1 00:00:04,240 --> 00:00:07,480 Speaker 1: Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 2 00:00:07,600 --> 00:00:11,440 Speaker 1: day Break for Tuesday, July two. Coming up the shower. 3 00:00:11,760 --> 00:00:14,920 Speaker 1: Apple joins the list of companies putting a lid on hiring. 4 00:00:15,280 --> 00:00:19,160 Speaker 1: IBM shares drop on earnings, Netflix Sure Courts. Today, President 5 00:00:19,160 --> 00:00:22,320 Speaker 1: Biden is said to be considering declaring a climate emergency, 6 00:00:22,760 --> 00:00:25,520 Speaker 1: and gas prices fall for a thirty five straight day, 7 00:00:25,680 --> 00:00:29,080 Speaker 1: hitting a two month low. A massive thunderstorm and flooding 8 00:00:29,160 --> 00:00:32,320 Speaker 1: rains rink havoc on parts of the city. I'm John Tucker. 9 00:00:32,600 --> 00:00:35,840 Speaker 1: That's story straight ahead. I'm John Stashaller and sports Pete 10 00:00:35,840 --> 00:00:39,280 Speaker 1: Alonzo dethroned Juan Soto won the home run derby n 11 00:00:39,400 --> 00:00:41,640 Speaker 1: l A where the All Star Game takes place tonight. 12 00:00:44,440 --> 00:00:48,360 Speaker 1: That's all trading ahead on Bloomberg Daybreak on Bloomberg eleven 13 00:00:48,440 --> 00:00:52,880 Speaker 1: three on New York, Bloomberg one, Washington, d C, Bloomberg 14 00:00:52,920 --> 00:00:56,640 Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco 15 00:00:57,120 --> 00:01:00,840 Speaker 1: Sirius XM one nine team and around the world Bloomberg 16 00:01:00,920 --> 00:01:08,000 Speaker 1: Radio dot Com and via The Bloomberg Business. Good Morning, 17 00:01:08,000 --> 00:01:11,000 Speaker 1: I'm Nathan Hager and I'm Karen Moscow. In US Dock 18 00:01:11,040 --> 00:01:14,000 Speaker 1: index futures are higher this morning. We are coming up 19 00:01:14,000 --> 00:01:15,880 Speaker 1: to five oh one on Wall Street, and we check 20 00:01:15,920 --> 00:01:19,160 Speaker 1: the markets every fifteen minutes throughout the trading day. On Bloomberg. 21 00:01:19,240 --> 00:01:22,240 Speaker 1: Right now, SMP futures are up fifteen points. DAL future 22 00:01:22,319 --> 00:01:25,039 Speaker 1: is up eighty four. NASTAG futures up about fifty one. 23 00:01:25,400 --> 00:01:28,240 Speaker 1: The docks in Germany is down half percent. Attend year 24 00:01:28,280 --> 00:01:31,120 Speaker 1: Treasury that will change yield two point nine eight percent 25 00:01:31,520 --> 00:01:33,640 Speaker 1: and the yield on the two year three point one 26 00:01:33,800 --> 00:01:36,680 Speaker 1: five percent. Nathan Karen, we begin this morning with a 27 00:01:36,800 --> 00:01:40,360 Speaker 1: growing number of companies clamping down on hiring. It's a 28 00:01:40,440 --> 00:01:43,680 Speaker 1: trend showing up in firms from tech to banking. Let's 29 00:01:43,720 --> 00:01:46,839 Speaker 1: get more live from Bloomberg's Rnita Young. Good morning, Rnita, 30 00:01:46,880 --> 00:01:50,080 Speaker 1: Good morning, Nathan. Bloomberg. Sources say Apple is putting a 31 00:01:50,200 --> 00:01:53,880 Speaker 1: lid on hiring to limit spending. Leaders have not adopted 32 00:01:53,920 --> 00:01:57,720 Speaker 1: a company wide policy, but this more cautious approach mimics 33 00:01:57,800 --> 00:02:01,320 Speaker 1: moves by Amazon and Microsoft, and it's more evidence that 34 00:02:01,520 --> 00:02:05,400 Speaker 1: even Silicon Valley is worried about an impending recession. Now, 35 00:02:05,480 --> 00:02:09,120 Speaker 1: Goldman Sex also plans to slow hiring to rein in expenses. 36 00:02:09,560 --> 00:02:13,360 Speaker 1: CFO Dennis Coleman says Goldman could also reduce the pace 37 00:02:13,480 --> 00:02:16,880 Speaker 1: of replacing staff it loses because of attrition and will 38 00:02:16,960 --> 00:02:21,040 Speaker 1: reinstate annual performance reviews. Live in New York. I'm rened 39 00:02:21,080 --> 00:02:23,280 Speaker 1: to young Bloomberg Daybreak, all right, rened to thank you. 40 00:02:23,400 --> 00:02:25,560 Speaker 1: But we're also seeing a tepid outlook from another big 41 00:02:25,680 --> 00:02:28,000 Speaker 1: name in tech. Shares of IBM or down more than 42 00:02:28,080 --> 00:02:31,119 Speaker 1: five percent in early training. The company is lowering forecast 43 00:02:31,240 --> 00:02:33,720 Speaker 1: for free cash flow this year due to the impact 44 00:02:33,760 --> 00:02:36,240 Speaker 1: of a strong dollar and the loss of business in Russia. 45 00:02:36,440 --> 00:02:41,239 Speaker 1: Bloomberg's Charlie Pellett has more the revision overshadowed results the 46 00:02:41,400 --> 00:02:46,160 Speaker 1: top analysts estimates, signaling that demand from mainframe computers, consulting, 47 00:02:46,200 --> 00:02:50,399 Speaker 1: and cloud services remains strong amid concerns of a pullback 48 00:02:50,560 --> 00:02:54,320 Speaker 1: in tech spending. IBM sat of estimates free cash flow 49 00:02:54,440 --> 00:02:57,400 Speaker 1: of ten billion dollars this year, at the low end 50 00:02:57,440 --> 00:03:00,200 Speaker 1: of a previous range of ten to ten point five 51 00:03:00,280 --> 00:03:04,240 Speaker 1: billion dollars. Chief financial officer Jim Kavanaugh said the reduced 52 00:03:04,400 --> 00:03:07,640 Speaker 1: range is not a result of a broader business slowdown. 53 00:03:08,200 --> 00:03:11,639 Speaker 1: In New York. Charlie Pellett Bloomberg Daybreak, all Right, Charlie 54 00:03:11,680 --> 00:03:14,880 Speaker 1: Thank You. Earnings continue to roll in, with ten companies 55 00:03:14,919 --> 00:03:17,799 Speaker 1: in the SMP five hundred reporting today. This afternoon, we 56 00:03:17,960 --> 00:03:21,360 Speaker 1: hear from Netflix. Bloomberg's Tom Busby has a preview well 57 00:03:21,400 --> 00:03:25,120 Speaker 1: the keeper investors will be subscriber losses for the second quarter, 58 00:03:25,200 --> 00:03:28,480 Speaker 1: which the streaming giant predicted good total two million in 59 00:03:28,560 --> 00:03:31,320 Speaker 1: its previous earnings report in April, when it announced its 60 00:03:31,400 --> 00:03:34,800 Speaker 1: first ever subscriber losses. Also have noted whether the blowout 61 00:03:34,880 --> 00:03:37,320 Speaker 1: success of the latest season of Stranger Things may have 62 00:03:37,440 --> 00:03:41,160 Speaker 1: helped Netflix keep some subscribers, and its new crackdown on 63 00:03:41,280 --> 00:03:44,440 Speaker 1: password sharing now when effect in five Latin American markets, 64 00:03:44,640 --> 00:03:47,160 Speaker 1: Bloomberg and Census calls for earnings per share of two 65 00:03:47,200 --> 00:03:51,800 Speaker 1: dollars revenues of just over eight billion dollars. Tom Busby, 66 00:03:52,080 --> 00:03:54,720 Speaker 1: Bloomberg Daybreak A right, Tom, thank you. Now to the 67 00:03:54,840 --> 00:03:58,000 Speaker 1: latest in Twitter's legal dispute with Elon Musk. Twitter is 68 00:03:58,040 --> 00:04:01,800 Speaker 1: dismissing Musk's complaints that he doesn't have enough information about 69 00:04:01,920 --> 00:04:05,480 Speaker 1: spam and robot accounts. The company calls it an irrelevant 70 00:04:05,720 --> 00:04:08,240 Speaker 1: side show and wants to judge to hold a trial 71 00:04:08,400 --> 00:04:12,040 Speaker 1: as soon as possible over musks cancelation of his forty 72 00:04:12,080 --> 00:04:15,760 Speaker 1: four billion dollar takeover. Bitcoin is on the rise this morning, Karen, 73 00:04:15,800 --> 00:04:17,840 Speaker 1: but it's off its highs for the day. In fact, 74 00:04:17,920 --> 00:04:21,599 Speaker 1: earlier Bitcoin almost hit twenty three thou. The cryptocurrency has 75 00:04:21,640 --> 00:04:24,720 Speaker 1: struggled to escape a nineteen to twenty two thousand range 76 00:04:24,760 --> 00:04:28,080 Speaker 1: as investors licked their wounds from the recent route. Martin 77 00:04:28,240 --> 00:04:30,880 Speaker 1: Chavez from Sixth Street Partner says the time has come 78 00:04:30,960 --> 00:04:35,160 Speaker 1: to finally regulate the crypto market. Regrettably, we usually wait 79 00:04:35,320 --> 00:04:40,719 Speaker 1: until some calamity before there is regulation, and questions always 80 00:04:41,320 --> 00:04:43,560 Speaker 1: with this calamity big enough or does there need to 81 00:04:43,600 --> 00:04:46,800 Speaker 1: be another leg down before we have the appropriate regulation. 82 00:04:47,120 --> 00:04:50,320 Speaker 1: Six Street Partners partner Martin Chavez made the comments in 83 00:04:50,400 --> 00:04:52,760 Speaker 1: an interview on Bloomberg Television, and we'll have more on 84 00:04:52,839 --> 00:04:55,320 Speaker 1: the future of bitcoin throughout the day as the Bloomberg 85 00:04:55,360 --> 00:04:58,680 Speaker 1: Crypto Summit gets underway in New York. Well Nathan turning 86 00:04:58,720 --> 00:05:01,160 Speaker 1: to the global economy now, pressure is building on the 87 00:05:01,240 --> 00:05:04,839 Speaker 1: European Central Bank. Sources say the ECB may consider raising 88 00:05:04,920 --> 00:05:08,040 Speaker 1: interest rates by more than expected this week because of 89 00:05:08,080 --> 00:05:11,320 Speaker 1: the worsening inflation backdrop. Source to say the central bank 90 00:05:11,400 --> 00:05:14,480 Speaker 1: may raise rates by fifty basis points on Thursday. That's 91 00:05:14,600 --> 00:05:17,680 Speaker 1: double the twenty five point hike it outline just last month. Well, 92 00:05:17,720 --> 00:05:19,520 Speaker 1: back here in the U. S. Karen, prices at the 93 00:05:19,600 --> 00:05:22,320 Speaker 1: pump continue to drop. In fact, gas prices have fallen 94 00:05:22,360 --> 00:05:25,120 Speaker 1: for thirty five straight days, hitting a two month low. 95 00:05:25,480 --> 00:05:28,559 Speaker 1: Triple A says the nationwide averages just below four fifty 96 00:05:28,600 --> 00:05:31,520 Speaker 1: a gallon. Prices have fallen more than ten percent since 97 00:05:31,600 --> 00:05:34,520 Speaker 1: hitting a record last month. Well Nathan. Climate change is 98 00:05:34,560 --> 00:05:37,560 Speaker 1: in focus at the White House. President Biden is reportedly 99 00:05:37,600 --> 00:05:41,039 Speaker 1: considering declaring a climate emergency as soon as this week. 100 00:05:41,360 --> 00:05:45,719 Speaker 1: Details now from Bloomberry's Amy Morris from newsroom in Washington. 101 00:05:46,080 --> 00:05:49,760 Speaker 1: Senator Jeff Murkley of Oregon says climate legislation has no 102 00:05:49,960 --> 00:05:52,880 Speaker 1: chance to get through Congress. Instead, he says the president 103 00:05:52,960 --> 00:05:55,600 Speaker 1: should use the full powers of the executive branch to 104 00:05:55,680 --> 00:05:58,680 Speaker 1: declare an emergency, which would give him the authority to 105 00:05:58,800 --> 00:06:02,560 Speaker 1: redirect funds for clear energy projects or restrict offshore drilling, 106 00:06:02,839 --> 00:06:05,800 Speaker 1: and could even curtail the transport of fossil fuels and 107 00:06:06,040 --> 00:06:09,120 Speaker 1: Now sources they're telling the Washington Post that Biden is 108 00:06:09,320 --> 00:06:13,200 Speaker 1: expected to announce additional actions aimed at curbing emissions as 109 00:06:13,279 --> 00:06:17,400 Speaker 1: soon as this week. In Washington. I'm Amy Morris Bloomberg Daybreak. Amy. Thanks. 110 00:06:17,480 --> 00:06:19,840 Speaker 1: Let's turn to Capitol Hill now, where computer chips are 111 00:06:19,839 --> 00:06:22,560 Speaker 1: in focus. The Senate wants to quickly pass fifty two 112 00:06:22,600 --> 00:06:26,280 Speaker 1: billion dollars in grants and incentives for American semiconductor makers. 113 00:06:26,560 --> 00:06:29,800 Speaker 1: Senate majority leader Chuck Schumer says Democrats and Republicans are 114 00:06:29,839 --> 00:06:32,679 Speaker 1: hashing out the final details. The legislation is a scaled 115 00:06:32,720 --> 00:06:34,960 Speaker 1: down version of a larger bill intended to make the 116 00:06:35,080 --> 00:06:38,799 Speaker 1: US technology sector more competitive with China. While Nathan supply 117 00:06:38,920 --> 00:06:41,440 Speaker 1: chain issues are also in focus this More morning, Treasury 118 00:06:41,480 --> 00:06:44,640 Speaker 1: Secretary Jenney Yellen is calling on so called trusted US 119 00:06:44,680 --> 00:06:47,839 Speaker 1: allies to help fix the supply chain. Speaking in South Korea, 120 00:06:47,960 --> 00:06:51,280 Speaker 1: Yellen called on US partners to strengthen trade relationships with 121 00:06:51,400 --> 00:06:56,000 Speaker 1: what she calls friend shoring. Prem suring is about deepening 122 00:06:56,080 --> 00:07:01,120 Speaker 1: relationships and diversifying our supply chains. The greater number of 123 00:07:01,240 --> 00:07:05,920 Speaker 1: trusted trading partners the purposes to lower risks for our 124 00:07:06,040 --> 00:07:10,120 Speaker 1: economy and theirs. And Treasury Secretary Johnny Yellen singled out 125 00:07:10,240 --> 00:07:12,600 Speaker 1: China as a country on which the US and others 126 00:07:12,760 --> 00:07:16,840 Speaker 1: should be less reliant. Your local headlines straight ahead and 127 00:07:17,160 --> 00:07:24,480 Speaker 1: This is Bloomberg. Thanks Karen. It's five oh seven on 128 00:07:24,520 --> 00:07:26,920 Speaker 1: Wall Street where it's seventy four degrees in Central Park 129 00:07:27,000 --> 00:07:30,400 Speaker 1: and dealing with an accident investigation. Eastbound Belt Parkway is 130 00:07:30,520 --> 00:07:33,960 Speaker 1: closed by Pennsylvania Avenue. Details coming up in traffic. First. 131 00:07:34,040 --> 00:07:36,080 Speaker 1: John Tucker with more on what's going on in New 132 00:07:36,160 --> 00:07:37,960 Speaker 1: York and around the world. Good morning, John, and good 133 00:07:38,000 --> 00:07:41,040 Speaker 1: morning to you, Nathan. A powerful thunderstorm swept over New 134 00:07:41,120 --> 00:07:45,320 Speaker 1: York City yesterday afternoon, swamping highways, flooding train lines, and 135 00:07:45,520 --> 00:07:54,480 Speaker 1: casting the evening commute into sudden disarray. The rain caused 136 00:07:54,520 --> 00:07:57,000 Speaker 1: a massive sinkhole to open up in the Bronx and 137 00:07:57,120 --> 00:08:00,280 Speaker 1: swallow a van. Officials closed the northbound lane of the 138 00:08:00,320 --> 00:08:03,600 Speaker 1: major Deacon Expressway in the Bronx. That's because of flooding. 139 00:08:03,760 --> 00:08:06,720 Speaker 1: The Mentro North Commuter Railroad system suspended trains on the 140 00:08:06,760 --> 00:08:09,880 Speaker 1: New Haven Line in and out of Grand Central. New 141 00:08:09,960 --> 00:08:12,040 Speaker 1: York City has completed the first phase of a one 142 00:08:12,080 --> 00:08:14,600 Speaker 1: point four or five billion dollar project to fortify a 143 00:08:14,640 --> 00:08:17,320 Speaker 1: section of Lower Manhattan along the East River that was 144 00:08:17,440 --> 00:08:21,640 Speaker 1: devastated by Hurricane Sandy back in twelve. The East Side 145 00:08:21,680 --> 00:08:26,280 Speaker 1: Coastal Resiliency Projects schedule to be completed in twix will 146 00:08:26,360 --> 00:08:30,320 Speaker 1: elevate parkland along the East River, stretching two point four miles. 147 00:08:30,960 --> 00:08:33,160 Speaker 1: Temperatures in the UK are set to hit a record 148 00:08:33,240 --> 00:08:37,120 Speaker 1: today as a heat wave disrupts travel, schools and businesses. 149 00:08:37,480 --> 00:08:40,120 Speaker 1: That also opposes a risk of lives across that country. 150 00:08:40,480 --> 00:08:44,680 Speaker 1: The temperature most likely will exceed one four degrees fahrenheit 151 00:08:44,720 --> 00:08:48,199 Speaker 1: across the eastern England. The January Sixey Committee will be 152 00:08:48,240 --> 00:08:51,040 Speaker 1: extending its inquiry that story. In this report this morning 153 00:08:51,120 --> 00:08:55,439 Speaker 1: from Bloomberg's d Baxter, Chair Benny Thompson says information keeps 154 00:08:55,520 --> 00:08:59,079 Speaker 1: coming in. He says it includes a secret service tax. First, 155 00:08:59,320 --> 00:09:01,320 Speaker 1: he says that and he will put out a scale 156 00:09:01,440 --> 00:09:04,520 Speaker 1: back interim report in September, which is when it was 157 00:09:04,600 --> 00:09:08,080 Speaker 1: scheduled to end. He says now he will not predict 158 00:09:08,160 --> 00:09:10,920 Speaker 1: a date when the final report would be issued. The 159 00:09:10,960 --> 00:09:14,600 Speaker 1: committee will hold another public hearing Thursday, and then Thompson 160 00:09:14,679 --> 00:09:17,719 Speaker 1: says they will decide where to go from there. In 161 00:09:17,880 --> 00:09:21,600 Speaker 1: San Francisco, I'm at Baxter Bloomberg Daybreak. A Republican lawmaker 162 00:09:21,720 --> 00:09:25,480 Speaker 1: in New Jersey drafting legislation to punish towns that ignore 163 00:09:25,520 --> 00:09:28,520 Speaker 1: a state law by giving public workers payouts of more 164 00:09:28,600 --> 00:09:33,080 Speaker 1: than fifteen thousand dollars for unused sick time taxpayers could 165 00:09:33,080 --> 00:09:36,760 Speaker 1: say millions of dollars if the legislation has approved. And 166 00:09:37,080 --> 00:09:39,839 Speaker 1: it will take almost a lifetime or seven decades for 167 00:09:40,000 --> 00:09:43,280 Speaker 1: U S colleges and universities to achieve racial parody among 168 00:09:43,360 --> 00:09:46,800 Speaker 1: its freshman classes. That according to a new study by 169 00:09:47,040 --> 00:09:51,160 Speaker 1: McKenzie and company, enrollment about black and Native American students 170 00:09:51,480 --> 00:09:55,320 Speaker 1: declined in some cases. According to the study. Global News 171 00:09:55,400 --> 00:09:58,199 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 172 00:09:58,559 --> 00:10:01,439 Speaker 1: powered by more than on hunter journalists and analysts and 173 00:10:01,480 --> 00:10:04,599 Speaker 1: more than one hundred twenty countries of John Tucker. This 174 00:10:04,760 --> 00:10:12,079 Speaker 1: is Bloomberg. Thank you John. Almost five ten on Wall 175 00:10:12,120 --> 00:10:15,280 Speaker 1: Street time for the Bloomberg Sports Update. Good morning, John, Sanslo, 176 00:10:15,360 --> 00:10:18,040 Speaker 1: Morning night. And it's ironic that Juan Soto won the 177 00:10:18,120 --> 00:10:20,440 Speaker 1: home on Derby and Los Angeles because he is very 178 00:10:20,559 --> 00:10:22,959 Speaker 1: much in the news. The year old star of the 179 00:10:23,000 --> 00:10:27,079 Speaker 1: Washington Nationals just rejected a contract offer fifteen years and 180 00:10:27,240 --> 00:10:29,840 Speaker 1: four hundred and forty million dollars, and the Nats, who 181 00:10:29,840 --> 00:10:31,760 Speaker 1: have been saying they were not going to trade Soto, 182 00:10:32,080 --> 00:10:35,360 Speaker 1: are now entertaining trade offers The Mets and Yankees are 183 00:10:35,400 --> 00:10:38,079 Speaker 1: both believed to be interested. Soto's under his current contract 184 00:10:38,400 --> 00:10:42,040 Speaker 1: until after the four season. By winning the Derby, Soto 185 00:10:42,120 --> 00:10:45,480 Speaker 1: earned one million. He beats Seattle's Julio Rodriguez in the final. 186 00:10:45,559 --> 00:10:47,120 Speaker 1: He won a half million. As a rookie, he only 187 00:10:47,160 --> 00:10:50,440 Speaker 1: makes seven hundred thousand from the Mariners. Year old Rodriguez 188 00:10:50,480 --> 00:10:52,160 Speaker 1: put on a show in the first two rounds with 189 00:10:52,280 --> 00:10:56,360 Speaker 1: sixty three home runs. Semifinal losers were the Mets Peter Lonsoor, 190 00:10:56,360 --> 00:10:59,000 Speaker 1: the two time defending champ, and forty two year old 191 00:10:59,000 --> 00:11:00,920 Speaker 1: Albert Poole's, who was in the field in this the 192 00:11:01,000 --> 00:11:03,960 Speaker 1: final season of his Hall of Fame career. Clayton Kershaw 193 00:11:04,000 --> 00:11:07,280 Speaker 1: headed the Cooper's Down Sunday. Surprisingly, he's never started an 194 00:11:07,280 --> 00:11:09,079 Speaker 1: All Star Game before. He'll be on the mountain the 195 00:11:09,160 --> 00:11:13,240 Speaker 1: National League tonight in his home park. I wanted to 196 00:11:13,880 --> 00:11:19,960 Speaker 1: Peter uh Tampa Bay. Shane McClanahan starts for the American League. 197 00:11:19,960 --> 00:11:22,200 Speaker 1: There are six Yankees on the a L roster. Aaron 198 00:11:22,280 --> 00:11:25,280 Speaker 1: Judge and John Carlos Stanton will start in the outfield. 199 00:11:25,320 --> 00:11:27,520 Speaker 1: Garrett Cole will not pitch that he pitched on Sunday, 200 00:11:27,559 --> 00:11:32,760 Speaker 1: but you could see Clayton quote Holmes or Nestor Cortez 201 00:11:32,840 --> 00:11:35,440 Speaker 1: and Jose Trevino is the backup catcher the Mets. Jeff 202 00:11:35,480 --> 00:11:38,720 Speaker 1: McNeil the NL starting second basement soccer in Mexico. US 203 00:11:38,760 --> 00:11:41,319 Speaker 1: women who lost to Canada last Summer's Olympics beat the 204 00:11:41,360 --> 00:11:43,559 Speaker 1: one nothing on Alex Morgan penalty kick that clinches in 205 00:11:43,679 --> 00:11:47,720 Speaker 1: US spot in the Olympics. John stas were Bloomberg Sports, 206 00:11:47,800 --> 00:11:51,640 Speaker 1: Nathan Okay, John thanks SMP futures are up eighteen points 207 00:11:51,760 --> 00:11:54,880 Speaker 1: right now, Death futures up. NASA futures are higher by 208 00:11:54,920 --> 00:11:57,640 Speaker 1: fifty three points. Send your treasury is up to thirty seconds. 209 00:11:57,720 --> 00:12:00,319 Speaker 1: The yield two point nine seven percent guild on the year. 210 00:12:00,360 --> 00:12:03,679 Speaker 1: Right now three point one five. You're listening to Bloomberg 211 00:12:03,760 --> 00:12:09,960 Speaker 1: Day right Bloomberg eleven three oh weather sunny and hot today. 212 00:12:10,000 --> 00:12:12,800 Speaker 1: We're getting into a heat wave with highs today tomorrow 213 00:12:12,920 --> 00:12:16,719 Speaker 1: and the next day into the mid nineties. Right now 214 00:12:16,920 --> 00:12:24,160 Speaker 1: seventy four in Central Park Markets, headlines and breaking news 215 00:12:24,320 --> 00:12:26,920 Speaker 1: twenty four hours a day at Bloomberg dot Com, the 216 00:12:27,000 --> 00:12:30,439 Speaker 1: Bloomberg Business at and at Bloomberg Quick Tape. This is 217 00:12:30,440 --> 00:12:40,240 Speaker 1: a Bloomberg Business lash, and I'm Karen Moscow and futures 218 00:12:40,280 --> 00:12:44,240 Speaker 1: this morning are on the rise, while European shares are 219 00:12:44,440 --> 00:12:48,240 Speaker 1: lower and European government bonds flipped to losses from gains 220 00:12:48,360 --> 00:12:52,120 Speaker 1: after we reported the European Central Bank may consider raising 221 00:12:52,240 --> 00:12:56,360 Speaker 1: interest rates on Thursday by double the quarter point outline. Previously, 222 00:12:56,840 --> 00:12:59,200 Speaker 1: we checked the markets every fifteen minutes throughout the trading 223 00:12:59,280 --> 00:13:01,360 Speaker 1: day on bloom Burg right now was in p Futures 224 00:13:01,400 --> 00:13:04,000 Speaker 1: are up about eighteen points down, futures up ninety five 225 00:13:04,080 --> 00:13:07,280 Speaker 1: and nasty features of fifty three. The decks in Germany's 226 00:13:07,280 --> 00:13:09,800 Speaker 1: down four tenths of upper cent. The tenure treasury is 227 00:13:09,880 --> 00:13:12,400 Speaker 1: up to thirty seconds. You'l two point nine seven percent 228 00:13:12,800 --> 00:13:15,040 Speaker 1: yield on the two year three point one four percent 229 00:13:15,440 --> 00:13:17,480 Speaker 1: ni max heret oil is down six tenths per cent, 230 00:13:17,600 --> 00:13:20,040 Speaker 1: or sixty five cents at a hundred one dollar cents 231 00:13:20,080 --> 00:13:23,080 Speaker 1: a barrel. Combacks gold this it'll change. At seventeen ten 232 00:13:23,200 --> 00:13:26,640 Speaker 1: forty announced the euro one point two to three against 233 00:13:26,679 --> 00:13:29,600 Speaker 1: the dollar, British found one point to zero zero four 234 00:13:29,800 --> 00:13:33,120 Speaker 1: and again one thirty seven point six six, and Bitcoin 235 00:13:33,240 --> 00:13:35,760 Speaker 1: this morning at one point six percent at twenty one 236 00:13:36,200 --> 00:13:39,240 Speaker 1: eight hundred thirty dollars. Today we're watching for reports on 237 00:13:39,360 --> 00:13:42,400 Speaker 1: housing starts and building permits at today thirty Wall Street time, 238 00:13:42,720 --> 00:13:45,680 Speaker 1: and Netflix is among companies schedule to report earnings today. 239 00:13:46,040 --> 00:13:48,640 Speaker 1: That's a Bloomberg Business Flash. Now here's John Tucker with 240 00:13:48,800 --> 00:13:51,319 Speaker 1: more on what's going on around the world. Ton and 241 00:13:51,440 --> 00:13:53,920 Speaker 1: good morning, Karen cent A. Democrats urging the White House 242 00:13:53,960 --> 00:13:58,000 Speaker 1: to declare a climate emergency. The House Committee investigating the 243 00:13:58,120 --> 00:14:00,959 Speaker 1: January sixth attack of the Capital, which had player to 244 00:14:01,000 --> 00:14:04,880 Speaker 1: finish its inquiry by September, instead keep operating beyond that. 245 00:14:05,520 --> 00:14:08,480 Speaker 1: China vowing to take a resolute and stronger response to 246 00:14:08,559 --> 00:14:12,800 Speaker 1: any Taiwan visit by House speaker Nancy Pelosi. Sports the 247 00:14:12,960 --> 00:14:17,040 Speaker 1: Washington National superstar Juan Solo. When's the home run derby? 248 00:14:17,559 --> 00:14:20,680 Speaker 1: Major League Baseball All Star Game? Global News twenty four 249 00:14:20,720 --> 00:14:23,400 Speaker 1: hours a day on their end a Bloomberg Quicktake. We're 250 00:14:23,400 --> 00:14:26,360 Speaker 1: powered by more than twenty seven hundred journalists and analysts. 251 00:14:26,640 --> 00:14:29,520 Speaker 1: It more than one hundred twenty countries of John Tucker. 252 00:14:29,600 --> 00:14:32,320 Speaker 1: The s is Bloomberg. Nathan Okay, John, Thanks, It's five 253 00:14:32,400 --> 00:14:35,840 Speaker 1: nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. 254 00:14:35,920 --> 00:14:38,520 Speaker 1: This is Bloomberg Daybreak, and let's get back to the 255 00:14:38,600 --> 00:14:42,560 Speaker 1: story that sent tech stocks tumbling yesterday. Apple is reportedly 256 00:14:42,640 --> 00:14:45,560 Speaker 1: joining the list of megacap tech firms that are putting 257 00:14:45,600 --> 00:14:49,040 Speaker 1: the brakes on hiring and spending. Let's bringing Alex web 258 00:14:49,240 --> 00:14:52,080 Speaker 1: for more on this. Bloomberg Quick Take anchor tech columnist 259 00:14:52,160 --> 00:14:55,440 Speaker 1: for Bloomberg Opinion, Alex Good morning. What kind of a 260 00:14:55,480 --> 00:14:59,920 Speaker 1: slowdown could we be looking at here? For Apple? It's 261 00:15:00,040 --> 00:15:04,320 Speaker 1: really an inflation story. We've seen the other tech stocks 262 00:15:04,360 --> 00:15:06,240 Speaker 1: which are fundamentally ad tech, the likes of Google and 263 00:15:06,280 --> 00:15:10,160 Speaker 1: Facebook and it all meta and and Twitter freesome hiring. 264 00:15:10,240 --> 00:15:12,120 Speaker 1: And that's because when there's an economic slowed down, the 265 00:15:12,160 --> 00:15:13,960 Speaker 1: first thing that gets hit his marketing budgets. So we've 266 00:15:14,000 --> 00:15:16,160 Speaker 1: seen that piece. This is more about inflation, because of 267 00:15:16,240 --> 00:15:18,880 Speaker 1: course Apples in the business of selling thousand dollar apiece 268 00:15:19,040 --> 00:15:22,120 Speaker 1: electronic devices. If people don't have as much a supposed 269 00:15:22,120 --> 00:15:24,840 Speaker 1: BIL income or their their coffers are getting slightly squeezed, 270 00:15:25,200 --> 00:15:27,120 Speaker 1: you know, the ability to spend that sort of money 271 00:15:27,160 --> 00:15:29,840 Speaker 1: gets gets diminished. Now we should put this a little 272 00:15:29,840 --> 00:15:32,440 Speaker 1: bit of context. The report from from our colleague Mark 273 00:15:32,480 --> 00:15:35,160 Speaker 1: German doesn't say that it's a hiring freeze across the board. 274 00:15:35,320 --> 00:15:37,400 Speaker 1: It's that in some departments, they will not be able 275 00:15:37,440 --> 00:15:39,320 Speaker 1: to hire as many, perhaps as they had hope before. 276 00:15:39,640 --> 00:15:42,480 Speaker 1: Some Clearly we're going to have complete hiring freezes. So 277 00:15:43,320 --> 00:15:46,040 Speaker 1: it's clearly reflecting a little bit of skittishness in the market. 278 00:15:46,320 --> 00:15:48,000 Speaker 1: Stock was hit to the tune of about two percent 279 00:15:48,160 --> 00:15:50,680 Speaker 1: yesterday that they are concerned that Apple won't be able 280 00:15:50,720 --> 00:15:52,960 Speaker 1: to carry on the same trajectory has been Is this 281 00:15:53,080 --> 00:15:55,160 Speaker 1: just an inflation story or is this a story that 282 00:15:55,400 --> 00:15:58,040 Speaker 1: Apple may have perhaps done a little bit too much 283 00:15:58,120 --> 00:16:02,280 Speaker 1: spending when it and other tech companies were flying hi 284 00:16:02,360 --> 00:16:05,360 Speaker 1: during the pandemic. Well, I think we see plenty of companies, 285 00:16:05,440 --> 00:16:08,800 Speaker 1: not just in the tech space, using the any sort 286 00:16:08,840 --> 00:16:12,040 Speaker 1: of economic slow down as an excuse to maybe trim 287 00:16:12,200 --> 00:16:15,360 Speaker 1: some of the fact to to say they it's quite 288 00:16:15,400 --> 00:16:19,200 Speaker 1: good cover to reduce some of your costs, even if 289 00:16:19,200 --> 00:16:23,880 Speaker 1: it isn't entirely necessary. Clearly, negotiations with labor representatives not 290 00:16:24,000 --> 00:16:26,000 Speaker 1: quite as greater concern in the U s as they 291 00:16:26,040 --> 00:16:28,200 Speaker 1: are in Europe, but it is something that we see 292 00:16:28,200 --> 00:16:30,960 Speaker 1: a lot of companies doing. Now. We should say that, 293 00:16:31,440 --> 00:16:34,040 Speaker 1: as Mark German is reporting here, this is expected to 294 00:16:34,080 --> 00:16:38,040 Speaker 1: be a hiring and spending slowed down, not necessarily a 295 00:16:38,280 --> 00:16:40,960 Speaker 1: hiring and spending cut on the way, But is this 296 00:16:41,080 --> 00:16:44,880 Speaker 1: something we should be looking for from Apple, actual pullbacks, 297 00:16:44,960 --> 00:16:50,360 Speaker 1: actual cuts to hiring. I think that anything of that look. 298 00:16:50,360 --> 00:16:52,240 Speaker 1: Apple is still in the business of trying to find 299 00:16:52,440 --> 00:16:54,320 Speaker 1: the next big thing, as it has been for so 300 00:16:54,440 --> 00:16:55,960 Speaker 1: many years now, and it is throwing a lot of 301 00:16:56,000 --> 00:17:00,800 Speaker 1: money at projects such as its autonomous car and it's 302 00:17:01,240 --> 00:17:04,080 Speaker 1: smart glasses. However, they end up looking and we have 303 00:17:04,240 --> 00:17:07,320 Speaker 1: seen cuts in some of those projects historically. Now, Apple 304 00:17:07,440 --> 00:17:09,640 Speaker 1: is not in the business of telling people what they're 305 00:17:09,680 --> 00:17:12,520 Speaker 1: doing with head count. They tend to keep their cards 306 00:17:12,560 --> 00:17:14,760 Speaker 1: pretty close to their chest. They like to talk about products, 307 00:17:14,880 --> 00:17:17,520 Speaker 1: so anything that does come out on that front will 308 00:17:17,520 --> 00:17:22,120 Speaker 1: be dependent upon them. The number, you know, the reporting 309 00:17:22,200 --> 00:17:24,200 Speaker 1: that happens, and it's easy to forget. Of course, the 310 00:17:24,280 --> 00:17:27,560 Speaker 1: lion share of Apple's employees are in their retail outlets 311 00:17:27,600 --> 00:17:30,960 Speaker 1: around the world, so you know trims and and increases there. 312 00:17:30,960 --> 00:17:33,320 Speaker 1: It's quite hard to see anything meaningful in the core 313 00:17:33,440 --> 00:17:36,920 Speaker 1: business in terms of R and D products. The HQ 314 00:17:37,320 --> 00:17:40,919 Speaker 1: reflected in the head count numbers which they report at 315 00:17:40,960 --> 00:17:42,840 Speaker 1: the end of the year. And of course this news 316 00:17:42,880 --> 00:17:44,720 Speaker 1: for Apple comes as we get into the heart of 317 00:17:44,880 --> 00:17:48,560 Speaker 1: big tech earning season in earnest Really this week, what 318 00:17:48,640 --> 00:17:52,480 Speaker 1: are you looking for in terms of potentially other spendings 319 00:17:52,560 --> 00:17:55,320 Speaker 1: slowed downs? In the reports to come, There's gonna be 320 00:17:55,359 --> 00:17:58,040 Speaker 1: a lot of focus on Netflix that will report later 321 00:17:58,160 --> 00:18:01,920 Speaker 1: today the streets looking for any sort of good news 322 00:18:02,080 --> 00:18:05,600 Speaker 1: with the market. With the Analystic expectations of two million 323 00:18:05,680 --> 00:18:09,800 Speaker 1: fewer subscribers than than in the previous calendar quarter, that 324 00:18:10,000 --> 00:18:12,960 Speaker 1: does also mean then they're going to be questions asked, 325 00:18:13,000 --> 00:18:15,200 Speaker 1: what what's going to happen with Netflix? Is spending on content? 326 00:18:15,280 --> 00:18:17,600 Speaker 1: Does it need to be expanding spending on content in 327 00:18:17,720 --> 00:18:20,399 Speaker 1: order to attract new users, or actually is it more 328 00:18:20,440 --> 00:18:22,720 Speaker 1: sort of structural issues the way the way they release 329 00:18:22,760 --> 00:18:25,680 Speaker 1: their content, for instance, Stranger Things, rather just dumping the 330 00:18:25,720 --> 00:18:28,640 Speaker 1: whole series in one go on on its service, it's 331 00:18:28,680 --> 00:18:30,600 Speaker 1: broken it into two now. The upside of that is 332 00:18:30,680 --> 00:18:33,920 Speaker 1: that potentially it reduces churn i e. The number of 333 00:18:33,920 --> 00:18:37,399 Speaker 1: subscribers who canceled their subscription um once they've seen all 334 00:18:37,480 --> 00:18:38,920 Speaker 1: shows they want to see. If you spread out the 335 00:18:38,960 --> 00:18:42,960 Speaker 1: releases a little bit, then that provides perhaps an opportunity 336 00:18:43,040 --> 00:18:46,919 Speaker 1: to keep subscribers around. So this spending story at Netflix 337 00:18:46,960 --> 00:18:49,920 Speaker 1: will be particularly pertinent given the direction of travel um 338 00:18:50,400 --> 00:18:52,400 Speaker 1: when you look at it subscriber numbers, you know we'll 339 00:18:52,440 --> 00:18:55,840 Speaker 1: be looking forward to those Netflix earnings after the closing bell, 340 00:18:56,080 --> 00:18:59,760 Speaker 1: and as we continue to watch shares of Apple this morning, 341 00:18:59,800 --> 00:19:02,560 Speaker 1: following that news from our mark German that they're looking 342 00:19:02,640 --> 00:19:06,560 Speaker 1: to slow hiring and spending. Apple shares are actually hired 343 00:19:06,600 --> 00:19:08,520 Speaker 1: by a half percent in the pre market after that 344 00:19:08,720 --> 00:19:12,560 Speaker 1: drop yesterday of two percent at the close. Alex Web 345 00:19:13,000 --> 00:19:15,920 Speaker 1: of Bloomberg Opinion and Bloomberg Quick Take, thanks again for 346 00:19:16,000 --> 00:19:18,600 Speaker 1: being with us this morning as we continue to digest 347 00:19:18,680 --> 00:19:21,760 Speaker 1: that news and look ahead to more earnings from the 348 00:19:21,840 --> 00:19:24,639 Speaker 1: tech sector in the next week or so. Looking ahead 349 00:19:24,640 --> 00:19:27,520 Speaker 1: to the market open, futures are on the rise in 350 00:19:27,640 --> 00:19:31,760 Speaker 1: fact session highs this morning, with SMP futures right now 351 00:19:31,960 --> 00:19:34,880 Speaker 1: up twenty three points, STOW futures up a hundred thirty seven. 352 00:19:35,280 --> 00:19:38,439 Speaker 1: Nasdaq futures are higher this morning by seventy two points. 353 00:19:38,840 --> 00:19:41,320 Speaker 1: Right now, the tenure Treasury is up one thirty second 354 00:19:41,359 --> 00:19:43,560 Speaker 1: for a yield of two point nine eight percent yield 355 00:19:43,600 --> 00:19:47,359 Speaker 1: on the two year three point one five uh i'm 356 00:19:47,440 --> 00:19:49,639 Speaker 1: x screwed up seven tenths percent, or seventy cents a 357 00:19:49,720 --> 00:19:54,920 Speaker 1: hundred one dollars ninety cents a barrel, much more to come. 358 00:19:55,000 --> 00:19:58,160 Speaker 1: Stay with us. You are listening to Bloomberg day Break. 359 00:19:58,200 --> 00:20:09,400 Speaker 1: Good morning, Bloomberg eleven three oh weather sunny and hot 360 00:20:09,440 --> 00:20:11,240 Speaker 1: today with highs and the low nineties. Will be in 361 00:20:11,480 --> 00:20:14,959 Speaker 1: the mid nineties tomorrow and Thursday, with a few afternoon 362 00:20:15,080 --> 00:20:18,040 Speaker 1: showers and storms by Thursday. Right now seventy three in 363 00:20:18,160 --> 00:20:28,719 Speaker 1: Central Park, broadcasting live from the Bloomberg Interactive Broker Studio 364 00:20:28,880 --> 00:20:32,040 Speaker 1: in New York. Bloomberg E Living Freedom to Washington, d C, 365 00:20:32,240 --> 00:20:36,920 Speaker 1: Bloomberg to Boston, Bloomberg one O six one to San Francisco, 366 00:20:37,000 --> 00:20:40,439 Speaker 1: Bloomberg nine six to the country, Sirius XM Total one 367 00:20:40,520 --> 00:20:43,440 Speaker 1: nine team and around the globe, the Bloomberg Business apt 368 00:20:43,600 --> 00:20:53,360 Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's 369 00:20:53,400 --> 00:20:55,760 Speaker 1: five thirty on Wall Street. Good morning. I'm Nathan Hagar 370 00:20:56,119 --> 00:20:59,160 Speaker 1: and I'm Karen Moscow. Are just about four hours away 371 00:20:59,240 --> 00:21:01,040 Speaker 1: from the open. A few rust trading. Let's get you 372 00:21:01,119 --> 00:21:02,399 Speaker 1: up to date on the news you need to know 373 00:21:02,480 --> 00:21:04,560 Speaker 1: at this hour. We begin with a growing number of 374 00:21:04,640 --> 00:21:08,200 Speaker 1: companies putting a clamp down on hiring. It's a trend 375 00:21:08,320 --> 00:21:10,760 Speaker 1: showing up in firms from tech to banking, and we 376 00:21:10,840 --> 00:21:14,000 Speaker 1: get the latest life from Bloomberg's renied A Young, Good morning, Nida, 377 00:21:14,119 --> 00:21:17,400 Speaker 1: Good morning Karen. Apple is joining its fellow tech giants 378 00:21:17,440 --> 00:21:20,680 Speaker 1: and putting a lid on hiring. Bloomberg sources say Apple 379 00:21:20,760 --> 00:21:23,359 Speaker 1: wants to limit spending and job growth at some of 380 00:21:23,440 --> 00:21:27,200 Speaker 1: its divisions, but has not adopted a company wide policy. 381 00:21:27,680 --> 00:21:32,680 Speaker 1: This more cautious approach mimics moves by Amazon and Microsoft. Meantime, 382 00:21:32,760 --> 00:21:36,520 Speaker 1: Goldman Sex also plans to slow hiring to reign in expenses. 383 00:21:36,960 --> 00:21:40,480 Speaker 1: CFL Dennis Coleman says Goldman could also reduce the pace 384 00:21:40,600 --> 00:21:44,000 Speaker 1: of replacing staff it loses because of attrition, and will 385 00:21:44,040 --> 00:21:48,439 Speaker 1: reinstate annual performance reviews. Live in New York. I'm Rennita Young, 386 00:21:48,480 --> 00:21:51,399 Speaker 1: Bloomberg Daybreak. All right, Rinita, thank you. We'll sticking with tech. 387 00:21:51,520 --> 00:21:54,560 Speaker 1: The war of words continues between Twitter and Elon Musk. 388 00:21:54,840 --> 00:21:58,280 Speaker 1: Company calls must complaints about spam and robot accounts and 389 00:21:58,359 --> 00:22:01,719 Speaker 1: irrelevant side show it. It's a trial soon over Musk's 390 00:22:01,760 --> 00:22:05,080 Speaker 1: cancelation of his takeover. Well, turning to Ernie Nathan. Shares 391 00:22:05,119 --> 00:22:07,800 Speaker 1: of IBM or down almost five percent in early trading. 392 00:22:07,880 --> 00:22:11,000 Speaker 1: That's after lowering forecasts for a free cash flow this 393 00:22:11,160 --> 00:22:14,960 Speaker 1: year in crypto markets. This morning, Karen Bitcoin continues its rise, 394 00:22:15,080 --> 00:22:19,280 Speaker 1: nearly touching twenty three. Sheila Warren, Crypto Innovation Council CEO, 395 00:22:19,400 --> 00:22:21,479 Speaker 1: has more on the recent rally. I know that we're 396 00:22:21,520 --> 00:22:23,399 Speaker 1: waiting for a calamity. I find that a bit dramatic. 397 00:22:23,480 --> 00:22:25,200 Speaker 1: I mean, I think we've seen a number of cycles 398 00:22:25,240 --> 00:22:27,200 Speaker 1: and waves in this industry, and I've been in this 399 00:22:27,320 --> 00:22:29,320 Speaker 1: space for seven years now, and this is not the 400 00:22:29,400 --> 00:22:32,000 Speaker 1: first time we've seen a big crash followed by a 401 00:22:32,119 --> 00:22:33,879 Speaker 1: quick rally, and I think that we are starting to 402 00:22:33,960 --> 00:22:35,920 Speaker 1: see a little bit of that rally starts to happen, 403 00:22:36,040 --> 00:22:39,640 Speaker 1: and marketing were confidence in these alternative assets. Crypto Innovation 404 00:22:39,680 --> 00:22:43,720 Speaker 1: Council CEO Sheila Warren spoke with Emily Chang on Bloomberg Technology. 405 00:22:43,840 --> 00:22:47,640 Speaker 1: Catch Emily's daily Bloomberg Tech podcast weeknights wherever you get 406 00:22:47,680 --> 00:22:51,720 Speaker 1: your podcasts well overseas. Today, Nathan Treasury Secretary Janet Yellen 407 00:22:51,800 --> 00:22:54,600 Speaker 1: is taking aim at Beijing. She's singling out China as 408 00:22:54,640 --> 00:22:56,879 Speaker 1: a country on which the US and others should be 409 00:22:57,080 --> 00:23:00,840 Speaker 1: less reliant. We cannot allow countries like China to use 410 00:23:00,920 --> 00:23:05,960 Speaker 1: their market position in key raw materials, technologies or products 411 00:23:06,080 --> 00:23:12,000 Speaker 1: to disrupt our economy or exercise unwanted geopolitical leverage. Speaking 412 00:23:12,040 --> 00:23:14,960 Speaker 1: in South Korea, Treasury Secretary yell And also called on 413 00:23:15,080 --> 00:23:18,280 Speaker 1: trusted US allies to help fix supply chain issues. And 414 00:23:18,440 --> 00:23:20,720 Speaker 1: in Europe, care and government bonds flipped to losses. In 415 00:23:20,840 --> 00:23:23,840 Speaker 1: response to headlines from the European Central Bank, sources tell 416 00:23:23,880 --> 00:23:27,120 Speaker 1: Bloomberg the ECB may now consider a half point rate 417 00:23:27,200 --> 00:23:30,480 Speaker 1: hike at this week's policy meeting. Straight ahead, your latest 418 00:23:30,560 --> 00:23:34,080 Speaker 1: local headlines and a check of sports. This is Bloomberg, 419 00:23:38,280 --> 00:23:40,520 Speaker 1: five thirty three on Wall Street, seventy three degrees in 420 00:23:40,600 --> 00:23:43,640 Speaker 1: Central Park still lealing with the accident, investigation has eastbound 421 00:23:43,720 --> 00:23:46,879 Speaker 1: Belt Parkway closed to Pennsylvania Avenue. More coming up in 422 00:23:46,960 --> 00:23:49,560 Speaker 1: traffic First John Tucker with more on what's going on 423 00:23:49,640 --> 00:23:52,280 Speaker 1: in New York and around the world. John Nathan Senate 424 00:23:52,320 --> 00:23:55,960 Speaker 1: Democrats are urging the White House to clear a climate emergency. 425 00:23:56,520 --> 00:23:59,760 Speaker 1: Social move could be a President Biden broad executive authority 426 00:23:59,840 --> 00:24:04,760 Speaker 1: to redirect funds for clean energy projects restrict offshore oil drilling. 427 00:24:05,240 --> 00:24:08,399 Speaker 1: It comes as Democrats dismiss any optimism that a climate 428 00:24:08,520 --> 00:24:11,880 Speaker 1: change package could be moved swiftly through Congress. In September, 429 00:24:12,520 --> 00:24:15,000 Speaker 1: a funding agreement has been reached for the multibillion dollar 430 00:24:15,040 --> 00:24:18,359 Speaker 1: redevelopment of New York's Aging Penn Station. That story this 431 00:24:18,520 --> 00:24:22,000 Speaker 1: morning from Bloomberg's Jeff Bellinger. It is the country's busiest 432 00:24:22,080 --> 00:24:25,240 Speaker 1: rail hub and in dire need of renovation. The plan 433 00:24:25,320 --> 00:24:29,119 Speaker 1: would create new commercial and residential buildings around the station, 434 00:24:29,359 --> 00:24:32,360 Speaker 1: with those buildings developers getting to make payments in lieu 435 00:24:32,440 --> 00:24:35,399 Speaker 1: of taxes for a period of forty to forty five years. 436 00:24:35,840 --> 00:24:39,320 Speaker 1: The amount collected in excessive existing property taxes would be 437 00:24:39,400 --> 00:24:42,440 Speaker 1: applied to the project. The plan calls for a large, 438 00:24:42,520 --> 00:24:45,480 Speaker 1: single level train hall with higher ceilings and a four 439 00:24:45,560 --> 00:24:49,200 Speaker 1: hundred fifty foot long skylight to replace the current cramped, 440 00:24:49,280 --> 00:24:54,200 Speaker 1: windowless interior. Jeff Bellinger, Bloombird Daybreak And how speaker Nancy 441 00:24:54,280 --> 00:24:57,600 Speaker 1: Pelosi planning to make a landmark visit to Taiwan next month. 442 00:24:57,880 --> 00:25:01,720 Speaker 1: That story from bloomberg Samy Morris. The Financial Times reports 443 00:25:01,760 --> 00:25:04,960 Speaker 1: Pelosi will lead a delegation to Taipei in August. It 444 00:25:05,080 --> 00:25:08,640 Speaker 1: comes despite Chinese warnings that the trip could escalate tensions 445 00:25:08,720 --> 00:25:11,840 Speaker 1: between Washington and Beijing. At the same time, there are 446 00:25:11,920 --> 00:25:15,240 Speaker 1: talks by top aids to President Biden and Chinese counterpart 447 00:25:15,320 --> 00:25:19,639 Speaker 1: Chijinping in preparation for a possible conversation between the two leaders. 448 00:25:20,000 --> 00:25:23,359 Speaker 1: China has ramped up military activity around Taiwan to signal 449 00:25:23,440 --> 00:25:27,680 Speaker 1: its displeasure with past high profile visits. No sitting US 450 00:25:27,720 --> 00:25:31,600 Speaker 1: speaker has visited Taiwan since newt Gingrich traveled to the 451 00:25:31,680 --> 00:25:35,159 Speaker 1: island and nine in Washington I maybe more as s 452 00:25:35,160 --> 00:25:38,239 Speaker 1: Bloomberg Daybreak. Relatives of September eleven of the victims are 453 00:25:38,280 --> 00:25:41,520 Speaker 1: urging Donald Trump to cancel a live golf tournament schedule 454 00:25:41,600 --> 00:25:43,800 Speaker 1: for the end of this month at the former Presidents 455 00:25:43,800 --> 00:25:47,680 Speaker 1: of Trump National Golf Club in Bedminster, New Jersey. The tournament, 456 00:25:47,880 --> 00:25:51,160 Speaker 1: part of the Sally Finance Live Golf Series, is Sanford July. 457 00:25:52,280 --> 00:25:55,520 Speaker 1: As a presidential candidate, Trump himself had raised the issue 458 00:25:55,560 --> 00:25:59,239 Speaker 1: of Sally involvement in the attacks, something later confirmed by 459 00:25:59,320 --> 00:26:03,240 Speaker 1: an FBI probe. And US retail gasoline prices falling below 460 00:26:03,359 --> 00:26:06,080 Speaker 1: four fifty a gallon for the first time since mid May, 461 00:26:06,640 --> 00:26:10,080 Speaker 1: started to ease pressure at the palm for millions of Americans. 462 00:26:10,440 --> 00:26:14,280 Speaker 1: The nationwide average four or forty nine a gallon, according 463 00:26:14,359 --> 00:26:17,520 Speaker 1: to data released this morning by Triple A Global News 464 00:26:17,560 --> 00:26:19,640 Speaker 1: twenty four hours a day on IRAN, on Bloomberg Quick 465 00:26:19,680 --> 00:26:22,240 Speaker 1: Take Power by more than twenty seven hundred journalist and 466 00:26:22,320 --> 00:26:25,919 Speaker 1: analysts in more than one hundred twenty countries. I'm John Senter. 467 00:26:26,000 --> 00:26:33,720 Speaker 1: This is Bloomberg, Nathan. Thanks John thirty six on Wall Street, 468 00:26:33,760 --> 00:26:36,679 Speaker 1: John Stanshowers and the Bloomberg Sports Update. Thanks Nathan. Baseball 469 00:26:36,680 --> 00:26:38,840 Speaker 1: All Star Game tonight, Dodgers staying there with the home 470 00:26:38,920 --> 00:26:41,720 Speaker 1: run derby last night. Seven guys in their twenties plus 471 00:26:41,840 --> 00:26:44,200 Speaker 1: forty two year old Albert Pools Is in the final 472 00:26:44,280 --> 00:26:47,159 Speaker 1: season of his career. He upset top seet Kyle Schwarber 473 00:26:47,280 --> 00:26:49,560 Speaker 1: in overtime, but then lost to Juan Soto, who then 474 00:26:49,640 --> 00:26:53,600 Speaker 1: knocked off Seattle rookie Julio Rodriguez in the final. Rodriguez 475 00:26:53,680 --> 00:26:56,879 Speaker 1: literally half who holds his age. He was amazing on 476 00:26:56,920 --> 00:26:59,120 Speaker 1: the first two rounds, belted out thirty two and thirty 477 00:26:59,160 --> 00:27:01,879 Speaker 1: one homers. The dethrone the Mets Pete Alonso in the 478 00:27:01,920 --> 00:27:05,040 Speaker 1: semis Alonzo denied a home run derby three Pete. The 479 00:27:05,080 --> 00:27:08,000 Speaker 1: twenty three year old Soto wins a million dollars just 480 00:27:08,119 --> 00:27:11,560 Speaker 1: after he rejected a contract offer from Washington for four 481 00:27:11,680 --> 00:27:15,200 Speaker 1: hundred and forty million over fifteen years. ESPN reported last 482 00:27:15,320 --> 00:27:19,159 Speaker 1: night the Nationals are expected and now trade Soto before 483 00:27:19,280 --> 00:27:21,840 Speaker 1: the upcoming deadline, and the Mets and Yankees are both 484 00:27:21,880 --> 00:27:24,920 Speaker 1: believed to be interested. Three match six Yankees on the 485 00:27:24,960 --> 00:27:27,520 Speaker 1: All Star rosters for the game tonight, Aaron Judd got 486 00:27:27,600 --> 00:27:30,080 Speaker 1: the most votes. That's that's a pretty big honor. It 487 00:27:30,119 --> 00:27:32,119 Speaker 1: shows that you know a lot of fans support to 488 00:27:32,320 --> 00:27:36,400 Speaker 1: and um, yeah, I wouldn't. I wouldn't be here without 489 00:27:36,440 --> 00:27:38,720 Speaker 1: their constant support, you know, motivating me to go out 490 00:27:38,720 --> 00:27:40,239 Speaker 1: there and do my best. You know, they're They're who 491 00:27:40,280 --> 00:27:42,159 Speaker 1: I played for. You know, it's the fans, you know always, 492 00:27:42,240 --> 00:27:44,240 Speaker 1: you know, I want to go out there and um, 493 00:27:45,320 --> 00:27:46,720 Speaker 1: you know, leader all on the field for them, so 494 00:27:46,960 --> 00:27:49,000 Speaker 1: you know, being a top vocators, uh not. The free 495 00:27:49,080 --> 00:27:52,240 Speaker 1: special honor darting pitchers tonight Sampa Bay Shane McClanahan for 496 00:27:52,280 --> 00:27:54,240 Speaker 1: the American leag Clayton tursh Off at the NL in 497 00:27:54,320 --> 00:27:56,760 Speaker 1: his home park, the day after the sons of former 498 00:27:56,760 --> 00:27:59,280 Speaker 1: Big leaguers Matt Holliday Andrew Jones were taking one two 499 00:27:59,359 --> 00:28:02,480 Speaker 1: overall in the dre Mark McGuire's son was drafted in 500 00:28:02,520 --> 00:28:04,320 Speaker 1: the eighth round by the Phillies. He's the high school 501 00:28:04,320 --> 00:28:07,720 Speaker 1: pitcher in California. He may instead go to college at Oklahoma. 502 00:28:07,840 --> 00:28:11,800 Speaker 1: John Stall, Bloomberg Sports thanks John seven on Wall Street 503 00:28:11,840 --> 00:28:14,399 Speaker 1: Time for the Tri State Business Report with Bloomberg Scott car. 504 00:28:14,760 --> 00:28:17,680 Speaker 1: Rental rates for retail space in Manhattan are beginning to 505 00:28:17,760 --> 00:28:21,520 Speaker 1: stabilize even as retail leasing activity has been on the upswing. 506 00:28:21,880 --> 00:28:25,040 Speaker 1: That's according to the latest Manhattan retail figures report from 507 00:28:25,160 --> 00:28:29,200 Speaker 1: cbr E. New York Business Journal reports retail leasing deals 508 00:28:29,280 --> 00:28:32,720 Speaker 1: continue to grow by double digits throughout this year's second quarter. 509 00:28:33,119 --> 00:28:36,120 Speaker 1: New Jersey has surpassed for a giga watts or four 510 00:28:36,240 --> 00:28:39,960 Speaker 1: billion watts of installed solar power. The New Jersey Board 511 00:28:40,000 --> 00:28:43,000 Speaker 1: of Public Utility says that's enough to provide electricity to 512 00:28:43,160 --> 00:28:46,760 Speaker 1: over half a million New Jersey households annually. The agency 513 00:28:46,800 --> 00:28:48,880 Speaker 1: says there are now more than a hundred fifty seven 514 00:28:48,960 --> 00:28:52,360 Speaker 1: thousand solar installations statewide. As part of an effort to 515 00:28:52,400 --> 00:28:55,560 Speaker 1: boost Connecticut's tech work force and support and industry the 516 00:28:55,600 --> 00:28:59,440 Speaker 1: state sees as a major growth opportunity. Seven colleges across 517 00:28:59,480 --> 00:29:03,440 Speaker 1: Connecticut are preparing to launch new technology programs each has 518 00:29:03,480 --> 00:29:07,080 Speaker 1: been awarded grants through the state's Tech Talent Accelerator program. 519 00:29:07,400 --> 00:29:10,960 Speaker 1: That's the Bloomberg christ State Business Report. I'm Scott Carr. 520 00:29:11,080 --> 00:29:13,000 Speaker 1: Thanks Scott. Now let's check in with our global news 521 00:29:13,080 --> 00:29:14,560 Speaker 1: team for some of the top stories heard on our 522 00:29:14,560 --> 00:29:20,240 Speaker 1: three hundred Bloomberg affiliate radio stations around the world. I'm 523 00:29:20,320 --> 00:29:23,560 Speaker 1: Steve Potaskan on Tenson Wins in New York. We're talking 524 00:29:23,600 --> 00:29:27,280 Speaker 1: about how apartment rents are rising faster in Jersey City 525 00:29:27,520 --> 00:29:30,400 Speaker 1: than they are in New York City. M Corney Donahoe 526 00:29:30,520 --> 00:29:33,840 Speaker 1: on wh S in Louisville. Starbucks plans to close more 527 00:29:34,000 --> 00:29:37,680 Speaker 1: stores siding safety risks. I'm Ginas ready in for w 528 00:29:37,800 --> 00:29:41,920 Speaker 1: w BBM in Chicago. I'm reporting that Amazon warehouses near 529 00:29:42,000 --> 00:29:45,000 Speaker 1: that city, New York, in Orlando or under the microscope 530 00:29:45,000 --> 00:29:49,080 Speaker 1: by federal investigators who inspected the facilities yesterday. I'm talent 531 00:29:49,120 --> 00:29:51,440 Speaker 1: headcomb boom Bag d A b Dishal Radio in London. 532 00:29:51,480 --> 00:29:54,720 Speaker 1: We're reporting on record breaking temperatures in Britain as the 533 00:29:54,800 --> 00:29:59,160 Speaker 1: intense heat way disrupts transport, schools, and businesses. All right, 534 00:29:59,200 --> 00:30:01,640 Speaker 1: thank you, Caroline. It's five thirty nine on Wall Street. 535 00:30:01,880 --> 00:30:06,080 Speaker 1: The following is an editorial from Bloomberg Opinion. This editorial 536 00:30:06,360 --> 00:30:10,600 Speaker 1: was written by the Bloomberg Editorial Board. President Joe Biden's 537 00:30:10,600 --> 00:30:14,160 Speaker 1: efforts to tackle surging inflation, driven in part by high 538 00:30:14,280 --> 00:30:18,280 Speaker 1: energy costs, are demanding more flexibility than he might have wished. 539 00:30:18,840 --> 00:30:21,840 Speaker 1: His recent meeting with Mohammed bin Salmon, the de facto 540 00:30:22,000 --> 00:30:25,440 Speaker 1: ruler of Saudi Arabia, was arranged in hopes of boosting 541 00:30:25,560 --> 00:30:30,520 Speaker 1: global oil production. Biden is also apparently relaxing his previously 542 00:30:30,680 --> 00:30:35,120 Speaker 1: firm opposition to certain new fossil fuel projects in the US. 543 00:30:35,480 --> 00:30:39,280 Speaker 1: The economic stresses caused by Russia's war on Ukraine do 544 00:30:39,480 --> 00:30:44,200 Speaker 1: demand a pragmatic rebalancing of policy priorities, but this should 545 00:30:44,280 --> 00:30:48,840 Speaker 1: not jeopardize the administration's climate change goals. Indeed, the current 546 00:30:48,920 --> 00:30:53,040 Speaker 1: emergency only strengthens the case for a faster transition away 547 00:30:53,400 --> 00:30:58,240 Speaker 1: from fossil fuels. Strengthening energy security and fighting climate change 548 00:30:58,640 --> 00:31:02,600 Speaker 1: can and must go together. This sedatorial was written by 549 00:31:02,680 --> 00:31:06,160 Speaker 1: the Bloomberg Editorial Board. For more Bloomberg opinion, please go 550 00:31:06,240 --> 00:31:09,800 Speaker 1: to Bloomberg dot com, slash opinion or ope I n 551 00:31:09,920 --> 00:31:13,640 Speaker 1: go on the Bloomberg terminal. This has been Bloomberg Opinion. 552 00:31:13,760 --> 00:31:16,440 Speaker 1: Listen for Bloomberg opinion editorials every weekday. At this time, 553 00:31:16,560 --> 00:31:19,760 Speaker 1: terminal customers can read more at opie I n Go 554 00:31:22,440 --> 00:31:24,880 Speaker 1: Bloomberg eleven three oh weather sunny and hot today, highs 555 00:31:24,880 --> 00:31:27,920 Speaker 1: in the low nineties, sunny, hot, humid tomorrow near ninety 556 00:31:28,040 --> 00:31:32,760 Speaker 1: five degrees afternoon showers and storms of the higher on Thursday. 557 00:31:32,920 --> 00:31:38,400 Speaker 1: Right now seventy three in Central Park. Markets, headlines and 558 00:31:38,600 --> 00:31:41,800 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 559 00:31:42,000 --> 00:31:45,520 Speaker 1: the Bloomberg Business at and at Bloomberg. Brictape Cruce, He's 560 00:31:45,560 --> 00:31:54,400 Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow and US 561 00:31:54,480 --> 00:31:59,120 Speaker 1: dot Index futures are rising this morning, and European shares 562 00:31:59,160 --> 00:32:01,520 Speaker 1: are now little ange. We checked the markets every fifteen 563 00:32:01,560 --> 00:32:04,520 Speaker 1: minutes throughout the trading day on Bloomberg. But SMP future 564 00:32:04,600 --> 00:32:06,560 Speaker 1: is up about twenty eight points and down futures of 565 00:32:06,640 --> 00:32:09,720 Speaker 1: a hundred seventy five nasdack futures of eighty two. The 566 00:32:09,840 --> 00:32:13,000 Speaker 1: decks in Germany is down about a tenth of uppercent. 567 00:32:13,080 --> 00:32:15,280 Speaker 1: The tend your treasury that'll change yeld two point nine 568 00:32:15,360 --> 00:32:17,600 Speaker 1: eight percent. They yield on the two year three point 569 00:32:17,680 --> 00:32:21,040 Speaker 1: one six percent. Niemex screwed oil is down three tenths 570 00:32:21,040 --> 00:32:23,120 Speaker 1: percent or thirty two cents and a hundred two dollars 571 00:32:23,160 --> 00:32:25,600 Speaker 1: twenty eight cents of barrel comic schooled of the tenth 572 00:32:25,640 --> 00:32:27,960 Speaker 1: of upper cent or two dollars forty cents at seventeen 573 00:32:28,000 --> 00:32:31,000 Speaker 1: twelve forty an ounce. The euro one point two five 574 00:32:31,080 --> 00:32:33,480 Speaker 1: five against the dollar, British found one point two zero 575 00:32:33,600 --> 00:32:36,320 Speaker 1: to seven and the end one thirty seven point six 576 00:32:36,440 --> 00:32:39,800 Speaker 1: to Bitcoin this morning is up about two percent. It's 577 00:32:39,840 --> 00:32:42,520 Speaker 1: at twenty one tho eight hundred ninety dollars. That's a 578 00:32:42,560 --> 00:32:45,400 Speaker 1: Bloomberg business flash. Now here's John Tucker with more on 579 00:32:45,520 --> 00:32:48,480 Speaker 1: what's going on around the world. John, Good Morning. Karen 580 00:32:48,520 --> 00:32:50,760 Speaker 1: sent a Democrats urging the White House to the clear 581 00:32:51,000 --> 00:32:55,040 Speaker 1: a climate emergency. The House Committee investigating the January six 582 00:32:55,120 --> 00:32:57,760 Speaker 1: attack of the Capital, which had planned to finnish its 583 00:32:57,800 --> 00:33:01,840 Speaker 1: inquiry by September, will instead operating beyond that day because 584 00:33:02,040 --> 00:33:05,480 Speaker 1: more information keeps coming in, and China vowing to take 585 00:33:05,600 --> 00:33:09,440 Speaker 1: a resolute and strong response to any Taiwan visit by 586 00:33:09,520 --> 00:33:13,840 Speaker 1: the House Speaker. Nancy Pelosi sports the Washington National superstar 587 00:33:13,960 --> 00:33:17,440 Speaker 1: Juan Soto wins the home run derby at the All 588 00:33:17,520 --> 00:33:20,560 Speaker 1: Star Game. Global News twenty four hours a day on 589 00:33:20,600 --> 00:33:23,240 Speaker 1: aeron on Bloomberg Quick Take Power by more than twenty 590 00:33:23,280 --> 00:33:25,600 Speaker 1: seven hundred journalists and analysts had more than one hundred 591 00:33:25,640 --> 00:33:29,760 Speaker 1: twenty countries. I'm John Tucker. This is Bloomberg. Nathan Okay, John, 592 00:33:29,800 --> 00:33:31,959 Speaker 1: thank you. It's five eight on Wall Street Live from 593 00:33:31,960 --> 00:33:35,720 Speaker 1: the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and 594 00:33:35,760 --> 00:33:38,080 Speaker 1: we have Kid Jukes on the line with us this morning. 595 00:33:38,160 --> 00:33:42,280 Speaker 1: Chief effex strategist associate a general just in time kit 596 00:33:42,480 --> 00:33:45,560 Speaker 1: with news just this morning ahead of the European Central 597 00:33:45,600 --> 00:33:48,480 Speaker 1: Bank meeting on Thursday, that the ECB could consider a 598 00:33:48,680 --> 00:33:52,440 Speaker 1: half percentage point rate hike rather than the quarter point 599 00:33:52,560 --> 00:33:55,720 Speaker 1: that's been forecast. What do you make of this news? 600 00:33:55,960 --> 00:34:00,040 Speaker 1: Is that in your forecast that's not enough, folcus That 601 00:34:00,160 --> 00:34:01,920 Speaker 1: what I mostly make of it is that this forward 602 00:34:01,960 --> 00:34:04,560 Speaker 1: guidance we get from central banks now, with so much precision, 603 00:34:04,640 --> 00:34:07,200 Speaker 1: so far out, must have pulled the gods up on 604 00:34:07,240 --> 00:34:10,960 Speaker 1: Mount Olympus, who laugh when we get it all wrong. Um, 605 00:34:11,080 --> 00:34:13,960 Speaker 1: the you know, fifty would have made sense if you 606 00:34:14,040 --> 00:34:18,000 Speaker 1: hadn't said very firmly, we're going um initially, you know, 607 00:34:18,080 --> 00:34:19,799 Speaker 1: we're not going to do anything until we stop off 608 00:34:19,840 --> 00:34:21,680 Speaker 1: one buying program. Then we'll do twenty five, and then 609 00:34:21,719 --> 00:34:24,279 Speaker 1: we might do fifty after that. Now forty eight hours 610 00:34:24,360 --> 00:34:26,080 Speaker 1: before the meeting, we get a news wire reports that 611 00:34:26,120 --> 00:34:28,960 Speaker 1: they're going to talk about fifty. You know, is that 612 00:34:29,120 --> 00:34:32,759 Speaker 1: someone who wants to do fifty trying to trying to 613 00:34:32,800 --> 00:34:34,480 Speaker 1: get it partly priced in so that they can have 614 00:34:34,560 --> 00:34:37,479 Speaker 1: a real debate about it. Is that a new piece 615 00:34:37,520 --> 00:34:40,799 Speaker 1: of forward guidance or is it just a bit shambolic? 616 00:34:41,680 --> 00:34:44,440 Speaker 1: I would suspect. I mean, I think fifty is a 617 00:34:44,520 --> 00:34:47,719 Speaker 1: good idea, frankly, but um, I think we'll probably get 618 00:34:47,760 --> 00:34:49,799 Speaker 1: twenty five in the end. But what we mostly get 619 00:34:49,960 --> 00:34:53,360 Speaker 1: is too much forward guidance. Well, if you say that 620 00:34:54,320 --> 00:34:56,520 Speaker 1: fifty basis points is a good idea, what makes you 621 00:34:56,640 --> 00:34:58,759 Speaker 1: say that? Is that something that can actually get the 622 00:34:58,840 --> 00:35:01,520 Speaker 1: reins in on the a historically high inflation that we 623 00:35:01,560 --> 00:35:04,040 Speaker 1: are seeing in the euro Zone. Um, I think if 624 00:35:04,080 --> 00:35:06,120 Speaker 1: you're the e c B, I mean, unlike the Fed 625 00:35:06,200 --> 00:35:07,400 Speaker 1: or the bank, when you know you have you have 626 00:35:07,560 --> 00:35:10,239 Speaker 1: one job at the ECB, you're you're you're not trying 627 00:35:10,280 --> 00:35:12,839 Speaker 1: to manage unemployment, You're just trying to get inflation down, 628 00:35:12,920 --> 00:35:17,160 Speaker 1: and inflation is way too high. Um and the currency 629 00:35:17,280 --> 00:35:20,680 Speaker 1: is is very weak, partly because because of your monetary policy. 630 00:35:20,800 --> 00:35:23,520 Speaker 1: So um so, there's you can make a you can 631 00:35:23,560 --> 00:35:25,839 Speaker 1: make a strong case for saying we should do something. Now, 632 00:35:26,400 --> 00:35:28,040 Speaker 1: you could make a case for saying we should do 633 00:35:28,120 --> 00:35:31,520 Speaker 1: nothing because most of the inflation. Our biggest inflation threat 634 00:35:31,760 --> 00:35:34,600 Speaker 1: is that North Stream one doesn't come back online on 635 00:35:34,800 --> 00:35:38,200 Speaker 1: on Thursday afternoon or or anytime soon, and natural gas 636 00:35:38,239 --> 00:35:40,000 Speaker 1: prices spike higher, and then we'll have a great big 637 00:35:40,040 --> 00:35:42,520 Speaker 1: recession as well as the inflation. And we probably should 638 00:35:42,520 --> 00:35:45,600 Speaker 1: have done nothing. Um So, so you could, you know, 639 00:35:45,960 --> 00:35:47,759 Speaker 1: you could, you could. I think you could argue for nothing. 640 00:35:47,800 --> 00:35:50,400 Speaker 1: You could argue for fifty is what they'll probably do. 641 00:35:51,280 --> 00:35:54,200 Speaker 1: I do think if you're an inflation fighting central bank 642 00:35:54,280 --> 00:35:57,239 Speaker 1: at this point in time, not guessing what's going to 643 00:35:57,320 --> 00:36:00,600 Speaker 1: happen in the future too much, there's a strong case 644 00:36:00,680 --> 00:36:02,919 Speaker 1: for just getting on with whatever you're doing. The last 645 00:36:02,960 --> 00:36:04,800 Speaker 1: thing you want to do is twenty five and signal 646 00:36:04,880 --> 00:36:07,719 Speaker 1: you might do fifty at your next meeting or some 647 00:36:08,040 --> 00:36:10,920 Speaker 1: nonsense like that. You get to the question that I 648 00:36:11,000 --> 00:36:14,840 Speaker 1: wanted to ask when you mentioned the North String pipeline 649 00:36:15,000 --> 00:36:18,280 Speaker 1: and the concerns over energy with the war in Ukraine 650 00:36:18,320 --> 00:36:21,319 Speaker 1: going on, how much control does the ECB have over 651 00:36:21,440 --> 00:36:23,920 Speaker 1: this kind of inflation when so much of it is 652 00:36:24,000 --> 00:36:27,480 Speaker 1: dependent on what's happening in the war in Ukraine even 653 00:36:27,560 --> 00:36:30,000 Speaker 1: less than usual. So, I mean, you know what you 654 00:36:30,080 --> 00:36:32,120 Speaker 1: can argue that what they have control over is is 655 00:36:32,160 --> 00:36:34,520 Speaker 1: what is to some degree the tlightness of the labor market. 656 00:36:34,560 --> 00:36:37,560 Speaker 1: What's happened to wasge growth, you know, the strength of 657 00:36:37,880 --> 00:36:40,560 Speaker 1: post pandemic reopening demand, all of which we see in 658 00:36:40,640 --> 00:36:42,040 Speaker 1: Europe's in the same way as we do in the 659 00:36:42,120 --> 00:36:46,200 Speaker 1: United States. But the the biggest single driver of headline 660 00:36:46,239 --> 00:36:50,480 Speaker 1: inflation and probably economic activity in the next three to 661 00:36:50,600 --> 00:36:55,560 Speaker 1: six months is how how little or how much natural 662 00:36:55,680 --> 00:36:59,920 Speaker 1: gas can get into particularly Germany's industry, but into your 663 00:37:00,200 --> 00:37:02,760 Speaker 1: in general. And I mean that that's not just inflation, 664 00:37:02,840 --> 00:37:05,359 Speaker 1: that's the economic cycle from here. If it gets shut 665 00:37:05,400 --> 00:37:08,040 Speaker 1: off completely, uh, you know, we will have a we 666 00:37:08,120 --> 00:37:10,360 Speaker 1: will have a major economic problem in Europe over the 667 00:37:10,440 --> 00:37:12,759 Speaker 1: course of this winter. And about a minute left here, kid, 668 00:37:12,840 --> 00:37:15,480 Speaker 1: with this news coming down forty eight hours before the 669 00:37:15,560 --> 00:37:18,680 Speaker 1: ECB meeting, what does it due to ECB credibility to 670 00:37:19,080 --> 00:37:22,759 Speaker 1: have headlines like this come out? I don't think it. 671 00:37:22,920 --> 00:37:25,120 Speaker 1: I don't think it helps. I mean, I I sometimes 672 00:37:25,200 --> 00:37:28,799 Speaker 1: wonder whether credibility is necessarily so important that this kind 673 00:37:28,840 --> 00:37:30,960 Speaker 1: of level is for people like us were but I 674 00:37:31,040 --> 00:37:33,319 Speaker 1: mean it definitely, you know it's me. I just think 675 00:37:33,360 --> 00:37:36,680 Speaker 1: there's too much attempt at pretending that the central bankers 676 00:37:36,719 --> 00:37:38,600 Speaker 1: are gods and can tell us what will happen at 677 00:37:38,640 --> 00:37:41,200 Speaker 1: each of the next five meetings with great certainty. The 678 00:37:41,239 --> 00:37:44,120 Speaker 1: world just playing that simple. Thanks for this kid again. 679 00:37:44,200 --> 00:37:47,480 Speaker 1: Great to get your thoughts this morning, particularly on the 680 00:37:47,800 --> 00:37:50,120 Speaker 1: headlines that just crossed this morning that the ECB is 681 00:37:50,200 --> 00:37:53,280 Speaker 1: considering a fifty basis point move rather than the twenty 682 00:37:53,360 --> 00:37:56,440 Speaker 1: five that was forecast. Kid Jukes, Chief f X Strategists 683 00:37:56,440 --> 00:38:00,080 Speaker 1: Associateate General with us this morning. Karen Well, Nathan, it 684 00:38:00,239 --> 00:38:02,279 Speaker 1: is five fifty three on WALLA Street. Time for the 685 00:38:02,320 --> 00:38:04,840 Speaker 1: Bloomberg Law Report. We get to the legal stories we 686 00:38:04,920 --> 00:38:12,200 Speaker 1: are watching this morning from Bloomberg Jeff Bellinger. The Justice 687 00:38:12,280 --> 00:38:16,359 Speaker 1: Department ruling in a case involving trucking companies says employers 688 00:38:16,520 --> 00:38:21,200 Speaker 1: no poach agreements are inherently illegal. Johnson and Johnson General 689 00:38:21,280 --> 00:38:24,160 Speaker 1: counsel Michael Allman will retire at the end of the year. 690 00:38:24,480 --> 00:38:28,440 Speaker 1: J and j announced that Elizabeth Formanard will succeed Alman. 691 00:38:28,600 --> 00:38:31,000 Speaker 1: The Chief Judge of New York State's Court of Appeal, 692 00:38:31,120 --> 00:38:34,239 Speaker 1: says the first test of virtual jury selection was a 693 00:38:34,320 --> 00:38:39,560 Speaker 1: big success. Nent of the potential juror summon actually appeared. 694 00:38:39,800 --> 00:38:44,600 Speaker 1: Bloomberg Law everything you need, all on one legal research platform, 695 00:38:44,800 --> 00:38:49,399 Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more 696 00:38:49,480 --> 00:38:53,919 Speaker 1: at Bloomberg Law dot com. Alright, thanks, Jeff. Now another 697 00:38:54,040 --> 00:38:57,359 Speaker 1: legal story we're watching. Three former JP Morgan employees are 698 00:38:57,400 --> 00:39:00,320 Speaker 1: on trial in Chicago, and what's the most ambitious government 699 00:39:00,400 --> 00:39:03,480 Speaker 1: effort yet in a year's long crackdown on spoofing and 700 00:39:03,600 --> 00:39:08,080 Speaker 1: market manipulation. Spoofing banned by law in two involves huge 701 00:39:08,200 --> 00:39:11,480 Speaker 1: orders that traders canceled before they can be executed, in 702 00:39:11,520 --> 00:39:14,000 Speaker 1: a bid to push prices in the direction they want 703 00:39:14,080 --> 00:39:17,960 Speaker 1: to make their genuine trades profitable. Spoofing has emerged as 704 00:39:18,080 --> 00:39:21,840 Speaker 1: a threat to market legitimacy in an era of computerized trading, 705 00:39:21,880 --> 00:39:24,440 Speaker 1: and the defendants are charged with more than two dozen crimes, 706 00:39:24,680 --> 00:39:29,920 Speaker 1: including racketeering and racketeering conspiracy. For more, bloomberrystom Grass spaced 707 00:39:30,040 --> 00:39:33,279 Speaker 1: James Cox, the professor at Duke Law school. In this case, 708 00:39:33,480 --> 00:39:38,440 Speaker 1: unlike past cases of allegistrating fraud, the prosecutors that sort 709 00:39:38,480 --> 00:39:41,840 Speaker 1: of up the anti here, they're accusing the defendants of 710 00:39:41,880 --> 00:39:45,360 Speaker 1: a racketeering conspiracy. That's the law usually see more with 711 00:39:45,440 --> 00:39:50,360 Speaker 1: the mafia than banks. This is true. They're using legislation 712 00:39:50,520 --> 00:39:54,120 Speaker 1: that's been passed over the decades is designed to go 713 00:39:54,320 --> 00:39:59,520 Speaker 1: after purposeful intentional misconduct. We rarely see that used in 714 00:39:59,680 --> 00:40:02,400 Speaker 1: most securities or commodities cases, but they're doing it in 715 00:40:02,520 --> 00:40:05,080 Speaker 1: this case. And I believe it's the fact that we 716 00:40:05,280 --> 00:40:08,759 Speaker 1: now find that, certainly with this administration, when you look 717 00:40:08,840 --> 00:40:11,920 Speaker 1: at who the U. S Attorneys are, who's at the 718 00:40:12,080 --> 00:40:16,080 Speaker 1: sec who's at the Commodity's Future Trading Commission, those are 719 00:40:16,239 --> 00:40:21,640 Speaker 1: all now democtratically controlled prosecutor offices. And there has been 720 00:40:21,800 --> 00:40:24,960 Speaker 1: the belief that the markets have gotten more and more 721 00:40:25,200 --> 00:40:29,000 Speaker 1: corrupt through a variety of practices, not just spoofing, but 722 00:40:29,160 --> 00:40:32,800 Speaker 1: spoofing is one of those practices where it's rampant. And 723 00:40:32,920 --> 00:40:36,719 Speaker 1: what's interesting in the case that's being prosecuted now is 724 00:40:36,800 --> 00:40:40,439 Speaker 1: that part of the offense is the fact that, look, 725 00:40:41,000 --> 00:40:43,839 Speaker 1: I came in a young broker here and I saw 726 00:40:43,960 --> 00:40:47,239 Speaker 1: how things were working and people did this practice which 727 00:40:47,440 --> 00:40:49,759 Speaker 1: turns out to be spoofing, doing it all the time, 728 00:40:49,800 --> 00:40:52,360 Speaker 1: and I just thought that was normal and routine process, 729 00:40:52,719 --> 00:40:56,320 Speaker 1: and I had no corrupt criminal attempt behind it, And 730 00:40:56,960 --> 00:41:00,560 Speaker 1: that defense is that everybody's doing it. In case that 731 00:41:00,920 --> 00:41:03,640 Speaker 1: this is a pervasive problem, some of the witnesses that 732 00:41:03,719 --> 00:41:08,000 Speaker 1: the prosecution has are going to be people who cooperated 733 00:41:08,080 --> 00:41:12,360 Speaker 1: after pleading guilty. So would they be able to testify 734 00:41:13,080 --> 00:41:15,800 Speaker 1: as to what the intent was? Yes, you know, the 735 00:41:16,000 --> 00:41:18,840 Speaker 1: important thing is to describe the phenomenal so the trier 736 00:41:18,920 --> 00:41:22,680 Speaker 1: of fact can really understand why this is manipulative conduct 737 00:41:22,719 --> 00:41:26,600 Speaker 1: and not legitimates business practices. So the witnesses are doing that, 738 00:41:27,080 --> 00:41:29,840 Speaker 1: and I think that they're also going to be helpful 739 00:41:30,040 --> 00:41:34,840 Speaker 1: in describing the likely mental state of the defendants in 740 00:41:34,920 --> 00:41:38,160 Speaker 1: this case. That is that brokers all knew that this 741 00:41:38,320 --> 00:41:42,960 Speaker 1: conduct was illegal, that it was pervasively practiced, and there 742 00:41:43,040 --> 00:41:45,920 Speaker 1: was a way to making money, and that there were victims, 743 00:41:46,000 --> 00:41:49,920 Speaker 1: not those who were practicing spooping, but rather the traders 744 00:41:49,960 --> 00:41:53,040 Speaker 1: on the other side who are innocent and we're victimized 745 00:41:53,080 --> 00:41:57,279 Speaker 1: by false appearances about market movements. And as James Cox, 746 00:41:57,360 --> 00:41:59,880 Speaker 1: the professor at Duke Law School speaking at the Bloomberg's 747 00:42:00,040 --> 00:42:03,000 Speaker 1: and Grosso. Catch more of that interview, plus analysis of 748 00:42:03,040 --> 00:42:05,960 Speaker 1: the latest legal news, by subscribing to the Bloomberg Law 749 00:42:06,080 --> 00:42:10,239 Speaker 1: Podcast or downloading this show at Bloomberg dot com slash podcast. 750 00:42:10,480 --> 00:42:13,720 Speaker 1: Attorneys can find exceptional legal research and business development tools 751 00:42:13,760 --> 00:42:16,760 Speaker 1: at Bloomberg Law dot com and on the Bloomberg terminal 752 00:42:16,920 --> 00:42:20,400 Speaker 1: at b law Go. And we are watching the markets 753 00:42:20,480 --> 00:42:23,600 Speaker 1: this morning, with futures hier SMP futures of twenty six 754 00:42:23,680 --> 00:42:26,480 Speaker 1: points and down futures of one fifty nine and NASDEG 755 00:42:26,560 --> 00:42:30,359 Speaker 1: futures of seventy six tenure treasury little change, the yield 756 00:42:30,400 --> 00:42:33,400 Speaker 1: two point nine eight percent and the yield on the 757 00:42:33,480 --> 00:42:36,759 Speaker 1: two year at three point one six percent, and the 758 00:42:36,880 --> 00:42:39,560 Speaker 1: euro one point oh two four two against the dollar. 759 00:42:39,719 --> 00:42:42,400 Speaker 1: Still ahead. On Bloomberg Daybreak, a check on the business 760 00:42:42,480 --> 00:42:44,919 Speaker 1: headlines and all the news you need to start your day. 761 00:42:45,440 --> 00:42:46,680 Speaker 1: This is Bloomberg