Speaker 1: Live from the Bloomberg Interact Dave Brooker Studios. This is
Speaker 1: Bloomberg Daybreak for Tuesday July. Coming up this hour, Good
Speaker 1: Nation grapples with gun violence, get again about the holiday weekend.
Speaker 1: There are reports of tariff talks between the US and
Speaker 1: China's A Big Bank strategists warn of a continued growth
Speaker 1: slow down, and City Group says oil could be in
Speaker 1: for a major de fine in event of a recession.
Speaker 1: U n B A star Britney Griner pleads with the
Speaker 1: President Biden could get around of Russia. Plus fireworks lit
Speaker 1: up the sky in New York. I'm Michael Barr more ahead,
Speaker 1: and I'm Scott Zegenberg and the Mets when the Yankees
Speaker 1: were off. Plus enough they on Wimbledon. I'll have that
Speaker 1: more coming up in sports. That's all straight Ahead on
Speaker 1: Bloomberg day Break on Bloomberg eleven three on New York,
Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco Syrius x M one nineteen
Speaker 1: and around the world on Bloomberg Radio dot com and
Speaker 1: via the Bloombird Business APT And Good Morning, I'm John Tucker.
Speaker 1: And I'm Karen Moscow us Kendeck's futures are lower this morning.
Speaker 1: We're coming up to six one on Wall Street. Let
Speaker 1: me check the markets every fifteen minutes throughout the trading day.
Speaker 1: On Bloomberg Guess and P Future is down nineteen points
Speaker 1: this morning. Now Future is down one and nasday futures
Speaker 1: down seventy five. Ten year treasury down four thirty seconds.
Speaker 1: You had two point eight nine percent yield on the
Speaker 1: two year two point eight nine percent, the euro one
Speaker 1: point two nine seven against the dollar, the N one
Speaker 1: thirty five point eight four, John, and we'll get to
Speaker 1: more of the markets in a moment. For first, Karen,
Speaker 1: we begin in the Highland Park, Illinois, where a gunman
Speaker 1: opened fire from a rooftop at an Independence Day parade yesterday,
Speaker 1: killing at least six people, wounding at least thirty others.
Speaker 1: Illinois Governor JB. Pritzker addressed the violence at a news conference.
Speaker 1: I'm furious. I'm furious that yet more innocent lives were
Speaker 1: taken by gun violence. I'm curious that their loved ones
Speaker 1: are forever broken by what took place today. I'm curious
Speaker 1: that children and their families have been traumatized Illinois Gavin J. V.
Speaker 1: Pritsker spoke to President Biden after the incident. The President
Speaker 1: also addressed the tragedy, saying more needs to be done
Speaker 1: to curb gun violence. We got a lot more work
Speaker 1: to do. We got to get this under control. A
Speaker 1: person of interest in the shooting was taken to the
Speaker 1: custody late yesterday after a lengthy man hunt and the
Speaker 1: community of Highland Park. There was also a gun violence
Speaker 1: in Pennsylvania last night to police officers shot in Philadelphia
Speaker 1: during festivities held near the city's Museum of Art. Philadelphia
Speaker 1: Police Commissioner Daniel out Law says the shooters motives were unclear.
Speaker 1: We don't know if this was ricochet from celebratory gunfire.
Speaker 1: We don't know if this was intentional. We don't know
Speaker 1: if this was someone taking a shot intentionally at these officers.
Speaker 1: Police Commissioner danielle out Along, saying the officers have been
Speaker 1: treated and released. I'm not turning to Washington. John the
Speaker 1: Biden administration could roll back some tariffs imposed by former
Speaker 1: President Shrump. Senior US and Chinese officials discussed the matter
Speaker 1: last night and what the White House calls candid and
Speaker 1: substitutive discussions. There are expectations that the administration could remove
Speaker 1: levies to help these price increases on consumers became more
Speaker 1: In this story from Bloomberg's Bruce Einhorn, people familiar to
Speaker 1: say that the White House has actually asked companies to
Speaker 1: make a commitment that if the US agrees to ease
Speaker 1: some of these tariffs, that companies will then pass those
Speaker 1: savings through two consumers. But people familiar say that executives
Speaker 1: of these companies said, well, no, we're not going to
Speaker 1: make that kind of commitment, and Bloomberg spruces. Einhorn reports
Speaker 1: there are currently US tariffs on hundreds of billions of
Speaker 1: dollars in Chinese goods. However, senior members of the Biden
Speaker 1: administration appear divided about the need to lift levies. Well,
Speaker 1: initially futures were acted positively to these potentially lifting tariffs,
Speaker 1: they've since erased those games still that it was good
Speaker 1: for said about According to dpak Mara, who's investments at
Speaker 1: Commercial Bank of Dubai, it's the recognition that the government
Speaker 1: is very conscious that they need to act on the
Speaker 1: supply side of the inflation issue. Because the FED has
Speaker 1: been slamming the brakes on the demand side, whereas the
Speaker 1: real issue is the supply. So I think trying to
Speaker 1: fix that issue is giving the markets a bit of
Speaker 1: an ease and comfort that you know, we are finally
Speaker 1: addressing the problem. Where where it is Commercial Bank of
Speaker 1: device depect mirrors is he expects the FED to keep
Speaker 1: hiking rates and slam the brakes on demand. Turning to
Speaker 1: the economic outlook, John one Goldman SAX strategist, said the
Speaker 1: base case expectation is not for a US recession to
Speaker 1: great gil As, a macro strategist for Global fixed income
Speaker 1: at Goldman Saccess, said management. She says, we may get
Speaker 1: a recession, but opportunity for investment will depend on its magnitude.
Speaker 1: We do expect continued monkey tightening. You may well see
Speaker 1: a technical recession, but what really matteres you're thinking about
Speaker 1: the investment landscape and opportunities and fixing conceptus is the
Speaker 1: magnitude And instead of the characteristics of that recession gone
Speaker 1: macro strategist, your pretty Gil expects growth to level off
Speaker 1: as rates head higher. Another major bank painting a grim
Speaker 1: picture for the economy, and Bloomberg's reneily Young joins us
Speaker 1: Live with that story really the good morning, Good Morning John.
Speaker 1: With the recent drop in bond yields, investors are betting
Speaker 1: the Fed may turn less hawkish if inflation peaks in
Speaker 1: the second half of the year, but Morgan Stanley says
Speaker 1: any drop in interest rates should be interpreted as more
Speaker 1: of a growth concern rather than the Fed giving relief.
Speaker 1: Strategists there say if macro economic data do not confirm
Speaker 1: a recession, than equity markets could rally further. But if
Speaker 1: growth were to pull back, they say the S and
Speaker 1: P five may sink to three thousand points. That's about
Speaker 1: below its latest clothes Live in New York. I'm real
Speaker 1: need a young Bloomberg daybreak. I need to thank you.
Speaker 1: Looking at oil now, city Girl was warning that crude
Speaker 1: could collapse to sixty five dollars a barrel by the
Speaker 1: end of this year and slumped to forty five dollars
Speaker 1: by the end of next year. That's if we get
Speaker 1: hit by a demand crippling recession. The outlook is based
Speaker 1: on the absence of any intervention by OPEQ and checking
Speaker 1: prices now, nine X screwed oil of a quarter percent
Speaker 1: at a hundred eight dollars seventy cents of barrel. Brent
Speaker 1: is down one percent at a hundred twelve dollars thirty
Speaker 1: five cents. Overseas, European equities have turned lower andrew some
Speaker 1: initial optimism. The earl this morning, weakening to the lowest
Speaker 1: level against the dollars since two thousand three. Meantime, at Asia,
Speaker 1: stocks climbed overnight and John futures are lower. SNP future
Speaker 1: is down about seventeen points a Dow futures down one
Speaker 1: twenty seven and NASTAC futures down sixty four. The decks
Speaker 1: in Germany is down one percent. Ten year treasury down
Speaker 1: five thirty seconds, the yield two point nine zero percent
Speaker 1: and the yield on the two year two point eight
Speaker 1: nine percent. Comes Gold is higher, up about a tenth
Speaker 1: of a percent, and one thousand, eight hundred three dollars
Speaker 1: announced the euro one point two nine six against the dollar,
Speaker 1: and checking bitcoin, it is down a tenth of a
Speaker 1: percent at nineteen thousand seven twenty dollars. Straight ahead, your
Speaker 1: latest local headlines plus a check of sports, and this
Speaker 1: is Bloomberg. Thanks Karen six wall Street, and that's time
Speaker 1: to bring in Michael Barr and I find out what
Speaker 1: else is going on a New York and around the world. Yeah,
Speaker 1: thank you very much. Siria was a fireworks show that
Speaker 1: did not disappoint. About three million people watched the Macy's
Speaker 1: fireworks show over the East River in New York City
Speaker 1: last night. The inn my p D said deployment was
Speaker 1: robust at the show that went off peacefully. W NBA
Speaker 1: player Brittney Grinder wrote to President Joe Biden, pleading with
Speaker 1: him to Bringer and other Americans detained in Russia back home.
Speaker 1: According to the Associated Press, Grinder told Biden in the
Speaker 1: letter that she is terrified might be here forever. A
Speaker 1: representative for Grinder delivered the letter to the White House.
Speaker 1: After more than four months of ferocious fighting, Russia claimed
Speaker 1: full control over one of the two provinces in Ukraine's
Speaker 1: eastern industrial heartland. However, there are signs Russia is sustaining
Speaker 1: heavy losses. Another step closer to joining NATO, Finland and
Speaker 1: Sweden foreign ministers are in Brussels today for the signing
Speaker 1: of ratification protocols. NATO Secretary General Yen Stoltenberg opened the
Speaker 1: meeting in Brussels Diday. We will formally sign the propicals
Speaker 1: of accession. This marks the start of the gratification courses NATOS.
Speaker 1: Jen Stoltenberg called today historic for Finland, Sweden and NATO.
Speaker 1: The federal judges ruled in favor of three major US
Speaker 1: drug distributors in a two and a half billion dollar
Speaker 1: lawsuit which had accused them of causing an opioid crisis
Speaker 1: in the West Virginia County. The suit said, and the
Speaker 1: cussing maryor Source, Bergen and Cardinal Health distributed eighty one
Speaker 1: million pills over eight years in Cabell County, ravaged by
Speaker 1: opioid addiction. Attorney Rusty Webb represents the county and the
Speaker 1: city of Huntington's Naturally, we're extremely disappointed for the city
Speaker 1: of Huntington, who's had to undergo so much devastation. Attorney
Speaker 1: Rusty Webb says Huntington and Cabell County had asked for
Speaker 1: two point six million dollars were so called abatement. That
Speaker 1: money would have provided for drug education, prevention, treatment, and
Speaker 1: law enforcement for the next fifteen years. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalists and analysts.
Speaker 1: More than a hundred twenty countries. Michael Barr and this
Speaker 1: is Bloomberg, John Michael, thank you, as how six ten
Speaker 1: on Wall Street any time to the Bloomberg Sports Update.
Speaker 1: Here's Scott Seidenberg. Thanks John. Taiwan Walker struck out nine
Speaker 1: in a six sinnings as the Mets beat the Reds
Speaker 1: yesterday seven four. Brandon Nimo and Francisco Lindor both homeward
Speaker 1: off Red starter Hunter Green, who has now allowed a
Speaker 1: major league leading twenty two home runs this season. The
Speaker 1: Mets are the first n L team to fifty wins.
Speaker 1: Brandon Nimo on the team's first half success, been a
Speaker 1: good first half. I don't think anybody would complain about it.
Speaker 1: But we also know that we have places that we
Speaker 1: can get better and that, you know, opportunities that, um,
Speaker 1: we haven't taken a mantage of, so to know that
Speaker 1: there's more in the tank, especially with Jake and Max
Speaker 1: coming back, and Max Scherzer comes off the i L
Speaker 1: to make the start tonight his first since leaving the
Speaker 1: game back on May eighteen. The Yankees were off yesterday. Tonight,
Speaker 1: Jamison Tyone faces his former team, the Pirates Tennis That
Speaker 1: Wimbledon rap on the Doll and Nick Curios advanced to
Speaker 1: the men's quarter finals and a fourth of July tradition,
Speaker 1: as Joey Chestnut wins his fifteenth Nathan's Hot Dog Eating
Speaker 1: Contest despite being interrupted by a protester way through. Chestnut
Speaker 1: down sixty three dugs to win his fifteenth title in
Speaker 1: the last sixteen years. I'm Scott Zadinger with Bloomberg Sports.
Speaker 1: John all right, thanks Scott, and ahead of the cash
Speaker 1: open on Wall Street, futures in the red right now
Speaker 1: down futures down one nine points, that's the decline of
Speaker 1: four tens of a percent. SMP even in futures down
Speaker 1: fourteen that's down four tens of a percent. But as
Speaker 1: the futures right now are fifty six points lower, that
Speaker 1: is down half a percent. Right now, the Wall Street
Speaker 1: fear gage volatility and that's still well below thirty slightly
Speaker 1: elevated though this morning. And as we look at the
Speaker 1: four in exchange this morning, the yuro ever closer to
Speaker 1: parody with the dollar one oh two nineties six right
Speaker 1: now that is down one point two percent against the
Speaker 1: green back, and the dollar d X Y index dollar
Speaker 1: continues its strengthening path right now close to one percent
Speaker 1: you're listening to Bloomberg day Break, and just ahead on
Speaker 1: Bloomberg Daybreak, US markets reopen after capping eleven declines in
Speaker 1: the past thirteen weeks. We'll be joined by Jeffrey U,
Speaker 1: senior market strategist at B and Y Melon. He'll weigh
Speaker 1: in on the markets, markets, headlines, and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg
Speaker 1: Business Out and at Bloomberg Victape, She's a Bloomberg Business
Speaker 1: Lash and I'm Karen Moscow. US dot index, futures and
Speaker 1: European equities are falling as concerned over the possibility of
Speaker 1: our recession. Always optimism over at US China talks aimed
Speaker 1: at teriff reductions, the heroes at a twenty year low.
Speaker 1: We checked the markets every fifteen minutes throughout the trading day.
Speaker 1: On Bloomberg, SNP future is down seventeen points this morning,
Speaker 1: Down futures down a hundred twenty eight, and NASTAG futures
Speaker 1: down sixty seven. The decks in Germany's down nine tens
Speaker 1: of percent, the ten year treasury down six thirty seconds,
Speaker 1: Hill two point nine zero percent. They yield him a
Speaker 1: two year two point eight nine percent, nine X screwed
Speaker 1: oil it's it'll change in a hundred eight dollars forty
Speaker 1: nine cents of barrel break is moving lower down one
Speaker 1: point two percent and a hundred twelve dollars eighteen cents.
Speaker 1: Comic school This it'll change and one thousand, eight hundred
Speaker 1: two dollars announced. The euro one point oh three oh
Speaker 1: one against the dollar, British found one point two zero
Speaker 1: three four and the end one thirty five point nine five.
Speaker 1: Look at a bitcoin, it's down about a quarter percent
Speaker 1: at nineteen thousand, seven hundred dollars. That's a bloomberg business floush.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Muchael, thank you very much, Karen. Police
Speaker 1: say a gunman on a rooftop opened fire on an
Speaker 1: Independence Day parade in suburban Chicago, killing at least six people,
Speaker 1: wounding at least thirty, and sending hundreds of marchers, parents
Speaker 1: with strollers and children on bicycles fleeing in terror. Police
Speaker 1: and Highland Parks say a person of interest, twenty two
Speaker 1: year old Robert Bobby Cremo, is now in cust in
Speaker 1: connection to the shooting in Philadelphia two police officers were
Speaker 1: shot and Moon did during Fourth of July festivities held
Speaker 1: near the city's Museum of Art. So far, new arrests
Speaker 1: have been made. Baseball, the Met's one, the Red Sox,
Speaker 1: Orioles and A's also won. The Nationals lost along with
Speaker 1: the giants. Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quick Take, powered by more than
Speaker 1: hundred journalists and analyists more than a hundred twenty countries.
Speaker 1: Michael Barr and this is Bloomberg, Jo, Michael, thank you
Speaker 1: very much, six ninths you know well Street. We are
Speaker 1: live in the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak.
Speaker 1: The US markets reopening today this Tuesday morning, after capping
Speaker 1: eleventh of clients in the past thirteen weeks. Let's try
Speaker 1: to get you set up at the trading day ahead
Speaker 1: with Jeffrey u, a senior market strategist at B and
Speaker 1: Y Melod Jeff, have recession fears replaced the inflation fears
Speaker 1: at this at this stage of the economy, um it
Speaker 1: toutainly feels boining. So and the wakers a lot of
Speaker 1: survey data and hard data as well, and globally I
Speaker 1: think that really is taking over. Yes, we do have
Speaker 1: some pockets of optimism, such as China trying to reopen
Speaker 1: and the tariffs and news, but I don't think they're
Speaker 1: getting the benefits to doubt by markets right now with
Speaker 1: respect of the tariffs and Chinese good's possibly being rolled back.
Speaker 1: Could that practically ease inflation pressures? I think it'll take
Speaker 1: time for it to transmit, and a bearing in mind
Speaker 1: in terms of the policy response, it's not about inflation
Speaker 1: pressures that say, it's about inflation expectations, so tariffs and
Speaker 1: of people. It will take time for any tariff relief
Speaker 1: to um to be translating into cheaper prices the local supermarket,
Speaker 1: I think, whereas if people see their gas fights every
Speaker 1: single day, so I think that's where tariffs will help
Speaker 1: over the medium term. I think that people need short
Speaker 1: term expectations management on inflation and otherwise they step back
Speaker 1: on their spending, and I don't think we're going to
Speaker 1: see that at the time being with a concern about
Speaker 1: possible recession ahead. Does this alter the course a hand
Speaker 1: for the Federal Reserve? No, we don't believe so, because
Speaker 1: there's a difference between expecting a recession in and of
Speaker 1: itself versus a recession and starting to drag down prices.
Speaker 1: That we still believe that a lot of the supply issues,
Speaker 1: the labor be a good if those are the structural
Speaker 1: things in driving inflation. There's no guarantee right now that
Speaker 1: slower growth or even a recession can bring down inflation.
Speaker 1: And with that in mind, it's still imperative. And if
Speaker 1: they be said to keep its current course, and and
Speaker 1: if anything, you don't think the markets are appreciating how
Speaker 1: high they can still go. Well, is it a supply
Speaker 1: or demanded issue with respect to inflation. It's sort of
Speaker 1: supply issue, and we see the bulk of it as
Speaker 1: a supply issue that cannot be um adjusted easily. And
Speaker 1: even if we do have demand come off, and we
Speaker 1: need to look at the distribution of demand, you know,
Speaker 1: where is the mond coming up? Will demand come off
Speaker 1: the areas you know which are impacting a supply? So?
Speaker 1: Can can the state afford to take that chance? Basically
Speaker 1: at this point and we just don't think it's fair yet.
Speaker 1: If you look at from the pricing components in within
Speaker 1: the I SMS, for example, there's still very very firm
Speaker 1: with respect to the Wall Street sphere gage. The VIX
Speaker 1: still right now below thirty eight oh seven, just slightly elevated.
Speaker 1: We're told that it needs to go somewhere around forty
Speaker 1: before we see capitulation in equity markets. Your view, I'm
Speaker 1: not sure I agree with that. You know, you don't
Speaker 1: really have to have capitulation in a in a meltdown manner, right,
Speaker 1: so you can have a sudden capitulation or you can
Speaker 1: have slow attrition based capitulations. I think those two are
Speaker 1: separate issues. If there's just going to be steady reduction
Speaker 1: whereby the flow of let's say, in a freshly available
Speaker 1: in less and cash fanball that just goes into bonds
Speaker 1: and rather than into equity, you just don't have the
Speaker 1: Pikes momentum to a support the levels in the SMP
Speaker 1: which are necessary. So um, that can happen, you know,
Speaker 1: without a sudden unwinding of existing of them, of the
Speaker 1: existing positions. And also in a beerying in mind, there's
Speaker 1: not a whole lot of leverage in the system you
Speaker 1: need that collapse and for a rise in the victor
Speaker 1: as well, um and the overall centers. You know, and
Speaker 1: there is a lot of liquidity available yes, said is
Speaker 1: going to start to passively allow its balance you to
Speaker 1: come up. There will be a liquidity withdrawal, but it's
Speaker 1: not actively happening in a way which could polatility higher
Speaker 1: if they can switch to foreign exchange. Just briefly to
Speaker 1: what extent is fex a litmus test for economies around
Speaker 1: the world. Um So it's interesting to say that is
Speaker 1: a a litmus test me there for economies or for
Speaker 1: central banks and how they deal with economies, because you
Speaker 1: look at any way the euro is behaving right now.
Speaker 1: I don't think that be on the Eurozone economy has changed.
Speaker 1: But unlike what I just said about the FED, whereby
Speaker 1: high U S inflation irrespective of growth, and FED will
Speaker 1: react to that, we're not so sure about the or
Speaker 1: the market's not so sure about the ECB right now.
Speaker 1: Will the ECB they start to step back from higher
Speaker 1: interest rates? And because what about the growth trajectory in Europe?
Speaker 1: So that's far less confident. So that the ECB will
Speaker 1: do when it says it might do versus what the
Speaker 1: said will do. The v dot plots and I think
Speaker 1: now that's what's pressing euro dollar right now. Do you
Speaker 1: get the sense in thirty seconds that emerging markets are unraveling. No,
Speaker 1: and on the contrary, we are starting to see in
Speaker 1: a gentle purchases of emerging market equity, so China and
Speaker 1: Hong Kong, you know, these areas and finding some games
Speaker 1: underlying iphon custody interests are showing up in the Philippines unit,
Speaker 1: for example. So now there are pockets where And let's
Speaker 1: bear in mind being equity for bonds and markets weren't
Speaker 1: really the heavily invest in emerging markets anyway the last
Speaker 1: few years or so, so it's still probably a good
Speaker 1: environment that we need to wait and see. Oh it
Speaker 1: is a pleasure. Jeffrey You, senior market strategist at B
Speaker 1: and Y, melon with us this morning and ahead of
Speaker 1: the can showp on on Wall Street down futures one
Speaker 1: twenty nine points lower, the dollar d X y up
Speaker 1: about one percent. Right now, you're listening to of Bloomberg
Speaker 1: day Break, and just ahead we'll have top stories and
Speaker 1: focus on the Marcus after eleven declients of the US
Speaker 1: in the past thirteen weeks. You're listening the Bloomberg day Break,
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York.
Speaker 1: Bloomberg Living Freedom to Washington, d C, Bloomberg one to Boston,
Speaker 1: Bloomberg one oh six, one to San Francisco, Bloomberg No.
Speaker 1: Sixty to the Country, Sirius XM to the one nine
Speaker 1: and around the globe the Bloomberg Business App and Bloomberg
Speaker 1: Radio dot Com. This is Bloomberg Daybreak. It's six thirty
Speaker 1: on Wall Street. Good morning. I'm John Tucker and I'm
Speaker 1: Karen Moscow. We are just about three hours away from
Speaker 1: the Open of US Training. It's time of the five
Speaker 1: Things that you need to know to start your day,
Speaker 1: brought to you by Interactive Brokers. Interactive Broker symbol ib
Speaker 1: k R Global Trader App. Deposit in your local currency
Speaker 1: and trade stocks in the US, Europe and Asia. Start
Speaker 1: your free trial at ib k R dot com slash
Speaker 1: Global Trader. First, we go to Highland Park, Illinois, where
Speaker 1: a gunman opened fire on a rooftop at an Independence
Speaker 1: Day parade yesterday, killing at least six people and wounding
Speaker 1: at least thirty others. Illinois Governor JB. Prisker addressed the
Speaker 1: violence in a news conference. A little while ago, I
Speaker 1: spoke with President Biden, who pledged all support the White
Speaker 1: House can provide. The President agrees with me, this madness
Speaker 1: must stop. Illinois Governor JB. Prisker, a person of interest
Speaker 1: in the shooting, was taken into custody lady yesterday. Now
Speaker 1: turning to Washington, there's worth the Biden administration could roll
Speaker 1: backs of terrorists imposed by former President Trump. Senior US
Speaker 1: and Chinese officials discussed the matter last night in what
Speaker 1: the White House calls candid and substantive discussions. The rex
Speaker 1: with stations the White House that removing levies could ease
Speaker 1: inflation pressures on consumers. Well, John, looking at the economy,
Speaker 1: we may get a recession, but opportunity for investment could
Speaker 1: still be positive, depending on the magnitude of the slowdown.
Speaker 1: That's according to Goldman Sax, macro strategist for Global Fixed
Speaker 1: Income g Preate Gil. Either way, she says, the labor
Speaker 1: market will feel a pinch. We'd say that the so
Speaker 1: much sinsatainty. We're going to have to monitor the data closely.
Speaker 1: The expectations of this shoe is for the unemployment rate
Speaker 1: to I mean stable, but both the pace of job
Speaker 1: games to motivate. Goldman Sax macro strategistical Preate Yille expects
Speaker 1: your growth to level off as rates had higher. Meantime,
Speaker 1: another bank is painting a grim picture for the economy,
Speaker 1: and Bloomberg's reading the Young joins us Lie with more
Speaker 1: we need a good morning, Good morning John. With the
Speaker 1: recent drop in bond yields, investors are betting the FIT
Speaker 1: may turn less hawkish if inflation peaks in the second
Speaker 1: half of the year, but Morgan Stanley says any drop
Speaker 1: in interest rates should be interpreted as more of a
Speaker 1: growth concern rather than the FIT giving relief. Strategists there
Speaker 1: say if growth were to pull back, the SMP may
Speaker 1: sink to three thousand points. That's about below its latest close.
Speaker 1: Live in New York. I'm really needing Young Bloomberg daybreak.
Speaker 1: All right, we need a thank you. SMP Future is
Speaker 1: lower down eighteen points down, futures down one every thirty
Speaker 1: six and as day Future is down sixties seven, the
Speaker 1: ten year treasury is down six thirty seconds. He had
Speaker 1: two point nine zero percent. That's the five things you
Speaker 1: need to know to start your day, brought to you
Speaker 1: by Interactive Brokers, and this is Bloomberg. Thanks Karen six
Speaker 1: three on Wall Street time to bring in Michael Bard
Speaker 1: tell us what else is going on in New York
Speaker 1: and around the world. Yeah, and thank you very much, Seria.
Speaker 1: It was a fireworks show that did not disappoint. The
Speaker 1: Macy's Fireworks Show lit up the sky over the East
Speaker 1: River in New York City last night. About three million
Speaker 1: people launched the show. After more than four months of
Speaker 1: ferocious fighting, Russia claimed full control over one of the
Speaker 1: two provinces in Ukraine's eastern industrial heartland. However, there are
Speaker 1: signs Russia's sustaining heavy losses. Another step closer to joining NATO.
Speaker 1: Finland and Sweden. Foreign ministers in Brussels today signed the
Speaker 1: protocols to start the ratification process. NATO Secretary General Yen
Speaker 1: Stoltenberg open the meeting in Brussels. This is truly an
Speaker 1: historic moments for Finland, for Sweden and fort NATO natos
Speaker 1: Jen Stoltenberg w NBA Star Britney Griner CENTERL led it
Speaker 1: to President Byer a grand Biden. Rather. Grinder, who is
Speaker 1: being detailed in a Moscow prison help there, told the President,
Speaker 1: I'm terrified I might be here forever. Grinner added she
Speaker 1: misses her wife, her family, and her teammates. Frightening scenes
Speaker 1: at beaches coast to coast in recent days. Authorities in
Speaker 1: Suffolk County, New York, on Long Island temporarily closed a
Speaker 1: part of their shoreline over the weekend. A shark injured
Speaker 1: veteran lifeguard Zac Gallo during a training exercise, leaving him
Speaker 1: with injuries on his hand and chest. I feel a
Speaker 1: sharp pain in my hand, and then as I pulled
Speaker 1: my hand in um, I felt something was still there.
Speaker 1: Lifeguard Zach Gallo, fighting for his life, eventually punched the
Speaker 1: shark and it let go. President Biden awards the Medal
Speaker 1: of Honor to four Army soldiers today for their heroism
Speaker 1: in Vietnam. They include retired Specialist to white Birdwell, who
Speaker 1: took enemy fire to his face and torso but still
Speaker 1: managed to get his command due to safety and disrupt
Speaker 1: the enemy assault. Quite a way to celebrate the four
Speaker 1: saved my fellow servicemen. I did it twice. Went into
Speaker 1: an enemy hell village at night, couldn't see. The only
Speaker 1: light was elimination from the enemy fire at our fire.
Speaker 1: Retired Specialist to white Birdwell would be the first Native
Speaker 1: American awarded for service in any conflict since nineteen seventy
Speaker 1: three Global News twenty four hours a day on air
Speaker 1: and on Bloomberg Quick Take, powered by more than twenty
Speaker 1: seven under journalist and analysts more than a hundred twenty countries.
Speaker 1: On Michael Barr and this is Bloomberg. John, Michael, thank you.
Speaker 1: And it's now six thirty six on Wolf Street. That's
Speaker 1: time for the Bloomberg Sports Update. Good morning, Scott Seidenberg,
Speaker 1: Good morning John. Another solid outing from Taiwan Walker as
Speaker 1: he struck out nine in six innings as the Mets
Speaker 1: beat the Reds yesterday seven to four. Dom Smith, who
Speaker 1: had a two run double in the game, talked about
Speaker 1: Walker afterwards. I think it's been awful home. He's just
Speaker 1: selling like uh what he said his last year when
Speaker 1: he was a lost star. So it's something that he's
Speaker 1: capable of doing. Brandon Nemo and Francisco a Door both
Speaker 1: homerd in the win. The Mets are the first NL
Speaker 1: team to fifty wins this season, and tonight welcome back
Speaker 1: Max Scherzer, making his first start since leaving the game
Speaker 1: back on May eight, to Yankees. Meanwhile, we're off yesterday. Tonight,
Speaker 1: jameson Tayone faces the Pirates, his former Team Tennis at Wimbledon.
Speaker 1: Laugh On and Alan Nick Kurios advanced to the quarterfinals
Speaker 1: and a fourth of July tradition as Joey Chestnut wins
Speaker 1: his fifteenth Nathan's Hot Dog Eating contest despite being interrupted
Speaker 1: by a protester midway through, Chestnut down sixty three dogs
Speaker 1: to win his fifteenth title in the last sixteen years.
Speaker 1: I'm Scott Zeedinberg with Bloomberg Sports. John all right, Scott,
Speaker 1: thanks very much. It is now six thirty seven on
Speaker 1: wall Strade, and that's time to take a look at stocks,
Speaker 1: some of the names that are moving in the pre market.
Speaker 1: For that, we're joined by Bloomberg Radio TV Markets correspondent
Speaker 1: Kritty Gupta. Um, you may have just heard my interview
Speaker 1: with Jeff You Jeff you covers the waterfront from Barklay's
Speaker 1: and also have specializes in foreign exchange as well. For
Speaker 1: b and why Melon, Um, can we look at the
Speaker 1: dollar strength this morning and maybe the implications for the
Speaker 1: broader market because foreign exchange is such a litmus test
Speaker 1: for markets. It totally is, and right now, I mean
Speaker 1: you're quite literally for for the folks who aren't looking
Speaker 1: at into date charts, you're quite literally seeing this kind
Speaker 1: of almost vertical move in the dollar this morning and
Speaker 1: an almost inverse downside vertical move in future. So you
Speaker 1: can see very sensitive to that currency change. UM. But
Speaker 1: there are individual stocks as well that are starting or
Speaker 1: are going to see that kind of ripple effect. Think
Speaker 1: about and multinational companies who majority of their businesses are
Speaker 1: actually abroad, and that when they actually make those profits
Speaker 1: abroad in China and Europe, they have to bring it
Speaker 1: back to the States flip it into dollars, and that
Speaker 1: of course can eat into some of their profits given
Speaker 1: the type of strength. So that's an important point for
Speaker 1: when you look at the flows. If you're a foreign
Speaker 1: investor or if you're a company making your money overseas,
Speaker 1: you have to bring it to the US. You have
Speaker 1: to take that currency and by U S dollars, if
Speaker 1: the d U S dollars really strong, you're gonna wind
Speaker 1: up losing. You are gonna wind up losing UM and
Speaker 1: and that seems to be the consensus at least this morning,
Speaker 1: because take a look at some of the names that
Speaker 1: do have that dynamic at play. Nike, for example, n
Speaker 1: k s R taker down six tenths of one percent,
Speaker 1: Starbucks as well. Sp u X also down six tenths
Speaker 1: of one percent. Microsoft, remember they warned about that dollar story.
Speaker 1: M s f T down about half of a percent.
Speaker 1: Even McDonald's, which isn't seeing as much movement this morning,
Speaker 1: but you really want to keep an eye on this
Speaker 1: one because it's about flat right now. M c D
Speaker 1: is your ticker. It has about sixty percent of its
Speaker 1: revenue comes from abroad. So once again, this is going
Speaker 1: to be a story they're going to see pretty broadly
Speaker 1: as people talk about well global recession and of course
Speaker 1: what that means for dollars and at the end of
Speaker 1: the day, what that means for profits. As he pointed
Speaker 1: out dollar d X Y what up one percent right now?
Speaker 1: And you know, look at I'll get off the dollar
Speaker 1: in a second for exchange, but you're a closer to
Speaker 1: parody with the dollar one too closer to parody. I mean,
Speaker 1: this is has massive implications when you talk about just
Speaker 1: how European assets are value. Remember this is an exchange
Speaker 1: that you haven't seen hit parody going all the way
Speaker 1: back to the nineties. So this does have ripple effects,
Speaker 1: and especially in commodity prices. Think about this. Europe really
Speaker 1: need commodities right now. They need natural gas, they need oil,
Speaker 1: and everything is priced in dollars. That makes it even
Speaker 1: harder when it comes to the purchasing power there. And
Speaker 1: not to mention emerging markets which are can get battered
Speaker 1: with the stronger dollar. As as you what else is
Speaker 1: moving in terms of equity. I don't get too far afield,
Speaker 1: but no, it's okay. There's a lot going on here,
Speaker 1: so we have to like digest it. I want to
Speaker 1: take Cowen because this is going to be a major story.
Speaker 1: CEO w N is your taker up about eleven percent?
Speaker 1: This comes after the Toronto Dominion TV is set to
Speaker 1: explore a takeover of the U S broker. So those
Speaker 1: shares seeing some optism this morning? Okay, maybe merger Tuesday.
Speaker 1: Bloomberg Radio on TV Markets corresponded critic goof that thanks
Speaker 1: for joining us looking at stocks on the whole head
Speaker 1: of the open. S and P futures right now down
Speaker 1: sixteen points, Stall futures eighteen points lower, and that as
Speaker 1: they Committy futures are down sixty four points. You are
Speaker 1: listening to Bloomberg day Break and just a hit on
Speaker 1: Bloomberg Daybreak. Much more work to do. To stop gun violence.
Speaker 1: The headline from President Biden. We'll speak with Bloomberg's Joe Matthew,
Speaker 1: host of sound On. That's just a hint on Bloomberg tapreak, markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg
Speaker 1: Quick Tape. This is a Bloomberg Business lash and I'm
Speaker 1: Karen Moscow. Futures are lower this morning. We go to
Speaker 1: the First Word breaking news desk for today's morning call,
Speaker 1: and here's Bill Mullow. Any Bill, good morning and good
Speaker 1: morning Karen. That's right. US features are and they're red
Speaker 1: right now with down features down a hundred and twenty
Speaker 1: four point says b drops seventeen and nest that features
Speaker 1: decline by sixty. The US ten year old at two
Speaker 1: point nine percent, Gold is down four. Oil and bitcoin
Speaker 1: are both trading a little changed, and Japan rose one
Speaker 1: percent overnight, where UP markets are down this morning, led
Speaker 1: by one percent losses in France. Back in the US,
Speaker 1: on the economic front, at ten o'clock, factory orders and
Speaker 1: durable goods orders over the weekend, Tessa reported Q two
Speaker 1: deliveries that missed estimates. And another news the euro dropped
Speaker 1: to a twenty year low against the US dollar, Rapping
Speaker 1: things up. Fraurey was upgraded over at Jeffreys and Texas
Speaker 1: Instruments was put to hold over at dasy Bank. Live
Speaker 1: from the first to breaking news desk Im Bill Maloney.
Speaker 1: Care all right, Bill, thank you to hear live breaking
Speaker 1: news of your Bloombergy Times. Squawk on your terminal, squ
Speaker 1: a w u K and that's a Bloomberg business flash.
Speaker 1: Now here's Michael Barrow with more on what's going on
Speaker 1: around the world. Michael Karen, thank you very much. A
Speaker 1: gunman on a rooftop opened fire on an Independence Day
Speaker 1: parade in suburban Chicago, killing at least six people and
Speaker 1: wounding at least thirty. Police and Highland Parks say A
Speaker 1: man named as a person of interest in the shooting
Speaker 1: was taken into custody last night after an hour's long
Speaker 1: man hunt. To Philadelphia Police officers have been released from
Speaker 1: the hospital after they were shot during the Fourth of
Speaker 1: July celebration where they were working security. It is unclear
Speaker 1: whether the shootings were intentional, and there have been no
Speaker 1: arrest so far. In baseball, the Mets won the brat
Speaker 1: sos Orioles and As also won the Nationals lost along
Speaker 1: with the giants. Global News twenty four hours a day
Speaker 1: on air and on Bloomberg Quick Take, powered by more
Speaker 1: than twenty seven hundred journalists and analysts more than a
Speaker 1: hundred twenty countries. Michael Barr and this is Bloomberg. Karon.
Speaker 1: All right, Michael, thank you at sixty nine on Wall Street,
Speaker 1: and returned to news and science and technology now with
Speaker 1: a Bloomberg and j I T STEM report. It is
Speaker 1: RONTY You buy New Jersey Institute of Technology and j
Speaker 1: I T welcomes its ninth president, Tech Limb, a visionary
Speaker 1: leader committed to growing and j I T s partnerships
Speaker 1: with industry to bolster student opportunities and outcomes. Learn more
Speaker 1: at n j I T dot E d U and
Speaker 1: now here's what's making news and science, Technology, engineering and math.
Speaker 1: A simple and cheap way to prevent some future climate
Speaker 1: pollution is to wear the clothes already in your closet
Speaker 1: and roughly twice as many times as you might have
Speaker 1: otherwise before tossing them. The United Nations Environment Program echoed
Speaker 1: a sev or four from the Ellen MacArthur Foundation that
Speaker 1: Showy could reduce the impact of emissions related to clothing
Speaker 1: by forty four percent. Test level Hall most production on
Speaker 1: its Model Y assembly line in Shanghai for the first
Speaker 1: two weeks of July, and then stop the Model three
Speaker 1: line for a twenty days stretch starting July eighth. Upgrade
Speaker 1: work at the factory to boost output of both vehicles
Speaker 1: is expected to be completed by early August. People familiar
Speaker 1: with the matters say, and an electric vehicle charging station
Speaker 1: that can choose hundreds of cars a day, set up
Speaker 1: with two batteries I can send power to the UK
Speaker 1: grid is opening in Oxford. The project, known as the
Speaker 1: Energy Superhub Oxford, will include forty two rapid chargers at
Speaker 1: the Red Bridge Park and Ride and as a Bloomberg
Speaker 1: and j I t stem report. John all right, Karen, thanks,
Speaker 1: We're lying for the Bloomberg INTERRANTO Broker Studios where it
Speaker 1: is six fifty one of Wall Street, and that means
Speaker 1: it's time to check what's going on in d C.
Speaker 1: And some of the top stories in the nation's capital
Speaker 1: include China and the U S discussed Trump era tariffs.
Speaker 1: Biden is looking to ease, of course. Six thirty Hurd
Speaker 1: and that's shooting at the Chicago or at July fourth Parade.
Speaker 1: Where are we on gun legislation at this point? And
Speaker 1: the January six hearing revelations include an angry former President
Speaker 1: Trump and risk to the Vice President Pence, the w
Speaker 1: n B, a star grinder pleading with President Blind to
Speaker 1: get her out of Russia, and President Biden urges unity
Speaker 1: despite economic worries and deep divisions in the name. Let's
Speaker 1: take a deeper dive and these stories this morning with
Speaker 1: Joe Matthew host Bloomberg South Don Happy Tuesday morning to you,
Speaker 1: Joe and you as well. Hope it was a great
Speaker 1: fourth John h terriffic fourth for me at least. China
Speaker 1: and the US discussing ending some of the Chinese tariffs.
Speaker 1: So one of our top stories this morning, What exactly
Speaker 1: is taking place? Started perking a couple of weeks ago.
Speaker 1: The President has been looking at this, saying that he
Speaker 1: would make a decision on it in an effort to
Speaker 1: lower inflation was the idea here. It appears we could
Speaker 1: be nearing a decision as soon as this week. Bloomberg
Speaker 1: had sources talking over the weekend about this. Within days,
Speaker 1: news of a high level meeting between Janet Yellen and
Speaker 1: China's Vice premier was their first meeting since October and
Speaker 1: described by the US as candid and substantive. So it
Speaker 1: looks like the gears are turning here. But we do
Speaker 1: have to acknowledge that there's an argument within the administration
Speaker 1: about this. You might not assume that, but the our
Speaker 1: trade representative, US Trade Representative Katherine's High says, take away
Speaker 1: the terrorists, you take away the leverage they bring, some
Speaker 1: of the only leverage that Washington has over Beijing. And
Speaker 1: the fact is China has really not changed his behavior,
Speaker 1: that the behavior that prompted these terrorists to begin with.
Speaker 1: There are also questions John about the impact. What would
Speaker 1: it actually do with regard to inflation. Analysts at the
Speaker 1: Peterson Institute say it might lower consumer prices by about
Speaker 1: a quarter percentage point. Barclay says it might be three
Speaker 1: tents or so, not a lot. It could rise if
Speaker 1: American companies respond by lowering their prices, but that's a
Speaker 1: big if here, and we're talking about consumer goods for
Speaker 1: the most part, a seasonal products, John, like sunscreen and bicycles,
Speaker 1: and one possibility would be cutting those terroiffs. While raising
Speaker 1: some others things like industrial machinery, transportation equipment, will be
Speaker 1: looking for answers on these in the coming days. So
Speaker 1: it sounds like at this point it's unilateral. Well yes,
Speaker 1: but the question is where do they draw the line
Speaker 1: and and where do we find the balance between leverage
Speaker 1: and price is knowing that it may not have a
Speaker 1: huge impact here at home. All right, another weekend, another
Speaker 1: mass shooting, UH six thirty heard in that Chicago area,
Speaker 1: July fourth Parade shooting. And then thanks to the question,
Speaker 1: we've heard some of the reactions, where are we on
Speaker 1: national gun control legislation? Well, the President signed it into
Speaker 1: law a little over a week ago, is the twenty
Speaker 1: five of July, and the first major, you know, gun
Speaker 1: safety legislation passed by Congress in nearly thirty years. The
Speaker 1: question is, you know, what impact is it going to have?
Speaker 1: And as these uh these red flag laws take effect
Speaker 1: around the country. Because this bill, reminding you, incentivizes states
Speaker 1: to have red flag laws that also expands some background checks,
Speaker 1: people think that it might have actually played into, UH,
Speaker 1: some of these mass shootings. Whether it would have prevented
Speaker 1: any of the recent examples, it's very difficult to tell. Uh.
Speaker 1: The n r A opposed the bill, but it has
Speaker 1: been signed in the law after a ten Senate Republicans
Speaker 1: and ten Democrats found a compromise on this and also
Speaker 1: individually some of the states that the Supreme Court overturning
Speaker 1: some of the restrictions that New York had in place.
Speaker 1: In New York and then in New with Governor hokel
Speaker 1: and in New Jersey, um, they have sort of adapted
Speaker 1: to new gun control legislation and immediately those are facing
Speaker 1: lawsuits as well. So there has been response counter response.
Speaker 1: So we have yet to see what happens on the
Speaker 1: state level with those and has predicted, you know, this
Speaker 1: could be tied up in courts for a long time.
Speaker 1: There are, however, a number of states, roughly twenty states
Speaker 1: that already have their own red flag laws. So we're
Speaker 1: we'll have to see what the rest of the country
Speaker 1: decides to do. The January six hearings and the revelations
Speaker 1: give us the update. What do we know, Well, there's
Speaker 1: a lot there. I don't know how much time you have,
Speaker 1: but we're we're in a in a lull now. After
Speaker 1: our surprise hearing popped up with the commentary from Cassidy Hutchinson,
Speaker 1: the former chief of Staff to Mark Meadows, I think
Speaker 1: that the committee, which by the way, is going to
Speaker 1: be UH finishing this with another prime time hearing, likely
Speaker 1: closer to Labor Day. We're expecting another schedule at some
Speaker 1: point soon here. But they say there's new evidence coming
Speaker 1: in and there are more witnesses who want to talk,
Speaker 1: so they're they're back in the process of gathering here.
Speaker 1: Having heard from Cassidy Hutchinson that the President the Secret
Speaker 1: Service knew that there were weapons in that crowd at
Speaker 1: the Ellipse that day before they walked up to the Capitol,
Speaker 1: and learning as well that the President himself wanted to
Speaker 1: go to the capital raises a lot of questions about
Speaker 1: his motivations that day and the Justice Department. Have we
Speaker 1: heard anything from the attorney channel at this point about
Speaker 1: this particular matter, not specifically whether you know charges. Of course,
Speaker 1: the you know, the d o J has been actively
Speaker 1: investigating this, and there are questions about whether UH they'll
Speaker 1: be getting information from the committee or whether they even
Speaker 1: need it. John, The d J operates very quietly, and
Speaker 1: they have broad subpoena powers, broad ability to investigate UH,
Speaker 1: and they're taking their own path on this, which could
Speaker 1: in fact result in charges at the same time that
Speaker 1: January six committee can refer uh with with the idea
Speaker 1: of referring for criminal charges to the d o J.
Speaker 1: Some of the information that they have interesting that there
Speaker 1: is a bit of a conflict between Liz Cheney, the
Speaker 1: Republican ranking member, if you will, vice chair of the committee,
Speaker 1: and also Benny Thompson, the Democratic chair. He says, no,
Speaker 1: we're just doing our work here. We're doing the work
Speaker 1: of a legislative committee. Liz Cheney says, this information needs
Speaker 1: to go to d o J so they can act.
Speaker 1: All right, Joe, we'll leave it there, Thanks very much.
Speaker 1: We appreciate your time. Joe Matthew the host of Bloomberg
Speaker 1: Sale dot But you can read more about these stories
Speaker 1: were just in on Bloomberg dot com or on the
Speaker 1: Bloomberg terminal. Also a reminder, you can follow all the
Speaker 1: latest Bloomberg Radio in Washington. It's Bloomberg at one on
Speaker 1: five point seven FM HD two. Oh. We did see
Speaker 1: some sen initially on the screen with US futures afterword
Speaker 1: of those possible terrorists being lifted with China. Right now,
Speaker 1: we are in the red risk golf so far this morning,
Speaker 1: DAL futures down one twenty two points. That's a decline
Speaker 1: of four tens of a percent. SMP EMNI futures they're
Speaker 1: down sixteen. That's down four tens of a percent, and
Speaker 1: that has that futures sixty five points lower. That is
Speaker 1: down six tenths of a percent. And the VIX right
Speaker 1: now twenty eight ten, slightly elevated. As for the dollar
Speaker 1: dollar d X Y and that is elevated. Stronger dollar
Speaker 1: this morning, that is up nine tenths of a percent.
Speaker 1: Watching the Euro as well, one oh two right now,
Speaker 1: that is down one point two percent. For Karen Moscow
Speaker 1: on John Tucker, and you have been listening to Bluebird
Speaker 1: day Break