WEBVTT - Bloomberg Daybreak: August 8, 2022 - Hour 2 (Radio) 0:00:03.480 --> 0:00:06.920 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:00:07.000 --> 0:00:10.799 day Break for Monday AUGUSTO. Coming up this hour, we 0:00:10.880 --> 0:00:14.120 sent it passes a landmark tax, climate and healthcare bill. 0:00:14.280 --> 0:00:17.680 Wall Street races for another key report on inflation. Morgan 0:00:17.760 --> 0:00:21.920 Stanley Guildman stratagist predicted dimming profit outlook for Corporate America, 0:00:22.320 --> 0:00:26.160 and the CEO of Carlisle Grove unexpectedly steps down New 0:00:26.239 --> 0:00:29.240 York Bringer Adams says they're welcome, but it's criticizing Governor 0:00:29.280 --> 0:00:31.720 Abbot after sending the second bus load of my grants 0:00:31.760 --> 0:00:35.560 from Texas. Michael Barr more ahead, I'm John Stanstown Sport. 0:00:35.640 --> 0:00:37.960 Jacob de Grand pitched the Mets to victory over the Brave. 0:00:38.040 --> 0:00:40.280 They won four or five of the series. The Yankee 0:00:40.400 --> 0:00:46.360 swept in St. Louis. That's all trended ahead on Bloomberg 0:00:46.440 --> 0:00:51.520 Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington, 0:00:51.640 --> 0:00:55.240 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.280 --> 0:00:59.080 sixties and Francisco Sirius x M one nine team and 0:00:59.200 --> 0:01:02.360 around the world on Bloomberg Radio. Dove Carmen by the 0:01:02.440 --> 0:01:09.440 Bloomberg Business app. Good morning. I'm John Tucker and I'm 0:01:09.520 --> 0:01:12.240 Nathan Hagar. US futures are on the rise this morning. 0:01:12.280 --> 0:01:14.280 We're coming up to six oh one on Wall Street, 0:01:14.319 --> 0:01:16.360 and we checked the markets every fifteen minutes during the 0:01:16.360 --> 0:01:19.199 trading day. On bloomberg SMP futures are up ten points, 0:01:19.200 --> 0:01:22.600 Staff futures up sixty eight. Nasdaq futures higher by forty 0:01:22.640 --> 0:01:25.480 eight points. The tenure Treasury is up seven thirty seconds. 0:01:25.520 --> 0:01:27.640 The yield two point seven nine percent yield on the 0:01:27.680 --> 0:01:30.400 two year three point to zero nime X screwed is 0:01:30.440 --> 0:01:33.559 down eight tenths percent at eighty eight dollars twenty nine 0:01:33.560 --> 0:01:35.920 cents a bear all, John and Nathan. We're gonna have 0:01:35.959 --> 0:01:37.680 more on the markets in a minute, but first let's 0:01:37.680 --> 0:01:40.920 start in Washington. Over the weekend, the Senate passing a 0:01:41.000 --> 0:01:45.240 landmark tax, climate and healthcare bill, fifty grant See in 0:01:45.240 --> 0:01:48.320 favor of the measure, fifty Republicans against it, with Vice 0:01:48.360 --> 0:01:52.080 President Kamala Harris casting the tide breaking vote. When it 0:01:52.080 --> 0:01:54.160 comes to what's next in the bill, we get more 0:01:54.280 --> 0:01:58.160 from Bloomberg's and Baxter. The top one percent avoided the 0:01:58.160 --> 0:02:02.280 tax increases liberal Democrats had wanted at the beginning. There 0:02:02.280 --> 0:02:05.720 will be a tax on stock buybacks. The legislation also 0:02:05.760 --> 0:02:09.760 aims to prevent large corporations from exploiting tax breaks, and 0:02:09.800 --> 0:02:12.919 there will be a fifteen percent minimum. It did not 0:02:13.160 --> 0:02:16.640 raise the salt deduction on the climate side, and sentives 0:02:16.680 --> 0:02:19.720 to cut greenhouse gases with a hope to cut emissions 0:02:19.760 --> 0:02:23.000 by about forty from two thousand five levels by the 0:02:23.080 --> 0:02:27.320 end of the decade. It will extend the tax credit 0:02:27.480 --> 0:02:30.520 on e v s, but there'll be restrictions that US 0:02:30.560 --> 0:02:34.960 electric car makers say will exclude seventy of vehicles, and 0:02:35.560 --> 0:02:39.519 Medicare will be allowed to negotiate drug prices. In San Francisco, 0:02:39.560 --> 0:02:41.960 I'm at Baxter Bloomberg Daybreak, All right, and thank you. 0:02:42.040 --> 0:02:44.200 On Wall Street today, the fit is in focus after 0:02:44.280 --> 0:02:48.160 Friday's strong jobs report, Speculation is growing that another seventy 0:02:48.160 --> 0:02:51.560 five basis point rate hike could becoming. San Francisco FED 0:02:51.600 --> 0:02:54.520 president Mary Daily tells CBS the Central Bank has a 0:02:54.520 --> 0:02:57.280 lot of work ahead. We are far from done yet. 0:02:57.360 --> 0:02:59.799 That's the promise of the American people. We are far 0:02:59.840 --> 0:03:02.440 for gun. We're committed to bringing inflation down and we'll 0:03:02.440 --> 0:03:05.360 continue to work until that job is fully done. So 0:03:05.400 --> 0:03:08.200 it would still be appropriate to raise rates in September 0:03:08.240 --> 0:03:11.920 by half. Absolutely, and you know we need to be 0:03:12.000 --> 0:03:15.280 data dependent. Mary Daily made those comments to Margaret Brennan 0:03:15.320 --> 0:03:18.079 on CBSS Face the Nation and catch the program Sunday 0:03:18.120 --> 0:03:20.840 afternoons on Bloomberg Radio and Mary Daily in the Fed. 0:03:20.960 --> 0:03:25.280 Get another key report on inflation this week. That's Wednesday, 0:03:25.320 --> 0:03:28.320 when the government releases the consumer price Index for July. 0:03:29.200 --> 0:03:32.080 Let's get a preview from Bloomberg's Vinny down Judas we 0:03:32.160 --> 0:03:36.080 may see some moderation as energy prices retreat. Economists say 0:03:36.120 --> 0:03:39.800 the US household inflation rate as tracked by the Consumer 0:03:39.800 --> 0:03:44.440 Price Index, probably slipped below nine in July. June's on 0:03:44.600 --> 0:03:48.160 nine point one percent jump the fastest since nine The 0:03:48.200 --> 0:03:51.720 bad old based for inflation. Inflation remains far above the 0:03:51.720 --> 0:03:55.240 Federal Reserves two percent target in the aftermathas supply shortages 0:03:55.240 --> 0:03:58.440 and delays. This week's date on US producer prices and 0:03:58.440 --> 0:04:02.680 import prices may also model rate any doubt, Judics Bloomberg Daybreak, Okay, Thenny, 0:04:02.720 --> 0:04:04.680 thank you, And as we await that report and inflation, 0:04:04.720 --> 0:04:07.240 the outlook from consumers is turning more gloomy. When you 0:04:07.320 --> 0:04:10.680 ask most Americans, they say the economy is getting worse. 0:04:10.720 --> 0:04:13.960 Bloomberg's Doug Krisner has the details. A poll from ABC 0:04:14.120 --> 0:04:17.839 News IPSOS found about sixty of those surveyed think the 0:04:17.920 --> 0:04:21.799 economy is deteriorating. That's the highest since two thousand and eight. 0:04:22.080 --> 0:04:24.840 The poll also finds only thirty seven percent saying they 0:04:24.880 --> 0:04:28.080 approve of how President Biden is handling the recovery. That's 0:04:28.120 --> 0:04:31.800 unchanged from June. We're just three months before the midterm elections. 0:04:32.080 --> 0:04:35.440 US employment is back to pre pandemic levels, but inflation 0:04:35.640 --> 0:04:38.680 is the hottest in decades and more stubborn than expected. 0:04:38.960 --> 0:04:41.640 Demand for gasoline in the US is now nine percent 0:04:41.720 --> 0:04:45.000 below last year in New York. I'm Duck Prisonner, Bloomberg Daybreak. 0:04:45.080 --> 0:04:47.920 Thanks Doug. Also earnings to watch this week. We get 0:04:47.960 --> 0:04:51.040 results from nearly two dozen companies in the SMP five hundred. 0:04:51.279 --> 0:04:54.640 It was good. More from Bloomberg's Charlie Pillett. Traders will 0:04:54.720 --> 0:04:58.599 continue to parse corporate earnings reports against a backdrop of 0:04:58.640 --> 0:05:02.480 aggressive rate hikes. Kim Forest, as chief investment officer at 0:05:02.480 --> 0:05:06.839 Bouquet Capital Partners. Companies are saying their visibility for the 0:05:06.920 --> 0:05:11.120 next six months is whatever and they're maintaining more or 0:05:11.200 --> 0:05:15.080 less maintaining their their estimates. So I think that speaks well. 0:05:15.120 --> 0:05:18.600 These companies know their business. They know they can't set 0:05:18.720 --> 0:05:21.680 the bar too high for themselves, so it's probably kind 0:05:21.720 --> 0:05:24.679 of low. Among the names reporting this week, Walt Disney, 0:05:24.800 --> 0:05:28.480 Coin Based Global, a I G. Barrack Gold and Tyson 0:05:28.560 --> 0:05:32.880 Foods in New York, Charlie Pellett bloom Bird Daybreak, Thanks Charlie. 0:05:32.920 --> 0:05:35.440 A dimming earnings outlook has at odds with the recent 0:05:35.520 --> 0:05:38.440 rebound in stock markets. That's according to strategist of Morgan 0:05:38.520 --> 0:05:41.479 Stanley and Goldman Sachs. Both Morgan Stanley's Mike Wilson and 0:05:41.520 --> 0:05:45.520 Goldman's David Constant expect corporate profit margins to contract next 0:05:45.600 --> 0:05:49.120 year given unrelenting cost pressures. In fact, Wilson says, quote, 0:05:49.320 --> 0:05:52.640 the best part of the rally is over. Warren Buffett 0:05:52.720 --> 0:05:56.039 is following an age old strategy by the dip, but 0:05:56.240 --> 0:05:59.839 do it cautiously, Buffets Bertshire Hathaway stepping in as the 0:06:00.040 --> 0:06:02.640 some B five shed six team percent to even the 0:06:02.720 --> 0:06:06.200 latest quarter. It was a net buyer of equities, reporting 0:06:06.200 --> 0:06:09.640 three point eight billion dollars in purchases. What's a different 0:06:09.640 --> 0:06:11.719 story than last year when it was a net seller 0:06:11.760 --> 0:06:15.000 in the second quarter of one. Now there's a surprise 0:06:15.080 --> 0:06:17.840 change at the top of private equity giant Carlisle Group. 0:06:17.920 --> 0:06:21.280 John CEO Q Song Lee has stepped down. Lee's five 0:06:21.360 --> 0:06:23.680 year employment contract was due to expire at the end 0:06:23.720 --> 0:06:26.360 of this year. Bloomberg Goose has learned Lee and Carlisle's 0:06:26.360 --> 0:06:29.359 board had clashed over his contract in recent discussions. The 0:06:29.400 --> 0:06:32.520 firm's co founder, Bill Conway will step in as interim CEO. 0:06:33.000 --> 0:06:35.760 And a major development on the pandemic front in Hong Kong. 0:06:35.839 --> 0:06:39.880 That city's gonna shorten hotel quarantine times for rivals starting Friday. 0:06:40.120 --> 0:06:43.880 Bloomberg Daybreak Asia anchor Bryant Curtis has more from Hong Kong. 0:06:44.400 --> 0:06:47.240 People will only need to spend three days in quarantine 0:06:47.240 --> 0:06:50.640 now down from seven. Their movements will be restricted for 0:06:50.680 --> 0:06:53.720 four additional days after that, but they can leave their residents. 0:06:54.160 --> 0:06:58.560 This marks a fundamental break from China's strict COVID zero policies. 0:06:58.960 --> 0:07:01.360 Business groups say it's a step in the right direction, 0:07:01.480 --> 0:07:05.400 but they'd like to see quarantine dropped altogether in Hong Kong. 0:07:05.400 --> 0:07:08.760 Brian Curtis Bloomberg Daybreak, All right, Brian, thank you Ahead 0:07:08.760 --> 0:07:11.240 of the cash on Wall Street futures in the green 0:07:11.320 --> 0:07:13.800 right now, the down futures of eighty two s and 0:07:13.840 --> 0:07:17.920 P futures of twelve, the NASDAK futures of fifty two points. 0:07:18.240 --> 0:07:25.280 This is Bloomberg seven of Wall Street. Time to bring 0:07:25.320 --> 0:07:27.720 in Michael Barr to find out what else is going 0:07:27.720 --> 0:07:30.680 on in New York hand around the world, John, thank 0:07:30.720 --> 0:07:33.680 you kindly. The heat continues to cause air condition there's 0:07:33.720 --> 0:07:36.080 to blast on the high and the Dry State area. 0:07:36.160 --> 0:07:40.200 Bloomberg needi elogist Rob Carolin reports, Michael, the heat wave 0:07:40.240 --> 0:07:43.160 across the Tristate area continues for a couple more days. 0:07:43.240 --> 0:07:45.760 National Weather Service has a heat advisory effect through eight 0:07:45.800 --> 0:07:48.560 pm tomorrow evening, but we will be breaking the heat 0:07:48.600 --> 0:07:51.760 wave on Wednesday. Frontal system be dropping down from the north. 0:07:51.800 --> 0:07:54.320 Will see showers and thunderstorms Wednesday. It only gets to 0:07:54.360 --> 0:07:57.320 eighty five, and it looks more comfortable for Thursday and Friday, 0:07:57.360 --> 0:07:59.239 but it's gonna be tough today and tomorrow with highs 0:07:59.240 --> 0:08:03.320 between ninety and nine. Michael, Thank you. Rob. A second 0:08:03.360 --> 0:08:05.920 bus load of migrants from Texas arrived in New York 0:08:05.960 --> 0:08:09.000 City yesterday as part of Governor Greg Abbott's plan to 0:08:09.040 --> 0:08:12.160 send migrants from his state to so called sanctuary cities. 0:08:12.480 --> 0:08:15.400 Abbot claims that his state can handle the influx in 0:08:15.400 --> 0:08:18.720 that cities that say they can should take the burden 0:08:18.760 --> 0:08:21.440 off the border states who are getting intundated. But New 0:08:21.520 --> 0:08:24.120 York City Mayor Eric Adams says the migrants who are 0:08:24.160 --> 0:08:27.080 coming to his city are being forced onto the buses 0:08:27.120 --> 0:08:30.360 without warning and that officials and volunteers are doing what 0:08:30.400 --> 0:08:33.440 they can to help them there. Adams also says Texas 0:08:33.520 --> 0:08:36.360 officials are not in touch with anyone in New York. 0:08:36.559 --> 0:08:38.800 Did not let us know what time the buses are leaving, 0:08:39.200 --> 0:08:41.400 did not let us know or what it needs of 0:08:41.440 --> 0:08:44.160 the people on the bus. They not giving us any information, 0:08:44.480 --> 0:08:48.120 so we're unable to really provide the service of people 0:08:48.320 --> 0:08:50.800 en route, and we would like to get that information. 0:08:51.400 --> 0:08:54.240 New York Mayor Eric Adams says the city welcomes them 0:08:54.320 --> 0:08:57.480 and will provide assistance, but has asked for federal help. 0:08:58.040 --> 0:09:00.800 New York City police are looking for us suspect they 0:09:00.880 --> 0:09:03.320 say stabbed a man in the back on the subway 0:09:03.320 --> 0:09:07.920 station outside Yankee Stadium yesterday afternoon. The man was spotted 0:09:07.960 --> 0:09:10.320 in the subway system after the attack and has been 0:09:10.440 --> 0:09:14.440 estimated between seventeen and twenty one years old. The victim, 0:09:14.480 --> 0:09:17.560 who goes by the name Leo, tells ABC he was 0:09:17.640 --> 0:09:20.120 waiting for the D train when a stranger invaded his 0:09:20.200 --> 0:09:22.920 personal space. I had to let him know, like, excuse 0:09:22.920 --> 0:09:26.600 me little you know, young men, get out my personal face. 0:09:27.080 --> 0:09:29.120 I'm not the ones that you bothered today. You had 0:09:29.120 --> 0:09:31.240 a long day. It's hot. I look back once. He 0:09:31.280 --> 0:09:34.040 didn't move. I look back again. He's still in that movie. 0:09:34.520 --> 0:09:37.360 Leo says he believes he was targeted as a gay man. 0:09:37.840 --> 0:09:40.640 He is expected to make a full recovery. A fragile 0:09:40.720 --> 0:09:44.080 ceasefire deal to nearly three days of fighting between Israel 0:09:44.120 --> 0:09:47.640 and Palestinian militants has held throughout the night. The Lada's 0:09:47.720 --> 0:09:51.920 clash has killed forty three Palestinians and upended Israeli lives. 0:09:52.120 --> 0:09:54.280 Global News twenty four hours a day on air and 0:09:54.400 --> 0:09:56.880 on Bloomberg Quick Take, powered by more than twenty seven 0:09:56.920 --> 0:09:59.560 hundred journalists and analysts and more than a hundred twenty 0:09:59.559 --> 0:10:02.319 country Is that Michael Barr? This is Bloomberg, John, Michael, 0:10:02.400 --> 0:10:07.960 thank you. They had to sound six ten of Wall 0:10:08.000 --> 0:10:11.360 Street time for the Bloomberg Sports Uptaked Morning. John Stas Shower. 0:10:11.440 --> 0:10:14.320 Good morning, John, Welcome back to City Phield. Jacob de Graham. 0:10:14.440 --> 0:10:16.200 I'm the mound there for the first time in more 0:10:16.240 --> 0:10:18.200 than a year. And all he did was for five 0:10:18.400 --> 0:10:21.120 perfect innings in the sixth to walk in a home run, 0:10:21.200 --> 0:10:23.320 so his day was done. He got seventeen outs and 0:10:23.400 --> 0:10:26.920 twelve were strikeouts. Mets scored for some runs for him. 0:10:26.920 --> 0:10:29.199 That doesn't always happen. Four runs in the third inning 0:10:29.480 --> 0:10:32.040 to run doubles for Pete Alonso and Mark Canna to 0:10:32.200 --> 0:10:34.800 Graham of the Mets, Pete the Braves five too. So 0:10:34.920 --> 0:10:36.640 that was a long day yesterday. And these guys came 0:10:36.679 --> 0:10:40.040 in and you know, um put up runs early, and 0:10:40.240 --> 0:10:42.280 you know, my goal was to try to keep it there, 0:10:42.400 --> 0:10:44.520 and you know, Joelie did a great job and then 0:10:44.559 --> 0:10:48.520 Das coming in and closing that game. So um, you know, 0:10:48.559 --> 0:10:51.439 it just shows a lot of team and grind to everything. 0:10:51.480 --> 0:10:53.360 You know, that was a long day yesterday. And then 0:10:53.360 --> 0:10:55.200 they come off the day and and jump on him 0:10:55.200 --> 0:10:57.880 early and and you know finished the series with Hue 0:10:57.880 --> 0:10:59.360 and what a series of Wise of the match, they 0:10:59.400 --> 0:11:02.040 won four of five, so they gained three games on 0:11:02.080 --> 0:11:04.079 Atlanta that I'll leave the NL East by six and 0:11:04.120 --> 0:11:06.280 a half. They've also caught the Yankees for the best 0:11:06.280 --> 0:11:08.880 record in New York. As good a weekend as it 0:11:09.000 --> 0:11:10.640 was for the Mats, that's how bad it was for 0:11:10.640 --> 0:11:13.040 the Yankees. In St. Louis, the day after the Cardinals 0:11:13.040 --> 0:11:16.360 won one to nothing, they won twelve to nine. Sixteen 0:11:16.440 --> 0:11:19.680 Yankee hits not enough, as Frankie Mantas gave up six 0:11:19.760 --> 0:11:22.160 runs at his Yankee debut. It's the cardinals seventh win 0:11:22.200 --> 0:11:24.600 in a row. It's their first ever sweep for the Yankees. 0:11:24.880 --> 0:11:26.839 First time all year the Yanks have been swept in 0:11:26.880 --> 0:11:29.440 a three game series. They are just nine and sixteen 0:11:29.840 --> 0:11:32.480 over their last five games. No Young Cam It's twenty 0:11:32.520 --> 0:11:34.880 year old from South Korea won the Windham Golf in Greensboro. 0:11:35.040 --> 0:11:37.360 His first whole of the tournament last Thursday was a 0:11:37.440 --> 0:11:40.080 quadruple bogey. Made up for that with a fun round 0:11:40.120 --> 0:11:43.720 sixty one. John stash Award Bloomberg Sports Done all right, John, 0:11:43.760 --> 0:11:45.400 Thanks a lot ahead of the Cans show uping on 0:11:45.440 --> 0:11:48.680 Wall Street. Futures in the green right now the down 0:11:48.800 --> 0:11:52.559 futures of eight one smp E Mini futures twelve points sire. 0:11:52.640 --> 0:11:55.080 That's up about three tens of a percent. Yeah, the 0:11:55.120 --> 0:11:58.760 Nansch futures fifty one points higher. That is a four 0:11:58.840 --> 0:12:03.040 tense of eight percent. You're listening to Bloomberg day Break, 0:12:06.800 --> 0:12:09.720 and just ahead on Bloomberg day Break, Carlyle Group says 0:12:09.720 --> 0:12:14.320 it's CEO has stepped down. What's the significant We'll ask 0:12:14.320 --> 0:12:23.240 Bloomberg's Shinali Basset. You're listening to Bloomberg markets, headlines and 0:12:23.400 --> 0:12:26.640 breaking news twenty four hours a day, at Bloomberg dot com, 0:12:26.760 --> 0:12:29.839 the Bloomberg Business app, and at Bloomberg Quick Tape. This 0:12:30.280 --> 0:12:39.120 is a Bloomberg Business lash. I'm Nathan Hagar. Stocks are 0:12:39.160 --> 0:12:42.720 climbing this morning. Bond yields are pairing their recent surge 0:12:42.720 --> 0:12:46.439 as investors way the prospects of aggressive federal reserve rate 0:12:46.520 --> 0:12:50.240 hikes against reassuring earnings. We check the markets every fifteen 0:12:50.240 --> 0:12:53.840 minutes during the trading day. On Bloomberg, SMP futures are 0:12:53.920 --> 0:12:56.760 up twelve points. Now, futures are up a six points, 0:12:57.040 --> 0:12:59.760 and the Nasdaq futures are higher by fifty two points. 0:13:00.080 --> 0:13:02.760 Germany's decks is up six tenths percent now. The CACK 0:13:02.800 --> 0:13:05.120 in Paris is higher by eight tenths of one percent. 0:13:05.400 --> 0:13:08.280 The tenure treasuries of eight thirty seconds, the yield two 0:13:08.280 --> 0:13:10.600 point seven nine percent yield on the two year three 0:13:10.600 --> 0:13:14.520 point to one percent. Nimex crude is down one percent, 0:13:14.559 --> 0:13:16.800 now down eighty nine cents at eighty eight dollars twelve 0:13:16.880 --> 0:13:19.319 cents of barrel comics gold is up two tenths per 0:13:19.320 --> 0:13:22.760 cent or two dollars ninety cents at SEO even announced 0:13:22.920 --> 0:13:25.640 the euro one point zero one eight eight against the dollar. 0:13:25.720 --> 0:13:27.679 The yen is at one thirty four point nine eight 0:13:28.000 --> 0:13:31.000 Bitcoin trading at about twenty four thousand, one hundred dollars. 0:13:31.000 --> 0:13:33.520 That is a gain of three point six percent. That's 0:13:33.520 --> 0:13:35.960 a Bloomberg business flash. And now here's Michael Barr with 0:13:36.040 --> 0:13:38.440 more on what's going on around the world. Michael Nathan, 0:13:38.440 --> 0:13:41.160 thank you very much. The Senate passed the landmark tax, 0:13:41.240 --> 0:13:44.160 climate and Healthcare bill. The vote on the bill was 0:13:44.240 --> 0:13:47.960 fifty one Democrats in favor to fifty Republicans against, with 0:13:48.160 --> 0:13:51.720 Vice President Kamala Harris casting the tie breaking vote after 0:13:51.800 --> 0:13:54.840 an overnight marathon of votes on amendments. It now goes 0:13:54.880 --> 0:13:57.720 to the House, where it is expected to pass on Friday. 0:13:58.080 --> 0:14:02.720 China's military announced a new exercise near Taiwan today, signaling 0:14:02.800 --> 0:14:05.400 that Beijing wanted to keep up pressure on the island 0:14:05.720 --> 0:14:09.000 after US House Speaker Nancy Pelosi's visit. In baseball, the 0:14:09.080 --> 0:14:12.880 Yankees lost to the Cardinals twelve nine. The Mets beat 0:14:12.920 --> 0:14:16.800 the Braves five to the Red Sox, Orioles and Nationals 0:14:16.840 --> 0:14:20.920 all lost. The Giants beat the A six four Global 0:14:20.960 --> 0:14:23.600 News twenty four hours a day on air and on 0:14:23.640 --> 0:14:27.880 Bloomberg Quicktake, powered by more than seven hundred journalists and 0:14:27.880 --> 0:14:31.440 analysts and more than one d twenty countries. I'm Michael Barr, 0:14:31.560 --> 0:14:34.080 and this is Bloomberg, John, Michael, thank you, coming up 0:14:34.080 --> 0:14:36.280 on six twenty on Wall Street. We are live for 0:14:36.320 --> 0:14:41.760 the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak. Carlisle 0:14:41.840 --> 0:14:45.360 Group says it's chief executive officer q Song Lee has 0:14:45.440 --> 0:14:49.120 stepped down. Let's figure out the significance of this story 0:14:49.200 --> 0:14:51.760 this morning with Bloomberg and Ali bast six and all 0:14:51.800 --> 0:14:53.880 the good to see in the studio. This is actually 0:14:53.920 --> 0:14:56.960 I should tell people one of the most read stories 0:14:57.080 --> 0:15:00.760 on the Bloomberg terminal this morning, private what he is 0:15:00.800 --> 0:15:05.200 in the business of fixing and reshaping companies. Yet, when 0:15:05.200 --> 0:15:08.280 it comes to tink it in the house. What's the problem? 0:15:08.920 --> 0:15:12.240 That's a funny question. So Carlisle is one of the 0:15:12.280 --> 0:15:16.120 earliest private equity firms. Of course, it's three founders only 0:15:16.160 --> 0:15:21.280 really started the generational change, let's say in the last 0:15:22.040 --> 0:15:24.760 second half of this past decade. So about five years 0:15:24.760 --> 0:15:27.880 ago they named q Song Lee and at that time 0:15:27.880 --> 0:15:31.240 it was Glenn Young Can to be co CEOs. Within 0:15:31.280 --> 0:15:33.920 a couple of years, Glenn Youngcan of course stepped down, 0:15:33.960 --> 0:15:36.880 he went into politics, and you have qu Song Lee 0:15:36.880 --> 0:15:40.680 who took over on his own. He's made some major 0:15:40.760 --> 0:15:44.440 shifts in the company. He's made a big pivot and 0:15:44.520 --> 0:15:46.960 turned towards credit markets, which is something a lot of 0:15:47.000 --> 0:15:50.320 its peers are doing. He's rearranged teams, he's tried to 0:15:50.320 --> 0:15:53.520 get more dealmakers to work more closely together. But you know, 0:15:53.680 --> 0:15:55.560 the the question at the end of the day was 0:15:55.960 --> 0:15:59.440 when his contract came up from renewal, he and the 0:15:59.480 --> 0:16:01.760 board not meet eye to eye on the terms of 0:16:01.800 --> 0:16:06.160 that renewal and therefore they announced this really abrupt exit. 0:16:06.320 --> 0:16:09.800 Remember this is a statement that came out on a 0:16:09.920 --> 0:16:14.280 ten PM on a Sunday night, without a successor named 0:16:14.480 --> 0:16:18.520 with a former co founder coming back as the interim 0:16:18.560 --> 0:16:23.360 CEO and announcement that the board will be announcing an 0:16:23.400 --> 0:16:27.320 executive search firm to find a new CEO. So very 0:16:27.440 --> 0:16:31.320 rare for a firm, again to your point that deals 0:16:31.320 --> 0:16:35.960 with a lot of companies and transitional change to announce 0:16:36.000 --> 0:16:39.360 such a sudden exit that does not have the path 0:16:39.400 --> 0:16:43.000 forward delineated. All that clearly. Yet was there any sign 0:16:43.120 --> 0:16:46.440 prior to this of acrimony between him on the board? 0:16:47.160 --> 0:16:50.720 So acrimony is a relative term on Wall Street because 0:16:51.040 --> 0:16:55.480 of course they hate each other. Well, listen, listen, But 0:16:55.560 --> 0:16:58.200 it's interesting when Glenn Yuncan had taken over as this 0:16:58.320 --> 0:17:02.320 co CEO. Interestingly, Glenn was a lifer. He was really 0:17:02.360 --> 0:17:04.919 at Carlisle for a very long time. Ke Sung Lee 0:17:05.040 --> 0:17:08.600 came over mid career. But when Glenn and Q had 0:17:08.960 --> 0:17:13.240 stepped into um the four together, Q was the one 0:17:13.280 --> 0:17:16.320 who won out. There was a massive power struggle just 0:17:16.440 --> 0:17:20.479 years ago, and really Ques businesses were the ones that 0:17:20.520 --> 0:17:23.480 we're winning out. He was the one that was elevated more. 0:17:23.520 --> 0:17:25.199 He was the one that took over solely at the 0:17:25.280 --> 0:17:27.200 end of the day. So this has been a five 0:17:27.280 --> 0:17:30.679 year experiment over at Carlisle in this generational change. Remember 0:17:30.720 --> 0:17:33.040 they were the first one of their kind to make 0:17:33.119 --> 0:17:36.560 this massive change at the top, and now they're going 0:17:36.600 --> 0:17:38.760 in a different direction with one of the co founders 0:17:38.760 --> 0:17:41.720 coming back at the helm as they make that transition again. 0:17:41.760 --> 0:17:44.800 Remember the co founders are the largest shareholders of Carlisle still, 0:17:45.200 --> 0:17:48.080 but Carlyle was also one of the earliest firms to 0:17:48.200 --> 0:17:51.840 release start to make changes be more shareholder friendly. And 0:17:52.160 --> 0:17:54.959 you know, according to Bloomberg's data out que Sung Lee 0:17:55.080 --> 0:17:57.160 is not one of the top ten shareholders of the company, 0:17:57.320 --> 0:17:59.960 whereas the three co founders are the three top sharehol 0:18:00.040 --> 0:18:03.159 orders of the company. Um and beyond that, this is 0:18:03.200 --> 0:18:06.520 a firm that has underperformed its rivals over the past 0:18:06.600 --> 0:18:10.040 year and over the past five years, they've underperformed by 0:18:10.040 --> 0:18:13.359 how much you know, sometimes double when you look over, 0:18:13.560 --> 0:18:16.760 but sometimes at a smaller margin. So um, I'll give 0:18:16.800 --> 0:18:19.040 you an example. Black Stone has doubled assets in that 0:18:19.080 --> 0:18:22.080 time frame, more than double by meaningful amount to almost 0:18:22.080 --> 0:18:27.160 one trillion dollars. Carlyle is not yet doubled its assets 0:18:27.200 --> 0:18:29.960 in that time frame, but they have grown meaningfully. They 0:18:30.000 --> 0:18:33.199 have beat their own targets. It is a very competitive 0:18:33.320 --> 0:18:36.480 landscape out there as these firms are taking share very 0:18:36.560 --> 0:18:40.040 very quickly. So can we say it's a performance issue 0:18:40.240 --> 0:18:44.240 or it's one of a culture clash. It's very much 0:18:44.240 --> 0:18:49.400 a culture clash. However, given the environment we're in, Carlyle's 0:18:49.880 --> 0:18:53.520 set to compete as anybody else's. They have grown meaningfully 0:18:53.520 --> 0:18:56.080 car You know, qus On Lee has navigated them into 0:18:56.119 --> 0:18:59.520 the best performing businesses. Their credit business, which he really 0:18:59.640 --> 0:19:03.040 pushed him into in a bigger way, Struck Deals upon 0:19:03.760 --> 0:19:06.760 That business doubled in six months at the beginning of 0:19:06.760 --> 0:19:10.280 this year. So it's not that simple of a story, 0:19:10.880 --> 0:19:13.439 but you know, it is kind of what it is 0:19:13.760 --> 0:19:17.400 at this point. And uh, you know, it wasn't surprise 0:19:17.480 --> 0:19:22.000 to investors, but they've navigated this kind of transition before. 0:19:22.560 --> 0:19:26.360 Sally Pleasure, thanks for being in the studio with this 0:19:26.359 --> 0:19:30.200 this morning again. Carlias CEO Q Song Lee quitting after 0:19:30.280 --> 0:19:32.480 his bid to remake the firm kind of put him 0:19:32.480 --> 0:19:36.600 at odds with the old guard at Carlysle ahead of 0:19:36.600 --> 0:19:39.240 the cash Open up, Wall Street, Welcome at the green 0:19:39.440 --> 0:19:42.600 on the screen. The down futures right now eighties seven 0:19:42.640 --> 0:19:45.240 points higher, that's a three tense of a percent. Smp 0:19:45.480 --> 0:19:49.000 EMNE futures twelve points higher. That's up three tense, and 0:19:49.119 --> 0:19:52.399 the nsent futures right now are up fifty six points, 0:19:52.400 --> 0:19:55.360 a rise of four tenths of a percent. Ten year 0:19:55.400 --> 0:19:58.840 yield at two seventy nine, the two year at three 0:19:58.960 --> 0:20:03.000 twenty wand negative forty two basis points spread between those 0:20:03.040 --> 0:20:07.679 two as the inversion continues. This is Bloomberg still ahead. 0:20:07.800 --> 0:20:11.680 Five states may determine if the four election can be stolen. 0:20:12.119 --> 0:20:15.120 A fascinating story in Bloomberg will talk to Bloomberg Government 0:20:15.200 --> 0:20:23.400 reporter Emily Wilkins. You're listening to Daybreak, broadcasting live from 0:20:23.400 --> 0:20:27.480 the Bloomberg Interacted Broker's studio in New York. Bloomberg Evan 0:20:27.560 --> 0:20:32.160 Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one 0:20:32.160 --> 0:20:35.359 O six one to San Francisco, Bloomberg N sixteen to 0:20:35.400 --> 0:20:38.119 the country, Sirius XM gent O one nine ten, and 0:20:38.160 --> 0:20:41.520 around the globe the Bloomberg Business app and Bloomberg Radio 0:20:41.640 --> 0:20:51.359 dot Com. This is Bloomberg Daybreak six thirty on Wall Street. 0:20:51.359 --> 0:20:53.919 Good morning, I'm John Tucker, I'm Nathan Hagar. We are 0:20:53.920 --> 0:20:56.200 about three hours away from the open of US trading. 0:20:56.240 --> 0:20:57.960 Time for the five things you need to know to 0:20:58.000 --> 0:21:00.680 start your day. Brought to you by inter Active Brokers. 0:21:00.680 --> 0:21:03.840 Global Analysts helps you find new global investment opportunities to 0:21:03.840 --> 0:21:07.359 diversify your portfolio and discover undervalued companies that may have 0:21:07.400 --> 0:21:10.680 greater growth potential. Try ib k our Global Analysts today 0:21:10.920 --> 0:21:14.320 at I b k R dot com slash g a up. First, 0:21:14.320 --> 0:21:17.480 the Senate has passed a landmark tax, climate, and healthcare bill. 0:21:17.680 --> 0:21:20.680 It gives President Biden an apparent victory on his domestic agenda, 0:21:20.760 --> 0:21:23.040 but the measure is a shadow of his original build 0:21:23.080 --> 0:21:25.800 back better plan. Here send a majority, Leader, Chuck Schumer. 0:21:26.320 --> 0:21:30.080 We had many pumps in the road, many times when 0:21:30.119 --> 0:21:32.680 it looked like it would never happen, but we never 0:21:32.720 --> 0:21:36.000 gave up, and here we are got it done. Sent 0:21:36.080 --> 0:21:38.320 a majority, Leader, Chuck Schumer says. The bill now goes 0:21:38.400 --> 0:21:40.960 to the House, where the Democratic majority is expected to 0:21:41.000 --> 0:21:43.840 pass it on Friday. And turning to the markets. Now 0:21:43.880 --> 0:21:45.840 future is hired to start a week that will be 0:21:45.960 --> 0:21:49.600 highlighted by a key inflation report. The July cp I 0:21:49.680 --> 0:21:52.760 forecans to come in at eight point seven percent on Wednesday. 0:21:53.040 --> 0:21:55.760 San Francisco FED President Mary Daly says finding in place 0:21:55.840 --> 0:21:59.000 and remains the Fed's main focus. We are far from 0:21:59.000 --> 0:22:01.600 done yet. That's the the promise to the American people. 0:22:01.640 --> 0:22:04.119 We are far from done. We're committed to bringing inflation 0:22:04.160 --> 0:22:06.639 down and we'll continue to work until that job is 0:22:06.680 --> 0:22:09.840 fully done. Very daily making the comments on CBSS face 0:22:09.960 --> 0:22:12.760 the nation. You can catch that program Sunday, Antonoons and 0:22:12.800 --> 0:22:15.680