1 00:00:02,560 --> 00:00:05,640 Speaker 1: B from a Bloomberg in directive Brooker Studios is Bloomberg 2 00:00:05,680 --> 00:00:09,240 Speaker 1: Daybreak for Friday, July one, two. Coming up to shower. 3 00:00:09,520 --> 00:00:12,479 Speaker 1: The stunt sell off continues after the worst first half 4 00:00:12,480 --> 00:00:15,159 Speaker 1: in more than fifty years. The feticine focused as a 5 00:00:15,240 --> 00:00:19,400 Speaker 1: top Republican says the Central Bank needs more transparency. Bitcoint 6 00:00:19,440 --> 00:00:22,400 Speaker 1: clause back losses as the digital currency seeks to rebound 7 00:00:22,400 --> 00:00:25,439 Speaker 1: from its worst month ever. Police and Newark are investigating 8 00:00:25,480 --> 00:00:28,200 Speaker 1: a shooting that bloom nine people wounded, plus New York 9 00:00:28,200 --> 00:00:31,680 Speaker 1: City debuts a new DNA gun unit. Catch grimin, I'm 10 00:00:31,680 --> 00:00:35,519 Speaker 1: like blong More and I'm Scott Santenberg, Kevin Durant, what's 11 00:00:35,520 --> 00:00:38,599 Speaker 1: out the latest on NBA free agency? And the Yankees 12 00:00:38,640 --> 00:00:44,520 Speaker 1: fell in Houston? That's all coming up in sports, That's 13 00:00:44,520 --> 00:00:48,319 Speaker 1: all strended head on Bloomberg Daybreak on Bloomberg eleven, Free 14 00:00:48,400 --> 00:00:52,599 Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one 15 00:00:52,640 --> 00:00:56,840 Speaker 1: oh six one, Boston, Bloomberg nine sixties and Francisco Syrius 16 00:00:56,960 --> 00:00:59,280 Speaker 1: x M one nine team and around the world on 17 00:00:59,440 --> 00:01:02,760 Speaker 1: Bloomberg Radio dot Com and via the Bloomberg Business Half. 18 00:01:07,440 --> 00:01:10,400 Speaker 1: Good Morning, I'm Nathan Hagar and I'm Karen Moscow. When 19 00:01:10,400 --> 00:01:13,399 Speaker 1: you we stock Index Future is trimming their declines. This morning, 20 00:01:13,400 --> 00:01:15,080 Speaker 1: we're coming up to six o one on Wall Street, 21 00:01:15,120 --> 00:01:17,160 Speaker 1: and we check the markets every fifteen minutes throughout the 22 00:01:17,160 --> 00:01:20,520 Speaker 1: trading day. On Bloomberg, Guess and P futures are now 23 00:01:20,680 --> 00:01:23,440 Speaker 1: little change, so are Now's deck and down futures. The 24 00:01:23,520 --> 00:01:25,840 Speaker 1: decks in Germany is up sixtensive a percent of the 25 00:01:25,880 --> 00:01:28,800 Speaker 1: ten year treasury up nine thirty seconds, yield two point 26 00:01:28,840 --> 00:01:31,440 Speaker 1: nine seven percent, yield on the two year two point 27 00:01:31,560 --> 00:01:34,840 Speaker 1: nine zero percent. Nathan All. This, Karen, comes after the 28 00:01:35,000 --> 00:01:37,760 Speaker 1: SMP five hundred had its worst first half of the 29 00:01:37,840 --> 00:01:42,560 Speaker 1: year since nine seventy, with inflation and fears of recession 30 00:01:42,640 --> 00:01:46,720 Speaker 1: taking hold. Brent Shooty, chief investment officer at Northwestern Mutual, 31 00:01:46,920 --> 00:01:49,840 Speaker 1: has a positive outlook for the second half. I think 32 00:01:49,880 --> 00:01:52,520 Speaker 1: you're already starting to see signs of inflation pulling back. 33 00:01:52,640 --> 00:01:54,760 Speaker 1: The market is already showing you that they believe it's 34 00:01:54,760 --> 00:01:56,680 Speaker 1: going to pull back. I think that backdrop will lead 35 00:01:56,720 --> 00:01:59,080 Speaker 1: to a stronger second half for stocks because we won't 36 00:01:59,080 --> 00:02:01,000 Speaker 1: have to worry about the said continuing to hike us 37 00:02:01,360 --> 00:02:04,120 Speaker 1: so far into a recession. Um we certainly could have 38 00:02:04,160 --> 00:02:06,040 Speaker 1: a recession, but it would be very, very mild, and 39 00:02:06,080 --> 00:02:08,400 Speaker 1: I think the markets already discounted that branch duty with 40 00:02:08,440 --> 00:02:11,079 Speaker 1: Northwestern Mutual. Thanks. The biggest risk to markets right now 41 00:02:11,200 --> 00:02:15,040 Speaker 1: is rising energy prices and the war in Ukraine. Well, Nathan, Well, 42 00:02:15,160 --> 00:02:17,919 Speaker 1: US futures are a little changed to lower right now. 43 00:02:17,960 --> 00:02:20,520 Speaker 1: It's more of a mixed picture across the pond in Europe. 44 00:02:20,520 --> 00:02:23,040 Speaker 1: Bloombergs you when Parts joins us live from London with 45 00:02:23,080 --> 00:02:25,960 Speaker 1: the latest. Good morning, you win, Good morning Karen and Nathan. 46 00:02:26,000 --> 00:02:29,880 Speaker 1: Plenty of sunshine in London this morning as July gets underway, 47 00:02:29,919 --> 00:02:32,720 Speaker 1: but a damp start of the month for equities for 48 00:02:32,800 --> 00:02:35,320 Speaker 1: europe stocks. He's up two tenths of one per cent 49 00:02:35,480 --> 00:02:39,120 Speaker 1: on lower than average volumes, but damp certainly an improvement 50 00:02:39,160 --> 00:02:41,480 Speaker 1: on the powerful storm that was the first six months 51 00:02:41,480 --> 00:02:43,840 Speaker 1: of the year. It was the worst first half of 52 00:02:43,880 --> 00:02:46,560 Speaker 1: the stocks is hundred since two thousands and eight, the 53 00:02:46,600 --> 00:02:50,160 Speaker 1: European benchmark shedding seventeen percent of its value between January 54 00:02:50,200 --> 00:02:52,520 Speaker 1: and June. Live in London, I'm you and Parts been 55 00:02:52,520 --> 00:02:54,120 Speaker 1: by daybreak all right, you know, and thank you. We 56 00:02:54,160 --> 00:02:57,680 Speaker 1: had some dark clouds overnight in Asia. Let's get the 57 00:02:57,680 --> 00:03:01,000 Speaker 1: recap from Bloomberg's Juliette Sally and singing for a good morning, Juliet, 58 00:03:01,280 --> 00:03:04,040 Speaker 1: Good morning, Nathan and Karen. The MSCI Asia Pacific Index 59 00:03:04,200 --> 00:03:07,000 Speaker 1: started the new trading month quarter and half, where it 60 00:03:07,080 --> 00:03:09,600 Speaker 1: finished off in the red. The gauge fell for a 61 00:03:09,639 --> 00:03:12,240 Speaker 1: third session, led lower by Japan, and tech stocks hit 62 00:03:12,280 --> 00:03:15,960 Speaker 1: hardest on growth concerns. Taiwan's tax on track to enter 63 00:03:16,000 --> 00:03:19,800 Speaker 1: a bear market, down twenty from its January peak. Stocks 64 00:03:19,800 --> 00:03:22,880 Speaker 1: in Maitland, China meandered between gains and losses, and Hong 65 00:03:22,960 --> 00:03:25,720 Speaker 1: Kong was closed for a holiday. The yen climbed, while 66 00:03:25,720 --> 00:03:28,880 Speaker 1: commodity linked currencies were on the back foot, and India's 67 00:03:28,960 --> 00:03:32,880 Speaker 1: rupee dropped to a record loan in Singapore. Juliette Sally, 68 00:03:33,000 --> 00:03:36,800 Speaker 1: Bloomberg Daybreak, Actually thank you well. Oil experiences first monthly 69 00:03:36,840 --> 00:03:40,000 Speaker 1: decline since November. A lower consumer spending in the US 70 00:03:40,080 --> 00:03:43,240 Speaker 1: and fears of a recession pushed prices down. But checking 71 00:03:43,280 --> 00:03:45,880 Speaker 1: prices now and I make screwed. Oil is jumping up 72 00:03:45,920 --> 00:03:48,440 Speaker 1: about one point eight percent. Is at a hundred seven 73 00:03:48,400 --> 00:03:51,120 Speaker 1: dollars sixty cents of barrel, and Brent also higher at 74 00:03:51,120 --> 00:03:54,520 Speaker 1: a hundred eleven dollars seven cents now, bitcoins coming off 75 00:03:54,520 --> 00:03:57,480 Speaker 1: it's biggest ever monthly declined. Karen and traders are getting 76 00:03:57,480 --> 00:04:01,200 Speaker 1: whipste again. This morning, Bloomberg's Rnita joins US Live with 77 00:04:01,240 --> 00:04:04,280 Speaker 1: mar Good morning, Nita, Good morning Nathan. Bitcoing rallied as 78 00:04:04,360 --> 00:04:07,560 Speaker 1: much as eleven percent in Asia earlier today, and it 79 00:04:07,640 --> 00:04:10,640 Speaker 1: quickly gave up most of those games as global equities 80 00:04:10,640 --> 00:04:15,000 Speaker 1: took a dive. Bitcoin's wild swings underscore the uncertainty looming 81 00:04:15,000 --> 00:04:18,279 Speaker 1: over cryptos as investors struggle to assess how far central 82 00:04:18,360 --> 00:04:22,120 Speaker 1: banks will go to tame inflation. And adding to that confusion, 83 00:04:22,480 --> 00:04:25,479 Speaker 1: major crypto players have been thrown into disarrayed by the 84 00:04:25,520 --> 00:04:30,000 Speaker 1: market sell off. That's raising the prospect of further further contagion. 85 00:04:30,760 --> 00:04:33,640 Speaker 1: Right now, bitcoin is trading around nineteen thousand. Live in 86 00:04:33,680 --> 00:04:36,599 Speaker 1: New York. I'm Nita Young Bloomberg Daybreak. I need to 87 00:04:36,600 --> 00:04:39,159 Speaker 1: thank you. Returned to Washington now, where the top Republican 88 00:04:39,200 --> 00:04:41,640 Speaker 1: on the Senate Banking Committee said the economy faces a 89 00:04:41,720 --> 00:04:45,640 Speaker 1: significant risk of recession. Pat Chime points to the Federal Reserve, 90 00:04:45,960 --> 00:04:48,480 Speaker 1: Shane and central Bank has taken a position where they're 91 00:04:48,520 --> 00:04:52,000 Speaker 1: not accountable to anyone. We have the situation where the 92 00:04:52,040 --> 00:04:56,000 Speaker 1: FED is basically stonewall in Congress. The regional banks, and 93 00:04:56,040 --> 00:04:58,680 Speaker 1: to some some extent, the main FED are taking the 94 00:04:58,720 --> 00:05:00,919 Speaker 1: position that what we it is none of your business. 95 00:05:00,960 --> 00:05:03,960 Speaker 1: We're an independent agency. You can't really look very close 96 00:05:03,960 --> 00:05:07,200 Speaker 1: down what we do. That's outrageous, right. The FED exists 97 00:05:07,320 --> 00:05:09,920 Speaker 1: as a creature of Congress, and Senator pat to Me 98 00:05:10,200 --> 00:05:12,919 Speaker 1: says the FED must be more transparent and is subject 99 00:05:12,920 --> 00:05:15,839 Speaker 1: to greater Congressional oversight. He spoke with David Weston on 100 00:05:15,839 --> 00:05:18,840 Speaker 1: Bloomberg's Balance of Power Catch the program weekdays at noon 101 00:05:19,120 --> 00:05:22,480 Speaker 1: on Bloomberg Radio and Television, saying in Washington, Karen fallout 102 00:05:22,480 --> 00:05:25,320 Speaker 1: from this week's January sixth committee hearing remains front and center. 103 00:05:25,400 --> 00:05:28,240 Speaker 1: Vice chair List Cheney says the Secret Service agents involved 104 00:05:28,240 --> 00:05:31,240 Speaker 1: in that reported incident with former President Donald Trump will 105 00:05:31,320 --> 00:05:35,040 Speaker 1: now testify, and Bloomberg said backstair A's the story. Cheney 106 00:05:35,080 --> 00:05:37,520 Speaker 1: says she wants them under oath. The committee has spoken 107 00:05:37,600 --> 00:05:42,240 Speaker 1: to both uh Mr Ornado and Mr Angele. We welcome 108 00:05:42,360 --> 00:05:45,719 Speaker 1: additional testimony, and says the committee will also to tell 109 00:05:45,800 --> 00:05:48,560 Speaker 1: witness intimidation by the White House. The way that I 110 00:05:48,600 --> 00:05:50,320 Speaker 1: would put it is that it gives us a real 111 00:05:50,440 --> 00:05:54,760 Speaker 1: insight into how people around the former president are operating, 112 00:05:54,920 --> 00:05:57,920 Speaker 1: and that they can influence the testimony of witnesses before 113 00:05:57,960 --> 00:06:00,800 Speaker 1: the committee. She says it will draw a lear picture. 114 00:06:01,200 --> 00:06:04,279 Speaker 1: In San Francisco, I'm at Baxter Bloomberg daybreak, All right, 115 00:06:04,320 --> 00:06:06,679 Speaker 1: and thank you. Turning to Hong Kong now, or Chinese 116 00:06:06,720 --> 00:06:10,000 Speaker 1: President Chi Jim paying is presigning over celebrations marking twenty 117 00:06:10,080 --> 00:06:12,280 Speaker 1: five years since the UK returned to Hong Kong or 118 00:06:12,320 --> 00:06:15,440 Speaker 1: returned Hong Kong to China. Former police official John Lee 119 00:06:15,480 --> 00:06:17,920 Speaker 1: has been sworn in as a city chief executive. The 120 00:06:18,000 --> 00:06:20,800 Speaker 1: ceremony comes as Hong Kong sees China tighten its grip 121 00:06:20,920 --> 00:06:22,400 Speaker 1: on the city. All right, let's turn to the war 122 00:06:22,440 --> 00:06:24,960 Speaker 1: in Ukraine now Karen. Russian missile strikes hit an apartment 123 00:06:24,960 --> 00:06:27,880 Speaker 1: building in a recreation center near Odessa earlier today, killing 124 00:06:28,000 --> 00:06:30,960 Speaker 1: eighteen people. This comes after Moscow with Dreids forces from 125 00:06:30,960 --> 00:06:34,640 Speaker 1: the strategic point of Snake Island. Ukrainian President vladimir's Zlinsky 126 00:06:34,800 --> 00:06:37,240 Speaker 1: is welcoming the departure. Moscow says it was moved to 127 00:06:37,279 --> 00:06:40,120 Speaker 1: ease grain shipments. Kiev says Russia was forced up by 128 00:06:40,200 --> 00:06:44,240 Speaker 1: shelling and in corporate noose This morning, Nathan Micron Technology 129 00:06:44,279 --> 00:06:46,920 Speaker 1: out with a week fourcast as consumer has cut back 130 00:06:46,960 --> 00:06:50,080 Speaker 1: on spending for computers and phones. Shares of the largest 131 00:06:50,160 --> 00:06:54,560 Speaker 1: US shipmaker down about three percent in early trading, and futures, well, 132 00:06:54,600 --> 00:06:57,320 Speaker 1: they've been fluctuating just a bit, haven't they. SMP Future 133 00:06:57,360 --> 00:06:59,960 Speaker 1: is now down seven points now, futures down fifty two 134 00:07:00,040 --> 00:07:03,040 Speaker 1: one today features down twenty six. The decks in Germany 135 00:07:03,200 --> 00:07:05,160 Speaker 1: is up for tensive upper cent of the ten Uere 136 00:07:05,200 --> 00:07:08,600 Speaker 1: treasury up eleven thirty seconds held two point nine and 137 00:07:08,680 --> 00:07:11,520 Speaker 1: the yield on the two year two point nine zero percent. 138 00:07:12,160 --> 00:07:15,800 Speaker 1: And a straight ahead your latest local headlines plus a 139 00:07:15,920 --> 00:07:23,640 Speaker 1: check of sports, and this is Bloomberg. All right, Karen, 140 00:07:23,680 --> 00:07:26,040 Speaker 1: thank you. It is now six oh seven on Wall Street. 141 00:07:26,120 --> 00:07:29,280 Speaker 1: We are at seventy three degrees in Central Park. Got 142 00:07:29,360 --> 00:07:31,800 Speaker 1: a disabled vehicle in the northbound Garden State Parkway at 143 00:07:31,840 --> 00:07:35,480 Speaker 1: exit one. They'll slow you down. We'll get more in 144 00:07:35,560 --> 00:07:37,920 Speaker 1: traffic shortly. First Michael Barr with more on what's going 145 00:07:37,960 --> 00:07:39,880 Speaker 1: on in New York and around the world. Michael, thank 146 00:07:39,920 --> 00:07:42,440 Speaker 1: you very much. Nathan. New York Governor Kathy Oakel says 147 00:07:42,520 --> 00:07:46,040 Speaker 1: she will convene a special session over the legislature today 148 00:07:46,360 --> 00:07:49,880 Speaker 1: to begin considering legislation and shrining abortion access in the 149 00:07:50,000 --> 00:07:53,720 Speaker 1: state's constitution. Hocle says the state will take action to 150 00:07:53,760 --> 00:07:56,600 Speaker 1: protect its people in response to Supreme Court rulings on 151 00:07:56,640 --> 00:08:00,840 Speaker 1: abortion rights and gun safety. Meanwhile, New York lawmakers began 152 00:08:01,040 --> 00:08:05,040 Speaker 1: a special legislative session yesterday with the intent of limiting 153 00:08:05,120 --> 00:08:08,800 Speaker 1: the proliferation of firearms in public after the High Court 154 00:08:08,880 --> 00:08:12,480 Speaker 1: gut of the state century old handgun licensing law. Police 155 00:08:12,520 --> 00:08:15,120 Speaker 1: in New Jersey say nine people, including a teenager, were 156 00:08:15,160 --> 00:08:19,440 Speaker 1: wounded last evening in gunfire outside a neighborhood grocery shop 157 00:08:19,600 --> 00:08:23,760 Speaker 1: in Newark. Acting Newark Public Safety Director Rau Malave says 158 00:08:24,000 --> 00:08:26,800 Speaker 1: police are searching for a vehicle belief to have been 159 00:08:26,880 --> 00:08:30,240 Speaker 1: involved in the shooting. We do have a vehicle that 160 00:08:31,000 --> 00:08:33,160 Speaker 1: is of interest at this point. It's a white Honda 161 00:08:33,200 --> 00:08:36,480 Speaker 1: Pilot UH stolen out of Jersey City and we're following that. 162 00:08:36,640 --> 00:08:39,600 Speaker 1: Lead Public Safety Director Malave says all of the victims 163 00:08:39,679 --> 00:08:43,040 Speaker 1: are expected to survive. New York Mayor Eric Adams says 164 00:08:43,120 --> 00:08:45,760 Speaker 1: the city has launched what he calls the country's first 165 00:08:45,840 --> 00:08:49,720 Speaker 1: ever forensic DNA gun crime unit. Adam says the New 166 00:08:49,840 --> 00:08:53,320 Speaker 1: unit with the City Medical Examiner's Office in Manhattan will 167 00:08:53,360 --> 00:08:56,800 Speaker 1: be made up of twenty four full time criminologists who 168 00:08:56,880 --> 00:09:01,079 Speaker 1: will process evidence state of the art. The union will 169 00:09:01,120 --> 00:09:06,040 Speaker 1: accelerate evidence testing from sixty days to thirty days. It's 170 00:09:06,080 --> 00:09:08,600 Speaker 1: going to cut it in half so that we can 171 00:09:09,000 --> 00:09:13,400 Speaker 1: prosecute case faster and get dangerous people off our streets. 172 00:09:13,840 --> 00:09:17,200 Speaker 1: Medical experts say they think COVID could come roaring back 173 00:09:17,280 --> 00:09:20,160 Speaker 1: in the fall. Mayor Adams also says New York City 174 00:09:20,520 --> 00:09:23,719 Speaker 1: announced a new Test to Treat mobile unit. It's a 175 00:09:23,840 --> 00:09:26,800 Speaker 1: joint federal and city program to improve access to the 176 00:09:26,880 --> 00:09:31,439 Speaker 1: COVID antiviral drug Paxlovian. This new public health service will 177 00:09:31,520 --> 00:09:36,479 Speaker 1: help all New yorker is get access to life saving treatments. 178 00:09:36,800 --> 00:09:39,160 Speaker 1: Mayor Adams says the city hopes to open nearly three 179 00:09:39,240 --> 00:09:41,920 Speaker 1: dozen mobile sites by the end of the month. The 180 00:09:42,000 --> 00:09:45,920 Speaker 1: main union for Atlantic City casino workers reached agreements on 181 00:09:46,040 --> 00:09:49,120 Speaker 1: new contracts with four casinos, avoiding a strike on the 182 00:09:49,160 --> 00:09:51,680 Speaker 1: fourth of July weekend. The union didn't provide the tales 183 00:09:51,720 --> 00:09:54,079 Speaker 1: of the settlement, but one president called it the best 184 00:09:54,120 --> 00:09:57,319 Speaker 1: contract we've ever had. Global News twenty four hours a 185 00:09:57,440 --> 00:09:59,800 Speaker 1: day on air and on Bloomberg Quicktake Power by more 186 00:09:59,840 --> 00:10:02,040 Speaker 1: than twenty seven hundred journalists analysts in more than a 187 00:10:02,120 --> 00:10:04,680 Speaker 1: hundred twenty countries on Michael bar This is Bloomberg, Nathan. 188 00:10:04,840 --> 00:10:11,400 Speaker 1: Thank you, Michael, and we're coming up to six ten 189 00:10:11,480 --> 00:10:13,959 Speaker 1: on Wall Straight time to the Bloomberg Sports Update with 190 00:10:14,080 --> 00:10:18,560 Speaker 1: Scott Seidenberg. Thanks Nathan. The bombshell that rocks the NBA 191 00:10:18,679 --> 00:10:22,280 Speaker 1: world Yesterday, Kevin Durant has requested a trade away from 192 00:10:22,360 --> 00:10:25,520 Speaker 1: the Nets. The surprise announcement Colmes just a day after 193 00:10:25,640 --> 00:10:28,040 Speaker 1: Kyrie Irving announced he was opting in it to the 194 00:10:28,120 --> 00:10:31,160 Speaker 1: final year of his deal. Durant has four years remaining 195 00:10:31,320 --> 00:10:34,079 Speaker 1: on his contract. I Meanwhile, the Knicks have come to 196 00:10:34,160 --> 00:10:36,719 Speaker 1: an agreement with free agent point guard Jalen Brunson on 197 00:10:36,760 --> 00:10:40,400 Speaker 1: a four year, one hundred and four million dollars deal. Elsewhere, 198 00:10:40,480 --> 00:10:42,959 Speaker 1: reigning two time m VP Nicola Yokis has agreed to 199 00:10:43,040 --> 00:10:45,880 Speaker 1: a MAX extension with the Nuggets. It's the largest deal 200 00:10:46,440 --> 00:10:50,760 Speaker 1: in NBA history. Also getting max extensions Devin Booker with 201 00:10:50,800 --> 00:10:53,439 Speaker 1: the Son's, John Morant with the Grizzlies, and Karl Anthony 202 00:10:53,520 --> 00:10:56,959 Speaker 1: Towns with the timber Wolves. Baseball yesterday, the Yankees fell 203 00:10:57,080 --> 00:10:59,000 Speaker 1: to the Astros to one. They'll begin a set in 204 00:10:59,160 --> 00:11:03,360 Speaker 1: Cleveland Tonight. The Mets will host the Rangers. Tennis at Wimbledon. 205 00:11:03,440 --> 00:11:08,200 Speaker 1: Wilfela Dow, the Optic Admers, Americans, Coco Golf, and Jessica 206 00:11:08,280 --> 00:11:12,720 Speaker 1: Pagoula move on sixth seed Carolina Plascoba was upset. I'm 207 00:11:12,760 --> 00:11:16,719 Speaker 1: Scott Sedinburg with Bloomberg Sports. Nathan all Right, Scott, thank you. 208 00:11:16,880 --> 00:11:20,640 Speaker 1: Right now, SMP futures are adding to their declines. We 209 00:11:20,960 --> 00:11:23,400 Speaker 1: had seen a little bit of relief for a few 210 00:11:23,480 --> 00:11:26,760 Speaker 1: minutes there, but right now SMP futures are down nine points, 211 00:11:26,800 --> 00:11:28,920 Speaker 1: that is a drop of a quarter percent down, futures 212 00:11:28,960 --> 00:11:32,920 Speaker 1: down eighty four. NASTAC futures leading the declines, now down 213 00:11:32,960 --> 00:11:35,040 Speaker 1: thirty six points, that is a drop of three tenths 214 00:11:35,120 --> 00:11:38,240 Speaker 1: of one percent. Seeing some of the gains in Europe 215 00:11:38,400 --> 00:11:40,720 Speaker 1: pulled back as well. The docks in Germany is now 216 00:11:40,880 --> 00:11:43,079 Speaker 1: up by a two tenths percent, while the cat in 217 00:11:43,120 --> 00:11:46,600 Speaker 1: Paris is hired by three tenths Tenure Treasury is moving 218 00:11:46,720 --> 00:11:50,240 Speaker 1: higher up eleven thirty seconds, pushing the yield now down 219 00:11:50,320 --> 00:11:53,200 Speaker 1: to two point nine seven percent. Yield on the two 220 00:11:53,320 --> 00:11:56,880 Speaker 1: year right at two point eight nine percent. We'll get 221 00:11:56,960 --> 00:11:59,800 Speaker 1: more on this market heading into the second half. Priams 222 00:12:00,080 --> 00:12:03,040 Speaker 1: run Global head of rates that TV Securities joins US. Next, 223 00:12:03,200 --> 00:12:08,520 Speaker 1: this is Bloomberg Bloomberg eleven three O weather mix and 224 00:12:08,559 --> 00:12:10,640 Speaker 1: sun in clouds maybe late day shower storm today with 225 00:12:10,720 --> 00:12:12,319 Speaker 1: highs in the low nineties, will be in the upper 226 00:12:12,400 --> 00:12:16,920 Speaker 1: eighties Tomorrow, low eighties Sunday with storm chances sunshine for 227 00:12:16,960 --> 00:12:22,560 Speaker 1: the fourth of July. Right now seventy three degrees. Markets, 228 00:12:22,679 --> 00:12:25,760 Speaker 1: headlines and breaking news twenty four hours a day at 229 00:12:25,800 --> 00:12:29,760 Speaker 1: Bloomberg dot Com and Bloomberg Business and at Bloomberg Quick Tape. 230 00:12:30,320 --> 00:12:39,200 Speaker 1: He's a Bloomberg Business lash and I'm Karen Moscow. Another 231 00:12:39,280 --> 00:12:42,520 Speaker 1: bout of risk aversion rippling across global markets. That's sending 232 00:12:42,600 --> 00:12:45,719 Speaker 1: US DOT index futures lower and it's lifting bonds. And 233 00:12:46,040 --> 00:12:48,360 Speaker 1: we checked the markets every fifteen minutes throughout the trading 234 00:12:48,440 --> 00:12:50,800 Speaker 1: day on Bloomberg U s and P futures. They have 235 00:12:50,920 --> 00:12:53,480 Speaker 1: trimmed their declines, of course, but they are still down 236 00:12:53,559 --> 00:12:57,120 Speaker 1: about four points right now after fluctuating just a bit down. 237 00:12:57,160 --> 00:12:59,840 Speaker 1: Futures down forty one and as day futures down seven 238 00:13:00,000 --> 00:13:02,400 Speaker 1: seen the decks in Germany is up four tenths of 239 00:13:02,520 --> 00:13:04,760 Speaker 1: upper cent. The ten year treasury up twelve thirty seconds, 240 00:13:04,800 --> 00:13:07,240 Speaker 1: held two point nine six percent yield on the two 241 00:13:07,320 --> 00:13:10,160 Speaker 1: year two point eight nine percent. Nine x Scrude oil 242 00:13:10,320 --> 00:13:12,280 Speaker 1: is at one point seven percent of a dollar eighty 243 00:13:12,320 --> 00:13:14,680 Speaker 1: three and a hundred seven dollars fifty six cents of barrel. 244 00:13:14,920 --> 00:13:16,760 Speaker 1: Go make school. There's down eight tenths per cent or 245 00:13:16,800 --> 00:13:20,240 Speaker 1: fifteen dollars at seventeen ninety two forty announce the Euro 246 00:13:20,360 --> 00:13:22,800 Speaker 1: one point oh four six five against the dollar, British 247 00:13:22,800 --> 00:13:25,360 Speaker 1: found one point two zero seven three the y one 248 00:13:25,400 --> 00:13:27,880 Speaker 1: thirty five point five one and looking at it Bitcoin 249 00:13:28,000 --> 00:13:31,640 Speaker 1: this morning of three point eight percent at nineteen thousand, 250 00:13:31,840 --> 00:13:34,880 Speaker 1: four hundred dollars and as a Bloomberg business flash, now 251 00:13:34,920 --> 00:13:37,200 Speaker 1: here's Michael Barr with Moore. I'm whats going on around 252 00:13:37,240 --> 00:13:39,640 Speaker 1: the world, Michael Karen, thank you very much. Ukraining and 253 00:13:39,679 --> 00:13:43,120 Speaker 1: authorities say there was a Russian missile attack today on 254 00:13:43,320 --> 00:13:46,480 Speaker 1: residential buildings in the coastal town near the port city 255 00:13:46,520 --> 00:13:50,120 Speaker 1: of Odessa. At least eighteen people were killed, including two children. 256 00:13:50,600 --> 00:13:54,439 Speaker 1: The top Republican on the House January sixth Committee Congresswoman 257 00:13:54,520 --> 00:13:57,600 Speaker 1: Liz Cheney says the panel may ask the Justice Department 258 00:13:57,679 --> 00:14:01,920 Speaker 1: to investigate anyone accused of pressure witnesses. W NBA star 259 00:14:02,000 --> 00:14:04,199 Speaker 1: Britney Grinder is set to go on trial today in 260 00:14:04,280 --> 00:14:08,360 Speaker 1: a Moscow area court. Grinder was arrested on cannabis possession 261 00:14:08,440 --> 00:14:11,760 Speaker 1: charges at a Russian airport. In baseball, the Yankees lost. 262 00:14:11,800 --> 00:14:14,599 Speaker 1: Along with the A's Global News twenty four hours a 263 00:14:14,720 --> 00:14:18,240 Speaker 1: day on air and on Bloomberg Quicktake, powered by more 264 00:14:18,320 --> 00:14:21,840 Speaker 1: than journalists and analysts more than a hundred twenty countries. 265 00:14:22,080 --> 00:14:24,960 Speaker 1: I'm Michael bar and this is Bloomberg. Nathan. Okay, Michael. 266 00:14:25,000 --> 00:14:27,480 Speaker 1: Thanks at six nineteen on Wall Street Live from the 267 00:14:27,520 --> 00:14:31,560 Speaker 1: Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and we're 268 00:14:31,600 --> 00:14:34,760 Speaker 1: joined now by Pria Misra, Managing director and global head 269 00:14:34,760 --> 00:14:37,880 Speaker 1: of Rates Strategy at TV Securities, as we make our 270 00:14:37,920 --> 00:14:40,640 Speaker 1: way into this second half of the trading year. Pre 271 00:14:40,960 --> 00:14:43,560 Speaker 1: Good morning. It's really good to speak with you, particularly 272 00:14:43,600 --> 00:14:45,640 Speaker 1: on a morning where we're seeing some big moves in 273 00:14:45,800 --> 00:14:49,720 Speaker 1: the bond market with yields getting pushed lower. How much 274 00:14:49,800 --> 00:14:53,040 Speaker 1: more volatility do you expect in the fixed income space 275 00:14:53,160 --> 00:14:56,480 Speaker 1: as we get into the second half. Good morning, Nathan, 276 00:14:56,840 --> 00:14:59,520 Speaker 1: thanks for having me on you know, I think volatility 277 00:14:59,640 --> 00:15:02,800 Speaker 1: is here to say, because we've got uncertainty around the 278 00:15:02,840 --> 00:15:06,800 Speaker 1: economic outlook, both growth and and really that growth uncertainty 279 00:15:07,000 --> 00:15:09,040 Speaker 1: has been building in the in the last few weeks. 280 00:15:09,160 --> 00:15:11,960 Speaker 1: We have a lot of inflation uncertainty. We also have 281 00:15:12,080 --> 00:15:14,560 Speaker 1: uncertainty around the FED reaction function. You know, how does 282 00:15:14,600 --> 00:15:17,800 Speaker 1: the FED respond to a high inflation, low growth environment. 283 00:15:18,120 --> 00:15:21,120 Speaker 1: So I think in the uncertain environment, volatility stays high. 284 00:15:21,440 --> 00:15:24,200 Speaker 1: I would also argue that liquidity is not great. Um. 285 00:15:24,400 --> 00:15:26,960 Speaker 1: You know, I think you have a an issue with 286 00:15:27,080 --> 00:15:30,480 Speaker 1: dealer intermediation being low. You have an issue with the 287 00:15:30,840 --> 00:15:33,920 Speaker 1: high frequency funds stepping away. So I think we're in 288 00:15:34,160 --> 00:15:36,520 Speaker 1: for some wild moves. I think this is going to continue. 289 00:15:36,800 --> 00:15:39,000 Speaker 1: We really have to watch watch data, and we have 290 00:15:39,040 --> 00:15:41,840 Speaker 1: to watch how the FED response to high inflation. I 291 00:15:41,960 --> 00:15:44,320 Speaker 1: think they're telling us that they're going to look through 292 00:15:44,480 --> 00:15:47,080 Speaker 1: some of the weakness and growth, which is why I 293 00:15:47,160 --> 00:15:49,440 Speaker 1: think the market is nervous. They're going to continue to 294 00:15:49,520 --> 00:15:53,040 Speaker 1: respond to inflation. They have this unconditional commitment to inflation. So, 295 00:15:53,400 --> 00:15:55,160 Speaker 1: you know, we think the front end is a little 296 00:15:55,200 --> 00:15:57,640 Speaker 1: bit overdone. In terms of interest rates. I think they 297 00:15:57,680 --> 00:16:00,480 Speaker 1: can actually can rise. They can do some of the 298 00:16:00,560 --> 00:16:03,400 Speaker 1: decline in the last couple of weeks because inflation is 299 00:16:03,480 --> 00:16:05,640 Speaker 1: still very much a problem, and I think the FED 300 00:16:06,200 --> 00:16:09,640 Speaker 1: is unconditionally, as they said, focused on that. Yeah, and 301 00:16:09,720 --> 00:16:12,480 Speaker 1: we got even more inflation data this week, particularly the 302 00:16:12,800 --> 00:16:16,800 Speaker 1: core PC in the US and Eurozone inflation data showing 303 00:16:17,320 --> 00:16:20,440 Speaker 1: record highs for price pressures there. Does that make a 304 00:16:20,520 --> 00:16:24,560 Speaker 1: case further for frontloading interest rate hikes on both sides 305 00:16:24,600 --> 00:16:27,440 Speaker 1: of the pond? I think so. I mean, the e 306 00:16:27,520 --> 00:16:29,160 Speaker 1: c B has a long way to go. They haven't 307 00:16:29,160 --> 00:16:31,800 Speaker 1: even started the hiking cycle, so you know, we think 308 00:16:32,280 --> 00:16:34,040 Speaker 1: the the e c B will have a lot more 309 00:16:34,080 --> 00:16:36,800 Speaker 1: frontloading to do. The FED has done some of it, 310 00:16:37,080 --> 00:16:39,800 Speaker 1: but I would argue in the US the growth momentum 311 00:16:39,880 --> 00:16:42,040 Speaker 1: is actually much better than in Europe. So we do 312 00:16:42,200 --> 00:16:45,560 Speaker 1: expect the FED as well to you know, hike seventy 313 00:16:45,600 --> 00:16:48,760 Speaker 1: five in July. I think they've sort of said either 314 00:16:48,840 --> 00:16:50,960 Speaker 1: fifty or seventy five, were in the seventy five camp, 315 00:16:51,320 --> 00:16:54,240 Speaker 1: and then actually continue hiking. They want to go above neutral. 316 00:16:54,520 --> 00:16:57,080 Speaker 1: We just be at neutral aft of this seventy five 317 00:16:57,200 --> 00:16:59,400 Speaker 1: hike in in July, so we do think they're going 318 00:16:59,480 --> 00:17:01,440 Speaker 1: to keep going. You know, we're looking at three and 319 00:17:01,480 --> 00:17:03,720 Speaker 1: a half or four percent by the end of the 320 00:17:03,840 --> 00:17:06,240 Speaker 1: year or early next year. That's sort of our call, 321 00:17:06,400 --> 00:17:09,160 Speaker 1: because they really want to put that inflation genie back 322 00:17:09,200 --> 00:17:11,159 Speaker 1: in the bottle, and that's going to require them to 323 00:17:11,280 --> 00:17:14,800 Speaker 1: take interest rates significantly above neutral to start to slow 324 00:17:14,920 --> 00:17:18,240 Speaker 1: things down. Oh do you think that's going to help 325 00:17:18,320 --> 00:17:21,320 Speaker 1: achieve a soft landing by the end of this year 326 00:17:21,400 --> 00:17:24,679 Speaker 1: if rates do go that high. Because as much as 327 00:17:24,760 --> 00:17:28,280 Speaker 1: you say that the growth outlook looks better in the US, 328 00:17:28,400 --> 00:17:31,080 Speaker 1: there is a lot of fear in this market that 329 00:17:31,560 --> 00:17:35,880 Speaker 1: recession could be on the way sooner rather than later. Yeah, 330 00:17:35,920 --> 00:17:38,000 Speaker 1: I think that's a fair point. I mean, if you 331 00:17:38,080 --> 00:17:40,240 Speaker 1: think of the consumer, the labor market is strong, I 332 00:17:40,320 --> 00:17:42,280 Speaker 1: think that's really what's holding it up, which is going 333 00:17:42,320 --> 00:17:45,280 Speaker 1: to make all the payroll numbers extremely important. So that 334 00:17:45,440 --> 00:17:47,720 Speaker 1: you know there is a strong labor market, there's decent 335 00:17:47,800 --> 00:17:50,880 Speaker 1: consumer spending. But I think of the consumer that has 336 00:17:51,040 --> 00:17:54,520 Speaker 1: high inflation now high interest rates, you know, the wealth 337 00:17:54,560 --> 00:17:58,720 Speaker 1: effect from asset class prices falling. I think that's going 338 00:17:58,840 --> 00:18:01,159 Speaker 1: to increase the risk of a session. We'll just not 339 00:18:01,400 --> 00:18:03,960 Speaker 1: in the this year camp. I mean, I think recession 340 00:18:04,000 --> 00:18:06,639 Speaker 1: in the second half of next year looks fairly lightly 341 00:18:06,960 --> 00:18:09,760 Speaker 1: or you know, I'm thinking growth around zero, it's not 342 00:18:10,080 --> 00:18:13,160 Speaker 1: a recession or one percent, it's going to not feel great. 343 00:18:13,480 --> 00:18:16,119 Speaker 1: And when you're running that low close to zero, anything 344 00:18:16,200 --> 00:18:18,639 Speaker 1: can sort of take us negative. So that's how we 345 00:18:18,760 --> 00:18:22,280 Speaker 1: see growth certainly slowing down. Whether it's a soft landing 346 00:18:22,400 --> 00:18:25,040 Speaker 1: or a hard landing. I'm characterizing this is the hardest 347 00:18:25,119 --> 00:18:27,680 Speaker 1: soft landing, meaning you know, growth is going to slow 348 00:18:27,720 --> 00:18:30,000 Speaker 1: down and the FED will not have the ability to respond. 349 00:18:30,040 --> 00:18:31,840 Speaker 1: I think we have to get used to that. We've 350 00:18:31,880 --> 00:18:33,680 Speaker 1: been used to the FED being able to respond to 351 00:18:33,840 --> 00:18:37,359 Speaker 1: any growth shock, but now with if inflation is still 352 00:18:37,560 --> 00:18:39,919 Speaker 1: four percent or five percent, it's going to be very 353 00:18:40,000 --> 00:18:42,120 Speaker 1: hard for them to start to cut rates. I think 354 00:18:42,560 --> 00:18:45,160 Speaker 1: that the market will struggle with much of next year, 355 00:18:45,440 --> 00:18:47,280 Speaker 1: only about thirty seconds left here. But I want to 356 00:18:47,280 --> 00:18:49,560 Speaker 1: go back to your point about a lack of liquidity 357 00:18:49,640 --> 00:18:52,000 Speaker 1: in this market. What's the effect of the rollback of 358 00:18:52,040 --> 00:18:55,080 Speaker 1: the balance sheet by the FED in terms of where 359 00:18:55,520 --> 00:18:59,119 Speaker 1: investments go from here. I'm glad you brought that up. 360 00:18:59,200 --> 00:19:02,399 Speaker 1: That's adding to volatility because it's more supply. It's more 361 00:19:02,480 --> 00:19:04,960 Speaker 1: supply of treasuries and mortgages as the FED is not 362 00:19:05,200 --> 00:19:08,240 Speaker 1: buying and we need to find that marginal bio and 363 00:19:08,359 --> 00:19:10,280 Speaker 1: that's why I think the market moves around as much. 364 00:19:10,320 --> 00:19:13,280 Speaker 1: Auctions will be we'll be watching treasury auctions because that's 365 00:19:13,320 --> 00:19:16,920 Speaker 1: when supply comes in. So I think QUT quantitative tightening 366 00:19:17,119 --> 00:19:20,280 Speaker 1: actually adds to the less liquid environment that we're in. 367 00:19:21,000 --> 00:19:23,600 Speaker 1: Thanks pretty great to get your thoughts this morning, Preamsra 368 00:19:24,000 --> 00:19:27,960 Speaker 1: Managing Director, Global head of Rate Strategy at t D Securities. 369 00:19:28,680 --> 00:19:31,920 Speaker 1: Looking at futures now, a little bit of fluctuation with 370 00:19:32,440 --> 00:19:35,760 Speaker 1: SMP futures now little change down just about one point 371 00:19:35,840 --> 00:19:38,920 Speaker 1: now down futures down twenty one points. That's also little change. 372 00:19:39,000 --> 00:19:44,000 Speaker 1: Danastack futures are a lower by ten points now. European 373 00:19:44,119 --> 00:19:46,879 Speaker 1: stocks actually strengthening a bit here with the decks in 374 00:19:46,960 --> 00:19:49,959 Speaker 1: Germany and the cat in Paris both up a half percent. 375 00:19:50,560 --> 00:19:54,400 Speaker 1: Send your treasury is up thirteen thirty seconds yield two 376 00:19:54,520 --> 00:19:56,760 Speaker 1: point nine six percent, and the yield on the two 377 00:19:56,840 --> 00:19:59,840 Speaker 1: year right now two point nine thirty year yield three 378 00:20:00,040 --> 00:20:08,440 Speaker 1: point one five This is Bloomberg. Bloomberg Daybreak is brought 379 00:20:08,440 --> 00:20:10,840 Speaker 1: to you by Hofstre University's Frank gz RB School of 380 00:20:10,920 --> 00:20:14,119 Speaker 1: Businesses are Executive NBA is built for working professionals that 381 00:20:14,200 --> 00:20:16,560 Speaker 1: can be completed in his few as eleven months. Visit 382 00:20:16,640 --> 00:20:23,840 Speaker 1: Hofstra dot edu slash go grad broadcasting live from the 383 00:20:23,960 --> 00:20:27,920 Speaker 1: Bloomberg Interactive Broker Studio in New York. Bloomberg E Living 384 00:20:27,960 --> 00:20:32,320 Speaker 1: Freedom to Washington, d C Bloomberg, On to Boston Bloomberg 385 00:20:32,400 --> 00:20:35,160 Speaker 1: one O six one to San Francisco Bloomberg and I'm 386 00:20:35,240 --> 00:20:38,320 Speaker 1: sixteen to the country Sirius XM to the one nine team, 387 00:20:38,440 --> 00:20:41,560 Speaker 1: and around the globe the Bloomberg Business app and Bloomberg 388 00:20:41,680 --> 00:20:50,760 Speaker 1: Radio dot com. This is Bloomberg Daybreak. It's six thirty 389 00:20:50,800 --> 00:20:53,239 Speaker 1: on Wall Street. Good morning, I'm Nathan Hager and I'm 390 00:20:53,320 --> 00:20:55,800 Speaker 1: Cameron Moscow. We are just about three hours away from 391 00:20:55,840 --> 00:20:57,840 Speaker 1: the open of US trading. Time to the five things 392 00:20:57,920 --> 00:20:59,720 Speaker 1: you need to notice start your day. Brought to you 393 00:21:00,320 --> 00:21:03,760 Speaker 1: Interactive Brokers I b k R Investment Advisors switched to 394 00:21:03,840 --> 00:21:07,600 Speaker 1: Interactive Brokers for lowest cost global trading and turnkey custody solutions, 395 00:21:07,960 --> 00:21:10,399 Speaker 1: no ticket charges and no conflicts of your interests at 396 00:21:10,440 --> 00:21:14,040 Speaker 1: ibk R dot com slash r I A first, another 397 00:21:14,119 --> 00:21:17,000 Speaker 1: bout of Risk aversion is rippling across Marcus this morning, 398 00:21:17,119 --> 00:21:20,159 Speaker 1: sending us futures and treasury yields lower the S and 399 00:21:20,240 --> 00:21:22,959 Speaker 1: P five hundred head its worst first half since nineteen 400 00:21:23,040 --> 00:21:26,359 Speaker 1: seventy as inflation and fears of a recession take hold. 401 00:21:26,880 --> 00:21:30,520 Speaker 1: Brand Shooty, chief investment officer at Northwestern Mutual, talks about 402 00:21:30,520 --> 00:21:34,240 Speaker 1: the biggest risks for investors. I think the big risk 403 00:21:34,240 --> 00:21:37,440 Speaker 1: still is um certainly what's happening in Russian Ukraine and 404 00:21:37,600 --> 00:21:40,479 Speaker 1: energy prices and how long those stay where they're at, 405 00:21:40,600 --> 00:21:42,639 Speaker 1: and are we, you know, typically, are we going to 406 00:21:42,720 --> 00:21:44,480 Speaker 1: be in more of an energy shock for some period 407 00:21:44,520 --> 00:21:46,520 Speaker 1: of time. That certainly has how to staying power on 408 00:21:46,560 --> 00:21:49,160 Speaker 1: inflation so far. But I think you're starting to see 409 00:21:49,280 --> 00:21:51,879 Speaker 1: everything else kind of depreciate around it, which I think 410 00:21:51,960 --> 00:21:53,680 Speaker 1: is a good news for inflation. But certainly that is 411 00:21:53,720 --> 00:21:56,240 Speaker 1: still one of the bigger risks that's out there. Brand 412 00:21:56,280 --> 00:21:59,120 Speaker 1: Shooting with Northwestern Mutual says he still sees a better 413 00:21:59,240 --> 00:22:01,720 Speaker 1: second half now. Oil is coming off its first monthly 414 00:22:01,760 --> 00:22:04,560 Speaker 1: declined since November. Karen, Lower consumer spending in the US 415 00:22:04,640 --> 00:22:07,280 Speaker 1: and fears of recession pushed prices down. Checking it now, 416 00:22:07,520 --> 00:22:09,879 Speaker 1: prices are moving higher, with nime x screwed up one 417 00:22:09,920 --> 00:22:12,840 Speaker 1: point seven hundred seven dollars fifty five cents of barrel 418 00:22:12,880 --> 00:22:16,439 Speaker 1: brents at nine six Well, Nathan. Fresh off its biggest 419 00:22:16,480 --> 00:22:19,639 Speaker 1: ever monthly decline, Bitcoin is whip sawing traders at the 420 00:22:19,680 --> 00:22:22,600 Speaker 1: wild swings today on Bloomberg's Rnedy Young joins US Live 421 00:22:22,640 --> 00:22:25,760 Speaker 1: with more. Good morning, Nida, Good morning Karen. Bitcoin rallied 422 00:22:25,800 --> 00:22:28,920 Speaker 1: as much as eleven percent in Asia earlier today, it 423 00:22:29,040 --> 00:22:31,880 Speaker 1: quickly gave up most of those games as global equities 424 00:22:31,920 --> 00:22:36,280 Speaker 1: took a dive. Bitcoin's wild swings underscore the uncertainty looming 425 00:22:36,320 --> 00:22:40,040 Speaker 1: over cryptos as investors struggled to assess how far central 426 00:22:40,080 --> 00:22:43,760 Speaker 1: banks will go to tame inflation. And adding to that confusion, 427 00:22:44,040 --> 00:22:47,280 Speaker 1: major crypto players have been thrown into disarrayed by the 428 00:22:47,359 --> 00:22:50,960 Speaker 1: market sell off. That's raising the prospect of further contagion. 429 00:22:51,320 --> 00:22:54,680 Speaker 1: Right now, bitcoin is trading around nineteen thousand Live in 430 00:22:54,760 --> 00:22:57,920 Speaker 1: New York. I'm Reneda Young, Bloomberg Daybreak. Alright, Nita, thanks, 431 00:22:58,000 --> 00:22:59,879 Speaker 1: let's turn to Washington now. Fall out from this week 432 00:23:00,160 --> 00:23:03,040 Speaker 1: January sixth committee hearing remains front and center. Vice chair 433 00:23:03,119 --> 00:23:05,560 Speaker 1: Liz Cheney says the Secret Service agents involved in that 434 00:23:05,640 --> 00:23:08,200 Speaker 1: reported incident with former President Trump are now going to 435 00:23:08,280 --> 00:23:12,439 Speaker 1: testify before Congress and overseas. Chinese President Chi Chin Pengua presider. 436 00:23:12,520 --> 00:23:15,159 Speaker 1: Our celebrations today, marking twenty five years since the UK 437 00:23:15,359 --> 00:23:18,800 Speaker 1: returned Hong Kong to China. The incoming Chief Executive, John Lee, 438 00:23:18,880 --> 00:23:21,920 Speaker 1: a former tomp police official, will be sworn in. And 439 00:23:22,000 --> 00:23:24,080 Speaker 1: that's the five things you need to know to start 440 00:23:24,160 --> 00:23:27,960 Speaker 1: your day. Brought to you by Interactive Brokers. Again, futures 441 00:23:28,040 --> 00:23:31,320 Speaker 1: are lower this morning. Straight ahead, your latest local headlines 442 00:23:31,359 --> 00:23:38,600 Speaker 1: plus the check of sports. And this is Bloomberg. Thanks 443 00:23:38,640 --> 00:23:41,080 Speaker 1: Karen sixty three on Wall Street, seventy three degrees in 444 00:23:41,240 --> 00:23:43,560 Speaker 1: Central Park. We got a fuel leak on the Cuomo 445 00:23:43,680 --> 00:23:48,159 Speaker 1: tapan Zee Bridge. Details coming up in traffic. First Michael 446 00:23:48,200 --> 00:23:50,520 Speaker 1: Barr with what else is going on in New York 447 00:23:50,600 --> 00:23:53,320 Speaker 1: and around the world. Good morning, Michael, Good morning Nathan. 448 00:23:53,400 --> 00:23:56,040 Speaker 1: New York Governor kampy Oakele said she will convene a 449 00:23:56,119 --> 00:24:00,440 Speaker 1: special session of the legislature today to begin considering dislation 450 00:24:00,520 --> 00:24:04,440 Speaker 1: and shrining abortion access in the state's constitution. According to 451 00:24:04,560 --> 00:24:07,000 Speaker 1: a statement over nine from HOCl, the state will take 452 00:24:07,040 --> 00:24:10,800 Speaker 1: an action on protecting its people in response to Supreme 453 00:24:10,840 --> 00:24:14,640 Speaker 1: Court rulings on abortion rights and gun safety. It comes 454 00:24:14,720 --> 00:24:18,640 Speaker 1: as New York lawmakers began a special legislative session yesterday 455 00:24:18,920 --> 00:24:22,680 Speaker 1: with the intent of limiting firearms in public authorities in 456 00:24:22,720 --> 00:24:24,760 Speaker 1: New York. New Jersey say nine people were shot in 457 00:24:24,840 --> 00:24:28,280 Speaker 1: a suspected drive by shooting. New Orks Acting Public Safety 458 00:24:28,320 --> 00:24:33,399 Speaker 1: Director Raoulave. Five of the shooting victims were able to 459 00:24:34,320 --> 00:24:37,320 Speaker 1: get themselves to area hospital on their own. Out of 460 00:24:37,400 --> 00:24:40,360 Speaker 1: those five, one of them was a juvenile seventeen years old. 461 00:24:40,880 --> 00:24:44,359 Speaker 1: All of those victims are in stable condition. Public Safety 462 00:24:44,400 --> 00:24:48,200 Speaker 1: Director of Malave says all those shots are expected to survive. 463 00:24:48,720 --> 00:24:51,480 Speaker 1: New York Mayor Eric Adams calls it the country's first 464 00:24:51,520 --> 00:24:55,000 Speaker 1: ever forensic d n A gun crime unit, as the 465 00:24:55,080 --> 00:24:58,600 Speaker 1: city remains on edge over a number of shootings. Adams 466 00:24:58,600 --> 00:25:02,000 Speaker 1: spoken to news conference outside the Medical Examiner's office in Manhattan. 467 00:25:02,359 --> 00:25:06,560 Speaker 1: The two point five million dollar unit will hire train 468 00:25:06,960 --> 00:25:12,560 Speaker 1: twenty four forensics scientists dedicated to testing and analyzing of 469 00:25:12,760 --> 00:25:16,919 Speaker 1: evidence from gun crimes throughout the five borough Mayor Adams 470 00:25:16,960 --> 00:25:20,120 Speaker 1: says the unit will accelerate evidence testing from sixty days 471 00:25:20,160 --> 00:25:23,119 Speaker 1: to thirty days. New York Governor Cafey Kill signed a 472 00:25:23,160 --> 00:25:26,320 Speaker 1: bill extending mayor or control over the New York City 473 00:25:26,320 --> 00:25:30,920 Speaker 1: school system. The renewal essentially gives mayor Adams unilateral say 474 00:25:31,200 --> 00:25:34,159 Speaker 1: over the schools. The head of the t s A 475 00:25:34,320 --> 00:25:38,600 Speaker 1: expects a busy Fourth of July holiday weekend. Administrator David 476 00:25:38,600 --> 00:25:42,320 Speaker 1: Pokowski says, expect Sunday to be the busiest travel day. 477 00:25:42,880 --> 00:25:44,760 Speaker 1: There are busy periods of time and an airport, just 478 00:25:44,840 --> 00:25:47,280 Speaker 1: like there are busy periods of time on highways. Um. 479 00:25:47,400 --> 00:25:50,000 Speaker 1: And so just anticipate that on the East coast, if 480 00:25:50,040 --> 00:25:52,879 Speaker 1: you're if you have one of the first flights out, um, uh, 481 00:25:53,040 --> 00:25:54,680 Speaker 1: you know it's gonna be busier than then it will 482 00:25:54,680 --> 00:25:56,400 Speaker 1: be at eleven o'clock. And it just kind of rolls 483 00:25:56,400 --> 00:25:59,720 Speaker 1: across the country in that manner. The TSA is David. 484 00:26:00,160 --> 00:26:03,840 Speaker 1: He also told ABC his agency is staffed and airport 485 00:26:03,920 --> 00:26:08,040 Speaker 1: security lines should be moving global news twenty four hours 486 00:26:08,080 --> 00:26:10,560 Speaker 1: a day on air and on Bloomberg Quick Take, powered 487 00:26:10,560 --> 00:26:13,080 Speaker 1: by more than twenty seven hundred journalists analyst more than 488 00:26:13,119 --> 00:26:17,560 Speaker 1: a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan. Okay, Michael, 489 00:26:17,640 --> 00:26:24,840 Speaker 1: thank you. Now we're coming up to six thirty six 490 00:26:25,000 --> 00:26:27,680 Speaker 1: on Wall Street time again for the Bloomberg Sports Update. 491 00:26:27,760 --> 00:26:31,440 Speaker 1: Good morning, Scott Seidenberg. Good morning, Nathan. His NBA free 492 00:26:31,480 --> 00:26:35,320 Speaker 1: agency begins. The Nets received the news yesterday that Kevin 493 00:26:35,400 --> 00:26:39,360 Speaker 1: Durant requesting a trade, the announcement coming just day after 494 00:26:39,520 --> 00:26:42,159 Speaker 1: Kyrie Irving announced that he was opting in to the 495 00:26:42,280 --> 00:26:45,080 Speaker 1: final year of his deal. Durant does have four years 496 00:26:45,119 --> 00:26:48,680 Speaker 1: remaining on his contract. I Meanwhile, the Knicks have come 497 00:26:48,680 --> 00:26:51,199 Speaker 1: to an agreement with free agent point guard Jinlan Brunton 498 00:26:51,280 --> 00:26:54,440 Speaker 1: on a four year, one hundred and four million dollar deal. Elsewhere, 499 00:26:54,480 --> 00:26:57,000 Speaker 1: reigning two time MVP Nicola Yo kits has agreed to 500 00:26:57,040 --> 00:26:59,880 Speaker 1: a MAX extension with the Nuggets. It's the largest deal 501 00:27:00,480 --> 00:27:04,760 Speaker 1: in NBA history. Also getting max extensions Devin Booker with 502 00:27:04,840 --> 00:27:07,439 Speaker 1: the Sons, John Moran with the Grizzlies, and Karl Anthony 503 00:27:07,520 --> 00:27:10,960 Speaker 1: Towns with the timber Wolves. Baseball, yesterday, the Yankees felt 504 00:27:11,000 --> 00:27:13,480 Speaker 1: to the Astros to one, here was Aaron Boone. You 505 00:27:13,520 --> 00:27:15,600 Speaker 1: know they've done a good job of for the most part, 506 00:27:15,680 --> 00:27:20,320 Speaker 1: holding us down, and um, you know that's gonna happen 507 00:27:20,400 --> 00:27:24,240 Speaker 1: sometimes against uh against good teams. The Yankees be gonna 508 00:27:24,240 --> 00:27:26,960 Speaker 1: set in Cleveland tonight that Mets will host the Rangers. 509 00:27:27,440 --> 00:27:32,119 Speaker 1: Dennis at Wimbledon, Raphael Nadal Egos Yacht Tech, Advanced Americans, 510 00:27:32,200 --> 00:27:35,840 Speaker 1: Coco Golf and Jessica Pagoula move on six seed Carolina 511 00:27:35,880 --> 00:27:41,720 Speaker 1: Pluskova was upset. I'm Scott Sedinburg with Bloomberg Sports. Nathan Okay, Scott, 512 00:27:41,760 --> 00:27:43,879 Speaker 1: thank you, six thirty seven on Wall Street. Time to 513 00:27:43,920 --> 00:27:45,760 Speaker 1: take a look at stock some of the names moving 514 00:27:45,840 --> 00:27:48,399 Speaker 1: in the pre market as we kick off the second 515 00:27:48,480 --> 00:27:53,119 Speaker 1: half here. Bloomberg reporter Laura Wright is with us this 516 00:27:53,320 --> 00:27:56,800 Speaker 1: morning keeping an eye on chip stocks, particularly Laura after 517 00:27:56,920 --> 00:28:01,399 Speaker 1: the earnings we got from Micron Technologies exactly micro on 518 00:28:01,440 --> 00:28:04,600 Speaker 1: trading down almost five in the pre market after a 519 00:28:04,800 --> 00:28:08,719 Speaker 1: downbeat forecast for the current quarter that ranges from phones 520 00:28:08,800 --> 00:28:12,200 Speaker 1: to computers. Remember, Micron is the largest US maker of 521 00:28:12,359 --> 00:28:16,639 Speaker 1: memory chips. The problems attributed to supply chain disruption inflation. 522 00:28:16,920 --> 00:28:20,120 Speaker 1: It's worth noticing that demand for their cloud service business 523 00:28:20,320 --> 00:28:23,280 Speaker 1: remains robust, but it's the consumer part of the business 524 00:28:23,560 --> 00:28:26,879 Speaker 1: that has been hit hard and experienced recent weakness. We're 525 00:28:26,880 --> 00:28:30,120 Speaker 1: seeing a read across another chip names and Video down 526 00:28:30,200 --> 00:28:33,920 Speaker 1: one point three and Qualcom down ahead of the bell. 527 00:28:34,320 --> 00:28:39,760 Speaker 1: And speaking of consumers, Laura, big name in consumers space 528 00:28:40,120 --> 00:28:44,760 Speaker 1: calls is diving this morning. Yeah, the department store down 529 00:28:44,960 --> 00:28:50,400 Speaker 1: almost fourteen percent. So a headline broken by CNBC says 530 00:28:50,440 --> 00:28:52,880 Speaker 1: that the department store will be ending sales talks with 531 00:28:53,080 --> 00:28:56,680 Speaker 1: Franchise Group. Franchise Group is the owner of the Vitamin 532 00:28:56,800 --> 00:29:00,560 Speaker 1: Shop or as you might say, Vitamin Shop us UM, 533 00:29:00,720 --> 00:29:03,800 Speaker 1: so the franchise Group had been considering lowering its bid 534 00:29:03,920 --> 00:29:08,240 Speaker 1: to fifty dollars. A chef from sixty that the news 535 00:29:08,320 --> 00:29:10,800 Speaker 1: that the deal is called off means the market reacting 536 00:29:10,840 --> 00:29:14,360 Speaker 1: activity as a result, and uh, of course we're looking 537 00:29:14,440 --> 00:29:18,440 Speaker 1: forward to a lot of us potentially traveling this weekend. 538 00:29:19,400 --> 00:29:23,000 Speaker 1: How are Crew stocks doing this morning? Well, on the whole, 539 00:29:23,080 --> 00:29:25,720 Speaker 1: Crew stocks have had a tough ride of late and 540 00:29:26,040 --> 00:29:30,240 Speaker 1: Royal Caribbean is really the outperformer up one this morning. 541 00:29:30,480 --> 00:29:33,720 Speaker 1: It's an outperformer amongst a sector sell off. Now, analysts 542 00:29:33,800 --> 00:29:37,000 Speaker 1: over at City they think that this sell off has 543 00:29:37,040 --> 00:29:41,480 Speaker 1: been oversold and that the group will eventually offer exceptional upside. 544 00:29:41,840 --> 00:29:45,160 Speaker 1: So following that note, we're seeing a positive reaction ahead 545 00:29:45,160 --> 00:29:47,080 Speaker 1: of the Belva Royal Caribbean and getting us all in 546 00:29:47,120 --> 00:29:50,200 Speaker 1: the spirit of taking a holidays. Yeah, we'll see if 547 00:29:50,240 --> 00:29:53,440 Speaker 1: it works out. How are you crypto stocks doing. We've 548 00:29:53,480 --> 00:29:57,840 Speaker 1: been watching some pretty big moves in bitcoin this morning. 549 00:29:57,960 --> 00:30:01,760 Speaker 1: Is that affecting names that are supposed to the digital 550 00:30:01,840 --> 00:30:06,000 Speaker 1: coin space? Yes, some large durations and Bitcoin this morning 551 00:30:06,240 --> 00:30:08,920 Speaker 1: right now, the cryptocurrency up around two and a half percent, 552 00:30:09,040 --> 00:30:11,640 Speaker 1: just shy of twenty thousand dollars as a result of 553 00:30:11,680 --> 00:30:14,800 Speaker 1: seeing Marathon Digital up two point six percent in pre 554 00:30:15,000 --> 00:30:17,920 Speaker 1: in the pre market and coin based up one point seven. 555 00:30:19,000 --> 00:30:22,200 Speaker 1: But really there is still so much uncertainty about what 556 00:30:22,680 --> 00:30:26,240 Speaker 1: central bank tightening means for cryptocurrencies. And a fun fact 557 00:30:26,320 --> 00:30:30,320 Speaker 1: for you, in June bitcoin dropped and that is the 558 00:30:30,520 --> 00:30:34,280 Speaker 1: steepest drop according to Bloomberg data, going all the way 559 00:30:34,320 --> 00:30:36,760 Speaker 1: back to twenty tents and not out of the weeds yet. 560 00:30:37,160 --> 00:30:40,160 Speaker 1: You have a very interesting definition of fun there. All right, Laura, 561 00:30:40,280 --> 00:30:43,440 Speaker 1: thanks for this. Laura right with us this morning, taking 562 00:30:43,480 --> 00:30:46,120 Speaker 1: a look at stocks on the move in the pre market, 563 00:30:46,480 --> 00:30:49,600 Speaker 1: looking ahead to the open as we get ready to 564 00:30:49,720 --> 00:30:52,640 Speaker 1: kick off the second half. Here, futures are pointing to 565 00:30:53,040 --> 00:30:56,880 Speaker 1: more losses at the moment after the worst drop for 566 00:30:56,960 --> 00:31:02,120 Speaker 1: stock since seventy another on fact, they're SMP futures down 567 00:31:02,480 --> 00:31:06,240 Speaker 1: twelve points, Dow futures down two NASDAC futures are lower 568 00:31:06,400 --> 00:31:09,080 Speaker 1: by fifty one points, and the tenure Treasury is up 569 00:31:09,760 --> 00:31:12,760 Speaker 1: eleven thirty seconds for a yield of two point nine 570 00:31:13,080 --> 00:31:17,560 Speaker 1: seven per cent. You're listening to Bloomberg Daybreak, Good morning, 571 00:31:22,600 --> 00:31:24,560 Speaker 1: Bloomber eleven three oh weather could see a late day 572 00:31:24,560 --> 00:31:26,520 Speaker 1: shower storm as we wrap up the week, going up 573 00:31:26,560 --> 00:31:30,120 Speaker 1: to the low nineties today. Storms possible this weekend, but 574 00:31:30,200 --> 00:31:32,160 Speaker 1: by the fourth of July, we're looking for sunshine in 575 00:31:32,200 --> 00:31:39,440 Speaker 1: a high near five seventy three degrees. Currently, markets headlines 576 00:31:39,520 --> 00:31:42,480 Speaker 1: and breaking news twenty four hours a day at Bloomberg 577 00:31:42,560 --> 00:31:45,600 Speaker 1: dot Com, the Bloomberg Business Out and at Bloomberg Quick 578 00:31:45,680 --> 00:31:55,200 Speaker 1: Tape He's a Bloomberg Business Flash and I'm kerin Moscow, 579 00:31:55,320 --> 00:31:58,760 Speaker 1: and US dot Index futures are starting the morning out lower. 580 00:31:58,880 --> 00:32:01,040 Speaker 1: We go to the First word Break newsdesk for today's 581 00:32:01,080 --> 00:32:04,400 Speaker 1: morning call, and here's Bill Maloney, Bill, good morning, Hey, 582 00:32:04,560 --> 00:32:06,680 Speaker 1: good morning. Can that's right. US features are in the 583 00:32:06,760 --> 00:32:09,000 Speaker 1: red right now, with doubt features down a hundred eight points, 584 00:32:09,000 --> 00:32:12,720 Speaker 1: subs dropped fourteen, and nasdeck features are lower by sixty one. 585 00:32:13,160 --> 00:32:16,040 Speaker 1: The US ten year old at two point nine seven percent, 586 00:32:16,160 --> 00:32:19,360 Speaker 1: Gold is down fifteen, Oil is climbing, and bitcoin is 587 00:32:19,400 --> 00:32:22,520 Speaker 1: trading higher by three point four percent. Japan dropped one 588 00:32:22,560 --> 00:32:24,800 Speaker 1: point seven percent overnight. While your pre markets are in 589 00:32:24,840 --> 00:32:26,960 Speaker 1: the green this morning and back in the US on 590 00:32:27,040 --> 00:32:29,960 Speaker 1: the economic front and nine five manufacturing p M I 591 00:32:30,320 --> 00:32:33,800 Speaker 1: and at ten o'clock construction spending and I s M Manufacturing. 592 00:32:34,200 --> 00:32:37,120 Speaker 1: Dr de Belsnate Micron gave a down beat forecast on 593 00:32:37,200 --> 00:32:41,240 Speaker 1: weakening demand for computers and smartphones. Indian News, Coles is 594 00:32:41,280 --> 00:32:45,240 Speaker 1: down twelve percent prey market on reports sales talks have ended. 595 00:32:45,640 --> 00:32:48,160 Speaker 1: In other news, copper sinks below eight thousands a ton 596 00:32:48,320 --> 00:32:51,880 Speaker 1: for the first time since February of one, and wrapping 597 00:32:51,960 --> 00:32:54,959 Speaker 1: things up, FedEx was put to hold. Will Rett Barrenberg 598 00:32:55,440 --> 00:32:57,479 Speaker 1: live from the First and Breaking News Desk on Bill 599 00:32:57,520 --> 00:32:59,479 Speaker 1: Maloney caring all right, Bill, thank you to here live 600 00:32:59,520 --> 00:33:01,960 Speaker 1: breaking news of your Bloomberg type squawk on your terminal 601 00:33:02,160 --> 00:33:04,760 Speaker 1: squ a w K and that's a Bloomberg business flash. 602 00:33:04,840 --> 00:33:07,080 Speaker 1: Now here's Michael Barrow with more on what's going on 603 00:33:07,240 --> 00:33:09,640 Speaker 1: around the world. Michael, Karen, thank you very much. At 604 00:33:09,720 --> 00:33:13,200 Speaker 1: least eighteen people are dead after Ukrainian authorities say there 605 00:33:13,320 --> 00:33:16,600 Speaker 1: was a Russian missile attack on the residential building in 606 00:33:16,720 --> 00:33:19,760 Speaker 1: a coastal town near the port city of Odessa, two 607 00:33:19,880 --> 00:33:22,840 Speaker 1: of the dead our children. President Biden is urging the 608 00:33:22,960 --> 00:33:26,320 Speaker 1: US Senate to change it's filibuster rules to respond to 609 00:33:26,400 --> 00:33:29,920 Speaker 1: the landmark Supreme Court abortion rights ruling. In response, and 610 00:33:30,000 --> 00:33:33,960 Speaker 1: that Republican leader Mitch McConnell said the President's statement undermines 611 00:33:34,120 --> 00:33:37,840 Speaker 1: justice and the rule of law. In baseball, the Yankees lost, 612 00:33:37,880 --> 00:33:40,640 Speaker 1: along with the a's Global News twenty four hours a 613 00:33:40,720 --> 00:33:44,120 Speaker 1: day on air and on Bloomberg Quicktake, powered by more 614 00:33:44,200 --> 00:33:46,640 Speaker 1: than twenty seven hundred journalists and analysts more than a 615 00:33:46,720 --> 00:33:50,840 Speaker 1: hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Karen, Well, 616 00:33:50,920 --> 00:33:53,400 Speaker 1: thank you. It is sixty nine on Wall Street, and 617 00:33:53,480 --> 00:33:55,760 Speaker 1: we turned to news and science and technology Now with 618 00:33:55,800 --> 00:33:58,600 Speaker 1: a Bloomberg and j I T Stemmer Report brought to 619 00:33:58,640 --> 00:34:01,200 Speaker 1: you buy New Jersey Institute of Technology and j I 620 00:34:01,320 --> 00:34:04,280 Speaker 1: T is dedicated to bolstering support for female and minorities 621 00:34:04,320 --> 00:34:07,959 Speaker 1: students pursuing careers and high paying STEM industries. Learn more 622 00:34:08,040 --> 00:34:10,200 Speaker 1: at n j I T, dot E d U and 623 00:34:10,239 --> 00:34:13,439 Speaker 1: now Here's just making news in science, Technology, engineering, and math. 624 00:34:13,840 --> 00:34:16,400 Speaker 1: Google reached an agreement with US developers that will let 625 00:34:16,480 --> 00:34:20,480 Speaker 1: consumers subscribe to services outside the company's play store, marking 626 00:34:20,560 --> 00:34:23,239 Speaker 1: the latest shift for an app store economy that it 627 00:34:23,400 --> 00:34:28,720 Speaker 1: dominates alongside Apple. The Alphabets division also plans to provide 628 00:34:28,800 --> 00:34:31,400 Speaker 1: ninety million dollars to support developers who are in two 629 00:34:31,440 --> 00:34:34,600 Speaker 1: million dollars or less annually through the company's app store. 630 00:34:34,640 --> 00:34:39,719 Speaker 1: From two six one, Elon must SpaceX one permission from 631 00:34:39,840 --> 00:34:43,880 Speaker 1: US regulators to offer its Starlink broadband from Space service 632 00:34:43,960 --> 00:34:48,320 Speaker 1: to users in vehicles, vessels, and aircraft. The FCC announced decision. 633 00:34:48,520 --> 00:34:52,320 Speaker 1: SpaceX has launched about two thousand first generation satellites in 634 00:34:52,400 --> 00:34:56,440 Speaker 1: its Starling fleet and serves almost five thousand subscribers worldwide. 635 00:34:56,920 --> 00:35:00,279 Speaker 1: And fossils of early human ancestors in South Africa, maybe 636 00:35:00,400 --> 00:35:03,960 Speaker 1: one million years older than previously thought, according to a 637 00:35:04,040 --> 00:35:07,440 Speaker 1: new study by Proceedings of the National Academy of Sciences Journal, 638 00:35:07,800 --> 00:35:10,040 Speaker 1: puts the country back in contention for the place where 639 00:35:10,160 --> 00:35:13,719 Speaker 1: humankind may have originated. That's a Bloomberg n j I 640 00:35:13,840 --> 00:35:17,000 Speaker 1: t STEM report. Nathan Okay, Karen, thank you. We are 641 00:35:17,120 --> 00:35:20,239 Speaker 1: live from the Bloomberg Interactive Broker's studios where it is 642 00:35:20,280 --> 00:35:22,480 Speaker 1: six fifty on Wall Street, and now it's time to 643 00:35:22,600 --> 00:35:24,520 Speaker 1: check what's going on in the c Some of the 644 00:35:24,600 --> 00:35:28,520 Speaker 1: top stories from our nation's capital include President Biden returning 645 00:35:28,600 --> 00:35:31,719 Speaker 1: to drama at home after scoring big wins at the 646 00:35:31,800 --> 00:35:35,080 Speaker 1: NATO summit in Madrid, House Democrats renewing a bid to 647 00:35:35,320 --> 00:35:39,760 Speaker 1: expand federal abortion funding, and Senate Minority Leader Mitch McConnell 648 00:35:39,840 --> 00:35:44,080 Speaker 1: threatening the China Bill over President Biden's tax and climate plans. 649 00:35:44,280 --> 00:35:46,399 Speaker 1: Let's get more on all these stories now. We're joined 650 00:35:46,440 --> 00:35:50,600 Speaker 1: life by Bloomberg Government reporter Emily Wilkins. Emily, good morning. 651 00:35:50,719 --> 00:35:54,000 Speaker 1: So the President did get a lot of victories at 652 00:35:54,040 --> 00:35:58,160 Speaker 1: the Madrid summit, but was that overshadowed by what's going 653 00:35:58,239 --> 00:36:02,839 Speaker 1: on here at home domestically? Yes, I mean Biden can 654 00:36:02,880 --> 00:36:06,200 Speaker 1: feel good about what he did over in Europe with NATO. 655 00:36:06,719 --> 00:36:09,400 Speaker 1: You got two more members added there. That was partly 656 00:36:09,480 --> 00:36:13,120 Speaker 1: due to President Biden's maneuvering UH to track talking with 657 00:36:13,239 --> 00:36:16,680 Speaker 1: other leaders who had some concerns. They've also continued to 658 00:36:16,760 --> 00:36:21,040 Speaker 1: remain very unified in their front against Russia in support 659 00:36:21,160 --> 00:36:23,960 Speaker 1: of Ukraine. But that really didn't done a lot of 660 00:36:24,040 --> 00:36:26,759 Speaker 1: deadlines at home, where most people will continue to be 661 00:36:26,840 --> 00:36:30,239 Speaker 1: concerned about the ruling um from the Supreme Court last 662 00:36:30,280 --> 00:36:33,680 Speaker 1: week over turning Rod Wade, as well as other additional 663 00:36:33,800 --> 00:36:36,080 Speaker 1: rulings that have come down in recent days, plus the 664 00:36:36,160 --> 00:36:39,440 Speaker 1: January six testimony. Nathan, It's just been a really busy 665 00:36:39,600 --> 00:36:42,719 Speaker 1: news week, and that is very much overshadowed anything that 666 00:36:42,840 --> 00:36:45,719 Speaker 1: Biden was doing in Europe. Yeah, and um um. Much 667 00:36:45,760 --> 00:36:48,480 Speaker 1: as you've talked about the unity among NATO members, it 668 00:36:48,600 --> 00:36:50,880 Speaker 1: looks like we're starting to see a lot of disunity, 669 00:36:51,200 --> 00:36:56,479 Speaker 1: particularly among Democrats, over how to go forward on abortion rights. 670 00:36:56,640 --> 00:37:00,560 Speaker 1: We heard the President yesterday say that he supports carve 671 00:37:00,640 --> 00:37:04,719 Speaker 1: out to the filibuster to codify Roe v. Wade into law, 672 00:37:04,960 --> 00:37:09,480 Speaker 1: but there's a lot of challenges on both sides of 673 00:37:09,600 --> 00:37:12,640 Speaker 1: the democratic spectrum, if we can term it that way, 674 00:37:12,760 --> 00:37:16,799 Speaker 1: on how the president should go forward on abortion rights. Absolutely, Natan, 675 00:37:16,800 --> 00:37:19,359 Speaker 1: I mean you're completely right here. I mean, you saw 676 00:37:19,360 --> 00:37:21,759 Speaker 1: a Biden call up for the end of the filibuster 677 00:37:21,880 --> 00:37:25,920 Speaker 1: to pass legislation on abortion rights, codefine Roe v. Wade. 678 00:37:26,200 --> 00:37:28,920 Speaker 1: But that's not gonna happen because Senator Joe Mansion and 679 00:37:28,960 --> 00:37:32,160 Speaker 1: Senator Kristin Sema are not in support of overturing filibuster 680 00:37:32,320 --> 00:37:34,920 Speaker 1: for anything. We saw that earlier this year and and 681 00:37:35,000 --> 00:37:38,600 Speaker 1: their stances on that particular point have not changed. Meanwhile, 682 00:37:38,800 --> 00:37:41,719 Speaker 1: you have more progressive members of the Democratic Party who 683 00:37:41,760 --> 00:37:44,880 Speaker 1: are saying that they this is time to absolutely overhaul 684 00:37:44,960 --> 00:37:47,359 Speaker 1: the courts, that they need to pack the courts. They're 685 00:37:47,400 --> 00:37:50,880 Speaker 1: calling on major changes to be made. Really, though to 686 00:37:50,960 --> 00:37:53,799 Speaker 1: a large extent, Democrats hands are taught. I mean we've 687 00:37:53,840 --> 00:37:56,880 Speaker 1: seen actually them try to start finding ways and the 688 00:37:57,080 --> 00:38:03,520 Speaker 1: must pass government funding bills too. Oh, it sounds like 689 00:38:03,640 --> 00:38:09,040 Speaker 1: we lost Emily Wilkins connection there as she's covering all 690 00:38:09,120 --> 00:38:12,320 Speaker 1: the events happening in the nation's capital. I think she 691 00:38:12,480 --> 00:38:14,879 Speaker 1: was getting ready to mention an effort there by House 692 00:38:14,960 --> 00:38:21,000 Speaker 1: Democrats on Capitol Hill to add federal abortion funding to Medicaid. 693 00:38:21,160 --> 00:38:24,279 Speaker 1: But that's going to be difficult to pass because if 694 00:38:24,320 --> 00:38:27,000 Speaker 1: anything from the House goes over to the Senate needs 695 00:38:27,040 --> 00:38:29,880 Speaker 1: to get sixty votes. And as she was just mentioning 696 00:38:29,960 --> 00:38:34,799 Speaker 1: there with senators a mansion in Cinema opposed to carve 697 00:38:34,880 --> 00:38:38,400 Speaker 1: outs to the filibuster, it's gonna be difficult to pass 698 00:38:38,520 --> 00:38:41,200 Speaker 1: just about anything. And it sounds like we got Emily 699 00:38:41,280 --> 00:38:44,680 Speaker 1: Wilkins back on the line there just to follow up 700 00:38:44,800 --> 00:38:48,600 Speaker 1: on the point, Emily, just the fact that, uh, when 701 00:38:48,680 --> 00:38:53,560 Speaker 1: you have anything that is outside a budget reconciliation bill, 702 00:38:53,840 --> 00:38:57,160 Speaker 1: it's just about difficult to get anything passed in the 703 00:38:57,280 --> 00:39:02,960 Speaker 1: Senate with a sixty vote majority, right, particularly on abortion rights. Absolutely, 704 00:39:03,280 --> 00:39:06,480 Speaker 1: and that's Democrats can't even really get abortion rights done 705 00:39:06,600 --> 00:39:09,799 Speaker 1: be a reconciliation because remember that needs to be very 706 00:39:09,880 --> 00:39:12,200 Speaker 1: much related to the budget, and they've already kind of 707 00:39:12,280 --> 00:39:14,120 Speaker 1: got that outline of what they can and can't do 708 00:39:14,239 --> 00:39:17,960 Speaker 1: with reconciliation right now, so that avenue is essentially closed 709 00:39:18,040 --> 00:39:21,399 Speaker 1: them as well. And so yes, Democrats kind of phase 710 00:39:21,520 --> 00:39:24,439 Speaker 1: this point where they're hoping to make some incremental wind 711 00:39:24,600 --> 00:39:27,320 Speaker 1: some tiny things. Um they like added a provision to 712 00:39:27,440 --> 00:39:30,320 Speaker 1: a spending bill that basically says the Department of Justice 713 00:39:30,360 --> 00:39:32,960 Speaker 1: can't prosecute women who cross state finds to get abortion. 714 00:39:33,320 --> 00:39:36,080 Speaker 1: And they'll be considering legislation in July that will deal 715 00:39:36,160 --> 00:39:40,920 Speaker 1: with h data privacy around reproductive apps, security at tracking apps, 716 00:39:41,239 --> 00:39:43,160 Speaker 1: and those are all things that are meant to sort 717 00:39:43,160 --> 00:39:46,840 Speaker 1: of address potential concerns in a post real world. But 718 00:39:46,960 --> 00:39:49,759 Speaker 1: in terms of major things that they can do, I mean, 719 00:39:49,920 --> 00:39:52,120 Speaker 1: unless you sort of get everyone on board with some 720 00:39:52,200 --> 00:39:56,080 Speaker 1: of these more radical ideas about changing the court, there's 721 00:39:56,120 --> 00:39:58,280 Speaker 1: not a lot that Democrats can do with their current 722 00:39:58,360 --> 00:40:01,640 Speaker 1: slim margins in Congress. And on top of all this, Emily, 723 00:40:01,760 --> 00:40:05,040 Speaker 1: we're hearing a threat from Senate Minority Leader Mitch McConnell 724 00:40:05,320 --> 00:40:10,480 Speaker 1: on holding up the China Competitiveness Bill. What's going on there? Yeah, 725 00:40:10,600 --> 00:40:14,080 Speaker 1: Remember this is that big, big bill that both Democrats 726 00:40:14,120 --> 00:40:16,640 Speaker 1: and Republicans are working on right now. It's not more 727 00:40:16,680 --> 00:40:20,320 Speaker 1: than fifty billion dollars for semi conductors and manufacturing. And 728 00:40:20,560 --> 00:40:23,239 Speaker 1: when Congress left town, they were feeling pretty good about it. 729 00:40:23,320 --> 00:40:26,359 Speaker 1: Work was getting done, progress was being made. You heard 730 00:40:26,400 --> 00:40:28,400 Speaker 1: from a number of lawmakers who said, we really do 731 00:40:28,560 --> 00:40:31,160 Speaker 1: think that we can pass this by the end of July, 732 00:40:31,360 --> 00:40:34,120 Speaker 1: so by the end of this month. But now because 733 00:40:34,200 --> 00:40:36,640 Speaker 1: news has come out that Democrats are continuing to work 734 00:40:36,680 --> 00:40:39,440 Speaker 1: it on a go alone reconciliation plan that would include 735 00:40:39,840 --> 00:40:42,280 Speaker 1: US some new taxes as well as some climate measures, 736 00:40:42,520 --> 00:40:46,000 Speaker 1: Mitch McConnell came out yesterday in a tweet and basically said, hey, 737 00:40:46,200 --> 00:40:48,120 Speaker 1: you can have one or you can have the other. 738 00:40:48,280 --> 00:40:51,799 Speaker 1: If you're going to try to do uh, this reconciliation bill, 739 00:40:52,160 --> 00:40:55,680 Speaker 1: this sort of US successor to build back better than 740 00:40:56,000 --> 00:40:58,480 Speaker 1: Republicans are not going to continue to support the U 741 00:40:58,600 --> 00:41:01,439 Speaker 1: S China Competition bill, and so that kind of puts 742 00:41:01,520 --> 00:41:04,080 Speaker 1: Democrats in a tight spot. They were definitely hoping to 743 00:41:04,280 --> 00:41:07,279 Speaker 1: be able to not to legislative victories there. But as 744 00:41:07,360 --> 00:41:09,080 Speaker 1: you mentioned, Nathan, I mean, they can go it alone 745 00:41:09,080 --> 00:41:12,200 Speaker 1: and reconciliation, they cannot go it alone on the US 746 00:41:12,280 --> 00:41:14,960 Speaker 1: China competitive this bill. They will need Republicans for that. 747 00:41:15,560 --> 00:41:17,560 Speaker 1: It's only about a minute left here, Emily. But what's 748 00:41:17,600 --> 00:41:20,239 Speaker 1: the reaction from the sector, the chip sector. I mean, 749 00:41:20,280 --> 00:41:22,920 Speaker 1: we've heard from the CEO of Intel saying that without 750 00:41:22,960 --> 00:41:24,680 Speaker 1: this China bill he's not going to be able to 751 00:41:24,719 --> 00:41:29,040 Speaker 1: build new factories or expand the ones he's got. No, absolutely, 752 00:41:29,080 --> 00:41:31,120 Speaker 1: I mean, I get the sector is very much pushing 753 00:41:31,120 --> 00:41:34,200 Speaker 1: for these bills. I talked to lawmakers UM the other 754 00:41:34,280 --> 00:41:36,759 Speaker 1: week before they left town, and they were saying that 755 00:41:36,880 --> 00:41:39,680 Speaker 1: they were getting pressure from the companies in their districts, 756 00:41:39,760 --> 00:41:42,560 Speaker 1: basically saying, hey, if you guys don't move this bill, 757 00:41:42,760 --> 00:41:45,640 Speaker 1: if you don't start producing more chips here in the US, 758 00:41:45,920 --> 00:41:48,960 Speaker 1: we're gonna start need to look overseas for suppliers. We're 759 00:41:48,960 --> 00:41:50,320 Speaker 1: not going to be able to go to the U 760 00:41:50,480 --> 00:41:53,080 Speaker 1: S companies anymore. And so there's certainly a lot of 761 00:41:53,200 --> 00:41:56,200 Speaker 1: external pressure on lawmakers to act right now. It will 762 00:41:56,239 --> 00:41:58,879 Speaker 1: be interesting to see exactly how this one plays out, 763 00:41:59,000 --> 00:42:02,720 Speaker 1: because it's a credible threat made by McConnell, but certainly 764 00:42:02,880 --> 00:42:05,759 Speaker 1: Democrats still control both chambers. Will be interesting to see 765 00:42:05,760 --> 00:42:08,120 Speaker 1: if they can make this work somehow, And certainly going 766 00:42:08,239 --> 00:42:11,440 Speaker 1: overseas to get chips is something that this bill is 767 00:42:11,600 --> 00:42:15,480 Speaker 1: designed to do, the exact opposite of something. Definitely to 768 00:42:15,640 --> 00:42:17,960 Speaker 1: watch going forward. Here we know you'll be doing that. 769 00:42:18,440 --> 00:42:21,680 Speaker 1: Bloomberg Government's Emily Wilkins with us from the nation's capital. 770 00:42:21,719 --> 00:42:23,600 Speaker 1: You can read more about all these stories on Bloomberg 771 00:42:23,680 --> 00:42:26,120 Speaker 1: dot com or on the Bloomberg terminal. Listen to Bloomberg 772 00:42:26,239 --> 00:42:30,759 Speaker 1: Radio in Washington. Bloomberg one oh five point seven FM 773 00:42:30,960 --> 00:42:35,000 Speaker 1: h D two SMB futures adding to the klins Now 774 00:42:35,040 --> 00:42:37,600 Speaker 1: down thirteen points. Staff futures down a hundred. For Dastack, 775 00:42:37,680 --> 00:42:42,600 Speaker 1: futures are lower by fifty six points. Bloomberg Surveillance is next. 776 00:42:42,800 --> 00:42:47,799 Speaker 1: For Karen Moscow. I'm Nathan Hager, and this is Bloomberg