Speaker 1: Live from the Bloomberg Interacted Burger Studios. This is Bloomberg
Speaker 1: day Break for Thursday June. Coming up this hour. US
Speaker 1: stocks has had to wrap up their worst first half
Speaker 1: since nineteen seventy. China's economy shows signs of improvement. The
Speaker 1: January six Committee issues the subpoena to former President Trump's
Speaker 1: White House Council at airlines under pressure from lawmakers. Is
Speaker 1: a holiday weekend approaches. Mayor Adams reacts to another deadly
Speaker 1: shooting in New York. Plus it's a changing of the
Speaker 1: guards today at the U. S. Supreme Court. I'm Michael Blamer.
Speaker 1: More ahead, and I'm Scott Sadenburg. The Yankees coming off
Speaker 1: a wing. Get ready for a Houston showdown. Plus it
Speaker 1: update on Wimbledon. I'll have that more coming up in sports.
Speaker 1: That's All's train ahead on Bloomberg Daybreak on Bloomberg Eleiving
Speaker 1: Free on New York, Bloomberg one, Washington, d C, Bloomberg
Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco,
Speaker 1: Syrias x AM one nineteen and around the world on
Speaker 1: Bloomberg Radio dot Com and via the Bloomberg Business App.
Speaker 1: Good morning, I'm Nathan Hagart and I'm Karen. Moscow and
Speaker 1: US dock in next futures are lower this morning. We're
Speaker 1: coming up to six oh one on Wall Street, and
Speaker 1: we checked the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg and right now, SNP futures are down
Speaker 1: forty eight points down, futures down three hundred, and NASDAG
Speaker 1: futures down one hundred eighty eight or one point six percent.
Speaker 1: The decks in Germany is down two point one percent.
Speaker 1: Nine x Scrude oil is moving lower at a hundred
Speaker 1: nine dollars sixty seven cents of barrel, and the ten
Speaker 1: year treasury up nine thirty seconds, you know, three point
Speaker 1: oh five percent, and the yield on the two year
Speaker 1: two point nine percent. The euro one point oh four
Speaker 1: three zero against the dollar, Nathan Karen. The drop in
Speaker 1: futures comes as we prepare for the final trading day
Speaker 1: of the first half, and what a rough one it
Speaker 1: has been for equity investors. The SMP five hundred is
Speaker 1: on course for its worst first half since the index
Speaker 1: is down almost for the year. Thomas Kennedy as Chief
Speaker 1: investment Strategist for Global Wealth Management at JP Morgan securities.
Speaker 1: The market is trying to get the handoff done between
Speaker 1: worries about inflation two worries about growth. Um, these are
Speaker 1: challenges that are presented by the Fed. But really and
Speaker 1: so we can do that handoff, I think it'll be
Speaker 1: very hard for risk free assets to price with less volatility. JP.
Speaker 1: Morgan Securities chief investment strategist Thomas Kennedy says, in order
Speaker 1: for investors to be more confident, they need to see
Speaker 1: inflation go down. Nathan, we're seeing the selling spread overseas.
Speaker 1: This morning, we had a very latest live at the
Speaker 1: Bloomberg's You and Potts in London. Good morning You and
Speaker 1: good morning count and Nathan. A bad end to a
Speaker 1: terrible quarter. A sea of read on traders Bloomberg screen
Speaker 1: this morning, with three hours into the European trading day
Speaker 1: and the stocks hundred off one point six percent. That
Speaker 1: extends it's year to day dropped to almost seventeen percent
Speaker 1: on the final day of the first half of the year.
Speaker 1: Every single sect allow it today with carmakers, banks and
Speaker 1: tech stalks getting the worst of it. Live in London,
Speaker 1: Immuneport back day break you in the story is how
Speaker 1: much better in Asia? The m s c I Asia
Speaker 1: Pacific Index has finished its fourth straight quarter in the red.
Speaker 1: That's despite positive economic data out of China. The country's
Speaker 1: factory activity expanded in June. Bloomberg Daybreak Asia anchor Brian
Speaker 1: Curtis has more from Hong Kong. The official p m
Speaker 1: I rose to expansion mode with a fifty point to reading,
Speaker 1: but short of the fifty point five estimates. That said,
Speaker 1: the non manufacturing gauge blew away estimates, coming in at
Speaker 1: fifty four point seven, well above the forecast of fifty
Speaker 1: and a half. The economy is gradually recovering from COVID restrictions. Still,
Speaker 1: the recovery is fragile, as President She sticks to his
Speaker 1: COVID zero strategy in Hong Kong. Brian Curtis Bloomberg Daybreak, Brian,
Speaker 1: thank you. Oil heading for its first monthly decline since
Speaker 1: November as OPEC ministers prepare together to discuss supply policy.
Speaker 1: Escalating fears over an economic slowdown indended oil this month.
Speaker 1: As interest rates raw checking prices now nim Ex screwed
Speaker 1: oils down to tens per cent or twenty one cents
Speaker 1: at a hundred nine dollars fifty seven cents of barrel
Speaker 1: Brent is down about two ten percent at a hundred
Speaker 1: sixteen dollars six cents. OH. Despite this month's decline care
Speaker 1: in the recent surgeon, oil has elevated inflation around the world,
Speaker 1: and FED chair J Palell says controlling prices remains his priority.
Speaker 1: Our focus is very intensely on setting policy in order
Speaker 1: to get inflation down to two. That's what we're working on.
Speaker 1: That's our We understand that that's our primary focus right now.
Speaker 1: FED Chair J pal made the comments to Bloomberg's Francy
Speaker 1: Laquax in a panel discussion at the ECB Forum in Portugal. Well, Nathan,
Speaker 1: this is the final day of the NATO summit in Spain.
Speaker 1: At the gathering, allies have labeled Russia the most significant
Speaker 1: and direct threat to NATO security Bloomberry and Maria Today
Speaker 1: OH has more from Madrid. They say NATO allies believe
Speaker 1: that Russia is seeking to re establish spear of influence
Speaker 1: and control through cohressions, serversion, aggression and annexation. That is
Speaker 1: for russ Now on top of this is a line
Speaker 1: on China which is not as aggressive as not as explicit,
Speaker 1: but it does say that China is a country that
Speaker 1: could be a challenge to future security, and Bloomberry's Maria
Speaker 1: Todeo says NATO also expressed disappointment in China for not
Speaker 1: condemning the war in Ukraine. Back in Washington, Careen, the
Speaker 1: House investigation into the attack at the US Capital is
Speaker 1: ramping up, as Bloomberg said, backs to reports, the January
Speaker 1: six Committee has issued another subpoena, this time to former
Speaker 1: White House Council Pat Sippoloni. This comes after the testimony
Speaker 1: of Mark Meadows aid at Cassidy Hutchinson that Sippoloni pushed
Speaker 1: back on Donald Trump's efforts to go to the capital.
Speaker 1: Vice Chairless Cheney says that committee has evidence that Mr
Speaker 1: Cippaloni repeatedly raised legal and other concerns about Trump activities.
Speaker 1: She says, while the Select Committee appreciates Mr Cippaloni's earlier
Speaker 1: informal engagement, the committee needs to hear from him on
Speaker 1: the record, as other former White House counsels have done
Speaker 1: in other congressional investigations. In San franc Cisco, I'm at
Speaker 1: Baxter Bloomberg daybreak, All right, and thank you for heading
Speaker 1: into a busy travel weekend for the fourth of July holiday,
Speaker 1: and now the Transportation Department is under new pressure to
Speaker 1: punish airlines for flight disruptions. Bloombergs Charlie Pillett brings us
Speaker 1: the details post COVID demand and a labor shortage are
Speaker 1: straining travel schedules. US air carriers have struggled to manage demand,
Speaker 1: with three and a half percent of flights canceled a
Speaker 1: nearly delayed during the first four months of the year.
Speaker 1: For months, Senator Bernie Sanders once finds of up to
Speaker 1: fifty five thousand dollars, while Airlines for America, which represents
Speaker 1: major carriers, says its members are doing quote everything within
Speaker 1: their power to ensure reliable flights in New York. Charlie Pellet,
Speaker 1: Bloomberg day break. All right, Charlie, thank you. We're also
Speaker 1: seeing travel disruptions overseas this week. London's Heathrow Airport and
Speaker 1: the Charle Degall in Paris are reducing flights. Heathrow asked
Speaker 1: airlines to cut thirty flights in their schedules this morning
Speaker 1: on concerned peak passenger numbers will exceed the levelly can
Speaker 1: safely handle. And in France, the Civil Aviation Authority there
Speaker 1: has ordered a seventeen percent reduction and flights out of
Speaker 1: Paris because firefighters are on strike. SMP futures are down
Speaker 1: fifty one points. That is a drop of one point
Speaker 1: three percent. Straight ahead your latest local headlines and a
Speaker 1: check of sports. This is Bloomberg. Man. It's now six
Speaker 1: oh seven on Wall Street where it's sixty nine degrees
Speaker 1: in Central Park and delays are building on the George
Speaker 1: Washington Bridge. There's a broken down tractor trailer on the
Speaker 1: upper level. That's not good. Details coming up the traffic First,
Speaker 1: Michael Barr with what else is going on in New
Speaker 1: York and around the world. Michael, thank you very much, Nathan.
Speaker 1: Authorities in New York City are looking for a gunman
Speaker 1: who murdered a twenty year old woman pushing a baby
Speaker 1: stroller last evening on the Upper East Side of Manhattan.
Speaker 1: It happened on Lexington Avenue st. The suspect is described
Speaker 1: as a male dressed in a hoodies, wet pants, and
Speaker 1: baseball cap, all in black. Mayor Accadam says his administration
Speaker 1: is working hard to combat gun violence, but the city
Speaker 1: needs help. We're going to find this person, this gift
Speaker 1: guilty of this horrific crime. We're going to find him
Speaker 1: and bring him to justice. We didn't need to justice
Speaker 1: assist him to make sure this innocent person received that
Speaker 1: justice that we're asking for. Mayor Adams says the victim
Speaker 1: was shot by the suspect in the head at point
Speaker 1: blank range. Today is the last day of the U.
Speaker 1: S Supreme Court issues opinions. The court will design how
Speaker 1: much authority the e p A has to regulate emissions
Speaker 1: from power plants. Another opinion will impact immigration. Also today,
Speaker 1: Justice Stephen Bryan retires and will formally pass the swords
Speaker 1: to Catangi Brown Jackson, becoming the first black woman on
Speaker 1: the High Court. New Jersey lawmakers have passed a record
Speaker 1: fifty point six billion dollar budget, sending it to Governor
Speaker 1: Phil Murphy's desk. The budget is nine percent bigger than
Speaker 1: last year's and comes after better than expected tax returns
Speaker 1: and bigger state conference. The death told from the deadliest
Speaker 1: smuggling case in US history rose to fifty three. The
Speaker 1: victims were found Monday in the back of a sweltering
Speaker 1: truck in San Antonio. Four men faced charges R and B.
Speaker 1: Star R. Kelly was sentenced to thirty years in prison.
Speaker 1: The fifty five year old singer was convicted of racketeering
Speaker 1: and sex trafficking last year. Lozette Martinez and r Kelly,
Speaker 1: accuser describe how she finally got away. I looked in
Speaker 1: the mirror and I didn't recognize myself, and I didn't
Speaker 1: like myself anymore. And I knew that if I didn't
Speaker 1: get out, neither he was gonna kill me or I
Speaker 1: was gonna kill myself. Think you got that dark? Was
Speaker 1: thatte Martinez spoke to ABC. Israel's parliament voted today to
Speaker 1: dissolve itself and send the country to the polls in
Speaker 1: November for the fifth time in less than four years.
Speaker 1: Yaron Lapide, Israel's foreign minister, will become the country's caretaker
Speaker 1: prime Minister. Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quicktake, powered by more than twenty
Speaker 1: seven hundred journalists and analysts more than a D twenty country.
Speaker 1: He's Michael Barr and this is Bloomberg, Nathan. Thank you Michael.
Speaker 1: And as we come up to six ten on Wall Street,
Speaker 1: we checked Bloomberg Sports with Scott Seidenberg. Thanks Nathan. The
Speaker 1: Yankees using the long ball to help bail out Jamison
Speaker 1: tayone yesterday and beat the A's five three. Tayone allowed
Speaker 1: three runs in the top of the first inning, but
Speaker 1: Aaron Judge quickly got two back with a homer in
Speaker 1: the bottom of the frame, and then Jean Carlos Stanton
Speaker 1: put the Yankees on top with a three run blast
Speaker 1: in the third inning. The Yankees are five and one
Speaker 1: when Judge and Stanton homer in the same game, including
Speaker 1: nine and oh this season. With the wind, the Bombers
Speaker 1: improved their records at fifty six and twenty, matching the
Speaker 1: team and the two thousand one Mariners for the best
Speaker 1: seventies six game start. Yankees will play one game in
Speaker 1: Houston tonight before heading to Cleveland for a weekend series.
Speaker 1: Luis Severino will get the start. The Mets meanwhile, lost
Speaker 1: a pitchers duel to the Astros to nothing yesterday. Stin
Speaker 1: Berlander when eight shutout innings allowing just two hits, and
Speaker 1: Taiwan Walker matched him going seven and a third shutout
Speaker 1: innings allowing just the four hits. Jason Castro's two run
Speaker 1: homer off of Drew Smith on the top of the
Speaker 1: ninth was the difference. The Mets are off tonight. They
Speaker 1: host the Rangers tomorrow night. At Wimbledon, Novak Djokovic cruised
Speaker 1: in straight sets. Three seed Casper Rude was upset by
Speaker 1: Ugo Umbert, and American John isn'er defeated two time champion
Speaker 1: Andy Murray the second round exit the earliest exit for
Speaker 1: Murray at the All England Club. I'm Scott Siedenburg with
Speaker 1: Bloomberg Sports. Nathan Okay, Scott, thank you. Right now, SNP
Speaker 1: futures are down forty eight points, the drop of one
Speaker 1: point three percent. Down futures down one percent or three
Speaker 1: hundred nine points. NASDAC futures leading the declines, down a
Speaker 1: hundred points for a drop of one point six percent
Speaker 1: as we get set to close the books on the
Speaker 1: worst first half for U S stocks since Danny Burger,
Speaker 1: Bloomberg Markets correspondent TV anchor for Bloomberg joins us next
Speaker 1: on this market. This is Bloomberg Bloomberg eleven three oh weather,
Speaker 1: sunshine and a high in your ninety today. It's gonna
Speaker 1: be hot, humid tomorrow with a highr mid eighties for Saturday,
Speaker 1: with occasional showers and storms. Right now seventy degrees in
Speaker 1: Central Park. Markets headlines and breaking news twenty four hours
Speaker 1: a day at Bloomberg dot Com, The Bloomberg Business at
Speaker 1: and at Bloomberg Quick Tape. He's a Bloomberg Business lash
Speaker 1: and I'm Karen Moscow. US Dock index futures are signaling
Speaker 1: more losses today after central bankers issued warnings on inflation
Speaker 1: and feel concerned that aggressive policy will end in recession.
Speaker 1: If we check the markets every fifteen minutes throughout the
Speaker 1: trading day on Bloomberg, SNP futures down fifty one points,
Speaker 1: Dow future is down three d thirty three, and NASDACK
Speaker 1: futures down one ninety seven. It's down up at one
Speaker 1: point seven percent. The decks in Germany's down two point
Speaker 1: four percent. Pen Your treasury up nine thirty seconds, yell
Speaker 1: three point oh five percent. The yield on the two
Speaker 1: year is at two point nine nine percent. Nive excret
Speaker 1: oil down a tenth of upper cent or thirteen cents
Speaker 1: at a hundred nine dollars sixty five cents of barrel
Speaker 1: co makes goal down three tenths percent or five dollars
Speaker 1: twenty cents at eighteen twelve thirty announced the euro one
Speaker 1: point oh four to zero against the dollar. British found
Speaker 1: one point to one to seven, the n at one
Speaker 1: thirty six point to seven, and Bitcoin this morning down
Speaker 1: five point four percent at nineteen thousand, one hundred dollars.
Speaker 1: That's a Bloomberg business flash. Now here's Michael Barr with
Speaker 1: more on most going on around the world. Michael Karen,
Speaker 1: thank you very much. The House committee investigating last year's
Speaker 1: assault on the US capital says it has peanut former
Speaker 1: White House Consul Pat Siboloni to appear on July six
Speaker 1: for a closed door deposition. Sipoloni has emerged in recent
Speaker 1: weeks as a subject of interest by committee members, who
Speaker 1: say he was at the center of a number of
Speaker 1: events related to the attack. On January six, Israel's parliament
Speaker 1: has voted to dissolve itself, singing the country to the
Speaker 1: polls for the fifth time in less than four years.
Speaker 1: In baseball, the Yankees beat the A's five three. The
Speaker 1: Mats lost, along with the Nationals, Orioles and Giants. The
Speaker 1: Red Sox one Global News twenty four hours a day
Speaker 1: on air and on Bloomberg quick Take, powered by more
Speaker 1: than twenty seven hundred journalist and analysts, more than a
Speaker 1: hundred twenty countries. Hi, Michael Barr, And this is Bloomberg. Nathan. Okay, Michael,
Speaker 1: thank you. It is six nineteen on Wall Street Live
Speaker 1: from the Bloomberg Interactive Broker studios. This is Bloomberg Daybreak
Speaker 1: as we get ready to close the books on a
Speaker 1: very rough first half for equity investors. Were joined this
Speaker 1: morning by Bloomberg TV anchor and markets correspondent Danny Burger
Speaker 1: with us life from our studios in London. Danny, should
Speaker 1: we get into the superlatives about just how bad it's
Speaker 1: been if you're long stocks man, Yeah, it's it's been
Speaker 1: really bad. Not not a lot of places to take shelter. Um,
Speaker 1: we're start to the year since nineteen sixty two, which
Speaker 1: I think is probably the most juicy and depressing superlative. Um.
Speaker 1: And look, it's not like you could hide out in
Speaker 1: bonds either, I mean worst, we're on track for the
Speaker 1: worst year in bonds also, so I mean just all around,
Speaker 1: unless you're talking about commodities. Um, just a really bad
Speaker 1: seart to the year. Yeah, certainly has been. And when
Speaker 1: you look at futures this morning, as deep in the
Speaker 1: red as they are right now, you have to wonder
Speaker 1: where things go as we enter the second half with
Speaker 1: so much fear in this market around inflation and the
Speaker 1: risk of a recession. Yeah, exactly, And and you know
Speaker 1: some of the action we might be seen today. Of course,
Speaker 1: it is quarter and month end, first half end, so
Speaker 1: there certainly is some rebouncing going on. But if everyone's
Speaker 1: fleeing equities, it does kind of show you that managers
Speaker 1: are trying to get out of the stock market. So
Speaker 1: when they report their holdings for going into this quarter,
Speaker 1: their clients aren't saying, hey, why why are you in
Speaker 1: stocks when they've just been absolutely pummeled. And I think
Speaker 1: that's kind of part of the problem, is this question
Speaker 1: we ask of whether we've seen capitulation or not. Sentiment
Speaker 1: is certainly bad enough to suggest that we're at max bearishness,
Speaker 1: but a lot of folks out there saying we could
Speaker 1: have further to go. We haven't priced in earnings deterior ratings,
Speaker 1: so that's another thing that could take equity markets down. Um,
Speaker 1: And we haven't totally priced in the prospect of a recession.
Speaker 1: So yeah, things look bad, Um, I guess it could
Speaker 1: always be worse. Yeah, And we've heard from one veteran
Speaker 1: investor who spoke to Bloomberg just this week, saying he
Speaker 1: could see the SNP five hundred dropping as low as
Speaker 1: thirty one hundred, where toty hundred handle right now? I mean,
Speaker 1: what's the sense out there on Wall Street Global, Wall
Speaker 1: Street as we get into the second half about where
Speaker 1: things could go from here, what kind of levels we
Speaker 1: could be seeing. I think it really is divided, um
Speaker 1: in terms of whether you think there will be a
Speaker 1: recession or not. Um. You know, I I kind of
Speaker 1: come out on this of Look, the FED in some
Speaker 1: ways wants wealth destructions. The destruction they're not going to
Speaker 1: step in because the stock market is so bad. So
Speaker 1: recession or not kind of a feature, not a bug,
Speaker 1: of what the Fed is trying to do to get
Speaker 1: um less spending, to have demand in line with supply.
Speaker 1: Are things like stocks and bonds selling off? So I
Speaker 1: think just sort of a feature of this inflation combating FED.
Speaker 1: It stands to reason that stocks could sell off from
Speaker 1: here regardless of whether we have a recession or not. Now,
Speaker 1: if we have a recession, it could sell off more deeply. UM.
Speaker 1: So that's percolating on Wall Street. But I should say
Speaker 1: the part of Wall Street, the cell side analysts looking
Speaker 1: at individual companies. There's a great story out on Bloomberg
Speaker 1: this morning basically saying that they haven't changed their estimates
Speaker 1: for earnings for your end for these individual stocks, and
Speaker 1: you get these ridiculous numbers expecting stocks to rally some
Speaker 1: into your end. So there's still some optimism there, how founded.
Speaker 1: That is an Yeah, that's interesting to bring into the conversation, Danny,
Speaker 1: because you've been hearing quite a lot from many analysts
Speaker 1: about where earnings expectations are right now, thinking that they're
Speaker 1: so high that they're going to have to come down
Speaker 1: as we get into the third quarter and the rest
Speaker 1: of this year. What kind of headwind could that pose
Speaker 1: for stocks as analysts potentially bring down their expectations for
Speaker 1: how much companies are going to earn going forward. It's
Speaker 1: definitely large. One Goldman Sachs out this week saying that
Speaker 1: the expectations are unrealistic. We haven't priced in margins. I
Speaker 1: think this is the real issue because last year we
Speaker 1: talked about yes, inflation is bad, but companies are still
Speaker 1: able to charge more. They have pricing power. We're starting
Speaker 1: to see signs of factor sharating. Margins not as strong.
Speaker 1: M r H the specialty furnishing. Furnishing company had an
Speaker 1: earnings report out late yesterday saying that they're seeing less
Speaker 1: spending um inflation is finally starting to hit the consumers.
Speaker 1: That's a totally new prospect. We have to grapple with
Speaker 1: is do these companies still have pricing power or their
Speaker 1: margins gonna get eaten away because people are struggling with
Speaker 1: high prices and they're just not gonna be willing to
Speaker 1: spend as much. All right, thanks for this, Danny, Always
Speaker 1: great having on with us. Danny Burger, our markets correspondent,
Speaker 1: Bloomberg TV anchor with us this morning from our studios
Speaker 1: in London. Let's just get a market check here, getting
Speaker 1: ready for this final day of the second half, and
Speaker 1: it's a sea of red. We have SMP futures right
Speaker 1: now down forty nine points, a drop of one point
Speaker 1: three percent. Dow futures are lower by three d sixteen points,
Speaker 1: NASDAC futures leading the declines, down a hundred eighty eight points.
Speaker 1: That's a drop of one point six percent. Even worse
Speaker 1: losses in Europeans indexes, with the DACKS and the CAC
Speaker 1: in Paris both down two point three percent. Ten Your
Speaker 1: Treasury is up nine thirty seconds, the yield three point
Speaker 1: zero five percent, and the yield on the two year
Speaker 1: right now just around three percent. Your list stening to
Speaker 1: Bloomberg day Break. Bloomberg day Break is brought to you
Speaker 1: by Hofst University's Frank Gie's Art School of Business, top
Speaker 1: ranked online NBA program with a real world foundation. Learn
Speaker 1: more at Hofstra dot e d U slash go grad.
Speaker 1: Broadcasting live from the Bloomberg Interacted Broker Studio in New York,
Speaker 1: Bloomberg E loving free to Washington, d C, Bloomberg nine
Speaker 1: nine one to Boston, Bloomberg one O six one to
Speaker 1: San Francisco, Bloomberg nine sixty to the country Sirius XM
Speaker 1: to A one nine team, and around the globe the
Speaker 1: Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak,
Speaker 1: six thirty on Wall Street. Good morning, I'm Nathan Hager
Speaker 1: and I'm Karen Moscow. We're just about three hours away
Speaker 1: from the open of US trading. Time for the five
Speaker 1: things that you need to notice start your day. Brought
Speaker 1: to by Interactive Brokers. Interactive Brokers Simple i v K
Speaker 1: are Global Trader app depositing your local currency and trade
Speaker 1: stocks in your US, Europe, in Asia. Start your free
Speaker 1: trial at ibkr dot com slash Global Trader First. US
Speaker 1: futures are falling as we enter the final trading day
Speaker 1: of a rough first half. Victoria Green, chief investment officer
Speaker 1: at G squared Private Wealth, So, the biggest economic risk
Speaker 1: now is no longer inflation. I think recession is a
Speaker 1: bigger risk by now because inflation is quite thin now right.
Speaker 1: We're halloware We're in a high in place in their environment.
Speaker 1: People are adjusting their budgets. But recessions was going to
Speaker 1: turn this market over because people are starting to change
Speaker 1: their buying habit. Victoria Green at G squared Private Wealth
Speaker 1: said the FEDS the soul of focus remains inflation, even
Speaker 1: if it negatively impacts markets and oils heading for its
Speaker 1: first monthly declined since November. Karen As OPEC ministers gathered
Speaker 1: to discuss supply policy. Escalating fears over an economic slowdown
Speaker 1: have dented oil this month as interest rates rise, checking
Speaker 1: prices down, nimex screws down two tenths per center, twenty
Speaker 1: six cents at a hundred nine dollars fifty two cents
Speaker 1: of barrel Brent is down two tenths percent at a
Speaker 1: hundred sixteen dollars six cents. Well, despite this month's decline,
Speaker 1: Nathan the Surgeon, oil has elevated inflation around the world.
Speaker 1: Fetch Yer J. Powell said it remains a top priority
Speaker 1: for the Central Bank and that Russia's war in Ukraine
Speaker 1: has made it even harder to bring oil prices down
Speaker 1: and guide the economy to a soft landing the war
Speaker 1: in Ukraine, which has added tremendously to inflationary pressures around
Speaker 1: food and energy commodities and agricultural chemicals and industrial chemicals
Speaker 1: and things like that, so it's gotten harder. The pathways
Speaker 1: have gotten narrower. Fetch Er J. Powell made the comments
Speaker 1: to Bloomberg's Francy Laqua in a panel discussion at the
Speaker 1: ECB Forum in Portugal. Well, today marks the final day
Speaker 1: of the NATO summit in Spain. Karen and allies have
Speaker 1: labeled Russia the most significant and direct threat to NATO security.
Speaker 1: Bloomberg's Maria today, Oh has more for Madrid for NATO.
Speaker 1: It is back to combat mode, a reality check, as
Speaker 1: I say, And of course that will also mean from
Speaker 1: now on taking that two percent defense spending is going
Speaker 1: to be a big priority. Four Europeans in particular, if
Speaker 1: they don't want to take security different granted anymore. Bloomberg's
Speaker 1: today says Russia wasn't the sole focused NATO says China
Speaker 1: also presents security concerns. And back in Washington, Nathan, the
Speaker 1: House investigation into the attacks of the US capital continues.
Speaker 1: That January six, committee has issued a subpoena at to
Speaker 1: former White House Council Pat Cipoloni. And that's the five
Speaker 1: things you need to know to start your day, brought
Speaker 1: to you by Interactive Brokers. Futures this morning are moving lower.
Speaker 1: SMP futures down fifty five points. Straight ahead, your latest
Speaker 1: local headlines and a check of sports. And this is Bloomberg.
Speaker 1: Thank you. Karen six thirty three on Wall Street where
Speaker 1: it's seventy degrees in Central Park. Got an accident in Harrison.
Speaker 1: He's found route to eighty seven in the exit nine
Speaker 1: off ramp. Details coming up in traffic. First, Michael Barr
Speaker 1: with what else is going on in New York and
Speaker 1: around the world. Good morning, Michael, Good morning, Nathan. The
Speaker 1: NYPD s as a young woman was fatally shot last
Speaker 1: night while she push tor infant daughter in a stroller
Speaker 1: on Manhattan's Upper east Side. It happened on Lexington Avenue
Speaker 1: in street MYPD Commissioner Teaching Sewells as the suspect is
Speaker 1: described as a male dressed in a hoodie, sweatpants, and
Speaker 1: baseball cap, all in black. Our preliminary investigation revealed the
Speaker 1: twenty year old victim was pushing in approximately three month
Speaker 1: old in a baby stroller on East Street when an
Speaker 1: unknown person approached her and fired a single shot into
Speaker 1: her head from a very close range. Along with Commissioners Sewuel,
Speaker 1: Mayor Eric Adams said during the news conference, more guns
Speaker 1: in our city means more lives lost. Thirty three hundred guns,
Speaker 1: we move off our streets that we're not allowed to
Speaker 1: hurt innocent people. We're going to continue to move forward,
Speaker 1: but we do need from Washington, from the state, from
Speaker 1: our criminal justice system. Mayor Adams says the three month
Speaker 1: old baby was not hurt. It's a changing of the
Speaker 1: guard at the Supreme Court as it wraps up a
Speaker 1: shot term marked by the decision the Roe v. Wade
Speaker 1: after twenty eight years, just as Stephen Bryer will formally
Speaker 1: pass the torch to Katangi Brown Jackson. She will officially
Speaker 1: become the first black woman on the U. S. Supreme Court.
Speaker 1: The death toll from one of the deadliest human smuggling
Speaker 1: operations in US history climbed to fifty three, with about
Speaker 1: a dozen people injured. In San Antonio. The migrants were
Speaker 1: found in a spiltering tractor trailer. San Antonio Police Chief
Speaker 1: William McManus says the tragedy is a true crime against humanity.
Speaker 1: I don't understand how anyone could be so callous as
Speaker 1: to allow that to happen and then run from the
Speaker 1: scene once they found out about. Chief McManus says four
Speaker 1: men have been charged. A big drug bust in the
Speaker 1: Bronx was announced yesterday. A multi agency strike team rated
Speaker 1: an apartment in the Mount Hope neighborhood. Law enforcement confiscated
Speaker 1: about two fifty pounds of narcotics, including heroin, cocaine, inventinel
Speaker 1: and crystal meth worth about twenty four million dollars. Some
Speaker 1: fourth of July fireworks shows may not go off his plan.
Speaker 1: Several cities and towns have to reschedule because there is
Speaker 1: the shortage of workers and fireworks. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quick Take
Speaker 1: powered by more than journalists, analysts more than a hundred
Speaker 1: twenty countries. Michael Barr, this is Bloomberg. Nathan. Alright, Michael,
Speaker 1: thank you. Just about six thirty six on Wall Street.
Speaker 1: Time to get the Bloomberg Sports Update. Good morning, Scott Steinberg,
Speaker 1: Good morning, Nathan Jehan, Carlo Staton, and Aaron Judge bull
Speaker 1: homering as the Bombers finished off a sweep of the
Speaker 1: A's five three the Yankees twenty five and one. When
Speaker 1: Judge and standing Homer in the same game, including nine
Speaker 1: to know this season, it was Aaron Judge, you know,
Speaker 1: we know what's ahead of us. You know, we know
Speaker 1: it's halfway through the year now and I'm still a
Speaker 1: long way to go. But you know, everyone's important. You know,
Speaker 1: I've just been so many years. We look back and
Speaker 1: you know, we're getting down to n September and it's
Speaker 1: like we're fighting Clawn. We're half a game out, half
Speaker 1: a game up, and I think you're starting to realize important.
Speaker 1: So hey, you know even these you know, we won
Speaker 1: the series, but this third game and it means a
Speaker 1: lot down the road. Yankees will play one game in
Speaker 1: Houston tonight before heading to Cleveland for a weekend series.
Speaker 1: Luis Severino will get the start. The Mets meanwhile lost
Speaker 1: a pitchers duel to the Astros tune up in yesterday,
Speaker 1: Justin Berlander went eight shutout ennings, allowing just two hits,
Speaker 1: and Taiwan Walker matched him, going seven and the third
Speaker 1: shutout innings allowing just the four hits. Jason Castro's two
Speaker 1: on homer off of Drew Smith on the top of
Speaker 1: the night was the difference. The Mets are off tonight
Speaker 1: they host the Rangers tomorrow night. At Wimbledon, Novak Djokovic
Speaker 1: cruised in straight sets. Three seed Casper Rude was upset
Speaker 1: by Ugo Umbert, and American John Isner defeated two time
Speaker 1: champion Andy Murray the second round exit, the earliest exit
Speaker 1: for Murray at the All England Club. I'm Scott Segenberg
Speaker 1: with Bloomberg Sports Nathan all Right, Scott, thank you sixty
Speaker 1: seven on Wall Street Time down to take a look
Speaker 1: at stocks, some of the names moving in the pre
Speaker 1: market as we get ready for the final day of
Speaker 1: the first half. We are joined this morning by Bloomberg
Speaker 1: Radio and TV Markets correspondent Created Gupta create. I gotta
Speaker 1: think investors just want to close the books. I mean,
Speaker 1: you look at the terminal this morning, what's in the
Speaker 1: green Only one stock, Nathan, And it's interesting here it's PepsiCo,
Speaker 1: PEPs your taker. It's up only two tents of one percent,
Speaker 1: So I wouldn't call it a massive move to the upside.
Speaker 1: But given the context that you are looking at, where
Speaker 1: you do have futures down over one percent and you
Speaker 1: have some of these other stocks um down well down
Speaker 1: just period, and I think that's pretty significant. I will say, though,
Speaker 1: there are two stocks that are actually flat this morning,
Speaker 1: and it's Kellogg and it's Kroger. And if you actually
Speaker 1: look at the perhaps the thread between all three, it's
Speaker 1: that their food related companies. So it kind of seems
Speaker 1: like the new defensive trade we talked a lot about
Speaker 1: this has been oil, but it's also been food companies,
Speaker 1: food packaging companies, UM fertilizer, Beanie, So perhaps there is
Speaker 1: that thread. But also keep in my Nathan, as you mentioned,
Speaker 1: people are closing their books. It's the last day of
Speaker 1: the quarter, it's the last day of the month as well,
Speaker 1: so there is going to be extremely low volume and
Speaker 1: it's going to be rebalancing flows. And the bonus on
Speaker 1: top here, the cherry on top of a really not
Speaker 1: so great Sunday, is that we are going into the
Speaker 1: July one weekend here in the States. So there isn't
Speaker 1: going to be a ton of conviction to hop into
Speaker 1: positions when you have those dynamics at play. Yeah, but
Speaker 1: you gotta think with kind of loss this deep for
Speaker 1: the futures contracts, creaty, there's more going on here than
Speaker 1: just repositioning into the third quarter, isn't there? There might be,
Speaker 1: and you know there there is always the fundamental narrative.
Speaker 1: I always like to go with the fund flows first,
Speaker 1: just to kind of explain it a little bit from
Speaker 1: that angle, But there is a narrative here that just
Speaker 1: how much room do we really have our very own
Speaker 1: Danny Burger pointed out that this is the worst start
Speaker 1: to the year going all the way back to nineteen
Speaker 1: sixty two. And if you and can go back to
Speaker 1: nineteen sixty two for those of who can, yes, who
Speaker 1: were alive, I sadly was not. But if you go
Speaker 1: back in the history books and you look at it,
Speaker 1: nineteen six or two was such a crucial year because
Speaker 1: let me nerd out for a second eight and if
Speaker 1: I can you basically had this massive run up in
Speaker 1: what was their version of these big tech stocks called
Speaker 1: the nifty fifty. Was Xerox, it was IBM, it was Disney,
Speaker 1: these high flying stocks that were lifting the entire benchmark.
Speaker 1: And then it was followed by what they called then
Speaker 1: called the Kennedy slide. So for nine straight months the
Speaker 1: market just collapsed. There was no real reason that even
Speaker 1: the head of the Stock exchange said, it's not a
Speaker 1: liquidity problem, it's not a plumbing problem. They're just kind
Speaker 1: of repricing from those monumental gains. And the one pivot
Speaker 1: point was in October nineteen sixty two, which, if someone
Speaker 1: remembers from their history books, was the Cuban missile crisis.
Speaker 1: So I wonder how much of this also has the
Speaker 1: backdrop of those kind of Cold War esque feelings. And
Speaker 1: I also wonder how much of the war in Ukraine
Speaker 1: is weighing on the story. Yeah, history being made in
Speaker 1: two thanks for this creaty good having you on with
Speaker 1: a Spoonberg Radio TV Markets correspondent Creedy gooped ahead of
Speaker 1: the market open this final day of the first half.
Speaker 1: SMP Futures are down fifty six points, or one and
Speaker 1: a half percent. Dow futures down three seventy four, Nasdaq
Speaker 1: futures lower by two hundred ten points. That is a
Speaker 1: drop of one point eight percent. This is Bloomberg Bloomberg
Speaker 1: eleven three oh weather Sunshina high close to ninety today, sunny, hot,
Speaker 1: humid Tomorrow will end the week with a high mid eighties.
Speaker 1: Some storms possible as we start the weekend right now,
Speaker 1: seventy in Central Park Markets, headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg
Speaker 1: Business at and at Bloomberg Quicktake. He's a Bloomberg Business
Speaker 1: Flash and I'm Karen Moscow. Futures are falling this morning.
Speaker 1: We got to the first word breaking news dash for
Speaker 1: today's morning call. And here's Bill Malow the built Good morning, Dah,
Speaker 1: Good morning Karen. That's right. US features are under pressure
Speaker 1: right now at Doubt futures down at three hundred sixty
Speaker 1: seven points, says if he's dropped fifty five will Nasdaq
Speaker 1: futures are off by two hundred four He was ten
Speaker 1: year old at three point oh five percent. Gold is
Speaker 1: down six Oil is also in the red. And bitcoin
Speaker 1: is lowered by five and a half percent. Japan dropped
Speaker 1: one and a half percent overnight, while europ and markets
Speaker 1: are also under pressure, led by two point four percent
Speaker 1: losses in France. Back in the US on the Economic
Speaker 1: funday thirty pc e n initial jobs claims and at
Speaker 1: Chicago pm I alf to devel us night. R H
Speaker 1: cut its revenue forecast shares and out seven percent in
Speaker 1: the pre market and regarding earnings this morning, look for
Speaker 1: Constellation Brands and Walgreens three port in the pre market.
Speaker 1: In other news, Equinix raised to buy over at Jeffreys
Speaker 1: and wrapping things up. As the first half comes to
Speaker 1: a close, the sub five hundred is set for its
Speaker 1: biggest first half decline since nineteen seventy. Live from the
Speaker 1: First Breakingers desk Im Bill Maloney, Karen Great, Bill, thank you,
Speaker 1: and here live breaking news overre of Bloomberg type squawk
Speaker 1: on your terminal, s q U A w K and
Speaker 1: that's a Bloomberg business flash. Now here's Michael Barr with more.
Speaker 1: I'm what's going on around the world, Michael, Karen, thank
Speaker 1: you very much. Today a Supreme Court Justice Stephen Bryer's
Speaker 1: last day and Katangi Brown Jackson's first. She will be
Speaker 1: sworn in as the first black woman to sit on
Speaker 1: the nation's High Court. Chinese leader Shi Jingping was welcomed
Speaker 1: by a crowd of people waving flags in Hong Kong. Today.
Speaker 1: She is there for the twenty anniversary of Britain's handover
Speaker 1: of the port city. Hong Kong has undergone two years
Speaker 1: of stricter communist control by Beijing. In baseball, the Yankees
Speaker 1: beat the A's five three. The Mets lost along with
Speaker 1: the Nationals, Orioles and Giants. The Red Sox one Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Bloomberg Quicktake, powered by more than twenty seven hundred journalist
Speaker 1: and analysts more than a hundred twenty countries. Michael Barr
Speaker 1: and this is Bloomberg, Karen, Michael Barr, thank you. It
Speaker 1: is time now nine Wall Street and we turned to
Speaker 1: news and science and technology with the Bloomberg and j
Speaker 1: i T Stem Report. It is brought to you by
Speaker 1: New Jersey Institute of Technology. N j i T is
Speaker 1: dedicated to bolstering support for female and minorities students pursuing
Speaker 1: careers and high paying STEM industries learn more at n
Speaker 1: j I, T, DOT, E, d U and now here's
Speaker 1: just making news. In science, Technology, engineering, and math, the
Speaker 1: US has agreed to pay vaccine partners Fizer and by
Speaker 1: On Tech three point two billion dollars in a deal
Speaker 1: for more than a hundred million of their messenger RNA
Speaker 1: shots against COVID nineteen. The deal is for doses for adults,
Speaker 1: children and infants and may include some shots that target
Speaker 1: the omicron variant. Deliveries are planned again as soon as
Speaker 1: late summer and continue into the fourth quarter. The new
Speaker 1: head of the government's road safety agencies said it will
Speaker 1: intensify efforts to understand the risks posed by automated vehicle
Speaker 1: technology so we can decide what regulations may be necessary
Speaker 1: to protect drivers, passengers, and pedestrians. Stephen Cliff, who was
Speaker 1: confirmed last month as head of the Nation and All
Speaker 1: Highway Traffic Safety Administration. So the agency is assessing crash
Speaker 1: data recently reported by automakers and tech companies. And bitcoin
Speaker 1: is on track for its worst quarter in more than
Speaker 1: a decade, has more hawkish central banks and a string
Speaker 1: of high profile crypto blow ups. Hammer sentiment pent draw
Speaker 1: down is the biggest cryptocurrency or in the biggest cryptocurrency
Speaker 1: is the largest since the third quarter of twenty eleven,
Speaker 1: when bitcoin was still in its infancy. And that's a
Speaker 1: Bloomberg and j Anti Stem report. Nathan, all right, Karen,
Speaker 1: thank you. We're live from the Bloomberg Interactive Broker Studios
Speaker 1: where it's six fifty on Wall Street. Time now to
Speaker 1: check what's going on in d C. Some of the
Speaker 1: top stories in our nation's capital include the January six
Speaker 1: Committee issuing another subpoena, this time to former White House
Speaker 1: Council Pat Saboloni, President Biden seeking to boost abortion patient
Speaker 1: privacy after row. And the history making day at the
Speaker 1: Supreme Court as Kaitanji Brown Jackson takes her oath to
Speaker 1: succeed retiring Justice Stephen Bryan on the Supreme Court. And
Speaker 1: we've just gotten late breaking news out of Washington. The
Speaker 1: longest serving Senator, Vermont Democrat Patrick Lahey, broke his hip
Speaker 1: in a fall last night and he's going to have
Speaker 1: to have surgery. Like he is the longest serving sitting senator.
Speaker 1: He announced last year that he will not seek reelection
Speaker 1: this fall. Let's get more on some of these stories now. Bloomberg, Government,
Speaker 1: Congressional reporter Jack Fitzpatrick is with us this morning, and Jack,
Speaker 1: I want to start off with the latest from the
Speaker 1: January six committee, because it really does seem like the
Speaker 1: investigation and the hearings are ramping up in a new
Speaker 1: and significant way after the testimony we got this week
Speaker 1: from a former White House aid Cassidy Hutchinson. Yes, we
Speaker 1: the latest from the committee that they are subpoena in
Speaker 1: Pat Saboloni, the former White House Council under then President Trump.
Speaker 1: He's come up a number of times in these hearings.
Speaker 1: If you've followed this, you've learned who he is. And Uh,
Speaker 1: he's become a bit of a central figure because of
Speaker 1: his warnings that the voter fraud claims did not have
Speaker 1: legal merit. He came up warning that Trump should not
Speaker 1: go to the capital on January six. So they are
Speaker 1: seeking an interview with him on the record, Uh, not
Speaker 1: testimony during a hearing, but one of the video interviews.
Speaker 1: On July six. He had spoken to them informally, but
Speaker 1: has refused to cooperate beyond that. Uh. And now that
Speaker 1: just the number of times his name has come up
Speaker 1: and he has been a figure is establishing the lack
Speaker 1: of legal merit for Trump's position throughout all of this
Speaker 1: has caused the Committee to try to get him to
Speaker 1: do one of the video interviews that you've you've seen.
Speaker 1: They use clips of those two to make their case,
Speaker 1: so they are subpoenaing him, and clearly that could provide
Speaker 1: even more evidence to that argument that the Committee is
Speaker 1: trying to make that Trump's own lawyers were telling him
Speaker 1: that what he was doing did not have legal merit.
Speaker 1: One interesting item from Cassidy Hutchinson's testimony this week about
Speaker 1: pat Sippoloni was she says that she heard Sippoloni say
Speaker 1: that they could be charged with every crime imaginable based
Speaker 1: on the President wanting to go with the rally goers
Speaker 1: to the capital. Is this where this hearing, where this
Speaker 1: investigation is going, Jack, the idea that we could see
Speaker 1: criminal referrals coming out from the Committee to the Justice Department,
Speaker 1: that's really a logical conclusion. Um. It would probably seem
Speaker 1: to be a bit more significantly focused on the broader
Speaker 1: issue of Trump going forward with these voter fraud claims
Speaker 1: and telling a number of people to gather on January six,
Speaker 1: knowing it could be dangerous, uh and and knowing and
Speaker 1: being told by his own lawyers that the voter fraud
Speaker 1: claims did not have legal merits. But yet the the
Speaker 1: Hutchinson UH, the testimony the other day adds a new
Speaker 1: wrinkle at at the almost an appendix to that UH
Speaker 1: with the issue of Trump trying to go to the
Speaker 1: capitol himself. That has been disputed, and we'll see if
Speaker 1: there actually is testimony from Secret Service agents who say
Speaker 1: that he did not try to grab the wheel or
Speaker 1: or pushback on some of the details. That's an issue
Speaker 1: that's come out from Tony Ornado, although they haven't they
Speaker 1: haven't spoken to the committee yet on the record, so
Speaker 1: we'll have to see where that goes. But yet that's
Speaker 1: the the idea of criminal referral seems to be the
Speaker 1: focus because the committee is very focused on making the
Speaker 1: case that the President and others knew that what they
Speaker 1: were doing was illegal and that their arguments were not
Speaker 1: rational illegal arguments. Let's turn into some of the developments
Speaker 1: around abortion rights. After the Supreme Court's decision to overturn Row,
Speaker 1: we've gotten some new guidance from the Widen administration. What's
Speaker 1: the new move here, Yeah, the latest move is that
Speaker 1: HHS issued guidance telling healthcare providers they are not required
Speaker 1: and may actually legally not be allowed to disclose information
Speaker 1: related to abortion or other reproductive healthcare. The focus would
Speaker 1: be medical records and data from period tracking apps. The
Speaker 1: concern there among activists is that that kind of information
Speaker 1: could be subpoenaed by state prosecutors. As everybody tries to
Speaker 1: figure out the legal issues around whether you can leave states,
Speaker 1: if state level officials could try to stop you from
Speaker 1: leaving states to get an abortion. Uh So, the the
Speaker 1: issue of privacy is something that the White House and
Speaker 1: the Biden administration broadly is trying to take some steps
Speaker 1: on there. And in our last minute here jack we're
Speaker 1: going to see more history at the Supreme Court right
Speaker 1: around noon today when the term officially ends. Yes, Katangi
Speaker 1: Brown Jackson is going to be sworn in as a
Speaker 1: Supreme Court justice today. Obviously significant not only that she
Speaker 1: would be the first black woman on the Court, but
Speaker 1: at a very significant time following the recent ruling on
Speaker 1: abortion rights. Uh Now, oral arguments don't start until October,
Speaker 1: so we may not hear from her in a high
Speaker 1: profile way other than her being sworn in. There could
Speaker 1: be emergency petitions, but at least in the context of
Speaker 1: a historic event that is today at noon and when
Speaker 1: she will be sworn in. All right, Jack Fitzpatrick, our
Speaker 1: congressional reporter at Bloomberg Government, thanks for the update from Washington,
Speaker 1: and you can read more about all these stories on
Speaker 1: Bloomberg dot com or on the Bloomberg terminal. And a reminder,
Speaker 1: you can follow all the latest on Bloomberg Radio in Washington,
Speaker 1: Bloomberg and one oh five point seven FM h D two.
Speaker 1: As we get ready for Mark could open. That does
Speaker 1: pointing to more losses, at least the way the futures
Speaker 1: contracts are going this morning, we see SMP futures down
Speaker 1: down fifty points, a drop of one of the third
Speaker 1: percent down. Futures are down one point one percent, now
Speaker 1: down three thirty five points, and NASDAC futures lower by
Speaker 1: a hundred eighty eight points, that is a drop of
Speaker 1: one point six percent. The tenure treasury is up nine
Speaker 1: thirty seconds, the yield three point zero five percent. Yield
Speaker 1: on the two year right now two point nine eight percent.
Speaker 1: NIMEX crude is moving lower, down a half percent, down
Speaker 1: fifty seven cents at a hundred nine dollars eighteen cents
Speaker 1: of barrel bitcoin right around nineteen thousand dollars. Bloomberg surveillance
Speaker 1: is next. Tom Keen, Jonathan Farrow, and Lisa Brahmbo would
Speaker 1: take you the rest of the way for Karen Moscow.
Speaker 1: I'm Nathan Hagar. This is Bloomberg.