1 00:00:04,280 --> 00:00:07,560 Speaker 1: Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg 2 00:00:07,640 --> 00:00:11,480 Speaker 1: day Break for Tuesday, July two. Coming up the shower. 3 00:00:11,840 --> 00:00:14,960 Speaker 1: Apple joins the list of companies putting a lid on hiring. 4 00:00:15,320 --> 00:00:19,520 Speaker 1: IBM shares drop on earnings. Netflix reports today. President Biden 5 00:00:19,600 --> 00:00:22,840 Speaker 1: is said to be considering declaring a climate emergency, and 6 00:00:22,920 --> 00:00:25,959 Speaker 1: gas press fall for a thirty five straight day, hitting 7 00:00:25,960 --> 00:00:29,520 Speaker 1: a two month low, a massive thunderstorm and flooding rains 8 00:00:29,600 --> 00:00:32,360 Speaker 1: rink havoc on parts of the city. I'm John Tucker. 9 00:00:32,640 --> 00:00:35,640 Speaker 1: That's story straight ahead. I'm John stas Shaller and sports 10 00:00:35,680 --> 00:00:39,200 Speaker 1: Peter Alonzo dethroned Juan Soto won the home run derby 11 00:00:39,320 --> 00:00:41,720 Speaker 1: m l A where the All Star Game takes place tonight. 12 00:00:44,479 --> 00:00:48,680 Speaker 1: That's all strain ahead on Bloomberg Daybreak on Bloomberg eleven three, 13 00:00:48,720 --> 00:00:53,120 Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one 14 00:00:53,159 --> 00:00:57,680 Speaker 1: oh six one, Boston, Bloomberg nine sixties and Francisco Syrius 15 00:00:57,680 --> 00:01:01,200 Speaker 1: Exam one nineteen and around the world on Bloomberg Radio 16 00:01:01,320 --> 00:01:08,080 Speaker 1: dot Com and via The Bloomberg Business. Good Morning, I'm 17 00:01:08,160 --> 00:01:11,120 Speaker 1: Nathan Hagar, and I'm Karen Moscow and US stock in 18 00:01:11,200 --> 00:01:13,280 Speaker 1: Next Future is on the rise this morning. We're coming 19 00:01:13,319 --> 00:01:15,160 Speaker 1: up to six oh one on Wall Street, and we 20 00:01:15,240 --> 00:01:17,760 Speaker 1: check the markets every fifteen minutes throughout the trading day. 21 00:01:17,880 --> 00:01:20,600 Speaker 1: On Bloomberg and SMP futures are up about twenties six 22 00:01:20,600 --> 00:01:23,080 Speaker 1: points in Our futures up a hundred fifties seven and 23 00:01:23,200 --> 00:01:25,840 Speaker 1: Nastack Future is up about seventy three. The ten year 24 00:01:25,880 --> 00:01:29,080 Speaker 1: Treasury Little Change yield two point eight percent, and they 25 00:01:29,160 --> 00:01:31,880 Speaker 1: yield on the two year three point one six percent, 26 00:01:32,240 --> 00:01:36,240 Speaker 1: and NIMEX screwed Oil is down three tenths of a percent. Nathan, Karen, 27 00:01:36,280 --> 00:01:38,720 Speaker 1: we begin with a growing number of companies clamping down 28 00:01:38,720 --> 00:01:41,039 Speaker 1: on hiring. It's a trend showing up in firms from 29 00:01:41,040 --> 00:01:43,840 Speaker 1: tech to banking. Let's get the latest live from Bloomberg's 30 00:01:43,880 --> 00:01:47,000 Speaker 1: Rnda Young. Good morning, Rnita, Good morning, Nathan. Bloomberg. Sources 31 00:01:47,040 --> 00:01:50,320 Speaker 1: say Apple is putting a lid on hiring to limit spending. 32 00:01:50,720 --> 00:01:53,880 Speaker 1: Leaders have not adopted a company wide policy, but this 33 00:01:54,000 --> 00:01:58,120 Speaker 1: more cautious approach mimics moves by Amazon and Microsoft, and 34 00:01:58,160 --> 00:02:00,960 Speaker 1: it's more evidence that even Silica and Valley is worried 35 00:02:01,000 --> 00:02:04,960 Speaker 1: about an impending recession. Now, Goldman Sachs also plans to 36 00:02:05,040 --> 00:02:09,400 Speaker 1: slow hiring to reign in expenses. CFO Dennis Coleman says 37 00:02:09,560 --> 00:02:12,800 Speaker 1: Goldman could also reduce the pace of replacing staff it 38 00:02:12,840 --> 00:02:17,160 Speaker 1: loses because of attrition and will reinstate annual performance reviews. 39 00:02:17,760 --> 00:02:20,520 Speaker 1: Live in New York, I'm rened a young Bloomberg daybreak. 40 00:02:20,600 --> 00:02:22,480 Speaker 1: All right, we need to thank you. We're also seeing 41 00:02:22,520 --> 00:02:25,280 Speaker 1: a tepid outlook from another big name and tag. Shares 42 00:02:25,320 --> 00:02:28,200 Speaker 1: of IBM or down about five percent in early trading. 43 00:02:28,400 --> 00:02:31,440 Speaker 1: The company has lowering forecast for free cash flow this 44 00:02:31,520 --> 00:02:33,800 Speaker 1: year due to the impact of a strong dollar and 45 00:02:33,840 --> 00:02:36,919 Speaker 1: the loss of business in Russia. Bloomberg's Charlie Pellett has 46 00:02:36,960 --> 00:02:41,919 Speaker 1: more the revision overshadowed results the top analysts estimates, signaling 47 00:02:41,960 --> 00:02:46,560 Speaker 1: the demand from mainframe computers, consulting, and cloud services remains 48 00:02:46,600 --> 00:02:51,239 Speaker 1: strong amid concerns of a pullback in tech spending. IBM 49 00:02:51,320 --> 00:02:54,639 Speaker 1: set of estimates free cash flow of ten billion dollars 50 00:02:54,639 --> 00:02:57,320 Speaker 1: this year, at the low end of a previous range 51 00:02:57,320 --> 00:03:01,040 Speaker 1: of ten to ten point five billion dollars. Chief financial 52 00:03:01,040 --> 00:03:03,960 Speaker 1: Officer Jim Kavanaugh said the reduced range is not a 53 00:03:04,000 --> 00:03:08,120 Speaker 1: result of a broader business slowdown. In New York. Charlie 54 00:03:08,120 --> 00:03:11,359 Speaker 1: Pellett Bloomberg, pay break, all right, Charlie, thank you. Earnings 55 00:03:11,400 --> 00:03:13,840 Speaker 1: continue to roll in with ten companies in the SMP 56 00:03:14,480 --> 00:03:17,840 Speaker 1: reporting today. This afternoon, we hear from Netflix. Bloomberg's Tom 57 00:03:17,840 --> 00:03:20,480 Speaker 1: Busby has a preview, well the keeper investors will be 58 00:03:20,560 --> 00:03:24,079 Speaker 1: subscriber losses for the second quarter, which the streaming giant 59 00:03:24,160 --> 00:03:27,640 Speaker 1: predicted good total two million in its previous earnings report 60 00:03:27,639 --> 00:03:30,840 Speaker 1: in April, when it announced its first ever subscriber losses. 61 00:03:31,200 --> 00:03:33,600 Speaker 1: Also have note whether the blowout success of the latest 62 00:03:33,600 --> 00:03:37,400 Speaker 1: season of Stranger Things may have helped Netflix keep some subscribers, 63 00:03:37,720 --> 00:03:40,640 Speaker 1: and it's new crackdown on password sharing now when effect 64 00:03:40,680 --> 00:03:43,800 Speaker 1: in five Latin American markets. Bloomberg and Census calls for 65 00:03:43,840 --> 00:03:47,360 Speaker 1: earnings per share of two dollars cents revenues of just 66 00:03:47,440 --> 00:03:51,680 Speaker 1: over eight billion dollars. Tom Busby Bloomberg, daybreak, all right, Tom, 67 00:03:51,720 --> 00:03:54,080 Speaker 1: thank you. None of the latest, and Twitter's legal dispute 68 00:03:54,080 --> 00:03:57,560 Speaker 1: with Elon Musk. Twitter is dismissing Musk's complaints that he 69 00:03:57,600 --> 00:04:01,360 Speaker 1: does not have enough information about space AM and robot accounts. 70 00:04:01,600 --> 00:04:04,920 Speaker 1: The company calls it a relevant sideshow and wants a 71 00:04:05,000 --> 00:04:07,240 Speaker 1: judge to hold a trial as soon as possible over 72 00:04:07,360 --> 00:04:11,240 Speaker 1: Musk's cancelation of his forty four billion dollar takeover. Watching 73 00:04:11,280 --> 00:04:13,720 Speaker 1: Bitcoin rise this morning, Karen, but it's off its highs 74 00:04:13,760 --> 00:04:16,240 Speaker 1: for the day. In fact, earlier Bitcoin almost hit twenty 75 00:04:16,279 --> 00:04:19,599 Speaker 1: three thousand. The cryptocurrency has struggled to escape a nineteen 76 00:04:19,600 --> 00:04:22,480 Speaker 1: to twenty two thousand range as investors licked their wounds 77 00:04:22,520 --> 00:04:25,599 Speaker 1: from the recent route. Martin Chavez from six Street Partner 78 00:04:25,640 --> 00:04:29,720 Speaker 1: says the time has come to finally regulate the crypto market. Regrettably, 79 00:04:30,160 --> 00:04:34,960 Speaker 1: we usually wait until some calamity before there is regulation, 80 00:04:35,320 --> 00:04:38,680 Speaker 1: and the questions always with this calamity big enough or 81 00:04:38,680 --> 00:04:41,279 Speaker 1: does there need to be another leg down before we 82 00:04:41,320 --> 00:04:44,600 Speaker 1: have the appropriate regulation. Martin Chavez at six Street Partners 83 00:04:44,600 --> 00:04:47,120 Speaker 1: made the comments in an interview on Bloomberg Television. We'll 84 00:04:47,120 --> 00:04:49,240 Speaker 1: have more on the future of bitcoin throughout the day 85 00:04:49,320 --> 00:04:52,520 Speaker 1: as the Bloomberg Crypto Summit gets underway in New York. Well. 86 00:04:52,600 --> 00:04:55,679 Speaker 1: Turning to the global economy now, Nathan, pressure is building 87 00:04:55,680 --> 00:04:58,560 Speaker 1: on the European Central Bank. Sources say the ECB may 88 00:04:58,560 --> 00:05:01,719 Speaker 1: consider raising interest 's by more than expected this week 89 00:05:01,920 --> 00:05:05,839 Speaker 1: because the worsening inflation backdrop. Sources sat the central Bank 90 00:05:05,880 --> 00:05:08,560 Speaker 1: may raise rates by fifty basis points on Thursday. That's 91 00:05:08,600 --> 00:05:11,640 Speaker 1: double the twenty five point Hi get outlined just last month. 92 00:05:11,760 --> 00:05:13,760 Speaker 1: Well back here in the US, Karen prices the pump 93 00:05:13,839 --> 00:05:16,719 Speaker 1: keep dropping. In fact, they've fallen for thirty five straight days, 94 00:05:16,800 --> 00:05:19,440 Speaker 1: hitting a two month low. Triple A says the nationwide 95 00:05:19,440 --> 00:05:22,160 Speaker 1: averages just below four fifty a gallon prices have fallen 96 00:05:22,200 --> 00:05:24,880 Speaker 1: more than ten percent. S it's hitting a record last month. 97 00:05:25,279 --> 00:05:27,880 Speaker 1: Climate Change and Focus at the White House Nathan President 98 00:05:27,920 --> 00:05:31,760 Speaker 1: Biden is reportedly considering declaring a climate emergency as soon 99 00:05:31,800 --> 00:05:34,920 Speaker 1: as this week. Details now from Bloomberg's Amy Morris from 100 00:05:34,920 --> 00:05:38,200 Speaker 1: our ninety nine one newsroom in Washington. Senator Jeff Murkley 101 00:05:38,240 --> 00:05:41,680 Speaker 1: of Oregon says climate legislation has no chance to get 102 00:05:41,680 --> 00:05:44,640 Speaker 1: through Congress. Instead, he says the president should use the 103 00:05:44,640 --> 00:05:48,040 Speaker 1: full powers of the executive branch to declare an emergency, 104 00:05:48,320 --> 00:05:50,800 Speaker 1: which would give him the authority to redirect funds for 105 00:05:50,839 --> 00:05:54,560 Speaker 1: clean energy projects or restrict offshore drilling, and could even 106 00:05:54,560 --> 00:05:57,920 Speaker 1: curtail the transport of fossil fuels. And Now sources they're 107 00:05:57,920 --> 00:06:01,359 Speaker 1: telling the Washington Post that Biden is expected to announce 108 00:06:01,400 --> 00:06:04,840 Speaker 1: additional actions aimed at curbing emissions as soon as this 109 00:06:04,920 --> 00:06:08,440 Speaker 1: week in Washington, I'm any Morris Bloomberg daybreak. All right, Amy, 110 00:06:08,440 --> 00:06:10,839 Speaker 1: thank you. Let's turn to Capitol Hill now, where computer 111 00:06:10,960 --> 00:06:13,280 Speaker 1: chips are in focus. The Senate wants to quickly pass 112 00:06:13,360 --> 00:06:16,200 Speaker 1: fifty two billion dollars in grants and incentives for American 113 00:06:16,240 --> 00:06:19,919 Speaker 1: semiconductor makers. Senate majority leader Chuck Schumer says Democrats and 114 00:06:19,960 --> 00:06:23,160 Speaker 1: Republicans are hashing out the final details. The legislation is 115 00:06:23,160 --> 00:06:25,599 Speaker 1: a scaled down version of a larger bill intended to 116 00:06:25,640 --> 00:06:29,360 Speaker 1: make the US technology sector more competitive with China. Supply 117 00:06:29,440 --> 00:06:32,400 Speaker 1: chain issues are also in focus this morning, Nathan Treasury 118 00:06:32,400 --> 00:06:35,240 Speaker 1: Secretary Janet Yellen is calling on so called to trust 119 00:06:35,320 --> 00:06:37,920 Speaker 1: in to US allies to help fix the supply chain 120 00:06:38,240 --> 00:06:41,159 Speaker 1: seeing in South Korea. Yelling called on US partners to 121 00:06:41,200 --> 00:06:45,039 Speaker 1: strength and trade relationships with what she calls friend shoring. 122 00:06:45,640 --> 00:06:51,400 Speaker 1: Freensuring is about deepening relationships and diversifying our supply chains 123 00:06:51,920 --> 00:06:56,159 Speaker 1: with a greater number of trusted trading partners. The purposes 124 00:06:56,200 --> 00:07:00,200 Speaker 1: to lower risks for our economy, and there's tread race. 125 00:07:00,200 --> 00:07:03,200 Speaker 1: Secretary Johnny Yellen singled out China as a country on 126 00:07:03,200 --> 00:07:07,080 Speaker 1: which the US and others should be less reliant futures 127 00:07:07,120 --> 00:07:10,440 Speaker 1: this morning on the rise, SMP futures up about thirty 128 00:07:10,480 --> 00:07:13,440 Speaker 1: points down. Futures have a hundred eighty nine nsday futures 129 00:07:13,480 --> 00:07:16,440 Speaker 1: up eight five Straight ahead, your latest local headlines, plus 130 00:07:16,440 --> 00:07:23,920 Speaker 1: a check of sports. This is Bloomberg. Thanks Karen six 131 00:07:23,960 --> 00:07:26,560 Speaker 1: O seven on Wall Street, seventy three degrees in Central Parks. 132 00:07:26,560 --> 00:07:28,920 Speaker 1: We get ready for a heat wave and we're still 133 00:07:29,000 --> 00:07:31,800 Speaker 1: dealing with an accident investigation on the westbound Belt Parkway. 134 00:07:31,880 --> 00:07:34,520 Speaker 1: More coming up in traffic. First John Tucker with more 135 00:07:34,520 --> 00:07:36,440 Speaker 1: on what's going on in New York and around the world. 136 00:07:36,560 --> 00:07:39,040 Speaker 1: John may feel a powerful thunderstore I was swept over 137 00:07:39,080 --> 00:07:42,800 Speaker 1: in New York City yesterday afternoon, swamping highways, flooding trade lines, 138 00:07:43,520 --> 00:07:52,680 Speaker 1: casting the evening commune into sudden disarray. Heavy rains caused 139 00:07:52,680 --> 00:07:55,240 Speaker 1: a massive sinkhole to open up in the Bronx and 140 00:07:55,360 --> 00:07:58,120 Speaker 1: swallow a VAM. New York City is completed in the 141 00:07:58,160 --> 00:08:00,400 Speaker 1: first phase of at one point four or five another 142 00:08:00,440 --> 00:08:03,160 Speaker 1: project of fortifying a section of Lower manhapt along the 143 00:08:03,160 --> 00:08:06,920 Speaker 1: East River that was devastated by Hurricane Sandy. The East 144 00:08:06,920 --> 00:08:10,800 Speaker 1: Side Coastal Resiliency Project will elevate park land along the 145 00:08:10,840 --> 00:08:15,360 Speaker 1: East River stretching two point four miles, and temperatures in 146 00:08:15,400 --> 00:08:18,720 Speaker 1: the UK set to hit a record today at Bloomberg's 147 00:08:18,880 --> 00:08:22,800 Speaker 1: Advance that joins US now from sweltering London. Good Morning John. 148 00:08:22,840 --> 00:08:25,320 Speaker 1: Today is said to be the hottest day on record 149 00:08:25,480 --> 00:08:28,080 Speaker 1: in the UK, with temperatures as high as one hundred 150 00:08:28,160 --> 00:08:31,960 Speaker 1: and seven degrees fahrenheit's That follows the warmest nights on record, 151 00:08:32,000 --> 00:08:35,440 Speaker 1: with temperatures no lower than seventy eight degrees in some places. 152 00:08:35,840 --> 00:08:38,720 Speaker 1: Brutal conditions have already struck India, parts of the U 153 00:08:38,840 --> 00:08:41,240 Speaker 1: S and Western Europe this year, but they are a 154 00:08:41,280 --> 00:08:44,240 Speaker 1: particular challenge of places like Britain, which are not used 155 00:08:44,240 --> 00:08:47,040 Speaker 1: to extremes of hot or cold. In London, I'm you 156 00:08:47,120 --> 00:08:50,000 Speaker 1: in Potspin, Big Daybreak and the January six Committee will 157 00:08:50,040 --> 00:08:53,439 Speaker 1: be extending its inquiry. That story this morning from Bloomberg's 158 00:08:53,520 --> 00:08:57,600 Speaker 1: head Baxter Cherry. Bennie Thompson says information keeps coming in. 159 00:08:57,960 --> 00:09:00,960 Speaker 1: He says it includes a secret service text. First, he 160 00:09:01,000 --> 00:09:03,800 Speaker 1: says the committee will put out a scale back interim 161 00:09:03,880 --> 00:09:07,240 Speaker 1: report in September, which is when it was scheduled to end. 162 00:09:07,720 --> 00:09:10,199 Speaker 1: He says now he will not predict a date when 163 00:09:10,240 --> 00:09:13,280 Speaker 1: the final report would be issued. The committee will hold 164 00:09:13,320 --> 00:09:16,760 Speaker 1: another public hearing Thursday, and then Thompson says they will 165 00:09:16,840 --> 00:09:20,480 Speaker 1: decide where to go from there. In San Francisco, I'm 166 00:09:20,520 --> 00:09:23,760 Speaker 1: at Baxter Bloomberg Daybreak. It will take almost a lifetime 167 00:09:24,000 --> 00:09:28,120 Speaker 1: seven decades for US colleges and universities to achieve racial 168 00:09:28,200 --> 00:09:31,480 Speaker 1: parody among its freshman classes. That according to a new 169 00:09:31,520 --> 00:09:34,600 Speaker 1: studied by McKenzie and Company, they analyze data for more 170 00:09:34,640 --> 00:09:38,720 Speaker 1: than three thousand institutions with enrollment of about two point 171 00:09:38,760 --> 00:09:42,480 Speaker 1: four million first time students, enrollment among black and Native 172 00:09:42,520 --> 00:09:46,800 Speaker 1: American students actually declined in some cases. Global News twenty 173 00:09:46,800 --> 00:09:49,160 Speaker 1: four hours a day on air in a Bloomberg Quick Take, 174 00:09:49,240 --> 00:09:52,679 Speaker 1: power by more than journalists and analysts in more than 175 00:09:52,720 --> 00:09:56,800 Speaker 1: one twenty countries. I'm John Tucker and this is Bloomberg. Nathan. 176 00:09:56,920 --> 00:10:03,520 Speaker 1: Thank you, John six o nine on Wall Street time 177 00:10:03,559 --> 00:10:06,199 Speaker 1: for the Bloomberg Sports Update, which on stas Thanks Nathan. 178 00:10:06,240 --> 00:10:09,000 Speaker 1: It's ironic that Juan Soto won the home run derby 179 00:10:09,000 --> 00:10:11,560 Speaker 1: in Los Angeles because he is very much in the news. 180 00:10:11,679 --> 00:10:14,080 Speaker 1: The twenty three year old star of the Washington Nationals 181 00:10:14,120 --> 00:10:18,040 Speaker 1: just rejected a contract offer of fifteen years and four 182 00:10:18,120 --> 00:10:20,719 Speaker 1: hundred and forty million dollars in. The Nats, who had 183 00:10:20,720 --> 00:10:23,520 Speaker 1: been saying they were not going to trade Soto, are 184 00:10:23,600 --> 00:10:27,600 Speaker 1: now entertaining trade offers. The Mets and Yankees both believed 185 00:10:27,600 --> 00:10:30,440 Speaker 1: to be interested Soto's under his current contract until after 186 00:10:30,480 --> 00:10:34,600 Speaker 1: the fourth season. By winning the Derby, Soto earned a million. 187 00:10:34,720 --> 00:10:37,840 Speaker 1: He beat Seattle's Julio Rodriguez in the final. He won 188 00:10:37,880 --> 00:10:40,240 Speaker 1: a half million. As a rookie, he only makes seven 189 00:10:40,320 --> 00:10:43,000 Speaker 1: hundred thousand from the Maritors. The one year old Rodriguez 190 00:10:43,200 --> 00:10:45,120 Speaker 1: put on a show over the first two rounds with 191 00:10:45,280 --> 00:10:49,640 Speaker 1: sixty three home run semifinal losers were the Mets Pete Alonso, 192 00:10:49,960 --> 00:10:52,560 Speaker 1: the two time defending champ, and forty two year old 193 00:10:52,600 --> 00:10:54,880 Speaker 1: Albert Pools, who was in the field in this the 194 00:10:54,920 --> 00:10:57,920 Speaker 1: final season of his Hall of Fame career. Clayton Kershaw 195 00:10:57,920 --> 00:11:01,720 Speaker 1: I headed the Cooperstown someday. Surprisingly, he's never four started 196 00:11:01,720 --> 00:11:03,360 Speaker 1: an All Star Game. He'll be on the mound for 197 00:11:03,400 --> 00:11:06,000 Speaker 1: the National League tonight in his home part. I really 198 00:11:06,000 --> 00:11:08,600 Speaker 1: didn't think anything of it at the time. I was like, well, yeah, 199 00:11:08,600 --> 00:11:10,880 Speaker 1: I'll be fun to do it or whatever. But um, 200 00:11:10,920 --> 00:11:13,000 Speaker 1: now that it's finally here and I get to uh, 201 00:11:13,120 --> 00:11:15,520 Speaker 1: start that game tomorrow night. It just uh, it means 202 00:11:15,559 --> 00:11:18,080 Speaker 1: a lot, and it means lots of my family, and 203 00:11:18,679 --> 00:11:21,560 Speaker 1: we're excited. Charlie's excited, My kiddos are excited. So we're 204 00:11:21,600 --> 00:11:23,920 Speaker 1: gonna we're gonna have a good time tomorrow and hopefully 205 00:11:23,920 --> 00:11:26,880 Speaker 1: I don't screw it up too bad. Speaking yesterday, Tampa Bay, 206 00:11:26,920 --> 00:11:29,640 Speaker 1: Shane McClanahan starts for the a L. There are six 207 00:11:29,720 --> 00:11:31,920 Speaker 1: Yankees on the a L roster. Aaron Judge and John 208 00:11:31,960 --> 00:11:34,400 Speaker 1: Carlos Stanton will start in the outfield that mets. Jeff 209 00:11:34,440 --> 00:11:37,160 Speaker 1: McNeil is the n L starting second basement soccer in Mexico, 210 00:11:37,640 --> 00:11:41,880 Speaker 1: US over Canada one nothing the Clintsos spot in the Olympics. 211 00:11:41,960 --> 00:11:44,800 Speaker 1: John Stashiaward Bloomberg Sports Nathan, Thank you John. Right now, 212 00:11:44,880 --> 00:11:47,360 Speaker 1: SMP futures are up thirty points, STUFF futures up two 213 00:11:47,640 --> 00:11:50,720 Speaker 1: D one, NASAC futures higher by eighty six points ten. 214 00:11:50,800 --> 00:11:52,680 Speaker 1: Your treasury is a little changed right now. The yield 215 00:11:52,679 --> 00:11:54,679 Speaker 1: two point nine eight percent yield on the two year 216 00:11:54,800 --> 00:11:59,000 Speaker 1: three point one six percent. More to come, including on 217 00:11:59,160 --> 00:12:03,440 Speaker 1: Apple's high rings. Slow down with Bloomberg Tech columnist Alex Wab, 218 00:12:03,559 --> 00:12:08,960 Speaker 1: This is Bloomberg Bloomberg eleven three oh weather sunny and 219 00:12:09,000 --> 00:12:12,000 Speaker 1: hot today, tomorrow and the next day. We're getting into 220 00:12:12,000 --> 00:12:14,199 Speaker 1: a heat wave here with highs into the low to 221 00:12:14,400 --> 00:12:22,559 Speaker 1: mid nineties right now seventy three and second part Markets 222 00:12:22,640 --> 00:12:25,719 Speaker 1: headlines and breaking news twenty four hours a day at 223 00:12:25,720 --> 00:12:29,119 Speaker 1: Bloomberg dot Com, the Bloomberg Business app, and at Bloomberg 224 00:12:29,200 --> 00:12:38,280 Speaker 1: Quick Take. This is a Bloomberg Business Flash and I'm 225 00:12:38,360 --> 00:12:42,760 Speaker 1: Karen Moscow. Stocks are stabilizing as investors assess the outlook 226 00:12:42,760 --> 00:12:47,080 Speaker 1: for global growth amid Europe's deepening energy crisis, hawkish central banks, 227 00:12:47,080 --> 00:12:49,760 Speaker 1: and slumping earnings estimates that all are swalling against all 228 00:12:49,800 --> 00:12:53,080 Speaker 1: the BITS group at ten piers. US stock index futures, meanwhile, 229 00:12:53,120 --> 00:12:55,040 Speaker 1: are higher in the wake of another reversal for the 230 00:12:55,200 --> 00:12:58,560 Speaker 1: SMP five hundred yesterday on Apple's plans to slow hiring. 231 00:12:58,640 --> 00:13:00,720 Speaker 1: If you check the markets every fifth teen minutes throughout 232 00:13:00,720 --> 00:13:03,439 Speaker 1: the trading day on Bloomberg Guess and p future is 233 00:13:03,480 --> 00:13:06,120 Speaker 1: at thirty three points down. Futures have two hundred fourteen 234 00:13:06,520 --> 00:13:09,719 Speaker 1: Nasdack features have ninety eight. The decks in Germany is 235 00:13:09,760 --> 00:13:12,199 Speaker 1: it will change ten your treasury, that'll change yield two 236 00:13:12,240 --> 00:13:14,640 Speaker 1: point nine eight percent. They yield on the two year 237 00:13:14,760 --> 00:13:17,599 Speaker 1: three point one six percent. Nine x Screute oil is 238 00:13:17,600 --> 00:13:19,360 Speaker 1: down a tenth of upper cent or twelve cents, and 239 00:13:19,400 --> 00:13:22,000 Speaker 1: a hundred two dollars forty eight cents of barrel Comic 240 00:13:22,080 --> 00:13:24,160 Speaker 1: School is up a tenth of upper cent or two dollars. 241 00:13:24,160 --> 00:13:27,520 Speaker 1: At seventeen twelve, twenty announced the euro one point to 242 00:13:27,760 --> 00:13:30,319 Speaker 1: five two against the dollar, British found one point two 243 00:13:30,400 --> 00:13:33,079 Speaker 1: zero two one and the end month thirty seven point 244 00:13:33,120 --> 00:13:35,840 Speaker 1: to five six Bitcoin is at one point eight percent 245 00:13:36,080 --> 00:13:38,880 Speaker 1: at twenty one tho eight hundred seventy dollars. That's a 246 00:13:38,880 --> 00:13:41,640 Speaker 1: Bloomberg business flush. Now here's John Tucker with more on 247 00:13:41,760 --> 00:13:44,840 Speaker 1: moss going on around the world. John and Karen sent 248 00:13:44,880 --> 00:13:47,040 Speaker 1: a Democrat searching the White House to the clear a 249 00:13:47,200 --> 00:13:51,600 Speaker 1: climate emergency. The House committee investigating the January says attack 250 00:13:51,679 --> 00:13:53,960 Speaker 1: on the Capitol, which had planned to finish its inquiry 251 00:13:54,040 --> 00:13:57,560 Speaker 1: by September, will stead keep operating beyond that because more 252 00:13:57,600 --> 00:14:01,040 Speaker 1: information keeps coming in at shun vowing to take a 253 00:14:01,120 --> 00:14:04,880 Speaker 1: resolute and strong response to any Taiwan visit by House 254 00:14:04,880 --> 00:14:09,720 Speaker 1: Speaker Nancy Pelosi. Sports the National superstar Juan Soto winning 255 00:14:09,760 --> 00:14:13,040 Speaker 1: the home Run derby at the Baseball All Star Game. 256 00:14:13,600 --> 00:14:15,920 Speaker 1: And we have global news twenty four hours a day 257 00:14:15,960 --> 00:14:18,280 Speaker 1: on here. Get on Bloomberg Quick Say Power by more 258 00:14:18,280 --> 00:14:21,440 Speaker 1: than seven hundred journalists and analysts and more than one 259 00:14:21,520 --> 00:14:25,600 Speaker 1: hundred twenty countries. I'm John Tucker. This is Bloomberg. Nathan Alright, John, 260 00:14:25,600 --> 00:14:27,880 Speaker 1: thank you to six nineteen on Wall Street Live from 261 00:14:27,920 --> 00:14:31,200 Speaker 1: the Bloomberg Interactive Broker Studios. This is Bloomberg a daybreak. 262 00:14:31,280 --> 00:14:33,480 Speaker 1: Let's get back to our top story this morning, the 263 00:14:33,560 --> 00:14:36,920 Speaker 1: growing trend in the tech and financial sectors, with now 264 00:14:37,000 --> 00:14:41,880 Speaker 1: Apple adding itself to it, slowing hiring and spending. Let's 265 00:14:41,880 --> 00:14:44,200 Speaker 1: bring back Alex Web for more on this. Bloomberg Quick 266 00:14:44,240 --> 00:14:47,960 Speaker 1: Take anchor tech columnist for Bloomberg Opinion, Alex. As you know, 267 00:14:48,040 --> 00:14:51,480 Speaker 1: we saw tech stocks lead the declines yesterday on that 268 00:14:51,560 --> 00:14:54,480 Speaker 1: news from Apple. What kind of slow down could we 269 00:14:54,680 --> 00:15:00,080 Speaker 1: be looking at from the iphonemaker. Ultimately, this is the 270 00:15:00,120 --> 00:15:03,440 Speaker 1: corollary of the inflationary environment that apples in the business 271 00:15:03,440 --> 00:15:08,480 Speaker 1: of selling thousand dollars a pop electronic devices. As discretionary 272 00:15:08,520 --> 00:15:12,920 Speaker 1: income gets increasingly squeezed, is easy to see how that 273 00:15:13,040 --> 00:15:15,560 Speaker 1: might affect spending on Apple devices. Now we've seen the 274 00:15:15,600 --> 00:15:19,960 Speaker 1: other tech companies cutting jobs, and that's largely been to 275 00:15:20,000 --> 00:15:23,440 Speaker 1: do with the broader economic conditions, which mean that the 276 00:15:23,520 --> 00:15:26,400 Speaker 1: first thing companies cut is their marketing spend. Apple is 277 00:15:26,440 --> 00:15:28,120 Speaker 1: a little bit different. It is very much to do 278 00:15:28,200 --> 00:15:34,120 Speaker 1: with direct consumer appetites for their products. Yeah, so this 279 00:15:34,240 --> 00:15:36,520 Speaker 1: is a raising the question in the market once again 280 00:15:36,560 --> 00:15:40,520 Speaker 1: about not just the inflationary pressures ALEX, but whether we 281 00:15:40,560 --> 00:15:43,360 Speaker 1: could potentially be heading into a recession here if we 282 00:15:43,440 --> 00:15:47,240 Speaker 1: do start to see more of those consumers who have 283 00:15:47,400 --> 00:15:50,880 Speaker 1: come to rely on iPhones and other products from Apple 284 00:15:51,080 --> 00:15:55,800 Speaker 1: not necessarily to upgrade as they're getting squeezed. Even further, 285 00:15:56,880 --> 00:15:59,920 Speaker 1: we've seen over the past five six years a gradual 286 00:16:00,000 --> 00:16:03,680 Speaker 1: all um increase in the amount of time that keep 287 00:16:03,760 --> 00:16:07,520 Speaker 1: people keep their phones. Maybe five years ago it was 288 00:16:07,560 --> 00:16:09,880 Speaker 1: only every sort of two years or so that people 289 00:16:09,880 --> 00:16:12,880 Speaker 1: would upgrade to the to the latest hand set. That's 290 00:16:12,920 --> 00:16:16,000 Speaker 1: now extended to three years, and the jet sensor, the 291 00:16:16,040 --> 00:16:19,320 Speaker 1: general direction of travel is going further than that. Now. 292 00:16:19,520 --> 00:16:24,239 Speaker 1: Apple has managed to diversify its revenue quite substantially into services, 293 00:16:24,280 --> 00:16:27,320 Speaker 1: you know, things like Apple TV plus, Apple Music, Fitness 294 00:16:27,320 --> 00:16:30,640 Speaker 1: plus all these things where it gets more dependable income 295 00:16:30,720 --> 00:16:33,440 Speaker 1: over longer period of time, and the other huge benefit 296 00:16:33,440 --> 00:16:36,080 Speaker 1: of that is it ties consumers more keenly to their 297 00:16:36,080 --> 00:16:40,160 Speaker 1: Apple devices. So there is still expectation that people will upgrade. 298 00:16:40,160 --> 00:16:43,880 Speaker 1: The risk of them churning into trading their iPhones for 299 00:16:43,920 --> 00:16:47,800 Speaker 1: Android devices isn't necessarily any greater right now, but it's 300 00:16:47,840 --> 00:16:50,320 Speaker 1: just generally that people maybe aren't going to be spending 301 00:16:50,320 --> 00:16:52,960 Speaker 1: as much on electronic devices as a whole. So it's 302 00:16:53,000 --> 00:16:55,320 Speaker 1: the thinking then that as Apple starts to think about 303 00:16:55,360 --> 00:16:57,920 Speaker 1: what it's doing in terms of it's spending, that it's 304 00:16:57,960 --> 00:17:01,920 Speaker 1: going to make another pivot one again from services or 305 00:17:02,000 --> 00:17:06,280 Speaker 1: from goods to services as part of its overall strategy 306 00:17:06,760 --> 00:17:10,000 Speaker 1: that has been going at at at a real clip anyway. Um, 307 00:17:10,119 --> 00:17:14,320 Speaker 1: they it's they're trying. Several years ago the revenue came 308 00:17:14,320 --> 00:17:16,800 Speaker 1: from the iPhone. Now it's less than six so they 309 00:17:16,840 --> 00:17:21,520 Speaker 1: have succeeded in doing that quite well. The other point 310 00:17:21,560 --> 00:17:23,120 Speaker 1: that you can make here is, look, they are not 311 00:17:23,720 --> 00:17:27,520 Speaker 1: freezing all spending. They are slowing spending in some divisions 312 00:17:27,560 --> 00:17:31,000 Speaker 1: and slowing headcount um slowing hiring in some divisions. And 313 00:17:31,359 --> 00:17:33,320 Speaker 1: you could also look at it as a way of 314 00:17:34,240 --> 00:17:37,639 Speaker 1: sometimes companies use um these sort of economic environments as 315 00:17:37,640 --> 00:17:40,480 Speaker 1: a cover as an excuse, there's a reason to go. Actually, 316 00:17:40,800 --> 00:17:42,840 Speaker 1: let's just rain things in a little bit. We've maybe 317 00:17:42,840 --> 00:17:44,560 Speaker 1: got a little bit out of control over the past 318 00:17:44,600 --> 00:17:46,199 Speaker 1: few years. I'm not saying that Apple has got out 319 00:17:46,200 --> 00:17:50,119 Speaker 1: of control, but it is a good opportunity just to recalibrate, retrench, 320 00:17:50,600 --> 00:17:53,359 Speaker 1: and not get the sort of massive blowback from your 321 00:17:53,359 --> 00:17:55,600 Speaker 1: employees that might otherwise be the case. With this in 322 00:17:55,680 --> 00:17:58,600 Speaker 1: the context alex of what we've seen from other companies 323 00:17:58,600 --> 00:18:01,560 Speaker 1: as they've been announcing slow downs in hiring and spending 324 00:18:01,600 --> 00:18:05,000 Speaker 1: as well, particularly Netflix, is that getting ready to report 325 00:18:05,040 --> 00:18:08,560 Speaker 1: earnings after the closing bell today. When you think about 326 00:18:08,560 --> 00:18:10,800 Speaker 1: any of these companies, you look at the lifetime value 327 00:18:10,800 --> 00:18:13,560 Speaker 1: of your customers. And for Netflix, there had been an 328 00:18:13,560 --> 00:18:18,760 Speaker 1: expectation in growing perception that it was really a utility 329 00:18:18,920 --> 00:18:22,120 Speaker 1: that if anybody was interested in watching, you know, sort 330 00:18:22,160 --> 00:18:25,600 Speaker 1: of televisual content, they would have Netflix and that was 331 00:18:25,640 --> 00:18:28,399 Speaker 1: the base layer upon which you would then add other 332 00:18:28,640 --> 00:18:31,199 Speaker 1: streaming services if you so desired. What we started to 333 00:18:31,600 --> 00:18:34,720 Speaker 1: see is that's not necessarily the case. It is losing subscribers. 334 00:18:35,240 --> 00:18:37,480 Speaker 1: Um is. The expectation is that it loses two million 335 00:18:37,520 --> 00:18:41,360 Speaker 1: subscribers globally the only region which will add subscribers is Asia. 336 00:18:41,640 --> 00:18:44,600 Speaker 1: The inference of that, which is that's about one percent 337 00:18:44,600 --> 00:18:46,920 Speaker 1: of their total subscribe account. But the inference is then 338 00:18:46,960 --> 00:18:50,240 Speaker 1: that like maybe Netflix is discretionary spending, it is not 339 00:18:50,320 --> 00:18:52,840 Speaker 1: a utility. And so you know, there's a function of 340 00:18:52,880 --> 00:18:55,960 Speaker 1: the greater competition in that space, but which in turn 341 00:18:56,000 --> 00:18:58,399 Speaker 1: then means that Netflix is content. Perhaps isn't as appealing 342 00:18:58,440 --> 00:19:01,240 Speaker 1: as people thought it was once. Yeah, interesting to think 343 00:19:01,240 --> 00:19:05,720 Speaker 1: about the competition growing for Netflix, including from Apple TV 344 00:19:05,840 --> 00:19:09,119 Speaker 1: Plus as they're dominating the news this morning with the 345 00:19:09,160 --> 00:19:12,879 Speaker 1: reports of a hiring and spending slowdown over at Apple. 346 00:19:12,960 --> 00:19:15,240 Speaker 1: Thanks for this, Alex, as always great having on with us. 347 00:19:15,280 --> 00:19:19,240 Speaker 1: Alex web Bloomberg Opinion, tech columnist and anchor at Bloomberg 348 00:19:19,320 --> 00:19:22,600 Speaker 1: Quick Take course. You can check Alex out anytime Bloomberg 349 00:19:22,680 --> 00:19:26,879 Speaker 1: dot Com, Slash quick Take Right now, SMP futures up 350 00:19:26,880 --> 00:19:29,480 Speaker 1: thirty two points down, futures up two hundred five NASDAC 351 00:19:29,520 --> 00:19:33,159 Speaker 1: futures higher by ninety seven points. The tenure Treasury right 352 00:19:33,160 --> 00:19:35,480 Speaker 1: now little changed for a yield of two point nine 353 00:19:35,560 --> 00:19:38,600 Speaker 1: eight percent. Yield on the two year right now three 354 00:19:38,680 --> 00:19:42,200 Speaker 1: point one six percent. NIMEX crude moving a bit lower 355 00:19:42,200 --> 00:19:44,320 Speaker 1: down a half percent, or of fifty six cents to 356 00:19:44,400 --> 00:19:47,919 Speaker 1: a hundred two dollars four cents a barrel. Just to 357 00:19:47,960 --> 00:19:52,200 Speaker 1: add more on Apple's hiring and spending slow down and 358 00:19:52,800 --> 00:19:55,840 Speaker 1: even higher interest rate hikes coming from the e c 359 00:19:56,000 --> 00:19:57,960 Speaker 1: B this week. We'll tell you more about that as 360 00:19:58,000 --> 00:19:59,639 Speaker 1: we get the five things you need to know to 361 00:19:59,680 --> 00:20:08,119 Speaker 1: start or day. Just ahead on Bloomberg Daybreak Bloomberg eleven 362 00:20:08,160 --> 00:20:11,399 Speaker 1: three oh weather sunny and hot, low nineties today, mid 363 00:20:11,480 --> 00:20:15,840 Speaker 1: nineties tomorrow, mid nineties Thursday, with a chance for afternoon 364 00:20:15,920 --> 00:20:18,679 Speaker 1: showers and storms by then. Right now seventy three in 365 00:20:18,720 --> 00:20:25,840 Speaker 1: Central Park, broadcasting live from the Bloomberg Interactive Broker Studio 366 00:20:25,960 --> 00:20:29,119 Speaker 1: in New York, Bloomberg E Living Freedom to Washington, d C, 367 00:20:29,320 --> 00:20:33,040 Speaker 1: Bloomberg N one to Boston, Bloomberg one O six one 368 00:20:33,119 --> 00:20:36,600 Speaker 1: to San Francisco, Bloomberg NOME sixty to the Country, Sirius 369 00:20:36,760 --> 00:20:39,919 Speaker 1: XM Chado one nineteen and around the globe, the Bloomberg 370 00:20:39,960 --> 00:20:45,280 Speaker 1: Business at and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 371 00:20:50,119 --> 00:20:52,359 Speaker 1: It's six thirty on Wall Street. Good morning. I'm Nathan 372 00:20:52,400 --> 00:20:55,280 Speaker 1: Hagar and I'm Karen Moscow. We are just about three 373 00:20:55,320 --> 00:20:57,560 Speaker 1: hours away from the open of US training time for 374 00:20:57,600 --> 00:20:59,680 Speaker 1: the five things you need to notice. Start your day 375 00:20:59,680 --> 00:21:02,800 Speaker 1: broth to you by Interactive broker Simple ib k are 376 00:21:02,880 --> 00:21:06,040 Speaker 1: Global Trader app. Deposit in your local currency and trade 377 00:21:06,040 --> 00:21:08,520 Speaker 1: stock in the US, Europe and Asia. Start your free 378 00:21:08,520 --> 00:21:12,520 Speaker 1: trial at ibk r dot com slash Global Trader. First, 379 00:21:12,560 --> 00:21:14,639 Speaker 1: you begin with the growing number of companies putting a 380 00:21:14,680 --> 00:21:17,119 Speaker 1: clamp down on hiring. It's a trend of showing up 381 00:21:17,119 --> 00:21:19,840 Speaker 1: in firms from tech to banking. They get the latest 382 00:21:19,880 --> 00:21:23,440 Speaker 1: live from Bloomberg's Ranita Young, Good Morning Radia, Good Morning Karen. 383 00:21:23,560 --> 00:21:26,679 Speaker 1: Apple is joining its fellow tech giants and putting a 384 00:21:26,800 --> 00:21:30,480 Speaker 1: lid on hiring. Bloomberg sources say Apple wants to limit 385 00:21:30,560 --> 00:21:33,480 Speaker 1: spending and job growth at some of its divisions, although 386 00:21:33,560 --> 00:21:37,760 Speaker 1: leaders have not adopted a companywide policy. This more cautious 387 00:21:37,800 --> 00:21:43,040 Speaker 1: approach mimics moves by Amazon and Microsoft. Meantime, Goldman Sex 388 00:21:43,160 --> 00:21:46,880 Speaker 1: also plans to slow hiring to reign in expenses. CFO 389 00:21:46,960 --> 00:21:50,679 Speaker 1: Dennis Coleman says Goldman could also produce or reduce the 390 00:21:50,720 --> 00:21:54,680 Speaker 1: pace of replacing staff it loses because of attrition, and 391 00:21:54,800 --> 00:21:58,920 Speaker 1: will reinstate annual performance reviews Live in New York. I'm 392 00:21:58,960 --> 00:22:02,000 Speaker 1: Rennita Young Bloomber Daybreak. We need to thanks sticking with tech. 393 00:22:02,040 --> 00:22:04,760 Speaker 1: The war of words continues between Twitter and Elon Musk. 394 00:22:04,800 --> 00:22:07,760 Speaker 1: The company's calling Musk complaints about spam and robot accounts 395 00:22:07,760 --> 00:22:10,680 Speaker 1: and irrelevant side show. Twitter wants a trial soon over 396 00:22:10,760 --> 00:22:14,320 Speaker 1: must cancelation of his takeover Nathan and crypto markets. This morning, 397 00:22:14,320 --> 00:22:18,280 Speaker 1: Bitcoin is continuing its rise, nearly touching twenty three thousand. 398 00:22:18,320 --> 00:22:21,879 Speaker 1: Shila Warren, Crypto Innovation Council CEO, has more on the 399 00:22:21,960 --> 00:22:24,160 Speaker 1: recent rally. You know that we're waiting for a calamity. 400 00:22:24,160 --> 00:22:25,719 Speaker 1: I find that a bit dramatic. I mean, I think 401 00:22:25,760 --> 00:22:28,400 Speaker 1: we've seen a number of cycles and waves in this industry. 402 00:22:28,440 --> 00:22:30,560 Speaker 1: And I've been in this space for seven years now, 403 00:22:30,600 --> 00:22:32,520 Speaker 1: and this is not the first time we've seen a 404 00:22:32,560 --> 00:22:34,920 Speaker 1: big crash followed by a quick rally, and I think 405 00:22:34,920 --> 00:22:36,600 Speaker 1: that we are starting to see a little bit of 406 00:22:36,600 --> 00:22:39,399 Speaker 1: that rally starts to happen and marketsing were confidence in 407 00:22:39,400 --> 00:22:43,560 Speaker 1: these alternative assets. Crypto Innovation Council CEO Shila Warren spoke 408 00:22:43,560 --> 00:22:47,240 Speaker 1: to Emily Chang on Bloomberg Technology. Catch Emily's daily Bloomberg 409 00:22:47,280 --> 00:22:50,960 Speaker 1: Tech podcast week nights wherever you get your podcast overseas, Karen, 410 00:22:51,000 --> 00:22:54,639 Speaker 1: Treasury Secretary Janet Yellen's taking David Beijing, singling out China 411 00:22:54,680 --> 00:22:56,240 Speaker 1: as a country on which the U S and others 412 00:22:56,280 --> 00:22:59,800 Speaker 1: should be less reliant. We cannot allow countries like China 413 00:23:00,040 --> 00:23:04,639 Speaker 1: to use their market position in key raw materials, technologies, 414 00:23:04,800 --> 00:23:10,840 Speaker 1: or products to disrupt our economy or exercise unwanted geopolitical leverage. 415 00:23:10,920 --> 00:23:13,879 Speaker 1: Speaking in South Korea, Treasury Secretary Yellen also called on 416 00:23:13,960 --> 00:23:16,960 Speaker 1: trusted US allies to help fix supply chain issues and 417 00:23:17,000 --> 00:23:19,679 Speaker 1: over in Europe, today, government bonds flipped to losses in 418 00:23:19,720 --> 00:23:22,680 Speaker 1: response to headlines on the European Central Bank sources telling 419 00:23:22,680 --> 00:23:25,120 Speaker 1: Bloomberg the ECB may now consider a half point rate 420 00:23:25,160 --> 00:23:28,240 Speaker 1: hike this week. Johnson and Johnson lowering its forecast for 421 00:23:28,280 --> 00:23:30,200 Speaker 1: the year. That just crossing the Bloomberg. It did beat 422 00:23:30,200 --> 00:23:33,000 Speaker 1: analysts estimates for second quarter earnings and shares up one 423 00:23:33,040 --> 00:23:38,840 Speaker 1: percent in early trading. This is Bloomberg, all right, Karen, 424 00:23:38,880 --> 00:23:40,720 Speaker 1: thank you. Six thirty three on Wall Street, seventy three 425 00:23:40,720 --> 00:23:43,119 Speaker 1: degrees in Central Park. Could see some lingering delays on 426 00:23:43,119 --> 00:23:46,000 Speaker 1: the belt Park Bay, but they've cleared the accident investigation 427 00:23:46,040 --> 00:23:48,560 Speaker 1: in Pennsylvania Avenue we'll tell you more in Traffic First. 428 00:23:48,640 --> 00:23:50,520 Speaker 1: John Tucker has more on what's going on in New 429 00:23:50,600 --> 00:23:52,600 Speaker 1: York and around the world. Good morning, John, and good 430 00:23:52,600 --> 00:23:55,159 Speaker 1: morning Nathan. Senate Democrats are urging the White House to 431 00:23:55,280 --> 00:23:58,480 Speaker 1: to clear a climate emergency. Such a move would get 432 00:23:58,520 --> 00:24:01,760 Speaker 1: President Biden broad to get authority to redirect fonds for 433 00:24:01,800 --> 00:24:05,800 Speaker 1: clean energy projects a restrict offshore oil drilling. It comes 434 00:24:05,800 --> 00:24:09,560 Speaker 1: as Democrats dismiss any optimism that a climate change package 435 00:24:09,680 --> 00:24:13,280 Speaker 1: could be moved swiftly through Congress come September. A funding 436 00:24:13,280 --> 00:24:16,119 Speaker 1: agreement's been a reach for the multi billion dollar redevelopment 437 00:24:16,119 --> 00:24:19,560 Speaker 1: of New York's Aging Pan Station. That story from Bloomberg's 438 00:24:19,600 --> 00:24:22,960 Speaker 1: Jeff Bellinger. It is the country's busiest rail hub and 439 00:24:23,160 --> 00:24:26,480 Speaker 1: in dire need of renovation. The plan would create new 440 00:24:26,520 --> 00:24:30,520 Speaker 1: commercial and residential buildings around the station, with those buildings 441 00:24:30,520 --> 00:24:33,439 Speaker 1: developers getting to make payments in lieu of taxes for 442 00:24:33,480 --> 00:24:36,600 Speaker 1: a period of forty to forty five years. The amount 443 00:24:36,640 --> 00:24:40,040 Speaker 1: collected in excess of existing property taxes would be applied 444 00:24:40,080 --> 00:24:43,080 Speaker 1: to the project. The plan calls for a large, single 445 00:24:43,160 --> 00:24:46,199 Speaker 1: level train hall with higher ceilings and a four hundred 446 00:24:46,240 --> 00:24:50,840 Speaker 1: fifty foot long skylight to replace the current cramped, windowless interior. 447 00:24:51,320 --> 00:24:55,280 Speaker 1: Jeff Bellinger, Bloomberg, Neigbring How Speaker Nancy Pelosi plans to 448 00:24:55,320 --> 00:24:58,119 Speaker 1: make a landmark visits to Taiwan next month. That story 449 00:24:58,119 --> 00:25:01,280 Speaker 1: in this report from Bloomberg's Amy Moore is The Financial 450 00:25:01,320 --> 00:25:04,880 Speaker 1: Times reports Pelosi will lead a delegation to Taipei in August. 451 00:25:05,200 --> 00:25:08,360 Speaker 1: It comes despite Chinese warnings that the trip could escalate 452 00:25:08,440 --> 00:25:11,960 Speaker 1: tensions between Washington and Beijing. At the same time, there 453 00:25:12,000 --> 00:25:15,000 Speaker 1: are talks by top aids to President Biden and Chinese 454 00:25:15,040 --> 00:25:19,280 Speaker 1: counterpart Sheejinping in preparation for a possible conversation between the 455 00:25:19,320 --> 00:25:23,000 Speaker 1: two leaders. China has ramped up military activity around Taiwan 456 00:25:23,200 --> 00:25:26,960 Speaker 1: to signal its displeasure with past high profile visits. No 457 00:25:27,200 --> 00:25:31,679 Speaker 1: sitting US speaker has visited Taiwan since Newt Gingrich traveled 458 00:25:31,720 --> 00:25:36,320 Speaker 1: to the island, and in Washington. I'm anymore as Bloomberg Daybreak, 459 00:25:36,560 --> 00:25:38,960 Speaker 1: Global News twenty four hours a day on raighthand on 460 00:25:39,000 --> 00:25:41,760 Speaker 1: Bloomberg Quick Take or Power by more than twenty seven 461 00:25:41,800 --> 00:25:44,960 Speaker 1: hundred journalists and analysts and more than one twenty countries. 462 00:25:45,200 --> 00:25:48,000 Speaker 1: I'm John Tucker, and this is Bloomberg. Nathan all Right, 463 00:25:48,080 --> 00:25:55,280 Speaker 1: John thanks a lot. It is five on Wall Street. 464 00:25:55,320 --> 00:25:58,000 Speaker 1: Time to check the Bloomberg Sports Update with John stash Our. 465 00:25:58,080 --> 00:26:00,480 Speaker 1: All right, Nathan. The Baseball All Star Game tonight, Dodgers 466 00:26:00,480 --> 00:26:02,479 Speaker 1: stayed in where they had the home run derby last night. 467 00:26:02,560 --> 00:26:05,640 Speaker 1: Seven guys in their twenties plus forty two year old 468 00:26:05,680 --> 00:26:08,400 Speaker 1: Albert Pooles, who was in the final season of his career. 469 00:26:08,400 --> 00:26:11,159 Speaker 1: He upset the top seed Kyle Schwarber in overtime, but 470 00:26:11,240 --> 00:26:14,200 Speaker 1: then lost a Juan Soto, who then knocked off Seattle 471 00:26:14,320 --> 00:26:18,680 Speaker 1: rookie Julio Rodriguez in the final. Rodriguez literally half who 472 00:26:18,720 --> 00:26:20,959 Speaker 1: holds his age. He was amazing over the first two rounds, 473 00:26:21,200 --> 00:26:23,840 Speaker 1: belting out thirty two and thirty one homers. He ded 474 00:26:23,920 --> 00:26:27,080 Speaker 1: throned the Mets Pete Alonso in the semis Alonzo denied 475 00:26:27,119 --> 00:26:29,640 Speaker 1: a home on derby three pet that twenty three year 476 00:26:29,640 --> 00:26:32,080 Speaker 1: old Soto wins a million dollars just after he rejected 477 00:26:32,119 --> 00:26:35,919 Speaker 1: a contract offer from Washington for four hundred and forty 478 00:26:35,960 --> 00:26:39,800 Speaker 1: million over fifteen years. ESPN reported last night the Nationals 479 00:26:39,840 --> 00:26:43,720 Speaker 1: are now expected to trade Soto before the upcoming deadline. 480 00:26:43,760 --> 00:26:47,360 Speaker 1: The Mets and Yankees both interested. Three Mats six Yankees 481 00:26:47,359 --> 00:26:50,360 Speaker 1: on the All Star rosters for tonight, Aaron Judge got 482 00:26:50,400 --> 00:26:52,280 Speaker 1: the most votes of anyone. That's a pretty big honor. 483 00:26:52,440 --> 00:26:54,480 Speaker 1: Chose it. You know a lot of fans support too, 484 00:26:54,600 --> 00:26:58,720 Speaker 1: and um, yeah, I wouldn't. I wouldn't be here without 485 00:26:58,720 --> 00:27:00,840 Speaker 1: their cons of support, you know, motivating me to go 486 00:27:00,840 --> 00:27:02,320 Speaker 1: out there and do my best. You know, they're They're 487 00:27:02,400 --> 00:27:04,480 Speaker 1: who I played for. You know, it's the fans, you know, always, 488 00:27:04,480 --> 00:27:07,439 Speaker 1: you know, I want to go out there and um, 489 00:27:07,560 --> 00:27:08,920 Speaker 1: you know, leader all on the field for them, so 490 00:27:09,240 --> 00:27:12,840 Speaker 1: you know, and that's not free. Special honors Danny Pitchers tonight, 491 00:27:12,880 --> 00:27:15,639 Speaker 1: Tampa Bay, Shane McClanahan and the American League. Clayton kersh 492 00:27:15,640 --> 00:27:18,960 Speaker 1: Off of the NL in his home park. Mark McGuire's son, 493 00:27:19,119 --> 00:27:21,280 Speaker 1: drafted in the eighth round by the Phillies. He's a 494 00:27:21,320 --> 00:27:23,800 Speaker 1: high school pitcher in California, may instead go to college. 495 00:27:24,000 --> 00:27:26,679 Speaker 1: Talks broke down. There will not be a merger between 496 00:27:26,680 --> 00:27:30,120 Speaker 1: the Big twelve and Pack twelve conferences. Tom Stash, We're 497 00:27:30,119 --> 00:27:34,280 Speaker 1: Bloomberg Sports, Nathan Okay, John, thank you. Six thirty seven 498 00:27:34,359 --> 00:27:36,040 Speaker 1: on Wall Street time down to take a look at 499 00:27:36,040 --> 00:27:38,159 Speaker 1: stock some of the names moving in the pre market 500 00:27:38,160 --> 00:27:41,120 Speaker 1: for that returned to Bloomberg Radio on TV. Markets correspondent 501 00:27:41,400 --> 00:27:45,040 Speaker 1: Crety Gupta create Karen just mentioned the earnings from Johnson 502 00:27:45,080 --> 00:27:48,159 Speaker 1: and Johnson crossing the Bloomberg terminal moments and go. Very 503 00:27:48,200 --> 00:27:52,320 Speaker 1: interesting investor reaction to them. Very interesting investor reaction. The 504 00:27:52,359 --> 00:27:54,200 Speaker 1: shares are up about one percent in the pre market. 505 00:27:54,320 --> 00:27:56,880 Speaker 1: J and J is your taker. But check out what's 506 00:27:56,960 --> 00:28:00,440 Speaker 1: actually underneath the hood here, pretty solid growths. Total sales 507 00:28:00,480 --> 00:28:04,440 Speaker 1: growth about three percent, operational growth about eight percent, and 508 00:28:04,600 --> 00:28:06,320 Speaker 1: if you even adjust that, it goes up to eight 509 00:28:06,320 --> 00:28:08,480 Speaker 1: point one percent. So a lot of good news there. 510 00:28:08,480 --> 00:28:13,000 Speaker 1: Medical devices worldwide sales grew three point four percent, pharmaceuticals 511 00:28:13,000 --> 00:28:15,760 Speaker 1: to up twelve point four percent. Basically across all of 512 00:28:15,840 --> 00:28:18,960 Speaker 1: their kind of growth platforms, you are seeing um an 513 00:28:19,000 --> 00:28:22,240 Speaker 1: increase in their sales. Here's what you're not seeing confidence 514 00:28:22,280 --> 00:28:24,360 Speaker 1: that this is going to continue, the idea that by 515 00:28:24,400 --> 00:28:26,000 Speaker 1: the end of the year you're going to see the 516 00:28:26,000 --> 00:28:28,320 Speaker 1: same kind of momentum. So in fact, they actually trimmed 517 00:28:28,320 --> 00:28:30,879 Speaker 1: their full year Outlook, I'm not actually citing some of 518 00:28:30,880 --> 00:28:33,439 Speaker 1: those dollar pressures. Remember a lot of these sales are 519 00:28:33,520 --> 00:28:36,560 Speaker 1: counted as worldwide sales, it's not just here in the 520 00:28:36,640 --> 00:28:39,280 Speaker 1: United States. So I think it's interesting Nathan that here 521 00:28:39,280 --> 00:28:42,280 Speaker 1: we are talking about Johnson and Johnson alongside the likes 522 00:28:42,280 --> 00:28:45,880 Speaker 1: of Microsoft, Nike McDonald's about the pressures that you're seeing 523 00:28:46,040 --> 00:28:48,600 Speaker 1: with the dollar in particular, and they just cided that 524 00:28:48,600 --> 00:28:50,680 Speaker 1: it's one of the reasons they trim their outlook. Yeah, 525 00:28:50,800 --> 00:28:52,600 Speaker 1: very interesting to see that as well. And we've got 526 00:28:52,680 --> 00:28:55,960 Speaker 1: a lot of tech headlines crossing this morning. We've been talking, 527 00:28:55,960 --> 00:28:58,760 Speaker 1: of course about the Apple story, but it looks like 528 00:28:59,040 --> 00:29:03,280 Speaker 1: China's probe to uh, their answer to Uber maybe coming 529 00:29:03,280 --> 00:29:05,240 Speaker 1: to a big close here. It is coming to a 530 00:29:05,240 --> 00:29:07,320 Speaker 1: big close. And this is interesting the Wall Street Journal 531 00:29:07,400 --> 00:29:09,720 Speaker 1: reporting here that d d is going to get fined. 532 00:29:09,760 --> 00:29:13,120 Speaker 1: I believe it's one billion dollars. Uh. This is huge 533 00:29:13,160 --> 00:29:14,920 Speaker 1: as we of course, we know that for a very 534 00:29:14,960 --> 00:29:18,240 Speaker 1: long time we were seeing a lot of scrutiny for 535 00:29:18,400 --> 00:29:21,000 Speaker 1: Chinese tech in particular, but it was there was kind 536 00:29:21,000 --> 00:29:22,960 Speaker 1: of this relief built into the market, the idea that 537 00:29:23,000 --> 00:29:24,400 Speaker 1: a lot of these Chinese A d R s and 538 00:29:24,480 --> 00:29:27,600 Speaker 1: likes of j d Ali Baba for example, well they 539 00:29:27,600 --> 00:29:29,520 Speaker 1: were all going to perhaps get a little bit of 540 00:29:29,560 --> 00:29:33,440 Speaker 1: an easier um treatment for lack of a better term, 541 00:29:33,520 --> 00:29:36,240 Speaker 1: from China. The idea here being that that regulatory scrutiny 542 00:29:36,360 --> 00:29:39,160 Speaker 1: was driving so many foreign investors away from some of 543 00:29:39,160 --> 00:29:42,239 Speaker 1: these companies. That seems to at least have gotten some 544 00:29:42,280 --> 00:29:44,600 Speaker 1: investors back into Chinese a d R. So, for example, 545 00:29:44,680 --> 00:29:47,239 Speaker 1: Ali Baba Shares b A B A that's actually up 546 00:29:47,280 --> 00:29:49,360 Speaker 1: a five cents of one percent, but DD we know 547 00:29:49,440 --> 00:29:52,240 Speaker 1: has already been delisted from the U S market. Nevertheless, 548 00:29:52,600 --> 00:29:55,360 Speaker 1: watched the space because here's where you can perhaps see 549 00:29:55,400 --> 00:29:57,240 Speaker 1: some read through into some of the other a d 550 00:29:57,400 --> 00:29:59,320 Speaker 1: R s um just based off the idea that d 551 00:29:59,400 --> 00:30:02,960 Speaker 1: D is find one billion dollars in our last thirty 552 00:30:02,960 --> 00:30:06,720 Speaker 1: seconds or so. Here, how's Netflix doing ahead of earnings today? Oh, 553 00:30:06,760 --> 00:30:09,600 Speaker 1: this is such a widely watched event, not just because 554 00:30:09,800 --> 00:30:12,560 Speaker 1: Netflix is this major tech name, but also because this 555 00:30:12,640 --> 00:30:15,120 Speaker 1: is kind of a proxy for what you're going to 556 00:30:15,120 --> 00:30:17,400 Speaker 1: see with the broader economy. Are people going to continue 557 00:30:17,440 --> 00:30:19,240 Speaker 1: to spend on those subscriptions. Well, it looks like there's 558 00:30:19,240 --> 00:30:21,239 Speaker 1: a little bit of optimism baked into the market at 559 00:30:21,280 --> 00:30:23,720 Speaker 1: the moment. N f l X is your taker up 560 00:30:23,800 --> 00:30:26,120 Speaker 1: one and a half percent in the pre market. This 561 00:30:26,160 --> 00:30:29,200 Speaker 1: is important as we talk about simply how much of 562 00:30:29,240 --> 00:30:31,760 Speaker 1: their ad based businesses are really gonna start picking up. 563 00:30:31,880 --> 00:30:33,760 Speaker 1: Remember this was one of the main sticking points that 564 00:30:33,760 --> 00:30:35,800 Speaker 1: their last earnings call, that they are now going to 565 00:30:35,840 --> 00:30:39,400 Speaker 1: pivot from having commercials into their business and ads, and 566 00:30:39,480 --> 00:30:40,840 Speaker 1: that's how they're going to make up some of the 567 00:30:40,880 --> 00:30:43,239 Speaker 1: revenue that they're getting or losing, i should say, from 568 00:30:43,280 --> 00:30:45,280 Speaker 1: some of their content production. How they're going to do 569 00:30:45,320 --> 00:30:48,680 Speaker 1: and how successful that strategy is we'll find out today. Yeah, 570 00:30:48,720 --> 00:30:51,080 Speaker 1: it's going to be a very interesting call after the 571 00:30:51,120 --> 00:30:54,600 Speaker 1: bell this afternoon. Bloomberg Radio on TV Markets correspondent creating 572 00:30:54,680 --> 00:30:57,880 Speaker 1: cooped up with us as always in the pre market, 573 00:30:58,200 --> 00:31:01,240 Speaker 1: looking at stocks as a whole. Future are surging right now. 574 00:31:01,360 --> 00:31:03,440 Speaker 1: SMP futures up thirty six points, that's a gain of 575 00:31:03,480 --> 00:31:06,320 Speaker 1: almost one percent. DAL future is up two and thirty two. 576 00:31:06,400 --> 00:31:09,720 Speaker 1: NASTACK futures higher by a hundred fourteen points, that is 577 00:31:09,720 --> 00:31:11,800 Speaker 1: a gain of about one percent. The tenure Treasury is 578 00:31:11,840 --> 00:31:14,880 Speaker 1: now down one thirty second yield two point nine nine 579 00:31:14,880 --> 00:31:23,160 Speaker 1: percent on the benchmark tenure Note this is Bloomberg Bloomberg 580 00:31:23,160 --> 00:31:26,000 Speaker 1: eleven three oh weather tempt surging two will be in 581 00:31:26,000 --> 00:31:30,600 Speaker 1: the low nineties today, mid nineties tomorrow and Thursday. Welcome 582 00:31:30,640 --> 00:31:33,280 Speaker 1: to the heat wave right now seventy three in Central 583 00:31:33,280 --> 00:31:40,240 Speaker 1: Park Markets. Headlines and breaking news twenty four hours a 584 00:31:40,320 --> 00:31:43,320 Speaker 1: day at Bloomberg dot Com, the Bloomberg Business at and 585 00:31:43,520 --> 00:31:52,960 Speaker 1: at Bloomberg Quick Tape, He's a Bloomberg Business lash and 586 00:31:53,000 --> 00:31:56,520 Speaker 1: I'm Karen Moscow. Futures are on the rise this morning. 587 00:31:56,560 --> 00:31:58,320 Speaker 1: We go to the First Word breaking news desk for 588 00:31:58,400 --> 00:32:02,520 Speaker 1: today's morning call, and here's Big Bill Maloney. Bill, good morning, 589 00:32:02,600 --> 00:32:04,920 Speaker 1: Good morning, Karen. That's right. US futures with a bid 590 00:32:05,040 --> 00:32:07,200 Speaker 1: right now. It's deat features of two hundred twenty point, 591 00:32:07,240 --> 00:32:09,920 Speaker 1: says he's game thirty five and nas like futures rise 592 00:32:10,200 --> 00:32:13,000 Speaker 1: by a hundred and ten US ten year old at 593 00:32:13,000 --> 00:32:15,720 Speaker 1: two point nine nine percent, Gold is up five, oil 594 00:32:15,840 --> 00:32:18,000 Speaker 1: is in the red, and Bitcoin is higher by one 595 00:32:18,040 --> 00:32:21,400 Speaker 1: point seven. Shanghai was a little changed overnight, while up 596 00:32:21,480 --> 00:32:24,200 Speaker 1: and markets are posting modest games this morning. And back 597 00:32:24,240 --> 00:32:27,360 Speaker 1: in the US on the Economic Funday thirty housing starts 598 00:32:27,640 --> 00:32:30,440 Speaker 1: after the LS night. IBM cut its annual forecast for 599 00:32:30,600 --> 00:32:33,440 Speaker 1: free cash flow due to the strong dollar and regarding 600 00:32:33,480 --> 00:32:36,000 Speaker 1: earnings this morning, and J and J Lord its guidance 601 00:32:36,160 --> 00:32:38,680 Speaker 1: due to the dollar's strength. In other news, Bank of 602 00:32:38,720 --> 00:32:41,800 Speaker 1: American's Global Fund Manager survey shows that investors are in 603 00:32:41,960 --> 00:32:45,360 Speaker 1: full capitulation and wrapping things up. X on Mobile was 604 00:32:45,440 --> 00:32:48,560 Speaker 1: raised to overweight O. Brad Piper Live from the First 605 00:32:48,720 --> 00:32:51,080 Speaker 1: Breaking News Desk on Bill Maloney. Karen, all right, Bill, 606 00:32:51,120 --> 00:32:53,080 Speaker 1: thank you, and here like breaking news over your Bloomberg 607 00:32:53,160 --> 00:32:55,960 Speaker 1: type squawk on your terminal squ a w K and 608 00:32:56,000 --> 00:32:58,520 Speaker 1: that's a Bloomberg business flash. Now here's John Tucker with 609 00:32:58,680 --> 00:33:01,800 Speaker 1: more on what's going on around We're all John, Good morning, Karen. 610 00:33:01,840 --> 00:33:05,440 Speaker 1: Senate Democrats urging the White House to declare a climate emergency, 611 00:33:05,920 --> 00:33:08,520 Speaker 1: such a move who would give the president broad executive 612 00:33:08,520 --> 00:33:12,640 Speaker 1: authority to redirect funds for clean energy projects, and the 613 00:33:12,680 --> 00:33:15,400 Speaker 1: House Committee investigating the January sist attack on the U. 614 00:33:15,520 --> 00:33:18,640 Speaker 1: S Capitol, which had planned to finish its inquiry by September, 615 00:33:18,840 --> 00:33:22,880 Speaker 1: will instead keep operating beyond that date. And China vowing 616 00:33:22,920 --> 00:33:25,960 Speaker 1: to take a resolute and strong response to any time 617 00:33:26,040 --> 00:33:29,720 Speaker 1: on visit by US House Speaker Nancy Pelosi. Sports the 618 00:33:29,920 --> 00:33:33,760 Speaker 1: Washington National Superstar Jun Solo winning the home run derby 619 00:33:34,440 --> 00:33:37,720 Speaker 1: the Major League Baseball All Star Game. Global News twenty 620 00:33:37,760 --> 00:33:40,160 Speaker 1: four hours a day on air, yet on Bloomberg Quick 621 00:33:40,200 --> 00:33:42,960 Speaker 1: Take powered by more than twenty seven hundred journalists and 622 00:33:43,000 --> 00:33:46,760 Speaker 1: analysts in more than one twenty countries. I'm John Tucker, 623 00:33:47,080 --> 00:33:50,040 Speaker 1: and this is Bloomberg. Karen, all right, John, thank you, 624 00:33:50,280 --> 00:33:53,360 Speaker 1: and it's sixty nine on Wall Street. Returned to news 625 00:33:53,440 --> 00:33:56,240 Speaker 1: and science and technology Now with the Bloomberg and J I. T. 626 00:33:56,440 --> 00:33:59,920 Speaker 1: Stammerport brought to you buy New Jersey Institute of Technology, 627 00:34:00,000 --> 00:34:02,920 Speaker 1: a ranked top fifty national public university by US News 628 00:34:03,000 --> 00:34:05,680 Speaker 1: and World Report and number fourteen in the nation on 629 00:34:05,800 --> 00:34:08,640 Speaker 1: Money's Best Colleges List. Learn more at n J I 630 00:34:08,760 --> 00:34:10,960 Speaker 1: T DOT E d U and now Here's just making 631 00:34:11,040 --> 00:34:14,600 Speaker 1: news and science, technology, engineering and math. In China, the 632 00:34:14,680 --> 00:34:18,280 Speaker 1: number of new cases of coronavirus increased. Nearly seven hundred 633 00:34:18,280 --> 00:34:21,760 Speaker 1: infections are reported Monday, the highest number in almost two months. 634 00:34:22,080 --> 00:34:25,040 Speaker 1: More infections, straight, more infectious strains of the virus are 635 00:34:25,080 --> 00:34:29,240 Speaker 1: testing China's hardline approach as outbreaks spread beyond major cities. 636 00:34:29,960 --> 00:34:32,480 Speaker 1: A drive in the Senate to quickly pass fifty two 637 00:34:32,480 --> 00:34:36,320 Speaker 1: billion dollars in grants and incentives for American semiconductor makers 638 00:34:36,400 --> 00:34:40,080 Speaker 1: has picked up steam in Congress. Senate majority leader Chuck 639 00:34:40,160 --> 00:34:43,160 Speaker 1: Schumer says the Democrats and Republicans are hashing out the 640 00:34:43,239 --> 00:34:46,279 Speaker 1: final details. The legislation is a scale down version of 641 00:34:46,320 --> 00:34:48,960 Speaker 1: a larger bill intended to make the US more competitive 642 00:34:49,239 --> 00:34:52,640 Speaker 1: with China in technology, and the Pentagon says the US 643 00:34:52,680 --> 00:34:55,400 Speaker 1: will spend one point three billion dollars to develop advanced 644 00:34:55,440 --> 00:34:59,280 Speaker 1: satellites that will be able to better track hypersonic missile threats. 645 00:34:59,640 --> 00:35:02,759 Speaker 1: Hyper Sonic weapons are defined as anything traveling beyond mac 646 00:35:02,960 --> 00:35:06,040 Speaker 1: five or five times faster than the speed of sound. 647 00:35:06,520 --> 00:35:10,040 Speaker 1: That's about thirty eight hundred miles per hour. And as 648 00:35:10,080 --> 00:35:13,319 Speaker 1: a Bloomberg and j I t Stem report, Nathan Okay, Karen, 649 00:35:13,360 --> 00:35:15,760 Speaker 1: thank you. We're live from the Bloomberg Interactive Broker Studios 650 00:35:15,880 --> 00:35:17,600 Speaker 1: or at six fifty on Wall Street Time Now to 651 00:35:17,680 --> 00:35:19,360 Speaker 1: check what's going on in d C. Some of the 652 00:35:19,400 --> 00:35:21,879 Speaker 1: top stories in our nation's capital include that Chip's bill 653 00:35:21,920 --> 00:35:24,640 Speaker 1: picking up steam in the Senate, also making new Senate 654 00:35:24,680 --> 00:35:29,080 Speaker 1: Democrats urging President Biden to declare a climate emergency, witnesses 655 00:35:29,200 --> 00:35:32,360 Speaker 1: set for the next January six prime time hearing, and 656 00:35:32,600 --> 00:35:35,640 Speaker 1: China warning of a grave impact if how Speaker Nancy 657 00:35:35,680 --> 00:35:39,680 Speaker 1: Pelosi visits Taiwan. Let's bring in Bloomberg Government reporter Emily 658 00:35:39,719 --> 00:35:42,799 Speaker 1: Wilkins for more on all these stories. Emily, good morning. 659 00:35:42,880 --> 00:35:45,600 Speaker 1: Let's start with what we're hearing about, the idea that 660 00:35:46,000 --> 00:35:50,280 Speaker 1: President Biden could think at least about declaring a climate emergency, 661 00:35:50,320 --> 00:35:52,800 Speaker 1: even as we see this red headline cross the Bloomberg 662 00:35:52,920 --> 00:35:55,960 Speaker 1: Terminal from the UK that the temperature there has hit 663 00:35:56,040 --> 00:35:59,759 Speaker 1: its highest level on record. This is obviously not just 664 00:35:59,840 --> 00:36:03,480 Speaker 1: a political issue. It's a real life issue. I mean, Nathan, 665 00:36:03,560 --> 00:36:05,880 Speaker 1: I feel like headlines like this, they've just become so 666 00:36:06,000 --> 00:36:09,880 Speaker 1: much more commonplace in recent years, hearing about these high temperatures, 667 00:36:09,960 --> 00:36:13,520 Speaker 1: these big disasters, these reports from climate scientists saying that 668 00:36:13,680 --> 00:36:15,960 Speaker 1: that time is running out and that urgent action is 669 00:36:16,080 --> 00:36:19,240 Speaker 1: needed now. For a while, Democrats were staking their hopes 670 00:36:19,480 --> 00:36:22,880 Speaker 1: on that reconciliation package they'd be able to pass hundreds 671 00:36:22,920 --> 00:36:26,000 Speaker 1: of billions and tax credits for clean energy. But ever 672 00:36:26,080 --> 00:36:28,440 Speaker 1: since Senator Joe Manson said that that can't be a 673 00:36:28,480 --> 00:36:31,040 Speaker 1: part of the package for now until he sees inflation 674 00:36:31,160 --> 00:36:35,000 Speaker 1: go down, Democrats have decided that their next strategy is 675 00:36:35,080 --> 00:36:38,120 Speaker 1: going to be turning to President Biden and seeing if 676 00:36:38,160 --> 00:36:42,640 Speaker 1: he can use his executive powers to declare a climate emergency. Now, 677 00:36:42,719 --> 00:36:45,920 Speaker 1: remember presidents do have these emergency powers. We saw a 678 00:36:46,000 --> 00:36:48,800 Speaker 1: former president Trump used them to sort of fund that 679 00:36:48,960 --> 00:36:52,440 Speaker 1: border wall between the US and Mexico. The idea is 680 00:36:52,520 --> 00:36:55,799 Speaker 1: that Trump sorry Biden rather could use a climate emergency 681 00:36:55,920 --> 00:36:59,480 Speaker 1: to do things like restrict off short drilling, redirect funding 682 00:36:59,600 --> 00:37:03,719 Speaker 1: for clean energy product and wholt crude oil exports. Now, 683 00:37:03,920 --> 00:37:06,719 Speaker 1: the White House has said that they're still looking at 684 00:37:06,760 --> 00:37:09,880 Speaker 1: this decision idea, that they haven't come to a decision 685 00:37:09,920 --> 00:37:12,040 Speaker 1: yet and don't have any plans for an announcement at 686 00:37:12,120 --> 00:37:15,080 Speaker 1: this time, but the Washington Post an announcement could come 687 00:37:15,440 --> 00:37:19,000 Speaker 1: as soon as this week. Um. Democrats really don't have 688 00:37:19,160 --> 00:37:21,239 Speaker 1: too many more options for what they can do from 689 00:37:21,280 --> 00:37:24,160 Speaker 1: a legislative stance, and they think that they need to 690 00:37:24,239 --> 00:37:27,520 Speaker 1: do something and do something big so that their supporters 691 00:37:27,600 --> 00:37:30,600 Speaker 1: will realize how serious they are about addressing climate change 692 00:37:30,600 --> 00:37:33,280 Speaker 1: and hoping that that will be reflected in the numbers 693 00:37:33,360 --> 00:37:35,239 Speaker 1: that we see come out for the mid terms. Yeah, 694 00:37:35,280 --> 00:37:38,280 Speaker 1: it's interesting, also, Emily, to see the President thinking about 695 00:37:38,400 --> 00:37:40,719 Speaker 1: making a declaration like this when he's just come back 696 00:37:40,800 --> 00:37:45,359 Speaker 1: from very hot Saudi Arabia looking for some concessions there 697 00:37:45,920 --> 00:37:50,520 Speaker 1: on boosting fossil fuels. It's a really interesting dance that 698 00:37:50,640 --> 00:37:53,440 Speaker 1: the President is trying to play here. Yeah, it just 699 00:37:53,520 --> 00:37:56,400 Speaker 1: shows the fact that you've got multiple pressures on Biden 700 00:37:56,560 --> 00:37:59,400 Speaker 1: right now that he's trying to live up to the 701 00:37:59,560 --> 00:38:02,839 Speaker 1: campaign promises he made to address climate, that he's trying 702 00:38:02,880 --> 00:38:05,320 Speaker 1: to address the long term issue of climate, but in 703 00:38:05,400 --> 00:38:08,200 Speaker 1: the short term, you can't deny that many Americans are 704 00:38:08,239 --> 00:38:11,120 Speaker 1: being hurt as a as a result of these high 705 00:38:11,160 --> 00:38:14,400 Speaker 1: gas prices and the subsequent inflation for it. And so 706 00:38:14,680 --> 00:38:17,400 Speaker 1: you're really kind of in this this situation where you 707 00:38:17,520 --> 00:38:20,160 Speaker 1: have to try to vote be addressing both the short 708 00:38:20,239 --> 00:38:22,800 Speaker 1: term and the long term at the same time. And 709 00:38:22,920 --> 00:38:25,120 Speaker 1: that's really leading to some of these pressures that we're 710 00:38:25,200 --> 00:38:27,720 Speaker 1: seeing on Biden and kind of this as you mentioned 711 00:38:27,800 --> 00:38:31,040 Speaker 1: that this dance between today we're going to be focused on, 712 00:38:31,400 --> 00:38:34,000 Speaker 1: you know, increasing oil production and today we're going to 713 00:38:34,040 --> 00:38:37,640 Speaker 1: be focused on the environment and clean energy policies. Or 714 00:38:37,719 --> 00:38:40,000 Speaker 1: there's a lot going on in DC. So let's get 715 00:38:40,040 --> 00:38:43,239 Speaker 1: a progress report real quickly on the Chips bill in 716 00:38:43,360 --> 00:38:45,840 Speaker 1: the Senate. Could that get passed this week? Um? So, 717 00:38:45,960 --> 00:38:48,239 Speaker 1: there will be a procedural vote today and then there's 718 00:38:48,239 --> 00:38:51,200 Speaker 1: another procedural vote later this week. We might be able 719 00:38:51,239 --> 00:38:54,480 Speaker 1: to see things expedited, but I think at this point, UM, 720 00:38:54,680 --> 00:38:56,520 Speaker 1: it's not quite clear it will either be this week 721 00:38:56,640 --> 00:38:59,239 Speaker 1: or next week for passage, assuming of course that we 722 00:38:59,360 --> 00:39:01,600 Speaker 1: do have the vote to go forward. That's looking good 723 00:39:01,640 --> 00:39:03,520 Speaker 1: at this point. There's a lot of support for this 724 00:39:03,680 --> 00:39:07,040 Speaker 1: bill on both sides of the aisle. Remember, they've parted 725 00:39:07,120 --> 00:39:09,800 Speaker 1: way down from that initial bill that was focused on 726 00:39:10,040 --> 00:39:14,960 Speaker 1: US manufacturing, research, development, and competitiveness against China. So right 727 00:39:15,000 --> 00:39:17,200 Speaker 1: now you're just seeing a focus on this piece that 728 00:39:17,280 --> 00:39:20,840 Speaker 1: has more than fifty billion dollars going towards semi conductors 729 00:39:20,880 --> 00:39:24,160 Speaker 1: and producing those in the US. You've also seen House 730 00:39:24,239 --> 00:39:26,600 Speaker 1: leadership say that they are ready to move that bill 731 00:39:26,680 --> 00:39:28,799 Speaker 1: through the House as soon as it comes. And while 732 00:39:28,840 --> 00:39:31,960 Speaker 1: there's certainly disappointment that there are many aspects not in 733 00:39:32,080 --> 00:39:35,160 Speaker 1: that overall bill, UM, right now that the sense is 734 00:39:35,239 --> 00:39:37,880 Speaker 1: that this is something that needs to happen quickly. Interesting 735 00:39:37,960 --> 00:39:40,640 Speaker 1: to note, though, that you are seeing some opposition from 736 00:39:40,719 --> 00:39:43,880 Speaker 1: the Wall Street journals up ed Board noting that you know, 737 00:39:44,000 --> 00:39:46,319 Speaker 1: this industry is not where it was a year ago, 738 00:39:46,480 --> 00:39:49,360 Speaker 1: that they have had time to double up on supply, 739 00:39:49,560 --> 00:39:52,800 Speaker 1: that it's come closer to meeting demand, and they exactly 740 00:39:52,840 --> 00:39:56,400 Speaker 1: suggested that this bill would basically amount to corporate welfare. 741 00:39:56,840 --> 00:39:58,960 Speaker 1: UM so an interesting to see if that will wind 742 00:39:59,040 --> 00:40:02,040 Speaker 1: up playing a role in this debate at all or 743 00:40:02,200 --> 00:40:05,279 Speaker 1: keep some members from voting to support this. We also 744 00:40:05,320 --> 00:40:08,000 Speaker 1: have a lot of developments with the House. January six, 745 00:40:08,080 --> 00:40:12,520 Speaker 1: committee witnesses set for what may not be the final 746 00:40:12,680 --> 00:40:15,040 Speaker 1: live hearing. Yeah. This is the thing mate, that I mean, 747 00:40:15,080 --> 00:40:17,480 Speaker 1: they do these live hearings, they get a lot of attention, 748 00:40:17,600 --> 00:40:19,960 Speaker 1: and then more people come forward, and you've seen this 749 00:40:20,080 --> 00:40:23,520 Speaker 1: really impact the committee's schedule so far. And now they're 750 00:40:23,560 --> 00:40:26,319 Speaker 1: even saying that their final report, which they we were 751 00:40:26,400 --> 00:40:29,640 Speaker 1: expecting around September, could be even pushed back later than that. 752 00:40:30,200 --> 00:40:32,560 Speaker 1: You've got this primetime hearing that's going to be coming 753 00:40:32,680 --> 00:40:35,640 Speaker 1: up on Thursday. Bloomberg is gonna be covering it, so 754 00:40:35,760 --> 00:40:38,200 Speaker 1: make sure you tune in. But we've got, uh, we 755 00:40:38,520 --> 00:40:40,319 Speaker 1: now know at least two of the folks will will 756 00:40:40,320 --> 00:40:43,760 Speaker 1: be hearing before the committee, Matt Pottinger, a former deputy 757 00:40:43,840 --> 00:40:47,280 Speaker 1: National Security advisor, and Sarah Matthews, a deputy Press secretary. 758 00:40:47,520 --> 00:40:50,360 Speaker 1: Both of them resigned from the White House after the 759 00:40:50,400 --> 00:40:53,160 Speaker 1: assault on the Capitol, meaning that they could have really 760 00:40:53,200 --> 00:40:55,359 Speaker 1: an inside luck at what was happening in the White 761 00:40:55,440 --> 00:40:58,000 Speaker 1: House on January six, which is going to be the 762 00:40:58,080 --> 00:41:02,680 Speaker 1: focus of the January sixty's next hearing. And finally, Emily, 763 00:41:02,800 --> 00:41:08,080 Speaker 1: we're getting some response from China to a reported visit 764 00:41:08,200 --> 00:41:12,600 Speaker 1: coming up from how Speaker Nancy Pelosi to Taiwan. Yeah, 765 00:41:12,719 --> 00:41:15,640 Speaker 1: China is not particularly pleased about this. I mean, if 766 00:41:15,680 --> 00:41:19,080 Speaker 1: you remember what happened a last time that Pelosi announced 767 00:41:19,120 --> 00:41:22,880 Speaker 1: to trip back in April, you heard Chinese Foreign Minister 768 00:41:23,120 --> 00:41:26,799 Speaker 1: Yang e Uh say that this was a malicious provocation 769 00:41:26,920 --> 00:41:31,880 Speaker 1: into China's sovereignty, a gross interference inferience and international affairs. Um. 770 00:41:32,000 --> 00:41:33,920 Speaker 1: This would be the first trip of a Speaker of 771 00:41:34,000 --> 00:41:37,759 Speaker 1: the House to visit Uh Taiwan since a New Game 772 00:41:37,840 --> 00:41:40,719 Speaker 1: Ridge win more than twenty five years ago. UM. And 773 00:41:40,800 --> 00:41:42,600 Speaker 1: this is coming out a time where you have heard 774 00:41:42,640 --> 00:41:46,920 Speaker 1: these discussions between Beijing and Washington. It seems to be 775 00:41:47,000 --> 00:41:50,920 Speaker 1: building toward another call between President Biden and President she Um. 776 00:41:51,040 --> 00:41:53,120 Speaker 1: But at this point it remains to be seen what 777 00:41:53,320 --> 00:41:57,040 Speaker 1: if any impact a trip from Pelosi would have to 778 00:41:57,120 --> 00:41:59,879 Speaker 1: the region and how China would respond. All right, thank 779 00:42:00,000 --> 00:42:03,239 Speaker 1: you as always, Bloomberg Government reporter Emily Wilkins joining us 780 00:42:03,280 --> 00:42:05,960 Speaker 1: from the nation's capital. Read more about these stories on 781 00:42:06,040 --> 00:42:08,879 Speaker 1: Bloomberg dot com or on the Bloomberg terminal, and listen 782 00:42:08,920 --> 00:42:12,879 Speaker 1: to Bloomberg Radio in Washington Bloomberg and one oh five 783 00:42:12,960 --> 00:42:15,920 Speaker 1: point seven FM HD two where assembly mentioned. We will 784 00:42:16,000 --> 00:42:19,319 Speaker 1: have coverage of the prime time hearing of the House 785 00:42:19,400 --> 00:42:22,359 Speaker 1: January six Committee coming up Thursday evening eight pm Wall 786 00:42:22,400 --> 00:42:26,200 Speaker 1: Street Time. Tune in live right here on Bloomberg Radio. 787 00:42:26,640 --> 00:42:28,960 Speaker 1: Right now. SMP futures are up thirty two points, staff 788 00:42:28,960 --> 00:42:31,520 Speaker 1: futures of two eight, NASTAC futures up a hundred four 789 00:42:31,560 --> 00:42:34,560 Speaker 1: points ten Your treasury little change the yield two point 790 00:42:34,680 --> 00:42:37,319 Speaker 1: nine eight percent yield on the two year three point 791 00:42:37,400 --> 00:42:40,759 Speaker 1: one six percent. Bloomberg Surveillance is next to Tom Keene, 792 00:42:40,920 --> 00:42:44,800 Speaker 1: Jonathan Farrell, and Kaylee Lines and Felisa Brahmowitz for Karen Moscow. 793 00:42:45,200 --> 00:42:47,759 Speaker 1: I'm Nathan Hagar. This is Bloomberg