WEBVTT - Bloomberg Daybreak: July 7, 2022 - Hour 1 (Radio) 0:00:02.600 --> 0:00:05.840 Line from the Bloomberg interactor Berger Studios. This is Bloomberg 0:00:05.880 --> 0:00:09.640 day Break for Thursday to seven two. Coming up this hour, 0:00:09.960 --> 0:00:13.200 Boris Johnson plans to resign as British Prime Minister. We 0:00:13.240 --> 0:00:15.880 are live in London with the very latest. It founds 0:00:15.880 --> 0:00:19.640 strengthens on the resignation news, as European stocks climb, Fed 0:00:19.680 --> 0:00:22.560 officials stick to their rate hike plan to curb inflation, 0:00:22.840 --> 0:00:26.360 and Samsung starks a rally in chip stocks. New York 0:00:26.400 --> 0:00:30.080 Mayor Eric Adams holds a roundtable discussion on city issues. 0:00:30.160 --> 0:00:33.400 Plus looking for a motive for the Island Park, Illinois shooter. 0:00:33.680 --> 0:00:36.000 I'm Michael Barr. More ahead, I'm trying to stand shower 0:00:36.000 --> 0:00:38.559 in sports, attending win for the Mets, a lopsided win 0:00:38.640 --> 0:00:40.680 for the Yankees. They make their first visit to the 0:00:40.680 --> 0:00:46.400 Red Sox tonight. That's all straded ahead on Bloomberg day 0:00:46.400 --> 0:00:51.080 Break on Bloomberg eleven Free on New York, Bloomberg one, Washington, 0:00:51.200 --> 0:00:55.040 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 0:00:55.040 --> 0:00:58.720 San Francisco, Sirius XM one nine team, and around the 0:00:58.760 --> 0:01:02.040 world on Bloomberger deal dot Com and via the Bloomberg 0:01:02.080 --> 0:01:09.399 Business Actor, and good morning. I'm Nathan Hagar and I'm 0:01:09.440 --> 0:01:12.880 Karen Moscow. US Dock Index futures on the rise this morning. 0:01:12.880 --> 0:01:14.640 We're coming up to five the one on Wall Street, 0:01:14.680 --> 0:01:16.880 and we checked the markets every fifteen minutes throughout the 0:01:16.920 --> 0:01:21.160 trading day. On Bloomberg, SNP futures up thirteen points this morning, 0:01:21.200 --> 0:01:24.680 Down futures up ninety six, and NASDAG futures up fifty five. 0:01:25.040 --> 0:01:28.039 The decks in Germany's up one point six percent. Ten 0:01:28.120 --> 0:01:30.959 year treasury down twelve thirty seconds, yield two point nine 0:01:31.120 --> 0:01:34.000 seven percent, and they yield on the two year three 0:01:34.040 --> 0:01:37.200 point oh three percent. Nine X screwed oil is up 0:01:37.240 --> 0:01:40.559 four ten percent at ninety eight dollars ninety cents a barrel. Nathan, 0:01:40.640 --> 0:01:43.120 all right, Karen, we begin this morning with breaking developments 0:01:43.120 --> 0:01:46.360 out of the UK. Time is up for Boris Johnson 0:01:46.480 --> 0:01:49.000 as we get where the prime minister is finally ready 0:01:49.080 --> 0:01:51.720 to resign. Let's go live to London and get the 0:01:51.760 --> 0:01:54.120 latest with Bloomberg's You and Potts. Good morning, you, and 0:01:54.560 --> 0:01:57.680 good morning Nathan and Karen. Boris Johnson says he's quitting 0:01:57.720 --> 0:02:00.760 as Britain's Prime minister even by we and standards has 0:02:00.800 --> 0:02:03.960 been a dramatic day on Downing Street. A snowstorm of 0:02:04.000 --> 0:02:06.080 resignations from the government at the beginning of the week 0:02:06.160 --> 0:02:10.360 became an avalanche by yesterday. In total, more than fifty 0:02:10.520 --> 0:02:14.200 ministers and aids leaving their jobs in protest. But perhaps 0:02:14.200 --> 0:02:16.520 the final blow came today when the Chance that the 0:02:16.600 --> 0:02:19.080 second most senior member of the government's only appointed to 0:02:19.080 --> 0:02:23.760 the job on Tuesday, tweeted that Boris Johnson must go now. Well, 0:02:23.800 --> 0:02:26.000 the PM is finally given into the pressure and is 0:02:26.040 --> 0:02:29.120 now preparing his resignation speech. Nathan, all right, well you 0:02:29.200 --> 0:02:32.680 and when is Boris Johnson expected to actually leave office? One? 0:02:32.680 --> 0:02:36.200 Are the next steps for the UK government? Well, today's 0:02:36.200 --> 0:02:37.880 news means that the UK is set to have its 0:02:38.000 --> 0:02:41.920 fourth leader within just six years now. Remember, the Conservative 0:02:41.960 --> 0:02:44.600 Party still has a majority in the British Parliament, so 0:02:44.639 --> 0:02:47.240 it's up to the party to choose a new leader 0:02:47.400 --> 0:02:49.840 who will then take over as the British Prime Minister. 0:02:50.240 --> 0:02:52.560 And leadership contest is set to get underway in the 0:02:52.600 --> 0:02:54.880 coming days, with the new PM likely to be in 0:02:54.919 --> 0:02:58.040 place by October. Live in London, I'm you in port 0:02:58.080 --> 0:03:00.399 spin by daybreak? How are you? And thank you? Of course, 0:03:00.400 --> 0:03:03.919 will be following this story throughout the day checking market reaction. Now, 0:03:03.960 --> 0:03:07.600 the pound strengthening on the news. It's at one point 0:03:07.919 --> 0:03:10.360 one nine is six and nine against the dollar, and 0:03:10.400 --> 0:03:13.280 stocks across Europe are rallying. The stock six hundred is 0:03:13.320 --> 0:03:15.640 up one point three percent and the foot See one 0:03:15.720 --> 0:03:18.560 hundred in London is up nine tenths per cent. Well, 0:03:18.560 --> 0:03:22.079 Britain grapples with political turmoil Karen. The war in Ukraine 0:03:22.160 --> 0:03:24.720 rages on, and now the US and its allies are 0:03:24.720 --> 0:03:26.720 firming up plans for a cap on the price of 0:03:26.800 --> 0:03:29.840 Russian oil. The goal is to limit the Kremlin's ability 0:03:29.880 --> 0:03:32.920 to finance its war. Amy Morris has the details from 0:03:32.960 --> 0:03:37.360 our Bloomberg newsroom in Washington. They're discussing a cap between 0:03:37.480 --> 0:03:40.200 forty and sixty dollars a barrel. The aim is to 0:03:40.200 --> 0:03:43.200 cut Moscow's revenue for its war in Ukraine, but the 0:03:43.320 --> 0:03:45.120 risk is that it would lead to a spike in 0:03:45.160 --> 0:03:49.040 oil prices. German Chancellor Olof Schultz accused Russia of using 0:03:49.120 --> 0:03:52.680 natural gas deliveries as a political weapon. The invasion of 0:03:52.760 --> 0:03:56.240 Ukraine has also forced several European countries to dial back 0:03:56.320 --> 0:04:00.000 their plans for decarbonization so they can compensate for those 0:04:00.080 --> 0:04:03.560 cuts and Russian fuel supplies. In Washington, I'm anymore at 0:04:03.560 --> 0:04:05.920 Bloomberg Daybreak. All right, Amy, thank you, and turning to 0:04:05.920 --> 0:04:09.520 the economy now. Investors are still reacting to yesterday's Fed minutes, 0:04:09.600 --> 0:04:12.480 and they're also looking ahead to tomorrow's jobs report to 0:04:12.560 --> 0:04:15.280 get the details. Live with the Bloomberg's John Tucker, John, 0:04:15.280 --> 0:04:18.039 Good morning, Karen. Minutes from the Fed show central bank 0:04:18.080 --> 0:04:22.039 officials solidified the resolved to keep raising interest rates for longer. 0:04:22.400 --> 0:04:25.760 They viewed maintaining the central banks credibility to control inflation 0:04:25.839 --> 0:04:28.839 as critical. That his investors still betting the Fed will 0:04:28.920 --> 0:04:32.120 hike by seventy five basis points later this month. Meantime, 0:04:32.160 --> 0:04:35.640 economists forecast US employers added the fewest jobs in over 0:04:35.680 --> 0:04:38.520 a year in June, but they say that expended slowdown 0:04:38.600 --> 0:04:41.480 isn't too concerning just yet. The jobs report from the 0:04:41.560 --> 0:04:44.840 Labor Department expected to show the unemployment rate remaining at 0:04:44.880 --> 0:04:48.200 an historically low level. Live in New York, I'm John Tucker, 0:04:48.279 --> 0:04:51.239 Bloomberg Daybreak. All right, John, Thanks, talk about an economy 0:04:51.240 --> 0:04:54.440 of a difference sort Now, billionaires and high fires from 0:04:54.480 --> 0:04:57.440 the tech and media worlds are all in sun Valley, Idaho, 0:04:57.720 --> 0:05:01.320 for the annual Allen and Company conference. Bloomberg's Ed Ludlow 0:05:01.440 --> 0:05:03.520 is there too and found this report. A lot of 0:05:03.560 --> 0:05:06.400 the big picture macro items are what a top of mind. 0:05:06.440 --> 0:05:10.760 There are discussions around inflation, recession risk, the volatility that 0:05:10.880 --> 0:05:16.240 we've seen in public equity markets, the rundown evaluations that 0:05:16.320 --> 0:05:19.400 we've seen in both public and private markets. But behind 0:05:19.440 --> 0:05:22.600 closed doors, all of these high fliers were also talking 0:05:22.600 --> 0:05:26.320 about a number of societal issues, ranging from gun control 0:05:26.440 --> 0:05:29.960 to recent decisions by the Supreme Court. They're also discussing 0:05:30.360 --> 0:05:34.119 issues of climate change. No site yet of Elon Musk, 0:05:34.200 --> 0:05:37.080 the world's richest man, is coming to some valley, according 0:05:37.120 --> 0:05:41.560 to sources. Ed Ludlow for Bloomberg News in Sun Valley, Idaho, Alhead. 0:05:41.640 --> 0:05:44.600 As you mentioned, we're learning now Elon Musk is expected 0:05:44.600 --> 0:05:47.560 to speak at the conference. That's expected on the final 0:05:47.640 --> 0:05:50.400 day this Saturday. Well, staying with tech, Nathan, we have 0:05:50.440 --> 0:05:53.479 news on Apple. Bloomberg News has learned the company is 0:05:53.520 --> 0:05:57.080 planning an extreme sports watch. They get the latest live 0:05:57.120 --> 0:05:59.680 with the Bloomberg's Rnida Young. Good morning, Rinda, Good morning 0:05:59.720 --> 0:06:03.039 carry Bloomberg. Sources say Apple's new smart watch will be 0:06:03.080 --> 0:06:06.120 the largest display it's released to date, with a bigger 0:06:06.160 --> 0:06:09.200 battery and a rugged metal casing, and it's geared toward 0:06:09.240 --> 0:06:13.200 extreme sports athletes. Apple could use the largest green area 0:06:13.240 --> 0:06:16.520 to show more fitness metrics or information on watch faces 0:06:16.560 --> 0:06:19.839 at one time. The company plans to announce the new watch, 0:06:19.839 --> 0:06:22.839 along with two other models later this year. Live in 0:06:22.880 --> 0:06:25.600 New York. I'm gonna need a Young Bloomberg daybreak, all right, 0:06:25.640 --> 0:06:27.800 we need to thank you. Chip stocks are higher this 0:06:27.839 --> 0:06:31.720 morning thanks to Samsung Electronics, South Korea's largest company, reported 0:06:31.720 --> 0:06:34.800 a better than anticipated twenty one percent jump in revenue. 0:06:34.800 --> 0:06:37.279 In that report is soothing investors worst fears about the 0:06:37.279 --> 0:06:40.599 impact of weakening consumer demand and soaring materials costs on 0:06:40.640 --> 0:06:44.240 the billion dollar chip industry, and deal news Nathan the 0:06:44.240 --> 0:06:46.799 Wall Street Journal are reporting Murcus and talks to acquire 0:06:46.880 --> 0:06:49.960 biotech company Cgen. The papers said that del could be 0:06:50.000 --> 0:06:53.200 worth about forty billion dollars. Cegen shares are up six 0:06:53.240 --> 0:06:56.080 percent in early trading, and shoes of Game Stopper up 0:06:56.120 --> 0:06:58.520 ten percent in the pre market. Care in that company 0:06:58.520 --> 0:07:01.760 became the poster child for so called meme stocks, of course, 0:07:01.800 --> 0:07:04.600 and now it's announced stay four to one stock split 0:07:04.720 --> 0:07:07.479 in the form of a dividend. SMP futures are up 0:07:07.560 --> 0:07:10.480 nine points, staff futures up seventy four nanstack futures up 0:07:10.520 --> 0:07:13.640 forty five points. Send your treasuries down ten thirty seconds, 0:07:13.640 --> 0:07:16.760 the yield two point nine six percent. Straight ahead, local 0:07:16.800 --> 0:07:23.200 headlines and a check of sports. This is Bloomberg. Man. 0:07:23.280 --> 0:07:25.600 It's now five oh seven on Wall Street, where it's 0:07:25.600 --> 0:07:28.160 seventy two degrees in Central Park. Already got an accident 0:07:28.320 --> 0:07:31.240 southbound New York State through A before exit fifteen A. 0:07:31.680 --> 0:07:34.200 We'll get the details in traffic. First. Michael Barr with 0:07:34.280 --> 0:07:36.440 what else is going on in New York and around 0:07:36.440 --> 0:07:38.880 the world. Good morning, Michael, Good morning, Nathan. New York 0:07:38.920 --> 0:07:42.560 Mayor Eric Adams held a brown table style meeting involving 0:07:42.560 --> 0:07:46.560 community groups and the NYPD. Adams was asked about the 0:07:46.600 --> 0:07:50.040 problem of abuse of landlords in the city. We're going 0:07:50.120 --> 0:07:54.080 to go back and see how we use the Human 0:07:54.160 --> 0:07:58.440 Rights Division, the Police Department of DA's office to target 0:07:58.480 --> 0:08:03.440 those who arrests who are harassing older adults, because you know, 0:08:03.840 --> 0:08:06.800 it's it's against the law to illegally vet, it's against 0:08:06.840 --> 0:08:09.680 the law to harass, and I don't think there's enough 0:08:09.720 --> 0:08:13.160 attention on zero and on those bad acting on landlords. 0:08:14.240 --> 0:08:16.760 Hey Randams dealt with a range of issues from oversight 0:08:16.800 --> 0:08:20.640 of homeless shelters and budget. Mayor Adams said the police 0:08:20.680 --> 0:08:23.520 budget remained flat. Can't live in a city where young 0:08:23.560 --> 0:08:26.040 people pick up a gun faster that they can get 0:08:26.080 --> 0:08:30.240 an iPad. Days after a rooftop gunmen killed seven people 0:08:30.240 --> 0:08:33.839 at the Chicago area Fourth of July parade, attention has 0:08:33.880 --> 0:08:37.839 turned to how the assailant obtained multiple guns. Authorities say 0:08:37.960 --> 0:08:41.280 Robert Kremo, the third confessed to the killings. Highland Park 0:08:41.320 --> 0:08:44.800 Police Chief Lou Jugman says he's quote disappointed that more 0:08:44.880 --> 0:08:47.800 couldn't have been done to prevent Cremo from getting his 0:08:47.920 --> 0:08:50.600 hands on a gun, but he believes his department did 0:08:50.640 --> 0:08:53.000 all it could. Given the constraints of what we have 0:08:53.080 --> 0:08:56.000 in place, there is only so much the police department 0:08:56.080 --> 0:08:58.520 can do. We have a social worker on board, you know, 0:08:58.559 --> 0:09:01.520 we do what we can ve. Jogman says Cremo was 0:09:01.559 --> 0:09:04.640 heading to Madison, Wisconsin to carry out another attack, but 0:09:04.760 --> 0:09:07.920 changed his mind. W n B A Star Britney Grinder's 0:09:08.000 --> 0:09:11.240 drug trial resumes today in Russia, where she's being held 0:09:11.320 --> 0:09:14.800 since February. The White House says President Biden and Vice 0:09:14.840 --> 0:09:18.640 President Harris have called Grinder's wife directly to reassure her 0:09:18.840 --> 0:09:22.840 that he's working to secure Brittney's release as soon as possible. Memhile, 0:09:22.880 --> 0:09:26.760 friends and family of Brittany Grinder held a rally and 0:09:26.760 --> 0:09:28.839 Phoenix to show support for the w n B. A 0:09:28.960 --> 0:09:32.240 star at the rally, Grinder's wife, sharel asked supporters to 0:09:32.320 --> 0:09:36.040 keep pressure on the administration to get Brittney released. Let's 0:09:36.080 --> 0:09:39.240 make sure this administration knows that they have our support 0:09:39.280 --> 0:09:43.000 to do whatever is necessary, and that we are not 0:09:43.120 --> 0:09:47.360 going to ever be quiet until she's home safely. Cherrelle 0:09:47.400 --> 0:09:50.240 Grinder says she has frustrated that her wife is not 0:09:50.360 --> 0:09:53.280 going to get justice. Global News twenty four hours a 0:09:53.360 --> 0:09:56.200 day on air and on Bloomberg Quicktake, powered by more 0:09:56.280 --> 0:09:59.240 than seven hundred journalists and analysts in more than a 0:09:59.600 --> 0:10:03.600 twenty countries. I'm Michael barn This is Bloomberg. Nathan. All right, Michael, 0:10:03.640 --> 0:10:10.080 thank you, coming up to five ten on Wall Street 0:10:10.080 --> 0:10:13.640 time for the Bloomberg Sports Update. Welcome back John Sasha Ranks, Nathan, 0:10:13.720 --> 0:10:16.280 Matt's have to be encouraged about the return of Max 0:10:16.280 --> 0:10:18.800 Scherz or Jacob Gra'm getting closer. But as they trailed 0:10:18.800 --> 0:10:20.760 in Cincinnati, they might have taken a peek in the 0:10:20.760 --> 0:10:24.400 scoreboard and scene Atlanta leading yet again. It was looking 0:10:24.440 --> 0:10:26.240 like the red hot Braids when closed within a game 0:10:26.240 --> 0:10:28.439 and a half of a mett rally a game sorry 0:10:28.480 --> 0:10:31.280 no RBI double starling marked a ninth inning. They went 0:10:31.320 --> 0:10:34.800 to the tent on one pitch demo trills it deep 0:10:34.800 --> 0:10:38.400 to right field toward the seats. N went back at 0:10:38.440 --> 0:10:44.760 defense here with a free run homer. But that's a 0:10:44.920 --> 0:10:47.719 broken the game open in the top of the ten 0:10:48.080 --> 0:10:51.720 y It's eight to three. It was the final WCBS 0:10:51.760 --> 0:10:54.040 ad at the Braves blank the Cardinals three nothing there 0:10:54.080 --> 0:10:56.439 twenty six and seven. In their last thirty three games. 0:10:56.480 --> 0:10:58.720 The Met leaders two and a half. As they host 0:10:58.760 --> 0:11:02.280 Miami tonight. Monday, the Mets visit Atlanta. Yankees tonight make 0:11:02.320 --> 0:11:04.640 their first visit of the season to Boston. They'll seek 0:11:04.640 --> 0:11:07.839 their sixty win in Fittzburg avoided what would have been 0:11:07.880 --> 0:11:10.760 just their second three game losing speaking the season, wallop 0:11:10.840 --> 0:11:14.240 the Pirates sixteen enough. In twenty two. Yankee had seven 0:11:14.240 --> 0:11:17.360 home runs, including Aaron Judges thirty if it was a 0:11:17.400 --> 0:11:19.640 grand stam and came off Many. Banuelos, who was a 0:11:19.720 --> 0:11:22.679 Yankee until just a few days ago, ed Wimbledon one, 0:11:22.679 --> 0:11:25.080 a match Raffield that al took off an abdominal injury, 0:11:25.120 --> 0:11:26.840 came from two sets to one down one a fifth 0:11:26.840 --> 0:11:30.160 set tiebreaker with American Taylor. Fritz d Dal says he's 0:11:30.160 --> 0:11:32.920 not sure he'll be healthy enough to play his semifinal 0:11:33.000 --> 0:11:36.680 match tomorrow with the Austine Nick Herrios women's semifinals. For today, 0:11:36.679 --> 0:11:39.840 Baker Mayfield and Sam Donald were taking first and third 0:11:39.920 --> 0:11:42.400 overall in the two thousand and eight teen draft didn't 0:11:42.400 --> 0:11:45.480 work out for either one. The Browns have traded Mayfield 0:11:45.480 --> 0:11:48.520 to Carolina, and he'll now be Donald's teammate. John stash 0:11:48.600 --> 0:11:52.160 Award Bloomberg sports stad all right, John thank USMP futures 0:11:52.200 --> 0:11:55.360 up thirteen points, steps up a hundred five Nanstack futures 0:11:55.440 --> 0:11:58.679 up sixty. The British pound strengthening at a one point 0:11:58.679 --> 0:12:02.240 one six eight against the dollar. Bloomberg's Lizzie Burden joins 0:12:02.360 --> 0:12:08.679 US next on Boris Johnson resigning Bloomberg eleven three oh 0:12:08.679 --> 0:12:11.240 Weather mostly cloudy if you afternoon showers possible to high 0:12:11.280 --> 0:12:14.760 near eighty degrees. More showers likely tomorrow with low eighties 0:12:14.840 --> 0:12:17.440 for highs. Will be in the sunshine by Saturday. Right 0:12:17.480 --> 0:12:23.840 now seventy two in Central Park Markets, headlines and breaking 0:12:23.840 --> 0:12:26.760 news twenty four hours a day at Bloomberg dot com 0:12:26.840 --> 0:12:29.880 for the Bloomberg Business at and at Bloomberg Quicktake. This 0:12:30.360 --> 0:12:39.520 is a Bloomberg Business Flash and I'm Karen Moscow. You 0:12:39.559 --> 0:12:41.440 must not in next. Future is on the rise this 0:12:41.600 --> 0:12:44.480 morning at softer oil prices and a weeker dollar signal. 0:12:44.559 --> 0:12:47.480 Fears about inflation and the pace of monetary tightening or 0:12:47.559 --> 0:12:50.520 fading the US to contend, your yield curve remains inverted 0:12:50.559 --> 0:12:53.000 for a third day. We checked the markets every fifteen 0:12:53.000 --> 0:12:55.640 minutes throughout the trading day. On Bloomberg s and T 0:12:55.800 --> 0:12:58.360 futures up thirteen points this morning. Down futures have one 0:12:58.760 --> 0:13:02.120 eleven and nowsday future is up sixty one. The decks 0:13:02.120 --> 0:13:04.679 in Germany is up one point eight percent. In the 0:13:04.679 --> 0:13:07.319 foot Sea one hundred up one point to percent ten. 0:13:07.400 --> 0:13:09.680 Your treasury down twelve thirty seconds. He had two point 0:13:09.720 --> 0:13:11.880 nine seven percent. They yield on a two year three 0:13:11.920 --> 0:13:14.840 point oh two percent. Nimex screwed oils up tenth of 0:13:14.880 --> 0:13:17.440 upper center fourteen cents and ninety eight dollars sixty five 0:13:17.440 --> 0:13:19.839 cents of barrel comex Schold up three tenths per cent 0:13:19.920 --> 0:13:22.480 or five dollars twenty cents at seventeen forty one sixty 0:13:22.480 --> 0:13:26.360 announced the euro one point o one nine four against 0:13:26.360 --> 0:13:28.720 the dollar. British found one point one nine seven three 0:13:29.000 --> 0:13:31.360 and the end is at one thirty six point one four. 0:13:31.440 --> 0:13:34.520 Look at it bitcoin this morning, it's up half percent 0:13:34.600 --> 0:13:37.720 at twenty thousand, four hundred eighty dollars. That's a Bloomberg 0:13:37.720 --> 0:13:40.080 business flash. Now here's Michael Barr with more and what's 0:13:40.080 --> 0:13:42.760 going on around the world. Muchael, Thank you very much, Karen. 0:13:42.800 --> 0:13:46.720 British Prime Minister Boris Johnson has agreed to resign. Johnson 0:13:46.760 --> 0:13:49.200 and buff calls bias cabinet to step down in the 0:13:49.200 --> 0:13:52.280 wake of ethics scandals. He gave in after more than 0:13:52.320 --> 0:13:55.120 forty ministers quit his government and told him to go. 0:13:55.320 --> 0:13:58.480 We'll have more on the Johnson story in a few moments. 0:13:58.720 --> 0:14:01.560 In baseball, the Yankees know what for and why whipping 0:14:01.600 --> 0:14:04.640 on the Pirates sixteen nothing. The Mets also won the 0:14:04.760 --> 0:14:07.880 Nationals Orioles and Giants won. The Red Sox lost along 0:14:07.920 --> 0:14:10.800 with the a's global news twenty four hours a day 0:14:10.840 --> 0:14:13.959 on here and on Bloomberg Quittake, powered by more than 0:14:14.960 --> 0:14:18.240 journalists and analysts more than twenty countries. I'm Michael Barr, 0:14:18.320 --> 0:14:21.160 and this is Bloomberg. Nathan alright, Michael, thank you. It's 0:14:21.200 --> 0:14:23.760 five nineteen on Wall Street, live from the Bloomberg Intteractive 0:14:23.760 --> 0:14:26.480 Broker Studios. This is Bloomberg Daybreak, and speaking of what 0:14:26.600 --> 0:14:30.960 for and why whippings, Boris Johnson is now finally planning 0:14:30.960 --> 0:14:34.320 to resign after a wave of resignations that made the 0:14:34.400 --> 0:14:37.000 last forty eight hours very tough to keep up with 0:14:37.040 --> 0:14:40.280 in terms of UK politics. Luckily, we have Bloomberg's Lizzie 0:14:40.280 --> 0:14:43.920 Burden back with us this morning outside number ten Downing Street, 0:14:43.920 --> 0:14:47.400 where she's been keeping post over the last couple of 0:14:47.480 --> 0:14:51.400 days here watching all that's been happening. Lizzie. I've got 0:14:51.400 --> 0:14:54.560 to think it's been feeling like swimming against a flood, 0:14:55.040 --> 0:14:57.160 just trying to keep up with all that's going on. 0:14:57.200 --> 0:15:00.240 And now we have what looks like the then you 0:15:00.360 --> 0:15:04.240 are here. Perhaps it has and let me tell you, 0:15:04.520 --> 0:15:07.440 last night it seemed inevitable that Boris Johnson was going 0:15:07.480 --> 0:15:09.960 to resign, and we waited and waited and nothing came. 0:15:10.280 --> 0:15:12.520 Then when I arrived in Downing Street this morning, we 0:15:12.520 --> 0:15:14.840 weren't sure if anything was going to happen. It was 0:15:14.960 --> 0:15:18.600 very quiet, and then the staffers started arriving, and then 0:15:18.640 --> 0:15:22.120 the cars started moving, and then now I could tell 0:15:22.160 --> 0:15:25.240 you it's absolutely heaving in the press area with cameras 0:15:25.280 --> 0:15:28.160 from all over the world. We're expecting to hear from 0:15:28.160 --> 0:15:31.840 Boris Johnson by noon London time. There's no podium out 0:15:31.880 --> 0:15:34.960 yet in front of Number ten, but the tone of 0:15:35.000 --> 0:15:39.440 the speech will be fascinating. Remember his predecessor to reason 0:15:39.520 --> 0:15:43.360 May was in tears when she resigned. There are twindows twitching, 0:15:43.840 --> 0:15:48.080 curtains twitching across the street of people trying to buy 0:15:48.160 --> 0:15:50.680 for the best spot to watch, because what's happened is 0:15:51.040 --> 0:15:53.800 the usual Number ten meeting. This morning has resulted in 0:15:53.960 --> 0:15:56.560 Johnson's core team telling him that he had to go. 0:15:56.840 --> 0:16:00.160 There was a letter from his chancellor, Nadine Zahawi, who's 0:16:00.160 --> 0:16:02.960 been appointed. He's been in posed less than twenty fourty 0:16:03.040 --> 0:16:06.640 eight hours and he's told Johnson to resign. There's been 0:16:06.680 --> 0:16:10.200 an unprecedented wave of resignations, almost a third of the government, 0:16:10.480 --> 0:16:15.320 leaving it in para paralysis, and it just seemed increasingly inevitable. 0:16:15.400 --> 0:16:19.000 After the pest Minster as it's called, sex scandals, the 0:16:19.160 --> 0:16:22.760 party gate crisis, the cost of living crisis, it's all 0:16:22.800 --> 0:16:25.320 mounted up and it now seems finally it's going to 0:16:25.360 --> 0:16:28.160 be cursins for Boris Johnson. And as you mentioned, we 0:16:28.200 --> 0:16:32.320 are expecting this resignation speech in less than two hours time. 0:16:32.520 --> 0:16:36.880 Here we've been told Lizzie that Boris Johnson is planning 0:16:36.880 --> 0:16:40.880 to stay on as a caretaker leader until the next 0:16:41.200 --> 0:16:44.840 Prime Minister is chosen by the Conservative Party. Can he 0:16:45.000 --> 0:16:49.000 stay on that long given that so many of his 0:16:49.080 --> 0:16:53.600 own party members of jump ship. Well, we're hearing already 0:16:53.720 --> 0:16:57.520 pushed back from MPs on that point breaking line that 0:16:57.640 --> 0:17:01.400 Quasi Kuakeng is saying that we need to find a 0:17:01.400 --> 0:17:06.160 new leader as soon as reasonably practicable. One MP said 0:17:06.200 --> 0:17:08.119 that there needs to be an abrupt holt to the 0:17:08.200 --> 0:17:11.720 Johnson's poison and that the Deputy Prime Minister, Dominic Robb 0:17:11.760 --> 0:17:15.200 should step in. Remember, if you think about Boris Johnson's 0:17:15.240 --> 0:17:19.240 time in office at the moment, it would be one thousand, 0:17:19.320 --> 0:17:22.119 sev days. His predecessor, to reason May was in for 0:17:22.280 --> 0:17:25.000 one thousand, one hundred and six days, so he'd have 0:17:25.000 --> 0:17:27.440 a short tenure than May if he leaves now, but 0:17:27.520 --> 0:17:30.359 not if he stays on as a caretaker. But in 0:17:30.400 --> 0:17:33.520 any case, it's a humiliating end to a political career 0:17:33.880 --> 0:17:36.679 of someone who only three years ago one of the 0:17:36.720 --> 0:17:42.360 biggest landslide since Margaret Thatcher. As you mentioned, though, it's 0:17:42.400 --> 0:17:46.880 a short tenure. But it's been like scandal after scandal 0:17:46.960 --> 0:17:51.399 after scandal for this Prime minister. I'm curious why this 0:17:51.640 --> 0:17:55.720 last scandal involving Chris Pincher seems to be the one 0:17:55.800 --> 0:18:00.280 that was the final straw for so many MPs. Well, 0:18:00.359 --> 0:18:03.600 it started with the resignation of Satage Other, the Health Secretary, 0:18:03.600 --> 0:18:06.160 and that was quickly followed i think ten minutes later 0:18:06.280 --> 0:18:09.480 by that of the Chancellor x now ex Chancel and 0:18:09.520 --> 0:18:13.280 now Rischie Sunac, and in their resignation letters it's focused 0:18:13.320 --> 0:18:19.840 on integrity that they couldn't defend this the government line 0:18:20.200 --> 0:18:24.360 on the Chris Pincher affair any longer, and that has 0:18:24.400 --> 0:18:26.880 been the case for other MPs as well. Rischie Sunac, 0:18:26.920 --> 0:18:30.480 though in his letter, also pointed out his fundamental differences 0:18:30.520 --> 0:18:33.399 from Boris Johnson on his handling of the economy. He 0:18:33.440 --> 0:18:36.600 couldn't stay on board with Boris Johnson's boosts. He said 0:18:36.600 --> 0:18:38.920 in the letter. If it sounds too good to be true, 0:18:38.960 --> 0:18:41.440 it probably is. So it would be interesting to see 0:18:41.800 --> 0:18:44.600 of the people put the MPs who put themselves forward 0:18:44.680 --> 0:18:50.280 to replace Boris Johnson, what their economic offerings will be 0:18:50.280 --> 0:18:52.440 because we're in the middle of a cost of living 0:18:52.440 --> 0:18:55.440 crisis in the UK. Inflation set to hit double digits 0:18:55.440 --> 0:18:59.040 in the fall, so economics is going to be crucial 0:19:00.000 --> 0:19:02.120 on It's going to be very interesting to see who 0:19:02.160 --> 0:19:06.200 continues to jockey for position. Now what comes next after 0:19:06.320 --> 0:19:09.760 Boris Johnson. Lizzie Burden Bloomberg News corresponded with us this 0:19:09.840 --> 0:19:13.639 morning once again outside number ten Downing Street. Will be 0:19:13.640 --> 0:19:15.679 looking for more of your coverage throughout the day and 0:19:15.840 --> 0:19:19.480 for Boris Johnson's resignation speech. As Lizzie mentioned, that's expected 0:19:19.520 --> 0:19:22.880 around noon UK time, that's seven am Wall Street time. 0:19:22.880 --> 0:19:25.680 We will of course bring you live coverage right here 0:19:25.800 --> 0:19:29.399 on Bloomberg Radio. Looking ahead to the market open on 0:19:29.480 --> 0:19:33.119 Wall Street, futures are moving a touch higher. SMP futures 0:19:33.200 --> 0:19:35.119 right now, we're up twelve points down, futures up a 0:19:35.160 --> 0:19:38.320 hundred nine. NESTACS futures are higher by fifty three points. 0:19:38.400 --> 0:19:41.960 We are seeing some strong gains for European equities. The 0:19:42.080 --> 0:19:45.280 German decks up one and three quarters percent, the foot 0:19:45.320 --> 0:19:49.400 see in London up one point two percent. Tenure Treasury 0:19:49.440 --> 0:19:51.520 back here in the US down twelve thirty seconds. The 0:19:51.520 --> 0:19:56.280 deal two potent British pound strengthening this morning one point 0:19:56.320 --> 0:20:02.600 one four against the dollar. You're listening to Bloomberg day Break. 0:20:02.600 --> 0:20:10.000 Good morning, Bloomberg, eleven three oh weather mostly cloudy today, 0:20:10.040 --> 0:20:12.040 maybe a few afternoon showers will get up to near 0:20:12.080 --> 0:20:15.800 eighty degrees. More showers likely tomorrow, low eighties, mostly sunny 0:20:15.840 --> 0:20:19.400 for Saturday. Right now seventy two and cloudy in Central Park. 0:20:25.200 --> 0:20:29.720 Broadcasting live from the Bloomberg Interactive Broker Studio in New York, 0:20:29.840 --> 0:20:34.480 Bloomberg in Living Free to Washington, d C. Bloomberg to Boston, 0:20:34.600 --> 0:20:38.000 Bloomberg one O six one to San Francisco, Bloomberg, N'm 0:20:38.080 --> 0:20:41.120 sixty to the country, Sirius XM Gentle one nine ten, 0:20:41.280 --> 0:20:44.440 and around the globe to the Bloomberg Business and Bloomberg 0:20:44.520 --> 0:20:54.119 Radio dot Com. This is Bloomberg Daybreak. It's five thirty 0:20:54.119 --> 0:20:56.520 on Wall Street. Good morning. I'm Nathan Haggert and I'm 0:20:56.600 --> 0:20:59.399 Karen mons Gall we are just about four hours away 0:20:59.440 --> 0:21:01.399 from the open the US trading. Let's get you up 0:21:01.440 --> 0:21:02.800 to date on the news you need to know at 0:21:02.800 --> 0:21:05.400 this hour. Beginning with breaking news out of the UK, 0:21:05.640 --> 0:21:10.000 Boris Johnson will resign as Prime Minister following numerous scandals 0:21:10.200 --> 0:21:14.480 and intense pushback from his government. Bloomberg's Lizzie Burden has 0:21:14.520 --> 0:21:19.560 the latest from ten Downing Street resignations had mounds heads. 0:21:19.760 --> 0:21:22.160 More than almost a third of the government quit their 0:21:22.240 --> 0:21:26.679 jobs because of Johnson's integrity over the Chris Pincher affairs, humbling, 0:21:26.920 --> 0:21:29.399 the cost on living crisis, the party Gate scandal. It 0:21:29.480 --> 0:21:33.760 had all been building and government was paralyzed. So Johnson, 0:21:33.840 --> 0:21:36.800 it seems, can do it no longer. And Bloomberg's Lizzie 0:21:36.800 --> 0:21:39.960 Burden says Johnson plans to stay on as caretaker leader 0:21:40.040 --> 0:21:43.880 until October where awaiting a formal statement from Johnson. Will 0:21:43.880 --> 0:21:46.359 bring that to you live when it happens right here 0:21:46.600 --> 0:21:49.400 on Bloomberg Radio. There. Thanks for that, Karen. We'll back 0:21:49.400 --> 0:21:51.440 here in the US, the focus is on the economy 0:21:51.560 --> 0:21:55.359 as investors react to yesterday's FED minutes. Bloomberg's John Tucker 0:21:55.400 --> 0:21:57.720 joins the slide with that Good morning, John, Good morning Nathan. 0:21:57.760 --> 0:22:00.520 The minute show policy makers will probably de were another 0:22:00.560 --> 0:22:03.480 big interest rate hike later this month. Investors bet it 0:22:03.520 --> 0:22:07.440 will be seventy five basis points. Inflation was referenced ninety 0:22:07.520 --> 0:22:10.280 times in the meeting. Despite all the worry about an 0:22:10.320 --> 0:22:13.680 economic downturn, there were no mentions of recession. Meantime, the 0:22:13.800 --> 0:22:16.920 jobs report from the Labor Department tomorrow expected to show 0:22:16.920 --> 0:22:19.600 employers and the fewest jobs in over a year. In 0:22:19.680 --> 0:22:22.520 June Live in New York, I'm John Soccer Bloomberg Radio. 0:22:22.680 --> 0:22:24.639