1 00:00:01,440 --> 00:00:04,960 Speaker 1: By from the Bloomberg Interactive Brooker Studios is Bloomberg day 2 00:00:05,000 --> 00:00:08,720 Speaker 1: Break for Thursday, July fourteen two Coming up this hour, 3 00:00:09,039 --> 00:00:12,360 Speaker 1: Speculation grows about a one percent rate hike by the Fed. 4 00:00:12,440 --> 00:00:15,720 Speaker 1: This month. Wall Street braces for another report on inflation. 5 00:00:16,079 --> 00:00:19,400 Speaker 1: Bank earnings began with JP Morgan Chase and Morgan Stanley 6 00:00:19,440 --> 00:00:23,200 Speaker 1: recording this morning, and President Biden boost Israel's military as 7 00:00:23,239 --> 00:00:26,680 Speaker 1: his Middle Eastern trip continues. Two more shark attacks took 8 00:00:26,680 --> 00:00:29,640 Speaker 1: place within hours off Long Island, plus the New York 9 00:00:29,640 --> 00:00:33,840 Speaker 1: City Council demand's Mayor Adams restore school budgets, Michael barn 10 00:00:33,960 --> 00:00:37,120 Speaker 1: More Ahead, johns fatchtowering sports. The Yankees came for barring 11 00:00:37,200 --> 00:00:39,440 Speaker 1: the feet, the Red the Mets one in Atlanta, the 12 00:00:39,479 --> 00:00:45,680 Speaker 1: Open Championship Go Fuderway in Scotland. That's All's trendy head 13 00:00:45,720 --> 00:00:49,280 Speaker 1: on Bloomberg day Break on Bloomberg eleven three, on New York, 14 00:00:49,479 --> 00:00:54,160 Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 15 00:00:54,440 --> 00:00:59,160 Speaker 1: Bloomberg nine sixties and Francisco Syrius XM one nineteen and 16 00:00:59,240 --> 00:01:02,319 Speaker 1: around the world on Bloomberg Radio dot com and via 17 00:01:02,400 --> 00:01:09,280 Speaker 1: the Bloomberg Business app. Good Morning, I'm Nathan Hagar and 18 00:01:09,319 --> 00:01:11,880 Speaker 1: I'm Karen Moscow and US DOT in next futures are 19 00:01:11,880 --> 00:01:14,200 Speaker 1: following this morning. We're coming up to six oh one 20 00:01:14,240 --> 00:01:16,280 Speaker 1: on Wall Street, and we check the markets every fifteen 21 00:01:16,280 --> 00:01:19,319 Speaker 1: minutes throughout the trading day. On Bloomberg. Right now, SNP 22 00:01:19,480 --> 00:01:22,160 Speaker 1: futures are down thirty seven points down, futures down two 23 00:01:22,560 --> 00:01:26,160 Speaker 1: eighty and NASDAG futures down. The decks in Germany is 24 00:01:26,200 --> 00:01:28,760 Speaker 1: down six tenths of a percent. Ten year Treasury down 25 00:01:28,840 --> 00:01:31,640 Speaker 1: eight thirty seconds, held two point nine six percent. That 26 00:01:31,720 --> 00:01:34,080 Speaker 1: yield on the two year three point one nine percent. 27 00:01:34,560 --> 00:01:36,840 Speaker 1: Nine X screwed oil is down two point four percent, 28 00:01:36,880 --> 00:01:39,200 Speaker 1: down two dollars thirty seven cents at ninety three dollars, 29 00:01:39,240 --> 00:01:41,800 Speaker 1: ninety three cents of barrel. COMEX gold is down one 30 00:01:41,800 --> 00:01:44,119 Speaker 1: in a quarter percent, or twenty one dollar seventy cents 31 00:01:44,120 --> 00:01:47,720 Speaker 1: at seventeen eighty announced, and the euro one point zero 32 00:01:47,840 --> 00:01:50,680 Speaker 1: zero four or five against the dollar. Nathan, thank you, Karen. 33 00:01:50,760 --> 00:01:54,680 Speaker 1: Reaction continues to pour into yesterday's hot reading on inflation. 34 00:01:54,800 --> 00:01:57,240 Speaker 1: The dollar is trading at a twenty four year high 35 00:01:57,280 --> 00:02:00,920 Speaker 1: against the end. Speculation is growing that the Fed's next 36 00:02:01,000 --> 00:02:03,960 Speaker 1: move maybe a one percent rate hike rather than a 37 00:02:04,040 --> 00:02:07,120 Speaker 1: seventy five basis point increase. We caught up with Cleveland 38 00:02:07,200 --> 00:02:11,520 Speaker 1: FED President Laretta Mester. Certainly, the inflation report suggests that 39 00:02:12,000 --> 00:02:15,040 Speaker 1: there's no reason to say that a smaller rate increase 40 00:02:15,080 --> 00:02:17,400 Speaker 1: than we did last time, right because nothing moved in 41 00:02:17,440 --> 00:02:20,880 Speaker 1: that direction. Cleveland FED President Laretta Mester made those comments 42 00:02:20,919 --> 00:02:24,160 Speaker 1: in an interview with Bloomberg's Kathleen Hayes Well. Nathan Mester 43 00:02:24,280 --> 00:02:26,800 Speaker 1: is not the only Fed official hinting of higher rates 44 00:02:26,840 --> 00:02:30,440 Speaker 1: to come. Atlanta Fed President Raphael Bostick says, quote, everything 45 00:02:30,600 --> 00:02:33,160 Speaker 1: is in play for policy action this month. To get 46 00:02:33,200 --> 00:02:36,480 Speaker 1: more from Bloomberg Charlie Pellett. His comment came after data 47 00:02:36,520 --> 00:02:40,680 Speaker 1: showed that US inflation accelerated again to a fresh four 48 00:02:40,840 --> 00:02:45,160 Speaker 1: decade high last month. Speaking to reporters in St. Petersburg, Florida, 49 00:02:45,520 --> 00:02:48,800 Speaker 1: Bostick said, the top line number is a source of 50 00:02:48,880 --> 00:02:52,560 Speaker 1: concern and everything is in play. The comments add fuel 51 00:02:52,600 --> 00:02:54,560 Speaker 1: to be so the Fed is more likely than not 52 00:02:54,960 --> 00:02:58,839 Speaker 1: to raise interest rates by one hundred basis points when 53 00:02:58,840 --> 00:03:02,400 Speaker 1: it meets later the month in New York. Charlie Pellocks 54 00:03:02,440 --> 00:03:05,360 Speaker 1: Bloomberg Daybreak, Okay, Charlie thank you, and coming up today, 55 00:03:05,400 --> 00:03:07,680 Speaker 1: we get another reading on inflation with the release of 56 00:03:07,680 --> 00:03:10,480 Speaker 1: the Producer Price Index for June. Here with the preview 57 00:03:10,560 --> 00:03:13,560 Speaker 1: is Bloomberg's Michael McKee. Though it would seem logical, the 58 00:03:13,600 --> 00:03:17,000 Speaker 1: producer price index actually doesn't really lead moves of the 59 00:03:17,040 --> 00:03:19,679 Speaker 1: consumer price index, and that may be a good thing. 60 00:03:19,919 --> 00:03:23,360 Speaker 1: Unlike consumer prices, producer prices have been falling a little 61 00:03:23,360 --> 00:03:26,440 Speaker 1: bit after reaching a peak in March. The economist consensus 62 00:03:26,440 --> 00:03:29,600 Speaker 1: forecast is that continued to come down in June. But 63 00:03:29,760 --> 00:03:32,400 Speaker 1: CPI surprised to the upside last month, and there's a 64 00:03:32,480 --> 00:03:35,440 Speaker 1: risk at least headline PPI could do the same. Oil 65 00:03:35,480 --> 00:03:38,200 Speaker 1: and gas a lead prices rose as did other commodities, 66 00:03:38,360 --> 00:03:41,120 Speaker 1: pushing up the cost of goods. The unanswered question is 67 00:03:41,200 --> 00:03:44,960 Speaker 1: how service prices have behaved. Watched the Trade Services index 68 00:03:45,000 --> 00:03:47,800 Speaker 1: in the pp I. It's something of a proxy for margins. 69 00:03:47,880 --> 00:03:51,400 Speaker 1: As earning season gets underway in the US, Michael McKee, 70 00:03:51,440 --> 00:03:54,520 Speaker 1: Bloomberg daybreak. All right, Michael, thank you, and speaking of earnings, 71 00:03:54,520 --> 00:03:56,960 Speaker 1: this season gets started this morning and earnest when big 72 00:03:56,960 --> 00:03:59,200 Speaker 1: banks you're poor, And we get the details from Bloomberg. 73 00:03:59,240 --> 00:04:03,800 Speaker 1: A Global Finds Correspondencnally basic, JP Morrigan and Morgan Stanley 74 00:04:03,880 --> 00:04:07,560 Speaker 1: kickoff earnings for the biggest US banks, and recession fears 75 00:04:07,600 --> 00:04:10,840 Speaker 1: are growing across the economy. The question is our provisions 76 00:04:10,880 --> 00:04:13,880 Speaker 1: for loan losses going to build? Especially at JP Morgan 77 00:04:14,120 --> 00:04:16,919 Speaker 1: where net interest income is also rising due to higher 78 00:04:16,960 --> 00:04:20,040 Speaker 1: interest rates. The question is how much will that offset 79 00:04:20,080 --> 00:04:23,960 Speaker 1: any future pains from any potential recession ahead. I'm Shnei 80 00:04:24,040 --> 00:04:27,800 Speaker 1: Bask Bloomberg Daybreak occastionally thanks. As recession fears grow on 81 00:04:27,839 --> 00:04:30,760 Speaker 1: Wall Street, one top tech executive says the industry will 82 00:04:30,760 --> 00:04:32,920 Speaker 1: be able to weather the storm. Let's get that live 83 00:04:32,920 --> 00:04:35,679 Speaker 1: from Bloomberg. Jnading on Good Morning, Nita, Good Morning Nathan. 84 00:04:35,800 --> 00:04:40,320 Speaker 1: IBM CEO Arvin Christna says he believes business technology spending 85 00:04:40,320 --> 00:04:44,760 Speaker 1: will remain robust above GDP growth, including in Europe, and 86 00:04:44,839 --> 00:04:47,360 Speaker 1: this is even after others in the industry have been 87 00:04:47,440 --> 00:04:51,120 Speaker 1: pest pessimistic in the face of a potential US recession 88 00:04:51,400 --> 00:04:55,240 Speaker 1: and resulting slower growth. When you look at supply chain inflation, 89 00:04:55,440 --> 00:04:59,760 Speaker 1: libo demographics, interest rates. Technology offers you away to scale 90 00:05:00,000 --> 00:05:06,120 Speaker 1: without necessary increasing costs that are linear. IBM CEO Arvin 91 00:05:06,240 --> 00:05:10,520 Speaker 1: Krishna is less optimistic about supply chain problems. He says 92 00:05:10,560 --> 00:05:13,359 Speaker 1: they're a real fundamental issue and will go on for 93 00:05:13,400 --> 00:05:16,240 Speaker 1: a couple more years. Live in New York. I'm really 94 00:05:16,240 --> 00:05:18,599 Speaker 1: need a Young Bloomberg daybreak. I real need to thank you. 95 00:05:18,600 --> 00:05:21,279 Speaker 1: Are turning to politics now. President Biden will sign know 96 00:05:21,320 --> 00:05:24,680 Speaker 1: like continuing US commitment to Israel's defense. As part of 97 00:05:24,720 --> 00:05:26,880 Speaker 1: his trip through the Middle East, the President signs a 98 00:05:26,960 --> 00:05:30,560 Speaker 1: joint declaration with Israel's new Prime minister, extending an agreement 99 00:05:30,600 --> 00:05:34,080 Speaker 1: that provides billions of dollars to the country's military. Tomorrow, 100 00:05:34,120 --> 00:05:38,600 Speaker 1: Biden heads to Saudi Arabia. Democratic Congresswoman Abigail Spenberger says 101 00:05:38,839 --> 00:05:41,159 Speaker 1: he'll need to project American values when he meets with 102 00:05:41,240 --> 00:05:44,520 Speaker 1: Crown Prince Mohammed been salmoned. He must raise the issue 103 00:05:44,520 --> 00:05:49,640 Speaker 1: of Jamal Kasos murder. He must continue to ensure that 104 00:05:49,680 --> 00:05:53,880 Speaker 1: we have strong expectations of what our Saudi partners are 105 00:05:54,080 --> 00:05:56,280 Speaker 1: or are not bringing to the table, whether they are 106 00:05:56,480 --> 00:06:00,600 Speaker 1: or are not um meeting the expectations we have in 107 00:06:00,680 --> 00:06:06,880 Speaker 1: terms of the values that they u are abiding. Congresswoman 108 00:06:06,920 --> 00:06:10,640 Speaker 1: Abigail Spenberger of Virginia spoke with Our Washington corresponded Joe 109 00:06:10,680 --> 00:06:13,479 Speaker 1: Matthew on Bloomberg Sound on. Catch the program weekdays at 110 00:06:13,520 --> 00:06:16,680 Speaker 1: five pm Eastern on Bloomberg Radio. Their new developments in 111 00:06:16,720 --> 00:06:19,600 Speaker 1: the pandemic The Battle against the Pandemic. This morning, Karen, 112 00:06:19,600 --> 00:06:22,640 Speaker 1: the nation's top doctor, says all Macron b A five 113 00:06:23,080 --> 00:06:25,880 Speaker 1: is getting more worrisome. Bloomberg said, Baxter has the story. 114 00:06:26,120 --> 00:06:29,800 Speaker 1: COVID Response Coordinator Doctor Ashisha Jaw says it's something to 115 00:06:30,120 --> 00:06:33,520 Speaker 1: very carefully watch. It is certainly the most immunovative. What 116 00:06:33,640 --> 00:06:37,080 Speaker 1: we're seeing as people who are previously infected getting reinfections 117 00:06:37,080 --> 00:06:39,680 Speaker 1: at high rates, people who got vaccinated let's say last year, 118 00:06:40,000 --> 00:06:42,920 Speaker 1: having a ton of breakthrough infections. So something that we're 119 00:06:43,040 --> 00:06:45,520 Speaker 1: you know, obviously paying very close attention to. Yeah. Dr 120 00:06:45,640 --> 00:06:48,720 Speaker 1: Josh has mitigation tools like smart use of masks, and 121 00:06:49,000 --> 00:06:53,039 Speaker 1: of course vaccinations is important. He says, everybody over fifty 122 00:06:53,160 --> 00:06:56,680 Speaker 1: needs a second booster. In San Francisco, I'm at Baxter 123 00:06:56,720 --> 00:06:59,919 Speaker 1: Bloomberg Daybreak and thanks. And despite COVID concerns and current 124 00:07:00,000 --> 00:07:02,920 Speaker 1: economic conditions, back to school shoppers are expected to spend 125 00:07:02,920 --> 00:07:05,480 Speaker 1: a record amount this year. According to a survey by 126 00:07:05,520 --> 00:07:08,240 Speaker 1: deloittch sales for this season are expected to total thirty 127 00:07:08,320 --> 00:07:11,480 Speaker 1: four point four billion dollars. That breaks down to six 128 00:07:11,600 --> 00:07:14,880 Speaker 1: hundred sixty one dollar per student, an increase of eight 129 00:07:14,880 --> 00:07:18,040 Speaker 1: percent from a year earlier. Your local headlines straight ahead, 130 00:07:18,080 --> 00:07:24,880 Speaker 1: This is Bloomberg. Thanks Terence six o seven on Wall Street, 131 00:07:24,920 --> 00:07:27,720 Speaker 1: seventy two degrees in Central Park and better news now 132 00:07:27,720 --> 00:07:30,000 Speaker 1: for rail riders. Let's get that and more on what's 133 00:07:30,000 --> 00:07:31,560 Speaker 1: going on in New York and around the world with 134 00:07:31,600 --> 00:07:34,320 Speaker 1: Bloomberg's Michael Barr. Michael, thank you very much, Nathan. Rail 135 00:07:34,360 --> 00:07:38,360 Speaker 1: communities are saying hallelujah. New Jersey Transit service has resumed 136 00:07:38,360 --> 00:07:40,840 Speaker 1: in and out of New York City. Rail service was 137 00:07:40,880 --> 00:07:43,600 Speaker 1: suspended into and out of Penn Station in New York 138 00:07:43,920 --> 00:07:48,120 Speaker 1: due jamtrack overhead wire issues. New Jersey Transit tickets and 139 00:07:48,280 --> 00:07:52,000 Speaker 1: passes no longer being cross hunored by a path. It 140 00:07:52,160 --> 00:07:54,679 Speaker 1: is the third shark attack in ten days on Long Island. 141 00:07:55,360 --> 00:07:57,880 Speaker 1: Year old man was attacked by a shark yesterday evening, 142 00:07:58,200 --> 00:08:01,360 Speaker 1: less than twelve hours after a little border was attacked 143 00:08:01,360 --> 00:08:04,600 Speaker 1: at a nearby beach that morning. According to the Suffolk 144 00:08:04,600 --> 00:08:08,200 Speaker 1: County Police, the man was standing waist deep in the 145 00:08:08,200 --> 00:08:11,160 Speaker 1: water at Seaview Beach on Fire Island when he was 146 00:08:11,200 --> 00:08:14,960 Speaker 1: bitten on his wrist and leg. Around six pm earlier, 147 00:08:15,000 --> 00:08:16,680 Speaker 1: a forty one year old man was bitten by a 148 00:08:16,680 --> 00:08:20,120 Speaker 1: shark while palle boarding at Smith Point Beach. Both suffered 149 00:08:20,160 --> 00:08:24,360 Speaker 1: non life threatening injuries. Suffolk County Executive Steve blog I 150 00:08:24,400 --> 00:08:29,760 Speaker 1: think it is an indication, however, that what we're looking 151 00:08:29,800 --> 00:08:33,720 Speaker 1: at is uh something of a new normal. Suffolk County 152 00:08:33,760 --> 00:08:36,760 Speaker 1: Executive Steve Bloone says the tiger sharks are closer to 153 00:08:36,840 --> 00:08:40,280 Speaker 1: shore than they've been. New York City Council members are 154 00:08:40,320 --> 00:08:43,160 Speaker 1: calling on Mayor Eric Adams and the Department of Education 155 00:08:43,280 --> 00:08:46,840 Speaker 1: not to exercise budget cuts and a joint letter council 156 00:08:46,880 --> 00:08:49,400 Speaker 1: members say he will result in the city spending less 157 00:08:49,400 --> 00:08:52,600 Speaker 1: on each child. Last month, the city Council signed off 158 00:08:52,640 --> 00:08:55,600 Speaker 1: on the two fifteen million dollar budget cut and adams 159 00:08:55,679 --> 00:09:00,360 Speaker 1: twenty three city budget, But now council members say that 160 00:09:00,440 --> 00:09:03,400 Speaker 1: the Adams administration misled them by saying the cuts would 161 00:09:03,400 --> 00:09:07,040 Speaker 1: be fully accounted for by declining enrollment. A new mental 162 00:09:07,080 --> 00:09:09,559 Speaker 1: health clinic in the Bronx just opened its doors. Mayor 163 00:09:09,640 --> 00:09:12,400 Speaker 1: Eric Adams says the short term treatment center will provide 164 00:09:12,400 --> 00:09:16,600 Speaker 1: New Yorkers with mental health and substance abuse issues immediate 165 00:09:16,600 --> 00:09:21,800 Speaker 1: access to Service. We unfairly treated the New York City 166 00:09:21,840 --> 00:09:25,080 Speaker 1: Police Department in this city in so many ways. We 167 00:09:25,200 --> 00:09:28,880 Speaker 1: called on them to do everything. We called on them 168 00:09:28,920 --> 00:09:32,840 Speaker 1: when someone had a gun. We called on them, when 169 00:09:32,920 --> 00:09:35,400 Speaker 1: someone had a cat up the tree. We called on 170 00:09:35,440 --> 00:09:37,640 Speaker 1: them when someone was going through a mental health crisis. 171 00:09:37,640 --> 00:09:41,400 Speaker 1: We called on them for everything, and didn't realize that 172 00:09:41,440 --> 00:09:44,360 Speaker 1: we had other agencies that we should have coordinated with. 173 00:09:44,640 --> 00:09:48,520 Speaker 1: Mayor Adams. Manhattan apartment rants reached another record high in June. 174 00:09:48,520 --> 00:09:52,600 Speaker 1: According to appraiser Miller Samuel and brokerage Douglas Element real Estate. 175 00:09:52,640 --> 00:09:55,079 Speaker 1: New leases were signed last month. At the Media and 176 00:09:55,320 --> 00:09:58,960 Speaker 1: A four thousand and fifty dollars Global News twenty four 177 00:09:59,000 --> 00:10:01,240 Speaker 1: hours a day on a R and on Bloomberg Quick Take, 178 00:10:01,240 --> 00:10:03,760 Speaker 1: powered by more than twenty seven hundred journalists analysts in 179 00:10:03,800 --> 00:10:05,760 Speaker 1: more than a d twenty countries. On Michael Barr, This 180 00:10:05,760 --> 00:10:12,720 Speaker 1: is Bloomberg, Nathan, Thanks Michael, tuned up to six ten 181 00:10:12,760 --> 00:10:14,760 Speaker 1: on Wall Street Time for the Bloomberg Sports Update with 182 00:10:14,880 --> 00:10:17,240 Speaker 1: John stash Ower. All right, Nathan, Yankees trying to avoid 183 00:10:17,280 --> 00:10:19,319 Speaker 1: their first four game losing streak of the season. The 184 00:10:19,520 --> 00:10:22,800 Speaker 1: night did not begin well. Lauis Sevareno injured most of 185 00:10:22,800 --> 00:10:25,240 Speaker 1: the last three seasons. He's been so good this year. 186 00:10:25,240 --> 00:10:27,160 Speaker 1: But he served up three home runs in the second 187 00:10:27,160 --> 00:10:29,800 Speaker 1: and then and while taking his warm up tosses in 188 00:10:29,800 --> 00:10:32,600 Speaker 1: the third, departed headed for an m r in his shoulder. 189 00:10:32,640 --> 00:10:35,840 Speaker 1: Yanks trailed the Reds four. Nothing came back. Isaiah kinnerd 190 00:10:35,840 --> 00:10:38,040 Speaker 1: fell left at three run double. They led five to four. 191 00:10:38,080 --> 00:10:41,280 Speaker 1: They fell behind again. John Carlos Stanton game tying home 192 00:10:41,360 --> 00:10:44,200 Speaker 1: run eighth inning, Yanks scored in the tent for another 193 00:10:44,240 --> 00:10:46,640 Speaker 1: walk off win, seven to six. Mets used the long 194 00:10:46,679 --> 00:10:49,960 Speaker 1: ball in Atlanta, delivers and Lindor rips it deep in 195 00:10:49,960 --> 00:10:53,440 Speaker 1: the air right field. Kunia turns around, watches it fly. 196 00:10:53,840 --> 00:10:57,360 Speaker 1: That one's way outta here. But three run blass for 197 00:10:57,480 --> 00:11:01,800 Speaker 1: Francisco Windoor. He comes through in the top of the 198 00:11:01,920 --> 00:11:05,400 Speaker 1: third inning and he extends the Nets lead to four nothing. 199 00:11:05,760 --> 00:11:08,719 Speaker 1: CBS solo shots from Mark Canada, Ward Escobar. Mets beat 200 00:11:08,760 --> 00:11:11,000 Speaker 1: the Brave seven three. Chris Bassett got to win. The 201 00:11:11,040 --> 00:11:13,520 Speaker 1: Mets take the series lead at Lanta now by two 202 00:11:13,559 --> 00:11:16,280 Speaker 1: and a half. They visit the Cubs tonight. Two American 203 00:11:16,400 --> 00:11:19,000 Speaker 1: League teams both stretched their winning streaks to attend the 204 00:11:19,040 --> 00:11:21,959 Speaker 1: Seattle Mariners, who have gone longer than any team in 205 00:11:22,040 --> 00:11:25,720 Speaker 1: all of sports without making the postseason, and the Baltimore Orioles, 206 00:11:25,760 --> 00:11:28,560 Speaker 1: baseball's worst team over the last several years. The Mariners 207 00:11:28,880 --> 00:11:30,920 Speaker 1: now tied for the playoffs spot in the Orioles, only 208 00:11:30,960 --> 00:11:34,880 Speaker 1: two games behind Toronto fired their manager, Charlie Montoyo. The 209 00:11:35,040 --> 00:11:37,520 Speaker 1: Rangers of segn Friedge and Vincent tro Check away from 210 00:11:37,559 --> 00:11:41,840 Speaker 1: Carolina Open Championship Golf hundred fifty edition at St. Andrew's. 211 00:11:41,840 --> 00:11:44,560 Speaker 1: An American Cameron Young thirty one on the front night. 212 00:11:44,600 --> 00:11:47,160 Speaker 1: He's just moved into the lead at five hundred. John 213 00:11:47,200 --> 00:11:50,520 Speaker 1: stash Award, Bloomberg Sports Nathan Okay, John, thank you, SMP. 214 00:11:50,679 --> 00:11:54,720 Speaker 1: Futures down thirty eight points down, futures down two nestact 215 00:11:54,800 --> 00:11:58,200 Speaker 1: future is lower five one hundred points. Ten year treasuries 216 00:11:58,240 --> 00:12:00,920 Speaker 1: down nine thirty seconds, the yield two point nine six 217 00:12:01,080 --> 00:12:08,440 Speaker 1: per cent. You're listening to Bloomberg Day Brain Bloomberg eleven 218 00:12:08,480 --> 00:12:10,800 Speaker 1: three oh weather. Showers and storms developing through the day 219 00:12:10,840 --> 00:12:12,800 Speaker 1: as we had near ninety degrees. It will be partably 220 00:12:12,840 --> 00:12:15,760 Speaker 1: the mostly sunny Tomorrow, mixed the sun and cloud Saturday. 221 00:12:15,800 --> 00:12:18,320 Speaker 1: Both days in the upper eighties. Right now, seventy two 222 00:12:18,400 --> 00:12:24,760 Speaker 1: in Central Park Markets, headlines and breaking news twenty four 223 00:12:24,800 --> 00:12:27,840 Speaker 1: hours a day at Bloomberg dot com, The Bloomberg Business 224 00:12:28,120 --> 00:12:31,520 Speaker 1: and at Bloomberg Quick Take. This is a Bloomberg Business 225 00:12:31,520 --> 00:12:41,000 Speaker 1: flash and I'm Cameron Moscow. US stock index futures are 226 00:12:41,080 --> 00:12:43,160 Speaker 1: following this morning, along with stocks in Europe and the 227 00:12:43,200 --> 00:12:46,840 Speaker 1: dollar resuming its upward March checker hi US inflation hardened 228 00:12:46,840 --> 00:12:50,319 Speaker 1: expectations for more aggressive Federal Reserve monetary tightening that could 229 00:12:50,320 --> 00:12:52,840 Speaker 1: trigger a recession. If you check the markets every fifteen 230 00:12:52,840 --> 00:12:56,000 Speaker 1: minutes throughout the trading day on Bloomberg s ANDP futures 231 00:12:56,040 --> 00:12:58,480 Speaker 1: down thirty nine points, now futures down three hundred four 232 00:12:58,480 --> 00:13:01,000 Speaker 1: and NASDACK futures down one hundred five. The decks in 233 00:13:01,040 --> 00:13:04,319 Speaker 1: Germany's down six tenths of a percent, Pennier treasury down 234 00:13:04,360 --> 00:13:07,319 Speaker 1: eight thirty seconds, held two point nine six percent yield 235 00:13:07,320 --> 00:13:10,080 Speaker 1: on the two year three point two zero percent. Nine 236 00:13:10,120 --> 00:13:12,520 Speaker 1: max screwed oil is down two point four percent, down 237 00:13:12,559 --> 00:13:15,079 Speaker 1: two dollars thirty four cents and ninety three dollars ninety 238 00:13:15,080 --> 00:13:17,360 Speaker 1: six cents of barrel coll MIxS. Gold is down one 239 00:13:17,360 --> 00:13:20,000 Speaker 1: point four percent, or two dollars twenty cents at seventeen 240 00:13:20,000 --> 00:13:23,440 Speaker 1: eleven thirty announced the euro one point zero zero three 241 00:13:23,480 --> 00:13:26,360 Speaker 1: five against the dollar, British found one point five six 242 00:13:26,600 --> 00:13:29,400 Speaker 1: and the en one thirty eight point eight four. Looking 243 00:13:29,440 --> 00:13:32,679 Speaker 1: at bitcoin, it's higher, up about seven tenths percent and 244 00:13:32,840 --> 00:13:36,360 Speaker 1: nineteen thousand seven d eighty five dollars. Today we get 245 00:13:36,400 --> 00:13:38,760 Speaker 1: another reading on inflation, the producer price, and next sun 246 00:13:38,840 --> 00:13:40,680 Speaker 1: at eight thirty Wall Street time, we also get the 247 00:13:40,679 --> 00:13:43,480 Speaker 1: weekly report on initial jobless claims, and we're looking for 248 00:13:43,520 --> 00:13:46,360 Speaker 1: earnings from JP Morgan Chase and Morgan Stanley. As a 249 00:13:46,400 --> 00:13:48,959 Speaker 1: Bloomberg business flash. Now here's Michael Barr with more on 250 00:13:49,080 --> 00:13:51,560 Speaker 1: what's going on around the world. Mantel, hearen, thank you 251 00:13:51,679 --> 00:13:53,960 Speaker 1: very much. President Joe Biden will seek the bolster co 252 00:13:54,080 --> 00:13:57,480 Speaker 1: operation between the US, Israel, and other countries. During his 253 00:13:57,600 --> 00:14:00,640 Speaker 1: first full day in the Middle East. Is edual today 254 00:14:00,640 --> 00:14:04,760 Speaker 1: involves meetings with Israeli prim Minister Yar Lapide. In baseball, 255 00:14:04,800 --> 00:14:07,240 Speaker 1: the Yankees beat the Rads, the Mets beat the Braves. 256 00:14:07,240 --> 00:14:09,679 Speaker 1: The Nationals lost both games of a double header to 257 00:14:09,760 --> 00:14:12,760 Speaker 1: the Mariners. As earning hour old say, the Orioles are 258 00:14:12,760 --> 00:14:15,400 Speaker 1: flapping their wings. They beat the Cubs to win their 259 00:14:15,400 --> 00:14:18,319 Speaker 1: tenth straight. The Giants stopped the Diamondbacks. They's lost to 260 00:14:18,360 --> 00:14:20,640 Speaker 1: the Rangers. Global News twenty four hours a day on 261 00:14:20,720 --> 00:14:24,160 Speaker 1: here and on Bloomberg Quick Take Power by more than journalists, 262 00:14:24,160 --> 00:14:26,520 Speaker 1: analysts more than a hundred twenty countries. Michael bar this 263 00:14:26,560 --> 00:14:28,440 Speaker 1: is Bloomberg. What a time to be alive when the 264 00:14:28,440 --> 00:14:30,840 Speaker 1: Orioles are doing well for a change. Thank you, Michael. 265 00:14:30,840 --> 00:14:32,720 Speaker 1: It is six nineteen on Wall Street Live from the 266 00:14:32,720 --> 00:14:36,320 Speaker 1: Bloomberg Interactive Broker Studios. This is a Bloomberg daybreak. Of course, 267 00:14:36,360 --> 00:14:39,760 Speaker 1: investors focused not just on the front of inflation, higher 268 00:14:39,800 --> 00:14:43,520 Speaker 1: rate hikes, but the kickoff of bank earning season. With 269 00:14:43,720 --> 00:14:47,760 Speaker 1: JP Morgan Chase and UH Morgan Stanley reporting this morning. 270 00:14:47,840 --> 00:14:50,720 Speaker 1: Ken Leon is with US now Director of Equity Research 271 00:14:51,160 --> 00:14:53,000 Speaker 1: or at c f R. A Ken, It's great to 272 00:14:53,040 --> 00:14:55,600 Speaker 1: speak with you this morning and wonder what your expectations 273 00:14:55,640 --> 00:14:58,120 Speaker 1: are when it comes to the bank earnings, because of 274 00:14:58,160 --> 00:15:00,400 Speaker 1: course they have so much that they can tell us 275 00:15:00,440 --> 00:15:03,440 Speaker 1: about the strength or or what of you, what have 276 00:15:03,600 --> 00:15:07,960 Speaker 1: you when it comes to the US economy. But that's right, 277 00:15:08,120 --> 00:15:10,880 Speaker 1: and it's really where are we going. We're at an 278 00:15:10,880 --> 00:15:14,240 Speaker 1: inflection point in terms of questions about the economy or 279 00:15:14,280 --> 00:15:18,720 Speaker 1: the consumer. And looking ahead, I think the banks are 280 00:15:18,760 --> 00:15:21,600 Speaker 1: going to be cautious. They need to build up bank 281 00:15:21,680 --> 00:15:26,000 Speaker 1: reserves if we run into recession next year. And of course, 282 00:15:26,520 --> 00:15:29,400 Speaker 1: you know, the investment banking area has been weak, but 283 00:15:29,800 --> 00:15:34,400 Speaker 1: all of that is really factored into expectations and stock prices. 284 00:15:34,440 --> 00:15:37,720 Speaker 1: So I think any any leaf of good news is 285 00:15:37,760 --> 00:15:42,160 Speaker 1: going to help in terms of optimism, and bank stocks 286 00:15:42,160 --> 00:15:44,960 Speaker 1: may be going higher, but this is not going to 287 00:15:45,080 --> 00:15:49,280 Speaker 1: be a pretty firing on all cylinders kind of quarter 288 00:15:49,360 --> 00:15:51,480 Speaker 1: for the banks, and I think their tone is going 289 00:15:51,560 --> 00:15:54,600 Speaker 1: to be pretty low key. I think it has to 290 00:15:54,640 --> 00:15:58,080 Speaker 1: be said that JP Morgan Chase CEO Jamie Diamond may 291 00:15:58,120 --> 00:16:02,200 Speaker 1: have set expectations when he made that well repeated quote 292 00:16:02,240 --> 00:16:06,000 Speaker 1: about an economic hurricane on the horizon. Are you expecting 293 00:16:06,080 --> 00:16:09,680 Speaker 1: that that kind of language could continue or I mean, 294 00:16:09,800 --> 00:16:12,600 Speaker 1: is there is there a possibility that we could see, uh, 295 00:16:12,960 --> 00:16:17,960 Speaker 1: some evidence of green shoots. Yeah, the green shoots. It's 296 00:16:18,000 --> 00:16:21,800 Speaker 1: gonna be tough because of the pressure of rising rates. 297 00:16:21,840 --> 00:16:24,360 Speaker 1: You know, the fact going maybe up on our basis 298 00:16:24,360 --> 00:16:29,080 Speaker 1: points next time on their meeting, and you know, I think, uh, 299 00:16:29,120 --> 00:16:31,960 Speaker 1: you know, the real secret to the story is banks 300 00:16:31,960 --> 00:16:36,480 Speaker 1: built reserves and if we go into a shallow recession 301 00:16:37,120 --> 00:16:40,440 Speaker 1: next year, possibly they can reverse those and and that 302 00:16:40,480 --> 00:16:43,600 Speaker 1: could help earnings next year. But the you know, the 303 00:16:43,640 --> 00:16:47,120 Speaker 1: health of the businesses lending is likely to be less 304 00:16:47,160 --> 00:16:49,760 Speaker 1: than the second half first the first half of this year. 305 00:16:50,200 --> 00:16:54,280 Speaker 1: Capital markets is a big, big question more particularly in 306 00:16:54,400 --> 00:16:59,400 Speaker 1: terms of underwriting and overwall. You know, right now, the 307 00:16:59,680 --> 00:17:03,560 Speaker 1: bank just aren't selling cracks in terms of credit credit risk, 308 00:17:04,400 --> 00:17:08,280 Speaker 1: particularly in on the commercial side. There isn't a distress industry, 309 00:17:08,480 --> 00:17:12,520 Speaker 1: so you know, again it's a cross roads. And banks 310 00:17:12,240 --> 00:17:15,960 Speaker 1: are very different than a industrial company where they can 311 00:17:16,000 --> 00:17:18,600 Speaker 1: build reserves. And if if things don't get so bad, 312 00:17:18,640 --> 00:17:22,560 Speaker 1: then that's gonna help earnings next year. Could the volatility 313 00:17:22,600 --> 00:17:26,600 Speaker 1: that we've seen in the market, uh, and the possibility 314 00:17:26,840 --> 00:17:30,600 Speaker 1: that trading desks have been able to manage to do 315 00:17:30,720 --> 00:17:34,240 Speaker 1: well based on that, could that sort of outweigh some 316 00:17:34,359 --> 00:17:37,879 Speaker 1: of the headwinds that banks could be seeing from some 317 00:17:37,960 --> 00:17:41,800 Speaker 1: of the other issues surrounding rates they are, and that's 318 00:17:41,800 --> 00:17:46,119 Speaker 1: going to offset you know, lower underwriting and mergers and acquisitions, 319 00:17:46,240 --> 00:17:51,120 Speaker 1: equity and fixed income trading or up anywhere twenty um 320 00:17:51,200 --> 00:17:56,760 Speaker 1: and volatility has helped, But for investors, bank stocks never 321 00:17:56,800 --> 00:18:01,080 Speaker 1: really get rewarded on the volatility of trading because it's 322 00:18:01,119 --> 00:18:05,440 Speaker 1: so difficult to sustain or predict. But yes, the print 323 00:18:05,480 --> 00:18:08,000 Speaker 1: is going to be positive for trading, you know when 324 00:18:08,040 --> 00:18:11,720 Speaker 1: they report soon. Does that make it tough to think 325 00:18:11,720 --> 00:18:14,680 Speaker 1: of financials more broadly as a buy when it comes 326 00:18:14,680 --> 00:18:18,240 Speaker 1: to investing in some of these big Wall Street names. 327 00:18:20,200 --> 00:18:25,080 Speaker 1: Banks are constantly trying to get higher recurring revenue, more 328 00:18:25,080 --> 00:18:29,199 Speaker 1: more consistency in their performance. They're getting that from asset 329 00:18:29,280 --> 00:18:33,960 Speaker 1: and wealth management and trust services UM and some other 330 00:18:34,040 --> 00:18:37,320 Speaker 1: areas related to the consumer. But the deltas against that 331 00:18:37,520 --> 00:18:42,480 Speaker 1: higher growth would be you know, obviously higher credit card 332 00:18:42,600 --> 00:18:47,600 Speaker 1: spending and then also loan activity. But we're saying all 333 00:18:47,640 --> 00:18:50,040 Speaker 1: of this where the bank stocks are at a fifty 334 00:18:50,119 --> 00:18:53,720 Speaker 1: two week low, they're trading at record low priced and 335 00:18:53,840 --> 00:18:58,680 Speaker 1: that tangible book value we had a nice um announcements 336 00:18:58,720 --> 00:19:01,199 Speaker 1: have to the Fed Bank in terms of return of 337 00:19:01,280 --> 00:19:05,439 Speaker 1: capital with siven in increases and buy backs. So the 338 00:19:05,480 --> 00:19:08,679 Speaker 1: bank stocks even they're yields some of them, like Morgan 339 00:19:08,760 --> 00:19:12,399 Speaker 1: Stanley JP Morgan around three and a half percent for 340 00:19:12,520 --> 00:19:16,320 Speaker 1: really great franchises in our fu Thanks for this, Ken, 341 00:19:16,359 --> 00:19:19,399 Speaker 1: great having you on this morning. Ken Leon Director of 342 00:19:19,440 --> 00:19:22,680 Speaker 1: Equity Research at cf R A as we await JP 343 00:19:22,800 --> 00:19:25,720 Speaker 1: Morgan Chase second quarter earnings are duet around seven am 344 00:19:25,760 --> 00:19:29,320 Speaker 1: Wall Street Time. Morgan Stanley follows at seven thirty. We 345 00:19:29,400 --> 00:19:31,639 Speaker 1: will of course have full coverage for you throughout the 346 00:19:31,720 --> 00:19:35,800 Speaker 1: day here on Bloomberg Radio. SMP futures right now down 347 00:19:36,080 --> 00:19:38,880 Speaker 1: forty one point. Staff futures are lower by three twenty. 348 00:19:38,920 --> 00:19:42,560 Speaker 1: Nasdaq futures down a hundred seven points. The tenure Treasury 349 00:19:42,600 --> 00:19:45,520 Speaker 1: is down six thirty seconds. Yield two point nine five percent. 350 00:19:45,640 --> 00:19:49,240 Speaker 1: Yield on the two year three point one nine percent. 351 00:19:49,720 --> 00:19:52,679 Speaker 1: Just ahead, you look ahead to another read on inflation 352 00:19:52,800 --> 00:19:56,280 Speaker 1: in producer prices and why a big tech ceo thinks 353 00:19:56,320 --> 00:19:59,560 Speaker 1: his sector can weather the storm. Five things you need 354 00:19:59,600 --> 00:20:02,760 Speaker 1: to note start your day. Coming up on Bloomberg day 355 00:20:02,800 --> 00:20:10,160 Speaker 1: Break Bloomberg eleven three oh weather showers and storms developing 356 00:20:10,200 --> 00:20:12,200 Speaker 1: through the day as we had near ninety degrees. Will 357 00:20:12,240 --> 00:20:14,880 Speaker 1: be back in the sunshine oper eight ees tomorrow mix 358 00:20:14,880 --> 00:20:17,880 Speaker 1: of sun and clouds ouper eighties Saturday right now seventy 359 00:20:17,920 --> 00:20:25,040 Speaker 1: two in Central Park, criadcasting live from the Bloomberg Interactive 360 00:20:25,080 --> 00:20:28,119 Speaker 1: Broker Studio in New York. Bloomberg e Living Free on 361 00:20:28,320 --> 00:20:32,480 Speaker 1: to Washington, d C. Bloomberg to Boston, Bloomberg one O 362 00:20:32,680 --> 00:20:35,760 Speaker 1: six one to San Francisco, Bloomberg No. Sixteen to the 363 00:20:35,760 --> 00:20:38,879 Speaker 1: country Sirius XM Chad A one nineteen and around the 364 00:20:38,880 --> 00:20:42,960 Speaker 1: globe the Bloomberg Business and Bloomberg Radio dot com. This 365 00:20:43,280 --> 00:20:51,600 Speaker 1: is Bloomberg Daybreak six thirty on Wall Street. Good morning, 366 00:20:51,640 --> 00:20:54,639 Speaker 1: I'm Nathan Hagar and I'm Karen Moscow. We are just 367 00:20:54,720 --> 00:20:57,439 Speaker 1: about three hours away from the open of US trading. 368 00:20:57,480 --> 00:20:58,960 Speaker 1: Time for the five things that you need to know 369 00:20:59,080 --> 00:21:01,960 Speaker 1: to start your day out to you by Interactive Brokers. 370 00:21:02,200 --> 00:21:05,440 Speaker 1: Interactive Brokers Global Analysts helps you find new global investment 371 00:21:05,440 --> 00:21:09,879 Speaker 1: opportunities to diversify your portfolio and discover undervalued companies that 372 00:21:09,960 --> 00:21:13,360 Speaker 1: may have greater growth potential. Try ibk our Global Analysts 373 00:21:13,400 --> 00:21:16,720 Speaker 1: today at ibk R dot com slash g A. A 374 00:21:16,840 --> 00:21:20,320 Speaker 1: first reaction, still rolling into yesterday's hot reading on inflation 375 00:21:20,480 --> 00:21:23,199 Speaker 1: and their speculation that the FEDS next move maybe a 376 00:21:23,320 --> 00:21:26,840 Speaker 1: one percent rate hike. Cleveland Fed President Loretta Memester says 377 00:21:26,880 --> 00:21:30,120 Speaker 1: there's more work to do to cut inflation. Job one 378 00:21:30,480 --> 00:21:33,119 Speaker 1: for us is to get inflation under control. And I 379 00:21:33,280 --> 00:21:36,800 Speaker 1: say that knowing that the risk of recession have one, 380 00:21:37,240 --> 00:21:39,800 Speaker 1: but that's part of what we're trying to do is 381 00:21:40,280 --> 00:21:44,800 Speaker 1: normalize or or moderate demand, because if we don't do this, 382 00:21:45,200 --> 00:21:48,359 Speaker 1: we're gonna have many more problems in the economy going forward. 383 00:21:48,600 --> 00:21:51,000 Speaker 1: Cleveland Fed, President of the Rerdemester made the comments to 384 00:21:51,040 --> 00:21:54,600 Speaker 1: Bloomberg's Kathleen Hayes. No earning season gets underway today, Karen 385 00:21:54,640 --> 00:21:57,040 Speaker 1: has big banks open their books for the second quarter 386 00:21:57,080 --> 00:22:00,680 Speaker 1: of Bloomberg's Jeff Bellinger has more analysts say that overall, 387 00:22:00,720 --> 00:22:03,639 Speaker 1: the numbers from the financial services sector will likely be 388 00:22:03,800 --> 00:22:06,960 Speaker 1: lower by comparison to the very strong results from a 389 00:22:07,040 --> 00:22:09,960 Speaker 1: year ago. Will hear from JP Morgan Chase and Morgan 390 00:22:10,040 --> 00:22:14,640 Speaker 1: Stanley this morning. Bloomberg Intelligence says JP Morgan's market leadership 391 00:22:14,680 --> 00:22:18,720 Speaker 1: positions support profitability and long term growth. A profit of 392 00:22:18,720 --> 00:22:21,800 Speaker 1: two dollars nine two cents a share is predicted. The 393 00:22:21,840 --> 00:22:24,320 Speaker 1: forecast for Morgan Stanley is for a profit of a 394 00:22:24,359 --> 00:22:28,760 Speaker 1: dollar fifty seven a share. Jeff Bellinger Bloomberg Daybreak. All right, Jeff, 395 00:22:28,760 --> 00:22:31,240 Speaker 1: thank you. As your session fears grow on Wall Street one, 396 00:22:31,280 --> 00:22:33,800 Speaker 1: top executives in the industry will be able to weather 397 00:22:33,840 --> 00:22:36,439 Speaker 1: the storm. And Bloomberg's Rnity Young joins US Live with 398 00:22:36,520 --> 00:22:40,000 Speaker 1: more Good Morning Radio, Good Morning Karen. IBM CEO Arvid 399 00:22:40,080 --> 00:22:44,360 Speaker 1: Krishna says he believes business technology spending will remain robust 400 00:22:44,720 --> 00:22:49,760 Speaker 1: above GDP growth, including in Europe. This following pessimistic sentiment 401 00:22:49,880 --> 00:22:52,600 Speaker 1: from others in the industry. When you look at supply 402 00:22:52,720 --> 00:22:57,359 Speaker 1: chain inflation, liabo demographics, interest rates. Technology offers you away 403 00:22:57,560 --> 00:23:03,640 Speaker 1: to scale without necessarily increasing costs that are linear. IBM 404 00:23:03,720 --> 00:23:07,840 Speaker 1: CEO Arvind Krishnas does say, however, supply chain problems will 405 00:23:07,960 --> 00:23:10,800 Speaker 1: last a couple more years. Live in New York, I'm 406 00:23:10,800 --> 00:23:13,159 Speaker 1: gonna need a young Bloomberg daybreak, Okay, we need to 407 00:23:13,200 --> 00:23:16,359 Speaker 1: thanks attorning to politics, President Biden signs a joint declaration 408 00:23:16,400 --> 00:23:19,240 Speaker 1: today with Israel's new prime minister to provide billions to 409 00:23:19,240 --> 00:23:22,760 Speaker 1: the Israeli military. The President visits Saudi Arabia tomorrow. And 410 00:23:22,760 --> 00:23:25,000 Speaker 1: that's the fine things you need to notice start your day. 411 00:23:25,000 --> 00:23:29,119 Speaker 1: Brought to you by Interactive Brokers. Futures are lower this morning, 412 00:23:29,240 --> 00:23:32,760 Speaker 1: straight ahead, your latest local headlines plus the check of sports, 413 00:23:32,800 --> 00:23:39,400 Speaker 1: and this is Bloomberg. Thanks here. In six thirty three 414 00:23:39,400 --> 00:23:41,760 Speaker 1: on Wall Street, seventy two degrees in Central Park, out 415 00:23:41,760 --> 00:23:43,960 Speaker 1: of crash on southbound Harlem River Drive at a hundred 416 00:23:44,000 --> 00:23:47,240 Speaker 1: forty five. But better news for rail riders. This morning. 417 00:23:47,280 --> 00:23:49,600 Speaker 1: Michael Barr has that and more on what's going on 418 00:23:49,640 --> 00:23:51,840 Speaker 1: in New York and around the world. Good morning, Michael, 419 00:23:51,920 --> 00:23:55,160 Speaker 1: Good morning, Nathan, and rail commuters are saying welcome back, 420 00:23:55,200 --> 00:23:59,080 Speaker 1: old friend. New Jersey Transit as resume service in and 421 00:23:59,280 --> 00:24:01,879 Speaker 1: out of New York York City. It was suspended earlier 422 00:24:01,920 --> 00:24:05,679 Speaker 1: this morning because of overhead wire issues buses and the 423 00:24:05,720 --> 00:24:09,480 Speaker 1: path train. Now I've stopped that cross honoring stuff. Two 424 00:24:09,480 --> 00:24:12,800 Speaker 1: more shark bites happened within hours off Long Island yesterday. 425 00:24:12,840 --> 00:24:15,879 Speaker 1: Suffolk County Executive Steve Bloone called it the new normal. 426 00:24:16,119 --> 00:24:18,680 Speaker 1: They've always been here, but they're closer to the shore now. 427 00:24:18,920 --> 00:24:22,000 Speaker 1: Blogs has in. One attack is surfer punched. The predator 428 00:24:22,320 --> 00:24:25,320 Speaker 1: was knocked off his sport and then saw this shark 429 00:24:25,400 --> 00:24:29,760 Speaker 1: coming back around towards him. Suffolk County Executive Steve Belone 430 00:24:29,840 --> 00:24:33,159 Speaker 1: says both men suffered non life threatening injuries. It is 431 00:24:33,200 --> 00:24:35,760 Speaker 1: the third shark attack in ten days off Long Island. 432 00:24:36,160 --> 00:24:38,960 Speaker 1: The New York City Council called on Mayor Eric Adams 433 00:24:39,040 --> 00:24:42,040 Speaker 1: and the Department of Education to halt school budget cuts 434 00:24:42,119 --> 00:24:44,960 Speaker 1: Day say will result in the city spending less on 435 00:24:45,119 --> 00:24:48,399 Speaker 1: each child. Last month, the city Council signed off on 436 00:24:48,440 --> 00:24:51,920 Speaker 1: the two hundred fifteen million dollar budget cut in passing 437 00:24:51,960 --> 00:24:56,240 Speaker 1: adams three city budget. However, in a joint letter, council 438 00:24:56,320 --> 00:24:59,960 Speaker 1: members say they were misled when the Adams administration said 439 00:25:00,119 --> 00:25:03,680 Speaker 1: the cuts would be fully accounted for by declining enrollment. 440 00:25:04,119 --> 00:25:06,720 Speaker 1: Mayor Adams announced the opening of a short term treatment 441 00:25:06,760 --> 00:25:09,479 Speaker 1: center in the Bronx that will provide New Yorkers with 442 00:25:09,640 --> 00:25:14,159 Speaker 1: mental health and substance abuse issues immediate access to services. 443 00:25:14,520 --> 00:25:17,720 Speaker 1: Adams says, for decades, the city has relied on NYPD 444 00:25:17,840 --> 00:25:21,920 Speaker 1: officers to respond to mental health crisis and offered few 445 00:25:22,040 --> 00:25:25,560 Speaker 1: alternatives to emergency rooms for people in crisis who are 446 00:25:25,560 --> 00:25:27,880 Speaker 1: seeking help. They're going to come and they're gonna walk 447 00:25:27,880 --> 00:25:30,320 Speaker 1: through the meditation room. They're gonna come and have a 448 00:25:30,359 --> 00:25:32,720 Speaker 1: place where they can get their medication if needed. They're 449 00:25:32,720 --> 00:25:35,280 Speaker 1: going to come and get three males, a shower, a 450 00:25:35,320 --> 00:25:39,760 Speaker 1: place of sleep, just to de escalate your crisis instead 451 00:25:39,800 --> 00:25:43,520 Speaker 1: of having to call the police to respond. And that 452 00:25:43,600 --> 00:25:48,000 Speaker 1: blue uniform sometimes can activate the situation instead of de 453 00:25:48,240 --> 00:25:52,199 Speaker 1: escalate the situation there, Adams says, mental health crisis is 454 00:25:52,200 --> 00:25:54,280 Speaker 1: not a crime. It's crime not to give people the 455 00:25:54,280 --> 00:25:57,160 Speaker 1: services they need. A Manhattan bar has agreed to pay 456 00:25:57,160 --> 00:25:59,840 Speaker 1: a half million dollars to current and former employees who 457 00:25:59,840 --> 00:26:04,040 Speaker 1: can managers provided a hostile and discriminatory workplace the Attorney 458 00:26:04,080 --> 00:26:07,920 Speaker 1: General's Office as managers had sweeten fishes in Nolita's subjected 459 00:26:07,960 --> 00:26:12,320 Speaker 1: employees to sex discrimination and sexual and gender based harassment. 460 00:26:12,640 --> 00:26:15,000 Speaker 1: Global News twenty four hours a day on air and 461 00:26:15,119 --> 00:26:18,200 Speaker 1: on Bloomberg Quick Take, powered by more than seven hundred 462 00:26:18,240 --> 00:26:20,920 Speaker 1: journalists and analysts more than a hundred twenty countries. Michael 463 00:26:20,960 --> 00:26:28,320 Speaker 1: bar this is Bloomberg, Navid. Thank you Michael. Just about 464 00:26:28,320 --> 00:26:30,800 Speaker 1: six thirty six on Wall Street, John Stanho has the 465 00:26:30,800 --> 00:26:33,600 Speaker 1: Bloomberg Sports Update, Thanks Dathan. The Yankees had lost three 466 00:26:33,600 --> 00:26:35,760 Speaker 1: in a row, blown leads in all three. This time 467 00:26:35,840 --> 00:26:38,399 Speaker 1: they were the ones that came from behind down four nothing, 468 00:26:38,480 --> 00:26:41,040 Speaker 1: later six five. They beat the Reds at the Stadium 469 00:26:41,080 --> 00:26:43,480 Speaker 1: seven six and ten and the winning one square in 470 00:26:43,520 --> 00:26:46,400 Speaker 1: a wild pitch. Isaiah Kiner Felfa had a big three 471 00:26:46,440 --> 00:26:49,400 Speaker 1: run double giant Colo Stanton a game tieing home run, 472 00:26:49,400 --> 00:26:50,879 Speaker 1: and now the Yanks the wait word on an m 473 00:26:51,000 --> 00:26:54,520 Speaker 1: R I on Luis Severino's shoulder. He knew early on 474 00:26:54,600 --> 00:26:57,800 Speaker 1: last night something was wrong. I think it was like 475 00:26:58,760 --> 00:27:01,439 Speaker 1: you know what lost not me, but I told like 476 00:27:02,320 --> 00:27:05,800 Speaker 1: I couldn't got a little bit more, but uh for 477 00:27:05,880 --> 00:27:08,200 Speaker 1: the sick rainy. You know, when I was long enough, 478 00:27:09,040 --> 00:27:12,560 Speaker 1: it was gods from getting worse. So I told him myself, 479 00:27:12,680 --> 00:27:16,119 Speaker 1: like before or something even bigger happened. I mean, you 480 00:27:16,119 --> 00:27:19,800 Speaker 1: know right here. Heavurino has made it back from multiple 481 00:27:19,840 --> 00:27:22,560 Speaker 1: injuries over the previous few seasons. The Mets one in Atlanta, 482 00:27:22,640 --> 00:27:25,000 Speaker 1: seven to three. They hit three home runs Mark Canna 483 00:27:25,040 --> 00:27:27,520 Speaker 1: at warda West Bar three run shot for Francisco Lindor. 484 00:27:27,560 --> 00:27:29,720 Speaker 1: The Mets win the series, lead the Braves now by 485 00:27:29,720 --> 00:27:31,600 Speaker 1: two and a half. Tonight, they played the Cubs at 486 00:27:31,640 --> 00:27:35,040 Speaker 1: Wrigley where Baltimore one again last night. The Orioles have 487 00:27:35,200 --> 00:27:37,320 Speaker 1: won ten in a row. They're still in last place, 488 00:27:37,359 --> 00:27:39,720 Speaker 1: but they're over five hundred, the only two games out 489 00:27:39,720 --> 00:27:42,480 Speaker 1: of a playoff spot and hl free agency, the Rangers 490 00:27:42,520 --> 00:27:45,000 Speaker 1: signed Vincent tro Check to a seven year deal he'd 491 00:27:45,040 --> 00:27:47,879 Speaker 1: been with Carolina. They also added a veteran backup goalie 492 00:27:47,960 --> 00:27:50,760 Speaker 1: Artos slap Lock fright for Toronto, and Andrew Copp, who 493 00:27:50,840 --> 00:27:53,159 Speaker 1: the Rangers added at the trade deadline. That both moved on, 494 00:27:53,240 --> 00:27:56,199 Speaker 1: but Toronto signed with Anaheim, cop with Detroit. At the 495 00:27:56,240 --> 00:27:59,720 Speaker 1: Open Championship at St. Andrew's American Cameron Young six under 496 00:27:59,800 --> 00:28:02,600 Speaker 1: through eleven holes. He's got a two shot lead. John 497 00:28:02,640 --> 00:28:06,800 Speaker 1: stash Award Bloomberg Sports, Nathan, thank you, John sixty seven 498 00:28:06,920 --> 00:28:09,000 Speaker 1: on Wall Street. Time to take a look at stock, 499 00:28:09,119 --> 00:28:11,440 Speaker 1: some of the names moving in the pre market. Bloomberg 500 00:28:11,520 --> 00:28:14,880 Speaker 1: Radio on TV Markets corresponded, Creany Gufta is back with 501 00:28:14,960 --> 00:28:18,240 Speaker 1: us this morning watching financials. I'm sure with the first 502 00:28:18,359 --> 00:28:21,680 Speaker 1: big bank earnings now just minutes away, creating just minutes away. 503 00:28:21,760 --> 00:28:23,640 Speaker 1: JP Morgan's what we have our I on here. Those 504 00:28:23,640 --> 00:28:25,840 Speaker 1: shares are down a by one point one percent in 505 00:28:25,840 --> 00:28:28,680 Speaker 1: the pre market. This is really important, Nathan, because we're 506 00:28:28,680 --> 00:28:30,879 Speaker 1: about to get numbers across the board that don't you 507 00:28:31,040 --> 00:28:33,960 Speaker 1: have repercussions for JP Morgan's bottom line, but for the 508 00:28:34,000 --> 00:28:37,160 Speaker 1: broader economy as well. Lone lost provisions, for example, how 509 00:28:37,280 --> 00:28:39,600 Speaker 1: much are some of these big banks JP Morgan in 510 00:28:39,640 --> 00:28:43,520 Speaker 1: particular preparing and bracing for some sort of recession, bracing 511 00:28:43,520 --> 00:28:45,840 Speaker 1: for some sort of consumer default. That's going to be 512 00:28:45,880 --> 00:28:48,160 Speaker 1: a key part of the equation. Trading revenue is going 513 00:28:48,200 --> 00:28:51,160 Speaker 1: to be another one, especially, I have to add when 514 00:28:51,200 --> 00:28:53,280 Speaker 1: you do see all his volatility in the markets. Remember 515 00:28:53,400 --> 00:28:56,520 Speaker 1: fixed income commodity markets have been extremely hard to navigate. 516 00:28:56,800 --> 00:28:59,240 Speaker 1: JP Morgan and the like tends to be market makers 517 00:28:59,240 --> 00:29:02,240 Speaker 1: and that their offering some of the spreads that volatility 518 00:29:02,400 --> 00:29:05,360 Speaker 1: usually helps trading revenue for some of these banks. Is 519 00:29:05,360 --> 00:29:07,520 Speaker 1: it going to help again to the point that actually 520 00:29:07,520 --> 00:29:09,920 Speaker 1: offsets some of the pain and some of the other businesses, 521 00:29:09,960 --> 00:29:13,600 Speaker 1: other businesses like for example, investment banking. We also know 522 00:29:13,640 --> 00:29:16,520 Speaker 1: that deal volume has really been dropping and dropping quite 523 00:29:16,600 --> 00:29:19,680 Speaker 1: quickly on these recession fears and financing fears. So how 524 00:29:19,760 --> 00:29:21,360 Speaker 1: much of that is going to show up? And remember 525 00:29:21,520 --> 00:29:24,600 Speaker 1: this all comes up in the background of a two's 526 00:29:24,680 --> 00:29:28,680 Speaker 1: tense inverted yield curve, which has huge repercussions in terms 527 00:29:28,680 --> 00:29:32,040 Speaker 1: of how much JP Morgan can actually charge interest on 528 00:29:32,080 --> 00:29:33,840 Speaker 1: some of the loans they provide. So a lot to 529 00:29:33,880 --> 00:29:36,040 Speaker 1: digest in the next couple of minutes. Yeah, deep in 530 00:29:36,120 --> 00:29:38,480 Speaker 1: version with twos and tens and with the broader market 531 00:29:38,600 --> 00:29:42,000 Speaker 1: pointing lower once again this morning, creaty, what else you're watching? Well, 532 00:29:42,040 --> 00:29:43,800 Speaker 1: we have to talk about the commodity names. This is 533 00:29:43,840 --> 00:29:46,360 Speaker 1: going to be very significant. One of the major movers 534 00:29:46,360 --> 00:29:49,280 Speaker 1: to the downside is Freeport mcmaran. Now this is a 535 00:29:49,320 --> 00:29:52,160 Speaker 1: copper company or largest copper company. I have to say 536 00:29:52,200 --> 00:29:54,760 Speaker 1: f c X as your taker, down about three point 537 00:29:54,800 --> 00:29:56,560 Speaker 1: four percent in the pre market. And then if you 538 00:29:56,680 --> 00:29:58,640 Speaker 1: took a look at the macro picture and take a 539 00:29:58,640 --> 00:30:02,160 Speaker 1: look at commodities broadly, they are all lower. Commodities are 540 00:30:02,200 --> 00:30:04,920 Speaker 1: supposed to be not just kind of this bid on 541 00:30:05,000 --> 00:30:07,920 Speaker 1: inflation in that play, but also the idea that you 542 00:30:08,000 --> 00:30:10,560 Speaker 1: are supposed to be seeing global demand for commodities, that 543 00:30:10,600 --> 00:30:13,520 Speaker 1: the economy is still growing. In the last couple of days, 544 00:30:13,560 --> 00:30:17,400 Speaker 1: you've seen the exact opposite, stronger dollar, commodities dropping really 545 00:30:17,440 --> 00:30:19,280 Speaker 1: signifying some of those growth fears. And the way that 546 00:30:19,320 --> 00:30:22,280 Speaker 1: shows up in the stock market is through commodity exposed 547 00:30:22,320 --> 00:30:24,520 Speaker 1: names life Freeport Macbran. Like I said, f c X 548 00:30:24,560 --> 00:30:26,360 Speaker 1: down three point four percent. But take a look some 549 00:30:26,360 --> 00:30:28,720 Speaker 1: of the oil names as well. X on Mobile for example, 550 00:30:28,840 --> 00:30:31,280 Speaker 1: x O M is your taker down two percent. E 551 00:30:31,440 --> 00:30:34,160 Speaker 1: O G Resources another one down to percent as well. 552 00:30:34,200 --> 00:30:36,480 Speaker 1: So once again, all of the commodity names that have 553 00:30:36,560 --> 00:30:39,360 Speaker 1: been such a surefire trade in the past couple of 554 00:30:39,720 --> 00:30:41,760 Speaker 1: I want to say months right now, they're the ones 555 00:30:41,800 --> 00:30:43,760 Speaker 1: that are leading the sell off. Nathan all Right, Bloomberg 556 00:30:43,800 --> 00:30:46,120 Speaker 1: Radio on TV. Markets correspondent, pretty cooped up with us 557 00:30:46,160 --> 00:30:48,480 Speaker 1: this morning while we wait for those JP Morgan and 558 00:30:48,600 --> 00:30:52,240 Speaker 1: Morgan Chase results now minutes away. We'll have them for 559 00:30:52,320 --> 00:30:54,640 Speaker 1: you live here on Bloomberg Radio. The head of the market. 560 00:30:54,680 --> 00:30:58,400 Speaker 1: Open futures are moving lower. SMP futures down thirty nine 561 00:30:58,400 --> 00:31:01,800 Speaker 1: points down, futures down three or eighteen. Nasdaq futures are 562 00:31:01,800 --> 00:31:05,960 Speaker 1: lower by ninety points. Mentioned two's tens inversion, the ten 563 00:31:06,040 --> 00:31:08,800 Speaker 1: year down six thirty seconds right now, the yield two 564 00:31:08,840 --> 00:31:11,680 Speaker 1: point nine five percent yield on the two year three 565 00:31:11,760 --> 00:31:16,320 Speaker 1: point to zero up. Next Bloomberg's Andree hor Durn live 566 00:31:16,400 --> 00:31:19,520 Speaker 1: from Jerusalem as President Biden continues his trip to Israel. 567 00:31:22,600 --> 00:31:25,360 Speaker 1: Bloomberg eleven three oh weather showers and storms developing through 568 00:31:25,400 --> 00:31:28,000 Speaker 1: the day, upper eighties for highs. In fact, will be 569 00:31:28,000 --> 00:31:30,000 Speaker 1: in the upper eighties tomorrow and the next day with 570 00:31:30,320 --> 00:31:37,680 Speaker 1: probably mostly cloudy skies. Right now seventy two in Central Park. Markets, 571 00:31:37,760 --> 00:31:40,880 Speaker 1: headlines and breaking news twenty four hours a day at 572 00:31:40,880 --> 00:31:44,280 Speaker 1: Bloomberg dot Com, bloo Bloomberg Business Out and at Bloomberg 573 00:31:44,360 --> 00:31:53,800 Speaker 1: quick tape. He's a Bloomberg Business flash and I'm fair 574 00:31:53,880 --> 00:31:57,040 Speaker 1: in Moscow. Futures are lower this morning. We go to 575 00:31:57,040 --> 00:31:59,560 Speaker 1: the First Word Breaking news desk for today's morning call 576 00:31:59,680 --> 00:32:03,840 Speaker 1: and he there's Bill Maloney. Bill, good morning, Good morning, Karen. 577 00:32:03,840 --> 00:32:05,960 Speaker 1: That's right. US futures are under pressure right now with 578 00:32:06,000 --> 00:32:08,320 Speaker 1: Doubt futures down three forty five point says to be 579 00:32:08,440 --> 00:32:11,160 Speaker 1: drop forty three and NASDA futures are lowered by nineties 580 00:32:11,160 --> 00:32:13,440 Speaker 1: seven and you just don't hear at JP Morgan just 581 00:32:13,560 --> 00:32:17,080 Speaker 1: reported Q two adjusted revenue thirty one point six three billion. 582 00:32:17,480 --> 00:32:20,800 Speaker 1: Estimate was thirty one point nine seven billion, The US 583 00:32:20,960 --> 00:32:23,400 Speaker 1: ten year old at two point nine six percent. Gold 584 00:32:23,440 --> 00:32:26,000 Speaker 1: is down twenty two, Oil trading lower and Big Cooin 585 00:32:26,160 --> 00:32:29,280 Speaker 1: is little changed. Asian markets were acquired overnight. Note that 586 00:32:29,320 --> 00:32:32,560 Speaker 1: Taiwan semi hyped its outlook and European markets are in 587 00:32:32,560 --> 00:32:34,760 Speaker 1: the red this morning. Back in the US on the 588 00:32:34,800 --> 00:32:38,000 Speaker 1: economic frontday thirty initial jobs claims and June p p 589 00:32:38,120 --> 00:32:41,400 Speaker 1: I and besides JP Morgan earnings, look for Morgan Stanley 590 00:32:41,440 --> 00:32:44,880 Speaker 1: to report around seven thirty. In other news, the Tesla 591 00:32:44,880 --> 00:32:48,960 Speaker 1: executive overseeing AI n Autopilot is stepping down and crypto 592 00:32:49,040 --> 00:32:52,760 Speaker 1: lenders Celsius filed for bankruptcy, wrapping things up. Five was 593 00:32:52,800 --> 00:32:55,280 Speaker 1: cut to neutral at Credit Suits, Cisco cut to neutral 594 00:32:55,320 --> 00:32:57,440 Speaker 1: at JP Morgan, and Tesla was raided new by a 595 00:32:57,480 --> 00:33:00,920 Speaker 1: truist price star. Get there a thousand live from the 596 00:33:00,960 --> 00:33:04,360 Speaker 1: first breaking Newsscon, Bill Maloney care all right, Phil, thank you, 597 00:33:04,400 --> 00:33:06,640 Speaker 1: and to hear live breaking news of your Bloomberg typ 598 00:33:06,720 --> 00:33:09,920 Speaker 1: squawk on your terminal squ a w K. And again 599 00:33:09,960 --> 00:33:12,240 Speaker 1: we did get earnings from JP Morgan. They're crossing the 600 00:33:12,240 --> 00:33:16,400 Speaker 1: Bloomberg now adjusted revenue just missing analysts estimates and second 601 00:33:16,480 --> 00:33:20,040 Speaker 1: quarter investment banking or revenue also looking like a missed 602 00:33:20,040 --> 00:33:23,520 Speaker 1: analysts estimates. We're gonna have full details with Bloomberg Intelligence. 603 00:33:23,600 --> 00:33:26,960 Speaker 1: Is senior analyst Allison Williams in just a moment, and 604 00:33:27,000 --> 00:33:29,360 Speaker 1: that's a Bloomberg business flash. Now here's Muchele bar with 605 00:33:29,400 --> 00:33:31,760 Speaker 1: more on what's going on around the world. Michael Karen, 606 00:33:31,840 --> 00:33:33,960 Speaker 1: thank you very much. High stakes talks in the Middle 607 00:33:34,000 --> 00:33:36,920 Speaker 1: East during his first full day in Israel, President Biden 608 00:33:36,960 --> 00:33:39,680 Speaker 1: and Prime Minister Lapide will hold a full joint briefing 609 00:33:39,800 --> 00:33:42,520 Speaker 1: later today and as wide curfew was in effect in 610 00:33:42,560 --> 00:33:46,240 Speaker 1: Sri Lanka from last night until this morning, after protesters 611 00:33:46,240 --> 00:33:49,440 Speaker 1: surrounded and entered the Prime Minister's office in Colombo. Yesterday. 612 00:33:49,760 --> 00:33:52,720 Speaker 1: In baseball, the Yankees beat the Reds, the Mets beat 613 00:33:52,760 --> 00:33:56,120 Speaker 1: the Braves. The Nationals lost both games of a doubleheader 614 00:33:56,160 --> 00:33:58,640 Speaker 1: to the Mariners. The Orioles beat the Cubs to win 615 00:33:58,680 --> 00:34:02,080 Speaker 1: their tenth straight. A Giant stop the Diamondbacks. The A's 616 00:34:02,360 --> 00:34:05,120 Speaker 1: lost to the Rangers. Global News twenty four hours a 617 00:34:05,200 --> 00:34:08,080 Speaker 1: day on air and on Bloomberg Quick Take, powered by 618 00:34:08,120 --> 00:34:11,280 Speaker 1: more than journalists and analysts in more than a hundred 619 00:34:11,320 --> 00:34:14,840 Speaker 1: twenty countries. Michael Barr and this is Bloomberg. Nathan all right, Michael, 620 00:34:14,880 --> 00:34:17,440 Speaker 1: thank you. We are live from the Bloomberg Interactive Brokers 621 00:34:17,480 --> 00:34:20,360 Speaker 1: studios where at sixty nine on Wall Street Time Now 622 00:34:20,400 --> 00:34:22,239 Speaker 1: to check what's going on in d c or. Some 623 00:34:22,360 --> 00:34:25,000 Speaker 1: of the top stories include new hurdles for a Democratic 624 00:34:25,040 --> 00:34:28,680 Speaker 1: spending package. State and local taxes are apparently off the table, 625 00:34:28,960 --> 00:34:31,680 Speaker 1: Democrats seeing a slim down Chips bill as the path 626 00:34:31,760 --> 00:34:34,319 Speaker 1: to a deal there, and the Washington Post reporting this 627 00:34:34,360 --> 00:34:37,239 Speaker 1: morning that former President Donald Trump could announce another run 628 00:34:37,400 --> 00:34:41,120 Speaker 1: for the nation's highest office before this year's mid terms, 629 00:34:41,480 --> 00:34:44,000 Speaker 1: but the main focus this morning is on the Middle East, 630 00:34:44,040 --> 00:34:47,319 Speaker 1: where President Biden is signaling a continued US commitment to 631 00:34:47,520 --> 00:34:52,040 Speaker 1: Israel's military. This morning, Bloomberg Washington correspondent and Marie Hordern 632 00:34:52,160 --> 00:34:55,200 Speaker 1: is traveling with President Biden and joins US Live this 633 00:34:55,239 --> 00:34:58,120 Speaker 1: morning from Jerusalem. And Marie, good morning. I know the 634 00:34:58,160 --> 00:35:01,320 Speaker 1: President is meeting right now with the new Prime Minister 635 00:35:01,480 --> 00:35:04,120 Speaker 1: of Israel. Ye are lapide to talk a little bit 636 00:35:04,160 --> 00:35:08,360 Speaker 1: more about what's happening in the discussions? Yeah? Yeah, the 637 00:35:08,400 --> 00:35:10,839 Speaker 1: repeated is the caretaker prime minister at the moment. There's 638 00:35:10,840 --> 00:35:13,520 Speaker 1: actually no government here. The coalition broke down and now 639 00:35:13,560 --> 00:35:16,440 Speaker 1: there's going to be a fresh elections in November. President 640 00:35:16,440 --> 00:35:18,920 Speaker 1: will also be meeting with the opposition leader who was 641 00:35:19,000 --> 00:35:23,040 Speaker 1: the prime minister of course, Benjamin net Yahoo. But really 642 00:35:23,200 --> 00:35:27,960 Speaker 1: this is real, Uh, they're reaffirming their commitment to Israel. 643 00:35:28,040 --> 00:35:29,640 Speaker 1: This was a deal that was signed to the Obama 644 00:35:29,640 --> 00:35:32,919 Speaker 1: administration that some turtles at that moment that Yah who 645 00:35:32,960 --> 00:35:35,880 Speaker 1: was um, you know, really upset with America wanting to 646 00:35:36,000 --> 00:35:38,200 Speaker 1: join the nuclear agreement with Iran, but they were able 647 00:35:38,239 --> 00:35:41,480 Speaker 1: to come to the security agreement. It means billions of 648 00:35:41,480 --> 00:35:44,799 Speaker 1: dollars for Israeli defense. The President yesterday was briefed on 649 00:35:44,800 --> 00:35:46,800 Speaker 1: some of that defense, including the iron Dome and this 650 00:35:46,960 --> 00:35:50,800 Speaker 1: new iron beam technology, and that now as its States 651 00:35:50,880 --> 00:35:53,000 Speaker 1: goes to a two thousand and twenty eight, it's a 652 00:35:53,040 --> 00:35:55,680 Speaker 1: ten year agreement, and what they are reaffirming is that 653 00:35:55,719 --> 00:35:58,600 Speaker 1: they will continue that agreement into the future. But they 654 00:35:58,600 --> 00:36:01,319 Speaker 1: didn't give us a date. It kind of low hanging fruit, 655 00:36:01,360 --> 00:36:03,560 Speaker 1: to be honest, because you'd be hard press to find 656 00:36:03,560 --> 00:36:06,160 Speaker 1: an American president who's not going to come to Israel 657 00:36:06,440 --> 00:36:10,520 Speaker 1: and reaffirmed that commitment to Jerusalem and television. Now a 658 00:36:10,600 --> 00:36:13,200 Speaker 1: lot of this uh true to Israel at least, and 659 00:36:13,360 --> 00:36:16,080 Speaker 1: Ray think is about bridging a divide between the US 660 00:36:16,200 --> 00:36:17,960 Speaker 1: and Israel when it comes to how to deal with 661 00:36:18,160 --> 00:36:22,600 Speaker 1: Iran and the stalled nuclear deal. Yeah, it is. The 662 00:36:22,680 --> 00:36:25,120 Speaker 1: nuclear deal at the moment is stalled. The President was 663 00:36:25,120 --> 00:36:27,360 Speaker 1: asked about this from a local news station, and he 664 00:36:27,480 --> 00:36:30,080 Speaker 1: said he believes that a nuclear deal is still the 665 00:36:30,239 --> 00:36:34,120 Speaker 1: right path because it can stop Iran from getting closer 666 00:36:34,239 --> 00:36:37,919 Speaker 1: to and capabilities of having a nuclear weapons. He said 667 00:36:37,960 --> 00:36:40,560 Speaker 1: that j c p o A signed under Obama, which 668 00:36:40,719 --> 00:36:44,080 Speaker 1: her former president Trump told the United States Adam was working. 669 00:36:44,719 --> 00:36:47,680 Speaker 1: Of course, the Israelis, the Saudis and Marati's. They do 670 00:36:47,840 --> 00:36:51,480 Speaker 1: not want to see the United States negotiating with Iran. 671 00:36:51,600 --> 00:36:54,319 Speaker 1: And right now the Star talks have fall. There were 672 00:36:54,360 --> 00:36:56,800 Speaker 1: recent talks a few weeks ago and Doha, we reported 673 00:36:56,840 --> 00:37:01,160 Speaker 1: about those. Nothing came of um. But you're right. Part 674 00:37:01,200 --> 00:37:02,719 Speaker 1: of this trip is also and part of the reason 675 00:37:02,800 --> 00:37:05,600 Speaker 1: why you see a really change in the Middle East 676 00:37:06,200 --> 00:37:09,680 Speaker 1: is you have behind the scenes and not really publicly, 677 00:37:09,800 --> 00:37:12,400 Speaker 1: but because Israel has not normalized in Saudi Arabia, but 678 00:37:12,520 --> 00:37:16,000 Speaker 1: you do have the Arab country way more willing to 679 00:37:16,080 --> 00:37:20,640 Speaker 1: work with Israel because it's really about coalescing against Kien, 680 00:37:21,120 --> 00:37:25,600 Speaker 1: that is their common adversary in the region. Now Bloomberg 681 00:37:25,640 --> 00:37:28,960 Speaker 1: Samery Horde during traveling with the President in Jerusalem, Emory, 682 00:37:29,080 --> 00:37:31,440 Speaker 1: thanks for the update from the Middle East. We want 683 00:37:31,440 --> 00:37:35,200 Speaker 1: to turn now to JP Morgan Chase earnings. The shares 684 00:37:35,320 --> 00:37:38,880 Speaker 1: are falling this morning after second quarter results. Let's bring 685 00:37:38,960 --> 00:37:44,440 Speaker 1: in Bloomberg Intelligence senior analysts for global investment banks, Alison Williams. Alison, 686 00:37:44,480 --> 00:37:46,759 Speaker 1: good morning. It was a miss on revenue, big miss 687 00:37:46,920 --> 00:37:49,320 Speaker 1: on investment banking. What else is standing out to you? 688 00:37:50,600 --> 00:37:53,480 Speaker 1: So the big mess, as you said, is on revenue 689 00:37:53,640 --> 00:37:58,680 Speaker 1: investment banking fees really much lower than expected. And UM, 690 00:37:58,920 --> 00:38:01,120 Speaker 1: you know, we don't have all the all the full 691 00:38:01,200 --> 00:38:04,160 Speaker 1: paperwork that they file, but but I'm wondering if there's 692 00:38:04,239 --> 00:38:08,279 Speaker 1: some kind of leveraged loan right down we that's something 693 00:38:08,360 --> 00:38:11,040 Speaker 1: we expect to see across the banks. Bank of America 694 00:38:11,239 --> 00:38:13,400 Speaker 1: already sort of announced theirs and sometimes you don't know 695 00:38:13,640 --> 00:38:16,840 Speaker 1: the geography of where they put those right downs. But 696 00:38:17,040 --> 00:38:20,800 Speaker 1: FICK trading UM also a bit weaker than expected. But 697 00:38:21,040 --> 00:38:24,600 Speaker 1: in general, UM investors tend not to get overly concerned 698 00:38:24,600 --> 00:38:29,320 Speaker 1: about those types of numbers because UM trading tends tends 699 00:38:29,360 --> 00:38:31,960 Speaker 1: to be volatile UM. And I would say, on the 700 00:38:32,120 --> 00:38:34,600 Speaker 1: on the positive that side of things, net charge offs 701 00:38:34,680 --> 00:38:38,160 Speaker 1: coming in better than expected, the reserve build a little 702 00:38:38,200 --> 00:38:41,320 Speaker 1: bit more than expected, so that might be something that 703 00:38:41,440 --> 00:38:44,160 Speaker 1: investors are concerned about, but certainly it's not. It's not 704 00:38:44,280 --> 00:38:47,600 Speaker 1: the size of the reserve build that we saw last quarter. UM. 705 00:38:47,719 --> 00:38:50,280 Speaker 1: And just to put that into context, the reserve build 706 00:38:50,440 --> 00:38:53,239 Speaker 1: is looking at future losses and that's something that we're 707 00:38:53,280 --> 00:38:57,080 Speaker 1: really focusing on this quarter in terms of what UM, 708 00:38:57,480 --> 00:39:00,640 Speaker 1: what the banks are telling us about their expectation UM 709 00:39:00,719 --> 00:39:05,000 Speaker 1: for future quarters. This quarter credit good, net interest income 710 00:39:05,880 --> 00:39:08,879 Speaker 1: coming in just as around as expected, if not better, 711 00:39:09,280 --> 00:39:12,040 Speaker 1: and capital also coming in a bit better than expected. 712 00:39:12,160 --> 00:39:15,760 Speaker 1: I see the headlines about JP Morgan suspending buy backs, 713 00:39:16,120 --> 00:39:19,279 Speaker 1: but I think that was expected, it wasn't. I mean, 714 00:39:19,400 --> 00:39:22,480 Speaker 1: it seems like that's a lot of what's sparking this 715 00:39:22,800 --> 00:39:26,560 Speaker 1: sell off in early trading. This headline does red headline 716 00:39:26,880 --> 00:39:30,040 Speaker 1: that JP Morgan is temporarily suspending share buy backs. So 717 00:39:30,320 --> 00:39:35,560 Speaker 1: the FED stress tests UM which came out in late June. 718 00:39:36,000 --> 00:39:37,719 Speaker 1: When those came out, I think that was really the 719 00:39:37,760 --> 00:39:41,960 Speaker 1: big surprise in terms of their UM stress capital buffer, 720 00:39:42,040 --> 00:39:47,080 Speaker 1: which determines their capital requirement, really jumped, and so UM, 721 00:39:47,239 --> 00:39:51,839 Speaker 1: I think that was when I was really I think 722 00:39:51,880 --> 00:39:53,600 Speaker 1: it was clear that they were going to have to 723 00:39:53,840 --> 00:39:57,640 Speaker 1: suspend buy backs. UM. You know, perhaps um, perhaps not 724 00:39:57,719 --> 00:39:59,560 Speaker 1: as clear as to some and maybe, but that's why 725 00:39:59,640 --> 00:40:02,680 Speaker 1: the stock is trading off. But um, this is the 726 00:40:02,800 --> 00:40:05,480 Speaker 1: second quarter I think in a row where capital is 727 00:40:05,520 --> 00:40:09,319 Speaker 1: becoming a focus. We have the bonds trading off. Short 728 00:40:09,440 --> 00:40:12,320 Speaker 1: term interest rates are good for net interest income. Higher 729 00:40:12,440 --> 00:40:15,719 Speaker 1: long term interest rates hurts the value of bond valuations 730 00:40:15,840 --> 00:40:19,480 Speaker 1: for the largest banks. That feeds into your capital ratio, 731 00:40:19,600 --> 00:40:23,480 Speaker 1: makes it look weaker in the near term and UM, 732 00:40:23,600 --> 00:40:25,960 Speaker 1: as I said, with the stress test, their capital requirements 733 00:40:26,000 --> 00:40:28,279 Speaker 1: are going up, so I think it's prudent that they 734 00:40:28,320 --> 00:40:30,839 Speaker 1: are putting a plause on buy backs. We heard from 735 00:40:30,920 --> 00:40:33,160 Speaker 1: most of the bank's last quarter that they were stalling 736 00:40:33,200 --> 00:40:35,600 Speaker 1: buy backs or sort of doing lesser buy backs to 737 00:40:35,680 --> 00:40:39,200 Speaker 1: build capital UM. And then this morning JP Morgan just 738 00:40:39,280 --> 00:40:43,759 Speaker 1: confirming that UM they're suspending. Yeah, and the shares down 739 00:40:43,840 --> 00:40:47,920 Speaker 1: four percent as investors continue to digest these numbers. Bloomberg 740 00:40:47,960 --> 00:40:51,640 Speaker 1: Intelligence analysts tell Allison Williams, thanks for keeping us up 741 00:40:51,640 --> 00:40:55,400 Speaker 1: to speed as we continue to watch these numbers. Roll in, Karen, very, Nathan, 742 00:40:55,440 --> 00:40:57,719 Speaker 1: thank you. Six fifty six on Wall Street, we turned 743 00:40:57,719 --> 00:41:00,600 Speaker 1: to Notions Science and Technology Now with a Bloomberg n 744 00:41:00,640 --> 00:41:03,120 Speaker 1: j I T STEM Report. It has brought to you 745 00:41:03,239 --> 00:41:06,319 Speaker 1: by New Jersey Institute of Technology, ranked to top fifty 746 00:41:06,440 --> 00:41:09,480 Speaker 1: national public university by US News and World Report in 747 00:41:09,560 --> 00:41:11,839 Speaker 1: a number of fourteen in a nation on Money's Best 748 00:41:11,920 --> 00:41:14,560 Speaker 1: Colleges list. Learn more at n j I T dot 749 00:41:14,640 --> 00:41:17,640 Speaker 1: e DU and here's just Mega News and Science, Technology, 750 00:41:17,680 --> 00:41:20,880 Speaker 1: Engineering and Math and Tokyo. The government has raised the 751 00:41:20,960 --> 00:41:24,800 Speaker 1: COVID infection alert to its highest level. Almost seventeen thousand 752 00:41:24,880 --> 00:41:27,919 Speaker 1: infections were reported in the city yesterday, compared with thirty 753 00:41:27,960 --> 00:41:31,759 Speaker 1: five July one. So far, the number of severe infections 754 00:41:31,840 --> 00:41:36,120 Speaker 1: remains low. The European Space Agency is celebrating the first 755 00:41:36,200 --> 00:41:38,719 Speaker 1: flight of its Vegas see rocket, which is designed to 756 00:41:38,800 --> 00:41:42,640 Speaker 1: provide more bang for customers book and the increasingly competitive 757 00:41:42,680 --> 00:41:46,160 Speaker 1: business of launching satellites into your orbit. Vegas c as 758 00:41:46,160 --> 00:41:48,520 Speaker 1: an upgrade to the Vega rocket that made its debut 759 00:41:48,640 --> 00:41:52,680 Speaker 1: in twelve. As a launcher specializing in lifting small payloads 760 00:41:52,719 --> 00:41:56,040 Speaker 1: into space, the new rocket can carry heavier payloads and 761 00:41:56,120 --> 00:42:00,439 Speaker 1: its predecessor while burning less fuel. And Tesla is top 762 00:42:00,560 --> 00:42:04,399 Speaker 1: artificial intelligence executive and an architect of its autopilot self 763 00:42:04,520 --> 00:42:08,440 Speaker 1: driving system, is planning to depart. The maker of electric vehicles. 764 00:42:08,760 --> 00:42:12,920 Speaker 1: Andre Carpathi, who joined Tesla in sev announced his departure 765 00:42:12,920 --> 00:42:16,200 Speaker 1: in a series of tweets yesterday. Carpathi led the computer 766 00:42:16,360 --> 00:42:19,960 Speaker 1: vision teams overseeing the technology at the core of autopilot, 767 00:42:20,160 --> 00:42:23,200 Speaker 1: in addition to groups responsible for data labeling and deployment 768 00:42:23,239 --> 00:42:25,800 Speaker 1: of the feature. And that's the Bloomberg and j I 769 00:42:25,920 --> 00:42:31,040 Speaker 1: t STEM report. And again, futures this morning are moving 770 00:42:31,440 --> 00:42:34,879 Speaker 1: lower and the tenure Treasuries down six thirty seconds, held 771 00:42:34,920 --> 00:42:37,839 Speaker 1: two point nine of five per cent, and continue to watch. 772 00:42:37,880 --> 00:42:40,440 Speaker 1: Shares at JP Morgan Chase this morning, down about four 773 00:42:40,520 --> 00:42:43,640 Speaker 1: percent in early trading after reporting earnings. More ahead on 774 00:42:43,719 --> 00:42:47,120 Speaker 1: Bloomberg surveillance for Nathan Hager. I'm Karen Moscow, and this 775 00:42:47,520 --> 00:42:48,160 Speaker 1: is Bloomberg