Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Amy Morris. Here are the
Speaker 2: stories we're following today.
Speaker 3: We begin with the devastation in Hawaii. The death toll
Speaker 3: from the Maui firestorm is now up to at least
Speaker 3: fifty five. As Bloomberg's Ed Baxter reports, the crews are
Speaker 3: calling it search, rescue and recovery.
Speaker 4: As crews go through the burn zone, they still hope
Speaker 4: to find survivors, but it's definitely a grim task. Lieutenant
Speaker 4: Governor Sylvia Luke says. The state is trying to get
Speaker 4: food to the west side of the island, which is
Speaker 4: still without power, and then the state has to look
Speaker 4: into the future.
Speaker 5: Damage to the infrastructure.
Speaker 6: It's not just buildings. I mean, these were small.
Speaker 5: Businesses that invested in Maui.
Speaker 6: These were local residents.
Speaker 4: President Biden is promising a relief package, but this is
Speaker 4: going to be a massive rebuild in San Francisco. I'm
Speaker 4: at Baxter, Bloomberg Daybreak.
Speaker 2: Thank you, Ed. We're also tracking the political turmoil in Ecuador.
Speaker 2: Six Colombians under arrest in the esse fascination of presidential
Speaker 2: candidate Fernando via Visencio. Officials say the suspects are part
Speaker 2: of a drug trafficking organization. Outgoing President gier Mo Lasso
Speaker 2: says the election will go on as scheduled a week
Speaker 2: from Sunday eighth.
Speaker 5: The momental, this moment, before the gravity of the facts
Speaker 5: that shocks Ecuador, I will proceed to sign two decrees,
Speaker 5: the first one declaring the three days of national mourning
Speaker 5: the memory of patriot Fernando Rilo Vicencio Valencio.
Speaker 2: Speaking through an interpreter, Ecuador's president also declared a sixty
Speaker 2: day state of emergency.
Speaker 3: Amy Tensions between the US and China may be on
Speaker 3: the rise again this morning. That is following comments from
Speaker 3: Joe Biden. The president says China's economic problems are a
Speaker 3: quote ticking time bomb, and he referred to Communist party
Speaker 3: leaders as bad folks. Bloomberg. Stephen Engel is in Hong Kong.
Speaker 3: He says the president's comments will have an impact.
Speaker 7: He is speaking to potential donors in Park City. Utah
Speaker 7: is not going to help the narrative that the White
Speaker 7: House is trying to do, and that is we want
Speaker 7: to repair relations with China at a time. Just twenty
Speaker 7: four hours after he signed his executive order limiting investment
Speaker 7: by American companies. You know, I understand this is a
Speaker 7: comment to donors in a politically charged environment, but the
Speaker 7: world is small now. Comments like this go far. China
Speaker 7: will latch onto this and use it to their advantage.
Speaker 3: In Bloomberg, Steven Engel notes it's not the first time
Speaker 3: Biden's made off the Kaffer marks on China. Back in June,
Speaker 3: he like in Chinese president shi Jinping to a dictator.
Speaker 2: Turmoil in China's property market also making news today. Once
Speaker 2: the country's largest developer, Country Garden has now become a
Speaker 2: penny stock. Growing debt concerns have seen Country Garden lose
Speaker 2: ninety three percent of its value, down from a market
Speaker 2: peak of fifty billion dollars in twenty eighteen. Bloomberg's at
Speaker 2: Jil Disis says its fall from Grace could have major
Speaker 2: shock waves.
Speaker 8: We've heard from a few analysts that have worn this
Speaker 8: could be a bigger problem than Evergrand was. We got
Speaker 8: a sense of how bad the depth of the funding
Speaker 8: challenges are at this company yesterday when they said that
Speaker 8: they expected to post a net loss of as much
Speaker 8: as fifty five billion you on for the first half
Speaker 8: of the year. That's like seven point six billion US dollars.
Speaker 8: This is a company that may need to restructure. So yes,
Speaker 8: the problems here are quite sizable.
Speaker 2: Bloomberg'sjaill Lisis says the property crisis is stoking fears of
Speaker 2: financial contagion in Beijing.
Speaker 3: I'm back here in the US. Amy, The latest inflation
Speaker 3: data are in focus. We'll get another read this morning
Speaker 3: with producer prices for July. The report comes after core
Speaker 3: consumer prices posted their smallest consecutive increases in two years.
Speaker 3: Even so, San Francisco FED president Mary Daily tells Yahoo
Speaker 3: Finance the central Bank is still not done fighting inflation.
Speaker 9: It is not a data point that says victory is ours.
Speaker 9: There's still more work to do, and the FED is
Speaker 9: fully committed to resolutely bringing inflation back down to its
Speaker 9: two percent target.
Speaker 3: San Francisco FED chief Daily also says she's not ready
Speaker 3: to project the central Bank's next.
Speaker 2: Move the economy, and Focus oversees a surprise reading on
Speaker 2: growth out of the UK.
Speaker 3: This morning.
Speaker 2: We get details with Bloomberg's uew in pots in London.
Speaker 2: Good morning Ewan, Good.
Speaker 10: Morning Amy and Nathan. The UK's weather was exceptionally hot
Speaker 10: in June, and data out today shows that the economy
Speaker 10: was also much more more than forecasts. Monthly GDP jumped
Speaker 10: zero point five percent, more than double the zero point
Speaker 10: two percent expected by economists. That helped quarterly GDP to
Speaker 10: its biggest increase since the start of last year. Though
Speaker 10: that is a pretty low bar to clear digging into
Speaker 10: the data and manufacturing, construction and consumer spending all outperformed.
Speaker 10: The bunch of eatings will mean the Bank of England
Speaker 10: will be weighing another rate rise in September. In London,
Speaker 10: I'm you in pots Bloomberg daybreak, are you?
Speaker 3: And thankstaying in Europe? Shares of ubs are hired by
Speaker 3: more than four and a half percent this morning. The
Speaker 3: bank has ended a ten billion dollar agreement with the
Speaker 3: Swiss government to cover lasses tied to its takeover of
Speaker 3: Credit sueez and we get more from Bloomberg. For the
Speaker 3: D Senator Tom Metcalf.
Speaker 6: The messaging from the bank is very much this is
Speaker 6: how confident we are on the assets we've required. This
Speaker 6: is a sign of strength. Purely pragmatically. I'm looking at
Speaker 6: this going, why know, would you give up something you've
Speaker 6: already got. As far as they can tell from the release,
Speaker 6: there's nothing they're getting back in return. So you know,
Speaker 6: perhaps it is all about the messaging, but you could
Speaker 6: also say, oh, does this sort of get them more
Speaker 6: kind of in a stronger position with the Swiss government
Speaker 6: will obviously be pretty happy that they can then toutless
Speaker 6: to the sort of voting population.
Speaker 3: Bloomberg's Tom Metcalf says terminating the agreement will also save
Speaker 3: ubs millions and fees the Bank report's earnings. Later this month.
Speaker 2: In the US, we have legal developments focused on Perdue Pharma.
Speaker 2: The Supreme Court has blocked a six billion dollar settlement
Speaker 2: with the OxyContin maker. The deal would shield members of
Speaker 2: the Sackler family, who own Purdue, from civil lawsuits over opioids.
Speaker 2: The High Court will hear arguments before the end of
Speaker 2: the year over whether they can proceed. This is Bloomberg Daybreak.
Speaker 2: You're listening to Bloomberg. Don now bora look at some
Speaker 2: of the other stories making news around the world, and
Speaker 2: for that we're joined by Bloomberg's John Tucker.
Speaker 11: Good morning John, and good morning Amy. Lawyers for former
Speaker 11: President of Donald Trump face off against prosecutors today or
Speaker 11: whether he should be prevented from talking about evidence in
Speaker 11: the January sixth case The hearing allows Judge Tanya chuk
Speaker 11: And to hear from both sides about whether she should
Speaker 11: impose restrictions of the former president whether he should be
Speaker 11: barred from talking about the grand jury testimony. Earlier this week,
Speaker 11: at an event in New Hampshire, Trump was insistent he
Speaker 11: won't be silenced.
Speaker 12: I will talk about it.
Speaker 3: I will then not taken away my first amendment.
Speaker 11: A Prosecutors say they worried Trump could intimidate witnesses. It's
Speaker 11: become a defining public health challenge of our time. US
Speaker 11: suicides have risen to a record high. More in this
Speaker 11: report from Bloomberg's Jeff Bellinger, A.
Speaker 13: Centers for Disease Control and Prevention Reports says there were
Speaker 13: forty nine thou four hundred and forty nine suicides last year,
Speaker 13: two point six percent more than in twenty twenty one.
Speaker 13: They increased for most demographic groups. Experts have cited the
Speaker 13: possibility that rising economic and social pressures began weighing more
Speaker 13: heavily on Americans around the beginning of twenty twenty one.
Speaker 13: That's the same same time government and financial supports that
Speaker 13: were implemented during the pandemic were stripped away. The Biden
Speaker 13: Administration last month proposed new rules to improve insurance coverage
Speaker 13: for mental health conditions. Jeff Bellinger, Bloomberg Daybreak.
Speaker 11: Hollywood studios are preparing a new offer for striking writers.
Speaker 11: The most senior officials from eight studios or holding meetings
Speaker 11: alongside smaller committees of executives who are working to settle
Speaker 11: the dispute with writers and a separate strike by actors.
Speaker 11: The writers have been on striketh since May. The Screen
Speaker 11: Actors Guild joined them in July. Tesla facing increased scrutiny
Speaker 11: after a fatal crash in Virginia involving one of the
Speaker 11: company's SUVs that collided with a tractor trailer. The July
Speaker 11: nineteenth collision is the fifty fourth included in the National
Speaker 11: Highway Traffic Safety Administration's probe of advanced driver assistance systems
Speaker 11: like Tesla's autopilot, and California regulators have voted in favor
Speaker 11: of robotaxi operators expanding their paid driverles services in San
Speaker 11: Francis Leco. It's a major milestone toward commercializing the technology.
Speaker 11: Global News twenty four hours a day, Power Buy more
Speaker 11: than twenty seven hundred journalist and the analysts had more
Speaker 11: than one hundred and twenty countries. I'm John Tucker. This
Speaker 11: is Bloomberg Amy.
Speaker 2: All right, thank you, John. Looks time now for our
Speaker 2: Bloomberg Sports update. For that, we bring in John stash
Speaker 2: Hour Amy.
Speaker 12: It's a full weekend of NFL preseason, but two games
Speaker 12: last night in New England, Houston gave the start to
Speaker 12: its top draft pick, quarterback CJ. Stroud. His first NFL
Speaker 12: pass was an interception. Texans did get TD passes from
Speaker 12: Davis Mills and case Keenam Mills as went to rookie
Speaker 12: whiteout Tank Dell, who made a highlight reel catch in
Speaker 12: the end zone that Texans beat the Patriots twenty nine.
Speaker 12: In Seattle, the Vikings led ten up in early Seahawks
Speaker 12: came back to win twenty four to thirteen, couple of
Speaker 12: TD passes for Seattle's backup quarterback juw Lot. There's a
Speaker 12: book out by Billy Walters. He's a well known big
Speaker 12: time gambler, and in it he alleged that Phil Mickelson
Speaker 12: made bets totaling over a billion dollars, that losses over
Speaker 12: one hundred million, and that in twenty twelve Mickelson, while
Speaker 12: a member of the US Ryder Cup team, tried to
Speaker 12: place a four hundred thousand dollars bet on the US
Speaker 12: to win. Walters refused to place it. The US ended
Speaker 12: up losing by one point. Mickelson denies the story. Meanwhile,
Speaker 12: playing the Saint Jude Golf in Memphis and Jordan's speed
Speaker 12: shot sixty three, no bogies, five birdies, an eagle on
Speaker 12: sixteen and he's got a one shot lead. Colin marricaw
Speaker 12: at trails by two. He's pledged one thousand dollars for
Speaker 12: every birdy to aid relief efforts. In Maui baseball, the
Speaker 12: Orioles top the Astros five to four. The Red Sox
Speaker 12: shut out the Royals two to nothing. The Phillies with
Speaker 12: two three run homers and a six to two win
Speaker 12: over the Nationals. John stashaward Bloomberg.
Speaker 14: Sport from coast to coast, from New York to San Francisco,
Speaker 14: Boston to Washington, DC, nationwide on Syrias XAM, the Bloomberg
Speaker 14: Our Business Appened Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 5: Good morning.
Speaker 3: I'm Nathan Hager. A new tension point maybe opening up
Speaker 3: in US China relations, and we may be seeing it
Speaker 3: now on the presidential campaign trail. President Biden was in
Speaker 3: Park City, Utah, meeting with potential Democratic fundraisers last night,
Speaker 3: and he had some sharp words for the Chinese economy
Speaker 3: and leadership. The President called the slowdown in the world's
Speaker 3: second biggest economy a quote ticking time bomb, and he
Speaker 3: said China is in trouble because when it comes to
Speaker 3: China's leaders, as the President put it, when bad folks
Speaker 3: have problems, they do bad things. Bloomberg's Tom mackenzie spent
Speaker 3: years covering China from Bloomberg's Beijing bureau, so it's good
Speaker 3: to have him on with us this morning for some
Speaker 3: analysis on the president's words.
Speaker 14: Here.
Speaker 3: Of course, Tom, this is hardly the first time we've
Speaker 3: heard this president throw elbows around when it comes to China.
Speaker 3: Where would you say these comments stack up in terms
Speaker 3: of what we've heard from President Biden in the past.
Speaker 15: You're right, it's not the first time, but it does
Speaker 15: leave some slightly scratching the head as to what the
Speaker 15: policy emphasis needs to be from the Biden administration, because,
Speaker 15: of course, on one front, they are sending some senior
Speaker 15: officials and have been doing that. In terms of course
Speaker 15: of the Secretary of State, of course Janet Yellen, the
Speaker 15: treasury sector as well to China too. Beijing to have
Speaker 15: those interactions with their Chinese college to try to, if
Speaker 15: not reset the relationship, then at least find some barriers
Speaker 15: to the tensions and some pars that they can walk
Speaker 15: down together constructive areas of engagement. At the same time,
Speaker 15: you seem to continually get almost on a monthly basis,
Speaker 15: the President himself kind of quite unquote bad mouthing China,
Speaker 15: and in this context he described the economy as being
Speaker 15: like a ticking time bomb, as you mentioned, and Chinese
Speaker 15: leaders as being bad folks. Previously, he's called choojing Ping
Speaker 15: a dictator. He's also made comments about Taiwan that has
Speaker 15: confused and muddied the picture in terms of the US
Speaker 15: stance on that island. And we know the hot spot
Speaker 15: that Taiwan proposes or is potentially the center of when
Speaker 15: it comes to these tensions. So it's the disconnect between
Speaker 15: what we hear from the president and what we hear
Speaker 15: from the to the team, and what it tells us
Speaker 15: about the strategy of the Biden administration visa VI China.
Speaker 3: When it comes to that disconnect tom what does the
Speaker 3: Chinese government pay more attention to? Is it the words
Speaker 3: or is it the actions that we're seeing from the
Speaker 3: US government.
Speaker 15: When we look back at what President ben said characterizing
Speaker 15: Sujinping as a dictator, obviously that went back, that filtered
Speaker 15: back to China. They were asked about that the Foreign Ministry.
Speaker 15: They kind of brushed it off. They continued to allow
Speaker 15: the visits of Janet Yellen to Beijing. We're expecting potentially
Speaker 15: the Head of Trade of course over in the US,
Speaker 15: to be over in Beijing as well in the next
Speaker 15: few weeks. Gina Raimondo to continue conversations on the trade
Speaker 15: front with her Chinese counterparts. So there is a potential
Speaker 15: scenario where Beijing continues to look past this, that they
Speaker 15: read into this, that this is red meat being thrown
Speaker 15: by Biden to the China hawks. He was, of course
Speaker 15: at a fundraiser that this is typical domestic politics at
Speaker 15: play where China becomes the whipping boy in the lead
Speaker 15: up to an election. So there will be some in
Speaker 15: Beijing who look at it through that prism. The risk though,
Speaker 15: is that as this continues, and if it does continue,
Speaker 15: then it's going to lead to just continuing souring of
Speaker 15: those relations and just makes it that much more difficult
Speaker 15: to find those very small areas of compromise that the
Speaker 15: two sides might be looking for.
Speaker 3: And in the context of red meat here we heard
Speaker 3: the President sort of overstate how things are going in
Speaker 3: terms of the Chinese economy, saying that the growth has
Speaker 3: slowed down quite a bit more than it actually is,
Speaker 3: and that there are not necessarily as many people of
Speaker 3: retirement age compared to working age. When it comes to that,
Speaker 3: does that potentially undercut the message that the President's trying
Speaker 3: to send.
Speaker 15: Suddenly, it's worth pointing out that he was factually inaccurate
Speaker 15: when he talked about the number of retirees versus the
Speaker 15: number of people in work. Just got that dead wrong.
Speaker 15: And in terms of the economic forecasts, look, most economists
Speaker 15: think that China's economy is going to grow around five
Speaker 15: percent this year. President Biden said it was growing at
Speaker 15: around two percent. The official data suggests it's growing at
Speaker 15: a much higher level. There is, though, real skepticism about
Speaker 15: the validity of China's data. Nonetheless, you're right he misstated
Speaker 15: and mischaracterized what's happening with the Chinese economy. The broader
Speaker 15: picture is though He's on point in terms of the
Speaker 15: fact that China is facing a number of major headwinds,
Speaker 15: a redhead crossing the Bloomberg terminal on new yuan loans
Speaker 15: in China. Now what this means is basically, far fewer
Speaker 15: people households and corporates and businesses are taking up loans
Speaker 15: because of the business uncertainty, the uncertainty the depth of
Speaker 15: crisis within that economy. You've got the real estate crisis
Speaker 15: back on the front pages again at least of the
Speaker 15: Financial news this week with Country Garden and a reminder
Speaker 15: that that is a sector that accounts for about twenty
Speaker 15: percent of Chinese GDP. Huge problems in terms of real
Speaker 15: estate and property, huge problems in terms of deflation, the
Speaker 15: softness around China's exports and imports. And the President was
Speaker 15: right he talked about unemployment. Youth unemployment at China is
Speaker 15: around twenty percent, at a record level. And there is
Speaker 15: a huge demographic challenge as well. Far fewer people are
Speaker 15: having children, far fewer numbers coming into the workforce. That
Speaker 15: is an issue for Beijing and officials.
Speaker 1: This is Bloomberg Daybreak today, your morning brief on the
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