WEBVTT - Bloomberg Daybreak: June 30, 2022 - Hour 2 (Radio) 0:00:02.440 --> 0:00:05.600 Live from the Bloomberg Interacted Burger Studios. This is Bloomberg 0:00:05.720 --> 0:00:10.040 day Break for Thursday June. Coming up this hour. US 0:00:10.119 --> 0:00:12.719 stocks has had to wrap up their worst first half 0:00:12.760 --> 0:00:16.520 since nineteen seventy. China's economy shows signs of improvement. The 0:00:16.640 --> 0:00:19.960 January six Committee issues the subpoena to former President Trump's 0:00:19.960 --> 0:00:23.200 White House Council at airlines under pressure from lawmakers. Is 0:00:23.280 --> 0:00:27.240 a holiday weekend approaches. Mayor Adams reacts to another deadly 0:00:27.320 --> 0:00:29.639 shooting in New York. Plus it's a changing of the 0:00:29.640 --> 0:00:32.640 guards today at the U. S. Supreme Court. I'm Michael Blamer. 0:00:32.720 --> 0:00:36.199 More ahead, and I'm Scott Sadenburg. The Yankees coming off 0:00:36.200 --> 0:00:38.800 a wing. Get ready for a Houston showdown. Plus it 0:00:38.920 --> 0:00:43.480 update on Wimbledon. I'll have that more coming up in sports. 0:00:44.440 --> 0:00:48.400 That's All's train ahead on Bloomberg Daybreak on Bloomberg Eleiving 0:00:48.440 --> 0:00:52.960 Free on New York, Bloomberg one, Washington, d C, Bloomberg 0:00:52.960 --> 0:00:56.680 one oh six one, Boston, Bloomberg nine sixties and Francisco, 0:00:57.160 --> 0:01:00.160 Syrias x AM one nineteen and around the world on 0:01:00.320 --> 0:01:03.600 Bloomberg Radio dot Com and via the Bloomberg Business App. 0:01:07.640 --> 0:01:10.680 Good morning, I'm Nathan Hagart and I'm Karen. Moscow and 0:01:10.800 --> 0:01:13.880 US dock in next futures are lower this morning. We're 0:01:13.880 --> 0:01:15.880 coming up to six oh one on Wall Street, and 0:01:15.920 --> 0:01:18.279 we checked the markets every fifteen minutes throughout the trading 0:01:18.360 --> 0:01:21.959 day on Bloomberg and right now, SNP futures are down 0:01:22.040 --> 0:01:25.800 forty eight points down, futures down three hundred, and NASDAG 0:01:25.840 --> 0:01:29.240 futures down one hundred eighty eight or one point six percent. 0:01:29.319 --> 0:01:32.000 The decks in Germany is down two point one percent. 0:01:32.480 --> 0:01:35.600 Nine x Scrude oil is moving lower at a hundred 0:01:35.680 --> 0:01:37.920 nine dollars sixty seven cents of barrel, and the ten 0:01:38.000 --> 0:01:40.399 year treasury up nine thirty seconds, you know, three point 0:01:40.400 --> 0:01:42.759 oh five percent, and the yield on the two year 0:01:42.840 --> 0:01:45.920 two point nine percent. The euro one point oh four 0:01:46.040 --> 0:01:49.160 three zero against the dollar, Nathan Karen. The drop in 0:01:49.240 --> 0:01:51.760 futures comes as we prepare for the final trading day 0:01:51.760 --> 0:01:53.840 of the first half, and what a rough one it 0:01:53.920 --> 0:01:56.760 has been for equity investors. The SMP five hundred is 0:01:56.800 --> 0:02:00.720 on course for its worst first half since the index 0:02:00.800 --> 0:02:04.080 is down almost for the year. Thomas Kennedy as Chief 0:02:04.120 --> 0:02:07.920 investment Strategist for Global Wealth Management at JP Morgan securities. 0:02:08.200 --> 0:02:11.920 The market is trying to get the handoff done between 0:02:11.919 --> 0:02:16.880 worries about inflation two worries about growth. Um, these are 0:02:16.960 --> 0:02:19.320 challenges that are presented by the Fed. But really and 0:02:19.400 --> 0:02:21.520 so we can do that handoff, I think it'll be 0:02:21.639 --> 0:02:27.239 very hard for risk free assets to price with less volatility. JP. 0:02:27.320 --> 0:02:30.679 Morgan Securities chief investment strategist Thomas Kennedy says, in order 0:02:30.720 --> 0:02:32.959 for investors to be more confident, they need to see 0:02:33.000 --> 0:02:37.000 inflation go down. Nathan, we're seeing the selling spread overseas. 0:02:37.040 --> 0:02:38.959 This morning, we had a very latest live at the 0:02:38.960 --> 0:02:41.600 Bloomberg's You and Potts in London. Good morning You and 0:02:41.960 --> 0:02:44.360 good morning count and Nathan. A bad end to a 0:02:44.520 --> 0:02:47.600 terrible quarter. A sea of read on traders Bloomberg screen 0:02:47.680 --> 0:02:50.520 this morning, with three hours into the European trading day 0:02:50.520 --> 0:02:53.680 and the stocks hundred off one point six percent. That 0:02:53.760 --> 0:02:57.079 extends it's year to day dropped to almost seventeen percent 0:02:57.480 --> 0:02:59.880 on the final day of the first half of the year. 0:03:00.160 --> 0:03:03.160 Every single sect allow it today with carmakers, banks and 0:03:03.200 --> 0:03:05.760 tech stalks getting the worst of it. Live in London, 0:03:05.800 --> 0:03:08.040 Immuneport back day break you in the story is how 0:03:08.120 --> 0:03:10.120 much better in Asia? The m s c I Asia 0:03:10.120 --> 0:03:13.200 Pacific Index has finished its fourth straight quarter in the red. 0:03:13.240 --> 0:03:16.720 That's despite positive economic data out of China. The country's 0:03:16.720 --> 0:03:20.280 factory activity expanded in June. Bloomberg Daybreak Asia anchor Brian 0:03:20.320 --> 0:03:23.120 Curtis has more from Hong Kong. The official p m 0:03:23.120 --> 0:03:26.320 I rose to expansion mode with a fifty point to reading, 0:03:26.400 --> 0:03:29.600 but short of the fifty point five estimates. That said, 0:03:29.600 --> 0:03:32.919 the non manufacturing gauge blew away estimates, coming in at 0:03:32.919 --> 0:03:36.200 fifty four point seven, well above the forecast of fifty 0:03:36.240 --> 0:03:41.040 and a half. The economy is gradually recovering from COVID restrictions. Still, 0:03:41.200 --> 0:03:44.400 the recovery is fragile, as President She sticks to his 0:03:44.520 --> 0:03:49.040 COVID zero strategy in Hong Kong. Brian Curtis Bloomberg Daybreak, Brian, 0:03:49.080 --> 0:03:51.520 thank you. Oil heading for its first monthly decline since 0:03:51.560 --> 0:03:55.320 November as OPEC ministers prepare together to discuss supply policy. 0:03:55.560 --> 0:03:58.920 Escalating fears over an economic slowdown indended oil this month. 0:03:58.960 --> 0:04:02.080 As interest rates raw checking prices now nim Ex screwed 0:04:02.120 --> 0:04:04.560 oils down to tens per cent or twenty one cents 0:04:04.560 --> 0:04:06.840 at a hundred nine dollars fifty seven cents of barrel 0:04:07.080 --> 0:04:09.360 Brent is down about two ten percent at a hundred 0:04:09.400 --> 0:04:12.640 sixteen dollars six cents. OH. Despite this month's decline care 0:04:12.680 --> 0:04:16.120 in the recent surgeon, oil has elevated inflation around the world, 0:04:16.160 --> 0:04:19.720 and FED chair J Palell says controlling prices remains his priority. 0:04:20.200 --> 0:04:25.160 Our focus is very intensely on setting policy in order 0:04:25.200 --> 0:04:28.160 to get inflation down to two. That's what we're working on. 0:04:28.279 --> 0:04:31.680 That's our We understand that that's our primary focus right now. 0:04:31.839 --> 0:04:34.440 FED Chair J pal made the comments to Bloomberg's Francy 0:04:34.520 --> 0:04:38.640 Laquax in a panel discussion at the ECB Forum in Portugal. Well, Nathan, 0:04:38.640 --> 0:04:41.080 this is the final day of the NATO summit in Spain. 0:04:41.160 --> 0:04:44.320 At the gathering, allies have labeled Russia the most significant 0:04:44.360 --> 0:04:47.559 and direct threat to NATO security Bloomberry and Maria Today 0:04:47.600 --> 0:04:51.279 OH has more from Madrid. They say NATO allies believe 0:04:51.320 --> 0:04:54.560 that Russia is seeking to re establish spear of influence 0:04:54.600 --> 0:04:59.520 and control through cohressions, serversion, aggression and annexation. That is 0:04:59.560 --> 0:05:01.960 for russ Now on top of this is a line 0:05:02.000 --> 0:05:05.839 on China which is not as aggressive as not as explicit, 0:05:05.920 --> 0:05:08.120 but it does say that China is a country that 0:05:08.160 --> 0:05:12.039 could be a challenge to future security, and Bloomberry's Maria 0:05:12.080 --> 0:05:15.600 Todeo says NATO also expressed disappointment in China for not 0:05:15.720 --> 0:05:18.880 condemning the war in Ukraine. Back in Washington, Careen, the 0:05:18.920 --> 0:05:21.839 House investigation into the attack at the US Capital is 0:05:21.920 --> 0:05:24.919 ramping up, as Bloomberg said, backs to reports, the January 0:05:24.920 --> 0:05:28.200 six Committee has issued another subpoena, this time to former 0:05:28.200 --> 0:05:32.000 White House Council Pat Sippoloni. This comes after the testimony 0:05:32.000 --> 0:05:35.360 of Mark Meadows aid at Cassidy Hutchinson that Sippoloni pushed 0:05:35.440 --> 0:05:37.840 back on Donald Trump's efforts to go to the capital. 0:05:38.160 --> 0:05:40.800 Vice Chairless Cheney says that committee has evidence that Mr 0:05:40.839 --> 0:05:46.279 Cippaloni repeatedly raised legal and other concerns about Trump activities. 0:05:46.520 --> 0:05:50.039 She says, while the Select Committee appreciates Mr Cippaloni's earlier 0:05:50.120 --> 0:05:53.719 informal engagement, the committee needs to hear from him on 0:05:53.880 --> 0:05:56.840 the record, as other former White House counsels have done 0:05:56.839 --> 0:06:00.600 in other congressional investigations. In San franc Cisco, I'm at 0:06:00.600 --> 0:06:03.040 Baxter Bloomberg daybreak, All right, and thank you for heading 0:06:03.040 --> 0:06:05.760 into a busy travel weekend for the fourth of July holiday, 0:06:05.800 --> 0:06:08.280 and now the Transportation Department is under new pressure to 0:06:08.360 --> 0:06:12.240 punish airlines for flight disruptions. Bloombergs Charlie Pillett brings us 0:06:12.240 --> 0:06:16.160 the details post COVID demand and a labor shortage are 0:06:16.240 --> 0:06:20.839 straining travel schedules. US air carriers have struggled to manage demand, 0:06:21.240 --> 0:06:23.880 with three and a half percent of flights canceled a 0:06:23.960 --> 0:06:27.520 nearly delayed during the first four months of the year. 0:06:27.880 --> 0:06:30.839 For months, Senator Bernie Sanders once finds of up to 0:06:30.960 --> 0:06:35.800 fifty five thousand dollars, while Airlines for America, which represents 0:06:35.880 --> 0:06:40.400 major carriers, says its members are doing quote everything within 0:06:40.560 --> 0:06:45.039 their power to ensure reliable flights in New York. Charlie Pellet, 0:06:45.080 --> 0:06:47.320 Bloomberg day break. All right, Charlie, thank you. We're also 0:06:47.320 --> 0:06:51.359 seeing travel disruptions overseas this week. London's Heathrow Airport and 0:06:51.360 --> 0:06:54.560 the Charle Degall in Paris are reducing flights. Heathrow asked 0:06:54.600 --> 0:06:57.400 airlines to cut thirty flights in their schedules this morning 0:06:57.680 --> 0:07:00.400 on concerned peak passenger numbers will exceed the levelly can 0:07:00.440 --> 0:07:03.360 safely handle. And in France, the Civil Aviation Authority there 0:07:03.400 --> 0:07:06.080 has ordered a seventeen percent reduction and flights out of 0:07:06.080 --> 0:07:10.560 Paris because firefighters are on strike. SMP futures are down 0:07:10.680 --> 0:07:13.239 fifty one points. That is a drop of one point 0:07:13.320 --> 0:07:16.680 three percent. Straight ahead your latest local headlines and a 0:07:16.800 --> 0:07:25.720 check of sports. This is Bloomberg. Man. It's now six 0:07:25.760 --> 0:07:27.920 oh seven on Wall Street where it's sixty nine degrees 0:07:27.960 --> 0:07:30.720 in Central Park and delays are building on the George 0:07:30.720 --> 0:07:33.360 Washington Bridge. There's a broken down tractor trailer on the 0:07:33.400 --> 0:07:36.920 upper level. That's not good. Details coming up the traffic First, 0:07:36.960 --> 0:07:38.600 Michael Barr with what else is going on in New 0:07:38.640 --> 0:07:40.960 York and around the world. Michael, thank you very much, Nathan. 0:07:41.000 --> 0:07:43.720 Authorities in New York City are looking for a gunman 0:07:43.760 --> 0:07:46.480 who murdered a twenty year old woman pushing a baby 0:07:46.560 --> 0:07:49.440 stroller last evening on the Upper East Side of Manhattan. 0:07:49.800 --> 0:07:54.280 It happened on Lexington Avenue st. The suspect is described 0:07:54.320 --> 0:07:57.200 as a male dressed in a hoodies, wet pants, and 0:07:57.360 --> 0:08:01.640 baseball cap, all in black. Mayor Accadam says his administration 0:08:01.680 --> 0:08:04.320 is working hard to combat gun violence, but the city 0:08:04.320 --> 0:08:07.559 needs help. We're going to find this person, this gift 0:08:07.600 --> 0:08:12.120 guilty of this horrific crime. We're going to find him 0:08:12.160 --> 0:08:15.119 and bring him to justice. We didn't need to justice 0:08:15.120 --> 0:08:19.120 assist him to make sure this innocent person received that 0:08:19.320 --> 0:08:23.080 justice that we're asking for. Mayor Adams says the victim 0:08:23.200 --> 0:08:25.559 was shot by the suspect in the head at point 0:08:25.640 --> 0:08:28.560 blank range. Today is the last day of the U. 0:08:28.640 --> 0:08:32.000 S Supreme Court issues opinions. The court will design how 0:08:32.080 --> 0:08:34.800 much authority the e p A has to regulate emissions 0:08:34.800 --> 0:08:39.319 from power plants. Another opinion will impact immigration. Also today, 0:08:39.440 --> 0:08:43.080 Justice Stephen Bryan retires and will formally pass the swords 0:08:43.160 --> 0:08:46.600 to Catangi Brown Jackson, becoming the first black woman on 0:08:46.640 --> 0:08:49.680 the High Court. New Jersey lawmakers have passed a record 0:08:49.760 --> 0:08:53.280 fifty point six billion dollar budget, sending it to Governor 0:08:53.280 --> 0:08:56.240 Phil Murphy's desk. The budget is nine percent bigger than 0:08:56.320 --> 0:09:00.000 last year's and comes after better than expected tax returns 0:09:00.200 --> 0:09:03.280 and bigger state conference. The death told from the deadliest 0:09:03.320 --> 0:09:06.320 smuggling case in US history rose to fifty three. The 0:09:06.400 --> 0:09:08.800 victims were found Monday in the back of a sweltering 0:09:08.840 --> 0:09:12.319 truck in San Antonio. Four men faced charges R and B. 0:09:12.520 --> 0:09:15.439 Star R. Kelly was sentenced to thirty years in prison. 0:09:15.679 --> 0:09:18.480 The fifty five year old singer was convicted of racketeering 0:09:18.559 --> 0:09:22.240 and sex trafficking last year. Lozette Martinez and r Kelly, 0:09:22.240 --> 0:09:25.720 accuser describe how she finally got away. I looked in 0:09:25.720 --> 0:09:28.360 the mirror and I didn't recognize myself, and I didn't 0:09:28.360 --> 0:09:31.560 like myself anymore. And I knew that if I didn't 0:09:31.600 --> 0:09:34.040 get out, neither he was gonna kill me or I 0:09:34.040 --> 0:09:37.240 was gonna kill myself. Think you got that dark? Was 0:09:37.240 --> 0:09:41.040 thatte Martinez spoke to ABC. Israel's parliament voted today to 0:09:41.080 --> 0:09:43.560 dissolve itself and send the country to the polls in 0:09:43.600 --> 0:09:46.560 November for the fifth time in less than four years. 0:09:47.080 --> 0:09:50.720 Yaron Lapide, Israel's foreign minister, will become the country's caretaker 0:09:50.760 --> 0:09:53.800 prime Minister. Global News twenty four hours a day on 0:09:53.840 --> 0:09:57.120 air and on Bloomberg Quicktake, powered by more than twenty 0:09:57.200 --> 0:10:00.000 seven hundred journalists and analysts more than a D twenty country. 0:10:00.040 --> 0:10:03.200 He's Michael Barr and this is Bloomberg, Nathan. Thank you Michael. 0:10:08.200 --> 0:10:10.600 And as we come up to six ten on Wall Street, 0:10:10.640 --> 0:10:14.560 we checked Bloomberg Sports with Scott Seidenberg. Thanks Nathan. The 0:10:14.640 --> 0:10:17.800 Yankees using the long ball to help bail out Jamison 0:10:17.840 --> 0:10:21.760 tayone yesterday and beat the A's five three. Tayone allowed 0:10:21.760 --> 0:10:23.360 three runs in the top of the first inning, but 0:10:23.400 --> 0:10:25.559 Aaron Judge quickly got two back with a homer in 0:10:25.600 --> 0:10:27.760 the bottom of the frame, and then Jean Carlos Stanton 0:10:27.760 --> 0:10:30.040 put the Yankees on top with a three run blast 0:10:30.120 --> 0:10:33.640 in the third inning. The Yankees are five and one 0:10:33.760 --> 0:10:36.960 when Judge and Stanton homer in the same game, including 0:10:37.040 --> 0:10:39.800 nine and oh this season. With the wind, the Bombers 0:10:39.800 --> 0:10:42.800 improved their records at fifty six and twenty, matching the 0:10:43.440 --> 0:10:46.600 team and the two thousand one Mariners for the best 0:10:46.800 --> 0:10:50.560 seventies six game start. Yankees will play one game in 0:10:50.720 --> 0:10:53.720 Houston tonight before heading to Cleveland for a weekend series. 0:10:53.840 --> 0:10:57.040 Luis Severino will get the start. The Mets meanwhile, lost 0:10:57.080 --> 0:11:00.160 a pitchers duel to the Astros to nothing yesterday. Stin 0:11:00.240 --> 0:11:03.400 Berlander when eight shutout innings allowing just two hits, and 0:11:03.520 --> 0:11:06.520 Taiwan Walker matched him going seven and a third shutout 0:11:06.520 --> 0:11:09.760 innings allowing just the four hits. Jason Castro's two run 0:11:09.840 --> 0:11:11.480 homer off of Drew Smith on the top of the 0:11:11.559 --> 0:11:14.360 ninth was the difference. The Mets are off tonight. They 0:11:14.360 --> 0:11:18.000 host the Rangers tomorrow night. At Wimbledon, Novak Djokovic cruised 0:11:18.040 --> 0:11:21.080 in straight sets. Three seed Casper Rude was upset by 0:11:21.240 --> 0:11:25.160 Ugo Umbert, and American John isn'er defeated two time champion 0:11:25.200 --> 0:11:28.760 Andy Murray the second round exit the earliest exit for 0:11:28.840 --> 0:11:31.719 Murray at the All England Club. I'm Scott Siedenburg with 0:11:31.720 --> 0:11:35.480 Bloomberg Sports. Nathan Okay, Scott, thank you. Right now, SNP 0:11:35.720 --> 0:11:38.679 futures are down forty eight points, the drop of one 0:11:38.720 --> 0:11:41.600 point three percent. Down futures down one percent or three 0:11:41.640 --> 0:11:45.120 hundred nine points. NASDAC futures leading the declines, down a 0:11:45.200 --> 0:11:48.520 hundred points for a drop of one point six percent 0:11:49.040 --> 0:11:52.080 as we get set to close the books on the 0:11:52.080 --> 0:11:58.120 worst first half for U S stocks since Danny Burger, 0:11:58.200 --> 0:12:02.600 Bloomberg Markets correspondent TV anchor for Bloomberg joins us next 0:12:02.679 --> 0:12:08.400 on this market. This is Bloomberg Bloomberg eleven three oh weather, 0:12:08.480 --> 0:12:10.440 sunshine and a high in your ninety today. It's gonna 0:12:10.440 --> 0:12:15.120 be hot, humid tomorrow with a highr mid eighties for Saturday, 0:12:15.160 --> 0:12:18.400 with occasional showers and storms. Right now seventy degrees in 0:12:18.440 --> 0:12:25.200 Central Park. Markets headlines and breaking news twenty four hours 0:12:25.200 --> 0:12:28.199 a day at Bloomberg dot Com, The Bloomberg Business at 0:12:28.280 --> 0:12:37.559 and at Bloomberg Quick Tape. He's a Bloomberg Business lash 0:12:38.000 --> 0:12:41.240 and I'm Karen Moscow. US Dock index futures are signaling 0:12:41.280 --> 0:12:45.079 more losses today after central bankers issued warnings on inflation 0:12:45.160 --> 0:12:48.120 and feel concerned that aggressive policy will end in recession. 0:12:48.280 --> 0:12:50.520 If we check the markets every fifteen minutes throughout the 0:12:50.520 --> 0:12:54.280 trading day on Bloomberg, SNP futures down fifty one points, 0:12:54.360 --> 0:12:57.440 Dow future is down three d thirty three, and NASDACK 0:12:57.480 --> 0:13:00.280 futures down one ninety seven. It's down up at one 0:13:00.320 --> 0:13:03.160 point seven percent. The decks in Germany's down two point 0:13:03.240 --> 0:13:06.480 four percent. Pen Your treasury up nine thirty seconds, yell 0:13:06.520 --> 0:13:08.920 three point oh five percent. The yield on the two 0:13:09.000 --> 0:13:12.439 year is at two point nine nine percent. Nive excret 0:13:12.480 --> 0:13:14.560 oil down a tenth of upper cent or thirteen cents 0:13:14.559 --> 0:13:16.720 at a hundred nine dollars sixty five cents of barrel 0:13:16.920 --> 0:13:19.240 co makes goal down three tenths percent or five dollars 0:13:19.280 --> 0:13:22.559 twenty cents at eighteen twelve thirty announced the euro one 0:13:22.600 --> 0:13:25.199 point oh four to zero against the dollar. British found 0:13:25.200 --> 0:13:27.360 one point to one to seven, the n at one 0:13:27.400 --> 0:13:30.920 thirty six point to seven, and Bitcoin this morning down 0:13:31.160 --> 0:13:34.960 five point four percent at nineteen thousand, one hundred dollars. 0:13:35.160 --> 0:13:37.680 That's a Bloomberg business flash. Now here's Michael Barr with 0:13:37.760 --> 0:13:40.319 more on most going on around the world. Michael Karen, 0:13:40.360 --> 0:13:43.080 thank you very much. The House committee investigating last year's 0:13:43.080 --> 0:13:46.480 assault on the US capital says it has peanut former 0:13:46.520 --> 0:13:50.439 White House Consul Pat Siboloni to appear on July six 0:13:50.600 --> 0:13:54.440 for a closed door deposition. Sipoloni has emerged in recent 0:13:54.480 --> 0:13:57.760 weeks as a subject of interest by committee members, who 0:13:57.800 --> 0:13:59.640 say he was at the center of a number of 0:13:59.640 --> 0:14:03.880 events related to the attack. On January six, Israel's parliament 0:14:03.880 --> 0:14:07.000 has voted to dissolve itself, singing the country to the 0:14:07.040 --> 0:14:09.880 polls for the fifth time in less than four years. 0:14:10.240 --> 0:14:12.839 In baseball, the Yankees beat the A's five three. The 0:14:12.920 --> 0:14:16.040 Mats lost, along with the Nationals, Orioles and Giants. The 0:14:16.080 --> 0:14:19.280 Red Sox one Global News twenty four hours a day 0:14:19.320 --> 0:14:22.600 on air and on Bloomberg quick Take, powered by more 0:14:22.640 --> 0:14:25.160 than twenty seven hundred journalist and analysts, more than a 0:14:25.240 --> 0:14:30.040 hundred twenty countries. Hi, Michael Barr, And this is Bloomberg. Nathan. Okay, Michael, 0:14:30.080 --> 0:14:32.560 thank you. It is six nineteen on Wall Street Live 0:14:32.640 --> 0:14:36.920 from the Bloomberg Interactive Broker studios. This is Bloomberg Daybreak 0:14:36.960 --> 0:14:39.120 as we get ready to close the books on a 0:14:39.320 --> 0:14:42.840 very rough first half for equity investors. Were joined this 0:14:42.880 --> 0:14:46.840 morning by Bloomberg TV anchor and markets correspondent Danny Burger 0:14:46.840 --> 0:14:50.600 with us life from our studios in London. Danny, should 0:14:50.600 --> 0:14:53.800 we get into the superlatives about just how bad it's 0:14:53.800 --> 0:14:57.160 been if you're long stocks man, Yeah, it's it's been 0:14:57.200 --> 0:15:00.240 really bad. Not not a lot of places to take shelter. Um, 0:15:00.240 --> 0:15:02.840 we're start to the year since nineteen sixty two, which 0:15:02.840 --> 0:15:09.120 I think is probably the most juicy and depressing superlative. Um. 0:15:09.200 --> 0:15:10.600 And look, it's not like you could hide out in 0:15:10.640 --> 0:15:12.880 bonds either, I mean worst, we're on track for the 0:15:12.880 --> 0:15:15.120 worst year in bonds also, so I mean just all around, 0:15:15.200 --> 0:15:18.720 unless you're talking about commodities. Um, just a really bad 0:15:18.720 --> 0:15:21.360 seart to the year. Yeah, certainly has been. And when 0:15:21.440 --> 0:15:25.160 you look at futures this morning, as deep in the 0:15:25.200 --> 0:15:27.600 red as they are right now, you have to wonder 0:15:27.680 --> 0:15:31.400 where things go as we enter the second half with 0:15:31.720 --> 0:15:35.600 so much fear in this market around inflation and the 0:15:35.720 --> 0:15:39.880 risk of a recession. Yeah, exactly, And and you know 0:15:39.960 --> 0:15:42.560 some of the action we might be seen today. Of course, 0:15:42.560 --> 0:15:46.040 it is quarter and month end, first half end, so 0:15:46.080 --> 0:15:49.000 there certainly is some rebouncing going on. But if everyone's 0:15:49.040 --> 0:15:51.200 fleeing equities, it does kind of show you that managers 0:15:51.200 --> 0:15:52.920 are trying to get out of the stock market. So 0:15:53.000 --> 0:15:56.400 when they report their holdings for going into this quarter, 0:15:56.520 --> 0:15:58.680 their clients aren't saying, hey, why why are you in 0:15:58.800 --> 0:16:01.400 stocks when they've just been absolutely pummeled. And I think 0:16:01.800 --> 0:16:03.720 that's kind of part of the problem, is this question 0:16:03.760 --> 0:16:06.560 we ask of whether we've seen capitulation or not. Sentiment 0:16:06.640 --> 0:16:10.800 is certainly bad enough to suggest that we're at max bearishness, 0:16:11.320 --> 0:16:13.360 but a lot of folks out there saying we could 0:16:13.400 --> 0:16:17.520 have further to go. We haven't priced in earnings deterior ratings, 0:16:17.560 --> 0:16:20.520 so that's another thing that could take equity markets down. Um, 0:16:20.560 --> 0:16:23.800 And we haven't totally priced in the prospect of a recession. 0:16:23.840 --> 0:16:26.360 So yeah, things look bad, Um, I guess it could 0:16:26.360 --> 0:16:29.160 always be worse. Yeah, And we've heard from one veteran 0:16:30.000 --> 0:16:33.200 investor who spoke to Bloomberg just this week, saying he 0:16:33.240 --> 0:16:35.800 could see the SNP five hundred dropping as low as 0:16:35.880 --> 0:16:40.600 thirty one hundred, where toty hundred handle right now? I mean, 0:16:40.920 --> 0:16:44.400 what's the sense out there on Wall Street Global, Wall 0:16:44.440 --> 0:16:47.720 Street as we get into the second half about where 0:16:47.760 --> 0:16:50.640 things could go from here, what kind of levels we 0:16:50.720 --> 0:16:55.360 could be seeing. I think it really is divided, um 0:16:55.440 --> 0:16:57.840 in terms of whether you think there will be a 0:16:57.920 --> 0:17:01.240 recession or not. Um. You know, I I kind of 0:17:01.280 --> 0:17:03.960 come out on this of Look, the FED in some 0:17:04.040 --> 0:17:08.000 ways wants wealth destructions. The destruction they're not going to 0:17:08.040 --> 0:17:10.639 step in because the stock market is so bad. So 0:17:10.800 --> 0:17:14.040 recession or not kind of a feature, not a bug, 0:17:14.080 --> 0:17:15.919 of what the Fed is trying to do to get 0:17:16.359 --> 0:17:19.399 um less spending, to have demand in line with supply. 0:17:19.880 --> 0:17:23.040 Are things like stocks and bonds selling off? So I 0:17:23.080 --> 0:17:27.600 think just sort of a feature of this inflation combating FED. 0:17:28.000 --> 0:17:30.640 It stands to reason that stocks could sell off from 0:17:30.680 --> 0:17:33.159 here regardless of whether we have a recession or not. Now, 0:17:33.200 --> 0:17:36.720 if we have a recession, it could sell off more deeply. UM. 0:17:36.800 --> 0:17:39.080 So that's percolating on Wall Street. But I should say 0:17:39.080 --> 0:17:41.200 the part of Wall Street, the cell side analysts looking 0:17:41.240 --> 0:17:44.240 at individual companies. There's a great story out on Bloomberg 0:17:44.280 --> 0:17:47.280 this morning basically saying that they haven't changed their estimates 0:17:47.840 --> 0:17:50.679 for earnings for your end for these individual stocks, and 0:17:50.680 --> 0:17:53.679 you get these ridiculous numbers expecting stocks to rally some 0:17:54.840 --> 0:17:59.480 into your end. So there's still some optimism there, how founded. 0:17:59.520 --> 0:18:03.280 That is an Yeah, that's interesting to bring into the conversation, Danny, 0:18:03.320 --> 0:18:05.879 because you've been hearing quite a lot from many analysts 0:18:05.920 --> 0:18:10.400 about where earnings expectations are right now, thinking that they're 0:18:10.480 --> 0:18:12.560 so high that they're going to have to come down 0:18:12.880 --> 0:18:15.119 as we get into the third quarter and the rest 0:18:15.119 --> 0:18:18.119 of this year. What kind of headwind could that pose 0:18:18.240 --> 0:18:23.359 for stocks as analysts potentially bring down their expectations for 0:18:23.600 --> 0:18:26.239 how much companies are going to earn going forward. It's 0:18:26.240 --> 0:18:29.480 definitely large. One Goldman Sachs out this week saying that 0:18:29.800 --> 0:18:33.240 the expectations are unrealistic. We haven't priced in margins. I 0:18:33.240 --> 0:18:35.439 think this is the real issue because last year we 0:18:35.440 --> 0:18:38.400 talked about yes, inflation is bad, but companies are still 0:18:38.440 --> 0:18:41.679 able to charge more. They have pricing power. We're starting 0:18:41.680 --> 0:18:44.760 to see signs of factor sharating. Margins not as strong. 0:18:45.040 --> 0:18:49.560 M r H the specialty furnishing. Furnishing company had an 0:18:49.560 --> 0:18:53.840 earnings report out late yesterday saying that they're seeing less 0:18:53.880 --> 0:18:57.040 spending um inflation is finally starting to hit the consumers. 0:18:57.119 --> 0:19:00.600 That's a totally new prospect. We have to grapple with 0:19:00.840 --> 0:19:03.600 is do these companies still have pricing power or their 0:19:03.600 --> 0:19:07.320 margins gonna get eaten away because people are struggling with 0:19:07.440 --> 0:19:09.280 high prices and they're just not gonna be willing to 0:19:09.320 --> 0:19:12.160 spend as much. All right, thanks for this, Danny, Always 0:19:12.200 --> 0:19:15.520 great having on with us. Danny Burger, our markets correspondent, 0:19:15.800 --> 0:19:20.399 Bloomberg TV anchor with us this morning from our studios 0:19:20.440 --> 0:19:23.080 in London. Let's just get a market check here, getting 0:19:23.080 --> 0:19:26.280 ready for this final day of the second half, and 0:19:26.400 --> 0:19:28.760 it's a sea of red. We have SMP futures right 0:19:28.800 --> 0:19:31.320 now down forty nine points, a drop of one point 0:19:31.359 --> 0:19:35.200 three percent. Dow futures are lower by three d sixteen points, 0:19:35.520 --> 0:19:39.000 NASDAC futures leading the declines, down a hundred eighty eight points. 0:19:39.000 --> 0:19:42.600 That's a drop of one point six percent. Even worse 0:19:42.760 --> 0:19:46.600 losses in Europeans indexes, with the DACKS and the CAC 0:19:46.840 --> 0:19:50.560 in Paris both down two point three percent. Ten Your 0:19:50.560 --> 0:19:53.000 Treasury is up nine thirty seconds, the yield three point 0:19:53.119 --> 0:19:55.360 zero five percent, and the yield on the two year 0:19:55.480 --> 0:20:00.439 right now just around three percent. Your list stening to 0:20:00.520 --> 0:20:08.960 Bloomberg day Break. Bloomberg day Break is brought to you 0:20:08.960 --> 0:20:11.760 by Hofst University's Frank Gie's Art School of Business, top 0:20:11.800 --> 0:20:14.960 ranked online NBA program with a real world foundation. Learn 0:20:15.040 --> 0:20:18.280 more at Hofstra dot e d U slash go grad. 0:20:21.960 --> 0:20:26.520 Broadcasting live from the Bloomberg Interacted Broker Studio in New York, 0:20:26.600 --> 0:20:30.359 Bloomberg E loving free to Washington, d C, Bloomberg nine 0:20:30.200 --> 0:20:33.080 nine one to Boston, Bloomberg one O six one to 0:20:33.160 --> 0:20:36.920 San Francisco, Bloomberg nine sixty to the country Sirius XM 0:20:36.960 --> 0:20:39.239 to A one nine team, and around the globe the 0:20:39.240 --> 0:20:44.280 Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak, 0:20:49.600 --> 0:20:52.080 six thirty on Wall Street. Good morning, I'm Nathan Hager 0:20:52.480 --> 0:20:55.240 and I'm Karen Moscow. We're just about three hours away 0:20:55.320 --> 0:20:57.480 from the open of US trading. Time for the five 0:20:57.480 --> 0:20:59.760 things that you need to notice start your day. Brought 0:20:59.760 --> 0:21:03.920 to by Interactive Brokers. Interactive Brokers Simple i v K 0:21:04.040 --> 0:21:07.320 are Global Trader app depositing your local currency and trade 0:21:07.359 --> 0:21:10.320 stocks in your US, Europe, in Asia. Start your free 0:21:10.320 --> 0:21:14.120 trial at ibkr dot com slash Global Trader First. US 0:21:14.200 --> 0:21:16.320 futures are falling as we enter the final trading day 0:21:16.320 --> 0:21:19.359 of a rough first half. Victoria Green, chief investment officer 0:21:19.440 --> 0:21:22.400 at G squared Private Wealth, So, the biggest economic risk 0:21:22.480 --> 0:21:25.800 now is no longer inflation. I think recession is a 0:21:25.840 --> 0:21:28.479 bigger risk by now because inflation is quite thin now right. 0:21:28.800 --> 0:21:31.280 We're halloware We're in a high in place in their environment. 0:21:31.320 --> 0:21:34.320 People are adjusting their budgets. But recessions was going to 0:21:34.359 --> 0:21:37.160 turn this market over because people are starting to change 0:21:37.160 --> 0:21:40.359 their buying habit. Victoria Green at G squared Private Wealth 0:21:40.400 --> 0:21:43.320 said the FEDS the soul of focus remains inflation, even 0:21:43.320 --> 0:21:46.480 if it negatively impacts markets and oils heading for its 0:21:46.480 --> 0:21:49.800 first monthly declined since November. Karen As OPEC ministers gathered 0:21:49.800 --> 0:21:53.400 to discuss supply policy. Escalating fears over an economic slowdown 0:21:53.440 --> 0:21:56.399 have dented oil this month as interest rates rise, checking 0:21:56.440 --> 0:21:59.320 prices down, nimex screws down two tenths per center, twenty 0:21:59.359 --> 0:22:01.720 six cents at a hundred nine dollars fifty two cents 0:22:01.760 --> 0:22:03.879 of barrel Brent is down two tenths percent at a 0:22:03.960 --> 0:22:07.040 hundred sixteen dollars six cents. Well, despite this month's decline, 0:22:07.080 --> 0:22:10.000 Nathan the Surgeon, oil has elevated inflation around the world. 0:22:10.119 --> 0:22:12.760 Fetch Yer J. Powell said it remains a top priority 0:22:12.800 --> 0:22:15.680 for the Central Bank and that Russia's war in Ukraine 0:22:16.040 --> 0:22:18.520 has made it even harder to bring oil prices down 0:22:18.600 --> 0:22:21.200 and guide the economy to a soft landing the war 0:22:21.720 --> 0:22:26.119 in Ukraine, which has added tremendously to inflationary pressures around 0:22:26.320 --> 0:22:30.240