of the
Speaker 1: cash open on Wall Street. Seeing futures right now, they
Speaker 1: are lower. It's the risk off day down futures right now,
Speaker 1: down on seventy seven points, decline right now about half
Speaker 1: a percent. S and P Many futures down twenty two points,
Speaker 1: that's down half a percent. And the tech heavy DANSDACK
Speaker 1: futures fifty one points lower, down about four tenths of
Speaker 1: a percent. In the commodity space, we're seeing lower crude
Speaker 1: oil this morning, Dimex crew down four and a half
Speaker 1: percent at eighties seven ninety dollars of barrel. You're listening
Speaker 1: to Bloomberg Daybreak. The Bloomberg weather for today for meteorologists
Speaker 1: Ron Carolin Partley, sunny, the highs of the mid eighties,
Speaker 1: cloudy tonight low to seventy, partly mostly Sunday Tomorrow, lights
Speaker 1: again in the mid eighties. This is Bloomberg Markets headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Bloomberg Business apt and at Bloomberg dictap.
Speaker 1: This is a Bloomberg Business flash and I'm Karen Moscow,
Speaker 1: and futures are lower this morning. We go to the
Speaker 1: first word breaking news dask for today's morning call, and
Speaker 1: here's film Loney Bill, Good morning and good morning, Karen.
Speaker 1: That's right. US futures are on the red after Friday
Speaker 1: search with down futures down a hundred and sixty seven points.
Speaker 1: S if you strop twenty one, well nest that futures
Speaker 1: are down by forty two. The US a ten year
Speaker 1: old at two point eight three percent, Bold is down
Speaker 1: twenty six, Oil is sinking, and Bitcoin is lower by
Speaker 1: half a percent. Japan rose one point one percent overnight.
Speaker 1: Note that Shanna's PBOC unexpectedly cut key rates. While your
Speaker 1: markets are quiet this morning. Back in the US on
Speaker 1: the economic Frinday thirty Empire Manufacturing at a ten o'clock
Speaker 1: the NHV Housing market index. In another news, Wells Fargo
Speaker 1: to shrink u S Banking's largest largest mortgage business, and
Speaker 1: Soros Fund Management boosted bets on Tesla, Google and Amazon.
Speaker 1: Wrapping things up, green Dot was cut to equate at
Speaker 1: Barkley's and Dollar General was cut to market perform over
Speaker 1: at BMO Live from the First Breaking News Desk, Bill Maloney, Karen,
Speaker 1: all right, Bill, thank you to hear live breaking news
Speaker 1: of your Bloomberg types. Squalk on your tournament. I'll ask
Speaker 1: you you a w K and that's a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Michael, Karen, thank you very much. China
Speaker 1: has announced more military drills around Taiwan as the island's
Speaker 1: president met with members of a new US congressional delegation.
Speaker 1: The visit came less than two weeks after the House
Speaker 1: Speaker Nancy Pelosi's trip to Taiwan. China regards formal contacts
Speaker 1: between US politicians and the island's government as support for
Speaker 1: its independence from Beijing. The Taliban is declaring today Victory
Speaker 1: Day in Afghanistan, marking one year since their return to power.
Speaker 1: In baseball, the Red Sox beat the Yankees three nothing.
Speaker 1: The match shut out the Phillies six zip. The Nationals
Speaker 1: and Orioles lost. The A's lost to the Astros six
Speaker 1: three the Giants one Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty seven under journalist and analysts more than a
Speaker 1: hundred twenty countries. Michael Barr And this is Bloomberg. Karen right, Michael,
Speaker 1: thank you. It is six forty nine on Wall Street,
Speaker 1: and we turned to news and science and technology now
Speaker 1: with a Bloomberg and j I T STEM report. It
Speaker 1: has brought to you by New Jersey Institute of Technology
Speaker 1: and j I T makes industry ready engineers and more
Speaker 1: than twenty fields. If it's engineering, it's at n j
Speaker 1: I T. Learn more at n j I T dot
Speaker 1: E d U. And here's let's making news and science, technology, engineering,
Speaker 1: and math. The climate crisis is compounding Europe's worst energy
Speaker 1: crisis in years. In Germany, the water level at a
Speaker 1: key way point on the Rhine River is set to
Speaker 1: steady at an extremely low level this week. The Rhine
Speaker 1: is Western Europe's most important river for the transport of
Speaker 1: fuel and other industrial goods. The river is now at
Speaker 1: a level where barges find it uneconomical to transit past
Speaker 1: that way point. A new poll shows Americans are less
Speaker 1: concerned now about how climate change it might impact them personally.
Speaker 1: According to the Associated Press poll u S adults say
Speaker 1: they are extremely or very concerned about the impact of
Speaker 1: climate change on them personally, and that's down in August
Speaker 1: of only about half say their actions have an effect
Speaker 1: on climate change compared with two thirds. And in a
Speaker 1: Twitter post over the weekend, Elon Must said Tesla has
Speaker 1: now made over three million vehicles. Must says about a
Speaker 1: third have been produced in Shanghai. And as a Bloomberg
Speaker 1: and j I t Stem report, John, all right, thanks Karen.
Speaker 1: We are lying for the Bloomberg Interactor Broker Studios where
Speaker 1: it is now six fifty one on Wall Street and
Speaker 1: time to check what's going on in d C. Some
Speaker 1: of the top stories in our nation's capital include the
Speaker 1: ampiised Trump search as lawmakers asking for the contents of
Speaker 1: the documents. How's Democrats asking intelligence chief to assess the
Speaker 1: Trump documents. China announces patrols around Taiwan, the protest visit
Speaker 1: by senators trying to help us figure things out. This morning,
Speaker 1: we're joined by Greg Valier, the chief US policy strategist
Speaker 1: at a g F Investments. That's a tall order to
Speaker 1: figure things out, force, Greg. Look at morning, John, Let's
Speaker 1: start with the former president and the FBI searched. Yeah,
Speaker 1: just from a political perspective, Has anything changed, Does this
Speaker 1: perhaps open a new political front as the mid terms approach? Yeah?
Speaker 1: I do think one thing has changed, and it's extremely ironic,
Speaker 1: and that is that I think the Republicans have become
Speaker 1: more unified and their support of Trump. His base is angry,
Speaker 1: they're furious. Uh, they are swearing allegiance to him. So
Speaker 1: how's that for an irony? After all of this, I
Speaker 1: think there's a feeling among Trump's supporters that the Justice
Speaker 1: Department has overdone it. Um does it bring out more
Speaker 1: undecided in the election? Now that's the key. I think
Speaker 1: while the Republicans are unified, I think that moderate voters undecided,
Speaker 1: the swing voters they're called, might be a little less
Speaker 1: inclined to support Trump. So that that's the other half
Speaker 1: of that narrative. You know, based on the warrant, the
Speaker 1: prosecutor has indicated they're exploring possible violations of the Federal
Speaker 1: Espionage Act, among other allegations. Does you know it's it's
Speaker 1: kind of interesting. Also you see that there have been
Speaker 1: calls on the part of Republicans to perhaps defund the FBI. Um,
Speaker 1: it's a little odd that they're taking this position, right
Speaker 1: now is that. Well. The Republicans, of course, which was
Speaker 1: the party of law and order, and to have them
Speaker 1: speak out against the FBI is and still another irony.
Speaker 1: I think at the end of the day, you really
Speaker 1: have to go to the big one, and that is
Speaker 1: did Trump instigate an insurrection and failed to stop it?
Speaker 1: I think that's the case that will make or break things,
Speaker 1: not you know, what did he do with these documents?
Speaker 1: Does the change is thinking about whether or not to
Speaker 1: run for president again probably makes him more inclined. I
Speaker 1: think he would view the presidency as an opportunity to
Speaker 1: rid himself in some of these charges. You know, he
Speaker 1: could pardon himselves. He could, he could maybe make his
Speaker 1: case more for afully if he were presidents. So no,
Speaker 1: I think the chances of him running have actually increased.
Speaker 1: The Democrats requesting, among other things, a damage assessment. Will
Speaker 1: they be successful making a political hay out of this?
Speaker 1: I think they will. I think again for moderate voters
Speaker 1: they will. But for the Democrats there's one surprising negative,
Speaker 1: and that is that they were hoping to use this
Speaker 1: week last week has opportunities to boast about all the
Speaker 1: things Joe Biden got done, the Chips Bill, and the
Speaker 1: all of the things that he got, the burn pit
Speaker 1: thing for soldiers. The next story is going to be
Speaker 1: student loan released, So instead of talking about their narrative,
Speaker 1: they've been obscured by Trump. And don't forget crude oil.
Speaker 1: The spring greg down four and a half, it's below
Speaker 1: I mean, it has the ways to go, but we suspect.
Speaker 1: But on the inflation front, which seemed to be the
Speaker 1: key Republican argument against Democrats in the mid term, maybe
Speaker 1: that's fading a bit. Absolutely. I think you've got an
Speaker 1: environment where the labor market is still red hot, unemployment
Speaker 1: at three point five, and maybe even more importantly, when
Speaker 1: people fill up their cars, I think they could see
Speaker 1: the price of gasoline getting well below four. With what's
Speaker 1: happening in crude oil, that's a real plus for them.
Speaker 1: In November, Can we touch on China just for a moment.
Speaker 1: You have outraged China after US lawmakers make an unannounced
Speaker 1: visit to Taiwan. What's the purpose of all this and
Speaker 1: what's the what's the political fallout in this country? You know,
Speaker 1: I don't get it much, confessed, and I've talked to
Speaker 1: a lot of people in this town who don't get it.
Speaker 1: So here's Nancy Pelosi who stirs the pot. She provokes China.
Speaker 1: Things get real tense. And now we've got another congressional
Speaker 1: delegation going over there, once again provoking Beijing. I mean,
Speaker 1: I'm not saying we should be just passive, but at
Speaker 1: the same time, I think that these visits are not productive.
Speaker 1: In your note this morning, you say President has to
Speaker 1: address a crucial issue, and he has to do it
Speaker 1: before Labor Day. What is that? Student loans? Forty million
Speaker 1: Americans have student loans, and the White House has had
Speaker 1: extensions of the moratorium on the payments during the pandemic
Speaker 1: every three or four months. They would extend it again
Speaker 1: for another three or four months. Will still another deadline
Speaker 1: is coming on August one. I think Biden unquestionably will
Speaker 1: extend it through the end of the year. There's an
Speaker 1: election coming up. But I think he may also forgive
Speaker 1: loans of up to ten thousand dollars. That's a big
Speaker 1: deal for younger voters. Well, who has the student loans?
Speaker 1: You say younger voters? So they Democrats Republicans are undecided? Well,
Speaker 1: I think a lot of them were apathetic and not
Speaker 1: inclined to vote. This might make them vote. There's a
Speaker 1: flip side to that story, and that is Republicans will
Speaker 1: say this exacerbates the deficit. Number one and number two,
Speaker 1: everybody who made all their loan payments are being penalized
Speaker 1: by this huge political stakes here. I suspect right about
Speaker 1: you say forty million Americans old student loan debt yep,
Speaker 1: and some of them, many of them are in default
Speaker 1: and made something like or in default. But I think
Speaker 1: most loan holders would be glad to see this moratorium.
Speaker 1: And again the deadline is is August thirty one, and
Speaker 1: we had primaries and well in Wyoming among others, that's tomorrow.
Speaker 1: What's next for Liz Cheney, Well, that's the big story
Speaker 1: tomorrow's election. I think she might do a little better
Speaker 1: than Paul's show because Democrats can cross over and vote
Speaker 1: for her. But I don't think she's going to win,
Speaker 1: And once she loses, I think she takes a very
Speaker 1: hard look at New Hampshire in other early primary states.
Speaker 1: I don't rule out her running for president. Greg always
Speaker 1: a pleasure help helping us figure things out in Washington
Speaker 1: this morning. Greg Val, you are the chief US policy
Speaker 1: strategist at a GF Investments this morning, and you can
Speaker 1: read more about these stories on Bloomberg dot com or
Speaker 1: the Bloomberg Terminal. And a reminder you can follow all
Speaker 1: the latest Bloomberg Radio in Washington. That's Bloomberg at one
Speaker 1: oh five point seven fm h D two. Risk off
Speaker 1: the markets this morning after the surprise cup by the
Speaker 1: pboc Dall futures right now onty seven points lower, that's
Speaker 1: down four tens of a percent, smp E Many futures
Speaker 1: down nineteen, that's down four tens of a percent. Nasdaq
Speaker 1: futures right now thirty two points lower again, that's down
Speaker 1: two tens of eight percent. And in the commodity space
Speaker 1: this morning mentioned crude oil NIMEX crude West Texas at
Speaker 1: eight seven seventy four a barrel, down four dollars thirty
Speaker 1: five cents a barrel. Brent crew the international benchmark, that
Speaker 1: is down almost five percent this morning. Even listening to
Speaker 1: Bloomberg Daybreak, I'm John Tucker for Karen Moscow. Thanks for listening,