WEBVTT - Hawaii Death Toll Rises; Biden Sparks Fresh China Tensions

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Nathan Hager and I'm Amy Morris. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 3>We begin with the devastation in Hawaii. The death toll

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<v Speaker 3>from the Maui firestorm is now up to at least

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<v Speaker 3>fifty five. As Bloomberg's Ed Baxter reports, the crews are

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<v Speaker 3>calling it search, rescue and recovery.

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<v Speaker 4>As crews go through the burn zone, they still hope

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<v Speaker 4>to find survivors, but it's definitely a grim task. Lieutenant

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<v Speaker 4>Governor Sylvia Luke says. The state is trying to get

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<v Speaker 4>food to the west side of the island, which is

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<v Speaker 4>still without power, and then the state has to look

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<v Speaker 4>into the future.

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<v Speaker 5>Damage to the infrastructure.

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<v Speaker 6>It's not just buildings. I mean, these were small.

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<v Speaker 5>Businesses that invested in Maui.

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<v Speaker 6>These were local residents.

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<v Speaker 4>President Biden is promising a relief package, but this is

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<v Speaker 4>going to be a massive rebuild in San Francisco. I'm

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<v Speaker 4>at Baxter, Bloomberg Daybreak.

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<v Speaker 2>Thank you, Ed. We're also tracking the political turmoil in Ecuador.

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<v Speaker 2>Six Colombians under arrest in the esse fascination of presidential

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<v Speaker 2>candidate Fernando via Visencio. Officials say the suspects are part

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<v Speaker 2>of a drug trafficking organization. Outgoing President gier Mo Lasso

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<v Speaker 2>says the election will go on as scheduled a week

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<v Speaker 2>from Sunday eighth.

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<v Speaker 5>The momental, this moment, before the gravity of the facts

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<v Speaker 5>that shocks Ecuador, I will proceed to sign two decrees,

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<v Speaker 5>the first one declaring the three days of national mourning

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<v Speaker 5>the memory of patriot Fernando Rilo Vicencio Valencio.

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<v Speaker 2>Speaking through an interpreter, Ecuador's president also declared a sixty

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<v Speaker 2>day state of emergency.

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<v Speaker 3>Amy Tensions between the US and China may be on

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<v Speaker 3>the rise again this morning. That is following comments from

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<v Speaker 3>Joe Biden. The president says China's economic problems are a

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<v Speaker 3>quote ticking time bomb, and he referred to Communist party

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<v Speaker 3>leaders as bad folks. Bloomberg. Stephen Engel is in Hong Kong.

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<v Speaker 3>He says the president's comments will have an impact.

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<v Speaker 7>He is speaking to potential donors in Park City. Utah

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<v Speaker 7>is not going to help the narrative that the White

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<v Speaker 7>House is trying to do, and that is we want

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<v Speaker 7>to repair relations with China at a time. Just twenty

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<v Speaker 7>four hours after he signed his executive order limiting investment

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<v Speaker 7>by American companies. You know, I understand this is a

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<v Speaker 7>comment to donors in a politically charged environment, but the

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<v Speaker 7>world is small now. Comments like this go far. China

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<v Speaker 7>will latch onto this and use it to their advantage.

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<v Speaker 3>In Bloomberg, Steven Engel notes it's not the first time

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<v Speaker 3>Biden's made off the Kaffer marks on China. Back in June,

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<v Speaker 3>he like in Chinese president shi Jinping to a dictator.

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<v Speaker 2>Turmoil in China's property market also making news today. Once

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<v Speaker 2>the country's largest developer, Country Garden has now become a

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<v Speaker 2>penny stock. Growing debt concerns have seen Country Garden lose

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<v Speaker 2>ninety three percent of its value, down from a market

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<v Speaker 2>peak of fifty billion dollars in twenty eighteen. Bloomberg's at

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<v Speaker 2>Jil Disis says its fall from Grace could have major

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<v Speaker 2>shock waves.

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<v Speaker 8>We've heard from a few analysts that have worn this

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<v Speaker 8>could be a bigger problem than Evergrand was. We got

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<v Speaker 8>a sense of how bad the depth of the funding

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<v Speaker 8>challenges are at this company yesterday when they said that

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<v Speaker 8>they expected to post a net loss of as much

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<v Speaker 8>as fifty five billion you on for the first half

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<v Speaker 8>of the year. That's like seven point six billion US dollars.

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<v Speaker 8>This is a company that may need to restructure. So yes,

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<v Speaker 8>the problems here are quite sizable.

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<v Speaker 2>Bloomberg'sjaill Lisis says the property crisis is stoking fears of

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<v Speaker 2>financial contagion in Beijing.

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<v Speaker 3>I'm back here in the US. Amy, The latest inflation

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<v Speaker 3>data are in focus. We'll get another read this morning

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<v Speaker 3>with producer prices for July. The report comes after core

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<v Speaker 3>consumer prices posted their smallest consecutive increases in two years.

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<v Speaker 3>Even so, San Francisco FED president Mary Daily tells Yahoo

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<v Speaker 3>Finance the central Bank is still not done fighting inflation.

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<v Speaker 9>It is not a data point that says victory is ours.

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<v Speaker 9>There's still more work to do, and the FED is

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<v Speaker 9>fully committed to resolutely bringing inflation back down to its

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<v Speaker 9>two percent target.

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<v Speaker 3>San Francisco FED chief Daily also says she's not ready

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<v Speaker 3>to project the central Bank's next.

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<v Speaker 2>Move the economy, and Focus oversees a surprise reading on

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<v Speaker 2>growth out of the UK.

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<v Speaker 3>This morning.

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<v Speaker 2>We get details with Bloomberg's uew in pots in London.

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<v Speaker 2>Good morning Ewan, Good.

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<v Speaker 10>Morning Amy and Nathan. The UK's weather was exceptionally hot

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<v Speaker 10>in June, and data out today shows that the economy

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<v Speaker 10>was also much more more than forecasts. Monthly GDP jumped

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<v Speaker 10>zero point five percent, more than double the zero point

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<v Speaker 10>two percent expected by economists. That helped quarterly GDP to

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<v Speaker 10>its biggest increase since the start of last year. Though

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<v Speaker 10>that is a pretty low bar to clear digging into

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<v Speaker 10>the data and manufacturing, construction and consumer spending all outperformed.

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<v Speaker 10>The bunch of eatings will mean the Bank of England

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<v Speaker 10>will be weighing another rate rise in September. In London,

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<v Speaker 10>I'm you in pots Bloomberg daybreak, are you?

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<v Speaker 3>And thankstaying in Europe? Shares of ubs are hired by

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<v Speaker 3>more than four and a half percent this morning. The

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<v Speaker 3>bank has ended a ten billion dollar agreement with the

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<v Speaker 3>Swiss government to cover lasses tied to its takeover of

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<v Speaker 3>Credit sueez and we get more from Bloomberg. For the

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<v Speaker 3>D Senator Tom Metcalf.

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<v Speaker 6>The messaging from the bank is very much this is

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<v Speaker 6>how confident we are on the assets we've required. This

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<v Speaker 6>is a sign of strength. Purely pragmatically. I'm looking at

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<v Speaker 6>this going, why know, would you give up something you've

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<v Speaker 6>already got. As far as they can tell from the release,

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<v Speaker 6>there's nothing they're getting back in return. So you know,

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<v Speaker 6>perhaps it is all about the messaging, but you could

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<v Speaker 6>also say, oh, does this sort of get them more

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<v Speaker 6>kind of in a stronger position with the Swiss government

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<v Speaker 6>will obviously be pretty happy that they can then toutless

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<v Speaker 6>to the sort of voting population.

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<v Speaker 3>Bloomberg's Tom Metcalf says terminating the agreement will also save

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<v Speaker 3>ubs millions and fees the Bank report's earnings. Later this month.

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<v Speaker 2>In the US, we have legal developments focused on Perdue Pharma.

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<v Speaker 2>The Supreme Court has blocked a six billion dollar settlement

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<v Speaker 2>with the OxyContin maker. The deal would shield members of

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<v Speaker 2>the Sackler family, who own Purdue, from civil lawsuits over opioids.

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<v Speaker 2>The High Court will hear arguments before the end of

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<v Speaker 2>the year over whether they can proceed. This is Bloomberg Daybreak.

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<v Speaker 2>You're listening to Bloomberg. Don now bora look at some

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<v Speaker 2>of the other stories making news around the world, and

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<v Speaker 2>for that we're joined by Bloomberg's John Tucker.

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<v Speaker 11>Good morning John, and good morning Amy. Lawyers for former

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<v Speaker 11>President of Donald Trump face off against prosecutors today or

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<v Speaker 11>whether he should be prevented from talking about evidence in

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<v Speaker 11>the January sixth case The hearing allows Judge Tanya chuk

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<v Speaker 11>And to hear from both sides about whether she should

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<v Speaker 11>impose restrictions of the former president whether he should be

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<v Speaker 11>barred from talking about the grand jury testimony. Earlier this week,

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<v Speaker 11>at an event in New Hampshire, Trump was insistent he

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<v Speaker 11>won't be silenced.

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<v Speaker 12>I will talk about it.

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<v Speaker 3>I will then not taken away my first amendment.

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<v Speaker 11>A Prosecutors say they worried Trump could intimidate witnesses. It's

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<v Speaker 11>become a defining public health challenge of our time. US

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<v Speaker 11>suicides have risen to a record high. More in this

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<v Speaker 11>report from Bloomberg's Jeff Bellinger, A.

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<v Speaker 13>Centers for Disease Control and Prevention Reports says there were

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<v Speaker 13>forty nine thou four hundred and forty nine suicides last year,

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<v Speaker 13>two point six percent more than in twenty twenty one.

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<v Speaker 13>They increased for most demographic groups. Experts have cited the

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<v Speaker 13>possibility that rising economic and social pressures began weighing more

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<v Speaker 13>heavily on Americans around the beginning of twenty twenty one.

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<v Speaker 13>That's the same same time government and financial supports that

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<v Speaker 13>were implemented during the pandemic were stripped away. The Biden

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<v Speaker 13>Administration last month proposed new rules to improve insurance coverage

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<v Speaker 13>for mental health conditions. Jeff Bellinger, Bloomberg Daybreak.

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<v Speaker 11>Hollywood studios are preparing a new offer for striking writers.

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<v Speaker 11>The most senior officials from eight studios or holding meetings

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<v Speaker 11>alongside smaller committees of executives who are working to settle

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<v Speaker 11>the dispute with writers and a separate strike by actors.

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<v Speaker 11>The writers have been on striketh since May. The Screen

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<v Speaker 11>Actors Guild joined them in July. Tesla facing increased scrutiny

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<v Speaker 11>after a fatal crash in Virginia involving one of the

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<v Speaker 11>company's SUVs that collided with a tractor trailer. The July

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<v Speaker 11>nineteenth collision is the fifty fourth included in the National

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<v Speaker 11>Highway Traffic Safety Administration's probe of advanced driver assistance systems

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<v Speaker 11>like Tesla's autopilot, and California regulators have voted in favor

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<v Speaker 11>of robotaxi operators expanding their paid driverles services in San

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<v Speaker 11>Francis Leco. It's a major milestone toward commercializing the technology.

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<v Speaker 11>Global News twenty four hours a day, Power Buy more

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<v Speaker 11>than twenty seven hundred journalist and the analysts had more

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<v Speaker 11>than one hundred and twenty countries. I'm John Tucker. This

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<v Speaker 11>is Bloomberg Amy.

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<v Speaker 2>All right, thank you, John. Looks time now for our

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<v Speaker 2>Bloomberg Sports update. For that, we bring in John stash

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<v Speaker 2>Hour Amy.

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<v Speaker 12>It's a full weekend of NFL preseason, but two games

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<v Speaker 12>last night in New England, Houston gave the start to

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<v Speaker 12>its top draft pick, quarterback CJ. Stroud. His first NFL

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<v Speaker 12>pass was an interception. Texans did get TD passes from

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<v Speaker 12>Davis Mills and case Keenam Mills as went to rookie

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<v Speaker 12>whiteout Tank Dell, who made a highlight reel catch in

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<v Speaker 12>the end zone that Texans beat the Patriots twenty nine.

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<v Speaker 12>In Seattle, the Vikings led ten up in early Seahawks

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<v Speaker 12>came back to win twenty four to thirteen, couple of

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<v Speaker 12>TD passes for Seattle's backup quarterback juw Lot. There's a

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<v Speaker 12>book out by Billy Walters. He's a well known big

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<v Speaker 12>time gambler, and in it he alleged that Phil Mickelson

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<v Speaker 12>made bets totaling over a billion dollars, that losses over

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<v Speaker 12>one hundred million, and that in twenty twelve Mickelson, while

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<v Speaker 12>a member of the US Ryder Cup team, tried to

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<v Speaker 12>place a four hundred thousand dollars bet on the US

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<v Speaker 12>to win. Walters refused to place it. The US ended

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<v Speaker 12>up losing by one point. Mickelson denies the story. Meanwhile,

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<v Speaker 12>playing the Saint Jude Golf in Memphis and Jordan's speed

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<v Speaker 12>shot sixty three, no bogies, five birdies, an eagle on

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<v Speaker 12>sixteen and he's got a one shot lead. Colin marricaw

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<v Speaker 12>at trails by two. He's pledged one thousand dollars for

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<v Speaker 12>every birdy to aid relief efforts. In Maui baseball, the

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<v Speaker 12>Orioles top the Astros five to four. The Red Sox

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<v Speaker 12>shut out the Royals two to nothing. The Phillies with

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<v Speaker 12>two three run homers and a six to two win

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<v Speaker 12>over the Nationals. John stashaward Bloomberg.

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<v Speaker 14>Sport from coast to coast, from New York to San Francisco,

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<v Speaker 14>Boston to Washington, DC, nationwide on Syrias XAM, the Bloomberg

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<v Speaker 14>Our Business Appened Bloomberg dot Com. This is Bloomberg Daybreak.

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<v Speaker 5>Good morning.

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<v Speaker 3>I'm Nathan Hager. A new tension point maybe opening up

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<v Speaker 3>in US China relations, and we may be seeing it

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<v Speaker 3>now on the presidential campaign trail. President Biden was in

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<v Speaker 3>Park City, Utah, meeting with potential Democratic fundraisers last night,

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<v Speaker 3>and he had some sharp words for the Chinese economy

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<v Speaker 3>and leadership. The President called the slowdown in the world's

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<v Speaker 3>second biggest economy a quote ticking time bomb, and he

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<v Speaker 3>said China is in trouble because when it comes to

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<v Speaker 3>China's leaders, as the President put it, when bad folks

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<v Speaker 3>have problems, they do bad things. Bloomberg's Tom mackenzie spent

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<v Speaker 3>years covering China from Bloomberg's Beijing bureau, so it's good

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<v Speaker 3>to have him on with us this morning for some

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<v Speaker 3>analysis on the president's words.

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<v Speaker 14>Here.

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<v Speaker 3>Of course, Tom, this is hardly the first time we've

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<v Speaker 3>heard this president throw elbows around when it comes to China.

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<v Speaker 3>Where would you say these comments stack up in terms

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<v Speaker 3>of what we've heard from President Biden in the past.

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<v Speaker 15>You're right, it's not the first time, but it does

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<v Speaker 15>leave some slightly scratching the head as to what the

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<v Speaker 15>policy emphasis needs to be from the Biden administration, because,

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<v Speaker 15>of course, on one front, they are sending some senior

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<v Speaker 15>officials and have been doing that. In terms of course

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<v Speaker 15>of the Secretary of State, of course Janet Yellen, the

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<v Speaker 15>treasury sector as well to China too. Beijing to have

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<v Speaker 15>those interactions with their Chinese college to try to, if

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<v Speaker 15>not reset the relationship, then at least find some barriers

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<v Speaker 15>to the tensions and some pars that they can walk

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<v Speaker 15>down together constructive areas of engagement. At the same time,

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<v Speaker 15>you seem to continually get almost on a monthly basis,

0:11:28.920 --> 0:11:32.760
<v Speaker 15>the President himself kind of quite unquote bad mouthing China,

0:11:32.760 --> 0:11:35.280
<v Speaker 15>and in this context he described the economy as being

0:11:35.320 --> 0:11:38.600
<v Speaker 15>like a ticking time bomb, as you mentioned, and Chinese

0:11:38.679 --> 0:11:41.839
<v Speaker 15>leaders as being bad folks. Previously, he's called choojing Ping

0:11:41.920 --> 0:11:45.400
<v Speaker 15>a dictator. He's also made comments about Taiwan that has

0:11:45.480 --> 0:11:48.160
<v Speaker 15>confused and muddied the picture in terms of the US

0:11:48.200 --> 0:11:51.160
<v Speaker 15>stance on that island. And we know the hot spot

0:11:51.320 --> 0:11:54.839
<v Speaker 15>that Taiwan proposes or is potentially the center of when

0:11:54.840 --> 0:11:57.920
<v Speaker 15>it comes to these tensions. So it's the disconnect between

0:11:57.920 --> 0:11:59.559
<v Speaker 15>what we hear from the president and what we hear

0:11:59.559 --> 0:12:01.400
<v Speaker 15>from the to the team, and what it tells us

0:12:01.400 --> 0:12:03.920
<v Speaker 15>about the strategy of the Biden administration visa VI China.

0:12:03.960 --> 0:12:06.160
<v Speaker 3>When it comes to that disconnect tom what does the

0:12:06.240 --> 0:12:09.000
<v Speaker 3>Chinese government pay more attention to? Is it the words

0:12:09.080 --> 0:12:11.040
<v Speaker 3>or is it the actions that we're seeing from the

0:12:11.120 --> 0:12:12.199
<v Speaker 3>US government.

0:12:12.080 --> 0:12:15.719
<v Speaker 15>When we look back at what President ben said characterizing

0:12:15.760 --> 0:12:18.959
<v Speaker 15>Sujinping as a dictator, obviously that went back, that filtered

0:12:18.960 --> 0:12:21.320
<v Speaker 15>back to China. They were asked about that the Foreign Ministry.

0:12:21.520 --> 0:12:24.040
<v Speaker 15>They kind of brushed it off. They continued to allow

0:12:24.240 --> 0:12:28.319
<v Speaker 15>the visits of Janet Yellen to Beijing. We're expecting potentially

0:12:28.760 --> 0:12:30.440
<v Speaker 15>the Head of Trade of course over in the US,

0:12:30.440 --> 0:12:32.880
<v Speaker 15>to be over in Beijing as well in the next

0:12:33.000 --> 0:12:36.240
<v Speaker 15>few weeks. Gina Raimondo to continue conversations on the trade

0:12:36.240 --> 0:12:40.280
<v Speaker 15>front with her Chinese counterparts. So there is a potential

0:12:40.520 --> 0:12:43.440
<v Speaker 15>scenario where Beijing continues to look past this, that they

0:12:43.520 --> 0:12:45.839
<v Speaker 15>read into this, that this is red meat being thrown

0:12:45.880 --> 0:12:48.160
<v Speaker 15>by Biden to the China hawks. He was, of course

0:12:48.200 --> 0:12:51.959
<v Speaker 15>at a fundraiser that this is typical domestic politics at

0:12:51.960 --> 0:12:54.520
<v Speaker 15>play where China becomes the whipping boy in the lead

0:12:54.600 --> 0:12:57.000
<v Speaker 15>up to an election. So there will be some in

0:12:57.040 --> 0:12:59.319
<v Speaker 15>Beijing who look at it through that prism. The risk though,

0:12:59.400 --> 0:13:02.080
<v Speaker 15>is that as this continues, and if it does continue,

0:13:02.559 --> 0:13:05.200
<v Speaker 15>then it's going to lead to just continuing souring of

0:13:05.200 --> 0:13:07.439
<v Speaker 15>those relations and just makes it that much more difficult

0:13:07.480 --> 0:13:09.840
<v Speaker 15>to find those very small areas of compromise that the

0:13:09.880 --> 0:13:10.960
<v Speaker 15>two sides might be looking for.

0:13:11.240 --> 0:13:13.920
<v Speaker 3>And in the context of red meat here we heard

0:13:13.960 --> 0:13:16.960
<v Speaker 3>the President sort of overstate how things are going in

0:13:17.040 --> 0:13:20.320
<v Speaker 3>terms of the Chinese economy, saying that the growth has

0:13:20.360 --> 0:13:24.640
<v Speaker 3>slowed down quite a bit more than it actually is,

0:13:24.920 --> 0:13:28.200
<v Speaker 3>and that there are not necessarily as many people of

0:13:28.240 --> 0:13:31.800
<v Speaker 3>retirement age compared to working age. When it comes to that,

0:13:32.360 --> 0:13:35.160
<v Speaker 3>does that potentially undercut the message that the President's trying

0:13:35.160 --> 0:13:35.520
<v Speaker 3>to send.

0:13:35.720 --> 0:13:38.200
<v Speaker 15>Suddenly, it's worth pointing out that he was factually inaccurate

0:13:38.200 --> 0:13:40.520
<v Speaker 15>when he talked about the number of retirees versus the

0:13:40.600 --> 0:13:43.120
<v Speaker 15>number of people in work. Just got that dead wrong.

0:13:43.440 --> 0:13:46.800
<v Speaker 15>And in terms of the economic forecasts, look, most economists

0:13:46.800 --> 0:13:49.160
<v Speaker 15>think that China's economy is going to grow around five

0:13:49.200 --> 0:13:51.280
<v Speaker 15>percent this year. President Biden said it was growing at

0:13:51.280 --> 0:13:54.720
<v Speaker 15>around two percent. The official data suggests it's growing at

0:13:54.760 --> 0:13:57.760
<v Speaker 15>a much higher level. There is, though, real skepticism about

0:13:57.760 --> 0:14:01.400
<v Speaker 15>the validity of China's data. Nonetheless, you're right he misstated

0:14:01.960 --> 0:14:04.400
<v Speaker 15>and mischaracterized what's happening with the Chinese economy. The broader

0:14:04.400 --> 0:14:06.800
<v Speaker 15>picture is though He's on point in terms of the

0:14:06.840 --> 0:14:09.800
<v Speaker 15>fact that China is facing a number of major headwinds,

0:14:09.840 --> 0:14:13.400
<v Speaker 15>a redhead crossing the Bloomberg terminal on new yuan loans

0:14:13.480 --> 0:14:17.040
<v Speaker 15>in China. Now what this means is basically, far fewer

0:14:17.080 --> 0:14:19.960
<v Speaker 15>people households and corporates and businesses are taking up loans

0:14:20.000 --> 0:14:23.360
<v Speaker 15>because of the business uncertainty, the uncertainty the depth of

0:14:23.440 --> 0:14:26.320
<v Speaker 15>crisis within that economy. You've got the real estate crisis

0:14:26.360 --> 0:14:28.480
<v Speaker 15>back on the front pages again at least of the

0:14:28.480 --> 0:14:31.920
<v Speaker 15>Financial news this week with Country Garden and a reminder

0:14:32.000 --> 0:14:34.280
<v Speaker 15>that that is a sector that accounts for about twenty

0:14:34.280 --> 0:14:37.040
<v Speaker 15>percent of Chinese GDP. Huge problems in terms of real

0:14:37.160 --> 0:14:40.120
<v Speaker 15>estate and property, huge problems in terms of deflation, the

0:14:40.120 --> 0:14:43.760
<v Speaker 15>softness around China's exports and imports. And the President was

0:14:43.840 --> 0:14:47.320
<v Speaker 15>right he talked about unemployment. Youth unemployment at China is

0:14:47.360 --> 0:14:50.000
<v Speaker 15>around twenty percent, at a record level. And there is

0:14:50.040 --> 0:14:53.400
<v Speaker 15>a huge demographic challenge as well. Far fewer people are

0:14:53.440 --> 0:14:56.880
<v Speaker 15>having children, far fewer numbers coming into the workforce. That

0:14:57.120 --> 0:14:59.200
<v Speaker 15>is an issue for Beijing and officials.

0:15:00.680 --> 0:15:03.720
<v Speaker 1>This is Bloomberg Daybreak today, your morning brief on the

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