WEBVTT - Bloomberg Daybreak: July 13, 2022 - Hour 1 (Radio) 0:00:04.640 --> 0:00:07.920 Live from the Bloomberg Interactive Bruger Studios. This is Bloomberg 0:00:08.039 --> 0:00:11.879 day Break for Wednesday, July thirteen two. Coming up this hour, 0:00:12.360 --> 0:00:16.000 Wall Street awaits this morning's key report on inflation. Oil 0:00:16.040 --> 0:00:20.119 prices stabilized following yesterday sell off. Twitter fires back in 0:00:20.200 --> 0:00:23.239 its battle with Elon Musk, and we take you to Israel, 0:00:23.280 --> 0:00:26.480 where President Biden begins his Middle East trip. The bolding 0:00:26.520 --> 0:00:29.000 accident in the Hudson River is left to keep people dead. 0:00:29.120 --> 0:00:31.680 Plus a gun rights group is suing New York's assault 0:00:31.680 --> 0:00:35.440 weapons ban. I'm Michael larm More Ahead, I'm John stash 0:00:35.479 --> 0:00:38.000 Own sports the Cincinnati Reds with four of the ninths. 0:00:38.040 --> 0:00:40.440 Don the Yankees sent them to a third strade, loss them. 0:00:40.479 --> 0:00:45.839 That's lost in Atlanta. That's all. S Trady Ahead on 0:00:45.920 --> 0:00:49.320 Bloomberg day Break on Bloomberg eleven, Free on New York, 0:00:49.520 --> 0:00:54.160 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.440 --> 0:00:58.880 Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:59.120 --> 0:01:02.040 and around the world. Old on Bloomberg Radio Dot Carmen 0:01:02.200 --> 0:01:09.480 via The Bloomberg Business. Good Morning. I'm Nathan Hager, and 0:01:09.520 --> 0:01:13.240 I'm Karen Moscow. US DOT Index futures are higher this morning. 0:01:13.240 --> 0:01:14.959 We're coming up to six o one on Wall Street, 0:01:14.959 --> 0:01:17.120 and we checked the markets every fifteen minutes throughout the 0:01:17.160 --> 0:01:20.320 trading day on Bloomberg guess in P futures of nine 0:01:20.360 --> 0:01:23.399 points down, futures up sixty three, and NAZAC futures at 0:01:23.400 --> 0:01:26.000 thirty five. The decks in Germany is down about three 0:01:26.080 --> 0:01:29.319 quarters of a percent. Ten year treasury up to thirty seconds, 0:01:29.360 --> 0:01:31.800 the yale two point nine five percent, and the yield 0:01:31.880 --> 0:01:35.040 on the two year three point oh four percent. The 0:01:35.200 --> 0:01:38.040 euro is at one point zero zero three eight against 0:01:38.120 --> 0:01:41.000 the dollar. The yen is at one thirty seven point 0:01:41.080 --> 0:01:43.720 oh eight, and looking at bitcoin this morning, it's higher. 0:01:43.800 --> 0:01:47.160 It's at nineteen thousand is seven hundred and ninety dollars. 0:01:47.280 --> 0:01:50.120 Nathan Well, Karen, we begin with the big inflation report 0:01:50.160 --> 0:01:52.200 Wall Streets bracing four. In about two and a half 0:01:52.240 --> 0:01:55.320 hours from Washington, the government will issue the Consumer Price 0:01:55.400 --> 0:01:58.600 Index for June. It's expected to show no let up 0:01:58.640 --> 0:02:02.680 on inflation. Amy Morris has more from our bloombergs room 0:02:02.720 --> 0:02:06.160 in Washington. May CPI rose eight point six percent year 0:02:06.200 --> 0:02:09.560 over year, abroad based increase and the largest in forty years. 0:02:09.919 --> 0:02:12.359 June's reading could be even higher based on a survey 0:02:12.440 --> 0:02:15.640 of Wall Street economists. At the same time, Blueberg Economics 0:02:15.639 --> 0:02:18.800 says today's report will be balanced by recent evidence that 0:02:18.880 --> 0:02:22.280 inflation as well as economic growth may be moderating. The 0:02:22.280 --> 0:02:25.079 Federal Reserve is expected to keep raising interest rates to 0:02:25.120 --> 0:02:29.119 contain inflation by tempering economic growth. In Washington, I'm any 0:02:29.160 --> 0:02:32.040 more as Bloomberg daybreak, heymy thank you. The tom priority 0:02:32.040 --> 0:02:35.160 for the Federal Reserve has curbing inflation, and Richmond Fed 0:02:35.200 --> 0:02:38.400 President Thomas Barkin sees another fifty or seventy five basis 0:02:38.400 --> 0:02:40.920 point rate high coming this month. We're engaged in a 0:02:41.000 --> 0:02:44.959 very challenging exercise, which is m to try to cool 0:02:45.000 --> 0:02:47.840 the economy down to normal levels right in an effort 0:02:47.840 --> 0:02:50.600 to bring inflation out of under control, but without the 0:02:50.600 --> 0:02:54.600 intent of trying to cool it so down that that 0:02:54.600 --> 0:02:57.240 that the decline is calamitous. The right policies to get 0:02:57.240 --> 0:03:00.960 inflation under control. Richmond Fed President Thomas Barkin says today's 0:03:00.960 --> 0:03:03.960 CPI reading will inform the Central banks next move. He 0:03:04.080 --> 0:03:05.959 is not a voter around this year's rate setting. F 0:03:06.040 --> 0:03:08.679 O m C will higher. Gas and oil prices have 0:03:08.760 --> 0:03:11.200 been a major contributor to price spike's Karen, and today 0:03:11.240 --> 0:03:15.080 we're seeing crude higher following yesterday's nearly eight percent decline. 0:03:15.400 --> 0:03:18.520 This morning, the International Energy Agency warns that oil prices 0:03:18.560 --> 0:03:21.320 pose a high risk to the global economic recovery, with 0:03:21.400 --> 0:03:23.640 signs that fuel costs are starting to take their toll 0:03:23.960 --> 0:03:26.960 on demand growth. Right now, West Texas intermediate crudes up 0:03:27.040 --> 0:03:30.760 six six tenths percent, sixty cents higher at ninety six 0:03:31.120 --> 0:03:34.120 forty three cents of Arrol Well Nathan. A sergein gasoline 0:03:34.160 --> 0:03:36.640 prices this year has Americans changing their minds on the 0:03:36.680 --> 0:03:39.160 next car they will drive, and we get the details 0:03:39.160 --> 0:03:42.440 around Bloomberry se Lisa Mateo. According to a survey by 0:03:42.440 --> 0:03:46.119 the American Automobile Association, a quarter of Americans say their 0:03:46.160 --> 0:03:48.920 next car will be an electric vehicle. More than three 0:03:49.000 --> 0:03:51.520 fourths of them say their interest is driven by a 0:03:51.600 --> 0:03:54.720 desire to save on fuel costs. Gas prices, which have 0:03:54.800 --> 0:03:57.120 come down this month, reached a record five dollars and 0:03:57.160 --> 0:04:00.240 two cents a gallon in June. Millennials are the most 0:04:00.240 --> 0:04:03.440 eager to electrify their ride, with thirty percent saying they 0:04:03.480 --> 0:04:06.480 planned to buy an EV next Last year, only three 0:04:06.480 --> 0:04:09.960 point two percent of US vehicles for E vs. Lisa 0:04:09.960 --> 0:04:13.560 Matteo Bloomberg Daybreak. Al Right, Lisa, thanks. Let's turn to 0:04:13.600 --> 0:04:17.040 corporate news now, where Twitter is escalating its battle with 0:04:17.080 --> 0:04:20.400 Elon Musk. For the details were joined live by Bloomberg's 0:04:20.400 --> 0:04:23.160 Rene A Young. Good morning, Na, Good morning, Nathan. Twitter 0:04:23.320 --> 0:04:26.479 is suing Elon Musk after he abandoned his forty four 0:04:26.520 --> 0:04:29.800 billion dollar takeover bid, and the company is accusing him 0:04:29.839 --> 0:04:34.040 of having buyer's remorse after his fortune declined. Twitter lawyers 0:04:34.080 --> 0:04:37.000 say Musk should be forced to honor his agreement. The 0:04:37.080 --> 0:04:40.320 lawsuit says that Twitter has bent over backwards to provide 0:04:40.360 --> 0:04:43.960 him with the information he's requested. Musk has been disputing 0:04:44.000 --> 0:04:47.320 claims that Twitter has less than five percent of its 0:04:47.400 --> 0:04:50.840 users as bots and wanted more proof, but he ultimately 0:04:50.880 --> 0:04:54.560 abandoned the deal partially because of those concerns. This filing 0:04:54.720 --> 0:04:57.640 is setting up what will be the closely watched battle 0:04:57.720 --> 0:05:00.880 in the Delaware court system. Life, New York. I'm really 0:05:00.880 --> 0:05:03.240 need a Young Bloomberg day Break. I need to thank you. 0:05:03.360 --> 0:05:06.719 Turning to politics now, It's all about geo politics. President 0:05:06.760 --> 0:05:11.000 Biden submittast trip is underway. His first off Israel Bloomberg's 0:05:11.040 --> 0:05:13.520 and Marie Hordern is traveling with the President and final 0:05:13.600 --> 0:05:17.320 dis report from Jerusalem. Don't expect any major breakthroughs when 0:05:17.360 --> 0:05:19.880 it comes to the United States and the Israeli government. 0:05:20.080 --> 0:05:23.279 It recently collapse and they're looking ahead to elections in November. 0:05:23.640 --> 0:05:26.840 One key focus of this administration has been to normalize 0:05:26.880 --> 0:05:30.200 more Arab countries with Israel, and a key focus in 0:05:30.240 --> 0:05:32.800 a country to watch out for Saudi Arabia. But there 0:05:32.839 --> 0:05:36.480 won't be any massive breakthroughs when it comes to dialogue 0:05:36.560 --> 0:05:39.840 or peace talks with the Kingdom, but potentially more Saudi 0:05:39.880 --> 0:05:43.760 airspace being open to more Israeli flights. The President himself 0:05:43.800 --> 0:05:45.880 will be one of them, the first president United States 0:05:45.920 --> 0:05:49.120 to fly from Israel to Jetta. Later in the week, 0:05:49.400 --> 0:05:52.760 the President is backtracking on a campaign promise to make 0:05:52.800 --> 0:05:55.200 the Kingdom of Priyah, but at home he needs the 0:05:55.200 --> 0:05:57.240 Saudi's help to put more oil on the market to 0:05:57.279 --> 0:06:02.279 bring gasoline prices down in Jerusalem. I'm a Hordern Bloomberg News, Okay, 0:06:02.279 --> 0:06:04.279 and Marie, thank you. Back here in the US, the 0:06:04.279 --> 0:06:08.080 political focus remains on Capitol Hill. The House January sixth 0:06:08.120 --> 0:06:12.040 Committee says it's investigating the possibility that former President Donald 0:06:12.080 --> 0:06:16.040 Trump directly tried to contact a witness, Bloomberg said, Baxter 0:06:16.200 --> 0:06:19.920 has the story. The potentially explosive announcement by Committee Vice 0:06:20.000 --> 0:06:23.480 Chairless Chaney was saved for the end. After our last hearing, 0:06:23.960 --> 0:06:28.360 President Trump tried to call a witness in our investigation, 0:06:28.920 --> 0:06:32.000 a witness you have not yet seen in these hearings. 0:06:32.760 --> 0:06:37.080 That person declined to answer or respond to President Trump's 0:06:37.160 --> 0:06:40.120 call and turned over the evidence to an attorney, who 0:06:40.200 --> 0:06:43.640 in turn contact of the committee. Chaney says, Now it 0:06:43.680 --> 0:06:45.599 has been turned over to the d o J for 0:06:45.680 --> 0:06:49.880 possible charges of tampering with a witness in San Francisco. 0:06:49.920 --> 0:06:52.280 I'm at Baxter Bloomberg daybreak, all right, and thank you. 0:06:52.480 --> 0:06:55.400 SMP futures are higher, up about nine points this morning. 0:06:55.400 --> 0:06:58.800 Down futures up sixty two and nasday futures up thirty four. 0:06:58.960 --> 0:07:01.240 The decks in Germany is down about eight tens of 0:07:01.360 --> 0:07:04.720 uppercent ten year treasury up three thirty seconds, held two 0:07:04.720 --> 0:07:07.000 point nine five percent, and they yield on the two 0:07:07.120 --> 0:07:09.800 year three point oh three percent. And again n I 0:07:09.920 --> 0:07:12.440 make screwed. Oil is up three quarters of a percent. 0:07:12.880 --> 0:07:15.800 Straight ahead or latest local headlines plus a check of 0:07:15.960 --> 0:07:24.200 sports and this is Bloomberg. Thanks caring at six oh 0:07:24.240 --> 0:07:26.560 seven on Wall Street, where as seventy five degrees in 0:07:26.640 --> 0:07:29.200 Central Park dealing with an accident still on the South 0:07:29.360 --> 0:07:32.320 New York State three wave hast eggs at sixteen. Details 0:07:32.360 --> 0:07:35.760 coming up in traffic. First. Michael Barr details on an 0:07:35.800 --> 0:07:39.440 accident on the Hudson River. Michael, it was a tragic afternoon. 0:07:39.520 --> 0:07:42.240 At least two are dead and ten injured after a 0:07:42.320 --> 0:07:45.880 boat capsized in New York City Sudson River. The cause 0:07:45.920 --> 0:07:48.400 of the accident is under investigation, but the twenty seven 0:07:48.400 --> 0:07:51.320 foot private boat was in calm waters when it went 0:07:51.360 --> 0:07:54.800 down near Midtown Manhattan. New York City Mayor Eric Adams 0:07:54.800 --> 0:07:57.960 called a devastating moment for the city. Between New York 0:07:57.960 --> 0:08:03.760 Waterway Harbor f and gals who participated a week clearly 0:08:03.880 --> 0:08:08.480 saved live. New York Fire Commissioner Laura Kevanah spoke about 0:08:08.520 --> 0:08:11.160 the conditions of the others. Are two New Yorker is 0:08:11.200 --> 0:08:14.880 in critical condition in the hospitals and an additional New 0:08:14.960 --> 0:08:18.120 Yorker who is stable the critical at the hospital at 0:08:18.160 --> 0:08:21.480 this time. We also have eight additional patients who are 0:08:21.600 --> 0:08:25.480 green tags and are in stable condition. Fire Commissioner Laura Kevanagh. 0:08:25.520 --> 0:08:28.840 The boat was charted by a group of family and friends. 0:08:29.280 --> 0:08:32.840 The January six panel revealed Donald Trump fought objections from 0:08:32.880 --> 0:08:36.120 his White House lawyers to a plan eventually discarded to 0:08:36.280 --> 0:08:41.120 see states voting machines. The panel says, then Trump summoned 0:08:41.160 --> 0:08:44.240 supporters to march on the US capital, but we're turned 0:08:44.240 --> 0:08:48.480 into the deadly riot. Former oath Keepers spokesman Jason van 0:08:48.559 --> 0:08:52.640 Tatanhoef testified he wants more accountability. There was a gallows 0:08:52.679 --> 0:08:55.640 set up in front of the capital. This could have 0:08:55.679 --> 0:08:59.040 been the spark that started a new civil war and 0:08:59.120 --> 0:09:02.520 no one would have won there. That would have been 0:09:02.559 --> 0:09:07.160 good for no one. Former oath Keeper Jason van Teytenhof 0:09:07.320 --> 0:09:09.800 says that he's worried about what will happen if Trump 0:09:09.840 --> 0:09:14.240 is reelected. Local media and Texas released edited surveillance videos 0:09:14.240 --> 0:09:17.439 showing law enforcement and Voldi waiting more than an hour 0:09:17.760 --> 0:09:20.880 to take action after our gunmen enter the broad Elementary school, 0:09:21.120 --> 0:09:25.200 killing nineteen children and two teachers. Police officers are seen 0:09:25.280 --> 0:09:27.600 in the video waiting in the hallway during the massacre. 0:09:27.920 --> 0:09:30.880 According to CNN, one leaked segment of the video shows 0:09:30.880 --> 0:09:33.360 the gunman entering the school and walking down the hallway 0:09:33.440 --> 0:09:36.920 with a long rifle. The recording also shows officers approaching 0:09:36.920 --> 0:09:39.719 the classroom that the shooter was in, but then retreating 0:09:39.760 --> 0:09:43.040 down the hallway and taking cover when gunfire is heard. 0:09:43.360 --> 0:09:46.319 A gun rights group sued to overturn New York's assault 0:09:46.320 --> 0:09:48.520 weapons ban less than a month after the U. S. 0:09:48.520 --> 0:09:51.080 Supreme Court struck down a related state law that limited 0:09:51.080 --> 0:09:53.920 who could carry a handgun in public. According to the 0:09:53.920 --> 0:09:57.360 fire Arms Policy Coalition, the assault weapons band violates the 0:09:57.400 --> 0:10:00.040 Second Amendment. Global News twenty four hours a day on 0:10:00.120 --> 0:10:03.400 their end on Bloomberg Quick Take, powered by more than journalists, 0:10:03.440 --> 0:10:05.760 analysts more than a hundred twenty countries on Michael bar 0:10:05.880 --> 0:10:13.040 this is Bloomberg Naked. Thank you, Michael. Almost six cent 0:10:13.080 --> 0:10:15.120 on Wall Street. Time for the Bloomberg Sports Update with 0:10:15.200 --> 0:10:17.480 John Stenshown all right, Nathan. So many bright spots to 0:10:17.559 --> 0:10:20.000 this Yankee season, Maybe none brighter than the picture than 0:10:20.000 --> 0:10:23.000 reliever Clay Holmes, acquired a year ago from Pittsburgh. Holmes 0:10:23.040 --> 0:10:25.600 gave up a run on opening Day and then didn't 0:10:25.600 --> 0:10:27.559 give up another run for the next two and a 0:10:27.600 --> 0:10:29.640 half months for the Red Sox. Did get a big 0:10:29.679 --> 0:10:32.160 hit off him last weekend and one of those comeback wins. 0:10:32.160 --> 0:10:34.480 And last night at the Stadium against the lowly Reds, 0:10:34.840 --> 0:10:37.760 Holmes suddenly couldn't get anyone out. A walk, I hit, 0:10:37.800 --> 0:10:40.719 a hit batsman, another single, another hit by pitch, and 0:10:40.760 --> 0:10:43.679 he was taken out. Jonathan India with two outs of 0:10:43.720 --> 0:10:45.640 the ninth, delivered the game winning two runs single off 0:10:45.640 --> 0:10:49.319 Wanda Peralta. Cincinnati with four and the ninth stunned the 0:10:49.360 --> 0:10:51.240 Yankees four to three, and the Yanks have now lost 0:10:51.280 --> 0:10:53.440 three in a row, blown leads in all three. It's 0:10:53.440 --> 0:10:55.520 only their second three game losing Street. The other was 0:10:55.559 --> 0:10:58.560 back in May. Mets in Atlanta had just five hits, 0:10:58.600 --> 0:11:00.440 lost four to one. Is Matt Oles sending a two 0:11:00.520 --> 0:11:03.480 run homers six getting off David Peterson, Adam Duvall two 0:11:03.520 --> 0:11:05.760 run shot and then later on Seth Lugo the series 0:11:05.800 --> 0:11:08.760 in it. This afternoon, the Orioles one again they beat 0:11:08.760 --> 0:11:11.120 the Cubs. That's nine wins in a row. The Orioles 0:11:11.120 --> 0:11:15.160 have reached five hundred one and fifty Open Championship T's 0:11:15.160 --> 0:11:18.600 off tomorrow. Historic st Andrew's most of Tiger Woods as 0:11:18.600 --> 0:11:21.720 presser yesterday, where his thoughts about the new Live tour. 0:11:21.840 --> 0:11:26.640 He's not a fan. I disagree with it. UM. I 0:11:26.720 --> 0:11:30.719 think that what they've done is they've they've turned our 0:11:30.880 --> 0:11:33.480 their back on what has allowed them to get to 0:11:33.520 --> 0:11:38.080 this position. Um. Some players have never got a chance 0:11:38.080 --> 0:11:41.920 to even experience it. Taggarts off tomorrow at ten eastern. 0:11:41.920 --> 0:11:44.720 He's playing with the US Open JAMP Matt Fitzpatrick, John 0:11:44.720 --> 0:11:48.840 stash Award Bloomberg Sports Thanks John smp futures up eight points, 0:11:48.840 --> 0:11:51.840 Stown features of fifty eight, nastacks features up thirty two points. 0:11:51.840 --> 0:11:54.120 This red headline just across the Bloomberg terminal, traders are 0:11:54.120 --> 0:11:56.760 now fully pricing in a seventy five basis point rate 0:11:56.840 --> 0:12:00.960 hike in July ahead of June cp HI. We check 0:12:01.000 --> 0:12:04.320 in next with Bloomberg Economics correspondent Michael McKey. This is 0:12:04.320 --> 0:12:10.240 Bloomberg Bloomberg eleven three oh weather partly mostly sunny today 0:12:10.240 --> 0:12:13.679 with behind your ninety degrees afternoon showers and storms, fossil tomorrow, 0:12:13.760 --> 0:12:17.000 upper eighties, mix of sun and clouds. Upper eighties for Friday. 0:12:17.080 --> 0:12:23.280 Right now seventy five degrees in central Park Markets. Headlines 0:12:23.320 --> 0:12:26.319 and breaking news twenty four hours a day at Bloomberg 0:12:26.400 --> 0:12:29.760 dot Com. The Bloomberg Business out and at Bloomberg Quick Tape, 0:12:30.320 --> 0:12:39.400 He's a Bloomberg Business flash and I'm Karin Moscow. U 0:12:39.440 --> 0:12:42.320 stock index future is moving higher this morning, while stocks 0:12:42.320 --> 0:12:45.040 and your updip and cautious trading is dominated by a 0:12:45.120 --> 0:12:47.839 dimming economic outlook and an anxious wait for data that 0:12:47.920 --> 0:12:51.400 may show US inflation at a fresh four decade high. 0:12:51.480 --> 0:12:54.280 That CPI report is due out at a thirty Wall 0:12:54.320 --> 0:12:57.360 Street time this morning. Right now is and P futures 0:12:57.360 --> 0:12:59.360 are up nine points of our future is up sixty 0:12:59.400 --> 0:13:01.520 two and now stay future is of thirty seven and 0:13:01.600 --> 0:13:04.240 the Dacks in Germany is down nine tenths of a percent. 0:13:04.640 --> 0:13:07.320 Pen your treasury of three thirty seconds, the yield two 0:13:07.400 --> 0:13:10.080 point nine five percent. That yield on the two year 0:13:10.160 --> 0:13:13.240 three point oh three nine mix. Frude oil is up 0:13:13.280 --> 0:13:15.760 nine tenths percent or eighty cents at ninety six dollars 0:13:15.800 --> 0:13:18.800 sixty four cents of barrel. Comex school this it'll change 0:13:18.800 --> 0:13:21.800 at seventeen twenty six and ounce. The euro is at 0:13:21.800 --> 0:13:24.840 one point zero zero four zero against the dollar, British 0:13:24.840 --> 0:13:27.839 found one point one eight nine nine and again one 0:13:27.880 --> 0:13:31.000 thirty seven point one four and bitcoins higher up one 0:13:31.000 --> 0:13:34.840 point seven percent at nineteen thousand, seven hundred sixty dollars. 0:13:35.080 --> 0:13:37.880 And that's a Bloomberg business flash. Now here's Michael Barrow 0:13:37.920 --> 0:13:41.080 with more unless going on around the world. Michael Karen, 0:13:41.080 --> 0:13:43.720 thank you very much. January six. Committee Vice cheer Liz 0:13:43.800 --> 0:13:46.680 Cheney revealed at the close of yesterday's hearing that former 0:13:46.720 --> 0:13:49.800 President Trump tried to call a witness in the investigation, 0:13:50.200 --> 0:13:53.760 and that the committee has notified the Justice Department. Also, 0:13:53.880 --> 0:13:57.680 former White House Council Patsypaloni testified a special order was 0:13:57.760 --> 0:14:00.880 drafted in December that would allow the Defense Department to 0:14:00.920 --> 0:14:04.840 see voting machines. Military officials from Russia and Ukraine are 0:14:04.840 --> 0:14:08.040 set to hold their government's first phase to face talks 0:14:08.120 --> 0:14:11.000 in months. They're meeting in Istan Bowlder discuss a U 0:14:11.120 --> 0:14:15.000 n plan to export blocked Ukrainian grain to world markets 0:14:15.040 --> 0:14:18.240 through the black Seat. In baseball, the Yankees and Mets lost. 0:14:18.280 --> 0:14:21.000 Also in the losing column, the Red Sox, the orioles 0:14:21.000 --> 0:14:23.680 As and Giants won global news twenty four hours a 0:14:23.760 --> 0:14:25.960 day on air and on Bloomberg Quick Take power by 0:14:26.000 --> 0:14:29.160 more than journalists and analysts more than a hundred twenty countries. 0:14:29.480 --> 0:14:32.680 Michael Barr this is Bloomberg. Nathan, Yes, it is Michael, 0:14:32.680 --> 0:14:34.840 Thank you. It is six nineteen on Wall Street live 0:14:34.880 --> 0:14:38.720 from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak 0:14:38.760 --> 0:14:41.040 at six nineteen means we are about two hours and 0:14:41.200 --> 0:14:43.880 eleven minutes a give a take from the release of 0:14:43.920 --> 0:14:47.360 the June Consumer Price Index, what is likely to be 0:14:47.440 --> 0:14:51.040 another historically high read for inflation, and we're joined by 0:14:51.200 --> 0:14:54.760 Bloomberg Economics correspondent Michael McKee and Mike I know you 0:14:54.840 --> 0:14:59.160 saw that now traders are fully pricing in three quarter 0:14:59.200 --> 0:15:02.560 percentage point rate hikes at the July meeting. Sounds like 0:15:02.640 --> 0:15:06.000 the market has made its decision on just how hot 0:15:06.040 --> 0:15:09.840 this inflation print is gonna be. I think that's the case. 0:15:10.320 --> 0:15:12.920 Most FETE officials are sticking to their predictions because a 0:15:12.920 --> 0:15:15.400 lot of them have been out saying seventy in July, 0:15:15.880 --> 0:15:18.160 so we haven't really seen any backing off from that. 0:15:18.360 --> 0:15:21.000 And I think one of the reasons is the increase 0:15:21.000 --> 0:15:23.600 in the CPI for the month of June is so 0:15:23.680 --> 0:15:26.800 widely anticipated. Most of it's going to be driven by 0:15:26.920 --> 0:15:30.680 gasoline prices in the headline, and people know that's out there. 0:15:30.960 --> 0:15:34.000 The question is, what does the core look like. In 0:15:34.000 --> 0:15:36.000 other words, what does it look like if you take 0:15:36.040 --> 0:15:39.640 out gasoline and food prices and what's the month over 0:15:39.760 --> 0:15:42.960 month change? Are we hanging in there? Are we starting 0:15:42.960 --> 0:15:45.320 to see improvement on a month over month basis that 0:15:45.400 --> 0:15:48.960 doesn't isn't reflected in the headline because of base effects. Uh, 0:15:49.040 --> 0:15:51.160 that's what the fet is gonna want to know. They're 0:15:51.160 --> 0:15:54.520 gonna worry about maybe an accidental going over nine percent 0:15:54.640 --> 0:15:58.880 because they don't want inflation expectations to get entrenched. But 0:15:59.040 --> 0:16:02.920 they are going to watch the monthly change to see 0:16:03.200 --> 0:16:06.840 the progression of inflation. That's certainly what matters to the FED. 0:16:06.960 --> 0:16:10.960 The core cp I, and you look at the expectations 0:16:11.000 --> 0:16:13.400 on the ECO screen on the Bloomberg terminal, it sounds 0:16:13.440 --> 0:16:17.080 like economists are thinking, we're gonna see, uh slight drop 0:16:17.200 --> 0:16:19.560 in core cp I. What signs are you looking at 0:16:19.560 --> 0:16:23.080 that could point to where things are going in terms 0:16:23.240 --> 0:16:28.720 of inflation outside those more volatile food and gas sectors. Well, 0:16:28.720 --> 0:16:31.080 we know that used car prices at a wholesale level 0:16:31.120 --> 0:16:33.520 have gone down over the past month and a half 0:16:33.640 --> 0:16:37.200 of the Mannheim reports suggests that used car prices will 0:16:37.240 --> 0:16:40.240 have backed off, and that was a big driver during 0:16:40.320 --> 0:16:43.280 the months coming out of the pandemic because there were 0:16:43.320 --> 0:16:46.600 no cars to sell, so that would be good news. 0:16:46.960 --> 0:16:50.440 It's a reasonably large enough category. And also we know 0:16:50.480 --> 0:16:54.840 that inventories are very bloated, so consumer discretionary items, apparel 0:16:54.840 --> 0:16:59.800 in particular, maybe some other things might actually have seen 0:17:00.000 --> 0:17:03.680 a price decreases, retailer's discount trying to get rid of 0:17:03.680 --> 0:17:07.360 this stuff. What does this number mean in terms of 0:17:07.440 --> 0:17:11.320 the rate path going forward? Obviously we mentioned that money 0:17:11.359 --> 0:17:15.119 markets are pricing in seventy basis points this month, what 0:17:15.200 --> 0:17:18.760 about subsequent months? I mean, does backward looking data like 0:17:18.840 --> 0:17:20.680 this really matter? What's the Fed going to be looking 0:17:20.680 --> 0:17:23.879 at going forward? Well, the reason it really matters is 0:17:23.920 --> 0:17:27.400 because of consumer expectations. If people start to get entrenched 0:17:27.400 --> 0:17:30.360 in their mind that inflation is always going to go up, 0:17:30.880 --> 0:17:33.199 then that makes it much harder for the Fed to 0:17:33.320 --> 0:17:35.800 get rid of inflation to help bring it down. So 0:17:35.880 --> 0:17:38.919 it will matter in that sense. But the question that 0:17:38.960 --> 0:17:43.199 arises immediately at eight thirty one Eastern time this morning 0:17:43.480 --> 0:17:46.720 after the release is what is the Fed going to 0:17:46.760 --> 0:17:49.520 do at the September meeting. That's what matters to Wall Street, 0:17:50.000 --> 0:17:53.960 and no, this UM release probably won't have a major 0:17:54.080 --> 0:17:57.240 impact on that. It'll start people thinking about it. But 0:17:57.320 --> 0:18:00.240 we'll get August and September CPI numbers before where the 0:18:00.240 --> 0:18:02.880 Fed meets again, and so we'll have a much better 0:18:02.920 --> 0:18:06.280 idea of the progression of inflation. And of course, uh, 0:18:06.480 --> 0:18:09.200 I don't know if if you've noticed on your daily commutes, 0:18:09.280 --> 0:18:14.520 but the gasoline prices have been coming down now for weeks. Yeah, 0:18:14.560 --> 0:18:18.640 that's right about for seventy I think, is what I've 0:18:18.680 --> 0:18:21.520 seen around my area. Anyway, I've got about a minute 0:18:21.560 --> 0:18:23.600 left here, and I know you weren't thrown by this, 0:18:23.680 --> 0:18:26.919 but before street time this morning, we got a fake 0:18:27.200 --> 0:18:32.040 cp I print that made the rounds online yesterday. Is 0:18:32.320 --> 0:18:35.159 fake news, just gonna be with us when it comes 0:18:35.200 --> 0:18:41.320 to eco data. It seems like it was unusual that 0:18:41.440 --> 0:18:45.840 this happened because HICO data is not usually something that 0:18:46.440 --> 0:18:51.760 people care about. They do now and they you know, 0:18:51.920 --> 0:18:54.720 maybe it was an attempt by somebody to game the markets, 0:18:54.840 --> 0:18:59.800 but it quickly fell apart, So I'm not sure whether 0:19:00.160 --> 0:19:02.480 somebody else will try again. But you always have to 0:19:02.480 --> 0:19:05.840 be careful. And uh, you know what, Bloomberg will verify 0:19:05.880 --> 0:19:08.880 anything that goes out before we set it out. Yeah, 0:19:09.040 --> 0:19:12.880 when we verify that their fake stories are out there 0:19:13.119 --> 0:19:16.440 and post stories about that to let you know that 0:19:16.720 --> 0:19:20.560 the real stuff comes eight thirty Wall Street Time, as 0:19:20.640 --> 0:19:24.680 usual from the Bureau of Labor Statistics. Bloomberg Economics correspondent 0:19:24.720 --> 0:19:26.960 Michael McKee, thanks for being with us ahead of the 0:19:27.000 --> 0:19:31.240 release of June's cp I. Looking ahead to the market 0:19:31.280 --> 0:19:34.760 open at nine thirty Wall Street time, SMP futures are 0:19:34.800 --> 0:19:37.719 up eight points, DAL futures up fifty one, NASTAC futures 0:19:37.760 --> 0:19:40.800 higher by thirty five points ten. Your treasury is up 0:19:40.800 --> 0:19:43.120 four thirty seconds, with a yield of two point nine 0:19:43.160 --> 0:19:46.400 five percent, still inverted between twos and tens. The two 0:19:46.480 --> 0:19:50.600 year yield right now three point zero three percent. Nime 0:19:50.720 --> 0:19:52.800 x crew to touch higher, up a half percent, forty 0:19:52.840 --> 0:19:55.200 nine cents higher ninety six dollars, thirty three cents of 0:19:55.240 --> 0:20:00.200 barrel after yesterday's eight percent plunge in crude markets. Much 0:20:00.240 --> 0:20:07.880 more to com. You're listening to Bloomberg Daybreak Ye Bloomberg 0:20:07.880 --> 0:20:10.560 eleven three oh weather sunshine high your ninety today, opper 0:20:10.600 --> 0:20:13.640 eighties tomorrow with a chance drafting in showers and thunderstorms, 0:20:14.040 --> 0:20:16.720 mix of sun and clouds, Oper eights for Friday Right now, 0:20:16.760 --> 0:20:24.359 seventy and sunny in Central Park, broadcasting live from Bloomberg 0:20:24.440 --> 0:20:27.920 Interactive Broker's studio in New York, Bloomberg E Living free 0:20:28.280 --> 0:20:31.440 to Washington, d C, Bloomberg ninety nine one to Boston, 0:20:31.520 --> 0:20:34.920 Bloomberg one O six one to San Francisco, Bloomberg Ning 0:20:35.000 --> 0:20:37.600 sixteen to the country, Sirius XM h at A one 0:20:37.640 --> 0:20:40.600 nine te and around the globe to Bloomberg Business at 0:20:40.720 --> 0:20:50.600 and Bloomberg Radio dot com. This is Bloomberg Daybreak six 0:20:50.640 --> 0:20:53.359 thirty on Wall Street. Good morning, I'm Nathan Hagar and 0:20:53.400 --> 0:20:56.160 I'm Karen Moscow. We're just about three hours away from 0:20:56.200 --> 0:20:58.320 the open of US trading. Time to the five things 0:20:58.320 --> 0:21:00.359 that you need to notice Dark your day. Brought to 0:21:00.440 --> 0:21:04.720 you by Interactive Brokers. Interactive Brokers charges margin loan rates 0:21:04.760 --> 0:21:07.439 from two point eight percent to three point eight percent, 0:21:07.760 --> 0:21:09.879 rates subject to change. Learn more at I b k 0:21:10.080 --> 0:21:13.480 R dot com. Slash compare first, who began with the 0:21:13.560 --> 0:21:16.520 latest Consumer Price Index, which will be released two hours 0:21:16.520 --> 0:21:19.520 from now, and Bloomberg's Viney down Judai says we're likely 0:21:19.520 --> 0:21:23.320 to see another hot inflation reading. May CPI rose eight 0:21:23.320 --> 0:21:26.120 point six percent you over a year abroad based increase 0:21:26.160 --> 0:21:29.080 in the largest and forty years. June's reading could be 0:21:29.119 --> 0:21:32.160 even higher based on a survey of Wall Street economists. 0:21:32.600 --> 0:21:35.520 At the same time, Bloomberg Economics, as today's report will 0:21:35.560 --> 0:21:38.679 be balanced by recent evidence that inflation as well as 0:21:38.720 --> 0:21:42.120 economic growth may be moderating. The Federal Reserve is expected 0:21:42.160 --> 0:21:45.440 to keep raising interest rates to contain inflation by tempering 0:21:45.480 --> 0:21:50.119 economic growth. Benny Ice, Bloomberg day Break, Okay, Vinny, thank you. Meantime, 0:21:50.119 --> 0:21:53.440 the International Monetary Fund cut it's month old growth projections 0:21:53.440 --> 0:21:55.240 for the U S economy. It's one of a broad 0:21:55.280 --> 0:21:58.840 based surgeon. Inflation poses systemic risks to both the US 0:21:58.920 --> 0:22:01.800 and the global economy and Federal Reserve Bank of Richmond 0:22:01.800 --> 0:22:04.960 President Thomas Barkin says the feds top priority is to 0:22:05.000 --> 0:22:08.480 curb inflation. The FEDS tools work over time, so I 0:22:08.520 --> 0:22:12.600 expect inflation to come down, but not immediately, not suddenly, 0:22:13.080 --> 0:22:16.240 and not predictably. I'd expect inflation to bounce around on 0:22:16.280 --> 0:22:19.680 its way back to our target, and these significant oscillations 0:22:19.720 --> 0:22:22.560 are going to take time to damp. Richmond FED President 0:22:22.600 --> 0:22:25.800 Thomas Barkin says the right policy is to cool inflation 0:22:25.880 --> 0:22:29.280