WEBVTT - Bloomberg Daybreak: July 20, 2022 - Hour 1 (Radio) 0:00:03.080 --> 0:00:06.480 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:06.559 --> 0:00:11.440 Daybreak for Wednesday, July two. Coming up, the shower stocks 0:00:11.440 --> 0:00:14.600 look to extend Wall Street's biggest rally in three weeks. 0:00:15.040 --> 0:00:18.279 Netflix shares gain after subscriber loss was not as bad 0:00:18.320 --> 0:00:21.920 as feared. Inflation in the UK surges to a forty 0:00:22.000 --> 0:00:25.320 year high, and President Biden plans to take executive action 0:00:25.400 --> 0:00:28.840 to tackle climate change. The Trying Steam bakes under the 0:00:28.880 --> 0:00:32.960 Summer Sizzle and Shark Sightings closed Rockaway Beaches. On John 0:00:33.000 --> 0:00:36.600 Tucker Bore Straight Ahead. I'm John stand and Sports making 0:00:36.720 --> 0:00:39.199 nine straight All Star Game victories with the American lad 0:00:39.280 --> 0:00:41.600 the Yankees. Dian Carlos Stanton was the m v P. 0:00:44.479 --> 0:00:48.040 That's All Train Ahead on Bloomberg day Break on Bloomberg 0:00:48.040 --> 0:00:51.920 eleven three, on New York Bloomberg one, Washington, d C, 0:00:52.400 --> 0:00:55.960 Bloomberg one oh six one, Boston, Bloomberg nine sixties, and 0:00:56.080 --> 0:01:00.200 Francisco Sirius XM one nineteen and around the world on 0:01:00.360 --> 0:01:03.640 Bloomberg Radio dot Com and via the Bloomberg Business App. 0:01:07.520 --> 0:01:10.560 Good morning, I'm Nathan Hagar and I'm Karen Moscow. US 0:01:10.640 --> 0:01:13.280 Dock index futures are higher. This morning, we are coming 0:01:13.360 --> 0:01:14.880 up to five oh one on Wall Street, and we 0:01:15.000 --> 0:01:17.480 check the markets every fifteen minutes throughout the trading day. 0:01:17.600 --> 0:01:20.080 On Bloomberg right now, must In the futures up five 0:01:20.120 --> 0:01:23.160 points down, Future is up twenty three, and Nastack Future 0:01:23.200 --> 0:01:25.960 is up twenty nine. The decks in Germany is up 0:01:25.959 --> 0:01:29.199 a tenth of uppercent. Ten year Treasury up ten thirties seconds, 0:01:29.280 --> 0:01:31.720 yield two point nine eight percent, and the yield on 0:01:31.760 --> 0:01:35.080 the two year three point one eight percent. Nine Max 0:01:35.120 --> 0:01:38.200 Screwed oil is down eight tenths of uppercent. Nathan Well 0:01:38.280 --> 0:01:41.400 Karen futures are adding to yesterday's gains on Wall Street, 0:01:41.400 --> 0:01:43.440 which are the biggest in three weeks. It was a 0:01:43.440 --> 0:01:46.559 broad based rally, all eleven industry groups in the SMP 0:01:46.680 --> 0:01:50.080 five hundred advanced. John Baranko is Chief Investment Officer of 0:01:50.120 --> 0:01:53.800 Fundamental Investments at all Spring Global Investments. I think we're 0:01:53.800 --> 0:01:56.280 in a transition period here, and then the market really 0:01:56.400 --> 0:01:59.880 is in media evidence really and I think evidence that 0:02:00.000 --> 0:02:04.880 inflation is speaking, evidence that um, you know, we're moving 0:02:04.880 --> 0:02:07.280 down a path of hopefully towards a you know, a 0:02:07.320 --> 0:02:10.520 soft landing. John Baranko at all Spring Global Investment says 0:02:10.520 --> 0:02:12.920 he's looking for companies with strong balance sheets that are 0:02:12.919 --> 0:02:16.919 able to weather tough economic conditions. Well, Nathan, earnings optimism 0:02:17.000 --> 0:02:19.880 is helping fuel this morning's gains. Netflix shares her up 0:02:19.880 --> 0:02:22.560 six and a half percent in early trading after subscriber 0:02:22.639 --> 0:02:25.240 numbers came in better than estimates. To get this story 0:02:25.280 --> 0:02:29.040 from Bloomberg's Ternley Pellet, The leader in paid streaming TV, 0:02:29.240 --> 0:02:32.560 says it lost nine hundred seventy thousand subscribers in the 0:02:32.600 --> 0:02:36.240 second quarter, less than half what Wall Street feared, thanks 0:02:36.280 --> 0:02:39.120 in large part to a new season of Stranger Things, 0:02:39.320 --> 0:02:44.119 the services most popular English language series. This quarter, Netflix 0:02:44.120 --> 0:02:47.280 expects to sign up one million subscribers. While that is 0:02:47.320 --> 0:02:50.360 well short of the one point eight three million analysts 0:02:50.400 --> 0:02:54.360 forecasts this period, it reverses the losses of the first half. 0:02:54.800 --> 0:02:58.160 In New York Charlie Pellett Bloomberg Daybreak, Charlie, thank you, 0:02:58.160 --> 0:03:01.280 and earnings continue to roll in. With nearly seventeen companies 0:03:01.320 --> 0:03:04.440 on the SMP reporting today, we get results from Tesla 0:03:04.560 --> 0:03:07.480 after the closing bell here. The preview is Bloomberg Jeff 0:03:07.480 --> 0:03:12.200 Balinger Bloomberg Intelligence. As Tesla's fundamentals relative to its peers 0:03:12.240 --> 0:03:15.160 are strong, and the company's credit rating could be moved 0:03:15.200 --> 0:03:18.639 to investment grade. But lockdowns in China had an impact 0:03:18.639 --> 0:03:22.800 on vehicle production, and Tesla is heavily invested in bitcoin. 0:03:23.120 --> 0:03:25.839 Its bottom line may include a charge of nearly three 0:03:25.919 --> 0:03:28.799 quarters of a billion dollars related to the plunge and 0:03:28.840 --> 0:03:33.680 the price of the cryptocurrency. Jeff Bullinger, Bloomberg Daybreak. All right, Jeff, 0:03:33.720 --> 0:03:36.280 thank you well. Tesla has been a longtime favorite of 0:03:36.320 --> 0:03:39.200 investor Kathy Wood, and her funds have felt the pain 0:03:39.280 --> 0:03:42.320 as Tesla shares fail from their November peak. Now we're 0:03:42.400 --> 0:03:45.720 this morning Wood is closing down whatever exchange traded funds. 0:03:45.960 --> 0:03:48.160 We get the latest line from Bloomberg's Rainy to Young. 0:03:48.200 --> 0:03:51.320 Good morning, Rainy down, Good morning, Karen. A regulatory filing 0:03:51.360 --> 0:03:55.200 shows Kathie Wood is shutting down her ARC Transparency et F. 0:03:55.720 --> 0:03:58.760 The fund gained only twelve million dollars in assets since 0:03:58.760 --> 0:04:01.120 it launched at the end of last year. That's a 0:04:01.200 --> 0:04:04.640 fraction of the nine billion dollars in woods flagship fund. 0:04:05.080 --> 0:04:08.560 It contains holdings like Teal, Duck and Spotify, and was 0:04:08.640 --> 0:04:12.760 aimed at investing in companies that received high scores on transparency. 0:04:13.200 --> 0:04:17.320 Transparency Global which shaped the funds underlying portfolio, will stop 0:04:17.360 --> 0:04:20.520 calculating the index at the end of July. Live in 0:04:20.560 --> 0:04:23.159 New York. I'm gonna need a young Bloomberg daybreak. We 0:04:23.200 --> 0:04:25.400 need to thank you. Bitcoin is trading at a one 0:04:25.440 --> 0:04:27.440 month high this morning right now at about twenty three 0:04:27.440 --> 0:04:30.600 three hundred, but that's a far cry from November's peak 0:04:30.640 --> 0:04:34.520 of nearly sixty nine thousand. Billionaire investor Mike Nelvigrats weighed 0:04:34.520 --> 0:04:36.680 in on the sell off at the Bloomberg Crypto Summit 0:04:36.680 --> 0:04:39.440 in New York. What I don't think people expected was 0:04:39.839 --> 0:04:43.599 the magnitude of losses that would show up in you know, 0:04:43.680 --> 0:04:47.840 professional institutions balance sheets, and that caused the daisy chain 0:04:48.120 --> 0:04:51.560 of effects. It turned into a full fledged credit crisis. 0:04:52.440 --> 0:04:55.480 Mike Nelvigrat says regulators should do more to protect crypto 0:04:55.520 --> 0:04:58.720 investors and called for more transparency in the industry. Well, 0:04:58.760 --> 0:05:01.799 turning to the economy now, name then expect higher interest 0:05:01.880 --> 0:05:04.800 rates for the foreseeable future, and that's according to Blackstone. 0:05:04.839 --> 0:05:07.720 We come up with Joseph Zeidel, chief investment strategist at 0:05:07.720 --> 0:05:11.880 Blackstones Private Wealth Solutions Group. I think that inflation is 0:05:11.920 --> 0:05:14.120 more deeply entrenched in the U S economy, and it's 0:05:14.120 --> 0:05:17.320 going to require the Fed to take interest rates higher 0:05:17.480 --> 0:05:21.000 and the tightening cycle longer. So my own view is 0:05:21.000 --> 0:05:23.920 that Fed fund raids could exceed four percent. I think 0:05:23.960 --> 0:05:26.760 they could go above four and half percent. Make it close. 0:05:27.880 --> 0:05:30.880 Blackstone Private Wells Joseph Zeidel expects the Fed to hike 0:05:30.960 --> 0:05:34.000 by seventy five basis points at next week's meeting. Like 0:05:34.080 --> 0:05:36.440 the U S. Karen, inflation continues to be a major 0:05:36.480 --> 0:05:39.520 problem in Europe, and fresh data show the UK still 0:05:39.600 --> 0:05:42.359 struggling to tame prices. Let's go live to London and 0:05:42.400 --> 0:05:44.800 get the latest with Bloomberg's U and Potts. Good morning Human, 0:05:45.200 --> 0:05:48.120 Good morning Nathan and Karen. A fresh forty year high 0:05:48.160 --> 0:05:52.080 for UK inflation. Consumer prices rose nine point four percent 0:05:52.200 --> 0:05:54.600 in the eighth of June, driven by surging prices for 0:05:54.720 --> 0:05:58.040 motor fuel. The pain only sets get worse, with inflation 0:05:58.080 --> 0:06:01.839 forecast the top eleven percent in October, when another gas 0:06:01.839 --> 0:06:04.960 and electricity price hike is jew. The banking and has 0:06:05.000 --> 0:06:08.560 already increased rates five times since December and Today's day 0:06:08.560 --> 0:06:10.800 to Well, that's to calls for a jumbo hike at 0:06:10.839 --> 0:06:13.360 the bank's next meeting in London. I'm you and paults 0:06:13.480 --> 0:06:15.400 in back day break, are you and thank you all 0:06:15.480 --> 0:06:18.240 back here in the US, President Biden plans to take 0:06:18.279 --> 0:06:21.599 executive action to tackle climate change. With his clean energy 0:06:21.640 --> 0:06:24.920 agenda stalled on Capitol Hill. The President will outline his 0:06:25.000 --> 0:06:29.680 steps later today at a shuttered coal fire plant in Somerset, Massachusetts. 0:06:29.960 --> 0:06:33.040 He is not expected to clear a climate emergency bu 0:06:33.080 --> 0:06:36.640 Bloomberg Politics A contributor Rick Davis says he doesn't have to. 0:06:36.880 --> 0:06:40.160 There are many things he can do around pollution from cars, 0:06:40.240 --> 0:06:43.640 and and and and and put a little uh pressure 0:06:43.640 --> 0:06:46.360 on Joe Mansion by you know, talking about doing some 0:06:46.400 --> 0:06:50.120 things around coal and gas fired power plant regulation. So 0:06:50.480 --> 0:06:53.200 I think he could bring him along to the negotiating 0:06:53.240 --> 0:06:55.120 table if he wants to put some heat on Mansion 0:06:55.480 --> 0:06:59.520 and Bloomberg Politics contributor Rick Davis says, we'll have more 0:06:59.640 --> 0:07:02.720 on this presidential announcement in just a few minutes. Bloomberg's 0:07:02.720 --> 0:07:04.960 and Mastery is at the event and joins us a 0:07:04.960 --> 0:07:07.520 live in just a few moments. In the meantime, Karen 0:07:07.560 --> 0:07:10.360 futures are moving higher. We have SMP futures up seven points, 0:07:10.400 --> 0:07:13.680 down features up forty three, NASTACK futures higher by thirty 0:07:13.720 --> 0:07:16.400 six points. Straight ahead your latest local headlines and to 0:07:16.520 --> 0:07:24.240 check off sports. This is Bloomberg five oh seven on 0:07:24.280 --> 0:07:28.000 Wall Street, eighty degrees. Already in Central Park, tend to 0:07:28.080 --> 0:07:30.720 fifteen minute delays on the upper level George Washington Bridge 0:07:30.720 --> 0:07:33.880 after overnight construction. Saying more about that in traffic First. 0:07:33.960 --> 0:07:37.640 John Tucker's trying to stay cool in New York. Good morning, John. 0:07:38.040 --> 0:07:40.720 We'll forget about taking a swim as the heat wave 0:07:40.800 --> 0:07:44.080 grips the city. Everyone's been ordered out of the water 0:07:44.240 --> 0:07:48.200 on Rockaway Beaches. Sharks were seeing probably the area lit here. 0:07:48.280 --> 0:07:50.720 City Police department has been doing flyovers to look for 0:07:50.760 --> 0:07:53.800 any threats, and parks officials say they'll reopen the beach 0:07:53.840 --> 0:07:56.440 when it's safe to do so. A handful of recent 0:07:56.480 --> 0:07:59.920 shock attacts on Long Island beaches against a tourists, a surfer, 0:08:00.160 --> 0:08:03.840 a lifeguard. They've caught the attention of swimmers and officials. 0:08:04.440 --> 0:08:08.400 Trump endorsed candidate has when the closely watched Republican primary 0:08:08.400 --> 0:08:11.600 for governor in Maryland. That story this morning from Bloomberg's 0:08:11.640 --> 0:08:14.920 Amy Morris. Dan Cox won the Republican primary and the 0:08:15.040 --> 0:08:17.760 race to replace Governor Larry Hogan of Maryland, a race 0:08:17.840 --> 0:08:21.320 that became a proxy clash between former President Trump and Hogan, 0:08:21.520 --> 0:08:26.880 a potential GOP presidential candidate. Trump had endorsed Cox, while Hogan, 0:08:26.920 --> 0:08:29.840 who can't seek re election because of term limits, backed 0:08:29.920 --> 0:08:33.760 Kelly Schultz, who served in Hogan's administration. Cox will face 0:08:33.840 --> 0:08:37.600 the winner of the crowded Democratic primary. Cox organized bus 0:08:37.640 --> 0:08:40.560 loads of Trump supporters to attend the Stop the Steel 0:08:40.640 --> 0:08:45.240 rally before the assault on the US Capital in Washington. 0:08:45.360 --> 0:08:48.440 I'm Amy Moore as Bloomberg Daybreak, New York. Represent of Hockey, 0:08:48.520 --> 0:08:51.520 Jeffries says former President Trump announcing another run for the 0:08:51.520 --> 0:08:54.599 White House before the mid term elections would be a 0:08:54.640 --> 0:08:58.720 boon for Democrats and a disaster for Republicans. Jefferies is 0:08:58.760 --> 0:09:01.840 the Chairman of the House Democrat to concuss, former Secretary 0:09:01.840 --> 0:09:04.480 of State Henry Kissinger has the words of advice for 0:09:04.559 --> 0:09:08.479 President Biden regarding relations with China. That story from Bloomberg's 0:09:08.559 --> 0:09:12.040 and Baxter. Kissinger, of course, was Richard Nixon State Department 0:09:12.120 --> 0:09:15.240 later during the time of Ping Pong diplomacy with China. 0:09:15.720 --> 0:09:18.800 Kissinger tells Bloomberg's editor in chief John mickel Thwaite at 0:09:18.800 --> 0:09:22.280 the Intelligence Squared event it is important to prevent some 0:09:22.440 --> 0:09:27.040 of China's actions, that it's a permanent determent, that it's 0:09:27.120 --> 0:09:34.920 not something that can be a chief uh endless confrontations. 0:09:35.120 --> 0:09:40.160 Kissinger says today's world needs flexibility. In San Francisco, I'm 0:09:40.160 --> 0:09:43.080 at Baxter Bloomberg Daybreak and former New York City mayor 0:09:43.080 --> 0:09:45.040 built a Blase it was dropping out of the crowd 0:09:45.080 --> 0:09:47.480 of Democratic primary race for the open seat in the 0:09:47.480 --> 0:09:51.280 state's redrawn tenth congressional district. He says, it's clear people 0:09:51.320 --> 0:09:54.840 are looking for another option. Global News twenty four hours 0:09:54.840 --> 0:09:57.280 a day on here and Bloomberg Quick to Power by 0:09:57.280 --> 0:09:59.600 more than twenty seven hundred journalists and analysts and more 0:09:59.640 --> 0:10:02.240 than one who to twenty countries. I'm John Tucker. This 0:10:02.280 --> 0:10:09.280 is Bloomberg, Nathan. All right, John, thank you, coming up 0:10:09.280 --> 0:10:11.040 to five ten on Wall Street. Time for the Bloomberg 0:10:11.040 --> 0:10:13.560 Sports up. Take the morning, John Stash Morning, Nathan. There 0:10:13.559 --> 0:10:15.599 was a long period with the National League dominated the 0:10:15.600 --> 0:10:18.199 Baseball All Star Game one twenty of twenty one back 0:10:18.240 --> 0:10:20.880 in the nineteen sixties and seventies, but lately the American 0:10:20.920 --> 0:10:22.679 wig has at its way. Last night in l at 0:10:22.720 --> 0:10:24.400 the n L jumped in front two ones in the 0:10:24.440 --> 0:10:26.920 first inning, but failed to score again, and the y 0:10:27.160 --> 0:10:31.720 L did damage in the fourth swing. High fly ball, trill, 0:10:31.880 --> 0:10:34.800 forget it way back out to left center failed and 0:10:34.920 --> 0:10:39.160 that is tall. Oh my goodness, he crushed it. John 0:10:39.240 --> 0:10:42.680 Carlos Stanton deep into the pavilion and left center field 0:10:43.080 --> 0:10:46.040 at the American League. With one swing is tied it up. 0:10:46.400 --> 0:10:50.120 It's too two. As Stanton goes KEYSPN had to call 0:10:50.160 --> 0:10:52.959 the Stanton homer travel four hundred and seventy five ft 0:10:52.960 --> 0:10:55.440 longer than any home run hit at Dodgers Stadium this season. 0:10:55.520 --> 0:10:58.480 Next batter was the Twins Byron Buckston. He hit a 0:10:58.520 --> 0:11:00.199 solo shot that was it for the score. The a 0:11:00.360 --> 0:11:02.720 L one three to two has now one on nine 0:11:02.760 --> 0:11:04.560 All Star Games in a row, twenty one of the 0:11:04.600 --> 0:11:07.280 last twenty five. Stanton in l a native, was the 0:11:07.400 --> 0:11:09.400 m v P third Yankee to win Derek Jene in 0:11:09.440 --> 0:11:12.839 two thousand, Marianna Rivera in two thousand thirteen. Aaron Judge 0:11:12.840 --> 0:11:15.840 struck out twice. Jose Trevino had a base hit. Nestor 0:11:15.840 --> 0:11:18.320 Cortez pitched the sixth INNT. Clay Holmes got two out 0:11:18.360 --> 0:11:20.760 of the eighth for the Mets. Jeff McNeil o for 0:11:20.800 --> 0:11:22.640 one also got hit by a pitch. Peter Alonzo was 0:11:22.720 --> 0:11:26.040 up once into a walk. Miles Bridges was Charlotte's leading 0:11:26.080 --> 0:11:27.959 score this past season. It's clearly a free agent. He's 0:11:27.960 --> 0:11:31.280 now facing three felony counts of domestic violence, excused the 0:11:31.280 --> 0:11:33.920 assaulting his girlfriend. Still no no, no word on how 0:11:33.960 --> 0:11:36.959 long the suspension Cleveland quarterback to Shaun Watson will get. 0:11:36.960 --> 0:11:39.320 But there's now a report it's expected to be eight 0:11:39.360 --> 0:11:42.680 games for sexual misconduct. That was earlier reporting it would 0:11:42.679 --> 0:11:46.760 be the entire season. John stash Award Bloomberg Sports. Okay, John, 0:11:46.800 --> 0:11:49.200 thanks right now. SMP futures are up seven points. Stown 0:11:49.280 --> 0:11:52.439 futures up forty seven. NASTAC futures are highed by thirty 0:11:52.480 --> 0:11:55.360 seven points. The ten year treasury is up ten thirty seconds. 0:11:55.440 --> 0:11:57.679 Yield two point nine eight percent, yield on the two 0:11:57.800 --> 0:12:02.440 year three point one eight percent. You're listening to Bloomberg 0:12:02.640 --> 0:12:09.920 Gabri Bloomberg eleventh three O weather heat advisory from noon 0:12:09.960 --> 0:12:13.200 today till eight tomorrow nights. You could see an isolated 0:12:13.200 --> 0:12:17.240 shower storm today with esteer nine degrees right now eighty 0:12:17.600 --> 0:12:24.760 already in Central Park markets, headlines and breaking news twenty 0:12:24.760 --> 0:12:27.640 four hours a day at Bloomberg dot Com, the Bloomberg 0:12:27.640 --> 0:12:31.199 Business Out and at Bloomberg Quicktake, This is a Bloomberg 0:12:31.320 --> 0:12:40.480 Business Flash and I'm Karen Moscow stocks are inching higher 0:12:40.520 --> 0:12:43.400 image speculation that the worst of this year's equity route 0:12:43.440 --> 0:12:46.200 maybe over, even as concern over the potential for a 0:12:46.240 --> 0:12:51.160 global downturn sparked by hawkish central banks lingers. We get 0:12:51.200 --> 0:12:53.480 the market. We get a check on the market's every 0:12:53.520 --> 0:12:56.240 fifteen minutes throughout the trading day. On Bloomberg s and 0:12:56.280 --> 0:12:58.880 P Future is higher this morning, up about eight points down. 0:12:58.880 --> 0:13:01.640 Future is at forty six. Snazdack futures up thirty six. 0:13:02.000 --> 0:13:04.640 The decks in Germany is up four tenths of a percent. 0:13:04.720 --> 0:13:06.920 The tender Your Treasury of nine thirty seconds held two 0:13:06.960 --> 0:13:09.440 point nine eight percent yield on a two year three 0:13:09.440 --> 0:13:12.480 point one eight percent. NIMEX Screwed oil is down one 0:13:12.480 --> 0:13:14.439 point one percent on a dollar nine at a hundred 0:13:14.480 --> 0:13:17.120 three dollars thirteen cents of arrol comics go down to 0:13:17.240 --> 0:13:20.840 ten percent or two dollars eighty cents at seventeen thirty announced. 0:13:21.160 --> 0:13:23.600 The euro one point two four six against the dollar. 0:13:23.640 --> 0:13:26.200 British found one point to zero one nine and again 0:13:26.280 --> 0:13:28.960 one thirty eight point one four and Bitcoin this morning 0:13:29.000 --> 0:13:31.800 it's higher, up nine tenths percent at twenty three thousand, 0:13:31.880 --> 0:13:35.360 five eighteen dollars. That's a Bloomberg Business Flash. Now here's 0:13:35.400 --> 0:13:38.160 John Tucker with more on what's going on around the world. John, 0:13:38.559 --> 0:13:41.720 Good morning, Karen. President Biden sent to announced executive action 0:13:41.760 --> 0:13:46.120 to confront climate change. Russian President Latimer Putin signaling Europe 0:13:46.120 --> 0:13:49.240 will start getting gas again through a key pipeline. And 0:13:49.360 --> 0:13:52.640 Dan Cox wins the Republican primary and the race to 0:13:52.679 --> 0:13:55.600 replace Governor Larry Hogan to Maryland, a race that became 0:13:55.640 --> 0:13:59.640 a proxy clash between former President Trump and Hogan. And 0:13:59.800 --> 0:14:02.720 it's sports. The Yankees Gin Carlos Stanton named the All 0:14:02.800 --> 0:14:06.160 Star Game m v P of the American League Beach 0:14:06.320 --> 0:14:08.559 the National League Global. It was twenty four hours a 0:14:08.600 --> 0:14:11.240 day on Aaron on Bloomberg Quicktake. We're powered by more 0:14:11.280 --> 0:14:13.760 than twenties of one hundre journalist and analysts in more 0:14:13.800 --> 0:14:16.839 than one hundred twenty countries. I'm John Sucker, and this 0:14:17.200 --> 0:14:20.280 is Bloomberg. Nathan John, Thank you. It is five nineteen 0:14:20.320 --> 0:14:23.240 on Wall Street Live from the Bloomberg Interactor Broker Studios. 0:14:23.360 --> 0:14:26.880 This is Bloomberg Daybreak and we are watching for President 0:14:26.920 --> 0:14:30.720 Biden to take executive action to tackle climate change. He 0:14:30.840 --> 0:14:33.080 is expected to do so later today in a visit 0:14:33.120 --> 0:14:36.800 to Somerset, Massachusetts, where we find Bloomberg's and Moss Do 0:14:37.040 --> 0:14:40.320 this morning, joining us live ahead of the President's announcement 0:14:40.320 --> 0:14:42.720 in Somerset, and good morning. Great to have you with 0:14:42.800 --> 0:14:45.600 us this morning. So what do we know so far 0:14:45.920 --> 0:14:48.240 about what the President plans to say where you are 0:14:48.280 --> 0:14:52.480 this morning? Well, Nathan, the President plans to talk about 0:14:52.560 --> 0:14:56.760 climate crisis, how a clean energy future might create jobs, 0:14:56.760 --> 0:14:59.920 lower costs for families. This is gas prices remain, how 0:15:00.200 --> 0:15:03.400 he's expected to announce some support in terms of heating 0:15:03.440 --> 0:15:07.840 for low income families, and his support for offshore wind. Now, 0:15:08.240 --> 0:15:10.720 the sight he is coming to in Somerset is far 0:15:10.880 --> 0:15:14.800 from the idyllic New England beachfront community you might be picturing. 0:15:15.440 --> 0:15:18.080 This is a small town just next to Rhode Island 0:15:18.400 --> 0:15:21.960 and they have an enormous vacant lot by the ocean 0:15:22.320 --> 0:15:25.400 called Brayton Point, which was a power plant plant. It 0:15:25.440 --> 0:15:29.320 was a coal power plant up until when it was 0:15:29.360 --> 0:15:33.240 completely demolished, and it's now three D seven acres of 0:15:33.360 --> 0:15:36.440 just rubble. Now, Biden's going to come and visit this, 0:15:36.960 --> 0:15:41.120 and there is in the works, but far from ready, 0:15:41.200 --> 0:15:44.720 a manufacturing facility for offshore wind here as there are 0:15:44.840 --> 0:15:48.360 three projects in Massachusetts that are under review right now. 0:15:48.640 --> 0:15:54.000 So interesting backdrop to sort of showcase the energy transition 0:15:54.080 --> 0:15:56.680 that the President says he would like to see here. 0:15:56.880 --> 0:15:59.320 But I guess a lot of the reason why he's 0:15:59.360 --> 0:16:02.760 making this of and is because he's had trouble getting 0:16:02.840 --> 0:16:06.680 his clean energy spending agenda moving forward on Capitol Hill. 0:16:08.440 --> 0:16:11.280 That's exactly right, Nathan. He is under a pressure to 0:16:11.360 --> 0:16:15.280 declare a climate emergency after his agenda stalled in the 0:16:15.320 --> 0:16:20.280 Senate again last week. Now, this is largely impart Democratic 0:16:20.280 --> 0:16:23.280 West Virginia Senator Joe Manchin saying he would not support 0:16:23.320 --> 0:16:28.680 additional measures to combat climate change. Now, the climate emergency declaration. 0:16:29.400 --> 0:16:32.680 There was talk that Biden would make that today in Massachusetts, 0:16:32.760 --> 0:16:35.080 but the White House has said he will not. It 0:16:35.120 --> 0:16:38.400 would empower him to be able to do more administratively 0:16:38.560 --> 0:16:41.920 to curb emissions. But there are a lot of politicians 0:16:41.920 --> 0:16:44.280 who say it's not the right tactic, that declaring a 0:16:44.360 --> 0:16:47.120 national emergency is not the right idea. Um, no one's 0:16:47.160 --> 0:16:49.840 ever done that before. No president has ever done that before, 0:16:50.240 --> 0:16:52.960 not in terms of a climate emergency, I guess. But 0:16:53.040 --> 0:16:57.520 we have seen to be fair executive actions taken many 0:16:57.560 --> 0:17:00.120 times on other issues in the past. So what's the 0:17:00.160 --> 0:17:02.760 thinking at the White House about why the President shouldn't 0:17:02.800 --> 0:17:06.359 make that step, at least not at this point. Well, 0:17:06.440 --> 0:17:08.720 that's a really good question, Nathan. I mean, you're right, 0:17:09.560 --> 0:17:13.920 there have been dozens of national emergencies declared by presidents 0:17:13.960 --> 0:17:18.160 since the seventies, but never for the purpose of climate change. UM. 0:17:18.200 --> 0:17:21.399 I think that there's still hoping, perhaps hopeful that Mansion 0:17:21.400 --> 0:17:24.560 will change his mind. Um. But there is a lot 0:17:24.600 --> 0:17:27.560 of pressure also coming from Senator Elizabeth Warren Um, the 0:17:27.600 --> 0:17:32.200 Democrat from Massachusetts. She's also been calling for this national emergency. Um. 0:17:32.200 --> 0:17:35.080 It's not clear why the White House is stalling on 0:17:35.160 --> 0:17:38.320 this if they're actually going to do it. And it's 0:17:38.400 --> 0:17:41.760 interesting that the President is making this announcement at a 0:17:41.800 --> 0:17:45.520 time when we are experiencing a pretty significant heat wave. 0:17:45.600 --> 0:17:48.320 I mean, it's hot here in Washington, d C. And 0:17:48.359 --> 0:17:51.679 in New York City, and no it's getting quite warm 0:17:51.840 --> 0:17:55.720 in Boston as well. It's going to bring even more 0:17:55.760 --> 0:17:58.200 of a fine point on the issue for the president. 0:17:58.240 --> 0:18:02.000 I would imagine, Yes, that's exactly right. We're in the 0:18:02.000 --> 0:18:04.240 middle of a major heatwave here. It's been in the 0:18:04.320 --> 0:18:06.960 nineties this week. I know that's not much compared to 0:18:07.000 --> 0:18:10.199 the rest of the country, but in Massachusetts that's pretty hot. 0:18:10.600 --> 0:18:14.560 And UM, I think that that again creates this visual 0:18:14.600 --> 0:18:18.160 backdrop for him. You know, you've got part of Biden's 0:18:18.200 --> 0:18:21.680 family on Nantucket right now, his wife Jill and UM 0:18:21.800 --> 0:18:24.359 other relatives, and then he's going to what really is 0:18:24.359 --> 0:18:28.320 sort of an apocalyptic looking stretch of land that is 0:18:28.560 --> 0:18:33.840 very slowly transitioning to renewable energy, and UM hoping that 0:18:33.880 --> 0:18:37.320 these developers do indeed follow through with their plans to 0:18:37.400 --> 0:18:40.680 create these offshore wind cables at this site and then 0:18:40.720 --> 0:18:44.160 put up these three offshore wind farms off the coast 0:18:44.160 --> 0:18:46.760 of Massachusetts. There's already one off the coast of Rhode Island, 0:18:46.760 --> 0:18:50.040 I should mention off of Block Island, UM. And so 0:18:50.640 --> 0:18:54.120 the deep water port, the hot weather, it's all very 0:18:54.240 --> 0:18:58.120 visual opportunity for Biden to show action when people really 0:18:58.160 --> 0:19:01.720 are still very much struggling with prices and and air 0:19:01.720 --> 0:19:04.399 conditioning prices at this point. Yes, certainly are and it's 0:19:04.440 --> 0:19:06.560 gonna be interesting to hear as well what the President 0:19:06.600 --> 0:19:09.000 has to say in terms of the kinds of projects 0:19:09.000 --> 0:19:12.240 that you're alluding to that could benefit from the announcement 0:19:12.280 --> 0:19:14.879 that we are expecting later today from the President that 0:19:14.920 --> 0:19:18.399 he will be taking executive action to tackle climate change, 0:19:18.480 --> 0:19:21.400 and as the White House terms it, to create clean 0:19:21.480 --> 0:19:24.000 energy jobs as part of the action that the President 0:19:24.080 --> 0:19:27.320 is expected to announce. And mos do Bloomberg News correspondent 0:19:27.359 --> 0:19:30.960 with us this morning from Somerset, Massachusetts, and our listeners 0:19:30.960 --> 0:19:34.119 in Boston can catch live coverage from and of the 0:19:34.119 --> 0:19:37.120 President's announcement. It's coming up on Bloomberg based State Business 0:19:37.160 --> 0:19:39.320 or three to six pm on Bloomberg one oh six 0:19:39.359 --> 0:19:43.920 one Boston, Newburyport and HD two. Looking ahead to the 0:19:43.960 --> 0:19:46.800 market open on Wall Street, SMP futures are up six points, 0:19:46.800 --> 0:19:49.840 Staff futures up thirty nine, Nasdaq futures higher by thirty 0:19:49.880 --> 0:19:53.199 one points, adding to yesterday's rally. Will tell you more 0:19:53.240 --> 0:19:55.840 about that just ahead, the biggest rally in three weeks 0:19:55.840 --> 0:19:59.000 for stocks actually, and we continue to watch Netflix after 0:19:59.080 --> 0:20:02.359 it could have been worse subscriber loss. Top stories of 0:20:02.400 --> 0:20:08.360 the morning just ahead on Bloomberg Daybreak Bloomberg eleven three 0:20:08.359 --> 0:20:11.760 oh weather heat advisory from noon today till eight tomorrow night, 0:20:12.000 --> 0:20:14.479 and we're not expecting much of a break god Friday 0:20:14.880 --> 0:20:16.200 highs for the rest of the week in the load 0:20:16.240 --> 0:20:26.320 of mid nineties. Right now eight in Central Park, broadcasting 0:20:26.359 --> 0:20:30.080 live from the Bloomberg Interactive Brokery Studio in New York. 0:20:30.200 --> 0:20:34.040 Bloomberg E Living Freedom to Washington, d C, Bloomberg on 0:20:34.280 --> 0:20:37.520 to Boston, Bloomberg one O six one to San Francisco, 0:20:37.600 --> 0:20:40.800 Bloomberg nong sixteen to the country, Sirius XM Chad A 0:20:40.880 --> 0:20:44.200 one nineteen and around the globe the Bloomberg business in 0:20:44.280 --> 0:20:54.000 Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five 0:20:54.040 --> 0:20:56.520 thirty on Wall Street. Good morning. I'm Nathan Hagar and 0:20:56.560 --> 0:20:59.679 I'm Karen Moscow, and we are just about four hours 0:20:59.720 --> 0:21:02.040 away from the open of US trading. Let's get you 0:21:02.119 --> 0:21:03.520 up to date on the news you need to know. 0:21:03.600 --> 0:21:06.879 At this hour, US futures are adding to yesterday's gains 0:21:06.920 --> 0:21:09.720 on Wall Street, which were the biggest in three weeks. Still, 0:21:09.840 --> 0:21:13.560 Sherry Paul, senior portfolio manager with Morgan Stanley Private Wealth, 0:21:13.600 --> 0:21:17.000 says the markets remain uncertain. Clients I think are feeling 0:21:17.119 --> 0:21:20.359 very data overwhelmed, and the greatest threat to portfolio returns 0:21:20.440 --> 0:21:23.080 is in decision. So right now, what we're advising clients 0:21:23.119 --> 0:21:24.919 is to go right down the middle of this market. 0:21:25.000 --> 0:21:27.960 Do you want to plan for inflation being structural and 0:21:28.040 --> 0:21:31.000 owned sectors of the market that actually benefit from the 0:21:31.040 --> 0:21:33.919 reflationary stories. So that would put you in financials and 0:21:34.000 --> 0:21:37.440 energy stocks. And Sherry Paul with Morgan Stanley Private Wealth 0:21:37.480 --> 0:21:41.240 says investors should remain active despite volatility. When we get 0:21:41.240 --> 0:21:43.920 more earnings today Karena, with seventeen companies in the SMP 0:21:44.000 --> 0:21:47.439 five reporting Tesla headlines the list, investors will look for 0:21:47.440 --> 0:21:49.720 how its bottom line is affected by lockdowns in China 0:21:49.760 --> 0:21:53.280 and the crypto plunge. Tesla is heavily invested in bitcoin 0:21:53.640 --> 0:21:55.959 al Turning to Netflix now Nathan shares her up more 0:21:56.000 --> 0:21:59.600 than seven percent and early trading after it lost less 0:21:59.760 --> 0:22:03.960 subscribers and initially feared and gave Ragnatha uncovers Netflix for 0:22:03.960 --> 0:22:07.639 Bloomberg Intelligence, there's really not a whole lot to cheer about. 0:22:07.920 --> 0:22:10.359 What the market is really looking for at this point 0:22:10.359 --> 0:22:13.159 of time is really some clarity, not just on the 0:22:13.200 --> 0:22:16.439 subscriber growth trajectory, but also on other metrics, so you know, 0:22:16.480 --> 0:22:18.399 how are they going to drive our poo? How are 0:22:18.440 --> 0:22:21.440 they going to drive margins? So there's pressure all around, 0:22:21.880 --> 0:22:25.200 and gave the Raganathan at Bloomberg Intelligence as Netflix still 0:22:25.200 --> 0:22:29.320 has positives working in its favor, including its size and reach. Okaren, 0:22:29.359 --> 0:22:32.359