WEBVTT - Bloomberg Daybreak: July 26, 2022 - Hour 1 (Radio) 0:00:03.120 --> 0:00:04.960 All right, Karen, thank you. It's five oh seven on 0:00:05.000 --> 0:00:07.440 Wall Street where it's seventy three degrees in Central Park 0:00:07.520 --> 0:00:10.080 already dealing with an accident will affect the ride to 0:00:10.360 --> 0:00:14.200 JFK southbound Van Wick at Hillside Avenue. We'll tell you 0:00:14.240 --> 0:00:16.919 more in traffic. First, Michael bars back with what else 0:00:17.000 --> 0:00:18.840 is going on in New York and around the world. 0:00:18.920 --> 0:00:21.680 Good morning, Michael, Good morning Nathan. More people are being 0:00:21.720 --> 0:00:24.880 infected by the monkey pox virus in the US. So far, 0:00:25.040 --> 0:00:28.880 there are almost twenty nine known cases and no depths. 0:00:29.280 --> 0:00:32.000 During an event at Harlem Hospital, New York City Mayor 0:00:32.159 --> 0:00:35.000 Eric Adams notes that most of the state's current nine 0:00:35.080 --> 0:00:38.680 hundred cases come from New York City and they need 0:00:38.720 --> 0:00:42.320 additional resources from the federal government to help slow the spread. 0:00:42.560 --> 0:00:46.239 Almost cases in the state is in New York City 0:00:46.560 --> 0:00:50.360 and so this is once the game we would would again. 0:00:51.120 --> 0:00:53.800 Last week, the w h O proclaimed the spread of 0:00:53.800 --> 0:00:58.120 monkey pox of global emergency. The disease spreads primarily through 0:00:58.200 --> 0:01:01.920 skin to skin contact or direct contact with the virus. 0:01:02.320 --> 0:01:05.880 Officials say New York's MTA may not regain one of 0:01:05.920 --> 0:01:10.840 pre pandemic ridership until about twenty thirty five. Ridership on 0:01:10.959 --> 0:01:15.200 New York City subways, buses, and communityrail lines is projected 0:01:15.200 --> 0:01:21.240 to reach levels in late that's down from a prior 0:01:21.319 --> 0:01:24.720 forecast of eighty six. The authority needs writers to return 0:01:24.800 --> 0:01:27.319 to bolts through its finances. The back and forth on 0:01:27.400 --> 0:01:31.000 the whether US Congresswoman Nanci Pelosi is going to visit 0:01:31.040 --> 0:01:36.120 Taiwan has China angry. Bloomberg's and Baxter reports Beiji has 0:01:36.120 --> 0:01:39.520 issued its strongest statement yet regarding the proposed visit, saying 0:01:39.560 --> 0:01:42.720 the U s should be ready to face the consequences. 0:01:42.959 --> 0:01:45.520 So Richard Hass of the Council on Foreign Relations on 0:01:45.560 --> 0:01:48.360 Bloomberg says, it is time for the globe to figure 0:01:48.360 --> 0:01:52.480 out plans and responses, which means taking military preparations, ourselves 0:01:52.680 --> 0:01:56.400 strengthened in Taiwan, continuing to work more closely with Japan, 0:01:57.000 --> 0:01:59.960 organizing Europe about what sanctions would put it and put 0:02:00.000 --> 0:02:02.920 in place of China ever moved against Tilan Has says 0:02:03.000 --> 0:02:05.920 at some point there will be a confrontation between China 0:02:05.920 --> 0:02:09.640 and the US regarding Taiwan. In San Francisco, I'm at 0:02:09.680 --> 0:02:13.040 Baxter Bloomberg Daybreak, there is another development in the investigation 0:02:13.040 --> 0:02:17.080 into the January six rioting on Capitol Hill. Mark Short, 0:02:17.080 --> 0:02:19.800 the former chief of staff device President Mike Pence, has 0:02:19.840 --> 0:02:23.360 been subpoenaed by d o J prosecutors. Short has also 0:02:23.400 --> 0:02:26.600 appeared before a federal grand jury. Global News twenty four 0:02:26.639 --> 0:02:29.040 hours a day on air and on Bloomberg Quick Take, 0:02:29.080 --> 0:02:32.280 powered by more than twenty seven hundred journalists and analysts 0:02:32.320 --> 0:02:35.600 more than hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. 0:02:35.639 --> 0:02:42.240 All right, Michael, thank you, five o nine on Wall 0:02:42.280 --> 0:02:44.560 Street time for the Bloomberg Sports Upday. Good morning, John 0:02:44.560 --> 0:02:46.640 stan Shown all right, Good morning, Nathan. The Subway series 0:02:46.680 --> 0:02:49.200 always about bragging rights, with the one that starts tonight 0:02:49.200 --> 0:02:52.880 at the City Field as another billing possible World Series preview. 0:02:52.960 --> 0:02:55.280 Both teams have been in first place basically all season. 0:02:55.360 --> 0:02:57.720 All of the Mets lead once ten and a half 0:02:57.760 --> 0:02:59.880 games is down to two. The Mets did get some 0:03:00.000 --> 0:03:03.480 help last night from the Phillies. Bryson stopped in particular 0:03:03.520 --> 0:03:05.880 history one home. He gave the Phills six four win 0:03:05.960 --> 0:03:08.480 over Atlanta. Yankees lea the Alliast by twelve and a 0:03:08.520 --> 0:03:11.160 half games. They're concerned as finishing ahead of Houston for 0:03:11.240 --> 0:03:14.160 best overall record. Astros had their five game winning speaks 0:03:14.160 --> 0:03:17.079 stopped in Oakland, so the Yankster two games ahead. Starting 0:03:17.080 --> 0:03:19.720 pitchers Tonight, Jordan Montgomery for the Yankst, Taiwan Walker for 0:03:19.760 --> 0:03:22.560 the Mets, and Aaron Judge is excited. Just the fans 0:03:22.560 --> 0:03:26.280 getting into it. It's always a pack in playoff atmosphere, um, 0:03:26.560 --> 0:03:30.240 always back and forth. You never know what's gonna happen. Um. 0:03:30.280 --> 0:03:32.040 And it's a competition here. They got a great pitching 0:03:32.080 --> 0:03:33.799 seth great offenseive over there, you know, so do we, 0:03:34.040 --> 0:03:37.640 so you know, looking forward to see what happens. That's dirty. 0:03:37.680 --> 0:03:40.200 Seven home runs, seven more than anyone in baseball. He 0:03:40.240 --> 0:03:42.160 has eighty one r B. I is the only player 0:03:42.200 --> 0:03:45.200 with more is Pete Alonzo. He has eighty two. Details 0:03:45.200 --> 0:03:48.560 emerging about trade talks between the Nets and Celtics, involving 0:03:48.680 --> 0:03:51.520 Kevin Durand reported the Celts offered to Brooklyn, Jalen Brown, 0:03:51.640 --> 0:03:53.720 Derek White and the first round pick, and the Nets 0:03:53.720 --> 0:03:56.960 wanted Brown and Marcus Smart and multiple picks, and the 0:03:56.960 --> 0:04:00.080 Celtics said no, no, sacred. The next trying to acquire 0:04:00.120 --> 0:04:03.560 Donovan Mitchell from Utah. Now there's word that Washington, Charlotte 0:04:03.600 --> 0:04:05.920 and Sacramento are all talking to the Jazz as well. 0:04:06.280 --> 0:04:08.120 Nicks also said to be one of a few teams 0:04:08.120 --> 0:04:11.520 that have spoken with the Lakers about Acquarie Russell Westbrook, 0:04:11.800 --> 0:04:14.720 John dash Award Bloomberg Sports. All right, John, thank you. 0:04:14.960 --> 0:04:17.960 SMP futures down eight points now, Deal futures down a 0:04:18.040 --> 0:04:21.760 hundred ten NASTAC futures lower by thirty one points. Ahead 0:04:21.800 --> 0:04:25.680 of the start of the two day Federal Reserve July 0:04:25.960 --> 0:04:30.440 policy meeting. Tenure Treasury up six thirty seconds, the yield 0:04:30.480 --> 0:04:33.240 two point seven seven percent yield on the two year 0:04:33.360 --> 0:04:37.760 three point zero one. Just ahead former President Trump's return 0:04:37.960 --> 0:04:40.680 to Washington, d C. We check in with Bloomberg Washington 0:04:40.800 --> 0:04:48.400 correspondent Joe Matthew. This is Bloomberg Bloomberg eleven three oh 0:04:48.440 --> 0:04:50.920 weather partly sunny, less humid for a change today, highs 0:04:50.920 --> 0:04:54.240 in the mid eighties, chance to afternoon showers at thunderstorms tomorrow, though. 0:04:54.360 --> 0:04:57.320 We get back to your ninety tomorrow and the next day. 0:04:57.440 --> 0:05:03.400 Right now seventy three in Central Park Markets, headlines and 0:05:03.520 --> 0:05:06.800 breaking news twenty four hours a day at Bloomberg dot Com, 0:05:06.920 --> 0:05:10.000 the Bloomberg Business at and at Bloomberg Quick Take. This 0:05:10.400 --> 0:05:19.400 is a Bloomberg Business Flash and I'm Karen Moscow. European 0:05:19.480 --> 0:05:23.080 stocks are higher, US Stock Index futures are lower amid caution, 0:05:23.120 --> 0:05:26.120 and global markets ahead of the Federal Reserve interest rate high. 0:05:26.160 --> 0:05:29.640 European energy and mining stocks are rallying with oil and metals, 0:05:29.960 --> 0:05:33.600 while retailers and banks fall after disappointing reports from Walmart 0:05:33.600 --> 0:05:36.320 and UBS Group. We check the markets every fifteen minutes 0:05:36.360 --> 0:05:38.440 throughout the trading day on Bloomberg. Right now, U S 0:05:38.480 --> 0:05:40.960 and P futures are down ten points down features down 0:05:40.960 --> 0:05:44.480 a hundred nineteen NASDACK futures down thirty six. The decks 0:05:44.480 --> 0:05:47.120 in Germany's down three tenths of upper sent ten. Your 0:05:47.160 --> 0:05:49.880 treasury of four thirty seconds yell two point seven seven 0:05:49.920 --> 0:05:52.240 percent a yield on a two year three point one 0:05:52.279 --> 0:05:55.640 percent NIMEX screwed oil is at one point eight percent 0:05:55.680 --> 0:05:58.160 of a dollar seventy seven and ninety eight dollars forty 0:05:58.440 --> 0:06:01.040 cents of barrel comex school of this up ten percent 0:06:01.120 --> 0:06:03.880 of a dollar fifty at seventeen thirty eight sixty announce. 0:06:04.279 --> 0:06:07.240 The euro is at one point oh two against the dollar, 0:06:07.279 --> 0:06:10.000 British found one point two zero two four, and the 0:06:10.080 --> 0:06:12.320 UN is at one thirty six point five seven. Looking 0:06:12.360 --> 0:06:16.520 at bitcoin, it's down almost five percent at eighty dollars. 0:06:16.640 --> 0:06:19.240 That's a Bloomberg business flop show. Here's Michael Barr with 0:06:19.320 --> 0:06:22.279 more on what's going on around the world. Michael, good morning, 0:06:22.400 --> 0:06:25.520 Good morning Karen. Former President Donald Trump will returned to 0:06:25.560 --> 0:06:29.159 Washington today for the first time since leaving office. Trump 0:06:29.200 --> 0:06:33.400 will address the America First Policy Institutes today summit. He's 0:06:33.440 --> 0:06:37.159 expected to announce a four White House campaign. How Speaker 0:06:37.240 --> 0:06:40.600 Nancy Pelosi's staff and security officials aren't ruling out plans 0:06:40.839 --> 0:06:43.799 for her to visit Taiwan in early August. The possible 0:06:43.839 --> 0:06:47.360 trip has already stoked more US China tensions. In baseball, 0:06:47.400 --> 0:06:50.240 the Red Sox beat the Guardians three one, The Orioles 0:06:50.279 --> 0:06:53.680 down the Rays five one, The Nationals beat the Dodgers 0:06:53.760 --> 0:06:57.800 for one, The A's down the Astros seven five. Global 0:06:57.839 --> 0:07:00.080 News twenty four hours a day on air and on 0:07:00.120 --> 0:07:03.679 Bloomberg Quick Take, powered by more than seven hundred journalists 0:07:03.680 --> 0:07:06.839 and mantalist more than twenty countries. Michael Barn, this is 0:07:06.839 --> 0:07:09.440 Bloomberg Nather. Alright, Michael, thank you. It's five nineteen on 0:07:09.440 --> 0:07:12.320 Wall Street Live from the Bloomberg Interactive Broker Studios. This 0:07:12.440 --> 0:07:14.760 is Bloomberg day Break. Let's pick up on Michael's top 0:07:14.800 --> 0:07:18.240 story their former President Donald Trump returning to Washington, d C. 0:07:18.480 --> 0:07:22.400 For the first time since the chaotic end to his presidency. 0:07:22.520 --> 0:07:25.600 Let's bring in Joe matthew Are, Washington correspondent, host of 0:07:25.680 --> 0:07:29.560 Sound on Here on Bloomberg Radio. Joe, good morning. Let's 0:07:29.600 --> 0:07:33.680 set this thing up. Are we expecting announcement from the 0:07:33.680 --> 0:07:36.960 former president today, Well, no, we're not. That you know 0:07:37.040 --> 0:07:39.360 has been floated as an idea that he just say, 0:07:39.440 --> 0:07:41.560 you know, I'm going forward. We're gonna announce here, but 0:07:42.040 --> 0:07:44.680 it's not expected to happen, and we will likely get 0:07:44.760 --> 0:07:47.800 the same Trump speech that we tend to get was 0:07:47.880 --> 0:07:51.840 in Arizona last weekend, in South Carolina and so forth 0:07:51.880 --> 0:07:54.600 before that. But the fact of the matter is if 0:07:54.600 --> 0:07:57.600 he announced his campaign right now, it would not only 0:07:57.640 --> 0:08:00.240 telegraph his plans to a lot of other Republicans who 0:08:00.320 --> 0:08:02.200 are thinking about running, give them a chance to kind 0:08:02.240 --> 0:08:04.800 of organize, but it would also trigger federal election laws, 0:08:04.840 --> 0:08:07.000 would make his life a lot more difficult when it 0:08:07.000 --> 0:08:09.280 comes to raising money, so there's really little incentive to 0:08:09.280 --> 0:08:13.120 do so. And it would also potentially affect the mid 0:08:13.240 --> 0:08:17.440 term races as well as the Republican Party is trying. 0:08:17.520 --> 0:08:21.320 And you talk to most analysts expected to take over 0:08:21.360 --> 0:08:24.120 control of at least one House of Congress. Yeah, that's 0:08:24.120 --> 0:08:26.840 why we're hearing from a lot of Republicans. You know, hey, 0:08:27.080 --> 0:08:29.280 just give it a couple of months. What we need 0:08:29.320 --> 0:08:31.480 to get through the midterm election cycle. Here, you've got 0:08:31.480 --> 0:08:34.400 the January six hearing still percolating or not even done yet, 0:08:34.400 --> 0:08:38.160 and you know, come September we expect likely more. Also, 0:08:38.440 --> 0:08:42.040 you know, Donald Trump's endorsements have been mixed. He hasn't 0:08:42.080 --> 0:08:44.840 had the perfect record that that he would hope to 0:08:44.880 --> 0:08:47.679 have had in the midterm elections, and some Republican candidates 0:08:47.720 --> 0:08:50.080 will not appear with him on stage, as we saw 0:08:50.160 --> 0:08:52.120 with Glenn Youngcan for instance, when he was running for 0:08:52.200 --> 0:08:56.160 governor in Virginia. That became kind of a recipe for success, 0:08:56.240 --> 0:08:59.480 you know, to out the Trump policies, but don't have 0:08:59.559 --> 0:09:01.720 him make ads where you don't do rallies with him. 0:09:01.720 --> 0:09:04.359 And that's gonna be the case for at least some Republicans. 0:09:04.600 --> 0:09:08.560 So waiting until we get through November would certainly keep 0:09:08.600 --> 0:09:10.520 things a little more simple for the party and to 0:09:10.720 --> 0:09:15.080 that point, Joe about keeping the talk toward policy. The 0:09:15.120 --> 0:09:17.640 president or the former president is going to be speaking 0:09:17.679 --> 0:09:22.199 today to the America First Policy Institute. So are we 0:09:22.320 --> 0:09:26.280 expecting a policy speech from the former president? Well, and 0:09:26.360 --> 0:09:29.680 it's so, what kind of policy could he be putting forwards? Well, 0:09:29.679 --> 0:09:32.679 you'll hear about the border. He's been saying recently in 0:09:32.840 --> 0:09:35.520 his stump speech that he completed the wall, and I 0:09:35.559 --> 0:09:38.000 suspect that we'll hear that again, even though the wall 0:09:38.120 --> 0:09:40.719 was never finished. Uh, he says that, you know, they 0:09:40.720 --> 0:09:42.360 tried to add to it and so forth. But we'll 0:09:42.360 --> 0:09:45.640 hear about that. We'll hear about I'm sure trade policies, 0:09:46.200 --> 0:09:49.079 will hear about the war in Afghanistan, the withdrawal. These 0:09:49.120 --> 0:09:51.360 are typically the things that he hits on with regard 0:09:51.400 --> 0:09:54.160 to policy when we talk about uh, kind of his 0:09:54.280 --> 0:09:57.680 standard speech that that he's been crafting lately. But look, 0:09:57.720 --> 0:10:00.600 this is gonna be a room full of support orders here. 0:10:01.160 --> 0:10:03.720 And when the president the former president gets in an 0:10:03.800 --> 0:10:06.320 environment like that, he's known to stray off off the 0:10:06.360 --> 0:10:08.440 copy here. You know, he'll he'll be looking left and 0:10:08.520 --> 0:10:11.160 right at the paddles, looking at the teleprompter. But then 0:10:11.160 --> 0:10:13.560 when he looks straight out there and he starts telling jokes, 0:10:13.559 --> 0:10:15.760 maybe drops an F bomb, as he's also been doing 0:10:15.800 --> 0:10:18.160 and most of his speeches recently. I don't think that 0:10:18.200 --> 0:10:21.520 will necessarily happen today. That's when the news tends to 0:10:21.559 --> 0:10:23.400 be made. Let's see what he says off the script, 0:10:23.480 --> 0:10:26.040 Nathan and uh. In the lead up to this speech, 0:10:26.080 --> 0:10:28.559 of course, we were expecting that there was gonna be 0:10:28.679 --> 0:10:32.720 a potential for upstaging by former Vice President Mike Pence, 0:10:32.760 --> 0:10:35.760 but I guess weather kept him from making his scheduled 0:10:35.800 --> 0:10:39.520 speech last night. Does that potentially change the dynamic for 0:10:39.640 --> 0:10:42.840 what we're expecting from former President Trump later today, Well, 0:10:42.880 --> 0:10:45.079 he certainly won't be able to react to what Mike 0:10:45.120 --> 0:10:47.559 Pence was gonna say, and he's you know, certainly doesn't 0:10:47.559 --> 0:10:50.480 have any qualms about mentioning Mike Pence in his speech. 0:10:50.520 --> 0:10:52.719 But I don't think Donald Trump was looking at this, 0:10:52.960 --> 0:10:55.920 you know, as the dueling speeches that that that we 0:10:55.920 --> 0:10:57.960 were all kind of framing it to be in the media. 0:10:58.040 --> 0:10:59.840 He's living in his own universe here. But I have 0:10:59.880 --> 0:11:01.440 to admit a lot of us were more curious to 0:11:01.480 --> 0:11:04.559 hear what Mike Pence was gonna say, whether, in fact 0:11:04.679 --> 0:11:07.080 he would try to to to go to greater lengths 0:11:07.120 --> 0:11:10.839 to separate himself from Donald Trump or the opposite. In 0:11:10.880 --> 0:11:13.920 a speech just last week before an evangelical crowd in 0:11:13.920 --> 0:11:16.520 South Carolina, you know, Mike Pence said it was the 0:11:16.559 --> 0:11:19.640 honor of his career to serve in what he called 0:11:19.960 --> 0:11:23.920 the most pro life administration in American history. He's got 0:11:23.960 --> 0:11:27.240 issues with Donald Trump. He's he's he's already talked about 0:11:27.280 --> 0:11:30.000 that publicly, but there are things that he has to 0:11:30.080 --> 0:11:32.720 say that that are actually not negative at all. In 0:11:32.800 --> 0:11:35.000 fact that if he enjoyed working with Donald Trump on 0:11:35.080 --> 0:11:38.800 issues like abortion. So it's gonna be interesting to see 0:11:38.840 --> 0:11:41.520 how Mike Pence frames this and whether he's looking for 0:11:41.559 --> 0:11:45.520 a run himself. A Trump Pence campaign, not on the 0:11:45.559 --> 0:11:47.719 same ticket, but against each other would be a heck 0:11:47.720 --> 0:11:49.800 of a race to watch, Nathan. Yeah, and it was 0:11:49.920 --> 0:11:52.720 gonna add even more of a dynamic as we are expecting, 0:11:52.880 --> 0:11:55.600 potentially a pretty wide open field when you think about 0:11:55.640 --> 0:11:58.480 Rohn De Santis as well, potentially in the mix as well. 0:11:58.840 --> 0:12:02.040 We'll leave it there for now, unfortunately for time. Thanks Joe, 0:12:02.120 --> 0:12:03.960 always great having you on with us, Joe, Pa Matthews. 0:12:04.000 --> 0:12:06.320 In fact, is gonna be backwound with us later on 0:12:06.400 --> 0:12:08.560 in this program as well, And of course you can 0:12:08.640 --> 0:12:12.000 catch Joe Oh Gosh every weekday five pm. Wall Street 0:12:12.040 --> 0:12:16.319 Time Bloomberg sound on here on Bloomberg Radio, Washington. Correspondent 0:12:16.440 --> 0:12:18.880 Joe Matthew with us this morning, looking ahead to the 0:12:18.880 --> 0:12:21.679 market open ahead of the start of the FEDS two 0:12:21.720 --> 0:12:24.360 day policy meeting. Futures are moving a touch lower, with 0:12:24.480 --> 0:12:28.000 SMP futures now down ten points, Staff futures down a four, 0:12:28.559 --> 0:12:31.760 NAZAC futures are lower by thirty four points, Tenure treasury 0:12:31.800 --> 0:12:34.840 up five thirty seconds. The yield two point seven seven 0:12:34.960 --> 0:12:38.200 per cent. Just ahead, we have more on the FEDS 0:12:38.320 --> 0:12:41.280 July meeting as it gets underway. Walmart sinking after cutting 0:12:41.280 --> 0:12:47.960 its forecast. You're listening to Bloomberg day Break Bloomberg eleven 0:12:48.000 --> 0:12:50.440 three oh weather partly sunny, less human today, mid eighties 0:12:50.440 --> 0:12:52.880 for highs. We'll have a chance for after news showers 0:12:52.880 --> 0:12:56.400 and thunderstorms tomorrow and Thursday, both days near ninety Right 0:12:56.440 --> 0:13:02.760 now seventy two in Central Park by from the Bloomberg 0:13:02.760 --> 0:13:06.360 Interactive Burger Studios. This is Bloomberg Daybreak for Tuesday, July 0:13:06.400 --> 0:13:10.360 twenty six two. Coming up this hour former President Trump 0:13:10.360 --> 0:13:12.920 returns to d C as talks of another run for 0:13:13.000 --> 0:13:15.520 office heat off. The FED prepares another rate hunk as 0:13:15.520 --> 0:13:19.240 the Central Banks policy meeting gets underway. Walmart chairs sank 0:13:19.320 --> 0:13:22.360 after the company lowers its forecast, and candidates in the 0:13:22.480 --> 0:13:25.640 UK make their case to replace Boris Johnson. New York's 0:13:25.720 --> 0:13:28.240 MTA says it may take thirteen years to match pre 0:13:28.360 --> 0:13:31.640 COVID ridership. Colt's talk of Speaker Pelosi possibly heading to 0:13:31.640 --> 0:13:35.360 Taiwan has made China furious. I'm Michael varn More, I'm 0:13:35.400 --> 0:13:37.360 John Stave, Darren Sports. The Mets and the yank You 0:13:37.480 --> 0:13:40.559 both in first place begin a two game Subway series 0:13:40.559 --> 0:13:46.520 tonight at City Field. That's all's training ahead on Bloomberg 0:13:46.600 --> 0:13:51.679 Daybreak on Bloomberg eleven, FREEO New York, Bloomberg one, Washington, 0:13:51.800 --> 0:13:55.400 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:13:55.480 --> 0:13:59.640 sixties and Francisco Sirius XAM one nine Team and around 0:13:59.679 --> 0:14:02.440 the world Old on Bloomberg Radio, dot Com and via 0:14:02.520 --> 0:14:09.600 the Bloomberg Business App. Good morning, I'm Nathan Hager and 0:14:09.640 --> 0:14:12.720 I'm Karen Moscow and US Dot Index futures are lower 0:14:12.840 --> 0:14:14.640 this morning. We are coming up to five o one 0:14:14.679 --> 0:14:16.680 on Wall Street, and we check the markets every fifteen 0:14:16.679 --> 0:14:19.320 minutes throughout the trading day on Bloomberg. Right now, S 0:14:19.360 --> 0:14:22.360 and P futures are down nine points, dal future is 0:14:22.400 --> 0:14:25.120 down a hundred eight and NASDAG futures down thirty eight. 0:14:25.200 --> 0:14:27.480 The decks in Germany's down three towns of upper cent 0:14:27.800 --> 0:14:30.360 and the tenure treasury up five thirty seconds held two 0:14:30.360 --> 0:14:32.840 points seven seven percent. They yield on the two year 0:14:33.120 --> 0:14:36.240 three point one percent. Nathan Karen, We'll get back to 0:14:36.280 --> 0:14:38.400 the markets in a moment, but we begin this morning 0:14:38.440 --> 0:14:41.840 in the nation's capital. That's where former President Donald Trump 0:14:41.920 --> 0:14:44.640 is returning for the first time since he left office. 0:14:44.920 --> 0:14:48.720 Amy Morris has details from our Bloomberg newsroom in Washington. 0:14:49.200 --> 0:14:52.080 Donald Trump will be back inside the Beltway as Republican 0:14:52.160 --> 0:14:56.000 rivals maneuver for a possible primary challenge and lawmakers probe 0:14:56.040 --> 0:14:59.560 his culpability for the January six insurrection. He'll deliver the 0:14:59.600 --> 0:15:02.360 keynote to dress at the America First Agenda summit held 0:15:02.360 --> 0:15:05.960 by the conservative think tank the America First Policy Institute, 0:15:06.080 --> 0:15:09.240 launched by some former Trump One House advisers. He's not 0:15:09.320 --> 0:15:11.320 expected to announce a run for the White House during 0:15:11.360 --> 0:15:14.880 today's speech, which will be his highest profile speech since 0:15:14.960 --> 0:15:18.400 leaving office in Washington, I'm anymore is Bloomberg Day Break? 0:15:18.440 --> 0:15:20.680 All right, Amy, thank you, well, let's stay in Washington 0:15:20.680 --> 0:15:23.160 where the Federal Reserves two day meeting kicks off today. 0:15:23.240 --> 0:15:25.480 The Central Bank is set to raise rates again. That's 0:15:25.480 --> 0:15:28.640 despite GDP numbers due out Thursday, which could show the 0:15:28.720 --> 0:15:32.880 US contracted and back to back quarters, signaling a recession. However, 0:15:32.920 --> 0:15:35.800 moody Is Chief economist Mark Xandy tells us there are 0:15:35.960 --> 0:15:38.720 not recession signs at the moment. When you have a 0:15:38.720 --> 0:15:40.560 lot of jobs, you have low layoffs, and a lot 0:15:40.560 --> 0:15:43.640 of consumer spending. Income growth is strong. That's not consistent 0:15:43.960 --> 0:15:47.240 with a recession. This is not a recession. Moody Chief 0:15:47.240 --> 0:15:50.800 Economist Mark Sandy says. If the economy does contract, it's 0:15:50.840 --> 0:15:53.360 likely to be in the next six months. He spoke 0:15:53.360 --> 0:15:56.520 of our Washington correspondent Joe Matthew on Bloomberg Sound on 0:15:56.680 --> 0:15:59.960 Catch the program weekday, said five pm Eastern on Bloomberg Radio, 0:16:00.000 --> 0:16:02.000 all right, let's get back to markets now, Karen, where 0:16:02.080 --> 0:16:04.800 US futures are moving lower ahead of the Fed meeting. 0:16:04.920 --> 0:16:08.040 Lisa Erickson, Senior Vice President with US Bank says she's 0:16:08.080 --> 0:16:12.280 preaching caution. We are modestly cautious advising our clients to 0:16:12.800 --> 0:16:16.360 move all other things being equal, away from equity and 0:16:16.400 --> 0:16:20.480 more to quality fixed income, where again historically they've been 0:16:20.520 --> 0:16:23.720 able to hold up in times of market volatility. Lisa 0:16:23.840 --> 0:16:26.720 Ericson with US Bank thinks the US will narrowly avoid 0:16:26.720 --> 0:16:29.880 a recession as inflation begins to recede. Well. Turning to 0:16:29.920 --> 0:16:33.000 oil now, Nathan Crewde is advancing for a second session, 0:16:33.120 --> 0:16:36.160 signs of a tight marketer, offsetting concerns about an economic 0:16:36.240 --> 0:16:39.480 slowdown and checking prices now nine x screwed oil is 0:16:39.560 --> 0:16:41.800 up two point two, up two dollars seven cents and 0:16:41.920 --> 0:16:44.640 ninety eight dollars seventy nine cents of barrel Brent is 0:16:44.680 --> 0:16:48.000 at one point nine and a hundred seven dollars nineteen cents. 0:16:48.080 --> 0:16:52.080 And we're also seeing volatility and overseas energy markets. Russia 0:16:52.080 --> 0:16:55.680 plans to curb natural gas flows on the North Stream pipeline, 0:16:55.960 --> 0:16:58.760 and that's jolting energy markets in Europe well meantime in 0:16:58.800 --> 0:17:01.600 the UK, care in Canada, it's for Prime Minister Face Staff. 0:17:01.600 --> 0:17:04.840 In another primetime debate last night, Liz Trust and Rishi 0:17:05.000 --> 0:17:07.879 Sunac are vying to replace Boris Johnson and bloombergs You 0:17:07.920 --> 0:17:10.760 and Putts joins us live in London with more good Morning, 0:17:11.359 --> 0:17:14.080 good Morning, Nathan and Karen strong stuff from the final 0:17:14.119 --> 0:17:17.679 two candidates in the Conservative Party leadership race. In a 0:17:17.720 --> 0:17:21.080 TV debate, Foreign Secretary Liz trust warn that tax rises 0:17:21.119 --> 0:17:24.720 would send the UK into a recession. Everybody thinks the 0:17:24.840 --> 0:17:28.560 putting up taxes at this moment is going to hurt 0:17:28.600 --> 0:17:32.199 the economy. You can't put up taxes and get growth 0:17:32.760 --> 0:17:35.760 if we follow Riscie's plans, can we are headed for? 0:17:37.320 --> 0:17:40.520 That was Foreign Secretary Liz Trust. There. Meanwhile, former Chancellor 0:17:40.600 --> 0:17:43.480 Riscie Sunac came that his opponent's tax plans would push 0:17:43.520 --> 0:17:47.480 up inflation and mortgages. Proposals would mean that we get 0:17:47.480 --> 0:17:51.440 the short term sugar rush of unfunded borrow tax cards, 0:17:51.480 --> 0:17:54.280 but that would be followed by the crash of higher 0:17:54.320 --> 0:17:58.520 prices and higher mortgage rates. That was former Chancellor Riscie Sunac. 0:17:58.800 --> 0:18:01.239 Whoever wins the six week on contest end up as 0:18:01.280 --> 0:18:04.320 the next British Prime minister. But with a tax like these, 0:18:04.400 --> 0:18:06.640 it's easy to forget that both members of the same 0:18:06.640 --> 0:18:09.960 political party in London I'm you and part break a 0:18:10.040 --> 0:18:11.680 right you and thank you all back here in the US, 0:18:11.760 --> 0:18:15.000 corporate earnings are in focus today. Shares of Walmart are 0:18:15.200 --> 0:18:17.800 down eight and a half percent in early training after 0:18:17.840 --> 0:18:20.960 the company lowered its forecast for the second quarter. Plumbergs 0:18:21.000 --> 0:18:23.000 or need a young joint Us Live with the details, 0:18:23.080 --> 0:18:25.320 or need a good morning, Good morning Karen Ana. Let's 0:18:25.359 --> 0:18:28.520 say Walmart's warning gives more insight into the health of 0:18:28.520 --> 0:18:31.760 the U. S consumer that's likely to signal more pain 0:18:31.800 --> 0:18:34.480 ahead for retail stocks as they take on food and 0:18:34.600 --> 0:18:38.600 gas inflation. Morgan Stanley cut its price target for Walmart. 0:18:38.880 --> 0:18:42.000 It says it's challenges the broker's view of the retail 0:18:42.040 --> 0:18:45.160 giant as a safe haven play. City analysts didn't think 0:18:45.160 --> 0:18:47.919 Walmart would be hit as much as others say. The 0:18:47.960 --> 0:18:51.440 news is a signed that marginally higher income consumers are 0:18:51.440 --> 0:18:54.880 starting to feel the pinch from inflation. But Piper Sandler 0:18:54.960 --> 0:18:57.800 says it's too early to take a more constructive view 0:18:57.840 --> 0:19:00.679 on Walmart, so analysts there are eating one a more 0:19:00.720 --> 0:19:04.600 broad earnings reset industry wide Live in New York. I'm 0:19:04.640 --> 0:19:06.960 rened a young Bloomberg Daybreak, I re need a thanks. 0:19:07.000 --> 0:19:10.320 Turning to earnings in Europe. This morning, UBS reported weaker 0:19:10.320 --> 0:19:13.160 than expected profit for the second quarter. The global market 0:19:13.200 --> 0:19:15.639 so off kept wealthy clients on the sidelines as the 0:19:15.680 --> 0:19:19.600 Swiss Bank saw outflows of twelve billion dollars. Surging prices 0:19:19.600 --> 0:19:22.399 and slowing growth also hit UBS results. We spoke of 0:19:22.480 --> 0:19:25.280 the CEO, Ralph Hammers about his outlook for inflation and 0:19:25.280 --> 0:19:29.359 how it's affecting businesses and some businesses there's still quite 0:19:29.400 --> 0:19:31.600 some tension in the labor markets, so that has not 0:19:31.720 --> 0:19:34.880 gone completely away yet. So it's the mixt of inflations 0:19:35.119 --> 0:19:39.280 and the labor market circumstances. If inflation continues to be here, 0:19:39.440 --> 0:19:42.560 of course, it will be reflected ultra inlying. UBS CEO 0:19:42.640 --> 0:19:44.440 Ralph Hammers called the second quarter one of the most 0:19:44.560 --> 0:19:46.800 challenging periods in the last ten years. Right now, the 0:19:46.800 --> 0:19:49.400 shares are down more than five and a half percent. Well. 0:19:49.480 --> 0:19:52.600 Unilever also out with earnings. Nathan results are mostly in 0:19:52.680 --> 0:19:55.879 line with estimates. The company is raising prices to battle inflation. 0:19:55.920 --> 0:19:59.239 That's helping to offset certain costs, and shares are up 0:19:59.280 --> 0:20:02.920 two point eight percent In London. Futurists this morning or 0:20:03.000 --> 0:20:06.080 lower s and P futures down seven points this morning down, 0:20:06.080 --> 0:20:09.280 Futures down a hundred and nowsday, Futures down thirty tenure 0:20:09.320 --> 0:20:12.760 Treasury up seven thirty seconds here two point seven seven percent, 0:20:13.119 --> 0:20:16.639 straight ahead, your latest local headlines, plus a check of sports. 0:20:17.160 --> 0:20:27.720 And This is Bloomberg broadcasting live from the Bloomberg Interactive 0:20:27.760 --> 0:20:31.640 Broker Studio in New York. Bloomberg E Living Freedland to Washington, 0:20:31.720 --> 0:20:35.760 d C. Bloomberg to Boston, Bloomberg one O six one 0:20:35.920 --> 0:20:39.360 to San Francisco, Bloomberg N sixty to the country, Sirius 0:20:39.520 --> 0:20:42.680 XM Cho one nineteen and around the globe, the Bloomberg 0:20:42.720 --> 0:20:48.080 Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 0:20:53.080 --> 0:20:55.240 It's by thirty on Wall Street. Good morning. I'm Nathan 0:20:55.280 --> 0:20:58.120 Hagar and I'm Ferard Moscow. We are just about four 0:20:58.200 --> 0:21:00.760 hours away from the open of US rating. Let's hit 0:21:00.760 --> 0:21:02.199 you up to date on the news you need to 0:21:02.240 --> 0:21:04.440 know at this hour or begin in the nation's capital, 0:21:04.480 --> 0:21:07.600 where much of the focus will be today on former 0:21:07.640 --> 0:21:10.719 President Trump is returning for the first time since leaving office, 0:21:10.960 --> 0:21:13.320 and the Federal Reserves two day meetings kick off today. 0:21:13.400 --> 0:21:15.320 The Central Bank is set to raise rates as it 0:21:15.359 --> 0:21:19.359 looks to tamp down inflation. US features are lower this morning, Karen, 0:21:19.359 --> 0:21:22.439 as markets get ready for the feds next move. Lisa Ericson, 0:21:22.560 --> 0:21:25.360 senior vice president with US Banks, says she's preaching caution 0:21:25.400 --> 0:21:29.240 on stocks. We are more defensive right now again, while 0:21:29.280 --> 0:21:31.800 in the near term we see some of that underlying 0:21:31.840 --> 0:21:35.560