Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg
Speaker 1: day Break for Monday AUGUSTO. Coming up this hour, we
Speaker 1: sent it passes a landmark tax, climate and healthcare bill.
Speaker 1: Wall Street races for another key report on inflation. Morgan
Speaker 1: Stanley Guildman stratagist predicted dimming profit outlook for Corporate America,
Speaker 1: and the CEO of Carlisle Grove unexpectedly steps down New
Speaker 1: York Bringer Adams says they're welcome, but it's criticizing Governor
Speaker 1: Abbot after sending the second bus load of my grants
Speaker 1: from Texas. Michael Barr more ahead, I'm John Stanstown Sport.
Speaker 1: Jacob de Grand pitched the Mets to victory over the Brave.
Speaker 1: They won four or five of the series. The Yankee
Speaker 1: swept in St. Louis. That's all trended ahead on Bloomberg
Speaker 1: Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine
Speaker 1: sixties and Francisco Sirius x M one nine team and
Speaker 1: around the world on Bloomberg Radio. Dove Carmen by the
Speaker 1: Bloomberg Business app. Good morning. I'm John Tucker and I'm
Speaker 1: Nathan Hagar. US futures are on the rise this morning.
Speaker 1: We're coming up to six oh one on Wall Street,
Speaker 1: and we checked the markets every fifteen minutes during the
Speaker 1: trading day. On bloomberg SMP futures are up ten points,
Speaker 1: Staff futures up sixty eight. Nasdaq futures higher by forty
Speaker 1: eight points. The tenure Treasury is up seven thirty seconds.
Speaker 1: The yield two point seven nine percent yield on the
Speaker 1: two year three point to zero nime X screwed is
Speaker 1: down eight tenths percent at eighty eight dollars twenty nine
Speaker 1: cents a bear all, John and Nathan. We're gonna have
Speaker 1: more on the markets in a minute, but first let's
Speaker 1: start in Washington. Over the weekend, the Senate passing a
Speaker 1: landmark tax, climate and healthcare bill, fifty grant See in
Speaker 1: favor of the measure, fifty Republicans against it, with Vice
Speaker 1: President Kamala Harris casting the tide breaking vote. When it
Speaker 1: comes to what's next in the bill, we get more
Speaker 1: from Bloomberg's and Baxter. The top one percent avoided the
Speaker 1: tax increases liberal Democrats had wanted at the beginning. There
Speaker 1: will be a tax on stock buybacks. The legislation also
Speaker 1: aims to prevent large corporations from exploiting tax breaks, and
Speaker 1: there will be a fifteen percent minimum. It did not
Speaker 1: raise the salt deduction on the climate side, and sentives
Speaker 1: to cut greenhouse gases with a hope to cut emissions
Speaker 1: by about forty from two thousand five levels by the
Speaker 1: end of the decade. It will extend the tax credit
Speaker 1: on e v s, but there'll be restrictions that US
Speaker 1: electric car makers say will exclude seventy of vehicles, and
Speaker 1: Medicare will be allowed to negotiate drug prices. In San Francisco,
Speaker 1: I'm at Baxter Bloomberg Daybreak, All right, and thank you.
Speaker 1: On Wall Street today, the fit is in focus after
Speaker 1: Friday's strong jobs report, Speculation is growing that another seventy
Speaker 1: five basis point rate hike could becoming. San Francisco FED
Speaker 1: president Mary Daily tells CBS the Central Bank has a
Speaker 1: lot of work ahead. We are far from done yet.
Speaker 1: That's the promise of the American people. We are far
Speaker 1: for gun. We're committed to bringing inflation down and we'll
Speaker 1: continue to work until that job is fully done. So
Speaker 1: it would still be appropriate to raise rates in September
Speaker 1: by half. Absolutely, and you know we need to be
Speaker 1: data dependent. Mary Daily made those comments to Margaret Brennan
Speaker 1: on CBSS Face the Nation and catch the program Sunday
Speaker 1: afternoons on Bloomberg Radio and Mary Daily in the Fed.
Speaker 1: Get another key report on inflation this week. That's Wednesday,
Speaker 1: when the government releases the consumer price Index for July.
Speaker 1: Let's get a preview from Bloomberg's Vinny down Judas we
Speaker 1: may see some moderation as energy prices retreat. Economists say
Speaker 1: the US household inflation rate as tracked by the Consumer
Speaker 1: Price Index, probably slipped below nine in July. June's on
Speaker 1: nine point one percent jump the fastest since nine The
Speaker 1: bad old based for inflation. Inflation remains far above the
Speaker 1: Federal Reserves two percent target in the aftermathas supply shortages
Speaker 1: and delays. This week's date on US producer prices and
Speaker 1: import prices may also model rate any doubt, Judics Bloomberg Daybreak, Okay, Thenny,
Speaker 1: thank you, And as we await that report and inflation,
Speaker 1: the outlook from consumers is turning more gloomy. When you
Speaker 1: ask most Americans, they say the economy is getting worse.
Speaker 1: Bloomberg's Doug Krisner has the details. A poll from ABC
Speaker 1: News IPSOS found about sixty of those surveyed think the
Speaker 1: economy is deteriorating. That's the highest since two thousand and eight.
Speaker 1: The poll also finds only thirty seven percent saying they
Speaker 1: approve of how President Biden is handling the recovery. That's
Speaker 1: unchanged from June. We're just three months before the midterm elections.
Speaker 1: US employment is back to pre pandemic levels, but inflation
Speaker 1: is the hottest in decades and more stubborn than expected.
Speaker 1: Demand for gasoline in the US is now nine percent
Speaker 1: below last year in New York. I'm Duck Prisonner, Bloomberg Daybreak.
Speaker 1: Thanks Doug. Also earnings to watch this week. We get
Speaker 1: results from nearly two dozen companies in the SMP five hundred.
Speaker 1: It was good. More from Bloomberg's Charlie Pillett. Traders will
Speaker 1: continue to parse corporate earnings reports against a backdrop of
Speaker 1: aggressive rate hikes. Kim Forest, as chief investment officer at
Speaker 1: Bouquet Capital Partners. Companies are saying their visibility for the
Speaker 1: next six months is whatever and they're maintaining more or
Speaker 1: less maintaining their their estimates. So I think that speaks well.
Speaker 1: These companies know their business. They know they can't set
Speaker 1: the bar too high for themselves, so it's probably kind
Speaker 1: of low. Among the names reporting this week, Walt Disney,
Speaker 1: Coin Based Global, a I G. Barrack Gold and Tyson
Speaker 1: Foods in New York, Charlie Pellett bloom Bird Daybreak, Thanks Charlie.
Speaker 1: A dimming earnings outlook has at odds with the recent
Speaker 1: rebound in stock markets. That's according to strategist of Morgan
Speaker 1: Stanley and Goldman Sachs. Both Morgan Stanley's Mike Wilson and
Speaker 1: Goldman's David Constant expect corporate profit margins to contract next
Speaker 1: year given unrelenting cost pressures. In fact, Wilson says, quote,
Speaker 1: the best part of the rally is over. Warren Buffett
Speaker 1: is following an age old strategy by the dip, but
Speaker 1: do it cautiously, Buffets Bertshire Hathaway stepping in as the
Speaker 1: some B five shed six team percent to even the
Speaker 1: latest quarter. It was a net buyer of equities, reporting
Speaker 1: three point eight billion dollars in purchases. What's a different
Speaker 1: story than last year when it was a net seller
Speaker 1: in the second quarter of one. Now there's a surprise
Speaker 1: change at the top of private equity giant Carlisle Group.
Speaker 1: John CEO Q Song Lee has stepped down. Lee's five
Speaker 1: year employment contract was due to expire at the end
Speaker 1: of this year. Bloomberg Goose has learned Lee and Carlisle's
Speaker 1: board had clashed over his contract in recent discussions. The
Speaker 1: firm's co founder, Bill Conway will step in as interim CEO.
Speaker 1: And a major development on the pandemic front in Hong Kong.
Speaker 1: That city's gonna shorten hotel quarantine times for rivals starting Friday.
Speaker 1: Bloomberg Daybreak Asia anchor Bryant Curtis has more from Hong Kong.
Speaker 1: People will only need to spend three days in quarantine
Speaker 1: now down from seven. Their movements will be restricted for
Speaker 1: four additional days after that, but they can leave their residents.
Speaker 1: This marks a fundamental break from China's strict COVID zero policies.
Speaker 1: Business groups say it's a step in the right direction,
Speaker 1: but they'd like to see quarantine dropped altogether in Hong Kong.
Speaker 1: Brian Curtis Bloomberg Daybreak, All right, Brian, thank you Ahead
Speaker 1: of the cash on Wall Street futures in the green
Speaker 1: right now, the down futures of eighty two s and
Speaker 1: P futures of twelve, the NASDAK futures of fifty two points.
Speaker 1: This is Bloomberg seven of Wall Street. Time to bring
Speaker 1: in Michael Barr to find out what else is going
Speaker 1: on in New York hand around the world, John, thank
Speaker 1: you kindly. The heat continues to cause air condition there's
Speaker 1: to blast on the high and the Dry State area.
Speaker 1: Bloomberg needi elogist Rob Carolin reports, Michael, the heat wave
Speaker 1: across the Tristate area continues for a couple more days.
Speaker 1: National Weather Service has a heat advisory effect through eight
Speaker 1: pm tomorrow evening, but we will be breaking the heat
Speaker 1: wave on Wednesday. Frontal system be dropping down from the north.
Speaker 1: Will see showers and thunderstorms Wednesday. It only gets to
Speaker 1: eighty five, and it looks more comfortable for Thursday and Friday,
Speaker 1: but it's gonna be tough today and tomorrow with highs
Speaker 1: between ninety and nine. Michael, Thank you. Rob. A second
Speaker 1: bus load of migrants from Texas arrived in New York
Speaker 1: City yesterday as part of Governor Greg Abbott's plan to
Speaker 1: send migrants from his state to so called sanctuary cities.
Speaker 1: Abbot claims that his state can handle the influx in
Speaker 1: that cities that say they can should take the burden
Speaker 1: off the border states who are getting intundated. But New
Speaker 1: York City Mayor Eric Adams says the migrants who are
Speaker 1: coming to his city are being forced onto the buses
Speaker 1: without warning and that officials and volunteers are doing what
Speaker 1: they can to help them there. Adams also says Texas
Speaker 1: officials are not in touch with anyone in New York.
Speaker 1: Did not let us know what time the buses are leaving,
Speaker 1: did not let us know or what it needs of
Speaker 1: the people on the bus. They not giving us any information,
Speaker 1: so we're unable to really provide the service of people
Speaker 1: en route, and we would like to get that information.
Speaker 1: New York Mayor Eric Adams says the city welcomes them
Speaker 1: and will provide assistance, but has asked for federal help.
Speaker 1: New York City police are looking for us suspect they
Speaker 1: say stabbed a man in the back on the subway
Speaker 1: station outside Yankee Stadium yesterday afternoon. The man was spotted
Speaker 1: in the subway system after the attack and has been
Speaker 1: estimated between seventeen and twenty one years old. The victim,
Speaker 1: who goes by the name Leo, tells ABC he was
Speaker 1: waiting for the D train when a stranger invaded his
Speaker 1: personal space. I had to let him know, like, excuse
Speaker 1: me little you know, young men, get out my personal face.
Speaker 1: I'm not the ones that you bothered today. You had
Speaker 1: a long day. It's hot. I look back once. He
Speaker 1: didn't move. I look back again. He's still in that movie.
Speaker 1: Leo says he believes he was targeted as a gay man.
Speaker 1: He is expected to make a full recovery. A fragile
Speaker 1: ceasefire deal to nearly three days of fighting between Israel
Speaker 1: and Palestinian militants has held throughout the night. The Lada's
Speaker 1: clash has killed forty three Palestinians and upended Israeli lives.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quick Take, powered by more than twenty seven
Speaker 1: hundred journalists and analysts and more than a hundred twenty
Speaker 1: country Is that Michael Barr? This is Bloomberg, John, Michael,
Speaker 1: thank you. They had to sound six ten of Wall
Speaker 1: Street time for the Bloomberg Sports Uptaked Morning. John Stas Shower.
Speaker 1: Good morning, John, Welcome back to City Phield. Jacob de Graham.
Speaker 1: I'm the mound there for the first time in more
Speaker 1: than a year. And all he did was for five
Speaker 1: perfect innings in the sixth to walk in a home run,
Speaker 1: so his day was done. He got seventeen outs and
Speaker 1: twelve were strikeouts. Mets scored for some runs for him.
Speaker 1: That doesn't always happen. Four runs in the third inning
Speaker 1: to run doubles for Pete Alonso and Mark Canna to
Speaker 1: Graham of the Mets, Pete the Braves five too. So
Speaker 1: that was a long day yesterday. And these guys came
Speaker 1: in and you know, um put up runs early, and
Speaker 1: you know, my goal was to try to keep it there,
Speaker 1: and you know, Joelie did a great job and then
Speaker 1: Das coming in and closing that game. So um, you know,
Speaker 1: it just shows a lot of team and grind to everything.
Speaker 1: You know, that was a long day yesterday. And then
Speaker 1: they come off the day and and jump on him
Speaker 1: early and and you know finished the series with Hue
Speaker 1: and what a series of Wise of the match, they
Speaker 1: won four of five, so they gained three games on
Speaker 1: Atlanta that I'll leave the NL East by six and
Speaker 1: a half. They've also caught the Yankees for the best
Speaker 1: record in New York. As good a weekend as it
Speaker 1: was for the Mats, that's how bad it was for
Speaker 1: the Yankees. In St. Louis, the day after the Cardinals
Speaker 1: won one to nothing, they won twelve to nine. Sixteen
Speaker 1: Yankee hits not enough, as Frankie Mantas gave up six
Speaker 1: runs at his Yankee debut. It's the cardinals seventh win
Speaker 1: in a row. It's their first ever sweep for the Yankees.
Speaker 1: First time all year the Yanks have been swept in
Speaker 1: a three game series. They are just nine and sixteen
Speaker 1: over their last five games. No Young Cam It's twenty
Speaker 1: year old from South Korea won the Windham Golf in Greensboro.
Speaker 1: His first whole of the tournament last Thursday was a
Speaker 1: quadruple bogey. Made up for that with a fun round
Speaker 1: sixty one. John stash Award Bloomberg Sports Done all right, John,
Speaker 1: Thanks a lot ahead of the Cans show uping on
Speaker 1: Wall Street. Futures in the green right now the down
Speaker 1: futures of eight one smp E Mini futures twelve points sire.
Speaker 1: That's up about three tens of a percent. Yeah, the
Speaker 1: Nansch futures fifty one points higher. That is a four
Speaker 1: tense of eight percent. You're listening to Bloomberg day Break,
Speaker 1: and just ahead on Bloomberg day Break, Carlyle Group says
Speaker 1: it's CEO has stepped down. What's the significant We'll ask
Speaker 1: Bloomberg's Shinali Basset. You're listening to Bloomberg markets, headlines and
Speaker 1: breaking news twenty four hours a day, at Bloomberg dot com,
Speaker 1: the Bloomberg Business app, and at Bloomberg Quick Tape. This
Speaker 1: is a Bloomberg Business lash. I'm Nathan Hagar. Stocks are
Speaker 1: climbing this morning. Bond yields are pairing their recent surge
Speaker 1: as investors way the prospects of aggressive federal reserve rate
Speaker 1: hikes against reassuring earnings. We check the markets every fifteen
Speaker 1: minutes during the trading day. On Bloomberg, SMP futures are
Speaker 1: up twelve points. Now, futures are up a six points,
Speaker 1: and the Nasdaq futures are higher by fifty two points.
Speaker 1: Germany's decks is up six tenths percent now. The CACK
Speaker 1: in Paris is higher by eight tenths of one percent.
Speaker 1: The tenure treasuries of eight thirty seconds, the yield two
Speaker 1: point seven nine percent yield on the two year three
Speaker 1: point to one percent. Nimex crude is down one percent,
Speaker 1: now down eighty nine cents at eighty eight dollars twelve
Speaker 1: cents of barrel comics gold is up two tenths per
Speaker 1: cent or two dollars ninety cents at SEO even announced
Speaker 1: the euro one point zero one eight eight against the dollar.
Speaker 1: The yen is at one thirty four point nine eight
Speaker 1: Bitcoin trading at about twenty four thousand, one hundred dollars.
Speaker 1: That is a gain of three point six percent. That's
Speaker 1: a Bloomberg business flash. And now here's Michael Barr with
Speaker 1: more on what's going on around the world. Michael Nathan,
Speaker 1: thank you very much. The Senate passed the landmark tax,
Speaker 1: climate and Healthcare bill. The vote on the bill was
Speaker 1: fifty one Democrats in favor to fifty Republicans against, with
Speaker 1: Vice President Kamala Harris casting the tie breaking vote after
Speaker 1: an overnight marathon of votes on amendments. It now goes
Speaker 1: to the House, where it is expected to pass on Friday.
Speaker 1: China's military announced a new exercise near Taiwan today, signaling
Speaker 1: that Beijing wanted to keep up pressure on the island
Speaker 1: after US House Speaker Nancy Pelosi's visit. In baseball, the
Speaker 1: Yankees lost to the Cardinals twelve nine. The Mets beat
Speaker 1: the Braves five to the Red Sox, Orioles and Nationals
Speaker 1: all lost. The Giants beat the A six four Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Bloomberg Quicktake, powered by more than seven hundred journalists and
Speaker 1: analysts and more than one d twenty countries. I'm Michael Barr,
Speaker 1: and this is Bloomberg, John, Michael, thank you, coming up
Speaker 1: on six twenty on Wall Street. We are live for
Speaker 1: the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak. Carlisle
Speaker 1: Group says it's chief executive officer q Song Lee has
Speaker 1: stepped down. Let's figure out the significance of this story
Speaker 1: this morning with Bloomberg and Ali bast six and all
Speaker 1: the good to see in the studio. This is actually
Speaker 1: I should tell people one of the most read stories
Speaker 1: on the Bloomberg terminal this morning, private what he is
Speaker 1: in the business of fixing and reshaping companies. Yet, when
Speaker 1: it comes to tink it in the house. What's the problem?
Speaker 1: That's a funny question. So Carlisle is one of the
Speaker 1: earliest private equity firms. Of course, it's three founders only
Speaker 1: really started the generational change, let's say in the last
Speaker 1: second half of this past decade. So about five years
Speaker 1: ago they named q Song Lee and at that time
Speaker 1: it was Glenn Young Can to be co CEOs. Within
Speaker 1: a couple of years, Glenn Youngcan of course stepped down,
Speaker 1: he went into politics, and you have qu Song Lee
Speaker 1: who took over on his own. He's made some major
Speaker 1: shifts in the company. He's made a big pivot and
Speaker 1: turned towards credit markets, which is something a lot of
Speaker 1: its peers are doing. He's rearranged teams, he's tried to
Speaker 1: get more dealmakers to work more closely together. But you know,
Speaker 1: the the question at the end of the day was
Speaker 1: when his contract came up from renewal, he and the
Speaker 1: board not meet eye to eye on the terms of
Speaker 1: that renewal and therefore they announced this really abrupt exit.
Speaker 1: Remember this is a statement that came out on a
Speaker 1: ten PM on a Sunday night, without a successor named
Speaker 1: with a former co founder coming back as the interim
Speaker 1: CEO and announcement that the board will be announcing an
Speaker 1: executive search firm to find a new CEO. So very
Speaker 1: rare for a firm, again to your point that deals
Speaker 1: with a lot of companies and transitional change to announce
Speaker 1: such a sudden exit that does not have the path
Speaker 1: forward delineated. All that clearly. Yet was there any sign
Speaker 1: prior to this of acrimony between him on the board?
Speaker 1: So acrimony is a relative term on Wall Street because
Speaker 1: of course they hate each other. Well, listen, listen, But
Speaker 1: it's interesting when Glenn Yuncan had taken over as this
Speaker 1: co CEO. Interestingly, Glenn was a lifer. He was really
Speaker 1: at Carlisle for a very long time. Ke Sung Lee
Speaker 1: came over mid career. But when Glenn and Q had
Speaker 1: stepped into um the four together, Q was the one
Speaker 1: who won out. There was a massive power struggle just
Speaker 1: years ago, and really Ques businesses were the ones that
Speaker 1: we're winning out. He was the one that was elevated more.
Speaker 1: He was the one that took over solely at the
Speaker 1: end of the day. So this has been a five
Speaker 1: year experiment over at Carlisle in this generational change. Remember
Speaker 1: they were the first one of their kind to make
Speaker 1: this massive change at the top, and now they're going
Speaker 1: in a different direction with one of the co founders
Speaker 1: coming back at the helm as they make that transition again.
Speaker 1: Remember the co founders are the largest shareholders of Carlisle still,
Speaker 1: but Carlyle was also one of the earliest firms to
Speaker 1: release start to make changes be more shareholder friendly. And
Speaker 1: you know, according to Bloomberg's data out que Sung Lee
Speaker 1: is not one of the top ten shareholders of the company,
Speaker 1: whereas the three co founders are the three top sharehol
Speaker 1: orders of the company. Um and beyond that, this is
Speaker 1: a firm that has underperformed its rivals over the past
Speaker 1: year and over the past five years, they've underperformed by
Speaker 1: how much you know, sometimes double when you look over,
Speaker 1: but sometimes at a smaller margin. So um, I'll give
Speaker 1: you an example. Black Stone has doubled assets in that
Speaker 1: time frame, more than double by meaningful amount to almost
Speaker 1: one trillion dollars. Carlyle is not yet doubled its assets
Speaker 1: in that time frame, but they have grown meaningfully. They
Speaker 1: have beat their own targets. It is a very competitive
Speaker 1: landscape out there as these firms are taking share very
Speaker 1: very quickly. So can we say it's a performance issue
Speaker 1: or it's one of a culture clash. It's very much
Speaker 1: a culture clash. However, given the environment we're in, Carlyle's
Speaker 1: set to compete as anybody else's. They have grown meaningfully
Speaker 1: car You know, qus On Lee has navigated them into
Speaker 1: the best performing businesses. Their credit business, which he really
Speaker 1: pushed him into in a bigger way, Struck Deals upon
Speaker 1: That business doubled in six months at the beginning of
Speaker 1: this year. So it's not that simple of a story,
Speaker 1: but you know, it is kind of what it is
Speaker 1: at this point. And uh, you know, it wasn't surprise
Speaker 1: to investors, but they've navigated this kind of transition before.
Speaker 1: Sally Pleasure, thanks for being in the studio with this
Speaker 1: this morning again. Carlias CEO Q Song Lee quitting after
Speaker 1: his bid to remake the firm kind of put him
Speaker 1: at odds with the old guard at Carlysle ahead of
Speaker 1: the cash Open up, Wall Street, Welcome at the green
Speaker 1: on the screen. The down futures right now eighties seven
Speaker 1: points higher, that's a three tense of a percent. Smp
Speaker 1: EMNE futures twelve points higher. That's up three tense, and
Speaker 1: the nsent futures right now are up fifty six points,
Speaker 1: a rise of four tenths of a percent. Ten year
Speaker 1: yield at two seventy nine, the two year at three
Speaker 1: twenty wand negative forty two basis points spread between those
Speaker 1: two as the inversion continues. This is Bloomberg still ahead.
Speaker 1: Five states may determine if the four election can be stolen.
Speaker 1: A fascinating story in Bloomberg will talk to Bloomberg Government
Speaker 1: reporter Emily Wilkins. You're listening to Daybreak, broadcasting live from
Speaker 1: the Bloomberg Interacted Broker's studio in New York. Bloomberg Evan
Speaker 1: Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one
Speaker 1: O six one to San Francisco, Bloomberg N sixteen to
Speaker 1: the country, Sirius XM gent O one nine ten, and
Speaker 1: around the globe the Bloomberg Business app and Bloomberg Radio
Speaker 1: dot Com. This is Bloomberg Daybreak six thirty on Wall Street.
Speaker 1: Good morning, I'm John Tucker, I'm Nathan Hagar. We are
Speaker 1: about three hours away from the open of US trading.
Speaker 1: Time for the five things you need to know to
Speaker 1: start your day. Brought to you by inter Active Brokers.
Speaker 1: Global Analysts helps you find new global investment opportunities to
Speaker 1: diversify your portfolio and discover undervalued companies that may have
Speaker 1: greater growth potential. Try ib k our Global Analysts today
Speaker 1: at I b k R dot com slash g a up. First,
Speaker 1: the Senate has passed a landmark tax, climate, and healthcare bill.
Speaker 1: It gives President Biden an apparent victory on his domestic agenda,
Speaker 1: but the measure is a shadow of his original build
Speaker 1: back better plan. Here send a majority, Leader, Chuck Schumer.
Speaker 1: We had many pumps in the road, many times when
Speaker 1: it looked like it would never happen, but we never
Speaker 1: gave up, and here we are got it done. Sent
Speaker 1: a majority, Leader, Chuck Schumer says. The bill now goes
Speaker 1: to the House, where the Democratic majority is expected to
Speaker 1: pass it on Friday. And turning to the markets. Now
Speaker 1: future is hired to start a week that will be
Speaker 1: highlighted by a key inflation report. The July cp I
Speaker 1: forecans to come in at eight point seven percent on Wednesday.
Speaker 1: San Francisco FED President Mary Daly says finding in place
Speaker 1: and remains the Fed's main focus. We are far from
Speaker 1: done yet. That's the the promise to the American people.
Speaker 1: We are far from done. We're committed to bringing inflation
Speaker 1: down and we'll continue to work until that job is
Speaker 1: fully done. Very daily making the comments on CBSS face
Speaker 1: the nation. You can catch that program Sunday, Antonoons and
Speaker 1: Bloomberg Radio and earnings will being focused this week John
Speaker 1: with two dozen companies reporting. The highlight comes Wednesday with
Speaker 1: Disney's results. Meantime, a dimming earnings outlook is it odds
Speaker 1: with the recent rebound in stock markets. That's according to
Speaker 1: strategist at Morgan Stanley and Goldman Sachs. Both Morgan's Mike
Speaker 1: Wilson and Goldman's David Constant expect corporate profit margins to
Speaker 1: contract next year, give an unrelenting cost pressure and a
Speaker 1: surprise in the private equity space. This morning, Carlyle Group
Speaker 1: CEO Q Song Lee has stepped down at least five
Speaker 1: year employment contract was due to expire at the end
Speaker 1: of the year. Bloomberg News has learned that Lee and
Speaker 1: Carlyle's board had clashed over the contract and recent discussions.
Speaker 1: The firm's co founder, Bill Conway will step in as
Speaker 1: the interim CEO and shares of Signify Health are hired
Speaker 1: by sixteen percent in early trading. The Wall Street Journals
Speaker 1: reporting CVS plans to submit a bid for the Norwalk,
Speaker 1: Connecticut Healthcare Company. We have this headline crossing the Bloomberg
Speaker 1: terminal as well, with the Wall Street Journal reporting Fiser
Speaker 1: has agreed to pay sixty eight dollars fifty cents to
Speaker 1: share or five point four billion dollars for Global Blood Therapeutics.
Speaker 1: That's the five things you need to know to start
Speaker 1: your day. Brought to you by Interactive Brokers. And again,
Speaker 1: SMP futures are higher by twelve points this morning. DAL
Speaker 1: futures of Nasdaq futures are higher by fifty seven points.
Speaker 1: In the tenure treasury yield two point seven nine straight ahead,
Speaker 1: your latest local headlines and a check of sports. This
Speaker 1: is Bloomberg and at six three Wall Street time to
Speaker 1: bring in Michael barn to tell us what else is
Speaker 1: going on in New York. Hand around the world, John,
Speaker 1: Thank you kindly. New York Mayor Eric Adams on Sunday
Speaker 1: greeted another bus of migrants who arrived on the East
Speaker 1: Coast sent by Texas, saying their treatment by the state's
Speaker 1: governor has been horrific. The first bus of about fifty
Speaker 1: migrants arived gone Friday, with Texas Governor Greg Abbott saying
Speaker 1: he was testing New York's commitment to being a sanctuary city.
Speaker 1: Adam says, while the migrants are welcome, they're being forced
Speaker 1: onto buses. Some of the families are on the bus
Speaker 1: that wanted to go to other locations and they were
Speaker 1: not allowed to do so. They were forced on the
Speaker 1: bus uh with the understanding that they were going to
Speaker 1: other locations that they wanted to go to, and when
Speaker 1: they tried to explain, they were not allowed to do so.
Speaker 1: Hey a, Adam says. Governor Rabbit is using humans as
Speaker 1: political pawns. The Try And State area remains under a
Speaker 1: heat advisory. It is expected to expire tomorrow night at
Speaker 1: eight pm. Well that's tomorrow asked for today. Ninety degree
Speaker 1: plus temperatures will feel like it's one hundred degrees. President
Speaker 1: Joe Biden and First Lady Jill Biden are planning to
Speaker 1: visit Kentucky today to meet with families who have suffered
Speaker 1: from historic flooding. At least thirty seven people have died
Speaker 1: just days after U N Secretary General Antonio Guterres warn
Speaker 1: the international community the world is just one miscalculation from
Speaker 1: nuclear annihilation. The terrorists reiterated this morning while speaking at
Speaker 1: the Japan Press Club. Today we are witnessing a radicalization
Speaker 1: in the geopolitical situation that makes the risk of a
Speaker 1: nuclear war again something will not we cannot completely forget,
Speaker 1: Secretary General gu Terrorists called on nuclear armed countries to
Speaker 1: commit to no first use of nuclear weapons. When schools
Speaker 1: in Madison County, North Carolina, head back into session later
Speaker 1: this month, students will be greeted by school resource officers
Speaker 1: and their new A R fifteen rifles. Both the Madison
Speaker 1: County Sheriff and the school district superintendent have supported the measure,
Speaker 1: which will have the six semi automatic rifles inside the
Speaker 1: district schools behind the locks, safe in the event of
Speaker 1: an active shooter. Dr Dorothy Espialage is a U n C.
Speaker 1: Chapel Hill professor in the School of Education. It's what
Speaker 1: we call hardening in the schools, and it's what's going
Speaker 1: to happen, is that we're going to have um accidents
Speaker 1: with these guns. Dr Espalange has when she first heard
Speaker 1: of the measure, she thought it was a joke. And
Speaker 1: fake news, Global news twenty four hours a day on
Speaker 1: air and on Bloomberg Quick Take, powered by more than
Speaker 1: twenty seven hundred journalist and analyists more than a hundred
Speaker 1: twenty countries. Michael Barr, this is Bloomberg, John, Michael, thank you.
Speaker 1: It's now six thirty six on Wall Street. That's time
Speaker 1: for the Bloomberg Sports Update. Here's John Stasher. All right,
Speaker 1: John A. Taylor. Two weekends great for the Mets, not
Speaker 1: so hot for the Yankees, and the two teams now
Speaker 1: have identical records of seventy and thirty nine. But really
Speaker 1: excites Mets fans with the last two games of that
Speaker 1: five game series with Atlanta, the one two punch has arrived.
Speaker 1: Jacob Degram was injured and then so was Max Scherzer.
Speaker 1: There both now healthy. The day after Surgeon dominated, so
Speaker 1: did the grand His first five innings were perfect. He
Speaker 1: got seventeen ounce and all but five were strikeouts. He
Speaker 1: got his first win in thirteen months to Ellie Rodriguez
Speaker 1: and Edwin Diez followed them. The three combined for nineteen strikeouts.
Speaker 1: Met seats grades five to two took four or five
Speaker 1: in the series. Buck Showalter credits the city field crowd,
Speaker 1: it will pick me up. It's been a tough tax
Speaker 1: and series, and the fans have been huge for us
Speaker 1: emotionally too, because you know, to come out and as
Speaker 1: hard as it is and as uncomfortable as some of
Speaker 1: the games have been physically for them to come out
Speaker 1: and support, uh, you know, the team. The guys really
Speaker 1: fed off of it. The Mets Division lead went from
Speaker 1: ten and a half down to a half game, but
Speaker 1: now it's back up to six and a half. Ahio
Speaker 1: Cincinnati tonight. That's the Yankees. Great pitching Saturday, but a
Speaker 1: one nothing loss in St. Louis. They scored nine runs
Speaker 1: yesterday but lost to the Cardinals twelve to nine. They're
Speaker 1: losing streaker has reached five just nine wins over their
Speaker 1: last twenty five games. That recently acquired Frankie Mantas made
Speaker 1: his debut. It did not go well and the loss.
Speaker 1: Aaron's judge drove in four runs. Labor Torres, Aaron Hicks,
Speaker 1: and d J. Mayo all had three hits for the Yanks.
Speaker 1: Stranded well gets swept in a three game series for
Speaker 1: the first time all year. They played tonight in Seattle.
Speaker 1: John Cash now Bloomberg Sports. John all right, John, thanks
Speaker 1: very much, appreciate it. It is now six thirty eight
Speaker 1: on Wall Street. Time to take a look at some
Speaker 1: of the stocks, some of the names that are moving
Speaker 1: to the pre market, and for that we're joined by
Speaker 1: Bloomberg Radio at TV reporter Laura. Right, Laura. That bill
Speaker 1: that was passed by the Senate over the weekend, it
Speaker 1: looks like that's having an impact on some of the
Speaker 1: stocks were following this morning. Yeahsla up two point two
Speaker 1: ahead of the US bell. So Tesla, as you mentioned,
Speaker 1: we'll see a tail wind from this landmark US climate
Speaker 1: bill out over and approved overnight rather which is here
Speaker 1: marks around three d and sixty nine billion dollars for
Speaker 1: US energy security. Another tailwind for Tesla is news of
Speaker 1: a five billion dollar deal with Indonesia to secure nickel
Speaker 1: supplies for five years. Really important for the electric vehicle
Speaker 1: maker because Indonesia holds almost a quarter of the world
Speaker 1: global nickel reserve and wants to position itself as a
Speaker 1: leading e V battery supplier. The most act of this
Speaker 1: morning is bed Bath and beyond what's happening there. Yeah,
Speaker 1: this name has become a recent meme stock. It's up
Speaker 1: nearly in pre market trading after the stock closed thirty
Speaker 1: higher last Friday. So the company is experiencing its longest
Speaker 1: buying streak since two thousand and seven. And this comes
Speaker 1: down to news released last week that Bed Bathroom Beyond
Speaker 1: a tapping into the private credit market to help combat
Speaker 1: the sales decrease, and a build up an inventory. To
Speaker 1: put in context the scale of the problem, the company
Speaker 1: had around one million dollars in cash and cash equivalents
Speaker 1: the end of May. That was down from over a
Speaker 1: billion dollars the same period a year ago. Okay, and
Speaker 1: I'm looking at Bitcoin this morning. That's up with three
Speaker 1: and a half percent this morning over thousand token, So
Speaker 1: I would imagine that's having it impact on some of
Speaker 1: the starcks we're watching this this morning. It is the
Speaker 1: classic decal names such as Riot Blockchain up six point
Speaker 1: four percent, coin Based up four point three percent, Marathon
Speaker 1: Digital up six point seven percent. The crypto bears appear
Speaker 1: to be in the background for the time being in
Speaker 1: this wider uplift that we've seen in equity. For that
Speaker 1: correlation that has emerged between equities and cryptocurrencies appears to
Speaker 1: be emerging again. Investors now seem to have confidence dipping
Speaker 1: their toes back into crypto assets. Okay, strapping Bloomberg Radio
Speaker 1: TV reporter and Laura right and looking at starts as
Speaker 1: a whole ahead of the open. SMP futures this morning,
Speaker 1: they are up fifteen points and that's a rise of
Speaker 1: four tens of per percent. The OUR futures up one
Speaker 1: and one points, three tens of per percent, and the
Speaker 1: ansday futures right now up sixty seven points. That's up
Speaker 1: half a percent right now. And again our bed bath
Speaker 1: and beyond in the premark most actively traded, it is
Speaker 1: soaring up nine. As we look at treasuries, the inversion
Speaker 1: continues negative forty two basis points right now, the two
Speaker 1: year at three twenty and the tenure note two seventy nine.
Speaker 1: You are listening the Bloomberg Daybreak and just ahead we'll
Speaker 1: look at the stories out of Washington this morning. And
Speaker 1: talked to Bloomberg Government reporter Emily Wilkins. Five states may
Speaker 1: determine the election, whether it can be stolen. This is
Speaker 1: Bloomberg Markets, headlines and breaking news twenty four hours a
Speaker 1: day at Bloomberg dot Com, the Bloomberg Business apt and
Speaker 1: at Bloomberg Quick Take. This is a Bloomberg Business lash.
Speaker 1: I'm Nathan Hager watching futures on the rise this morning.
Speaker 1: Let's go right over to the First Word breaking news
Speaker 1: desk for today's morning call. Here's Bloomberg's Tatiana Darya. Good morning, Tatiana,
Speaker 1: Good morning, Nathan. Futures are higher this morning, like we said,
Speaker 1: were all major averages, pointing to gates of about four
Speaker 1: tenths to six tenths of a percent. Treasuries are also higher,
Speaker 1: pairing backs some of Friday's losses. That tenure yield there
Speaker 1: down about three basis points to just under two spot
Speaker 1: eight percent. Oil is down one percent, and Bitcoin is
Speaker 1: higher this morning, breaking above two thousand. In early trading
Speaker 1: in stocks were saying crypto links shares are gaining, Marathon
Speaker 1: digital coin based micro Strategy among the names gaining, and
Speaker 1: test Lap two after the Senate past a key climate
Speaker 1: bill that extends a consumer tax credit for the purchase
Speaker 1: of evs, Bath, Bath and Beyond is also up seventeen
Speaker 1: percent in the pre market. Regarding earnings, Barrick's Gold up
Speaker 1: two percent after beating estimates, while by and Tech a
Speaker 1: d r s are down six after missing its numbers.
Speaker 1: In other news, Carolile Group CEO Q Song Lee stepped
Speaker 1: down in a sudden exit, announced like Friday Lie from
Speaker 1: the First and Breaking News desk, I'm Tatiana, Darian Nathan. Alright, Tatiana,
Speaker 1: thanks and some breaking news crossing the Bloomberg terminal. It
Speaker 1: is a done deal. Fightser is buying out global blood transaction.
Speaker 1: Sixty eight dollars fifty cents to share to hear live
Speaker 1: breaking news over your Bloomberg type squawk on the terminal,
Speaker 1: s Q you a go, that's a Bloomberg business flash.
Speaker 1: And now here's Michael Barr mcmar on what's going on
Speaker 1: around the world. Michael Nathan, thank you very much. The
Speaker 1: Senate has approved the Democrats Economic Package. The legislation is
Speaker 1: less ambitious than President Joe Biden's original domestic goals, but
Speaker 1: it embodies deep rooted party dreams of slowing global warming,
Speaker 1: moderating pharmaceutical costs, and taxing big corporations. Just out of
Speaker 1: COVID quarantine, President Biden heads were Kentucky with the First
Speaker 1: Lady today. They were tour the very hard hit eastern
Speaker 1: part of the state from deadly flooding. In baseball, the
Speaker 1: Yankees lost to the Cardinals, twelve nine. The Mets beat
Speaker 1: the Braves five to the red Sox, Orioles and Nationals
Speaker 1: all lost. The Giants beat the A six four Global
Speaker 1: News twenty four hours a day on here and on
Speaker 1: Bloomberg Quicktake, powered by more than twenty seven under journalists
Speaker 1: and analysts in more than one twenty countries. On Michael
Speaker 1: Barr and this is Bloomberg. Nathan Okay, Michael, Thanks at
Speaker 1: six forty nine on Wall Street. Let's turn to news
Speaker 1: in science and technology now. The Bloomberg n j I
Speaker 1: T STEM Report is brought to you by New Jersey
Speaker 1: Institute of Technology, ranked to top fifty national public university
Speaker 1: by US News and World Report, and top ten in
Speaker 1: the nation for engineering by money dot Com. Learn more
Speaker 1: at n j I T dot E d U and
Speaker 1: now Here's what's making news and science, technology, engineering and math.
Speaker 1: Hong Kong has reduced the amount of time travelers entering
Speaker 1: the city must spend in hotel quarantine from seven days
Speaker 1: to three. That's a greater than expected easing of its
Speaker 1: strict travel curves. Still, Hong Kong is isolated in a
Speaker 1: world that has mostly reverted to pre pandemic movement. Japanese
Speaker 1: technology company, soft Bank Group, reported a rect Or twenty
Speaker 1: three point four billion dollar net loss in the quarter.
Speaker 1: Soft Bank was hurt by the sell off in global
Speaker 1: tech stocks. Although it's portfolio isn't directly exposed to the
Speaker 1: war in Ukraine. Soft Bank warned the global uncertainty, as
Speaker 1: well as inflation and soaring energy costs, would likely hurt
Speaker 1: its profitability. Profitability and beach crews have found the first
Speaker 1: sea turtle nest on the Mississippi mainland in four years.
Speaker 1: Scientists say the eggs likely belonged to a protected loggerhead
Speaker 1: sea turtle or an even rarer kemps ridley sea turtle,
Speaker 1: which is the most critically endangered species of the kind.
Speaker 1: The exact species of turtle won't be known until the
Speaker 1: eggs hatch in fifty to sixty days. Only about one
Speaker 1: in ten thousand sea turtle eggs reach adulthood. That's the
Speaker 1: Bloomberg n j I t STEM Report. John all right, Nathan,
Speaker 1: thank you. We are live for the Bloomberg INTERRANTO Brokers
Speaker 1: Studios where it is now six fifty one Wall Street,
Speaker 1: and that means it's time to check what's going on
Speaker 1: to d C of some of the top stories in
Speaker 1: our nation's capital, include of course, the you sent it
Speaker 1: passing the Democrats to landmark tax, climate and drugs bill,
Speaker 1: and the Big Takes story this morning, very interesting five
Speaker 1: states may determine if the election can be stolen. And
Speaker 1: as you've been hearing from Michael Barr this morning, New
Speaker 1: York City's mayor greeting new bus loads of migrants sent
Speaker 1: by the governor of Texas. Let's take a deeper dive
Speaker 1: into these stories this morning, and I'm happy to say
Speaker 1: we're joined by Bloomberg Government reporter Emily Wilkins this Monday morning. Emily,
Speaker 1: Happy Monday. Let's start with the the Senate bill that
Speaker 1: was passed. What's in it and what's not in it?
Speaker 1: So this is definitely something that that Democrats and President
Speaker 1: Joe Biden can claim as a huge win. It looked
Speaker 1: like it wasn't going to be coming together just a
Speaker 1: couple of months ago, and now for this agreement to
Speaker 1: have passed the Senate and making its way to the House,
Speaker 1: Democrats are feeling very very good this morning after an
Speaker 1: incredibly long weekend. This bill, it's much much smaller than
Speaker 1: that initial six trillion package. This package only is about
Speaker 1: four hundred and thirty seven billion dollars in spending, but
Speaker 1: it is expected to reduce the federal deficit over time
Speaker 1: while allowing medic carriage to negotiate some drug prices, so
Speaker 1: that should mean lower prices of starting with ten high
Speaker 1: price drugs for Americans. And also includes a lot of
Speaker 1: funding for climate and energy, including tax credits for renewable
Speaker 1: energy projects. And it will require companies to pay a
Speaker 1: fifteen percent corporate minimum tax for large firms and as
Speaker 1: well it has has a one percent excise tax on
Speaker 1: stock by bats and so those are you know, it's
Speaker 1: once again, this isn't the big, big bill that Democrats
Speaker 1: were initially envisioning. But to get progress in these key
Speaker 1: areas of lowering drug prices, addressing climate change, and taxing
Speaker 1: major corporations, all of those are things that Democrats can
Speaker 1: easily claim as a win and can really go out
Speaker 1: on the campaign trailed, uh, you know this upcoming fall
Speaker 1: and really tout that win to Americans. Progressive Democrats to
Speaker 1: swallow this to a certain extent, certainly, there were things,
Speaker 1: you know, you talked with lawmakers after a bill like
Speaker 1: this passes, and everyone says the same thing. You know,
Speaker 1: we didn't get everything we wanted. They didn't get everything
Speaker 1: they wanted, um and certainly, you know, progressives were hoping
Speaker 1: for more, and there are voters out there who are
Speaker 1: upset that Democrats weren't able to deliver on certain things
Speaker 1: like helping out with the cost of childcare, continuing the
Speaker 1: child tax credit, having pre k, having a wide range
Speaker 1: of stuff that was initially discussed for the legislation. At
Speaker 1: the same point, I think for a number of months,
Speaker 1: they're all of Washington was kind of sitting with the
Speaker 1: belief that nothing more was going to happen, that the
Speaker 1: window of opportunity had shut, and so to have it
Speaker 1: reopened like this to actually get a bill through, I
Speaker 1: think everyone kind of spent a long time living in
Speaker 1: a reality where nothing was going to happen. And then
Speaker 1: Democrats were very eager to get any sort of chance.
Speaker 1: And of course it's does the lap to pass the House.
Speaker 1: But we are seeing lawmakers who previously announced a lot
Speaker 1: of skepticists skepticism towards the bill be on board with it.
Speaker 1: For example, that state and local tax, the salt tax.
Speaker 1: There were a group of lawmakers who initially said they
Speaker 1: would not be voting for legislation unless they removed the
Speaker 1: cap that was put in place in this bill does
Speaker 1: not do that. And yet we have seen now at
Speaker 1: least one lawmaker come out and say that he still
Speaker 1: will support that legislation. Does it make a difference come
Speaker 1: the November election, That's a really great question, John Um.
Speaker 1: I think that to a certain extent, we're not quite sure.
Speaker 1: This obviously gives Democrats, it's a win for them. It
Speaker 1: obviously gives them them something they can campaign on, It
Speaker 1: gives them something they can talk about. However, if inflation
Speaker 1: continues to be high, if we see gas prices continue
Speaker 1: to be far, far higher than they were a year ago,
Speaker 1: it still might be really dif a cult for Democrats
Speaker 1: to censia victory. I mean, remember, the historical trend is
Speaker 1: that whatever party is empowered during the mid term winds
Speaker 1: up having losses. And Democrats have such such narrow margins
Speaker 1: right now that really, even if they only lost a
Speaker 1: handful of seats, that would be enough to get Republicans
Speaker 1: control of both chambers. A fascinating big Take story on
Speaker 1: the Bloomberg this morning, five states determined if the election
Speaker 1: can be stolen in can you give us the Rundown
Speaker 1: on this. Yeah, this is a really interesting story that
Speaker 1: looks at just a number of different data points across America.
Speaker 1: UM as far as elections, how easy it is to vote,
Speaker 1: how secure is the vote, and whether officials will respect
Speaker 1: the results. And what the article found is that you know,
Speaker 1: vote that that probably is going to be okay, but
Speaker 1: there is a really dark picture shaping out for what
Speaker 1: might happen in particularly as some of these state level
Speaker 1: officials who have a big role in certifying elections to
Speaker 1: end up winning. Now, the article does look at all
Speaker 1: fifty states, but particularly spotlights Arizona, Michigan, Nevada, Wisconsin, and
Speaker 1: Pennsylvania as potentially being key states that could you know,
Speaker 1: it's a certain combination of votes and rules and lawmakers
Speaker 1: are in place, we might see concerns around the vote,
Speaker 1: UM as far as whether it's authentic or whether a
Speaker 1: authentic and legitimate vote is then declared to be otherwise. UM.
Speaker 1: You know, you saw a number of cases this last
Speaker 1: time where local officials were under pressure to say that
Speaker 1: certain things that happened that that they did not remember.
Speaker 1: When Trump called up Georgia uh and as George's left
Speaker 1: officials to find him you know about you know twelve
Speaker 1: twelve thousand more votes. So certainly this is a huge concern,
Speaker 1: and I think a lot of it is We're going
Speaker 1: to have to wait and see exactly who's elected and
Speaker 1: exactly what laws passed. And thanks, I appreciate it, Boomberg
Speaker 1: Government reporter Emily Wilkins. You can read more about these
Speaker 1: stories on Bloomberg dot com or the Bloomberg terminal. At
Speaker 1: a reminder, you can follow all the latest on Bloomberg
Speaker 1: Radio in Washington. That's Bloomberg at one O five seven
Speaker 1: FM h D two at a head of the cash
Speaker 1: open on Wall Street futures in the green down futures
Speaker 1: right now one thirty seven points, that's the four tenths
Speaker 1: of a percent SMP Emmity futures, they're up twenty one points,
Speaker 1: up half a percent, the Nanzac futures up eighty eight points,
Speaker 1: up about seven tenths of a percent. And Bitcoin mentioned
Speaker 1: this earlier, up about three and a half percent right
Speaker 1: now per token twenty four on twenty four thousand, seventy
Speaker 1: seven dollars ten year, ye have to seventy nine the
Speaker 1: two year at three point two percent. For Nathan Hager,
Speaker 1: I'm John Tucker, you're listening to Bloomberg day Break