1 00:00:03,440 --> 00:00:06,280 Speaker 1: Live from the Bloomberg in Directive Workers Studios. This is 2 00:00:06,320 --> 00:00:10,959 Speaker 1: Bloomberg Daybreak for Monday, July two. Coming up the Shower. 3 00:00:11,240 --> 00:00:14,159 Speaker 1: Investors brace for a pivotal week in the markets. The 4 00:00:14,240 --> 00:00:16,840 Speaker 1: FETE is expected to hike rates by seventy five basis 5 00:00:16,880 --> 00:00:21,240 Speaker 1: points again. Microsoft, Apple, Amazon, and Alphabet are all scheduled 6 00:00:21,239 --> 00:00:24,000 Speaker 1: to report. And a new warning about monkey talks from 7 00:00:24,000 --> 00:00:27,920 Speaker 1: the World Health Organization If he'd advisory extended till tonight 8 00:00:28,040 --> 00:00:30,720 Speaker 1: for parts of the tri State. Donald Trump hands to 9 00:00:30,760 --> 00:00:34,120 Speaker 1: the nation's capital. I'm John Tucker. Those stories straight ahead. 10 00:00:34,360 --> 00:00:36,840 Speaker 1: I'm John Stastow and sports p Alonzo, the Big Glow 11 00:00:36,880 --> 00:00:38,800 Speaker 1: for the met to the one over San Diego, Aaron 12 00:00:38,920 --> 00:00:44,839 Speaker 1: Judge Homeward again the Yankees won in Baltimore. That's all 13 00:00:44,960 --> 00:00:48,680 Speaker 1: training ahead on Bloomberg Daybreak on Bloomberg eleven three, on 14 00:00:48,760 --> 00:00:53,199 Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh 15 00:00:53,280 --> 00:00:57,800 Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius x 16 00:00:57,840 --> 00:01:01,160 Speaker 1: AM one nineteen and around the world on Bloomberg Radio 17 00:01:01,240 --> 00:01:07,959 Speaker 1: dot Com and via the Bloomberg Business App. Good Morning, 18 00:01:08,000 --> 00:01:11,000 Speaker 1: I'm Nathan Hagar, and I'm Karen Moscow and US stock 19 00:01:11,040 --> 00:01:13,800 Speaker 1: index futures are higher this morning. We're coming up to 20 00:01:13,880 --> 00:01:15,560 Speaker 1: five oh one on Wall Street, and we checked the 21 00:01:15,560 --> 00:01:18,720 Speaker 1: markets every fifteen minutes throughout the trading day. On Bloomberg, 22 00:01:18,760 --> 00:01:21,280 Speaker 1: Guess and P Future is up, Abody points down, Future 23 00:01:21,360 --> 00:01:24,280 Speaker 1: is up fifty two, Nasdack futures at thirty one, and 24 00:01:24,319 --> 00:01:27,240 Speaker 1: a ten year Treasury down fifteen thirty seconds, yield two 25 00:01:27,240 --> 00:01:29,800 Speaker 1: point eight zero percent, and the yield on the two 26 00:01:29,880 --> 00:01:33,200 Speaker 1: year at three point zero zero percent. Nathan Karen, we 27 00:01:33,280 --> 00:01:36,560 Speaker 1: begin with this week's highly anticipated FED meeting. The decision 28 00:01:36,600 --> 00:01:40,240 Speaker 1: comes on Wednesday. After raising rates sharply in June, j 29 00:01:40,440 --> 00:01:43,120 Speaker 1: Pal and his colleagues are expected to approve another seventy 30 00:01:43,120 --> 00:01:46,000 Speaker 1: five bases point hike while the Fed titans policy to 31 00:01:46,000 --> 00:01:49,400 Speaker 1: get inflation under control. Treasury Secretary Janet Yellen says she 32 00:01:49,440 --> 00:01:51,560 Speaker 1: does not see any signed the economy is in a 33 00:01:51,560 --> 00:01:56,680 Speaker 1: broad recession. We're likely to see some slowing of job 34 00:01:56,880 --> 00:02:01,040 Speaker 1: creation um, but I do I don't think that's that's 35 00:02:01,040 --> 00:02:05,640 Speaker 1: a recession. A recession is broad based weakness in the economy. 36 00:02:05,840 --> 00:02:09,519 Speaker 1: We're not seeing that now. Treasury Secretary Janet Yellen made 37 00:02:09,520 --> 00:02:12,200 Speaker 1: the comments on NBC's Meet the Press heard Sundays on 38 00:02:12,240 --> 00:02:15,880 Speaker 1: Bloomberg Radio. Well, despite Yellen's comments and Nathan, investors are 39 00:02:15,919 --> 00:02:19,480 Speaker 1: skeptical to Fed contain inflation without a recession. That's according 40 00:02:19,520 --> 00:02:23,000 Speaker 1: to more than a people who responded to a Bloomberg 41 00:02:23,040 --> 00:02:26,360 Speaker 1: and Live Pulse survey Beget more from Bloomberg's Heather Burg. 42 00:02:26,800 --> 00:02:29,720 Speaker 1: Over sixty percent of the respondents in the survey said 43 00:02:29,760 --> 00:02:32,560 Speaker 1: there's a low or zero probability that the FED can 44 00:02:32,600 --> 00:02:36,640 Speaker 1: rein in inflation without causing our recession. And about two 45 00:02:36,680 --> 00:02:39,640 Speaker 1: thirds of the respondents expect the ten er treasury yield 46 00:02:39,880 --> 00:02:42,160 Speaker 1: to peak over the next nine months at the low 47 00:02:42,200 --> 00:02:45,520 Speaker 1: three point seven percent, and most think that the Fed 48 00:02:45,600 --> 00:02:48,680 Speaker 1: is going to start cutting rates in so definitely, it's 49 00:02:48,680 --> 00:02:54,400 Speaker 1: a pretty muted outlook going into Bloomberg's Heather birth says, 50 00:02:54,400 --> 00:02:56,720 Speaker 1: the majority in the survey say the FED funds rate 51 00:02:56,800 --> 00:02:59,840 Speaker 1: will peak at four percent or less. Oh another note 52 00:02:59,840 --> 00:03:02,800 Speaker 1: on inflation, Karen, prices may be close to peaking, but 53 00:03:02,919 --> 00:03:05,639 Speaker 1: they won't come down quickly. That's according to an analysis 54 00:03:05,680 --> 00:03:08,560 Speaker 1: by Bloomberg Economics, which things inflation is likely to stay 55 00:03:08,600 --> 00:03:11,440 Speaker 1: above eight percent through the end of the year. In fact, 56 00:03:11,440 --> 00:03:14,800 Speaker 1: the team's model assigns zero probability that inflation will drop 57 00:03:14,800 --> 00:03:18,280 Speaker 1: below four percent. In the feed is not the only 58 00:03:18,360 --> 00:03:21,080 Speaker 1: thing and focus this week, Nathan, it's also a big 59 00:03:21,200 --> 00:03:23,960 Speaker 1: few days for major tech earnings. You get more from 60 00:03:23,960 --> 00:03:26,799 Speaker 1: Bloomberg SHIRLEYE. Pillett. It's a week one we'll hear from 61 00:03:26,880 --> 00:03:32,000 Speaker 1: names including Alphabet, Apple, Amazon, Microsoft, and Metal Platforms, among 62 00:03:32,080 --> 00:03:35,120 Speaker 1: many others. We will also hear from more than thirty 63 00:03:35,160 --> 00:03:38,480 Speaker 1: percent of S and P five hundred companies. Liz Young 64 00:03:38,640 --> 00:03:41,920 Speaker 1: is head of investment strategy at SO five. Earning season 65 00:03:41,960 --> 00:03:45,480 Speaker 1: has been mixed, not terrible so far, but we have 66 00:03:45,680 --> 00:03:48,440 Speaker 1: heard from a lot of companies that they're thinking the 67 00:03:48,480 --> 00:03:51,160 Speaker 1: following environment is going to be more challenging, so they're 68 00:03:51,160 --> 00:03:54,920 Speaker 1: preparing themselves for that challenge. Also on deck this week 69 00:03:55,000 --> 00:04:01,080 Speaker 1: three m Boeing, Chevron, Coca Cola, GM, Hilton, MasterCard, mcgarld's Proctoring, 70 00:04:01,120 --> 00:04:06,280 Speaker 1: Gamble ups and Visa in New York. Charlie Palett Bloomberg Daybreaking. 71 00:04:06,320 --> 00:04:08,240 Speaker 1: All right, Charlie, thank you, and earnings are all self 72 00:04:08,280 --> 00:04:10,400 Speaker 1: ront and center in Europe this week, let's go live 73 00:04:10,440 --> 00:04:12,560 Speaker 1: to London get the latest with Bloombergs You and Parks. 74 00:04:12,600 --> 00:04:15,160 Speaker 1: Good morning, Good morning, Nathan and Karen A bump a 75 00:04:15,160 --> 00:04:18,600 Speaker 1: week for European earnings. Ryanair has posted a profit for 76 00:04:18,680 --> 00:04:22,279 Speaker 1: the first quarter, ahead of estimates. Europe's largest discount airline 77 00:04:22,279 --> 00:04:25,840 Speaker 1: says it's cautious about bookings, though beyond the current summer 78 00:04:25,880 --> 00:04:30,080 Speaker 1: travel boom. Meanwhile, first half profits slumping at Swiss Swiss 79 00:04:30,160 --> 00:04:34,640 Speaker 1: Wealth Managers Julius bear that's as wild market swings spooks clients. 80 00:04:35,000 --> 00:04:37,479 Speaker 1: And a cut to sales guidance for this year from 81 00:04:37,520 --> 00:04:41,360 Speaker 1: medical equipment maker Phillips. It's been hit by inflationary pressures, 82 00:04:41,440 --> 00:04:45,480 Speaker 1: supply chain troubles and COVID lockdowns in China. Phillips the 83 00:04:45,520 --> 00:04:48,200 Speaker 1: worst performing share on the Stocks hundred today, down more 84 00:04:48,240 --> 00:04:50,720 Speaker 1: than ten percent in London. I'm you in parts been 85 00:04:50,720 --> 00:04:53,839 Speaker 1: book daybreak you, and thank you. In other news this morning, 86 00:04:53,880 --> 00:04:57,200 Speaker 1: international concern is growing over monkey parks. The World Health 87 00:04:57,279 --> 00:05:00,400 Speaker 1: Organization has to clear the monkey parks outbreak a public 88 00:05:00,440 --> 00:05:03,480 Speaker 1: health emergency. We get the latest live from Bloomberg's n 89 00:05:03,600 --> 00:05:05,799 Speaker 1: Need a Young, Good Morning, Rained, A Good morning, Karen. 90 00:05:05,880 --> 00:05:09,120 Speaker 1: The lack of urgency and coordination in testing and treatment 91 00:05:09,200 --> 00:05:11,400 Speaker 1: for the monkey pox virus in many parts of the 92 00:05:11,440 --> 00:05:15,400 Speaker 1: world has prompted the World Health Organization to sound the alarm. 93 00:05:15,800 --> 00:05:18,760 Speaker 1: The virus has spread to about sixteen thousand people in 94 00:05:18,800 --> 00:05:21,680 Speaker 1: more than seventy countries in just a few months, and 95 00:05:21,720 --> 00:05:26,200 Speaker 1: White House COVID nineteen Response Coordinator dr Ashishja says monkey 96 00:05:26,240 --> 00:05:29,960 Speaker 1: pocks can be contained. The way we contain monkey pox 97 00:05:30,160 --> 00:05:32,800 Speaker 1: is we have a very simple, straightforward strategy on this right, 98 00:05:32,839 --> 00:05:35,640 Speaker 1: which is make testing widely available. We have done that, 99 00:05:35,720 --> 00:05:38,360 Speaker 1: and now testing is far more frequent and common. We're 100 00:05:38,360 --> 00:05:41,039 Speaker 1: gonna be releasing hundreds of thousands of more vaccines in 101 00:05:41,080 --> 00:05:45,039 Speaker 1: the next days and weeks. Dr Ashishja made the comments 102 00:05:45,080 --> 00:05:48,040 Speaker 1: on CBSS Face the Nation. You can hear the program 103 00:05:48,080 --> 00:05:51,440 Speaker 1: on Sundays on Bloomberg Radio Live in New York. I'm 104 00:05:51,440 --> 00:05:54,200 Speaker 1: rened a young Bloomberg Radio. All right, Nita, thank you. 105 00:05:54,200 --> 00:05:56,400 Speaker 1: We also have a COVID pandemic we're still under and 106 00:05:56,400 --> 00:05:58,960 Speaker 1: we've got an update this morning on President Biden's condition 107 00:05:59,040 --> 00:06:01,680 Speaker 1: as he recovers from about with the virus. Amy Morris 108 00:06:01,720 --> 00:06:05,240 Speaker 1: has that from our Bloomberg room in Washington. White House 109 00:06:05,240 --> 00:06:09,400 Speaker 1: physician Kevin O'Connor says President biden symptoms are improving significantly, 110 00:06:09,640 --> 00:06:12,920 Speaker 1: with the most prominent symptom now a sore thrope O'Connor 111 00:06:12,920 --> 00:06:15,400 Speaker 1: says the seventy nine year old, who is vaccinated and 112 00:06:15,480 --> 00:06:18,479 Speaker 1: double boosted, is responding to therapy is expected, and his 113 00:06:18,520 --> 00:06:22,080 Speaker 1: other symptoms have diminished considerably. Biden is being treated with 114 00:06:22,120 --> 00:06:24,360 Speaker 1: paxslavi it. He takes Thailand all and has been using 115 00:06:24,360 --> 00:06:26,799 Speaker 1: an inhaler two to three times a day. The White 116 00:06:26,800 --> 00:06:29,760 Speaker 1: House says he's still working as he continues to isolate 117 00:06:30,040 --> 00:06:33,240 Speaker 1: in Washington. I'm Amy Morris Bloomberg debris right, Amy, thank 118 00:06:33,279 --> 00:06:35,800 Speaker 1: you well. Incorporate news. This morning. Apple has announced a 119 00:06:35,880 --> 00:06:38,960 Speaker 1: rare retail promotion in China. It's offering four days of 120 00:06:39,000 --> 00:06:42,680 Speaker 1: discounts on its top tier iPhones and related accessories, aheaded 121 00:06:42,680 --> 00:06:45,640 Speaker 1: a launch of its next generation devices. The company is 122 00:06:45,680 --> 00:06:49,600 Speaker 1: historically reluctant to Walter pricing. The discounts come as China's 123 00:06:49,600 --> 00:06:52,760 Speaker 1: economy tries to bounce back from major COVID lockdowns in 124 00:06:52,839 --> 00:06:56,479 Speaker 1: Shanghai and Beijing. Finally, Karen Elon Musk is denying he 125 00:06:56,560 --> 00:06:59,880 Speaker 1: had an affair with Google co founder Sergey Brinn's wife. 126 00:07:00,000 --> 00:07:02,240 Speaker 1: According to the Wall Street Journal, this alleged affair took 127 00:07:02,279 --> 00:07:05,080 Speaker 1: place in December. The newspaper says it led Brand to 128 00:07:05,160 --> 00:07:08,719 Speaker 1: sell his investments in Musque's companies. Musk says the story 129 00:07:08,760 --> 00:07:11,160 Speaker 1: is untrue and that he's still friends with Bran. Bran 130 00:07:11,440 --> 00:07:15,200 Speaker 1: filed for divorce in January. Straight ahead, we have your 131 00:07:15,240 --> 00:07:18,640 Speaker 1: latest local headlines and a check of sports. This is 132 00:07:18,680 --> 00:07:25,239 Speaker 1: Bloomberg the South five oh seven on Wall Street, eighty 133 00:07:25,280 --> 00:07:27,920 Speaker 1: two degrees in Central Park and an accident already on 134 00:07:27,960 --> 00:07:30,240 Speaker 1: the way to jaff Careport westbound belt Parkway in your 135 00:07:30,240 --> 00:07:33,360 Speaker 1: Cross Bay. Details coming up in traffic. First John Tucker 136 00:07:33,440 --> 00:07:35,040 Speaker 1: with more on what's going on in New York and 137 00:07:35,080 --> 00:07:37,680 Speaker 1: around the world. Good morning, John, Nathan historic Keith has 138 00:07:37,720 --> 00:07:40,760 Speaker 1: many people struggling to pay the utility bills, and as 139 00:07:40,760 --> 00:07:43,760 Speaker 1: Bloomberg's dedas Fella Greeny tells us, the Senate majority of 140 00:07:43,840 --> 00:07:47,720 Speaker 1: Leader Chuck Schumer says people need more help. Senator Schumer 141 00:07:47,760 --> 00:07:52,240 Speaker 1: says demand for New York's federally funded cooling assistance program 142 00:07:52,400 --> 00:07:56,840 Speaker 1: is unprecedented. Area has been such a big demand for 143 00:07:56,960 --> 00:08:00,960 Speaker 1: this program giving the heat way the occasions went up 144 00:08:00,960 --> 00:08:06,400 Speaker 1: from about ten thousand to thirty thousand increase in demand, 145 00:08:06,600 --> 00:08:09,720 Speaker 1: and is proposing adding billions of dollars to the budget 146 00:08:09,760 --> 00:08:12,840 Speaker 1: for the program after it had to stop taking applications 147 00:08:13,040 --> 00:08:15,920 Speaker 1: because it was so oversubscribed to the spell. A greedy 148 00:08:15,920 --> 00:08:19,920 Speaker 1: Blueberg radio a destructive wildfire ne Usemity National Park has 149 00:08:19,960 --> 00:08:23,320 Speaker 1: burned out of control through tinder dry forests and has 150 00:08:23,360 --> 00:08:26,240 Speaker 1: grown into one of California's biggest blazes of the year. 151 00:08:26,600 --> 00:08:30,040 Speaker 1: It's forcing thousands of residents to flee remote mountain communities. 152 00:08:30,400 --> 00:08:33,400 Speaker 1: Sheriff Jeremy Breeze as the fight is far from over. 153 00:08:34,080 --> 00:08:38,679 Speaker 1: There is hot ash, hot trees, still stuff throwing stuff 154 00:08:38,720 --> 00:08:43,079 Speaker 1: over the line, causing US concerns, and two thousand firefighters 155 00:08:43,120 --> 00:08:46,880 Speaker 1: battling the Oak Creek fire facing tough conditions including steep terrains, 156 00:08:46,920 --> 00:08:51,040 Speaker 1: sweltering temperatures, and low humidity. Donald Truphy is coming back 157 00:08:51,040 --> 00:08:55,240 Speaker 1: to Washington as Republican rivals maneuver for a possible primary challenge. 158 00:08:55,720 --> 00:08:59,839 Speaker 1: Lowmakers probe his culpability for the January six insurrection for 159 00:09:00,000 --> 00:09:03,439 Speaker 1: were president with the liberal keynote speech yesterday Tomorrow at 160 00:09:03,440 --> 00:09:07,480 Speaker 1: the America First Agenda Summit, a conservative conference. A live 161 00:09:07,520 --> 00:09:10,480 Speaker 1: stream of a church service in New York was interrupted 162 00:09:10,520 --> 00:09:14,520 Speaker 1: Sunday morning by a robbery. Three gun toting thieves entered 163 00:09:14,559 --> 00:09:18,720 Speaker 1: the Leaders of Tomorrow International Ministries in Brooklyn, demanding valuables 164 00:09:18,720 --> 00:09:21,920 Speaker 1: from the Bishop Lamar Whitehead. You know, took my watch, 165 00:09:21,960 --> 00:09:24,600 Speaker 1: took my jury, took my bishops ring, took my wedding 166 00:09:24,640 --> 00:09:27,720 Speaker 1: ben and then they took my bishops across the bishop says. 167 00:09:27,760 --> 00:09:30,520 Speaker 1: The thieves drove away, drove away in a white Mercedes. 168 00:09:30,960 --> 00:09:33,760 Speaker 1: New York City is ranking n thre in the US 169 00:09:33,840 --> 00:09:36,720 Speaker 1: for public bathrooms per capita, and now there's a bill 170 00:09:36,760 --> 00:09:39,840 Speaker 1: aimed at opening more public bathrooms. It has the support 171 00:09:39,920 --> 00:09:42,480 Speaker 1: to pass the City Council by the end of September. 172 00:09:42,920 --> 00:09:46,120 Speaker 1: The effort comes after widespread shutdowns during the early days 173 00:09:46,160 --> 00:09:49,319 Speaker 1: of the pandemic made it even tougher to find a restroom. 174 00:09:49,640 --> 00:09:52,520 Speaker 1: The m t A, for instance, shuttered all seventy six 175 00:09:52,559 --> 00:09:55,520 Speaker 1: toilets in the subway system. Could the news twenty four 176 00:09:55,559 --> 00:09:57,760 Speaker 1: hours a day on Aaron on Bloomberg Quicktake power by 177 00:09:57,760 --> 00:10:01,680 Speaker 1: more than journalists and analysm more than one hundred twenty countries. 178 00:10:02,040 --> 00:10:04,880 Speaker 1: I'm John Tucker. This is Bloomberg. Nathan, Thank you John. 179 00:10:09,559 --> 00:10:11,600 Speaker 1: Almost five ten on Wall Street. Time for the Bloomberg 180 00:10:11,640 --> 00:10:14,240 Speaker 1: Sports Sunday. Good morning, John Stonshire, Good morning, Nathan, Aaron, 181 00:10:14,320 --> 00:10:17,640 Speaker 1: Judge Peter Alonso, the two New York City Sluggers. They've 182 00:10:17,640 --> 00:10:19,640 Speaker 1: got the two most runs vetted in the majors, and 183 00:10:19,640 --> 00:10:22,960 Speaker 1: they'll be facing on tomorrow Wednesday a brief subway series 184 00:10:22,960 --> 00:10:25,280 Speaker 1: at City Field. Yesterday in Baltimore, another home run for 185 00:10:25,400 --> 00:10:28,520 Speaker 1: Judges thirties seven. He hit three in the series and 186 00:10:28,520 --> 00:10:30,440 Speaker 1: in the game where he did in. Homery had four hits, 187 00:10:30,520 --> 00:10:33,160 Speaker 1: Jose Trevino had four hits, and Nestor Cortez and the 188 00:10:33,240 --> 00:10:36,720 Speaker 1: Yanks shut out the oriol six nothing. Last night City Field, 189 00:10:36,760 --> 00:10:39,280 Speaker 1: Mets held scoreless until the sixth inning. At that point 190 00:10:39,640 --> 00:10:42,400 Speaker 1: they'd only scored two runs in the series. Alonso then 191 00:10:42,520 --> 00:10:45,040 Speaker 1: unloaded three run homer. Mets went on to leave the 192 00:10:45,080 --> 00:10:47,600 Speaker 1: Padres eight to one, and then held on to win 193 00:10:47,679 --> 00:10:50,000 Speaker 1: eight five in Atlanta, law So that met their game 194 00:10:50,040 --> 00:10:52,120 Speaker 1: and a half ahead of the Braves. Among those and 195 00:10:52,240 --> 00:10:55,120 Speaker 1: ductor of the Baseball Hall of Fame, Gil Hodges, fifteen 196 00:10:55,200 --> 00:10:57,640 Speaker 1: years after his death, he was one of the Boys 197 00:10:57,679 --> 00:11:01,480 Speaker 1: of Summer bolog Brooklyn Dodger for Spaceman. His daughter Irene 198 00:11:01,920 --> 00:11:05,320 Speaker 1: made his induction speech. When my father slumped in the 199 00:11:05,440 --> 00:11:11,400 Speaker 1: nineteen fifty two World Series, Brooklyn fans loved him. Who 200 00:11:11,440 --> 00:11:16,240 Speaker 1: goes over one and gets the standing ovation every time 201 00:11:16,360 --> 00:11:18,560 Speaker 1: at bat Mets fans loved him too. I just, of 202 00:11:18,600 --> 00:11:21,240 Speaker 1: course the manager of the Miracle Mets in nineteen sixty nine, 203 00:11:21,600 --> 00:11:25,800 Speaker 1: Cleon Jones Ed Cranepool, Art shampste Ron Swavoda and the 204 00:11:25,920 --> 00:11:28,040 Speaker 1: daughter of the late Tom Siever. We're all there in 205 00:11:28,080 --> 00:11:31,599 Speaker 1: Cooperstown where David Ortiz, Jim Cott, Tony Oliva and the 206 00:11:31,640 --> 00:11:34,720 Speaker 1: late Mini Minosa and Buck O'Neal were all inducted as well. 207 00:11:35,080 --> 00:11:37,559 Speaker 1: Three AM Golf at Minnesota, Tony fine out trailed by 208 00:11:37,600 --> 00:11:40,440 Speaker 1: five shots with eleven holes to play, and he won 209 00:11:40,600 --> 00:11:44,000 Speaker 1: by three. John stash Award Bloomberg Sports Nathan, Thank you John. 210 00:11:44,080 --> 00:11:46,760 Speaker 1: Right now, SMP futures are up ten points, staff futures 211 00:11:46,840 --> 00:11:49,280 Speaker 1: up seventy six. Dance dec futures are highed by thirty 212 00:11:49,320 --> 00:11:52,560 Speaker 1: six points. The tain your treasury is down sixteen thirty 213 00:11:52,559 --> 00:11:56,400 Speaker 1: seconds yield two point eight zero per cent on FED 214 00:11:56,480 --> 00:11:59,280 Speaker 1: decision week. We'll take a look at these markets next 215 00:11:59,280 --> 00:12:01,880 Speaker 1: with Lorie Calvin seen ahead of US Equity strategy at 216 00:12:01,960 --> 00:12:08,800 Speaker 1: RBC Capital Markets. This is Bloomberg Bloomberg eleven three oh weather. 217 00:12:08,840 --> 00:12:10,680 Speaker 1: We got a heat advisory till eight pm for parts 218 00:12:10,679 --> 00:12:12,800 Speaker 1: of northern New Jersey, will get in your ninety today, 219 00:12:12,880 --> 00:12:16,920 Speaker 1: mid eighties, less humid tomorrow, oper eighties on Wednesday right 220 00:12:16,960 --> 00:12:24,160 Speaker 1: now two in Central Park Markets, headlines and breaking news 221 00:12:24,280 --> 00:12:26,839 Speaker 1: twenty four hours a day at Bloomberg dot Com and 222 00:12:26,920 --> 00:12:31,040 Speaker 1: Bloomberg Business Outland. At Bloomberg Quick Tape, He's a Bloomberg 223 00:12:31,120 --> 00:12:40,520 Speaker 1: Business Flash and I'm Karen Moscow. US dot Index futures 224 00:12:40,520 --> 00:12:43,920 Speaker 1: on the rise this morning, while European shares are little change. 225 00:12:44,040 --> 00:12:46,839 Speaker 1: Treasury yields advancing. We checked the markets every fifteen minutes 226 00:12:46,840 --> 00:12:49,400 Speaker 1: throughout the trading day on Bloomberg right now, s and 227 00:12:49,440 --> 00:12:51,920 Speaker 1: P futures are up about eleven foys down futures of 228 00:12:52,040 --> 00:12:54,840 Speaker 1: A D two and nasdack futures of thirty nine. The 229 00:12:54,960 --> 00:12:57,840 Speaker 1: Daccine Germany is higher, up about two tents of upper 230 00:12:57,920 --> 00:13:00,880 Speaker 1: cent ten year treasury down seventeen thirty seconds. He had 231 00:13:00,920 --> 00:13:03,000 Speaker 1: two point eight one percent. They yield on the two 232 00:13:03,080 --> 00:13:06,280 Speaker 1: years at three percent. Nivex screwed oil is up six 233 00:13:06,280 --> 00:13:09,040 Speaker 1: tents percent, or fifty seven cents at ninety five twenty 234 00:13:09,080 --> 00:13:11,440 Speaker 1: eight cents a barrel. Comics gold is up a tenth 235 00:13:11,440 --> 00:13:14,920 Speaker 1: of a percent of a dollar seventy at seventeen forty seven, 236 00:13:14,880 --> 00:13:17,960 Speaker 1: announced the euro one point oh two four three against 237 00:13:18,040 --> 00:13:20,520 Speaker 1: the dollar, British pound one point to zero four two 238 00:13:20,559 --> 00:13:23,560 Speaker 1: and again one thirty six point three nine and looking 239 00:13:23,600 --> 00:13:25,959 Speaker 1: at bitcoin, it's down the most three percent at twenty 240 00:13:25,960 --> 00:13:30,120 Speaker 1: two thousand fifty dollars. And German business confidence deteriorated to 241 00:13:30,120 --> 00:13:32,600 Speaker 1: the worst level since the early months of the pandemic 242 00:13:32,679 --> 00:13:36,679 Speaker 1: on growing concerns that record inflation and limited energy supplies 243 00:13:36,679 --> 00:13:39,880 Speaker 1: from Russia will our Europe's biggest economy into a downturn. 244 00:13:40,080 --> 00:13:42,520 Speaker 1: As a Bloomberg Business flash, now here's John Tucker with 245 00:13:42,600 --> 00:13:45,080 Speaker 1: more on what's going on around the world. John, Good morning, 246 00:13:45,200 --> 00:13:48,720 Speaker 1: Good morning, Tarring the international concern growing over Monkey Box, 247 00:13:49,040 --> 00:13:52,120 Speaker 1: the World Health Organization has declared the monkey Box outbreak 248 00:13:52,120 --> 00:13:55,600 Speaker 1: a public health emergency the White House physicians as President 249 00:13:55,640 --> 00:13:59,040 Speaker 1: Joe Biden is improving from his COVID nineteen infection. And 250 00:13:59,160 --> 00:14:02,960 Speaker 1: a distracted unidfire near you Sebody National Park burning out 251 00:14:02,960 --> 00:14:07,320 Speaker 1: of control through Tinder Drive forest, thousands of residents have 252 00:14:07,360 --> 00:14:10,880 Speaker 1: been evacuated. Sports The Yankees beat the Orioles, the Men's 253 00:14:10,880 --> 00:14:13,480 Speaker 1: stop the Pondres, the Red Sox fold of the Blue Jays, 254 00:14:13,520 --> 00:14:17,160 Speaker 1: Dodgers beat the Giants, and the Nationals, Beat the Diamondbacks 255 00:14:17,160 --> 00:14:19,600 Speaker 1: Global News twenty four hours a day on There and 256 00:14:19,640 --> 00:14:22,560 Speaker 1: on Bloomberg cuicktake Power by more than twenty seven hundred 257 00:14:22,600 --> 00:14:26,080 Speaker 1: journalists and analysts in more than one hundred twenty countries. 258 00:14:26,360 --> 00:14:30,200 Speaker 1: On John Tucker, This is Bloomberg. Thankay, John, Thank you. 259 00:14:30,240 --> 00:14:32,640 Speaker 1: It's five nineteen on Wall Street Live from the Bloomberg 260 00:14:32,640 --> 00:14:36,360 Speaker 1: Interactive Broker Studios. This is Bloomberg Daybreak. As we get 261 00:14:36,400 --> 00:14:40,239 Speaker 1: started on a very important week for investors. Lori Calvacina 262 00:14:40,400 --> 00:14:42,840 Speaker 1: is with us this morning, Head of US Equity Strategy 263 00:14:43,160 --> 00:14:46,160 Speaker 1: at RBC Capital Markets. Lori, it's great to speak with 264 00:14:46,200 --> 00:14:47,920 Speaker 1: you this morning while we all get ready for this 265 00:14:48,000 --> 00:14:52,000 Speaker 1: FED decision coming up on Wednesday. The markets have pretty 266 00:14:52,040 --> 00:14:54,880 Speaker 1: much priced in a seventy five basis point rate hike. 267 00:14:55,000 --> 00:14:57,200 Speaker 1: What do you think the market reaction is going to 268 00:14:57,240 --> 00:15:01,880 Speaker 1: be from whatever the Fed does decide on Wednesday? Well, well, 269 00:15:01,880 --> 00:15:04,200 Speaker 1: thanks for having me. As always, I think that, as 270 00:15:04,240 --> 00:15:06,880 Speaker 1: always with these events, it's really more about the details, 271 00:15:07,080 --> 00:15:09,520 Speaker 1: um in terms of the commentary that's made afterwards, and 272 00:15:09,600 --> 00:15:11,720 Speaker 1: at least at this point in time, it seems like 273 00:15:11,760 --> 00:15:13,880 Speaker 1: there's pretty much of a consensus in terms of what 274 00:15:13,880 --> 00:15:15,480 Speaker 1: the set is going to do. But I really think 275 00:15:15,480 --> 00:15:17,920 Speaker 1: it's a forward look. One of the things that you know, 276 00:15:17,960 --> 00:15:21,200 Speaker 1: I continue to talk to investors about is just the 277 00:15:21,200 --> 00:15:24,600 Speaker 1: whole sensitivity of the FED to how these policies are 278 00:15:24,600 --> 00:15:27,480 Speaker 1: reverberating in the economy. So I think if there is 279 00:15:27,520 --> 00:15:29,840 Speaker 1: any indication that the SID is sensitive to that issue, 280 00:15:29,880 --> 00:15:32,160 Speaker 1: I think that's something equity investors would hear. But of course, 281 00:15:32,200 --> 00:15:34,360 Speaker 1: you know, unfortunately don't have a crystal ball, so it's 282 00:15:34,400 --> 00:15:36,600 Speaker 1: hard to say exactly what Powell will say. But I 283 00:15:36,600 --> 00:15:39,520 Speaker 1: think that sort of understanding the SED sensitivity there is 284 00:15:39,560 --> 00:15:42,040 Speaker 1: something equity investors are always keen to know. Now we 285 00:15:42,120 --> 00:15:45,320 Speaker 1: sort of have a dueling forecast for what the FED 286 00:15:45,440 --> 00:15:49,920 Speaker 1: could do as we get further along in this tightening cycle. 287 00:15:50,000 --> 00:15:53,920 Speaker 1: We've heard from Morgan Stanley strategists saying that the recession 288 00:15:54,040 --> 00:15:56,960 Speaker 1: risk is growing and that stocks may have more room 289 00:15:57,040 --> 00:15:59,760 Speaker 1: to fall here, while JP Morgan Chase is saying that 290 00:16:00,200 --> 00:16:03,640 Speaker 1: maybe inflations peaked and there could be tail winds for stocks. 291 00:16:03,640 --> 00:16:07,760 Speaker 1: What's your view on recession risk going forward? So I'll 292 00:16:07,800 --> 00:16:09,960 Speaker 1: tell you that I'm in the camps that agrees that 293 00:16:10,000 --> 00:16:12,200 Speaker 1: the recession risks have risen and we do need to 294 00:16:12,200 --> 00:16:14,320 Speaker 1: be vigilant. But I'm an equity strategist, so I care 295 00:16:14,360 --> 00:16:16,880 Speaker 1: about how equity markets digest us as opposed to making 296 00:16:16,920 --> 00:16:19,840 Speaker 1: the economic call. And I will tell you that draw 297 00:16:19,880 --> 00:16:22,160 Speaker 1: down already in the S and T it's come very 298 00:16:22,280 --> 00:16:24,600 Speaker 1: very close, and that's where we're at the low and 299 00:16:24,680 --> 00:16:26,760 Speaker 1: mid June. It's come very close to pricing and a 300 00:16:26,840 --> 00:16:29,280 Speaker 1: typical recession. And if you look at small cap stocks, 301 00:16:29,280 --> 00:16:32,880 Speaker 1: they essentially are pricing in a recession. They're already pricing in, 302 00:16:33,040 --> 00:16:35,360 Speaker 1: for example, a big spike and job with claims. They're 303 00:16:35,400 --> 00:16:38,880 Speaker 1: already pricing in a plunge in I S M manufacturing 304 00:16:38,960 --> 00:16:40,800 Speaker 1: back to trough like levels if you just look at 305 00:16:40,800 --> 00:16:43,560 Speaker 1: the relationship between the performance of those stocks and those 306 00:16:43,600 --> 00:16:46,720 Speaker 1: economic indicators I mentioned. So I am more interested these 307 00:16:46,800 --> 00:16:49,640 Speaker 1: days in adding on to rebound trades. We think that 308 00:16:49,680 --> 00:16:53,360 Speaker 1: the fensage are overbought and overvalued at this point in time. Um, 309 00:16:53,360 --> 00:16:55,320 Speaker 1: And I will just tell you John that if you 310 00:16:55,400 --> 00:16:58,680 Speaker 1: go through the e c SC function on Bloomberg, which 311 00:16:58,720 --> 00:17:00,880 Speaker 1: is something I do quite frequently, there aren't that many 312 00:17:00,920 --> 00:17:03,720 Speaker 1: economists that are actually calling for an outright recession, but 313 00:17:03,840 --> 00:17:06,960 Speaker 1: voices calling for the recession are quite loud, but if 314 00:17:06,960 --> 00:17:09,840 Speaker 1: you look at streak a consensus economic forecast, it's really 315 00:17:09,840 --> 00:17:12,400 Speaker 1: more for something coming close to contraction in the fourth 316 00:17:12,480 --> 00:17:15,919 Speaker 1: quarter and really moderating to below trend type levels. And 317 00:17:15,920 --> 00:17:18,400 Speaker 1: I think that's what equities are digesting at this point 318 00:17:18,400 --> 00:17:21,600 Speaker 1: in time. Late last week, you made a pretty significant 319 00:17:21,640 --> 00:17:24,960 Speaker 1: call to go overweight now on small caps stocks. Talk 320 00:17:25,000 --> 00:17:27,520 Speaker 1: a little bit more about that. Why you're thinking that 321 00:17:27,600 --> 00:17:31,240 Speaker 1: we should be cutting more toward small caps as opposed 322 00:17:31,280 --> 00:17:33,960 Speaker 1: to larger ones. Yeah, so, John, small caps are my 323 00:17:34,000 --> 00:17:37,199 Speaker 1: first professional child. Has spent about seven years exclusively covering 324 00:17:37,200 --> 00:17:39,560 Speaker 1: the space back in the day um, including the ol 325 00:17:39,760 --> 00:17:41,600 Speaker 1: oh you know, kind of oh nine period, which was 326 00:17:41,680 --> 00:17:44,439 Speaker 1: quite dicey for the asset class. And you know, one 327 00:17:44,480 --> 00:17:46,760 Speaker 1: of the things we know about small caps as they 328 00:17:46,800 --> 00:17:48,920 Speaker 1: do tend to price in risks quite early. So I 329 00:17:48,960 --> 00:17:52,439 Speaker 1: mentioned they're already pricing in this big deterioration. Certain uh 330 00:17:52,760 --> 00:17:55,119 Speaker 1: very's sensitive economic indicators. But if you look at the 331 00:17:55,160 --> 00:17:58,920 Speaker 1: valuations where at historic lows and small verses large um. 332 00:17:58,960 --> 00:18:01,080 Speaker 1: You're also if you back at mid June, we were 333 00:18:01,080 --> 00:18:04,119 Speaker 1: trading around eleven times a forward pe multiple and the 334 00:18:04,160 --> 00:18:06,680 Speaker 1: Russell two thousand, and that is typically where the index 335 00:18:06,720 --> 00:18:09,879 Speaker 1: bottoms out at If you also look at c FTC positioning, 336 00:18:09,960 --> 00:18:13,200 Speaker 1: data positioning among asset managers and features, market for Russell 337 00:18:13,200 --> 00:18:17,960 Speaker 1: two thousand features was well below financial crisis lows, making 338 00:18:18,080 --> 00:18:22,399 Speaker 1: essentially massively new all time lows. That is astounding to me. 339 00:18:22,520 --> 00:18:24,280 Speaker 1: It tells me, whatever your view of whether or not 340 00:18:24,359 --> 00:18:27,040 Speaker 1: recession is coming, this is one area of the market 341 00:18:27,040 --> 00:18:29,560 Speaker 1: where it has clearly been baked in. And we do 342 00:18:29,640 --> 00:18:33,320 Speaker 1: know going back over time, recessions are historically fantastic buying 343 00:18:33,320 --> 00:18:37,240 Speaker 1: opportunities for small caps like underperformed going in midway through 344 00:18:37,240 --> 00:18:39,280 Speaker 1: the recession, you tend to see a big pivot and 345 00:18:39,320 --> 00:18:42,280 Speaker 1: they outperform very strongly on the way out. And we 346 00:18:42,320 --> 00:18:44,600 Speaker 1: think that we're getting closer to that inflection point if 347 00:18:44,600 --> 00:18:47,240 Speaker 1: we aren't at it already got about him in left here, Laurie. 348 00:18:47,240 --> 00:18:48,960 Speaker 1: We are going to hear from some big names in 349 00:18:49,040 --> 00:18:52,560 Speaker 1: big tech this week in earnings. What's your expectation there? 350 00:18:53,720 --> 00:18:55,879 Speaker 1: So I think that this is a bell Weather group. Um, 351 00:18:56,119 --> 00:18:57,679 Speaker 1: you know, I do sort of, you know, care more 352 00:18:57,720 --> 00:19:00,760 Speaker 1: about what classic tech is saying as opposed to communications 353 00:19:00,840 --> 00:19:04,480 Speaker 1: services internet type names. Um, you know, we're we very 354 00:19:04,600 --> 00:19:07,200 Speaker 1: keenly watched the software companies to see what the clues 355 00:19:07,200 --> 00:19:09,040 Speaker 1: are in the corporate behavior. And I think for the 356 00:19:09,040 --> 00:19:12,560 Speaker 1: corporate reaction, UM is going to really tell us how 357 00:19:12,640 --> 00:19:16,159 Speaker 1: deep for this economic carnage economic damage that we may 358 00:19:16,200 --> 00:19:18,639 Speaker 1: be facing gets UM. So I think that's really what 359 00:19:18,680 --> 00:19:20,320 Speaker 1: I'm going to be looking for. But I do think 360 00:19:20,320 --> 00:19:23,040 Speaker 1: the text stocks are reasonably valued at this point in time. 361 00:19:23,119 --> 00:19:26,400 Speaker 1: So let's keep a close eye on the commentary. Yeah, 362 00:19:26,440 --> 00:19:28,760 Speaker 1: we'll be watching for Thanks as always, LORI, great to 363 00:19:28,760 --> 00:19:31,200 Speaker 1: have you on with us. Lori Calvacina, head of US 364 00:19:31,240 --> 00:19:35,640 Speaker 1: Equity Strategy at RBC Capital Markets. Right now, SMP futures 365 00:19:35,640 --> 00:19:38,760 Speaker 1: are up thirteen points, STOUT futures up ninety NASTAC futures 366 00:19:38,760 --> 00:19:41,600 Speaker 1: are higher by fifty one points. Tend your Treasury is 367 00:19:41,640 --> 00:19:45,600 Speaker 1: down fifteen thirty seconds. The yield two point eight zero percent. 368 00:19:45,960 --> 00:19:48,760 Speaker 1: Yield on the two year right now two point nine 369 00:19:48,880 --> 00:19:52,960 Speaker 1: nine percent just ahead Why Treasury Secretary Yellin says she 370 00:19:53,040 --> 00:19:57,560 Speaker 1: does not see recession in the US economy. And Bloomberg 371 00:19:57,880 --> 00:20:01,680 Speaker 1: m Live Pulse survey on where the Fed is going 372 00:20:01,720 --> 00:20:08,280 Speaker 1: when it comes to inflation. This is Bloomberg Bloomberg eleven 373 00:20:08,320 --> 00:20:10,400 Speaker 1: three oh weather heat advisory for parts of northern New 374 00:20:10,440 --> 00:20:13,159 Speaker 1: Jersey today till eight pm. We're all getting them near 375 00:20:13,280 --> 00:20:16,640 Speaker 1: ninety degrees today, mid eighties tomorrow upr eighties by Wednesday 376 00:20:17,080 --> 00:20:26,119 Speaker 1: two is the current temperature in Central Park. Broadcasting live 377 00:20:26,280 --> 00:20:30,240 Speaker 1: from the Bloomberg Interactive Broker's studio in New York, Bloomberg 378 00:20:30,240 --> 00:20:33,360 Speaker 1: E Living Freedom to Washington, d C, Bloomberg nine nine 379 00:20:33,440 --> 00:20:36,960 Speaker 1: one to Boston, Bloomberg one All six one to San Francisco, 380 00:20:37,040 --> 00:20:40,439 Speaker 1: Bloomberg M sixteen to the country Sirius XM Cho one 381 00:20:40,560 --> 00:20:43,480 Speaker 1: nine teen, and around the globe the Bloomberg Business app 382 00:20:43,600 --> 00:20:53,480 Speaker 1: in Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's 383 00:20:53,480 --> 00:20:55,720 Speaker 1: five thirty on Wall Street. Good morning. I'm Nathan Hagar 384 00:20:56,000 --> 00:20:58,719 Speaker 1: and I'm Karen mos Gali. Are just about four hours 385 00:20:58,760 --> 00:21:00,960 Speaker 1: away from the open of US training. Must get you 386 00:21:01,000 --> 00:21:02,399 Speaker 1: up to date on the news you need to know 387 00:21:02,440 --> 00:21:05,320 Speaker 1: at this hour. We begin with this week's highly anticipated 388 00:21:05,359 --> 00:21:08,359 Speaker 1: FED meeting, when Chair J. Powell and his colleagues are 389 00:21:08,400 --> 00:21:11,600 Speaker 1: expected to once again approve US seventy five basis point 390 00:21:11,680 --> 00:21:14,919 Speaker 1: hike so far. Our Treasury Secretary Janet Yellen says she 391 00:21:15,040 --> 00:21:18,240 Speaker 1: does not believe the US economy is in a broad recession, 392 00:21:18,520 --> 00:21:22,600 Speaker 1: but inflation is still a concern. Inflation is way too high. 393 00:21:22,960 --> 00:21:26,919 Speaker 1: The FED is charged with putting in place policies that 394 00:21:27,000 --> 00:21:31,640 Speaker 1: will bring inflation down, and I expect them to be successful. 395 00:21:32,960 --> 00:21:36,080 Speaker 1: Treasury Secretary Janet Yellen made the comments on NBC's Meet 396 00:21:36,119 --> 00:21:38,320 Speaker 1: the Press, and you can hear the program Sundays on 397 00:21:38,440 --> 00:21:41,840 Speaker 1: Bloomberg Radio. Well, despite what Yelling saying, Karen, investors remain 398 00:21:41,920 --> 00:21:44,320 Speaker 1: skeptical that the Fed will contain inflation. That's according to 399 00:21:44,359 --> 00:21:46,800 Speaker 1: more than people who took part in a Bloomberg m 400 00:21:46,840 --> 00:21:49,359 Speaker 1: Live Pulse survey, and according to a new model from 401 00:21:49,359 --> 00:21:52,760 Speaker 1: Bloomberg Economics, inflation is very likely to stay above eight 402 00:21:52,760 --> 00:21:56,040 Speaker 1: percent through year end. Well, Nathan. Big tech earnings are 403 00:21:56,080 --> 00:22:00,760 Speaker 1: also in focus on Wall Street. We'll hear from Alphabet, Apple, Amazon, Microsoft, 404 00:22:00,800 --> 00:22:04,040 Speaker 1: and Meta this week. They joined more than S and 405 00:22:04,080 --> 00:22:07,560 Speaker 1: P five companies scheduled to report. Well Apart from corporate 406 00:22:07,560 --> 00:22:11,200 Speaker 1: news this morning, Karen, International concern is growing over monkey pox. 407 00:22:11,400 --> 00:22:13,879 Speaker 1: The World Health Organization has declared the outbreak of public 408 00:22:13,920 --> 00:22:16,399 Speaker 1: health emergency, and we get the latest live from Bloomberg's 409 00:22:16,400 --> 00:22:18,840 Speaker 1: We Needed Young. Good morning, Rida, Good morning Nathan. The 410 00:22:18,920 --> 00:22:22,040 Speaker 1: lack of urgency and coordination in testing and treatment. For 411 00:22:22,080 --> 00:22:24,320 Speaker 1: the monkey pox virus in many parts of the world 412 00:22:24,600 --> 00:22:27,920 Speaker 1: has prompted the World Health Organization to sound the alarm. 413 00:22:28,320 --> 00:22:31,359 Speaker 1: The virus has spread to about sixteen thousand people in 414 00:22:31,440 --> 00:22:34,439 Speaker 1: more than seventy countries in just a few months, and 415 00:22:34,560 --> 00:22:38,919 Speaker 1: White House COVID nineteen response Coordinator dr Ashishja says monkey 416 00:22:38,960 --> 00:22:42,480 Speaker 1: poks can be contained. The way we contain monkey pox 417 00:22:42,720 --> 00:22:45,359 Speaker 1: is we have a very simple, straightforward strategy on this right, 418 00:22:45,400 --> 00:22:48,199 Speaker 1: which is make testing widely available. We have done that 419 00:22:48,280 --> 00:22:50,920 Speaker 1: and now testing is far more frequent and common. We're 420 00:22:50,920 --> 00:22:53,520 Speaker 1: going to be releasing hundreds of thousands of more vaccines 421 00:22:53,520 --> 00:22:57,159 Speaker 1: in the next days and weeks. Dr Ashisa made the 422 00:22:57,200 --> 00:23:00,240 Speaker 1: comments on CBSS Face the Nation. You can you the 423 00:23:00,280 --> 00:23:04,240 Speaker 1: program Sundays on Bloomberg Radio Live in New York. I'm 424 00:23:04,240 --> 00:23:06,959 Speaker 1: Renda Young Bloomberg Radio. All right. Rened to thank you, 425 00:23:07,000 --> 00:23:09,879 Speaker 1: and we've an update from the Biden administration. After the 426 00:23:09,960 --> 00:23:13,440 Speaker 1: President tested positive for COVID nineteen last week. White House 427 00:23:13,440 --> 00:23:16,720 Speaker 1: physician Kevin O'Connor says President Biden has a sore throat, 428 00:23:16,920 --> 00:23:21,000 Speaker 1: but his symptoms have improved significantly. Again. Futures are higher 429 00:23:21,040 --> 00:23:24,200 Speaker 1: this morning. SMP futures up twelve points and down futures 430 00:23:24,200 --> 00:23:27,159 Speaker 1: of eighty nine NAS day futures up forty five ten 431 00:23:27,240 --> 00:23:30,480 Speaker 1: year treasury down fifteen thirty seconds held two point eight 432 00:23:30,560 --> 00:23:33,600 Speaker 1: zero percent. Straight ahead your latest local headlines, and this 433 00:23:33,920 --> 00:23:39,920 Speaker 1: is Bloomberg. Thanks Caring. It's five thirty three on Wall 434 00:23:39,920 --> 00:23:42,159 Speaker 1: Street where eighty two degrees in Central Park and got 435 00:23:42,200 --> 00:23:44,840 Speaker 1: a new accident your Lagardy Airport on the westbound Grand 436 00:23:44,920 --> 00:23:48,000 Speaker 1: Central Parkway. Details coming up in traffic. First John Tucker 437 00:23:48,040 --> 00:23:49,639 Speaker 1: with more on what's going on in New York and 438 00:23:49,720 --> 00:23:52,640 Speaker 1: around the world. John Nathan, The heat is on again. 439 00:23:52,960 --> 00:23:55,679 Speaker 1: A heat advisory remains that affect for parts of northern 440 00:23:55,720 --> 00:23:59,120 Speaker 1: New Jersey until tonight. Bob Bloomberg. Media Rama justist Gary 441 00:23:59,200 --> 00:24:03,640 Speaker 1: Vast tells us relief is in sight. John, A big 442 00:24:03,640 --> 00:24:05,760 Speaker 1: gridgi of high pressure that's been responsible for all our 443 00:24:05,800 --> 00:24:08,159 Speaker 1: heating commidity will begin to break down a bit through today, 444 00:24:08,359 --> 00:24:10,600 Speaker 1: so that's gonna be more seasable weather coming up here 445 00:24:10,760 --> 00:24:13,040 Speaker 1: for much of this week, with temperatures mainly sitting in 446 00:24:13,080 --> 00:24:15,320 Speaker 1: the eighties, and the commity will be on the moderate 447 00:24:15,320 --> 00:24:17,840 Speaker 1: to highside at times. See in Newark, New Jersey, there 448 00:24:17,840 --> 00:24:20,560 Speaker 1: have been five straight days of hitting one hundred degrees 449 00:24:20,960 --> 00:24:24,080 Speaker 1: that's the longest stretch on Rancord. At least two thousand 450 00:24:24,119 --> 00:24:28,200 Speaker 1: firefighters battling a raging wildfire just west of Yosemite National Park. 451 00:24:28,640 --> 00:24:31,480 Speaker 1: More than six thousand residents have been forced from their homes. 452 00:24:31,840 --> 00:24:35,800 Speaker 1: Extreme drought fueling the flames. Califire Battalion Chief John Heggie, 453 00:24:36,200 --> 00:24:38,600 Speaker 1: we're seeing that when change throughout the day, which really 454 00:24:38,640 --> 00:24:40,560 Speaker 1: kind of puts the firefront in different areas as we 455 00:24:40,720 --> 00:24:44,280 Speaker 1: despight the fire. California's governor has declared a state of emergency. 456 00:24:44,720 --> 00:24:48,119 Speaker 1: Donald Trump will test his winning appeal among Republicans with 457 00:24:48,200 --> 00:24:51,520 Speaker 1: a visit to the nation's capital. More from Bloomberg's Ain't 458 00:24:51,560 --> 00:24:54,960 Speaker 1: Need Morris. The former president will deliver a keynote speech 459 00:24:55,000 --> 00:24:57,639 Speaker 1: tomorrow at the America First Agenda Summit in Washington, a 460 00:24:57,640 --> 00:25:00,920 Speaker 1: conservative conference. His remarks come the heels of a House 461 00:25:00,920 --> 00:25:05,880 Speaker 1: Committee hearing that portrayed him standing by indifferently, even vindictively, 462 00:25:06,160 --> 00:25:09,200 Speaker 1: for hours as a mob of his supporters battled police 463 00:25:09,400 --> 00:25:12,439 Speaker 1: and chased lawmakers through the halls of the capital. Trump 464 00:25:12,520 --> 00:25:14,920 Speaker 1: is not expected to announce a third run for president 465 00:25:14,960 --> 00:25:18,080 Speaker 1: in his Washington speech. His former Vice president, Mike Penns, 466 00:25:18,119 --> 00:25:22,000 Speaker 1: will deliver remarks of his own scheduled for today in Washington. 467 00:25:22,080 --> 00:25:24,800 Speaker 1: I'm anymore as Bloomberg day Break. He was instrumental in 468 00:25:24,840 --> 00:25:29,280 Speaker 1: getting Republican George Pataki elected governor at Aldamtto elected Senator. 469 00:25:29,320 --> 00:25:32,680 Speaker 1: In New York, former state Conservative Party chairman Michael Long 470 00:25:32,720 --> 00:25:36,320 Speaker 1: has died. He was eight two, and Pope Francis landed 471 00:25:36,359 --> 00:25:39,800 Speaker 1: in Canada Ian what's been called a penitential journey, a 472 00:25:39,880 --> 00:25:43,879 Speaker 1: journey that too apologize to Canada's indigenous people for the 473 00:25:43,920 --> 00:25:47,760 Speaker 1: abuse of children in residential schools going back to the 474 00:25:47,840 --> 00:25:50,840 Speaker 1: nineteenth century. Global News twenty four hours a day on 475 00:25:50,920 --> 00:25:54,080 Speaker 1: Aeron on Bloomberg Quicktake, powered by more than twenty seven 476 00:25:54,119 --> 00:25:57,200 Speaker 1: hundred journalists and analysts and more than one twenty countries. 477 00:25:57,600 --> 00:26:05,960 Speaker 1: John Tucker, this is Bloomberg, Nathan. Thank you. John thirty 478 00:26:06,000 --> 00:26:08,240 Speaker 1: five on Wall Street Time for the Bloomberg Sports Update 479 00:26:08,280 --> 00:26:10,480 Speaker 1: with John Stesshow all right, Nathan, Mets had lost three 480 00:26:10,480 --> 00:26:12,720 Speaker 1: in a row, had only scored four runs in those 481 00:26:12,720 --> 00:26:15,119 Speaker 1: three games. They began to day with their lead over Atlanta. 482 00:26:15,240 --> 00:26:17,159 Speaker 1: There was once ten and a half games down to 483 00:26:17,240 --> 00:26:19,240 Speaker 1: just a half game, the bravest loss, So the Mets 484 00:26:19,359 --> 00:26:20,800 Speaker 1: knew they were not gonna fall out of first, but 485 00:26:21,080 --> 00:26:23,920 Speaker 1: their bats were quiet for five innings against the Padres 486 00:26:23,960 --> 00:26:26,679 Speaker 1: Joe Musgrove and then in the sixth maybe their biggest 487 00:26:26,760 --> 00:26:29,080 Speaker 1: hit of the season. Here at the pitch, So we're 488 00:26:29,080 --> 00:26:32,200 Speaker 1: gonna high five ball well hit up center peas on 489 00:26:32,359 --> 00:26:37,040 Speaker 1: the way there we go are run Homer Pino, wats 490 00:26:37,080 --> 00:26:40,520 Speaker 1: holl Over the great Wall of using to the right 491 00:26:40,640 --> 00:26:45,400 Speaker 1: up the three seventy, Mark Petolatzol this crowd here at 492 00:26:46,160 --> 00:26:48,920 Speaker 1: New CBS. Mets tacked on five more runs lad eight 493 00:26:49,000 --> 00:26:51,320 Speaker 1: to one, then held on beat San Diego eight five, 494 00:26:51,359 --> 00:26:53,320 Speaker 1: and inted Edwin Diaz to close it out, got his 495 00:26:53,359 --> 00:26:56,680 Speaker 1: twenty first save. Mets off today host the Yankees Tomorrow. 496 00:26:56,760 --> 00:26:59,720 Speaker 1: Yanks in Baltimore shut out the Orioles six nothing. Nest 497 00:27:00,080 --> 00:27:02,600 Speaker 1: Ortes the first six innings, Clark Schmidt the last three, 498 00:27:02,600 --> 00:27:05,080 Speaker 1: four hits for Jose Travino at another home run for 499 00:27:05,160 --> 00:27:08,359 Speaker 1: Aaron Judges thirty seven. Houston right behind the Yanks. They 500 00:27:08,359 --> 00:27:11,560 Speaker 1: finished a sweep in Seattle. The Mariners started that series 501 00:27:11,600 --> 00:27:14,920 Speaker 1: writing a fourteen game winning streith. The Red Sox lost 502 00:27:14,960 --> 00:27:17,359 Speaker 1: their fifth in a row, swept at home by Toronto. 503 00:27:17,560 --> 00:27:21,199 Speaker 1: During the losing street, the Red Sox allowed sixty seven 504 00:27:21,280 --> 00:27:23,399 Speaker 1: runs they did yesterday get to see one of their 505 00:27:23,440 --> 00:27:26,119 Speaker 1: all time grades get inducted for the Baseball Hall of Fame. 506 00:27:26,200 --> 00:27:29,280 Speaker 1: David Ortiz did his speech in both English and Spanish. 507 00:27:29,560 --> 00:27:32,000 Speaker 1: Tony lev and Jim Cot both in Ducket as well, 508 00:27:32,040 --> 00:27:35,560 Speaker 1: and three went in posthumously, Minnie Minoso, Buck O'Neill, and 509 00:27:35,680 --> 00:27:38,840 Speaker 1: Gil Hodges. Brooklyn Dodger and Met fans had been waiting 510 00:27:38,880 --> 00:27:41,720 Speaker 1: a long time to see the Blomer, Brooklyn first baseman 511 00:27:41,760 --> 00:27:45,680 Speaker 1: and Mets manager make it to Cooper Stanmore Bloomberg Sports 512 00:27:45,760 --> 00:27:48,560 Speaker 1: Nathan thanks John seven on Wall Street time for the 513 00:27:48,600 --> 00:27:51,959 Speaker 1: Tri State Business Report. Here's Bloomberg's head Corey. A student 514 00:27:52,040 --> 00:27:56,000 Speaker 1: loan forgiveness program for behavioral health professionals has been started 515 00:27:56,200 --> 00:27:59,080 Speaker 1: by New York City Health and Hospitals. The program was 516 00:27:59,119 --> 00:28:02,679 Speaker 1: being funded with an anonymous million dollar donation. Thirty thousand 517 00:28:02,800 --> 00:28:05,400 Speaker 1: to fifty thousand dollars will be given a professionals who 518 00:28:05,400 --> 00:28:08,920 Speaker 1: commit three years to the hospital system. New Jersey brewery 519 00:28:08,920 --> 00:28:11,760 Speaker 1: owners are upset about new rules imposed by the Division 520 00:28:11,760 --> 00:28:15,720 Speaker 1: of Alcoholic Beverage Control and j BIZ says they limit 521 00:28:15,760 --> 00:28:18,240 Speaker 1: the number of events they can host and other restrictions. 522 00:28:18,560 --> 00:28:21,320 Speaker 1: The regulations are part of a special ruling the ABC 523 00:28:21,520 --> 00:28:25,760 Speaker 1: issued in which followed a similar harsher set of rules 524 00:28:25,800 --> 00:28:30,000 Speaker 1: from two thousand to eighteen. The Middletown, Connecticut Recycling Department 525 00:28:30,080 --> 00:28:35,199 Speaker 1: has launched its Refill not Landfill coffee cup passport program 526 00:28:35,240 --> 00:28:38,880 Speaker 1: at Perk on Maine. Patrons are being asked to sign 527 00:28:38,920 --> 00:28:42,320 Speaker 1: a promise to use reusable competent retailers to reduce waste 528 00:28:42,800 --> 00:28:45,800 Speaker 1: and maybe even influence others to do the same. That 529 00:28:45,960 --> 00:28:49,240 Speaker 1: your Bloomberg Dries Day Business report. I'm in Corey, Thanks 530 00:28:50,120 --> 00:28:52,160 Speaker 1: on Wall Street. Bloomberg Radio is on the air from 531 00:28:52,200 --> 00:28:54,960 Speaker 1: San Francisco to New York, London to Hong Kong. Let's 532 00:28:55,040 --> 00:28:56,800 Speaker 1: check in with our global news team for some of 533 00:28:56,800 --> 00:28:58,840 Speaker 1: the tough stories heard on our three hundred of siliate 534 00:28:58,960 --> 00:29:04,960 Speaker 1: radio stations around world. I'm Steve Plis, got on kN 535 00:29:05,080 --> 00:29:08,080 Speaker 1: X and Los Angeles. We're talking about how Hollywood isn't 536 00:29:08,080 --> 00:29:11,560 Speaker 1: releasing as many movies and theaters as it was before 537 00:29:11,720 --> 00:29:15,320 Speaker 1: the pandemic and pornitsahoe on w h S and Moville. 538 00:29:15,400 --> 00:29:18,360 Speaker 1: Credit card companies have started to seek consumer shift to 539 00:29:18,360 --> 00:29:22,040 Speaker 1: buying lower cost products. I'm Joan Donnager telling w c 540 00:29:22,160 --> 00:29:25,680 Speaker 1: c O listeners of Minneapolis, St. Paul General Mills is 541 00:29:25,720 --> 00:29:29,040 Speaker 1: seeing more of us by generic serials because of inflation. 542 00:29:29,400 --> 00:29:32,560 Speaker 1: I'm Stephen Carol on Bloomberg, d AP Digital Radio and London. 543 00:29:32,600 --> 00:29:36,600 Speaker 1: We've been reporting on Ryanair beating expectations with its latest earnings, 544 00:29:36,680 --> 00:29:39,640 Speaker 1: the warning of a fragile monks a had. I'm at 545 00:29:39,680 --> 00:29:43,920 Speaker 1: Corey on KFBK and Sacramento. I'm reporting Apple will offer 546 00:29:43,960 --> 00:29:47,600 Speaker 1: a rare iPhone discount for buyers in China. When those 547 00:29:47,640 --> 00:29:50,440 Speaker 1: are some of the stories our Dred Bloomberg journalists and 548 00:29:50,440 --> 00:29:53,000 Speaker 1: analyst working on this morning around the world. It's five 549 00:29:53,040 --> 00:29:56,120 Speaker 1: thirty nine on Wall Street. The following is an editorial 550 00:29:56,240 --> 00:29:59,960 Speaker 1: from Bloomberg Opinion. The senatorial was written by the Blue 551 00:30:00,000 --> 00:30:03,920 Speaker 1: Burg Editorial Board. When a mob stormed the US capital 552 00:30:03,960 --> 00:30:09,240 Speaker 1: on January six, Secret Service agents had several key roles, 553 00:30:09,440 --> 00:30:14,760 Speaker 1: including defending the then Vice president as protesters threatened his life. 554 00:30:15,080 --> 00:30:18,600 Speaker 1: But when Congress told the Secret Services parent agency to 555 00:30:18,720 --> 00:30:22,720 Speaker 1: preserve all records related to the attack, apparently the message 556 00:30:22,800 --> 00:30:26,480 Speaker 1: didn't get through. The Secret Service recently reported that most 557 00:30:26,560 --> 00:30:30,160 Speaker 1: of its agents texts from that day have been deleted. 558 00:30:30,560 --> 00:30:34,760 Speaker 1: By law, federal agencies are required to save all such data. 559 00:30:35,160 --> 00:30:39,840 Speaker 1: Perhaps some naive i T staffers blundered innocently, or maybe 560 00:30:39,880 --> 00:30:43,400 Speaker 1: something worse was going on. The Department of Homeland Security 561 00:30:43,440 --> 00:30:48,520 Speaker 1: has reportedly opened a criminal investigation into the matter. Whatever happened, 562 00:30:48,520 --> 00:30:52,400 Speaker 1: the Secret Service, OS, Congress and the country some answers. 563 00:30:52,880 --> 00:30:56,360 Speaker 1: The editorial was written by the Bloomberg Editorial Board. For 564 00:30:56,440 --> 00:30:59,560 Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash 565 00:30:59,600 --> 00:31:03,360 Speaker 1: open in or opie I n go on the Bloomberg terminal. 566 00:31:03,560 --> 00:31:06,720 Speaker 1: This has been Bloomberg opinion, and you can hear Bloomberg 567 00:31:06,760 --> 00:31:10,320 Speaker 1: opinion editorials every weekday. At this time, terminal customers can 568 00:31:10,440 --> 00:31:15,320 Speaker 1: read more at opie I n go. Futures moving higher. 569 00:31:15,640 --> 00:31:23,800 Speaker 1: You're listening to Bloomberg Daybreak Bloomberg eleventh, three oh weather. 570 00:31:23,960 --> 00:31:26,640 Speaker 1: Some storms possible this afternoon with parts of northern New 571 00:31:26,720 --> 00:31:29,240 Speaker 1: Jersey under a heat advisory. Today, we'll get up to 572 00:31:29,280 --> 00:31:32,880 Speaker 1: their ninety degrees mid eighties tomorrow, oper eighties Wednesday. Right 573 00:31:32,880 --> 00:31:39,400 Speaker 1: now two in Central Park Markets, headlines and breaking news 574 00:31:39,480 --> 00:31:42,080 Speaker 1: twenty four hours a day at Bloomberg dot Com, the 575 00:31:42,160 --> 00:31:45,640 Speaker 1: Bloomberg Business at and at Bloomberg Quicktake. This is a 576 00:31:45,680 --> 00:31:54,520 Speaker 1: Bloomberg Business Flash, and I'm Karen Moscow when you wash 577 00:31:54,560 --> 00:31:57,840 Speaker 1: Dot Index futures on the rise this morning, while European 578 00:31:57,960 --> 00:32:00,720 Speaker 1: stocks aren't moving higher to now. We checked the markets 579 00:32:00,720 --> 00:32:04,000 Speaker 1: every fifteen minutes throughout the trading day. On Bloomberg SMP 580 00:32:04,200 --> 00:32:07,000 Speaker 1: future is up fourteen points down, futures of a hundred 581 00:32:07,040 --> 00:32:10,160 Speaker 1: five nasdack features of fifty and the decks in Germany's 582 00:32:10,160 --> 00:32:12,880 Speaker 1: have three tens of a percent. Ten year treasury down 583 00:32:12,920 --> 00:32:15,920 Speaker 1: fourteen thirty seconds held two point eight zero percent. They 584 00:32:16,000 --> 00:32:18,360 Speaker 1: yield on the two year two point nine nine percent. 585 00:32:18,880 --> 00:32:21,160 Speaker 1: Nine Max screw oil is a one two percent of 586 00:32:21,160 --> 00:32:23,640 Speaker 1: a dollar ten and ninety five dollars seventy nine cents 587 00:32:23,640 --> 00:32:25,920 Speaker 1: a barrel co make school the tenth of a percent 588 00:32:26,000 --> 00:32:28,720 Speaker 1: of a dollar eighty at seventeen forty seven ten announce 589 00:32:29,120 --> 00:32:31,360 Speaker 1: the Euro one point oh two four or five against 590 00:32:31,400 --> 00:32:33,880 Speaker 1: the dollar, British pound one point to zero five three 591 00:32:33,960 --> 00:32:37,040 Speaker 1: and agen one thirties six point to seven, and Bitcoin 592 00:32:37,160 --> 00:32:40,000 Speaker 1: this morning is lower down three percent at twenty two 593 00:32:40,000 --> 00:32:44,120 Speaker 1: thousand thirty. And that's a Bloomberg Business flash. Now here's 594 00:32:44,160 --> 00:32:46,560 Speaker 1: John Tucker with more on what's going on around the world. 595 00:32:46,640 --> 00:32:50,920 Speaker 1: John Van Karen. International concern growing over monkey pox, the 596 00:32:50,960 --> 00:32:54,240 Speaker 1: World Health organization has to clear the monkey Fox outbreak 597 00:32:54,560 --> 00:32:58,240 Speaker 1: of public health emergency. The White House position says President 598 00:32:58,280 --> 00:33:02,080 Speaker 1: Joe Biden is improving from his COVID nineteen infection, and 599 00:33:02,200 --> 00:33:05,680 Speaker 1: the destructive wildfire near YU seventy is burning out of 600 00:33:05,680 --> 00:33:10,600 Speaker 1: control through tinder drive forests. Thousands have been evacuated. Sports. 601 00:33:10,680 --> 00:33:14,040 Speaker 1: Yankees beat the Orioles, Mets beat the Podres, the Rentss, 602 00:33:14,080 --> 00:33:16,680 Speaker 1: full of the Blue Jays, Dodgers beat the Giants, and 603 00:33:16,760 --> 00:33:20,480 Speaker 1: the Nationals went over the Diamondbacks. Global news twenty four 604 00:33:20,480 --> 00:33:23,480 Speaker 1: hours a day on air and on Bloomberg Quicktake Power 605 00:33:23,520 --> 00:33:26,240 Speaker 1: by more than twenty seven hundred journalists and the analysts 606 00:33:26,680 --> 00:33:29,680 Speaker 1: had more than one hundred twenty countries. I'm John Tucker, 607 00:33:29,840 --> 00:33:33,040 Speaker 1: and this is Bloomberg. Nathan Okay, John, thank you. It's 608 00:33:33,280 --> 00:33:35,800 Speaker 1: five forty nine on Wall Street Life from the Bloomberg 609 00:33:35,800 --> 00:33:39,320 Speaker 1: Interactive Broker Studios. This is Bloomberg Daybreak and we're joined 610 00:33:39,360 --> 00:33:42,400 Speaker 1: now by Sarah Human, Managing Director, Head of Europe and 611 00:33:42,480 --> 00:33:45,800 Speaker 1: America's Research at Standard Chartered Bank, as we look ahead 612 00:33:45,840 --> 00:33:48,080 Speaker 1: to that all important rate decision this week from the 613 00:33:48,120 --> 00:33:51,320 Speaker 1: Federal Reserve. Sarah, good morning, thanks for being here. Chairman 614 00:33:51,360 --> 00:33:55,080 Speaker 1: Powell and Company. Of pretty much dialed back expectations that 615 00:33:55,080 --> 00:33:57,720 Speaker 1: we're going to get more than of seventy five basis 616 00:33:57,760 --> 00:34:00,240 Speaker 1: point hike on Wednesday. What's the year four asked for 617 00:34:00,320 --> 00:34:04,960 Speaker 1: this week. Yeah, we're expecting seventy basis points. I think that, 618 00:34:05,840 --> 00:34:08,120 Speaker 1: as you say, they've dialed back on a hundred basis 619 00:34:08,160 --> 00:34:11,879 Speaker 1: points and we're seeing some pretty weak data coming out 620 00:34:11,920 --> 00:34:15,040 Speaker 1: of the US. UM So, I think it's going to 621 00:34:15,120 --> 00:34:19,600 Speaker 1: be a focus more on what's the tone of the meeting. UM. 622 00:34:19,800 --> 00:34:24,960 Speaker 1: We think that it's UM. We'll probably have some hawkish 623 00:34:25,600 --> 00:34:29,000 Speaker 1: noise coming from Powell. Um. He still needs to have 624 00:34:29,080 --> 00:34:33,319 Speaker 1: some indication that inflation is coming down. Um So, I 625 00:34:33,360 --> 00:34:36,719 Speaker 1: think the that there are concerns going concerns about the 626 00:34:36,760 --> 00:34:39,560 Speaker 1: econom accounts. Look, but for the time being, if you're 627 00:34:39,560 --> 00:34:42,120 Speaker 1: doing a seventy five basis point hype, then that suggests 628 00:34:42,120 --> 00:34:45,960 Speaker 1: that inflation is the main driver. Now, of course, we 629 00:34:46,000 --> 00:34:49,600 Speaker 1: did hear from Treasury Secretary Yelling yesterday trying to talk 630 00:34:49,680 --> 00:34:53,239 Speaker 1: down some of those concerns about recession in the economy. 631 00:34:53,320 --> 00:34:55,640 Speaker 1: She says, there's no evidence at this point of a 632 00:34:55,719 --> 00:35:00,400 Speaker 1: broad based US recession. What are you looking at? We 633 00:35:00,480 --> 00:35:03,120 Speaker 1: think we will see recession later in the year. It's 634 00:35:03,160 --> 00:35:05,759 Speaker 1: possible that when we get the GDP data out on 635 00:35:05,840 --> 00:35:09,880 Speaker 1: Thursday then they could come in negative. But the first 636 00:35:09,880 --> 00:35:12,239 Speaker 1: half of the year obviously has been a time when 637 00:35:12,760 --> 00:35:15,920 Speaker 1: the unemployment rate has been very low. It stayed very low, 638 00:35:16,360 --> 00:35:19,720 Speaker 1: and we have had some indication that households have drawn 639 00:35:19,760 --> 00:35:25,640 Speaker 1: on savings to maintain spending despite very high inflation. But 640 00:35:25,800 --> 00:35:29,040 Speaker 1: we think that um as we carry on through the year, 641 00:35:29,480 --> 00:35:34,000 Speaker 1: high inflation is becoming increasingly a headwind to spending and 642 00:35:34,200 --> 00:35:37,719 Speaker 1: that we will see a deterioration, not just in I 643 00:35:37,719 --> 00:35:42,239 Speaker 1: mean received very weak consumer confidence now and increasingly very 644 00:35:42,239 --> 00:35:46,080 Speaker 1: weak business confidence as well. So that combination of factors 645 00:35:46,080 --> 00:35:48,200 Speaker 1: to us suggests that the second half of the year 646 00:35:48,280 --> 00:35:52,839 Speaker 1: is going too slow, quite markedly. Um So, as I say, 647 00:35:52,920 --> 00:35:56,200 Speaker 1: the second quarter data are somewhat vulnerable to what's happened 648 00:35:56,200 --> 00:36:01,360 Speaker 1: to inventories, what's happened to trade, we may still see spending, 649 00:36:01,440 --> 00:36:04,759 Speaker 1: consumer spending, an investment holding up, even if there is 650 00:36:04,800 --> 00:36:08,560 Speaker 1: a technical negative for the quarter. Are you thinking that 651 00:36:08,600 --> 00:36:12,000 Speaker 1: the Fed is going to continue hiking aggressively into those 652 00:36:12,040 --> 00:36:17,200 Speaker 1: signs of weakness. No, we think September that we'll see 653 00:36:17,440 --> 00:36:20,400 Speaker 1: as so a pace of hiking. So we're expecting fifty 654 00:36:20,440 --> 00:36:23,439 Speaker 1: basis points in September that will take us to three 655 00:36:23,480 --> 00:36:25,759 Speaker 1: percent on the FED funds rate, and we think that 656 00:36:25,760 --> 00:36:28,919 Speaker 1: that's where they will halt, because we believe that by 657 00:36:28,960 --> 00:36:33,520 Speaker 1: September there will be some after September fourth quarter there 658 00:36:33,520 --> 00:36:37,879 Speaker 1: will be some very clear signs of economic stress, and 659 00:36:38,080 --> 00:36:43,160 Speaker 1: that also importantly, we'll be seeing clear signs of inflation slowing, 660 00:36:43,520 --> 00:36:46,200 Speaker 1: both on a sort of annual and on a monthly basis. 661 00:36:46,680 --> 00:36:50,520 Speaker 1: So UM we're we we've we think the market is 662 00:36:50,520 --> 00:36:54,000 Speaker 1: still being too aggressive, and what priced in market has 663 00:36:54,040 --> 00:36:58,360 Speaker 1: been dialing back quite quickly on UM, the pace of 664 00:36:58,400 --> 00:37:01,520 Speaker 1: FED hiking and the and to which the Fed will 665 00:37:01,719 --> 00:37:05,319 Speaker 1: carry on raising rates, But in our view three will 666 00:37:05,360 --> 00:37:08,799 Speaker 1: be the tops for this this current cycle, and we'll 667 00:37:08,800 --> 00:37:12,560 Speaker 1: get there in September. How much control can the FED 668 00:37:12,680 --> 00:37:17,080 Speaker 1: have over this kind of supply driven inflation that we're seeing, 669 00:37:17,120 --> 00:37:22,000 Speaker 1: particularly with the war in Ukraine going on. Is central 670 00:37:22,000 --> 00:37:25,800 Speaker 1: bank policy effective enough to deal with this kind of inflation? 671 00:37:27,520 --> 00:37:31,200 Speaker 1: It's not. Supply There's there's nothing that can be done 672 00:37:31,239 --> 00:37:37,760 Speaker 1: in terms of boosting supply of oil, gas, energy. There's 673 00:37:37,800 --> 00:37:40,759 Speaker 1: there's little that can be done. A menager policies is 674 00:37:40,800 --> 00:37:43,919 Speaker 1: not going to change what's happening in terms of trying 675 00:37:43,960 --> 00:37:47,120 Speaker 1: to get grain out of Ukraine. What it can do, though, 676 00:37:47,400 --> 00:37:52,520 Speaker 1: is ensure that inflation expectations remain well anchored. So we 677 00:37:52,640 --> 00:37:56,560 Speaker 1: have had some encouraging signs there that the University of 678 00:37:56,560 --> 00:38:00,239 Speaker 1: Michigan inflation expectations for both one year and three five 679 00:38:00,280 --> 00:38:05,359 Speaker 1: years ahead have come down recently. Um fundamentally, it's a 680 00:38:05,360 --> 00:38:10,320 Speaker 1: matter of slowing the economy, raising the unemployment rate, taking 681 00:38:10,360 --> 00:38:13,200 Speaker 1: demand out of the economy such that you don't get 682 00:38:13,200 --> 00:38:16,560 Speaker 1: these second round effects and the inflation spiraling up higher. 683 00:38:17,000 --> 00:38:21,000 Speaker 1: So it's a pretty um sort of broad way of 684 00:38:21,320 --> 00:38:25,320 Speaker 1: trying to address the inflation situation. Thanks for this, Sarah, 685 00:38:25,400 --> 00:38:27,640 Speaker 1: great having you on with us this morning. Sarah Hwan 686 00:38:27,960 --> 00:38:31,440 Speaker 1: with Standard Chartered Bank. Karen Nathan, it is five or 687 00:38:31,520 --> 00:38:33,719 Speaker 1: D three on Wall Street. It's time for the Bloomberg 688 00:38:33,920 --> 00:38:37,960 Speaker 1: Law Report. It has brought to you by American Arbitration Association. 689 00:38:38,040 --> 00:38:42,600 Speaker 1: Business disputes are inevitable, resolve faster with the American Arbitration Association, 690 00:38:42,680 --> 00:38:46,800 Speaker 1: the global leader in alternative dispute resolution for over ninety years. 691 00:38:46,880 --> 00:38:49,239 Speaker 1: More at a d R dot org. That's yet to 692 00:38:49,280 --> 00:38:52,840 Speaker 1: the legal stories we're watching this morning from Bloomberg's Jeff Bellinger, 693 00:38:55,640 --> 00:38:58,880 Speaker 1: OSA is proposing that the family dollars door in Orlando 694 00:38:59,000 --> 00:39:01,440 Speaker 1: we find more than three hundred thousand dollars over the 695 00:39:01,480 --> 00:39:04,480 Speaker 1: death of a worker. The employee died shortly after struggling 696 00:39:04,480 --> 00:39:07,439 Speaker 1: with a shoplifting. Lawyers for Cody and Knoxell struck back 697 00:39:07,440 --> 00:39:10,360 Speaker 1: at a proposed class suit alleging that a cosmetic powder 698 00:39:10,400 --> 00:39:14,000 Speaker 1: contained an undisclosed p f A S indicator. The attorneys 699 00:39:14,000 --> 00:39:17,120 Speaker 1: say the lead plaintiff suffered no injury. The Ninth Circuit 700 00:39:17,200 --> 00:39:20,880 Speaker 1: affirmed that Marriott's website for a California hotel has sufficient 701 00:39:20,920 --> 00:39:24,719 Speaker 1: disclosures on accessibility. The court refused to revive claims that 702 00:39:24,800 --> 00:39:29,560 Speaker 1: the information is inadequate. Bloomberg Law everything you need, all 703 00:39:29,680 --> 00:39:34,279 Speaker 1: on one legal research platform, including guidance analysis and Bloomberg 704 00:39:34,360 --> 00:39:39,279 Speaker 1: Market Intelligence. Find out more at Bloomberg Law dot com. 705 00:39:39,320 --> 00:39:42,040 Speaker 1: All right, Jeff, thank you. Now, another legal story we're watching. 706 00:39:42,120 --> 00:39:45,279 Speaker 1: Legal teams for Elon Musk and Twitter are preparing for 707 00:39:45,320 --> 00:39:48,600 Speaker 1: an October trial. After Muska lost the first round at 708 00:39:48,600 --> 00:39:53,440 Speaker 1: a Delaware Chancery court, Chief Judge Knatling McCormick indicated that 709 00:39:53,480 --> 00:39:55,560 Speaker 1: she is going to treat the case, just like any 710 00:39:55,600 --> 00:39:58,920 Speaker 1: other broken deal case involving a public company. For more 711 00:39:58,960 --> 00:40:02,160 Speaker 1: Bloomberg's doing. Grow So speaks to Eric Telly, professor at 712 00:40:02,160 --> 00:40:06,440 Speaker 1: Columbia Law School. Did Chancellor McCormick give any hints about 713 00:40:06,480 --> 00:40:10,200 Speaker 1: how she views this deal or what's important in the case. 714 00:40:10,719 --> 00:40:15,680 Speaker 1: She was appropriately pretty guarded about expressing opinions about the 715 00:40:15,760 --> 00:40:19,520 Speaker 1: underlying merits of the case. There are potentially a few 716 00:40:19,600 --> 00:40:22,719 Speaker 1: things that do seem to leak out a little bit. 717 00:40:22,920 --> 00:40:26,440 Speaker 1: She did specifically say that, you know, this looks like 718 00:40:26,520 --> 00:40:30,560 Speaker 1: it's the type of case where specific performance would be appropriate. 719 00:40:30,640 --> 00:40:34,600 Speaker 1: That money damages, you know, wouldn't compensate Twitter for all 720 00:40:34,640 --> 00:40:37,320 Speaker 1: of the pain and harm and lack of closing. I 721 00:40:37,400 --> 00:40:40,200 Speaker 1: think the second thing that it is much more implicit 722 00:40:40,280 --> 00:40:43,200 Speaker 1: that comes out is that now that she has put 723 00:40:43,320 --> 00:40:46,319 Speaker 1: these parties on, you know, a leash that's only a 724 00:40:46,360 --> 00:40:49,759 Speaker 1: couple of months long, to do all of their expert discovery, 725 00:40:49,840 --> 00:40:53,080 Speaker 1: to do all of their depositions of the fact witnesses, 726 00:40:53,120 --> 00:40:55,359 Speaker 1: to do all of their document review, and all of 727 00:40:55,400 --> 00:40:59,440 Speaker 1: their data review. It suggests that the body counting exercises 728 00:40:59,560 --> 00:41:02,440 Speaker 1: going to have to be somewhat more limited than what 729 00:41:02,640 --> 00:41:05,600 Speaker 1: Team Musk wanted. You're not going to be able to, 730 00:41:05,760 --> 00:41:09,080 Speaker 1: you know, pull out just mountains and mountains and mountains 731 00:41:09,080 --> 00:41:12,440 Speaker 1: of data and be able to go over it and 732 00:41:12,520 --> 00:41:16,759 Speaker 1: reach definitive conclusions about it in a couple of months time. 733 00:41:16,880 --> 00:41:19,879 Speaker 1: So it is at least a little bit suggestive that 734 00:41:19,960 --> 00:41:24,399 Speaker 1: Chancellor McCormick, it's probably going to cabin the fishing expeditions 735 00:41:24,400 --> 00:41:27,840 Speaker 1: for bots a little bit and quite possibly concentrate a 736 00:41:27,880 --> 00:41:31,480 Speaker 1: little bit more on exactly what was Twitter putting in 737 00:41:31,520 --> 00:41:36,160 Speaker 1: their securities disclosures. They weren't writing about specific numbers of bots, 738 00:41:36,239 --> 00:41:38,480 Speaker 1: they had a rough estimate, but much of it was 739 00:41:38,560 --> 00:41:41,839 Speaker 1: just sort of describing how they went about auditing their 740 00:41:41,880 --> 00:41:45,560 Speaker 1: own system. And that's the thing that is most testable 741 00:41:45,600 --> 00:41:48,840 Speaker 1: in terms of whether those disclosures had fraudulent statements. And 742 00:41:48,880 --> 00:41:51,960 Speaker 1: then did they actually audit their bot system, did the 743 00:41:52,040 --> 00:41:54,920 Speaker 1: process that they have to cohere with how they described 744 00:41:54,920 --> 00:41:57,800 Speaker 1: it in their filings? And so what does this expedited 745 00:41:58,000 --> 00:42:01,840 Speaker 1: schedule mean for the legal tomes here? For both sides, 746 00:42:01,920 --> 00:42:05,400 Speaker 1: this is now kind of an all hands on deck moment. 747 00:42:05,560 --> 00:42:09,480 Speaker 1: So I would not be surprising to see delivery trucks 748 00:42:09,560 --> 00:42:11,920 Speaker 1: with Diet Coke and Red Bulls backing up to the 749 00:42:11,960 --> 00:42:15,239 Speaker 1: law firms that are having to push forward with all 750 00:42:15,320 --> 00:42:19,080 Speaker 1: kinds of depositions, document review, expert reports, and so forth. 751 00:42:19,320 --> 00:42:23,560 Speaker 1: But this is not unusual in Delaware, even for large 752 00:42:23,680 --> 00:42:26,239 Speaker 1: high profile cases. There are a lot of these large 753 00:42:26,320 --> 00:42:29,880 Speaker 1: high profile cases that end up taking this fast track 754 00:42:30,120 --> 00:42:34,120 Speaker 1: to final adjudication. And as Rich Caney, a professor at 755 00:42:34,160 --> 00:42:37,160 Speaker 1: Columbia Law School, speaking at Bloomberg student Grosso. Catch more 756 00:42:37,160 --> 00:42:39,799 Speaker 1: of that interview, plus analysis of the latest legal news 757 00:42:39,840 --> 00:42:42,920 Speaker 1: by subscribing to the Bloomberg Law Podcast or downloading the 758 00:42:42,920 --> 00:42:47,480 Speaker 1: show at Bloomberg dot com, slash podcasts, Top Stories, straight Ahead, 759 00:42:47,600 --> 00:42:48,640 Speaker 1: This is Bloomberg