1 00:00:02,600 --> 00:00:05,320 Speaker 1: Live from the Bloomberg Interact Dave Brooker Studios. This is 2 00:00:05,480 --> 00:00:10,160 Speaker 1: Bloomberg Daybreak for Tuesday July. Coming up this hour, Good 3 00:00:10,240 --> 00:00:13,640 Speaker 1: Nation grapples with gun violence, get again about the holiday weekend. 4 00:00:13,960 --> 00:00:16,439 Speaker 1: There are reports of tariff talks between the US and 5 00:00:16,560 --> 00:00:20,120 Speaker 1: China's A Big Bank strategists warn of a continued growth 6 00:00:20,160 --> 00:00:22,639 Speaker 1: slow down, and City Group says oil could be in 7 00:00:22,720 --> 00:00:25,160 Speaker 1: for a major de fine in event of a recession. 8 00:00:26,079 --> 00:00:28,320 Speaker 1: U n B A star Britney Griner pleads with the 9 00:00:28,360 --> 00:00:32,000 Speaker 1: President Biden could get around of Russia. Plus fireworks lit 10 00:00:32,080 --> 00:00:35,120 Speaker 1: up the sky in New York. I'm Michael Barr more ahead, 11 00:00:35,240 --> 00:00:37,559 Speaker 1: and I'm Scott Zegenberg and the Mets when the Yankees 12 00:00:37,560 --> 00:00:40,080 Speaker 1: were off. Plus enough they on Wimbledon. I'll have that 13 00:00:40,159 --> 00:00:45,600 Speaker 1: more coming up in sports. That's all straight Ahead on 14 00:00:45,720 --> 00:00:48,960 Speaker 1: Bloomberg day Break on Bloomberg eleven three on New York, 15 00:00:49,080 --> 00:00:53,640 Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 16 00:00:53,760 --> 00:00:58,040 Speaker 1: Bloomberg nine sixties and Francisco Syrius x M one nineteen 17 00:00:58,200 --> 00:01:01,120 Speaker 1: and around the world on Bloomberg Radio dot com and 18 00:01:01,240 --> 00:01:08,679 Speaker 1: via the Bloombird Business APT And Good Morning, I'm John Tucker. 19 00:01:09,120 --> 00:01:12,960 Speaker 1: And I'm Karen Moscow us Kendeck's futures are lower this morning. 20 00:01:12,959 --> 00:01:14,840 Speaker 1: We're coming up to six one on Wall Street. Let 21 00:01:14,840 --> 00:01:17,480 Speaker 1: me check the markets every fifteen minutes throughout the trading day. 22 00:01:17,560 --> 00:01:20,200 Speaker 1: On Bloomberg Guess and P Future is down nineteen points 23 00:01:20,200 --> 00:01:23,920 Speaker 1: this morning. Now Future is down one and nasday futures 24 00:01:23,920 --> 00:01:27,240 Speaker 1: down seventy five. Ten year treasury down four thirty seconds. 25 00:01:27,280 --> 00:01:29,360 Speaker 1: You had two point eight nine percent yield on the 26 00:01:29,440 --> 00:01:32,679 Speaker 1: two year two point eight nine percent, the euro one 27 00:01:32,720 --> 00:01:36,120 Speaker 1: point two nine seven against the dollar, the N one 28 00:01:35,760 --> 00:01:38,960 Speaker 1: thirty five point eight four, John, and we'll get to 29 00:01:39,160 --> 00:01:41,280 Speaker 1: more of the markets in a moment. For first, Karen, 30 00:01:41,640 --> 00:01:44,080 Speaker 1: we begin in the Highland Park, Illinois, where a gunman 31 00:01:44,240 --> 00:01:47,840 Speaker 1: opened fire from a rooftop at an Independence Day parade yesterday, 32 00:01:48,360 --> 00:01:51,400 Speaker 1: killing at least six people, wounding at least thirty others. 33 00:01:51,680 --> 00:01:55,280 Speaker 1: Illinois Governor JB. Pritzker addressed the violence at a news conference. 34 00:01:55,760 --> 00:02:00,240 Speaker 1: I'm furious. I'm furious that yet more innocent lives were 35 00:02:00,280 --> 00:02:03,920 Speaker 1: taken by gun violence. I'm curious that their loved ones 36 00:02:03,960 --> 00:02:07,760 Speaker 1: are forever broken by what took place today. I'm curious 37 00:02:07,880 --> 00:02:12,760 Speaker 1: that children and their families have been traumatized Illinois Gavin J. V. 38 00:02:12,840 --> 00:02:16,720 Speaker 1: Pritsker spoke to President Biden after the incident. The President 39 00:02:16,800 --> 00:02:19,240 Speaker 1: also addressed the tragedy, saying more needs to be done 40 00:02:19,240 --> 00:02:22,000 Speaker 1: to curb gun violence. We got a lot more work 41 00:02:22,040 --> 00:02:24,200 Speaker 1: to do. We got to get this under control. A 42 00:02:24,360 --> 00:02:26,480 Speaker 1: person of interest in the shooting was taken to the 43 00:02:26,520 --> 00:02:30,000 Speaker 1: custody late yesterday after a lengthy man hunt and the 44 00:02:30,000 --> 00:02:32,840 Speaker 1: community of Highland Park. There was also a gun violence 45 00:02:33,000 --> 00:02:36,600 Speaker 1: in Pennsylvania last night to police officers shot in Philadelphia 46 00:02:36,919 --> 00:02:40,800 Speaker 1: during festivities held near the city's Museum of Art. Philadelphia 47 00:02:40,840 --> 00:02:45,240 Speaker 1: Police Commissioner Daniel out Law says the shooters motives were unclear. 48 00:02:45,639 --> 00:02:49,320 Speaker 1: We don't know if this was ricochet from celebratory gunfire. 49 00:02:49,440 --> 00:02:52,080 Speaker 1: We don't know if this was intentional. We don't know 50 00:02:52,120 --> 00:02:55,000 Speaker 1: if this was someone taking a shot intentionally at these officers. 51 00:02:55,280 --> 00:02:58,600 Speaker 1: Police Commissioner danielle out Along, saying the officers have been 52 00:02:58,639 --> 00:03:02,040 Speaker 1: treated and released. I'm not turning to Washington. John the 53 00:03:02,040 --> 00:03:05,280 Speaker 1: Biden administration could roll back some tariffs imposed by former 54 00:03:05,320 --> 00:03:08,800 Speaker 1: President Shrump. Senior US and Chinese officials discussed the matter 55 00:03:08,880 --> 00:03:10,960 Speaker 1: last night and what the White House calls candid and 56 00:03:11,080 --> 00:03:15,440 Speaker 1: substitutive discussions. There are expectations that the administration could remove 57 00:03:15,600 --> 00:03:18,880 Speaker 1: levies to help these price increases on consumers became more 58 00:03:18,880 --> 00:03:22,200 Speaker 1: In this story from Bloomberg's Bruce Einhorn, people familiar to 59 00:03:22,200 --> 00:03:25,200 Speaker 1: say that the White House has actually asked companies to 60 00:03:25,320 --> 00:03:28,680 Speaker 1: make a commitment that if the US agrees to ease 61 00:03:28,720 --> 00:03:31,640 Speaker 1: some of these tariffs, that companies will then pass those 62 00:03:31,680 --> 00:03:36,520 Speaker 1: savings through two consumers. But people familiar say that executives 63 00:03:36,560 --> 00:03:38,120 Speaker 1: of these companies said, well, no, we're not going to 64 00:03:38,200 --> 00:03:41,160 Speaker 1: make that kind of commitment, and Bloomberg spruces. Einhorn reports 65 00:03:41,160 --> 00:03:43,480 Speaker 1: there are currently US tariffs on hundreds of billions of 66 00:03:43,520 --> 00:03:46,440 Speaker 1: dollars in Chinese goods. However, senior members of the Biden 67 00:03:46,440 --> 00:03:50,160 Speaker 1: administration appear divided about the need to lift levies. Well, 68 00:03:50,200 --> 00:03:54,720 Speaker 1: initially futures were acted positively to these potentially lifting tariffs, 69 00:03:54,720 --> 00:03:57,600 Speaker 1: they've since erased those games still that it was good 70 00:03:57,600 --> 00:04:01,320 Speaker 1: for said about According to dpak Mara, who's investments at 71 00:04:01,400 --> 00:04:05,480 Speaker 1: Commercial Bank of Dubai, it's the recognition that the government 72 00:04:05,640 --> 00:04:08,080 Speaker 1: is very conscious that they need to act on the 73 00:04:08,280 --> 00:04:12,840 Speaker 1: supply side of the inflation issue. Because the FED has 74 00:04:12,920 --> 00:04:15,880 Speaker 1: been slamming the brakes on the demand side, whereas the 75 00:04:15,960 --> 00:04:18,760 Speaker 1: real issue is the supply. So I think trying to 76 00:04:18,960 --> 00:04:22,840 Speaker 1: fix that issue is giving the markets a bit of 77 00:04:22,960 --> 00:04:26,760 Speaker 1: an ease and comfort that you know, we are finally 78 00:04:26,800 --> 00:04:30,040 Speaker 1: addressing the problem. Where where it is Commercial Bank of 79 00:04:30,120 --> 00:04:32,960 Speaker 1: device depect mirrors is he expects the FED to keep 80 00:04:33,040 --> 00:04:36,520 Speaker 1: hiking rates and slam the brakes on demand. Turning to 81 00:04:36,560 --> 00:04:39,360 Speaker 1: the economic outlook, John one Goldman SAX strategist, said the 82 00:04:39,400 --> 00:04:43,240 Speaker 1: base case expectation is not for a US recession to 83 00:04:43,400 --> 00:04:46,239 Speaker 1: great gil As, a macro strategist for Global fixed income 84 00:04:46,279 --> 00:04:49,240 Speaker 1: at Goldman Saccess, said management. She says, we may get 85 00:04:49,279 --> 00:04:53,080 Speaker 1: a recession, but opportunity for investment will depend on its magnitude. 86 00:04:53,640 --> 00:04:56,880 Speaker 1: We do expect continued monkey tightening. You may well see 87 00:04:56,920 --> 00:05:00,680 Speaker 1: a technical recession, but what really matteres you're thinking about 88 00:05:00,680 --> 00:05:04,200 Speaker 1: the investment landscape and opportunities and fixing conceptus is the 89 00:05:04,440 --> 00:05:09,680 Speaker 1: magnitude And instead of the characteristics of that recession gone 90 00:05:09,720 --> 00:05:13,000 Speaker 1: macro strategist, your pretty Gil expects growth to level off 91 00:05:13,080 --> 00:05:16,520 Speaker 1: as rates head higher. Another major bank painting a grim 92 00:05:16,640 --> 00:05:19,640 Speaker 1: picture for the economy, and Bloomberg's reneily Young joins us 93 00:05:19,720 --> 00:05:22,600 Speaker 1: Live with that story really the good morning, Good Morning John. 94 00:05:22,720 --> 00:05:25,719 Speaker 1: With the recent drop in bond yields, investors are betting 95 00:05:25,800 --> 00:05:28,640 Speaker 1: the Fed may turn less hawkish if inflation peaks in 96 00:05:28,720 --> 00:05:31,880 Speaker 1: the second half of the year, but Morgan Stanley says 97 00:05:31,960 --> 00:05:34,680 Speaker 1: any drop in interest rates should be interpreted as more 98 00:05:34,720 --> 00:05:37,960 Speaker 1: of a growth concern rather than the Fed giving relief. 99 00:05:38,480 --> 00:05:42,320 Speaker 1: Strategists there say if macro economic data do not confirm 100 00:05:42,360 --> 00:05:45,760 Speaker 1: a recession, than equity markets could rally further. But if 101 00:05:45,839 --> 00:05:48,120 Speaker 1: growth were to pull back, they say the S and 102 00:05:48,160 --> 00:05:51,960 Speaker 1: P five may sink to three thousand points. That's about 103 00:05:53,000 --> 00:05:56,280 Speaker 1: below its latest clothes Live in New York. I'm real 104 00:05:56,360 --> 00:05:58,520 Speaker 1: need a young Bloomberg daybreak. I need to thank you. 105 00:05:58,640 --> 00:06:01,040 Speaker 1: Looking at oil now, city Girl was warning that crude 106 00:06:01,080 --> 00:06:03,400 Speaker 1: could collapse to sixty five dollars a barrel by the 107 00:06:03,520 --> 00:06:05,599 Speaker 1: end of this year and slumped to forty five dollars 108 00:06:05,680 --> 00:06:07,960 Speaker 1: by the end of next year. That's if we get 109 00:06:08,080 --> 00:06:11,120 Speaker 1: hit by a demand crippling recession. The outlook is based 110 00:06:11,160 --> 00:06:13,680 Speaker 1: on the absence of any intervention by OPEQ and checking 111 00:06:13,760 --> 00:06:16,400 Speaker 1: prices now, nine X screwed oil of a quarter percent 112 00:06:16,720 --> 00:06:19,120 Speaker 1: at a hundred eight dollars seventy cents of barrel. Brent 113 00:06:19,360 --> 00:06:22,160 Speaker 1: is down one percent at a hundred twelve dollars thirty 114 00:06:22,200 --> 00:06:28,360 Speaker 1: five cents. Overseas, European equities have turned lower andrew some 115 00:06:28,560 --> 00:06:32,520 Speaker 1: initial optimism. The earl this morning, weakening to the lowest 116 00:06:32,600 --> 00:06:36,120 Speaker 1: level against the dollars since two thousand three. Meantime, at Asia, 117 00:06:36,200 --> 00:06:40,440 Speaker 1: stocks climbed overnight and John futures are lower. SNP future 118 00:06:40,520 --> 00:06:43,120 Speaker 1: is down about seventeen points a Dow futures down one 119 00:06:43,560 --> 00:06:47,000 Speaker 1: twenty seven and NASTAC futures down sixty four. The decks 120 00:06:47,040 --> 00:06:50,200 Speaker 1: in Germany is down one percent. Ten year treasury down 121 00:06:50,279 --> 00:06:53,200 Speaker 1: five thirty seconds, the yield two point nine zero percent 122 00:06:53,600 --> 00:06:55,560 Speaker 1: and the yield on the two year two point eight 123 00:06:55,800 --> 00:06:58,960 Speaker 1: nine percent. Comes Gold is higher, up about a tenth 124 00:06:59,000 --> 00:07:02,320 Speaker 1: of a percent, and one thousand, eight hundred three dollars 125 00:07:03,040 --> 00:07:06,920 Speaker 1: announced the euro one point two nine six against the dollar, 126 00:07:07,000 --> 00:07:09,800 Speaker 1: and checking bitcoin, it is down a tenth of a 127 00:07:09,960 --> 00:07:13,920 Speaker 1: percent at nineteen thousand seven twenty dollars. Straight ahead, your 128 00:07:13,960 --> 00:07:17,640 Speaker 1: latest local headlines plus a check of sports, and this 129 00:07:18,280 --> 00:07:25,360 Speaker 1: is Bloomberg. Thanks Karen six wall Street, and that's time 130 00:07:25,400 --> 00:07:27,160 Speaker 1: to bring in Michael Barr and I find out what 131 00:07:27,280 --> 00:07:30,480 Speaker 1: else is going on a New York and around the world. Yeah, 132 00:07:30,560 --> 00:07:32,960 Speaker 1: thank you very much. Siria was a fireworks show that 133 00:07:33,080 --> 00:07:39,560 Speaker 1: did not disappoint. About three million people watched the Macy's 134 00:07:39,600 --> 00:07:42,360 Speaker 1: fireworks show over the East River in New York City 135 00:07:42,480 --> 00:07:45,120 Speaker 1: last night. The inn my p D said deployment was 136 00:07:45,320 --> 00:07:49,280 Speaker 1: robust at the show that went off peacefully. W NBA 137 00:07:49,400 --> 00:07:52,880 Speaker 1: player Brittney Grinder wrote to President Joe Biden, pleading with 138 00:07:53,000 --> 00:07:57,280 Speaker 1: him to Bringer and other Americans detained in Russia back home. 139 00:07:57,800 --> 00:08:00,880 Speaker 1: According to the Associated Press, Grinder told Biden in the 140 00:08:01,000 --> 00:08:04,480 Speaker 1: letter that she is terrified might be here forever. A 141 00:08:04,560 --> 00:08:07,280 Speaker 1: representative for Grinder delivered the letter to the White House. 142 00:08:07,920 --> 00:08:11,520 Speaker 1: After more than four months of ferocious fighting, Russia claimed 143 00:08:11,560 --> 00:08:15,320 Speaker 1: full control over one of the two provinces in Ukraine's 144 00:08:15,360 --> 00:08:19,920 Speaker 1: eastern industrial heartland. However, there are signs Russia is sustaining 145 00:08:19,960 --> 00:08:24,240 Speaker 1: heavy losses. Another step closer to joining NATO, Finland and 146 00:08:24,440 --> 00:08:27,840 Speaker 1: Sweden foreign ministers are in Brussels today for the signing 147 00:08:27,880 --> 00:08:32,559 Speaker 1: of ratification protocols. NATO Secretary General Yen Stoltenberg opened the 148 00:08:32,600 --> 00:08:37,240 Speaker 1: meeting in Brussels Diday. We will formally sign the propicals 149 00:08:37,320 --> 00:08:43,000 Speaker 1: of accession. This marks the start of the gratification courses NATOS. 150 00:08:43,040 --> 00:08:47,120 Speaker 1: Jen Stoltenberg called today historic for Finland, Sweden and NATO. 151 00:08:47,520 --> 00:08:51,280 Speaker 1: The federal judges ruled in favor of three major US 152 00:08:51,360 --> 00:08:54,200 Speaker 1: drug distributors in a two and a half billion dollar 153 00:08:54,360 --> 00:08:58,319 Speaker 1: lawsuit which had accused them of causing an opioid crisis 154 00:08:58,360 --> 00:09:00,959 Speaker 1: in the West Virginia County. The suit said, and the 155 00:09:01,080 --> 00:09:05,440 Speaker 1: cussing maryor Source, Bergen and Cardinal Health distributed eighty one 156 00:09:05,520 --> 00:09:08,960 Speaker 1: million pills over eight years in Cabell County, ravaged by 157 00:09:09,040 --> 00:09:12,800 Speaker 1: opioid addiction. Attorney Rusty Webb represents the county and the 158 00:09:12,840 --> 00:09:16,520 Speaker 1: city of Huntington's Naturally, we're extremely disappointed for the city 159 00:09:16,559 --> 00:09:22,240 Speaker 1: of Huntington, who's had to undergo so much devastation. Attorney 160 00:09:22,320 --> 00:09:25,160 Speaker 1: Rusty Webb says Huntington and Cabell County had asked for 161 00:09:25,240 --> 00:09:28,400 Speaker 1: two point six million dollars were so called abatement. That 162 00:09:28,600 --> 00:09:32,520 Speaker 1: money would have provided for drug education, prevention, treatment, and 163 00:09:32,640 --> 00:09:36,079 Speaker 1: law enforcement for the next fifteen years. Global News twenty 164 00:09:36,120 --> 00:09:39,040 Speaker 1: four hours a day on air and on Bloomberg Quicktake, 165 00:09:39,400 --> 00:09:42,360 Speaker 1: powered by more than twenty seven hundred journalists and analysts. 166 00:09:42,440 --> 00:09:44,920 Speaker 1: More than a hundred twenty countries. Michael Barr and this 167 00:09:45,160 --> 00:09:51,880 Speaker 1: is Bloomberg, John Michael, thank you, as how six ten 168 00:09:52,000 --> 00:09:54,840 Speaker 1: on Wall Street any time to the Bloomberg Sports Update. 169 00:09:54,960 --> 00:09:59,079 Speaker 1: Here's Scott Seidenberg. Thanks John. Taiwan Walker struck out nine 170 00:09:59,280 --> 00:10:01,480 Speaker 1: in a six sinnings as the Mets beat the Reds 171 00:10:01,559 --> 00:10:05,920 Speaker 1: yesterday seven four. Brandon Nimo and Francisco Lindor both homeward 172 00:10:05,960 --> 00:10:08,679 Speaker 1: off Red starter Hunter Green, who has now allowed a 173 00:10:08,840 --> 00:10:12,160 Speaker 1: major league leading twenty two home runs this season. The 174 00:10:12,240 --> 00:10:15,360 Speaker 1: Mets are the first n L team to fifty wins. 175 00:10:15,559 --> 00:10:18,719 Speaker 1: Brandon Nimo on the team's first half success, been a 176 00:10:18,760 --> 00:10:21,040 Speaker 1: good first half. I don't think anybody would complain about it. 177 00:10:21,640 --> 00:10:23,240 Speaker 1: But we also know that we have places that we 178 00:10:23,960 --> 00:10:26,920 Speaker 1: can get better and that, you know, opportunities that, um, 179 00:10:27,000 --> 00:10:29,120 Speaker 1: we haven't taken a mantage of, so to know that 180 00:10:29,200 --> 00:10:32,520 Speaker 1: there's more in the tank, especially with Jake and Max 181 00:10:32,600 --> 00:10:35,040 Speaker 1: coming back, and Max Scherzer comes off the i L 182 00:10:35,160 --> 00:10:38,040 Speaker 1: to make the start tonight his first since leaving the 183 00:10:38,120 --> 00:10:42,080 Speaker 1: game back on May eighteen. The Yankees were off yesterday. Tonight, 184 00:10:42,200 --> 00:10:45,959 Speaker 1: Jamison Tyone faces his former team, the Pirates Tennis That 185 00:10:46,040 --> 00:10:48,920 Speaker 1: Wimbledon rap on the Doll and Nick Curios advanced to 186 00:10:48,960 --> 00:10:52,760 Speaker 1: the men's quarter finals and a fourth of July tradition, 187 00:10:52,880 --> 00:10:56,520 Speaker 1: as Joey Chestnut wins his fifteenth Nathan's Hot Dog Eating 188 00:10:56,559 --> 00:11:01,480 Speaker 1: Contest despite being interrupted by a protester way through. Chestnut 189 00:11:01,559 --> 00:11:05,199 Speaker 1: down sixty three dugs to win his fifteenth title in 190 00:11:05,240 --> 00:11:09,720 Speaker 1: the last sixteen years. I'm Scott Zadinger with Bloomberg Sports. 191 00:11:10,240 --> 00:11:13,400 Speaker 1: John all right, thanks Scott, and ahead of the cash 192 00:11:13,480 --> 00:11:15,880 Speaker 1: open on Wall Street, futures in the red right now 193 00:11:16,000 --> 00:11:19,319 Speaker 1: down futures down one nine points, that's the decline of 194 00:11:19,360 --> 00:11:22,520 Speaker 1: four tens of a percent. SMP even in futures down 195 00:11:22,640 --> 00:11:25,360 Speaker 1: fourteen that's down four tens of a percent. But as 196 00:11:25,440 --> 00:11:28,640 Speaker 1: the futures right now are fifty six points lower, that 197 00:11:28,920 --> 00:11:32,679 Speaker 1: is down half a percent. Right now, the Wall Street 198 00:11:32,760 --> 00:11:38,000 Speaker 1: fear gage volatility and that's still well below thirty slightly 199 00:11:38,080 --> 00:11:40,719 Speaker 1: elevated though this morning. And as we look at the 200 00:11:40,800 --> 00:11:44,040 Speaker 1: four in exchange this morning, the yuro ever closer to 201 00:11:44,160 --> 00:11:46,800 Speaker 1: parody with the dollar one oh two nineties six right 202 00:11:46,840 --> 00:11:49,959 Speaker 1: now that is down one point two percent against the 203 00:11:50,240 --> 00:11:53,400 Speaker 1: green back, and the dollar d X Y index dollar 204 00:11:53,440 --> 00:11:58,160 Speaker 1: continues its strengthening path right now close to one percent 205 00:11:59,120 --> 00:12:07,480 Speaker 1: you're listening to Bloomberg day Break, and just ahead on 206 00:12:07,559 --> 00:12:12,120 Speaker 1: Bloomberg Daybreak, US markets reopen after capping eleven declines in 207 00:12:12,200 --> 00:12:15,160 Speaker 1: the past thirteen weeks. We'll be joined by Jeffrey U, 208 00:12:15,400 --> 00:12:18,800 Speaker 1: senior market strategist at B and Y Melon. He'll weigh 209 00:12:18,880 --> 00:12:24,520 Speaker 1: in on the markets, markets, headlines, and breaking news twenty 210 00:12:24,559 --> 00:12:27,400 Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg 211 00:12:27,440 --> 00:12:31,480 Speaker 1: Business Out and at Bloomberg Victape, She's a Bloomberg Business 212 00:12:31,559 --> 00:12:40,360 Speaker 1: Lash and I'm Karen Moscow. US dot index, futures and 213 00:12:40,400 --> 00:12:43,480 Speaker 1: European equities are falling as concerned over the possibility of 214 00:12:43,520 --> 00:12:47,040 Speaker 1: our recession. Always optimism over at US China talks aimed 215 00:12:47,040 --> 00:12:49,880 Speaker 1: at teriff reductions, the heroes at a twenty year low. 216 00:12:49,920 --> 00:12:52,520 Speaker 1: We checked the markets every fifteen minutes throughout the trading day. 217 00:12:52,679 --> 00:12:56,160 Speaker 1: On Bloomberg, SNP future is down seventeen points this morning, 218 00:12:56,240 --> 00:12:58,720 Speaker 1: Down futures down a hundred twenty eight, and NASTAG futures 219 00:12:58,760 --> 00:13:01,840 Speaker 1: down sixty seven. The decks in Germany's down nine tens 220 00:13:01,880 --> 00:13:04,760 Speaker 1: of percent, the ten year treasury down six thirty seconds, 221 00:13:05,040 --> 00:13:07,240 Speaker 1: Hill two point nine zero percent. They yield him a 222 00:13:07,320 --> 00:13:10,240 Speaker 1: two year two point eight nine percent, nine X screwed 223 00:13:10,320 --> 00:13:12,600 Speaker 1: oil it's it'll change in a hundred eight dollars forty 224 00:13:12,679 --> 00:13:14,920 Speaker 1: nine cents of barrel break is moving lower down one 225 00:13:14,920 --> 00:13:17,480 Speaker 1: point two percent and a hundred twelve dollars eighteen cents. 226 00:13:17,920 --> 00:13:20,400 Speaker 1: Comic school This it'll change and one thousand, eight hundred 227 00:13:20,440 --> 00:13:23,000 Speaker 1: two dollars announced. The euro one point oh three oh 228 00:13:23,080 --> 00:13:25,280 Speaker 1: one against the dollar, British found one point two zero 229 00:13:25,440 --> 00:13:27,960 Speaker 1: three four and the end one thirty five point nine five. 230 00:13:28,280 --> 00:13:30,360 Speaker 1: Look at a bitcoin, it's down about a quarter percent 231 00:13:30,480 --> 00:13:34,240 Speaker 1: at nineteen thousand, seven hundred dollars. That's a bloomberg business floush. 232 00:13:34,280 --> 00:13:36,400 Speaker 1: Now here's Michael Barr with more on what's going on 233 00:13:36,520 --> 00:13:39,439 Speaker 1: around the world. Muchael, thank you very much, Karen. Police 234 00:13:39,480 --> 00:13:42,480 Speaker 1: say a gunman on a rooftop opened fire on an 235 00:13:42,559 --> 00:13:46,320 Speaker 1: Independence Day parade in suburban Chicago, killing at least six people, 236 00:13:46,760 --> 00:13:50,040 Speaker 1: wounding at least thirty, and sending hundreds of marchers, parents 237 00:13:50,120 --> 00:13:54,439 Speaker 1: with strollers and children on bicycles fleeing in terror. Police 238 00:13:54,480 --> 00:13:56,600 Speaker 1: and Highland Parks say a person of interest, twenty two 239 00:13:56,679 --> 00:14:00,199 Speaker 1: year old Robert Bobby Cremo, is now in cust in 240 00:14:00,240 --> 00:14:03,480 Speaker 1: connection to the shooting in Philadelphia two police officers were 241 00:14:03,520 --> 00:14:06,440 Speaker 1: shot and Moon did during Fourth of July festivities held 242 00:14:06,559 --> 00:14:09,680 Speaker 1: near the city's Museum of Art. So far, new arrests 243 00:14:09,760 --> 00:14:12,720 Speaker 1: have been made. Baseball, the Met's one, the Red Sox, 244 00:14:12,800 --> 00:14:16,120 Speaker 1: Orioles and A's also won. The Nationals lost along with 245 00:14:16,200 --> 00:14:18,800 Speaker 1: the giants. Global News twenty four hours a day on 246 00:14:18,920 --> 00:14:22,400 Speaker 1: air and on Bloomberg Quick Take, powered by more than 247 00:14:23,200 --> 00:14:25,960 Speaker 1: hundred journalists and analyists more than a hundred twenty countries. 248 00:14:26,400 --> 00:14:29,120 Speaker 1: Michael Barr and this is Bloomberg, Jo, Michael, thank you 249 00:14:29,240 --> 00:14:31,600 Speaker 1: very much, six ninths you know well Street. We are 250 00:14:31,720 --> 00:14:36,000 Speaker 1: live in the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. 251 00:14:36,480 --> 00:14:40,480 Speaker 1: The US markets reopening today this Tuesday morning, after capping 252 00:14:40,720 --> 00:14:43,800 Speaker 1: eleventh of clients in the past thirteen weeks. Let's try 253 00:14:43,880 --> 00:14:45,520 Speaker 1: to get you set up at the trading day ahead 254 00:14:45,520 --> 00:14:48,680 Speaker 1: with Jeffrey u, a senior market strategist at B and 255 00:14:49,080 --> 00:14:54,440 Speaker 1: Y Melod Jeff, have recession fears replaced the inflation fears 256 00:14:54,800 --> 00:14:59,080 Speaker 1: at this at this stage of the economy, um it 257 00:14:59,200 --> 00:15:02,560 Speaker 1: toutainly feels boining. So and the wakers a lot of 258 00:15:02,640 --> 00:15:06,640 Speaker 1: survey data and hard data as well, and globally I 259 00:15:06,720 --> 00:15:09,280 Speaker 1: think that really is taking over. Yes, we do have 260 00:15:09,400 --> 00:15:12,760 Speaker 1: some pockets of optimism, such as China trying to reopen 261 00:15:13,160 --> 00:15:15,880 Speaker 1: and the tariffs and news, but I don't think they're 262 00:15:15,880 --> 00:15:18,600 Speaker 1: getting the benefits to doubt by markets right now with 263 00:15:18,840 --> 00:15:22,360 Speaker 1: respect of the tariffs and Chinese good's possibly being rolled back. 264 00:15:22,800 --> 00:15:27,880 Speaker 1: Could that practically ease inflation pressures? I think it'll take 265 00:15:27,960 --> 00:15:30,560 Speaker 1: time for it to transmit, and a bearing in mind 266 00:15:30,680 --> 00:15:33,040 Speaker 1: in terms of the policy response, it's not about inflation 267 00:15:33,120 --> 00:15:37,560 Speaker 1: pressures that say, it's about inflation expectations, so tariffs and 268 00:15:38,520 --> 00:15:43,160 Speaker 1: of people. It will take time for any tariff relief 269 00:15:43,520 --> 00:15:49,479 Speaker 1: to um to be translating into cheaper prices the local supermarket, 270 00:15:49,760 --> 00:15:52,240 Speaker 1: I think, whereas if people see their gas fights every 271 00:15:52,240 --> 00:15:55,080 Speaker 1: single day, so I think that's where tariffs will help 272 00:15:55,160 --> 00:15:57,960 Speaker 1: over the medium term. I think that people need short 273 00:15:58,040 --> 00:16:01,560 Speaker 1: term expectations management on inflation and otherwise they step back 274 00:16:01,600 --> 00:16:03,200 Speaker 1: on their spending, and I don't think we're going to 275 00:16:03,240 --> 00:16:06,040 Speaker 1: see that at the time being with a concern about 276 00:16:06,240 --> 00:16:09,520 Speaker 1: possible recession ahead. Does this alter the course a hand 277 00:16:09,600 --> 00:16:13,520 Speaker 1: for the Federal Reserve? No, we don't believe so, because 278 00:16:13,760 --> 00:16:18,360 Speaker 1: there's a difference between expecting a recession in and of 279 00:16:18,440 --> 00:16:21,760 Speaker 1: itself versus a recession and starting to drag down prices. 280 00:16:21,840 --> 00:16:24,440 Speaker 1: That we still believe that a lot of the supply issues, 281 00:16:24,520 --> 00:16:27,120 Speaker 1: the labor be a good if those are the structural 282 00:16:27,160 --> 00:16:30,320 Speaker 1: things in driving inflation. There's no guarantee right now that 283 00:16:30,920 --> 00:16:33,560 Speaker 1: slower growth or even a recession can bring down inflation. 284 00:16:33,880 --> 00:16:36,160 Speaker 1: And with that in mind, it's still imperative. And if 285 00:16:36,160 --> 00:16:38,640 Speaker 1: they be said to keep its current course, and and 286 00:16:38,680 --> 00:16:40,680 Speaker 1: if anything, you don't think the markets are appreciating how 287 00:16:40,760 --> 00:16:42,520 Speaker 1: high they can still go. Well, is it a supply 288 00:16:42,720 --> 00:16:46,080 Speaker 1: or demanded issue with respect to inflation. It's sort of 289 00:16:46,080 --> 00:16:47,840 Speaker 1: supply issue, and we see the bulk of it as 290 00:16:48,040 --> 00:16:52,920 Speaker 1: a supply issue that cannot be um adjusted easily. And 291 00:16:53,080 --> 00:16:55,800 Speaker 1: even if we do have demand come off, and we 292 00:16:55,840 --> 00:16:57,600 Speaker 1: need to look at the distribution of demand, you know, 293 00:16:57,640 --> 00:16:59,840 Speaker 1: where is the mond coming up? Will demand come off 294 00:16:59,880 --> 00:17:03,680 Speaker 1: the areas you know which are impacting a supply? So? 295 00:17:04,240 --> 00:17:06,640 Speaker 1: Can can the state afford to take that chance? Basically 296 00:17:06,680 --> 00:17:08,640 Speaker 1: at this point and we just don't think it's fair yet. 297 00:17:08,640 --> 00:17:10,560 Speaker 1: If you look at from the pricing components in within 298 00:17:10,640 --> 00:17:13,080 Speaker 1: the I SMS, for example, there's still very very firm 299 00:17:14,280 --> 00:17:18,120 Speaker 1: with respect to the Wall Street sphere gage. The VIX 300 00:17:18,520 --> 00:17:23,760 Speaker 1: still right now below thirty eight oh seven, just slightly elevated. 301 00:17:24,160 --> 00:17:26,719 Speaker 1: We're told that it needs to go somewhere around forty 302 00:17:26,840 --> 00:17:32,080 Speaker 1: before we see capitulation in equity markets. Your view, I'm 303 00:17:32,080 --> 00:17:33,960 Speaker 1: not sure I agree with that. You know, you don't 304 00:17:34,040 --> 00:17:39,639 Speaker 1: really have to have capitulation in a in a meltdown manner, right, 305 00:17:39,720 --> 00:17:42,000 Speaker 1: so you can have a sudden capitulation or you can 306 00:17:42,080 --> 00:17:44,919 Speaker 1: have slow attrition based capitulations. I think those two are 307 00:17:44,920 --> 00:17:47,480 Speaker 1: separate issues. If there's just going to be steady reduction 308 00:17:47,760 --> 00:17:50,800 Speaker 1: whereby the flow of let's say, in a freshly available 309 00:17:50,840 --> 00:17:52,760 Speaker 1: in less and cash fanball that just goes into bonds 310 00:17:52,960 --> 00:17:55,240 Speaker 1: and rather than into equity, you just don't have the 311 00:17:55,280 --> 00:17:58,400 Speaker 1: Pikes momentum to a support the levels in the SMP 312 00:17:58,600 --> 00:18:01,920 Speaker 1: which are necessary. So um, that can happen, you know, 313 00:18:02,119 --> 00:18:05,720 Speaker 1: without a sudden unwinding of existing of them, of the 314 00:18:05,800 --> 00:18:08,760 Speaker 1: existing positions. And also in a beerying in mind, there's 315 00:18:09,040 --> 00:18:11,320 Speaker 1: not a whole lot of leverage in the system you 316 00:18:11,400 --> 00:18:13,520 Speaker 1: need that collapse and for a rise in the victor 317 00:18:13,720 --> 00:18:17,879 Speaker 1: as well, um and the overall centers. You know, and 318 00:18:17,960 --> 00:18:20,600 Speaker 1: there is a lot of liquidity available yes, said is 319 00:18:20,640 --> 00:18:23,000 Speaker 1: going to start to passively allow its balance you to 320 00:18:23,080 --> 00:18:25,359 Speaker 1: come up. There will be a liquidity withdrawal, but it's 321 00:18:25,400 --> 00:18:28,000 Speaker 1: not actively happening in a way which could polatility higher 322 00:18:28,160 --> 00:18:30,680 Speaker 1: if they can switch to foreign exchange. Just briefly to 323 00:18:30,840 --> 00:18:35,879 Speaker 1: what extent is fex a litmus test for economies around 324 00:18:35,880 --> 00:18:39,119 Speaker 1: the world. Um So it's interesting to say that is 325 00:18:39,119 --> 00:18:41,119 Speaker 1: a a litmus test me there for economies or for 326 00:18:41,200 --> 00:18:43,280 Speaker 1: central banks and how they deal with economies, because you 327 00:18:43,359 --> 00:18:45,080 Speaker 1: look at any way the euro is behaving right now. 328 00:18:45,280 --> 00:18:47,359 Speaker 1: I don't think that be on the Eurozone economy has changed. 329 00:18:47,760 --> 00:18:50,040 Speaker 1: But unlike what I just said about the FED, whereby 330 00:18:50,320 --> 00:18:52,720 Speaker 1: high U S inflation irrespective of growth, and FED will 331 00:18:52,760 --> 00:18:55,080 Speaker 1: react to that, we're not so sure about the or 332 00:18:55,119 --> 00:18:57,080 Speaker 1: the market's not so sure about the ECB right now. 333 00:18:57,280 --> 00:19:00,720 Speaker 1: Will the ECB they start to step back from higher 334 00:19:00,760 --> 00:19:04,000 Speaker 1: interest rates? And because what about the growth trajectory in Europe? 335 00:19:04,080 --> 00:19:06,560 Speaker 1: So that's far less confident. So that the ECB will 336 00:19:06,640 --> 00:19:08,520 Speaker 1: do when it says it might do versus what the 337 00:19:08,600 --> 00:19:10,359 Speaker 1: said will do. The v dot plots and I think 338 00:19:10,400 --> 00:19:12,480 Speaker 1: now that's what's pressing euro dollar right now. Do you 339 00:19:12,560 --> 00:19:18,280 Speaker 1: get the sense in thirty seconds that emerging markets are unraveling. No, 340 00:19:18,560 --> 00:19:20,399 Speaker 1: and on the contrary, we are starting to see in 341 00:19:20,400 --> 00:19:24,600 Speaker 1: a gentle purchases of emerging market equity, so China and 342 00:19:25,040 --> 00:19:27,560 Speaker 1: Hong Kong, you know, these areas and finding some games 343 00:19:27,920 --> 00:19:32,719 Speaker 1: underlying iphon custody interests are showing up in the Philippines unit, 344 00:19:32,760 --> 00:19:35,240 Speaker 1: for example. So now there are pockets where And let's 345 00:19:35,280 --> 00:19:37,680 Speaker 1: bear in mind being equity for bonds and markets weren't 346 00:19:37,680 --> 00:19:40,080 Speaker 1: really the heavily invest in emerging markets anyway the last 347 00:19:40,080 --> 00:19:41,840 Speaker 1: few years or so, so it's still probably a good 348 00:19:41,920 --> 00:19:44,040 Speaker 1: environment that we need to wait and see. Oh it 349 00:19:44,119 --> 00:19:47,040 Speaker 1: is a pleasure. Jeffrey You, senior market strategist at B 350 00:19:47,200 --> 00:19:49,920 Speaker 1: and Y, melon with us this morning and ahead of 351 00:19:49,960 --> 00:19:52,320 Speaker 1: the can showp on on Wall Street down futures one 352 00:19:52,800 --> 00:19:56,560 Speaker 1: twenty nine points lower, the dollar d X y up 353 00:19:56,560 --> 00:20:00,560 Speaker 1: about one percent. Right now, you're listening to of Bloomberg 354 00:20:00,640 --> 00:20:11,000 Speaker 1: day Break, and just ahead we'll have top stories and 355 00:20:11,320 --> 00:20:14,680 Speaker 1: focus on the Marcus after eleven declients of the US 356 00:20:15,000 --> 00:20:18,840 Speaker 1: in the past thirteen weeks. You're listening the Bloomberg day Break, 357 00:20:21,960 --> 00:20:26,440 Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York. 358 00:20:26,600 --> 00:20:31,199 Speaker 1: Bloomberg Living Freedom to Washington, d C, Bloomberg one to Boston, 359 00:20:31,359 --> 00:20:34,600 Speaker 1: Bloomberg one oh six, one to San Francisco, Bloomberg No. 360 00:20:34,840 --> 00:20:37,640 Speaker 1: Sixty to the Country, Sirius XM to the one nine 361 00:20:38,040 --> 00:20:41,200 Speaker 1: and around the globe the Bloomberg Business App and Bloomberg 362 00:20:41,280 --> 00:20:50,560 Speaker 1: Radio dot Com. This is Bloomberg Daybreak. It's six thirty 363 00:20:50,600 --> 00:20:52,959 Speaker 1: on Wall Street. Good morning. I'm John Tucker and I'm 364 00:20:53,040 --> 00:20:56,200 Speaker 1: Karen Moscow. We are just about three hours away from 365 00:20:56,280 --> 00:20:58,320 Speaker 1: the Open of US Training. It's time of the five 366 00:20:58,400 --> 00:20:59,960 Speaker 1: Things that you need to know to start your day, 367 00:21:00,119 --> 00:21:03,920 Speaker 1: brought to you by Interactive Brokers. Interactive Broker symbol ib 368 00:21:04,000 --> 00:21:06,920 Speaker 1: k R Global Trader App. Deposit in your local currency 369 00:21:06,960 --> 00:21:09,840 Speaker 1: and trade stocks in the US, Europe and Asia. Start 370 00:21:09,880 --> 00:21:12,399 Speaker 1: your free trial at ib k R dot com slash 371 00:21:12,440 --> 00:21:16,240 Speaker 1: Global Trader. First, we go to Highland Park, Illinois, where 372 00:21:16,280 --> 00:21:19,359 Speaker 1: a gunman opened fire on a rooftop at an Independence 373 00:21:19,440 --> 00:21:23,280 Speaker 1: Day parade yesterday, killing at least six people and wounding 374 00:21:23,320 --> 00:21:26,920 Speaker 1: at least thirty others. Illinois Governor JB. Prisker addressed the 375 00:21:27,000 --> 00:21:29,520 Speaker 1: violence in a news conference. A little while ago, I 376 00:21:29,640 --> 00:21:33,440 Speaker 1: spoke with President Biden, who pledged all support the White 377 00:21:33,480 --> 00:21:38,320 Speaker 1: House can provide. The President agrees with me, this madness 378 00:21:38,840 --> 00:21:42,800 Speaker 1: must stop. Illinois Governor JB. Prisker, a person of interest 379 00:21:42,880 --> 00:21:45,840 Speaker 1: in the shooting, was taken into custody lady yesterday. Now 380 00:21:45,920 --> 00:21:49,119 Speaker 1: turning to Washington, there's worth the Biden administration could roll 381 00:21:49,160 --> 00:21:52,760 Speaker 1: backs of terrorists imposed by former President Trump. Senior US 382 00:21:52,800 --> 00:21:55,600 Speaker 1: and Chinese officials discussed the matter last night in what 383 00:21:55,720 --> 00:21:59,680 Speaker 1: the White House calls candid and substantive discussions. The rex 384 00:21:59,800 --> 00:22:02,600 Speaker 1: with stations the White House that removing levies could ease 385 00:22:02,720 --> 00:22:06,680 Speaker 1: inflation pressures on consumers. Well, John, looking at the economy, 386 00:22:06,800 --> 00:22:10,280 Speaker 1: we may get a recession, but opportunity for investment could 387 00:22:10,320 --> 00:22:13,400 Speaker 1: still be positive, depending on the magnitude of the slowdown. 388 00:22:13,680 --> 00:22:16,560 Speaker 1: That's according to Goldman Sax, macro strategist for Global Fixed 389 00:22:16,600 --> 00:22:19,800 Speaker 1: Income g Preate Gil. Either way, she says, the labor 390 00:22:19,880 --> 00:22:22,440 Speaker 1: market will feel a pinch. We'd say that the so 391 00:22:22,560 --> 00:22:25,240 Speaker 1: much sinsatainty. We're going to have to monitor the data closely. 392 00:22:25,640 --> 00:22:28,119 Speaker 1: The expectations of this shoe is for the unemployment rate 393 00:22:28,200 --> 00:22:30,600 Speaker 1: to I mean stable, but both the pace of job 394 00:22:30,680 --> 00:22:34,840 Speaker 1: games to motivate. Goldman Sax macro strategistical Preate Yille expects 395 00:22:34,880 --> 00:22:37,800 Speaker 1: your growth to level off as rates had higher. Meantime, 396 00:22:37,840 --> 00:22:41,360 Speaker 1: another bank is painting a grim picture for the economy, 397 00:22:41,720 --> 00:22:44,160 Speaker 1: and Bloomberg's reading the Young joins us Lie with more 398 00:22:44,400 --> 00:22:46,399 Speaker 1: we need a good morning, Good morning John. With the 399 00:22:46,520 --> 00:22:49,720 Speaker 1: recent drop in bond yields, investors are betting the FIT 400 00:22:49,840 --> 00:22:52,720 Speaker 1: may turn less hawkish if inflation peaks in the second 401 00:22:52,800 --> 00:22:55,960 Speaker 1: half of the year, but Morgan Stanley says any drop 402 00:22:56,040 --> 00:22:58,480 Speaker 1: in interest rates should be interpreted as more of a 403 00:22:58,600 --> 00:23:02,960 Speaker 1: growth concern rather than the FIT giving relief. Strategists there 404 00:23:03,119 --> 00:23:06,479 Speaker 1: say if growth were to pull back, the SMP may 405 00:23:06,600 --> 00:23:11,639 Speaker 1: sink to three thousand points. That's about below its latest close. 406 00:23:12,280 --> 00:23:14,919 Speaker 1: Live in New York. I'm really needing Young Bloomberg daybreak. 407 00:23:15,000 --> 00:23:17,000 Speaker 1: All right, we need a thank you. SMP Future is 408 00:23:17,080 --> 00:23:20,080 Speaker 1: lower down eighteen points down, futures down one every thirty 409 00:23:20,160 --> 00:23:23,000 Speaker 1: six and as day Future is down sixties seven, the 410 00:23:23,200 --> 00:23:25,919 Speaker 1: ten year treasury is down six thirty seconds. He had 411 00:23:25,960 --> 00:23:28,800 Speaker 1: two point nine zero percent. That's the five things you 412 00:23:28,920 --> 00:23:30,560 Speaker 1: need to know to start your day, brought to you 413 00:23:30,760 --> 00:23:39,080 Speaker 1: by Interactive Brokers, and this is Bloomberg. Thanks Karen six 414 00:23:39,480 --> 00:23:41,600 Speaker 1: three on Wall Street time to bring in Michael Bard 415 00:23:41,800 --> 00:23:44,120 Speaker 1: tell us what else is going on in New York 416 00:23:44,240 --> 00:23:47,159 Speaker 1: and around the world. Yeah, and thank you very much, Seria. 417 00:23:47,200 --> 00:23:52,760 Speaker 1: It was a fireworks show that did not disappoint. The 418 00:23:52,920 --> 00:23:56,040 Speaker 1: Macy's Fireworks Show lit up the sky over the East 419 00:23:56,160 --> 00:23:59,040 Speaker 1: River in New York City last night. About three million 420 00:23:59,119 --> 00:24:02,119 Speaker 1: people launched the show. After more than four months of 421 00:24:02,200 --> 00:24:06,800 Speaker 1: ferocious fighting, Russia claimed full control over one of the 422 00:24:06,840 --> 00:24:11,760 Speaker 1: two provinces in Ukraine's eastern industrial heartland. However, there are 423 00:24:11,880 --> 00:24:16,119 Speaker 1: signs Russia's sustaining heavy losses. Another step closer to joining NATO. 424 00:24:16,280 --> 00:24:20,320 Speaker 1: Finland and Sweden. Foreign ministers in Brussels today signed the 425 00:24:20,400 --> 00:24:24,880 Speaker 1: protocols to start the ratification process. NATO Secretary General Yen 426 00:24:24,960 --> 00:24:29,280 Speaker 1: Stoltenberg open the meeting in Brussels. This is truly an 427 00:24:29,359 --> 00:24:34,919 Speaker 1: historic moments for Finland, for Sweden and fort NATO natos 428 00:24:34,960 --> 00:24:38,920 Speaker 1: Jen Stoltenberg w NBA Star Britney Griner CENTERL led it 429 00:24:39,000 --> 00:24:42,240 Speaker 1: to President Byer a grand Biden. Rather. Grinder, who is 430 00:24:42,320 --> 00:24:46,680 Speaker 1: being detailed in a Moscow prison help there, told the President, 431 00:24:46,800 --> 00:24:51,320 Speaker 1: I'm terrified I might be here forever. Grinner added she 432 00:24:51,480 --> 00:24:55,719 Speaker 1: misses her wife, her family, and her teammates. Frightening scenes 433 00:24:55,800 --> 00:24:59,119 Speaker 1: at beaches coast to coast in recent days. Authorities in 434 00:24:59,200 --> 00:25:02,760 Speaker 1: Suffolk County, New York, on Long Island temporarily closed a 435 00:25:02,920 --> 00:25:06,560 Speaker 1: part of their shoreline over the weekend. A shark injured 436 00:25:06,680 --> 00:25:10,120 Speaker 1: veteran lifeguard Zac Gallo during a training exercise, leaving him 437 00:25:10,160 --> 00:25:13,800 Speaker 1: with injuries on his hand and chest. I feel a 438 00:25:14,080 --> 00:25:17,200 Speaker 1: sharp pain in my hand, and then as I pulled 439 00:25:17,240 --> 00:25:20,880 Speaker 1: my hand in um, I felt something was still there. 440 00:25:21,600 --> 00:25:25,560 Speaker 1: Lifeguard Zach Gallo, fighting for his life, eventually punched the 441 00:25:25,640 --> 00:25:28,800 Speaker 1: shark and it let go. President Biden awards the Medal 442 00:25:28,840 --> 00:25:32,160 Speaker 1: of Honor to four Army soldiers today for their heroism 443 00:25:32,240 --> 00:25:36,080 Speaker 1: in Vietnam. They include retired Specialist to white Birdwell, who 444 00:25:36,160 --> 00:25:39,120 Speaker 1: took enemy fire to his face and torso but still 445 00:25:39,200 --> 00:25:41,480 Speaker 1: managed to get his command due to safety and disrupt 446 00:25:41,560 --> 00:25:44,800 Speaker 1: the enemy assault. Quite a way to celebrate the four 447 00:25:45,320 --> 00:25:48,640 Speaker 1: saved my fellow servicemen. I did it twice. Went into 448 00:25:48,680 --> 00:25:52,520 Speaker 1: an enemy hell village at night, couldn't see. The only 449 00:25:52,680 --> 00:25:56,520 Speaker 1: light was elimination from the enemy fire at our fire. 450 00:25:57,200 --> 00:25:59,960 Speaker 1: Retired Specialist to white Birdwell would be the first Native 451 00:26:00,000 --> 00:26:04,040 Speaker 1: American awarded for service in any conflict since nineteen seventy 452 00:26:04,080 --> 00:26:07,160 Speaker 1: three Global News twenty four hours a day on air 453 00:26:07,320 --> 00:26:10,600 Speaker 1: and on Bloomberg Quick Take, powered by more than twenty 454 00:26:10,680 --> 00:26:13,480 Speaker 1: seven under journalist and analysts more than a hundred twenty countries. 455 00:26:13,520 --> 00:26:16,800 Speaker 1: On Michael Barr and this is Bloomberg. John, Michael, thank you. 456 00:26:20,000 --> 00:26:22,600 Speaker 1: And it's now six thirty six on Wolf Street. That's 457 00:26:22,640 --> 00:26:26,040 Speaker 1: time for the Bloomberg Sports Update. Good morning, Scott Seidenberg, 458 00:26:26,480 --> 00:26:30,080 Speaker 1: Good morning John. Another solid outing from Taiwan Walker as 459 00:26:30,160 --> 00:26:33,040 Speaker 1: he struck out nine in six innings as the Mets 460 00:26:33,119 --> 00:26:36,399 Speaker 1: beat the Reds yesterday seven to four. Dom Smith, who 461 00:26:36,440 --> 00:26:38,800 Speaker 1: had a two run double in the game, talked about 462 00:26:38,880 --> 00:26:41,760 Speaker 1: Walker afterwards. I think it's been awful home. He's just 463 00:26:41,880 --> 00:26:45,239 Speaker 1: selling like uh what he said his last year when 464 00:26:45,280 --> 00:26:47,720 Speaker 1: he was a lost star. So it's something that he's 465 00:26:47,720 --> 00:26:50,800 Speaker 1: capable of doing. Brandon Nemo and Francisco a Door both 466 00:26:50,880 --> 00:26:53,880 Speaker 1: homerd in the win. The Mets are the first NL 467 00:26:53,960 --> 00:26:57,720 Speaker 1: team to fifty wins this season, and tonight welcome back 468 00:26:57,840 --> 00:27:01,120 Speaker 1: Max Scherzer, making his first start since leaving the game 469 00:27:01,240 --> 00:27:05,640 Speaker 1: back on May eight, to Yankees. Meanwhile, we're off yesterday. Tonight, 470 00:27:05,720 --> 00:27:09,920 Speaker 1: jameson Tayone faces the Pirates, his former Team Tennis at Wimbledon. 471 00:27:10,040 --> 00:27:13,040 Speaker 1: Laugh On and Alan Nick Kurios advanced to the quarterfinals 472 00:27:13,520 --> 00:27:17,359 Speaker 1: and a fourth of July tradition as Joey Chestnut wins 473 00:27:17,440 --> 00:27:21,800 Speaker 1: his fifteenth Nathan's Hot Dog Eating contest despite being interrupted 474 00:27:21,880 --> 00:27:26,800 Speaker 1: by a protester midway through, Chestnut down sixty three dogs 475 00:27:26,880 --> 00:27:30,119 Speaker 1: to win his fifteenth title in the last sixteen years. 476 00:27:30,359 --> 00:27:34,040 Speaker 1: I'm Scott Zeedinberg with Bloomberg Sports. John all right, Scott, 477 00:27:34,119 --> 00:27:37,639 Speaker 1: thanks very much. It is now six thirty seven on 478 00:27:38,000 --> 00:27:41,040 Speaker 1: wall Strade, and that's time to take a look at stocks, 479 00:27:41,160 --> 00:27:42,879 Speaker 1: some of the names that are moving in the pre market. 480 00:27:42,920 --> 00:27:45,600 Speaker 1: For that, we're joined by Bloomberg Radio TV Markets correspondent 481 00:27:45,960 --> 00:27:49,800 Speaker 1: Kritty Gupta. Um, you may have just heard my interview 482 00:27:49,840 --> 00:27:54,520 Speaker 1: with Jeff You Jeff you covers the waterfront from Barklay's 483 00:27:54,920 --> 00:27:59,840 Speaker 1: and also have specializes in foreign exchange as well. For 484 00:28:00,119 --> 00:28:03,680 Speaker 1: b and why Melon, Um, can we look at the 485 00:28:04,160 --> 00:28:06,840 Speaker 1: dollar strength this morning and maybe the implications for the 486 00:28:06,880 --> 00:28:11,240 Speaker 1: broader market because foreign exchange is such a litmus test 487 00:28:11,400 --> 00:28:14,040 Speaker 1: for markets. It totally is, and right now, I mean 488 00:28:14,119 --> 00:28:16,240 Speaker 1: you're quite literally for for the folks who aren't looking 489 00:28:16,240 --> 00:28:18,480 Speaker 1: at into date charts, you're quite literally seeing this kind 490 00:28:18,480 --> 00:28:21,200 Speaker 1: of almost vertical move in the dollar this morning and 491 00:28:21,640 --> 00:28:24,680 Speaker 1: an almost inverse downside vertical move in future. So you 492 00:28:24,720 --> 00:28:27,680 Speaker 1: can see very sensitive to that currency change. UM. But 493 00:28:27,760 --> 00:28:30,760 Speaker 1: there are individual stocks as well that are starting or 494 00:28:30,800 --> 00:28:32,479 Speaker 1: are going to see that kind of ripple effect. Think 495 00:28:32,520 --> 00:28:36,199 Speaker 1: about and multinational companies who majority of their businesses are 496 00:28:36,240 --> 00:28:39,000 Speaker 1: actually abroad, and that when they actually make those profits 497 00:28:39,040 --> 00:28:41,440 Speaker 1: abroad in China and Europe, they have to bring it 498 00:28:41,520 --> 00:28:44,040 Speaker 1: back to the States flip it into dollars, and that 499 00:28:44,160 --> 00:28:46,120 Speaker 1: of course can eat into some of their profits given 500 00:28:46,160 --> 00:28:48,360 Speaker 1: the type of strength. So that's an important point for 501 00:28:48,760 --> 00:28:51,280 Speaker 1: when you look at the flows. If you're a foreign 502 00:28:51,320 --> 00:28:54,840 Speaker 1: investor or if you're a company making your money overseas, 503 00:28:55,200 --> 00:28:57,600 Speaker 1: you have to bring it to the US. You have 504 00:28:57,760 --> 00:29:01,600 Speaker 1: to take that currency and by U S dollars, if 505 00:29:01,640 --> 00:29:04,000 Speaker 1: the d U S dollars really strong, you're gonna wind 506 00:29:04,080 --> 00:29:06,760 Speaker 1: up losing. You are gonna wind up losing UM and 507 00:29:06,960 --> 00:29:09,800 Speaker 1: and that seems to be the consensus at least this morning, 508 00:29:10,000 --> 00:29:11,400 Speaker 1: because take a look at some of the names that 509 00:29:11,480 --> 00:29:13,800 Speaker 1: do have that dynamic at play. Nike, for example, n 510 00:29:13,880 --> 00:29:16,680 Speaker 1: k s R taker down six tenths of one percent, 511 00:29:16,840 --> 00:29:20,120 Speaker 1: Starbucks as well. Sp u X also down six tenths 512 00:29:20,120 --> 00:29:23,480 Speaker 1: of one percent. Microsoft, remember they warned about that dollar story. 513 00:29:23,680 --> 00:29:26,120 Speaker 1: M s f T down about half of a percent. 514 00:29:26,280 --> 00:29:29,240 Speaker 1: Even McDonald's, which isn't seeing as much movement this morning, 515 00:29:29,400 --> 00:29:30,600 Speaker 1: but you really want to keep an eye on this 516 00:29:30,680 --> 00:29:32,960 Speaker 1: one because it's about flat right now. M c D 517 00:29:33,160 --> 00:29:36,240 Speaker 1: is your ticker. It has about sixty percent of its 518 00:29:36,280 --> 00:29:38,600 Speaker 1: revenue comes from abroad. So once again, this is going 519 00:29:38,680 --> 00:29:41,480 Speaker 1: to be a story they're going to see pretty broadly 520 00:29:41,720 --> 00:29:44,920 Speaker 1: as people talk about well global recession and of course 521 00:29:45,000 --> 00:29:46,800 Speaker 1: what that means for dollars and at the end of 522 00:29:46,800 --> 00:29:48,400 Speaker 1: the day, what that means for profits. As he pointed 523 00:29:48,440 --> 00:29:52,200 Speaker 1: out dollar d X Y what up one percent right now? 524 00:29:52,480 --> 00:29:55,440 Speaker 1: And you know, look at I'll get off the dollar 525 00:29:55,480 --> 00:29:58,240 Speaker 1: in a second for exchange, but you're a closer to 526 00:29:58,360 --> 00:30:01,920 Speaker 1: parody with the dollar one too closer to parody. I mean, 527 00:30:02,040 --> 00:30:05,800 Speaker 1: this is has massive implications when you talk about just 528 00:30:06,080 --> 00:30:08,600 Speaker 1: how European assets are value. Remember this is an exchange 529 00:30:08,600 --> 00:30:11,040 Speaker 1: that you haven't seen hit parody going all the way 530 00:30:11,080 --> 00:30:13,320 Speaker 1: back to the nineties. So this does have ripple effects, 531 00:30:13,360 --> 00:30:16,720 Speaker 1: and especially in commodity prices. Think about this. Europe really 532 00:30:16,800 --> 00:30:19,400 Speaker 1: need commodities right now. They need natural gas, they need oil, 533 00:30:19,720 --> 00:30:22,520 Speaker 1: and everything is priced in dollars. That makes it even 534 00:30:22,640 --> 00:30:25,160 Speaker 1: harder when it comes to the purchasing power there. And 535 00:30:25,280 --> 00:30:29,440 Speaker 1: not to mention emerging markets which are can get battered 536 00:30:29,480 --> 00:30:32,040 Speaker 1: with the stronger dollar. As as you what else is 537 00:30:32,080 --> 00:30:35,080 Speaker 1: moving in terms of equity. I don't get too far afield, 538 00:30:35,200 --> 00:30:37,360 Speaker 1: but no, it's okay. There's a lot going on here, 539 00:30:37,400 --> 00:30:39,160 Speaker 1: so we have to like digest it. I want to 540 00:30:39,240 --> 00:30:41,640 Speaker 1: take Cowen because this is going to be a major story. 541 00:30:41,720 --> 00:30:45,200 Speaker 1: CEO w N is your taker up about eleven percent? 542 00:30:45,320 --> 00:30:47,560 Speaker 1: This comes after the Toronto Dominion TV is set to 543 00:30:47,640 --> 00:30:50,280 Speaker 1: explore a takeover of the U S broker. So those 544 00:30:50,320 --> 00:30:53,480 Speaker 1: shares seeing some optism this morning? Okay, maybe merger Tuesday. 545 00:30:53,560 --> 00:30:56,440 Speaker 1: Bloomberg Radio on TV Markets corresponded critic goof that thanks 546 00:30:56,440 --> 00:31:00,200 Speaker 1: for joining us looking at stocks on the whole head 547 00:31:00,200 --> 00:31:02,880 Speaker 1: of the open. S and P futures right now down 548 00:31:03,280 --> 00:31:07,680 Speaker 1: sixteen points, Stall futures eighteen points lower, and that as 549 00:31:07,760 --> 00:31:11,560 Speaker 1: they Committy futures are down sixty four points. You are 550 00:31:11,720 --> 00:31:22,840 Speaker 1: listening to Bloomberg day Break and just a hit on 551 00:31:22,920 --> 00:31:26,520 Speaker 1: Bloomberg Daybreak. Much more work to do. To stop gun violence. 552 00:31:26,640 --> 00:31:30,640 Speaker 1: The headline from President Biden. We'll speak with Bloomberg's Joe Matthew, 553 00:31:30,760 --> 00:31:37,560 Speaker 1: host of sound On. That's just a hint on Bloomberg tapreak, markets, 554 00:31:37,680 --> 00:31:40,760 Speaker 1: headlines and breaking news twenty four hours a day at 555 00:31:40,800 --> 00:31:44,160 Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg 556 00:31:44,240 --> 00:31:53,320 Speaker 1: Quick Tape. This is a Bloomberg Business lash and I'm 557 00:31:53,400 --> 00:31:56,080 Speaker 1: Karen Moscow. Futures are lower this morning. We go to 558 00:31:56,120 --> 00:31:58,880 Speaker 1: the First Word breaking news desk for today's morning call, 559 00:31:59,040 --> 00:32:02,520 Speaker 1: and here's Bill Mullow. Any Bill, good morning and good 560 00:32:02,560 --> 00:32:04,800 Speaker 1: morning Karen. That's right. US features are and they're red 561 00:32:04,920 --> 00:32:06,800 Speaker 1: right now with down features down a hundred and twenty 562 00:32:06,840 --> 00:32:09,520 Speaker 1: four point says b drops seventeen and nest that features 563 00:32:09,560 --> 00:32:12,959 Speaker 1: decline by sixty. The US ten year old at two 564 00:32:13,040 --> 00:32:16,360 Speaker 1: point nine percent, Gold is down four. Oil and bitcoin 565 00:32:16,440 --> 00:32:19,640 Speaker 1: are both trading a little changed, and Japan rose one 566 00:32:19,680 --> 00:32:22,600 Speaker 1: percent overnight, where UP markets are down this morning, led 567 00:32:22,640 --> 00:32:25,440 Speaker 1: by one percent losses in France. Back in the US, 568 00:32:25,520 --> 00:32:27,760 Speaker 1: on the economic front, at ten o'clock, factory orders and 569 00:32:28,080 --> 00:32:31,280 Speaker 1: durable goods orders over the weekend, Tessa reported Q two 570 00:32:31,320 --> 00:32:35,080 Speaker 1: deliveries that missed estimates. And another news the euro dropped 571 00:32:35,080 --> 00:32:38,720 Speaker 1: to a twenty year low against the US dollar, Rapping 572 00:32:38,800 --> 00:32:41,920 Speaker 1: things up. Fraurey was upgraded over at Jeffreys and Texas 573 00:32:42,040 --> 00:32:45,760 Speaker 1: Instruments was put to hold over at dasy Bank. Live 574 00:32:45,880 --> 00:32:47,880 Speaker 1: from the first to breaking news desk Im Bill Maloney. 575 00:32:47,920 --> 00:32:49,920 Speaker 1: Care all right, Bill, thank you to hear live breaking 576 00:32:49,960 --> 00:32:52,800 Speaker 1: news of your Bloombergy Times. Squawk on your terminal, squ 577 00:32:53,160 --> 00:32:55,480 Speaker 1: a w u K and that's a Bloomberg business flash. 578 00:32:55,560 --> 00:32:57,680 Speaker 1: Now here's Michael Barrow with more on what's going on 579 00:32:57,800 --> 00:33:01,360 Speaker 1: around the world. Michael Karen, thank you very much. A 580 00:33:01,360 --> 00:33:04,560 Speaker 1: gunman on a rooftop opened fire on an Independence Day 581 00:33:04,640 --> 00:33:07,880 Speaker 1: parade in suburban Chicago, killing at least six people and 582 00:33:08,080 --> 00:33:11,600 Speaker 1: wounding at least thirty. Police and Highland Parks say A 583 00:33:11,760 --> 00:33:15,040 Speaker 1: man named as a person of interest in the shooting 584 00:33:15,440 --> 00:33:18,480 Speaker 1: was taken into custody last night after an hour's long 585 00:33:18,560 --> 00:33:22,040 Speaker 1: man hunt. To Philadelphia Police officers have been released from 586 00:33:22,080 --> 00:33:24,640 Speaker 1: the hospital after they were shot during the Fourth of 587 00:33:24,720 --> 00:33:28,760 Speaker 1: July celebration where they were working security. It is unclear 588 00:33:28,840 --> 00:33:31,480 Speaker 1: whether the shootings were intentional, and there have been no 589 00:33:31,640 --> 00:33:34,840 Speaker 1: arrest so far. In baseball, the Mets won the brat 590 00:33:34,920 --> 00:33:38,520 Speaker 1: sos Orioles and As also won the Nationals lost along 591 00:33:38,560 --> 00:33:41,560 Speaker 1: with the giants. Global News twenty four hours a day 592 00:33:41,720 --> 00:33:45,000 Speaker 1: on air and on Bloomberg Quick Take, powered by more 593 00:33:45,160 --> 00:33:47,640 Speaker 1: than twenty seven hundred journalists and analysts more than a 594 00:33:47,720 --> 00:33:51,240 Speaker 1: hundred twenty countries. Michael Barr and this is Bloomberg. Karon. 595 00:33:51,680 --> 00:33:54,240 Speaker 1: All right, Michael, thank you at sixty nine on Wall Street, 596 00:33:54,240 --> 00:33:56,680 Speaker 1: and returned to news and science and technology now with 597 00:33:56,760 --> 00:33:59,920 Speaker 1: a Bloomberg and j I T STEM report. It is 598 00:34:00,080 --> 00:34:02,760 Speaker 1: RONTY You buy New Jersey Institute of Technology and j 599 00:34:02,920 --> 00:34:05,880 Speaker 1: I T welcomes its ninth president, Tech Limb, a visionary 600 00:34:06,000 --> 00:34:08,560 Speaker 1: leader committed to growing and j I T s partnerships 601 00:34:08,600 --> 00:34:11,960 Speaker 1: with industry to bolster student opportunities and outcomes. Learn more 602 00:34:12,000 --> 00:34:13,759 Speaker 1: at n j I T dot E d U and 603 00:34:13,800 --> 00:34:17,120 Speaker 1: now here's what's making news and science, Technology, engineering and math. 604 00:34:17,800 --> 00:34:20,800 Speaker 1: A simple and cheap way to prevent some future climate 605 00:34:20,840 --> 00:34:23,520 Speaker 1: pollution is to wear the clothes already in your closet 606 00:34:23,640 --> 00:34:25,800 Speaker 1: and roughly twice as many times as you might have 607 00:34:25,880 --> 00:34:30,000 Speaker 1: otherwise before tossing them. The United Nations Environment Program echoed 608 00:34:30,040 --> 00:34:33,440 Speaker 1: a sev or four from the Ellen MacArthur Foundation that 609 00:34:33,520 --> 00:34:36,400 Speaker 1: Showy could reduce the impact of emissions related to clothing 610 00:34:36,520 --> 00:34:40,360 Speaker 1: by forty four percent. Test level Hall most production on 611 00:34:40,480 --> 00:34:43,279 Speaker 1: its Model Y assembly line in Shanghai for the first 612 00:34:43,280 --> 00:34:45,440 Speaker 1: two weeks of July, and then stop the Model three 613 00:34:45,520 --> 00:34:48,960 Speaker 1: line for a twenty days stretch starting July eighth. Upgrade 614 00:34:49,000 --> 00:34:51,240 Speaker 1: work at the factory to boost output of both vehicles 615 00:34:51,360 --> 00:34:54,320 Speaker 1: is expected to be completed by early August. People familiar 616 00:34:54,360 --> 00:34:57,800 Speaker 1: with the matters say, and an electric vehicle charging station 617 00:34:57,880 --> 00:35:00,440 Speaker 1: that can choose hundreds of cars a day, set up 618 00:35:00,480 --> 00:35:02,520 Speaker 1: with two batteries I can send power to the UK 619 00:35:02,680 --> 00:35:05,520 Speaker 1: grid is opening in Oxford. The project, known as the 620 00:35:05,680 --> 00:35:09,640 Speaker 1: Energy Superhub Oxford, will include forty two rapid chargers at 621 00:35:09,640 --> 00:35:12,080 Speaker 1: the Red Bridge Park and Ride and as a Bloomberg 622 00:35:12,160 --> 00:35:15,439 Speaker 1: and j I t stem report. John all right, Karen, thanks, 623 00:35:15,520 --> 00:35:19,120 Speaker 1: We're lying for the Bloomberg INTERRANTO Broker Studios where it 624 00:35:19,480 --> 00:35:22,000 Speaker 1: is six fifty one of Wall Street, and that means 625 00:35:22,040 --> 00:35:24,360 Speaker 1: it's time to check what's going on in d C. 626 00:35:24,800 --> 00:35:27,480 Speaker 1: And some of the top stories in the nation's capital 627 00:35:27,600 --> 00:35:31,040 Speaker 1: include China and the U S discussed Trump era tariffs. 628 00:35:31,280 --> 00:35:35,080 Speaker 1: Biden is looking to ease, of course. Six thirty Hurd 629 00:35:35,160 --> 00:35:38,160 Speaker 1: and that's shooting at the Chicago or at July fourth Parade. 630 00:35:38,640 --> 00:35:41,680 Speaker 1: Where are we on gun legislation at this point? And 631 00:35:41,840 --> 00:35:45,840 Speaker 1: the January six hearing revelations include an angry former President 632 00:35:45,920 --> 00:35:49,840 Speaker 1: Trump and risk to the Vice President Pence, the w 633 00:35:50,080 --> 00:35:52,480 Speaker 1: n B, a star grinder pleading with President Blind to 634 00:35:52,560 --> 00:35:56,400 Speaker 1: get her out of Russia, and President Biden urges unity 635 00:35:56,520 --> 00:36:00,520 Speaker 1: despite economic worries and deep divisions in the name. Let's 636 00:36:00,560 --> 00:36:03,520 Speaker 1: take a deeper dive and these stories this morning with 637 00:36:03,640 --> 00:36:07,400 Speaker 1: Joe Matthew host Bloomberg South Don Happy Tuesday morning to you, 638 00:36:07,520 --> 00:36:09,399 Speaker 1: Joe and you as well. Hope it was a great 639 00:36:09,440 --> 00:36:12,880 Speaker 1: fourth John h terriffic fourth for me at least. China 640 00:36:12,960 --> 00:36:17,160 Speaker 1: and the US discussing ending some of the Chinese tariffs. 641 00:36:17,200 --> 00:36:20,760 Speaker 1: So one of our top stories this morning, What exactly 642 00:36:21,040 --> 00:36:24,480 Speaker 1: is taking place? Started perking a couple of weeks ago. 643 00:36:24,560 --> 00:36:27,000 Speaker 1: The President has been looking at this, saying that he 644 00:36:27,040 --> 00:36:28,920 Speaker 1: would make a decision on it in an effort to 645 00:36:29,040 --> 00:36:31,960 Speaker 1: lower inflation was the idea here. It appears we could 646 00:36:32,000 --> 00:36:34,200 Speaker 1: be nearing a decision as soon as this week. Bloomberg 647 00:36:34,920 --> 00:36:37,920 Speaker 1: had sources talking over the weekend about this. Within days, 648 00:36:38,080 --> 00:36:41,000 Speaker 1: news of a high level meeting between Janet Yellen and 649 00:36:41,120 --> 00:36:44,279 Speaker 1: China's Vice premier was their first meeting since October and 650 00:36:44,360 --> 00:36:48,320 Speaker 1: described by the US as candid and substantive. So it 651 00:36:48,440 --> 00:36:50,880 Speaker 1: looks like the gears are turning here. But we do 652 00:36:51,000 --> 00:36:54,279 Speaker 1: have to acknowledge that there's an argument within the administration 653 00:36:54,360 --> 00:36:56,920 Speaker 1: about this. You might not assume that, but the our 654 00:36:56,960 --> 00:37:00,640 Speaker 1: trade representative, US Trade Representative Katherine's High says, take away 655 00:37:00,680 --> 00:37:02,680 Speaker 1: the terrorists, you take away the leverage they bring, some 656 00:37:02,760 --> 00:37:05,640 Speaker 1: of the only leverage that Washington has over Beijing. And 657 00:37:05,719 --> 00:37:08,680 Speaker 1: the fact is China has really not changed his behavior, 658 00:37:08,920 --> 00:37:11,279 Speaker 1: that the behavior that prompted these terrorists to begin with. 659 00:37:11,760 --> 00:37:14,239 Speaker 1: There are also questions John about the impact. What would 660 00:37:14,239 --> 00:37:17,120 Speaker 1: it actually do with regard to inflation. Analysts at the 661 00:37:17,160 --> 00:37:20,600 Speaker 1: Peterson Institute say it might lower consumer prices by about 662 00:37:20,600 --> 00:37:23,080 Speaker 1: a quarter percentage point. Barclay says it might be three 663 00:37:23,160 --> 00:37:26,600 Speaker 1: tents or so, not a lot. It could rise if 664 00:37:26,600 --> 00:37:30,759 Speaker 1: American companies respond by lowering their prices, but that's a 665 00:37:30,880 --> 00:37:33,640 Speaker 1: big if here, and we're talking about consumer goods for 666 00:37:33,719 --> 00:37:37,719 Speaker 1: the most part, a seasonal products, John, like sunscreen and bicycles, 667 00:37:38,360 --> 00:37:41,720 Speaker 1: and one possibility would be cutting those terroiffs. While raising 668 00:37:41,840 --> 00:37:45,759 Speaker 1: some others things like industrial machinery, transportation equipment, will be 669 00:37:45,840 --> 00:37:47,680 Speaker 1: looking for answers on these in the coming days. So 670 00:37:47,719 --> 00:37:52,040 Speaker 1: it sounds like at this point it's unilateral. Well yes, 671 00:37:52,280 --> 00:37:54,480 Speaker 1: but the question is where do they draw the line 672 00:37:54,960 --> 00:37:59,080 Speaker 1: and and where do we find the balance between leverage 673 00:37:59,360 --> 00:38:02,759 Speaker 1: and price is knowing that it may not have a 674 00:38:02,880 --> 00:38:06,560 Speaker 1: huge impact here at home. All right, another weekend, another 675 00:38:06,880 --> 00:38:11,680 Speaker 1: mass shooting, UH six thirty heard in that Chicago area, 676 00:38:12,200 --> 00:38:15,360 Speaker 1: July fourth Parade shooting. And then thanks to the question, 677 00:38:16,000 --> 00:38:18,719 Speaker 1: we've heard some of the reactions, where are we on 678 00:38:19,239 --> 00:38:24,000 Speaker 1: national gun control legislation? Well, the President signed it into 679 00:38:24,120 --> 00:38:26,360 Speaker 1: law a little over a week ago, is the twenty 680 00:38:26,400 --> 00:38:29,440 Speaker 1: five of July, and the first major, you know, gun 681 00:38:29,560 --> 00:38:32,600 Speaker 1: safety legislation passed by Congress in nearly thirty years. The 682 00:38:32,680 --> 00:38:35,560 Speaker 1: question is, you know, what impact is it going to have? 683 00:38:35,760 --> 00:38:39,280 Speaker 1: And as these uh these red flag laws take effect 684 00:38:39,320 --> 00:38:43,680 Speaker 1: around the country. Because this bill, reminding you, incentivizes states 685 00:38:43,719 --> 00:38:46,759 Speaker 1: to have red flag laws that also expands some background checks, 686 00:38:47,400 --> 00:38:50,480 Speaker 1: people think that it might have actually played into, UH, 687 00:38:50,719 --> 00:38:53,400 Speaker 1: some of these mass shootings. Whether it would have prevented 688 00:38:53,480 --> 00:38:57,200 Speaker 1: any of the recent examples, it's very difficult to tell. Uh. 689 00:38:57,440 --> 00:39:00,319 Speaker 1: The n r A opposed the bill, but it has 690 00:39:01,000 --> 00:39:04,839 Speaker 1: been signed in the law after a ten Senate Republicans 691 00:39:04,880 --> 00:39:08,719 Speaker 1: and ten Democrats found a compromise on this and also 692 00:39:08,840 --> 00:39:11,920 Speaker 1: individually some of the states that the Supreme Court overturning 693 00:39:12,520 --> 00:39:15,920 Speaker 1: some of the restrictions that New York had in place. 694 00:39:16,800 --> 00:39:20,440 Speaker 1: In New York and then in New with Governor hokel 695 00:39:20,640 --> 00:39:24,920 Speaker 1: and in New Jersey, um, they have sort of adapted 696 00:39:25,000 --> 00:39:29,360 Speaker 1: to new gun control legislation and immediately those are facing 697 00:39:29,440 --> 00:39:34,200 Speaker 1: lawsuits as well. So there has been response counter response. 698 00:39:34,640 --> 00:39:36,800 Speaker 1: So we have yet to see what happens on the 699 00:39:36,920 --> 00:39:39,800 Speaker 1: state level with those and has predicted, you know, this 700 00:39:39,920 --> 00:39:42,000 Speaker 1: could be tied up in courts for a long time. 701 00:39:42,080 --> 00:39:45,640 Speaker 1: There are, however, a number of states, roughly twenty states 702 00:39:45,680 --> 00:39:47,680 Speaker 1: that already have their own red flag laws. So we're 703 00:39:47,840 --> 00:39:49,240 Speaker 1: we'll have to see what the rest of the country 704 00:39:49,280 --> 00:39:52,680 Speaker 1: decides to do. The January six hearings and the revelations 705 00:39:52,960 --> 00:39:55,520 Speaker 1: give us the update. What do we know, Well, there's 706 00:39:55,560 --> 00:39:57,320 Speaker 1: a lot there. I don't know how much time you have, 707 00:39:58,200 --> 00:40:00,919 Speaker 1: but we're we're in a in a lull now. After 708 00:40:01,040 --> 00:40:06,120 Speaker 1: our surprise hearing popped up with the commentary from Cassidy Hutchinson, 709 00:40:06,239 --> 00:40:08,799 Speaker 1: the former chief of Staff to Mark Meadows, I think 710 00:40:08,880 --> 00:40:12,080 Speaker 1: that the committee, which by the way, is going to 711 00:40:12,200 --> 00:40:16,080 Speaker 1: be UH finishing this with another prime time hearing, likely 712 00:40:16,120 --> 00:40:19,440 Speaker 1: closer to Labor Day. We're expecting another schedule at some 713 00:40:19,600 --> 00:40:22,200 Speaker 1: point soon here. But they say there's new evidence coming 714 00:40:22,239 --> 00:40:24,000 Speaker 1: in and there are more witnesses who want to talk, 715 00:40:24,120 --> 00:40:26,520 Speaker 1: so they're they're back in the process of gathering here. 716 00:40:26,880 --> 00:40:29,880 Speaker 1: Having heard from Cassidy Hutchinson that the President the Secret 717 00:40:30,000 --> 00:40:33,759 Speaker 1: Service knew that there were weapons in that crowd at 718 00:40:33,760 --> 00:40:36,320 Speaker 1: the Ellipse that day before they walked up to the Capitol, 719 00:40:36,360 --> 00:40:38,880 Speaker 1: and learning as well that the President himself wanted to 720 00:40:38,960 --> 00:40:41,800 Speaker 1: go to the capital raises a lot of questions about 721 00:40:41,840 --> 00:40:45,360 Speaker 1: his motivations that day and the Justice Department. Have we 722 00:40:45,480 --> 00:40:48,640 Speaker 1: heard anything from the attorney channel at this point about 723 00:40:48,680 --> 00:40:51,960 Speaker 1: this particular matter, not specifically whether you know charges. Of course, 724 00:40:52,000 --> 00:40:53,760 Speaker 1: the you know, the d o J has been actively 725 00:40:54,000 --> 00:40:57,399 Speaker 1: investigating this, and there are questions about whether UH they'll 726 00:40:57,440 --> 00:40:59,920 Speaker 1: be getting information from the committee or whether they even 727 00:41:00,080 --> 00:41:02,880 Speaker 1: need it. John, The d J operates very quietly, and 728 00:41:02,960 --> 00:41:07,239 Speaker 1: they have broad subpoena powers, broad ability to investigate UH, 729 00:41:07,360 --> 00:41:09,640 Speaker 1: and they're taking their own path on this, which could 730 00:41:09,680 --> 00:41:11,960 Speaker 1: in fact result in charges at the same time that 731 00:41:12,080 --> 00:41:16,520 Speaker 1: January six committee can refer uh with with the idea 732 00:41:16,520 --> 00:41:18,480 Speaker 1: of referring for criminal charges to the d o J. 733 00:41:18,640 --> 00:41:21,040 Speaker 1: Some of the information that they have interesting that there 734 00:41:21,120 --> 00:41:23,719 Speaker 1: is a bit of a conflict between Liz Cheney, the 735 00:41:23,800 --> 00:41:26,600 Speaker 1: Republican ranking member, if you will, vice chair of the committee, 736 00:41:26,640 --> 00:41:29,840 Speaker 1: and also Benny Thompson, the Democratic chair. He says, no, 737 00:41:30,000 --> 00:41:31,640 Speaker 1: we're just doing our work here. We're doing the work 738 00:41:31,680 --> 00:41:35,080 Speaker 1: of a legislative committee. Liz Cheney says, this information needs 739 00:41:35,160 --> 00:41:36,879 Speaker 1: to go to d o J so they can act. 740 00:41:37,200 --> 00:41:39,440 Speaker 1: All right, Joe, we'll leave it there, Thanks very much. 741 00:41:39,480 --> 00:41:42,320 Speaker 1: We appreciate your time. Joe Matthew the host of Bloomberg 742 00:41:42,400 --> 00:41:45,080 Speaker 1: Sale dot But you can read more about these stories 743 00:41:45,120 --> 00:41:47,320 Speaker 1: were just in on Bloomberg dot com or on the 744 00:41:47,480 --> 00:41:50,600 Speaker 1: Bloomberg terminal. Also a reminder, you can follow all the 745 00:41:50,840 --> 00:41:55,480 Speaker 1: latest Bloomberg Radio in Washington. It's Bloomberg at one on 746 00:41:55,560 --> 00:41:59,640 Speaker 1: five point seven FM HD two. Oh. We did see 747 00:41:59,680 --> 00:42:03,760 Speaker 1: some sen initially on the screen with US futures afterword 748 00:42:03,840 --> 00:42:07,200 Speaker 1: of those possible terrorists being lifted with China. Right now, 749 00:42:07,280 --> 00:42:10,080 Speaker 1: we are in the red risk golf so far this morning, 750 00:42:10,160 --> 00:42:13,720 Speaker 1: DAL futures down one twenty two points. That's a decline 751 00:42:13,760 --> 00:42:17,000 Speaker 1: of four tens of a percent. SMP EMNI futures they're 752 00:42:17,040 --> 00:42:19,759 Speaker 1: down sixteen. That's down four tens of a percent, and 753 00:42:19,880 --> 00:42:23,080 Speaker 1: that has that futures sixty five points lower. That is 754 00:42:23,120 --> 00:42:27,719 Speaker 1: down six tenths of a percent. And the VIX right 755 00:42:27,760 --> 00:42:31,719 Speaker 1: now twenty eight ten, slightly elevated. As for the dollar 756 00:42:31,840 --> 00:42:34,680 Speaker 1: dollar d X Y and that is elevated. Stronger dollar 757 00:42:34,760 --> 00:42:37,360 Speaker 1: this morning, that is up nine tenths of a percent. 758 00:42:37,840 --> 00:42:40,839 Speaker 1: Watching the Euro as well, one oh two right now, 759 00:42:41,040 --> 00:42:44,000 Speaker 1: that is down one point two percent. For Karen Moscow 760 00:42:44,040 --> 00:42:47,120 Speaker 1: on John Tucker, and you have been listening to Bluebird 761 00:42:47,200 --> 00:42:47,600 Speaker 1: day Break