1 00:00:01,560 --> 00:00:04,880 Speaker 1: Live from the Bloomberg Interacted Berger Studios. This is Bloomberg, 2 00:00:04,960 --> 00:00:08,280 Speaker 1: gave Break for a Thursday, August four, It's two coming up. 3 00:00:08,280 --> 00:00:11,080 Speaker 1: The shower stocks entered the day near a two month high. 4 00:00:11,160 --> 00:00:13,440 Speaker 1: The Bank of England forecast to raise rates by the 5 00:00:13,560 --> 00:00:15,760 Speaker 1: most in more than a quarter of a century. The 6 00:00:15,840 --> 00:00:19,599 Speaker 1: Senate overwhelmingly approached the addition of Finland and Sweden to NATO. 7 00:00:19,800 --> 00:00:23,239 Speaker 1: Tesla holds a key shareholder meeting, and Walmart is the 8 00:00:23,320 --> 00:00:26,720 Speaker 1: latest company to cut jobs. New York Mayor Adams freeze 9 00:00:26,760 --> 00:00:29,880 Speaker 1: up a hundred million dollars for city schools. Plus the 10 00:00:29,960 --> 00:00:33,520 Speaker 1: jury is deliberating the Alex Jones defamation case on Michael 11 00:00:33,560 --> 00:00:36,320 Speaker 1: Bloomer or Ahead, I'm down stair, Shower and sports. Garrett 12 00:00:36,320 --> 00:00:38,400 Speaker 1: Cole ropped up at the Yankee lost in Seattle. The 13 00:00:38,520 --> 00:00:40,640 Speaker 1: Mets wan easily. They start a big series with it 14 00:00:40,760 --> 00:00:47,280 Speaker 1: went tonight. That's all s tradyhead on Bloomberg, Daybreak on 15 00:00:47,400 --> 00:00:51,520 Speaker 1: Bloomberg eleven, Free on New York, Bloomberg nine one, Washington 16 00:00:51,640 --> 00:00:55,280 Speaker 1: d C Bloomberg one oh six one, Boston Bloomberg nine 17 00:00:55,320 --> 00:00:59,960 Speaker 1: sixties and Francisco Sirius XAM one nineteen and around the world. 18 00:01:00,320 --> 00:01:03,600 Speaker 1: Bloomberg Radio dot com and via the Bloomberg Business app. 19 00:01:07,480 --> 00:01:10,520 Speaker 1: Good morning, I'm Nathan Hagar and I'm Karen Moscow and 20 00:01:10,640 --> 00:01:13,319 Speaker 1: US futures are higher this morning. We're coming up to 21 00:01:13,319 --> 00:01:15,039 Speaker 1: six o one on Wall Street. Have we checked the 22 00:01:15,040 --> 00:01:18,199 Speaker 1: markets every fifteen minutes throughout the trading day on Bloomberg 23 00:01:18,280 --> 00:01:21,560 Speaker 1: right now, WESTNP futures they're up about seven points down, 24 00:01:21,560 --> 00:01:24,479 Speaker 1: futures up thirty one, and NASDAG futures up twenty six. 25 00:01:24,760 --> 00:01:27,600 Speaker 1: The decks in Germany is up one percent. Tend your 26 00:01:27,640 --> 00:01:30,280 Speaker 1: treasury down six thirties seconds. You on two point seven 27 00:01:30,319 --> 00:01:32,640 Speaker 1: two percent, and they yield on the two year three 28 00:01:32,680 --> 00:01:36,480 Speaker 1: point oh nine percent. Nathan Karen the SNP interns today's 29 00:01:36,520 --> 00:01:39,600 Speaker 1: session near a two month high. The tech heavy NASDAC 30 00:01:39,680 --> 00:01:43,120 Speaker 1: one indexes at its highest levels since early May. Corporate 31 00:01:43,120 --> 00:01:46,120 Speaker 1: earnings and healthy economic data are helping to lift sentiment. 32 00:01:46,280 --> 00:01:48,960 Speaker 1: We get more from Northern Trust Bank Chief investment Officer 33 00:01:49,040 --> 00:01:52,400 Speaker 1: Katie Nixon. I think we came into this really with 34 00:01:52,600 --> 00:01:56,480 Speaker 1: with such low sentiment, with such a negative positioning, that 35 00:01:56,520 --> 00:01:58,480 Speaker 1: we were due for a nice bounce like we've seen 36 00:01:58,560 --> 00:02:00,720 Speaker 1: last week and sorted into this week. But is it 37 00:02:00,840 --> 00:02:03,640 Speaker 1: sustainable in the phase of a FED that appears to 38 00:02:03,680 --> 00:02:07,000 Speaker 1: be hell bent on not stopping not stopping. Katie Nixon 39 00:02:07,040 --> 00:02:09,080 Speaker 1: the Northern Trust says the FED may have to reverse 40 00:02:09,160 --> 00:02:13,520 Speaker 1: course sooner than expected. That's because she says inflation is slowing. Meantime, 41 00:02:13,600 --> 00:02:17,239 Speaker 1: Nathan the FED continues to talk tough on inflation. Minneapolis 42 00:02:17,280 --> 00:02:20,160 Speaker 1: Spent President Deal cash Curry is the latest to say 43 00:02:20,200 --> 00:02:24,239 Speaker 1: it's the top priority. We are laser focused on getting 44 00:02:24,240 --> 00:02:28,120 Speaker 1: inflation down and um, you know, whether we are technically 45 00:02:28,120 --> 00:02:30,960 Speaker 1: in recession right now or not, it doesn't change my 46 00:02:30,960 --> 00:02:34,040 Speaker 1: analysis and focus on inflation and where inflation is likely 47 00:02:34,040 --> 00:02:36,400 Speaker 1: going and that is going to be. That to me 48 00:02:36,520 --> 00:02:38,200 Speaker 1: is what we have. My opinion is what we have 49 00:02:38,240 --> 00:02:40,960 Speaker 1: to focus on right now. Neil cash car Is has 50 00:02:41,000 --> 00:02:44,200 Speaker 1: a FED rate cut next year is quote a very 51 00:02:44,320 --> 00:02:48,680 Speaker 1: unlikely scenario. Well. Monetary policies also in focus overseas, Karen Is. 52 00:02:48,680 --> 00:02:51,280 Speaker 1: The Bank of England gets set to hike interest rates. 53 00:02:51,280 --> 00:02:53,440 Speaker 1: In just about one hour, we get a preview from 54 00:02:53,440 --> 00:02:57,400 Speaker 1: Bloomberg's Lizzie Burden in London. I'm England rate rise today 55 00:02:57,639 --> 00:03:00,760 Speaker 1: is all but a done deal. The debate surrounds whether 56 00:03:00,800 --> 00:03:04,720 Speaker 1: the UK Central Bank will is Bloomberg Economics expect hike 57 00:03:04,800 --> 00:03:06,959 Speaker 1: by a half point for the first time in its 58 00:03:06,960 --> 00:03:11,200 Speaker 1: independent history. The decision comes against the backdrop of inflation 59 00:03:11,280 --> 00:03:14,040 Speaker 1: that's not only it's a new forty year high, but 60 00:03:14,160 --> 00:03:17,720 Speaker 1: headed toward double digits in the fall. Officials are also 61 00:03:17,800 --> 00:03:22,760 Speaker 1: expected to provide more detail on active quantitative tightening. In London. 62 00:03:22,840 --> 00:03:26,000 Speaker 1: I'm Lizzie Burden Bloomberg daybreak. All right, Lessie, thank you all. 63 00:03:26,080 --> 00:03:29,160 Speaker 1: Turning to politics. Now, Finland and Sweden are getting a 64 00:03:29,160 --> 00:03:31,760 Speaker 1: boost in their bid to join NATO. The US Senate 65 00:03:31,800 --> 00:03:35,080 Speaker 1: has now ratified their membership and the alliance, and Bloomberg said, 66 00:03:35,120 --> 00:03:38,600 Speaker 1: Bachelor has the story. The intention is to bolster NATO 67 00:03:38,680 --> 00:03:42,040 Speaker 1: after the Russian invasion of Ukraine. The vote pretty amazing 68 00:03:42,080 --> 00:03:43,880 Speaker 1: in a body that hasn't been able to agree on 69 00:03:44,000 --> 00:03:48,400 Speaker 1: much of anything. The vote to one far exceeding the 70 00:03:48,440 --> 00:03:53,280 Speaker 1: two thirds majority required. Now Finland will join Estonia, Latvia, 71 00:03:53,400 --> 00:03:56,520 Speaker 1: Lithuania in Poland, as NATO country is a share a 72 00:03:56,600 --> 00:03:59,640 Speaker 1: land border with Russia. Turkey has been on and off 73 00:03:59,720 --> 00:04:03,200 Speaker 1: of the idea and could still try to block the move. 74 00:04:03,640 --> 00:04:08,320 Speaker 1: Majority leader Chuck Schumer says Putin has strengthened NATO. In 75 00:04:08,400 --> 00:04:11,440 Speaker 1: San Francisco, I'm at Baxter Bloomberg Daybreak. All right, and thanks. 76 00:04:11,520 --> 00:04:14,360 Speaker 1: Let's turn to corporate news now, where Tesla is in focus. 77 00:04:14,400 --> 00:04:18,080 Speaker 1: The electric car maker holds its highly anticipated shareholder meeting today. 78 00:04:18,120 --> 00:04:21,200 Speaker 1: We get a preview from Bloomberg's Tom Busby. The automaker 79 00:04:21,240 --> 00:04:24,760 Speaker 1: calls it's annual shareholders meeting a cyber roundup, and this 80 00:04:24,880 --> 00:04:27,359 Speaker 1: year the biggest item on the roundup agenda is the 81 00:04:27,400 --> 00:04:30,359 Speaker 1: proposed three for one stock split, which would be the 82 00:04:30,400 --> 00:04:32,839 Speaker 1: second one and as many years for Tesla after a 83 00:04:32,880 --> 00:04:35,640 Speaker 1: five for one split in August of twenty Now. The 84 00:04:35,680 --> 00:04:37,960 Speaker 1: idea is to make shares, which will begin the trading 85 00:04:38,040 --> 00:04:42,120 Speaker 1: day just above nine twenty two dollars apiece, more affordable 86 00:04:42,160 --> 00:04:46,520 Speaker 1: to small dollar retail investors and retail options traders, not 87 00:04:46,680 --> 00:04:51,680 Speaker 1: just institutional investors. Tom Busby, Bloomberg Daybreak Rank Tom. Thank you. 88 00:04:51,760 --> 00:04:55,840 Speaker 1: Elsewhere on Wall Street today, the wave of corporate downsizing continues. 89 00:04:55,920 --> 00:04:58,800 Speaker 1: There's where now that Walmart is getting about two hundred 90 00:04:58,880 --> 00:05:02,200 Speaker 1: corporate jobs, and get the details from Bloomberg's Charlie Pellett. 91 00:05:02,600 --> 00:05:05,800 Speaker 1: The retail giant who is contending with rising costs, blow 92 00:05:05,880 --> 00:05:10,240 Speaker 1: to inventories and weakening demand for general merchandise. Sources say 93 00:05:10,279 --> 00:05:12,960 Speaker 1: the company will also be adding an unspecified number of 94 00:05:13,040 --> 00:05:16,240 Speaker 1: jobs in areas such as e commerce, health and wellness, 95 00:05:16,320 --> 00:05:20,200 Speaker 1: supply chain, and ad sales. Walmart is tightening its belt 96 00:05:20,200 --> 00:05:23,560 Speaker 1: a week after slashing its annual profit forecast for the 97 00:05:23,760 --> 00:05:27,560 Speaker 1: second time in less than three months. American consumers are 98 00:05:27,600 --> 00:05:31,720 Speaker 1: buying less clothing and durable goods as storing inflation raises 99 00:05:31,760 --> 00:05:35,280 Speaker 1: the cost of food and basic items in New York. 100 00:05:35,400 --> 00:05:38,480 Speaker 1: Charlie Pellock, Bloomberg Daybreak, Thanks Charlie, coming up today. The 101 00:05:38,520 --> 00:05:42,840 Speaker 1: earning spread continues fifty. Company's report, including Lift on the 102 00:05:42,880 --> 00:05:46,240 Speaker 1: heels of ubers better than expected results, but Lift is 103 00:05:46,279 --> 00:05:51,200 Speaker 1: not Uber. Bloomberg's Jeff Fellinger explains Lift executives may lower 104 00:05:51,279 --> 00:05:56,040 Speaker 1: the company's full year guidance during their conference call Bloomberg Intelligence, 105 00:05:56,120 --> 00:05:59,920 Speaker 1: as censor tower data indicate competition with Uber has been fear. 106 00:06:00,520 --> 00:06:04,040 Speaker 1: Downloads of the Lift app decline year over year, and 107 00:06:04,080 --> 00:06:07,240 Speaker 1: the increase in the number of monthly active users paled 108 00:06:07,320 --> 00:06:11,039 Speaker 1: in comparison with Uber. B I speculates Lift may seek 109 00:06:11,160 --> 00:06:15,160 Speaker 1: partnership similar to Amazon grub Hub to increase trip frequency. 110 00:06:15,640 --> 00:06:19,360 Speaker 1: Jeff Bollinger, Bloomberg Daybreak, All Right, Jeff, Thank you. While 111 00:06:19,400 --> 00:06:21,760 Speaker 1: we are seeing some stocks on the move this morning 112 00:06:21,800 --> 00:06:24,440 Speaker 1: following earning, so we get the latest live with Bloomberg's 113 00:06:24,480 --> 00:06:27,960 Speaker 1: John Tucker, John and Karen. Earnings from guidance from Chlorox 114 00:06:28,040 --> 00:06:31,200 Speaker 1: fell well short of analysts estimates. Shares were down six 115 00:06:31,279 --> 00:06:34,320 Speaker 1: percent after the company gave weaker than I expended guidance 116 00:06:34,320 --> 00:06:38,560 Speaker 1: for fiscal year three. Shares of the mobile games company 117 00:06:38,680 --> 00:06:41,960 Speaker 1: Skills tumbling at the pre market there down with eleven percent. 118 00:06:42,279 --> 00:06:45,279 Speaker 1: They cut their full year guidance for revenue, and shares 119 00:06:45,320 --> 00:06:49,200 Speaker 1: of Lucid sinking twelve percent after the luxury electric vehicles 120 00:06:49,240 --> 00:06:52,680 Speaker 1: startup cut in half this year's production target. Lucid has 121 00:06:52,680 --> 00:06:56,279 Speaker 1: been feeling with supply chain stags and resulting production hiccups 122 00:06:56,520 --> 00:06:59,760 Speaker 1: Live of New York. I'm John Tucker, Bloomberg Daybreak. All right, John, 123 00:07:00,200 --> 00:07:02,400 Speaker 1: Futures are getting some traction at the moment. S and 124 00:07:02,440 --> 00:07:04,960 Speaker 1: P futures right now have ten points. Stout futures up 125 00:07:05,000 --> 00:07:08,400 Speaker 1: forty seven. Nasdaq futures are gaining fifty points. The tenure 126 00:07:08,440 --> 00:07:12,040 Speaker 1: treasury is down six thirty seconds. The yield two point 127 00:07:12,080 --> 00:07:14,560 Speaker 1: seven to yield on the two year three point one 128 00:07:14,640 --> 00:07:17,320 Speaker 1: zero straight ahead. Your latest local headlines in the check 129 00:07:17,360 --> 00:07:24,400 Speaker 1: of Sports. This is Bloomberg. Sus SO seven on Wall 130 00:07:24,440 --> 00:07:27,120 Speaker 1: Street were at seventy eight degrees in Central Park, getting 131 00:07:27,160 --> 00:07:29,760 Speaker 1: ready for the heat advisory to kick in later this morning. 132 00:07:29,960 --> 00:07:31,880 Speaker 1: Michael Barr has more on what's going on in New 133 00:07:31,960 --> 00:07:34,600 Speaker 1: York and around the world. Good morning, Michael, Good morning, Nathan. 134 00:07:34,720 --> 00:07:38,120 Speaker 1: China says it has conducted precision missile strikes and the 135 00:07:38,160 --> 00:07:42,360 Speaker 1: Taiwan Straight as part of military exercises surrounding the island. 136 00:07:42,680 --> 00:07:46,040 Speaker 1: China test fired eleven missiles into the seat. The drills 137 00:07:46,080 --> 00:07:48,160 Speaker 1: were prompted by a visit to the island by House 138 00:07:48,200 --> 00:07:52,120 Speaker 1: speaker Nancy Pelosi this week. Beijing earlier warned airlines to 139 00:07:52,160 --> 00:07:56,440 Speaker 1: avoid danger zones around Taiwan. As you mentioned, Nathan, it's 140 00:07:56,480 --> 00:07:58,320 Speaker 1: going to be a hot one in the New York area, 141 00:07:58,400 --> 00:08:02,119 Speaker 1: Bloomberg needed religious. Rob Rreland has the latest. Good morning, Michael. 142 00:08:02,160 --> 00:08:03,920 Speaker 1: The Bermiera High is going to set the Tri state 143 00:08:03,920 --> 00:08:06,040 Speaker 1: area up for some warm weather over the course of 144 00:08:06,080 --> 00:08:08,040 Speaker 1: the next several days. In fact that it's looking like 145 00:08:08,080 --> 00:08:09,600 Speaker 1: the first half of August is going to be on 146 00:08:09,640 --> 00:08:12,400 Speaker 1: the warm side. Today the city and the surrounding areas 147 00:08:12,400 --> 00:08:14,600 Speaker 1: close to nine, but it feels more like a hundred 148 00:08:14,640 --> 00:08:16,520 Speaker 1: with the committee, and that's why that heat advisories and 149 00:08:16,600 --> 00:08:19,600 Speaker 1: effect when the nineties again tomorrow close to NIGHTTI, Saturday, 150 00:08:19,640 --> 00:08:23,080 Speaker 1: and Sunday, Michael rob thanks. New York City Mayor Eric 151 00:08:23,080 --> 00:08:27,200 Speaker 1: Adams pushed back against criticism that is continual focus on 152 00:08:27,320 --> 00:08:31,200 Speaker 1: crime at press conferences is feeding into an overblown narrative 153 00:08:31,280 --> 00:08:34,760 Speaker 1: that the city is unsafe. Incidents of violent crime remain 154 00:08:34,840 --> 00:08:37,640 Speaker 1: at historic lows in the city, but seventy percent of 155 00:08:37,679 --> 00:08:40,560 Speaker 1: New Yorkers said crime was a very serious problem in 156 00:08:40,559 --> 00:08:45,080 Speaker 1: a February poll. Adams spoke to reporters yesterday. The numbers 157 00:08:45,120 --> 00:08:49,800 Speaker 1: continue to twin in the wrong direction, continue to show 158 00:08:49,880 --> 00:08:53,160 Speaker 1: that these repeated offenders are coming out. It would be 159 00:08:53,200 --> 00:08:57,559 Speaker 1: irresponsible of me to ignore what is happening right now 160 00:08:57,640 --> 00:09:01,319 Speaker 1: on our streets every day, every day was seeing this 161 00:09:01,800 --> 00:09:06,440 Speaker 1: dangerous people repeatedly committed these actions. Meanwhile, Mayor Adams is 162 00:09:06,480 --> 00:09:09,760 Speaker 1: freeing up one hundred million dollars in federal stimulus money 163 00:09:09,800 --> 00:09:13,240 Speaker 1: for New York schools. It comes after an outcry among 164 00:09:13,320 --> 00:09:16,720 Speaker 1: parents and some educators over the city's planned gout hundreds 165 00:09:16,760 --> 00:09:19,320 Speaker 1: of millions of dollars in funding for schools in the 166 00:09:19,320 --> 00:09:23,320 Speaker 1: current fiscal year. Conspiracy theorist Alex Jones says he was 167 00:09:23,400 --> 00:09:29,640 Speaker 1: irresponsible to declare the Sandy Hook Elementary School massacre hoaxcent 168 00:09:29,760 --> 00:09:32,800 Speaker 1: real as a sub regular stay and as I said 169 00:09:32,840 --> 00:09:38,280 Speaker 1: here real Jerry in Austin, Texas began deliberating on how 170 00:09:38,360 --> 00:09:40,880 Speaker 1: much the Info Wars host owes the parents of one 171 00:09:40,920 --> 00:09:44,840 Speaker 1: of the children killed in the attack, and Newtown, Connecticut 172 00:09:44,960 --> 00:09:48,079 Speaker 1: testimony wrapped up after a bombshell from the plaintiffs lawyer 173 00:09:48,120 --> 00:09:51,920 Speaker 1: revealed that Jones's lawyers mistakenly handed over two years of 174 00:09:52,000 --> 00:09:55,960 Speaker 1: text messages from Jones's phone. Global News twenty four hours 175 00:09:55,960 --> 00:09:58,840 Speaker 1: a day on air and on Bloomberg Quick Tank, powered 176 00:09:58,840 --> 00:10:01,520 Speaker 1: by more than one hundred journalists and analyist and more 177 00:10:01,520 --> 00:10:04,440 Speaker 1: than a hundred twenty countries. Michael bar this is Bloomberg. 178 00:10:04,840 --> 00:10:11,360 Speaker 1: Thank you, Michael. It's almost six cent of all street 179 00:10:11,400 --> 00:10:14,240 Speaker 1: time for the Bloomberg Sports update. Here's John Shower. All right. 180 00:10:14,320 --> 00:10:16,880 Speaker 1: Nathan and Mets added some players before the trade deadline. 181 00:10:16,880 --> 00:10:19,680 Speaker 1: Maybe not big names, although their new left handed hitting 182 00:10:19,800 --> 00:10:23,079 Speaker 1: d h is certainly a big guy. Daniel Vogelback generously 183 00:10:23,160 --> 00:10:25,520 Speaker 1: listed a two hundred and seventy pounds. He came up 184 00:10:25,520 --> 00:10:27,240 Speaker 1: from the fifth in end and Washington two on the 185 00:10:27,280 --> 00:10:29,480 Speaker 1: way from Williams and boge Back gets one of the 186 00:10:29,520 --> 00:10:31,360 Speaker 1: area along the right field line back to where the 187 00:10:31,440 --> 00:10:36,240 Speaker 1: cornerback goes. Colosio said, it's out of here a crans 188 00:10:36,280 --> 00:10:40,599 Speaker 1: swam for Daniel foco Back. His first home was a 189 00:10:40,720 --> 00:10:43,760 Speaker 1: met at his scores four and had to call on 190 00:10:43,960 --> 00:10:46,079 Speaker 1: s n Y. Mets took a nine nothing lead to 191 00:10:46,120 --> 00:10:48,800 Speaker 1: the ninth inning. Another new Mets reliever, Michael Gibbons, he 192 00:10:48,840 --> 00:10:51,319 Speaker 1: made his Mets debut. It did not go well, got 193 00:10:51,440 --> 00:10:53,840 Speaker 1: just two outs, gave up five runs, but the metstreet 194 00:10:53,840 --> 00:10:55,640 Speaker 1: the Nationals nine to five. They've won eight of the 195 00:10:55,720 --> 00:10:59,360 Speaker 1: last nine Atlanta loss, which means the Big Mets Braves 196 00:10:59,480 --> 00:11:02,280 Speaker 1: five game series that begins Senetta City Field starts with 197 00:11:02,320 --> 00:11:04,760 Speaker 1: the Mets three and a half games ahead. At the 198 00:11:04,840 --> 00:11:07,640 Speaker 1: Stadium Seattle bet Yankee seven to three, did almost all 199 00:11:07,679 --> 00:11:10,040 Speaker 1: the damage top of the first, sitting six runs on 200 00:11:10,200 --> 00:11:13,199 Speaker 1: three Mariners home runs off Garrett Cole, the second time 201 00:11:13,280 --> 00:11:16,000 Speaker 1: this season he has served up three homers in the 202 00:11:16,080 --> 00:11:19,040 Speaker 1: first so Seattle just the fourth opposing team to win 203 00:11:19,120 --> 00:11:21,480 Speaker 1: a series in the Bronx and what could hardly be 204 00:11:21,559 --> 00:11:24,319 Speaker 1: called a surprise the NFL will appeal the ruling on 205 00:11:24,400 --> 00:11:28,920 Speaker 1: the Deshaun Watson suspension for sexual misconduct. The independent arbitrator 206 00:11:28,960 --> 00:11:31,360 Speaker 1: called for it to be six games, but the appeal process, 207 00:11:31,640 --> 00:11:34,120 Speaker 1: as agreed to by both sides of the labor deal, 208 00:11:34,520 --> 00:11:36,800 Speaker 1: calls for the Commissioner or at least somewhat designated by 209 00:11:36,920 --> 00:11:39,200 Speaker 1: Roger Goodell, to be the one to rule on the appeal, 210 00:11:39,280 --> 00:11:42,040 Speaker 1: So the NFL is appealing basically to themselves. They would 211 00:11:42,080 --> 00:11:44,079 Speaker 1: then be allowed to make the suspension longer. The Players 212 00:11:44,120 --> 00:11:48,040 Speaker 1: Association may then follow with a lawsuit. John Stashanward, Bloomberg Sports. 213 00:11:48,440 --> 00:11:51,040 Speaker 1: Thank you, John. This red headline just across the Bloomberg terminal. 214 00:11:51,080 --> 00:11:55,000 Speaker 1: Credit Swiss Group executives are reportedly discussing cutting thousands of 215 00:11:55,120 --> 00:11:58,120 Speaker 1: jobs around the world as the struggling European lender tries 216 00:11:58,200 --> 00:12:01,720 Speaker 1: to slash its overall cost base by an additional billion dollars. 217 00:12:02,120 --> 00:12:08,319 Speaker 1: You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather. Yeah, 218 00:12:08,320 --> 00:12:11,160 Speaker 1: it's gonna be hot in mid nineties today and tomorrow. 219 00:12:11,240 --> 00:12:13,720 Speaker 1: The heat advisory kicks into eleven a m. Last till 220 00:12:13,880 --> 00:12:16,240 Speaker 1: eight pm Friday, will be back in the uper eighties 221 00:12:16,280 --> 00:12:22,440 Speaker 1: by Saturday. Right now seventy eight in Central Park markets. 222 00:12:22,559 --> 00:12:25,600 Speaker 1: Headlines and breaking news twenty four hours a day at 223 00:12:25,640 --> 00:12:29,040 Speaker 1: Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg 224 00:12:29,120 --> 00:12:39,000 Speaker 1: Quick Tape He's a Bloomberg Business lash and I'm Karen Moscow. 225 00:12:39,160 --> 00:12:42,240 Speaker 1: And stocks are nudging higher as investors assess the corporate 226 00:12:42,360 --> 00:12:45,400 Speaker 1: profit outlook well waiters on further Federal reserve interest rate 227 00:12:45,480 --> 00:12:48,280 Speaker 1: hikes lift treasury yields. We checked the markets every fifteen 228 00:12:48,320 --> 00:12:51,120 Speaker 1: minutes throughout the trading day on Bloomberg Guess and p 229 00:12:51,320 --> 00:12:54,280 Speaker 1: future is up twelve points now, futures of seventy NASDAG 230 00:12:54,320 --> 00:12:56,800 Speaker 1: futures up sixty the decks in Germany's at one point 231 00:12:56,880 --> 00:12:59,920 Speaker 1: three and the tend your Treasury down six thirty second 232 00:13:00,000 --> 00:13:02,640 Speaker 1: tield two point seven two percent yield on the two 233 00:13:02,720 --> 00:13:05,920 Speaker 1: year three point one zero percent. Nine excrude oils up 234 00:13:05,960 --> 00:13:08,280 Speaker 1: one point one percent or ninety eight cents and ninety 235 00:13:08,320 --> 00:13:10,880 Speaker 1: one dollar sixty three cents of barrel called max Schold 236 00:13:10,920 --> 00:13:13,240 Speaker 1: at one point one percent or eighteen dollars ninety cents. 237 00:13:13,400 --> 00:13:18,120 Speaker 1: Sevnnounced the euro one pot one nine one against the dollar. 238 00:13:18,200 --> 00:13:20,880 Speaker 1: British found one point one eight six c one thirty 239 00:13:20,960 --> 00:13:23,960 Speaker 1: four point one four and bitcoin down one point seven 240 00:13:24,000 --> 00:13:27,240 Speaker 1: percent at twenty two thousand, nine hundred twenty dollars, and 241 00:13:27,400 --> 00:13:31,359 Speaker 1: Credit Swiss Group executives discussing cutting thousands of jobs globally. 242 00:13:31,520 --> 00:13:34,080 Speaker 1: This is a struggling European lenders seeks to slash its 243 00:13:34,160 --> 00:13:37,760 Speaker 1: overall cost base by an additional one billion dollars. And 244 00:13:37,800 --> 00:13:39,839 Speaker 1: today we also are watching for the weekly report on 245 00:13:39,880 --> 00:13:42,400 Speaker 1: initial jobless claims at an eight thirty Wall Street time, 246 00:13:42,800 --> 00:13:45,400 Speaker 1: along with the trade balance. And that's a Bloomberg business flash. 247 00:13:45,480 --> 00:13:47,559 Speaker 1: Now here Smuggle Barro with more on what's going on 248 00:13:47,679 --> 00:13:50,160 Speaker 1: around the world. Michael Karen, thank you very much. Today 249 00:13:50,280 --> 00:13:53,920 Speaker 1: China fired eleven missiles into the c surrounding Taiwan. It 250 00:13:54,040 --> 00:13:56,559 Speaker 1: is in response to a visit by US how Speaker 251 00:13:56,640 --> 00:13:59,959 Speaker 1: Nancy Pelosi to the island Beijing claims as its own 252 00:14:00,000 --> 00:14:04,200 Speaker 1: in territory. The Senate ratified adding Sweden and Finland to NATO, 253 00:14:04,360 --> 00:14:07,960 Speaker 1: a move intended to bolster the military alliance after Russia's 254 00:14:07,960 --> 00:14:11,319 Speaker 1: invasion of Ukraine. Closing arguments in w n B A 255 00:14:11,520 --> 00:14:15,240 Speaker 1: star Brittney Grinder's cannabis possession case in Russia are set 256 00:14:15,360 --> 00:14:19,000 Speaker 1: for today. In baseball, the Mamaters beat the Yankees seven three, 257 00:14:19,280 --> 00:14:22,200 Speaker 1: The Mats beat the Nationals nine five, The Red Sox 258 00:14:22,280 --> 00:14:27,080 Speaker 1: and Giants lost the Orioles and A's one Global News 259 00:14:27,160 --> 00:14:30,200 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 260 00:14:30,400 --> 00:14:34,280 Speaker 1: powered by more than journalist and analysts more than twenty countries. 261 00:14:34,640 --> 00:14:40,120 Speaker 1: Michael barn this is Bloomberg, Bloomberg Opinion, informed perspectives and 262 00:14:40,360 --> 00:14:44,920 Speaker 1: expert data driven commentary on breaking news, life and the 263 00:14:44,960 --> 00:14:48,360 Speaker 1: Bloomberg Interacted Blocus Studios. This is Bloomberg Daybreak. We are 264 00:14:48,440 --> 00:14:51,880 Speaker 1: coming up to six twenty on Wall Street and Bloomberg Opinion. 265 00:14:51,960 --> 00:14:55,040 Speaker 1: Calumnist Marcus Ashworth joins us ahead of the Bank of 266 00:14:55,120 --> 00:14:59,680 Speaker 1: England decision, now just about forty minutes away. Marcus, I 267 00:14:59,800 --> 00:15:01,880 Speaker 1: love of the headline on your piece ahead of this 268 00:15:02,040 --> 00:15:04,280 Speaker 1: policy meeting. The Bank of England needs a big bac 269 00:15:04,320 --> 00:15:07,520 Speaker 1: and fries. Do you think policymakers have gotten the message 270 00:15:07,600 --> 00:15:11,680 Speaker 1: from the rising fast food menu? Marcus? It never accused 271 00:15:11,720 --> 00:15:15,680 Speaker 1: me of click baker, but I mean the point is 272 00:15:15,760 --> 00:15:17,640 Speaker 1: is that they've upped the price of a burger here 273 00:15:17,720 --> 00:15:22,120 Speaker 1: or cheeseburger by and though inflation will probably drop back 274 00:15:22,160 --> 00:15:25,080 Speaker 1: a bit next year or whatever, the chances of a 275 00:15:25,160 --> 00:15:29,800 Speaker 1: burger going back to below a pound, it's never gonna happen. 276 00:15:29,840 --> 00:15:33,120 Speaker 1: We've that's gone forever, and that's the point that inflation 277 00:15:33,280 --> 00:15:38,200 Speaker 1: is embedding and expectations are rising um just as time 278 00:15:38,280 --> 00:15:40,560 Speaker 1: goes by and the feet through and energy prices comes 279 00:15:40,600 --> 00:15:43,480 Speaker 1: into things like food and then obviously wages. So yes, 280 00:15:43,560 --> 00:15:45,640 Speaker 1: the Bank of Things should raise fifty basis points. They 281 00:15:45,640 --> 00:15:48,560 Speaker 1: would be very surprised if it doesn't, but I have 282 00:15:48,720 --> 00:15:52,320 Speaker 1: some very good excuses if and that would be very 283 00:15:52,360 --> 00:15:54,160 Speaker 1: worried because it would have to be predicated on some 284 00:15:54,320 --> 00:15:57,760 Speaker 1: very poor forward economic forecast, which I don't think will happen. 285 00:15:57,840 --> 00:16:00,080 Speaker 1: But that's why I think fifties pretty much now on 286 00:16:00,600 --> 00:16:02,040 Speaker 1: and it will be good to see them. This would 287 00:16:02,040 --> 00:16:04,040 Speaker 1: be the biggest move they've done for twenty seven years, 288 00:16:04,480 --> 00:16:07,680 Speaker 1: but obviously follows the more aggressive even FED and even 289 00:16:07,720 --> 00:16:11,400 Speaker 1: though surprisingly aggressive European Central Bank just a week or 290 00:16:11,440 --> 00:16:13,560 Speaker 1: so ago. So it's it's the finowing in line with 291 00:16:13,560 --> 00:16:18,040 Speaker 1: everyone else. Does the BOE stick with a fifty basis 292 00:16:18,120 --> 00:16:20,560 Speaker 1: points going forward or is this just the one and done? 293 00:16:20,600 --> 00:16:22,840 Speaker 1: Do you think I think it's well, it's a one 294 00:16:22,880 --> 00:16:24,920 Speaker 1: and go down back to the normal twenty five. I 295 00:16:24,960 --> 00:16:26,760 Speaker 1: think we'll probably get two or three more of them 296 00:16:26,920 --> 00:16:29,240 Speaker 1: the rest of this year, get over two percent, maybe 297 00:16:29,240 --> 00:16:32,000 Speaker 1: two and a quarter somewhere around there, and then probably pause. 298 00:16:32,080 --> 00:16:35,920 Speaker 1: They're also starting quantitative tightening. We think we'll get some 299 00:16:36,000 --> 00:16:39,240 Speaker 1: details on that today and the final decision we men 300 00:16:39,280 --> 00:16:41,880 Speaker 1: in September, but it will be a gradual one. But 301 00:16:41,960 --> 00:16:44,480 Speaker 1: they're gonna you know, I think the fifty base point 302 00:16:44,560 --> 00:16:47,520 Speaker 1: needs to be done um now, but I think they'll 303 00:16:47,600 --> 00:16:50,520 Speaker 1: probably hold back and do twenty fives now. And the 304 00:16:50,640 --> 00:16:52,480 Speaker 1: only riter to that if we do get a very 305 00:16:52,560 --> 00:16:56,280 Speaker 1: aggressive fiscal passage package for the next Conservative five minister, 306 00:16:56,880 --> 00:16:59,200 Speaker 1: then maybe they feel they need to counter right that 307 00:16:59,280 --> 00:17:01,840 Speaker 1: and there might be another fifty. But it's yeah, we 308 00:17:01,880 --> 00:17:03,400 Speaker 1: think we're gonna get to about two and a quarter 309 00:17:03,440 --> 00:17:07,679 Speaker 1: two and a half terminal rates um, so midway between 310 00:17:07,760 --> 00:17:09,320 Speaker 1: what the FED and and and the u CV are 311 00:17:09,359 --> 00:17:11,840 Speaker 1: going to do. It's tighter policy going to be enough 312 00:17:11,920 --> 00:17:14,320 Speaker 1: to reign in the kind of inflation we are seeing 313 00:17:14,480 --> 00:17:16,800 Speaker 1: in the UK where you're dealing with a cost of 314 00:17:16,880 --> 00:17:19,800 Speaker 1: living crisis, and of course there's probably a lot of 315 00:17:19,840 --> 00:17:23,399 Speaker 1: the same dynamics that continental Europe is dealing with with 316 00:17:23,560 --> 00:17:27,440 Speaker 1: the war in Ukraine affecting energy prices. Well, we're caught 317 00:17:27,480 --> 00:17:30,040 Speaker 1: in the trap between the pressures of Europe and then 318 00:17:30,080 --> 00:17:32,600 Speaker 1: then the pressures similar as the US has on a 319 00:17:32,680 --> 00:17:34,600 Speaker 1: very tight labor market. So it makes a little bit 320 00:17:34,800 --> 00:17:37,000 Speaker 1: something a little bit more cute. But the good news 321 00:17:37,040 --> 00:17:39,840 Speaker 1: about the UK economy, very much like the U S economy, 322 00:17:39,880 --> 00:17:43,120 Speaker 1: has got very strong banking system, big savings in both 323 00:17:43,160 --> 00:17:46,600 Speaker 1: household and corporates, and that very low unemployment is you know, 324 00:17:46,720 --> 00:17:48,720 Speaker 1: is a good place to start a down to and from, 325 00:17:48,800 --> 00:17:50,320 Speaker 1: if you know what I mean in the sense, I 326 00:17:50,359 --> 00:17:54,240 Speaker 1: don't think it would be a very deep or nasty procession. 327 00:17:54,320 --> 00:17:57,399 Speaker 1: If even there is one, I think will bumble along 328 00:17:58,119 --> 00:18:01,960 Speaker 1: around zero growth for for the next courses. An inflation 329 00:18:02,000 --> 00:18:05,280 Speaker 1: will come down almost of its own accord, and I 330 00:18:05,359 --> 00:18:06,960 Speaker 1: don't think there's much the bank and you can do 331 00:18:07,000 --> 00:18:09,320 Speaker 1: about it. They've got to act to try and come 332 00:18:09,400 --> 00:18:12,560 Speaker 1: some of those inflactional explanations feems of labor uh, you know, 333 00:18:12,600 --> 00:18:16,400 Speaker 1: wage rises. But the reality is this is external influences 334 00:18:16,520 --> 00:18:18,840 Speaker 1: energy and they've got very little control over it. How 335 00:18:18,960 --> 00:18:21,199 Speaker 1: much of an external influences politics here is there are 336 00:18:21,200 --> 00:18:23,439 Speaker 1: a feeling that the VOE needs to get aggressive now 337 00:18:23,560 --> 00:18:28,679 Speaker 1: before there's the leadership change in September. No ish, I mean, 338 00:18:28,720 --> 00:18:31,680 Speaker 1: obviously I don't think they can act on that in 339 00:18:31,760 --> 00:18:34,360 Speaker 1: the sense that they really can't. All their economic forecasts, 340 00:18:34,400 --> 00:18:37,159 Speaker 1: of course, all rubbish because they're all going to be 341 00:18:37,280 --> 00:18:39,840 Speaker 1: changed when the government does do another big fiscal stimulus. 342 00:18:40,280 --> 00:18:42,680 Speaker 1: So a lot of these economic forecasts you're seen out 343 00:18:42,840 --> 00:18:45,440 Speaker 1: on the UK at the moments are just simply wrong, 344 00:18:45,520 --> 00:18:47,920 Speaker 1: and then everyone knows they're wrong because you can't plug 345 00:18:48,000 --> 00:18:49,880 Speaker 1: in something you don't know which is going to happen 346 00:18:50,000 --> 00:18:53,840 Speaker 1: very soon and another big fiscal stimulus. Nonetheless, I think 347 00:18:53,880 --> 00:18:55,400 Speaker 1: the Bank of England will you know, if it comes 348 00:18:55,400 --> 00:18:57,960 Speaker 1: between doing zero or twenty five or whatever it may 349 00:18:58,000 --> 00:18:59,959 Speaker 1: be in the future, and they think the fiscals can 350 00:19:00,040 --> 00:19:03,159 Speaker 1: sisto strong, they're gonna courtion. The good mute is the 351 00:19:03,280 --> 00:19:06,280 Speaker 1: government has saved them to be blamed for recession by 352 00:19:06,320 --> 00:19:08,840 Speaker 1: stepping in on the fiscal side, which means the Manet 353 00:19:08,880 --> 00:19:10,400 Speaker 1: you can get on and do what it should be doing, 354 00:19:10,760 --> 00:19:13,480 Speaker 1: which is on monegy policy, which is calming inflation. They 355 00:19:13,480 --> 00:19:15,040 Speaker 1: should have done an age ago, but at least they're 356 00:19:15,040 --> 00:19:17,440 Speaker 1: getting on that now and they will get on with it. 357 00:19:17,560 --> 00:19:19,760 Speaker 1: One way or the other in about thirty six minutes 358 00:19:19,760 --> 00:19:21,760 Speaker 1: when we get that decision from the b O E. 359 00:19:21,920 --> 00:19:24,879 Speaker 1: Marcus Ashworth, Bloomberg Opinion columnist, thanks for being with us 360 00:19:25,320 --> 00:19:29,880 Speaker 1: ahead of that decision. Get more Bloomberg Opinion Bloomberg dot 361 00:19:29,960 --> 00:19:33,600 Speaker 1: Com Slash Opinion O P I N go on the 362 00:19:33,640 --> 00:19:36,440 Speaker 1: Bloomberg terminal, where you can get even more great headlines 363 00:19:36,480 --> 00:19:40,720 Speaker 1: about Big Max and fries. SFP futures up thirteen points, 364 00:19:40,720 --> 00:19:44,359 Speaker 1: staff futures up seventy two, NASTAC futures up sixty two points. 365 00:19:44,440 --> 00:19:47,680 Speaker 1: So adding to games as we get closer to the 366 00:19:47,760 --> 00:19:50,880 Speaker 1: market open on Wall Street. Ten year treasuries down five 367 00:19:50,960 --> 00:19:53,840 Speaker 1: thirty seconds, the yield two point seven to per cent, 368 00:19:54,119 --> 00:19:57,920 Speaker 1: just ahead the Feds still talking tough on inflation and credit. 369 00:19:58,000 --> 00:20:01,200 Speaker 1: Sweez looking at it's sweeping, John Cuts. Five things you 370 00:20:01,320 --> 00:20:03,200 Speaker 1: need to know to start your day. Coming up on 371 00:20:03,240 --> 00:20:09,520 Speaker 1: Bloomberg day Break Bloomberg eleven three oh Weather heat Advisory 372 00:20:09,600 --> 00:20:12,119 Speaker 1: kicks in at eleven am last till eight p m 373 00:20:12,359 --> 00:20:16,080 Speaker 1: Friday today tomorrow. In your ninety five degrees will be 374 00:20:16,160 --> 00:20:18,760 Speaker 1: in the oper eighties by Saturday. Right now, seventy eight 375 00:20:18,880 --> 00:20:25,240 Speaker 1: in Central Park, broadcasting live from the Bloomberg Interactive Broker 376 00:20:25,359 --> 00:20:28,760 Speaker 1: Studio in New York, Bloomberg E living three on to Washington, 377 00:20:28,880 --> 00:20:32,680 Speaker 1: d C, Bloomberg on to Boston, Bloomberg one O six 378 00:20:32,800 --> 00:20:35,959 Speaker 1: one to San Francisco, Bloomberg nine sixty to the Country, 379 00:20:36,080 --> 00:20:39,080 Speaker 1: Sirius XM Chandel one nine tea and around the globe 380 00:20:39,160 --> 00:20:43,159 Speaker 1: the Bloomberg Business and Bloomberg Radio dot com. This is 381 00:20:43,200 --> 00:20:51,920 Speaker 1: Bloomberg Day Break six thirty on Wall Street. Good morning, 382 00:20:52,040 --> 00:20:54,840 Speaker 1: I'm Nathan Hagar and I'm Karen Moscow. He are just 383 00:20:54,960 --> 00:20:57,919 Speaker 1: about three hours away from the open of US trading 384 00:20:58,000 --> 00:21:00,280 Speaker 1: time for the five things you need to notice start 385 00:21:00,359 --> 00:21:04,240 Speaker 1: your day. Brought to you by Interactive Brokers. Interactive Brokers 386 00:21:04,359 --> 00:21:07,000 Speaker 1: charges Martin loan rates from two point eight three percent 387 00:21:07,280 --> 00:21:09,800 Speaker 1: to three point eight three percent. Their clients can also 388 00:21:09,840 --> 00:21:12,440 Speaker 1: are an extra income by lending their fully paid shares 389 00:21:12,480 --> 00:21:15,160 Speaker 1: of stock rate subject to change. Learn more at ib 390 00:21:15,280 --> 00:21:18,399 Speaker 1: k R dot com. Slash compair first. The S and 391 00:21:18,480 --> 00:21:21,400 Speaker 1: P five hundred enters this session near a two month high. 392 00:21:21,560 --> 00:21:24,359 Speaker 1: The tech heavy Nasdaq one hundred indexes at its highest 393 00:21:24,440 --> 00:21:28,119 Speaker 1: level since early May. Corporate earnings and healthy economic data 394 00:21:28,400 --> 00:21:32,080 Speaker 1: has helped to lift sentiment, but Alifa Doria Walla, managing 395 00:21:32,160 --> 00:21:35,440 Speaker 1: director at Rock Creek, says she's still proceeding with caution. 396 00:21:36,000 --> 00:21:38,920 Speaker 1: There could be another severe downturn, another leg to go 397 00:21:39,080 --> 00:21:40,440 Speaker 1: in the S and P, and a lot of that 398 00:21:40,600 --> 00:21:42,760 Speaker 1: is some of the big tech companies that could continue 399 00:21:42,800 --> 00:21:44,520 Speaker 1: to get hard because of the strong dollar and what 400 00:21:44,640 --> 00:21:46,680 Speaker 1: will happen to earnings in the coming orders if that 401 00:21:46,760 --> 00:21:50,520 Speaker 1: strong dollar remains. Rock creates Alifa Dora Walla says the 402 00:21:50,600 --> 00:21:53,960 Speaker 1: recent pivotento tech might be short lived. I meantime, Karen 403 00:21:54,040 --> 00:21:57,800 Speaker 1: Feed officials keep talking tough on inflation. Minneapolis President Neil 404 00:21:57,840 --> 00:22:00,439 Speaker 1: cash Cary says the Federal Reserve will keep doing everything 405 00:22:00,520 --> 00:22:05,040 Speaker 1: in its power to cool inflation. Some financial markets are 406 00:22:05,040 --> 00:22:08,440 Speaker 1: indicating that they expect US to cut interest rates next year. Uh. 407 00:22:08,880 --> 00:22:10,879 Speaker 1: I don't want to say it's impossible, but it seems 408 00:22:10,920 --> 00:22:13,440 Speaker 1: like that's a very unlikely scenario right now, given what 409 00:22:13,560 --> 00:22:16,440 Speaker 1: I know about the underlying inflation dynamics. And more likely 410 00:22:16,480 --> 00:22:19,560 Speaker 1: scenario is we would continue raising and then we would 411 00:22:19,560 --> 00:22:22,440 Speaker 1: sit there. In Minneapolis, FED President Neil cash car says 412 00:22:22,440 --> 00:22:24,760 Speaker 1: whether the US is technically in recession right now or 413 00:22:24,800 --> 00:22:28,440 Speaker 1: not does not change his analysis. Well, monetary policy is 414 00:22:28,480 --> 00:22:31,199 Speaker 1: in focus. Overseas, Nathan, the Bank of England gets set 415 00:22:31,280 --> 00:22:33,720 Speaker 1: a high interest rates shortly and could raise rates at 416 00:22:33,720 --> 00:22:35,959 Speaker 1: half a point well, saying. In Europe, Karrent executives from 417 00:22:35,960 --> 00:22:38,680 Speaker 1: Swiss Bank Credit Suite are thinking of reducing thousands of 418 00:22:38,840 --> 00:22:40,879 Speaker 1: roles globally. At least they're talking about it as the 419 00:22:40,880 --> 00:22:43,840 Speaker 1: struggling European lender seeks to slash its overall cost based 420 00:22:43,840 --> 00:22:47,600 Speaker 1: by another billion dollars. Meanwhile, Nathan, the world's largest retailer 421 00:22:47,720 --> 00:22:50,479 Speaker 1: is announcing job cuts. More in this live report from 422 00:22:50,520 --> 00:22:54,280 Speaker 1: Bloomberg's John Tucker John, Good Morning, Darren. Walmart eliminating about 423 00:22:54,359 --> 00:22:57,800 Speaker 1: two hundred corporate jobs. Sources tell Bloomberg that counts includes 424 00:22:57,840 --> 00:23:00,840 Speaker 1: staffers and last mild delivery and merchant does, and more 425 00:23:00,960 --> 00:23:04,560 Speaker 1: cuts maybe on the way in areas such as e commerce. 426 00:23:04,920 --> 00:23:07,560 Speaker 1: The build tightening comes a week after slashing its annual 427 00:23:07,600 --> 00:23:10,960 Speaker 1: profit forecast for the second time in less than three months. 428 00:23:11,280 --> 00:23:14,119 Speaker 1: Walmart has had to cut prices on general merchandise as 429 00:23:14,160 --> 00:23:17,400 Speaker 1: their customers pulled back on spending. Live to New York, 430 00:23:17,440 --> 00:23:19,800 Speaker 1: I'm John Tucker, Bloomberg Day Break. Thank you, John, and 431 00:23:19,840 --> 00:23:22,159 Speaker 1: more corporate news here in the State's Tesla holds its 432 00:23:22,160 --> 00:23:25,080 Speaker 1: annual shareholder meeting today. And that's the five things that 433 00:23:25,160 --> 00:23:27,240 Speaker 1: you need to notice start your day. Brought to you 434 00:23:27,400 --> 00:23:30,920 Speaker 1: by Interactive Brokers. Again, futures are higher this morning, and 435 00:23:31,080 --> 00:23:34,359 Speaker 1: straight ahead your latest local headlines, plus a check of sports. 436 00:23:34,440 --> 00:23:40,320 Speaker 1: This is Bloomberg. Thanks Ter sixe on Wall Street. Seventy 437 00:23:40,320 --> 00:23:42,679 Speaker 1: seven degrees in Central Park. Still got that crash he's 438 00:23:42,680 --> 00:23:45,640 Speaker 1: found Cross Bronx and Jerome Avenue. More coming up in traffic. 439 00:23:45,760 --> 00:23:47,840 Speaker 1: First Michael Barr with what else is going on in 440 00:23:47,880 --> 00:23:50,080 Speaker 1: New York and around the world. Good morning, Michael, Good 441 00:23:50,160 --> 00:23:53,240 Speaker 1: morning Nathan. Today China fired eleven missiles into the sea 442 00:23:53,320 --> 00:23:56,440 Speaker 1: around Taiwan. The drills were prompted by a visit to 443 00:23:56,520 --> 00:23:59,920 Speaker 1: the island by All Speaker Nancy Pelosi. This week, speculation 444 00:24:00,000 --> 00:24:02,760 Speaker 1: and rises about China's threat to attack the self governing 445 00:24:02,800 --> 00:24:05,840 Speaker 1: island Republic. A heat advisory is an effect for the 446 00:24:05,920 --> 00:24:09,480 Speaker 1: tri state area because of dangerously hot and human conditions. 447 00:24:09,920 --> 00:24:12,960 Speaker 1: Today's high in New York will be around ninety four degrees. 448 00:24:13,359 --> 00:24:16,119 Speaker 1: New York City Mayor Eric Adams says he's freeing up 449 00:24:16,160 --> 00:24:18,760 Speaker 1: a hundred million dollars in federal stimulus money for New 450 00:24:18,880 --> 00:24:22,439 Speaker 1: York City schools. It comes after an outcry among parents 451 00:24:22,520 --> 00:24:25,600 Speaker 1: and some educators over the city's planned on hundreds of 452 00:24:25,640 --> 00:24:28,520 Speaker 1: millions of dollars in funding for schools in the current 453 00:24:28,600 --> 00:24:32,560 Speaker 1: fiscal year. The Atoms administration's reverse hole on school funding 454 00:24:32,640 --> 00:24:36,080 Speaker 1: comes a day before a hearing planned and the lawsuit 455 00:24:36,200 --> 00:24:39,000 Speaker 1: filed by parents and teachers in an effort to stop 456 00:24:39,040 --> 00:24:42,879 Speaker 1: the budget cuts. Meanwhile, Mayor Adams pushed back against criticism 457 00:24:43,160 --> 00:24:46,840 Speaker 1: that is continual focus on crime at press conferences since 458 00:24:46,920 --> 00:24:49,960 Speaker 1: taking office is feeding into an overblown narrative that the 459 00:24:50,080 --> 00:24:54,359 Speaker 1: city is unsafe. This conversation is about a small number 460 00:24:54,480 --> 00:24:58,320 Speaker 1: of dangerous people who are repeated recidivist who have made 461 00:24:58,400 --> 00:25:02,240 Speaker 1: up their minds that we could do whatever we want 462 00:25:02,359 --> 00:25:04,679 Speaker 1: in this city and nothing is going to happen to us. 463 00:25:05,080 --> 00:25:07,440 Speaker 1: Adams says, the real issue is how much coverage of 464 00:25:07,560 --> 00:25:11,720 Speaker 1: crime there is by the media. Conspiracy theorist Alex Jones 465 00:25:11,840 --> 00:25:14,720 Speaker 1: now concedes the massacre at Sandy Hook Elementary School in 466 00:25:16,160 --> 00:25:20,680 Speaker 1: was reel. A jury is now deliberating Jones's punishment in 467 00:25:20,720 --> 00:25:23,360 Speaker 1: a defamation case. The parents of a six year old 468 00:25:23,400 --> 00:25:26,359 Speaker 1: victim of the shooting successfully suthed the info Wars host 469 00:25:26,640 --> 00:25:30,160 Speaker 1: proclaiming the shooting was a hoax. During testimony, while Jones 470 00:25:30,240 --> 00:25:33,120 Speaker 1: was on the stand, there was a startling revelation from 471 00:25:33,160 --> 00:25:36,359 Speaker 1: the lawyer of the parents, Mark Bankston, accused Jones of 472 00:25:36,480 --> 00:25:39,720 Speaker 1: lying and trying to hide evidence, including text messages and 473 00:25:40,000 --> 00:25:44,959 Speaker 1: emails about Sandy Hook. Two days your attorney's messed up 474 00:25:45,440 --> 00:25:49,760 Speaker 1: and sitting an entire digital coining of your entire cell 475 00:25:49,800 --> 00:25:53,440 Speaker 1: phone with every text message you've sent for the past 476 00:25:53,520 --> 00:25:57,280 Speaker 1: two years, and when informed, did not take any steps 477 00:25:57,320 --> 00:26:00,240 Speaker 1: to identify it as privilege or protected in any way, 478 00:26:00,800 --> 00:26:02,720 Speaker 1: And as of two days ago, it felt free and 479 00:26:02,800 --> 00:26:05,040 Speaker 1: clear in the mike possession. And that is how I 480 00:26:05,160 --> 00:26:07,520 Speaker 1: know you'd lied to me when you said you didn't 481 00:26:07,520 --> 00:26:09,680 Speaker 1: have text message about Samu Okan. Did you know that 482 00:26:10,400 --> 00:26:12,480 Speaker 1: I see? I told you the truth? This is your 483 00:26:12,560 --> 00:26:16,399 Speaker 1: Perrymason moment. Erney. Mark Bankston says Jones made the lives 484 00:26:16,520 --> 00:26:19,760 Speaker 1: of the parents a living hell. New Jersey Restaurants received 485 00:26:19,760 --> 00:26:23,000 Speaker 1: a two year extension to continue operating outdoors. Governor Phil 486 00:26:23,040 --> 00:26:26,680 Speaker 1: Murphy says it's a pandemic precaution that remains necessary to 487 00:26:26,720 --> 00:26:29,879 Speaker 1: boost small businesses. Global News twenty four hours a day 488 00:26:29,960 --> 00:26:32,480 Speaker 1: on air and on Bloomberg Quick Take, powered by more 489 00:26:32,760 --> 00:26:35,159 Speaker 1: than twenty seven hundred journalists and analysts are more than 490 00:26:35,200 --> 00:26:39,760 Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Michael, 491 00:26:39,840 --> 00:26:47,160 Speaker 1: thank you. Six thirty six on Wall Street. John Sanshower 492 00:26:47,280 --> 00:26:50,040 Speaker 1: has the Bloomberg Sports Update. All right, Nathan Garrett Cole 493 00:26:50,240 --> 00:26:53,639 Speaker 1: is the Yankees as when the playoffs begin. Hill undoubtedly 494 00:26:53,720 --> 00:26:56,200 Speaker 1: beyond the mound. He's at an all star season, but 495 00:26:56,359 --> 00:26:59,360 Speaker 1: he's had a few clunkers. There's some fear of Yankee fans. 496 00:26:59,400 --> 00:27:01,359 Speaker 1: What if that happened to the postseason? That was that 497 00:27:01,480 --> 00:27:03,600 Speaker 1: night in June and Minnesota went for the first time 498 00:27:03,640 --> 00:27:05,399 Speaker 1: in Cole's career. He gave up three home runs in 499 00:27:05,440 --> 00:27:08,120 Speaker 1: the first day, three in a row. First inning yesterday 500 00:27:08,200 --> 00:27:10,920 Speaker 1: at the stadium, a three run homer by Eugenio Suarez, 501 00:27:10,960 --> 00:27:13,600 Speaker 1: a solo shot for Carlos Santanna, and a two run 502 00:27:13,720 --> 00:27:17,080 Speaker 1: blast by the Mariners Jared Klenny. That's the former Mets 503 00:27:17,119 --> 00:27:20,080 Speaker 1: farm hand that he one thirty three. Cole did settle 504 00:27:20,119 --> 00:27:22,200 Speaker 1: down after that, but Seattle won the game seven to three, 505 00:27:22,240 --> 00:27:24,960 Speaker 1: and Cole was asked about that first inning. Have a 506 00:27:25,040 --> 00:27:29,280 Speaker 1: pretty vivid recollection. I think it's sometimes easier to remember 507 00:27:29,359 --> 00:27:36,200 Speaker 1: about stuff, um, Carol. But there were some bad pitch selections. 508 00:27:36,280 --> 00:27:40,600 Speaker 1: There were some bad pitches, um, and uh, you know 509 00:27:40,720 --> 00:27:43,359 Speaker 1: we got punished for it again. Louis Castillo got the 510 00:27:43,400 --> 00:27:46,320 Speaker 1: win in his Mariner's debut. He also beat the Yankees 511 00:27:46,400 --> 00:27:47,960 Speaker 1: in the Bronx in the game just a few weeks 512 00:27:48,000 --> 00:27:50,399 Speaker 1: ago while he was with the Reds. He just got treated. 513 00:27:50,480 --> 00:27:53,120 Speaker 1: The Yankees had only five hits there off tonight. They 514 00:27:53,160 --> 00:27:56,200 Speaker 1: are in St. Louis tomorrow. The Mets tonight host Atlanta. 515 00:27:56,560 --> 00:27:59,520 Speaker 1: It's the start of a huge five game weekend series 516 00:27:59,560 --> 00:28:02,280 Speaker 1: in City Field to play a doubleheader on Saturday, and 517 00:28:02,320 --> 00:28:05,200 Speaker 1: if either team should win three or four of the five, 518 00:28:05,320 --> 00:28:07,320 Speaker 1: that's a three game swing. Met's currently three and a 519 00:28:07,320 --> 00:28:09,959 Speaker 1: half games ahead of the Braves. They wanted Washington nine 520 00:28:10,040 --> 00:28:12,040 Speaker 1: to five. Daniel vogel Backs first mat homer was a 521 00:28:12,080 --> 00:28:14,680 Speaker 1: Grand Slam. The game was nine nothing for the next 522 00:28:15,080 --> 00:28:18,040 Speaker 1: Nap scored five. The ninth NFL just hit. The Dolphins 523 00:28:18,080 --> 00:28:20,240 Speaker 1: took the way their first round draft pick next year 524 00:28:20,560 --> 00:28:23,040 Speaker 1: for tampering while trying to acquire Tom Brady, and the 525 00:28:23,160 --> 00:28:25,720 Speaker 1: tampering began not when Brady was with Tampa Bay. It 526 00:28:25,840 --> 00:28:28,600 Speaker 1: goes back to two thousand, nineteen, while Brady was still 527 00:28:28,680 --> 00:28:31,320 Speaker 1: with the Patriots. Bill Belichick asked about that yesterday, declined 528 00:28:31,359 --> 00:28:34,000 Speaker 1: to comment. Phil Mickelson, one of eleven golfers, joined the 529 00:28:34,040 --> 00:28:36,680 Speaker 1: new Live Tour, now suing the p g A for 530 00:28:36,760 --> 00:28:41,160 Speaker 1: an I trust violations. John Stash were Bloomberg Sports All right, John, 531 00:28:41,200 --> 00:28:43,320 Speaker 1: thank you to six thirty eight on Wall Street Time 532 00:28:43,360 --> 00:28:45,000 Speaker 1: to take a look at stocks, some of the names 533 00:28:45,040 --> 00:28:47,959 Speaker 1: moving in the pre market. Bloomberg's Laura Right joins us 534 00:28:48,080 --> 00:28:52,000 Speaker 1: Live ahead of the market open, watching Credit sweez shares. 535 00:28:52,080 --> 00:28:55,560 Speaker 1: Laura after news of the latest cost cutting plan that 536 00:28:55,640 --> 00:28:58,960 Speaker 1: the bank's at least considering. Yeah, and the market likes 537 00:28:59,080 --> 00:29:01,840 Speaker 1: what it had. Credits Sweet up around two and a 538 00:29:01,880 --> 00:29:05,080 Speaker 1: half percent in the pre marketed US listed depository that 539 00:29:05,240 --> 00:29:08,000 Speaker 1: is now The bank announced the appointment of a new 540 00:29:08,120 --> 00:29:12,560 Speaker 1: CEO last week. Or Kerner asked the stock fell six 541 00:29:13,200 --> 00:29:16,320 Speaker 1: Under his predecessor, Thomas Scott, the bank has been tied 542 00:29:16,360 --> 00:29:19,720 Speaker 1: to numerous scandals over the last eighteen months, raising the 543 00:29:19,880 --> 00:29:22,760 Speaker 1: question of poor risk management. Now there's a bloom Bug 544 00:29:22,800 --> 00:29:25,520 Speaker 1: scoop out this morning that credit spreets are discussing an 545 00:29:25,600 --> 00:29:29,040 Speaker 1: aggressive plan to reduce their head count globally. I was 546 00:29:29,080 --> 00:29:31,800 Speaker 1: actually in the room with Mannis Cranny last week for 547 00:29:32,040 --> 00:29:35,320 Speaker 1: the earnings interview in Zurich when the chairman revealed the 548 00:29:35,440 --> 00:29:39,360 Speaker 1: launch of a so called strategic review, which man Is 549 00:29:39,760 --> 00:29:45,520 Speaker 1: presciently called a way for people to strategically evaluate their careers. Yeah, 550 00:29:45,680 --> 00:29:49,240 Speaker 1: some more strategic evaluation going on this morning. Apparently we 551 00:29:49,320 --> 00:29:52,600 Speaker 1: also got earnings this morning from Eli Lilly and they 552 00:29:52,960 --> 00:29:56,640 Speaker 1: came in a little disappointing, Yes, a little disappointing, and 553 00:29:56,840 --> 00:29:59,400 Speaker 1: ahead of the bell, the stock is down at six percent. 554 00:29:59,480 --> 00:30:01,560 Speaker 1: This is a far smceutical company with a market cap 555 00:30:01,680 --> 00:30:04,880 Speaker 1: of almost three hundred billion dollars. It was a miss 556 00:30:04,960 --> 00:30:08,880 Speaker 1: on revenue for the second quarter, but importantly, the guidance 557 00:30:08,960 --> 00:30:13,320 Speaker 1: for full year adjusted ets was revised downward to arrange 558 00:30:13,720 --> 00:30:17,240 Speaker 1: of seven dollars ninety cents to eight dollars and five 559 00:30:17,320 --> 00:30:20,120 Speaker 1: cents from a previous range that was around eight dollars 560 00:30:20,160 --> 00:30:24,320 Speaker 1: and fifteen cents to cents. And just quickly, Laura, what 561 00:30:24,400 --> 00:30:27,880 Speaker 1: other stocks you're watching this morning. I'm looking at Lucid, 562 00:30:28,000 --> 00:30:31,920 Speaker 1: the electric vehicle maker. It's down twelve percent ahead of 563 00:30:32,040 --> 00:30:38,000 Speaker 1: the open. Now. Lucid lowered their production target to six 564 00:30:38,120 --> 00:30:41,360 Speaker 1: to seven thousand cars, down from a previous goal of 565 00:30:41,400 --> 00:30:44,120 Speaker 1: between twelve and fourteen thousand cars. This is all because 566 00:30:44,200 --> 00:30:47,320 Speaker 1: of supply chain congestion that can't get the parts they need. 567 00:30:47,560 --> 00:30:50,360 Speaker 1: But at least it's not a demand issue, all right, 568 00:30:50,360 --> 00:30:52,600 Speaker 1: Bloomberg's law right with us this morning ahead of the 569 00:30:52,680 --> 00:30:55,800 Speaker 1: pre market. We also got earnings just crossing the Bloomberg 570 00:30:55,920 --> 00:30:59,600 Speaker 1: terminal from Ali Baba, a big beat on first quarter revenue. 571 00:31:00,040 --> 00:31:03,320 Speaker 1: Ali Baba A d r s are higher by seven 572 00:31:03,560 --> 00:31:07,520 Speaker 1: percent on that earning speed. Right now, SMP futures are 573 00:31:07,640 --> 00:31:11,920 Speaker 1: up sixteen points, Dow futures up ninety four, NASTACK futures 574 00:31:12,000 --> 00:31:15,080 Speaker 1: higher by eighty three points ten, Your treasuries down seven 575 00:31:15,160 --> 00:31:19,600 Speaker 1: thirty seconds, the yield two point seven. This is Bloomberg, 576 00:31:22,360 --> 00:31:24,240 Speaker 1: Bloomberg eleven three oh, whether we're going up to your 577 00:31:24,320 --> 00:31:28,560 Speaker 1: nine five on a hot and humid Thursday. Heat advisory 578 00:31:28,680 --> 00:31:31,640 Speaker 1: kicks in eleven this morning, last till eight tomorrow night. 579 00:31:32,320 --> 00:31:49,640 Speaker 1: Right now seventy eight in Central Park. Yeah, and I'm 580 00:31:49,760 --> 00:31:53,720 Speaker 1: Karen Moscow. And futures this morning are on the rise 581 00:31:53,840 --> 00:31:57,320 Speaker 1: this morning, with SNP futures up about thirteen points, to 582 00:31:57,360 --> 00:32:00,520 Speaker 1: DAL futures up sixty seven, and nasday future is of 583 00:32:00,680 --> 00:32:03,760 Speaker 1: sixty eight, and we check the markets every fifteen minutes 584 00:32:03,800 --> 00:32:06,680 Speaker 1: throughout the trading day. On Bloomberg. The decks in Germany 585 00:32:06,880 --> 00:32:09,440 Speaker 1: is of one and a quarter percent this morning ten. 586 00:32:09,520 --> 00:32:12,000 Speaker 1: Your treasury down seven thirty seconds, you know, two point 587 00:32:12,080 --> 00:32:14,360 Speaker 1: seven three percent. They yield on the two year three 588 00:32:14,400 --> 00:32:17,680 Speaker 1: point one zero percent. Nimex screwed oil is of eight 589 00:32:17,680 --> 00:32:19,840 Speaker 1: tens of a percent or seventy nine cents and ninety 590 00:32:19,880 --> 00:32:22,720 Speaker 1: one dollar forty five cents in barrel. Comex gold up 591 00:32:22,760 --> 00:32:25,160 Speaker 1: one point two percent or twenty one dollar sixty cents 592 00:32:25,240 --> 00:32:29,600 Speaker 1: is seventeen announced. The euro one point one five against 593 00:32:29,640 --> 00:32:32,080 Speaker 1: the dollar, British found one point to one nine three 594 00:32:32,560 --> 00:32:35,480 Speaker 1: and the end this morning four point one seven. Watching 595 00:32:35,520 --> 00:32:38,840 Speaker 1: bitcoin it's down two point one percent. It's a two 596 00:32:39,280 --> 00:32:42,560 Speaker 1: eight hundred fifty dollars. That's a Bloomberg business flash. Now 597 00:32:42,600 --> 00:32:44,880 Speaker 1: here's Micho Barr with more on what's going on around 598 00:32:44,880 --> 00:32:47,120 Speaker 1: the world. Michael Hearin, thank you very much. How speaking, 599 00:32:47,200 --> 00:32:50,160 Speaker 1: Nancy Pelosi met with the South Korean counterparts and sold 600 00:32:50,200 --> 00:32:53,600 Speaker 1: to reissure strong alliance between the two countries. It comes 601 00:32:53,640 --> 00:32:57,640 Speaker 1: as China conducted military exercises around Taiwan in response to 602 00:32:57,720 --> 00:33:01,360 Speaker 1: Pelosi's visit flags are at half staff at the US 603 00:33:01,440 --> 00:33:04,760 Speaker 1: Capitol after an Indiana congresswoman was killed in a car crash. 604 00:33:05,120 --> 00:33:08,960 Speaker 1: Republican Jackie Larski, who was fifty eight, died in the 605 00:33:09,040 --> 00:33:12,320 Speaker 1: accident in northern Indiana along with two of her staffers. 606 00:33:12,840 --> 00:33:15,680 Speaker 1: In baseball, the Mariners beat the Yankees seven three, the 607 00:33:15,760 --> 00:33:18,800 Speaker 1: Mets beat the Nationals nine five, The Red Sox and 608 00:33:19,200 --> 00:33:23,920 Speaker 1: Giants lost the Orioles and A's one Global News twenty 609 00:33:23,960 --> 00:33:26,840 Speaker 1: four hours a day on air and on Bloomberg Quicktake, 610 00:33:27,080 --> 00:33:30,000 Speaker 1: powered by more than twenty seven hundred journalist and analysts 611 00:33:30,080 --> 00:33:32,840 Speaker 1: more than a hundred twenty countries. Michael Barr and this 612 00:33:33,400 --> 00:33:37,280 Speaker 1: is Bloomberg. Karen, all right, thanks Michael at a Sight 613 00:33:37,360 --> 00:33:39,600 Speaker 1: on Wall Street and we turned to news and science 614 00:33:39,640 --> 00:33:42,000 Speaker 1: and technology now with the Bloomberg and j I T. 615 00:33:42,360 --> 00:33:45,160 Speaker 1: STEM Report. It is brought to you by New Jersey 616 00:33:45,280 --> 00:33:49,400 Speaker 1: Institute of Technology, ranked top fifty national public university by 617 00:33:49,520 --> 00:33:52,320 Speaker 1: US News and World Report, and at top ten in 618 00:33:52,360 --> 00:33:55,400 Speaker 1: the nation for engineering by Money dot Com. Learn more 619 00:33:55,440 --> 00:33:57,640 Speaker 1: at n j I T dot E d U And 620 00:33:57,720 --> 00:34:00,920 Speaker 1: here's just making news in science, technology, engineering, and math. 621 00:34:01,280 --> 00:34:04,400 Speaker 1: Bloomberg News has learned that Apple expects to delay it's 622 00:34:04,480 --> 00:34:08,080 Speaker 1: next major iPad software update by about a month. For 623 00:34:08,160 --> 00:34:11,000 Speaker 1: the last several years, the tech giant has released major 624 00:34:11,200 --> 00:34:15,080 Speaker 1: iPad and iPhone software updates at the same time in September. 625 00:34:15,640 --> 00:34:18,480 Speaker 1: This time around, sources say Apple plans to put out 626 00:34:18,520 --> 00:34:22,640 Speaker 1: its iOS sixteen during the usual period, but not launch 627 00:34:22,800 --> 00:34:26,200 Speaker 1: iPad O S sixteen until October. The delay of the 628 00:34:26,280 --> 00:34:29,000 Speaker 1: software is due at least in part to an ambitious 629 00:34:29,000 --> 00:34:34,000 Speaker 1: effort to overhaul the iPads multitasking capabilities. A Sunday conductor 630 00:34:34,080 --> 00:34:36,920 Speaker 1: shortage that has slammed the auto industry dented production at 631 00:34:37,000 --> 00:34:41,000 Speaker 1: Japan's top automaker, Toyota's profit fell nearly eighteen percent in 632 00:34:41,040 --> 00:34:44,360 Speaker 1: the April June quarter from the year before. Toyota officials 633 00:34:44,400 --> 00:34:47,080 Speaker 1: apologized to customers who have been waiting for their cars 634 00:34:47,160 --> 00:34:50,000 Speaker 1: after putting in their orders. Some have waited so long 635 00:34:50,200 --> 00:34:53,440 Speaker 1: the vehicle went through a model change in the meantime, 636 00:34:54,000 --> 00:34:57,320 Speaker 1: and the Transportation Department is proposing to require airlines to 637 00:34:57,400 --> 00:35:00,439 Speaker 1: offer passengers a refund if their flight schedule is changed 638 00:35:00,440 --> 00:35:03,880 Speaker 1: significantly or the airline makes major changes to their itinerary. 639 00:35:04,239 --> 00:35:07,040 Speaker 1: The proposed rule would require airlines to give a refund 640 00:35:07,040 --> 00:35:09,920 Speaker 1: sit their departure or arrival time changes by three hours 641 00:35:10,080 --> 00:35:12,600 Speaker 1: or more for a domestic flight or at least six 642 00:35:12,680 --> 00:35:15,600 Speaker 1: hours for an international one, and as a Bloomberg and 643 00:35:15,760 --> 00:35:18,759 Speaker 1: j I t Stem report. Nathan Okay, Karen, thank you. 644 00:35:18,920 --> 00:35:21,640 Speaker 1: We're live from the Bloomberg Interactive Broker Studios or at 645 00:35:21,680 --> 00:35:23,880 Speaker 1: six fifty on Wall Street. Good morning on Nathan Hagar. 646 00:35:24,200 --> 00:35:26,320 Speaker 1: Time now to check what's going on in DC. Some 647 00:35:26,440 --> 00:35:28,520 Speaker 1: of the top stories in our nation's capital include the 648 00:35:28,560 --> 00:35:31,680 Speaker 1: White House lobbying Democrats against a bid too deep en 649 00:35:31,760 --> 00:35:35,880 Speaker 1: ties to Taiwan as China begins live fire drills around 650 00:35:35,880 --> 00:35:40,120 Speaker 1: the island, the Senate ratifying NATO membership for Finland and Sweden, 651 00:35:40,560 --> 00:35:44,040 Speaker 1: Senator Cinema looking for tax changes in the Democrats Tax 652 00:35:44,120 --> 00:35:48,040 Speaker 1: and Energy bill. And Washington Morning, a congresswoman from Indiana 653 00:35:48,160 --> 00:35:50,520 Speaker 1: killed in a car crash. Let's bring Breck Bloomberg Government 654 00:35:50,560 --> 00:35:54,280 Speaker 1: Congressional reporter Jack Fitzpatrick for more on all these stories. 655 00:35:54,520 --> 00:35:57,960 Speaker 1: As we continue to monitor the tensions in the Taiwan 656 00:35:58,120 --> 00:36:01,360 Speaker 1: straight and around Taiwan more generally, Jack, what is the 657 00:36:01,440 --> 00:36:05,960 Speaker 1: reaction in Washington as Speaker Pelosi's Asian trip continues and 658 00:36:06,480 --> 00:36:09,600 Speaker 1: China keeps up these live fire drills. Well, there's a 659 00:36:09,719 --> 00:36:13,560 Speaker 1: bit of a divide in Washington. You know, they generally 660 00:36:14,200 --> 00:36:17,680 Speaker 1: UH somewhat of a hawkish stance on China tends to 661 00:36:17,719 --> 00:36:21,760 Speaker 1: get bipartisan support lately, but there has been a divide 662 00:36:21,840 --> 00:36:26,279 Speaker 1: between Pelosi and the Biden administration. President Biden mentioning that 663 00:36:26,400 --> 00:36:29,080 Speaker 1: the military had had concerns about this trip in the 664 00:36:29,160 --> 00:36:33,880 Speaker 1: first place. Uh, they have. The White House has lobbied against, 665 00:36:34,480 --> 00:36:37,960 Speaker 1: at least at this point, a bill that would formalize, uh, 666 00:36:38,040 --> 00:36:43,160 Speaker 1: the US's relationship with Taiwan. Taiwan in formalized Taiwan standing 667 00:36:43,200 --> 00:36:46,480 Speaker 1: as a non NATO ally. That wouldn't really change the 668 00:36:46,560 --> 00:36:49,160 Speaker 1: relationship between these two countries. But there seems to be 669 00:36:49,760 --> 00:36:52,960 Speaker 1: a bit of a timing issue and a concern about 670 00:36:53,239 --> 00:36:57,240 Speaker 1: how much the US's actions are rankling the Chinese government. 671 00:36:57,640 --> 00:36:59,799 Speaker 1: H So, the the White House has is pushed back 672 00:37:00,040 --> 00:37:02,800 Speaker 1: to bill UH that has been delayed. They're supposed to 673 00:37:02,800 --> 00:37:05,640 Speaker 1: be a committee vote yesterday. UH So it's clearly there's 674 00:37:05,719 --> 00:37:08,879 Speaker 1: some concern about exactly how the Chinese government is going 675 00:37:08,960 --> 00:37:12,719 Speaker 1: to react to UH Speaker Pelosi's trip, and and and 676 00:37:12,800 --> 00:37:16,560 Speaker 1: the White House in particular wants to move carefully in 677 00:37:16,760 --> 00:37:21,239 Speaker 1: terms of not prodding them more than is necessary right now, now, 678 00:37:21,320 --> 00:37:23,839 Speaker 1: we've heard from the Chinese Foreign Ministry going so far 679 00:37:23,920 --> 00:37:26,560 Speaker 1: as to say Speaker Pelosi's trip was a violation of 680 00:37:26,640 --> 00:37:29,239 Speaker 1: the One China policy. But if we do see this 681 00:37:29,600 --> 00:37:32,560 Speaker 1: bill deepening Taiwan ties move forward, Jack, what did it 682 00:37:32,680 --> 00:37:37,440 Speaker 1: really be a change in the U S stance towards Taiwan. No, 683 00:37:37,680 --> 00:37:41,439 Speaker 1: that's the thing. This would formalize essentially what has been 684 00:37:41,880 --> 00:37:46,560 Speaker 1: the US relationship with Taiwan for decades. But that gets 685 00:37:46,640 --> 00:37:51,239 Speaker 1: at the difficult position that Democrats, especially right now, find 686 00:37:51,320 --> 00:37:54,520 Speaker 1: themselves in, with Speaker Pelosi wanting to take a stand, 687 00:37:54,560 --> 00:37:59,200 Speaker 1: make a statement visit Taiwan, the Biden administration having concerns 688 00:37:59,239 --> 00:38:03,680 Speaker 1: about that, and then questioning, uh, what kind of message 689 00:38:03,760 --> 00:38:06,200 Speaker 1: they sent to the Chinese government. So it doesn't seem 690 00:38:06,239 --> 00:38:09,520 Speaker 1: to necessarily be entirely focused on the substance of the 691 00:38:09,600 --> 00:38:13,160 Speaker 1: bill as much as the public message and the signal 692 00:38:13,280 --> 00:38:17,080 Speaker 1: it sends to China. At this time, in the context 693 00:38:17,239 --> 00:38:20,080 Speaker 1: of Pelosi's visit, it looks like a message is being 694 00:38:20,200 --> 00:38:25,040 Speaker 1: sent now to Russia. Jack. With the Senate overwhelmingly ratifying 695 00:38:25,280 --> 00:38:30,200 Speaker 1: Finland and Sweden joining NATO, Yes, an overwhelming vote really 696 00:38:30,280 --> 00:38:35,280 Speaker 1: yesterday to one. Uh. That makes the US the twenty 697 00:38:35,480 --> 00:38:38,760 Speaker 1: third country to take a vote to ratify that step, 698 00:38:39,200 --> 00:38:43,359 Speaker 1: leaving seven left. So they're moving forward on that uh 699 00:38:44,440 --> 00:38:47,279 Speaker 1: to one again. Josh Holly, the Republican from Missouri, was 700 00:38:47,280 --> 00:38:50,600 Speaker 1: the only one against it. Ran Paul voted present. UH. 701 00:38:50,719 --> 00:38:54,920 Speaker 1: So a really overwhelming vote yesterday and yes, very much 702 00:38:55,000 --> 00:38:58,640 Speaker 1: in the context of sending a message message to Russia. 703 00:38:59,160 --> 00:39:02,799 Speaker 1: Uh And I think there's some maybe motivation to show 704 00:39:02,960 --> 00:39:06,040 Speaker 1: that this is happening because of Russia and Russia's concern 705 00:39:06,120 --> 00:39:10,319 Speaker 1: about NATO, or at least they're alleged concern about NATO 706 00:39:10,400 --> 00:39:14,560 Speaker 1: and that being an issue involved in their invasion of Ukraine. 707 00:39:16,000 --> 00:39:19,840 Speaker 1: I think you see many Americans, Republicans and Democrats in 708 00:39:19,960 --> 00:39:24,680 Speaker 1: Congress wanting to push back and say that Russia's actions 709 00:39:24,760 --> 00:39:28,560 Speaker 1: have actually led themselves to an expansion of NATO and 710 00:39:28,800 --> 00:39:32,280 Speaker 1: nothing else. A rare moment of near unanimity in the Senate. 711 00:39:32,360 --> 00:39:35,400 Speaker 1: We don't see that too often, and we're not seeing 712 00:39:35,480 --> 00:39:39,440 Speaker 1: it really when it comes to this Democratic tax and 713 00:39:39,520 --> 00:39:42,600 Speaker 1: spending bill, the Inflation Reduction Act. We're getting a little 714 00:39:42,640 --> 00:39:46,600 Speaker 1: bit better sense of where Senator Cinema may come down 715 00:39:46,640 --> 00:39:50,239 Speaker 1: on it. Yeah, We've known she had concerns about this 716 00:39:50,480 --> 00:39:55,640 Speaker 1: measure to close or narrow the carried interest loophole that 717 00:39:55,800 --> 00:40:01,560 Speaker 1: would effectively raise taxes on on fund managers that have 718 00:40:01,719 --> 00:40:05,200 Speaker 1: been paying them as carried interest rather than income. We 719 00:40:05,280 --> 00:40:07,520 Speaker 1: knew that was going to be an issue. It doesn't 720 00:40:07,640 --> 00:40:11,360 Speaker 1: raise a massive amount of revenue in the context of 721 00:40:11,480 --> 00:40:14,000 Speaker 1: this bill. Uh. If it were had, if it had 722 00:40:14,040 --> 00:40:16,839 Speaker 1: to be dropped, it wouldn't necessarily be the breaking points. 723 00:40:16,880 --> 00:40:19,879 Speaker 1: So Cinema is pushing back on that. She evidently does 724 00:40:20,000 --> 00:40:23,680 Speaker 1: have some concerns about the bigger revenue raiser in this 725 00:40:23,960 --> 00:40:29,920 Speaker 1: the percent corporate minimum rate. Uh. Not necessarily the fundamental 726 00:40:30,080 --> 00:40:33,960 Speaker 1: idea of it, but there's an ongoing conversation about exactly 727 00:40:34,000 --> 00:40:36,719 Speaker 1: who it applies to if there are exceptions to that 728 00:40:36,960 --> 00:40:40,319 Speaker 1: depending on some tax right offs. Uh. So Cinema has 729 00:40:40,400 --> 00:40:44,240 Speaker 1: become the big X factor here with Senator Joe Mansion 730 00:40:44,400 --> 00:40:48,280 Speaker 1: obviously announcing this deal. Uh. And yes, speaking of unity, 731 00:40:48,400 --> 00:40:51,480 Speaker 1: this is something where there's not going to be Republican support. 732 00:40:51,560 --> 00:40:53,759 Speaker 1: So in order to get this through the process, they're 733 00:40:53,760 --> 00:40:56,200 Speaker 1: taking this bill through that needs a simple majority. They 734 00:40:56,239 --> 00:40:59,520 Speaker 1: need fifty out of fifty Senate Democrats to all uh. 735 00:40:59,640 --> 00:41:03,720 Speaker 1: Circle the wagons and essentially anybody could have veto power 736 00:41:03,760 --> 00:41:06,359 Speaker 1: on the Democratic side. And right now the the eyes 737 00:41:06,440 --> 00:41:09,360 Speaker 1: of all turned two. Senator Cinema and finally Jack, in 738 00:41:09,400 --> 00:41:12,239 Speaker 1: our last minute, here's some sad news suddenly with the 739 00:41:12,520 --> 00:41:16,600 Speaker 1: death of a Congressman from Indiana. Yes, Jackie will will 740 00:41:16,719 --> 00:41:19,799 Speaker 1: Or Sky from Indiana, the Republican member of the House 741 00:41:20,239 --> 00:41:22,920 Speaker 1: died in a car crash, as well as two of 742 00:41:22,960 --> 00:41:25,880 Speaker 1: her staffers, Emma Thompson and Zachary Potts, who are on 743 00:41:25,960 --> 00:41:29,920 Speaker 1: the road with her. The sheriff's office there said that 744 00:41:30,080 --> 00:41:35,080 Speaker 1: another car on the highway went over the middle line 745 00:41:35,160 --> 00:41:40,000 Speaker 1: and went directly into them. Very sad, very sudden. A 746 00:41:40,120 --> 00:41:44,200 Speaker 1: lot of feedback from members of the House on on 747 00:41:44,400 --> 00:41:47,399 Speaker 1: both sides of the aisle talking about a Congresswoman will 748 00:41:47,520 --> 00:41:49,480 Speaker 1: Or Sky being someone they really liked and liked to 749 00:41:49,520 --> 00:41:52,840 Speaker 1: work with. So a bit of a shocking moment yesterday 750 00:41:52,920 --> 00:41:57,160 Speaker 1: when that happened. Alright, Bloomberg Government reporter Jack Fitzpatrick, as always, 751 00:41:57,239 --> 00:41:59,440 Speaker 1: thank you Jack for the update from the nation's capital. 752 00:41:59,760 --> 00:42:02,200 Speaker 1: Re more about all these stories of Bloomberg dot com 753 00:42:02,400 --> 00:42:04,560 Speaker 1: or on the Bloomberg terminal, and a reminder you can 754 00:42:04,600 --> 00:42:07,960 Speaker 1: follow all the latest on Bloomberg Radio in Washington, Bloomberg 755 00:42:09,280 --> 00:42:12,800 Speaker 1: and one oh five point seven FM, HD two SMP 756 00:42:13,000 --> 00:42:16,200 Speaker 1: futures gaining ground this morning, now a ten points staff 757 00:42:16,239 --> 00:42:19,480 Speaker 1: futures of fifty three. Nasdaq futures leading the games now 758 00:42:19,600 --> 00:42:22,120 Speaker 1: up sixty four points for a gain of a half percent, 759 00:42:22,600 --> 00:42:26,200 Speaker 1: following the tech led rally yesterday. Ten Your treasuries down 760 00:42:26,280 --> 00:42:29,120 Speaker 1: seven thirty seconds, the yield two point seven three percent 761 00:42:29,520 --> 00:42:32,760 Speaker 1: yield on the two year three point one one percent. 762 00:42:33,360 --> 00:42:36,640 Speaker 1: Attention turns to London now, with the Bank of England 763 00:42:36,719 --> 00:42:40,040 Speaker 1: due to make a decision in two minutes, we'll have 764 00:42:40,200 --> 00:42:43,000 Speaker 1: it for you in Bloomberg surveillance. Next to Tom Keene, 765 00:42:43,280 --> 00:42:47,520 Speaker 1: Jonathan Faroh, and Lisa abramowits for Karen Moscow. I'm Nathan Hagar. 766 00:42:48,400 --> 00:42:49,320 Speaker 1: This is Bloomberg