WEBVTT - Bloomberg Daybreak: July 15, 2022 - Hour 2 (Radio) 0:00:02.800 --> 0:00:06.199 Live from the Bloomberg Interacted Berger Studios. This is Bloomberg 0:00:06.240 --> 0:00:10.080 Daybreak for Friday, July fifteen two. Coming up this shower, 0:00:10.480 --> 0:00:13.720 China's economy grows at the slowest pace since the onset 0:00:13.760 --> 0:00:16.400 of COVID Bank. Ernie's continue with City Group and while 0:00:16.440 --> 0:00:19.920 Spargo reporting key economic data. This morning is the debate 0:00:20.000 --> 0:00:23.880 over fed policy continues, and President Biden's Midda East trip 0:00:23.920 --> 0:00:27.240 takes center stage in Saudi Arabia. New York City Council 0:00:27.240 --> 0:00:31.000 approves abortion rights measures. Plus Governor hokel allows millions of 0:00:31.040 --> 0:00:34.120 dollars to fight gun violence. I'm Michael bar more than head, 0:00:34.479 --> 0:00:37.120 I'm John Stage Down and sports. Easy win for the Mets, 0:00:37.120 --> 0:00:39.560 extra any loss for the Yankees, and they're playing the 0:00:39.560 --> 0:00:44.879 second round of the Open Championship in Scotland. That's all 0:00:45.040 --> 0:00:48.720 trended ahead on Bloomberg Daybreak on Bloomberg Eliven Free on 0:00:48.840 --> 0:00:53.159 New York, Bloomberg one, Washington, d C, Bloomberg one O 0:00:53.280 --> 0:00:58.080 six one, Boston, Bloomberg nine sixties and Francisco Syrius XM 0:00:58.120 --> 0:01:01.520 one nineteen and around the world on Bloomberg Radio dot 0:01:01.560 --> 0:01:08.360 Com and the Bloomberg Business app. Good morning, I'm Nathan 0:01:08.400 --> 0:01:11.560 Hagar and I'm Karen mostal u s stock index futures 0:01:11.560 --> 0:01:13.600 are higher this morning. We are coming up to six 0:01:13.600 --> 0:01:15.320 o one on Wall Street, and we check the markets 0:01:15.360 --> 0:01:18.720 every fifteen minutes throughout the trading day. On Bloomberg, SNP 0:01:18.920 --> 0:01:21.080 Future is up six points this morning. Down Future is 0:01:21.160 --> 0:01:23.960 up seventy two and Nastack Future is up fourteen. The 0:01:24.120 --> 0:01:27.119 decks in Germany's up one point four percent. Can your 0:01:27.160 --> 0:01:30.360 treasury up six thirty seconds? Here'll two point nine three percent. 0:01:30.440 --> 0:01:33.360 They yield on the two year three point one two percent, 0:01:33.800 --> 0:01:36.160 and non max Screwede oil is little change at ninety 0:01:37.120 --> 0:01:40.199 three cents of barrel, the euro one point zero zero 0:01:40.319 --> 0:01:43.080 three nine against the dollar. Nathan, Thank you, Karen. We 0:01:43.160 --> 0:01:46.440 begin this morning with economic news across the globe. Our 0:01:46.440 --> 0:01:49.559 first stop is Asia, where data show China's economic growth 0:01:49.600 --> 0:01:52.360 slowed sharply in the second quarter. Let's begin our team 0:01:52.360 --> 0:01:55.000 coverage this morning with Bloomberg day Break Asia anchor Brian 0:01:55.080 --> 0:01:57.920 Curtis in Hong Kong. It's the slowest pace since the 0:01:57.960 --> 0:02:02.120 pandemic began back in twenty The economy actually contracted two 0:02:02.200 --> 0:02:05.440 point six percent quarter on quarter. It chose the price 0:02:05.520 --> 0:02:09.760 of China's dynamic zero COVID policies, but trends are improving. 0:02:10.040 --> 0:02:13.280 Retail sales recovered somewhat in June, gaining three point one 0:02:13.320 --> 0:02:16.959 percent year on year, industrial production up three point nine percent, 0:02:17.040 --> 0:02:20.480 mostly in line, and fixed asset investment jumping six point 0:02:20.560 --> 0:02:23.919 one percent. That said, property prices fell for a tenth 0:02:23.960 --> 0:02:27.560 consecutive month, slipping zero point one percent from May in 0:02:27.639 --> 0:02:30.400 Hong Kong. Brian Curtis Sploomberg Day Break. All right, Brian, 0:02:30.440 --> 0:02:33.560 thank you. In Europe today, our focus is political turmoil 0:02:33.639 --> 0:02:36.919 in Italy. Prime Minister Mario drags offer to resign has 0:02:36.919 --> 0:02:39.600 been rejected by the country's president. That leaves the door 0:02:39.639 --> 0:02:41.880 open for a solution that would have Dragging leading the 0:02:41.919 --> 0:02:45.560 government until elections next year begin More from a Bloomberg 0:02:45.600 --> 0:02:48.839 euro Area economist David Powell. The drama is probably going 0:02:48.880 --> 0:02:50.880 to be prolonged in the sense that even if we 0:02:50.919 --> 0:02:55.360 get beyond next week and Drug is able to uh 0:02:55.440 --> 0:02:59.360 command adequate support in Parliament, Italians have to go to 0:02:59.400 --> 0:03:02.920 the polls the end before next June, and Drug authorready 0:03:02.960 --> 0:03:06.080 said he won't stand um. So this isn't going to 0:03:06.120 --> 0:03:07.960 be going away, even if there is a kind of 0:03:08.200 --> 0:03:11.000 short term fix it's something we're gonna have to be 0:03:11.080 --> 0:03:13.919 watching for quite a while. Bloomer's David Powell says the 0:03:14.000 --> 0:03:16.760 chaos was triggered when a five star movement, the second 0:03:16.800 --> 0:03:20.680 largest party and drugs Alliance boycotted a confidence vote in 0:03:20.720 --> 0:03:23.280 the Italian Senate. Back here in the U. S care 0:03:23.280 --> 0:03:25.680 and the debate continues on whether the Federal Reserve will 0:03:25.720 --> 0:03:28.680 high rates by seventy five basis points or one percent 0:03:28.800 --> 0:03:31.840 later this month. FED Governor Christopher Waller addressed the issue 0:03:31.880 --> 0:03:35.360 at an event yesterday in Idaho. I fully support another 0:03:35.440 --> 0:03:40.160 seventy five basis point increase. However, my base case for 0:03:40.280 --> 0:03:45.720 July depends on incoming data. We have important data releases 0:03:45.760 --> 0:03:50.880 on retail sales, housing inflation expectations coming in before the 0:03:50.920 --> 0:03:54.720 next meeting. FED Governor Waller says economic ratings will be key, 0:03:54.760 --> 0:03:56.800 and there's more on the way today. The FED will 0:03:56.840 --> 0:03:59.160 be looking to two ratings in particular when it comes 0:03:59.160 --> 0:04:01.840 to setting police, at least as the case for Cleveland 0:04:01.880 --> 0:04:05.440 FED President the Redemester. There's more data coming out that 0:04:05.560 --> 0:04:07.720 I'm going to be very attuned to. We have retail 0:04:07.760 --> 0:04:11.120 sales coming out, and we have very important University of 0:04:11.160 --> 0:04:14.560 Michigan report, and of course that's important because it has 0:04:14.840 --> 0:04:18.880 them placed Expectations measure UM, a consumer measure in there. 0:04:19.320 --> 0:04:22.200 And Cleveland Fed President Master spoke with Bloomberg. We get 0:04:22.200 --> 0:04:24.640 the retail sales figure today at eight thirty am Wall 0:04:24.680 --> 0:04:28.400 Street Time, followed by University of Michigan sentiment at ten. Okay, 0:04:28.440 --> 0:04:30.919 let's turn from the economy now to corporate earnings, Karen, 0:04:30.920 --> 0:04:34.440 because banks are front and center again today after yesterday's 0:04:34.440 --> 0:04:38.600 disappointing results from JP, Morgan Chase, and Morgan Stanley. Bloomberg's 0:04:38.640 --> 0:04:41.680 Jeff Bellinger has more The results from City Group and 0:04:41.680 --> 0:04:45.240 Wells Fargo will be the highlights this morning. Bloomberg Intelligence 0:04:45.279 --> 0:04:48.799 a City Group likely benefited from fixed income trading strength, 0:04:48.880 --> 0:04:51.680 but a slide in banking fees may have offset the games. 0:04:51.920 --> 0:04:55.120 Consumers were still generally healthy and that should have helped 0:04:55.120 --> 0:04:58.800 cities credit card business. Wells Fargo is still dealing with 0:04:58.839 --> 0:05:01.720 the fallout of the saga that started in twenty sixteen, 0:05:01.720 --> 0:05:04.480 when the bank was fine for its sales practices. B 0:05:04.680 --> 0:05:07.400 I s, as well as Vargo's profit and returns could 0:05:07.440 --> 0:05:10.839 move higher. The Fed's constraint on its balance sheet remains 0:05:10.839 --> 0:05:14.520 a key hurdle, Jeff Bullinger Bloomberg Day brink Right, Jeff, 0:05:14.520 --> 0:05:16.560 thank you. Meantime, banks are on the hook for a 0:05:16.640 --> 0:05:19.480 big bill from the government. Financial regulators are poised to 0:05:19.520 --> 0:05:22.200 extract a total of about one billion dollars in fines 0:05:22.240 --> 0:05:25.239 from the five biggest US investment banks. Be the story 0:05:25.279 --> 0:05:28.359 from Bloomberg's Doug Prisoner. It's the price for failing to 0:05:28.440 --> 0:05:33.159 monitor employee use of unauthorized messaging apps for communications involving 0:05:33.160 --> 0:05:36.440 bank business. In its earnings report, Morgan Stanley said it 0:05:36.480 --> 0:05:39.320 expects to pay a two hundred million dollar fine that's 0:05:39.360 --> 0:05:42.640 identical to what JP Morgan Chase paid, and it appears 0:05:42.640 --> 0:05:45.080 to be the figure being used as a benchmark. We 0:05:45.160 --> 0:05:47.920 are told City Group, Goldman, Sachs, and Bank of America 0:05:48.040 --> 0:05:51.120 are all in advanced talks with regulators and each may 0:05:51.120 --> 0:05:54.320 pay a similar amount. These discussions have not yet been 0:05:54.320 --> 0:05:57.560 concluded in the penalties could still change in New York 0:05:57.560 --> 0:06:00.360 On Duck Prisoner Bloomberg Daybreak, Doug, thank you. Let's turn 0:06:00.400 --> 0:06:03.560 to politics now, where foreign relations are in focus. This 0:06:03.640 --> 0:06:05.919 is an important day on President Biden's agenda in the 0:06:05.920 --> 0:06:08.640 Middle East. He makes his way to Saudi Arabia, tonight 0:06:08.640 --> 0:06:11.320 and Bloomberg's and Marie Hordern is there. She brings us 0:06:11.320 --> 0:06:14.040 the latest from Jedda. President Biden will be meeting with 0:06:14.160 --> 0:06:18.120 Palestinian Authority Mahmood of Boss today before he had over 0:06:18.279 --> 0:06:20.719 to the Saudi Arabia. This is really going to be 0:06:21.000 --> 0:06:24.039 the pivotal moment of the trip and a controversial one, 0:06:24.120 --> 0:06:27.599 especially for many within the Democratic Party. President Biden is 0:06:27.680 --> 0:06:30.719 trying to bring the price of gasoline down. He need 0:06:30.720 --> 0:06:34.200 the Kingdom's help to get more barrels on the market. 0:06:34.440 --> 0:06:37.760 But of course when he was campaigning, he had vowed 0:06:37.880 --> 0:06:40.920 to make the Kingdom of Maria his administrations, that he 0:06:40.920 --> 0:06:43.200 would only deal directly with the king, and now we 0:06:43.240 --> 0:06:45.480 know he'll be meeting this evening with Crown Prince. Mom 0:06:45.480 --> 0:06:49.760 had been summons in Jedda, Saudi Arabia and Marie Hordern Boomberg, 0:06:49.760 --> 0:06:53.000 Gabrie sor right, Marie, thank you. Meantime, back in Washington, 0:06:53.120 --> 0:06:55.960 Senator Joe Manshin has delivered a huge blow to President 0:06:55.960 --> 0:06:59.679 Biden's economic agenda. The Democrat told party leaders he would 0:06:59.720 --> 0:07:03.400 not support new spending on climate measures or tax increases. 0:07:03.640 --> 0:07:07.520 Manson says he will back proposals on healthcare and drug prices, 0:07:07.880 --> 0:07:11.560 and again futures are on the rise this morning, and 0:07:11.600 --> 0:07:14.240 a straight ahead. We have a check of your local headlines, 0:07:14.640 --> 0:07:23.560 plus a check of sports, and this is Bloomberg. Thanks Karen. 0:07:23.640 --> 0:07:26.040 Six oh seven on Wall Street, seventy two degrees in 0:07:26.120 --> 0:07:28.920 Central Park. We've got a tractor trailer fire at the 0:07:29.200 --> 0:07:33.080 southbound eastern spur the New Jersey Turnpike. Details coming up 0:07:33.080 --> 0:07:35.480 in traffic. First Michael Barr with what else is going 0:07:35.520 --> 0:07:37.400 on in New York and around the world. Come morning, Michael, 0:07:37.400 --> 0:07:40.000 Good morning, Nathan. The New York City Council has taken 0:07:40.040 --> 0:07:44.360 steps to expand abortion and reproductive care rides. The council 0:07:44.600 --> 0:07:48.480 passed package bills, including providing free abortion pills at clinics. 0:07:48.840 --> 0:07:52.160 The New York City Abortion Rights Act also allows people 0:07:52.240 --> 0:07:55.440 seeking abortions from out of state to safely do so. 0:07:56.080 --> 0:07:59.440 New York Governor Kathy Hokel talked about shootings during an 0:07:59.440 --> 0:08:02.960 event in Brooklyn. Hocal announced a new budget allowance of 0:08:02.960 --> 0:08:05.720 over twenty million dollars to find gun violence in the state. 0:08:06.000 --> 0:08:09.440 Hocal says it would invest in several things, including crime 0:08:09.560 --> 0:08:14.520 labs investigating shooting statewide. We will continue devoting everything we 0:08:14.600 --> 0:08:17.400 have at our disposal to stop this crisis, because we 0:08:17.440 --> 0:08:20.720 are seeing a difference. Last month, Governor Hocal signed a 0:08:20.760 --> 0:08:24.440 new gun safety bill that banned carrying any firearms into 0:08:24.480 --> 0:08:29.240 sensitive places, including schools and mass transit stations. The Buffalo 0:08:29.280 --> 0:08:31.679 supermarket that was the scene of a deadly mass shooting 0:08:31.720 --> 0:08:35.520 reopens today. There was some debate about possibly shuttering the 0:08:35.520 --> 0:08:37.960 Top supermarket, but this man who lives in the community 0:08:38.240 --> 0:08:41.160 says he's glad it is reopening because it's the only 0:08:41.160 --> 0:08:44.880 grocery store the community has. We was excited about getting 0:08:44.880 --> 0:08:48.120 it in. Now um have that just taken away from 0:08:48.200 --> 0:08:51.880 us will be more devastations and you know then what 0:08:51.960 --> 0:08:55.520 we've already been through. Yesterday at federal grand jury and 0:08:55.559 --> 0:08:59.520 Buffalo returned to twenty seven account indictment charging Peyton Gendren 0:08:59.559 --> 0:09:02.839 with hate crimes. He's accused of shooting thirteen people, killing 0:09:02.880 --> 0:09:06.400 ten inside the supermarket. Prosecuted to say he targeted them 0:09:06.440 --> 0:09:09.679 because he wanted to kill black people. Concern is growing 0:09:09.679 --> 0:09:12.680 about monkey poks among some health experts. About four hundred 0:09:12.679 --> 0:09:16.120 cases have been identified in New York City alone. This week, 0:09:16.160 --> 0:09:19.680 the CDC announced several efforts to increase access to testing. 0:09:20.040 --> 0:09:23.040 White House Chief Medical Advisor, Dr Anthony Faunci told a 0:09:23.120 --> 0:09:26.120 d C the disease is easily treated but should not 0:09:26.240 --> 0:09:30.800 be ignored. There are vaccines that are available to prevent 0:09:30.880 --> 0:09:35.480 and respond to monkey poks. There are anti virals that 0:09:35.520 --> 0:09:38.640 are available, so we're not in the dark about this, 0:09:38.760 --> 0:09:42.600 although we really must take it seriously. Dr Fauci will 0:09:42.600 --> 0:09:45.959 be on Bloomberg later today at noon. Ivana Trump, the 0:09:46.000 --> 0:09:49.199 first wife of Donald Trump, has died in New York City. 0:09:49.520 --> 0:09:53.080 Ivana Trump was seventy three Global News twenty four hours 0:09:53.080 --> 0:09:56.120 a day on air and on Bloomberg Quicksac, powered by 0:09:56.160 --> 0:09:58.640 more than twenty seven hundred journalists and analysts more than 0:09:58.640 --> 0:10:02.240 a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. 0:10:02.400 --> 0:10:09.120 Thanks Michael. Coming up to six ten on Wall Street 0:10:09.200 --> 0:10:12.120 on Stanshower has the Bloomberg Sports all right, Nathan. Second 0:10:12.200 --> 0:10:13.880 night in the rowhere the Yankees and Reds played a game. 0:10:13.880 --> 0:10:16.800 They won ten innings and finished seven to six. Last 0:10:16.880 --> 0:10:19.280 night was one to one. In the eighth innings, Sincinnati 0:10:19.320 --> 0:10:22.480 scored three off Jonathan Loaisiga. Yanks tied the game on 0:10:22.559 --> 0:10:25.160 eighthenning home runs by Aaron Judge and Glabor Torres Reds 0:10:25.160 --> 0:10:28.200 then with three in the tenth off Lucas Litkey. Yanks 0:10:28.240 --> 0:10:30.679 got two back Matt Carpenter's eleventh home run, but the 0:10:30.720 --> 0:10:32.880 Reds held on and they won the series. Yanks and 0:10:32.920 --> 0:10:35.040 lost four the last five. They host the Red Sox 0:10:35.080 --> 0:10:37.600 tonight and regularly easy win for the Mats eight nothing 0:10:37.640 --> 0:10:40.440 over the Cubs Carlos Carrasco and Trevor Williams. The combined 0:10:40.480 --> 0:10:43.880 shutout home runs for Brandon Nimbo and Pete Alonzo. Cameron 0:10:43.960 --> 0:10:46.719 Youngs a twenty five year old golfer from Westchester. His 0:10:46.800 --> 0:10:49.320 father is the pro with the Sleepy Hollow Club, and 0:10:49.400 --> 0:10:52.480 Young's first ever round in an Open Championship was at 0:10:52.520 --> 0:10:57.000 eight under sixty four at St. Andrews. Anytime fot on 0:10:57.120 --> 0:11:00.559 that first teen year, eighteenth greener anywhere, especially on that 0:11:00.960 --> 0:11:05.120 kind of part of the course, UM, there's just no 0:11:05.320 --> 0:11:10.719 hiding how special the place it is. UM. And it's 0:11:10.760 --> 0:11:13.880 certainly been a goal to get to an Open Championship, 0:11:13.960 --> 0:11:17.439 and for my first one to be here, UM is 0:11:17.440 --> 0:11:20.000 a little bit extra special. Home still's got a two 0:11:20.000 --> 0:11:22.959 shot lead in today's second round. Dustin Johnson and Taylor 0:11:23.080 --> 0:11:25.680 Goops have moved to six under, tied for second with 0:11:25.760 --> 0:11:29.280 Rory McElroy. Tiger Woods is on the course. He's six over, 0:11:29.400 --> 0:11:32.160 had that seventy eight yesterday only seven Dolphers had a 0:11:32.240 --> 0:11:35.080 higher store Utah Jazz say all start guard Donovan Mitchell 0:11:35.160 --> 0:11:37.480 is available in the trade. The Knicks are interested, but 0:11:37.520 --> 0:11:41.160 reportedly the Jazz wanted in return four players and six 0:11:41.200 --> 0:11:43.719 first round picks, and the Knicks said no. John Sta 0:11:43.720 --> 0:11:47.400 actually wear Bloomberg Sports Nathan John Thank you. SMP features 0:11:47.440 --> 0:11:50.040 up six point, Staff Features up seventy nine, NaSTA features 0:11:50.080 --> 0:11:53.400 up fifteen points. Nimex crudes up a tenth per cent 0:11:53.480 --> 0:11:57.000 nine two cents of barrel as President Biden sets his 0:11:57.080 --> 0:12:00.959 sights on Saudi Arabia tonight, which check in with Bloomberg's 0:12:01.000 --> 0:12:04.040 use of Kamal l Dean next in Jetta. This is 0:12:04.080 --> 0:12:09.840 Bloomberg Bloomberg eleven three oh weather. Sunshine in the city 0:12:09.880 --> 0:12:12.720 today going up to near eighty five degrees eighty five 0:12:12.760 --> 0:12:15.320 for high tomorrow as well, could it ninety by Sunday 0:12:15.320 --> 0:12:17.400 with a chance of late afternoon showers and storms. Right 0:12:17.440 --> 0:12:24.560 now seventy two degrees. Markets, headlines and breaking news twenty 0:12:24.559 --> 0:12:27.360 four hours a day at Bloomberg dot Com, the Bloomberg 0:12:27.440 --> 0:12:31.000 Business out and at Bloomberg Quick Tape is a Bloomberg 0:12:31.080 --> 0:12:39.559 Business Flash. And I'm Karen Moscow and we are watching 0:12:39.600 --> 0:12:42.920 Earning's crossing the Bloomberg this morning. United Health Group racing 0:12:42.920 --> 0:12:45.600 it's full Your Profit outlook as expanded enrollment in the 0:12:45.600 --> 0:12:49.000 health insurers plans helped it beat Wall Street analysts forecast 0:12:49.040 --> 0:12:51.319 for the second quarter, and IT shares are up one 0:12:51.320 --> 0:12:54.320 percent in early trading. Black Rock clients slow the amount 0:12:54.320 --> 0:12:56.720 of money they poured into the firm's long term funds 0:12:56.720 --> 0:12:59.960 as markets cratered and inflation searched. Net inflows for the 0:13:00.000 --> 0:13:02.800 most products total sixty nine billion dollars for the three 0:13:02.840 --> 0:13:07.040 months ending Junet, forty billion dollars less than analysts were 0:13:07.080 --> 0:13:09.800 looking for. We hear from Most Fargo and City Group 0:13:09.920 --> 0:13:13.480 later today, among others. US DOT index futures are higher 0:13:13.559 --> 0:13:15.720 right now, the dollars surge stalling at the end of 0:13:15.720 --> 0:13:18.439 a week in which markets have been whipsawed by shifting 0:13:18.480 --> 0:13:21.320 expectations for a monetary tightening by the Federal Reserve and 0:13:21.360 --> 0:13:24.320 worries over global economic growth. We check the markets every 0:13:24.320 --> 0:13:27.480 fifteen minutes throughout the trading day. On bloomberg s ANDP 0:13:27.640 --> 0:13:30.080 futures a five points at DOW futures of seventy two 0:13:30.200 --> 0:13:33.280 NASDAG futures up twelve the decks in Germany's at one 0:13:33.320 --> 0:13:36.319 point four percent, the ten year treasury up seven thirty seconds, 0:13:36.559 --> 0:13:38.680 yild two point nine three percent. They yield on the 0:13:38.720 --> 0:13:41.319 two year three point one two per cent. Nine max 0:13:41.360 --> 0:13:43.559 screwed oil is up two tens per cent er nineteen 0:13:43.600 --> 0:13:46.000 cents at ninety five dollars, ninety seven cents of barrel 0:13:46.280 --> 0:13:48.880 comex schooled down four ten percent or six dollars sixty 0:13:48.920 --> 0:13:52.600 cents at sixteen twenty announced the Euro one point zero 0:13:52.679 --> 0:13:54.920 zero three eight against the dollar, British pound one point 0:13:54.960 --> 0:13:57.280 one eight two nine, the end one thirty eight point 0:13:57.320 --> 0:13:59.560 six nine, and look at a big coin of nine 0:13:59.559 --> 0:14:02.560 tenths for said at twenty eight hundred fifty dollars. That's 0:14:02.600 --> 0:14:05.240 a Bloomberg business flash. Now here's Michael Barrow with more 0:14:05.280 --> 0:14:07.800 on what's going on around the world. Michael Karen, thank 0:14:07.840 --> 0:14:10.320 you very much. President Joe Biden will announce three hundred 0:14:10.320 --> 0:14:14.360 sixteen million dollars in USA for the Palestinians today as 0:14:14.400 --> 0:14:17.520 he seeks to revive US ties with the Palestinian authority. 0:14:17.880 --> 0:14:20.320 He visited a hospital and then he will meet with 0:14:20.360 --> 0:14:23.760 the authorities President mak Muda bas Biden will later travel 0:14:23.840 --> 0:14:28.040 to Saudi Arabia. Ukrainian officials say Russian missiles that struck 0:14:28.040 --> 0:14:31.080 a city in central Ukraine killed at least twenty three 0:14:31.080 --> 0:14:33.880 people and wounded more than one hundred others, including children. 0:14:34.240 --> 0:14:38.080 Dozens are missing. In baseball, the Yankees lost to the Royals, 0:14:38.160 --> 0:14:40.880 the Mets beat the Cubs, the Red Sox lost to 0:14:40.920 --> 0:14:44.120 the Raise, the Nationals lost to the Braves, the Giants 0:14:44.240 --> 0:14:47.720 lost to Brewers Global News twenty four hours a day 0:14:47.760 --> 0:14:51.000 on air and on Bloomberg Quicktake, powered by more than 0:14:51.080 --> 0:14:53.640 twenty seven hundred journalists and analyst more than one hundred 0:14:53.680 --> 0:14:57.200 twenty countries. Michael Barr and this is Bloomberg. Nathan, all right, Michael, 0:14:57.240 --> 0:14:59.160 thank you for coming up to six twenty on Wall 0:14:59.200 --> 0:15:02.000 Street Live from the Bloomberg Interactive Broker Studios. This is 0:15:02.040 --> 0:15:04.520 Bloomberg Daybreak, and what we expect will be a pivotal 0:15:04.560 --> 0:15:06.680 day for President Biden is his tripped through the Middle 0:15:06.680 --> 0:15:10.200 East continues. Tonight, the President heads to Saudi Arabia for 0:15:10.280 --> 0:15:13.000 that much anticipated face to face with the Crown Prince 0:15:13.040 --> 0:15:16.200 Mohammed been Salmon. Let's go live to Jetta down check 0:15:16.240 --> 0:15:19.200 in ahead of that with Bloomberg's Yusef Kamal l Dean Yusuf. 0:15:19.360 --> 0:15:21.680 Great to speak with you this morning. We've already gotten 0:15:21.720 --> 0:15:25.000 some news ahead of President Biden's arrival your way. No 0:15:25.160 --> 0:15:29.040 announcement expected on increased oil supply. That probably would have 0:15:29.080 --> 0:15:31.320 been bigger news if we actually did get an announcement 0:15:31.440 --> 0:15:35.400 like that, right absolutely. I mean, this is the first 0:15:35.480 --> 0:15:38.280 visit by a US president to Saudi Arabia in the 0:15:38.320 --> 0:15:40.600 month of July, and there's a very good reason for that. 0:15:40.680 --> 0:15:44.240 It is hot, it is sticky, and this is not 0:15:44.360 --> 0:15:46.280 the right time of year to be going to the kingdom. 0:15:46.280 --> 0:15:49.200 And it shows you how important this trip is for 0:15:49.280 --> 0:15:52.280 the U S side to at least reset the conversation 0:15:52.320 --> 0:15:55.560 in some form or another. There's no doubt that it's 0:15:55.560 --> 0:15:58.840 a little bit awkward, given that the administration's played the 0:15:58.880 --> 0:16:01.720 human rights carl can Pain trail. Now they have to 0:16:01.800 --> 0:16:03.840 manage it. Are they gonna shake hands with the Saudi 0:16:03.880 --> 0:16:07.840 Crown Prince and the bilaterals later this afternoon? The Crownference 0:16:07.880 --> 0:16:10.760 has denied ordering the killing, but he has taken responsibility 0:16:10.800 --> 0:16:12.720 for it, and it's gonna build on what you just 0:16:12.760 --> 0:16:16.200 said about the crude oil. Look, the Saudis are already 0:16:16.240 --> 0:16:20.240 almost at Max's capacity. RBC Capital talk about a soft 0:16:20.280 --> 0:16:23.120 seeming of eleven point five million barrels per day. The 0:16:23.240 --> 0:16:25.480 target for August for the Saudis is just a little 0:16:25.480 --> 0:16:28.240 bit above eleven. Together with the u E looking at 0:16:28.280 --> 0:16:31.640 spirit capacity about three million barrels per day. Point being 0:16:31.800 --> 0:16:34.760 is that spirit capacity before the world. That's not spirit 0:16:34.760 --> 0:16:37.640 capacity for a visit from the US president and they've 0:16:37.680 --> 0:16:41.160 got a safeguard this for potential turmoil down the line. 0:16:41.160 --> 0:16:44.360 They can't tap this today. Well, what potential gains, if 0:16:44.400 --> 0:16:47.040 any could the president see When it comes to the 0:16:47.200 --> 0:16:50.960 energy picture, yusef, is there a possibility that the president 0:16:51.040 --> 0:16:54.120 might be looking to drive something of a wedge between 0:16:54.120 --> 0:16:59.640 Saudi Arabia and Russia? For sure, Yes, definitely. It is 0:17:00.000 --> 0:17:03.240 a way to try and get the saaludiast to steer 0:17:03.320 --> 0:17:07.520 OPEC plus to be as accommodating as they can be, 0:17:08.040 --> 0:17:10.879 and so the way rapid and energy they described it 0:17:10.920 --> 0:17:13.320 in a note this morning, they could get a generic 0:17:13.320 --> 0:17:16.560 pledge to do what they can to keep the powder 0:17:16.680 --> 0:17:19.480 drying kind of thing but at the same time it's 0:17:19.520 --> 0:17:24.240 also to get the Russians to be on guard because 0:17:24.359 --> 0:17:27.119 the reality is here in the Middle East, and one 0:17:27.119 --> 0:17:29.760 of the conversations I've had over the last six months, 0:17:29.800 --> 0:17:32.280 there is a sense that this part of the world 0:17:32.840 --> 0:17:37.120 has not featured very highly in the current administration's agenda, 0:17:37.480 --> 0:17:40.200 and so this trip is at least away and we've 0:17:40.200 --> 0:17:43.399 seen this with the meetings with you know, with some 0:17:43.480 --> 0:17:46.520 of the other factions over the last twenty four hours 0:17:46.560 --> 0:17:50.800 in Palestine. Basically this comes to be the more more priority. Still, 0:17:50.800 --> 0:17:53.440 Saudi Arabia is the only stop actually in the Arab world, 0:17:53.480 --> 0:17:56.280 and the Saalies are selling this as kind of you know, 0:17:56.359 --> 0:17:59.359 look at us, We're really important, and we manner to 0:17:59.440 --> 0:18:03.119 a global economy that's struggling for oil barrels. As you mentioned, 0:18:03.200 --> 0:18:05.600 use if the human rights issue is going to be 0:18:05.680 --> 0:18:08.639 a major focus as well. The President has been asked 0:18:08.680 --> 0:18:11.159 about this whether he's going to directly bring up the 0:18:11.240 --> 0:18:13.960 Jamal ka show Ji's murder. He says he wants to 0:18:14.000 --> 0:18:17.800 project American values, but it seems like he's kind of 0:18:17.840 --> 0:18:19.960 hedging a little bit when it comes to being really 0:18:20.080 --> 0:18:25.440 direct with NBS. Yeah, this has been a very difficult 0:18:25.440 --> 0:18:27.879 one to to navigate for the White House and for 0:18:27.960 --> 0:18:32.600 the saudiast I mean, it is important for this leadership 0:18:32.680 --> 0:18:36.680 here in the Kingdom to get the ties in order. 0:18:36.800 --> 0:18:39.640 It's a long relationship they've had with Saudi Arabia. It's 0:18:39.680 --> 0:18:41.960 not the first time that they haven't seen iid I 0:18:41.960 --> 0:18:44.679 I think back to I mean, look, it's almost fifty 0:18:44.760 --> 0:18:47.399 years to the day since the former President Richard Mixon 0:18:47.760 --> 0:18:50.479 came to Saudi Arabia and asked for more barrels at 0:18:50.520 --> 0:18:53.080 a time when there was an inflationary wave as well. 0:18:53.400 --> 0:18:56.199 So a little bit parallels throughout history. But at the 0:18:56.280 --> 0:18:58.600 end of the day, what are we gonna get? You 0:18:58.600 --> 0:19:00.639 know what I mean? Are we gonna get a handshake? 0:19:00.720 --> 0:19:02.960 Are we're gonna get, you know, a bit of a meeting? 0:19:03.480 --> 0:19:06.560 Probably we're gonna manatee the optics. It's a tough one. 0:19:06.680 --> 0:19:10.320 There's no doubt that I don't envy. I don't envy 0:19:10.359 --> 0:19:13.040 anybody trying to set up the meetings or the trip. 0:19:13.440 --> 0:19:16.760 I'll just be watching and uh and observing and taking 0:19:16.800 --> 0:19:21.120 some notes. Yeah, no matter what the potential photo op 0:19:21.160 --> 0:19:23.199 looks like, it is definitely going to be one for 0:19:23.240 --> 0:19:27.040 the history books. Whether it's awkward or all smiles. Very 0:19:27.160 --> 0:19:30.480 interesting to watch. Thanks for this use of again great 0:19:30.480 --> 0:19:32.399 have you go on with us use of Gamal L 0:19:32.440 --> 0:19:36.119 Dean Bloomberg television anchor with us this morning from Jetta, 0:19:36.200 --> 0:19:39.800 Saudi Arabia ahead of President Biden's arrival for that face 0:19:39.880 --> 0:19:43.560 to face something we hadn't thought we'd see just a 0:19:43.560 --> 0:19:47.359 few months ago with the Crown Prince Mohammed been Salmon. 0:19:47.920 --> 0:19:50.119 Right now, SMP future is up eight points, Staff futures 0:19:50.160 --> 0:19:51.679 up ninety one, and that is that future is up 0:19:51.720 --> 0:19:54.760 twenty one points ten. Your treasury up seven thirty seconds, 0:19:55.080 --> 0:19:57.639 the yield on the benchmark ten year note to point 0:19:57.760 --> 0:20:08.360 nine three percent. Are listening to Bloomberg day Break Bloomberg 0:20:08.400 --> 0:20:12.000 eleven three oh weather sunshine mid eighties today, sunshine tomorrow 0:20:12.040 --> 0:20:14.639 mid eighties as well could at ninety on Sunday with 0:20:14.680 --> 0:20:17.159 some late afternoon showers and storm stand the weekend right 0:20:17.160 --> 0:20:23.760 now seventy two in Central Park, broadcasting live from the 0:20:23.840 --> 0:20:27.840 Bloomberg Interactive Broker Studio in New York. Bloomberg E Living 0:20:27.880 --> 0:20:32.480 Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one 0:20:32.480 --> 0:20:35.639 oh six one to San Francisco. Bloomberg nine sixty to 0:20:35.720 --> 0:20:38.399 the country, Sirius XM to the one nine team, and 0:20:38.480 --> 0:20:41.840 around the globe, the Bloomberg Business at and Bloomberg Radio 0:20:41.960 --> 0:20:51.680 dot com. This is Bloomberg Daybreak six thirty on Wall Street. 0:20:51.680 --> 0:20:54.560 Good morning, I'm Nathan Higger and I'm Karen Moscow. We 0:20:54.640 --> 0:20:56.639 are just about three hours away from the open of 0:20:56.720 --> 0:20:58.760 US trading. Time for the fine things that you need 0:20:58.840 --> 0:21:01.640 to notice start your day. Brought to you by Interactive 0:21:01.680 --> 0:21:04.720 Broker's Global Analyst. It helps you find new global investment 0:21:04.720 --> 0:21:09.280 opportunities to diversify your portfolio and discover undervalued companies that 0:21:09.320 --> 0:21:11.920 may have greater growth potential. Try i v k R 0:21:11.960 --> 0:21:15.439 Global Analyst today at IBKR dot com. Slash g A 0:21:16.320 --> 0:21:19.520 first returned to China, where the economy grew just four 0:21:19.600 --> 0:21:22.680 tents of upper cent last quarter. That's the slowest pace 0:21:22.680 --> 0:21:26.120 since has started the pandemic, But Bloomberg macro strategist Mark 0:21:26.160 --> 0:21:28.679 Hudmore says it's not the g d P miss that 0:21:28.760 --> 0:21:31.359 worries him. The data, I think at the moment is 0:21:31.400 --> 0:21:33.320 first of all, a little bit backward looking, and there's 0:21:33.320 --> 0:21:35.760 a bit of a dynamic here where we're kind of going, Hey, 0:21:35.840 --> 0:21:37.760 bad news is good news for markets because it means 0:21:37.760 --> 0:21:40.120 more policy eason to come through the data this morning 0:21:40.160 --> 0:21:42.600 to not worry me. But the property sector story is 0:21:42.640 --> 0:21:44.639 getting worse at a quicker rate than I think many 0:21:44.680 --> 0:21:46.560 of us anticipated a month or two ago. The credit 0:21:46.560 --> 0:21:49.240 problems are spreading beyond the property sector into the biking center, 0:21:49.359 --> 0:21:51.800 and that is a concern for China, and Bloomberg's Mark 0:21:51.800 --> 0:21:55.159 Cudmore says China's second half performance will be important well 0:21:55.200 --> 0:21:58.080