1 00:00:02,720 --> 00:00:06,080 Speaker 1: Live from the Bloomberg and directed Burger Studios. Is Bloomberg 2 00:00:06,160 --> 00:00:10,800 Speaker 1: Daybreak for Friday, July two. Coming up the shower. China's 3 00:00:10,840 --> 00:00:13,720 Speaker 1: economy grows at the slowest pace since the onset of 4 00:00:13,760 --> 00:00:16,720 Speaker 1: COVID bank Ernies continue with City Group and while Spargo 5 00:00:16,800 --> 00:00:20,079 Speaker 1: reporting key economic data. This morning is the debate over 6 00:00:20,160 --> 00:00:24,360 Speaker 1: fed policy continues, and President Biden's Nitaly's trip takes center 7 00:00:24,440 --> 00:00:27,960 Speaker 1: stage in Saudi Arabia. New York City Council approves abortion 8 00:00:28,080 --> 00:00:31,400 Speaker 1: rights measures. Plus Governor Hawkel allows millions of dollars to 9 00:00:31,400 --> 00:00:34,760 Speaker 1: fight gun violence. On Michael bar More Ahead, I'm John 10 00:00:34,800 --> 00:00:37,800 Speaker 1: Stash and sports easy win for the Mets, extra any 11 00:00:37,880 --> 00:00:39,959 Speaker 1: loss for the Yankees, and they're playing the second round 12 00:00:39,960 --> 00:00:45,560 Speaker 1: of the Open Championship in Scotland. That's all trained ahead 13 00:00:45,640 --> 00:00:49,200 Speaker 1: on Bloomberg Daybreak on Bloomberg eleven, Free on New York, 14 00:00:49,400 --> 00:00:54,040 Speaker 1: Bloomberg N one, Washington, d C, Bloomberg one oh six one, Boston, 15 00:00:54,360 --> 00:00:58,520 Speaker 1: Bloomberg nine sixties and Francisco Sirius x M one nine 16 00:00:58,520 --> 00:01:01,800 Speaker 1: team and around the world on Bloomberg Radio dot com 17 00:01:01,880 --> 00:01:08,959 Speaker 1: and via the Bloomberg Business App. Good morning, I'm Nathan Hagar, 18 00:01:09,280 --> 00:01:12,280 Speaker 1: and I'm Karen, Moscow and US DOT Index futures are 19 00:01:12,440 --> 00:01:14,800 Speaker 1: rising this morning. We are coming up to five o 20 00:01:14,880 --> 00:01:16,680 Speaker 1: one on Wall Street, and we check the markets every 21 00:01:16,680 --> 00:01:20,399 Speaker 1: fifteen minutes throughout the trading day. On Bloomberg, SNP future 22 00:01:20,440 --> 00:01:22,920 Speaker 1: is up about ten points down, futures up sixty eight, 23 00:01:22,920 --> 00:01:26,200 Speaker 1: and nasday futures up thirties six. The decks in Germany's 24 00:01:26,280 --> 00:01:29,479 Speaker 1: up one point seven percent. Ten year treasury up ten 25 00:01:29,560 --> 00:01:32,399 Speaker 1: thirty seconds, held two point nine two percent. They yield 26 00:01:32,400 --> 00:01:35,360 Speaker 1: on the two year three point one zero percent. Nine 27 00:01:35,520 --> 00:01:37,360 Speaker 1: X screwed oil is up a quarter per cent, or 28 00:01:37,360 --> 00:01:40,400 Speaker 1: twenty four cents at ninety six dollars two cents a barrel, 29 00:01:40,640 --> 00:01:43,759 Speaker 1: and the euro one point zero zero three zero against 30 00:01:43,800 --> 00:01:46,760 Speaker 1: the dollar. Nathan Karen, we begin this morning with economic 31 00:01:46,840 --> 00:01:50,480 Speaker 1: news across the globe. Our first stop is Asia, where 32 00:01:50,600 --> 00:01:54,640 Speaker 1: data show China's economic growth slowed sharply in the second quarter. 33 00:01:54,880 --> 00:01:57,920 Speaker 1: Let's begin our team coverage with Bloomberg Daybreak Asia anchor 34 00:01:57,960 --> 00:02:01,160 Speaker 1: Brian Curtis in Hong Kong. It's the slowest pace since 35 00:02:01,200 --> 00:02:05,520 Speaker 1: the pandemic began back in the economy actually contracted two 36 00:02:05,520 --> 00:02:08,760 Speaker 1: point six percent quarter on quarter. It shows the price 37 00:02:08,840 --> 00:02:13,080 Speaker 1: of China's dynamic zero COVID policies, but trends are improving. 38 00:02:13,360 --> 00:02:16,600 Speaker 1: Retail sales recovered somewhat in June, gaining three point one 39 00:02:16,680 --> 00:02:20,280 Speaker 1: percent year on year, industrial production of three point nine percent, 40 00:02:20,400 --> 00:02:23,840 Speaker 1: mostly in line, and fixed asset investment jumping six point 41 00:02:23,880 --> 00:02:27,280 Speaker 1: one percent. That said, property prices fell for a tenth 42 00:02:27,280 --> 00:02:30,920 Speaker 1: consecutive month, slipping zero point one percent from May in 43 00:02:30,960 --> 00:02:33,680 Speaker 1: Hong Kong, Brand Curtis Bloomberg Day Break A right, Brian, 44 00:02:33,680 --> 00:02:36,160 Speaker 1: thank you well. In Europe today, our focus is political 45 00:02:36,200 --> 00:02:39,760 Speaker 1: turmoil in Italy. Prime Minister Mario drags offer to resign 46 00:02:39,880 --> 00:02:43,120 Speaker 1: has been rejected by the country's president. That leaves the 47 00:02:43,120 --> 00:02:45,840 Speaker 1: door open for a solution that would have Draggy leading 48 00:02:45,840 --> 00:02:49,440 Speaker 1: the government until elections next year begin More from Bloomberg 49 00:02:49,480 --> 00:02:52,880 Speaker 1: Euro Area economist David Powell. The drama is probably going 50 00:02:52,919 --> 00:02:54,880 Speaker 1: to be prolonged in the sense that even if we 51 00:02:54,960 --> 00:02:59,840 Speaker 1: get beyond next week and is able to uh command 52 00:03:00,000 --> 00:03:03,360 Speaker 1: to quit support in parliament, Italians have to go to 53 00:03:03,400 --> 00:03:06,920 Speaker 1: the polls again before next June, and drug has already 54 00:03:06,960 --> 00:03:10,080 Speaker 1: said he won't stand um. So this isn't going to 55 00:03:10,120 --> 00:03:11,960 Speaker 1: be going away. Even if there is a kind of 56 00:03:12,240 --> 00:03:15,480 Speaker 1: short term fix something we're gonna have to be watching 57 00:03:15,520 --> 00:03:18,320 Speaker 1: for quite a while. Plumbers David Powell says the chaos 58 00:03:18,480 --> 00:03:21,440 Speaker 1: was triggered when the Five Star Movement, the second largest party, 59 00:03:21,480 --> 00:03:24,400 Speaker 1: and Druggish Alliance boycott it a confidence vote in the 60 00:03:24,400 --> 00:03:26,919 Speaker 1: Italian Senate. Well back here in the US care and 61 00:03:26,960 --> 00:03:29,520 Speaker 1: the debate continues on whether the FED will high rates 62 00:03:29,520 --> 00:03:33,040 Speaker 1: by seventy five basis points or one percent later this month. 63 00:03:33,240 --> 00:03:36,080 Speaker 1: FED Governor Christopher Waller addressed the issue at an event 64 00:03:36,200 --> 00:03:39,960 Speaker 1: yesterday in Idaho. I fully support another seventy five basis 65 00:03:39,960 --> 00:03:44,840 Speaker 1: for an increase. However, my base case for July depends 66 00:03:44,920 --> 00:03:50,440 Speaker 1: on incoming data. We have important data releases on retail sales, 67 00:03:51,120 --> 00:03:56,320 Speaker 1: housing inflation expectations coming in before the next meet. FED 68 00:03:56,360 --> 00:03:59,280 Speaker 1: Governor Waller says economic ratings will be key, and there's 69 00:03:59,320 --> 00:04:01,320 Speaker 1: more on the way today. The FED will be looking 70 00:04:01,360 --> 00:04:04,360 Speaker 1: at two ratings in particular when it comes to setting policy, 71 00:04:04,640 --> 00:04:07,440 Speaker 1: at least as a case for Cleveland FED President Lorettamester. 72 00:04:07,920 --> 00:04:10,080 Speaker 1: There's more data coming out than I'm going to be 73 00:04:10,200 --> 00:04:12,800 Speaker 1: very attuned to. We have retail sales coming out and 74 00:04:12,920 --> 00:04:16,760 Speaker 1: we have a very important University of Michigan report and 75 00:04:16,800 --> 00:04:21,600 Speaker 1: of course that's important because it has placed Expectations measure UM, 76 00:04:21,640 --> 00:04:25,239 Speaker 1: a consumer measure in there. And Cleveland Fed Presidentmester speaking 77 00:04:25,240 --> 00:04:27,880 Speaker 1: with the Bloomberg We get the retail sales figure today 78 00:04:27,920 --> 00:04:30,760 Speaker 1: at eight thirty am Well Street Time, followed by University 79 00:04:30,760 --> 00:04:33,440 Speaker 1: of Michigan Sentiment at ten oh. Let's turn from the 80 00:04:33,480 --> 00:04:36,240 Speaker 1: economy and out of corporate earnings, Karen, because banks are 81 00:04:36,240 --> 00:04:39,960 Speaker 1: front and center once again after yesterday's disappointing results from JP, 82 00:04:40,080 --> 00:04:43,599 Speaker 1: Morgan Chase and Morgan Stanley. Bloomberg's Jeff Bellinger has more. 83 00:04:44,040 --> 00:04:46,479 Speaker 1: The results from City Group and Wells Fargo will be 84 00:04:46,520 --> 00:04:50,159 Speaker 1: the highlights this morning. Bloomberg Intelligence a City Group likely 85 00:04:50,240 --> 00:04:53,280 Speaker 1: benefited from fixed income trading strength, but a slide in 86 00:04:53,400 --> 00:04:56,800 Speaker 1: banking fees may have offset the gains. Consumers were still 87 00:04:56,880 --> 00:05:00,440 Speaker 1: generally healthy, and that should have helped city's credit card business. 88 00:05:00,680 --> 00:05:03,359 Speaker 1: Wells Fargo is still dealing with the fallout of the 89 00:05:03,400 --> 00:05:06,159 Speaker 1: saga that started in twenty sixteen. When the bank was 90 00:05:06,200 --> 00:05:09,160 Speaker 1: fine for its sales practices. B I s, as well 91 00:05:09,160 --> 00:05:12,440 Speaker 1: as Fargo's profit and returns, could move higher. The feds 92 00:05:12,480 --> 00:05:15,960 Speaker 1: constraint on its balance sheet remains a key hurdle. Jeff 93 00:05:16,000 --> 00:05:19,359 Speaker 1: Bullinger Bloomberg Day Break, Right, Jeff, thank you. Meantime, banks 94 00:05:19,360 --> 00:05:22,160 Speaker 1: are on the hook for a big bill from the government. 95 00:05:22,200 --> 00:05:25,000 Speaker 1: Financial regulators are poised to extract a total of about 96 00:05:25,040 --> 00:05:27,800 Speaker 1: one billion dollars in fines from the five biggest US 97 00:05:27,839 --> 00:05:31,520 Speaker 1: investment banks. Have the story from Bloomberg's Doug Christener, it's 98 00:05:31,560 --> 00:05:34,880 Speaker 1: the price for failing to monitor employee use of unauthorized 99 00:05:34,920 --> 00:05:39,480 Speaker 1: messaging apps for communications involving bank business. In its earnings report, 100 00:05:39,520 --> 00:05:42,120 Speaker 1: Morgan Stanley said it expects to pay a two hundred 101 00:05:42,120 --> 00:05:45,920 Speaker 1: million dollar fine that's identical to what JP Morgan Chase paid, 102 00:05:46,160 --> 00:05:48,360 Speaker 1: and it appears to be the figure being used as 103 00:05:48,360 --> 00:05:51,279 Speaker 1: a benchmark. We are told City Group, Goldman Sachs, and 104 00:05:51,320 --> 00:05:54,560 Speaker 1: Bank of America are all in advanced talks with regulators 105 00:05:54,680 --> 00:05:57,839 Speaker 1: and each may pay a similar amount. These discussions have 106 00:05:57,920 --> 00:06:00,920 Speaker 1: not yet been concluded in the penalties could still change. 107 00:06:01,240 --> 00:06:03,920 Speaker 1: In New York On Christener Bloomberg Gay Break, Doug, Thanks, 108 00:06:04,000 --> 00:06:06,880 Speaker 1: Let's turn to politics now, where foreign relations are in focus. 109 00:06:06,920 --> 00:06:08,920 Speaker 1: It's an important day on President Biden's trip to the 110 00:06:08,960 --> 00:06:11,680 Speaker 1: Middle East as he makes his way to Saudi Arabia Tonight, 111 00:06:11,839 --> 00:06:14,160 Speaker 1: Bloomberg's and Marie Hordern is there and brings us the 112 00:06:14,240 --> 00:06:17,520 Speaker 1: latest from Jedda. President Biden will be meeting with Palestinian 113 00:06:17,560 --> 00:06:21,040 Speaker 1: Authority mood of Boss today before he had over to 114 00:06:21,360 --> 00:06:24,360 Speaker 1: Saudi Arabia. This is really going to be the pivotal 115 00:06:24,360 --> 00:06:27,719 Speaker 1: moment of the trip and a controversial one, especially for 116 00:06:27,800 --> 00:06:30,880 Speaker 1: many within the Democratic Party. President Biden is trying to 117 00:06:30,920 --> 00:06:34,159 Speaker 1: bring the price of gasoline down and need the Kingdom's 118 00:06:34,160 --> 00:06:37,640 Speaker 1: help to get more barrels on the market. But of 119 00:06:37,680 --> 00:06:41,039 Speaker 1: course when he was campaigning, he had vowed to make 120 00:06:41,120 --> 00:06:44,080 Speaker 1: the Kingdom of Briah his administrations, that he would only 121 00:06:44,120 --> 00:06:46,320 Speaker 1: deal directly with the king, and now we know he'll 122 00:06:46,360 --> 00:06:48,440 Speaker 1: be meeting this evening with clown Frience. Mom had been 123 00:06:48,480 --> 00:06:52,680 Speaker 1: Sammon in Jedda, Saudi Arabia and Marie Hordern Boomberg, Gay 124 00:06:52,680 --> 00:06:56,640 Speaker 1: break and Marie thank you. Meantime, back in Washington, Senator 125 00:06:56,720 --> 00:06:59,760 Speaker 1: Joe Mansion's delivered a huge blow the President Biden's economic 126 00:06:59,760 --> 00:07:02,359 Speaker 1: a j and the Democrat told party leaders he would 127 00:07:02,360 --> 00:07:05,839 Speaker 1: not support new spending on climate measures or tax increases. 128 00:07:06,080 --> 00:07:09,640 Speaker 1: Mansion says he will back proposals on healthcare and drug prices. 129 00:07:10,000 --> 00:07:12,600 Speaker 1: SMP futures right now up twelve point, Staff futures up 130 00:07:12,680 --> 00:07:15,640 Speaker 1: ninety three, nastack futures up forty three points. Straight ahead 131 00:07:15,640 --> 00:07:18,040 Speaker 1: your latest local headlines in the check of sports. This 132 00:07:18,440 --> 00:07:24,920 Speaker 1: is Bloomberg five oh seven on Wall Street, seventy four 133 00:07:24,960 --> 00:07:27,560 Speaker 1: degrees in Central Park on an accident on the westbound 134 00:07:27,640 --> 00:07:29,880 Speaker 1: l I E at the Grand Central Parkway. Details coming 135 00:07:29,920 --> 00:07:32,520 Speaker 1: up in traffic. First Michael Barr with war on what's 136 00:07:32,560 --> 00:07:34,720 Speaker 1: going on in New York and around the world. Good morning, Michael, 137 00:07:34,800 --> 00:07:37,400 Speaker 1: Good morning Nathan. The New York City Council has taken 138 00:07:37,440 --> 00:07:41,400 Speaker 1: steps to expand abortion and reproductive care rights. The Council 139 00:07:41,480 --> 00:07:45,400 Speaker 1: passed the package bills, including providing free abortion pills at clinics. 140 00:07:45,800 --> 00:07:48,720 Speaker 1: The New York City Abortion Rights Act also allows people 141 00:07:48,760 --> 00:07:52,120 Speaker 1: seeking abortions from out of state to safely do so. 142 00:07:52,760 --> 00:07:56,160 Speaker 1: New York Governor Kathy Hokel talked about shootings during an 143 00:07:56,160 --> 00:07:59,560 Speaker 1: event in Brooklyn. HOCl announced a new budget allowance of 144 00:07:59,560 --> 00:08:02,360 Speaker 1: over twe million dollars to fight gun violence in the state. 145 00:08:02,760 --> 00:08:05,920 Speaker 1: HOCAL says it would invest in several things, including community 146 00:08:05,960 --> 00:08:11,320 Speaker 1: outreach programs and crime labs investigating shooting statewide. We will 147 00:08:11,320 --> 00:08:14,480 Speaker 1: continue devoting everything we have at our disposal to stop 148 00:08:14,480 --> 00:08:18,640 Speaker 1: this crisis because we are seeing a difference. The governor's 149 00:08:18,680 --> 00:08:21,760 Speaker 1: announcement comes one month after Hocal signed a new gun 150 00:08:21,840 --> 00:08:26,280 Speaker 1: safety bill that banned carrying any firearms into sensitive places, 151 00:08:26,320 --> 00:08:31,000 Speaker 1: including schools and mass transit stations. The Buffalo supermarket that 152 00:08:31,080 --> 00:08:33,480 Speaker 1: was the scene of a deadly mass shooting reopens today. 153 00:08:33,880 --> 00:08:37,280 Speaker 1: There was some debate about possibly shuttering the Top supermarket, 154 00:08:37,559 --> 00:08:39,840 Speaker 1: but this man who lives in the community says he's 155 00:08:39,920 --> 00:08:43,240 Speaker 1: glad that it is reopening because it's the only grocery 156 00:08:43,280 --> 00:08:46,840 Speaker 1: store the community has. We was excited about getting it in. 157 00:08:46,920 --> 00:08:50,280 Speaker 1: Now um have that just taken away from us will 158 00:08:50,360 --> 00:08:54,319 Speaker 1: be more devastations and you know than what we've already 159 00:08:54,360 --> 00:08:58,120 Speaker 1: been through. Yesterday, a federal grand jury and Buffalo returned 160 00:08:58,160 --> 00:09:01,960 Speaker 1: to twenty seven count indictment charge Peyton Gendron with hate 161 00:09:01,960 --> 00:09:06,520 Speaker 1: crimes the suspected shooter. Concern is growing about monkey poks 162 00:09:06,600 --> 00:09:10,440 Speaker 1: in some health experts. About four cases have been identified 163 00:09:10,640 --> 00:09:13,880 Speaker 1: in New York City. This week, the CDC announced several 164 00:09:13,880 --> 00:09:17,640 Speaker 1: efforts to increase access to testing. White House Chief Medical 165 00:09:17,679 --> 00:09:22,120 Speaker 1: Advisor Dr Anthony Founci told ABC the disease is easily treated, 166 00:09:22,160 --> 00:09:25,240 Speaker 1: but should not be ignored. There are vaccines that are 167 00:09:25,240 --> 00:09:30,400 Speaker 1: available to prevent and respond to monkey parks. There are 168 00:09:30,440 --> 00:09:33,959 Speaker 1: anti virals that are available, so we're not in the 169 00:09:34,080 --> 00:09:37,439 Speaker 1: dark about this, although we really must take it seriously. 170 00:09:38,240 --> 00:09:41,640 Speaker 1: Dr Fauci will be on Bloomberg later today at noon. 171 00:09:42,120 --> 00:09:44,760 Speaker 1: Ivana Trump, the first wife of Donald Trump, has died 172 00:09:44,800 --> 00:09:47,760 Speaker 1: in New York City. The police are investigating whether Ms 173 00:09:47,760 --> 00:09:50,480 Speaker 1: Trump fell down the stairs at our Manhattan town house 174 00:09:50,520 --> 00:09:53,560 Speaker 1: on the Upper East Side. Ivana Trump was seventy three 175 00:09:54,040 --> 00:09:56,400 Speaker 1: Global News twenty four hours a day on air and 176 00:09:56,520 --> 00:09:59,720 Speaker 1: on Bloomberg Quick Take, powered by more than twenty dred 177 00:09:59,760 --> 00:10:02,840 Speaker 1: journal list and analyist more than twenty countries. Michael Barne, 178 00:10:02,880 --> 00:10:10,040 Speaker 1: this is Bloomberg, Nathan. Thank you, Michael. Coming up to 179 00:10:10,120 --> 00:10:12,400 Speaker 1: five ten on Wall Street time for the Bloomberg Sports Update. 180 00:10:12,440 --> 00:10:15,080 Speaker 1: Good morning, John Stash, Our morning, Nathan. Second Night in 181 00:10:15,080 --> 00:10:17,280 Speaker 1: the Row or the Yankees and Red's played a game. 182 00:10:17,320 --> 00:10:19,960 Speaker 1: They went ten innings and finished seven six. Last night 183 00:10:20,000 --> 00:10:22,800 Speaker 1: was won one. In the eighth inning, Cincinnati scored three 184 00:10:22,880 --> 00:10:26,079 Speaker 1: off Jonathan low Issaca Yanks tie the game on Eighthenny 185 00:10:26,120 --> 00:10:28,439 Speaker 1: home runs by Aaron Judge and Labor Torres. Reds then 186 00:10:28,480 --> 00:10:31,000 Speaker 1: with three in the tenth off Lucas Littkey and the 187 00:10:31,080 --> 00:10:33,840 Speaker 1: Yanks got two back. Matt Carpenter is eleventh oh run 188 00:10:34,240 --> 00:10:36,360 Speaker 1: in just his sixty eight That fat for the reds 189 00:10:36,360 --> 00:10:38,440 Speaker 1: held on won the series. Yanks have lost four the 190 00:10:38,520 --> 00:10:41,240 Speaker 1: last five. They host the Red Sox tonight. The Socks 191 00:10:41,320 --> 00:10:44,160 Speaker 1: just got swept four straight at Tampa Bay at regularly 192 00:10:44,160 --> 00:10:46,199 Speaker 1: easy win for the Mats eight nothing over the Cubs 193 00:10:46,200 --> 00:10:49,640 Speaker 1: Carlos Carrasco and Trevor Williams. The combined shutout home runs 194 00:10:49,640 --> 00:10:52,840 Speaker 1: for Brandon Nemo and Pete Alonso. Cameron Young is a 195 00:10:52,880 --> 00:10:55,880 Speaker 1: twenty five year old golfer from Westchester. His father is 196 00:10:55,920 --> 00:10:58,160 Speaker 1: the pro at the Sleepy Hollow Club. Young's first of 197 00:10:58,280 --> 00:11:00,959 Speaker 1: a round at an Open Championship was an eight under 198 00:11:00,960 --> 00:11:05,160 Speaker 1: sixty four. At anytime you set foot on that first 199 00:11:05,160 --> 00:11:08,880 Speaker 1: teen year eighteenth greener anywhere, especially on that kind of 200 00:11:08,920 --> 00:11:13,439 Speaker 1: part of the course, UM, there's just no hiding how 201 00:11:13,440 --> 00:11:18,800 Speaker 1: special of the place it is. Um. And it's certainly 202 00:11:18,840 --> 00:11:21,719 Speaker 1: been a goal to get to an Open Championship. Pen 203 00:11:21,880 --> 00:11:25,120 Speaker 1: for my first one to be here, um, it's a 204 00:11:25,160 --> 00:11:29,120 Speaker 1: little bit extra special for me. Lead and today's second around, 205 00:11:29,160 --> 00:11:32,480 Speaker 1: Tiger was on the course now brutal seventy eight yesterday, 206 00:11:32,480 --> 00:11:35,600 Speaker 1: only seven golfers at a higher score. The Utah Jazza 207 00:11:35,760 --> 00:11:38,760 Speaker 1: All Star guard Donovan Mitchell is available in a trade 208 00:11:38,760 --> 00:11:41,960 Speaker 1: that Knicks are interested, but reportedly the Jazz wanted and 209 00:11:42,000 --> 00:11:45,520 Speaker 1: returned four players and six first round draft picks, and 210 00:11:45,640 --> 00:11:49,720 Speaker 1: the Knicks signal John Stashar Bloomberg Sports Okay, John, Thanks. 211 00:11:49,760 --> 00:11:52,320 Speaker 1: Right now, SMP Future is up fourteen points down, Futures 212 00:11:52,360 --> 00:11:56,200 Speaker 1: up a nastac features up forty eight points now. The 213 00:11:56,240 --> 00:11:59,000 Speaker 1: tenure Treasury is up seven thirty seconds yield two point 214 00:11:59,080 --> 00:12:02,599 Speaker 1: nine down. The two year three point one one. This 215 00:12:03,440 --> 00:12:09,240 Speaker 1: is Bloomberg Bloomberg eleven three oh weather. Sunshine in a 216 00:12:09,320 --> 00:12:12,760 Speaker 1: high near eighty five today and tomorrow. Could see some 217 00:12:12,840 --> 00:12:15,679 Speaker 1: late afternoon showers and storms by Sunday, with higher ninety 218 00:12:15,760 --> 00:12:22,440 Speaker 1: by then. Right now seventy four degrees in Central Park. Markets, 219 00:12:22,520 --> 00:12:25,600 Speaker 1: headlines and breaking news twenty four hours a day at 220 00:12:25,640 --> 00:12:29,040 Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg 221 00:12:29,120 --> 00:12:39,040 Speaker 1: Quick Tape is a Bloomberg Business Flash, and I'm Karen Moscow. 222 00:12:39,240 --> 00:12:42,120 Speaker 1: Stocks in Europe are gaining. US stock Index Future is 223 00:12:42,200 --> 00:12:44,640 Speaker 1: edging higher, and bonds advancing at the end of a 224 00:12:44,679 --> 00:12:47,280 Speaker 1: week in which markets have been whipp sawed by shifting 225 00:12:47,320 --> 00:12:51,280 Speaker 1: expectations for monetary tightening by the Federal Reserve and worries 226 00:12:51,320 --> 00:12:54,080 Speaker 1: over global economic growth. We check the markets every fifteen 227 00:12:54,080 --> 00:12:56,599 Speaker 1: minutes throughout the trading day on Bloomberg U S and 228 00:12:56,640 --> 00:12:59,360 Speaker 1: P futures up about twelve points down futures of eighty 229 00:12:59,400 --> 00:13:02,560 Speaker 1: eight Nasty futures have thirty eight the decks in Germany's 230 00:13:02,559 --> 00:13:05,640 Speaker 1: at one point seven percent. Ten year treasury have eight 231 00:13:05,640 --> 00:13:08,240 Speaker 1: thirty seconds held two point nine two percent. The yield 232 00:13:08,240 --> 00:13:11,240 Speaker 1: on the two year three point one zero percent NIMEX 233 00:13:11,280 --> 00:13:13,360 Speaker 1: screwed oil is a three tens per cent or twenty 234 00:13:13,440 --> 00:13:15,880 Speaker 1: nine cents and ninety six dollars seven cents a barrel 235 00:13:16,160 --> 00:13:18,120 Speaker 1: call max school down to tens per cent or three 236 00:13:18,160 --> 00:13:21,240 Speaker 1: dollars ten cents at seventeen o two seventy announce the 237 00:13:21,320 --> 00:13:24,200 Speaker 1: euro one point zero zero three nine against the dollar 238 00:13:24,280 --> 00:13:26,800 Speaker 1: British pound one point one eight four three and the 239 00:13:26,960 --> 00:13:29,280 Speaker 1: end at one thirty eight point seven six. Looking at 240 00:13:29,320 --> 00:13:32,200 Speaker 1: Bitcoin this morning, I've wanted a third percent is at 241 00:13:32,200 --> 00:13:35,439 Speaker 1: twenty thousand, nine hundred forty six dollars. That's a Bloomberg 242 00:13:35,440 --> 00:13:37,960 Speaker 1: business flash now here's Michael Barr with more on what's 243 00:13:38,000 --> 00:13:40,920 Speaker 1: going on around the world. Michael, good morning, Good morning, Karen. 244 00:13:41,000 --> 00:13:44,400 Speaker 1: President Joe Biden will announce three hundred sixteen million dollars 245 00:13:44,400 --> 00:13:47,880 Speaker 1: in USA for the Palestinians today as he seeks to 246 00:13:47,880 --> 00:13:52,240 Speaker 1: revive US ties with the Palestinian authority. Hospital visit and 247 00:13:52,320 --> 00:13:55,679 Speaker 1: a meeting with the authorities President mak Mudabas. Biden will 248 00:13:55,760 --> 00:14:00,079 Speaker 1: later travel to Saudi Arabia. Ukrainian officials say rush and 249 00:14:00,200 --> 00:14:03,320 Speaker 1: missiles that struck a city in central Ukraine killed at 250 00:14:03,360 --> 00:14:05,680 Speaker 1: least twenty three people and wounded more than a hundred others, 251 00:14:05,720 --> 00:14:09,800 Speaker 1: including children. Dozens are missing. In baseball, the Yankees lost 252 00:14:09,840 --> 00:14:12,200 Speaker 1: to the Royals, the Mets beat the Cubs. The Red 253 00:14:12,240 --> 00:14:15,360 Speaker 1: Sox lost to the Raise, the Nationals lost to the Braves, 254 00:14:15,400 --> 00:14:18,439 Speaker 1: the Giants lost to the Brewers. Global News twenty four 255 00:14:18,480 --> 00:14:20,880 Speaker 1: hours a day on air and on Bloomberg Quick Take, 256 00:14:21,120 --> 00:14:24,280 Speaker 1: powered by more than seven hundred journalists analyst more than 257 00:14:24,760 --> 00:14:28,600 Speaker 1: twenty countries. Michael Barr and this is Bloomberg. Nathan. All right, Michael, 258 00:14:28,640 --> 00:14:31,080 Speaker 1: thank you. It is five nineteen on Wall Street Live 259 00:14:31,120 --> 00:14:34,840 Speaker 1: from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak 260 00:14:34,880 --> 00:14:37,880 Speaker 1: with a lot of economic and political news for investors 261 00:14:37,920 --> 00:14:40,360 Speaker 1: to digest on this Friday morning. So let's bring in 262 00:14:40,400 --> 00:14:43,800 Speaker 1: Simon French to talk more about it all. Chief economists 263 00:14:43,840 --> 00:14:46,400 Speaker 1: at PAM your Gordon, Simon, It's great to speak with you. 264 00:14:46,480 --> 00:14:49,440 Speaker 1: Let's start off with the latest economic data we got 265 00:14:49,440 --> 00:14:52,920 Speaker 1: out of China showing a pretty big slow down in growth, 266 00:14:52,960 --> 00:14:56,880 Speaker 1: in fact, the slowest since the pandemic began. Is this 267 00:14:57,000 --> 00:15:00,680 Speaker 1: much of a surprise given all the lockdowns the China 268 00:15:00,720 --> 00:15:04,040 Speaker 1: has been imposing on its citizens over the last several months. 269 00:15:05,240 --> 00:15:09,600 Speaker 1: Good morning, Nathan, Yes, it was a it's surprise markets 270 00:15:09,640 --> 00:15:14,120 Speaker 1: the scale of the slowdown. So two point six percent 271 00:15:14,280 --> 00:15:18,000 Speaker 1: quarterly contraction in Q two take the annual rate down 272 00:15:18,040 --> 00:15:20,800 Speaker 1: to almost EREI. It's more point four percent year on year. Now, 273 00:15:21,360 --> 00:15:24,840 Speaker 1: the if you like, the bright spot for the global 274 00:15:24,880 --> 00:15:27,960 Speaker 1: economy is not is the fact that this is mainly 275 00:15:28,000 --> 00:15:32,320 Speaker 1: domestic activity because of social distancing associated with the ongoing 276 00:15:32,440 --> 00:15:36,040 Speaker 1: zero COVID policy. And actually there are, if you like, 277 00:15:36,160 --> 00:15:40,720 Speaker 1: encouraging signs on the industrial output side, which was pretty 278 00:15:40,760 --> 00:15:44,280 Speaker 1: steady it around just under four percent year on year. 279 00:15:44,760 --> 00:15:48,560 Speaker 1: That the pass through to global trade volumes is going 280 00:15:48,600 --> 00:15:51,560 Speaker 1: to be less affected than some of the consumer service 281 00:15:51,600 --> 00:15:54,320 Speaker 1: as side on the Chinese economy, so you don't see 282 00:15:54,360 --> 00:15:56,360 Speaker 1: as much of a risk of spillover, perhaps as the 283 00:15:56,400 --> 00:16:00,320 Speaker 1: markets might give in all those lockdowns and supply chain 284 00:16:00,480 --> 00:16:04,680 Speaker 1: issues that have been associated with those lockdowns in China. Um. 285 00:16:04,840 --> 00:16:07,400 Speaker 1: I think it's a very different set of circumstances to 286 00:16:07,800 --> 00:16:12,200 Speaker 1: previous lockdowns, because, of course the global economy had huge 287 00:16:12,280 --> 00:16:16,880 Speaker 1: demand because of its synchronous lockdowns and pivot towards consumer 288 00:16:16,960 --> 00:16:20,240 Speaker 1: durables consumer good demand, it was putting huge strain on 289 00:16:20,280 --> 00:16:24,800 Speaker 1: supply chains during the early phase the pandemic. You have 290 00:16:24,920 --> 00:16:28,720 Speaker 1: to say now that demand picture, particularly from US consumers, 291 00:16:28,960 --> 00:16:32,400 Speaker 1: is a far lower than it was back in those 292 00:16:32,440 --> 00:16:35,280 Speaker 1: early iterations. So I think that therefore the spillover in 293 00:16:35,360 --> 00:16:39,280 Speaker 1: global supply chains will be commensurately less acute. And I 294 00:16:39,280 --> 00:16:41,360 Speaker 1: think that is one of the reasons why despite this 295 00:16:42,520 --> 00:16:45,920 Speaker 1: data which won't do any favors for global GDP growth, 296 00:16:46,200 --> 00:16:50,200 Speaker 1: I think it's been quite readily absorbed by investors without 297 00:16:50,240 --> 00:16:53,920 Speaker 1: too much indigestion. When I turn to the political situation 298 00:16:54,160 --> 00:16:57,360 Speaker 1: in Italy, as if the Eurozone weren't dealing with enough, 299 00:16:57,880 --> 00:17:02,840 Speaker 1: given the problems with the more in Ukraine and the supply, 300 00:17:03,040 --> 00:17:06,080 Speaker 1: the supply of energy there. Now we have this political 301 00:17:06,119 --> 00:17:09,560 Speaker 1: situation where Mario drag tried to resign as prime minister. 302 00:17:09,640 --> 00:17:11,960 Speaker 1: Now he's trying to keep a government together. Where do 303 00:17:11,960 --> 00:17:16,160 Speaker 1: you see this going Simon? Yes, So it's important first 304 00:17:16,160 --> 00:17:19,440 Speaker 1: and foremost to say that Mario drag has been a 305 00:17:19,520 --> 00:17:22,600 Speaker 1: prime ministers in February one is the sixth prime minister 306 00:17:22,680 --> 00:17:26,600 Speaker 1: that Italy have had in a decade. So political turbulence 307 00:17:26,720 --> 00:17:29,680 Speaker 1: is not unusual, not neither in the last decade or 308 00:17:29,720 --> 00:17:33,159 Speaker 1: in the last seventy five years in Italy. So I 309 00:17:33,160 --> 00:17:35,440 Speaker 1: don't think investors are going to look at that aspect 310 00:17:35,800 --> 00:17:40,120 Speaker 1: as being particularly worrisome. It's more ahead of next week's 311 00:17:40,160 --> 00:17:43,119 Speaker 1: European Central Bank meeting, where they're going to almost certainly 312 00:17:43,119 --> 00:17:46,679 Speaker 1: deliver the first interest rate increase in eleven years. But 313 00:17:46,800 --> 00:17:51,160 Speaker 1: also to say more about the anti fragmentation policy, which 314 00:17:51,200 --> 00:17:54,760 Speaker 1: is to try and stop spreads of peripheral countries like 315 00:17:54,880 --> 00:17:59,080 Speaker 1: Italy from blowing out versus the spreads of German buns. 316 00:17:59,160 --> 00:18:03,080 Speaker 1: And of course Italian political backdrop is an uncomfortable one 317 00:18:03,160 --> 00:18:08,320 Speaker 1: to you know, backdrop to that meeting, because what pressure 318 00:18:08,359 --> 00:18:10,359 Speaker 1: is going to be born to brought on Christian the 319 00:18:10,440 --> 00:18:14,720 Speaker 1: Guard to say, well, if the Italian political situation changes, 320 00:18:14,800 --> 00:18:17,840 Speaker 1: does that change your readiness to intervene and buy a 321 00:18:17,880 --> 00:18:21,040 Speaker 1: disproportioned amount of Italian death. That's the uncertainty of the market. 322 00:18:21,560 --> 00:18:23,679 Speaker 1: And then our last minute here Simon, ahead of that 323 00:18:23,720 --> 00:18:26,240 Speaker 1: ECV decision, of course, the debate continues here in the 324 00:18:26,320 --> 00:18:28,600 Speaker 1: US over whether we're going to see a seventy five 325 00:18:28,760 --> 00:18:31,400 Speaker 1: or one hundred basis point rate HIG from the Fed 326 00:18:31,760 --> 00:18:34,719 Speaker 1: later on this month. How do you think Chris Waller 327 00:18:34,760 --> 00:18:38,000 Speaker 1: did to try to potentially tamp down that speculation of 328 00:18:38,040 --> 00:18:41,679 Speaker 1: a super supersize rate high. I think he did a 329 00:18:41,680 --> 00:18:43,920 Speaker 1: good job. I think the market is very sensitive, isn't 330 00:18:43,920 --> 00:18:46,800 Speaker 1: it at the moment to the idea that the Federal 331 00:18:46,840 --> 00:18:52,040 Speaker 1: Reserve may, through a variety of communication vehicles, push out 332 00:18:52,080 --> 00:18:54,560 Speaker 1: and outside the increased like they did with fifty million 333 00:18:55,400 --> 00:19:00,480 Speaker 1: bits uh the last rate decision. I think the bits 334 00:19:00,520 --> 00:19:03,200 Speaker 1: was a little bit of an overinterpretation of the heat 335 00:19:03,240 --> 00:19:07,560 Speaker 1: in the CPI prints. I think fm C chat suggest 336 00:19:07,960 --> 00:19:11,960 Speaker 1: it's still the key expectation. It's certainly my expectation, but 337 00:19:12,040 --> 00:19:15,040 Speaker 1: it's more the path, isn't it's the residual three meetings 338 00:19:15,040 --> 00:19:17,080 Speaker 1: in twenty twenty two, which I think markets are more 339 00:19:17,200 --> 00:19:20,000 Speaker 1: sens to two and then certainly to see whether these 340 00:19:20,080 --> 00:19:23,840 Speaker 1: rate hikes actually do have an impact on forty plus 341 00:19:23,920 --> 00:19:26,760 Speaker 1: year inflation. Thanks for this, Simon, great having you on 342 00:19:26,840 --> 00:19:30,520 Speaker 1: with us. Simon French, chief economist at PAN. Mr Gordon. 343 00:19:30,920 --> 00:19:34,680 Speaker 1: Right now, SMP futures are up eight points, STAFF futures 344 00:19:34,720 --> 00:19:38,080 Speaker 1: up sixty two and NASAC futures are higher by twenty 345 00:19:38,119 --> 00:19:40,840 Speaker 1: four points ten. Your treasury is up nine thirty seconds. 346 00:19:40,880 --> 00:19:43,600 Speaker 1: The yield two point nine two percent, yield on the 347 00:19:43,640 --> 00:19:47,800 Speaker 1: two year right now three point one zero percent, nime 348 00:19:47,840 --> 00:19:50,520 Speaker 1: ex screwdes hire a bit by two tenths per center, 349 00:19:50,560 --> 00:19:54,360 Speaker 1: twenty cents ninety cents a barrel. The euro right now 350 00:19:54,480 --> 00:19:59,400 Speaker 1: one point zero zero three eight against the dollar. You're 351 00:19:59,440 --> 00:20:08,359 Speaker 1: listening to Bomberg Daybreak on this Friday morning. Bloomberg eleven 352 00:20:08,400 --> 00:20:11,720 Speaker 1: three oh weather, sunshine mid eighties today and tomorrow mix 353 00:20:11,800 --> 00:20:14,560 Speaker 1: of sun and cloud Sunday could see some late afternoon 354 00:20:14,600 --> 00:20:16,960 Speaker 1: showers and storms. Trend the weekend going up near ninety 355 00:20:17,040 --> 00:20:26,040 Speaker 1: degrees right now seventy four in Central Park, broadcasting live 356 00:20:26,240 --> 00:20:30,199 Speaker 1: from the Bloomberg Interactive Broker Studio in New York, Bloomberg 357 00:20:30,200 --> 00:20:34,280 Speaker 1: e Living Freedom to Washington, d C. Bloomberg to Boston, 358 00:20:34,359 --> 00:20:37,800 Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine 359 00:20:37,880 --> 00:20:40,960 Speaker 1: six to the country, Sirius XM to the one nine team, 360 00:20:41,080 --> 00:20:44,560 Speaker 1: and around the globe the Bloomberg Business and Bloomberg Radio 361 00:20:44,680 --> 00:20:53,800 Speaker 1: dot Com. This is Bloomberg Daybreak, five thirty on Wall Street. 362 00:20:53,800 --> 00:20:56,600 Speaker 1: Good morning, I'm Nathan Hagar and I'm Karen Moscow. We're 363 00:20:56,680 --> 00:20:59,120 Speaker 1: just about four hours away from the open of US trading. 364 00:20:59,200 --> 00:21:00,639 Speaker 1: Let's get you up to day to the news you 365 00:21:00,640 --> 00:21:02,840 Speaker 1: need to know at this hour. We begin in shine Over. 366 00:21:02,920 --> 00:21:05,440 Speaker 1: The economy grew just four tens of uppers and last 367 00:21:05,480 --> 00:21:08,480 Speaker 1: quarter that's the slowest patients has started the pandemic. But 368 00:21:08,600 --> 00:21:11,960 Speaker 1: Bloomberg macro strategist Mark Hudmore says it's not the g 369 00:21:12,080 --> 00:21:14,639 Speaker 1: d P miss that worries him. The data, I think 370 00:21:14,720 --> 00:21:16,560 Speaker 1: at the moment is first of all, a little bit 371 00:21:16,560 --> 00:21:18,879 Speaker 1: backward looking, and there's a bit of a dynamic here 372 00:21:18,920 --> 00:21:20,760 Speaker 1: where we're kind of going, Hey, bad news is good 373 00:21:20,800 --> 00:21:22,800 Speaker 1: news for markets because it means more policy eason to 374 00:21:22,800 --> 00:21:25,040 Speaker 1: come through. The data this morning did not worry me. 375 00:21:25,160 --> 00:21:27,639 Speaker 1: But the property sector story is getting worse at a 376 00:21:27,720 --> 00:21:29,679 Speaker 1: quicker rate than I think many of us anticipated a 377 00:21:29,680 --> 00:21:31,880 Speaker 1: month or two ago. The credit problems are spreading beyond 378 00:21:31,920 --> 00:21:33,960 Speaker 1: the property sector into the banking sector, and that is 379 00:21:34,000 --> 00:21:36,880 Speaker 1: a concern for China, and Bloomberg's Mark Hudmore says it'll 380 00:21:36,920 --> 00:21:39,160 Speaker 1: be important to see how China performs in their second 381 00:21:39,160 --> 00:21:41,400 Speaker 1: half of the year. In Europe, care and Italian Prime 382 00:21:41,400 --> 00:21:44,320 Speaker 1: Minister Mario drags offered to resign has been rejected by 383 00:21:44,320 --> 00:21:48,119 Speaker 1: the country's president. Bloomberg Shia Albanesi says if Droggy leaves government, 384 00:21:48,119 --> 00:21:51,679 Speaker 1: it will negatively affect markets that he had started on 385 00:21:51,720 --> 00:21:55,440 Speaker 1: a very ambitious pop of reforms to free up the market, 386 00:21:55,640 --> 00:21:58,679 Speaker 1: to beat up competition, to change up the justice system, 387 00:21:58,720 --> 00:22:01,159 Speaker 1: to cut rect tape. These is all on the question 388 00:22:01,280 --> 00:22:04,480 Speaker 1: if he walks away. Bloomberg. Albanesi in Rome says concerns 389 00:22:04,480 --> 00:22:07,960 Speaker 1: over energy and inflation could hamper Italy's economy later this year. 390 00:22:08,280 --> 00:22:10,800 Speaker 1: Back here in the US, Nathan, the debate continues over 391 00:22:10,840 --> 00:22:13,560 Speaker 1: whether the federal hike rates by seventy five basis points 392 00:22:13,640 --> 00:22:16,119 Speaker 1: or one percent later this month. Coming up today, we 393 00:22:16,160 --> 00:22:18,760 Speaker 1: get more economic data for the Central Bank to digest 394 00:22:19,080 --> 00:22:21,359 Speaker 1: du in retail sales will be released around eight thirty 395 00:22:21,400 --> 00:22:24,560 Speaker 1: am Wall Street Time, followed by University of Michigan Sentiment 396 00:22:24,640 --> 00:22:26,880 Speaker 1: at ten. And banks are in focus again today, Karen. 397 00:22:26,920 --> 00:22:30,960 Speaker 1: After yesterday's disappointing results from JP Morgan, Chase and Morgan Stanley, 398 00:22:31,000 --> 00:22:34,200 Speaker 1: we get more from Bloomberg Shinali Bassek. More worries about 399 00:22:34,200 --> 00:22:36,879 Speaker 1: the U S consumer started to rise after JP Morgan 400 00:22:36,960 --> 00:22:40,840 Speaker 1: started reporting provisions for loan losses. The bank also said 401 00:22:40,880 --> 00:22:44,160 Speaker 1: that charge draws were starting to slowly rise. City Group 402 00:22:44,160 --> 00:22:46,560 Speaker 1: and Walls Fargo will also give another glimpse into the 403 00:22:46,560 --> 00:22:50,359 Speaker 1: consumer when they report earnings on Friday. M Shnali Bassek 404 00:22:50,400 --> 00:22:53,040 Speaker 1: Bloomberg Daybreak aarent Sinali thanks and those reports and do 405 00:22:53,160 --> 00:22:55,320 Speaker 1: out this morning from Wells Fargo at seven am Wall 406 00:22:55,320 --> 00:22:57,919 Speaker 1: Street Time, followed by City Group at eight. At the 407 00:22:57,920 --> 00:23:00,720 Speaker 1: same time, Nathan bakes around the hook for big bill 408 00:23:00,840 --> 00:23:03,760 Speaker 1: from the government. Financial regulators are poised to extract about 409 00:23:03,760 --> 00:23:06,160 Speaker 1: one billion dollars and fives from the fine biggest US 410 00:23:06,200 --> 00:23:09,280 Speaker 1: investment banks. That's her failing to monitor employee use of 411 00:23:09,320 --> 00:23:13,480 Speaker 1: unauthorized messaging apps for bank communications. And in politics today, Karen, 412 00:23:13,480 --> 00:23:17,159 Speaker 1: President Biden visits Saudi Arabia. Sources tell Bloomberg the President 413 00:23:17,200 --> 00:23:20,400 Speaker 1: will leave his Middle Eastern trip with no public announcements 414 00:23:20,440 --> 00:23:24,720 Speaker 1: on increasing oil supply. Futures this morning are higher. SNP 415 00:23:24,880 --> 00:23:27,680 Speaker 1: futures up about eleven points down futures up eighty five, 416 00:23:27,760 --> 00:23:30,200 Speaker 1: nastday futures up thirty two straight and hand your latest 417 00:23:30,240 --> 00:23:34,159 Speaker 1: local headlines plus a check of sports. And this is Bloomberg. 418 00:23:38,160 --> 00:23:40,760 Speaker 1: Thanks Karen. Three on Wall Street, seventy three degrees in 419 00:23:40,800 --> 00:23:44,000 Speaker 1: Central Park, dealing with thirty minute delays on the upper 420 00:23:44,080 --> 00:23:47,000 Speaker 1: level of the George Washington Bridge. This is the morning 421 00:23:47,119 --> 00:23:49,920 Speaker 1: to go downstairs. I'll tell you why in traffic in 422 00:23:49,960 --> 00:23:53,080 Speaker 1: a few minutes. First, Michael Barr is here with more 423 00:23:53,160 --> 00:23:54,679 Speaker 1: on what else is going on in New York and 424 00:23:54,760 --> 00:23:57,159 Speaker 1: around the world. Good morning, Michael, Good morning Nathan. New 425 00:23:57,240 --> 00:24:00,280 Speaker 1: York Governor Kathy Hokel talked about shootings during an event 426 00:24:00,320 --> 00:24:03,440 Speaker 1: in Brooklyn. Hocal announced a new budget allowance of over 427 00:24:03,480 --> 00:24:06,160 Speaker 1: twenty million dollars to find gun violence in the state. 428 00:24:06,520 --> 00:24:09,880 Speaker 1: Vocal says it would invest in several things, including community 429 00:24:09,880 --> 00:24:14,840 Speaker 1: outreach programs and crime labs investigating shooting state wide. We 430 00:24:14,960 --> 00:24:17,800 Speaker 1: have a gun violence epidemic here in the state of 431 00:24:17,840 --> 00:24:21,040 Speaker 1: New York full stop as a statement effect. The governor's 432 00:24:21,040 --> 00:24:23,840 Speaker 1: announcement comes one month after Hocal signed a new gun 433 00:24:23,920 --> 00:24:28,640 Speaker 1: safety bill that banned carrying any firearms into sensitive places, 434 00:24:28,680 --> 00:24:32,680 Speaker 1: including schools and mass transit stations. A federal grand jury 435 00:24:32,680 --> 00:24:35,399 Speaker 1: in Buffalo returned to twenty seven account indictment charging the 436 00:24:35,480 --> 00:24:40,080 Speaker 1: suspected gunmen in the Tops supermarket shooting with hate crimes. Meanwhile, 437 00:24:40,200 --> 00:24:43,440 Speaker 1: today Tops is set to reopen. There was some debate 438 00:24:43,440 --> 00:24:46,600 Speaker 1: about possibly shuttering the supermarket, but this man who lives 439 00:24:46,640 --> 00:24:50,480 Speaker 1: in the community, tells ABC that he's glad that Tops 440 00:24:50,560 --> 00:24:53,439 Speaker 1: is reopening because it is the only grocery store the 441 00:24:53,440 --> 00:24:57,520 Speaker 1: community has. At first, I said to myself, well, maybe 442 00:24:57,520 --> 00:25:01,040 Speaker 1: they should just put those are out, you know, closed, 443 00:25:01,080 --> 00:25:03,119 Speaker 1: and make a make a momre you out of it. 444 00:25:03,760 --> 00:25:05,920 Speaker 1: And then I thought about it again. You know, how 445 00:25:05,960 --> 00:25:08,159 Speaker 1: long would it take was to get a new Tops. 446 00:25:08,840 --> 00:25:12,800 Speaker 1: The suspected gunman, Peyton Gendern, is accused of shooting thirteen people, 447 00:25:12,880 --> 00:25:16,720 Speaker 1: killing ten inside the supermarket, which prosecutors say he targeted 448 00:25:16,760 --> 00:25:19,480 Speaker 1: because he wanted to kill black people. The New York 449 00:25:19,520 --> 00:25:22,760 Speaker 1: City Council has taken steps to expand abortion and reproductive 450 00:25:22,760 --> 00:25:26,120 Speaker 1: care rights. The Council passed a package of bills, including 451 00:25:26,160 --> 00:25:31,040 Speaker 1: providing free abortion pills at clinics. The January six Committee 452 00:25:31,040 --> 00:25:34,480 Speaker 1: says secret service text made as the assault on the 453 00:25:34,520 --> 00:25:38,320 Speaker 1: Capitol unfolded are missing. Bloomberg's said Baxter as the Story. 454 00:25:38,720 --> 00:25:42,399 Speaker 1: Committee chair Bennie Thompson says they have been deleted or erased. 455 00:25:42,840 --> 00:25:45,040 Speaker 1: He says they are important because they could shed some 456 00:25:45,160 --> 00:25:48,320 Speaker 1: light on Donald Trump's movements leading up to and during 457 00:25:48,440 --> 00:25:52,440 Speaker 1: the insurrection. Thompson says, if there's any way that they 458 00:25:52,440 --> 00:25:56,440 Speaker 1: can be reconstructed, they will do it. Remember the testimony 459 00:25:56,480 --> 00:25:59,040 Speaker 1: from aid Cassidy Hutchinson, who said that Trump wanted to 460 00:25:59,119 --> 00:26:02,960 Speaker 1: join the marchers of the Capital but was blocked by security. Well. 461 00:26:03,040 --> 00:26:05,800 Speaker 1: Thompson says they could also shed light on Trump's activities 462 00:26:05,840 --> 00:26:09,719 Speaker 1: regarding Vice President Mike Pence in San Francisco. I'm at 463 00:26:09,760 --> 00:26:13,879 Speaker 1: Baxter Bloomberg Daybreak. Ivana Trump, the first wife to Donald Trump, 464 00:26:13,920 --> 00:26:17,119 Speaker 1: has died at her home in Manhattan. Havannah Trump was 465 00:26:17,200 --> 00:26:20,359 Speaker 1: seventy three Global News twenty four hours a day on 466 00:26:20,400 --> 00:26:23,240 Speaker 1: air and on Bloomberg quick Take, powered by more than 467 00:26:23,320 --> 00:26:25,960 Speaker 1: twenty seven hundred journalists and analysts, and more than one 468 00:26:26,040 --> 00:26:30,600 Speaker 1: hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan. Okay, Michael, 469 00:26:30,640 --> 00:26:37,600 Speaker 1: thank you. HiT's five thirty six on Wall Street. Time 470 00:26:37,600 --> 00:26:40,280 Speaker 1: for the Bloomberg Sports Update. Here's John Sanshaw. All right, Nathan. 471 00:26:40,320 --> 00:26:42,600 Speaker 1: Great night for the Mets. Not only there eight nothing 472 00:26:42,640 --> 00:26:45,440 Speaker 1: went over the Cubs at regularly strung pitching from Carlos 473 00:26:45,440 --> 00:26:47,760 Speaker 1: Carrasco granted Nimo three hits with the home run Pete 474 00:26:47,800 --> 00:26:51,639 Speaker 1: alonzo is twenty four homer, Edward Ostibar and Patrick Mzek 475 00:26:51,800 --> 00:26:55,080 Speaker 1: with two run singles, but also sellout crowd in Syracuse 476 00:26:55,160 --> 00:26:57,520 Speaker 1: to see Jacob de Ground faced Triple A batterers, but 477 00:26:57,520 --> 00:26:59,520 Speaker 1: the first time four and Anzy did not allow on 478 00:26:59,560 --> 00:27:02,000 Speaker 1: earn Ron gave up just two hits, struck out four 479 00:27:02,080 --> 00:27:04,760 Speaker 1: third straight rehab start where de Graham hit a hundred 480 00:27:04,760 --> 00:27:07,399 Speaker 1: on the gun, and all indications are he will make 481 00:27:07,520 --> 00:27:11,080 Speaker 1: his highly anticipated season debut for the Mets. Sometime after 482 00:27:11,119 --> 00:27:13,400 Speaker 1: the All Star Break, Yankees and Red's had a pictures 483 00:27:13,440 --> 00:27:16,159 Speaker 1: duel at the stadium. The game still ended up seven 484 00:27:16,200 --> 00:27:18,120 Speaker 1: to six. It was one one in the eighth inning 485 00:27:18,280 --> 00:27:21,280 Speaker 1: Ester Cortez against Luis Castillo in the Battle of All 486 00:27:21,280 --> 00:27:23,919 Speaker 1: Stars Cincinnati, where three runs of the eighth inning off 487 00:27:24,040 --> 00:27:26,560 Speaker 1: Jonathan Loaisa, just back from injury, and then three more 488 00:27:26,600 --> 00:27:29,640 Speaker 1: in the tenth off Lucas Litkey. Joey Vado had big 489 00:27:29,680 --> 00:27:32,480 Speaker 1: hits in both rallies. The Reds won seven, six and 490 00:27:32,520 --> 00:27:35,399 Speaker 1: ten Yankee home runs in defeat for Aaron Judge his 491 00:27:35,480 --> 00:27:39,120 Speaker 1: thirty first. Also Glaver Torres and Matt Carpenter. Yanks host 492 00:27:39,160 --> 00:27:42,000 Speaker 1: the Red Sox tonight. Socks just lost four straight at 493 00:27:42,040 --> 00:27:45,119 Speaker 1: Tampa Bay. Seattle Maritors one again last night. That's eleven 494 00:27:45,200 --> 00:27:47,760 Speaker 1: wins in a row for them. They're playing the second 495 00:27:47,800 --> 00:27:50,320 Speaker 1: round of the Open Championship at St. Andrews. Taylor Gooch 496 00:27:50,680 --> 00:27:53,800 Speaker 1: has moved into a tie for second with Rory McElroy 497 00:27:53,920 --> 00:27:57,240 Speaker 1: at six under. The leader at eight under remains Cameron Young. 498 00:27:57,320 --> 00:28:00,200 Speaker 1: Westchester native went to high school at Fordham Up in 499 00:28:00,240 --> 00:28:02,800 Speaker 1: the Bronx, he shot sixty four. They'll see off today 500 00:28:02,840 --> 00:28:06,080 Speaker 1: about eight thirty Eastern. Reportedly, the Knicks have rejected a 501 00:28:06,080 --> 00:28:09,560 Speaker 1: trade offer from the Utah Jazz Donovan Mitchell for four 502 00:28:09,600 --> 00:28:13,359 Speaker 1: players and six first round draft picks. John Dashwork Bloomberg Sports, 503 00:28:13,880 --> 00:28:16,679 Speaker 1: thanks Sean seven on Wall Street Time now for the 504 00:28:16,720 --> 00:28:20,200 Speaker 1: Tri State Business report. Here's Bloomberg's Ed Corey. After a 505 00:28:20,320 --> 00:28:23,160 Speaker 1: victory in an Amazon warehouse in New York this year, 506 00:28:23,480 --> 00:28:26,959 Speaker 1: the Amazon labor union vowed to unionize three more company 507 00:28:27,040 --> 00:28:30,359 Speaker 1: facilities nearby, but things have not gone according to plan. 508 00:28:30,880 --> 00:28:33,399 Speaker 1: The group lost an election at a warehouse across the 509 00:28:33,440 --> 00:28:36,720 Speaker 1: street from the first and has paused efforts to organize 510 00:28:36,760 --> 00:28:40,520 Speaker 1: the other two. Monsio Ortega, billionaire founder of the Tzara 511 00:28:40,640 --> 00:28:44,000 Speaker 1: clothing chain, has agreed to buy New York's nineteen Dutch 512 00:28:44,080 --> 00:28:47,479 Speaker 1: apartment building or Tega's holding firm will pay about five 513 00:28:47,560 --> 00:28:50,720 Speaker 1: hundred million dollars, according to details published by the Real 514 00:28:50,880 --> 00:28:54,959 Speaker 1: Deal and confirmed by a spokesperson for Ortega. The building 515 00:28:55,000 --> 00:28:58,120 Speaker 1: was sold by Carmel Partners. New York City Mayor Eric 516 00:28:58,160 --> 00:29:00,640 Speaker 1: Adams has unveiled to plan to draw are writers to 517 00:29:00,880 --> 00:29:05,640 Speaker 1: NYC Ferry, effective in September. Adams NYC Ferry Forward plan 518 00:29:05,760 --> 00:29:08,160 Speaker 1: will let at least a million low income New Yorkers, 519 00:29:08,200 --> 00:29:10,960 Speaker 1: seniors and people with disabilities to ride one way for 520 00:29:11,000 --> 00:29:14,440 Speaker 1: a buck. Thirty five. That's your Bloomberg Dry State Business Report. 521 00:29:14,520 --> 00:29:17,480 Speaker 1: I'm Ed Corey. Thanks At five thirty eight on Wall Street. 522 00:29:17,600 --> 00:29:20,840 Speaker 1: Bloomberg Radio is on the air from San Francisco to 523 00:29:20,840 --> 00:29:23,440 Speaker 1: New York, London to Hong Kong. Let's check in with 524 00:29:23,480 --> 00:29:25,520 Speaker 1: our global news team for some of the top stories 525 00:29:25,560 --> 00:29:29,000 Speaker 1: heard on our three hundred affiliate radio stations around the world. 526 00:29:32,080 --> 00:29:35,240 Speaker 1: I'm Steve Potaskan on Tension Wins in New York. We're 527 00:29:35,240 --> 00:29:39,600 Speaker 1: talking about how unauthorized texting will cost Wall Street Banks 528 00:29:39,640 --> 00:29:43,240 Speaker 1: a billion dollars five um. Courney Donahe on kt r 529 00:29:43,400 --> 00:29:46,000 Speaker 1: H in Houston. The number of homes for sale rises 530 00:29:46,040 --> 00:29:48,920 Speaker 1: for the first time in three years. I'm Jinas Servetti 531 00:29:49,000 --> 00:29:51,880 Speaker 1: in for w c c O in Minneapolis. Were digging 532 00:29:51,880 --> 00:29:55,560 Speaker 1: into earnings from United Hill. I'm Stephen Carol on Bloomberg 533 00:29:55,600 --> 00:29:58,320 Speaker 1: DAB Digital Radio in London. We've been looking ahead to 534 00:29:58,360 --> 00:30:01,360 Speaker 1: the first TV debate for into its to replace Baris 535 00:30:01,440 --> 00:30:05,000 Speaker 1: Johnson as Prime Minister. My mid Corey on w w 536 00:30:05,200 --> 00:30:09,640 Speaker 1: J and Detroit, I'm reporting General motors, self driving startup cruise, 537 00:30:09,800 --> 00:30:13,120 Speaker 1: is faith that increased scrutiny. And those are some of 538 00:30:13,120 --> 00:30:16,239 Speaker 1: the stories our twenty hundred Bloomberg journalist and analysts are 539 00:30:16,280 --> 00:30:18,560 Speaker 1: working on this morning around the world. And here's another one. 540 00:30:18,960 --> 00:30:21,800 Speaker 1: Meta Platforms is going to start letting more users create 541 00:30:21,880 --> 00:30:25,360 Speaker 1: multiple profiles within their Facebook accounts. We get that story 542 00:30:25,360 --> 00:30:28,920 Speaker 1: from Bloomberg's Charlie Pellett. It's the company's latest attempt to 543 00:30:29,040 --> 00:30:32,760 Speaker 1: encourage posting and sharing on its social network. As part 544 00:30:32,760 --> 00:30:35,440 Speaker 1: of a test, certain Facebook members will be able to 545 00:30:35,480 --> 00:30:39,360 Speaker 1: create as many as four additional profiles, and each one 546 00:30:39,440 --> 00:30:42,880 Speaker 1: will not need to include a person's real name or identity. 547 00:30:43,360 --> 00:30:46,560 Speaker 1: Users could have one for friends and another for coworkers, 548 00:30:46,640 --> 00:30:50,080 Speaker 1: for example, each with its own feed. Meta is stepping 549 00:30:50,160 --> 00:30:54,080 Speaker 1: up efforts to drive engagement on the world's biggest social network, 550 00:30:54,320 --> 00:30:59,120 Speaker 1: which has seen growth slow, especially among younger users. In 551 00:30:59,240 --> 00:31:02,800 Speaker 1: New York, Arlie Pellet Bloomberg day break. Okay, Charlie, thank 552 00:31:02,840 --> 00:31:05,320 Speaker 1: you right now. SMP futures are up ten points down 553 00:31:05,360 --> 00:31:08,200 Speaker 1: futures up seventy six. Dance Act futures are higher by 554 00:31:08,280 --> 00:31:10,600 Speaker 1: thirty five points the ten Your treasury is up seven 555 00:31:10,640 --> 00:31:13,240 Speaker 1: thirty seconds yield two point nine three yield on the 556 00:31:13,240 --> 00:31:22,760 Speaker 1: two year, three point one one. This is Bloomberg. Bloomberg 557 00:31:22,760 --> 00:31:24,600 Speaker 1: eleven three oh weather, sunshine in the high and your 558 00:31:24,640 --> 00:31:27,600 Speaker 1: eighty five degrees today and tomorrow. We'll call it a 559 00:31:27,600 --> 00:31:29,520 Speaker 1: mix of sun and clouds for Sunday with some late 560 00:31:29,560 --> 00:31:32,680 Speaker 1: afternoon showers and storms developing highsteer ninety degrees right now 561 00:31:32,720 --> 00:31:39,360 Speaker 1: seventy three in Central Park Markets. Headlines and breaking news 562 00:31:39,480 --> 00:31:42,080 Speaker 1: twenty four hours a day at Bloomberg dot Com, The 563 00:31:42,160 --> 00:31:45,640 Speaker 1: Bloomberg Business at and at Bloomberg Quicktake, this is a 564 00:31:45,680 --> 00:31:54,840 Speaker 1: Bloomberg Business lash, But I'm Karen Moscow. Stocks in your 565 00:31:54,880 --> 00:31:58,360 Speaker 1: upper gaining, US Knock Index futures edging higher, and Vaughn's 566 00:31:58,480 --> 00:32:00,840 Speaker 1: advancing at the end of a week in which markets 567 00:32:00,840 --> 00:32:04,040 Speaker 1: have been whipped on by shifting expectations for monetary tightening 568 00:32:04,080 --> 00:32:07,120 Speaker 1: by the Federal Reserve and worries over global economic growth. 569 00:32:07,200 --> 00:32:09,360 Speaker 1: If we checked the markets every fifteen minutes throughout the 570 00:32:09,360 --> 00:32:12,120 Speaker 1: trading day, on Bloomberg s and P futures up about 571 00:32:12,200 --> 00:32:14,880 Speaker 1: nine points now, Future is up sixty four NAS day 572 00:32:15,000 --> 00:32:18,040 Speaker 1: futures up about twenty seven The decks in Germany's up 573 00:32:18,040 --> 00:32:20,120 Speaker 1: one and a half percent. The ten year treasury of 574 00:32:20,200 --> 00:32:23,360 Speaker 1: five thirty seconds held two point nine three percent yield 575 00:32:23,360 --> 00:32:26,600 Speaker 1: on the two year three point one two percent nine 576 00:32:26,600 --> 00:32:28,520 Speaker 1: makes screwed oil is up a third of Upper Center 577 00:32:28,600 --> 00:32:30,800 Speaker 1: thirty one cents at ninety six dollars nine cents of 578 00:32:30,840 --> 00:32:33,360 Speaker 1: barrel coll make school down three ten percent or five 579 00:32:33,400 --> 00:32:36,240 Speaker 1: dollars thirty cents at one thousand, seven hundred dollars fifty 580 00:32:36,240 --> 00:32:39,560 Speaker 1: cents announced, the euro one point zero zero four four 581 00:32:39,640 --> 00:32:42,080 Speaker 1: against the dollar, British found one point one eight three 582 00:32:42,120 --> 00:32:44,440 Speaker 1: five and the yen one thirty eight point eight zero 583 00:32:44,760 --> 00:32:47,760 Speaker 1: bitcoins higher, up about one percent at twenty thousand, eight 584 00:32:47,840 --> 00:32:50,920 Speaker 1: hundred to sixty dollars. That's a Bloomberg business flash. Now 585 00:32:50,920 --> 00:32:53,200 Speaker 1: here's Michael Barr with more on what's going on around 586 00:32:53,240 --> 00:32:56,000 Speaker 1: the world. Michael, thank you very much, Karen. Before leaving 587 00:32:56,000 --> 00:32:59,760 Speaker 1: for Saudi Arabia for the much anticipated second leg of 588 00:32:59,840 --> 00:33:02,920 Speaker 1: his Middle East tour, President Biden visited the West Bank 589 00:33:02,960 --> 00:33:06,560 Speaker 1: and East Jerusalem. Today, the President visited a hospital and 590 00:33:06,600 --> 00:33:09,960 Speaker 1: praised nurses for the work they do. The Secret Services 591 00:33:10,000 --> 00:33:13,360 Speaker 1: again in the cross areas of the Congressional Committee looking 592 00:33:13,400 --> 00:33:17,640 Speaker 1: into the Capitol Hill riot and Internal Watchdogs, says the 593 00:33:17,680 --> 00:33:22,080 Speaker 1: agency that protects the president deleted messages from January five 594 00:33:22,200 --> 00:33:25,680 Speaker 1: and sixth of last year. In baseball, the Yankees lost 595 00:33:25,720 --> 00:33:28,240 Speaker 1: to the Royals, the Mets beat the Cubs, the Red 596 00:33:28,280 --> 00:33:31,000 Speaker 1: Sox lost to the Raise, the Nationals lost to the Braves, 597 00:33:31,280 --> 00:33:34,360 Speaker 1: the Giants lost to the Brewers. Global News twenty four 598 00:33:34,400 --> 00:33:37,760 Speaker 1: hours a day on air and on Bloomberg Quicktake, powered 599 00:33:37,800 --> 00:33:40,479 Speaker 1: by more than seven hundred journalists and analysts more than 600 00:33:40,520 --> 00:33:44,840 Speaker 1: one countries. Michael Barr and this is Bloomberg nath Al Right, Michael, 601 00:33:44,880 --> 00:33:46,800 Speaker 1: thank you for coming up to forty nine on Wall 602 00:33:46,800 --> 00:33:49,520 Speaker 1: Street Live from the Bloomberg Interacted Brooker Studios. This is 603 00:33:49,640 --> 00:33:52,320 Speaker 1: Bloomberg Daybreak. As we continue to watch the parade of 604 00:33:52,480 --> 00:33:55,600 Speaker 1: bank earnings for the second quarter, We've heard from JP 605 00:33:55,720 --> 00:33:59,280 Speaker 1: Morgan Chase, and Morgan Stanley. Up next this morning, Wells 606 00:33:59,320 --> 00:34:02,640 Speaker 1: Fargo and City Group. So let's bring in Bloomberg Global 607 00:34:02,640 --> 00:34:07,280 Speaker 1: Finance correspondent Shanali Bassk as we wait for these numbers. Shanali, 608 00:34:07,320 --> 00:34:10,160 Speaker 1: good morning. Before we get to what's to come, I 609 00:34:10,200 --> 00:34:12,880 Speaker 1: wonder what you made of the comments we heard yesterday 610 00:34:12,920 --> 00:34:16,719 Speaker 1: from the CEOs of JPM and Morgan Stanley about sort 611 00:34:16,719 --> 00:34:19,759 Speaker 1: of the resiliency of the U S consumer despite the 612 00:34:20,200 --> 00:34:23,479 Speaker 1: pretty disappointing numbers we got from both those banks yesterday. Yeah, 613 00:34:23,480 --> 00:34:26,160 Speaker 1: they did try to strike a real note of confidence 614 00:34:26,200 --> 00:34:28,719 Speaker 1: here because for JP Morgan, what they were saying is 615 00:34:28,920 --> 00:34:33,279 Speaker 1: spending is holding up discretionary and non discretionary spending in 616 00:34:33,360 --> 00:34:36,759 Speaker 1: the face of extreme inflation. But at Morgan Stanley you're 617 00:34:36,800 --> 00:34:39,719 Speaker 1: hearing James Gorman, the CEO, say, while he expects the recession, 618 00:34:40,080 --> 00:34:42,839 Speaker 1: he doesn't expect it to be deep or drastic. So 619 00:34:42,920 --> 00:34:46,920 Speaker 1: that is the small bright spot, I suppose, and kind 620 00:34:46,960 --> 00:34:50,319 Speaker 1: of the preparing for the tougher times ahead. Yeah, so 621 00:34:50,440 --> 00:34:53,200 Speaker 1: that sets us up for what we could see from 622 00:34:53,280 --> 00:34:56,280 Speaker 1: Wells Fargo in City Group today. Let's start off with Wells. 623 00:34:56,440 --> 00:34:59,680 Speaker 1: They have a pretty big mortgage business. I mean, that 624 00:35:00,080 --> 00:35:03,440 Speaker 1: could be tricky given where rates are right now. It 625 00:35:03,560 --> 00:35:06,200 Speaker 1: sure can, and you have to wonder whether that's kind 626 00:35:06,200 --> 00:35:09,959 Speaker 1: of the worst of it. They've already described a significant 627 00:35:10,040 --> 00:35:13,520 Speaker 1: drop off in mortgage income given that rise and interest 628 00:35:13,640 --> 00:35:16,759 Speaker 1: rates and you know, the less demand of consumers to 629 00:35:16,840 --> 00:35:19,759 Speaker 1: really take out a mortgage right now. But are there 630 00:35:19,760 --> 00:35:22,919 Speaker 1: other issues? Are they going to face higher charge offs? 631 00:35:22,960 --> 00:35:26,000 Speaker 1: We started seeing charge offs rise over at JP Morgan, 632 00:35:26,360 --> 00:35:28,400 Speaker 1: so are they going to rise more than expects it 633 00:35:28,440 --> 00:35:31,080 Speaker 1: over at Wells Fargo too? I wonder if we're gonna 634 00:35:31,160 --> 00:35:34,960 Speaker 1: see more money as well. Set aside for the possibility 635 00:35:34,960 --> 00:35:37,680 Speaker 1: of loan losses here given where rates are I mean 636 00:35:37,920 --> 00:35:41,640 Speaker 1: Morgan Standard, Sorry, Wells Fargo and City Group could both 637 00:35:41,760 --> 00:35:45,960 Speaker 1: be looking potentially to to do more set asides. Yeah, 638 00:35:45,960 --> 00:35:48,160 Speaker 1: and that's I think the pivotal question here when you 639 00:35:48,200 --> 00:35:52,840 Speaker 1: look at Wall Street's expectations, Really the provisioning lies in 640 00:35:52,880 --> 00:35:55,440 Speaker 1: the hundreds of millions of dollars. It's nothing too crazy, 641 00:35:55,480 --> 00:36:01,319 Speaker 1: but it is a reversal. Remember, people were not necessarily 642 00:36:01,320 --> 00:36:06,040 Speaker 1: provisioning for souring loans. They were actually doing the opposite 643 00:36:06,080 --> 00:36:08,279 Speaker 1: for the last couple of quarters because of reduced in 644 00:36:08,320 --> 00:36:11,399 Speaker 1: certainty around COVID. But now we might return to an 645 00:36:11,400 --> 00:36:14,440 Speaker 1: era where people are starting to get cautious again and 646 00:36:14,760 --> 00:36:17,360 Speaker 1: the outlook for lending moving forward is going to be 647 00:36:17,400 --> 00:36:22,520 Speaker 1: equally important in terms of caution. What about the credit 648 00:36:22,560 --> 00:36:26,480 Speaker 1: card business for City Group, We've heard from JP Morgan, 649 00:36:26,600 --> 00:36:30,640 Speaker 1: they said that consumers are spending more on credit cards. 650 00:36:30,640 --> 00:36:33,280 Speaker 1: It's a sign of resiliency. But you have to wonder, 651 00:36:33,320 --> 00:36:36,120 Speaker 1: I mean, if people are spending more money on credit cards, 652 00:36:36,160 --> 00:36:40,240 Speaker 1: what that says about the fragility potentially of the consumer economy. 653 00:36:40,440 --> 00:36:42,640 Speaker 1: That is the big fear. What are they buying on 654 00:36:42,680 --> 00:36:44,719 Speaker 1: those credit cards? Are they buying a trip that they 655 00:36:44,719 --> 00:36:46,880 Speaker 1: haven't been able to take in a while, or are 656 00:36:46,920 --> 00:36:49,880 Speaker 1: they paying for their groceries that way? That all the 657 00:36:49,920 --> 00:36:53,840 Speaker 1: color around that, the safety and the soundness of the consumer. 658 00:36:54,160 --> 00:36:55,759 Speaker 1: We're going to want to hear that not just from 659 00:36:55,760 --> 00:36:58,560 Speaker 1: City Group, but on Bank of America on Monday. On 660 00:36:58,719 --> 00:37:02,319 Speaker 1: City Groups front, they are also huge their international and 661 00:37:02,400 --> 00:37:04,880 Speaker 1: a lot of the troubles abroad are a lot more 662 00:37:04,960 --> 00:37:07,359 Speaker 1: drastic than what you see in the United States. So 663 00:37:07,400 --> 00:37:10,279 Speaker 1: that global picture is also important when you think about 664 00:37:10,320 --> 00:37:13,080 Speaker 1: City Group. Only about thirty seconds left here, Snelle, But 665 00:37:13,080 --> 00:37:14,719 Speaker 1: I wonder if we're going to hear more from some 666 00:37:14,800 --> 00:37:16,840 Speaker 1: of these other banks about what we heard from Morgan 667 00:37:16,920 --> 00:37:21,040 Speaker 1: Stanley yesterday about getting fined big time for these unauthorized 668 00:37:21,120 --> 00:37:24,880 Speaker 1: messaging apps. Yeah, it's certainly possible. Two million dollars worth 669 00:37:24,880 --> 00:37:27,000 Speaker 1: of fines. We saw it out for a JP Morgan, 670 00:37:27,480 --> 00:37:30,200 Speaker 1: we saw more than Stanley getting ready for it. City 671 00:37:30,200 --> 00:37:32,239 Speaker 1: Group is another one to watch for a Goleman on 672 00:37:32,280 --> 00:37:35,400 Speaker 1: Monday in Bank of America on Monday, thanks for the sale. 673 00:37:35,440 --> 00:37:37,800 Speaker 1: Good having you on as we wait for those numbers 674 00:37:38,360 --> 00:37:41,359 Speaker 1: from Wells Fargo right around seven am Wall Street time, 675 00:37:41,440 --> 00:37:44,440 Speaker 1: followed by City Group at eight am. As we continue 676 00:37:44,480 --> 00:37:47,480 Speaker 1: following bank earnings for the second quarter. Of course, we 677 00:37:47,520 --> 00:37:49,719 Speaker 1: will have full coverage for you throughout the day here 678 00:37:49,840 --> 00:37:53,120 Speaker 1: on Bloomberg Radio. Karen, all right, Nathan, it is tally 679 00:37:53,160 --> 00:37:56,160 Speaker 1: fifty three on Wall Street. Time for our Bloomberg Law Report, 680 00:37:56,200 --> 00:38:00,080 Speaker 1: brought to you buy American Arbitration Association. Business disputes are 681 00:38:00,080 --> 00:38:04,440 Speaker 1: inevitable resolved faster with the American Arbitration Association, the global 682 00:38:04,520 --> 00:38:07,839 Speaker 1: leader in alternative dispute resolution for over ninety years. More 683 00:38:07,880 --> 00:38:10,200 Speaker 1: at a d R dot org. Let's get to the 684 00:38:10,239 --> 00:38:13,640 Speaker 1: legal stories we're watching this morning. From Bloomberg's Jeff Bellinger, 685 00:38:16,640 --> 00:38:19,440 Speaker 1: more than thirty House and Senate members told the Environmental 686 00:38:19,440 --> 00:38:24,279 Speaker 1: Protection Agency they have concerns over chemical recycling technology contributing 687 00:38:24,280 --> 00:38:27,320 Speaker 1: to the climate crisis. A suit against Tesla will remain 688 00:38:27,360 --> 00:38:31,320 Speaker 1: in federal court. A man claims Tesla's autopilot system caused 689 00:38:31,320 --> 00:38:34,360 Speaker 1: an accident that resulted in his wife's death. The plaintiff 690 00:38:34,440 --> 00:38:37,320 Speaker 1: sought to have the suit moved to a California state court. 691 00:38:37,440 --> 00:38:41,720 Speaker 1: BOSHA is considering increased penalties against construction companies that ignore 692 00:38:41,760 --> 00:38:45,799 Speaker 1: safety requirements. Twenty two workers have died in trench collapses 693 00:38:45,840 --> 00:38:49,839 Speaker 1: so far this year. Bloomberg Law everything you need, all 694 00:38:49,960 --> 00:38:54,560 Speaker 1: on one legal research platform, including guidance analysis and Bloomberg 695 00:38:54,640 --> 00:38:59,040 Speaker 1: Market Intelligence. Find out more at Bloomberg Law dot com. 696 00:38:59,080 --> 00:39:01,560 Speaker 1: All right, Jeff, thanks know another legal story we're watching. 697 00:39:01,600 --> 00:39:04,520 Speaker 1: Twitter is suing Elon Musk over his abandoned forty four 698 00:39:04,600 --> 00:39:08,040 Speaker 1: billion dollar takeover bid, accusing the billionaire of having buyer's 699 00:39:08,160 --> 00:39:12,000 Speaker 1: remorse after his fortune declined. The merger agreement includes a 700 00:39:12,040 --> 00:39:15,160 Speaker 1: specific performance provision that allows Twitter to force must to 701 00:39:15,280 --> 00:39:18,520 Speaker 1: consummate the deal. And that is just what Twitter is 702 00:39:18,560 --> 00:39:21,440 Speaker 1: asking the Delaware courts to do. For more Bloomberg's doing, 703 00:39:21,480 --> 00:39:24,560 Speaker 1: Gross speaks to Eric Talley, a professor at Columbia Law School. 704 00:39:24,760 --> 00:39:29,600 Speaker 1: Delaware courts, including this judge, have granted specific performance before. 705 00:39:30,160 --> 00:39:34,760 Speaker 1: Matthew Shettenhelm, a litigation analyst for Bloomberg Intelligence, gives Twitter 706 00:39:34,800 --> 00:39:39,120 Speaker 1: a sixty chance to win specific performance. What do you 707 00:39:39,160 --> 00:39:41,799 Speaker 1: think the chances are? I think the chances are at 708 00:39:41,880 --> 00:39:44,759 Speaker 1: least that And I would say that the types of 709 00:39:44,880 --> 00:39:48,319 Speaker 1: situations that could do rails specific performance I think are 710 00:39:48,400 --> 00:39:53,239 Speaker 1: fairly remote here. The one issue that could cloud things 711 00:39:53,320 --> 00:39:58,960 Speaker 1: up a little bit is how does that injunction get administered? 712 00:39:59,120 --> 00:40:02,360 Speaker 1: Even when a core is inclined to issue a specific 713 00:40:02,400 --> 00:40:06,960 Speaker 1: performance decree, it doesn't necessarily want to sign itself up 714 00:40:07,040 --> 00:40:11,480 Speaker 1: for a year's long babysitting service of the parties themselves 715 00:40:11,520 --> 00:40:16,000 Speaker 1: to try to superintend and oversee the process of closing 716 00:40:16,040 --> 00:40:19,200 Speaker 1: the deal. And so that can sometimes be a reason 717 00:40:19,480 --> 00:40:23,120 Speaker 1: not to grant specific performance. And you know, in this instance, 718 00:40:23,280 --> 00:40:27,239 Speaker 1: it's conceivable that a judge might say, well, you know, boy, 719 00:40:27,280 --> 00:40:30,680 Speaker 1: if I compel performance, do I then have to be 720 00:40:30,840 --> 00:40:34,200 Speaker 1: the person who then wrangles all the banks into court 721 00:40:34,239 --> 00:40:37,080 Speaker 1: and tells them that they have to lend on this deal. 722 00:40:37,600 --> 00:40:40,520 Speaker 1: Maybe maybe not, Gentle McCormick didn't even bother doing that. 723 00:40:40,640 --> 00:40:42,480 Speaker 1: In the other case, you just said you gotta go 724 00:40:42,520 --> 00:40:47,080 Speaker 1: out and get your financing. So that's one potential obstacle. 725 00:40:47,400 --> 00:40:52,000 Speaker 1: There's been some speculation that must might just ignore an 726 00:40:52,080 --> 00:40:56,560 Speaker 1: order for specific performance. I doubt that that is going 727 00:40:56,600 --> 00:41:00,400 Speaker 1: to happen. It would be absolutely on a fraud to 728 00:41:00,920 --> 00:41:04,319 Speaker 1: this reputational stake that the Delaware Chords have in being 729 00:41:04,400 --> 00:41:09,720 Speaker 1: serious about enforcing contracts. And because Musk owns so many 730 00:41:09,800 --> 00:41:13,360 Speaker 1: assets that are within the jurisdiction of Delaware, largely in 731 00:41:13,400 --> 00:41:16,240 Speaker 1: the form of stock of other companies that he owns 732 00:41:16,280 --> 00:41:19,960 Speaker 1: that are Delaware companies, it would be not terribly hard 733 00:41:20,200 --> 00:41:22,960 Speaker 1: for Chancellor McCormick to say Okay, Look, if you don't 734 00:41:22,960 --> 00:41:25,719 Speaker 1: want to comply with that, then we will start a 735 00:41:25,760 --> 00:41:29,680 Speaker 1: civil contempt proceeding and I can fashion any remedy I want, 736 00:41:29,760 --> 00:41:33,080 Speaker 1: including the seizure of your stock of other companies that 737 00:41:33,160 --> 00:41:36,440 Speaker 1: you might own. Now, that is definitely the nuclear option, 738 00:41:36,719 --> 00:41:40,080 Speaker 1: but I think most people understand that nuclear option is there, 739 00:41:40,080 --> 00:41:43,120 Speaker 1: hardly ever gets used because most people basically believe the 740 00:41:43,160 --> 00:41:46,000 Speaker 1: Delaware Chancery Corps. So, you know, I think that there 741 00:41:46,000 --> 00:41:48,880 Speaker 1: are some folks who are kind of discounting the likelihood 742 00:41:48,920 --> 00:41:51,799 Speaker 1: of specific performance because they just think Musk is gonna 743 00:41:51,880 --> 00:41:56,799 Speaker 1: ignore a specific performance decree. I don't really share that concerns. 744 00:41:56,920 --> 00:41:59,480 Speaker 1: I think that if the decree comes forward, he's going 745 00:41:59,520 --> 00:42:02,040 Speaker 1: to comply I with it, and it'll be pretty clear 746 00:42:02,120 --> 00:42:03,960 Speaker 1: that it's going to be in his best interest to 747 00:42:04,040 --> 00:42:08,040 Speaker 1: comply with it. Aszeri Talley, a professor at Columbia Law School, 748 00:42:08,080 --> 00:42:11,040 Speaker 1: speaking with the Bloomberg June Grosso. Catch more of that interview, 749 00:42:11,080 --> 00:42:13,840 Speaker 1: plus analysis of the latest legal news, by subscribing to 750 00:42:13,880 --> 00:42:17,120 Speaker 1: the Bloomberg Law Podcast or downloading this show at Bloomberg 751 00:42:17,200 --> 00:42:20,680 Speaker 1: dot com slash podcast. Attorneys can find exceptional legal research 752 00:42:20,680 --> 00:42:23,640 Speaker 1: and business development tools at Bloomberg law dot com and 753 00:42:23,719 --> 00:42:27,400 Speaker 1: on the Bloomberg terminal at b law Go. Headlines crossing 754 00:42:27,400 --> 00:42:30,160 Speaker 1: the Bloomberg. We're hearing from United Health. Second quarter profit 755 00:42:30,280 --> 00:42:35,320 Speaker 1: beating analysts estimated, also boosted its forecast for the year, 756 00:42:35,520 --> 00:42:39,920 Speaker 1: while Black ross assets under management were lower than analysts 757 00:42:39,920 --> 00:42:44,200 Speaker 1: were looking for. And straight ahead, we have our tough stories. 758 00:42:44,400 --> 00:42:45,680 Speaker 1: This is Bloomberg