Speaker 1: Like from the Bloomberg Interactive Brooker Studios. This is Bloomberg
Speaker 1: Daybreak for Thursday, August Sports twenty two. Coming up. The
Speaker 1: shower Scott centered the day near a two month high.
Speaker 1: The Bank of England forecast to raise rates by the
Speaker 1: most in more than a quarter of a century. The
Speaker 1: Senate overwhelmingly approach the addition of Finland and Sweden to NATO.
Speaker 1: Tesla holds a key shareholder meeting, and Walmart is the
Speaker 1: latest company to cut jobs. New York Mayor Adams freeze
Speaker 1: up a hundred million dollars for city schools. Plus, the
Speaker 1: jury is deliberating the Alex Jones defamation case. I'm Michael Bloomberg,
Speaker 1: bore ahead, I'm down stair Showard Sports Garrett Cole roughed
Speaker 1: up with the Yankee lost the Seattle the Mets one easily.
Speaker 1: They start a big series with it went tonight. That's
Speaker 1: All's tradinghead on Bloomberg Daybreak on Bloomberg eleven, free on
Speaker 1: New York Bloomberg nineteen nine one, Washington, d C. Bloomberg
Speaker 1: one oh six one, Boston Bloomberg nine sixties and Francisco
Speaker 1: Sirius Exam one nineteen and around the world on Bloomberg
Speaker 1: Radio dot com and via the Bloomberg Business app. Good morning,
Speaker 1: I'm Nathan Hagar and I'm Karen. Moscow and US Dock
Speaker 1: index futures are lower this morning work coming up to
Speaker 1: five o one on Wall Street, and we checked the
Speaker 1: markets every fifteen minutes throughout the trading day on Bloomberg
Speaker 1: S and P futures down four points down, futures down
Speaker 1: twenty three and nasday futures down sixteen. The decks in
Speaker 1: Germany's up three quarters of a percent, ten year treasury
Speaker 1: down eight thirty seconds on two point seven three percent,
Speaker 1: and they yield on the two year three point one
Speaker 1: zero percent. Nathan Karen, The SMP five hundred enters today's
Speaker 1: session near a two month high. The tech heavy Nasdaq
Speaker 1: one hundred indexes at its highest level since early May.
Speaker 1: Corporate earnings and healthy economic data are helping to lift sentiment,
Speaker 1: and we get more from Northern Trust Bank Chief investment
Speaker 1: Officer Katie Nixon. I think we came into this really
Speaker 1: with with such low sentiment, with such a negative positioning,
Speaker 1: that we were due for a nice bounce like seen
Speaker 1: last week and sorted into this week. But is it
Speaker 1: sustainable in the phase of a FED that appears to
Speaker 1: be hell bent on not stopping not stopping. Katie Nixon,
Speaker 1: a Northern Trust says the FED may have to reverse
Speaker 1: course sooner than expected. She says inflation is slowing meantime,
Speaker 1: Nathan the FED continues to talk tough on inflation. Minneapolis
Speaker 1: Fed president Neil cash Carry is the latest to say
Speaker 1: it's the top priority. We are laser focused on getting
Speaker 1: inflation down and um, you know, whether we are technically
Speaker 1: in a recession right now or not, it doesn't change
Speaker 1: my analysis and focused on inflation and where inflation is
Speaker 1: likely going and that is going to be. That to
Speaker 1: me is what we have. My opinion is what we
Speaker 1: have to focus on right now. Neil cash Carry says
Speaker 1: a FED rate cut next year is quote a very
Speaker 1: unlikely scenario. The monetary policy is also in focus overseas
Speaker 1: Karen as the Bank of England gets set to hike
Speaker 1: interest rates a few hours from now. We get a
Speaker 1: preview from Bloomberg's Lizzie Burden in London. I'm England rate
Speaker 1: rise today is all but a dune deal. The debate
Speaker 1: surrounds whether the UK Central Bank will is Bloomberg Economics
Speaker 1: expects hike by a half point for the first time
Speaker 1: in its independent history. The decision comes against the backdrop
Speaker 1: of inflation that's not only it's a new forty year high,
Speaker 1: but headed toward double digits in the fall. Officials are
Speaker 1: also expected to provide more detail on active quantitative tightening.
Speaker 1: In London, I'm Lizzie Burden Bloomberg Daybreak, Lizzie, thank you.
Speaker 1: Turning to politics. Now, Finland and Sweden are getting a
Speaker 1: boost in their bid to join NATO. The US Senate
Speaker 1: has now ratified their membership and the Alliance. Bloomberg's and
Speaker 1: Bachelor has the story. The intention is to bolster NATO
Speaker 1: after the Russian invasion of Ukraine. The vote pretty amazing
Speaker 1: in a body that hasn't been able to agree on
Speaker 1: much of anything. The vote to one far exceeding the
Speaker 1: two thirds majority required. Now Finland will join Estonia, Latvia,
Speaker 1: Lithuania in Poland, as NATO country is a share a
Speaker 1: land border with Russia. Turkey has been on and off
Speaker 1: about the idea and could still try to block the move.
Speaker 1: Majority leader Chuck Schumer says Putin has strengthened NATO. In
Speaker 1: San Francisco, I'm at Baxter Bloomberg Daybreak, All right, and
Speaker 1: thank you. Let's starn to corporate news now, where Tesla
Speaker 1: is in focus. The electric carmaker holds it's highly anticipated
Speaker 1: shareholder meeting today. We get a preview from Bloomberg's Tom Busby.
Speaker 1: The automaker calls its annual shareholders meeting a cyber roundup,
Speaker 1: and this year, the biggest item on the roundup agenda
Speaker 1: is the proposed three for one stock split, which would
Speaker 1: be the second one in as many years for Tesla,
Speaker 1: after a five for one split in August of twenty Now,
Speaker 1: the idea is to make shares, which will begin the
Speaker 1: trading day just about nine hundred twenty two dollars apiece,
Speaker 1: more affordable to small dollar retail investors and retail options traders,
Speaker 1: not just institutional investors. Tom Busby, Bloomberg Daybreak, All right, Tom,
Speaker 1: thank you well. Elsewhere on Wall Street, the wave of
Speaker 1: corporate downsizing continues. There's where now that Walmart is cutting
Speaker 1: about two d corp are jobs, and we get the
Speaker 1: details from Bloomberg Charlie Pellett. The retail giant is contending
Speaker 1: with rising costs, blow to inventories, and weakening demand for
Speaker 1: general merchandise. Sources say the company will also be adding
Speaker 1: an unspecified number of jobs in areas such as e commerce,
Speaker 1: health and wellness, supply chain, and ad sales. Walmart is
Speaker 1: tightening its spelt a week after slashing its annual profit
Speaker 1: forecast for the second time in less than three months.
Speaker 1: American consumers are buying less clothing and durable goods as
Speaker 1: soaring inflation raises the cost of food and basic items.
Speaker 1: In New York. Charlie Pellet Bloomberg debreak, all right, Charlie,
Speaker 1: thank you. Coming out today. The earnings parade continues, with
Speaker 1: fifty companies reporting. Among them is Lift, which comes on
Speaker 1: the heels of Uber. Is better than expected results, but
Speaker 1: Lift is not Uber. Bloomberg's Jeff Palinger explains Lift executives
Speaker 1: may lower the company's full year guidance during their conference call.
Speaker 1: Bloomberg Intelligence as censored tower data indicates competition with Uber
Speaker 1: has been fierce. Downloads of the Lift app decline year
Speaker 1: over year, and the increase in the number of monthly
Speaker 1: active users paled in comparison with Uber. The I speculates
Speaker 1: Lift may seek partnership similar to Amazon grub Hub to
Speaker 1: increase trip frequency. Jeff Bullinger, Bloomberg Daybreak. Thanks Jeff. We
Speaker 1: are seeing some stocks on the move this morning following earnings.
Speaker 1: We get the latest live at the Bloomberg's John Tucker,
Speaker 1: John Gole morning and Tarran earnings guidance from Chlorox fell
Speaker 1: well short of analyst estimates. Shares it down six percent
Speaker 1: pre market if the company gave weaker than expected guidance
Speaker 1: for fiscal year three. The shares are the mobile games
Speaker 1: company Skills tumbling of the pre market. There down twelve percent.
Speaker 1: They cut their full year guidance for revenue as shares
Speaker 1: of Lucid sinking thirteen percent after the luxury electric vehicle
Speaker 1: startup cut in half this year's production target. Luccent Enhances
Speaker 1: been dealing with supply chain snags and resulting production hiccups.
Speaker 1: Live in New York. I'm John Tucker, Bloomberg Daybreak. All right, John,
Speaker 1: thank you. SMP futures down four points down, futures down
Speaker 1: twenty seven. Nasdack futures are lower by seventeen points. The
Speaker 1: tenure treasury is down eight thirty seconds, the yield two
Speaker 1: point seven three per cent. Straight ahead, we have your
Speaker 1: latest local headlines and a check of sports You're listening
Speaker 1: to Bloomberg Daybreak at five oh seven on Wall Street
Speaker 1: where seventy seven degrees in Central Park. We've got an
Speaker 1: accident investigation closing the main road to the g WB
Speaker 1: and Fort Lee. Details coming up in traffic. First Michael
Speaker 1: Barr with what else is going on in New York
Speaker 1: and around the world, including rising tensions in the Asia Pacific. Michael,
Speaker 1: that is correct, Nathan. China says it has conducted precision
Speaker 1: missile strikes and the Taiwan Straight as part of military
Speaker 1: exercises in six zones arounding the island. The drills were
Speaker 1: prompted by a visit to the island by outspeaker Nancy
Speaker 1: Pelosi this week. China earlier this week warned airlines to
Speaker 1: avoid danger zones around Taiwan. It is going to be
Speaker 1: a hot one in the New York area. Bloomberg meteorologious
Speaker 1: Rob Caroline has the latest. Good morning, Michael. The Bermuda
Speaker 1: High is going to set the Tri state area up
Speaker 1: for some warm weather over the course of the next
Speaker 1: several days. In fact, that it's looking like the first
Speaker 1: half of August is going to be on the warm side. Today,
Speaker 1: the city and the surrounding area is close to ninety,
Speaker 1: but it feels more like a hundred with the humanity
Speaker 1: and that's why that heat advisories and effect when the
Speaker 1: nineties again tomorrow close to nighties, Saturday and Sunday, Michael Thanks.
Speaker 1: New York City Mayor Eric Adams pushed back against criticism
Speaker 1: that is continual focus on crime at press conferences is
Speaker 1: feeding into an overblown narrative that the city is unsafe.
Speaker 1: Incidents of violent crime remain at historic lows in the city,
Speaker 1: but seventy percent of New Yorkers said crime was a
Speaker 1: very serious problem in a February poll. Adam spoke at
Speaker 1: his news conference yesterday, the numbers continue to trend in
Speaker 1: the wrong direction, continue to show that these repeated offenders
Speaker 1: are coming out. It would be irresponsible of me to
Speaker 1: ignore what is happening right now on our streets every day,
Speaker 1: every day was seeing this dangerous people repeatedly committed these actions. Meanwhile,
Speaker 1: Mayor Adams is freeing up one hundred million dollars in
Speaker 1: federal stimulus money for New York City schools. It comes
Speaker 1: after an outcry among parents and some educators over the
Speaker 1: city's plan to cut hundreds of millions of dollars in
Speaker 1: funding for city schools in the current fiscal year. Conspiracy
Speaker 1: theorists Alex Jones says he was irresponsible to declare the
Speaker 1: Sandy Hook Elementary School massacre of hoax d cent real
Speaker 1: as a se regular shame as I said, it's real.
Speaker 1: The jury and Austin, Texas began deliberating on how much
Speaker 1: the Info Wars host owes the parents of one of
Speaker 1: the children who were killed in the twenty twelve attack
Speaker 1: in Newtown, Connecticut. Testimony wrapped up after a bombshell from
Speaker 1: the plaintiffs lawyer revealed that Jones's lawyers mistakenly handed over
Speaker 1: two years of tax messages from Jones's phone. Names twenty
Speaker 1: four hours a day on air and on Bloomberg Quickdake
Speaker 1: powered by more than twenty seven hundred journalists, analysts more
Speaker 1: than a hundred twenty countries, and Michael bar this is
Speaker 1: Bloomberg Naked. Thank you, Michael. Almost five ten on Wall
Speaker 1: Street time for the Bloomberg Sports Up taken morning, John Stenshower,
Speaker 1: all right, good morning. Nathan and Mets added some players
Speaker 1: before the trade deadline, maybe not big names, although their
Speaker 1: new left handed hitting d h is a big guy.
Speaker 1: Daniel boga Back generously listed at two hundred and seventy pounds.
Speaker 1: He came up in the fifth in eat in Washington
Speaker 1: two on the way from Williams and vocal Back gets
Speaker 1: one of the area along the right field line back
Speaker 1: toward the corner, but that goes Polaso side and it's
Speaker 1: out of here. A cran swam for Daniel foco Back
Speaker 1: his first home runs a man at his scores four
Speaker 1: at the s n Y Collum that's took a nine
Speaker 1: nothing lead of the ninth and anyother New metas well
Speaker 1: Leaver and Michael Gibbons. He made his Mets debut. It
Speaker 1: did not go well. He got just two outs, gave
Speaker 1: up five runs. Mets beat the Nationals nine to five.
Speaker 1: They've won eight of the last nine at at the lost,
Speaker 1: which means the Big Mets Braves. Five game series that
Speaker 1: against to Nighted City Field starts with the Mets three
Speaker 1: and a half games ahead. Stadium Seattle beat the Yankees
Speaker 1: seven to three. Did almost all the damage top of
Speaker 1: the first getting six runs on three Mariners home runs
Speaker 1: off Garret Cole. Second time this season he has served
Speaker 1: up three homers in the first of Seattle, just the
Speaker 1: fourth opposing team to win a series in the box
Speaker 1: and what could hardly be called a surprise. The NFL
Speaker 1: will appeal the ruling on that Shaun Watson suspension for
Speaker 1: sexual misconduct. The independent arbitrator called for it to be
Speaker 1: six games, but the appeal process has agreed to by
Speaker 1: both sides, and the labor deal calls for the Commissioner,
Speaker 1: or at least someone designated by Roger Goodell, to be
Speaker 1: the one to rule on the appeals of the NFL
Speaker 1: appealing to themselves. They would then be allowed to make
Speaker 1: the suspension longer. Players Association may then follow with a lawsuit.
Speaker 1: John Stash that were Bloomberg Sports, Nathan thanks John SMP
Speaker 1: futures down down three points, Sound futures down twenty seven
Speaker 1: nastack futures lower by twelve points. The tenure treasury is
Speaker 1: down eight thirty seconds yield two point seven three per cent.
Speaker 1: This is Bloomberg Bloomberg eleven three. All weather will be
Speaker 1: under a heat advisory later this morning until eight o'clock
Speaker 1: tomorrow night. His your today and tomorrow uper eighties chants
Speaker 1: for showers and storms by Saturday. Right now seventy eight
Speaker 1: in Central part markets, headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot Com, The Bloomberg Business
Speaker 1: at and at Bloomberg Quicktake. This is a Bloomberg Business lash,
Speaker 1: but I'm kerin Moscow. Stocks holding modest gains as investors
Speaker 1: assess the corporate profit al look, while wagers on further
Speaker 1: Federal reserve interest rate hikes lifts Treasury yields. US stock
Speaker 1: index futures are a little changed after stocks yesterday snapped
Speaker 1: two day to clawin. We checked the markets every fifteen
Speaker 1: minutes throughout the trading day on Bloomberg. Right now, SNP
Speaker 1: futures as well as NASDAC and Dow futures are all
Speaker 1: that will change. The decks in Germany is U three
Speaker 1: quarters of a percent, the ten year treasury down six
Speaker 1: thirty seconds, YELD two point seven two percent, the yield
Speaker 1: on the two year three point oh nine percent. NIMEX
Speaker 1: scrude oil is down to tens of upper cent or
Speaker 1: fifteen cents and ninety dollars fifty one cents of barrel
Speaker 1: comex gold of one percent or seventeen dollar seventy cents
Speaker 1: is seventeen ten an ounce. The Euro one seven against
Speaker 1: the dollar, British pound one point to one six seven
Speaker 1: and the yen one thirty four point three three and
Speaker 1: looking at Bitcoin down two percent at twenty two eight
Speaker 1: hundred fifty dollars. That's a Bloomberg business flash. Now here's
Speaker 1: Michael Barr with more on what's going on around the world. Michael,
Speaker 1: good morning, Good morning. Here in China is staging live
Speaker 1: fire military drills and six self declared zones around in Taiwan,
Speaker 1: and is in response to a visit by US how
Speaker 1: Speaker Nancy Pelosi to the island Beijing claims as its
Speaker 1: own territory. The Senate ratified adding Sweden and Finland to
Speaker 1: NATO move and tended to bolster the military alliance after
Speaker 1: Russia's invasion of Ukraine. Closing arguments in w n B,
Speaker 1: a star Britney Grinder's cannabis possession case in Russia are
Speaker 1: set for today. In baseball, the Mariners beat the Yankees
Speaker 1: seven three, the Mets beat the Nationals nine five, the
Speaker 1: Red Sox and Giants lost the Orioles, and A's one
Speaker 1: Global Needs twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred
Speaker 1: journalists and analysts in more than one twenty countries. Sow
Speaker 1: Michael Barr and this is Bloomberg Navan. Alright, Michael, thank you.
Speaker 1: It is five nineteen on Wall Street live from the
Speaker 1: Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and five
Speaker 1: nineteen means we are about one hour and forty one
Speaker 1: minutes away from a policy decision from the Bank of England.
Speaker 1: In just that stretch of time, we find out if
Speaker 1: the bo E joins the long list of countries fighting
Speaker 1: inflation with more aggressive interest rate hikes. Ahead of that,
Speaker 1: we're joined by Dan Hansen, senior UK economist at Bloomberg Economics.
Speaker 1: Dan good Morn think the consensus is that the BOE
Speaker 1: will go ahead with a fifty basis point hike. But
Speaker 1: after the last several months of smaller increases, what are
Speaker 1: the chances we get another downside surprise? Oh, good morning.
Speaker 1: So I think I think the chance of a downside
Speaker 1: surprise quite low. Actually, I think I think that the
Speaker 1: bank has set itself up self up for this for
Speaker 1: this big move. If you remember, back in the middle
Speaker 1: of July, Andrew Bailey in his mention how speech put
Speaker 1: a fifty basis point point hike firmly on the table,
Speaker 1: and I think they're going to follow through today. What's
Speaker 1: the risk that fifty basis point hike brings the UK
Speaker 1: closer to a recession or is the UK in a
Speaker 1: recession already. That's a really good question. I mean, I
Speaker 1: think the big thing in the UK at the moment
Speaker 1: is this cost of living squeeze. So we've got sky
Speaker 1: high inflation and incomes just aren't keeping keeping up. And
Speaker 1: I think what the Bank's doing, it's it's doing its
Speaker 1: best to keep inflation at expectations in check um, and
Speaker 1: that's why we're seeing these this move towards a faster
Speaker 1: pace of rate hikes. I mean, answer to your question directly,
Speaker 1: I don't think we're in recession just yet, um, but
Speaker 1: there is a significant risk of it, particularly around the
Speaker 1: turn of the year. And actually that will be one
Speaker 1: of the things we'll be watching for the bank. From
Speaker 1: the Bank today, I should say they're they're gonna be
Speaker 1: putting out new forecasts and it's it's possible a forecast
Speaker 1: or recession in the near term. Yeah. There's a debate
Speaker 1: here in this country, of course, about whether inflation expectations
Speaker 1: are moving toward a situation where we're seeing less less
Speaker 1: inflation now that federal reserve policy is starting to have
Speaker 1: an impact. Is the situation a little different in the
Speaker 1: UK now? Is inflation getting more entrenched? Yeah, So there's
Speaker 1: been a few surveys recently that suggested the expectations have
Speaker 1: drifted higher. I mean, one thing about the UK as
Speaker 1: well is that we're likely to get a peak of
Speaker 1: Our peak for inflation is likely to come a little
Speaker 1: bit later, and that's to do with the way energy
Speaker 1: prices are set. So we're we're likely to see our
Speaker 1: peak for inflation in towards the end of this year,
Speaker 1: probably in October, and it will be likely in double
Speaker 1: digits as well, so probably around twelve so probably a
Speaker 1: higher peak than the US as well. So that's one
Speaker 1: reason to think that the Bank of England's going to
Speaker 1: keep its foot on the break and continue tightening just
Speaker 1: until it sees sees through the peak and sees sort
Speaker 1: of strong evidence that inflation is coming back down, which
Speaker 1: is only really likely to happen sort of in the
Speaker 1: middle of next year, given that you're expecting that we
Speaker 1: could see a forecast for recession from the b o
Speaker 1: E later this morning. How has the bank's outlook panned
Speaker 1: out in the past. I mean, there is some concern
Speaker 1: that the b o E has been behind the curve
Speaker 1: when it comes to tackling this cut stuff having crisis. Now, yeah,
Speaker 1: that is true. That is something that has been leveled
Speaker 1: at the bank. I mean, one thing I'd say in
Speaker 1: their defense is that they started tightening earlier than other
Speaker 1: advanced economy central banks, so they do have that in
Speaker 1: their favor. And I also think that neutral rate in
Speaker 1: the the UK, so the rate that sort of neither
Speaker 1: speeds up nor slows down the economy is a little
Speaker 1: bit lower as well, so they've probably they're probably closer
Speaker 1: to that level than certainly the e c B is
Speaker 1: um and we know the Fed is sort of thinks
Speaker 1: it's around that level now um. But I think certainly
Speaker 1: on the forecast they've been hugely surprised when inflation um
Speaker 1: and they've if you look back sort of even a
Speaker 1: year ago, they were thinking the peak for inflation was
Speaker 1: going to be around four percent, and I think today
Speaker 1: they'll probably say it's somewhere close to twelve percent. So
Speaker 1: that's that's a pretty big forecast there, along with the
Speaker 1: rate high decision. We're also expecting to get a little
Speaker 1: bit more clarity on what the bo he is going
Speaker 1: to do about its balance sheet in our last minute
Speaker 1: here Dan, what are the expectations there? So what the
Speaker 1: bank has done is it it's it's sort of taking
Speaker 1: a two step process. So the first thing it did
Speaker 1: in February was end reinvestment of government bonds, so when
Speaker 1: when the guilts redeem, they don't reinvest those proceeds. And
Speaker 1: they've been they've been doing that since February. Well, they're
Speaker 1: gonna start doing now or I should say, set out
Speaker 1: more detail on how they will go about active sales
Speaker 1: um and we'll be looking for that today. I mean,
Speaker 1: as I say it will be it will be more
Speaker 1: around the detail. It won't be around um. They won't
Speaker 1: have any sort of votes on it, and that's going
Speaker 1: to come probably in September, possibly a little bit later.
Speaker 1: But we'll just be looking for looking for the pace
Speaker 1: and how quickly they they're going to reduce their balance sheet.
Speaker 1: Andrew Baby sort of set expectations that they think it
Speaker 1: will be somewhere between fifty and a hundred billion pounds
Speaker 1: in terms of the reduction, the annual reduction in the
Speaker 1: balance sheet in the first year of QTI. Thanks for this, Dan,
Speaker 1: good having you on where it's ahead of the b
Speaker 1: o E decision. Dan Hanson is senior UK economists for
Speaker 1: Bloomberg Economics. Right now, SMP futures are a little changed,
Speaker 1: so are down futures. They're down two points DANCED futures
Speaker 1: down one point turn. Your treasury is down seven thirty seconds.
Speaker 1: The yield two point seven three percent. The yield on
Speaker 1: the two year three point one zero percent. This is
Speaker 1: Bloomberg Bloomber eleven three oh weather. Lots of sunshine, hot
Speaker 1: humid today going up to your ninety five degrees will
Speaker 1: be underheat advisory till eight pm tomorrow, low nineties tomorrow
Speaker 1: upr eighties Saturday. Right now seventy seven in Central Park,
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York,
Speaker 1: Bloomberg E Living Freedom to Washington, d C, Bloomberg ninety
Speaker 1: nine one to Boston, Bloomberg one O six one to
Speaker 1: San Francisco, Bloomberg nine six to the country, Sirius xm
Speaker 1: che and around the globe the Bloomberg Business at and
Speaker 1: Bloomberg Radio dot com. Or this is Bloomberg Daybreak. It's
Speaker 1: five thirty on Wall Street. Good morning. I'm Nathan Hager
Speaker 1: and I'm kerin Moscow. We are just about four hours
Speaker 1: away from the open of US trading. Let's get you
Speaker 1: up to date in the news you need to know
Speaker 1: at this hour. The SNP five hundred enters this session
Speaker 1: near a two month high. The tech heavy NASDAC one
Speaker 1: hundred index is at its highest level since early May.
Speaker 1: Corporate earnings in healthy economic data has helped to lift sentiment,
Speaker 1: but Alifa Dory Walla, managing director at Rock Creek, says
Speaker 1: she's still cautious there could be another severe downturn, another
Speaker 1: leg to go in the SNP, and a lot of
Speaker 1: that is some of the big tech companies that could
Speaker 1: continue to get hard because of the strong dollar and
Speaker 1: what will happen to earnings in the coming orders if
Speaker 1: that strong dollar remains. Rock Creeks Alifa Dore Wallace says
Speaker 1: the recent pivot into tech might be short lived. Meantime,
Speaker 1: Karen Feed officials continue talking tough on inflation. Minneapolis President
Speaker 1: Neil cash car He says the Federal Reserve will keep
Speaker 1: doing everything in its power to cool inflation. Some financial
Speaker 1: markets are indicating that they expect US to cut interest
Speaker 1: rates next year. Uh. I don't want to say it's impossible,
Speaker 1: but it seems like that's a very unlikely scenario right now,
Speaker 1: given what I know about the underlying inflation dynamics. The
Speaker 1: more likely scenario is we would continue raising and then
Speaker 1: we would sit there. Neil cash Cary says, whether the
Speaker 1: US is technically in recession right now or not, his
Speaker 1: analysis doesn't change well, Nathan. Monetary policy is also in
Speaker 1: focus overseas. The Bank of England gets set to hike
Speaker 1: interest rates in a few hours from now, and could
Speaker 1: raise rates fifty basis points at today's decision. Back in Washington,
Speaker 1: Karen the Senate has ratified NATO membership for Finland and Sweden.
Speaker 1: Senators voted to one in favor of the move. And
Speaker 1: on Wall Street, it's all about corporate news. This morning.
Speaker 1: Nathan Tesla is holding its annual shareholder meeting, where leadership
Speaker 1: will discuss the three for one stock split, and the
Speaker 1: wave of corporate downsizing shows no signs of slowing. Walmart
Speaker 1: is the latest company making the moves, cutting about two jobs. Man,
Speaker 1: We're seeing some stocks on the move this morning, following
Speaker 1: yesterday's earnings. Let's get that live from Bloomberg's John Tucker,
Speaker 1: John and Nathan Losid Group falling as much as percent
Speaker 1: after the luxury electric vehicles startup slashed its production target.
Speaker 1: This is the second time the California based Geno has
Speaker 1: reduced its output gold this year, Skills dropping pcent this morning,
Speaker 1: have the mobile games company cut its full year guidance
Speaker 1: for revenue and Clorox tumbling after its earnings guidance fell
Speaker 1: well short of analysts estimates. Sales moderated, higher costs for
Speaker 1: commodities and transportation have eroded the company's profitability. Live in
Speaker 1: New York, I'm John Tucker, Bloomberg, debreak. All right, John,
Speaker 1: thank you. In futures are a little change this morning.
Speaker 1: Tenure Treasury down seven thirty seconds, you know, two point
Speaker 1: seven three per cent, straight ahead, your latest local headlines
Speaker 1: plus a check of sports, and this is Bloomberg. Thanks.
Speaker 1: Hearing three on Wall Street seventy eight degrees in Central
Speaker 1: Park at a crash east bound cross Bronx to Jerome Avenue,
Speaker 1: and Michael Barr has more on what's going on in
Speaker 1: New York and around the world. Michael, thank you very much. Nathan.
Speaker 1: China says it conducted precision missile strikes in the time
Speaker 1: on straight today as part of military exercises. The drills
Speaker 1: were prompted by a visit to the island by All
Speaker 1: speaker Nancy Pelos. You This week, speculation rises about China's
Speaker 1: threat to attack the self governing island Republic. Heat advisory
Speaker 1: is in effect for the tri state area because of
Speaker 1: dangerously high and human conditions. Today's high in New York
Speaker 1: will be around ninety four. New York City Mayor Eric
Speaker 1: Adams says he's freeing up about a hundred million dollars
Speaker 1: in federal stimulus money for the New York City schools.
Speaker 1: It comes after an outcry from among parents and some
Speaker 1: educators over the city's plan to cut hundreds of millions
Speaker 1: of dollars in funding for city schools in the current
Speaker 1: fiscal year. Conspiracy theorist Alex Jones now concedes the massacre
Speaker 1: at Sandy Hook Elementary School in was one real. Jury
Speaker 1: is now deliberating Jones's punishment in a defamation case. The
Speaker 1: parents of a six year old victim of the shooting
Speaker 1: successfully sued the Info Wars host, proclaiming the shooting was
Speaker 1: a hoax. During testimony, while Jones was on the stand,
Speaker 1: there was a startling revelation from the lawyer of the parents,
Speaker 1: Mark Bankston, accused Joe Ownes of lying and trying to
Speaker 1: hide evidence, including about text messages about Sandy. Look twelve
Speaker 1: days ago, your attorney's messed up and sitting an entire
Speaker 1: digital copy of your entire cell phone with every text
Speaker 1: message you've sent for the past two years, and when informed,
Speaker 1: did not take any steps to identify it as privilege
Speaker 1: or protected in any way, And as of two days ago,
Speaker 1: it fell free and clear in the my possession. And
Speaker 1: that is how I know you'd vibe to me when
Speaker 1: you said you didn't have to text message about saying
Speaker 1: did you know that I see? I told you the truth.
Speaker 1: This is your perimason moment, Attorney Mark banks Since as
Speaker 1: Jones has made the lives of the parents a living hell.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quick Take, powered by more than the twenty
Speaker 1: seven hundred journalist and analysts in more than a hundred
Speaker 1: twenty countries. I'm Michael Barr, and this is Balloomberg. Nathan.
Speaker 1: Thank you, Michael. On Wall Street Time the Bloomberg Sports
Speaker 1: Update with John Sire Thanks Dathan Garic goals the Yankees
Speaker 1: as when the playoffs begin, he'll undoubtedly be on the mount.
Speaker 1: He's at an All Star season, but he's had a
Speaker 1: few clunkers. That was the night in June in Minnesota
Speaker 1: when for the first time of the career, Coal gave
Speaker 1: up three home runs in the first inning. It happened
Speaker 1: again yesterday at the stadium. Three run over your Genio
Speaker 1: Suarez solo shot for Carlos Santana to run blast by
Speaker 1: the Maryor's Jared Kallinik, the former Mets farman who's betting
Speaker 1: one thirty three. Coleman settled down with Seattle one seven
Speaker 1: to three, and cole was asked about the first inning.
Speaker 1: I have a pretivid recollection. I think it's sometimes easier
Speaker 1: to remember about stuffs stuff, you know. But there were
Speaker 1: some fad pitch selections. There was some bad pitches, um
Speaker 1: and uh, you know, we got punished for it again.
Speaker 1: Luis Castillo got the win in his Mariners debut. He
Speaker 1: also beat the Yankees in the Bronx. It's a few
Speaker 1: weeks ago while he was with the Reds Yanks off
Speaker 1: tonight in St. Louis tomorrow, but Mets tonight host Atlanta
Speaker 1: at the start of a huge five game weekend series,
Speaker 1: will play a doubleheader Saturday off Either team wins say
Speaker 1: four of the five. That's the three game swing. The
Speaker 1: Mets currently three and a half games ahead of the Braves.
Speaker 1: They won in Washington nine to five. Daniel Vogelback's first
Speaker 1: met homer was a grand slam. The game was nine
Speaker 1: nothing before the Gnats scored five of the night. Phil Nicholson,
Speaker 1: one of eleven golfers who joined the New Live Tour,
Speaker 1: now suing the p g A for antitrust violations. The
Speaker 1: NFL just hit the Dolphins took away their first round
Speaker 1: draft pick for tampering trying to acquire Tom Brady. The
Speaker 1: tampering began not when Brady was with Tampa Bay. It
Speaker 1: goes back to two thousand nineteen, while Brady was still
Speaker 1: with the Patriots. Bill Belichick asked about it yesterday, declining
Speaker 1: Tom John Stasha were Bloomberg Sports Nathan thanks John seven
Speaker 1: on Wall Street Time for the Tri State Business Report.
Speaker 1: Here's Bloomberg's ed Corey Capital One is expanding its offices
Speaker 1: on Fifth Avenue, even as other companies reconsider real estate
Speaker 1: foot prints amid concerns about an economic downturn and the
Speaker 1: increase in remote work. The banks expanding across three full
Speaker 1: floors at one fourteen Fifth Avenue. The State of New
Speaker 1: York claims Tyson Foods is resisting demands to provide information
Speaker 1: for an investigation into whether the meat producer engaged in
Speaker 1: price gouging during the pandemic. Attorney General Letitia James is
Speaker 1: ordering a special court proceeding the force Tyson to turn
Speaker 1: over the information. New Jersey restaurants received a two year
Speaker 1: extension for operating outdoors, something Governor Phil Murphy says remains
Speaker 1: necessary to boost small businesses. Restaurants will be able to
Speaker 1: continue using tents and other fixtures on sidewalks, in parking
Speaker 1: lots and elsewhere. According to legislation signed Wednesday that your
Speaker 1: Bloomberg Drives Day Business Report. I'm Ed Corey, Thanks a
Speaker 1: thirty eight on Wall Street. Bloomberg Radio is on the
Speaker 1: air from San Francisco to New York, London to Hong Kong.
Speaker 1: Let's check in with our global news team for some
Speaker 1: of the top stories heard on our three hundred affiliate
Speaker 1: radio stations around the world. I'm Steve podas Kin on
Speaker 1: wf A Tampa Bay. We're talking about layoffs in Tampa
Speaker 1: as Shriner's Hospital for Children closes a facility. M Courney,
Speaker 1: Donahoan kat r H in Houston. Americans are driving less
Speaker 1: than they did during the high of the pandemic. I'm
Speaker 1: Gina Servetti in for w BBM in Chicago. I'm reporting
Speaker 1: that Citadel founder and billionaire Ken Griffin has been added
Speaker 1: to the list of those that Twitter has subpoenaed in
Speaker 1: its effort to force Elon Musk to complete his purchase
Speaker 1: of the company. I'm Caroline Head killed Bloomberg Dad Dishwadium
Speaker 1: in London. Willow King ahead to the Bank of England's
Speaker 1: decision as Britain's energy regulator moves to four price rises
Speaker 1: per year from two. I'm Ed Corey on w w
Speaker 1: J and Detroit. I'm reporting officials in the area have
Speaker 1: shut down an automotive plan, saying it was releasing cancer
Speaker 1: causing chemicalton to the Uron River. And those are some
Speaker 1: of the stories our twenty hundred Bloomberg journalists and analysts
Speaker 1: are working on this morning. It's five thirty nine on
Speaker 1: Wall Street. The following is an editorial from Bloomberg Opinion.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. After
Speaker 1: a year of democratic backsliding, Tunisia went over the edge
Speaker 1: last week when President Caius Said institutionalized his rule with
Speaker 1: a referendum on a new constitution that gives him near
Speaker 1: absolute power. The outcome of the vote was never in doubt,
Speaker 1: having already suspended Parliament and secured the support of the military.
Speaker 1: The autocratic side had further tilted the playing field by
Speaker 1: jailing opponents and muzzling the media. Most Tunisians demonstrated their
Speaker 1: disapproval by turning their backs on the process. More than
Speaker 1: two thirds of those eligible opted not to vote, and
Speaker 1: his economic conditions continue to worsen. With the worldwide slowdown,
Speaker 1: site can expect little patients from young Tunisians. The next
Speaker 1: upheaval may not be long in coming. This editorial was
Speaker 1: written by the Bloomberg Editorial Board. For more Bloomberg opinion,
Speaker 1: please go to Bloomberg dot com, slash Opinion or p
Speaker 1: I N go on the Bloomberg terminal. This has been
Speaker 1: Bloomberg opinion, and you can hear Bloomberg opinion editorials every weekday.
Speaker 1: At this time terminal. Customers can read more at O
Speaker 1: P I n Go. Future is moving higher on this
Speaker 1: Thursday morning. You're listening to Bloomberg Daybreak Bloomberg eleven three
Speaker 1: oh weather highs near nine five today with a heat
Speaker 1: advisory kicking in and lasting till tomorrow night. Low nineties.
Speaker 1: Chance for afternoon showers and storms tomorrow will be in
Speaker 1: the oper eightings by Saturday. Right now seventy eight degrees, Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quicktake.
Speaker 1: This is a Bloomberg Business flash and I'm Karen Moscow.
Speaker 1: And stocks are nudging higher as investors assess the corporate
Speaker 1: profit outlook, while wagers on further at a reserve. Interest
Speaker 1: rate hikes lift treasury yields and futures are little changed.
Speaker 1: We checked the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg s and P futures up about four
Speaker 1: points now, futures are up eighteen and NAS day futures
Speaker 1: up twelve. But i'll pretty much a little change to
Speaker 1: higher now. The decks in Germany is up nine tenths
Speaker 1: of a percent and your treasury down five thirty seconds
Speaker 1: yield two point seven two percent of the yield on
Speaker 1: a two year three point nine percent NIMEX Screwed oil
Speaker 1: is up sixtensive upper cent or fifty five cents and
Speaker 1: ninety one dollar twenty one cents of barrel comes. Gold
Speaker 1: up one point one percent or eighteen dollars sixty cents
Speaker 1: at seventeen ninety five announce. The Euro one one nine
Speaker 1: five against the dollar, British bound one point two one
Speaker 1: seven four the one thirty four point one five, and
Speaker 1: bitcoin is down two percent. It's a twenty two eight
Speaker 1: hundred fifty dollars. That's a Bloomberg business flash. Now here's
Speaker 1: Michael Barr with more on what's going on around the world.
Speaker 1: Michael Karen, thank you very much. How speaker Nancy belows
Speaker 1: you've met with South Korean counterparts and sold to reassure
Speaker 1: it's wrong alliance between the two countries. It comes as
Speaker 1: China's military conducted military exercises around Taiwan in response to
Speaker 1: Belosi's visit. Flags are at half staff at the US
Speaker 1: Capitol after an Indiana congresswoman was killed in the car crash.
Speaker 1: Republican Jackie Willorski, who was fifty eight, died in the
Speaker 1: accident in northern Indiana along with two of her staffers.
Speaker 1: In baseball, the Mariners beat the Yankees seven three, the
Speaker 1: Mets beat the Nationals nine five, The Red Sox and
Speaker 1: Giants lost the Orioles and A's one Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalists and analysts,
Speaker 1: are more than a hundred twenty countries. Michael Barr and
Speaker 1: this is Bloomberg. Nathan all right, Michael, thank you, or
Speaker 1: just about at five forty nine on Wall Street Live
Speaker 1: from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak
Speaker 1: and Bloomberg Government Congressional reporter Jack Fitzpatrick is with us
Speaker 1: from our Bloomberg studios in Washington, d C. As we
Speaker 1: continued to my under developments around how speaker Nancy Pelosi's
Speaker 1: trip through Asia. As Michael bar just mentioned, the speaker
Speaker 1: is now in South Korea, but a lot of attention
Speaker 1: is still around Taiwan with China now conducting live fire
Speaker 1: missile drills. Jack, good morning. What is the reaction to
Speaker 1: what is happening between China and Taiwan. Now, well, it's
Speaker 1: a very significant reaction. As you said, there are the
Speaker 1: missile drills that China is conducting, uh that we haven't
Speaker 1: gotten exact update on how long they're going to go,
Speaker 1: but the original estimate was they were going to go
Speaker 1: through Sunday, So that could continue and continue to be
Speaker 1: a disruption uh, potentially for flights into Taiwan or out
Speaker 1: of Taiwan, another activity around there. And then of course
Speaker 1: the congressional reaction is also a significant one. There has
Speaker 1: been a pushback from the White House uh, towards a
Speaker 1: bill that would treat Taiwan as a non NATO ally
Speaker 1: of the US, essentially formalizing the relation and ship that's
Speaker 1: already there. Uh. That was supposed to get a committee
Speaker 1: vote in the Senate yesterday, that got pushed back, and
Speaker 1: if if they continue working on it, maybe even having
Speaker 1: to rewrite it is at least delayed because of White
Speaker 1: House concerns about the message that that would send, delayed
Speaker 1: until at least after the August recess for Congress. So
Speaker 1: politically some ramifications here, uh, And of course the Chinese
Speaker 1: response is a very significant one. What is the White
Speaker 1: House pushed back to this idea of designating Taiwan as
Speaker 1: a non NATO ally. I mean they've basically been treated
Speaker 1: that way for decades, right, yes, yeah, this would essentially
Speaker 1: formalize the relationship that has existed already. The issue seems
Speaker 1: to be, uh, the timing how we communicate that. That's
Speaker 1: not the only thing in the bill, it does seem
Speaker 1: to be the most objectionable part of it to the
Speaker 1: White House, there's a there are a few billion dollars,
Speaker 1: but four and a half billion dollars in security AID. Um.
Speaker 1: You know, it seems the issue is less the US
Speaker 1: relationship with Taiwan and the timing of putting forth legislation, uh,
Speaker 1: formalizing that on the heels of this trip by Nancy
Speaker 1: Pelosi to Taiwan at a time when China is uh,
Speaker 1: the Chinese government is pushing back as hard as possible
Speaker 1: on that and trying to send a message. It seems
Speaker 1: like this trip by Pelosi has sort of left some
Speaker 1: daylight between her and the White House. How much of
Speaker 1: a rift is there now between the Speaker and the President.
Speaker 1: There definitely seems to be some frustration, uh, you know,
Speaker 1: on on one hand, the President has been asked about
Speaker 1: this a while back. He said, Look, the military had
Speaker 1: said that they didn't think this was a good idea,
Speaker 1: that they had concerns. It may not just be a
Speaker 1: Nancy Pelosi and Joe Biden issue. It could be really
Speaker 1: between Pelosi and more the administration's security apparatus, the military
Speaker 1: leaders who had concerns about this. We don't necessarily have
Speaker 1: uh feedback that Biden himself is outraged by this necessarily,
Speaker 1: but there are a lot of people who had had
Speaker 1: a lot of chores to do. I guess you could say,
Speaker 1: based on Pelosi deciding to make this trip on her own,
Speaker 1: this was her decision. It was not really supported uh
Speaker 1: necessarily by the Biden administration, and that has um if not,
Speaker 1: created a rift. Clearly they've had to openly discuss their
Speaker 1: differences on how to approach this. All right, and we'll
Speaker 1: continue watching as a speaker Pelosi continues making her way
Speaker 1: through Asia Bloomberg Government Congressional reporter Jack Fitzpatrick, thanks for
Speaker 1: joining us to get us the very latest on that, Karen.
Speaker 1: But it's five fifty three on Wall Street. It's time
Speaker 1: for our Bloomberg Law Report. We get to the legal stories.
Speaker 1: We're watching this morning from Bloomberg's Joan Donneger. Republicans in
Speaker 1: Congress are seizing on the nonpartisan analysis of the Democrats
Speaker 1: Inflation Reduction Act to claim it would raise taxes on
Speaker 1: people making as little as ten thousand dollars a year.
Speaker 1: The plan includes a fifteen percent corporate minimum tax, which
Speaker 1: would not raise lower and middle class taxes, but could
Speaker 1: see companies past those costs. On x On Mobiles lost
Speaker 1: its fight to claim a one and a half billion
Speaker 1: dollar tax refund from the i R S and golfers
Speaker 1: led by Phil Michelson are suing the p G A
Speaker 1: charging at broke anti trust law by trying to crush
Speaker 1: the Saudi back to live golf tour. Bloomberg Law everything
Speaker 1: you need, all on one legal research platform, including guidance
Speaker 1: analysis and Bloomberg market Intelligence. Find out more at Bloomberg
Speaker 1: Law dot com. All right, Joan, thank you. Now. Another
Speaker 1: legal story that we're watching. It's the longest sentence yet
Speaker 1: for one of the capital rioters. A judge sentence sky Refit,
Speaker 1: a member of the Exist three per centers group, two
Speaker 1: more than seven years in prison for obstructing Congress and
Speaker 1: threatening his two children to keep them quiet. Refit's case
Speaker 1: attracted widespread attention because he was turned in by his son,
Speaker 1: who then became the government's star witness against him. For
Speaker 1: more Bloomberg, jun Grosso speaks to Jimmy Garoule, her professor
Speaker 1: had notre Dame law school. Raffit argued for no more
Speaker 1: than two years in prison, saying most, if not all,
Speaker 1: defendants who received longer sentences had committed far worse crimes
Speaker 1: like assaulting police officers. And it's true that a man
Speaker 1: who pleaded guilty to assaulting a police officer with a
Speaker 1: fire extinguisher got five years, which was the longest sentence
Speaker 1: before Refits. I think there are a couple of aggravating
Speaker 1: factors here with respect to Refit. One is that when
Speaker 1: he traveled from Texas to Washington, d C. To participate
Speaker 1: in the insurrection, he brought with him a a R
Speaker 1: fifteen style rifle and a forty caliber semi automatic handgun.
Speaker 1: She was armed with a weapon. And then he participated
Speaker 1: in obstruction of justice with respect to the threats directed
Speaker 1: at his children that if they cooperated, if they disclosed
Speaker 1: his activities to law enforcement, that they would be considered
Speaker 1: traders in his words, and everyone knows what happens to traders,
Speaker 1: you know, he stated, so if the implication was that
Speaker 1: he would kill his children, yeah, I think the judge
Speaker 1: took note of that. Prosecutors and defense lawyers were watching
Speaker 1: this trial to see how the obstruction charge would hold
Speaker 1: up because it's rarely used, but it's central to the
Speaker 1: cases that are coming up. Well. Instruction charge here is
Speaker 1: unique because the focuses on the congressional proceedings and the
Speaker 1: certification of the electoral votes, and this was an attempt
Speaker 1: to interfere with that process. Here, the evidence was compelling
Speaker 1: because was based largely on his own words communicated through
Speaker 1: tech messages, emails that clearly indicated what his intent was.
Speaker 1: I'm wondering if the judge was sending a message when
Speaker 1: she said a message to others when she said that
Speaker 1: his sentence would have been two years less if he
Speaker 1: had pleaded guilty. I think that's implicit. I think that
Speaker 1: there was certainly that message sent by the judge as
Speaker 1: well as a message being sent by the prosecution. Again,
Speaker 1: the prosecution was seeking a sentence of fifteen years in prison,
Speaker 1: and here, while the judge didn't post such a severe sense,
Speaker 1: it still was a significant sentense a little over seven years,
Speaker 1: and so I'm certain that other defendants, other individuals that
Speaker 1: were involved in the January six insurrection are taking note.
Speaker 1: I think the lawyers representing them are taking note. And
Speaker 1: the question is, you know, do we want to run
Speaker 1: that risk of going to trial, being convicted of multiple felonies,
Speaker 1: facing the prospect of spending several years in prison, or
Speaker 1: is the better course to inner a guilty plea, cooperate
Speaker 1: with the government and receive a much lighter sent Ye
Speaker 1: and as Jimmy ger Rule are professor at Notre Dame
Speaker 1: Law School speaking at the Bloomberg Student Grosso. Catch more
Speaker 1: of that interview, plus analysis of the latest legal news
Speaker 1: by subscribing to the Bloomberg Law Podcast. Are downloading the
Speaker 1: show at Bloomberg dot com slash podcasts. Attorneys can find
Speaker 1: exceptional legal research and business development tools at Bloomberg Law
Speaker 1: dot com and on the Bloomberg terminal at the Law
Speaker 1: Go and futures this morning are well. They're extending their
Speaker 1: gains now. SNP futures up six points, now futures up
Speaker 1: twenty seven and NASDAG futures are up twenty four and
Speaker 1: the ten year Treasury down six thirties seconds, yield two
Speaker 1: points seven two still ahead. On Bloomberg Day, Brea I
Speaker 1: can check on the business headlines and all the news
Speaker 1: you need to start your day, and this is Bloomberg