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Speaker 1: Live from the Bloomberg Interactive Berger Studios. This is Bloomberg

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Speaker 1: Daybreak for a Tuesday, July twelve two. Coming up this hour,

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Speaker 1: the Wall Street stock sell off continues this morning. The

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Speaker 1: A says the worst of the energy crisis maybe ahead.

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Speaker 1: We are tracking the latest developments in the Twitter elon

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Speaker 1: must saga, and the January six Committee focuses on far

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Speaker 1: right groups and what former President Trump knew about their plans.

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Speaker 1: Officials want people in New York City to mask up

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Speaker 1: again indoors. Plus, funeral services were held today for former

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Speaker 1: Japanese per Minister Rombe. I'm Michael bar More Ahead, I'm

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Speaker 1: time Stash Howard. Sports matchers are pitched the Mets to

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Speaker 1: a big win in Atlanta, and pied Delonso will be

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Speaker 1: in next week's home run Dirt. That's all trading ahead

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Speaker 1: on Bloomberg Daybreak on Bloomberg eleven three, on New York,

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Speaker 1: Bloomberg one, Washington, d C, Bloomberg one O six one, Boston,

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Speaker 1: Bloomberg nine sixties and Francisco Syrius XM one nine team,

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Speaker 1: and around the world on Bloomberg Radio dot com and

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Speaker 1: via the Bloomberg Business App. Good morning, I'm Nathan Hagar

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Speaker 1: and I'm Karen. Moscow and US futures are lower this morning.

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Speaker 1: We're coming up to six oh one on Wall Street,

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Speaker 1: and we checked the markets every fifteen minutes throughout the

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Speaker 1: trading day. On Bloomberg, U S and P futures down

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Speaker 1: about twenty eight points down, futures down two twenty three

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Speaker 1: and NASDAG features down two. The DAGs in Germany's down

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Speaker 1: eight tens of upper cent in the ten year treasury

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Speaker 1: ye thirty seconds, he'll two point nine one percent, and

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Speaker 1: they yield on the two year two point nine percent.

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Speaker 1: Nathan Well Karen futures are adding to yesterday's losses, which

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Speaker 1: saw all three major indexes fall. The hardest hit was

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Speaker 1: the NASTAC, which dropped two and a quarter percent. Still,

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Speaker 1: Alan zaffron Co, CEO at I e Q Capital says

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Speaker 1: growth stocks may be the place to invest. We are

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Speaker 1: looking forward at a slower growing economy, given what's happening

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Speaker 1: with the FED, given what's happened with a more heightened

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Speaker 1: inflationary environment, and so it is a setup for growth

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Speaker 1: stocks to outperform value stocks looking forward for quite some time.

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Speaker 1: I e Q Capital's Alan's afer and says the upcoming

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Speaker 1: earning season will be key for the markets well, Nathan.

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Speaker 1: The Wall streets sell off spread to Asia overnight. Both

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Speaker 1: Japan's and NK and Hong Kong's Hang Sang Index stramre

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Speaker 1: than one percent. I'm making the recap from Bloomberg Daybreak,

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Speaker 1: Asia anchor Brian Curtis in Hong Kong. Asian stocks fell

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Speaker 1: on concerns over the economic outlook, high inflation, and China's

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Speaker 1: issues with COVID. The text actors struggled, sparking weakness in Japan,

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Speaker 1: Hong Kong, and China. The dollar pushed higher, up near

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Speaker 1: the levels that we saw in the panic over COVID.

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Speaker 1: The euro has edged closer to parody, with the greenback

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Speaker 1: sapped by Europe's energy crisis and fears of recession. Treasuries gained,

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Speaker 1: taking the tenure yield well below three percent. Bonds also

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Speaker 1: rallied in Australia. You know, Hong Kong, Brian Curtis, Bloomberg Daybreak, Brian,

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Speaker 1: thank you. Oil is moving lower this morning. West Texas

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Speaker 1: Intermediates down two point three percent to a hundred one

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Speaker 1: dollar sixties extensive barrel. A COVID resurgence in China is

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Speaker 1: adding to concerns about a global economic slowdown. Fatty Barole,

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Speaker 1: executive director at the International Energy Agency, says the worst

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Speaker 1: of the energy crisis maybe ahead. The world has never

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Speaker 1: witnessed such a major energy crisis. It is interwoven by

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Speaker 1: many factors, including the geopolitics, and I believe we might

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Speaker 1: not have seen the worst of it yet. I e

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Speaker 1: A Executive director Fatty Barol says this winter in Europe

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Speaker 1: will be quote very very difficult. Well making investors are

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Speaker 1: closely watching for the release of June's Consumer Price Index tomorrow.

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Speaker 1: The White House is keeping an eye on it. You.

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Speaker 1: Press Secretary Karine john Pierre said the inflation data will

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Speaker 1: be highly elevated, but she also notes it's backward looking.

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Speaker 1: June's CPI data is already out of date because energy

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Speaker 1: prices have come down substantially this month and are expected

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Speaker 1: to fall further. White House smokes showman Karne John Pierre

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Speaker 1: says fooding gas prices continue to be impacted by the

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Speaker 1: war in Ukraine. Economist surveyed by Bloomberg expect June prices

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Speaker 1: to jump eight point eight percent compared to last year.

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Speaker 1: That would be a fresh forty year high. We're also

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Speaker 1: continuing to follow the saga between Elon Musk and Twitter,

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Speaker 1: Karen after shares fell more than eleven percent yesterday. Let's

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Speaker 1: get the latest live from Bloomberg's Rinity Young. Good morning, Grenita,

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Speaker 1: Good morning Nathan. Twitter lawyers are calling Elon Musk's termination

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Speaker 1: of his forty four billion dollar deal to buy the

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Speaker 1: company invalid and wrongful. They wrote it in a letter

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Speaker 1: to his attorneys, and it's a preliminary step in the

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Speaker 1: legal battle over the deal now. Musk agreed to buy

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Speaker 1: Twitter for fifty four dollars and twenty cents a share,

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Speaker 1: but he terminated the agreement because he believes Twitter misrepresented

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Speaker 1: user data, claiming the number of spambots on the platform

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Speaker 1: is much higher than the five percent the company has disclosed.

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Speaker 1: Bloomberg sources say Twitter aims to file suit early this week,

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Speaker 1: and the agreement specifies in any legal dispute over the

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Speaker 1: deal must be heard in Delaware, Live in New York.

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Speaker 1: I'm we need a Young Bloomberg day break. All right,

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Speaker 1: we need to thank you well. One other note on

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Speaker 1: the world's richest man this morning, Elon must says Donald

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Speaker 1: Trump should quote sail into the sunset and forget about

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Speaker 1: running for president again. In a series of tweets, must

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Speaker 1: claim that Florida Governor Ronde Santis would easily defeat President Biden.

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Speaker 1: He also told this one hundred million followers that there

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Speaker 1: was too much drama when former President Trump was in office.

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Speaker 1: Speaking of drama, Karen Testimony on last year's attack at

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Speaker 1: the US Capital rolls on in Washington and up next

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Speaker 1: the House January six committee will focus on the role

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Speaker 1: of extremists in the insurrection, Bloomberg said, Baxter has the story.

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Speaker 1: Committee member Jamie Raskin says it will continue building on

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Speaker 1: the case that Donald Trump had a hand and trying

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Speaker 1: to overthrow the results of the election and led to

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Speaker 1: the advance that day on January six, Raskin says, you

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Speaker 1: will focus on what's become known as Team Crazy, a

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Speaker 1: group of people around Trump, Sidney Pale, Rudy Giuliani among them.

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Speaker 1: Raskin says one of the meetings was unlike anything in

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Speaker 1: American history reap now. The committee has also announced postponement

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Speaker 1: a Thursday's hearing because it is getting so much new

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Speaker 1: information on White House ties in San Francisco. I'm at

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Speaker 1: Baxter Bloomberg Daybreak and thank you in corporate news this morning,

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Speaker 1: San Francisco based Gap has fired at CEO Sonya San

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Speaker 1: was dismissed after two and a half years on the job,

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Speaker 1: and we get the story from Bloomberg Shirley Pellett. The

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Speaker 1: apparel company is struggling to leave operational challenges behind it.

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Speaker 1: Chairman Bob Martin is taking over immediately as CEO on

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Speaker 1: an interim basis. GAP shares aren't down fifty percent this year,

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Speaker 1: compared with a thirty percent dropped for the S and

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Speaker 1: P five retailing index. Single took over in early twenty

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Speaker 1: right before Covid royaled the business and demand. Prior to that,

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Speaker 1: she was in charge of the company's old Navy brand

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Speaker 1: in New York. Charlie Pellett Bloomberg Daybreak. All right, Charlie,

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Speaker 1: thank you, and job cuts are coming at Microsoft. The

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Speaker 1: layoffs effect less than one percent of the workforce and

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Speaker 1: span a variety of groups in it in consulting and

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Speaker 1: customer and partner solutions. Microsoft says the cuts were not

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Speaker 1: spurred by economic factors. Back in May, the company also

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Speaker 1: slowed hiring it its windows and office groups. SMP futures

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Speaker 1: down twenty seven points. Nasdaq futures down seventy two straight

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Speaker 1: ahead your latest local headlines in the check of sports.

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Speaker 1: This is Bloomberg six oh seven on Wall Street where

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Speaker 1: at sixty nine degrees in Central Park. Problems headed to

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Speaker 1: New York Airport. There's an accidents southbound Rouge one at

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Speaker 1: Third Avenue. Details coming up in traffic. First Michael Barr

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Speaker 1: with what else is going on in New York and

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Speaker 1: around the world. New concerns about COVID. Michael, that is correct, Nathan.

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Speaker 1: The Department of Health is continuing to urge New York

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Speaker 1: City residents to wear masks in all public indoor settings

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Speaker 1: and in crowded areas outdoors because of an uptick in COVID.

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Speaker 1: It comes as the latest mcron variant B A point

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Speaker 1: five has become the dominant strain in the US. This

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Speaker 1: New Yorker says people got lacks about masking. I think

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Speaker 1: the city is the government's gonna have a hard time

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Speaker 1: getting people back into nest. Meanwhile, about two out of

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Speaker 1: three people in the US are fully vaccinated. Harvard Medical

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Speaker 1: School professor Dr John Brownstein says the evolution of variants

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Speaker 1: unresponsive to immunity from previous infections means we are likely

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Speaker 1: going to have to give up on the idea of

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Speaker 1: her community. You see this virus evolved quicker and quicker,

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Speaker 1: and we'll probably see another variant in the fall. So

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Speaker 1: the main question really is can divert really serious outcomes

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Speaker 1: like death and hospitalizations. Epidemiologist Dr John Brownstein is also

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Speaker 1: the Chief Innovation Officer at Boston Children's Hospital. Police in

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Speaker 1: New York City are looking for a man they say

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Speaker 1: is targeting homeless people in a string of stabbing attacks.

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Speaker 1: The latest victim a twenty eight year old woman attacked

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Speaker 1: early yesterday. Police say the same man can be seen

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Speaker 1: on surveillance cameras in all three locations where homeless people

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Speaker 1: have been stabbed in the last week. The first stabbing

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Speaker 1: was on July thirty four year old man resting on

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Speaker 1: a bench was stabbed and later died from his injuries.

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Speaker 1: Three days later, a fifty nine year old homeless man

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Speaker 1: was stabbed in the abdomen. Japanese people have bid their

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Speaker 1: final goodbye the former Prime minister Shinzo abe. Family funeral

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Speaker 1: was held at the Temple days after his assassination that

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Speaker 1: shocked the nation. Abbe, the country's longest serving prime minister,

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Speaker 1: was gunned down Friday during a campaign speech. The first

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Speaker 1: image from NASA's News Space Telescope is the deepest view

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Speaker 1: of the universe ever captured. The image from the James

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Speaker 1: Webb Space Telescope was unveiled at the White House President

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Speaker 1: Joe Biden. Light from the Oldest Galaxies, the oldest documented

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Speaker 1: light in the history of the universe, from over thirteen

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Speaker 1: billion let me say it again, thirteen billion years ago. Today,

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Speaker 1: four more galactic shots will be released from the telescope.

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Speaker 1: Global News twenty four hours a day on air and

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Speaker 1: on Baloomberg Quick Take, powered by more than journalists and

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Speaker 1: analysts and over a hundred twenty countries. Michael Barr and

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Speaker 1: this is Bloomberg. Nay, such a cool picture. To thank you, Michael.

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Speaker 1: Almost six ten on Wall Street. Let's check in with

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Speaker 1: John Stanshar for the Bloomberg Sports update. All right, Nathan,

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Speaker 1: the Mets pain max sers are forty three million dollars

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Speaker 1: a year. They're doing that for games like last night

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Speaker 1: in Atlanta. The Mets lead over the Braves once ten

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Speaker 1: and a half games at Dwindle to one and a half,

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Speaker 1: thanks to Atlanta's twenty nine and eight records. Since June one.

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Speaker 1: They've got the best offense of the National League, but

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Speaker 1: Scherzer shut them down, allowed only one hit over the

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Speaker 1: first six and as he struck out nine shots are in.

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Speaker 1: The Mets beat the Braves four to one, especially this

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Speaker 1: time of year. Uh. You know, they're a great team

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Speaker 1: over there, and you want to come out there and

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Speaker 1: play your best baseball. Uh. And you know when you

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Speaker 1: you can collect wins against them, and you know, it's

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Speaker 1: kind of a measuring stick win and you know it's

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Speaker 1: it's a good feeling. So um. You know, but like

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Speaker 1: you said, we're in when getting game here in July,

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Speaker 1: we gotta come out there and played, you know, great

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Speaker 1: months of Jove. It's got a home for Luiski or

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Speaker 1: Mayo rb I double from Pete Alonso. Pete will go

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Speaker 1: for the home run derby three. Pete, he's never not

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Speaker 1: one a winner the last two the Braves. Ronald the

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Speaker 1: Cuna Jr. Will be one of his competitors next one

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Speaker 1: day in l a lest of the Field. Not yet

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Speaker 1: No Yankees Tonight host the Cincinnati Reds as the British

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Speaker 1: Open gets ready to tee off Thursday. St Andrew's so

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Speaker 1: much talk about the new Live tour word that the

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Speaker 1: Anti Trust Division of the Justice Department is investigating whether

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Speaker 1: the PGA Tour used anti competitive practices against the Live Tour.

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Speaker 1: The PGA says it expected this and is confident there

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Speaker 1: was no wrongdoing. The guys who jumped to Live Dustin

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Speaker 1: Johnson Bryson, the Shambo Brooks captor. They are playing the

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Speaker 1: Open Championship, as is Tiger Woods, John Stashanward, Bloomberg Sports name,

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Speaker 1: thank you, John SMP futures down twenty two point, staff

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Speaker 1: features down, nastac features down forty five. The dollar continuing

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Speaker 1: to strengthen this morning. The euro hit parody against the

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Speaker 1: means for markets. Jane Foley, head of f X strat

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Speaker 1: just at Robbo Bank joins us. Next. This is Bloomberg

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Speaker 1: Bloomberg eleven three oh weather partly Sunday today, chance for

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Speaker 1: afternoon showers and storms. Some could be strong going up

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Speaker 1: to near ninety sunshine near ninety tomorrow. Right now sixty

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Speaker 1: nine degrees in Central Park. Markets, headlines and breaking news

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Speaker 1: twenty four hours a day at Bloomberg dot Com, The

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Speaker 1: Bloomberg Business Outland at Bloomberg Quick tape. He's a Bloomberg

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Speaker 1: business flash and I'm Karen Moscow. We have some headlines

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Speaker 1: crossing the Bloomberg Peloton Interactive to stop building its bikes

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Speaker 1: and treadmills at its own factories and rely solely on

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Speaker 1: partners for manufacturing, marking one of the most dramatic steps

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Speaker 1: he had to simplify its operations and reduce costs. Shares

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Speaker 1: her up in early training about eight tenths of a percent,

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Speaker 1: also watching shares of PepsiCo, raising his outlook for the

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Speaker 1: second time and as many quarters, saying it expects revenue

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Speaker 1: to grow ten percent this year as consumer demand remains resilient.

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Speaker 1: Those shares are up nine tenths of a percent this morning.

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Speaker 1: Futures this morning are falling, with SNP futures down about

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Speaker 1: twenty one points and down futures down a hundred eighty eight.

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Speaker 1: Nastack features down forty four, the decks in Germany down

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Speaker 1: seven tenths of up percent. The tend your treasury of

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Speaker 1: twenty thirty seconds yield two point nine one percent. That

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Speaker 1: yield on the two year is at three percent. Nieme

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Speaker 1: X screwed oil down two point six percent on two

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Speaker 1: dollars seventy three cents at a hundred one dollars thirty

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Speaker 1: six cents of barrel. Comex school. This it will change

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Speaker 1: is seventeen thirty two sixty announced. Now. The euro is

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Speaker 1: at one point zero zero one six against the dollar,

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Speaker 1: British found one point one eight four one and the

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Speaker 1: yen one thirty six point eight nine Bitcoin this morning

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Speaker 1: lower down three point six percent at nineteen thousand, six

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Speaker 1: hundred seventy dollars. That's a Bloomberg business flash. Now here's

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Speaker 1: Michael bar with more on what's going on around the world.

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Speaker 1: Michael Karen, thank you very much. Another public hearing today

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Speaker 1: behind the Congressional committee investigating the deadly January sixth insurrection.

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Speaker 1: Is hearing will focus on the involvement of white supremacists

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Speaker 1: hate groups in the attack on the Capitol and feature

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Speaker 1: testimony by former White House Consul Pat Saboloni, whom investigators

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Speaker 1: say collaborates former White House aid Cassidy Hutchinson. People in

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Speaker 1: Japan have bid their final goodbye to former Prime Minister

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Speaker 1: Shinzo Abe. Family funeral was held at the Temple days

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Speaker 1: after his assassination that shocked the nation. In baseball, the

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Speaker 1: Mets one the red sox, A's and giants lost. Global

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Speaker 1: news twenty four hours a day on air and on

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Speaker 1: Bloomberg Quick Take, powered by more than twenty hundred journalists

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Speaker 1: and analysts more than a hundred twenty countries. Michael Barr

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Speaker 1: and this is Bloomberg. Nathan all right, Michael, thank you.

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Speaker 1: It is six nineteen on Wall Street Live from the

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Speaker 1: Bloomberg Interactive Brokers studios. This is Bloomberg daybreaking as we

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Speaker 1: continue to see stocks sell off this morning. A lot

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Speaker 1: of this story has been the flights of safety. Bonds

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Speaker 1: are on the rise, and the dollar continues to strengthen.

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Speaker 1: Joining us more for more on the currency picture this morning,

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Speaker 1: where and by Jane Foley, Executive director, head of FX

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Speaker 1: Strategy at Robbo Bank. Jane, good morning. I know you've

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Speaker 1: probably been watching very closely for euro dollar parody. We

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Speaker 1: did reach it moments ago. It looks like the euro

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Speaker 1: is starting to bounce back just a bit against the dollar.

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Speaker 1: What does euro dollar parody mean for this market? Well,

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Speaker 1: it's a big psychological level and probably a big level

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Speaker 1: for the options market, but I think for the ECB

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Speaker 1: also clearly, if you have a weeker year, then that's

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Speaker 1: not particularly great for your inflation, particularly when you're importing

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Speaker 1: a lot of energy, and of course energy is what

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Speaker 1: this story is all about. Yesterday, as you'll be aware,

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Speaker 1: we had the taking down of the nord Stream wine

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Speaker 1: at one pipeline for cleaning, for maintenance, and politicians and

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Speaker 1: speculators alike. Oh, I mean that Putin won't turn that

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Speaker 1: pipeline back on a scheduled ininten days time, or at

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Speaker 1: least if he does, then maybe it flows through. It

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Speaker 1: will be lessons and then we'll have less gas in

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Speaker 1: Europe for the winter, and then we'll have recessions. So

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Speaker 1: really whether or not we can drop through parity very

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Speaker 1: much depends on that decision that pipeline and what happens

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Speaker 1: in ten days time with with Putin and and gas supply.

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Speaker 1: So there is this risk of recession a bigger concern

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Speaker 1: for the Eurozone than it is for the dollar, and

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Speaker 1: your for the US and your view, yes, I think

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Speaker 1: it is when we have been forecasting recession over this winter,

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Speaker 1: for for the for the eurosin for it for a while,

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Speaker 1: and I think perhaps more commentators have seen this. But

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Speaker 1: it's very much dependent on energy, because if you got

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Speaker 1: back just a couple of weeks ago we had the

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Speaker 1: German Economy Minister warning that we could see rationing in

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Speaker 1: in Germany and that would be amongst some of the

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Speaker 1: big industrialized, hungry energy hungry UH companies, and that would

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Speaker 1: be obviously to protect the gas supplies or the energy

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Speaker 1: supplies for for consumers. And clearly if you had someone German,

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Speaker 1: Germany's big energy being rationed in terms of energy, that's

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Speaker 1: what would bring out slower growth and the recession risk.

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Speaker 1: And you can translate that also to Italy, another big

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Speaker 1: industrialized economy here here in Europe, and recession then would

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Speaker 1: would highlight, as it always does in your highlight the

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Speaker 1: differences between the Eurozone countries and focus on on the

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Speaker 1: highly debted nations. And then we have more conversation around

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Speaker 1: fragmentation and also how big a window does the ECB

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Speaker 1: have too high interest rates? If if if there is

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Speaker 1: this risk of recession going into the winter. So that's

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Speaker 1: all combined into a negative scenario for for the euro

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Speaker 1: at a time when safe haven flow is really supporting

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Speaker 1: the dollar. Well, what are the options for the ECB

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Speaker 1: at this point? Could we see intervention sooner to try

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Speaker 1: to head off some of these concerns? Well, we're not

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Speaker 1: going to see ext intervention, but we could, we could

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Speaker 1: have intervention to try and store up confidence. And and

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Speaker 1: this is this is where it gets very, very tricky

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Speaker 1: for the ECB, because we have this higher inflation print.

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Speaker 1: We know that they want to eve into this era

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Speaker 1: of tighter monetary policy. They've already signaled that they'll be

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Speaker 1: hiking interest rates twenty five basis points this month, maybe

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Speaker 1: maybe to a fifty basis points in in September. But

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Speaker 1: at the same time they're worried about fagmentation. They want

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Speaker 1: to hold together market confidence and and that involves some

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Speaker 1: degree of protection for these highly indebted countries, but in

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Speaker 1: a way that goes against the grain. I mean, it's

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Speaker 1: a bit about saying, well, yes, you know, we want

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Speaker 1: to tighten monetary policy, but nobody can fail. And that

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Speaker 1: is perhaps a little bit counterintuitive, and certainly it means

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Speaker 1: it's a very tough line for the ECB to walk

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Speaker 1: in terms of getting this policy right. And because of

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Speaker 1: the complications for the ECB policy, again, you know, the

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Speaker 1: market is looking at this and worried about this, and

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Speaker 1: this is all weighing on the Euro. Only about thirty

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Speaker 1: seconds left here, Jane but does a stronger dollar effect

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Speaker 1: anything for the Fed? Well, it does. I mean a

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Speaker 1: stronger policy is part of the mode a tree tightening policy.

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Speaker 1: So you could say the more the dollar stensons, the

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Speaker 1: less they already have to do in terms of actual

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Speaker 1: policy measures. You could argue that a stronger dollars does

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Speaker 1: some of the heavy lifting already, so orders play into

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Speaker 1: how much the market is likely to forecast for interest

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Speaker 1: rate hikes during the cycle. Thanks for this, Jane, great

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Speaker 1: having you on with us this morning. Jane Folly, executive director,

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Speaker 1: head of FX Strategy at Robo Bank, where a lot

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Speaker 1: of the story this morning is euro dollar parody. Right now,

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Speaker 1: the euro is trading at one point zero zero one

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Speaker 1: seven against the dollar. We did hit parody between the

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Speaker 1: year on the dollar earlier this morning. SMP futures are

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Speaker 1: down nineteen points. Now futures are down two Nasdaq futures

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Speaker 1: are lower by forty points, and we continue to watch

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Speaker 1: inversion between two year and ten year yields. Right now,

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Speaker 1: the tenure is up thirty seconds, with the yield almost

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Speaker 1: two point nine one almost two point nine two percent.

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Speaker 1: I should say it is at two point nine two uh.

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Speaker 1: The two year yield is at three point zero zero percent.

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Speaker 1: This is Bloomberg Bloomberg eleven three oh weather partly sunny,

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Speaker 1: maybe some strong storms later this afternoon on our way

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Speaker 1: ups in your ninety degrees high, your nineties sunshine Tomorrow

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Speaker 1: could see an afternoon shower Thursday, right now seventy in

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Speaker 1: Central Park. Broadcasting live from the Bloomberg Interactive Broker Studio

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Speaker 1: in New York. Bloomberg E Loving Freedom to Washington, d C,

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Speaker 1: Bloomberg N one to Boston, Bloomberg one O six one

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Speaker 1: to San Francisco, Bloomberg nine sixt to the country Sirius

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Speaker 1: XM Channel one nineteen and around the globe the Bloomberg

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Speaker 1: Business and Bloomberg Radio dot com. This is Bloomberg Daybreak

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Speaker 1: six thirty on Wall Street. Good morning, I'm Nathan Hagar

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Speaker 1: and I'm Karen Moscow. We are just about three hours

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Speaker 1: away from the open of US trading. Kind to the

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Speaker 1: five things you need to know to start your day.

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Speaker 1: To you buy Interacted Brokers. Interactive Brokers charges Martin loan

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Speaker 1: rates from two point eight percent to three point eight percent,

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Speaker 1: rates subject to change. Learn more at ibk R dot com.

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Speaker 1: Slash Compare First U s futures are lower, adding to

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Speaker 1: yesterday's losses, which saw all three major indexes slump. Mike

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Speaker 1: vocal Sang, chief investment officer at cap Trust, says, at

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Speaker 1: this point, it's unclear how markets are pricing in a recession.

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Speaker 1: This recession has been so anticipated that it's far to

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Speaker 1: believe the market hasn't discounted most of it. Maybe the

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Speaker 1: surprise will be that it's that it's really really a

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Speaker 1: negative and difficult and deep recession. We don't think so.

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Speaker 1: It also could be that we don't really hit a recession.

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Speaker 1: We're like a stone skipping off the top of the

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Speaker 1: pond and moving on and back up again. That's the

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Speaker 1: question I think, and I think we're going to know

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Speaker 1: a lot more about that as we had into earning

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Speaker 1: season later this week and then the next couple of weeks.

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Speaker 1: Mike vocals Sang a capped Trust as forward guidance from

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Speaker 1: companies will be watched closely over the next few weeks. Well.

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Speaker 1: The Wall Street sell off spreading overseas. Karen Japan's NIEK

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Speaker 1: and Hong Kong's Hang Sang Index both felt more than

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Speaker 1: one percent overnight. I made concerns about inflation and COVID

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Speaker 1: and China oil is moving lower to West Texas Intermediates

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Speaker 1: down two and a half percent at a hundred one

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Speaker 1: dollars forty six cents of barrel. Investors are looking ahead

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Speaker 1: to the relays of June's Consumer price index tomorrow, Nathan,

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Speaker 1: and so is the White House Press Press Secretary Karine

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Speaker 1: Jean Pierre says prices continue to be impacted by the

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Speaker 1: war in Ukraine. We got here with the with the

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Speaker 1: increase of gas prices and food prices because of Mr.

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Speaker 1: Putin's war in Ukraine. White House sposum and Karine Jean

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Speaker 1: Pierre says the latest inflation data will be elevated, but

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Speaker 1: also notes it's backward looking now. We're still following the

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Speaker 1: saga between Elon Musk and Twitter this morning, Karen. After

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Speaker 1: showers fell eleven percent yesterday, Bloomberg's Rnita Young joins us Live. Ranita,

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Speaker 1: Good morning, Nathan. Twitter lawyers are calling Elon Musk's termination

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Speaker 1: of his forty four billion dollar deal to buy the

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Speaker 1: company invalid and wrongful. They wrote it in a letter

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Speaker 1: to his attorneys, and it's a preliminary step in the

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Speaker 1: legal battle over the deal. Musk agreed to buy Twitter

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Speaker 1: for fifty four dollars in twenty cents a share, but

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Speaker 1: he terminated the agreement, claiming the number of spambots on

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Speaker 1: the platform is much higher than the company disclosed. Bloomberg

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Speaker 1: sources say Twitter aims to file suit early this week.

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Speaker 1: Live in New York, I'm rened a young Bloomberg daybreak.

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Speaker 1: All right, we need to thank you and stitting with

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Speaker 1: corporate news. Job cuts are coming at Microsoft. Layoffs are

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Speaker 1: affecting less than one percent of its workforce, and the

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Speaker 1: company says cuts were not spurred by economic factors. That's

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Speaker 1: the five things that you need to know to start

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Speaker 1: your day, brought to you by Interactive Brokers. Straight ahead,

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Speaker 1: your latest local headlines, to check a sports and this

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Speaker 1: is Bloomberg. Thank you, Karen. Six Wall Street, sixty nine

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00:23:40,600 --> 00:23:43,960
Speaker 1: degrees in Central Park. Another accident southound west Side Highway

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00:23:44,000 --> 00:23:46,679
Speaker 1: at seventy second. We'll tell you more in traffic First,

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00:23:46,760 --> 00:23:48,919
Speaker 1: Michael Barr on what else is going on in New

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Speaker 1: York and around the world. Big day again on Capitol

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Speaker 1: Hill today, Michael, Yes, it is Nathan. The January six

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Speaker 1: Committee is preparing to highlight how violent extremist groups answered

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00:23:58,760 --> 00:24:02,480
Speaker 1: what one lawmaker says was Donald Trump's siren call to

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00:24:02,600 --> 00:24:06,000
Speaker 1: come to Washington and attack the capitol. The panelists said

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00:24:06,000 --> 00:24:09,560
Speaker 1: to convene today. The committee is probing whether extremist groups

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00:24:09,600 --> 00:24:12,920
Speaker 1: coordinated with White House allies ahead of the violence. Police

439
00:24:12,920 --> 00:24:14,680
Speaker 1: in New York City are looking for a man they

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00:24:14,720 --> 00:24:18,240
Speaker 1: say stabbed twenty eight year old homeless woman early Monday.

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00:24:18,359 --> 00:24:20,960
Speaker 1: They say the suspense is behind similar attacks in the

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00:24:21,000 --> 00:24:24,600
Speaker 1: past week, including one that was fatal. Police say they

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00:24:24,680 --> 00:24:27,040
Speaker 1: have video and photos of the same men at all

444
00:24:27,080 --> 00:24:31,119
Speaker 1: three locations. The latest omicron variant B A point five

445
00:24:31,400 --> 00:24:33,560
Speaker 1: has become the dominant strain in the U S. As

446
00:24:33,600 --> 00:24:38,080
Speaker 1: COVID cases increase, cities like New York and Los Angeles

447
00:24:38,240 --> 00:24:41,480
Speaker 1: are asking people to mask up indoors and in crowded areas.

448
00:24:41,760 --> 00:24:44,760
Speaker 1: This New Yorker says, though masking is not enough to

449
00:24:44,800 --> 00:24:48,520
Speaker 1: avoid COVID, people should remember even more important as washing

450
00:24:48,560 --> 00:24:53,240
Speaker 1: your hands. That's actually that's actually as important, if not

451
00:24:53,359 --> 00:24:56,320
Speaker 1: more important, than the masking. Health officials across the nation

452
00:24:56,400 --> 00:24:58,879
Speaker 1: say the US is still averaging about a hundred thousand

453
00:24:58,880 --> 00:25:02,320
Speaker 1: cases a day. A family funeral was held today for

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Speaker 1: Japan's former Prime Minister Shinzo Abe. Modicaid including a her

455
00:25:06,720 --> 00:25:10,040
Speaker 1: slowly drove by a fact crowd to the funeral. This

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00:25:10,080 --> 00:25:13,520
Speaker 1: man was among the crowd of mourners. Mr is one

457
00:25:13,560 --> 00:25:17,960
Speaker 1: of the greatest uh prime minister in the Japanese history,

458
00:25:18,400 --> 00:25:20,879
Speaker 1: and a lot of people look up to him, a

459
00:25:20,960 --> 00:25:24,440
Speaker 1: lot of people, and we're so sad that we lost

460
00:25:24,480 --> 00:25:28,320
Speaker 1: in only as a widow. Other close family members and

461
00:25:28,400 --> 00:25:32,560
Speaker 1: senior party leaders, including Prime Minister Fumio Kashita, attended the service.

462
00:25:33,000 --> 00:25:35,720
Speaker 1: The chief Judge of New York's Court of Appeals says

463
00:25:35,760 --> 00:25:38,320
Speaker 1: she will step down after more than six years residing

464
00:25:38,359 --> 00:25:41,800
Speaker 1: at the state's highest court. Judge Janet D. Ferriori, who

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00:25:41,840 --> 00:25:44,320
Speaker 1: was sixty six, says she will leave at the end

466
00:25:44,320 --> 00:25:46,280
Speaker 1: of August and move on to the next chapter of

467
00:25:46,320 --> 00:25:49,280
Speaker 1: her professional life. There's a shake up in the lead

468
00:25:49,440 --> 00:25:53,280
Speaker 1: role with the Broadway show Funny Girl Show, says actress

469
00:25:53,359 --> 00:25:55,920
Speaker 1: Liam Michelle will take over as Fanny Bryce in early

470
00:25:55,960 --> 00:25:59,960
Speaker 1: September after Benie Feldstein's abrupt announcement that she would be

471
00:26:00,080 --> 00:26:04,040
Speaker 1: leaving the role earlier than expected. Feldstein on Instagram says

472
00:26:04,080 --> 00:26:07,480
Speaker 1: that a dream run as Brice would end on July

473
00:26:08,040 --> 00:26:11,040
Speaker 1: one instead of late September. Global News twenty four hours

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00:26:11,040 --> 00:26:13,320
Speaker 1: a day on air, end on Bloomberg Quick Take powered

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00:26:13,320 --> 00:26:15,560
Speaker 1: by more than twenty seven hundred journalists analysts more than

476
00:26:15,600 --> 00:26:19,760
Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. Alright, Michael,

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00:26:19,800 --> 00:26:26,480
Speaker 1: thank you. Almost six thirty six on Wall Street. John

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00:26:26,520 --> 00:26:29,080
Speaker 1: stash Hour has the Bloombridge Sports Update. All right, Nathan.

479
00:26:29,080 --> 00:26:31,440
Speaker 1: The Nets went down to Atlanta well aware that fifteen

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00:26:31,520 --> 00:26:34,200
Speaker 1: of their last seventy six games are against the team

481
00:26:34,280 --> 00:26:36,600
Speaker 1: that's not only defending World Series CHAMCE, but the hottest

482
00:26:36,600 --> 00:26:39,840
Speaker 1: team in MLB nine and eight since June one, met

483
00:26:39,920 --> 00:26:42,040
Speaker 1: still in first place with their lead over the on

484
00:26:42,240 --> 00:26:45,040
Speaker 1: rushing Braves was just a game and a half, smallest

485
00:26:45,080 --> 00:26:48,160
Speaker 1: since mid April. Thankfully for the series opener. The Mets

486
00:26:48,160 --> 00:26:50,159
Speaker 1: add Max shirts are on the map. Pitch seven is

487
00:26:50,200 --> 00:26:52,600
Speaker 1: allowed only one run, three hits struck out nine. Mets

488
00:26:52,600 --> 00:26:55,000
Speaker 1: beat the Braves four to one. S shows are two

489
00:26:55,040 --> 00:26:57,960
Speaker 1: starts since missing seven weeks, and he's only allowed one run.

490
00:26:58,320 --> 00:27:00,760
Speaker 1: He was asked the advice he gave to his younger

491
00:27:00,920 --> 00:27:03,200
Speaker 1: teammates playoff to John, you know, I mean you get

492
00:27:03,200 --> 00:27:05,520
Speaker 1: a drawn playoff and don't be don't don't be a

493
00:27:05,600 --> 00:27:07,720
Speaker 1: shy away from it, bringing on this is what you

494
00:27:07,760 --> 00:27:10,000
Speaker 1: play the game for. You want to be any situations.

495
00:27:10,040 --> 00:27:11,840
Speaker 1: You want to be facing the best teams in the league.

496
00:27:12,080 --> 00:27:14,240
Speaker 1: You want to be in races. You gotta rise to

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00:27:14,240 --> 00:27:17,600
Speaker 1: the occasion and match it. Um. So they have a uh,

498
00:27:17,680 --> 00:27:20,119
Speaker 1: you know, atmosphere like this tonight. Uh playing in this

499
00:27:20,160 --> 00:27:22,679
Speaker 1: type of environment, it's only good to you know, continue

500
00:27:22,720 --> 00:27:25,200
Speaker 1: playing this and uh, you know, and feed off. And

501
00:27:25,280 --> 00:27:27,640
Speaker 1: Peter Alonzo wanted four Mets name to play next week's

502
00:27:27,680 --> 00:27:29,240
Speaker 1: All Star Game in l a and Alonso and ounce

503
00:27:29,280 --> 00:27:31,480
Speaker 1: Hill also be in the home run Dury next Monday.

504
00:27:31,520 --> 00:27:34,439
Speaker 1: He's won the last two Yankees only once this season,

505
00:27:34,480 --> 00:27:36,120
Speaker 1: have lost three games in a row. Off the back

506
00:27:36,200 --> 00:27:38,560
Speaker 1: to back Blane leads in Boston. The Yanks home tonight

507
00:27:38,880 --> 00:27:41,399
Speaker 1: to play the Cincinnati Reds. The NBA expected to make

508
00:27:41,440 --> 00:27:44,199
Speaker 1: official that the play in tourney that's been used the

509
00:27:44,240 --> 00:27:46,800
Speaker 1: last two seasons will become a permanent part of the

510
00:27:46,880 --> 00:27:50,359
Speaker 1: NBA postseason. Four teams in each conference vying for those

511
00:27:50,480 --> 00:27:53,040
Speaker 1: last two spots for the first map. Then for Broncos

512
00:27:53,080 --> 00:27:55,159
Speaker 1: have new owners. It was revealed that part of the

513
00:27:55,160 --> 00:27:58,760
Speaker 1: new ownership group from a Nashville security advisor, Conda Lisa Runs,

514
00:27:58,960 --> 00:28:01,680
Speaker 1: John stash Awart bloom Bird Sports Movement. Al right, John,

515
00:28:01,720 --> 00:28:04,439
Speaker 1: thank you, six on Wall Street Time. Now to take

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00:28:04,480 --> 00:28:06,000
Speaker 1: a look at stock, some of the names moving in

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00:28:06,040 --> 00:28:08,640
Speaker 1: the pre market, lots going on Bloomberg Radio, on TV

518
00:28:08,760 --> 00:28:12,200
Speaker 1: Markets correspondent Creety GOOFDA. Especially for some corporate names. Where

519
00:28:12,200 --> 00:28:14,160
Speaker 1: you want to start, I mean, let's start with Gap

520
00:28:14,200 --> 00:28:16,040
Speaker 1: here because this is a big one UM that I

521
00:28:16,040 --> 00:28:17,640
Speaker 1: think is going to be moving the index. That comes

522
00:28:17,640 --> 00:28:21,640
Speaker 1: into a major theme. Remember, retailers broadly are struggling. Consumer

523
00:28:21,720 --> 00:28:25,600
Speaker 1: sentiment broadly is low. So Gap actually came out and

524
00:28:25,640 --> 00:28:28,800
Speaker 1: they fired their CEO forget this, failing to rescue the

525
00:28:28,800 --> 00:28:31,439
Speaker 1: struggling retailer. This is important as we talked about rising

526
00:28:31,480 --> 00:28:34,080
Speaker 1: costs UM and a lot of these retailers having to

527
00:28:34,160 --> 00:28:37,560
Speaker 1: give away essentially a lot of their merchandise, really putting

528
00:28:37,560 --> 00:28:39,520
Speaker 1: a lot of them more on the clearance racks, which

529
00:28:39,720 --> 00:28:41,240
Speaker 1: a lot more sales just to get rid of some

530
00:28:41,360 --> 00:28:44,560
Speaker 1: of that inventory, um, even if it's shipping them across

531
00:28:44,680 --> 00:28:46,880
Speaker 1: locations once again, just to get rid of them. What

532
00:28:46,920 --> 00:28:50,120
Speaker 1: that does, though, is in addition to decreasing the inventory,

533
00:28:50,160 --> 00:28:52,800
Speaker 1: it also hurts their bottom line. So it is kind

534
00:28:52,800 --> 00:28:56,160
Speaker 1: of a double edged sword there. Nevertheless, it didn't quite

535
00:28:56,160 --> 00:28:59,400
Speaker 1: work out for GAP. GAP in that firing um also

536
00:29:00,080 --> 00:29:02,920
Speaker 1: moved lower. They also, by the way, talked about their

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00:29:02,960 --> 00:29:05,360
Speaker 1: net sales and said that Nathan, I'm just gonna read

538
00:29:05,360 --> 00:29:06,720
Speaker 1: this too because I don't want to get these numbers

539
00:29:06,720 --> 00:29:09,400
Speaker 1: down wrong. Their second quarter net sales are down about

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00:29:09,680 --> 00:29:12,240
Speaker 1: high single digit range. So to see that kind of

541
00:29:12,320 --> 00:29:14,240
Speaker 1: drop in the second quarter net sales is a pretty

542
00:29:14,240 --> 00:29:16,720
Speaker 1: big deal. GPS is your ticker for GAP. It's down

543
00:29:17,000 --> 00:29:19,520
Speaker 1: about six percent this morning, Nathan. But we should also

544
00:29:19,560 --> 00:29:23,360
Speaker 1: talk about Peloton, another major company story. P t O

545
00:29:23,520 --> 00:29:26,920
Speaker 1: n is your ticker. Shares are moving lower. Peloton is

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00:29:26,960 --> 00:29:29,960
Speaker 1: stopping their in house bike production as part of their

547
00:29:30,000 --> 00:29:32,440
Speaker 1: big turnaround. Now this is a really big deal because

548
00:29:32,600 --> 00:29:35,600
Speaker 1: as we talked about Peloton, just all of the issues

549
00:29:35,640 --> 00:29:37,400
Speaker 1: that it's had. It wasn't too long ago that we

550
00:29:37,440 --> 00:29:41,240
Speaker 1: saw the commercial and and the kind of legal battle

551
00:29:41,280 --> 00:29:43,560
Speaker 1: there um that that has been having to deal with.

552
00:29:43,560 --> 00:29:46,239
Speaker 1: But remember this was a major pandemic trade. A lot

553
00:29:46,240 --> 00:29:48,680
Speaker 1: of people were exercising at home. A lot of people said, well,

554
00:29:48,720 --> 00:29:51,280
Speaker 1: Peloton buying Pelton shares, it's a no brainer. Until you

555
00:29:51,280 --> 00:29:53,880
Speaker 1: saw this complete reversal in the stock price. Nevertheless, that

556
00:29:53,880 --> 00:29:57,200
Speaker 1: move continues down one point four percent. In the environment

557
00:29:57,200 --> 00:30:00,840
Speaker 1: where you have consumers struggling broadly and retailer struggling broadly,

558
00:30:00,920 --> 00:30:03,800
Speaker 1: pelotons are still seen as a luxury product. So if

559
00:30:03,800 --> 00:30:06,360
Speaker 1: you're talking about recession, if you're talking about inflation, if

560
00:30:06,440 --> 00:30:08,360
Speaker 1: you do you really want to spend your money on

561
00:30:08,400 --> 00:30:10,840
Speaker 1: a peloton. At least that's the fear driving those shares

562
00:30:10,920 --> 00:30:13,040
Speaker 1: right now and driving their turnaround plans. So see them

563
00:30:13,120 --> 00:30:15,600
Speaker 1: stop that in house productions really speaks to the fact

564
00:30:15,640 --> 00:30:17,960
Speaker 1: that there's a little bit of pain in the cost

565
00:30:18,040 --> 00:30:21,560
Speaker 1: story there, and just speaking about real quickly in terms

566
00:30:21,600 --> 00:30:25,000
Speaker 1: of costs. You just got earnings from PepsiCo, and those

567
00:30:25,040 --> 00:30:27,080
Speaker 1: look pretty good. They do look pretty good. And this

568
00:30:27,160 --> 00:30:29,080
Speaker 1: is a good thing to keep in mind because PepsiCo

569
00:30:29,200 --> 00:30:31,800
Speaker 1: is not just the maker of pepsi obviously, but they

570
00:30:31,800 --> 00:30:34,760
Speaker 1: make their massive snack brand. They're a massive food brand

571
00:30:34,840 --> 00:30:36,880
Speaker 1: as well, and remember there's that really fun ratio of

572
00:30:36,920 --> 00:30:40,000
Speaker 1: snacks versus drinks uh during during the pandemic. But actually

573
00:30:40,120 --> 00:30:42,640
Speaker 1: race their outlook for the second time this year saying

574
00:30:42,640 --> 00:30:46,120
Speaker 1: they're expecting their revenue to grow ten percent. They're actually

575
00:30:46,120 --> 00:30:49,720
Speaker 1: saying consumer demand remains Brazilian. Remember how much are you spending?

576
00:30:49,760 --> 00:30:51,280
Speaker 1: Are you spending as much on a peloton? Are you

577
00:30:51,280 --> 00:30:53,400
Speaker 1: spending as much on snacks and drinks there? And that's

578
00:30:53,400 --> 00:30:57,040
Speaker 1: why they call it a staples versus discretionary. Thank you

579
00:30:57,200 --> 00:31:00,760
Speaker 1: creative Bloomberg Radio TV Markets correspondent ready cooped up with

580
00:31:00,880 --> 00:31:02,840
Speaker 1: us this morning on a day where it looks like

581
00:31:02,840 --> 00:31:07,120
Speaker 1: we're gonna see more losses for stocks. SMP futures down

582
00:31:07,160 --> 00:31:11,120
Speaker 1: twenty four point, STOUT futures down two seventeen, NASTAC futures

583
00:31:11,200 --> 00:31:14,000
Speaker 1: lower by fifty five points ten. Your treasury yield two

584
00:31:14,000 --> 00:31:17,800
Speaker 1: point yield on the two year three point zero one.

585
00:31:18,320 --> 00:31:24,560
Speaker 1: This is Bloomberg Bloomberg eleven three oh weather. Could see

586
00:31:24,600 --> 00:31:27,480
Speaker 1: some strong thunderstorms today as we had up near ninety degrees,

587
00:31:27,560 --> 00:31:30,760
Speaker 1: will be near nine tomorrow under sunshine camera at an

588
00:31:30,800 --> 00:31:33,880
Speaker 1: afternoon shower by Thursday. Right now seventy one in Central

589
00:31:33,880 --> 00:31:40,320
Speaker 1: Park Markets headlines and breaking news twenty four hours a

590
00:31:40,400 --> 00:31:43,440
Speaker 1: day at Bloomberg dot Com, the Bloomberg Business at and

591
00:31:43,600 --> 00:31:53,000
Speaker 1: at Bloomberg Quicktake. This is a Bloomberg Business flash and

592
00:31:53,040 --> 00:31:55,960
Speaker 1: I'm kmerin Moscow. Futures are lower this morning. We go

593
00:31:56,040 --> 00:31:58,560
Speaker 1: to the first word breaking news dance for today's morning call,

594
00:31:58,640 --> 00:32:01,760
Speaker 1: and here's Bill Maloney, Bill morning, and good morning, Karen.

595
00:32:01,800 --> 00:32:03,800
Speaker 1: That's right. US futures are in the red right now,

596
00:32:03,800 --> 00:32:06,280
Speaker 1: a deaf You just down two nine points. Subs dropped

597
00:32:06,280 --> 00:32:08,600
Speaker 1: twenty three one. That is that futures are off by

598
00:32:08,640 --> 00:32:11,520
Speaker 1: forty four the US ten year old at two point

599
00:32:11,600 --> 00:32:14,560
Speaker 1: nine two percent, Gold is little changed, Oil trading lower,

600
00:32:14,600 --> 00:32:17,880
Speaker 1: and Bitcoin is under pressure, falling three point six percent.

601
00:32:18,200 --> 00:32:21,000
Speaker 1: Japan dropped one point eight percent overnight, while European markets

602
00:32:21,000 --> 00:32:23,280
Speaker 1: are also in the red this morning and back in

603
00:32:23,320 --> 00:32:26,360
Speaker 1: the US, nothing to report on the economic front after

604
00:32:26,360 --> 00:32:28,360
Speaker 1: about US to night. It was reported that Bill Ackman

605
00:32:28,400 --> 00:32:31,360
Speaker 1: will wind down his back after not finding a target

606
00:32:31,400 --> 00:32:35,080
Speaker 1: company and regarding earnings this morning, Pepsi boosted its outlook.

607
00:32:35,320 --> 00:32:38,320
Speaker 1: In other news, Goldman Sacks ditched its bullish copper stands,

608
00:32:38,360 --> 00:32:41,680
Speaker 1: and Peloton was stopped building its bikes and treadmills at

609
00:32:41,680 --> 00:32:44,680
Speaker 1: its own factories. Wrapping things up. Union Pacific was cut

610
00:32:44,680 --> 00:32:46,800
Speaker 1: to the neutral at JP Morgan Americans Press cut the

611
00:32:46,800 --> 00:32:50,200
Speaker 1: equat Morgan Stanley and in video and Andy Price targets

612
00:32:50,200 --> 00:32:53,160
Speaker 1: were cut over at key Bank Live from the first

613
00:32:53,280 --> 00:32:56,000
Speaker 1: breaking new statscom Bill Maloney, Karen, all right, Bill, thank you,

614
00:32:56,080 --> 00:32:58,160
Speaker 1: And just a quick check of those shares this morning.

615
00:32:58,160 --> 00:33:00,440
Speaker 1: You mentioned Peloton down one point to were sent in

616
00:33:00,520 --> 00:33:03,520
Speaker 1: early trading. PepsiCo is at one point six percent. And

617
00:33:03,600 --> 00:33:06,200
Speaker 1: to hear live breaking news over your Bloomberg types, squawk

618
00:33:06,240 --> 00:33:08,720
Speaker 1: on your terminal, ascue you a w K. That's a

619
00:33:08,760 --> 00:33:11,400
Speaker 1: Bloomberg business flash. Now here's Michael Barr with more on

620
00:33:11,440 --> 00:33:14,040
Speaker 1: what's going on around the world. Michael, Karen, thank you

621
00:33:14,120 --> 00:33:17,480
Speaker 1: very much. The January six Panel holds another public hearing today.

622
00:33:17,600 --> 00:33:21,080
Speaker 1: It is expected to explore whether extremist groups worked in

623
00:33:21,160 --> 00:33:24,280
Speaker 1: coordination with the White House allies and an attempt to

624
00:33:24,320 --> 00:33:27,960
Speaker 1: overthrow the result of the presidential election through a political

625
00:33:28,000 --> 00:33:32,400
Speaker 1: coup and the mobilization of an armed, violent mob. President

626
00:33:32,440 --> 00:33:34,760
Speaker 1: Biden is set to meet with Mexico's president at the

627
00:33:34,760 --> 00:33:38,479
Speaker 1: White House today Later. President Biden is looking for cheaper

628
00:33:38,520 --> 00:33:41,480
Speaker 1: oil prices on his Middle East trip this week, which

629
00:33:41,520 --> 00:33:44,760
Speaker 1: will include a stop in Saudi Arabia. In baseball, the

630
00:33:44,760 --> 00:33:48,640
Speaker 1: Mets won, the Red Sox, A's and Giants lost. Global

631
00:33:48,720 --> 00:33:50,960
Speaker 1: News twenty four hours a day on air and on

632
00:33:51,040 --> 00:33:54,840
Speaker 1: Bloomberg Quicktake, powered by more than twenty seven under journalist

633
00:33:54,880 --> 00:33:58,080
Speaker 1: an analysts more than twenty countries. I'm Michael Varen. This

634
00:33:58,280 --> 00:34:01,200
Speaker 1: is Bloomberg, Karon alright, Macha of our Thank you sixty

635
00:34:01,280 --> 00:34:03,440
Speaker 1: nine on Wall Street. We turned to news and science

636
00:34:03,440 --> 00:34:05,720
Speaker 1: and technology now with the Bloomberg and j I T.

637
00:34:05,920 --> 00:34:09,200
Speaker 1: Stemm report. Ronzi U buy New Jersey Institute of Technology

638
00:34:09,280 --> 00:34:12,359
Speaker 1: ranked a top fifty national public university by US News

639
00:34:12,440 --> 00:34:15,120
Speaker 1: and World Report and number fourteen in the nation on

640
00:34:15,200 --> 00:34:18,000
Speaker 1: Money's Best Colleges List. Learned more at n j I

641
00:34:18,120 --> 00:34:22,000
Speaker 1: T dot Edu and here's what's making news and science, technology, engineering,

642
00:34:22,040 --> 00:34:25,120
Speaker 1: and math. In Shanghai, there are fears the city is

643
00:34:25,160 --> 00:34:27,680
Speaker 1: headed back into lockdown. A little more than five weeks

644
00:34:27,719 --> 00:34:31,000
Speaker 1: after exiting a two month or deal, the city reported

645
00:34:31,040 --> 00:34:34,120
Speaker 1: fifty nine new coronavirus cases on Monday. That's the fourth

646
00:34:34,200 --> 00:34:37,080
Speaker 1: day in a row that case numbers have been above fifty.

647
00:34:37,200 --> 00:34:39,920
Speaker 1: The detection of a new sub strain of the omicron

648
00:34:40,000 --> 00:34:43,120
Speaker 1: variant triggered two more rounds of mass testing in Shanghai.

649
00:34:43,880 --> 00:34:46,400
Speaker 1: It's the first time human beings have seen a distant

650
00:34:46,440 --> 00:34:49,879
Speaker 1: galaxy cluster, as it appeared more than four billion years

651
00:34:49,880 --> 00:34:53,440
Speaker 1: ago in such a vivid detail. President Biden unveiled one

652
00:34:53,480 --> 00:34:56,080
Speaker 1: of the first full color images from the James Wood

653
00:34:56,320 --> 00:34:59,799
Speaker 1: Space Telescope. The telescope was sent into orbit roughly a

654
00:35:00,000 --> 00:35:03,879
Speaker 1: million miles from Earth late last year, and Amazon kicking

655
00:35:03,880 --> 00:35:06,759
Speaker 1: off its annual Prime Day sales event. The company has

656
00:35:06,800 --> 00:35:09,640
Speaker 1: long used the two day event allure people to its

657
00:35:09,640 --> 00:35:12,719
Speaker 1: Prime membership, for which Amazon recently raised the price to

658
00:35:12,800 --> 00:35:15,040
Speaker 1: a hundred thirty nine dollars a year from a hundred

659
00:35:15,080 --> 00:35:18,239
Speaker 1: nineteen dollars a year. Amazon does not disclose total Prime

660
00:35:18,360 --> 00:35:21,279
Speaker 1: Day sales. The growth estimates for last year's event had

661
00:35:21,400 --> 00:35:24,840
Speaker 1: ranged from seven to nine percent, And as the Bloomberg

662
00:35:24,880 --> 00:35:28,200
Speaker 1: and j I. K Stem report Nathan Okay, Karen, thank you.

663
00:35:28,280 --> 00:35:31,040
Speaker 1: We are live from the Bloomberg Interactive Broker Studios, where

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00:35:31,040 --> 00:35:32,840
Speaker 1: it's six fifty on Wall Street. Time to how to

665
00:35:32,920 --> 00:35:35,080
Speaker 1: check what's going on in d C. Where some of

666
00:35:35,080 --> 00:35:38,120
Speaker 1: the top stories include the White House warning tomorrow's inflation

667
00:35:38,200 --> 00:35:41,960
Speaker 1: data will be highly elevated, the January six Committee focusing

668
00:35:41,960 --> 00:35:46,080
Speaker 1: on what Trump knew about extremist groups, and the President

669
00:35:46,120 --> 00:35:50,840
Speaker 1: to talk migration and security with his counterpart from Mexico.

670
00:35:50,960 --> 00:35:54,520
Speaker 1: Let's bring back Joe. Matthew Bloomberg, Washington Correspondent host of

671
00:35:54,600 --> 00:35:58,360
Speaker 1: sound on here on Bloomberg Radio, Joe. As we mentioned,

672
00:35:58,400 --> 00:36:00,719
Speaker 1: the White House is trying to get ahead of tomorrow's

673
00:36:00,719 --> 00:36:03,640
Speaker 1: CPI data, but that begs the question, what is the

674
00:36:03,640 --> 00:36:08,080
Speaker 1: White House doing to get ahead of inflation? Well, at

675
00:36:08,080 --> 00:36:11,319
Speaker 1: this point, uh, it's it's all about messaging, because the

676
00:36:11,360 --> 00:36:14,040
Speaker 1: White House has really tried to swing at the ball

677
00:36:14,080 --> 00:36:16,120
Speaker 1: as many times as it can and just hasn't really

678
00:36:16,120 --> 00:36:17,640
Speaker 1: been able to get to this issue. That's why they

679
00:36:17,719 --> 00:36:21,120
Speaker 1: remind us Nathan every day that this is a global phenomenon.

680
00:36:21,160 --> 00:36:23,720
Speaker 1: They say, in fact, inflation is even worse in other countries.

681
00:36:23,760 --> 00:36:27,200
Speaker 1: But of course this is an issue, a major problem

682
00:36:27,440 --> 00:36:29,960
Speaker 1: for Democrats and for President Biden. As we get closer

683
00:36:30,000 --> 00:36:33,920
Speaker 1: to November, they're saying that the CPI will be highly

684
00:36:33,960 --> 00:36:36,160
Speaker 1: elevated tomorrow. They're just trying to take the sting out

685
00:36:36,200 --> 00:36:37,839
Speaker 1: of this. And they did the same thing a month ago,

686
00:36:38,360 --> 00:36:40,080
Speaker 1: saying that look, it's not gonna look good, it's not

687
00:36:40,120 --> 00:36:42,279
Speaker 1: gonna be pretty that headline number, but take a look

688
00:36:42,320 --> 00:36:45,480
Speaker 1: at that core number. And then they tell us it's

689
00:36:45,520 --> 00:36:49,400
Speaker 1: already out of date anyway, because of course all economic

690
00:36:49,480 --> 00:36:52,319
Speaker 1: data is backward looking. But that is the point here.

691
00:36:52,360 --> 00:36:55,239
Speaker 1: Pay no attention to the man behind the curtain, the

692
00:36:55,280 --> 00:36:58,319
Speaker 1: next report might be better. Well, you mentioned that the

693
00:36:58,320 --> 00:37:00,279
Speaker 1: White House has taken a lot of swings at this.

694
00:37:00,360 --> 00:37:04,920
Speaker 1: We've heard talk about a potential cap on Russian oil prices,

695
00:37:04,960 --> 00:37:09,839
Speaker 1: looking to potentially take action on Chinese tariffs, the economic

696
00:37:09,920 --> 00:37:14,600
Speaker 1: package that's under discussion in the Senate. UH, what of

697
00:37:14,680 --> 00:37:17,560
Speaker 1: any of these have any chances of moving forward well

698
00:37:17,760 --> 00:37:21,560
Speaker 1: or or having an impact? And on Thursday, Jake Sullivan, UH,

699
00:37:21,640 --> 00:37:24,200
Speaker 1: we'll be talking as well about efforts that have been

700
00:37:24,200 --> 00:37:26,840
Speaker 1: taken a since the National Security Advisory, efforts that have

701
00:37:26,880 --> 00:37:31,120
Speaker 1: been taken UH to UH to increase competition, smooth out

702
00:37:31,120 --> 00:37:34,520
Speaker 1: the supply chain. This is a conversation that's been going

703
00:37:34,560 --> 00:37:36,680
Speaker 1: on since way before the war in Ukraine. This is

704
00:37:36,719 --> 00:37:39,920
Speaker 1: something that comes from UH, from COVID, of course, and

705
00:37:40,000 --> 00:37:43,320
Speaker 1: from the heating of the economy based on the stimulus

706
00:37:43,320 --> 00:37:46,279
Speaker 1: that that was past coming out of the pandemic. It's

707
00:37:46,440 --> 00:37:49,319
Speaker 1: very difficult to to to try to get your arms

708
00:37:49,320 --> 00:37:52,040
Speaker 1: around this as a political agency here in the sense

709
00:37:52,120 --> 00:37:53,960
Speaker 1: that that that we're talking about the White House or

710
00:37:54,000 --> 00:37:57,360
Speaker 1: Congress for that matter. The markets are likely to handle this,

711
00:37:57,440 --> 00:38:00,600
Speaker 1: and that is why President Biden is had it in part,

712
00:38:00,680 --> 00:38:02,759
Speaker 1: at least for the Middle East. When he sits down

713
00:38:03,360 --> 00:38:06,759
Speaker 1: with oil producers in Saudi Arabia on Friday, he's gonna

714
00:38:06,760 --> 00:38:09,680
Speaker 1: be asking them to start pumping more. The question is

715
00:38:09,680 --> 00:38:12,440
Speaker 1: would it actually have an impact on prices because our

716
00:38:12,480 --> 00:38:15,560
Speaker 1: refining capacity is close to maxed out. Well, that is

717
00:38:15,600 --> 00:38:18,000
Speaker 1: the big question, isn't it, Joe, Because we've also heard

718
00:38:18,040 --> 00:38:20,160
Speaker 1: from the White House that at least it thinks that

719
00:38:20,280 --> 00:38:24,279
Speaker 1: Saudi Arabia has more room to produce. So what what's

720
00:38:24,320 --> 00:38:26,480
Speaker 1: the message the President Biden is gonna be sending here

721
00:38:26,640 --> 00:38:29,799
Speaker 1: the Saudias and and uh the U A Eh they

722
00:38:29,880 --> 00:38:34,160
Speaker 1: together have about three million barrels of spare capacity, if

723
00:38:34,200 --> 00:38:36,839
Speaker 1: I can use that term. That's according to their data.

724
00:38:36,880 --> 00:38:40,000
Speaker 1: There are skeptics, by the way, including the CEO of Shell,

725
00:38:40,080 --> 00:38:42,279
Speaker 1: who said, just a couple of weeks ago, you know,

726
00:38:42,400 --> 00:38:44,120
Speaker 1: this is not what a lot of people think. There's

727
00:38:44,160 --> 00:38:48,200
Speaker 1: not as much oil available as some people might suspect.

728
00:38:48,840 --> 00:38:52,120
Speaker 1: The fact is, though, even if President Biden scores a

729
00:38:52,200 --> 00:38:54,719
Speaker 1: deal here with Saudias, with with the the U A

730
00:38:54,840 --> 00:38:57,560
Speaker 1: E or just OPEC as a whole, we have to

731
00:38:57,560 --> 00:38:59,640
Speaker 1: remember a couple of things. Number One, they have been

732
00:38:59,680 --> 00:39:02,759
Speaker 1: increasing production in fact, but Saudi has agreed to as

733
00:39:02,760 --> 00:39:07,160
Speaker 1: almost a gesture to the Biden administration to increase production

734
00:39:07,280 --> 00:39:09,520
Speaker 1: and get us back to where we were pre COVID

735
00:39:09,680 --> 00:39:13,000
Speaker 1: that that has happened. And even if we add to that,

736
00:39:13,080 --> 00:39:15,919
Speaker 1: the question again is what happens to gasoline? Crude oil

737
00:39:16,000 --> 00:39:17,799
Speaker 1: is one thing, but we can't refine a lot more

738
00:39:17,840 --> 00:39:22,320
Speaker 1: crude into gas unless they start taking refineries off of mothballs, Nathan.

739
00:39:22,320 --> 00:39:24,640
Speaker 1: And there's no indication that's about to happen. Yeah, it

740
00:39:24,640 --> 00:39:27,560
Speaker 1: certainly doesn't seem to be the case anytime soon. Let's

741
00:39:27,600 --> 00:39:32,480
Speaker 1: turn to what's happening. Joe on Capitol Hill today another

742
00:39:32,719 --> 00:39:37,680
Speaker 1: January six, committing hearing, and I'm guessing the words will

743
00:39:37,719 --> 00:39:41,040
Speaker 1: be wild could come up of it. That's that's right.

744
00:39:41,080 --> 00:39:44,600
Speaker 1: That the infamous tweet from then President Trump, and and

745
00:39:44,680 --> 00:39:47,560
Speaker 1: who responded to that tweet, what led up to it,

746
00:39:47,600 --> 00:39:49,239
Speaker 1: who responded to it. There was a meeting in the

747
00:39:49,239 --> 00:39:51,759
Speaker 1: White House that we know about with Michael Flynn, with

748
00:39:51,840 --> 00:39:55,160
Speaker 1: Rudy Giuliani and Sydney Powell, in which they talked about

749
00:39:55,200 --> 00:39:59,040
Speaker 1: seizing voting machines. Right, They talked about the potential for

750
00:39:59,120 --> 00:40:02,000
Speaker 1: invoking marsh a law, and it was shortly after that

751
00:40:02,080 --> 00:40:05,640
Speaker 1: meeting that President Trump sent that tweet. Did the Proud

752
00:40:05,680 --> 00:40:08,280
Speaker 1: Boys and the Oath Keepers, those two militant groups groups

753
00:40:08,280 --> 00:40:10,759
Speaker 1: simply read Twitter and and show up? Or was there

754
00:40:10,800 --> 00:40:14,360
Speaker 1: a more concerted effort here to get them into town.

755
00:40:15,040 --> 00:40:18,400
Speaker 1: Did Michael Flynn or Rudy Giuliani or some of these

756
00:40:19,000 --> 00:40:21,680
Speaker 1: advisers to the president reach out to those groups. That's

757
00:40:21,719 --> 00:40:25,120
Speaker 1: the type of conversion that Jamie Raskin, the congressman on

758
00:40:25,160 --> 00:40:27,360
Speaker 1: that panel, has been talking about in today. They attempt

759
00:40:27,360 --> 00:40:31,080
Speaker 1: to connect the dots. It's unclear exactly though, exactly where

760
00:40:31,120 --> 00:40:34,200
Speaker 1: those dots are gonna fall. One of the former spokespeople,

761
00:40:34,200 --> 00:40:37,360
Speaker 1: if I could use, uh that term for the oath Keepers,

762
00:40:37,440 --> 00:40:41,120
Speaker 1: is going to be testifying about this very thing today. Interesting.

763
00:40:41,160 --> 00:40:43,680
Speaker 1: That'll be one to watch for sure. In our last

764
00:40:43,719 --> 00:40:46,799
Speaker 1: minute here, Joe, before the President heads to the Middle East,

765
00:40:46,840 --> 00:40:50,919
Speaker 1: he's gonna be meeting with Mexican President Lopez Obrador. What's

766
00:40:50,960 --> 00:40:53,520
Speaker 1: on the agenda there? Uh, you can probably guess. It's

767
00:40:53,520 --> 00:40:55,040
Speaker 1: gonna have a lot to do with the border and

768
00:40:55,120 --> 00:40:57,920
Speaker 1: coming just just well, just I guess. About a week

769
00:40:57,960 --> 00:41:00,720
Speaker 1: after the Supreme Court issued it's ruling on the remain

770
00:41:00,719 --> 00:41:03,800
Speaker 1: in Mexico policy. It's it's important for these two leaders

771
00:41:03,800 --> 00:41:05,919
Speaker 1: to get in the same room together. Uh. And it's

772
00:41:06,120 --> 00:41:08,160
Speaker 1: it's interesting that he's gonna be in town today and

773
00:41:08,239 --> 00:41:10,840
Speaker 1: even beyond the President leaving tonight on his trip to

774
00:41:10,840 --> 00:41:13,920
Speaker 1: the Middle East. But they're gonna announce, uh, some joint

775
00:41:13,920 --> 00:41:18,000
Speaker 1: actions to improve infrastructure and cooperation along the border. Migration

776
00:41:18,040 --> 00:41:21,440
Speaker 1: and expanding legal migration will be issue number one, according

777
00:41:21,440 --> 00:41:26,360
Speaker 1: to the White House Immigration January six. Inflation lots to

778
00:41:26,400 --> 00:41:28,960
Speaker 1: get to I think controversial here, No, not at all.

779
00:41:29,040 --> 00:41:32,959
Speaker 1: With a sound on with Joe Matthew every weekday five

780
00:41:33,000 --> 00:41:35,839
Speaker 1: pm Wall Street Time right here on Bloomberg Radio, of course,

781
00:41:35,840 --> 00:41:39,360
Speaker 1: our Washington correspondent, Joe as always, thanks for the update

782
00:41:39,360 --> 00:41:41,959
Speaker 1: ahead of all that, and you can read much more

783
00:41:42,320 --> 00:41:44,480
Speaker 1: on all these stories Bloomberg dot Com or on the

784
00:41:44,480 --> 00:41:50,080
Speaker 1: Bloomberg terminal. Listen to Bloomberg Radio in Washington Bloomberg and

785
00:41:50,200 --> 00:41:53,440
Speaker 1: one oh five point seven FM HD two. Looking ahead

786
00:41:53,480 --> 00:41:56,520
Speaker 1: to the market open, it is risk off this morning,

787
00:41:56,960 --> 00:42:00,759
Speaker 1: and the two and ten year inversion briefly reached ten

788
00:42:00,960 --> 00:42:03,920
Speaker 1: basis points. Right now, the two year yield is just

789
00:42:04,000 --> 00:42:06,080
Speaker 1: shy of three point zero one percent. The yield on

790
00:42:06,080 --> 00:42:08,680
Speaker 1: the two year right now two point nine one percent.

791
00:42:09,239 --> 00:42:12,399
Speaker 1: SMP futures are down twenty eight point, Style futures down

792
00:42:12,400 --> 00:42:16,720
Speaker 1: two D fifty seven. NASZAC futures lower by fifty six points.

793
00:42:17,280 --> 00:42:21,960
Speaker 1: The crude oil situation is sell off continues. Nymex crude

794
00:42:22,000 --> 00:42:24,440
Speaker 1: now below a hundred dollars of barrel, down four and

795
00:42:24,480 --> 00:42:28,120
Speaker 1: a half percent at N thirty three. Brent is at

796
00:42:28,160 --> 00:42:30,360
Speaker 1: one oh two forty five. That is a drop of

797
00:42:30,440 --> 00:42:35,000
Speaker 1: four point three five percent. The euro briefly reached parody

798
00:42:35,040 --> 00:42:37,240
Speaker 1: against the dollar. Right now, it's trading at one point

799
00:42:37,320 --> 00:42:42,160
Speaker 1: zero zero to three. Bloomberg Surveillance next for Karen Moscow.

800
00:42:42,600 --> 00:42:45,719
Speaker 1: I'm Nathan Hagar. This is Bloomberg