Speaker 1: Live from a Bloomberg interactive Brooker Studios is Bloomberg Daybreak
Speaker 1: for Frinday, July one, two, Coming up this hour. The
Speaker 1: stock selloff continues after the worst first half in more
Speaker 1: than fifty years. The fetis in focused as a top
Speaker 1: Republican says the Central Bank needs more transparency. Bitcoin clause
Speaker 1: back losses as the digital currency seeks to rebound for
Speaker 1: Pittsburgh month. Eather police and Newark are investigating a shooting
Speaker 1: that left nine people wounded, plus New York City debuts
Speaker 1: a new DNA gun unit, Catch Criminal. I'm like long ahead,
Speaker 1: I'm Scott Santenberg, Kevin Durant. What's out the latest on
Speaker 1: NBA free agency? And the Yankees fell in Houston. That's
Speaker 1: all coming up in sports, That's all strained ahead on
Speaker 1: Bloomberg day Break on Bloomberg he Livened three on New
Speaker 1: York Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco syrius x M one nineteen
Speaker 1: and around the world on Bloomberg Radio dot Com and
Speaker 1: via the Bloomberg Business Act. And good Morning. I'm Karen Moscow.
Speaker 1: I'm Nathan Haggard Bloomberg Daybreak brought to you by Informatica.
Speaker 1: In the Cloud, your data has the power to do
Speaker 1: the extraordinary. Managed data across any location in the cloud
Speaker 1: for accurate and actionable insights. More at informattica dot com.
Speaker 1: And futures are lower this morning. It is five oh
Speaker 1: one on Wall Street. We checked the markets every fifteen
Speaker 1: minutes throughout the trading day on Bloomberg Right now, S
Speaker 1: and P futures are down fourteen points now futures down
Speaker 1: one D twenty and NAS day futures down forty seven.
Speaker 1: The docks in Germany is up to tenths of upper
Speaker 1: sent A ten year Treasury up five thirty seconds, yell
Speaker 1: two point nine and the yelled on the two year
Speaker 1: two point nine one percent, and I make screwed oil
Speaker 1: is at one point three percent at a hundred seven
Speaker 1: dollars fourteen cents a barrel Nathan Karen. As we head
Speaker 1: into this second half, another bout of risk aversion is
Speaker 1: rippling across market, sending futures lower long along with treasury yields.
Speaker 1: The SMP five hundred had its worst first half since seventy.
Speaker 1: Is inflation and fears of recession take hold, but Brent Shooty,
Speaker 1: chief investment officer at Northwestern Mutual, has a positive outlook
Speaker 1: for the second half. I think you're already starting to
Speaker 1: see signs of inflation pulling back. The market is already
Speaker 1: showing you that they believe it's going to pull back.
Speaker 1: I think that backdrop will lead to a stronger second
Speaker 1: half for stocks because we won't have to worry about
Speaker 1: the said continuing to hike US so far into a recession.
Speaker 1: Um we certainly could have a recession, but it would
Speaker 1: be very, very mild, and I think the market already
Speaker 1: discounted that. Brend Shooty with Northwestern Mutual thinks the biggest
Speaker 1: risk to markets right now is rising energy prices and
Speaker 1: the war in Ukraine. Well, US features are lower, Nathan,
Speaker 1: It's more of a mixed picture across the pond in Europe.
Speaker 1: And Bloomberg's You and Ponts joins us line from London
Speaker 1: with the latest good Morning You in Good Morning Counter ninthan.
Speaker 1: Plenty of sunshine in London this morning as July gets
Speaker 1: on the way, but a damp starts to the month.
Speaker 1: Equities with your Stock sounded up one tenth of one
Speaker 1: percent on lower than average volumes. Damn, certainly an improvement
Speaker 1: on the powerful storm that was the first six months
Speaker 1: of the year. It was the worst first half of
Speaker 1: the stockie hundred since two thousand and eight, the European
Speaker 1: benchmark shedding seventeen percent of its value between January and June.
Speaker 1: Live in London, I'm you and pots in big day break,
Speaker 1: kind of grace guys in Asia as well. You and
Speaker 1: with the looming economic slowdown driving another bad of risk
Speaker 1: a version there as well. Bloomberg's Juliette Sally joins us
Speaker 1: with more from Singapore. Good morning, Juliet, Good morning Nathan
Speaker 1: and Karen. The MSCI Asia Pacific Index started the new
Speaker 1: trading month quarter and half, where it finished off in
Speaker 1: the red. The gauge fell for a third session, led
Speaker 1: lower by Japan, and tech stocks hit hardest on growth concerns.
Speaker 1: Taiwan's tai x on track to enter a bear market,
Speaker 1: down twenty from its January peak. Stocks in Maitland, China
Speaker 1: meandered between gains and losses, and Hong Kong was closed
Speaker 1: for a holiday. The yen climbed, while commodity linked currencies
Speaker 1: were on the back foot, and India's rupee dropped to
Speaker 1: a record loan in Singapore. Juliette Sally Bloomba daybreak Right, Juliet,
Speaker 1: thank you all. Oil chocked up his first monthly decline
Speaker 1: since November. A lower consumer spending in the US and
Speaker 1: fears of our accession. We're pushing prices down. Prices are
Speaker 1: higher this morning. Nim Ex Screwed Oil up one point
Speaker 1: four percent, up a dollar forty seven and a hundred
Speaker 1: seven dollars cents, and Barrel brand is up one and
Speaker 1: a half percent at a hundred ten dollars sixty eight cents. Well,
Speaker 1: it's like at crypto now, Karen. Fresh off its biggest
Speaker 1: ever monthly declimb, Bitcoin's whip song traders today, Bloomberg's Granita
Speaker 1: Young joins US Live with Mark. Good morning, Granita, Good
Speaker 1: morning Nathan. Bitcoin rallied as much as eleven percent in
Speaker 1: Asia earlier today, It quickly gave up most of those
Speaker 1: gains as global equities took a dive. Bitcoin's wild swings
Speaker 1: underscore the uncertainty looming over cryptos as investors struggled to
Speaker 1: assess how far central banks will go detain inflation. And
Speaker 1: adding to that confusion, major crypto players have been thrown
Speaker 1: into disarray by the market sell off. That's raising the
Speaker 1: prospect of further contagion. Right now, bitcoin is trading around
Speaker 1: twenty thousand. Live in New York. I'm really need a
Speaker 1: young Bloomberg daybreak. All right, we need to thank you.
Speaker 1: We turned to Washington now, where the top Republican on
Speaker 1: the Banking Committee says the economy faces a significant risk
Speaker 1: over session. Pat Toomey points of the Federal Reserve, saying
Speaker 1: the central Bank has taken a position where they're not
Speaker 1: accountable to anyone. We have the situation where the FED
Speaker 1: is basically stonewall in Congress. The regional banks and to
Speaker 1: some some extent, the main FED are taking the position
Speaker 1: that what we do is none of your business. We're
Speaker 1: an independent agency. You can't really look very close down
Speaker 1: what we do. That's outrageous, right, The FED exists as
Speaker 1: a creature of Congress. Senator Pat Toomey said the FED
Speaker 1: must be more transparent and his subject to greater Congressional overside.
Speaker 1: He spoke with David Weston on Bloomberg's Balance of Power.
Speaker 1: Catch the program weekdays at noon on Bloomberg Radio and Television.
Speaker 1: We'll staying in Washington Karen fallout from this week's January
Speaker 1: six committee hearing remains front and center. Coacher Liz Cheney
Speaker 1: says the Secret Service agents involved in the reported incident
Speaker 1: with former President Donald Trum will now testify. Bloomberg said
Speaker 1: Baxter has the story. Cheney says she wants them under oath.
Speaker 1: The committee has spoken to both uh, Mr Ornado and
Speaker 1: Mr Angel. We welcome additional testimony, and says the committee
Speaker 1: will also detail witness intimidation by the White House. The
Speaker 1: way that I would put it is that it gives
Speaker 1: us a real insight into how people around the former
Speaker 1: president are operating and that they can influence the testimony
Speaker 1: of witnesses before the committee. She says, it will draw
Speaker 1: a clear picture. In San Francisco, I'm at Baxter Bloomberg daybreak, right,
Speaker 1: and thank you. Turning to Hong Kong now, where Chinese
Speaker 1: President Ji Jimping is presiding over celebrations marking twenty five
Speaker 1: years since the UK returned Hong Kong to China. Former
Speaker 1: police official John Lee has been sworn in as a
Speaker 1: city's chief executive. Ceremony comes as Hong Kong sees China
Speaker 1: tighten its grip on the city in Ukraine, care and
Speaker 1: Russian missile strikes hit an apartment building and a recreation
Speaker 1: center near Odessa earlier today. Seventeen people were killed. It
Speaker 1: comes after Moscow withdrew four verses from the strategic point
Speaker 1: of Snake Island. Ukrainian President Vladimir Zolinski's welcoming Russia's departure
Speaker 1: Moscow says it was a move to east grain shipments.
Speaker 1: Kiv says Russia was forced out by shelling. Futures moving
Speaker 1: lower this morning, and straight ahead, we have your latest
Speaker 1: local headlines and a check of sports. This is Bloomberg
Speaker 1: and it's now five oh seven on Wall Street where
Speaker 1: it's seventy three degrees in Central Park. You've got a
Speaker 1: closure on the northbound sawmill in the Bronx. Details coming
Speaker 1: up in traffic. First Michael Barb with more on what's
Speaker 1: going on in New York and around the world. Good morning, Michael,
Speaker 1: Good morning Nathan. New York Governor Kathy Oakel said she
Speaker 1: will convene a special session of the legislature today to
Speaker 1: begin considering legislation and shrining abortion access in the state's constitution.
Speaker 1: HOCl says the state will take action to protect its
Speaker 1: people in response to Supreme Court rulings on abortion rights
Speaker 1: and gun safety. It comes as New York lawmakers began
Speaker 1: a special legislative session yesterday with the intent of limiting
Speaker 1: the proliferation of firearms in public after the High Court
Speaker 1: got at the state century old handgun licensing law. New
Speaker 1: rules being rushed through an emergency session of the legislature
Speaker 1: would seek to set new restrictions on where firearms can
Speaker 1: be carried. Police in New Jersey say nine people, including
Speaker 1: a teenager, were wounded last evening in gunfire outside a
Speaker 1: neighborhood grocery shop in Newark. Acting Newark Public Safety Director
Speaker 1: Paul Malav says police are searching for a vehicle believed
Speaker 1: to have been involved in the shooting. We do have
Speaker 1: a vehicle that is of interest at this point. It's
Speaker 1: a white hand of pilot UH stolen out of Geergy
Speaker 1: City and we're following that. Lead public Safety Director Malav
Speaker 1: says all of the victims are expected to survive. New
Speaker 1: York Mayor Eric Adams says the city has launched what
Speaker 1: he calls the country's first ever forensic DNA gun crime unit.
Speaker 1: Adams says the new units with the city medical Examiner's
Speaker 1: office in Manhattan will be made up of twenty four
Speaker 1: full time criminologists who will process evidence. State of the art.
Speaker 1: The unit will accelerate evidence testing from sixty days to
Speaker 1: thirty days. It's going to cut it in half so
Speaker 1: that we can prosecute case faster and get dangerous people
Speaker 1: off our streets. Medical experts say they think COVID could
Speaker 1: come roaring back in the fall. Mayor Adams also says
Speaker 1: New York City announced a new Test to Treat mobile unit.
Speaker 1: It's in a joint federal and city program to improve
Speaker 1: access to the COVID anti viral drug PACKSLOVIT. This new
Speaker 1: public health service will help all New york Is get
Speaker 1: access to life saving treatments. Mayor Adams says the city
Speaker 1: helps to open nearly three dozen mobile units by the
Speaker 1: end of this month. W NBA star Britney Grinder is
Speaker 1: set to go on trial today in a Moscow area court.
Speaker 1: Grinder was arrested on Cannada's possession charges at a Russian airport.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred
Speaker 1: journalists analysts, more than a hundred twenty countries. Michael bar
Speaker 1: this is Bloomberg, Nathan. Thank you, Michael Damn. We're coming
Speaker 1: up to five ten on Wall Street. Time for the
Speaker 1: Bloomberg Sports Update. Here's Scott Seidenberg. Thanks Nathan. The bombshell
Speaker 1: that rocked the NBA world yesterday, Kevin Durant has requested
Speaker 1: a trade away from the Nets. The surprise announcement comes
Speaker 1: just a day after Kyrie Irving announced he was opting
Speaker 1: in it to the final year of his deal. Durant
Speaker 1: has four years remaining on his contract. Meanwhile, the Nicks
Speaker 1: have come to an agreement with free agent point guard
Speaker 1: Jalen Brunson on a four year, one hundred and four
Speaker 1: million dollar deal. Elsewhere, reigning two time m VP Nicola
Speaker 1: Yokis has agreed to a MAX extension with the Nuggets.
Speaker 1: It's the largest deal in NBA history. Also getting max
Speaker 1: extensions Devin Booker with the Son's, John Morant with the Grizzlies,
Speaker 1: and Karl Anthony Towns with the timber Wolves. Baseball, yesterday,
Speaker 1: the Yankees fell to the Astros to one. They'll begin
Speaker 1: a set in Cleveland tonight. The Mets will host the
Speaker 1: Rangers Tennis at Wimbledon, Rafael Nadal, Tech Advance Americans, Coco
Speaker 1: Golf and Jessica Pagoula move on sixth seed Carolina Plaskova
Speaker 1: was upset. I'm Scott Edinburg with Bloomberg Sports, Nathan Scott,
Speaker 1: thanks a lot, getting ready to start off the second
Speaker 1: half of two and futures at least for the moment
Speaker 1: are pointing to even more losses after the worst first
Speaker 1: half for stocks. Yes, we'll say it again since nineteen seventy.
Speaker 1: Right now, SMP futures are down eight points down, futures
Speaker 1: down seventy two. NASTAC futures are lower by twenty four points.
Speaker 1: Different story overseas. The decks in Germany is higher by
Speaker 1: four tenths percent. The CAEC in Paris is up a
Speaker 1: half percent. The tenure treasury back here in the US
Speaker 1: is up for thirty seconds, the yield now at two
Speaker 1: point nine nine percent. We'll look ahead to the second
Speaker 1: half and the risks of inflation and the potential slowdown
Speaker 1: if not a recession. Kit Juke's chief ex Strata just
Speaker 1: at suck Gen joins us. Next. This is Bloomberg Bloomberg
Speaker 1: eleven three oh weather Late day shower thunderstorm possible today
Speaker 1: low nineties, will be in the upper eighties tomorrow, low
Speaker 1: eighties Sunday sunshine, and eighty five for the fourth of July.
Speaker 1: Right now seventy three in Central Park markets, headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business at and at Bloomberg Quick Tape. He's
Speaker 1: a Bloomberg Business Flash, then I'm Cameron Moscow. Another bound
Speaker 1: of risk a version rippling across global markets, sending US
Speaker 1: DOT Index futures lower and lifting bonds and an ominous
Speaker 1: start to the second half. The dollar and yen traditional
Speaker 1: havens are climbing. If you checked the markets every fifteen
Speaker 1: minutes throughout the trading day, on Bloomberg, SNP future is
Speaker 1: down about seven points down, futures down fifty six, nast
Speaker 1: day futures down twenty the acts in Germany's up three
Speaker 1: tents of upper cent. Ten year treasury up seven thirty
Speaker 1: seconds yield two point nine eight percent, yield on a
Speaker 1: two year two point nine one percent. NIMEX scrude oil
Speaker 1: up one point eight percent of a dollar eighty eight
Speaker 1: at a hundred seven dollar, sixty four cents of barrel
Speaker 1: commacs gold is down six tenths per cent or eleven
Speaker 1: dollar seventy cents is seventeen nine sixty announced, the Euro
Speaker 1: one point oh four or five seven against the dollar,
Speaker 1: British pound one point two zero nine six, the n
Speaker 1: one thirty five point four five, and Bitcoin this morning
Speaker 1: is higher of four percent at nineteen thousand, five hundred.
Speaker 1: That's a Bloomberg business flash. Now here's Michael Barr with
Speaker 1: Moore on what's going on around the world. Michael, thank
Speaker 1: you very much. Jaren Ukrainian authorities say there was a
Speaker 1: Russian missile attacked to day on residential buildings in a
Speaker 1: coastal town near the port city of Odessa. At least
Speaker 1: seventeen people were killed, including two children. The top Republican
Speaker 1: on the House January six Committee, Congresswoman Liz Cheney, says
Speaker 1: the penel may ask the Justice Department to investigate anyone
Speaker 1: accused of pressuring witnesses. Florida's parental rights and education law
Speaker 1: that critics have dubbed that don't say gay measure begins today.
Speaker 1: It bands teaching on gender identity or sexual orientation in
Speaker 1: grades K through three in the state. In baseball, the
Speaker 1: Yankees lost, along with the A's Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than twenty seven under journalists and analysts more
Speaker 1: than a hundred twenty countries. Michael bar and this is Bloomberg.
Speaker 1: Nathan all right, Michael, thank you. It's five nineteen on
Speaker 1: Wall Street Live from the Bloomberg Interactive Brokers studios. This
Speaker 1: is Bloomberg Daybreak, And as we get ready to kick
Speaker 1: off the second half of two, are very pleased to
Speaker 1: be joined this morning by Kit Jukes, Chief FX Strategists
Speaker 1: Associated General. Although when you look at the screen this morning, Kit,
Speaker 1: it looks like at least US investors are having a
Speaker 1: little bit of trouble closing the books on the first half,
Speaker 1: were pointing two more losses in the futures contracts. How
Speaker 1: much more pricing in of recession risk and inflation concerns
Speaker 1: does this market have to go? Uh? We could, We
Speaker 1: could go a fair distance further. Unfortunately, before we're done.
Speaker 1: One of the things you see at the moment is
Speaker 1: that sentiment has taken a real dive. But I'm not
Speaker 1: sure that the positioning data reflects the same thing. So
Speaker 1: I'm not sure people have got out of all of
Speaker 1: those longer positions that they had in stocks, particularly m
Speaker 1: But you know, equally, I think we've got relatively a
Speaker 1: liquid markets coming through. And you know now that certainly
Speaker 1: your government is all your central bank is selling back
Speaker 1: bonds to the market. We have a lot to absorb
Speaker 1: here to get the place, to get everything for the
Speaker 1: right place. So I'm i'm I'm nervous that July August,
Speaker 1: never the best most liquid months of the era, are
Speaker 1: going to be pretty bumpy all the way through. Not
Speaker 1: that people are surprised by the fact that consumer confidence
Speaker 1: is weak, for example, and that we're all struggling with
Speaker 1: the rising inflation, but just that we just have to
Speaker 1: absorb the selling pressure that that's coming to us. And
Speaker 1: we just got a new inflation data out this morning
Speaker 1: from the Eurozone to some of the highest inflation that
Speaker 1: the nineteen countries that share the euro has seen in
Speaker 1: their history eight point six percent. What's the difficulty for
Speaker 1: Europe compared to the US when it comes to getting
Speaker 1: the reins in on these price pressures. Look, I think
Speaker 1: the problem is going to be faced by everybody in
Speaker 1: more or less the same way that policymakers who have
Speaker 1: had central banks have had a relatively easy ride for
Speaker 1: twenty years in terms of inflation. They couldn't get enough
Speaker 1: of it. Now they're facing this kind of multitude of
Speaker 1: factors driving keeping inflation high. Some of them they can't
Speaker 1: do much about. They can't control the price of gasoline.
Speaker 1: They can't control the price of jet fuel, which which
Speaker 1: we can all see being pushed up by by oil prices,
Speaker 1: but also by by the difficulties getting the rest of
Speaker 1: the of the products produced an apt and sufficient quantities
Speaker 1: um some bits. You know, we're going to see some
Speaker 1: pressure on wages. That's shortage post pandemic of all to
Speaker 1: serving at the bar of people to put your luggage
Speaker 1: into your airplane for you to go on vacation. That's
Speaker 1: going to be around, that's going to get passed on,
Speaker 1: and well, we'll see more of that that will be solved.
Speaker 1: The second kind of problem with weaker growth, higher rates
Speaker 1: will slow the economy down in Europe and in the
Speaker 1: United States. Where we'll have a dilemma is that we're
Speaker 1: seeing softer growth and higher inflation, and the central banks
Speaker 1: are facing really much harder choices and that they're not
Speaker 1: going to have a good time of it UM and
Speaker 1: I suspect though, in this occasion they're going to be resolute.
Speaker 1: So we'll we'll see rate hikes in July from from
Speaker 1: both the European Central Bank and SHIFT for that matter,
Speaker 1: the Bank of England and and the and the Federal
Speaker 1: Reserves that they'll raizor rates into what is clearly calling economy. Now. Yeah,
Speaker 1: I don't think we're hearing much anymore about the idea
Speaker 1: that these inflation pressures are transitory. But what do you
Speaker 1: think it's going to take? How long do you think
Speaker 1: we're going to be dealing with a lot of these
Speaker 1: price pressures that, as you say, are outside of central
Speaker 1: bankers control, things like the supply chain, bottlenecks, the issues
Speaker 1: with energy, with the war in Ukraine still continuing. I
Speaker 1: think those, you know, I think it's grubbing. Some of
Speaker 1: those get easier as as grows slow, So you hit
Speaker 1: the economy hard enough, we do we do stop driving
Speaker 1: or as so much pretty quickly. You know. I don't
Speaker 1: know whether I sit here in Europe and watch massive
Speaker 1: cues of people trying to get into airports which are
Speaker 1: short of UM staff to check people in and to
Speaker 1: get luggage onto planes and stuff. We we might we
Speaker 1: might use a lot of jet fuel to to go
Speaker 1: on vacation this summer because we promised the kids we
Speaker 1: were going. But we might all stay home all the
Speaker 1: way through to Christmas after that, and so you know,
Speaker 1: you could see demand come off by a lot. But
Speaker 1: but yeah, you know, we we if we take Russia
Speaker 1: out of the if we take Russia out of the
Speaker 1: equation on energy supplies to a significant degree, then then
Speaker 1: the reality will be um that uh, it's going to
Speaker 1: take a lot of economic weakness to reduce demand. In fact,
Speaker 1: it's almost impossible to reduce demand by enough to solve
Speaker 1: at and getting uh and getting more jet fuel and
Speaker 1: so on produced. Frankly, we need more investment in the industry,
Speaker 1: and we haven't seen much of that, so those will
Speaker 1: take time. What we'll probably see is that at least
Speaker 1: prices stabilize, come off a little bit, so the year
Speaker 1: over year moves and inflation start improving somewhat, but they're
Speaker 1: almost bound to settle down as a higher than they
Speaker 1: used to be pretty high plateau um sometime in the
Speaker 1: in the early part of next year. They'll steady out
Speaker 1: at the level that's still not what we like. In
Speaker 1: the central banks, I fear will feel that this is
Speaker 1: a battle they have to win and the hammer inflation lower,
Speaker 1: you know, for a fairly long time. Very tough job
Speaker 1: a head for central bankers. Thanks for this kid, great
Speaker 1: getting your thoughts. Kit Jukes, chief ex strategists at SoC
Speaker 1: General SMP futures down six points, more losses potentially in
Speaker 1: store frequity investors in the US now futures down fifty
Speaker 1: seven points. In NASTAC futures on the decline by sixteen points.
Speaker 1: This is Bloomberg Bloomberg eleven three O weather Hot one
Speaker 1: could see a light day shower storm today with highs
Speaker 1: in the low nineties. Some storms possible tomorrow and the
Speaker 1: next day, but we're expecting a sunny and mid eighties
Speaker 1: fourth of July. Right now seventy three degrees broadcasting live
Speaker 1: from the Bloomberg Interactive Broker Studio in New York. Bloomberg
Speaker 1: E Living Freedom to Washington, d C, Bloomberg ninety nine
Speaker 1: one to Boston, Bloomberg one oh six one to San Francisco,
Speaker 1: Bloomberg nine sixty to the Country, Sirius XM to the
Speaker 1: one nineteen and around the Globe, the Bloomberg Business APT
Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's
Speaker 1: five thirty on Wall Street. Good morning. I'm Nathan Hager
Speaker 1: and I'm Karen Moscow here just about four hours away
Speaker 1: from the open of US trade. Let's get you have
Speaker 1: to date in the news you need to know at
Speaker 1: this hour and not another bout of risk. Aversion is
Speaker 1: rippling across markets this morning, sending US futures and treasury
Speaker 1: yields and lower the SNP five heads worst first half
Speaker 1: since nineteen seventy as inflation and fears of a recession
Speaker 1: take hold. But Brent Shooty, chief investment officer at Northwestern Mutual,
Speaker 1: has a positive outlook for the second half. I think
Speaker 1: the big risk still is um certainly what's happening in
Speaker 1: Russian Ukraine and energy prices and how long those stay
Speaker 1: where they're at, and are we, you know, typically are
Speaker 1: we going to be in more of an energy shock
Speaker 1: for some period of time. That certainly has how to
Speaker 1: staying power on inflation so far, but I think you're
Speaker 1: starting to see everything else kind of depreciate around it,
Speaker 1: which I think is a good news for inflation. But
Speaker 1: certainly that is still one of the bigger risk that's
Speaker 1: out there. Brent shooting with Northwestern Mutual believes the biggest
Speaker 1: risk to markets right now is rising energy prices and
Speaker 1: the war in Ukraine. Well oils coming off its first
Speaker 1: monthly declined since November this morning, Karen, Lower consumer spending
Speaker 1: in the US and fears of recession did push crude down,
Speaker 1: but checking prices now, nimex cruds higher by one point
Speaker 1: six percent of a dollar sixty seven one oh seven
Speaker 1: forty three for a barrel of West Texas Intermediate, and
Speaker 1: Brent right now is a ten dollars eighty seven cents
Speaker 1: Well Nathan, Fresh off its biggest ever monthly decline, Bitcoin
Speaker 1: is whip sawing traders with wild swings today and Bloomberg's
Speaker 1: RINEDA Young joins US Live with more Good Morning Rania,
Speaker 1: Good morning Care, and bitcoin rallied as much as eleven
Speaker 1: percent in Asia earlier today, it quickly gave up most
Speaker 1: of those games as global equities took a dive. Bitcoin's
Speaker 1: wild swings underscore the uncertainty looming over cryptos as investors
Speaker 1: struggle to assist how far central banks will go to
Speaker 1: tame inflation and adding to that confusion. Major crypto flight
Speaker 1: players have been thrown into disarrayed by the market sell off.
Speaker 1: That's raising the prospect of further contagion. Right now, bitcoin
Speaker 1: is trading around nineteen thousand Live in New York. I'm
Speaker 1: Ranita Young, Bloomberg Daybreak. Okay, Nita, thanks so Starting to
Speaker 1: Washington now, where there's more fallout from this week's January
Speaker 1: six committee hearing. Vice chair List Chain says the Secret
Speaker 1: Service agents who are involved in that reported incident with
Speaker 1: former President Donald Trump will now testify before Congress. Well overseas, Nathan,
Speaker 1: Chinese President she Jimpeng has presided up our celebrations marketing
Speaker 1: twenty five years since the UK returned Hong Kong told
Speaker 1: China former police official John Lee has been sworn in
Speaker 1: as the city's chief executive and Ukraine careen. Russian missile
Speaker 1: strikes sent an apartment building and recreation center near Odessa
Speaker 1: earlier today, killing eighteen people. That comes after Moscow withdrew
Speaker 1: forces from the strategic point of Snake Island. Straight ahead,
Speaker 1: your latest local headlines and a check of sports. This
Speaker 1: is Bloomberg three on Wall Street, where it's seventy three
Speaker 1: degrees in Central Park and still dealing with the closure
Speaker 1: of the northbound sawmill in the Bronx. We get they
Speaker 1: did the details in Traffic First. Michael Barr is here
Speaker 1: with more on what's going on in New York and
Speaker 1: around the world. Michael, thank you very much, Nathan. New
Speaker 1: York Governor Kathy Oakle said she will convene a special
Speaker 1: session of the legislature today to begin considering legislation and
Speaker 1: try in abortion access in the state's constitution. According to
Speaker 1: a statement overnight from HOCOL, the state will take action
Speaker 1: to protect its people in response to Supreme Court rulings
Speaker 1: on abortion rights and gun safety. Hoco went on to
Speaker 1: say recent Supreme Court rulings have threatened the rights of
Speaker 1: New Yorkers to make decisions about their own bodies and
Speaker 1: our right to protect New Yorkers from gun violence. It
Speaker 1: comes as New York lawmakers began a special legislative session
Speaker 1: yesterday with the intent of limiting the proliferation of firearms
Speaker 1: in public. New rules would seek to set new restrictions
Speaker 1: on where firearms can be carried. Authorities in Newark, New Jersey,
Speaker 1: say nine people were shot in the suspected drive by shooting.
Speaker 1: Investigators say they're looking for a white Honda Pilot stolen
Speaker 1: out of nearby Jersey City. New Ork's acting Public Safety
Speaker 1: Director Rule Mala. Five of the shooting victims were able
Speaker 1: to h get themselves to area hospital on their own.
Speaker 1: Out of those five, one of them was a juvenile
Speaker 1: seventeen years old. All of those vict hims are in
Speaker 1: stable condition. Public Safety Director Lave says all of those
Speaker 1: shot and are expected to survive. New York Mayor Eric
Speaker 1: Adams calls that the country's first ever forensic DNA gun
Speaker 1: crime unit as the city remains on edge over a
Speaker 1: number of shootings. Adams spoke at a news conference outside
Speaker 1: Medical Examiner's office in Manhattan. The two point five million
Speaker 1: dollar unit will hire train twenty four forensic scientists dedicated
Speaker 1: to testing and analyzing of evidence from gun crimes throughout
Speaker 1: the five borough Mayor Adams says the unit will accelerate
Speaker 1: evidence testing from sixty days to thirty days. New York
Speaker 1: Governor Kathy Hucles signed a bill extending mayoral control over
Speaker 1: the New York City school system. It's a mensa key
Speaker 1: power for Mayor Adams. Just minutes before he was sent
Speaker 1: to expire, Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quicktake powered by more than journalists
Speaker 1: and analysts more than a hundred twenty countries. Michael Barr
Speaker 1: and this is Bloomberg, Nathan. Thank you, Michael on Wall Street.
Speaker 1: Time for the Bloomberg Sports Update. Good morning, Scott Seedinberg,
Speaker 1: Good morning, Nathan. As NBA free agency begames, the Nets
Speaker 1: received the news yesterday that Kevin Durant requesting a trade,
Speaker 1: the announcement coming just day after Kyrie Irving announced that
Speaker 1: he was opting in to the final year of his deal.
Speaker 1: Durant does have four years remaining on his contract. Meanwhile,
Speaker 1: the Knicks have come to an agreement with free agent
Speaker 1: point guard Jalen Brunton on a four year, one hundred
Speaker 1: and four million dollar deal. Elsewhere, reigning two time m
Speaker 1: VP Nicola Yokis has agreed to a MAX extension with
Speaker 1: the Nuggets. It's the largest deal in NBA history. Also
Speaker 1: getting max extensions Devin Booker with the Sons, John Rant
Speaker 1: with Grizzlies, and Karl Anthony Towns with the timber Wolves.
Speaker 1: Baseball yesterday, the Yankees felt that the Astros to one
Speaker 1: here was Aaron Boone. You know they've done a good
Speaker 1: job of for the most part, holding us down and um,
Speaker 1: you know that's gonna happen sometimes against UH teams to
Speaker 1: the Yankees beginn set in Cleveland. Tonight, the Mets will
Speaker 1: host the Rangers. Tennis at Wimbledon. Lafe Ladal Egatic Advance
Speaker 1: Americans Cocoa Golf, and Jessica Pagoula move on six seed.
Speaker 1: Carolina Plaskova was upset. I'm Scott Seginburg with Bloomberg Sports.
Speaker 1: Nathan all Right, Scott, thank you. We're coming up to
Speaker 1: five thirty seven on Wall Street. It's time for the
Speaker 1: Tri State Business Report. Here's Bloomberg's Ed Corey. New York
Speaker 1: State has rejected the renewal permit for a power plant
Speaker 1: used by green Ridge Generation Holdings for bitcoin mining. That
Speaker 1: decision comes after months of delays. The Department of Environmental
Speaker 1: Conservation says it denied the application because of statewide limits
Speaker 1: on greenhouse gas emissions. Eleven Madison Park explored raising hourly
Speaker 1: wages by thirty three present in September, but scrapped those
Speaker 1: plans after a negative New York Times review. According to
Speaker 1: Business Insider, the restaurant, which shranked number one on the
Speaker 1: world's Best fifty restaurant list in seventeen planned to announce
Speaker 1: wage and menu price hikes in an op ed piece
Speaker 1: that was never published. New Jersey Governor Phil Murphy has
Speaker 1: signed a fifty one billion dollars spending plan with property
Speaker 1: tax relief in a full pension payment for the second year.
Speaker 1: The budget, which is for the fiscal year starting July one,
Speaker 1: is thirty five recent higher than Murphy's first in eighteen.
Speaker 1: That your Bloomberg Try and State Business report. I'm Ed Corey.
Speaker 1: Thank you, Ed. It's almost on Wall Street. Bloomberg Radio
Speaker 1: is on the air from San Francisco to New York,
Speaker 1: London to Hong Kong. Let's check in with our global
Speaker 1: news team for some of the top stories heard on
Speaker 1: our three hundred a fillion radio stations around the world.
Speaker 1: I'm Steve Podascan on K and X in Los Angeles.
Speaker 1: We're talking about how advertisers are flocking to streaming services,
Speaker 1: has fewer people watch traditional TV. I'm Joan Doniger killing
Speaker 1: k f A D listeners in Omaha. The weather in
Speaker 1: the next few months will determine what a global food
Speaker 1: inflation slows down. I'm Gina Servetti in for w C
Speaker 1: c O in Minneapolis. I'm reporting that here Salon owner
Speaker 1: Regis has sold its Open Salon pro booking app to
Speaker 1: Zenoda at last Mateo. And on w b Z in Boston,
Speaker 1: I'll be reporting on a new trend in the electric
Speaker 1: vehicle market, car flipping. I'm Stephen Carol and Bloomberg d
Speaker 1: a Battal Radio in London. We've been reporting on travel
Speaker 1: chaos that you were of airports dashing hopes for a
Speaker 1: bumper summer season. I'm Ad Cory on w w J
Speaker 1: in Detroit. I'm reporting most US automakers will report second
Speaker 1: quarter sales results today, and those are some of the
Speaker 1: stories that are hundred Bloomberg journalists and analysts are working
Speaker 1: on this morning around the world. It's five thirty nine
Speaker 1: on Wall Street. The following is an editorial from Bloomberg Opinion.
Speaker 1: This sedatorial was written by the Bloomberg Editorial Board. For decades,
Speaker 1: US companies have been making a significant omission in their
Speaker 1: financial statements the full cost of their contribut usians to
Speaker 1: climate change. This matter is not only for the planet's future,
Speaker 1: but also for investors today. It makes some businesses look
Speaker 1: more profitable than they really are, and it prevents others
Speaker 1: from realizing the value of new and greener opportunities. The
Speaker 1: Securities and Exchange Commission wants to address this by requiring
Speaker 1: better disclosure of climate related costs and risks. Its proposal
Speaker 1: is an excellent idea, requiring only minor adjustments. No doubt
Speaker 1: full financial recognition of climate change will be a challenge
Speaker 1: for corporate America creating new winners and losers, But the
Speaker 1: sooner the process gets started, the less disruptive it will be.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash
Speaker 1: opinion or ope I end go on the Bloomberg terminal.
Speaker 1: This has been Bloomberg opinion, and you can hear Bloomberg
Speaker 1: opinion editorial every weekday. At this time, terminal customers can
Speaker 1: read more at O P I n GO. Future is
Speaker 1: pointing to more losses as we head into the second half.
Speaker 1: Right now, SMP futures are down ten points, Staff futures
Speaker 1: down eighty three, Nasdaq futures are lower by thirty six points.
Speaker 1: In the tenure, Treasury yield right now two point nine
Speaker 1: eight percent Bloomberg eleven three oh, weather hot, maybe stormy
Speaker 1: later today low nineties, will be in the upper eighties tomorrow,
Speaker 1: low eighties Sunday. Sunshine finally returns for the fourth of July.
Speaker 1: How about that seventy three degrees right now? Markets headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Bloomberg Business at and at Bloomberg picktape,
Speaker 1: He's a Bloomberg Business flash and I'm fair at Moscow.
Speaker 1: Another bout of risk aversion rippling across global markets, sending
Speaker 1: US dot index futures lower and lifting ballons, and an
Speaker 1: ominous start to the second half of two The ten
Speaker 1: uere U S treasury yields sliding below three percent of
Speaker 1: the lowis in's early June, and we checked the markets
Speaker 1: every fifteen minutes throughout the trading day. On Bloomberg SMP
Speaker 1: future is now down about eight points, down features down
Speaker 1: to sixty seven and as dagg features down to thirty five.
Speaker 1: The decks in Germany is up half percent, the ten
Speaker 1: year treasury up six thirty seconds, yield two point nine
Speaker 1: eight percent, and the yield on the two year two
Speaker 1: point nine one percent. Nim X screwed oil is at
Speaker 1: one point eight percent of a dollar eighty eight at
Speaker 1: a hundred seven dollars sixty four cents of barrel comex
Speaker 1: gold down seven tenths percent or twelve dollars at seventeen
Speaker 1: thirty announced. The euro one point oh four six two
Speaker 1: against the dollar, British bound one point two zero eight too,
Speaker 1: and the ends at one thirty five point five to
Speaker 1: Bitcoin is up three point eight percent at nineteen thousand,
Speaker 1: four hundred fifty dollars. That's a Bloomberg business flash. Now
Speaker 1: here's Michael bar with more on what's going on around
Speaker 1: the world. Michael Karen, thank you very much. At least
Speaker 1: seven and teen people are dead after Ukrainian authorities say
Speaker 1: there was a Russian missile attack on residential buildings in
Speaker 1: a coastal town near the board city of Odessa. Two
Speaker 1: of the dead our children. President Biden is urging the
Speaker 1: US send it to change it's filibuster rules to respond
Speaker 1: to the landmark Supreme Court abortion rights ruling. In response,
Speaker 1: Senate Republican leader Mitch McConnell said the president's statement undermines
Speaker 1: justice and the rule of law. In baseball, the Yankees lost,
Speaker 1: along with the a's Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty seven hundred journalists and analyst more than a
Speaker 1: hundred twenty countries. I'm Michael Barr, and this is Bloomberg.
Speaker 1: Nathan Alright, Michael, thank you for coming up to five
Speaker 1: forty nine on Wall Street Live from the Bloomberg Interactive
Speaker 1: Broker Studios. This is Bloomberg Daybreak, and we want to
Speaker 1: turn to an important event overseas. Hong Kong is marking
Speaker 1: twenty five years since the handover of the former British
Speaker 1: colony back to Chinese rule. President Shi Jinping is promising
Speaker 1: a new era of order will bring a brighter future
Speaker 1: to a city that has been rocked in recent years
Speaker 1: by social unrest and of course the shocks from the pandemic.
Speaker 1: Joining his life from Hong Kong this morning is Bloomberg's
Speaker 1: von Mann with more on She's visit and the future
Speaker 1: of this global financial hub. Yvonne, good morning. It's pretty
Speaker 1: significant just for President she to be in town after
Speaker 1: spending the last nearly three years on the mainland. What
Speaker 1: more did he have to say about his vision for
Speaker 1: Hong Kong. Well, what strucks me the most nating was
Speaker 1: just the positivity that he was projecting in this speech.
Speaker 1: He was very optimistic and as them who tried to
Speaker 1: pivot the city away from what has been a political
Speaker 1: storm in the last few years. You've talked about the
Speaker 1: political descent that has essentially been frush now two years
Speaker 1: of the day that we have seen this natural security
Speaker 1: legislation be imposed. But he talked about moving from chaos
Speaker 1: to governance. Seemed to be kind of a sideswife on
Speaker 1: carry lamb THEFO much consecutive during her tumultuous term and
Speaker 1: what had just said thing that crackdown on the democracy movement,
Speaker 1: saying that after the storm, Hong Kong is reborn from
Speaker 1: the ashes. He focuses more now on prosperity, he says,
Speaker 1: the economy and that hopefully the Hong Kong can move
Speaker 1: away from what has been a very tumultuous time, and
Speaker 1: about this relationship between government and market should be better balanced.
Speaker 1: It seems like it was kind of a warning shot
Speaker 1: to some of the real estate tycoons here that sort
Speaker 1: of kind of have a very tight grip on the
Speaker 1: real estate market here. So certainly there was a lot
Speaker 1: of messages here, but in terms of policies and what
Speaker 1: this means to the future of Hong Kong has an
Speaker 1: international hub. I think most were pretty disappointed that we
Speaker 1: didn't get much on that front, and I wanted to
Speaker 1: ask whether the business community shares that optimism that President
Speaker 1: she is trying to project here. What's the feel among
Speaker 1: global business leaders who have headquarters in Hong Kong still
Speaker 1: about where things stand now with the imposition of this
Speaker 1: national security law. I think when we been speaking to
Speaker 1: a lot of foreign chambers here that seem to be
Speaker 1: cautiously optimistic that now that there is this new administration
Speaker 1: uh that perhaps this is designed for for Hong Kong
Speaker 1: can try to rebuild itself, and they've been try to
Speaker 1: rebuild its competitiveness as a Hong Kong by international pub
Speaker 1: I should say, but the key crucial things for the
Speaker 1: business community still remains not so much national security, but
Speaker 1: more about Hong Kong's COVID zero strategies. We've we've seen
Speaker 1: a lot of foot slopping during Carry Lamb's term. There
Speaker 1: is still no exit plan from the central government nor
Speaker 1: from John Lee's new government as well. And they say
Speaker 1: in order for the financial world to continue, for people
Speaker 1: to be traveling in and out and doing business here.
Speaker 1: That is still essential. So I think for the next
Speaker 1: five years, an Things said, it is critical that during
Speaker 1: this term that John Lee delivers and he talks about
Speaker 1: the uniqueness of Hong Kong and that you know Beijing
Speaker 1: does support that. So what that means when it comes
Speaker 1: to COVID zero strategy that I think it's still the
Speaker 1: main to to TBD at at this point, Nathan. But
Speaker 1: I think in terms of answers on that that is
Speaker 1: to the priority among the disappear. What more do we
Speaker 1: expect from the new Chief Executive of Hong Kong, John Lee.
Speaker 1: Are we expecting that he's going to be much change
Speaker 1: in terms of stance toward Beijing from carry lamb with
Speaker 1: I think was seen as pretty loyal to the Beijing government, right,
Speaker 1: m right. And if you take a look at John Lee,
Speaker 1: he has a career in law enforcements and in security.
Speaker 1: He was the one that oversaw the implementation of his
Speaker 1: National Security law, so there is also this sort of
Speaker 1: perception that national security will remain a top priority under
Speaker 1: his term. But when you hear from other foreign chambers
Speaker 1: saying that when they have met with John Lee, because
Speaker 1: he has no track record with finance, with the economy,
Speaker 1: with with social issues like how evenings for example, that
Speaker 1: perhaps he's more willing to listen. So what we heard
Speaker 1: was that he's a bit more pragmatics and willing to
Speaker 1: listen to the concerns from the foreign business community here.
Speaker 1: So perhaps that's why they still remained hopeful that there
Speaker 1: could be some changes along the way. But then again,
Speaker 1: you know, national security, that still remains something in the
Speaker 1: back burner for now. I think once we do hear
Speaker 1: more clarity on the COVID Heroal Fund, the issues of
Speaker 1: data security the like will start to re emerge again.
Speaker 1: Thanks for this, Von, good having you with us this morning.
Speaker 1: Yvon Man joining us live from Hong Kong on the
Speaker 1: anniversary of the handover from the UK. Karen, sorry, Nathan,
Speaker 1: thank you. It is five three on Wall Street, and
Speaker 1: now for a legal story we're watching this morning. On
Speaker 1: the last day of the term, the Supreme Court cleared
Speaker 1: the way for the Biden administration to end Trump's Remain
Speaker 1: in Mexico policy, which required asylum seekers to stay in
Speaker 1: Mexico while their cases are processed. The Court was divided
Speaker 1: five to four, as Chief Justice John Roberts and US dispread.
Speaker 1: Kavanaugh joined with the three liberal justices and the majority
Speaker 1: for more in the decision. Bloomberg's June Grass So speak
Speaker 1: to Lee on Fresco, a partner at Holland and Night
Speaker 1: and former ahead of the Office of Immigration Litigation at
Speaker 1: the Justice Department. How much of a victory is this
Speaker 1: for the Biden administration. Well, it's an interesting victory in
Speaker 1: the sense that it's a victory that comes with strings
Speaker 1: attached to it. And here's what I mean. So, the
Speaker 1: Biden administration, first of all, gets a nent victory on
Speaker 1: being able to end the remain in Mexico migration Protection
Speaker 1: protocol program because the order of the lower Court enjoining
Speaker 1: the ending of that program is now vacated. So that
Speaker 1: now means that unless the lower Court is willing to
Speaker 1: re enter that order under different circumstances that we can
Speaker 1: discuss in a second, at the moment, the Biden administration
Speaker 1: can end the migrant protection protocols. The reason why I
Speaker 1: a it's a victory with strings attached is number one,
Speaker 1: there may be litigation that changes other things about this
Speaker 1: program that might hurt the immigrants rights community and the
Speaker 1: Biden administration But secondly, now there will be a lot
Speaker 1: of pressure on the Biden administration to expedite the appeal
Speaker 1: to end Title forty two, which is something they may
Speaker 1: not want to do, which, as you may recall, is
Speaker 1: the authority being used to exclude people from entering across
Speaker 1: the southern border because of COVID, where right now the
Speaker 1: numbers are pretty high on terms of people trying to
Speaker 1: enter the southern border. And even of my Chief Justice
Speaker 1: John Roberts, how did he come to the conclusion that
Speaker 1: the Biden administration didn't have to keep the remaining Mexico
Speaker 1: program ongoing. The issue is that the statute says very
Speaker 1: clearly uses the word may, meaning that if you cannot
Speaker 1: detain someone who you encounter at the southern border, you
Speaker 1: may then play east them in this remain in Mexico
Speaker 1: program and move them into Mexico awaiting asylum hearing. It
Speaker 1: doesn't say shall, it doesn't say if there's not the
Speaker 1: tension space, you have to use this remain in Mexico program.
Speaker 1: And so what Justice Robert says in his decision is
Speaker 1: because it says me, you can't read a shill into this.
Speaker 1: There's no way to read that there's a requirement that
Speaker 1: if there's not detention space, you have to do this.
Speaker 1: And as Leon Fresco, a partner at Holland and Knights,
Speaker 1: speaking with Bloomberg stun Grosso. Catch more of that interview,
Speaker 1: plus analysis of the latest legal news, by subscribing to
Speaker 1: the Bloomberg Law Podcast or downloading the show at Bloomberg
Speaker 1: dot com slash podcast. Attorneys can find exceptional legal research
Speaker 1: and business development tools at Bloomberg Law dot com and
Speaker 1: on the Bloomberg terminal at V law. Go and futures
Speaker 1: this morning, while they have been trimming in their declines,
Speaker 1: here s and P futures are now that will change
Speaker 1: now if chears down thirty three and NASDAGG futures are
Speaker 1: down nine. The decks in Germany is up half percent
Speaker 1: and the ten year treasury up eight thirty seconds. They
Speaker 1: yield two point nine eight percent. They yield on the
Speaker 1: two year two point nine one percent. Nine meg screwed
Speaker 1: oil is on the rise, up about two percent now
Speaker 1: up two dollars eleven cents at a hundred seven dollars
Speaker 1: eighty seven cents of barrel, and Comex's gold is down
Speaker 1: seven tenths percent at SEV ten an ounce sets down
Speaker 1: more than twelve dollars the euro one point oh four
Speaker 1: or five nine against the dollar. They end at one
Speaker 1: thirty five point six four and still ahead. On Bloomberg
Speaker 1: day Break, we have a check on the business headlines
Speaker 1: and all the news you need to start your day.
Speaker 1: And this is Bloomberg