1 00:00:02,360 --> 00:00:05,640 Speaker 1: Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 2 00:00:05,720 --> 00:00:09,520 Speaker 1: Day Bright for a Monday, August one. Coming up this shower, 3 00:00:09,800 --> 00:00:12,320 Speaker 1: Traders begin a new month with a slew of earnings 4 00:00:12,320 --> 00:00:15,000 Speaker 1: in focus. One Fed president said there's a long way 5 00:00:15,000 --> 00:00:18,080 Speaker 1: to go to hit two percent inflation. Concern in China 6 00:00:18,120 --> 00:00:21,400 Speaker 1: grows amid worse than expected economic data, and Senator Joe 7 00:00:21,440 --> 00:00:24,160 Speaker 1: Manchin makes his pitch in favor of the climate tax 8 00:00:24,239 --> 00:00:27,200 Speaker 1: film speeding cameras in New York City to gain operating 9 00:00:27,240 --> 00:00:30,880 Speaker 1: two seven starting today blast the death toll rises from 10 00:00:30,960 --> 00:00:34,160 Speaker 1: last week's flooding in Kentucky. I'm Michael barn a half, 11 00:00:34,320 --> 00:00:36,760 Speaker 1: I'm John Stashower and fourth sixth straight win for the Mets. 12 00:00:36,840 --> 00:00:39,680 Speaker 1: The Yankees lost to the ninth inning and widespread reaction 13 00:00:39,760 --> 00:00:44,440 Speaker 1: of the passing of the NBA legend Bill Russell. That's 14 00:00:44,479 --> 00:00:48,000 Speaker 1: all straight ahead on Bloomberg Day Break on Bloomberg eleven 15 00:00:48,120 --> 00:00:52,400 Speaker 1: three on New York, Bloomberg one, Washington, d C, Bloomberg 16 00:00:52,400 --> 00:00:56,800 Speaker 1: one six one, Boston, Bloomberg nine sixties, San Francisco, Syrius 17 00:00:56,920 --> 00:00:59,880 Speaker 1: x M one nineteen and around the world on Bloomberg 18 00:01:00,040 --> 00:01:07,800 Speaker 1: Video dot Com and via the Bloomberg Business app. Good morning. 19 00:01:07,840 --> 00:01:10,800 Speaker 1: I'm Nathan Hager and I'm Karen Moscow and US DOT 20 00:01:10,840 --> 00:01:13,600 Speaker 1: Index futures are lower this morning. We are coming up 21 00:01:13,600 --> 00:01:15,320 Speaker 1: de Figo one on Wall Street, and we checked the 22 00:01:15,360 --> 00:01:18,480 Speaker 1: markets every fifteen minutes throughout the trading day on Bloomberg 23 00:01:18,600 --> 00:01:21,959 Speaker 1: S and P futures down fifteen points down, futures down 24 00:01:21,959 --> 00:01:25,240 Speaker 1: seventy nine at ASDAG futures down fifty one. Ten year 25 00:01:25,319 --> 00:01:28,880 Speaker 1: treasury down five thirty seconds, yield two point six six percent, 26 00:01:29,200 --> 00:01:31,440 Speaker 1: and a yield on the two year two point nine 27 00:01:31,440 --> 00:01:34,559 Speaker 1: one percent. Nine X screwed oil is down two point 28 00:01:34,640 --> 00:01:37,360 Speaker 1: two percent, down two dollars seventeen cents at ninety six 29 00:01:38,440 --> 00:01:41,280 Speaker 1: cents of barrel, Nathan. Well, as you mentioned, Karen, futures 30 00:01:41,280 --> 00:01:43,319 Speaker 1: are on the decline this morning as we kick off 31 00:01:43,360 --> 00:01:46,959 Speaker 1: a new month, looking ahead to Friday's jobs report, and 32 00:01:47,000 --> 00:01:49,960 Speaker 1: the debate continues on the health of the US economy. 33 00:01:50,360 --> 00:01:54,200 Speaker 1: Regid Atlantic Capital Chief investment Officer Andy Kapern says the 34 00:01:54,320 --> 00:01:57,320 Speaker 1: environment is uncertain, but he is still sticking with value. 35 00:01:58,040 --> 00:02:00,080 Speaker 1: You should continue to stick with what is we're for 36 00:02:00,200 --> 00:02:02,600 Speaker 1: you so far this year, and that is precisely thinking 37 00:02:02,680 --> 00:02:05,440 Speaker 1: with value, which is heavy on energy, heavy on materials 38 00:02:05,440 --> 00:02:09,880 Speaker 1: and industrials. The underlying price of those commodities, they're fundamentally undersupplied. 39 00:02:10,000 --> 00:02:12,960 Speaker 1: Andy Kapin with Region Atlantic Capital says focusing on value 40 00:02:12,960 --> 00:02:16,680 Speaker 1: and quality can still generate returns in a volatile market. Hello. 41 00:02:16,680 --> 00:02:19,760 Speaker 1: Over the weekend, Nathan, we got more comments on FED policy. 42 00:02:19,800 --> 00:02:22,919 Speaker 1: Minneapolis Fed President Neil cash Cary said he's not worried 43 00:02:22,960 --> 00:02:25,639 Speaker 1: about whether the US is in a technical recession. He 44 00:02:25,720 --> 00:02:28,920 Speaker 1: said the central bank is focused squarely on inflation. We're 45 00:02:28,960 --> 00:02:31,600 Speaker 1: gonna do everything we can to try to avoid a recession, 46 00:02:31,880 --> 00:02:34,440 Speaker 1: but we are committed to bringing inflation down and we're 47 00:02:34,440 --> 00:02:36,160 Speaker 1: going to do what we need to do, and we 48 00:02:36,200 --> 00:02:38,920 Speaker 1: are a long way away from achieving an economy that 49 00:02:39,040 --> 00:02:41,080 Speaker 1: is back at two percent inflation, and that's where we 50 00:02:41,120 --> 00:02:43,600 Speaker 1: need to get to. Neil cash Cary said he does 51 00:02:43,600 --> 00:02:46,560 Speaker 1: not see evidence of a US wage price spiral. He 52 00:02:46,600 --> 00:02:49,320 Speaker 1: made the comments on CBSS Face the Nation heard some 53 00:02:49,440 --> 00:02:52,000 Speaker 1: days on Bloomberg Radio. Well, stocks are coming off a 54 00:02:52,040 --> 00:02:55,119 Speaker 1: banner month, Karen, but that trend may not continue. That's 55 00:02:55,120 --> 00:02:58,080 Speaker 1: according to two high profile analysts. Let's get more in 56 00:02:58,120 --> 00:03:00,600 Speaker 1: this live report from Bloomberg's John Tuck. Good morning, John, 57 00:03:00,680 --> 00:03:03,959 Speaker 1: Good morning, Nathan. Earnings results are holding up better than feared. 58 00:03:04,040 --> 00:03:06,880 Speaker 1: Of the fifty of the SMP five hundred companies that 59 00:03:06,880 --> 00:03:10,799 Speaker 1: have reported more than half of beaten estimates. Still, Goldman 60 00:03:10,880 --> 00:03:13,680 Speaker 1: Sacks strategist David Constance is the rate of earning speeds 61 00:03:13,760 --> 00:03:17,320 Speaker 1: is trailing the average pace set in the last five quarters, 62 00:03:17,600 --> 00:03:20,880 Speaker 1: and Morgan Stanley's Mike Wilson says the rebounded stocks likely 63 00:03:20,919 --> 00:03:23,840 Speaker 1: to be short lived as estimates are cut further and 64 00:03:23,880 --> 00:03:27,240 Speaker 1: the economy heads into contraction. And a note this morning, 65 00:03:27,240 --> 00:03:29,720 Speaker 1: Wilson also says the bomb market is assuming the Fed 66 00:03:29,760 --> 00:03:32,880 Speaker 1: will get inflation under control, which is good for fixed 67 00:03:32,919 --> 00:03:36,240 Speaker 1: income but not stocks. Live in New York. I'm John Tucker, 68 00:03:36,240 --> 00:03:38,800 Speaker 1: Bloomberg Daybreak. All right, John, thank you all. Another big 69 00:03:38,800 --> 00:03:41,760 Speaker 1: week on Wall Street with economic data and earning set 70 00:03:41,800 --> 00:03:43,960 Speaker 1: to be the main drivers again. And we get more 71 00:03:44,000 --> 00:03:47,480 Speaker 1: from Bloomberg's Charlie Pillett. While investors keep an eye on 72 00:03:47,560 --> 00:03:51,200 Speaker 1: the economic data, including a Job's report, they're also focused 73 00:03:51,200 --> 00:03:54,920 Speaker 1: on what corporations are saying about the second half. Solita 74 00:03:55,000 --> 00:03:58,640 Speaker 1: Marcelli is chief investment officer for the America's at UBS 75 00:03:58,720 --> 00:04:01,920 Speaker 1: Global Wealth Management. This earning season, we heard a lot 76 00:04:01,960 --> 00:04:04,840 Speaker 1: of talk of recession, but we haven't seen any indication. 77 00:04:05,040 --> 00:04:07,800 Speaker 1: And the results Lots of earnings this week across a 78 00:04:07,920 --> 00:04:11,120 Speaker 1: broad swath of industries. Amongst some of the names A 79 00:04:11,320 --> 00:04:16,920 Speaker 1: M D, Airbnb, Caterpillar, Lift, Uber, Marriott, Occidental, Petroleum, Starbucks, 80 00:04:16,960 --> 00:04:20,440 Speaker 1: and Young Brands in New York. Charlie Pellett bloom Bird 81 00:04:20,520 --> 00:04:23,839 Speaker 1: Day Break, Charlie, Thank you. US shale drillers are expected 82 00:04:23,880 --> 00:04:26,680 Speaker 1: to post record profits this week, and after a decade 83 00:04:26,680 --> 00:04:30,520 Speaker 1: of steep losses, looks like shale is finally blossoming. Bloomberg's 84 00:04:30,520 --> 00:04:32,800 Speaker 1: Grinita Young joins US Live with that Good morning, Grinina, 85 00:04:32,880 --> 00:04:36,080 Speaker 1: Good morning Nathan. Estimate is compiled by Bloomberg Show. The 86 00:04:36,120 --> 00:04:40,640 Speaker 1: top twenty eight publicly traded US independent oil producers generated 87 00:04:40,640 --> 00:04:43,840 Speaker 1: twenty five point five billion dollars in free cash flow 88 00:04:43,880 --> 00:04:46,200 Speaker 1: in the second quarter. That's about a quarter of what 89 00:04:46,320 --> 00:04:51,200 Speaker 1: they lost over the past decade. Fracking revolutionized global energy 90 00:04:51,200 --> 00:04:55,280 Speaker 1: markets by enabling American drillers to harvest shale resources that 91 00:04:55,360 --> 00:04:58,800 Speaker 1: had previously been untouchable. In just over ten years, the 92 00:04:58,920 --> 00:05:01,839 Speaker 1: US went from a de climbing crude producer to the 93 00:05:01,880 --> 00:05:06,320 Speaker 1: world's dominant oil and gas source. But at an astronomical cost. 94 00:05:06,640 --> 00:05:09,520 Speaker 1: The twenty eight companies lost about a hundred fifteen billion 95 00:05:09,600 --> 00:05:13,120 Speaker 1: dollars in the decade leading up to the COVID nineteen pandemic. 96 00:05:13,600 --> 00:05:16,279 Speaker 1: Live in New York. I'm really need a Young Bloomberg daybreak, 97 00:05:16,480 --> 00:05:18,880 Speaker 1: all right, we need a thank you about turning overseas now. 98 00:05:19,080 --> 00:05:22,920 Speaker 1: HSBC shares are up five point eight percent in London 99 00:05:23,000 --> 00:05:24,960 Speaker 1: after the bank turned at US strong earning sir for 100 00:05:25,080 --> 00:05:28,400 Speaker 1: it IP profit estimates, bound to restore quarterly dividends, and 101 00:05:28,480 --> 00:05:31,839 Speaker 1: fended off a call to split up. HSBC CFO You 102 00:05:31,960 --> 00:05:35,360 Speaker 1: and Stevenson spoke to Bloomberg from Hong Kong, rising rights 103 00:05:35,440 --> 00:05:38,840 Speaker 1: is certainly beneficial to us. Interesting come was up twenty 104 00:05:39,279 --> 00:05:41,560 Speaker 1: Q two on G two. Revenues were up twelve for 105 00:05:41,640 --> 00:05:44,360 Speaker 1: sant overall, we also kept cost flat, so we had 106 00:05:44,360 --> 00:05:47,320 Speaker 1: an enormous amount of operating leverage. We also had a 107 00:05:47,400 --> 00:05:49,919 Speaker 1: one off tax benefit too, so we're very pleased with 108 00:05:49,960 --> 00:05:53,920 Speaker 1: these results. Chief financial Officer You and Stevenson says HSBC 109 00:05:54,440 --> 00:05:57,600 Speaker 1: is paying close attention to its China real estate exposure. 110 00:05:57,800 --> 00:05:59,960 Speaker 1: Let's say the Europe now, Karen, where the economic folk 111 00:06:00,040 --> 00:06:02,080 Speaker 1: us this week is on the Bank of England Bloomberg 112 00:06:02,120 --> 00:06:05,720 Speaker 1: Daybreak europpost. Stephen Carroll joins us live from London with details. 113 00:06:05,720 --> 00:06:08,400 Speaker 1: Good morning, Stephen, Good morning Nathan and Karen. The Bank 114 00:06:08,400 --> 00:06:10,920 Speaker 1: of England was the first of the major central banks 115 00:06:10,920 --> 00:06:13,839 Speaker 1: to high crates after the pandemic, but now it's playing 116 00:06:13,960 --> 00:06:17,080 Speaker 1: catch up. Governor Andrew Bailey has promised to act forcefully 117 00:06:17,120 --> 00:06:19,560 Speaker 1: to tackle inflation that's running at a forty year high 118 00:06:19,600 --> 00:06:22,760 Speaker 1: in the UK. Markets now see a seventy chance of 119 00:06:22,760 --> 00:06:25,400 Speaker 1: a fifty basis point hike on Thursday. That would be 120 00:06:25,440 --> 00:06:28,720 Speaker 1: the largest by the Bank in twenty seven years. This 121 00:06:28,880 --> 00:06:32,240 Speaker 1: as it's warning that inflation cut it eleven percent this year. 122 00:06:32,560 --> 00:06:35,800 Speaker 1: Live in London, I'm Stephen Carroll, Bloomberg Daybreak, Right, Stephen, 123 00:06:35,839 --> 00:06:37,719 Speaker 1: Thank you all. Beck you're in the US. We're focused 124 00:06:37,720 --> 00:06:40,359 Speaker 1: on politics. After doing a one A D on supporting 125 00:06:40,400 --> 00:06:43,479 Speaker 1: a climate text bill last week, Senator Joe Manchin is 126 00:06:43,520 --> 00:06:47,159 Speaker 1: now out pitching the measure, Bloomberg said, Baxter has that story. 127 00:06:47,440 --> 00:06:50,400 Speaker 1: Senator Mansion says it all just makes sense. We've taken 128 00:06:50,440 --> 00:06:53,479 Speaker 1: three point five troyon of spending down to four million 129 00:06:53,520 --> 00:06:57,320 Speaker 1: of investing without raising any taxes whatsoever. And he says 130 00:06:57,360 --> 00:07:00,040 Speaker 1: he doesn't know now what all the dramas about, and 131 00:07:00,160 --> 00:07:01,680 Speaker 1: know if we could get a deal. I did not 132 00:07:01,760 --> 00:07:03,560 Speaker 1: know if we could come to an agreement, So why 133 00:07:03,560 --> 00:07:05,880 Speaker 1: would I put people through this all this drama? And 134 00:07:05,880 --> 00:07:08,880 Speaker 1: he's also making a public pitch to get Senator Kirsten's 135 00:07:08,880 --> 00:07:12,680 Speaker 1: cinema on board. The vote expected this week in San Francisco. 136 00:07:12,760 --> 00:07:15,600 Speaker 1: I'm at Baxter Bloomberg daybreak. All right, ed, thanks straight ahead, 137 00:07:15,600 --> 00:07:18,320 Speaker 1: your latest local headlines and the check of sports. This 138 00:07:18,680 --> 00:07:24,720 Speaker 1: is Bloomberg and it's not five oh seven on Wall Street, 139 00:07:24,800 --> 00:07:28,200 Speaker 1: sixty nine degrees in Central Park. Got slippery roads this morning, 140 00:07:28,400 --> 00:07:31,200 Speaker 1: already an accident on the Connecticut Turnpike southbound your eggs 141 00:07:31,200 --> 00:07:34,080 Speaker 1: at eighteen. We'll get to the details in traffic shortly, 142 00:07:34,080 --> 00:07:37,240 Speaker 1: but first Michael Barr with another reason why you might 143 00:07:37,240 --> 00:07:39,280 Speaker 1: want to take it easy on the roads this morning. 144 00:07:39,280 --> 00:07:43,120 Speaker 1: Good morning, Michael, Good morning, Nathan Smile. You're on traffic camera. 145 00:07:43,360 --> 00:07:47,120 Speaker 1: Starting today, about two thousand speed cameras begin running twenty 146 00:07:47,120 --> 00:07:49,880 Speaker 1: four hours a day every day across New York City. 147 00:07:50,120 --> 00:07:52,200 Speaker 1: If you crossed speeding by the camera, you'll get a 148 00:07:52,240 --> 00:07:55,400 Speaker 1: fifty dollar fine in the mail. However, experts say it 149 00:07:55,600 --> 00:07:59,640 Speaker 1: usually will not result with points on your license. Kentucky 150 00:07:59,680 --> 00:08:03,040 Speaker 1: Governor Andy Bisher says housing, water, and cell phone service 151 00:08:03,280 --> 00:08:06,480 Speaker 1: are among the priorities the state is focused on bringing 152 00:08:06,520 --> 00:08:09,679 Speaker 1: back to people who have lost everything in last week's 153 00:08:09,680 --> 00:08:14,640 Speaker 1: deadly flooding in eastern Kentucky. Are confirmed count of Kentuckians 154 00:08:14,680 --> 00:08:18,200 Speaker 1: we've lost is now reached twenty eight and we expect 155 00:08:18,240 --> 00:08:22,120 Speaker 1: that there will be more and that that number will grow. 156 00:08:22,360 --> 00:08:25,560 Speaker 1: Governor Bisher says about a hundred travel trailers are coming 157 00:08:25,600 --> 00:08:28,480 Speaker 1: in to help people displaced by the disaster in Perry, 158 00:08:28,760 --> 00:08:32,439 Speaker 1: Elector and Not counties. There are stepped up efforts to 159 00:08:32,520 --> 00:08:34,840 Speaker 1: slow the spread of the monkeypox virus in the US 160 00:08:34,920 --> 00:08:38,319 Speaker 1: to spite rise in case numbers and limited vaccine supplies. 161 00:08:38,720 --> 00:08:41,400 Speaker 1: The first known depths from the global outbreak have been 162 00:08:41,520 --> 00:08:44,880 Speaker 1: reported in Europe and Brazil over the weekend. There are 163 00:08:44,920 --> 00:08:48,480 Speaker 1: now more than five thousand confirmed cases of monkeypox across 164 00:08:48,520 --> 00:08:52,760 Speaker 1: the US. Officials say cases are concentrated among men who 165 00:08:52,880 --> 00:08:56,320 Speaker 1: have sex with other men, but because monkeypox is spread 166 00:08:56,320 --> 00:08:59,920 Speaker 1: by skin to skin contact, Dr Alock Patel says an 167 00:09:00,080 --> 00:09:02,600 Speaker 1: one could catch it individuals who are in an at 168 00:09:02,679 --> 00:09:05,679 Speaker 1: risk community. We'll have come in contact with others who 169 00:09:05,720 --> 00:09:08,280 Speaker 1: have symptoms of monkey pots are encouraged to go get 170 00:09:08,320 --> 00:09:11,760 Speaker 1: a vaccine, but right now we're seeing long lines in 171 00:09:11,880 --> 00:09:14,840 Speaker 1: order to get the vaccine. Dr Pertell spoke to ABC. 172 00:09:15,240 --> 00:09:17,880 Speaker 1: It comes as the New York City Health Department declared 173 00:09:17,960 --> 00:09:21,120 Speaker 1: monkey potts at public health emergency over the weekend. Earlier, 174 00:09:21,160 --> 00:09:24,320 Speaker 1: New York Governor Kathy hulk Will declared a disaster emergency 175 00:09:24,320 --> 00:09:27,679 Speaker 1: in the state. We've lost some greats. NBA fans are 176 00:09:27,720 --> 00:09:30,559 Speaker 1: remembering Celtics legend Bill Russell, who died at eighty eight. 177 00:09:30,559 --> 00:09:34,160 Speaker 1: More in sports shortly star track actress Michelle Nichols, who 178 00:09:34,200 --> 00:09:37,360 Speaker 1: broke ground for blacks playing Lieutenant O'Hara, has died at 179 00:09:37,400 --> 00:09:40,080 Speaker 1: age eighty nine. And Pat Carroll, the voice of Ursula 180 00:09:40,240 --> 00:09:43,640 Speaker 1: in the Disney classic The Little Mermaid, has died at 181 00:09:43,720 --> 00:09:47,480 Speaker 1: age nine. Global News twenty four hours a day on 182 00:09:47,600 --> 00:09:50,280 Speaker 1: air and on Bloomberg Quick Take, powered by more than 183 00:09:50,360 --> 00:09:52,880 Speaker 1: twenty seven hundred journalists and analysts more than a hundred 184 00:09:52,920 --> 00:09:56,160 Speaker 1: twenty countries. I'm Michael bar this is Bloomberg. Nathan Greats 185 00:09:56,200 --> 00:09:59,200 Speaker 1: just scratches the surface and all three of them. Thank you, Michael. 186 00:10:03,880 --> 00:10:05,800 Speaker 1: Coming up to five ten on Wall Street, time for 187 00:10:05,920 --> 00:10:08,840 Speaker 1: the Bloomberg Sports Uptake and Morning Johns. Alright, your morning, 188 00:10:08,920 --> 00:10:11,000 Speaker 1: Nathan and his regious heard of course NBA legend Bill 189 00:10:11,080 --> 00:10:13,080 Speaker 1: Russell dying yesterday at his home at the age of 190 00:10:13,080 --> 00:10:15,559 Speaker 1: eighty eight. And you can argue where Russell ranks among 191 00:10:15,600 --> 00:10:18,280 Speaker 1: the greatest players in NBA history. Certainly in the conversation 192 00:10:18,360 --> 00:10:21,559 Speaker 1: from a defensive standpoint, he may well have been the best. 193 00:10:21,600 --> 00:10:24,640 Speaker 1: As a rebounder, he averaged twenty three rebounds a game, 194 00:10:24,720 --> 00:10:27,640 Speaker 1: he once had fifty one. And what is not up 195 00:10:27,679 --> 00:10:30,360 Speaker 1: for debate is it was the greatest winner in league history. 196 00:10:30,400 --> 00:10:33,439 Speaker 1: Russell won eleven championships in thirteen years with the Celtics, 197 00:10:33,720 --> 00:10:35,920 Speaker 1: eight in a row. In the last two. He not 198 00:10:36,000 --> 00:10:37,800 Speaker 1: only played, he was the head coach. He played in 199 00:10:37,880 --> 00:10:41,280 Speaker 1: ten game seven's. He won all ten during his career 200 00:10:41,360 --> 00:10:45,400 Speaker 1: and after Russell, often a voice against racial and social injustice, 201 00:10:45,440 --> 00:10:48,240 Speaker 1: Billie Jane King called him a once in a generation 202 00:10:48,360 --> 00:10:52,160 Speaker 1: activist athlete. Barack Obama statement yesterday read as tall as 203 00:10:52,240 --> 00:10:56,120 Speaker 1: Russell stood, his legacy as a player in person rises higher. 204 00:10:56,559 --> 00:10:59,160 Speaker 1: At stadium, Yankees trailed the Royals for nothing, then led 205 00:10:59,240 --> 00:11:01,360 Speaker 1: six four after a d J le Mayhew two run 206 00:11:01,440 --> 00:11:04,200 Speaker 1: homer and Anthony Rizzo three runs Chavo with two outs 207 00:11:04,240 --> 00:11:06,640 Speaker 1: in the ninth, the three run homer by Kansas City 208 00:11:06,679 --> 00:11:10,080 Speaker 1: Salvador Pereza play Homes, who had not given up a 209 00:11:10,120 --> 00:11:12,000 Speaker 1: homer all year. The Royals beat the Yanks eight to 210 00:11:12,080 --> 00:11:15,280 Speaker 1: six in Miami season nine nineteen hits for the Mets, 211 00:11:15,360 --> 00:11:18,120 Speaker 1: three each for Jeff McNeil, Marc Canne, Francince Gilden Door 212 00:11:18,520 --> 00:11:20,960 Speaker 1: a nine to three route. So after a two game 213 00:11:21,000 --> 00:11:23,800 Speaker 1: swee for the Yankees, a three game swee with the Marlins, 214 00:11:23,960 --> 00:11:26,360 Speaker 1: Mets manager was Buck show Walter, how hard it is 215 00:11:26,400 --> 00:11:28,720 Speaker 1: to win three games in a row on the road 216 00:11:28,760 --> 00:11:32,120 Speaker 1: and Slaine Ballpark in the Major League. That's suppressive. Our 217 00:11:32,160 --> 00:11:34,800 Speaker 1: guys came out without talk with intensity. You need to 218 00:11:35,320 --> 00:11:39,199 Speaker 1: facing a Lopez, Uh, you know it's you know, he 219 00:11:39,280 --> 00:11:41,320 Speaker 1: faces some good pitching here. I'm speaking a good pitching 220 00:11:41,400 --> 00:11:44,240 Speaker 1: metser in Washington, Max schers Or tonight against his old team, 221 00:11:44,240 --> 00:11:47,640 Speaker 1: and then tomorrow the season's debut of Jacob deGrom, John 222 00:11:47,640 --> 00:11:51,400 Speaker 1: Stashower Bloomberg Sports, Nathan Alright, John thanks SMP futures down 223 00:11:51,440 --> 00:11:54,800 Speaker 1: thirteen points, Staff features down sixty four, Nastack Futures down 224 00:11:55,040 --> 00:11:57,640 Speaker 1: forty four points, ahead of the start of a new 225 00:11:57,679 --> 00:12:00,640 Speaker 1: trading month, we bring in Dennis Carr, been the former 226 00:12:00,640 --> 00:12:07,640 Speaker 1: publisher of the Gartment letter. Next, this is Bloomberg Bloomberg 227 00:12:07,679 --> 00:12:10,559 Speaker 1: eleven three oh weather mostly cloudy today with highs and 228 00:12:10,640 --> 00:12:13,160 Speaker 1: your eighty degrees will bring back the chance of showers 229 00:12:13,160 --> 00:12:15,960 Speaker 1: and storms tomorrow with a high near ninety, sunny and 230 00:12:16,040 --> 00:12:18,920 Speaker 1: hot ninety for Wednesday. Right now sixty nine in Central 231 00:12:18,960 --> 00:12:25,079 Speaker 1: Park Markets, headlines and breaking news twenty four hours a 232 00:12:25,160 --> 00:12:28,200 Speaker 1: day at Bloomberg dot com. The Bloomberg Business at and 233 00:12:28,360 --> 00:12:37,800 Speaker 1: at Bloomberg Quick Tape is a Bloomberg Business lash and 234 00:12:37,840 --> 00:12:41,480 Speaker 1: I'm Karen Moscow and Europeans stocks are taking higher as 235 00:12:41,520 --> 00:12:45,240 Speaker 1: corporate earnings continue to deliver upside surprises. Will investor's assess 236 00:12:45,320 --> 00:12:47,880 Speaker 1: or marks from central bankers at higher interest rates you're 237 00:12:47,920 --> 00:12:52,040 Speaker 1: needed to bring inflation under control. Futures are lower. Last week. 238 00:12:52,160 --> 00:12:54,240 Speaker 1: What's the best for the US stock market in more 239 00:12:54,240 --> 00:12:56,560 Speaker 1: than two years. It is the first trading day of 240 00:12:56,559 --> 00:12:59,240 Speaker 1: the month. Last month, the S and P five gained 241 00:12:59,440 --> 00:13:03,120 Speaker 1: about nine point two percent, growth stocks beating value stocks. 242 00:13:03,120 --> 00:13:05,480 Speaker 1: There We check the markets every fifteen minutes throughout the 243 00:13:05,480 --> 00:13:07,880 Speaker 1: trading day on Bloomberg Right now S and P futures 244 00:13:07,920 --> 00:13:10,360 Speaker 1: down about twelve points and down futures down fifty six. 245 00:13:10,640 --> 00:13:13,480 Speaker 1: NASDACK futures down thirty nine. The decks in Germany is 246 00:13:13,520 --> 00:13:15,839 Speaker 1: at a third of a percent. Ten year treasury down 247 00:13:15,880 --> 00:13:18,280 Speaker 1: five thirday seconds, yield two point six six percent. The 248 00:13:18,360 --> 00:13:21,280 Speaker 1: yield on the two year two point nine percent. Nim 249 00:13:21,320 --> 00:13:24,959 Speaker 1: excrude oil is down two percent, down two dollars one 250 00:13:25,000 --> 00:13:27,640 Speaker 1: cent and ninety six dollars sixty one cents a barrel. 251 00:13:27,720 --> 00:13:32,199 Speaker 1: Comics called middle Change is eighty announce the Euro one 252 00:13:32,200 --> 00:13:34,800 Speaker 1: point two five four against the dollar, British pound one 253 00:13:34,800 --> 00:13:37,560 Speaker 1: point two to three eight and the end one thirty 254 00:13:37,600 --> 00:13:41,040 Speaker 1: two point three nine. And looking at bitcoin, it's down 255 00:13:41,120 --> 00:13:44,800 Speaker 1: two percent. It's at twenty three thousand, three hundred twenty dollars. 256 00:13:44,920 --> 00:13:48,320 Speaker 1: That's a bloomberg business flash. Now here's Michael Varr with 257 00:13:48,400 --> 00:13:50,839 Speaker 1: Moore on what's going on around the world. Uncael, good morning, 258 00:13:50,880 --> 00:13:53,960 Speaker 1: good morning here in the first ship carrying Ukrainian grain 259 00:13:54,040 --> 00:13:57,160 Speaker 1: has said all from the port of Odessa. The park 260 00:13:57,280 --> 00:14:00,760 Speaker 1: departure of the ship laden with corn follows an internationally 261 00:14:00,800 --> 00:14:04,040 Speaker 1: broker deal to ease of growing hunger crisis, and Rick 262 00:14:04,040 --> 00:14:07,640 Speaker 1: Stenson took home four million dollars from winning the controversial 263 00:14:07,800 --> 00:14:12,280 Speaker 1: Live Golf's Bedminster Invitational. The Saudi Arabian funded league has 264 00:14:12,360 --> 00:14:17,040 Speaker 1: drawn criticism. Tickets at former President Trump's Bedminster course we're 265 00:14:17,080 --> 00:14:19,760 Speaker 1: being sold for as little as a dollar among like crowds. 266 00:14:20,160 --> 00:14:22,880 Speaker 1: In baseball, the Yankees lost to the Royals eight six. 267 00:14:23,120 --> 00:14:25,800 Speaker 1: The Mats won their sixth right beating the Marlins. The 268 00:14:25,800 --> 00:14:29,080 Speaker 1: Red Sox down the Brewers, the Cardinals shut out the Nationals. 269 00:14:29,520 --> 00:14:32,280 Speaker 1: The Reds beat the Orioles, the White Sox beat the A's, 270 00:14:32,360 --> 00:14:35,360 Speaker 1: the Giants down the Cubs. Bill Russell, who was the 271 00:14:35,360 --> 00:14:39,040 Speaker 1: cornerstone of the Boston Celtics basketball dynasty in the fifties 272 00:14:39,040 --> 00:14:42,280 Speaker 1: and sixties, has died. He was eight global news twenty 273 00:14:42,280 --> 00:14:45,120 Speaker 1: four hours a day on air and on Bloomberg Quick Take, 274 00:14:45,360 --> 00:14:48,440 Speaker 1: powered by more than seven hundred journalists and analysts more 275 00:14:48,440 --> 00:14:52,800 Speaker 1: than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Michael, 276 00:14:52,840 --> 00:14:54,960 Speaker 1: thank you. It's almost five twenty on Wall Street Life 277 00:14:54,960 --> 00:14:58,160 Speaker 1: from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, 278 00:14:58,200 --> 00:15:00,360 Speaker 1: and as we kick off this new trading month, we 279 00:15:00,440 --> 00:15:03,080 Speaker 1: are very pleased to be joined this morning by Dennis Gartman, 280 00:15:03,400 --> 00:15:06,360 Speaker 1: chairman of the University of Akron Endowment Investment Committee, of 281 00:15:06,400 --> 00:15:09,080 Speaker 1: course former publisher of the Gartment Letter. Always great to 282 00:15:09,080 --> 00:15:11,200 Speaker 1: speak with you, Dennis, And as we heard from Karen 283 00:15:11,200 --> 00:15:14,280 Speaker 1: Moscow just a moment ago, we are coming off the 284 00:15:14,320 --> 00:15:16,560 Speaker 1: best month for U S stocks in about a year 285 00:15:16,560 --> 00:15:19,080 Speaker 1: and a half. Here where do you see the momentum 286 00:15:19,280 --> 00:15:23,760 Speaker 1: for risk assets as we head into August? Well, May 287 00:15:23,840 --> 00:15:26,280 Speaker 1: than I've embarrassed since the January five this year, and 288 00:15:26,320 --> 00:15:29,160 Speaker 1: as the chairman of the University of Ackman's Endowment, I 289 00:15:29,200 --> 00:15:31,920 Speaker 1: got the endowment to move about twelve of our portfolio 290 00:15:32,000 --> 00:15:36,560 Speaker 1: out of stocks and thus far than fortunately correct. But 291 00:15:36,640 --> 00:15:38,840 Speaker 1: I have to admit something that seems to be changing 292 00:15:38,880 --> 00:15:42,120 Speaker 1: psychologically in the market. I had been paying attention to 293 00:15:42,160 --> 00:15:44,200 Speaker 1: the fact of the late last year and through most 294 00:15:44,200 --> 00:15:46,520 Speaker 1: of this year that the rallies have occurred on the 295 00:15:46,920 --> 00:15:49,560 Speaker 1: on declining volume and the breaks had come in on 296 00:15:50,040 --> 00:15:53,520 Speaker 1: increasing volume. And as a technician, first of all, technicals 297 00:15:53,520 --> 00:15:56,440 Speaker 1: always tend to leave the fundamentals in stock markets. They 298 00:15:56,480 --> 00:15:58,960 Speaker 1: tend to leave the psychology in the stock market. And 299 00:15:59,000 --> 00:16:01,360 Speaker 1: the fact that Marcus would going down on big volume 300 00:16:01,400 --> 00:16:04,520 Speaker 1: and rising on lesser volume was bearish, but in the 301 00:16:04,520 --> 00:16:06,160 Speaker 1: course of the past month and a half or so, 302 00:16:06,600 --> 00:16:09,600 Speaker 1: we've actually begun to see that shift. So I've changed 303 00:16:09,640 --> 00:16:13,160 Speaker 1: my my perspective from being overtly barished being at least 304 00:16:13,160 --> 00:16:15,840 Speaker 1: neutral in the stock market. I must admit I was 305 00:16:15,920 --> 00:16:18,080 Speaker 1: rather surprised by a nine percent gain in in in 306 00:16:18,160 --> 00:16:20,720 Speaker 1: growth stocks last month, and I was a little surprised 307 00:16:20,720 --> 00:16:25,640 Speaker 1: to see growth stocks advanced demonstrably stronger than the value stocks. 308 00:16:26,160 --> 00:16:28,880 Speaker 1: So I have to admit that I'm I'm changing my 309 00:16:28,880 --> 00:16:32,000 Speaker 1: my my terminology and my investment philosophy from being overly 310 00:16:32,040 --> 00:16:34,720 Speaker 1: barished to being at least neutral. We're a little over 311 00:16:34,760 --> 00:16:36,880 Speaker 1: bought in the short term. We may have a little 312 00:16:36,880 --> 00:16:38,480 Speaker 1: bit of a correction, but today is the first day 313 00:16:38,480 --> 00:16:40,360 Speaker 1: of the month, and we're probably gonna see the stock 314 00:16:40,400 --> 00:16:43,080 Speaker 1: market trade higher today just because the first and second 315 00:16:43,160 --> 00:16:45,720 Speaker 1: days of the month always see inflows of capital into 316 00:16:45,720 --> 00:16:49,920 Speaker 1: retirement accounts. So we're in go ahead. What are the 317 00:16:49,960 --> 00:16:52,600 Speaker 1: technicals you're looking at that it made you change your view, Dennis. 318 00:16:53,240 --> 00:16:55,720 Speaker 1: The fact that we're going up now, at least in 319 00:16:55,760 --> 00:16:57,480 Speaker 1: the past month and a month or so, we're going 320 00:16:57,600 --> 00:16:59,920 Speaker 1: up on better volume and going down on lesser all 321 00:17:00,080 --> 00:17:03,080 Speaker 1: which is a change in attitude and changing in philosophy, 322 00:17:03,080 --> 00:17:05,840 Speaker 1: a change in style and changing demeanor. So that's the 323 00:17:05,880 --> 00:17:08,399 Speaker 1: first thing I watch volume more than anything else. In 324 00:17:08,520 --> 00:17:10,320 Speaker 1: the volume seems to be coming in on the upside. 325 00:17:10,720 --> 00:17:14,199 Speaker 1: That's a good sign in terms of FED policy. Do 326 00:17:14,240 --> 00:17:16,320 Speaker 1: you think that momentum can continue if we have if 327 00:17:16,320 --> 00:17:19,440 Speaker 1: we see a tighter FED. We did hear from a 328 00:17:19,560 --> 00:17:23,240 Speaker 1: number of FED policymakers saying that they've got a long 329 00:17:23,280 --> 00:17:25,520 Speaker 1: ways to go before they can reach that two percent 330 00:17:25,520 --> 00:17:28,520 Speaker 1: inflation target, and I could potentially mean yet more rate hikes. 331 00:17:29,200 --> 00:17:31,120 Speaker 1: There's no question there'll be more rate hikes, at least 332 00:17:31,119 --> 00:17:33,639 Speaker 1: seventy five basis points in September and maybe fifty basis 333 00:17:33,640 --> 00:17:36,320 Speaker 1: points in the November meeting. No question they have to 334 00:17:36,400 --> 00:17:37,919 Speaker 1: they have to follow through and what they said they 335 00:17:37,920 --> 00:17:41,480 Speaker 1: were going to do in order to regain credibility, which 336 00:17:41,520 --> 00:17:44,560 Speaker 1: they've lost with the idea of transitory inflation that was 337 00:17:44,600 --> 00:17:46,800 Speaker 1: incumbent in their in their commentaries for the course of 338 00:17:46,800 --> 00:17:49,280 Speaker 1: the past year or so. So there's no question rates 339 00:17:49,280 --> 00:17:51,679 Speaker 1: are gonna go higher. But Marcuston Marcus have gone up 340 00:17:51,680 --> 00:17:54,640 Speaker 1: on higher rates in the past, and and the races 341 00:17:54,680 --> 00:17:58,080 Speaker 1: have tended to be a lagging indicator. So the fact 342 00:17:58,119 --> 00:18:00,080 Speaker 1: that the FED is going to continue to tie and 343 00:18:00,600 --> 00:18:03,840 Speaker 1: take nine billion dollars per month out of its basic 344 00:18:03,960 --> 00:18:07,119 Speaker 1: out of its assets it's balance sheet tells you that 345 00:18:07,160 --> 00:18:10,240 Speaker 1: the fuel that had supplied the stock market is being 346 00:18:10,240 --> 00:18:13,680 Speaker 1: taken away. But that's already understood and has been well 347 00:18:13,760 --> 00:18:15,639 Speaker 1: stated by the Fed. So rates are gonna go higher, 348 00:18:15,640 --> 00:18:19,439 Speaker 1: no question. It's just amoutter of time. Seventy five basis 349 00:18:19,440 --> 00:18:22,920 Speaker 1: points in September and another fifty basis points in November. 350 00:18:23,160 --> 00:18:26,000 Speaker 1: We'll see what happens after that. What's your outlook on earnings? 351 00:18:26,000 --> 00:18:29,560 Speaker 1: In our last minute here? Can companies continue to power 352 00:18:29,640 --> 00:18:33,760 Speaker 1: through the headwinds that that have been out there? The 353 00:18:33,800 --> 00:18:36,480 Speaker 1: manufacturing industries can? Banks will have a hard time to 354 00:18:36,560 --> 00:18:38,600 Speaker 1: inverted eel curve, And the eel curve is now inverted 355 00:18:38,640 --> 00:18:40,520 Speaker 1: and probably going to get more inverted before the end 356 00:18:40,520 --> 00:18:42,720 Speaker 1: of the year. Bank arning has made the under pressure, 357 00:18:42,760 --> 00:18:45,320 Speaker 1: but manufacturing earnings going to probably continue to do quite well, 358 00:18:45,359 --> 00:18:49,560 Speaker 1: to be quite honest. Dennis Gartman, former publisher of the 359 00:18:49,560 --> 00:18:52,000 Speaker 1: Gartment Letter, now the chairman of the University of Akron 360 00:18:52,119 --> 00:18:55,600 Speaker 1: Endowment Investment Committee, with us this morning as we get 361 00:18:55,680 --> 00:18:58,520 Speaker 1: ready to kick off this new trading month of August, 362 00:18:58,520 --> 00:19:03,200 Speaker 1: shifting his perspective going neutral on stocks now, Dennis, as always, 363 00:19:03,240 --> 00:19:05,399 Speaker 1: thanks for your time, really appreciate it. Looking ahead to 364 00:19:05,440 --> 00:19:07,879 Speaker 1: the market open this morning, we have futures moving a 365 00:19:07,960 --> 00:19:11,680 Speaker 1: touch lower. SMP futures right now down eleven points down, 366 00:19:11,720 --> 00:19:15,359 Speaker 1: futures down fifty two. NASDAC futures are lower by thirty 367 00:19:15,400 --> 00:19:18,600 Speaker 1: six points. Germany's decks the CAC in Paris both higher 368 00:19:18,720 --> 00:19:21,400 Speaker 1: by three tents of one percent. Ten Your treasury right 369 00:19:21,400 --> 00:19:24,200 Speaker 1: now down five thirty seconds. The yield two point six 370 00:19:24,240 --> 00:19:26,399 Speaker 1: six percent on the tenure note and the yield on 371 00:19:26,440 --> 00:19:29,760 Speaker 1: the two year right now UH two point nine one percent. 372 00:19:30,280 --> 00:19:32,760 Speaker 1: Nimex screwed moving lower by one point nine percent, down 373 00:19:32,760 --> 00:19:35,680 Speaker 1: to dollar ninety six dollars seventy one cents a barrel. 374 00:19:35,720 --> 00:19:40,680 Speaker 1: Comix Gold little changed up ten cents at nine announce UH. 375 00:19:40,720 --> 00:19:42,920 Speaker 1: The euro right now one point zero two five five 376 00:19:42,960 --> 00:19:45,600 Speaker 1: against the dollar, British pound one point two to three nine, 377 00:19:45,680 --> 00:19:48,520 Speaker 1: the yen is at one thirty two point three three, 378 00:19:48,560 --> 00:19:51,560 Speaker 1: and Bitcoin down one point nine percent on the session 379 00:19:51,560 --> 00:19:55,320 Speaker 1: at twenty three thousand, three hundred dollars just to head. 380 00:19:55,359 --> 00:19:57,840 Speaker 1: More on recession risk in this market and is boom 381 00:19:57,880 --> 00:20:00,800 Speaker 1: time back in the shail patch. That's your top stories 382 00:20:00,800 --> 00:20:07,840 Speaker 1: of the morning. Just ahead on Bloomberg Daybreak, Bloomberg eleven 383 00:20:07,920 --> 00:20:10,400 Speaker 1: three oh weather morning showers and turning mostly cloudy today 384 00:20:10,400 --> 00:20:12,520 Speaker 1: with the high your eighty degrees will be near ninety 385 00:20:12,640 --> 00:20:16,080 Speaker 1: tomorrow with the chance for an afternoon shower, thundershower, sunny 386 00:20:16,080 --> 00:20:18,800 Speaker 1: and hot Wednesday high near ninety right now sixty nine 387 00:20:18,840 --> 00:20:26,000 Speaker 1: in Central Park. Broadcasting live from the Bloomberg Interactive Broker's 388 00:20:26,000 --> 00:20:29,440 Speaker 1: studio in New York, Bloomberg E living free to Washington, 389 00:20:29,480 --> 00:20:32,920 Speaker 1: d C, Bloomberg nine one to Boston, Bloomberg one O 390 00:20:33,160 --> 00:20:36,640 Speaker 1: six one to San Francisco, Bloomberg nine sixty to the country, 391 00:20:36,720 --> 00:20:39,359 Speaker 1: Sirius XM to the one nine team, and around the 392 00:20:39,359 --> 00:20:43,199 Speaker 1: globe the Bloomberg Business app in Bloomberg Radio dot Com. 393 00:20:43,240 --> 00:20:52,359 Speaker 1: This is Bloomberg Daybreak. It's five thirty on Wall Street. 394 00:20:52,359 --> 00:20:55,159 Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow. We 395 00:20:55,200 --> 00:20:57,560 Speaker 1: are just about four hours away from the open of 396 00:20:57,680 --> 00:20:59,439 Speaker 1: US trading. Let's get you up to date on the 397 00:20:59,440 --> 00:21:01,920 Speaker 1: news you need to know at this hour. US futures 398 00:21:01,960 --> 00:21:04,639 Speaker 1: are lower this morning as we kick off a new month. 399 00:21:04,920 --> 00:21:08,320 Speaker 1: Looking ahead to Friday's jobs report, to Bay continues on 400 00:21:08,359 --> 00:21:11,920 Speaker 1: the health of the US economy. Region Atlantic Capital chief 401 00:21:11,960 --> 00:21:15,240 Speaker 1: investment officer Andy Kappern says there are still returns to 402 00:21:15,280 --> 00:21:18,280 Speaker 1: be had, focusing on companies that are good at generating 403 00:21:18,280 --> 00:21:21,119 Speaker 1: free cash flow and have the financial discipline to be 404 00:21:21,200 --> 00:21:23,520 Speaker 1: able to deliver on it. But seven of the market 405 00:21:23,520 --> 00:21:26,280 Speaker 1: that stands up the best here is dived impairs, and 406 00:21:26,280 --> 00:21:29,640 Speaker 1: Andy Kappern with Region Atlantic Capital says he's not only 407 00:21:29,720 --> 00:21:33,560 Speaker 1: sticking with quality stocks, but also value well. Over the weekend, Karen, 408 00:21:33,600 --> 00:21:36,760 Speaker 1: we got more comments on FED policy. Minneapolis President Neil 409 00:21:36,800 --> 00:21:39,200 Speaker 1: cash Car. He said he's not worried about whether the 410 00:21:39,320 --> 00:21:42,280 Speaker 1: US is in a technical recession, but we are committed 411 00:21:42,320 --> 00:21:44,399 Speaker 1: to bringing inflation down and we're going to do what 412 00:21:44,440 --> 00:21:46,440 Speaker 1: we need to do, and we are a long way 413 00:21:46,480 --> 00:21:49,080 Speaker 1: away from achieving an economy that is back at two 414 00:21:49,080 --> 00:21:51,399 Speaker 1: percent inflation. Neil cash Car he was a guest on 415 00:21:51,440 --> 00:21:55,400 Speaker 1: CBSS Face the Nation heard Sundays on Bloomberg Radio. Meantime, 416 00:21:55,520 --> 00:21:59,320 Speaker 1: Nathan to Notable equity strategists say recession fears make camp 417 00:21:59,400 --> 00:22:02,119 Speaker 1: further gay since stocks more in this live report from 418 00:22:02,119 --> 00:22:05,119 Speaker 1: Bloomberg's John Tucker John Kareny. In a note to clients 419 00:22:05,119 --> 00:22:08,120 Speaker 1: this morning, Morgan Stanley's Mike Wilson warrens the US economy 420 00:22:08,160 --> 00:22:11,159 Speaker 1: could be headed for a recession. He says risk reward 421 00:22:11,359 --> 00:22:14,760 Speaker 1: is poor after the recent rally. As strategists at Goldman 422 00:22:14,800 --> 00:22:17,520 Speaker 1: Sachs said, the rate of earnings beats is trailing the 423 00:22:17,640 --> 00:22:21,320 Speaker 1: stent average pace that was set in the last five quarters. 424 00:22:21,600 --> 00:22:24,240 Speaker 1: They suggest that stocks are not out of the woods yet, 425 00:22:24,320 --> 00:22:28,040 Speaker 1: inter posting their strongest months since November of twenty twenty. 426 00:22:28,400 --> 00:22:31,840 Speaker 1: Live in New York, I'm John Tucker, Bloomberg Daybreak. All right, John, Thanks, 427 00:22:31,880 --> 00:22:34,400 Speaker 1: turning to big oil. Now, after a decade of steep blosses, 428 00:22:34,400 --> 00:22:37,520 Speaker 1: it looks like shale is blossoming again, Bloomberg. Johneda Young 429 00:22:37,600 --> 00:22:40,159 Speaker 1: joins US Live with that Good morning, Good morning Nathan. 430 00:22:40,280 --> 00:22:43,280 Speaker 1: Several shale companies are set to report earnings this week. 431 00:22:43,720 --> 00:22:47,080 Speaker 1: Estimates compiled by Bloomberg show the top twenty eight publicly 432 00:22:47,119 --> 00:22:51,400 Speaker 1: traded US independent oil producers generated twenty five point five 433 00:22:51,480 --> 00:22:54,200 Speaker 1: billion dollars in free cash flow in the second quarter. 434 00:22:54,640 --> 00:22:57,560 Speaker 1: Compare that to the last ten to fifteen years, when 435 00:22:57,560 --> 00:23:01,439 Speaker 1: the companies lost about a hundred fifteen billion dollars leading 436 00:23:01,560 --> 00:23:04,840 Speaker 1: up to the COVID nineteen pandemic. Live in New York. 437 00:23:04,880 --> 00:23:07,280 Speaker 1: I'm renned a young Bloomberg day break all right, rened 438 00:23:07,320 --> 00:23:10,680 Speaker 1: to thank you, and a brief earnings note. HSBC shares 439 00:23:10,760 --> 00:23:13,440 Speaker 1: are at five points seven per cent in London. If 440 00:23:13,480 --> 00:23:17,440 Speaker 1: the bank turned in a strong earnings report. HSBC beat 441 00:23:17,480 --> 00:23:21,040 Speaker 1: profit estimates, bound to restore quarterly dividends and fended off 442 00:23:21,080 --> 00:23:23,960 Speaker 1: a call to split up. And futures are lower this morning. 443 00:23:24,040 --> 00:23:27,480 Speaker 1: SMP futures down ten points, now futures down forty two. 444 00:23:27,600 --> 00:23:30,680 Speaker 1: NAS day futures down thirty five. Straight ahead your latest 445 00:23:30,720 --> 00:23:34,719 Speaker 1: local headlines, plus a check of sports, and this is Bloomberg. 446 00:23:38,240 --> 00:23:41,800 Speaker 1: Thanks on Wall Street, got some rain and sixty nine 447 00:23:41,840 --> 00:23:44,200 Speaker 1: degrees in Central Park. We're still dealing with that crash 448 00:23:44,240 --> 00:23:47,440 Speaker 1: southbound Connecticut Turnpike near Eggs at eighteen. Michael Barr is 449 00:23:47,480 --> 00:23:49,080 Speaker 1: here with more on what's going on in New York 450 00:23:49,119 --> 00:23:51,560 Speaker 1: and around the world. Michael, thank you very much. Nathan 451 00:23:51,640 --> 00:23:54,640 Speaker 1: drivers slow your role in New York City. About two 452 00:23:54,680 --> 00:23:58,440 Speaker 1: thousand speed cameras now operating twenty four hours a day, 453 00:23:58,480 --> 00:24:01,040 Speaker 1: seven days a week across the city, and he want 454 00:24:01,040 --> 00:24:03,280 Speaker 1: to run up speeding by the camera can expect a 455 00:24:03,280 --> 00:24:06,280 Speaker 1: fifty dollar ticket in the mail. Until now, the cameras 456 00:24:06,320 --> 00:24:09,479 Speaker 1: were only running between six am and ten pm. However, 457 00:24:09,760 --> 00:24:13,000 Speaker 1: experts say more than half of traffic depths happen overnight. 458 00:24:13,440 --> 00:24:16,640 Speaker 1: Rescue crews continued to dig through piles of debris from 459 00:24:16,680 --> 00:24:20,360 Speaker 1: deadly flooding last week in Kentucky. At least twenty eight 460 00:24:20,359 --> 00:24:23,400 Speaker 1: people are dead. Kentucky Governor Andy but Sheer warns they 461 00:24:23,400 --> 00:24:26,360 Speaker 1: expect to find more bodies and the weeks ahead. Every day, 462 00:24:26,400 --> 00:24:29,160 Speaker 1: every week, every month, and every year it takes to rebuild. 463 00:24:29,640 --> 00:24:33,359 Speaker 1: We are committed to the people of eastern Kentucky. Governor 464 00:24:33,400 --> 00:24:36,800 Speaker 1: Basher says search dogs are being used. No public events 465 00:24:36,880 --> 00:24:40,480 Speaker 1: on President Biden's schedule today. He remains in isolation following 466 00:24:40,480 --> 00:24:43,840 Speaker 1: his rebound with COVID nineteen after treatment with an anti 467 00:24:43,960 --> 00:24:47,920 Speaker 1: viral drug. Medical experts say pax Lovit is still preventing 468 00:24:48,040 --> 00:24:52,040 Speaker 1: severe disease and deaths even when there's a rebound case. 469 00:24:52,520 --> 00:24:55,480 Speaker 1: In Washington today, a judge can hand down the longest 470 00:24:55,520 --> 00:24:59,480 Speaker 1: prison term so far. In the January sixth Capital riot case, 471 00:25:00,040 --> 00:25:02,879 Speaker 1: secutors said Guy Refit of Texas carried a gun on 472 00:25:02,920 --> 00:25:06,200 Speaker 1: his waist while confronting police had the Capitol. His own 473 00:25:06,240 --> 00:25:10,439 Speaker 1: son testified against him. Prosecutors are seeking fifteen years in prison. 474 00:25:10,960 --> 00:25:15,120 Speaker 1: The very lucky winner of Friday's Mega Millions drawing as 475 00:25:15,200 --> 00:25:19,280 Speaker 1: yet to claim the one point thirty four billion dollar prize, 476 00:25:19,680 --> 00:25:23,040 Speaker 1: the third largest jackpot in US history. The winning tickets 477 00:25:23,040 --> 00:25:26,160 Speaker 1: sold at a Speedway gas station in Illinois, near Chicago. 478 00:25:26,600 --> 00:25:30,639 Speaker 1: Once the winner does come forward, financial expert Carter Cofield 479 00:25:30,640 --> 00:25:33,920 Speaker 1: recommends saving some of the cash for tax payments. One 480 00:25:33,960 --> 00:25:38,320 Speaker 1: average of people that win the lattery are broke within 481 00:25:38,400 --> 00:25:42,120 Speaker 1: the threes of five years. Seventy of people are broke 482 00:25:42,160 --> 00:25:44,480 Speaker 1: with the three day five years, and of those people 483 00:25:44,920 --> 00:25:47,400 Speaker 1: say if their life is actually worse at the one 484 00:25:47,440 --> 00:25:51,520 Speaker 1: in the lottery, Reach financial expert Carter Coalfield. Global News 485 00:25:51,520 --> 00:25:54,560 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 486 00:25:54,600 --> 00:25:57,680 Speaker 1: powered by more than twenty seven hundred journalists and analysts 487 00:25:57,720 --> 00:25:59,880 Speaker 1: in more than a hundred twenty countries. I'm Michael Barre. 488 00:26:00,200 --> 00:26:08,600 Speaker 1: This is Bloomberg. Thanks Michael. Five on Wall Street Time 489 00:26:08,640 --> 00:26:11,480 Speaker 1: for the Bloomberg Sports Update with John stesh Alright, Nathan 490 00:26:11,520 --> 00:26:14,960 Speaker 1: Bill Russell of course, NBA Legend, Boston's sports icon. He 491 00:26:15,040 --> 00:26:17,080 Speaker 1: passed away yesterday at the age of eighty eight. Russell 492 00:26:17,160 --> 00:26:20,400 Speaker 1: arrived in Boston in nineteen fifty six immediately began leading 493 00:26:20,400 --> 00:26:24,000 Speaker 1: the Celtics to NBA championships. By the time he was finished, 494 00:26:24,040 --> 00:26:27,440 Speaker 1: he had more championship rings than fingers to wear them 495 00:26:27,480 --> 00:26:29,320 Speaker 1: on eleven and all. This came after two n C 496 00:26:29,400 --> 00:26:31,840 Speaker 1: Double A Championships the University of San Francisco, or he 497 00:26:31,880 --> 00:26:34,720 Speaker 1: once won fifty five games in a row, also to 498 00:26:34,960 --> 00:26:37,920 Speaker 1: California high school state titles and Olympic gold medal. In 499 00:26:38,080 --> 00:26:41,800 Speaker 1: arguably the greatest winner in team sports history was NBA 500 00:26:41,840 --> 00:26:44,720 Speaker 1: Commissioner Adam Silver said yesterday, Russell stood for something more 501 00:26:44,760 --> 00:26:49,200 Speaker 1: than sports. There's a tireless activist against racial and social injustice. 502 00:26:49,280 --> 00:26:51,359 Speaker 1: At the stadium, Yankees trailed the Royals for nothing, then 503 00:26:51,440 --> 00:26:53,480 Speaker 1: led six four d j Lemeo a two run homer, 504 00:26:53,480 --> 00:26:56,000 Speaker 1: Anthony Rizzo three run shot at twenty fifth. Kansas City 505 00:26:56,440 --> 00:26:58,600 Speaker 1: got a run in the eighth ning of Rob Marinaccio, 506 00:26:58,680 --> 00:27:01,560 Speaker 1: who had been unhittable against and then we're one out 507 00:27:01,600 --> 00:27:05,119 Speaker 1: in the ninth. A swing at a drive to center 508 00:27:05,200 --> 00:27:08,600 Speaker 1: field and that ball is gonna be carrying, and it 509 00:27:08,840 --> 00:27:13,280 Speaker 1: is out of here. Home run Salvador Perez. He puts 510 00:27:13,320 --> 00:27:16,200 Speaker 1: the Royals in the lead in the top of the ninth. 511 00:27:17,320 --> 00:27:19,960 Speaker 1: How about that a c SP of the call three 512 00:27:20,000 --> 00:27:22,119 Speaker 1: run shout the homer the first that Clay Holmes had 513 00:27:22,160 --> 00:27:25,360 Speaker 1: allowed case one eighth and sixty. Yanks had been six 514 00:27:25,440 --> 00:27:28,240 Speaker 1: and oh against the Royals. They host Seattle Tonight Metro 515 00:27:28,320 --> 00:27:31,400 Speaker 1: in Washington. It's Max Jerzy Tonight, Jacob to Graham Tomorrow. 516 00:27:31,720 --> 00:27:33,199 Speaker 1: That's have won six in a row. They beat the 517 00:27:33,200 --> 00:27:35,639 Speaker 1: Marlins nine to three with a nineteen hit attack. They 518 00:27:35,640 --> 00:27:38,200 Speaker 1: remained three games ahead of Atlanta on the PGA Tour. 519 00:27:38,280 --> 00:27:41,520 Speaker 1: Second straight win for Tony finale in Detroit under far 520 00:27:41,680 --> 00:27:45,400 Speaker 1: In New Jersey the Live Tour winner Hendrick Stinson, John 521 00:27:45,400 --> 00:27:49,080 Speaker 1: Stashward Bloomberg Sports Nathan Okay. John thanks five thirty seven 522 00:27:49,080 --> 00:27:51,520 Speaker 1: on Wall Street Time for the Tri State Business Report. 523 00:27:51,560 --> 00:27:54,960 Speaker 1: Here's Bloomberg's d cory the nation's highest RAN's art in 524 00:27:55,040 --> 00:27:58,080 Speaker 1: New York. According to a report from rent dot Com. 525 00:27:58,520 --> 00:28:01,760 Speaker 1: It says Jersey City actually has the highest rant of 526 00:28:01,800 --> 00:28:05,720 Speaker 1: the US for the average monthly rant, skyrocketing from thirty 527 00:28:05,760 --> 00:28:09,440 Speaker 1: three hundred bucks in one to an eye watering fifty 528 00:28:09,520 --> 00:28:13,560 Speaker 1: five hundred dollars in two cell phone services coming to 529 00:28:13,640 --> 00:28:18,080 Speaker 1: New York's subway tunnels. The project comes at no public cost, 530 00:28:18,200 --> 00:28:21,000 Speaker 1: but will take ten years to finish. The six hundred 531 00:28:21,040 --> 00:28:23,439 Speaker 1: million dollar project will be paid for and built by 532 00:28:23,520 --> 00:28:27,480 Speaker 1: Transit Wireless, which already provides access to cell phone and 533 00:28:27,560 --> 00:28:30,680 Speaker 1: WiFi service and all of the city's two hundred eighty 534 00:28:30,720 --> 00:28:35,159 Speaker 1: one underground subway stations. GE Appliances has opened to micro 535 00:28:35,400 --> 00:28:39,120 Speaker 1: factory in Connecticut. The manufacturing plant will anchor a facility 536 00:28:39,200 --> 00:28:43,200 Speaker 1: known as co Create Stamford, which company officials also see 537 00:28:43,200 --> 00:28:47,040 Speaker 1: as a hub for collaboration with colleges and universities. That's 538 00:28:47,040 --> 00:28:50,480 Speaker 1: your Bloomberg Trying State business Report. I'm in Corey, Thanks 539 00:28:50,560 --> 00:28:53,160 Speaker 1: at eight on Wall Street. Bloomberg Radio is on the 540 00:28:53,160 --> 00:28:56,040 Speaker 1: air from San Francisco to New York, London to Hong Kong. 541 00:28:56,120 --> 00:28:58,000 Speaker 1: Let's check in with our global news team for some 542 00:28:58,040 --> 00:28:59,760 Speaker 1: of the top stories heard on our three hundred of 543 00:28:59,800 --> 00:29:05,800 Speaker 1: the at radio stations around the world. I'm Steve Podas, 544 00:29:05,880 --> 00:29:08,040 Speaker 1: got on ten ten Wins in New York. We're talking 545 00:29:08,080 --> 00:29:12,520 Speaker 1: about Heineken saying rising prices haven't hurt beer sales yet. 546 00:29:12,720 --> 00:29:16,480 Speaker 1: Tom Corny, donahoan ktr H in Houston, firm shelve over 547 00:29:16,520 --> 00:29:19,880 Speaker 1: two hundred fifty billion dollars in financing plans this year. 548 00:29:20,040 --> 00:29:23,400 Speaker 1: I'm John Donnegret telling KMOX listeners in St. Louis about 549 00:29:23,400 --> 00:29:25,800 Speaker 1: a double dose of good news for bowling. I'm Stephen 550 00:29:25,840 --> 00:29:28,440 Speaker 1: Carroll on Bloomberg d a B Digical Radio in London. 551 00:29:28,480 --> 00:29:31,040 Speaker 1: We've been reporting on England's victory and the Women's Euros 552 00:29:31,080 --> 00:29:33,480 Speaker 1: football and what it means for the future of the sports. 553 00:29:33,600 --> 00:29:36,280 Speaker 1: I'm at Gory on w p A M in Cleveland. 554 00:29:36,400 --> 00:29:39,640 Speaker 1: I'm reporting a real estate broker has purchased the landmark 555 00:29:39,760 --> 00:29:43,640 Speaker 1: Nowcazar apartments of Cleveland Pikes. And those are some of 556 00:29:43,640 --> 00:29:46,400 Speaker 1: the stories our twenty seven hundred Bloomberg journalists and analysts 557 00:29:46,400 --> 00:29:48,520 Speaker 1: are working on this morning around the world. It's five 558 00:29:48,560 --> 00:29:51,760 Speaker 1: thirty nine on Wall Street. The following is an editorial 559 00:29:51,880 --> 00:29:56,040 Speaker 1: from Bloomberg Opinion. This editorial was written by the Bloomberg 560 00:29:56,240 --> 00:30:02,160 Speaker 1: Editorial Board. Russian President Vladimir Putin is weaponizing energy exports 561 00:30:02,200 --> 00:30:06,840 Speaker 1: to undermine Europe's support for Ukraine. But while the European 562 00:30:06,960 --> 00:30:11,680 Speaker 1: Union faces the prospect of a long winter without Russian gas, 563 00:30:11,720 --> 00:30:16,800 Speaker 1: its emergency proposals are nowhere near adequate for a start, 564 00:30:17,040 --> 00:30:20,040 Speaker 1: the EU should call a heads of State summit to 565 00:30:20,160 --> 00:30:24,560 Speaker 1: negotiate a new near term strategy. Governments will need to 566 00:30:24,560 --> 00:30:28,440 Speaker 1: help vulnerable households make it through the winter, think creatively 567 00:30:28,480 --> 00:30:32,360 Speaker 1: about how best to manage demand and effectively communicate the 568 00:30:32,400 --> 00:30:37,040 Speaker 1: stakes to the public. Importantly, the EU must also intensify 569 00:30:37,120 --> 00:30:41,440 Speaker 1: its efforts to permanently free itself of Russian energy. Its 570 00:30:41,480 --> 00:30:45,320 Speaker 1: twenty thirty goal is too far away. In all likelihood, 571 00:30:45,320 --> 00:30:50,320 Speaker 1: the coming winter will severely test European resolve. Only adequate 572 00:30:50,360 --> 00:30:55,040 Speaker 1: preparation can forestall the worst. This editorial was written by 573 00:30:55,080 --> 00:30:58,760 Speaker 1: the Bloomberg Editorial Board. For more Bloomberg opinion, please go 574 00:30:58,840 --> 00:31:02,720 Speaker 1: to Bloomberg dot com, Splash Opinion or ope I N 575 00:31:02,840 --> 00:31:06,959 Speaker 1: go on the Bloomberg terminal. This has been Bloomberg Opinion man. 576 00:31:06,960 --> 00:31:09,840 Speaker 1: Bloomberg Opinion editorials can be heard every weekday at this 577 00:31:09,960 --> 00:31:12,400 Speaker 1: time terminal customers can read more an O, P I 578 00:31:12,520 --> 00:31:14,680 Speaker 1: N go, and we'll bring in Bloomberg's William Wilkes and 579 00:31:14,720 --> 00:31:17,640 Speaker 1: the Bloomberg Big Take story this morning on Germany scrambling 580 00:31:17,640 --> 00:31:20,160 Speaker 1: to deal with that gas shut off. This is Bloomberg 581 00:31:22,360 --> 00:31:24,560 Speaker 1: Bloomberg eleven three oh weather morning showers to give away 582 00:31:24,560 --> 00:31:26,120 Speaker 1: to most of the clotty skies and a high near 583 00:31:26,200 --> 00:31:28,959 Speaker 1: eighty today. We'll be back near ninety tomorrow, though with 584 00:31:29,040 --> 00:31:31,920 Speaker 1: another chance crafted in showers and hutter showers, sunny and 585 00:31:31,960 --> 00:31:37,680 Speaker 1: hot for Wednesday. Right now sixty nine in Central Park Markets, 586 00:31:37,800 --> 00:31:40,840 Speaker 1: headlines and breaking news twenty four hours a day at 587 00:31:40,880 --> 00:31:44,280 Speaker 1: Bloomberg dot Com, The Bloomberg Business at and at Bloomberg 588 00:31:44,360 --> 00:31:53,800 Speaker 1: Quick Take. He's a Bloomberg Business flash put on Karen. 589 00:31:53,880 --> 00:31:58,200 Speaker 1: Moscow and European stocks are are taking higher this morning. 590 00:31:58,280 --> 00:32:01,800 Speaker 1: US stock index futures are lower. They're coming off the 591 00:32:01,800 --> 00:32:04,000 Speaker 1: best week for the US stock market in more than 592 00:32:04,040 --> 00:32:06,520 Speaker 1: two years, and we check the markets every fifteen minutes 593 00:32:06,520 --> 00:32:09,760 Speaker 1: throughout the trading day on Bloomberg SMP Future is down 594 00:32:09,760 --> 00:32:12,400 Speaker 1: about nine points right now. Down Future is down twenty eight. 595 00:32:12,680 --> 00:32:15,240 Speaker 1: Nasdack futures down twenty eight as well. The decks in 596 00:32:15,240 --> 00:32:18,080 Speaker 1: Germany's out the third of upper set ten year treasury 597 00:32:18,080 --> 00:32:20,640 Speaker 1: down three thirty seconds, held two point six six percent. 598 00:32:20,720 --> 00:32:23,200 Speaker 1: The yield on the two year two point nine zero percent. 599 00:32:23,720 --> 00:32:26,320 Speaker 1: Nine X screwed oil is down one point seven percent 600 00:32:26,360 --> 00:32:28,640 Speaker 1: out of dollars seventy at ninety six dollars ninety one 601 00:32:28,680 --> 00:32:31,320 Speaker 1: cents of barrel comic schooled up three ten percent or 602 00:32:31,320 --> 00:32:34,360 Speaker 1: five dollars forty cents at seventeen eighty seven ten an ounce, 603 00:32:34,760 --> 00:32:37,240 Speaker 1: the Euro one point two six six against the dollar, 604 00:32:37,280 --> 00:32:39,840 Speaker 1: British found one point two two five four, the yen 605 00:32:39,920 --> 00:32:43,440 Speaker 1: at one thirty one point nine four, and bitcoin is 606 00:32:43,560 --> 00:32:46,719 Speaker 1: down one point nine percent at twenty three thousand, three 607 00:32:46,800 --> 00:32:49,960 Speaker 1: hundred fifty dollars because of Bloomberg Business Flash. Now here's 608 00:32:50,000 --> 00:32:52,520 Speaker 1: Michael Barr with more on what's going on around the world. 609 00:32:52,640 --> 00:32:55,360 Speaker 1: Unfael Darren, thank you very much. How Speaker Nancy Pelosi 610 00:32:55,520 --> 00:32:59,560 Speaker 1: is in Singapore kicking off for Asian tour ask questions 611 00:32:59,560 --> 00:33:02,440 Speaker 1: swirled over a possible stop in Taiwan at his fuel 612 00:33:02,520 --> 00:33:06,760 Speaker 1: tension with Beijing. A Foreign Ministry spokesperson said Pelosi will 613 00:33:06,760 --> 00:33:11,040 Speaker 1: call on Singapore's President and Prime Minister. Bill Russell, who 614 00:33:11,080 --> 00:33:14,560 Speaker 1: was the cornerstone of the Boston Celtics basketball dynasty in 615 00:33:14,600 --> 00:33:17,360 Speaker 1: the nineteen fifties and sixties, has died. He was eight 616 00:33:17,760 --> 00:33:21,000 Speaker 1: and Vic Stenson won the controversial Saudi Back Lived Golf's 617 00:33:21,120 --> 00:33:25,920 Speaker 1: Bedminster Invitational at former President Trump's golf course. In baseball, 618 00:33:25,960 --> 00:33:28,600 Speaker 1: the Yankees lost to the Royals eight six. The Mets 619 00:33:28,680 --> 00:33:32,120 Speaker 1: won their sixth raight, beating the Marlins nine three. The 620 00:33:32,160 --> 00:33:34,640 Speaker 1: Red Sox down the Brewers, the Cardinals shut out the 621 00:33:34,720 --> 00:33:37,760 Speaker 1: Nationals five zip. The Red Sox beat the Orioles, the 622 00:33:37,760 --> 00:33:42,120 Speaker 1: White Sox beat the A's, and the Giants down the Cups. 623 00:33:42,560 --> 00:33:45,120 Speaker 1: Global News twenty four hours a day on air and 624 00:33:45,240 --> 00:33:48,400 Speaker 1: on Bloomberg Quickday, powered by more than twenty seven hundred 625 00:33:48,440 --> 00:33:50,960 Speaker 1: journalists and analysts more than a hundred twenty countries. I'm 626 00:33:51,000 --> 00:33:55,040 Speaker 1: Michael Barr. This is Bloomberg. This is the Big Take, 627 00:33:55,200 --> 00:33:59,000 Speaker 1: the best of Bloomberg's in depth, original reporting from around 628 00:33:59,000 --> 00:34:02,600 Speaker 1: the globe. Really fast moving story that's caused a lot 629 00:34:02,680 --> 00:34:06,240 Speaker 1: of outrage among investors. This is so fascinating. The market 630 00:34:06,320 --> 00:34:08,799 Speaker 1: shutdown in a way it's never done before. That's gonna 631 00:34:08,840 --> 00:34:12,279 Speaker 1: have consequences for years to come. The Big Take on 632 00:34:12,400 --> 00:34:16,600 Speaker 1: Bloomberg Radio. It is five forty nine on Wall Street 633 00:34:16,640 --> 00:34:20,240 Speaker 1: Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak, 634 00:34:20,239 --> 00:34:22,520 Speaker 1: and our big take this morning is on the scramble 635 00:34:22,600 --> 00:34:25,360 Speaker 1: underway in Europe to avert a heating crisis as the 636 00:34:25,400 --> 00:34:28,120 Speaker 1: war in Ukraine grinds on and it may hit hardest 637 00:34:28,120 --> 00:34:31,680 Speaker 1: of all in Europe's economic engine Germany. For more, we're 638 00:34:31,719 --> 00:34:36,120 Speaker 1: joined by Bloomberg Global Business reporter William Wilkes. William, good morning, 639 00:34:36,239 --> 00:34:39,560 Speaker 1: And I guess this is because Germany has more exposure 640 00:34:39,719 --> 00:34:44,120 Speaker 1: to the natural gas that Russia has already begun cutting 641 00:34:44,120 --> 00:34:47,799 Speaker 1: off to Europe. Is that right, Good morning, Nathan, Yeah, 642 00:34:47,800 --> 00:34:50,840 Speaker 1: that that's that's kind of mainly the reason it's Germany 643 00:34:50,920 --> 00:34:55,160 Speaker 1: isn't the most exposed country, but Jimny does have a 644 00:34:55,200 --> 00:34:59,600 Speaker 1: lot of kind of gas intensive material industries like chemicals 645 00:34:59,680 --> 00:35:04,280 Speaker 1: still ill aluminium, copper and similar and that's why Germany 646 00:35:04,320 --> 00:35:08,480 Speaker 1: is particularly exposed. So what is being done at this 647 00:35:08,600 --> 00:35:13,080 Speaker 1: point to try to alleviate the crisis that is likely 648 00:35:13,280 --> 00:35:17,800 Speaker 1: coming now that the flows have already begun to slow 649 00:35:19,200 --> 00:35:23,240 Speaker 1: and so actually the first sign of defenses cutting energy 650 00:35:23,360 --> 00:35:26,399 Speaker 1: usage wherever they can, which is what are big take, 651 00:35:26,480 --> 00:35:31,000 Speaker 1: contains lots of details about kind of municipal governments cutting 652 00:35:31,000 --> 00:35:34,560 Speaker 1: back on things like swimming pools and lighting buildings at 653 00:35:34,640 --> 00:35:37,200 Speaker 1: night and kind of turning the firmer start and the 654 00:35:37,320 --> 00:35:40,960 Speaker 1: heat done on those buildings. Companies are also doing a 655 00:35:41,000 --> 00:35:44,120 Speaker 1: similar thing that you know, trying to wherever they can 656 00:35:44,280 --> 00:35:49,279 Speaker 1: cut gas, like superfluous gas out of production. And in 657 00:35:49,280 --> 00:35:51,640 Speaker 1: addition to that, there's a lot of crisis planning going 658 00:35:51,640 --> 00:35:53,400 Speaker 1: on at the moment, Like a lot of companies are 659 00:35:53,440 --> 00:35:57,640 Speaker 1: looking at exactly what what they can do without. And 660 00:35:57,960 --> 00:36:01,360 Speaker 1: it's kind of trying to model, particularly like gas shocks, 661 00:36:01,400 --> 00:36:05,280 Speaker 1: like saying, you know, if gas, if we get zero 662 00:36:05,320 --> 00:36:07,319 Speaker 1: gas in a particular cal day, would that mean for 663 00:36:07,520 --> 00:36:09,880 Speaker 1: our production? What do we have to shut down? You know, 664 00:36:09,920 --> 00:36:12,000 Speaker 1: what kind of stockpiling of finished products do we have 665 00:36:12,080 --> 00:36:16,360 Speaker 1: to do to to kind of offset that. Yeah, for 666 00:36:16,400 --> 00:36:18,680 Speaker 1: people with long memories here in the US, it might 667 00:36:18,880 --> 00:36:22,360 Speaker 1: bring back recollections of what happened in the nineties seventies 668 00:36:22,440 --> 00:36:26,400 Speaker 1: during the Arab oil embargo when Americans were asked to 669 00:36:26,400 --> 00:36:29,759 Speaker 1: cut on their energy use as well lead the long 670 00:36:29,880 --> 00:36:33,080 Speaker 1: gas lines, that sort of thing. And that raises the 671 00:36:33,200 --> 00:36:38,440 Speaker 1: question of a potential political component here for Germans as 672 00:36:38,480 --> 00:36:43,200 Speaker 1: they deal with what could be coming. Uh, this could 673 00:36:43,320 --> 00:36:48,840 Speaker 1: put some pressure on Chancellor Schultz's government, couldn't it. Indeed, 674 00:36:49,239 --> 00:36:53,799 Speaker 1: that's gonna be really interesting to see what happens that. Um. Yeah, 675 00:36:53,840 --> 00:36:56,200 Speaker 1: Germans going to see the energy bills go up. Some 676 00:36:56,280 --> 00:37:00,080 Speaker 1: of them might see, um, their companies swinking or cute 677 00:37:00,239 --> 00:37:04,040 Speaker 1: jobs and the political implications of that, I think, I 678 00:37:04,080 --> 00:37:10,120 Speaker 1: think what will be really fascinating to see. Um, whether 679 00:37:10,200 --> 00:37:11,960 Speaker 1: it will bring Germans out on the street, we'll have 680 00:37:12,000 --> 00:37:14,319 Speaker 1: to see, or whether or fuel support are kind of 681 00:37:14,400 --> 00:37:17,200 Speaker 1: some of the more extreme and less than right right 682 00:37:17,280 --> 00:37:21,800 Speaker 1: parties and destabilize the coalition of kind of mainly centrist 683 00:37:21,880 --> 00:37:26,239 Speaker 1: parties in the government. Um. Yeah, we're not sure what's 684 00:37:26,239 --> 00:37:29,719 Speaker 1: going to happen with that. And and it's also possible 685 00:37:29,760 --> 00:37:32,319 Speaker 1: the Germans, you know, are very it's a very orderly 686 00:37:32,440 --> 00:37:35,400 Speaker 1: society where people don't typically take the tape to the 687 00:37:35,440 --> 00:37:38,400 Speaker 1: streets to riot. Um, it could be the you know, 688 00:37:38,680 --> 00:37:41,160 Speaker 1: people back to the government measures and realize that this 689 00:37:41,239 --> 00:37:43,880 Speaker 1: is you know, an external driver distance Russians doing it 690 00:37:43,920 --> 00:37:47,040 Speaker 1: to us. But we'll have to see, well what alternatives 691 00:37:47,080 --> 00:37:49,920 Speaker 1: in our last minute here Williams, does Germany have to 692 00:37:50,120 --> 00:37:53,400 Speaker 1: Russian gas? Is there any way that they can backfill 693 00:37:53,600 --> 00:37:56,799 Speaker 1: the cut off from nord Stream one and they can 694 00:37:56,840 --> 00:38:02,239 Speaker 1: get gaffs from kind of other European UH sources. There's 695 00:38:02,440 --> 00:38:08,560 Speaker 1: like Norwegian pipeline gases and gas pipelines in the Netherlands. Netherlands. Unfortunately, 696 00:38:08,640 --> 00:38:12,600 Speaker 1: Germany doesn't have a working at ellen g Terminal, So 697 00:38:13,000 --> 00:38:16,680 Speaker 1: the it's planning to have them as soon as possible, 698 00:38:16,719 --> 00:38:18,479 Speaker 1: but they're not going to really help in this early 699 00:38:18,520 --> 00:38:23,080 Speaker 1: winter period um, so it's less kind of Germans looking 700 00:38:23,120 --> 00:38:27,400 Speaker 1: at alternative fuels for certain things, one being bringing back 701 00:38:27,760 --> 00:38:31,439 Speaker 1: multiples cold plants to generate electricity that will help save 702 00:38:31,480 --> 00:38:36,440 Speaker 1: on gas. The other potential alternative is whether it Germany 703 00:38:36,520 --> 00:38:39,439 Speaker 1: lets some of its nuclear plants, which were all going 704 00:38:39,440 --> 00:38:41,440 Speaker 1: to close by the end of this year, which is 705 00:38:41,480 --> 00:38:45,120 Speaker 1: a reaction to the Fukushima disaster. Chancellor and former Chancellor 706 00:38:45,200 --> 00:38:49,080 Speaker 1: Meracle want you know, ordered the closure of those nuclear 707 00:38:49,080 --> 00:38:53,160 Speaker 1: plants and could they let those run until That would 708 00:38:53,160 --> 00:38:58,280 Speaker 1: be controversial here, but it would free up some gas 709 00:38:58,280 --> 00:39:01,839 Speaker 1: for use elsewhere. Thanks for this, William, really appreciate your 710 00:39:01,880 --> 00:39:03,600 Speaker 1: giving us more on this Big Take story and I 711 00:39:03,640 --> 00:39:05,480 Speaker 1: Big Take go on the Bloomberg terminal to get more. 712 00:39:05,520 --> 00:39:09,520 Speaker 1: That's Bloomberg Global Business reporter William Wilkes, Karen, Sorry, Nathan, 713 00:39:09,520 --> 00:39:12,120 Speaker 1: thank you at It's five fifty four on Wall Street 714 00:39:12,120 --> 00:39:15,360 Speaker 1: and it's time now for the daily of Bloomberg Law Brief, 715 00:39:15,440 --> 00:39:18,600 Speaker 1: exploring legal issues in the news, and today we're looking 716 00:39:18,640 --> 00:39:22,760 Speaker 1: at a milestone for a key legal issue in response 717 00:39:22,840 --> 00:39:26,960 Speaker 1: to several corporate and accounting scandals. Congress past the Sarbanes 718 00:39:27,000 --> 00:39:30,680 Speaker 1: Oxley Act in two thousand two. If by purtising congressional support, 719 00:39:30,960 --> 00:39:35,480 Speaker 1: Sarbanes Oxley is celebrating its platinum anniversary, but how effective 720 00:39:35,480 --> 00:39:38,239 Speaker 1: has it been for more Bloomberg's doing. Grosso speaks to 721 00:39:38,320 --> 00:39:41,640 Speaker 1: securities law expert James Park, A professor at u c 722 00:39:41,840 --> 00:39:44,440 Speaker 1: l A Law School, tell us about the reasons for 723 00:39:44,600 --> 00:39:47,360 Speaker 1: the law. Why it was passed. The law was the 724 00:39:47,480 --> 00:39:54,360 Speaker 1: culmination of years of security spraud cases that the sec 725 00:39:55,080 --> 00:39:58,720 Speaker 1: basically pursued. Basically towards the end of the ninety nineties, 726 00:39:58,800 --> 00:40:03,240 Speaker 1: there was significant ussure on public companies to deliver quarterly 727 00:40:03,320 --> 00:40:07,880 Speaker 1: results to meet analysts projections of their revenue and earnings, 728 00:40:07,920 --> 00:40:10,600 Speaker 1: and many of them were cheating. They were cheating by 729 00:40:10,760 --> 00:40:14,160 Speaker 1: violating accounting rules so that they could report revenue that 730 00:40:14,280 --> 00:40:17,040 Speaker 1: was a little bit higher profits that were a little 731 00:40:17,040 --> 00:40:21,880 Speaker 1: bit higher. And this structural pressure to maintain your evaluation, 732 00:40:21,960 --> 00:40:25,120 Speaker 1: in my view, was the main reason for the law, 733 00:40:25,160 --> 00:40:27,600 Speaker 1: the best justifications for the law. And then this is 734 00:40:27,600 --> 00:40:30,600 Speaker 1: the time when security fraud was national news. It was 735 00:40:30,680 --> 00:40:34,840 Speaker 1: really one of the major national concerns you have the 736 00:40:34,880 --> 00:40:38,480 Speaker 1: December two thousand and one bankruptcy filing of Enron, and 737 00:40:38,520 --> 00:40:42,800 Speaker 1: then the next month Global crossing files for bankruptcy that spring. 738 00:40:42,840 --> 00:40:46,760 Speaker 1: In April two thousand and two, Elliott Sitser bring major 739 00:40:46,800 --> 00:40:52,279 Speaker 1: case against Merrill Lynch for issuing false research recommendations with 740 00:40:52,400 --> 00:40:55,120 Speaker 1: respect to stocks that it was promoting as part of 741 00:40:55,120 --> 00:40:59,360 Speaker 1: its investment banking business. June two thousand and two, Adelphia 742 00:40:59,480 --> 00:41:03,160 Speaker 1: f file for bankruptcy. And then what really prompted the 743 00:41:03,200 --> 00:41:06,680 Speaker 1: passage of the law is July two thousand into Worlds 744 00:41:06,760 --> 00:41:09,720 Speaker 1: files for bankruptcy. So you have a string of major 745 00:41:09,840 --> 00:41:14,040 Speaker 1: public company bankruptcy, so that really pushes Congress to act, 746 00:41:14,520 --> 00:41:18,520 Speaker 1: and the law was passed virtually with unanimous approval. Do 747 00:41:18,560 --> 00:41:21,279 Speaker 1: you think it's worked? Has it been successful? I think 748 00:41:21,320 --> 00:41:24,720 Speaker 1: it has been successful. It is a tough law, though 749 00:41:24,800 --> 00:41:29,040 Speaker 1: to gauge with expect to how well it is working. UM, 750 00:41:29,080 --> 00:41:33,800 Speaker 1: it's very hard to really measure exactly what the impact 751 00:41:33,880 --> 00:41:36,839 Speaker 1: of the law has been. But we do have anecdotal 752 00:41:36,880 --> 00:41:43,840 Speaker 1: evidence where public company managers report that they are more careful, 753 00:41:44,360 --> 00:41:50,120 Speaker 1: more systematic about investing in internal controls to prevent securities frauds. 754 00:41:50,200 --> 00:41:53,879 Speaker 1: So we have that sort of qualitative evidence that would 755 00:41:53,880 --> 00:41:57,400 Speaker 1: support the idea that the law is working. We also 756 00:41:57,480 --> 00:42:02,280 Speaker 1: have evidence from accounting WE stayatement. WE statements are basically 757 00:42:02,360 --> 00:42:06,640 Speaker 1: when a company acknowledges that there's a material misrepresentation in 758 00:42:06,680 --> 00:42:11,880 Speaker 1: its financial statements, and we see accounting WE statements of 759 00:42:12,320 --> 00:42:17,560 Speaker 1: sec filing company steadily declining. I'm over the last fifteen, 760 00:42:17,600 --> 00:42:21,640 Speaker 1: twenty year and that may indicate that internal controls are 761 00:42:21,760 --> 00:42:25,480 Speaker 1: catching some of these mistakes. Earlyear and at James Parker, 762 00:42:25,520 --> 00:42:27,719 Speaker 1: professor at u c l A Law School, speaking at 763 00:42:27,719 --> 00:42:30,439 Speaker 1: the Bloomberg John Grasso. Catch more of that interview, plus 764 00:42:30,480 --> 00:42:33,040 Speaker 1: analysis of the latest legal news by subscribing to the 765 00:42:33,080 --> 00:42:36,560 Speaker 1: Bloomberg Law Podcast. Are downloading the show at Bloomberg dot com, 766 00:42:36,560 --> 00:42:40,560 Speaker 1: Slash Podcast, Attorney's Confound, Exceptional legal research and business development 767 00:42:40,560 --> 00:42:42,960 Speaker 1: tools at Bloomberg Law dot com, and on the Bloomberg 768 00:42:43,040 --> 00:42:46,880 Speaker 1: terminal at black Go top Stories, straight Ahead. This is 769 00:42:46,880 --> 00:42:47,400 Speaker 1: Bloomberg