WEBVTT - Bloomberg Daybreak: June 8, 2022 - Hour 2 (Radio) 0:00:00.800 --> 0:00:04.320 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:00:04.400 --> 0:00:07.960 day Break for Wednesday, June eight two. Coming up this hour, 0:00:08.119 --> 0:00:11.640 key primary results are in from California and New Jersey. 0:00:11.680 --> 0:00:15.280 We're live with the latest chorus. Johnson plans legislation to 0:00:15.440 --> 0:00:18.840 override parts of the Brexit deal. Credit sweet shares plunge 0:00:18.960 --> 0:00:22.320 after warning of a second quarter loss, and new developments 0:00:22.360 --> 0:00:25.960 this morning involving Elon Musk and Twitter controversy over a 0:00:26.040 --> 0:00:28.840 planned New York City event with Florida Governor de Santis, 0:00:28.880 --> 0:00:31.840 plus a New Jersey mayor says the American Dream mall 0:00:31.880 --> 0:00:35.520 Owes his city millions. Michael Barre more ahead, I'm John 0:00:35.520 --> 0:00:37.879 Stage and Swards Champa. Maybe if the Rangers to tie 0:00:37.920 --> 0:00:40.280 up the series at two, the Yankees one at Minnesota, 0:00:40.320 --> 0:00:45.080 the Mets will shut out to San Diego. That's alls 0:00:45.080 --> 0:00:48.320 tradit head on Bloomberg day Break on Bloomberg he Live 0:00:48.400 --> 0:00:53.000 in freon New York, Bloomberg one, Washington, d C, Bloomberg 0:00:53.000 --> 0:00:56.920 one oh six one, Boston, Bloomberg nine sixties and Francisco 0:00:57.200 --> 0:01:00.920 Sirius XM one nineteen and around the world on Bloomberg 0:01:01.000 --> 0:01:07.960 Radio dot Com and via the Bloomberg Business. Good morning, 0:01:07.959 --> 0:01:11.360 I'm Nathan Hager, I'm any Morris. Bloomberg Daybreak is brought 0:01:11.440 --> 0:01:14.959 to you by being Wide Melon Pershing's Inside conference back 0:01:15.000 --> 0:01:17.960 in person June fift through the seventeenth that the Gay 0:01:18.000 --> 0:01:21.280 Lord Resort in grape Vine, Texas. Don't miss it. Registered 0:01:21.319 --> 0:01:24.000 now at Inside dot b and y Melon dot com 0:01:24.280 --> 0:01:26.960 and watching futures move lower. On this Wednesday morning, it 0:01:27.120 --> 0:01:28.720 is six oh one on Wall Street. We checked the 0:01:28.760 --> 0:01:31.240 markets every fifteen minutes during the trading day. On Bloomberg. 0:01:31.520 --> 0:01:34.080 SFP futures are down seventeen points. Staff futures down a 0:01:34.319 --> 0:01:37.559 D fifty five. Nastack futures are lower by thirty eight points. 0:01:37.560 --> 0:01:40.160 The tenure treasuries down eight thirty seconds for a yield 0:01:40.160 --> 0:01:43.399 of three percent. Amy well more on the markets in 0:01:43.400 --> 0:01:46.399 a moment. We begin with primarias across seven states last night, 0:01:46.520 --> 0:01:49.800 starting in California, San Francisco, residents took to the polls 0:01:49.840 --> 0:01:53.920 to ausked Progressive District Attorney Jason Buddin. Voters were not 0:01:53.960 --> 0:01:57.360 asked to choose between criminal justice reform and something else. 0:01:58.080 --> 0:02:01.240 They were given an opportunity to voice their frustration and 0:02:01.240 --> 0:02:04.200 their outrage, and they took that opportunity. Jason Boudein's recall 0:02:04.280 --> 0:02:08.120 election turned into a heated campaign, dividing Democrats. Boodins sought 0:02:08.120 --> 0:02:11.720 criminal justice reform, critics panded him is far too lenient 0:02:11.840 --> 0:02:15.360 on crime. He addressed his supporters after his defeat. I 0:02:15.400 --> 0:02:19.440 want to be very clear about what happened tonight. The 0:02:19.560 --> 0:02:24.040 right wing billionaires outspent us three to one. They exploited 0:02:24.040 --> 0:02:29.000 an environment in which people are appropriately upset. San Francisco 0:02:29.040 --> 0:02:31.840 District Attorney Jason Budein will be replaced by an interim 0:02:31.919 --> 0:02:35.880 dh chosen by San Francisco Mayor London Breed. Also in California, 0:02:35.919 --> 0:02:38.720 amy Governor Gavin knew Some cruise to an easy victory. 0:02:38.760 --> 0:02:41.960 He'll advance to November election. In Los Angeles, public safety 0:02:42.040 --> 0:02:45.080 is also a key issue in that city's mayoral race. 0:02:45.520 --> 0:02:49.640 Billionaire real estate developer Rick Caruso and California Representative Karen 0:02:49.720 --> 0:02:52.880 Bass are headed for a runoff after yesterday's primary. In 0:02:52.919 --> 0:02:55.959 other states, congressional race has served as yet another measure 0:02:55.960 --> 0:02:59.960 of former President Donald Trump's influence over the GOP. Bloomberg 0:03:00.120 --> 0:03:03.079 Michael Barr joins US Live with more on primary results. 0:03:03.120 --> 0:03:05.760 In New Jersey, Good Morning, Michael, Good Morning, Nathan. A 0:03:05.800 --> 0:03:09.240 dozen U s OL seats are being contested in New Jersey. 0:03:09.520 --> 0:03:14.480 They were several GOP candidates who followed Donald Trump's brand. However, 0:03:14.480 --> 0:03:18.120 in New Jersey, only two of the twelve member delegation 0:03:18.240 --> 0:03:22.040 are Republicans. In the second district, incumbent Jeff Van Drew 0:03:22.520 --> 0:03:26.120 won the GOP primary with six percent. Van Drew face 0:03:26.200 --> 0:03:29.960 Democrat Tim Alexander, who got sixty two percent. In the 0:03:30.040 --> 0:03:34.000 fourth district, incumbent Republican Chris Smith won with fifty eight 0:03:34.040 --> 0:03:36.880 percent of the vote. Smith will face Democrat Matthew Jenkins, 0:03:36.920 --> 0:03:40.720 who ran unopposed. In the seventh district, Republican Thomas Kane Jr. 0:03:40.880 --> 0:03:45.160 Received forty six percent. He'll face incumbent Democrat Tom Malinowski, 0:03:45.200 --> 0:03:47.920 who got pent of the vote. In New York, Michael 0:03:47.960 --> 0:03:51.000 Barr Bloomberg Day Break, Alright, Michael, thank you. And five 0:03:51.080 --> 0:03:55.200 other states held primaries South Dakota, Mississippi, New Mexico, Iowa, 0:03:55.280 --> 0:03:59.680 and Montana. Incumbents mostly staved off challenges from other candidates 0:04:00.040 --> 0:04:03.160 during the Politics Overseas Now Amy. After winning a confidence 0:04:03.240 --> 0:04:06.120 vote this week, UK Prime Minister Boris Johnson plans to 0:04:06.200 --> 0:04:09.720 press ahead with legislation, it's likely to anger some of 0:04:09.800 --> 0:04:12.720 his political allies. Bloombergs you and Pots joins us from 0:04:12.720 --> 0:04:15.080 London with the latest. Good morning you, and good morning 0:04:15.120 --> 0:04:17.520 Nathan and Amy. Back to work for Boris Johnson is 0:04:17.600 --> 0:04:20.240 less than two days since the UK Prime Minister narrowly 0:04:20.279 --> 0:04:24.200 survived the confidence votes among his Conservative Party colleagues. Now 0:04:24.279 --> 0:04:27.880 Bloomberg understands that Johnson is pressing ahead with divisive plans 0:04:27.920 --> 0:04:31.320 on the Northern Ireland Protocol. The legislation is likely to 0:04:31.320 --> 0:04:34.719 give ministers the power to UNI actually rewrite post brexit 0:04:34.800 --> 0:04:37.400 trading rules the European Union as will and the move 0:04:37.480 --> 0:04:40.120 could leave to a suspension of the UK's trade deal. 0:04:40.360 --> 0:04:42.560 In London, I'm you and part spoon book daybreak, Thank 0:04:42.600 --> 0:04:44.680 you you, and turning to the market's US futures are 0:04:44.720 --> 0:04:48.480 down this morning after yesterday's broad based rally. Sentiment remains 0:04:48.520 --> 0:04:51.839 fragile amid concerns interest rates will need to go hire 0:04:51.880 --> 0:04:55.919 to rein in inflation. However, Pimco portfolio manager Aaron Brown 0:04:56.000 --> 0:05:00.720 says easing supply pressures could temper aggressiveness from central banks 0:05:00.760 --> 0:05:03.400 as we start to seeing more chips supply. As we 0:05:03.480 --> 0:05:06.800 start to see you know less of this demand for goods. 0:05:07.240 --> 0:05:09.800 We do think that you will start to see inflation 0:05:10.240 --> 0:05:13.560 peak and then ultimately start to roll over. Aaron Brown 0:05:13.600 --> 0:05:16.920 of pimcosa as waning supply team disruptions leave her cautiously 0:05:16.960 --> 0:05:21.160 optimistic about markets well in Asia, Amy China's tech stock 0:05:21.240 --> 0:05:23.360 saw big john The government's late dispatch of new game 0:05:23.400 --> 0:05:26.360 approvals bolstered bets of the industry's business outlook is on 0:05:26.400 --> 0:05:29.880 the end. Bloomberg's Juliette Sally has more. From Singapore, thew 0:05:29.880 --> 0:05:32.040 Hang sing Tech index rose to a two month high. 0:05:32.120 --> 0:05:36.240 A sentiment was bolsted that authorities are moving towards policy normalization, 0:05:36.680 --> 0:05:39.760 but the contrarian who called China's tech routes says the 0:05:39.800 --> 0:05:43.000 sector is still a cell. Dizzy Banks Manuel Mural, writing 0:05:43.040 --> 0:05:45.720 he feels reports regulators are preparing to wrap up a 0:05:45.800 --> 0:05:49.040 probe into d D a premature. Elsewhere, continued weakness in 0:05:49.080 --> 0:05:52.920 the yend saw Japanese equities rise and Australian stocks recouped 0:05:52.960 --> 0:05:56.320 some of Tuesday's losses. Short dated Indian bonds rallied, with 0:05:56.400 --> 0:05:59.239 the four year yield dropping twelve basis points as India's 0:05:59.240 --> 0:06:02.600 Central Bank in the jumbo rate high club in Singapore, 0:06:02.680 --> 0:06:06.159 Juliette Sale, bloom Big Daybreak, Thank Juliette, and Europe credits 0:06:06.200 --> 0:06:09.200 We shares are down more than five percent. The Swisslander 0:06:09.240 --> 0:06:12.000 expects the laws at the group wide level and investment 0:06:12.040 --> 0:06:15.240 bank in the second quarter. Credits We says market conditions 0:06:15.240 --> 0:06:18.279 have remained challenging after the invasion of Ukraine and monetary 0:06:18.279 --> 0:06:20.760 tightening around the world. Now, the Corporate News amy there 0:06:20.800 --> 0:06:24.200 is new uncertainty surrounding the Elon Musk Twitter deal. Bloomberg's 0:06:24.320 --> 0:06:27.520 Nita Young joins US Live with more on that. Good Morning, 0:06:27.600 --> 0:06:30.640 Good Morning, Nathan. Elon Musk's attempts to get new funding 0:06:30.680 --> 0:06:33.520 to take Twitter private are now on hold, and it's 0:06:33.560 --> 0:06:37.000 because of uncertainty surrounding the deal. That's according to Reuters, 0:06:37.040 --> 0:06:40.840 who reports conversations have halted with private equity firms, including 0:06:40.839 --> 0:06:44.480 Apollo Global Management, until there's clarity about the future of 0:06:44.520 --> 0:06:47.680 the acquisition. Musk has been trying to reduce his thirty 0:06:47.720 --> 0:06:50.960 three point five billion dollar cash contribution to the forty 0:06:50.960 --> 0:06:55.000 four billion dollar deal by preferred equity financing. Meantime, he's 0:06:55.000 --> 0:06:57.560 also threatened to back away from the deal if Twitter 0:06:57.600 --> 0:07:00.279 cannot prove less than five percent of its use. There's 0:07:00.320 --> 0:07:03.080 our bots live in New York. I'm really need a 0:07:03.120 --> 0:07:06.239 young Bloomberg daybreak. Okay, we need to thanks SMP. Futures 0:07:06.240 --> 0:07:09.560 now down twenty points down, Futures down a hundred sixty four, nastack, 0:07:09.640 --> 0:07:12.360 futures are lowered by fifty two points ten. Your treasury 0:07:12.360 --> 0:07:14.640 down seven thirty seconds for a yield of three percent. 0:07:14.760 --> 0:07:17.960 Straight ahead, your latest local headlines, and a check of sports. 0:07:18.000 --> 0:07:25.160 This is Bloomberg. Thank you, Nathan. It is six oh 0:07:25.200 --> 0:07:27.600 seven on Wall Street. Let's bring in Michael Barrow will 0:07:27.600 --> 0:07:29.440 find out what else is going on in New York 0:07:29.520 --> 0:07:32.240 and around the world. Good morning, Michael, Good morning Amy. 0:07:32.320 --> 0:07:35.559 New York lawmakers called on the Chelsea Piers Entertainment Center 0:07:35.600 --> 0:07:38.440 to canceled an upcoming event that includes Florida government around 0:07:38.440 --> 0:07:41.080 the Santis, saying his parents would be an insult to 0:07:41.160 --> 0:07:45.720 the city's LGBTQ community. According to an online event scheduled 0:07:45.720 --> 0:07:49.640 to Scantists, a Republican and potential twenty four presidential candidate, 0:07:50.040 --> 0:07:52.840 we'll discuss the Florida model and why it's good for 0:07:53.000 --> 0:07:56.840 religious Americans on June twelve. At the Jewish Leadership Conference. 0:07:57.160 --> 0:08:00.080 Critics specifically signed at the Florida law to sant To 0:08:00.240 --> 0:08:05.160 sign that restricts classroom instruction about sexual orientation and gender 0:08:05.280 --> 0:08:09.200 identity for children in kindergarten through third grade. Is the 0:08:09.360 --> 0:08:12.880 Senate getting closer to a compromise on gun safety Bloomberg's 0:08:12.880 --> 0:08:16.240 aid Baxter reports Senator Chris Murphy is telling President Joe 0:08:16.360 --> 0:08:19.880 Biden every day we get closer to an agreement, not 0:08:20.440 --> 0:08:23.560 further away, and House Minority Leader Mitch McConnell is being 0:08:23.720 --> 0:08:26.679 very careful about commenting. I don't want to speculate about 0:08:26.920 --> 0:08:30.320 how many of my members might support it, So Majority 0:08:30.400 --> 0:08:33.719 Leader Chuck Schumer says it will need those votes. We 0:08:33.800 --> 0:08:36.760 don't just need thoughts and prayers. We need votes. We 0:08:36.880 --> 0:08:40.160 need action. We need at least ten Republicans who are 0:08:40.200 --> 0:08:43.439 willing to say yes. But the hope is closer in 0:08:43.600 --> 0:08:46.600 San Francisco. I'm at Baxter Bloomberg gaybreak. It comes as 0:08:46.640 --> 0:08:49.400 actor Matthew McConaughey made a plead of Washington d c. 0:08:49.600 --> 0:08:52.720 To make changes to gun laws now. The Uvaldy, Texas 0:08:52.800 --> 0:08:55.760 native visited his hometown the day after the massacre at 0:08:55.800 --> 0:08:58.760 an elementary school that left nineteen children and two of 0:08:58.840 --> 0:09:02.400 their teachers dead. He spoke to the White House Press Briefing, 0:09:02.480 --> 0:09:05.719 calling out any legislators who are hedging on change. We 0:09:05.800 --> 0:09:09.280 start right now by voting to pass policies that can 0:09:09.400 --> 0:09:12.800 keep us from having as many Columbines, Sandy Hooks, Parklands, 0:09:12.880 --> 0:09:16.319 Las Vegas is Buffaloes and you Valdies. From here on, 0:09:17.240 --> 0:09:21.440 McConaughey called on lawmakers to rise above politics American dream. 0:09:21.520 --> 0:09:24.520 The five billion dollars super mall in New Jersey isn't 0:09:24.559 --> 0:09:27.720 only in hock to bond holders. The mayor of East 0:09:27.800 --> 0:09:31.559 Rutherford says the shopping and entertainment complex owes the borough 0:09:31.600 --> 0:09:35.880 between five point five million and six million dollars. Jeffrey 0:09:36.040 --> 0:09:39.280 Lawholier says the mall, which is in the meadow Land 0:09:39.600 --> 0:09:42.760 Sports Complex, has failed to make payments in lieu of 0:09:42.840 --> 0:09:46.160 property taxes. Global News twenty four hours a day on 0:09:46.400 --> 0:09:50.000 air and on Bloomberg Quicktake, powered by more than twenty 0:09:50.080 --> 0:09:53.000 seven hundred journalists and analysts more than a hundred twenty countries. 0:09:53.320 --> 0:09:56.800 Michael Barr and this is Bloomberg. Ain't all right? Thank you? Michael. 0:09:59.480 --> 0:10:01.599 It's six in on Wall Street. Time now for the 0:10:01.640 --> 0:10:04.679 Bloomburgh Sports Update with John stash Our Amy The Rangers 0:10:04.760 --> 0:10:07.120 have gotten to this point two wins from playing for 0:10:07.160 --> 0:10:09.560 the Stanley Cup, winning only twice on the road. They 0:10:09.600 --> 0:10:11.640 won the two road games they had to win or 0:10:11.679 --> 0:10:14.040 their season would be over. Game six in Pittsburgh, Game 0:10:14.120 --> 0:10:17.640 seventh Carolina, but they've lost the other seven on the road. 0:10:17.760 --> 0:10:20.200 Tampa Bay took last night's game four, four to one, 0:10:20.520 --> 0:10:22.560 and the East Finals are tied at too Only Ranger 0:10:22.600 --> 0:10:24.800 goal came late from Martimi Fanarin. It was on the 0:10:24.840 --> 0:10:27.800 power play. Rangers never scored in the two games at 0:10:27.880 --> 0:10:30.760 Tampa at even strength. The good news they're coming home 0:10:30.840 --> 0:10:32.920 where they've won eight in a row. Game five tomorrow 0:10:33.000 --> 0:10:35.839 night at MSG. Game three the NBA Finals tonight in 0:10:35.920 --> 0:10:39.000 Boston Celtics Warriors tied at one win of the year 0:10:39.080 --> 0:10:41.640 for the Yankees with an occurrence early on. It has 0:10:41.679 --> 0:10:47.320 now happened twenty two times. The field and Buxton back, 0:10:47.440 --> 0:10:50.319 He's on the track, he's on the wall. She's gone 0:10:51.480 --> 0:10:57.439 over the Centerville wall. I judge in blast, but he 0:10:57.679 --> 0:11:02.320 is something Aaron Judge, Hey all rod a and twenty 0:11:02.360 --> 0:11:04.800 two homers for Judge. That's five more than anyone else 0:11:04.880 --> 0:11:07.360 in baseball. That game first standing with a man on 0:11:07.480 --> 0:11:10.240 John Carlos Fanton hit his twelve also in the first 0:11:10.280 --> 0:11:12.720 and then in the seventh three runch shot far Anthony 0:11:12.800 --> 0:11:15.559 Rizzo is fourteen. Yanks beat the Twins ten to four. 0:11:15.640 --> 0:11:18.240 They are forty and fifteen. They won seven a row. 0:11:18.679 --> 0:11:21.360 Mets lost in San Diego seven up. He managed only 0:11:21.440 --> 0:11:23.800 only two hits up the podres you Darvish the Red 0:11:23.840 --> 0:11:26.679 Sox one in tennants. They sent the Angels to a 0:11:26.760 --> 0:11:29.120 club record thirteen bloss in a row, and the Angels 0:11:29.160 --> 0:11:32.120 have fired their manager. Sixty eight year old Joe Madden, 0:11:32.120 --> 0:11:34.520 who has been managing the majors the last seventeen years, 0:11:34.559 --> 0:11:36.080 want to pen up with Tampa Bay, of course, won 0:11:36.080 --> 0:11:39.320 a World Series with the Cups. Just Dash Award Bloomberg 0:11:39.360 --> 0:11:42.720 Sports Team, all right, thank you, John checking Futures now 0:11:42.960 --> 0:11:46.920 s and P Futures down nineteen points, del Futures down 0:11:47.080 --> 0:11:51.760 one sixty nastat Features down forty nine and a half point. 0:11:51.800 --> 0:11:53.959 It's much more still to come on this Wednesday morning 0:11:54.440 --> 0:11:58.200 on Bloomberg Break Daybreak, Stay with us. This is Bloomberg. 0:12:07.920 --> 0:12:11.199 Bloomberg Daybreak is brought to you by Hafster University's Frank G. 0:12:11.600 --> 0:12:14.320 Zarb School of Business is ourb Executive NBA is built 0:12:14.360 --> 0:12:16.600 for working professionals and can be completed in this few 0:12:16.640 --> 0:12:19.240 as eleven months. Is at Hauster dot etu slash go 0:12:19.360 --> 0:12:25.360 grad markets headlines and breaking news twenty four hours a day, 0:12:25.520 --> 0:12:28.480 at Bloomberg dot com, the Bloomberg Business at and at 0:12:28.520 --> 0:12:38.560 Bloomberg Quicktape Truth He's a Bloomberg Business Flash. I'm Nathan Hagar. 0:12:38.679 --> 0:12:42.120 US futures are falling along with European stocks. SMP and 0:12:42.240 --> 0:12:46.240 nastack futures both slipping, signaling a pause following two days 0:12:46.320 --> 0:12:50.320 of gains, with persistent worries about inflation and measures about 0:12:50.760 --> 0:12:54.439 avengngers by central banks to rein it. In weighing on 0:12:54.800 --> 0:12:57.200 this market, we check the numbers for you every fifteen 0:12:57.240 --> 0:13:00.280 minutes during the trading down Bloomberg Right now, spf utuers 0:13:00.280 --> 0:13:02.719 are down twenty points, Staff futures down a hundred sixty six, 0:13:02.840 --> 0:13:05.760 nast deck futures lowered by fifty two points. Germany's decks 0:13:05.800 --> 0:13:07.640 down a half percent. The CACK in Paris is lowered 0:13:07.640 --> 0:13:09.439 by seven tenths of one percent. To foot Sea in 0:13:09.480 --> 0:13:12.680 London down three tenths per cent. To tell your treasury 0:13:12.720 --> 0:13:14.760 is down eight thirty seconds for a yield of three 0:13:14.840 --> 0:13:17.840 percent yield on the two year two point seven four percent. 0:13:18.240 --> 0:13:20.240 Nime X Screwed is up one and a quarter percent 0:13:20.320 --> 0:13:22.760 of a dollar fifty and a hundred twenty dollars ninety 0:13:22.800 --> 0:13:24.959 one cents for a barrel of West Texas Intermediate crewed 0:13:25.160 --> 0:13:27.720 comics called Little Changed up twenty cents at eighteen fifty 0:13:27.760 --> 0:13:30.280 two thirty announced. The Euro is at one point zero 0:13:30.400 --> 0:13:33.160 seven two zero against the dollar, British pound one point 0:13:33.240 --> 0:13:35.800 one five three eight. The end is at one thirty 0:13:35.840 --> 0:13:39.199 three point seven six Bitcoin trading around thirty thousand, four 0:13:39.280 --> 0:13:42.280 hundred dollars. That's a Bloomberg business flash. Now here's Michael 0:13:42.280 --> 0:13:44.240 Barr with more on what's going on around the world. 0:13:44.320 --> 0:13:48.640 Michael Nathan, thank you very much. Democratic US representative Karen 0:13:48.720 --> 0:13:52.680 Bass and billionaire developer Rick Caruso Breeze passed a large 0:13:52.840 --> 0:13:55.280 field of rivals looking to be the next mayor of 0:13:55.360 --> 0:13:58.360 Los Angeles in advanced to a runoff election in November. 0:13:58.920 --> 0:14:01.120 Bass is poised to come the first woman to hold 0:14:01.160 --> 0:14:03.839 the job in the nation's second most populous city. The 0:14:03.880 --> 0:14:07.200 winner in November will replace outgoing mayor Eric Carr. City 0:14:07.760 --> 0:14:10.240 in the NHL East find All the Rangers lost to 0:14:10.280 --> 0:14:12.800 the Lightning for one, the series now tied at two 0:14:12.880 --> 0:14:16.240 games apiece. In baseball, the Yankees one, the Mets lost, 0:14:16.559 --> 0:14:19.440 the Red Soxcen Orioles were winners. The Nationals lost, along 0:14:19.520 --> 0:14:23.240 with the A's and Giants. Global News twenty four hours 0:14:23.320 --> 0:14:26.360 a day on air and on Bloomberg Quick Take, powered 0:14:26.400 --> 0:14:29.120 by more than twenty seven hundred journalists and analysts more 0:14:29.120 --> 0:14:31.800 than a hundred twenty countries. Michael Barr and this is 0:14:31.840 --> 0:14:34.840 Bloomberg any all right? Thank you, Michael. It is six 0:14:35.000 --> 0:14:37.560 nineteen on Wall Street where live from the Bloomberg Interactive 0:14:37.600 --> 0:14:40.800 Broker Studios on Bloomberg Daybreak. Getting word this morning, UK 0:14:40.960 --> 0:14:44.640 Prime Minister Boris Johnson plans to press ahead with legislation 0:14:45.040 --> 0:14:47.840 giving him the power to override parts of the Brexit deal. 0:14:48.280 --> 0:14:51.040 Joining us now to talk about this, Bloomberg's Lizzie Burden 0:14:51.160 --> 0:14:53.840 joining us live from London. Lizzie, thank you for taking 0:14:53.880 --> 0:14:56.240 the time with this this morning. Let's talk about what 0:14:56.320 --> 0:14:59.760 Boris Johnson is doing. He barely survived that confidence vote 0:14:59.800 --> 0:15:03.200 ear Yer this week that left him weakend, So what 0:15:03.480 --> 0:15:07.720 might this do to his political standing? This seems risky, Hiami, Yeah, 0:15:07.760 --> 0:15:10.840 of course it appears appeases the pro Brexit vote within 0:15:10.920 --> 0:15:14.120 the Conservative Party, and there's this huge rush to get 0:15:14.280 --> 0:15:17.920 something done because they want to appease the pro unionist 0:15:18.000 --> 0:15:21.160 Democratic Unionist Party in Northern Ireland and restore the region's 0:15:21.240 --> 0:15:24.880 power sharing executive. But it is very, very risky at home. 0:15:25.440 --> 0:15:28.440 The former UK Treasury Minister Jesse Norman has warned that 0:15:28.800 --> 0:15:31.240 if you rip up the Northern Ireland Protocol it would 0:15:31.280 --> 0:15:35.560 be economically damaging, politically foolhardy, these are his words, and 0:15:35.640 --> 0:15:40.360 almost certainly illegal. And then internationally, Boris Johnson's predecessor as 0:15:40.400 --> 0:15:43.960 Prime Minister, Theresa May, has warned that since it was 0:15:44.040 --> 0:15:46.760 Johnson who signed the Northern Ireland Protocol, if he rips 0:15:46.800 --> 0:15:50.400 it up, then other countries are going to question Britain's integrity. 0:15:51.120 --> 0:15:53.480 So it's risky at a time when Johnson has just 0:15:53.760 --> 0:15:57.560 clipped clung on through a vote in which forty of 0:15:57.640 --> 0:16:02.360 his MPs had declared that they lost infidence in him. Lizzy, 0:16:02.480 --> 0:16:04.520 is it possible that this is an attempt to divert 0:16:04.560 --> 0:16:07.920 attention away from those other issues. Well, you could argue 0:16:07.920 --> 0:16:09.920 that this is Boris Johnson trying to show that he's 0:16:09.960 --> 0:16:13.160 moving on, even though some of the Tory press have 0:16:13.320 --> 0:16:16.240 called the vote on Monday a hollow victory. But on 0:16:16.320 --> 0:16:18.560 the other hand, I would question where this is coming from. 0:16:18.680 --> 0:16:21.480 My reading is that it's driven by the Foreign Office 0:16:21.760 --> 0:16:24.640 more than Number ten, and this is the Foreign Secretary 0:16:24.720 --> 0:16:28.000 lest trust showing the Conservative base that even though once 0:16:28.080 --> 0:16:30.920 upon a time she was a remainer, she's willing to 0:16:31.040 --> 0:16:33.680 stand up to Brussels and that would help her if 0:16:33.760 --> 0:16:36.880 and when a leadership election comes and she's one of 0:16:36.920 --> 0:16:38.920 the top names on the runners and riders lists that 0:16:38.960 --> 0:16:42.800 are circulating. And I just want to build on something 0:16:42.840 --> 0:16:46.440 you said that there's timing here seems significant. He's doing 0:16:46.520 --> 0:16:49.840 this very quickly after that confidence vote because any delay 0:16:49.960 --> 0:16:54.200 might make him look weaker, right, Yeah, Well, officials signaled 0:16:54.280 --> 0:16:57.040 last months that the government was looking at the fortnight 0:16:57.080 --> 0:17:00.280 after June the six to introduce some legislation like this, 0:17:00.560 --> 0:17:04.359 So a delay beyond that window would bolster the impression 0:17:04.560 --> 0:17:08.160 that legislating has been made more difficult by the vote. 0:17:08.200 --> 0:17:10.440 But this is exactly where a question whether this is 0:17:10.720 --> 0:17:13.359 more driven by the Foreign Office than Number ten. The 0:17:13.520 --> 0:17:16.879 timing is is a huge gamble for Johnson at risks 0:17:16.920 --> 0:17:20.119 dividing the Conservatives even more because while it plays to 0:17:20.160 --> 0:17:22.639 the pro Brexit wing, is going to stir the pro 0:17:22.840 --> 0:17:26.960 EU rebels that voted against Johnson on Monday, and Brussel 0:17:27.160 --> 0:17:29.359 isn't likely to be in the mood to compromise when 0:17:29.480 --> 0:17:33.240 Johnson appears weakened, and if the EU retaliates with a 0:17:33.280 --> 0:17:35.400 trade war, it's only going to add to the cost 0:17:35.440 --> 0:17:38.480 of living crisis in Britain. Oh, there are so many 0:17:38.560 --> 0:17:41.760 different angles to this, and you mentioned the European Union, 0:17:41.840 --> 0:17:44.600 So what is that response likely to be? What moves 0:17:44.720 --> 0:17:47.400 could they make in response to this? Well, the EU 0:17:47.600 --> 0:17:50.800 said that if Johnson unilaterally rips up the Northern Island 0:17:50.840 --> 0:17:55.040 Protocol then British scientists will be locked out of this 0:17:55.520 --> 0:18:00.600 Horizon europe Research project, and the UK Scienceman has gone 0:18:00.640 --> 0:18:03.720 to Brussels today to try and rescue those programs because 0:18:03.760 --> 0:18:06.520 he says they're nothing to do with the Brexit trade deal. 0:18:06.880 --> 0:18:10.040 And then in terms of individual member states, Ireland has 0:18:10.080 --> 0:18:13.440 accused Johnson of acting in bad faith. And don't forget 0:18:13.520 --> 0:18:15.840 that none of this makes the prospects for a UK 0:18:16.080 --> 0:18:20.600 US trade deal any rosier. That's another angle that I 0:18:20.640 --> 0:18:22.960 had not even considered. Your absolutely right about that. So 0:18:23.960 --> 0:18:27.040 considering all of these different angles. How far is this 0:18:27.280 --> 0:18:30.520 bill expected to get would it even make it through? Well, 0:18:30.600 --> 0:18:33.920 it's going to be a huge uphill battle. It could 0:18:33.920 --> 0:18:36.160 be presented to the House of Commond as soon as tomorrow, 0:18:36.600 --> 0:18:39.440 as I say, the delays would underscore Johnson's weakness, but 0:18:39.760 --> 0:18:43.040 it wouldn't likely enter law until next year because it 0:18:43.119 --> 0:18:45.280 needs to also pass through the upper chamber, the House 0:18:45.359 --> 0:18:48.320 of Lords, where it will face even more opposition because 0:18:48.320 --> 0:18:52.000 it's a little more pro eu in there. So let's 0:18:52.040 --> 0:18:54.159 get into the tax news from Rishie soonak is this 0:18:54.640 --> 0:18:57.239 Rishie making his fitch to take over that top job. 0:18:57.280 --> 0:18:59.880 We've got about a half a minute here, Yeah, well sooner. 0:19:00.000 --> 0:19:02.680 It is promising to cut taxes his next budget in 0:19:02.720 --> 0:19:05.720 the autumn. It focuses on businesses. The question is whether 0:19:05.760 --> 0:19:08.480 there's going to be more help for households in the 0:19:08.520 --> 0:19:11.479 form of personal tax cuts. But there's always a benefit 0:19:11.560 --> 0:19:14.200 for any wanna be Tory leader to appearing to be 0:19:14.280 --> 0:19:17.000 the tax cutting out to Margaret Thatcher. But given he's 0:19:17.600 --> 0:19:20.720 already introduced a wind full tax on energy companies, he's 0:19:20.760 --> 0:19:24.240 got a lot of ground to claw back on that front. 0:19:25.200 --> 0:19:27.280 All Right, we're gonna be watching this with you, Lizzie, 0:19:27.320 --> 0:19:30.159 Thank you so much. Bloomberg's that Lizzie Burden joining us 0:19:30.320 --> 0:19:34.760 live from London, talking about Boris Johnson's latest move trying 0:19:34.800 --> 0:19:38.400 to move on Brexit and and possibly tear out parts 0:19:38.400 --> 0:19:41.080 of that deal. We're watching it with you. Checking the 0:19:41.119 --> 0:19:44.440 markets now. SMP futures down at twenty, Dow futures down 0:19:44.480 --> 0:19:48.040 one seventy two, NASDAC features down fifty five. Much more 0:19:48.119 --> 0:19:50.560 stealth to come on Bloomberg Daybreak. We'll check more markets 0:19:50.560 --> 0:19:53.120 and bringing the latest news in business, economics and finance. 0:19:53.720 --> 0:20:07.560 This is Bloomberg. Bloomberg Daybreak, brought to you by the 0:20:07.600 --> 0:20:10.600 Jewish Communal Fund j c F. Stoner Advised Fund is 0:20:10.640 --> 0:20:13.440 the smart choice to manage your philanthropy, especially in times 0:20:13.440 --> 0:20:16.520 of crisis. Make your giving impactful. Visit j c F 0:20:16.680 --> 0:20:24.879 n y dot org. Broadcasting live from the Bloomberg Interactive 0:20:24.960 --> 0:20:28.800 Broker Studio in New York. Bloomberg E Living Freon to Washington, 0:20:28.880 --> 0:20:32.960 d C, Bloomberg to Boston, Bloomberg one O six one 0:20:33.119 --> 0:20:36.560 to San Francisco, Bloomberg Num sixteen to the country Sirius 0:20:36.720 --> 0:20:39.119 XM chad A one nine teen and around the globe. 0:20:39.200 --> 0:20:43.200 The Bloomberg Business and Bloomberg Radio dot com. This is 0:20:43.240 --> 0:20:52.800 Bloomberg Daybreak. It's six thirty on Wall Street. Good Wednesday morning. 0:20:52.880 --> 0:20:55.400 I'm Amy Morris and I'm Nathan Hager. We're just about 0:20:55.440 --> 0:20:57.440 three hours away from the open of US training. Time 0:20:57.480 --> 0:20:59.240 for the five Things you need to know to start 0:20:59.320 --> 0:21:02.560 your day, brought to you by Interactive Brokers. Investment Advisors 0:21:02.600 --> 0:21:05.560 switched to Interactive Brokers for lowest cost global training and 0:21:05.600 --> 0:21:08.920 turnkey custody solutions, no ticket charges and no conflicts of 0:21:09.000 --> 0:21:11.840 your interests at i b k R dot com slash 0:21:12.000 --> 0:21:15.160 r I a of first results from some key primary races. 0:21:15.280 --> 0:21:18.880 Last night, Democratic representative Karen Bass and billionaire developer Rick 0:21:18.920 --> 0:21:22.040 Caruso breezed past a large field of rivals looking to 0:21:22.119 --> 0:21:24.359 be the next mayor of Los Angeles. They advanced to 0:21:24.440 --> 0:21:27.360 a runoff election in November. The winner will replace outgoing 0:21:27.440 --> 0:21:31.199 Mayor Eric Garcetti. And San Francisco residents voted to recall 0:21:31.320 --> 0:21:35.480 progressive district Attorney Chase of Booting. Booting tried to reform 0:21:35.560 --> 0:21:38.239 the criminal justice system, and critics accused him of being 0:21:38.320 --> 0:21:42.360 too soft on crime. We've made mistakes, We've learned a lot, 0:21:43.280 --> 0:21:48.320 and I am so unbelievably appreciative about those voting favor 0:21:48.359 --> 0:21:51.439 to Austin Bootine. He'll be replaced by an interim district 0:21:51.480 --> 0:21:54.600 attorney chosen by Mayor London. Breed will have the latest 0:21:54.720 --> 0:21:57.240 on the New Jersey primaries. Just a minute, all right, Amy, 0:21:57.320 --> 0:21:59.840 But first, in UK politics, Bloomberg News has learned Prime 0:21:59.880 --> 0:22:02.359 in Sir Boris Johnson will go ahead with legislation to 0:22:02.480 --> 0:22:05.400 override parts of the Brexit deal that risks in flaming 0:22:05.480 --> 0:22:08.720 tensions with members of his Conservative Party and the European Union. 0:22:09.040 --> 0:22:12.080 Turning to the market's US futures lower following back to 0:22:12.119 --> 0:22:15.359 back games for the SMB five In Europe, shares of 0:22:15.440 --> 0:22:18.840 Credit Suite are down almost five percent. The Swiss Lander 0:22:18.920 --> 0:22:21.560 expects a loss at the group wide level and investment 0:22:21.600 --> 0:22:24.800 bank in the second quarter, and there's no uncertainty this morning, Amy, 0:22:24.880 --> 0:22:28.600 surrounding the Elon Musk Twitter deal. Bloomberg's Ranita Young joins 0:22:28.720 --> 0:22:32.080 US Live with more on that. Good morning, Ranita, Good morning, Nathan. 0:22:32.200 --> 0:22:34.879 Elon Musk's attempts to get new funding to take Twitter 0:22:35.000 --> 0:22:38.199