WEBVTT - Bloomberg Daybreak: August 2, 2022 - Hour 1 (Radio) 0:00:02.920 --> 0:00:06.160 Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg 0:00:06.200 --> 0:00:09.520 day Break for Tuesday. On his second two Coming up 0:00:09.520 --> 0:00:12.680 this our tensions escalate between the U S and China 0:00:12.800 --> 0:00:16.319 as Nancy Pelosi heads to Taiwan. Socks drop around the 0:00:16.320 --> 0:00:19.040 world on the news team, coverage is straight ahead. A 0:00:19.160 --> 0:00:22.040 top al Qaida leader is killed in a US drone strike, 0:00:22.280 --> 0:00:25.480 and another blowout earnings support by Big Oil. This time 0:00:25.480 --> 0:00:28.479 it's VP New York City, along with California to have 0:00:28.520 --> 0:00:31.360 declared the state of emergency because of Monkey Fox cases 0:00:31.520 --> 0:00:34.600 plus its primary day in five states. I'm Michael lare 0:00:34.720 --> 0:00:37.560 More Ahead. I'm John stash Own Sports another errand judge 0:00:37.560 --> 0:00:40.280 home running. The Yankees win seventh straight win for the Mets. 0:00:40.360 --> 0:00:45.640 Jacob de Graham pitches tonight. That's all strade ahead on 0:00:45.760 --> 0:00:51.200 Bloomberg day Break on Bloomberg eleven, Freeo, New York, Bloomberg one, Washington, 0:00:51.320 --> 0:00:54.640 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:54.720 --> 0:00:58.840 sixties and Francisco Syrius XM one nineteen and around the 0:00:58.880 --> 0:01:02.200 world on Bloomberg Radio dot Com and via the Bloombird 0:01:02.200 --> 0:01:09.920 Business Actor. Good morning, I'm Nathan Hagard. And I'm Karen Moscow. 0:01:09.959 --> 0:01:12.759 How in US DOT index futures are following this morning? 0:01:12.800 --> 0:01:14.520 We are coming up to five A one on Wall Street, 0:01:14.560 --> 0:01:16.640 and we check the markets every fifteen minutes throughout the 0:01:16.640 --> 0:01:20.640 trading day. On Bloomberg SMP futures down twenty seven points, down, 0:01:20.640 --> 0:01:23.520 futures down one fifty five, and NASDAK futures down one 0:01:23.560 --> 0:01:26.560 hundred five. The decks in Germany's down seven tenths of 0:01:26.800 --> 0:01:29.200 per cent, the ten year treasury up six thirty seconds, 0:01:29.440 --> 0:01:32.040 yield two point five four percent, and a yield on 0:01:32.120 --> 0:01:35.120 the two year two point eight five percent. Nathan Karen 0:01:35.120 --> 0:01:37.000 will have more on markets in a minute, but first 0:01:37.080 --> 0:01:40.240 a major announcement from the White House. President Biden says 0:01:40.280 --> 0:01:43.040 a U. S. Drone strike in Afghanistan has killed one 0:01:43.040 --> 0:01:45.160 of the planners of the nine eleven attacks. I'm in 0:01:45.240 --> 0:01:49.080 Alswari was the leader of al Qaeda. No matter how 0:01:49.120 --> 0:01:53.080 long it takes, no matter where you hide, if you 0:01:53.160 --> 0:01:55.880 are a threat to our people, the United States will 0:01:55.920 --> 0:02:00.000 find you and take you out. Senior Administration official tells 0:01:59.880 --> 0:02:02.240 the drone strike had been planned for weeks and there 0:02:02.240 --> 0:02:06.000 were no civilian casualties. Well, Nathan, the strike comes about 0:02:06.000 --> 0:02:08.440 a year after the fall of Kabbal to the Taliban 0:02:08.480 --> 0:02:12.760 and the US military's hasty withdrawal from Afghanistan. Lester Munson, 0:02:12.880 --> 0:02:16.160 principle at the government relations firm b GR Group, says, 0:02:16.480 --> 0:02:19.359 it's important to look at the attack from that context. 0:02:19.800 --> 0:02:23.040 What else is happening in Afghanistan? What are the other 0:02:23.080 --> 0:02:26.400 consequences of our withdrawal. This is one event, It maybe 0:02:26.400 --> 0:02:28.280 a very significant one, but we do need to kind 0:02:28.320 --> 0:02:30.200 of put it in the constellation of all of the 0:02:30.200 --> 0:02:33.280 other information that we have. Lester Munson with b GR 0:02:33.320 --> 0:02:36.519 Groups spoke with our Washington corresponded Joe Matthew on Bloomberg's 0:02:36.520 --> 0:02:39.200 Sound on Catch the program weekdays at five pm Eastern 0:02:39.240 --> 0:02:41.960 on Bloomberg Radio. Well, another major story we're following at 0:02:41.960 --> 0:02:44.880 this our Karen is US house speaker Nancy Pelosi expected 0:02:44.880 --> 0:02:47.720 in Taiwan later this morning to find Chinese threats of 0:02:47.720 --> 0:02:51.000 military action. We get more from Bloomberg's Bruce Einhorn in 0:02:51.040 --> 0:02:54.360 Hong Kong. She has a long history going back to 0:02:54.800 --> 0:02:56.480 you know, the early days of her career as a 0:02:56.680 --> 0:03:00.239 China Hawk. She has a long record supporting human rights 0:03:00.320 --> 0:03:03.000 issues are related to China. She's met with the Doli Llama, 0:03:03.120 --> 0:03:07.000 She's met with Joshua Wang, the pro democracy activists from 0:03:07.000 --> 0:03:11.400 Hong Kong. She's met with ethnic wagers from Shinjong. So 0:03:11.480 --> 0:03:13.640 this is just in keeping with the long history of 0:03:13.880 --> 0:03:17.359 Nancy Pelosi's position when it comes to highlighting human rights 0:03:17.440 --> 0:03:20.760 issues democracy issues related to China. Bloomberg's Bruce ein Horn 0:03:20.800 --> 0:03:23.400 says Pelosi's trip would make her the highest ranking American 0:03:23.440 --> 0:03:26.960 politician to visit Taiwan in twenty five years. Well, Nathan, 0:03:26.960 --> 0:03:30.359 the escalating tension between the US and China is impacting markets. 0:03:30.360 --> 0:03:34.000 This morning, US features are lower and Asian stocks fell overnight. 0:03:34.160 --> 0:03:37.280 We get the recapt from Bloomberg's Juliet Sally and Singapore 0:03:37.360 --> 0:03:40.320 Good Morning, Julia, Good morning Karen. China cs I three 0:03:40.760 --> 0:03:43.480 extended it's July losses and is now down around nine 0:03:43.520 --> 0:03:46.920 percent from its June peak, moving closer towards the correction 0:03:47.320 --> 0:03:49.520 tai When the stocks also came under pressure. While the 0:03:49.560 --> 0:03:52.480 Taiwan dollar fell to a May twenty low against the 0:03:52.480 --> 0:03:55.440 green bag, investors flocked to save Haven's with the yen 0:03:55.640 --> 0:03:58.560 rising against the dollar for a fifth session, its longest 0:03:58.560 --> 0:04:02.000 winning streaks since April twenty twenty one, and Australian bonnes 0:04:02.080 --> 0:04:05.000 rose while the Aussie dropped as the ABBA became slightly 0:04:05.080 --> 0:04:08.960 less hawkish while still delivering another fifty basis point hike 0:04:09.320 --> 0:04:13.280 in Singapore Juliet Sally Bloomberg Daybreak, juliett Thanks. In Europe 0:04:13.320 --> 0:04:16.240 this morning, shares of VP are up more than three 0:04:16.279 --> 0:04:19.000 and a half percent. The oil giants second quarter adjusted 0:04:19.040 --> 0:04:21.600 net income was the highest since two thousand and eight. 0:04:21.839 --> 0:04:25.200 We get more from Bloomberg Intelligence senior energy analyst Will Hairs. 0:04:25.680 --> 0:04:28.120 This is a very big beat from BP and two 0:04:28.240 --> 0:04:30.800 Q eight and a half billion in adjusted earnings. This 0:04:30.920 --> 0:04:34.200 is roughly more than two billion than the street consensus 0:04:34.240 --> 0:04:38.479 had estimated. A big driver here has been there the 0:04:38.640 --> 0:04:41.719 oil trading division, which is not broken out by BP. 0:04:42.720 --> 0:04:47.240 The company cited they had exceptional oil trading returns, capturing 0:04:47.320 --> 0:04:50.200 value from some of that historic volatility we have seen 0:04:50.480 --> 0:04:53.800 well Hare's with Bloomberg Intelligence says VP also increased its 0:04:53.839 --> 0:04:56.840 dividend and accelerated share by backs. Well back here in 0:04:56.880 --> 0:05:00.480 the US, Nathan, shares of Pinterest are surging more than 0:05:00.600 --> 0:05:04.760 nine percent, as after Elliott Investment Management confirmed at Steak 0:05:04.839 --> 0:05:07.440 as the company's top shareholder. Let me get the story 0:05:07.480 --> 0:05:10.960 from Bloomberg's Charley Pillett. Elliott says it approves of the 0:05:10.960 --> 0:05:15.480 company's leadership. Sales at pin Trust increase nine percent to 0:05:15.560 --> 0:05:18.640 six hundred sixty five point nine million dollars in the 0:05:18.680 --> 0:05:21.920 second quarter. Pinterests that had had four hundred thirty three 0:05:21.960 --> 0:05:24.920 million monthly active users at the end of the period 0:05:24.920 --> 0:05:28.520 on June, about the same as in the previous quarter, 0:05:28.839 --> 0:05:32.080 but a five percent decline from a year earlier. In 0:05:32.200 --> 0:05:35.520 New York, Charlie Pellett Bloomberg taybreak all right, Charlie, thank you, 0:05:35.520 --> 0:05:38.200 and the earnings continue today. With more than forty companies 0:05:38.240 --> 0:05:41.680 reporting Uber Technology reports. This afternoon, we get a preview 0:05:41.680 --> 0:05:45.360 from Bloomberg's Tom Busby. Investors will focus on two things 0:05:45.440 --> 0:05:48.520 from the second quarter results out today, signs of how 0:05:48.560 --> 0:05:51.320 a shortage of drivers may have impacted its ride hailing 0:05:51.360 --> 0:05:54.679 business and how much it's food delivery unit Uber Eats 0:05:54.720 --> 0:05:58.359 may have suffered from rising food costs. Bloomberg and Census 0:05:58.360 --> 0:06:01.520 calls for revenue of seven point nine billion dollars at 0:06:01.560 --> 0:06:04.440 a loss of twenty five cents per share. Total losses 0:06:04.480 --> 0:06:08.520 forecast to be around four hundred million dollars. Tom Busby 0:06:08.680 --> 0:06:11.760 Bloomberg Daybreak. All right, Tom, thank you all. Another corporate 0:06:11.800 --> 0:06:14.320 news this morning. The legal moves are heating up in 0:06:14.400 --> 0:06:17.440 Twitter's case against Elon Musk. Can we get the latest 0:06:17.480 --> 0:06:20.280 line from Bloomberg's reneed a Young, Good morning, Randa, Good 0:06:20.279 --> 0:06:24.200 morning Karen. Twitter is probing the social circle of Elon Musk. 0:06:24.480 --> 0:06:27.640 Lawyers are making far reaching legal requests about his forty 0:06:27.640 --> 0:06:30.719 four billion dollar deal to take Twitter private. That's according 0:06:30.760 --> 0:06:34.520 to legal documents obtained by The Washington Post. Now, Twitter's 0:06:34.600 --> 0:06:38.200 legal team asked for information about Silicon Valley elite investors, 0:06:38.400 --> 0:06:41.760 including David Sex and Mark Andreson, and since some of 0:06:41.760 --> 0:06:44.599 the heavy hitters have not been named in the deal publicly, 0:06:44.960 --> 0:06:47.760 it suggests just how far Twitter is willing to go 0:06:48.120 --> 0:06:51.040 to force Elon Musk to honor the deal. That Twitter 0:06:51.120 --> 0:06:54.440 is also probing Morgan Stanley, Bank of America and other 0:06:54.480 --> 0:06:58.360 banks that committed to backing the acquisition. Live in New York, 0:06:58.400 --> 0:07:00.640 I'm renned a Young Bloomberg day Brea. Thanks you need 0:07:00.680 --> 0:07:03.440 to SMP futures now down twenty five point, Staff futures 0:07:03.440 --> 0:07:05.760 down a hundred forty five. Nasdaq feutures are lower by 0:07:05.839 --> 0:07:08.719 ninety nine points. The tenure. Treasury is up for thirty 0:07:08.760 --> 0:07:11.680 seconds yield two point five percent yield on the two year, 0:07:12.000 --> 0:07:15.840 two point eight five Straight ahead, your latest local headlines, 0:07:15.880 --> 0:07:23.400 and a check of sports. This is Bloomberg at five 0:07:23.400 --> 0:07:25.480 oh seven on Wall Street where it's seventy two degrees 0:07:25.520 --> 0:07:28.080 in Central Park. We got an overturn tractor trailer in 0:07:28.160 --> 0:07:31.560 northbound New Jersey Turnpike Exit seven. A details coming up 0:07:31.560 --> 0:07:34.440 in traffic. First Michael Barr with what else is going 0:07:34.480 --> 0:07:36.640 on in New York and around the world. Good morning, Michael, 0:07:36.680 --> 0:07:39.320 Good morning Nathan. New York City as declared a state 0:07:39.360 --> 0:07:43.120 of emergency as monkey pox cases continue to rise. A 0:07:43.200 --> 0:07:46.800 reporter grass Mayor Adams if the city has quote dropped 0:07:46.880 --> 0:07:50.480 the ball on its response, Adams says, it has done 0:07:50.560 --> 0:07:53.720 the best it could with tools it had. We will 0:07:53.760 --> 0:07:57.520 receive it less than we deserved. In vaccines, we advocated 0:07:57.640 --> 0:08:00.920 we utilize our direct communication with the White House to 0:08:01.000 --> 0:08:04.560 give more. About a quarter of all monkeypox cases in 0:08:04.640 --> 0:08:07.320 the United States are in New York City. An estimated 0:08:07.360 --> 0:08:09.720 one hundred fifty thousand New Yorkers are at risk of 0:08:09.800 --> 0:08:13.560 monkeypox exposure. California has declared a state of emergency to 0:08:13.640 --> 0:08:16.560 deal with the outbreak of monkeypox more in this live 0:08:16.560 --> 0:08:19.960 report from Bloomberg's John Tucker John Michael. Governor Gavin Newsom 0:08:19.960 --> 0:08:23.320 made the declaration to bolster the state's vaccine efforts. It 0:08:23.400 --> 0:08:26.160 makes California the second state in three days to take 0:08:26.160 --> 0:08:28.960 the step. Nearly eight hundred cases have been reported in 0:08:29.000 --> 0:08:31.960 the state. He says California will continue to work with 0:08:31.960 --> 0:08:35.959 the federal government to secure more vaccines, raise awareness about 0:08:36.000 --> 0:08:40.679 reducing risk, and stand with the LGBT community fighting stigmatization. 0:08:41.040 --> 0:08:43.720 This move does come after the similar declaration of New 0:08:43.800 --> 0:08:47.439 York State Saturday and in San Francisco Thursday. John Tucker, 0:08:47.440 --> 0:08:50.360 Bloomberg Day, John, Thank you, Sarah. It's primary day in 0:08:50.400 --> 0:08:54.400 five states. In Arizona, voters are choosing between candidates who 0:08:54.440 --> 0:08:58.080 say they wouldn't have certified the results of the campaign 0:08:58.440 --> 0:09:00.960 and those who argue it is time to move on. 0:09:01.600 --> 0:09:06.280 Other closely watched contests include races for Michigan's governor and 0:09:06.480 --> 0:09:09.679 Missouri senator. Voters in Kansas will be the first to 0:09:09.760 --> 0:09:12.720 design on abortion rights since the U. S. Supreme Court 0:09:12.800 --> 0:09:17.760 revoked Roe v. Wade. Washington state also holds primaries. The 0:09:17.880 --> 0:09:21.400 Ukrainian troops have made inroads into the Russian defenses and 0:09:21.559 --> 0:09:25.239 used US supplied rocket launchers to strike bridges and military 0:09:25.240 --> 0:09:28.760 infrastructure in the south. Moscow is diverting its forces from 0:09:28.760 --> 0:09:32.400 the Donbas region to counter the new threat. Global News 0:09:32.480 --> 0:09:36.160 twenty four hours a day on air and on Bloomberg Quicktake, 0:09:36.440 --> 0:09:40.000 powered by more than hundred journalists and analysts in more 0:09:40.040 --> 0:09:44.199 than one twenty countries. Michael Barr and this is Bloomberg, Nathan. 0:09:44.240 --> 0:09:51.079 Thank you, Michael. Five oh nine on Ball Street time 0:09:51.080 --> 0:09:53.560 for the Bloomberg Sports Update. Good morning, John Stenshower. All right, 0:09:53.600 --> 0:09:55.720 good morning, Nathan. Has been such a great baseball season 0:09:55.720 --> 0:09:58.080 in New York through four months, and both teams began 0:09:58.200 --> 0:10:01.000 August with victories the Yankees seven to two for the 0:10:01.080 --> 0:10:03.600 Mets seven to three in Washington. They stretched their winning 0:10:03.640 --> 0:10:06.960 streak to seven the night after nineteen hits thirteen more 0:10:07.120 --> 0:10:09.480 four by Brandon Nemo home runs for Pete Alonzo and 0:10:09.480 --> 0:10:13.120 Francisco Lindor to back Max Scherzer. Vina's old team improved 0:10:13.120 --> 0:10:15.720 the seven and two. Mets fans have dreamt about the 0:10:15.880 --> 0:10:19.040 one two punch of Scherzer and Jacob de Graham, and 0:10:19.080 --> 0:10:22.000 the night after Scherzer, it's de Gram making his long 0:10:22.080 --> 0:10:26.400 anticipated season debut. Definitely excited. Um, you know, like you said, 0:10:26.400 --> 0:10:28.720 it's been a long time. Um, you know, this has 0:10:28.720 --> 0:10:32.120 been a pretty slow process of coming back. So um 0:10:32.120 --> 0:10:34.520 excited to be out there. Uh, nerves haven't really said 0:10:34.559 --> 0:10:36.959 in yet, but you know, I'm sure Tuesday, I'll be 0:10:37.040 --> 0:10:41.800 pretty nervous and uh have feeling's gonna feel like my debut. Meanwhile, 0:10:41.880 --> 0:10:44.360 let the stadium familiar script for the Yankees. Four home 0:10:44.440 --> 0:10:47.440 runs Anthony Rizzo three run homer before the Mariners recorded 0:10:47.440 --> 0:10:50.400 their first out. His twenty six and one in inlet 0:10:50.480 --> 0:10:54.000 Or Shure enough Aaron Judge is forty second. Jose Trevino 0:10:54.000 --> 0:10:55.920 hadded two solo shots to Mingo her mom got his 0:10:55.960 --> 0:10:57.880 first win, but he may be losing his spot on 0:10:57.920 --> 0:11:01.360 the rotation because the Yankees, before today's tread their trade deadline, 0:11:01.360 --> 0:11:05.040 acquired Frankie Montas from Oakland. They also got reliever Lou Trevino. 0:11:05.360 --> 0:11:08.520 They acquired another reliever, Scott Efrost, from the Cooks. The 0:11:08.640 --> 0:11:11.120 arbitrator hired to rule on de Shaun Watson game a 0:11:11.160 --> 0:11:14.360 six game suspension for his sexual missconduct with missuses, but 0:11:14.720 --> 0:11:16.960 under terms of the labor deal, the NFL, who wanted 0:11:16.960 --> 0:11:20.480 a longer suspension can appeal basically to themselves and then 0:11:20.520 --> 0:11:23.080 add more games and I could lead to a lawsuit 0:11:23.160 --> 0:11:26.000 by the unions of the Watson story likely not over yet. 0:11:26.360 --> 0:11:30.040 Johns nashwar Bloomberg Sports Nathan John thank you, SMP futures 0:11:30.040 --> 0:11:32.520 again down twenty six point staff features down a hundred 0:11:32.520 --> 0:11:35.680 forty two. Nastac features lower by a hundred points. The 0:11:35.720 --> 0:11:38.920 tenure Treasury is up four thirty seconds yield two point 0:11:38.920 --> 0:11:40.920 five five percent yield on the two year two point 0:11:40.960 --> 0:11:44.240 eight five percent. Nimex crewed lower by a third percent, 0:11:44.320 --> 0:11:46.640 or thirty one cents at ninety three dollar sixty cents 0:11:46.640 --> 0:11:49.040 a barrel. Komex scold up at tenth percent, up to 0:11:49.320 --> 0:11:53.959 forty at seventeen ounce. The Euro one point zero two 0:11:54.080 --> 0:11:56.480 four one against the dollar the end one thirty point 0:11:56.600 --> 0:11:59.679 nine eight Bitcoin down one point four percent twenty two 0:11:59.679 --> 0:12:02.880 thousand and eight hundred dollars. And you're listening to Bloomberg 0:12:03.000 --> 0:12:08.959 Day Break Bloomberg eleven three oh weather. Chance for a shower, 0:12:09.000 --> 0:12:11.719 thundershower today with a high neeer ninety degrees sunny, your 0:12:11.840 --> 0:12:15.839 ninety tomorrow sunny, hot, humid for Thursday with higher nine 0:12:16.160 --> 0:12:23.280 five Right now seventy two in Central Park Markets, headlines 0:12:23.400 --> 0:12:26.359 and breaking news twenty four hours a day at Bloomberg 0:12:26.400 --> 0:12:29.800 dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. 0:12:30.000 --> 0:12:39.119 This is a Bloomberg Business Flash, and I'm Karen Moscow's 0:12:39.160 --> 0:12:42.360 docks in US Dock Index futures are falling amid escalating 0:12:42.440 --> 0:12:45.520 US China tension over Taiwan and deepening worries about a 0:12:45.559 --> 0:12:49.960 global economic slowdown, driving investors into the safety of government bonds. 0:12:50.000 --> 0:12:52.720 We check the markets every fifteen minutes throughout the trading day. 0:12:52.840 --> 0:12:55.520 On Bloomberg s and P Future is down twenty four 0:12:55.600 --> 0:12:59.000 points down, futures down a hundred thirty three nasdack futures 0:12:59.040 --> 0:13:02.000 down ninety four The decks in Germany's down six tenths 0:13:02.040 --> 0:13:04.800 of upper set, and your Treasury at five thirty seconds 0:13:04.880 --> 0:13:06.959 held two point five five per cent. They yield on 0:13:07.000 --> 0:13:09.720 the two year two point eight five per set. Night 0:13:09.840 --> 0:13:12.079 mex Screwed oil is down about two tenths per center 0:13:12.160 --> 0:13:14.599 eighteen cents at ninety three dollars seventy one cents of 0:13:14.679 --> 0:13:17.440 Barrel Comics gold is up about two tenths of upper 0:13:17.520 --> 0:13:21.240 center two dollars seventy cents at seventeen ninety announced, the 0:13:21.360 --> 0:13:23.680 euro one point oh two four one against the dollar, 0:13:23.760 --> 0:13:26.120 British found one point two two oh five and the 0:13:26.280 --> 0:13:29.040 end one thirty point nine five and Bitcoin is down 0:13:29.120 --> 0:13:32.000 when at a quarter percent at twenty two thousand, eight 0:13:32.080 --> 0:13:34.760 hundred forty dollars. Today, we are watching for the jolts 0:13:34.920 --> 0:13:38.600 jobs you report at a ten o'clock Wall Street time. Caterpillar, Starbucks, 0:13:38.640 --> 0:13:42.120 and Uber among companies scheduled to report earnings today. That's 0:13:42.120 --> 0:13:44.960 a Bloomberg business flash. Now here's Michael Barr with more 0:13:45.000 --> 0:13:47.560 on what's going on around the world. Michael, good morning, 0:13:47.679 --> 0:13:50.560 Good morning Karen. President Joe Biden has announced that al 0:13:50.679 --> 0:13:53.640 kind of leader I'm in al zaur Heerie was killed 0:13:53.960 --> 0:13:57.600 in a US drone strike in Cobble During an evening address. 0:13:57.800 --> 0:14:01.600 Biden is hailing the operation as delivering justice, while expressing 0:14:01.679 --> 0:14:05.439 hope that it brings one more measure of closure to 0:14:05.520 --> 0:14:08.240 the families of the victims of the nine eleven attacks. 0:14:08.640 --> 0:14:11.920 How Speaker Nancy Pelosi is expected to land in Taiwan 0:14:12.360 --> 0:14:16.319 in defiance of Chinese threats. The trip today would make 0:14:16.360 --> 0:14:20.120 Pelosi the highest ranking American politician to visit the island. 0:14:20.360 --> 0:14:23.960 In twenty five years. In baseball, the Yankees beat the 0:14:24.120 --> 0:14:27.760 Mariners seven to the Mets beat the Nationals seven three. 0:14:28.000 --> 0:14:30.920 The Red Sox and Orioles were also winners. The Giants 0:14:31.040 --> 0:14:33.720 lost to the Dodgers eight. To Global News twenty four 0:14:33.760 --> 0:14:36.520 hours a day on air and on Bloomberg Quick Take, 0:14:36.560 --> 0:14:39.840 powered by more than twenty seven under journalists and analysts 0:14:39.880 --> 0:14:43.240 more than a twenty countries. Michael Barn this is Bloomberg. 0:14:43.320 --> 0:14:45.800 Nathan right, Michael. Thanks, It's five nineteen on Wall Street 0:14:45.840 --> 0:14:49.120 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:14:49.200 --> 0:14:51.480 Daybreak on a morning where geo politics has been more 0:14:51.520 --> 0:14:55.040 in focus for markets than we've seen in quite some time. 0:14:55.160 --> 0:14:58.640 Let's bring in Joe Matthew this morning, Bloomberg Washington correspondent, 0:14:58.720 --> 0:15:01.120 host of Sound on Weekday is at five Eastern here 0:15:01.200 --> 0:15:04.840 on Bloomberg Radio. Joe, good morning. Let's start off with 0:15:05.000 --> 0:15:07.400 the breaking news that we got last night from President 0:15:07.480 --> 0:15:10.760 Biden that i'm an Oswahi is now off the battlefield. 0:15:10.800 --> 0:15:13.480 Do we have any more information about the strike that 0:15:13.560 --> 0:15:15.840 took him out? Well, we know it was a drone strike. 0:15:16.280 --> 0:15:20.720 A couple of missiles rockets were sent down. To the balcony. 0:15:20.800 --> 0:15:24.200 Apparently where he was standing, he stepped outside, I guess 0:15:24.240 --> 0:15:25.920 to get some fresh air, and those were the last 0:15:26.440 --> 0:15:28.520 breaths he took. What we don't know is where the 0:15:28.640 --> 0:15:30.920 intelligence came from. And this is something that we're very 0:15:31.000 --> 0:15:33.960 curious about because of the debate following our withdrawal from 0:15:33.960 --> 0:15:38.440 Afghanistan over what we call over the Horizon missions. This is, 0:15:38.560 --> 0:15:41.040 you know, the idea of sending drones in without having 0:15:41.080 --> 0:15:44.040 boots on the ground, without having troops there or intelligence 0:15:44.080 --> 0:15:47.520 personnel there, that we can from our satellites and technology 0:15:48.040 --> 0:15:51.240 uh be able to respond to threats against the United States. 0:15:51.400 --> 0:15:53.320 There were a lot of doubts about that, a lot 0:15:53.360 --> 0:15:55.880 of a lot of criticism of the administration upon the 0:15:55.960 --> 0:15:59.880 time of our withdrawal, and it it was an opportunity 0:16:00.040 --> 0:16:02.280 last night for the White House for Joe Biden to 0:16:02.360 --> 0:16:05.200 show that it actually worked and pretty remarkable to see 0:16:05.280 --> 0:16:07.520 him standing out on that balcony Nathan, because we have 0:16:07.640 --> 0:16:11.400 to remember he still technically has COVID. Made for a 0:16:11.520 --> 0:16:13.920 very pretty picture as he spoke to Americans last night, 0:16:13.960 --> 0:16:16.440 but it also reminded us what he's dealing with personally. Yeah, 0:16:16.440 --> 0:16:18.480 and it also reminded US, as you allude to of 0:16:18.560 --> 0:16:21.600 the hasty withdrawal from Afghanistan, and as you mentioned that, 0:16:21.720 --> 0:16:25.080 the idea that the US could still have a footprint 0:16:25.160 --> 0:16:27.480 and do those kinds of over the horizon attacks was 0:16:27.520 --> 0:16:30.440 a big part of the rationale for what has become 0:16:30.920 --> 0:16:35.160 a very unpopular decision by the President to move troops 0:16:35.240 --> 0:16:37.560 out after the Taliban took over a cobble. Is the 0:16:37.600 --> 0:16:40.880 White House sort of looking for some vindication here by 0:16:41.120 --> 0:16:45.760 actually showing that the leader of al Qaeda was taken out? Well, sure, 0:16:45.800 --> 0:16:48.360 I mean look like I said, it's it's an opportunity 0:16:48.400 --> 0:16:51.200 to respond to that criticism, which is now basically a 0:16:51.280 --> 0:16:53.920 year old. Uh And I don't think that the public 0:16:54.240 --> 0:16:57.360 sentiment was against removing troops. It was the style in 0:16:57.400 --> 0:16:59.240 which had happened. It was the way that things did 0:16:59.320 --> 0:17:01.600 not appear to be planned, the way it was conducted, 0:17:01.640 --> 0:17:04.560 and of course the deaths of thirteen Marines. But remember 0:17:04.600 --> 0:17:08.399 with regard to drone strikes, they remained controversial. Uh And 0:17:08.560 --> 0:17:10.440 and it was about a year ago that we killed 0:17:10.520 --> 0:17:12.840 ten civilians and had to apologize for that and what 0:17:12.960 --> 0:17:15.760 we thought was a counter terror strikes. So yes, this 0:17:15.960 --> 0:17:17.879 is an opportunity for the White House to say this 0:17:18.040 --> 0:17:21.920 type of mission can work. And obviously the other big 0:17:22.000 --> 0:17:24.959 source of tension this morning is the possibility that how 0:17:25.000 --> 0:17:28.840 Speaker Pelosi is going to arrive in Taiwan within hours. 0:17:29.240 --> 0:17:32.480 What's the latest there. Let spoke with John Kirby yesterday 0:17:32.560 --> 0:17:34.920 who speaks for the National Security Council of the White House, 0:17:35.000 --> 0:17:37.920 and his messaging was very deliberate. There's a precedent for 0:17:38.000 --> 0:17:41.119 this trip. Speakers of the House have gone before, albeit 0:17:41.119 --> 0:17:43.280 it it's been about a quarter century. And that the 0:17:43.359 --> 0:17:46.480 White House that the United States as a nation is 0:17:46.560 --> 0:17:49.960 making no change in policy towards China or the One 0:17:50.080 --> 0:17:53.320 China policy or Taiwan. This is status quo, and it 0:17:53.520 --> 0:17:56.119 is in fact Beijing that has been cranking up the 0:17:56.160 --> 0:17:59.000 rhetoric here. Uh. The White House, as you know, did 0:17:59.080 --> 0:18:01.680 not prefer this happened, Joe Biden said two weeks ago. 0:18:01.720 --> 0:18:03.520 The military didn't think it was a good idea. But 0:18:03.840 --> 0:18:05.760 the White House can't tell the Speaker what to do. 0:18:06.080 --> 0:18:08.120 On the other hand, the White House has to provide, 0:18:08.359 --> 0:18:11.000 or at least the administration as a whole Visavi the 0:18:11.040 --> 0:18:14.440 Pentagon must provide the transportation and security for her. It's 0:18:14.440 --> 0:18:16.560 gonna be flying in on an Air Force jet. So 0:18:16.720 --> 0:18:18.639 to suggest as well if the White House is watching 0:18:18.680 --> 0:18:20.000 this on the news with the rest of US is 0:18:20.040 --> 0:18:22.280 not very accurate. This is gonna take both sides of 0:18:22.320 --> 0:18:25.160 Pennsylvania Avenue. In our last minute here, Joe, we've gotten 0:18:25.200 --> 0:18:28.359 even more response from China. There was a briefing earlier 0:18:28.520 --> 0:18:32.240 this morning vowing resolute measures if Pelosi does visit Taiwan. 0:18:32.359 --> 0:18:35.080 We've had a ratcheting up of rhetoric here. What is 0:18:35.160 --> 0:18:37.960 the US preparing for in terms of perhaps something more 0:18:38.400 --> 0:18:41.240 than just rhetoric getting ratcheted. Yeah, it's been pretty hot, 0:18:41.320 --> 0:18:44.840 and they did name Pelosi in that briefing this morning. 0:18:45.119 --> 0:18:47.560 John Kirby told us yesterday some of the things that 0:18:47.640 --> 0:18:51.440 they're concerned about maybe another missile test labba couple of 0:18:51.520 --> 0:18:55.400 missiles uh into the ocean near Taiwan, which actually happened 0:18:55.880 --> 0:18:59.439 uh last time we sent a high ranking official there. Uh. 0:18:59.520 --> 0:19:01.359 Maybe there is more to it than that. Maybe we 0:19:01.480 --> 0:19:05.640 have a large scale incursion into Taiwan's airspace. That would 0:19:05.680 --> 0:19:08.840 be something we're typically testing those lines. But to have 0:19:08.960 --> 0:19:11.520 a number of jets, maybe a squadron from China fly 0:19:11.680 --> 0:19:14.440 over there, if not over the island itself, would be 0:19:14.520 --> 0:19:17.360 considered a very bold move. Keep in mind, the Pentagon 0:19:17.520 --> 0:19:20.119 is going to be flying escorts with Nancy Pelosi to 0:19:20.240 --> 0:19:22.720 make sure she gets in and out safely, and the 0:19:23.240 --> 0:19:26.520 chance for a mistake, the possibility of an error is 0:19:26.640 --> 0:19:29.200 what could be the biggest risk today. And we'll have 0:19:29.520 --> 0:19:31.480 much more from that interview that you did with a 0:19:31.640 --> 0:19:34.320 National Security Council spokesman John Kirby coming up here in 0:19:34.359 --> 0:19:37.320 about a half hour here on Bloomberg day Break. Joe 0:19:37.359 --> 0:19:39.800 Matthew or Washington correspondent, host of sound On. You can 0:19:39.840 --> 0:19:43.119 catch him every weekday evening five pm Eastern Time on 0:19:43.200 --> 0:19:45.680 Bloomberg Radio. And Joe'll be back up with us later 0:19:45.800 --> 0:19:48.800 on in this program on Bloomberg Daybreak. As we continue 0:19:48.840 --> 0:19:52.240 to follow developments with how Speaker Pelosi expected to arrive 0:19:52.440 --> 0:19:56.640 in Taiwan within hours ahead of that, futures are moving lower. 0:19:56.720 --> 0:19:59.439 We have SMP futures down twenty six point, STOW futures 0:19:59.480 --> 0:20:02.159 down a hundred forty seven. Nastack future is lower by 0:20:02.200 --> 0:20:08.159 a hundred one points. This is Bloomberg and Bloomberg day 0:20:08.200 --> 0:20:10.400 Break is brought to you by Peapack Private Wealth Management. 0:20:10.480 --> 0:20:13.320 Prepack Private Wealth Management knows that the portfolio is more 0:20:13.359 --> 0:20:15.560 than a collection of assets, It's a path to your future. 0:20:15.680 --> 0:20:19.280 Visit Peapack Private dot com. Begin your financial legacy today. 0:20:22.119 --> 0:20:26.640 Broadcasting live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.760 --> 0:20:30.240 Bloomberg Living for You to Washington, d C. Bloomberg ninety 0:20:30.560 --> 0:20:34.040 one to Boston, Bloomberg one O six one to San Francisco, 0:20:34.160 --> 0:20:37.359 Bloomberg M sixty to the Country Sirius xm J A 0:20:37.440 --> 0:20:40.320 one nine team, and around the globe the Bloomberg Business 0:20:40.720 --> 0:20:50.480 and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's 0:20:50.560 --> 0:20:52.960 five thirty on Wall Street. Good morning. I'm Nathan Hagar 0:20:53.240 --> 0:20:55.879 and I'm Karen Moscow. We are just about four hours 0:20:55.920 --> 0:20:58.040 away from the open of US trading. Let's get you 0:20:58.119 --> 0:20:59.399 up to date on the news. You need to know 0:20:59.480 --> 0:21:02.320 what this show where Politics front and center this morning 0:21:02.359 --> 0:21:04.720 and the beginn of President Biden's addressed to the nation 0:21:04.840 --> 0:21:07.879 last night. The President said a US drone strike in 0:21:07.880 --> 0:21:10.600 Afghanistan has killed one of the planners of the nine 0:21:10.640 --> 0:21:14.360 eleven attacks. I'm in Alzowari was the leader of al Qaeda. 0:21:14.640 --> 0:21:18.119 President Biden thanked experts and operatives who brought justice to 0:21:18.240 --> 0:21:22.399 al Zawari is thanks to their extraordinary persistence of skill 0:21:22.960 --> 0:21:27.160 that this operation of success than it's all safer. President 0:21:27.240 --> 0:21:29.760 Biden said he authorized this strike and that there were 0:21:29.840 --> 0:21:34.160 no civilian casualties. Another major story we're following this morning, Karen, 0:21:34.240 --> 0:21:38.240 is Nancy Pelosi's visit to Taiwan. China is threatening military 0:21:38.320 --> 0:21:40.879 action over the visit, but the House Speakers should make 0:21:40.960 --> 0:21:44.040 the trip safely. That's according to US National Security Council 0:21:44.080 --> 0:21:47.600