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

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Speaker 1: Daybreak for Friday, July fifteen two. Coming up this shower,

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Speaker 1: China's economy grows at the slowest pace since the onset

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Speaker 1: of COVID Bank. Ernie's continue with City Group and while

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Speaker 1: Spargo reporting key economic data. This morning is the debate

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Speaker 1: over fed policy continues, and President Biden's Midda East trip

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Speaker 1: takes center stage in Saudi Arabia. New York City Council

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Speaker 1: approves abortion rights measures. Plus Governor hokel allows millions of

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Speaker 1: dollars to fight gun violence. I'm Michael bar more than head,

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Speaker 1: I'm John Stage Down and sports. Easy win for the Mets,

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Speaker 1: extra any loss for the Yankees, and they're playing the

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Speaker 1: second round of the Open Championship in Scotland. That's all

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Speaker 1: trended ahead on Bloomberg Daybreak on Bloomberg Eliven Free on

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Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one O

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

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Speaker 1: one nineteen and around the world on Bloomberg Radio dot

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Speaker 1: Com and the Bloomberg Business app. Good morning, I'm Nathan

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Speaker 1: Hagar and I'm Karen mostal u s stock index futures

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Speaker 1: are higher this morning. We are coming up to six

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Speaker 1: o one on Wall Street, and we check the markets

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Speaker 1: every fifteen minutes throughout the trading day. On Bloomberg, SNP

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Speaker 1: Future is up six points this morning. Down Future is

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Speaker 1: up seventy two and Nastack Future is up fourteen. The

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Speaker 1: decks in Germany's up one point four percent. Can your

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Speaker 1: treasury up six thirty seconds? Here'll two point nine three percent.

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Speaker 1: They yield on the two year three point one two percent,

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Speaker 1: and non max Screwede oil is little change at ninety

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Speaker 1: three cents of barrel, the euro one point zero zero

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Speaker 1: three nine against the dollar. Nathan, Thank you, Karen. We

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Speaker 1: begin this morning with economic news across the globe. Our

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Speaker 1: first stop is Asia, where data show China's economic growth

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Speaker 1: slowed sharply in the second quarter. Let's begin our team

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Speaker 1: coverage this morning with Bloomberg day Break Asia anchor Brian

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Speaker 1: Curtis in Hong Kong. It's the slowest pace since the

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Speaker 1: pandemic began back in twenty The economy actually contracted two

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Speaker 1: point six percent quarter on quarter. It chose the price

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Speaker 1: of China's dynamic zero COVID policies, but trends are improving.

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Speaker 1: Retail sales recovered somewhat in June, gaining three point one

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Speaker 1: percent year on year, industrial production up three point nine percent,

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Speaker 1: mostly in line, and fixed asset investment jumping six point

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Speaker 1: one percent. That said, property prices fell for a tenth

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Speaker 1: consecutive month, slipping zero point one percent from May in

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Speaker 1: Hong Kong. Brian Curtis Sploomberg Day Break. All right, Brian,

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Speaker 1: thank you. In Europe today, our focus is political turmoil

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Speaker 1: in Italy. Prime Minister Mario drags offer to resign has

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Speaker 1: been rejected by the country's president. That leaves the door

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Speaker 1: open for a solution that would have Dragging leading the

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Speaker 1: government until elections next year begin More from a Bloomberg

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Speaker 1: euro Area economist David Powell. The drama is probably going

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Speaker 1: to be prolonged in the sense that even if we

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Speaker 1: get beyond next week and Drug is able to uh

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Speaker 1: command adequate support in Parliament, Italians have to go to

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Speaker 1: the polls the end before next June, and Drug authorready

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Speaker 1: said he won't stand um. So this isn't going to

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Speaker 1: be going away, even if there is a kind of

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Speaker 1: short term fix it's something we're gonna have to be

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Speaker 1: watching for quite a while. Bloomer's David Powell says the

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Speaker 1: chaos was triggered when a five star movement, the second

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Speaker 1: largest party and drugs Alliance boycotted a confidence vote in

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Speaker 1: the Italian Senate. Back here in the U. S care

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Speaker 1: and the debate continues on whether the Federal Reserve will

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Speaker 1: high rates by seventy five basis points or one percent

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Speaker 1: later this month. FED Governor Christopher Waller addressed the issue

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Speaker 1: at an event yesterday in Idaho. I fully support another

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Speaker 1: seventy five basis point increase. However, my base case for

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Speaker 1: July depends on incoming data. We have important data releases

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Speaker 1: on retail sales, housing inflation expectations coming in before the

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Speaker 1: next meeting. FED Governor Waller says economic ratings will be key,

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Speaker 1: and there's more on the way today. The FED will

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Speaker 1: be looking to two ratings in particular when it comes

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Speaker 1: to setting police, at least as the case for Cleveland

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Speaker 1: FED President the Redemester. There's more data coming out that

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Speaker 1: I'm going to be very attuned to. We have retail

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Speaker 1: sales coming out, and we have very important University of

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Speaker 1: Michigan report, and of course that's important because it has

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Speaker 1: them placed Expectations measure UM, a consumer measure in there.

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Speaker 1: And Cleveland Fed President Master spoke with Bloomberg. We get

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Speaker 1: the retail sales figure today at eight thirty am Wall

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Speaker 1: Street Time, followed by University of Michigan sentiment at ten. Okay,

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Speaker 1: let's turn from the economy now to corporate earnings, Karen,

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Speaker 1: because banks are front and center again today after yesterday's

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Speaker 1: disappointing results from JP, Morgan Chase, and Morgan Stanley. Bloomberg's

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Speaker 1: Jeff Bellinger has more The results from City Group and

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Speaker 1: Wells Fargo will be the highlights this morning. Bloomberg Intelligence

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Speaker 1: a City Group likely benefited from fixed income trading strength,

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Speaker 1: but a slide in banking fees may have offset the games.

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Speaker 1: Consumers were still generally healthy and that should have helped

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Speaker 1: cities credit card business. Wells Fargo is still dealing with

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Speaker 1: the fallout of the saga that started in twenty sixteen,

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Speaker 1: when the bank was fine for its sales practices. B

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Speaker 1: I s, as well as Vargo's profit and returns could

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Speaker 1: move higher. The Fed's constraint on its balance sheet remains

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Speaker 1: a key hurdle, Jeff Bullinger Bloomberg Day brink Right, Jeff,

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Speaker 1: thank you. Meantime, banks are on the hook for a

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Speaker 1: big bill from the government. Financial regulators are poised to

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Speaker 1: extract a total of about one billion dollars in fines

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Speaker 1: from the five biggest US investment banks. Be the story

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Speaker 1: from Bloomberg's Doug Prisoner. It's the price for failing to

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Speaker 1: monitor employee use of unauthorized messaging apps for communications involving

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Speaker 1: bank business. In its earnings report, Morgan Stanley said it

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Speaker 1: expects to pay a two hundred million dollar fine that's

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Speaker 1: identical to what JP Morgan Chase paid, and it appears

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Speaker 1: to be the figure being used as a benchmark. We

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Speaker 1: are told City Group, Goldman, Sachs, and Bank of America

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Speaker 1: are all in advanced talks with regulators and each may

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Speaker 1: pay a similar amount. These discussions have not yet been

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Speaker 1: concluded in the penalties could still change in New York

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Speaker 1: On Duck Prisoner Bloomberg Daybreak, Doug, thank you. Let's turn

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Speaker 1: to politics now, where foreign relations are in focus. This

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Speaker 1: is an important day on President Biden's agenda in the

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Speaker 1: Middle East. He makes his way to Saudi Arabia, tonight

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Speaker 1: and Bloomberg's and Marie Hordern is there. She brings us

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Speaker 1: the latest from Jedda. President Biden will be meeting with

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Speaker 1: Palestinian Authority Mahmood of Boss today before he had over

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Speaker 1: to the Saudi Arabia. This is really going to be

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Speaker 1: the pivotal moment of the trip and a controversial one,

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Speaker 1: especially for many within the Democratic Party. President Biden is

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Speaker 1: trying to bring the price of gasoline down. He need

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Speaker 1: the Kingdom's help to get more barrels on the market.

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Speaker 1: But of course when he was campaigning, he had vowed

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Speaker 1: to make the Kingdom of Maria his administrations, that he

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Speaker 1: would only deal directly with the king, and now we

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Speaker 1: know he'll be meeting this evening with Crown Prince. Mom

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Speaker 1: had been summons in Jedda, Saudi Arabia and Marie Hordern Boomberg,

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Speaker 1: Gabrie sor right, Marie, thank you. Meantime, back in Washington,

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Speaker 1: Senator Joe Manshin has delivered a huge blow to President

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Speaker 1: Biden's economic agenda. The Democrat told party leaders he would

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Speaker 1: not support new spending on climate measures or tax increases.

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Speaker 1: Manson says he will back proposals on healthcare and drug prices,

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Speaker 1: and again futures are on the rise this morning, and

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Speaker 1: a straight ahead. We have a check of your local headlines,

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Speaker 1: plus a check of sports, and this is Bloomberg. Thanks Karen.

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Speaker 1: Six oh seven on Wall Street, seventy two degrees in

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Speaker 1: Central Park. We've got a tractor trailer fire at the

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Speaker 1: southbound eastern spur the New Jersey Turnpike. Details coming up

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Speaker 1: in traffic. First Michael Barr with what else is going

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Speaker 1: on in New York and around the world. Come morning, Michael,

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Speaker 1: Good morning, Nathan. The New York City Council has taken

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Speaker 1: steps to expand abortion and reproductive care rides. The council

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Speaker 1: passed package bills, including providing free abortion pills at clinics.

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Speaker 1: The New York City Abortion Rights Act also allows people

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Speaker 1: seeking abortions from out of state to safely do so.

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Speaker 1: New York Governor Kathy Hokel talked about shootings during an

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Speaker 1: event in Brooklyn. Hocal announced a new budget allowance of

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Speaker 1: over twenty million dollars to find gun violence in the state.

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Speaker 1: Hocal says it would invest in several things, including crime

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Speaker 1: labs investigating shooting statewide. We will continue devoting everything we

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Speaker 1: have at our disposal to stop this crisis, because we

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Speaker 1: are seeing a difference. Last month, Governor Hocal signed a

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Speaker 1: new gun safety bill that banned carrying any firearms into

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Speaker 1: sensitive places, including schools and mass transit stations. The Buffalo

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Speaker 1: supermarket that was the scene of a deadly mass shooting

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Speaker 1: reopens today. There was some debate about possibly shuttering the

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Speaker 1: Top supermarket, but this man who lives in the community

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Speaker 1: says he's glad it is reopening because it's the only

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Speaker 1: grocery store the community has. We was excited about getting

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Speaker 1: it in. Now um have that just taken away from

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Speaker 1: us will be more devastations and you know then what

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Speaker 1: we've already been through. Yesterday at federal grand jury and

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Speaker 1: Buffalo returned to twenty seven account indictment charging Peyton Gendren

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Speaker 1: with hate crimes. He's accused of shooting thirteen people, killing

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Speaker 1: ten inside the supermarket. Prosecuted to say he targeted them

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Speaker 1: because he wanted to kill black people. Concern is growing

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Speaker 1: about monkey poks among some health experts. About four hundred

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Speaker 1: cases have been identified in New York City alone. This week,

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Speaker 1: the CDC announced several efforts to increase access to testing.

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Speaker 1: White House Chief Medical Advisor, Dr Anthony Faunci told a

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Speaker 1: d C the disease is easily treated but should not

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Speaker 1: be ignored. There are vaccines that are available to prevent

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Speaker 1: and respond to monkey poks. There are anti virals that

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Speaker 1: are available, so we're not in the dark about this,

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Speaker 1: although we really must take it seriously. Dr Fauci will

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Speaker 1: be on Bloomberg later today at noon. Ivana Trump, the

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Speaker 1: first wife of Donald Trump, has died in New York City.

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Speaker 1: Ivana Trump was seventy three Global News twenty four hours

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Speaker 1: a day on air and on Bloomberg Quicksac, powered by

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Speaker 1: more than twenty seven hundred journalists and analysts more than

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Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan.

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Speaker 1: Thanks Michael. Coming up to six ten on Wall Street

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Speaker 1: on Stanshower has the Bloomberg Sports all right, Nathan. Second

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Speaker 1: night in the rowhere the Yankees and Reds played a game.

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Speaker 1: They won ten innings and finished seven to six. Last

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Speaker 1: night was one to one. In the eighth innings, Sincinnati

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Speaker 1: scored three off Jonathan Loaisiga. Yanks tied the game on

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Speaker 1: eighthenning home runs by Aaron Judge and Glabor Torres Reds

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Speaker 1: then with three in the tenth off Lucas Litkey. Yanks

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Speaker 1: got two back Matt Carpenter's eleventh home run, but the

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Speaker 1: Reds held on and they won the series. Yanks and

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Speaker 1: lost four the last five. They host the Red Sox

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Speaker 1: tonight and regularly easy win for the Mats eight nothing

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Speaker 1: over the Cubs Carlos Carrasco and Trevor Williams. The combined

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Speaker 1: shutout home runs for Brandon Nimbo and Pete Alonzo. Cameron

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Speaker 1: Youngs a twenty five year old golfer from Westchester. His

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Speaker 1: father is the pro with the Sleepy Hollow Club, and

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Speaker 1: Young's first ever round in an Open Championship was at

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Speaker 1: eight under sixty four at St. Andrews. Anytime fot on

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Speaker 1: that first teen year, eighteenth greener anywhere, especially on that

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Speaker 1: kind of part of the course, UM, there's just no

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Speaker 1: hiding how special the place it is. UM. And it's

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Speaker 1: certainly been a goal to get to an Open Championship,

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Speaker 1: and for my first one to be here, UM is

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Speaker 1: a little bit extra special. Home still's got a two

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Speaker 1: shot lead in today's second round. Dustin Johnson and Taylor

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Speaker 1: Goops have moved to six under, tied for second with

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Speaker 1: Rory McElroy. Tiger Woods is on the course. He's six over,

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Speaker 1: had that seventy eight yesterday only seven Dolphers had a

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Speaker 1: higher store Utah Jazz say all start guard Donovan Mitchell

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Speaker 1: is available in the trade. The Knicks are interested, but

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Speaker 1: reportedly the Jazz wanted in return four players and six

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Speaker 1: first round picks, and the Knicks said no. John Sta

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Speaker 1: actually wear Bloomberg Sports Nathan John Thank you. SMP features

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Speaker 1: up six point, Staff Features up seventy nine, NaSTA features

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Speaker 1: up fifteen points. Nimex crudes up a tenth per cent

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Speaker 1: nine two cents of barrel as President Biden sets his

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Speaker 1: sights on Saudi Arabia tonight, which check in with Bloomberg's

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Speaker 1: use of Kamal l Dean next in Jetta. This is

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Speaker 1: Bloomberg Bloomberg eleven three oh weather. Sunshine in the city

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Speaker 1: today going up to near eighty five degrees eighty five

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Speaker 1: for high tomorrow as well, could it ninety by Sunday

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Speaker 1: with a chance of late afternoon showers and storms. Right

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Speaker 1: now seventy two degrees. Markets, headlines and breaking news twenty

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

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Speaker 1: Business out and at Bloomberg Quick Tape is a Bloomberg

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Speaker 1: Business Flash. And I'm Karen Moscow and we are watching

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Speaker 1: Earning's crossing the Bloomberg this morning. United Health Group racing

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Speaker 1: it's full Your Profit outlook as expanded enrollment in the

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Speaker 1: health insurers plans helped it beat Wall Street analysts forecast

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Speaker 1: for the second quarter, and IT shares are up one

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Speaker 1: percent in early trading. Black Rock clients slow the amount

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Speaker 1: of money they poured into the firm's long term funds

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Speaker 1: as markets cratered and inflation searched. Net inflows for the

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Speaker 1: most products total sixty nine billion dollars for the three

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Speaker 1: months ending Junet, forty billion dollars less than analysts were

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Speaker 1: looking for. We hear from Most Fargo and City Group

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Speaker 1: later today, among others. US DOT index futures are higher

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Speaker 1: right now, the dollars surge stalling at the end of

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Speaker 1: a week in which markets have been whipsawed by shifting

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Speaker 1: expectations for a monetary tightening by the Federal Reserve and

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Speaker 1: worries over global economic growth. We check the markets every

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Speaker 1: fifteen minutes throughout the trading day. On bloomberg s ANDP

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Speaker 1: futures a five points at DOW futures of seventy two

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Speaker 1: NASDAG futures up twelve the decks in Germany's at one

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Speaker 1: point four percent, the ten year treasury up seven thirty seconds,

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Speaker 1: yild two point nine three percent. They yield on the

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Speaker 1: two year three point one two per cent. Nine max

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Speaker 1: screwed oil is up two tens per cent er nineteen

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Speaker 1: cents at ninety five dollars, ninety seven cents of barrel

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Speaker 1: comex schooled down four ten percent or six dollars sixty

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Speaker 1: cents at sixteen twenty announced the Euro one point zero

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Speaker 1: zero three eight against the dollar, British pound one point

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Speaker 1: one eight two nine, the end one thirty eight point

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Speaker 1: six nine, and look at a big coin of nine

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Speaker 1: tenths for said at twenty eight hundred fifty dollars. That's

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Speaker 1: a Bloomberg business flash. Now here's Michael Barrow with more

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Speaker 1: on what's going on around the world. Michael Karen, thank

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Speaker 1: you very much. President Joe Biden will announce three hundred

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Speaker 1: sixteen million dollars in USA for the Palestinians today as

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Speaker 1: he seeks to revive US ties with the Palestinian authority.

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Speaker 1: He visited a hospital and then he will meet with

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Speaker 1: the authorities President mak Muda bas Biden will later travel

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Speaker 1: to Saudi Arabia. Ukrainian officials say Russian missiles that struck

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Speaker 1: a city in central Ukraine killed at least twenty three

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Speaker 1: people and wounded more than one hundred others, including children.

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Speaker 1: Dozens are missing. In baseball, the Yankees lost to the Royals,

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Speaker 1: the Mets beat the Cubs, the Red Sox lost to

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Speaker 1: the Raise, the Nationals lost to the Braves, the Giants

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Speaker 1: lost to Brewers Global News twenty four hours a day

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Speaker 1: on air and on Bloomberg Quicktake, powered by more than

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Speaker 1: twenty seven hundred journalists and analyst more than one hundred

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Speaker 1: twenty countries. Michael Barr and this is Bloomberg. Nathan, all right, Michael,

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Speaker 1: thank you for coming up to six twenty on Wall

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

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Speaker 1: Bloomberg Daybreak, and what we expect will be a pivotal

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Speaker 1: day for President Biden is his tripped through the Middle

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Speaker 1: East continues. Tonight, the President heads to Saudi Arabia for

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Speaker 1: that much anticipated face to face with the Crown Prince

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Speaker 1: Mohammed been Salmon. Let's go live to Jetta down check

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Speaker 1: in ahead of that with Bloomberg's Yusef Kamal l Dean Yusuf.

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Speaker 1: Great to speak with you this morning. We've already gotten

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Speaker 1: some news ahead of President Biden's arrival your way. No

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Speaker 1: announcement expected on increased oil supply. That probably would have

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Speaker 1: been bigger news if we actually did get an announcement

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Speaker 1: like that, right absolutely. I mean, this is the first

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Speaker 1: visit by a US president to Saudi Arabia in the

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Speaker 1: month of July, and there's a very good reason for that.

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Speaker 1: It is hot, it is sticky, and this is not

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Speaker 1: the right time of year to be going to the kingdom.

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Speaker 1: And it shows you how important this trip is for

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Speaker 1: the U S side to at least reset the conversation

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Speaker 1: in some form or another. There's no doubt that it's

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Speaker 1: a little bit awkward, given that the administration's played the

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Speaker 1: human rights carl can Pain trail. Now they have to

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Speaker 1: manage it. Are they gonna shake hands with the Saudi

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Speaker 1: Crown Prince and the bilaterals later this afternoon? The Crownference

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Speaker 1: has denied ordering the killing, but he has taken responsibility

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Speaker 1: for it, and it's gonna build on what you just

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Speaker 1: said about the crude oil. Look, the Saudis are already

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Speaker 1: almost at Max's capacity. RBC Capital talk about a soft

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Speaker 1: seeming of eleven point five million barrels per day. The

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Speaker 1: target for August for the Saudis is just a little

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Speaker 1: bit above eleven. Together with the u E looking at

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Speaker 1: spirit capacity about three million barrels per day. Point being

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Speaker 1: is that spirit capacity before the world. That's not spirit

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Speaker 1: capacity for a visit from the US president and they've

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Speaker 1: got a safeguard this for potential turmoil down the line.

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Speaker 1: They can't tap this today. Well, what potential gains, if

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Speaker 1: any could the president see When it comes to the

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Speaker 1: energy picture, yusef, is there a possibility that the president

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Speaker 1: might be looking to drive something of a wedge between

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Speaker 1: Saudi Arabia and Russia? For sure, Yes, definitely. It is

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Speaker 1: a way to try and get the saaludiast to steer

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Speaker 1: OPEC plus to be as accommodating as they can be,

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Speaker 1: and so the way rapid and energy they described it

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Speaker 1: in a note this morning, they could get a generic

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Speaker 1: pledge to do what they can to keep the powder

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Speaker 1: drying kind of thing but at the same time it's

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Speaker 1: also to get the Russians to be on guard because

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Speaker 1: the reality is here in the Middle East, and one

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Speaker 1: of the conversations I've had over the last six months,

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Speaker 1: there is a sense that this part of the world

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Speaker 1: has not featured very highly in the current administration's agenda,

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Speaker 1: and so this trip is at least away and we've

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Speaker 1: seen this with the meetings with you know, with some

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Speaker 1: of the other factions over the last twenty four hours

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Speaker 1: in Palestine. Basically this comes to be the more more priority. Still,

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Speaker 1: Saudi Arabia is the only stop actually in the Arab world,

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Speaker 1: and the Saalies are selling this as kind of you know,

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Speaker 1: look at us, We're really important, and we manner to

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Speaker 1: a global economy that's struggling for oil barrels. As you mentioned,

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Speaker 1: use if the human rights issue is going to be

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Speaker 1: a major focus as well. The President has been asked

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Speaker 1: about this whether he's going to directly bring up the

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Speaker 1: Jamal ka show Ji's murder. He says he wants to

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Speaker 1: project American values, but it seems like he's kind of

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Speaker 1: hedging a little bit when it comes to being really

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Speaker 1: direct with NBS. Yeah, this has been a very difficult

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Speaker 1: one to to navigate for the White House and for

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Speaker 1: the saudiast I mean, it is important for this leadership

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Speaker 1: here in the Kingdom to get the ties in order.

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Speaker 1: It's a long relationship they've had with Saudi Arabia. It's

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Speaker 1: not the first time that they haven't seen iid I

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Speaker 1: I think back to I mean, look, it's almost fifty

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Speaker 1: years to the day since the former President Richard Mixon

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Speaker 1: came to Saudi Arabia and asked for more barrels at

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Speaker 1: a time when there was an inflationary wave as well.

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Speaker 1: So a little bit parallels throughout history. But at the

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Speaker 1: end of the day, what are we gonna get? You

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Speaker 1: know what I mean? Are we gonna get a handshake?

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Speaker 1: Are we're gonna get, you know, a bit of a meeting?

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Speaker 1: Probably we're gonna manatee the optics. It's a tough one.

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Speaker 1: There's no doubt that I don't envy. I don't envy

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Speaker 1: anybody trying to set up the meetings or the trip.

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Speaker 1: I'll just be watching and uh and observing and taking

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Speaker 1: some notes. Yeah, no matter what the potential photo op

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Speaker 1: looks like, it is definitely going to be one for

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Speaker 1: the history books. Whether it's awkward or all smiles. Very

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Speaker 1: interesting to watch. Thanks for this use of again great

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Speaker 1: have you go on with us use of Gamal L

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Speaker 1: Dean Bloomberg television anchor with us this morning from Jetta,

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Speaker 1: Saudi Arabia ahead of President Biden's arrival for that face

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Speaker 1: to face something we hadn't thought we'd see just a

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Speaker 1: few months ago with the Crown Prince Mohammed been Salmon.

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Speaker 1: Right now, SMP future is up eight points, Staff futures

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Speaker 1: up ninety one, and that is that future is up

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Speaker 1: twenty one points ten. Your treasury up seven thirty seconds,

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Speaker 1: the yield on the benchmark ten year note to point

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Speaker 1: nine three percent. Are listening to Bloomberg day Break Bloomberg

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Speaker 1: eleven three oh weather sunshine mid eighties today, sunshine tomorrow

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Speaker 1: mid eighties as well could at ninety on Sunday with

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Speaker 1: some late afternoon showers and storm stand the weekend right

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Speaker 1: now seventy two in Central Park, broadcasting live from the

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Speaker 1: Bloomberg Interactive Broker Studio in New York. Bloomberg E Living

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Speaker 1: Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one

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Speaker 1: oh six one to San Francisco. Bloomberg nine sixty to

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Speaker 1: the country, Sirius XM to the one nine team, and

376
00:20:38,480 --> 00:20:41,840
Speaker 1: around the globe, the Bloomberg Business at and Bloomberg Radio

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Speaker 1: dot com. This is Bloomberg Daybreak six thirty on Wall Street.

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Speaker 1: Good morning, I'm Nathan Higger and I'm Karen Moscow. We

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Speaker 1: are just about three hours away from the open of

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Speaker 1: US trading. Time for the fine things that you need

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Speaker 1: to notice start your day. Brought to you by Interactive

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Speaker 1: Broker's Global Analyst. It helps you find new global investment

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Speaker 1: may have greater growth potential. Try i v k R

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Speaker 1: Global Analyst today at IBKR dot com. Slash g A

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Speaker 1: first returned to China, where the economy grew just four

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Speaker 1: tents of upper cent last quarter. That's the slowest pace

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Speaker 1: since has started the pandemic, But Bloomberg macro strategist Mark

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Speaker 1: Hudmore says it's not the g d P miss that

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Speaker 1: worries him. The data, I think at the moment is

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Speaker 1: first of all, a little bit backward looking, and there's

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Speaker 1: a bit of a dynamic here where we're kind of going, Hey,

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Speaker 1: bad news is good news for markets because it means

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Speaker 1: more policy eason to come through the data this morning

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Speaker 1: to not worry me. But the property sector story is

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Speaker 1: getting worse at a quicker rate than I think many

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Speaker 1: of us anticipated a month or two ago. The credit

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Speaker 1: problems are spreading beyond the property sector into the biking center,

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Speaker 1: and that is a concern for China, and Bloomberg's Mark

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Speaker 1: Cudmore says China's second half performance will be important well

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Speaker 1: when Europe here and Italian Prime Minister Mario drags offered

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Speaker 1: to resign has been rejected by the country's president. Bloomberg's

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00:22:01,280 --> 00:22:04,600
Speaker 1: Kira Albanesi says if Droggy leaves government, it will negatively

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Speaker 1: impact markets that he had started on a very ambitious

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Speaker 1: pup of reforms to free up the market, to pick

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Speaker 1: up competition, to change up the justice system, to cutrect

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Speaker 1: This is all on the question if he walks away.

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Speaker 1: Bloomberg Skira Albanesi in Rome says concerns over energy and

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Speaker 1: inflation could hamper Italy's economy later this year well. Nathan

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Speaker 1: Back in the US, the debate continues over whether the

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Speaker 1: federal hike rates by seventy basis points or one percent

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Speaker 1: later this month. Coming up today, we get more economic

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Speaker 1: data for the Central Bank to digest. June retail sales

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Speaker 1: would be released around eight thirty am Wall Street Time,

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Speaker 1: followed by University of Michigan Sentiment at ten and banks

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Speaker 1: are in focus again today care and after yesterday's disappointing

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Speaker 1: results from JP Morgan, Chase and Morgan Stanley, we get

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Speaker 1: more from Bloomberg Shinelli Vassek More worried about the U

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Speaker 1: S consumer started to rise after JP Morgan started reporting

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Speaker 1: provisions for loan losses. The bank also said that charge

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Speaker 1: as were starting to slowly rise. City Group and Wall

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Speaker 1: Fargo will also give another glimpse into the consumer when

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Speaker 1: they report earnings on Friday. M Shinnali Bassk Bloomberg Daybreak

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Speaker 1: Sally thanks those reports this morning from Wells Fargo in

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Speaker 1: City Group do out at seven and eight a m.

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Speaker 1: All Street Time. Well. At the same time, Nathan financial

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Speaker 1: regulators are poised to extract about one billion dollars in

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Speaker 1: fines from the five biggest US investment banks. That's for

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Speaker 1: failing to monitor employee use of unauthorized messaging apps for

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Speaker 1: bank communications. That's the five things you need to notice

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00:23:25,600 --> 00:23:28,760
Speaker 1: start your day. Brought to you by Interact you Brokers

432
00:23:29,000 --> 00:23:31,920
Speaker 1: and straight ahead your latest local headlines plus the check

433
00:23:31,960 --> 00:23:39,520
Speaker 1: of sports. This is Bloomberg. Thanks Staring sixty three on

434
00:23:39,520 --> 00:23:41,960
Speaker 1: Wall Street, seventy two degrees in Central Park. Still dealing

435
00:23:42,000 --> 00:23:43,840
Speaker 1: with a tractor trailer fire by the western merge of

436
00:23:43,880 --> 00:23:46,280
Speaker 1: the eastern spur of the New Jersey Turnpike. Details coming

437
00:23:46,359 --> 00:23:48,600
Speaker 1: up in traffic. First Michael Barr with what else is

438
00:23:48,640 --> 00:23:51,080
Speaker 1: going on in New York and around the world. Good morning, Michael,

439
00:23:51,160 --> 00:23:54,000
Speaker 1: Good morning Nathan. New York Governor Kathy Hocal announced a

440
00:23:54,080 --> 00:23:57,040
Speaker 1: new budget allowance of over twenty million dollars to find

441
00:23:57,080 --> 00:24:00,159
Speaker 1: gun violence in the state. Vocal, speaking during an van

442
00:24:00,200 --> 00:24:03,160
Speaker 1: in Brooklyn, says it would invest in several things, including

443
00:24:03,160 --> 00:24:08,879
Speaker 1: community outreach programs and crime labs investigating shooting statewide. We

444
00:24:08,960 --> 00:24:11,800
Speaker 1: have a gun violence epidemic here in the state of

445
00:24:11,840 --> 00:24:15,240
Speaker 1: New York. Full stop. There's a statement effect. The governor's

446
00:24:15,280 --> 00:24:18,200
Speaker 1: announcement comes one month after Wholecal signed a new gun

447
00:24:18,280 --> 00:24:22,399
Speaker 1: safety bill that band carrying any firearms into sensitive places,

448
00:24:22,440 --> 00:24:26,960
Speaker 1: including schools and mass transit stations. A federal grandjury and

449
00:24:27,000 --> 00:24:30,280
Speaker 1: Buffalo returned to twenty seven account indictment charging the suspected

450
00:24:30,320 --> 00:24:34,400
Speaker 1: gunmen in the Top supermarket shooting with hate crimes. Meanwhile,

451
00:24:34,400 --> 00:24:37,280
Speaker 1: the supermarket is set to reopen today. There was some

452
00:24:37,359 --> 00:24:40,880
Speaker 1: debate about possibly closing the supermarket for good, but this

453
00:24:40,920 --> 00:24:43,040
Speaker 1: man who lives in the community tells a d C.

454
00:24:43,359 --> 00:24:47,000
Speaker 1: He's glad Tops is reopening because it's the only grocery

455
00:24:47,040 --> 00:24:51,240
Speaker 1: store the community has. At first, I said to myself, well,

456
00:24:51,280 --> 00:24:54,600
Speaker 1: maybe they should just put those are down, you know,

457
00:24:54,680 --> 00:24:56,920
Speaker 1: closing and make a make a more more you out

458
00:24:56,920 --> 00:24:59,720
Speaker 1: of it. And then I thought about it again. You know,

459
00:24:59,760 --> 00:25:02,159
Speaker 1: how long would it take was to get a new Tops.

460
00:25:02,760 --> 00:25:06,640
Speaker 1: The suspected gunman, Peyton Gendren, is accused of shooting thirteen people,

461
00:25:06,760 --> 00:25:10,800
Speaker 1: Killington inside the supermarket, which prosecutors say he targeted because

462
00:25:10,800 --> 00:25:13,400
Speaker 1: he wanted to kill black people. The New York City

463
00:25:13,400 --> 00:25:17,000
Speaker 1: Council has taken steps to expand abortion and reproductive care rights.

464
00:25:17,320 --> 00:25:20,640
Speaker 1: The council passed a package of bills, including providing free

465
00:25:20,680 --> 00:25:23,480
Speaker 1: abortion pills at clinics. The New York City Abortion Rights

466
00:25:23,520 --> 00:25:27,080
Speaker 1: Act also allows people seeking abortions from out of state

467
00:25:27,200 --> 00:25:31,320
Speaker 1: to safely do so. The legislation passed forty one to seven.

468
00:25:31,920 --> 00:25:35,480
Speaker 1: The January six Committee says secret Service. Texts made as

469
00:25:35,520 --> 00:25:38,800
Speaker 1: the assault on the Capitol unfolded are missing. Bluebergs at

470
00:25:38,840 --> 00:25:42,400
Speaker 1: Baxter Reports, Committee chair Bennie Thompson says they have been

471
00:25:42,440 --> 00:25:45,760
Speaker 1: deleted or erased. He says they are important because they

472
00:25:45,760 --> 00:25:48,440
Speaker 1: could shed some light on Donald Trump's movements leading up

473
00:25:48,440 --> 00:25:52,440
Speaker 1: to and during the insurrection. Thompson says, if there's any

474
00:25:52,560 --> 00:25:56,119
Speaker 1: way that they can be reconstructed, they will do it.

475
00:25:56,280 --> 00:25:59,639
Speaker 1: Remember the testimony from aid Cassidy Hutchinson, who said that

476
00:25:59,640 --> 00:26:02,280
Speaker 1: Trump wanted to join the marchers to the capital but

477
00:26:02,480 --> 00:26:05,560
Speaker 1: was blocked by security. Well. Thompson says they could also

478
00:26:05,600 --> 00:26:09,320
Speaker 1: shed light on Trump's activities regarding Vice President Mike Pence

479
00:26:09,720 --> 00:26:12,560
Speaker 1: in San Francisco. I'm met Backster Bloomberg Gay Break Global

480
00:26:12,600 --> 00:26:14,719
Speaker 1: News twenty four hours a day on air and on

481
00:26:14,760 --> 00:26:17,960
Speaker 1: Bloomberg Quick Take, powered by more than seven hundred journalist

482
00:26:17,960 --> 00:26:20,760
Speaker 1: and analysts more than a hundred twenty countries. I'm Michael Barr.

483
00:26:20,800 --> 00:26:28,080
Speaker 1: This is Bloomberg, Nathan, Thank you, Michael. Almost six thirty

484
00:26:28,119 --> 00:26:30,480
Speaker 1: six on Wall Street. John stash Hour has a Bloomberg

485
00:26:30,520 --> 00:26:33,040
Speaker 1: Sports update, Nathan. Great night for the Mats. Not only

486
00:26:33,040 --> 00:26:35,640
Speaker 1: there eight nothing went over the Cubs at regular strong

487
00:26:35,720 --> 00:26:38,560
Speaker 1: pitching from Carlos Carrasco, Brandon Nemo three hits with a

488
00:26:38,560 --> 00:26:41,040
Speaker 1: home run. Pete Alonzo is twenty four homer but I

489
00:26:41,160 --> 00:26:43,800
Speaker 1: sell out crowd in Syracuse to see Jacob de Ground

490
00:26:43,840 --> 00:26:46,400
Speaker 1: faced Triple A batterers for the first time when Fortings

491
00:26:46,400 --> 00:26:48,800
Speaker 1: did not allow an earned run, just two hits, four

492
00:26:48,840 --> 00:26:51,120
Speaker 1: strike ats, and all indications are to Gram will make

493
00:26:51,200 --> 00:26:55,000
Speaker 1: his highly anticipated season debut for the Mats sometime after

494
00:26:55,040 --> 00:26:57,520
Speaker 1: the All Star Break. Yankees and Reds a pictures due

495
00:26:57,600 --> 00:26:59,800
Speaker 1: at the stadium. Though it ended seven to six, it

496
00:26:59,920 --> 00:27:02,159
Speaker 1: was won one on the eighth Today Esther Cortez and

497
00:27:02,480 --> 00:27:05,520
Speaker 1: Luis Castillo in the Battle of All Stars Cincinnati with

498
00:27:05,680 --> 00:27:08,159
Speaker 1: three runs in the eighth inning off Jonathan Loaisaga, just

499
00:27:08,240 --> 00:27:10,200
Speaker 1: back from injury, and then three more in the tenth

500
00:27:10,600 --> 00:27:14,159
Speaker 1: of Lucas Litckey. Joey Vado had big hits in both rallies.

501
00:27:14,200 --> 00:27:17,359
Speaker 1: The Reds won seven six in ten Yankee home runs

502
00:27:17,359 --> 00:27:19,959
Speaker 1: and defeat for Aaron Judge is thirty first, also Glabor

503
00:27:20,000 --> 00:27:23,200
Speaker 1: Torres and Matt Carpenter Yanks. It's the Red Sox tonight

504
00:27:23,240 --> 00:27:26,000
Speaker 1: Seattle Mariners one again. Last night that's in Levin wins

505
00:27:26,000 --> 00:27:28,080
Speaker 1: in a row for them. They're playing the second round

506
00:27:28,080 --> 00:27:30,439
Speaker 1: of the Open Championship at St. Andrews. The leader at

507
00:27:30,440 --> 00:27:34,000
Speaker 1: eight under remains Cameron Young. The Westchester native went to

508
00:27:34,080 --> 00:27:36,440
Speaker 1: high school at Fordham Prep and the bronze he teas off.

509
00:27:36,440 --> 00:27:38,920
Speaker 1: In a a couple of hours, Taylor Gooch has moved to

510
00:27:39,040 --> 00:27:42,239
Speaker 1: seven under par and Dustin Johnson and world number one

511
00:27:42,240 --> 00:27:46,040
Speaker 1: Scottie Scheffler are on the course at six under, and

512
00:27:46,119 --> 00:27:49,119
Speaker 1: Rory McElroy will start today at six under. Reported the

513
00:27:49,160 --> 00:27:51,640
Speaker 1: Knicks have rejected a trade offer from the Utah Jazz

514
00:27:51,720 --> 00:27:55,680
Speaker 1: Donovan Mitchell for four players and six first round draft picks.

515
00:27:55,720 --> 00:27:58,640
Speaker 1: Big free agent signing by the Devils getting Tampa Bays

516
00:27:58,680 --> 00:28:01,879
Speaker 1: Andre Polott for five years thirty million. Ryan Strom leaving

517
00:28:01,880 --> 00:28:06,119
Speaker 1: the Rangers signed with Anaheim. John Stash were Bloomberg Sports.

518
00:28:06,160 --> 00:28:08,960
Speaker 1: All right, John, thanks sixty seven on Wall Street. Time

519
00:28:09,000 --> 00:28:10,400
Speaker 1: to take a look at stock some of the names

520
00:28:10,440 --> 00:28:13,360
Speaker 1: moving in the pre market on this Friday morning. We're

521
00:28:13,440 --> 00:28:16,639
Speaker 1: joined by Bloomberg Radio and TV Markets correspondent Crety Gupta.

522
00:28:16,920 --> 00:28:19,080
Speaker 1: Pretty interesting to see a stock go up when an

523
00:28:19,119 --> 00:28:23,080
Speaker 1: activist investor takes a steake at it. Absolutely, Nathan, are

524
00:28:23,080 --> 00:28:27,120
Speaker 1: you a scrap booker. No, yeah, I mean either. But

525
00:28:27,200 --> 00:28:29,480
Speaker 1: there's a massive audience for it, and that brings us

526
00:28:29,520 --> 00:28:32,439
Speaker 1: to pinterest here. P I N as the online scrap booker.

527
00:28:32,920 --> 00:28:36,560
Speaker 1: Any any bride will know um the value of interest.

528
00:28:36,640 --> 00:28:39,280
Speaker 1: I'm in bride'smaid and I've recently learned the value of

529
00:28:39,320 --> 00:28:42,959
Speaker 1: it in the context of planning a wedding product on there. Yeah, exactly.

530
00:28:43,040 --> 00:28:45,800
Speaker 1: P I N s A is your taker. Up fourteen

531
00:28:45,880 --> 00:28:48,480
Speaker 1: percent in the pre market. This does come after Elliott

532
00:28:49,080 --> 00:28:52,080
Speaker 1: Management has acquired a steak in the company about over

533
00:28:52,240 --> 00:28:54,680
Speaker 1: nine percent. Now. They've been doing this slowly, They've been

534
00:28:54,680 --> 00:28:57,560
Speaker 1: building up their steak there now the largest investor in

535
00:28:57,640 --> 00:29:00,840
Speaker 1: the company. Remember this comes as social media companies broadly

536
00:29:00,880 --> 00:29:04,000
Speaker 1: are struggling. We of course know the entire Twitter Tesla debacle.

537
00:29:04,440 --> 00:29:08,680
Speaker 1: We also know that Snapchat, Alphabet, even YouTube. Some of

538
00:29:08,760 --> 00:29:11,280
Speaker 1: revenues within Alphabet, well, they're all slumping. And a lot

539
00:29:11,320 --> 00:29:12,800
Speaker 1: of this has to do with the growth story. If

540
00:29:12,800 --> 00:29:15,320
Speaker 1: you're worried about recession, you're also gonna be worried about

541
00:29:15,320 --> 00:29:17,800
Speaker 1: business investment. Pinterest has the same problems. So a lot

542
00:29:17,840 --> 00:29:20,440
Speaker 1: of those stocks, in addition to having that tech exposure

543
00:29:20,560 --> 00:29:24,240
Speaker 1: exposure excuse me, have actually taken a hit because of that,

544
00:29:24,320 --> 00:29:27,360
Speaker 1: so um, this is gonna be an interesting one to

545
00:29:27,440 --> 00:29:31,000
Speaker 1: see if they actually do something to change the business. This,

546
00:29:31,080 --> 00:29:33,480
Speaker 1: of course falls shake up at pinterest last month. The

547
00:29:33,480 --> 00:29:36,920
Speaker 1: co founder and CEO Ben Silberman actually handed the reins

548
00:29:36,960 --> 00:29:39,680
Speaker 1: to Google and PayPal veteran bill ready, so we'll see

549
00:29:39,680 --> 00:29:43,040
Speaker 1: if there's perhaps some new things in store for pinterest. Well,

550
00:29:43,040 --> 00:29:45,880
Speaker 1: speaking of stocks taking a hit, this morning, we've got

551
00:29:45,960 --> 00:29:49,400
Speaker 1: some earnings news outside of the big bank earnings that

552
00:29:49,440 --> 00:29:51,400
Speaker 1: we're waiting for just a few minutes here, Yeah, we

553
00:29:51,440 --> 00:29:53,600
Speaker 1: really do um And this is perhaps a company that

554
00:29:53,680 --> 00:29:56,240
Speaker 1: not that many people have heard of, code Excess c

555
00:29:56,520 --> 00:29:59,000
Speaker 1: d x S that shares are down twenty four percent

556
00:29:59,160 --> 00:30:02,600
Speaker 1: this morning. Comes is an enzyme engineering company. They cut

557
00:30:02,600 --> 00:30:06,080
Speaker 1: their sales guidance for the year and reported preliminary quarterly

558
00:30:06,120 --> 00:30:09,120
Speaker 1: revenue that trailed estimates. So once again they cut their guidance,

559
00:30:09,200 --> 00:30:11,880
Speaker 1: they missed their estimates. Not good when you're once again

560
00:30:11,920 --> 00:30:14,680
Speaker 1: looking at something that's sort of um in the engineering space. Here.

561
00:30:14,800 --> 00:30:16,040
Speaker 1: The other one I want to point out to you,

562
00:30:16,120 --> 00:30:19,280
Speaker 1: Nathan very quickly is Vontage VG is your taker is

563
00:30:19,280 --> 00:30:22,040
Speaker 1: actually up in the pre markets. Comes after Ericson's the

564
00:30:22,080 --> 00:30:26,040
Speaker 1: Swedish telecom company received all the necessary approvals from regulators

565
00:30:26,080 --> 00:30:28,760
Speaker 1: to buy Vontage and Vantage. For those of you who

566
00:30:28,760 --> 00:30:32,200
Speaker 1: are not familiar, it's a cloud based communications company. UM

567
00:30:32,320 --> 00:30:33,959
Speaker 1: very big when it comes, a very big player when

568
00:30:34,000 --> 00:30:36,040
Speaker 1: it comes to to telecom broadly. I always think of

569
00:30:36,040 --> 00:30:39,440
Speaker 1: it in India, for example, Vantage is everywhere. VG is

570
00:30:39,480 --> 00:30:41,520
Speaker 1: your taker and those shares are up past six and

571
00:30:41,520 --> 00:30:44,040
Speaker 1: a half percent. Nathan Okay, Bloomberg Radio and TV Markets

572
00:30:44,040 --> 00:30:47,600
Speaker 1: correspondent created grouped WI joining us again later on this

573
00:30:47,640 --> 00:30:50,400
Speaker 1: morning nine am Wall Street time for Bloomberg Surveillance co

574
00:30:50,480 --> 00:30:53,120
Speaker 1: hosting the show today. And I should note that President

575
00:30:53,160 --> 00:30:57,000
Speaker 1: Biden is speaking right now as he meets with Palestinian

576
00:30:57,120 --> 00:31:00,480
Speaker 1: leaders in Jerusalem. We will be checking back bringing you

577
00:31:00,680 --> 00:31:03,880
Speaker 1: headlines as he meets with the President of the Palestinian Authority,

578
00:31:04,120 --> 00:31:07,920
Speaker 1: Mock mood Abas right now. More to come here on

579
00:31:08,120 --> 00:31:11,280
Speaker 1: Bloomberg Daybreak. Right now, SMP futures are up eight points,

580
00:31:11,280 --> 00:31:15,160
Speaker 1: staff Future is up eighty nine, NASAC futures up nineteen points.

581
00:31:15,600 --> 00:31:23,640
Speaker 1: You're listening to Bloomberg Daybreak, Bloomberg eleven three oh other

582
00:31:23,680 --> 00:31:26,800
Speaker 1: Sunshine mid eighties today and tomorrow. I could see some

583
00:31:26,920 --> 00:31:29,080
Speaker 1: late afternoon showers and storms on Sunday, as we had

584
00:31:29,080 --> 00:31:31,480
Speaker 1: a near ninety degrees to end the weekend. Right now

585
00:31:31,880 --> 00:31:39,080
Speaker 1: seventy two degrees in Central Park markets, headlines and breaking

586
00:31:39,080 --> 00:31:42,000
Speaker 1: news twenty four hours a day at Bloomberg dot Com,

587
00:31:42,080 --> 00:31:45,640
Speaker 1: the Bloomberg Business at and at Bloomberg Quick Tape. He's

588
00:31:45,680 --> 00:31:54,800
Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow and it's

589
00:31:54,840 --> 00:31:58,800
Speaker 1: another morning, busy morning for Ernie's watching Wells Fargo, crossing

590
00:31:58,800 --> 00:32:02,760
Speaker 1: the Bloomberg second quarter revenue missing analysts estimates. They get

591
00:32:02,760 --> 00:32:05,120
Speaker 1: to the first word, breaking news. Dask for today's morning call,

592
00:32:05,240 --> 00:32:09,040
Speaker 1: and here's Bill Maloney. Bill, good morning, Yeah, good morning, Karen.

593
00:32:09,080 --> 00:32:10,960
Speaker 1: You as futures are in the green right now down

594
00:32:11,000 --> 00:32:13,000
Speaker 1: features up a hundred and nine points, as if he's

595
00:32:13,000 --> 00:32:16,480
Speaker 1: gained ten well nasdeck features are up by seven. The

596
00:32:16,560 --> 00:32:19,480
Speaker 1: US ten year at two point nine four percent, Gold

597
00:32:19,600 --> 00:32:22,000
Speaker 1: is down seven, oil is a little changed, and bitcoin

598
00:32:22,120 --> 00:32:25,640
Speaker 1: is trading higher by one percent. Japan rose half percent overnight,

599
00:32:25,640 --> 00:32:28,240
Speaker 1: while European markets are in the green, led by games

600
00:32:28,280 --> 00:32:30,960
Speaker 1: in Germany. Back in the US on the economic front

601
00:32:31,000 --> 00:32:34,080
Speaker 1: at a thirty, Empire manufacturing and retail sales at ten

602
00:32:34,080 --> 00:32:36,920
Speaker 1: o'clock Commissigan sentiment at the develops to night, it was

603
00:32:36,960 --> 00:32:39,520
Speaker 1: reported that Elliott took a stake in Pinterest shares are

604
00:32:39,600 --> 00:32:42,640
Speaker 1: up fourteen percent in the pre market and regarding earnings

605
00:32:42,640 --> 00:32:45,360
Speaker 1: this morning, you mentioned Wells Fargo, n H raised its

606
00:32:45,360 --> 00:32:48,800
Speaker 1: guidance Black Rocky ps, missestmates and look for city groups

607
00:32:48,800 --> 00:32:52,120
Speaker 1: to report around eight wrapping things up, Norfolk Southern was

608
00:32:52,200 --> 00:32:55,240
Speaker 1: raised to buy over at Steeple Live from the first

609
00:32:55,360 --> 00:32:58,000
Speaker 1: breaking News desc Bill Maloney, Karen, all right, Bill, thank

610
00:32:58,000 --> 00:32:59,720
Speaker 1: you all. You mentioned United Health grew up. It is

611
00:32:59,760 --> 00:33:02,360
Speaker 1: a one point two percent in early trading this morning

612
00:33:02,360 --> 00:33:04,320
Speaker 1: to hear life breaking news over here of Bloomberg type

613
00:33:04,360 --> 00:33:06,920
Speaker 1: squawk on your terminal scue you a w K and

614
00:33:06,920 --> 00:33:09,640
Speaker 1: that's a Bloomberg business flash. Now here's Michael Barr with

615
00:33:09,720 --> 00:33:12,360
Speaker 1: more on what's going on around the world. Michael, Karen,

616
00:33:12,400 --> 00:33:15,160
Speaker 1: thank you very much. Before leaving for Saudi Arabia for

617
00:33:15,200 --> 00:33:18,040
Speaker 1: the much anticipated second leg of his Middle East tour,

618
00:33:18,360 --> 00:33:21,880
Speaker 1: President Biden visited the West Bank and East Jerusalem. Today.

619
00:33:22,280 --> 00:33:25,160
Speaker 1: The President visited a hospital and praised nurses for the

620
00:33:25,200 --> 00:33:28,640
Speaker 1: work they do. The Secret Services again in the crosshairs

621
00:33:28,680 --> 00:33:31,840
Speaker 1: of the Congressional Committee looking into the Capitol Hill, Royant

622
00:33:32,240 --> 00:33:36,000
Speaker 1: and internal watchdogs, says the agency and that protects the president.

623
00:33:36,080 --> 00:33:40,480
Speaker 1: Deleted messages from January five and sixth of last year.

624
00:33:40,960 --> 00:33:43,720
Speaker 1: In baseball, the Yankees lost to the Royals, the Mets

625
00:33:43,760 --> 00:33:46,040
Speaker 1: beat the Cubs, the Red Sox lost to the Rays,

626
00:33:46,320 --> 00:33:49,840
Speaker 1: the Nationals lost to the Braves, Giants lost to the Brewers.

627
00:33:50,200 --> 00:33:52,840
Speaker 1: Global News twenty four hours a day on air and

628
00:33:53,000 --> 00:33:56,680
Speaker 1: on Bloomberg Quicktake, powered by more than seven hundred journalists

629
00:33:56,680 --> 00:33:59,320
Speaker 1: and analysts more than a hundred twenty countries. Michael barr

630
00:33:59,320 --> 00:34:02,240
Speaker 1: and this is Romberg. All right, Michael Barry, thank you,

631
00:34:02,280 --> 00:34:04,600
Speaker 1: and we'll have much more on these breaking earnings in

632
00:34:04,640 --> 00:34:07,560
Speaker 1: just a moment. We're watching Wells Fargo shares down more

633
00:34:07,600 --> 00:34:10,400
Speaker 1: than three percent right now in early trading. It is

634
00:34:10,440 --> 00:34:13,000
Speaker 1: sixty nine on Wall Street. And we turned to news

635
00:34:13,000 --> 00:34:15,440
Speaker 1: and science and technology now at the Bloomberg n j

636
00:34:15,560 --> 00:34:17,840
Speaker 1: I T STEM Report brought to you by New Jersey

637
00:34:17,840 --> 00:34:21,600
Speaker 1: Institute of Technology, ranking top fifty national public university by

638
00:34:21,680 --> 00:34:23,960
Speaker 1: u S News and World's Report, and number fourteen in

639
00:34:24,000 --> 00:34:26,960
Speaker 1: the nation on Money's Best Colleges List. Learn more at

640
00:34:27,040 --> 00:34:29,239
Speaker 1: n j I T dot E d U and here's

641
00:34:29,239 --> 00:34:32,760
Speaker 1: what's making news and science, Technology, Engineering, and math. Senate

642
00:34:32,800 --> 00:34:35,839
Speaker 1: majority leader Chuck Schumer is telling senators to expect an

643
00:34:35,880 --> 00:34:39,759
Speaker 1: initial vote as early as Tuesday on scaled back legislation

644
00:34:39,800 --> 00:34:43,239
Speaker 1: that would provide financial incentives for companies that build semiconductor

645
00:34:43,280 --> 00:34:46,520
Speaker 1: manufacturing plants. In the US, both the House and Senator

646
00:34:46,600 --> 00:34:49,320
Speaker 1: passed sweeping bills that call for the development of regional

647
00:34:49,360 --> 00:34:52,560
Speaker 1: technology hubs across the country, but lawmakers have struggled to

648
00:34:52,600 --> 00:34:55,319
Speaker 1: reach a final compromise that could generate sixty votes in

649
00:34:55,320 --> 00:34:59,520
Speaker 1: the Senate, the number needed to overcome procedural hurdles Pacific

650
00:34:59,520 --> 00:35:03,080
Speaker 1: Island now national leaders have declared a climate emergency. Australia,

651
00:35:03,160 --> 00:35:06,040
Speaker 1: the wealthiest and most populous of the Forum Nations, has

652
00:35:06,040 --> 00:35:09,480
Speaker 1: committed to reduce greenhouse gas emissions by forty three percent

653
00:35:09,560 --> 00:35:12,080
Speaker 1: below two thousand five levels by the end of the

654
00:35:12,120 --> 00:35:15,719
Speaker 1: decade under a new government elected in May. And Amazon

655
00:35:15,880 --> 00:35:18,000
Speaker 1: is slowing down its hiring in Europe. The company is

656
00:35:18,040 --> 00:35:20,560
Speaker 1: saying it will create more than four thousand new permanent

657
00:35:20,640 --> 00:35:23,000
Speaker 1: jobs in the UK this year. That's the smallest number

658
00:35:23,040 --> 00:35:25,760
Speaker 1: it's announced in at least the three years, despite planning

659
00:35:25,800 --> 00:35:28,720
Speaker 1: to open two more fulfillment centers in the north of England,

660
00:35:28,960 --> 00:35:31,320
Speaker 1: and that's the Bloomberg and J. A. T. Stem Report.

661
00:35:31,440 --> 00:35:33,719
Speaker 1: Nathan alright, Karen, thank you. We are live from the

662
00:35:33,719 --> 00:35:36,279
Speaker 1: Bloomberg Interractor broker studios where it's coming up to six

663
00:35:36,360 --> 00:35:39,000
Speaker 1: fifty one on Wall Street as we continue to watch

664
00:35:39,000 --> 00:35:42,440
Speaker 1: earnings from Wells Fargo the results across the Bloomberg terminal.

665
00:35:42,600 --> 00:35:46,200
Speaker 1: Bloomberg Intelligence Senior Global Banks analyst Allison Williams is with

666
00:35:46,280 --> 00:35:49,320
Speaker 1: a Santa help break down these numbers. Obviously, Alan the A,

667
00:35:49,480 --> 00:35:54,200
Speaker 1: I'm sorry, Allison, the red headline from these results. Second

668
00:35:54,280 --> 00:35:57,640
Speaker 1: quarter revenue came in pretty short of estimates. What else

669
00:35:57,640 --> 00:36:02,480
Speaker 1: stands out for you? So just looking there's there's a few, um,

670
00:36:02,520 --> 00:36:04,880
Speaker 1: there's a few items that might have driven the revenue.

671
00:36:05,000 --> 00:36:07,520
Speaker 1: The headline revenue miss or a couple of things I

672
00:36:07,520 --> 00:36:11,480
Speaker 1: would call out. Um, it does look like um, you know,

673
00:36:11,719 --> 00:36:15,160
Speaker 1: equities securities gains which were a huge booze to the

674
00:36:15,239 --> 00:36:18,080
Speaker 1: quarter a year ago, and it looks like there could

675
00:36:18,120 --> 00:36:20,560
Speaker 1: be some losses this quarter. That's a little bit more

676
00:36:20,600 --> 00:36:23,120
Speaker 1: negative than people thought. Again, that's not core, so I

677
00:36:23,160 --> 00:36:25,640
Speaker 1: don't think people will be too upset about that. They

678
00:36:25,680 --> 00:36:28,840
Speaker 1: did have a right down due to market spread winding again.

679
00:36:28,880 --> 00:36:31,880
Speaker 1: We've seen this across the banks and that's uh to

680
00:36:32,080 --> 00:36:38,440
Speaker 1: be expected. Mortgage banking income down significantly. That is a

681
00:36:38,440 --> 00:36:40,879
Speaker 1: big one to watch. Although you know, we all know

682
00:36:40,960 --> 00:36:46,880
Speaker 1: that mortgage rates have skyrocketed and volumes are are very depressed. UM.

683
00:36:46,960 --> 00:36:49,560
Speaker 1: The expectation was for the for that income to be

684
00:36:49,640 --> 00:36:52,879
Speaker 1: down about it just looks like it's it's a little

685
00:36:52,920 --> 00:36:56,920
Speaker 1: bit worse. The net interest margin better than expected. So

686
00:36:56,960 --> 00:37:00,399
Speaker 1: that's a core number to watch for Whiles Fargo UM,

687
00:37:00,600 --> 00:37:03,480
Speaker 1: and we're looking for the net interest income and the

688
00:37:03,520 --> 00:37:07,680
Speaker 1: provision building numbers now. Yeah, and some interesting lines as

689
00:37:07,719 --> 00:37:10,360
Speaker 1: well coming in with Wells Fargo saying it expects credit

690
00:37:10,400 --> 00:37:13,200
Speaker 1: losses to increase from low levels and a hundred seven

691
00:37:13,239 --> 00:37:17,040
Speaker 1: million dollar right down in investment banking. Yeah. So that

692
00:37:17,320 --> 00:37:20,120
Speaker 1: so the write down and investment banking is UM is

693
00:37:20,160 --> 00:37:22,239
Speaker 1: the number that I that I had one of the

694
00:37:22,280 --> 00:37:25,320
Speaker 1: numbers I referred to earlier. This is something we've seen

695
00:37:25,800 --> 00:37:29,479
Speaker 1: across the banks to the two areas. I think that

696
00:37:29,960 --> 00:37:33,680
Speaker 1: we're seeing some stress in the leverage loan books and

697
00:37:33,800 --> 00:37:36,920
Speaker 1: bridge financing at the investment banks UM just because of

698
00:37:36,960 --> 00:37:42,200
Speaker 1: the spread widening UM, but significantly lower UM than the

699
00:37:42,239 --> 00:37:44,640
Speaker 1: types of marks that we saw on the global financial crisis,

700
00:37:44,680 --> 00:37:48,400
Speaker 1: and certainly uh that these marks are manageable, so I

701
00:37:48,400 --> 00:37:51,000
Speaker 1: don't think people will be too much upset about that.

702
00:37:51,440 --> 00:37:55,160
Speaker 1: The credit rising from low levels should be something that

703
00:37:55,800 --> 00:38:00,080
Speaker 1: is expected. We have really strong credit quality across all

704
00:38:00,080 --> 00:38:04,480
Speaker 1: the banks, and we do expect some normalization there. The

705
00:38:04,520 --> 00:38:07,480
Speaker 1: one thing that we're watching is what's happening with reserves

706
00:38:07,480 --> 00:38:10,759
Speaker 1: this quarter because of the accounting, the reserves tell you

707
00:38:11,160 --> 00:38:13,600
Speaker 1: that about today, which as I said, is very strong,

708
00:38:14,360 --> 00:38:16,799
Speaker 1: but about the future, and that's what investors are worried about.

709
00:38:16,800 --> 00:38:19,759
Speaker 1: They're worried about a coming recession. And it does look

710
00:38:19,800 --> 00:38:21,840
Speaker 1: like there was a little bit of a reserve build

711
00:38:21,840 --> 00:38:25,520
Speaker 1: there that could be due to long growth like what

712
00:38:25,600 --> 00:38:29,120
Speaker 1: we saw JP Morgan Um. So we'll be looking to

713
00:38:29,120 --> 00:38:31,040
Speaker 1: dig into that a little bit more and we'll be

714
00:38:31,280 --> 00:38:34,080
Speaker 1: watching for more headlines. As a continued to cross, the

715
00:38:34,160 --> 00:38:36,839
Speaker 1: shares of Wells Fargo right now down two point seven percent.

716
00:38:36,920 --> 00:38:39,080
Speaker 1: They had been in as low as three point four

717
00:38:39,120 --> 00:38:42,360
Speaker 1: percent in the pre market. Alison Williams of Bloomberg Intelligence,

718
00:38:42,560 --> 00:38:45,560
Speaker 1: lets you get back to crunching those numbers. In the meantime,

719
00:38:45,600 --> 00:38:47,600
Speaker 1: we want to take you to what's going on in

720
00:38:47,719 --> 00:38:50,560
Speaker 1: d C. Lots happening in the nation's capital, not the

721
00:38:50,600 --> 00:38:53,359
Speaker 1: least of which is President Biden's continue to trip through

722
00:38:53,400 --> 00:38:55,480
Speaker 1: the Middle East. He's meeting right now giving a joint

723
00:38:55,520 --> 00:38:59,839
Speaker 1: statement with Palestinian Primate or Palestinian President mak Buddha bass

724
00:38:59,880 --> 00:39:03,560
Speaker 1: Lets bringing Bloomberg Government reporter Emily Wilkins from the nation's capital. Emily,

725
00:39:03,680 --> 00:39:06,080
Speaker 1: just quickly, let's get some of the details on what

726
00:39:06,120 --> 00:39:10,480
Speaker 1: the President is saying alongside President of Boston. Yes, we

727
00:39:10,520 --> 00:39:12,839
Speaker 1: have a number of different things. I mean Biden, first

728
00:39:12,840 --> 00:39:15,000
Speaker 1: of all, I'm talking about Jerusalem, saying that it's got

729
00:39:15,000 --> 00:39:17,120
Speaker 1: to be a city for all its people and saying

730
00:39:17,120 --> 00:39:19,560
Speaker 1: the US is really working to improve the lives of

731
00:39:19,840 --> 00:39:24,680
Speaker 1: Palestinian folks. He also announced that he would be uh

732
00:39:24,800 --> 00:39:27,480
Speaker 1: that he would be putting forward Um, I think it's

733
00:39:27,560 --> 00:39:32,040
Speaker 1: over a three d million towards Palestine. This is really

734
00:39:32,120 --> 00:39:35,120
Speaker 1: Biden's way of trying to renew ties with the region

735
00:39:35,480 --> 00:39:39,000
Speaker 1: after the Trump administration really ended a lot of the contact.

736
00:39:39,880 --> 00:39:41,719
Speaker 1: And of course we're waiting for the President to head

737
00:39:41,760 --> 00:39:44,000
Speaker 1: to Saudi Arabia later today, but in the meantime, we

738
00:39:44,040 --> 00:39:47,320
Speaker 1: wanted to what's happening on Capitol Hill as well, because

739
00:39:47,320 --> 00:39:50,600
Speaker 1: there's been a lot of developments, including Joe Mansion once

740
00:39:50,600 --> 00:39:54,680
Speaker 1: again putting a big hurdle in front of the slim

741
00:39:54,760 --> 00:39:57,680
Speaker 1: down economic package that he's been negotiating with the Senate

742
00:39:57,680 --> 00:40:01,840
Speaker 1: Majority Leader. Yeah, Joe Mansion told Democratic leader is that

743
00:40:01,880 --> 00:40:05,560
Speaker 1: he wouldn't be supporting new climate measures or tax increases,

744
00:40:05,800 --> 00:40:09,120
Speaker 1: particularly climate. That's something that Biden really wanted to see happen.

745
00:40:09,200 --> 00:40:11,759
Speaker 1: It's something that he was very much pushing for, very

746
00:40:12,040 --> 00:40:14,880
Speaker 1: you know, really togging um and Manson has said that

747
00:40:14,920 --> 00:40:17,560
Speaker 1: he does not want that in a final bill. He

748
00:40:17,600 --> 00:40:20,200
Speaker 1: wants the bill to really be focused on reducing the

749
00:40:20,200 --> 00:40:23,520
Speaker 1: deficit and potentially a number of healthcare measures as well

750
00:40:23,920 --> 00:40:26,840
Speaker 1: as things like bringing down drug prices, which have already

751
00:40:26,920 --> 00:40:29,719
Speaker 1: been agreed to. And this comes as we're seeing inflation

752
00:40:29,800 --> 00:40:32,840
Speaker 1: hit nine point one percent. Mansion has been consistently concerned

753
00:40:32,840 --> 00:40:36,520
Speaker 1: about inflation, consistently warned, uh, you know, that inflation was

754
00:40:36,560 --> 00:40:39,759
Speaker 1: sort of tempering his desire to see some of this

755
00:40:39,840 --> 00:40:43,319
Speaker 1: new spending and the reconciliation go through. And this has

756
00:40:43,360 --> 00:40:46,560
Speaker 1: really been very frustrating for a lot of Democrats just

757
00:40:46,600 --> 00:40:48,960
Speaker 1: to see this big package that they have get whittled

758
00:40:48,960 --> 00:40:51,879
Speaker 1: and whittled down further, but knowing really there's nothing can

759
00:40:51,920 --> 00:40:53,920
Speaker 1: they can do about it as Mansion is not going

760
00:40:53,960 --> 00:40:56,359
Speaker 1: to support something they don't have fifty votes, they don't

761
00:40:56,360 --> 00:40:59,000
Speaker 1: have the means to pass it. Uh So I expect

762
00:40:59,000 --> 00:41:01,239
Speaker 1: to see this. This is a Asian brokelate last night.

763
00:41:01,680 --> 00:41:05,480
Speaker 1: Expecting to see a lot of continued frustration around Capital

764
00:41:05,480 --> 00:41:08,040
Speaker 1: Hell today on that and even with the difficulties around

765
00:41:08,080 --> 00:41:10,640
Speaker 1: an economic package. Emily, it's very interesting to see this

766
00:41:10,719 --> 00:41:13,400
Speaker 1: breaking news this morning that House Democrats are going to

767
00:41:13,480 --> 00:41:16,040
Speaker 1: try to move forward on an assault weapons band vote.

768
00:41:16,080 --> 00:41:21,160
Speaker 1: This is really interesting. Yes, so the Hose Judiciary Committee

769
00:41:21,160 --> 00:41:24,680
Speaker 1: has announced that they'll be taking steps basically to start

770
00:41:24,680 --> 00:41:28,000
Speaker 1: the process of moving this assault weapons ban built forward.

771
00:41:28,320 --> 00:41:30,520
Speaker 1: Now at this point, I've spoken with a couple of

772
00:41:30,560 --> 00:41:33,040
Speaker 1: senior Democratic aids who have said that, you know, there

773
00:41:33,080 --> 00:41:35,720
Speaker 1: hasn't really been any sort of announcement yet about whether

774
00:41:35,800 --> 00:41:38,840
Speaker 1: this bill will come to the floor. The issue is that, methank,

775
00:41:38,880 --> 00:41:40,600
Speaker 1: there there might not be enough votes to get it

776
00:41:40,640 --> 00:41:43,359
Speaker 1: to pass. There are a number of Democrats who are

777
00:41:43,400 --> 00:41:46,480
Speaker 1: from pretty conservative areas and have said that they do

778
00:41:46,560 --> 00:41:49,600
Speaker 1: not support an assault weapons fan. Uh. If you remember

779
00:41:49,640 --> 00:41:53,399
Speaker 1: there was um Lola maker from Buffalo, Chris Jacobs, who

780
00:41:53,440 --> 00:41:57,399
Speaker 1: came out as uh anti assault weapons after the mass

781
00:41:57,440 --> 00:42:00,400
Speaker 1: shooting in the Buffalo grocery store. He's a public in

782
00:42:00,480 --> 00:42:02,480
Speaker 1: in A week later, he had to announce that he

783
00:42:02,560 --> 00:42:05,560
Speaker 1: would not be running for re election because the backlash

784
00:42:05,560 --> 00:42:08,480
Speaker 1: to that announcement was so negative. So this is a

785
00:42:08,520 --> 00:42:11,759
Speaker 1: pretty controversial area. I think the fact that you've seen

786
00:42:11,880 --> 00:42:15,040
Speaker 1: leadership go and address it right now really speaks to

787
00:42:15,239 --> 00:42:18,120
Speaker 1: how public sentiment is turning after some of the most

788
00:42:18,200 --> 00:42:21,520
Speaker 1: recent mass shootings. We've seen Emily Wilkins of Bloomberg Government

789
00:42:21,560 --> 00:42:24,239
Speaker 1: keeping any everything happening in the nation's capital. So can

790
00:42:24,280 --> 00:42:26,560
Speaker 1: you read all these stories at Bloomberg dot com or

791
00:42:26,560 --> 00:42:29,840
Speaker 1: on the Bloomberg terminal and listen to Bloomberg Radio in Washington,

792
00:42:29,920 --> 00:42:33,560
Speaker 1: d C Bloomberg and one oh five point seven FM

793
00:42:33,760 --> 00:42:37,560
Speaker 1: HD two. Continuing to watch shares of Wells Fargo in

794
00:42:37,680 --> 00:42:41,440
Speaker 1: early trading after reporting disappointing earnings there down three and

795
00:42:41,480 --> 00:42:43,279
Speaker 1: a half percent in the pre market. Much more to

796
00:42:43,320 --> 00:42:47,320
Speaker 1: come on Bloomberg Surveillance Next for Karen Moscow. I'm Nathan Hagar.

797
00:42:47,520 --> 00:42:48,320
Speaker 1: This is Bloomberg