1 00:00:01,880 --> 00:00:05,280 Speaker 1: Markets, headlines and breaking news twenty four hours a day 2 00:00:05,400 --> 00:00:08,400 Speaker 1: at Bloomberg dot Com, the Bloomberg Business Out, and at 3 00:00:08,400 --> 00:00:17,720 Speaker 1: Bloomberg Quick Take. This is a Bloomberg business Flash. I'm 4 00:00:17,800 --> 00:00:21,079 Speaker 1: Nathan Hager, watching futures move higher ahead of July c 5 00:00:21,360 --> 00:00:25,320 Speaker 1: p I and inflation print that will shape investor expectations 6 00:00:25,360 --> 00:00:28,800 Speaker 1: on the direction of Federal Reserve interest rate hikes. We 7 00:00:28,880 --> 00:00:31,160 Speaker 1: checked the markets every fifteen minutes during the trading day. 8 00:00:31,160 --> 00:00:34,080 Speaker 1: On Bloomberg SMP futures are up ten points, STOUT futures 9 00:00:34,120 --> 00:00:37,160 Speaker 1: up fifty nine. NASDAC futures are higher by forty three 10 00:00:37,159 --> 00:00:40,080 Speaker 1: points ten. Your treasuries up two thirty seconds. The yield 11 00:00:40,080 --> 00:00:42,279 Speaker 1: two point seven six percent yield on the two year 12 00:00:42,600 --> 00:00:45,519 Speaker 1: three point two three percent. Nime x Scrooge down eight 13 00:00:45,520 --> 00:00:48,080 Speaker 1: tenths per center seventy three cents eighty nine dollar seventy 14 00:00:48,080 --> 00:00:50,520 Speaker 1: seven cents. A Barrel comic called his down a tenth 15 00:00:50,520 --> 00:00:52,720 Speaker 1: per center to dollars twenty cents. At eighteen ten ten 16 00:00:52,720 --> 00:00:55,560 Speaker 1: announced the euro one point zero two two three against 17 00:00:55,560 --> 00:00:57,880 Speaker 1: the dollar, British pound one point two zero nine zero. 18 00:00:58,200 --> 00:01:00,440 Speaker 1: The n is at one thirty four point nine two. 19 00:01:00,560 --> 00:01:03,040 Speaker 1: That's a Bloomberg Business Flash. Now here's Michael Barr with 20 00:01:03,120 --> 00:01:05,759 Speaker 1: more on what's going on around the world. Michael Nathan, 21 00:01:05,760 --> 00:01:08,319 Speaker 1: thank you very much. Former President Donald Trump will be 22 00:01:08,440 --> 00:01:11,320 Speaker 1: questioned under oath today and the New York Attorney General's 23 00:01:11,360 --> 00:01:15,520 Speaker 1: long running civil investigation into his real estate dealings. Monday, 24 00:01:15,760 --> 00:01:18,840 Speaker 1: FBI agents searched his Florida state as part of an 25 00:01:18,920 --> 00:01:22,800 Speaker 1: unrelated federal probe. The FDA signed off on the Biden 26 00:01:22,800 --> 00:01:25,880 Speaker 1: administration's plan to stretch out the limited supply of monkey 27 00:01:25,959 --> 00:01:29,319 Speaker 1: pox vaccine. The White Owl said it would make the 28 00:01:29,440 --> 00:01:33,240 Speaker 1: currently four hundred forty thousand available doses into more than 29 00:01:33,319 --> 00:01:37,000 Speaker 1: two million smaller doses. In baseball, the Yankees lost to 30 00:01:37,040 --> 00:01:40,399 Speaker 1: the Mariners one zip thirteen innings, The Mets beat the 31 00:01:40,440 --> 00:01:44,240 Speaker 1: Reds six two the Red Sox Giants, and A's lost 32 00:01:44,520 --> 00:01:48,200 Speaker 1: the Nationals and Orioles. One Global news twenty four hours 33 00:01:48,200 --> 00:01:51,480 Speaker 1: a day on air and on Bloomberg Quicktake, powered by 34 00:01:51,480 --> 00:01:54,040 Speaker 1: more than twenty seven hundred journalists analysts more than a 35 00:01:54,080 --> 00:01:57,279 Speaker 1: hundred twenty countries. Michael Barr, this is Bloomberg, John, Michael, 36 00:01:57,280 --> 00:01:59,880 Speaker 1: thank you. It is five forty nine on Wall Street 37 00:02:00,080 --> 00:02:03,320 Speaker 1: and we are live from the Bloomberg Interact. A Broker Studios. 38 00:02:03,920 --> 00:02:07,760 Speaker 1: The US Justice Department preparing to sue Google as soon 39 00:02:07,840 --> 00:02:11,440 Speaker 1: as next month. Let's take a deeper die into this story. 40 00:02:11,480 --> 00:02:14,840 Speaker 1: This morning, were joined live by Alex Webb. The Bloomberg 41 00:02:14,919 --> 00:02:18,880 Speaker 1: Quicktake Tech corresponded, joining us from our London bureau. This 42 00:02:18,919 --> 00:02:22,720 Speaker 1: is an anti trust case and how far back does 43 00:02:22,720 --> 00:02:25,680 Speaker 1: this go? What allegedly did Google do or is doing? 44 00:02:26,560 --> 00:02:32,079 Speaker 1: This really focuses on the the control that Google has 45 00:02:32,200 --> 00:02:35,880 Speaker 1: over multiple stages of the I'm really sorry, I have 46 00:02:35,919 --> 00:02:37,920 Speaker 1: some other audio playing in my ear and it's very 47 00:02:37,960 --> 00:02:40,359 Speaker 1: very hard to hear anything. Um, I'm sorry just to 48 00:02:40,400 --> 00:02:43,240 Speaker 1: say that on UM, I say, this really focuses on 49 00:02:43,280 --> 00:02:46,560 Speaker 1: Google control of three points in the advatasing ecosystem. They 50 00:02:46,560 --> 00:02:49,000 Speaker 1: have the demand side platform, the buy side platform, the 51 00:02:49,000 --> 00:02:51,920 Speaker 1: south side platform, should say, and the AD exchange in 52 00:02:51,960 --> 00:02:56,080 Speaker 1: the middle of that. And the AD exchange has the ability, 53 00:02:56,200 --> 00:02:58,760 Speaker 1: given the control all three of those parts of the 54 00:02:58,840 --> 00:03:04,239 Speaker 1: systems to ultimately determined prices in a way that is 55 00:03:04,240 --> 00:03:06,519 Speaker 1: favorable to Google. Now we don't know whether Google does 56 00:03:06,560 --> 00:03:09,440 Speaker 1: this but ultimately, but other regulators have said they don't 57 00:03:09,440 --> 00:03:11,840 Speaker 1: have visibility into where the Google does this. That in 58 00:03:11,919 --> 00:03:14,320 Speaker 1: and of itself is a problem. The lack of visibility. 59 00:03:14,440 --> 00:03:17,480 Speaker 1: So the way I'm picking that and getting to grips 60 00:03:17,480 --> 00:03:19,680 Speaker 1: with the matter, there is the opportunity to hold Google 61 00:03:19,720 --> 00:03:22,919 Speaker 1: more accountable. Okay, the buying and selling of ads online? 62 00:03:23,200 --> 00:03:26,519 Speaker 1: How much? How much is this worth? What kind of 63 00:03:26,560 --> 00:03:29,239 Speaker 1: money we're talking to hear? This business for Google is 64 00:03:29,240 --> 00:03:32,520 Speaker 1: about a twenty two billion dollar business that is clearly 65 00:03:32,680 --> 00:03:36,000 Speaker 1: not the lion's share of its advertising revenue, which predominantly 66 00:03:36,000 --> 00:03:39,360 Speaker 1: comes from search, but it does control a lot of 67 00:03:39,360 --> 00:03:43,520 Speaker 1: the advertising that happens on the web um outside of 68 00:03:43,520 --> 00:03:47,080 Speaker 1: Google's platforms. So if you go to a newspaper, website, 69 00:03:47,280 --> 00:03:50,600 Speaker 1: or another form of media, you will often find that 70 00:03:50,640 --> 00:03:53,880 Speaker 1: the adverts that are served to you are actually served 71 00:03:53,880 --> 00:03:57,560 Speaker 1: to you by Google. Um it means that Google has 72 00:03:58,160 --> 00:04:01,880 Speaker 1: vast control over the advertising ecosystem around the world Wide Web. 73 00:04:02,360 --> 00:04:06,840 Speaker 1: And advertising is what funds vast tracts of the world 74 00:04:06,840 --> 00:04:09,680 Speaker 1: wide Web. So even if it isn't the lion share 75 00:04:09,720 --> 00:04:13,800 Speaker 1: of Google business, it has vast implications for advertising globally. 76 00:04:13,840 --> 00:04:15,560 Speaker 1: And we should say that a twenty two billion dollar 77 00:04:15,600 --> 00:04:19,680 Speaker 1: business is still bigger than the annual revenue of w 78 00:04:19,760 --> 00:04:22,520 Speaker 1: p P, which is the world's biggest advertising agency. It's 79 00:04:22,560 --> 00:04:25,039 Speaker 1: not chump change. UM. When I turned my computer on, 80 00:04:25,240 --> 00:04:29,159 Speaker 1: Google comes up as the default search engine. Is that 81 00:04:29,400 --> 00:04:32,360 Speaker 1: something separate because I know there's legal action with respect 82 00:04:32,400 --> 00:04:34,440 Speaker 1: to that. How does that figure into this of it all? 83 00:04:34,680 --> 00:04:37,719 Speaker 1: So that that is a separate issue. There is also 84 00:04:38,320 --> 00:04:40,480 Speaker 1: in Europe there has been some attention on the bundling 85 00:04:40,800 --> 00:04:43,760 Speaker 1: that has happened and that Google used to say. You know, 86 00:04:43,839 --> 00:04:46,000 Speaker 1: if for example, you were a newspaper website and you 87 00:04:46,040 --> 00:04:49,120 Speaker 1: wanted to have a function which let people search historical stories, 88 00:04:49,160 --> 00:04:52,240 Speaker 1: well Google offered the opportunity to use its search engine 89 00:04:52,279 --> 00:04:54,560 Speaker 1: to search the stories on your website. But what it 90 00:04:54,760 --> 00:04:56,320 Speaker 1: do is it would say, well, if you're going to 91 00:04:56,400 --> 00:04:58,600 Speaker 1: use that, you also have to use our ads system 92 00:04:58,680 --> 00:05:02,880 Speaker 1: that was deemed anti petitive or considered anti competitive by 93 00:05:03,000 --> 00:05:07,800 Speaker 1: authorities here. And so the approach the Google takes to 94 00:05:08,080 --> 00:05:11,640 Speaker 1: bundling these things to not separating in this instance, the 95 00:05:12,640 --> 00:05:17,280 Speaker 1: demand side and the cell side of the advertising um 96 00:05:17,440 --> 00:05:20,320 Speaker 1: ecosystem is where they get in trouble. And you know, 97 00:05:20,360 --> 00:05:23,719 Speaker 1: if you think about financial services, you know by side 98 00:05:23,720 --> 00:05:26,240 Speaker 1: and sell side in a bank have to be have 99 00:05:26,360 --> 00:05:29,760 Speaker 1: to have strict Chinese walls between them and visibility for 100 00:05:29,920 --> 00:05:32,839 Speaker 1: regulators between the two, So there is a comparability there. 101 00:05:33,200 --> 00:05:35,800 Speaker 1: I love the factle when under pressure big tech company 102 00:05:35,839 --> 00:05:38,280 Speaker 1: will bring up small business like you know it's morm 103 00:05:38,320 --> 00:05:41,960 Speaker 1: and apple pie. What real quok about thirty seconds? What 104 00:05:42,120 --> 00:05:45,560 Speaker 1: is the Google response to others? They, of course, you know, 105 00:05:45,640 --> 00:05:48,800 Speaker 1: deny that that that there is a case here. Um 106 00:05:48,880 --> 00:05:52,000 Speaker 1: they have offered there have been just has been muted 107 00:05:52,040 --> 00:05:55,040 Speaker 1: that they talk about maybe separating some of these things internally. 108 00:05:55,320 --> 00:05:57,000 Speaker 1: The response to that that others are made is that 109 00:05:57,120 --> 00:05:59,760 Speaker 1: ultimately an internal separation doesn't solve the problem because it's 110 00:05:59,760 --> 00:06:03,240 Speaker 1: still Google. So they'll fight this tooth and now. But 111 00:06:04,360 --> 00:06:08,320 Speaker 1: it's it's setting forward movement that the authorities are cracking 112 00:06:08,360 --> 00:06:11,520 Speaker 1: down on us. Bloomberg quick to corresponded Alex feb Alex 113 00:06:11,560 --> 00:06:15,320 Speaker 1: always a pleasure. Thanks and uh we are up to 114 00:06:15,440 --> 00:06:18,720 Speaker 1: five fifty three on Wall Street, Nathan, that we are. John. 115 00:06:18,760 --> 00:06:21,120 Speaker 1: It's time now for our Bloomberg Law Report. Let's get 116 00:06:21,160 --> 00:06:24,200 Speaker 1: to the legal stories we're watching this morning. Here's Bloomberg's 117 00:06:24,240 --> 00:06:29,920 Speaker 1: Jeff Bellinger, the newest member of the Federal Trade Commission, 118 00:06:29,960 --> 00:06:32,479 Speaker 1: is looking to hire a psychologist for his staff to 119 00:06:32,520 --> 00:06:35,919 Speaker 1: focus on the impact of social media platforms on young people. 120 00:06:36,000 --> 00:06:38,760 Speaker 1: A lawsuit filed in a Montana federal court chargers that 121 00:06:38,800 --> 00:06:42,279 Speaker 1: direct TV failed to pay technicians and installers for time 122 00:06:42,360 --> 00:06:45,240 Speaker 1: spent driving company vehicles from their homes to their first 123 00:06:45,320 --> 00:06:48,520 Speaker 1: job sites and back after work. Conservation groups told a 124 00:06:48,600 --> 00:06:51,120 Speaker 1: federal court that gray wolves are at risk because the 125 00:06:51,160 --> 00:06:54,200 Speaker 1: Fish and Wildlife Service has not yet decided whether the 126 00:06:54,240 --> 00:06:58,360 Speaker 1: wolves warrant further protection under the Endangered Species Act. Bloomberg 127 00:06:58,480 --> 00:07:02,599 Speaker 1: Law everything you need, all on one legal research platform, 128 00:07:02,760 --> 00:07:07,400 Speaker 1: including guidance analysis and Bloomberg market intelligence. Find out more 129 00:07:07,440 --> 00:07:11,400 Speaker 1: at Bloomberg law dot com. Right now to another legal 130 00:07:11,440 --> 00:07:14,560 Speaker 1: story we're watching. The Justice Department is charging for current 131 00:07:14,600 --> 00:07:17,800 Speaker 1: and former Louisville police officers in connection with the fatal 132 00:07:17,800 --> 00:07:20,720 Speaker 1: shooting of Brianna Taylor during the search warrant that was 133 00:07:20,760 --> 00:07:24,720 Speaker 1: being executed in Three of those officers weren't even at 134 00:07:24,720 --> 00:07:27,120 Speaker 1: the scene of the shooting. They're accused of lying in 135 00:07:27,240 --> 00:07:29,600 Speaker 1: order to get the warrants to search Brianna Taylor's home 136 00:07:29,600 --> 00:07:32,080 Speaker 1: and trying to cover their tracks later. For more on 137 00:07:32,120 --> 00:07:34,720 Speaker 1: the case, Bloomberg June Grosso speaks with Amy Dillar, a 138 00:07:34,760 --> 00:07:37,800 Speaker 1: professor at the University of Baltimore Law School. We see 139 00:07:37,800 --> 00:07:42,000 Speaker 1: the Justice Department stepped into the George Floyd killing and 140 00:07:42,280 --> 00:07:46,000 Speaker 1: the Ahmad are Very killing. And here you have another 141 00:07:46,160 --> 00:07:49,840 Speaker 1: high profile case where her name became a rallying cry 142 00:07:50,160 --> 00:07:54,200 Speaker 1: for racial justice and activists were on the phone and 143 00:07:54,280 --> 00:07:58,360 Speaker 1: in the streets calling for arrests. Does that motivate the 144 00:07:58,440 --> 00:08:01,520 Speaker 1: Justice Department as well? What I think we can see 145 00:08:01,960 --> 00:08:07,840 Speaker 1: is a Justice Department that is operating with this approach 146 00:08:08,120 --> 00:08:13,200 Speaker 1: to review cases where state prosecutors have made choices about 147 00:08:13,320 --> 00:08:17,960 Speaker 1: how to pursue criminal charges, and to investigate and determine 148 00:08:18,080 --> 00:08:22,160 Speaker 1: whether federal charges are warranted, and taking those potential cases 149 00:08:22,200 --> 00:08:25,400 Speaker 1: before federal grand jury. So I think that we might 150 00:08:25,520 --> 00:08:29,800 Speaker 1: see that the three are a pattern of the Justice 151 00:08:29,800 --> 00:08:35,400 Speaker 1: Department's approach to investigating these cases where people have been 152 00:08:35,520 --> 00:08:38,640 Speaker 1: killed in two of those cases by police officers, and 153 00:08:39,080 --> 00:08:43,160 Speaker 1: the Justice Department may be either dissatisfied or think that 154 00:08:43,200 --> 00:08:48,280 Speaker 1: there's not been a thorough and complete investigation of those cases. 155 00:08:48,679 --> 00:08:52,800 Speaker 1: Justice has been investigating the Louisville Police Department and reviewing 156 00:08:52,880 --> 00:08:57,240 Speaker 1: complaints of the regular use of unreasonable force. But the 157 00:08:57,320 --> 00:09:01,840 Speaker 1: indictments here don't charge either of the officers who shot Taylor. 158 00:09:01,960 --> 00:09:05,240 Speaker 1: They fired a total of thirty two rounds, why aren't 159 00:09:05,280 --> 00:09:09,040 Speaker 1: they being charged? So I actually think that these indictment 160 00:09:09,320 --> 00:09:13,920 Speaker 1: are the kind of indictment that get at systemic problems 161 00:09:14,000 --> 00:09:19,160 Speaker 1: in policing. So what's been indicted here are the officers 162 00:09:19,160 --> 00:09:23,440 Speaker 1: who lied in the affidavit that they submitted to the 163 00:09:23,559 --> 00:09:27,800 Speaker 1: judge to obtain the search warrant to go into Brianna 164 00:09:27,920 --> 00:09:31,800 Speaker 1: Taylor's apartment at all. And not only the lying in 165 00:09:31,840 --> 00:09:36,760 Speaker 1: the affidavit, but subsequent to the police killing Brianna Taylor, 166 00:09:37,040 --> 00:09:41,760 Speaker 1: the Justice Department here has alledge that those officers engaged 167 00:09:41,800 --> 00:09:45,400 Speaker 1: in a sustained cover up and in a sustained effort 168 00:09:45,480 --> 00:09:49,320 Speaker 1: to obstruct justice and lied to multiple federal agencies. You know, 169 00:09:49,640 --> 00:09:54,080 Speaker 1: looking at that conduct by police officers might not be 170 00:09:54,559 --> 00:09:59,240 Speaker 1: as satisfying as the criminal law aspects of who should 171 00:09:59,240 --> 00:10:03,000 Speaker 1: be held a auntable for Brianna Taylor's death. But I 172 00:10:03,000 --> 00:10:05,319 Speaker 1: think if we push back a little, we can see 173 00:10:05,320 --> 00:10:09,680 Speaker 1: that all of these people may be responsible in part 174 00:10:09,800 --> 00:10:13,000 Speaker 1: for Brianna Taylor's death, and the officers who lied in 175 00:10:13,040 --> 00:10:16,840 Speaker 1: that f davit set into motion the chain of events 176 00:10:16,880 --> 00:10:20,720 Speaker 1: that resulted in her death. That's Amy Dillard, a professor 177 00:10:20,760 --> 00:10:23,600 Speaker 1: at the University of Baltimore Law School, speaking with Bloomberg's 178 00:10:23,640 --> 00:10:26,800 Speaker 1: June Gronzo. Catch more of that interview, plus analysis of 179 00:10:26,840 --> 00:10:29,319 Speaker 1: the latest legal news by subscribing to the Bloomberg Law 180 00:10:29,440 --> 00:10:32,880 Speaker 1: Podcast or downloading the show at Bloomberg dot com. Slash 181 00:10:32,920 --> 00:10:36,600 Speaker 1: Podcasts and attorneys can find exceptional legal research and business 182 00:10:36,640 --> 00:10:39,680 Speaker 1: development tools at Bloomberg Law dot com and on the 183 00:10:39,679 --> 00:10:43,760 Speaker 1: Bloomberg terminal at b law Go. Looking ahead to July, 184 00:10:43,880 --> 00:10:46,800 Speaker 1: c p I futures are moving higher. We have SMP 185 00:10:46,920 --> 00:10:50,240 Speaker 1: futures right now up nine points, down futures up sixty two. 186 00:10:50,720 --> 00:10:54,439 Speaker 1: Nasdaq futures are higher by forty points. The tenure Treasury 187 00:10:54,480 --> 00:10:56,560 Speaker 1: is up one thirty second, the yield two point seven 188 00:10:56,600 --> 00:10:59,360 Speaker 1: seven percent yield on the two year three point two 189 00:10:59,440 --> 00:11:02,160 Speaker 1: four per cent. Nime X screwed is down eight tenths 190 00:11:02,160 --> 00:11:04,440 Speaker 1: per cent or seventy four cents at eighty nine dollar 191 00:11:04,520 --> 00:11:06,960 Speaker 1: seventy six cents a barrel, and Bitcoin trading right now 192 00:11:07,000 --> 00:11:12,360 Speaker 1: around twenty three thousand dollars. Bloomberg Daybreak continues. This is 193 00:11:12,440 --> 00:11:20,960 Speaker 1: Bloomberg broadcasting live from the Bloomberg Interactive Broker's studio in 194 00:11:21,000 --> 00:11:24,760 Speaker 1: New York. Bloomberg loving Freedland to Washington d C, Bloomberg 195 00:11:24,840 --> 00:11:28,959 Speaker 1: nine to Boston, Bloomberg one oh six one to San Francisco, 196 00:11:29,000 --> 00:11:32,240 Speaker 1: Bloomberg No. Sixteen to the Country, Sirius XM to A 197 00:11:32,320 --> 00:11:35,480 Speaker 1: one nineteen and around the globe, the Bloomberg Business app 198 00:11:35,600 --> 00:11:45,319 Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's 199 00:11:45,360 --> 00:11:47,520 Speaker 1: five thirty on Wall Street. Good morning. I'm John Tucker. 200 00:11:47,600 --> 00:11:49,800 Speaker 1: I'm Nathan Hacker. We're about four hours away from the 201 00:11:49,840 --> 00:11:51,719 Speaker 1: open of US trading. Let's get you up to date 202 00:11:51,760 --> 00:11:53,640 Speaker 1: on the news you need to know. At this our 203 00:11:53,679 --> 00:11:57,120 Speaker 1: all eyes are on this morning's inflation report. Economists predicted 204 00:11:57,160 --> 00:12:00,679 Speaker 1: deceleration in consumer prices for July after a hotter than 205 00:12:00,720 --> 00:12:04,959 Speaker 1: expected June reading. Sylvia Jablonsky is CEO at Defiant CTFs. 206 00:12:05,280 --> 00:12:08,079 Speaker 1: Even if it surprises us to the downside, which will 207 00:12:08,120 --> 00:12:10,160 Speaker 1: be positive for equities, I think we'll get a little 208 00:12:10,200 --> 00:12:12,600 Speaker 1: rally off of something like that. It doesn't really change 209 00:12:12,679 --> 00:12:14,360 Speaker 1: the picture in the short term in terms of what 210 00:12:14,480 --> 00:12:16,960 Speaker 1: the FAT has to do to get to neutral. Sylvia 211 00:12:17,040 --> 00:12:20,000 Speaker 1: Jablonski of Defined ct F says the recent market pullback 212 00:12:20,160 --> 00:12:23,080 Speaker 1: is presenting opportunity for long term investors, and this morning 213 00:12:23,120 --> 00:12:27,120 Speaker 1: we're learning about the impact of President Biden's Inflation Reduction Act. 214 00:12:27,520 --> 00:12:29,439 Speaker 1: It's said to become law in the coming days, and 215 00:12:29,520 --> 00:12:32,680 Speaker 1: one major bank says the bill will hardly impact prices 216 00:12:32,760 --> 00:12:35,880 Speaker 1: at all. Bloomberg's Renata Young joins US Now Live with 217 00:12:35,960 --> 00:12:38,679 Speaker 1: that story. Good morning Rena, Good morning John. The Inflation 218 00:12:38,800 --> 00:12:42,319 Speaker 1: Reduction Act is estimated to reduce the federal budget deficit 219 00:12:42,440 --> 00:12:45,360 Speaker 1: by about three hundred billion dollars over the next decade, 220 00:12:45,800 --> 00:12:48,480 Speaker 1: but JP Morgan Chase economists say the law will have 221 00:12:48,600 --> 00:12:52,160 Speaker 1: almost no effect on the price growth that's currently running 222 00:12:52,200 --> 00:12:56,079 Speaker 1: at the fastest pace in four decades. The nonpartisan Congressional 223 00:12:56,120 --> 00:12:59,599 Speaker 1: Budget Office, the Committee for a Responsible Federal Budget, and 224 00:12:59,760 --> 00:13:03,400 Speaker 1: the in Warden Budget Model all agree that the legislation 225 00:13:03,520 --> 00:13:07,080 Speaker 1: will have a minimal influence on inflation. Live in New York. 226 00:13:07,120 --> 00:13:09,520 Speaker 1: I'm gonna need a young Bloomberg Daybreak. Okay, we need 227 00:13:09,600 --> 00:13:12,320 Speaker 1: to thanks. Let's talk corporate earnings now. Walt Disney has 228 00:13:12,360 --> 00:13:15,440 Speaker 1: set to release its quarterly results after the market's closed today. 229 00:13:15,480 --> 00:13:19,360 Speaker 1: Bloomberg's Jeff Bellinger has a preview. Bloomberg Intelligence says the 230 00:13:19,559 --> 00:13:23,040 Speaker 1: entertainment giant appears to be firing on almost all cylinders. 231 00:13:23,240 --> 00:13:26,559 Speaker 1: Disney Plus is doing well. The consensus is that the 232 00:13:26,600 --> 00:13:30,679 Speaker 1: streaming video service added nine point seven million subscribers during 233 00:13:30,720 --> 00:13:33,280 Speaker 1: the quarter. The loss of the streaming rights to Indian 234 00:13:33,360 --> 00:13:36,680 Speaker 1: Premier League Cricket could force Disney to cut it subscriber 235 00:13:36,760 --> 00:13:40,360 Speaker 1: targets demanded. Theme Parks has been strong that division may 236 00:13:40,440 --> 00:13:45,560 Speaker 1: report an operating profit that exceeds consensus. Jeff Bellinger, Bloomberg Debris. 237 00:13:45,600 --> 00:13:48,040 Speaker 1: All right, thanks Jeff. Earnings in the crypto space also 238 00:13:48,280 --> 00:13:53,160 Speaker 1: disappointing today. Coin Base posted a records a record second 239 00:13:53,200 --> 00:13:56,600 Speaker 1: quarter loss and lower than expected revenue. And we're learning 240 00:13:56,640 --> 00:13:59,480 Speaker 1: this morning, John about another share sale by Elon Muski. 241 00:13:59,559 --> 00:14:01,920 Speaker 1: Has On the had done another nearly seven billion dollars 242 00:14:01,960 --> 00:14:05,319 Speaker 1: in Tesla stock, according to regulatory filings. The sale comes 243 00:14:05,440 --> 00:14:08,319 Speaker 1: as must faces legal challenges in his bid to pull 244 00:14:08,360 --> 00:14:11,720 Speaker 1: out of a deal to buy Twitter. SMP futures ahead 245 00:14:11,720 --> 00:14:14,520 Speaker 1: of the CPI report up ten points, STOW futures up 246 00:14:14,559 --> 00:14:17,160 Speaker 1: sixty two Nastack futures are higher by forty four points. 247 00:14:17,440 --> 00:14:19,440 Speaker 1: The ten your treasury is up three thirty seconds. The 248 00:14:19,520 --> 00:14:21,560 Speaker 1: yield two point seven six percent yield on the two 249 00:14:21,640 --> 00:14:25,160 Speaker 1: year three point to three percent Bitcoin about twenty three 250 00:14:25,200 --> 00:14:27,840 Speaker 1: thousand dollars straight ahead your latest local headlines into check 251 00:14:27,880 --> 00:14:33,960 Speaker 1: of sports. This is Bloomberg and that brings us to 252 00:14:34,040 --> 00:14:35,920 Speaker 1: five thirty three on Wall Street. Time to bring in 253 00:14:36,000 --> 00:14:38,080 Speaker 1: Michael Barr with more on what else is going on 254 00:14:38,160 --> 00:14:40,880 Speaker 1: in New York and around the world. John, thank you 255 00:14:41,000 --> 00:14:43,760 Speaker 1: very much, Sarah. Deadly bus crash on the New Jersey 256 00:14:43,880 --> 00:14:47,080 Speaker 1: turn blank last nine. Authorities say a double decker bus 257 00:14:47,200 --> 00:14:52,000 Speaker 1: transporting passengers from New York to Philadelphia overturned near Woodbridge. 258 00:14:52,360 --> 00:14:55,760 Speaker 1: Sergeant Lawrence Peel of the State Police spoke to reporters. 259 00:14:56,160 --> 00:14:59,960 Speaker 1: We are confirming right now one fatality and five series 260 00:15:00,160 --> 00:15:03,920 Speaker 1: injuries as a result of the collision. The bus also 261 00:15:04,080 --> 00:15:07,040 Speaker 1: hit a pickup truck. Former President Donald Trump will be 262 00:15:07,160 --> 00:15:09,760 Speaker 1: questioned on their oath today and the New York Attorney 263 00:15:09,800 --> 00:15:13,760 Speaker 1: General's long running civil investigation into his dealings as a 264 00:15:13,840 --> 00:15:16,720 Speaker 1: real estate mogul. Trump confirmed in in a post on 265 00:15:16,840 --> 00:15:20,120 Speaker 1: his truth social account. The White House as President Joe 266 00:15:20,160 --> 00:15:22,520 Speaker 1: Biden and aids were not given a heads up or 267 00:15:22,640 --> 00:15:26,760 Speaker 1: briefed on the FBI raid on former President Trump's Mara 268 00:15:26,880 --> 00:15:30,320 Speaker 1: Lago estate and learned about the search from public reports. 269 00:15:30,640 --> 00:15:34,480 Speaker 1: White House Press Secretary Karine Jean Pierre. President Biden has 270 00:15:34,520 --> 00:15:37,960 Speaker 1: been unequivocal since the campaign. He believes in the rule 271 00:15:38,040 --> 00:15:41,120 Speaker 1: of law, in the independence of Justice Department of the 272 00:15:41,240 --> 00:15:46,400 Speaker 1: Justice Department Investigations spokesperson Karine Jean Pierre. Primary elections were 273 00:15:46,480 --> 00:15:49,240 Speaker 1: held in four states. Tim Michaels, who was backed by 274 00:15:49,400 --> 00:15:53,680 Speaker 1: former President Trump, won the Wisconsin GOP gubernatorial nomination with 275 00:15:53,800 --> 00:15:57,600 Speaker 1: forty of the vote over former Lieutenant Governor Rebecca Cleifish, 276 00:15:57,640 --> 00:16:01,080 Speaker 1: who was endorsed by former VP Mike Pence. Michaels thanked 277 00:16:01,160 --> 00:16:03,600 Speaker 1: his supporters late last night. Since I was a young 278 00:16:03,720 --> 00:16:06,200 Speaker 1: boy where I helped farmers bail hay and pick rocks, 279 00:16:06,520 --> 00:16:08,680 Speaker 1: I know how to do a hard day's work, and 280 00:16:08,760 --> 00:16:11,280 Speaker 1: the hard working people in Wisconsin to serve to have 281 00:16:11,400 --> 00:16:14,440 Speaker 1: a leader who understands how hard they're working, and we'll 282 00:16:14,560 --> 00:16:18,320 Speaker 1: lead by example. Tim Michaels will face Democratic Governor Tony 283 00:16:18,400 --> 00:16:21,720 Speaker 1: Evers in the general election. In Connecticut, another Trump and 284 00:16:21,800 --> 00:16:25,200 Speaker 1: Doris candidated one her go OP primary, We Are A 285 00:16:25,320 --> 00:16:27,920 Speaker 1: Levy won the U. S. Senate primary with more than 286 00:16:28,000 --> 00:16:30,280 Speaker 1: fifty percent of the vote in a three way race. 287 00:16:30,760 --> 00:16:34,520 Speaker 1: Levy will face Democratic incumbent Richard Bloomenfell, who ran unopposed 288 00:16:34,720 --> 00:16:38,320 Speaker 1: in District four Republican Jamie Stevenson beat Michael Goldstein with 289 00:16:38,440 --> 00:16:40,960 Speaker 1: more than sixty percent of the vote for a US 290 00:16:41,040 --> 00:16:44,680 Speaker 1: House seat. Stevenson will run against Democratic incumbent Jim Himes. 291 00:16:45,040 --> 00:16:47,120 Speaker 1: Global News twenty four hours a day on air and 292 00:16:47,280 --> 00:16:50,040 Speaker 1: on Bloomberg Quick Take, powered by more than twenty seven 293 00:16:50,120 --> 00:16:52,480 Speaker 1: hundred journalists and analysts more than a hundred twenty countries. 294 00:16:52,640 --> 00:16:55,000 Speaker 1: I'm Michael bar This is Bloomberg, John Michael, thank you 295 00:17:00,200 --> 00:17:04,680 Speaker 1: Wall Street. Time for the Bloombird sports update. And here's John. Thanks. 296 00:17:04,880 --> 00:17:07,320 Speaker 1: Another one nothing lost, so the Yankees after this past 297 00:17:07,359 --> 00:17:10,159 Speaker 1: Saturday in St. Louis. Last night in Seattle, Mariners won 298 00:17:10,280 --> 00:17:13,040 Speaker 1: one nothing in thirteen in things neither team could score 299 00:17:13,119 --> 00:17:15,160 Speaker 1: despite the rule now or the extra things to begin 300 00:17:15,240 --> 00:17:17,359 Speaker 1: with the runner at second base. In both the tenth 301 00:17:17,440 --> 00:17:20,040 Speaker 1: and eleven the Yanks killed their scoring chance. First Andrew 302 00:17:20,080 --> 00:17:23,000 Speaker 1: ben Intendi got picked off, then Jose Travino got thrown 303 00:17:23,040 --> 00:17:25,359 Speaker 1: out between second and third. Aaron Brune was asked about 304 00:17:25,480 --> 00:17:32,199 Speaker 1: base running blunderstakes. You know, obviously, you know We're runs 305 00:17:32,600 --> 00:17:35,760 Speaker 1: are are really tough to come by. Um, you know 306 00:17:37,800 --> 00:17:40,280 Speaker 1: it's been one of the real strength list team. So 307 00:17:40,359 --> 00:17:43,360 Speaker 1: I don't want to lose our progressiveness. But but obviously 308 00:17:43,440 --> 00:17:45,240 Speaker 1: we've gotta be a little smarter. Aaron, there's one with 309 00:17:45,280 --> 00:17:47,520 Speaker 1: a couple of hits in the thirteenth thought Jonathan Mowiss 310 00:17:47,560 --> 00:17:49,040 Speaker 1: to go. The Mets, with their six two win over 311 00:17:49,119 --> 00:17:51,760 Speaker 1: the Reds at City Field, now have a better record 312 00:17:51,800 --> 00:17:54,240 Speaker 1: than the Yankees. Carlos Carrasco with his thirteen twin of 313 00:17:54,240 --> 00:17:56,560 Speaker 1: the year home runs for Francisco, then Door and Jeff 314 00:17:56,640 --> 00:17:58,879 Speaker 1: McNeil mess had won fourteen to the last sixteen. In 315 00:17:58,960 --> 00:18:01,399 Speaker 1: the last four wins, there's only allowed a total of 316 00:18:01,520 --> 00:18:04,080 Speaker 1: seven runs. They still need the Braves by seven games. 317 00:18:04,160 --> 00:18:07,160 Speaker 1: Rangers announced a new captain, twenty eight year old hard 318 00:18:07,200 --> 00:18:09,960 Speaker 1: hitting defenseman Jacob Truva, getting ready for his fourth season 319 00:18:10,040 --> 00:18:12,000 Speaker 1: with the Blue Stretch. Rangers have been without the captain 320 00:18:12,280 --> 00:18:14,280 Speaker 1: since Ryan mcdonnald left in two pousand and eighteen. And 321 00:18:14,359 --> 00:18:16,920 Speaker 1: golf camp Smith, the Aussie who won the Open Championship 322 00:18:17,000 --> 00:18:20,200 Speaker 1: last month, latest to join the new Live Tour. Serena 323 00:18:20,200 --> 00:18:22,879 Speaker 1: Williams will retire after the upcoming US Open in New York. 324 00:18:22,960 --> 00:18:25,000 Speaker 1: She's one twenty three majors. One side of a rector 325 00:18:25,080 --> 00:18:28,400 Speaker 1: that really needs an asterisk because Margaret Court won many 326 00:18:28,480 --> 00:18:30,320 Speaker 1: of hers at a time when pros didn't even play 327 00:18:30,359 --> 00:18:33,000 Speaker 1: in the major. Serena is the goat of women's tennis, 328 00:18:33,040 --> 00:18:35,280 Speaker 1: and she said she's ready to move on to new things. 329 00:18:35,720 --> 00:18:38,200 Speaker 1: John Stash Howard Bloomberg Sports done all right, John, thanks 330 00:18:38,200 --> 00:18:40,520 Speaker 1: a lot thirty seven on Wall Street, and it's timed 331 00:18:40,520 --> 00:18:43,439 Speaker 1: out for the Tri State Business Report. For that, we're 332 00:18:43,520 --> 00:18:47,399 Speaker 1: joined by Bloomberg, said Cory. Chipotle Mexican grill has agreed 333 00:18:47,440 --> 00:18:50,639 Speaker 1: to pay twenty million dollars to an estimated thirteen thousand 334 00:18:50,720 --> 00:18:53,840 Speaker 1: current and former employees of its restaurants in New York City. 335 00:18:54,080 --> 00:18:56,520 Speaker 1: The money would settle a claim that the chain repeatedly 336 00:18:56,640 --> 00:19:01,040 Speaker 1: violated laws governing sick leave and scheduling. The fast casual 337 00:19:01,200 --> 00:19:04,440 Speaker 1: chain will also pay a million dollar fine. The pandemic 338 00:19:04,520 --> 00:19:07,760 Speaker 1: era freeze on student debt payments has improved credit scores 339 00:19:07,840 --> 00:19:10,760 Speaker 1: for bar wars. That's according to the Federal Reserve Bank 340 00:19:10,800 --> 00:19:14,200 Speaker 1: of New York, about thirty million people saw improvements in 341 00:19:14,280 --> 00:19:17,239 Speaker 1: their risk profile, with the biggest gains going to those 342 00:19:17,280 --> 00:19:22,080 Speaker 1: who were delinquent before the pandemic. Atlantic City casino dealers 343 00:19:22,119 --> 00:19:27,879 Speaker 1: opposed to smoking indoors, rejecting designated outdoors smoking areas employees 344 00:19:27,960 --> 00:19:31,000 Speaker 1: could opt out of staffing. The leader of a group 345 00:19:31,040 --> 00:19:33,639 Speaker 1: of casino workers says the opt out suggestion is not 346 00:19:33,800 --> 00:19:37,440 Speaker 1: the solution to protect workers and customers that your Bloomberg 347 00:19:37,480 --> 00:19:41,000 Speaker 1: tries to day Business report I mid Corey, all right, 348 00:19:41,000 --> 00:19:44,000 Speaker 1: thanks at on Wall Street. Bloomberg Radio is on the 349 00:19:44,080 --> 00:19:47,640 Speaker 1: air from San Francisco to New York, London to Hong Kong, 350 00:19:47,840 --> 00:19:50,000 Speaker 1: and let's check in now where their global news team 351 00:19:50,440 --> 00:19:52,119 Speaker 1: for some of the top stories heard on our three 352 00:19:52,200 --> 00:19:59,200 Speaker 1: hundred affiliate radio stations around the world. I'm Steve Podas 353 00:19:59,560 --> 00:20:02,600 Speaker 1: kN to Los Angeles. We're talking about the Sweet Green 354 00:20:02,800 --> 00:20:06,680 Speaker 1: Salad chain slashing its revenue forecast for the year. On 355 00:20:06,840 --> 00:20:11,560 Speaker 1: Corney tannahoan cafe bian Omaha. Inflation is wreaking havoc on breakfast, 356 00:20:11,640 --> 00:20:14,960 Speaker 1: with egg prices up almost in a year. I'm Jinas 357 00:20:15,000 --> 00:20:18,119 Speaker 1: Servetti in for w BBM in Chicago. It looks like 358 00:20:18,240 --> 00:20:20,879 Speaker 1: Big ten football fans will have a few options for 359 00:20:21,000 --> 00:20:24,600 Speaker 1: watching college sports next year. I Stephen Carol on Bloomberg 360 00:20:24,680 --> 00:20:27,320 Speaker 1: d a B Digital Radio in London. We've been reporting 361 00:20:27,359 --> 00:20:30,440 Speaker 1: on warnings of blackouts this winter in the UK amid 362 00:20:30,520 --> 00:20:34,000 Speaker 1: an energy supply crunch I'm ed Cory on w T 363 00:20:34,160 --> 00:20:37,760 Speaker 1: A M in Cleveland. I'm reporting Acron's Stigna Jewels is 364 00:20:37,840 --> 00:20:42,520 Speaker 1: buying Blue Nile Eddiot's five thirty nine on Wall Street. 365 00:20:43,240 --> 00:20:47,520 Speaker 1: The following is an editorial from Bloomberg Opinion. This editorial 366 00:20:47,840 --> 00:20:52,440 Speaker 1: was written by the Bloomberg Editorial Board. Oh what portents 367 00:20:52,680 --> 00:20:56,800 Speaker 1: are these demands? A character in Shakespeare's Henry the Fourth. 368 00:20:57,359 --> 00:21:00,520 Speaker 1: Former President Donald Trump may well be wonder the same 369 00:21:01,040 --> 00:21:05,360 Speaker 1: after FBI agents searched his home at Mara Lago on Monday. 370 00:21:05,920 --> 00:21:08,159 Speaker 1: The rest of the country could use some answers to 371 00:21:08,880 --> 00:21:13,800 Speaker 1: This is a fateful moment for US democracy. Whatever happens 372 00:21:13,920 --> 00:21:17,600 Speaker 1: next and wherever the investigation leads, there can be no 373 00:21:18,040 --> 00:21:22,360 Speaker 1: unwringing this bell. So it's essential that Americans get a sober, 374 00:21:22,720 --> 00:21:27,600 Speaker 1: transparent explanation for these latest developments. The sheer amount of 375 00:21:27,760 --> 00:21:32,240 Speaker 1: unpunished wrongdoing that occurred under the Trump administration has many 376 00:21:32,320 --> 00:21:38,119 Speaker 1: people cheering this extraordinary intervention, but it is nothing to celebrate. 377 00:21:38,520 --> 00:21:42,480 Speaker 1: Trump himself has tested the American system in ways unseen 378 00:21:42,960 --> 00:21:47,120 Speaker 1: since the nineteenth century. It is critical that the pursuit 379 00:21:47,200 --> 00:21:52,480 Speaker 1: of justice does not merely compound the damage. The sedatorial 380 00:21:52,680 --> 00:21:56,439 Speaker 1: was written by the Bloomberg Editorial Board. For more Bloomberg opinion, 381 00:21:56,640 --> 00:22:00,159 Speaker 1: please go to Bloomberg dot Com, Slash Opinion or p 382 00:22:00,480 --> 00:22:03,680 Speaker 1: I n go on the Bloomberg Terminal. These has been 383 00:22:03,760 --> 00:22:08,119 Speaker 1: Bloomberg Opinion and Bloomberg Opinion editorials can be heard every weekday. 384 00:22:08,119 --> 00:22:11,080 Speaker 1: At this time, terminal customers can read more ad O, 385 00:22:11,280 --> 00:22:17,879 Speaker 1: p I n go and the Bloomberg Weather for it. 386 00:22:17,960 --> 00:22:20,119 Speaker 1: Today clouds giving me a partial sawn, chance of a 387 00:22:20,359 --> 00:22:23,600 Speaker 1: shower or thunderstorm. The height today in the mid eighties, showers, 388 00:22:23,640 --> 00:22:26,679 Speaker 1: maybe a flunderstorm Tonight, lows in the mid seventies. Tomorrow 389 00:22:26,800 --> 00:22:33,280 Speaker 1: chance of morning showers, then partly Sunday. Markets headlines and 390 00:22:33,440 --> 00:22:36,680 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 391 00:22:36,840 --> 00:22:39,879 Speaker 1: the Bloomberg Business at and at Bloomberg Quick Tape. This 392 00:22:40,320 --> 00:22:49,000 Speaker 1: is a Bloomberg Business Lash. Good morning on Nathan Hagar. 393 00:22:49,080 --> 00:22:51,800 Speaker 1: Futures are moving higher this morning ahead of US inflation 394 00:22:51,920 --> 00:22:55,240 Speaker 1: data that will shape investor expectations for further Federal Reserve 395 00:22:55,320 --> 00:22:57,920 Speaker 1: interest rate hikes. We check the markets every fifteen minutes 396 00:22:57,960 --> 00:22:59,960 Speaker 1: during the trading day on Bloomberg s and p few 397 00:23:00,040 --> 00:23:02,880 Speaker 1: Cheries are up twelve points. Dal Future is up seventy five. 398 00:23:03,000 --> 00:23:06,159 Speaker 1: NASTAC futures higher by fifty three points. The acts in 399 00:23:06,200 --> 00:23:08,080 Speaker 1: Germany is up three tenths per cent, The CAT in 400 00:23:08,119 --> 00:23:10,920 Speaker 1: Paris is hired by a tenth percent. The tenure Treasury 401 00:23:10,960 --> 00:23:13,080 Speaker 1: is up three thirty seconds. The yield two point seven 402 00:23:13,119 --> 00:23:15,520 Speaker 1: six percent yield on the two year three point to 403 00:23:15,720 --> 00:23:18,600 Speaker 1: three percent. Name x screwed is down two tenths per 404 00:23:18,640 --> 00:23:20,680 Speaker 1: cent or twenty cents and ninety dollars thirty one cents, 405 00:23:20,720 --> 00:23:22,879 Speaker 1: and Beryl comex skulled down two tenths per cent or 406 00:23:22,920 --> 00:23:25,879 Speaker 1: three dollars ten cents eighteen o nine twenty ounce. The 407 00:23:25,960 --> 00:23:28,520 Speaker 1: Euro one point zero two two three against the dollar 408 00:23:28,600 --> 00:23:31,239 Speaker 1: British pound one point two zero nine three. The end 409 00:23:31,359 --> 00:23:33,800 Speaker 1: is at one thirty four point nine four. Of course, 410 00:23:33,840 --> 00:23:36,240 Speaker 1: all lies out for the July Consumer Price Index at 411 00:23:36,280 --> 00:23:39,040 Speaker 1: eight thirty Wall Street time. Before that, we get NBA 412 00:23:39,080 --> 00:23:42,479 Speaker 1: mortgage applications at seven, wholesale inventories for June come out 413 00:23:42,520 --> 00:23:45,240 Speaker 1: of ten, and Walt Disney headlines the list of companies 414 00:23:45,280 --> 00:23:48,560 Speaker 1: reporting earnings today. That's a Bloomberg business flash. Now here's 415 00:23:48,600 --> 00:23:50,520 Speaker 1: Michael Barr with more on what's going on around the world. 416 00:23:50,560 --> 00:23:53,639 Speaker 1: Good morning, Michael, Good morning, Nathan Donald Trump's candidate of 417 00:23:53,760 --> 00:23:57,680 Speaker 1: choice as one Wisconsin's Republican nomination to take on Democratic 418 00:23:57,720 --> 00:24:02,720 Speaker 1: Governor Tony Evers. Businessman Tim Michaels defeated former Lieutenant Governor 419 00:24:02,800 --> 00:24:07,920 Speaker 1: Rebecca Cleefish, backed by former VP Mike Pence. Former President 420 00:24:07,960 --> 00:24:10,560 Speaker 1: Trump will be questioned under oath today and the New 421 00:24:10,640 --> 00:24:14,760 Speaker 1: York Attorney General's long running civil investigation into his real 422 00:24:14,880 --> 00:24:18,000 Speaker 1: estate dealings. In baseball, the Yankees lost to the Mariners 423 00:24:18,040 --> 00:24:20,720 Speaker 1: one zip and thirteen innings. The Mats beat the Red 424 00:24:20,800 --> 00:24:23,440 Speaker 1: six two. The Red Sox lost to the Braves nine 425 00:24:23,560 --> 00:24:27,119 Speaker 1: seven and next reunings. The Nationals and Orioles won the 426 00:24:27,240 --> 00:24:30,480 Speaker 1: Giants and A's lost. Global News twenty four hours a 427 00:24:30,560 --> 00:24:33,800 Speaker 1: day on air and on Bloomberg Quicktake, powered by more 428 00:24:33,920 --> 00:24:36,359 Speaker 1: than twenty seven under journalists and analyist more than a 429 00:24:36,440 --> 00:24:39,920 Speaker 1: hundred twenty countries. Michael barn this is Bloomberg, John, Michael, 430 00:24:39,960 --> 00:24:42,160 Speaker 1: thank you. Five twenty on Wall Street. We are live 431 00:24:42,240 --> 00:24:46,120 Speaker 1: for the Bloomberger interacted broker's studios. This is Bloomberg Daybreak 432 00:24:46,600 --> 00:24:48,959 Speaker 1: by the US Inflation Data TAY will shape the investor 433 00:24:49,040 --> 00:24:52,680 Speaker 1: expectations for Federal Reserve interest rate policy. The path ahead 434 00:24:53,359 --> 00:24:56,600 Speaker 1: let's get a preview today's consumer price index with Bloomberg's 435 00:24:56,840 --> 00:25:00,440 Speaker 1: Mike McKee. Is this going to be the peak? That's 436 00:25:00,480 --> 00:25:07,000 Speaker 1: the question? Yeah, Um, this maybe the peak for headline inflation. 437 00:25:07,560 --> 00:25:11,920 Speaker 1: The core is expected to rise, strip out food and energy. 438 00:25:12,119 --> 00:25:14,800 Speaker 1: Core is expected to rise because there's still a number 439 00:25:14,800 --> 00:25:18,600 Speaker 1: of areas that are rising in price, especially real estate 440 00:25:18,760 --> 00:25:22,400 Speaker 1: rent as it's measured is still going up and will 441 00:25:22,440 --> 00:25:25,119 Speaker 1: be for some months, so that puts pressure on the core. Also, 442 00:25:25,520 --> 00:25:29,280 Speaker 1: base effects inflation was very low at this time last 443 00:25:29,359 --> 00:25:32,080 Speaker 1: year comparatively, so it just makes it go up a 444 00:25:32,160 --> 00:25:36,639 Speaker 1: little higher. But if Wall Street sees progress, that may 445 00:25:36,680 --> 00:25:39,520 Speaker 1: be good enough. Okay, so that they'll be looking for 446 00:25:39,600 --> 00:25:42,240 Speaker 1: the trajectory. And what do we need to hear from J. 447 00:25:42,440 --> 00:25:45,760 Speaker 1: Powell and company at the Federal Reserve? What specifically are 448 00:25:45,760 --> 00:25:48,520 Speaker 1: they're going to be looking for this report. They're gonna 449 00:25:48,520 --> 00:25:51,240 Speaker 1: be looking for progress basically. That That was J Pal's 450 00:25:51,640 --> 00:25:55,920 Speaker 1: comment on the day they last raised rates, was that 451 00:25:56,000 --> 00:25:59,440 Speaker 1: they're looking for significant progress that proves to them or 452 00:25:59,480 --> 00:26:03,760 Speaker 1: shows to them that inflation is declining. We will get 453 00:26:04,119 --> 00:26:07,119 Speaker 1: probably a lower headline number, as I mentioned, because gasoline 454 00:26:07,119 --> 00:26:09,680 Speaker 1: prices have been going down, but they want to see 455 00:26:09,720 --> 00:26:11,400 Speaker 1: more than that, and they want to see it sustained 456 00:26:11,440 --> 00:26:14,480 Speaker 1: for a couple of months. So we'll see what happens today, 457 00:26:14,520 --> 00:26:17,320 Speaker 1: and then we get another CPI report just before their 458 00:26:17,400 --> 00:26:20,560 Speaker 1: next meeting, So what we hear from the Fed will 459 00:26:20,600 --> 00:26:25,160 Speaker 1: probably be more nuanced than declarative right after this number. 460 00:26:25,400 --> 00:26:29,040 Speaker 1: To what degree does policy actually control the rate of 461 00:26:29,400 --> 00:26:33,440 Speaker 1: inflation with all this stuff? That's a good question in 462 00:26:33,560 --> 00:26:37,399 Speaker 1: this circumstance because so much was based on supply chain problems. Uh, 463 00:26:37,880 --> 00:26:39,840 Speaker 1: the fact that gasoline is coming down has nothing to 464 00:26:39,920 --> 00:26:43,720 Speaker 1: do with the Fed. The housing market is going to 465 00:26:43,800 --> 00:26:48,000 Speaker 1: be cooling. We are already seeing sales cool and prices ease, 466 00:26:48,400 --> 00:26:52,399 Speaker 1: but that takes a while to get into the overall numbers. Uh. 467 00:26:52,920 --> 00:26:55,919 Speaker 1: That's an area where the Fed's having an impact. Um. 468 00:26:56,240 --> 00:26:59,399 Speaker 1: Take cars, the Fed's higher interest rates are making it 469 00:26:59,720 --> 00:27:02,399 Speaker 1: more expensive to buy a car, which should cool demand, 470 00:27:02,520 --> 00:27:05,640 Speaker 1: but we're also seeing prices held up by the fact 471 00:27:05,680 --> 00:27:07,280 Speaker 1: that there aren't a lot of cars to buy because 472 00:27:07,320 --> 00:27:10,040 Speaker 1: they still have supply chain problems. So it's a little 473 00:27:10,080 --> 00:27:12,760 Speaker 1: more difficult to separate out what the FED is able 474 00:27:12,800 --> 00:27:16,879 Speaker 1: to accomplish from what is affected by external factors. Right now, 475 00:27:17,240 --> 00:27:19,520 Speaker 1: they have that dual mandate where you know you have 476 00:27:19,600 --> 00:27:23,440 Speaker 1: to have full employment and try to control price pressures 477 00:27:23,520 --> 00:27:26,280 Speaker 1: or at least price stability. So does that mean they 478 00:27:26,320 --> 00:27:30,879 Speaker 1: have to torpedo employment uh to get prices down because 479 00:27:31,240 --> 00:27:34,080 Speaker 1: the wages are a big component of inflation. Well, their 480 00:27:34,160 --> 00:27:36,680 Speaker 1: argument is they don't. And the reason is we have 481 00:27:36,840 --> 00:27:40,000 Speaker 1: so many job openings. If people lose their jobs because 482 00:27:40,240 --> 00:27:43,760 Speaker 1: demand falls for some products, they could get another job. 483 00:27:44,440 --> 00:27:47,440 Speaker 1: Historically that hasn't happened. But historically we haven't had this 484 00:27:47,600 --> 00:27:50,080 Speaker 1: many job openings, so you'll see a lot of people 485 00:27:50,200 --> 00:27:54,040 Speaker 1: argue that they do have to torpedo the unemployment rate, 486 00:27:54,400 --> 00:27:58,320 Speaker 1: send it higher to get inflation down. Fed still holding 487 00:27:58,359 --> 00:28:01,479 Speaker 1: onto the idea that they don't have to really affect 488 00:28:01,560 --> 00:28:04,760 Speaker 1: employment all that much to bring inflation down, and this 489 00:28:04,960 --> 00:28:07,080 Speaker 1: is an argument that won't be settled for many months. 490 00:28:07,400 --> 00:28:11,280 Speaker 1: How does worker productivity figure into all of this, Well, 491 00:28:11,359 --> 00:28:14,440 Speaker 1: the problem for a lot of companies is productivity has 492 00:28:14,520 --> 00:28:17,800 Speaker 1: been falling, So if you're going to keep up with demand, 493 00:28:18,000 --> 00:28:21,320 Speaker 1: you need more people, and we have had a labor 494 00:28:21,400 --> 00:28:26,640 Speaker 1: shortage that pushes up wages. If productivity were to increase 495 00:28:26,720 --> 00:28:31,359 Speaker 1: and companies did spend money, Remember during the pandemic to 496 00:28:31,480 --> 00:28:33,600 Speaker 1: try to make it easier to get by with fewer 497 00:28:33,640 --> 00:28:36,240 Speaker 1: employees because it couldn't get them into the office. Uh. 498 00:28:37,000 --> 00:28:40,120 Speaker 1: If that starts to have an impact, then prices that 499 00:28:40,160 --> 00:28:43,440 Speaker 1: should also be deflationary. Prices should fall a little bit. 500 00:28:43,680 --> 00:28:45,640 Speaker 1: But so far there's no sign of that. The numbers 501 00:28:45,760 --> 00:28:49,760 Speaker 1: yesterday still show major declines in productivity. Is legislation in 502 00:28:49,880 --> 00:28:54,560 Speaker 1: Washington fiscal policy is that having any impact. No, it 503 00:28:54,720 --> 00:28:57,320 Speaker 1: will over a longer run period, but it will be 504 00:28:57,480 --> 00:28:59,880 Speaker 1: so small you really won't notice that. The issue is 505 00:29:00,320 --> 00:29:02,920 Speaker 1: that the money that they're paying out compared to the 506 00:29:03,000 --> 00:29:05,640 Speaker 1: overall size of the economy isn't going to be that great, 507 00:29:05,840 --> 00:29:08,160 Speaker 1: not like it was when they were handing out stimulus checks. 508 00:29:08,440 --> 00:29:10,800 Speaker 1: And also it's going to be spent over a number 509 00:29:10,880 --> 00:29:14,520 Speaker 1: of years. Where you might see some benefit is in 510 00:29:14,720 --> 00:29:19,280 Speaker 1: the Chips Act, the Semiconductor Support Act, and in some 511 00:29:19,440 --> 00:29:22,800 Speaker 1: of the infrastructure spending that that bill was passed a 512 00:29:22,920 --> 00:29:25,720 Speaker 1: year or so ago, and that money just hinting the economy. 513 00:29:25,800 --> 00:29:28,640 Speaker 1: But if those help improve productivity, then that would be 514 00:29:29,160 --> 00:29:32,040 Speaker 1: a weight on prices. What's the betting right now for 515 00:29:32,440 --> 00:29:34,640 Speaker 1: the next meeting from the Fed in terms of the 516 00:29:36,080 --> 00:29:38,560 Speaker 1: rate rise markets are covering sort of in between fifty 517 00:29:38,600 --> 00:29:41,080 Speaker 1: and seventy five, and you're going to see a lot 518 00:29:41,120 --> 00:29:43,680 Speaker 1: of volatility between now and then. So depending on what 519 00:29:43,800 --> 00:29:47,120 Speaker 1: we see today, we may see that go towards seventy 520 00:29:47,200 --> 00:29:50,280 Speaker 1: five or hang around fifty. But I wouldn't put much 521 00:29:50,320 --> 00:29:52,400 Speaker 1: stock in it unless you have to trade it today 522 00:29:52,480 --> 00:29:55,239 Speaker 1: because by the time the Fed meets on September one, 523 00:29:55,520 --> 00:29:57,880 Speaker 1: who have a lot more data that will influence their views. 524 00:29:59,120 --> 00:30:03,200 Speaker 1: The CPI to keep it here. Mike McKee appreciated you're 525 00:30:03,280 --> 00:30:05,600 Speaker 1: listening to Bloomberg day Break ahead of the market open. 526 00:30:05,680 --> 00:30:08,880 Speaker 1: We have down futures of sixty five, the SMP futures 527 00:30:09,000 --> 00:30:12,480 Speaker 1: up eleven, and then say futures right now forty eight 528 00:30:12,600 --> 00:30:17,479 Speaker 1: points higher. This is day Break Bloomberg, brought you by 529 00:30:17,480 --> 00:30:20,640 Speaker 1: a Peapack Private Wealth Management. Pepack Private Wealth Management knows 530 00:30:20,680 --> 00:30:23,080 Speaker 1: that a portfolio is more than a collection of assets. 531 00:30:23,520 --> 00:30:26,200 Speaker 1: It's a path to your future. Visit Peapack Private dot Com. 532 00:30:26,320 --> 00:30:34,400 Speaker 1: Begin your financial legacy today. And it's not five oh 533 00:30:34,480 --> 00:30:36,520 Speaker 1: seven on Wall Street. Time to bring in Michael Barr 534 00:30:36,640 --> 00:30:38,479 Speaker 1: with more on what else is going on to New 535 00:30:38,600 --> 00:30:41,600 Speaker 1: York and around the world. John, thank you very much. Sir. 536 00:30:41,720 --> 00:30:44,040 Speaker 1: There was a deadly bus crash on the New Jersey 537 00:30:44,120 --> 00:30:47,520 Speaker 1: turn plank last night. Authorities say one person was killed 538 00:30:47,600 --> 00:30:51,160 Speaker 1: and five people were seriously injured when a passenger bus 539 00:30:51,280 --> 00:30:55,800 Speaker 1: from New York to Philadelphia overturned near Woodbridge. Sergeant Lawrence 540 00:30:55,880 --> 00:30:59,760 Speaker 1: Peel of the State Police preliminary information indicates that at 541 00:30:59,800 --> 00:31:05,400 Speaker 1: a proximately six fifty three pm, a coach double decker 542 00:31:05,520 --> 00:31:09,360 Speaker 1: bus overturn and came to rest on the entrance ramp 543 00:31:09,640 --> 00:31:13,160 Speaker 1: to the service area. Sergeant Peels says the bus also 544 00:31:13,240 --> 00:31:16,920 Speaker 1: struck a pickup truck. Former President Donald Trump says he 545 00:31:16,960 --> 00:31:19,520 Speaker 1: will be questioned under oath today in the New York 546 00:31:19,560 --> 00:31:23,880 Speaker 1: Attorney General's long running civil investigation into his real estate dealings. 547 00:31:24,360 --> 00:31:28,000 Speaker 1: The New York civil investigation involves allegations that Trump's company 548 00:31:28,320 --> 00:31:32,520 Speaker 1: misstated the value of assets and misled lenders and tax authorities. 549 00:31:32,960 --> 00:31:36,800 Speaker 1: FBI agents recently searched is Maria Lago estate in Florida 550 00:31:37,200 --> 00:31:39,800 Speaker 1: as part of an unrelated federal probe into whether he 551 00:31:39,880 --> 00:31:43,440 Speaker 1: took classified records when he left the White House. Trump 552 00:31:43,520 --> 00:31:47,200 Speaker 1: supporters are reacting to the search. Republican Senator Ted Cruz 553 00:31:47,280 --> 00:31:52,080 Speaker 1: of Texas this raises serious questions again about the Biden 554 00:31:52,080 --> 00:31:56,680 Speaker 1: administration politicizing and weaponizing law enforcement. I believe Congress should 555 00:31:56,680 --> 00:32:00,360 Speaker 1: hold hearings, we should have subpoenas. Senator Cruz blamed politics 556 00:32:00,400 --> 00:32:03,640 Speaker 1: for the Mara Lago search. White House Press Secretary Karine 557 00:32:03,720 --> 00:32:07,880 Speaker 1: Jean Pierre said President Biden respects the d j's independence. 558 00:32:08,560 --> 00:32:11,320 Speaker 1: The President of the White House learned about this FBI 559 00:32:11,400 --> 00:32:13,880 Speaker 1: starge from public reports. We learned just like the American 560 00:32:13,920 --> 00:32:17,440 Speaker 1: public did yesterday, and we did not have advanced notice 561 00:32:18,280 --> 00:32:21,840 Speaker 1: of this activity. Karina Jean Pierre also urged China to 562 00:32:22,080 --> 00:32:27,400 Speaker 1: reconsider escalating aggression, calling it provocative and irresponsible. Meanwhile, China 563 00:32:27,600 --> 00:32:31,520 Speaker 1: says it will end Taiwan military drills and will plan 564 00:32:31,720 --> 00:32:35,640 Speaker 1: regular patrols. Businessman Tim Michaels, who was endorsed by Donald 565 00:32:35,720 --> 00:32:39,480 Speaker 1: Trump as won the GOP primary for Wisconsin governor. Michaels 566 00:32:39,520 --> 00:32:43,160 Speaker 1: defeated former Lieutenant Governor Rebecca Cleefish, who had the backing 567 00:32:43,280 --> 00:32:47,280 Speaker 1: of establishment Republicans and former VP Mike Penns. Michaels will 568 00:32:47,320 --> 00:32:50,560 Speaker 1: face current Democratic Governor Tony Evers in the fall. In 569 00:32:50,680 --> 00:32:56,000 Speaker 1: Connecticut's District four GOP primary, Jamie Stevenson beat Michael Goldstein 570 00:32:56,080 --> 00:32:57,880 Speaker 1: with more than sixty percent of the vote for a 571 00:32:58,040 --> 00:33:02,040 Speaker 1: US House eat Stevenson Will against Democratic incumbent Jim Himes. 572 00:33:02,280 --> 00:33:05,360 Speaker 1: Primaries were also held in Vermont. Global News twenty four 573 00:33:05,400 --> 00:33:07,600 Speaker 1: hours a day on air and on Bloomberg Quick Take, 574 00:33:07,600 --> 00:33:10,719 Speaker 1: powered by more than seven hundred journalists analysts more than 575 00:33:10,720 --> 00:33:12,920 Speaker 1: a hundred twenty countries. I'm Michael bar This is Bloomberg, 576 00:33:13,000 --> 00:33:18,000 Speaker 1: John Michael, thank you, and it's coming up on five 577 00:33:18,040 --> 00:33:20,040 Speaker 1: and ten of Wall Street, tied down to the Bloomberg 578 00:33:20,120 --> 00:33:22,960 Speaker 1: Sports Update. Good morning, John Stennshower, all right, good morning John. 579 00:33:23,000 --> 00:33:26,840 Speaker 1: Seattle Mariners manager Scott's Service called last night's game one 580 00:33:26,840 --> 00:33:29,920 Speaker 1: of the best he's ever seen. It's certainly had great pitching. 581 00:33:30,040 --> 00:33:32,800 Speaker 1: The first game of the Majors to be scoreless in 582 00:33:32,880 --> 00:33:35,200 Speaker 1: the thirteenth innings since they put in the new rule 583 00:33:35,600 --> 00:33:37,800 Speaker 1: where extra innings begin with a runner at second base. 584 00:33:37,840 --> 00:33:40,920 Speaker 1: After four hours, finally a run was scored. Why is 585 00:33:40,960 --> 00:33:44,440 Speaker 1: it gets ready? Here's the stretch and now the O 586 00:33:44,640 --> 00:33:46,640 Speaker 1: two on the way to turn swinging a line drive 587 00:33:46,720 --> 00:34:02,440 Speaker 1: basin right now? Score off wise nothing Gyro the coing 588 00:34:02,520 --> 00:34:05,640 Speaker 1: Yankees wasting a Garrett Cole Jim against the same Seattle 589 00:34:05,680 --> 00:34:07,720 Speaker 1: team that scored six runs off him in the first 590 00:34:07,800 --> 00:34:09,480 Speaker 1: inning of the game. Last week in New York, cole 591 00:34:09,880 --> 00:34:12,680 Speaker 1: battle with Luis Castillo, who made his third start in 592 00:34:12,719 --> 00:34:14,880 Speaker 1: the last four weeks against the Yanks. The first one 593 00:34:15,440 --> 00:34:17,320 Speaker 1: was while he was with the Reds, and he dominated 594 00:34:17,400 --> 00:34:19,480 Speaker 1: them and all three of those starts. Speaking of the Reds, 595 00:34:19,760 --> 00:34:22,239 Speaker 1: their bats again quiet and City Field Mets one six 596 00:34:22,320 --> 00:34:25,040 Speaker 1: to two home runs for Francisco Lindor and Jeff McNeil. 597 00:34:25,200 --> 00:34:27,520 Speaker 1: Thirteenth win of the year for Carlos Carrasco. He's tied 598 00:34:27,560 --> 00:34:29,920 Speaker 1: for the National League League. The Mets have won fourteen 599 00:34:29,960 --> 00:34:32,759 Speaker 1: of their last sixteen. Only one of those victories was 600 00:34:32,800 --> 00:34:35,280 Speaker 1: by one run, another by two. The other twelve wins 601 00:34:35,360 --> 00:34:38,680 Speaker 1: all by at least three runs. Atlanta one in eleven 602 00:34:38,719 --> 00:34:41,719 Speaker 1: innings in Boston, who remained seven games behind. When Jets 603 00:34:41,760 --> 00:34:44,600 Speaker 1: Tackla McKay Beckton limped off the practice field Monday, coach 604 00:34:44,680 --> 00:34:46,360 Speaker 1: Rob Salah at first did not think it was a 605 00:34:46,400 --> 00:34:48,160 Speaker 1: serious knee injury. Then came the m r I that 606 00:34:48,239 --> 00:34:51,520 Speaker 1: revealed it was, and the news yesterday it's season ending. 607 00:34:51,640 --> 00:34:53,919 Speaker 1: Beckton hurt the same knee and last year's season opener 608 00:34:53,960 --> 00:34:56,759 Speaker 1: miss twenty one as well. Jets drafted Beckham with the 609 00:34:56,800 --> 00:35:01,080 Speaker 1: eleventh overall pick in Johns Dashawart Bloomberg Sports storm. All right, 610 00:35:01,080 --> 00:35:03,320 Speaker 1: thanks John, And ahead of the cash show up on 611 00:35:03,400 --> 00:35:06,200 Speaker 1: Wall Street, we're seeing down futures up seventy one points. 612 00:35:06,440 --> 00:35:09,960 Speaker 1: The smp Eman futures they're up twelve points right now, 613 00:35:10,120 --> 00:35:14,520 Speaker 1: Nasday futures up. And you're listening to Bloomberg Dame Break 614 00:35:17,000 --> 00:35:20,560 Speaker 1: and Bloomberg Weather from meteorologist Rob Caroline. Cloud's giving weight 615 00:35:20,640 --> 00:35:22,640 Speaker 1: to partial sun today. There is the chance of a 616 00:35:22,719 --> 00:35:27,879 Speaker 1: shower or thunderstorm. Hi today showers, maybe a thunderstorm Tonight 617 00:35:28,000 --> 00:35:35,120 Speaker 1: Loaves in the mid seventies, Live from the Bloomberg Interactive 618 00:35:35,160 --> 00:35:39,560 Speaker 1: Broker Studios. This is Bloomberg day Break for Wednesday, August two, 619 00:35:39,680 --> 00:35:42,400 Speaker 1: coming up this hour. Trader is ready for the latest 620 00:35:42,480 --> 00:35:45,960 Speaker 1: reading on inflation. Elon Musk sells more Testla shares to 621 00:35:46,040 --> 00:35:48,719 Speaker 1: prepare for the possible purchase of Twitter. The d o 622 00:35:48,920 --> 00:35:52,160 Speaker 1: J is poised to sue Google over its digital ad dominance, 623 00:35:52,480 --> 00:35:56,040 Speaker 1: and coin Bass slides after an earnings miss and dim forecast. 624 00:35:56,400 --> 00:35:58,960 Speaker 1: A bus accident in New Jersey has left at least 625 00:35:59,040 --> 00:36:02,600 Speaker 1: one person beat lust. Former President Trump gives his deposition 626 00:36:02,640 --> 00:36:06,239 Speaker 1: today in New York Michael Barner. More Ahead, I'm John 627 00:36:06,280 --> 00:36:08,680 Speaker 1: stash owns boards. Another win for the Red Hot Mats. 628 00:36:08,719 --> 00:36:12,360 Speaker 1: The Yankees lost in Seattle. Wandon update in thirteen and easy, 629 00:36:14,760 --> 00:36:18,960 Speaker 1: that's all strained Ahead on Bloomberg Daybreak on Bloomberg eleven three, 630 00:36:19,000 --> 00:36:23,200 Speaker 1: on New York Bloomberg nine one, Washington, d C, Bloomberg 631 00:36:23,280 --> 00:36:26,960 Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco 632 00:36:27,480 --> 00:36:30,480 Speaker 1: syrius x AM one nineteen and around the world on 633 00:36:30,640 --> 00:36:33,960 Speaker 1: Bloomberg Radio dot com and via the Bloomberg Business Ad. 634 00:36:37,920 --> 00:36:40,839 Speaker 1: Good morning, I'm John Tucker, Anna, Nathan Hagar. Futures are 635 00:36:40,880 --> 00:36:42,960 Speaker 1: on the rise this morning. It's coming up to five 636 00:36:43,000 --> 00:36:45,000 Speaker 1: oh one on Wall Street. We checked the markets every 637 00:36:45,040 --> 00:36:47,560 Speaker 1: fifteen minutes during the training day. On Bloomberg, s and 638 00:36:47,600 --> 00:36:50,399 Speaker 1: P Futures up twelve point, Staff futures up seventy four. 639 00:36:50,840 --> 00:36:53,840 Speaker 1: Nastack Future is higher by fifty four points. The tenure 640 00:36:53,840 --> 00:36:56,759 Speaker 1: Treasury is up to thirty seconds. The yield two point 641 00:36:56,840 --> 00:36:59,480 Speaker 1: seven six percent yield on the two year three point 642 00:36:59,560 --> 00:37:03,239 Speaker 1: two percent. NIMEX screwed is down six tenths percent, down 643 00:37:03,280 --> 00:37:06,000 Speaker 1: fifty four cents at eighty nine nine cents a barrel 644 00:37:06,239 --> 00:37:08,640 Speaker 1: comes gold is down two tenths per cent or three 645 00:37:08,680 --> 00:37:11,200 Speaker 1: dollars eighty cents at eighteen o eight fifty. Announced, the 646 00:37:11,239 --> 00:37:14,000 Speaker 1: euro one point zero to two two against the dollar, 647 00:37:14,040 --> 00:37:16,160 Speaker 1: and the en is at one thirty four point nine 648 00:37:16,200 --> 00:37:18,880 Speaker 1: seven John and they all eyes are. In this morning's 649 00:37:19,000 --> 00:37:23,960 Speaker 1: inflation report, economists predicted deceleration and consumer prices. They predict 650 00:37:24,000 --> 00:37:26,640 Speaker 1: prices for July of rose at an annual rate of 651 00:37:26,719 --> 00:37:29,799 Speaker 1: eight point seven percent. Let's get more from Bloomberg's Michael 652 00:37:29,880 --> 00:37:33,239 Speaker 1: McKee headline. Inflation is forecast to have eased in July, 653 00:37:33,480 --> 00:37:36,200 Speaker 1: in large part because oil prices fell, bringing down the 654 00:37:36,280 --> 00:37:39,839 Speaker 1: cost of gasoline. While perhaps helpful, it won't have much 655 00:37:39,960 --> 00:37:43,839 Speaker 1: influence on FED thinking. That's because core inflation, stripping out 656 00:37:44,000 --> 00:37:47,360 Speaker 1: energy and food, is expected to post another big increase. 657 00:37:47,480 --> 00:37:50,879 Speaker 1: Rents in particular are seen accelerating, which boosts the home 658 00:37:50,960 --> 00:37:54,640 Speaker 1: price component of cp I well. Many commodities have declined 659 00:37:54,760 --> 00:37:58,400 Speaker 1: in price on futures markets, those jobs likely haven't worked 660 00:37:58,440 --> 00:38:01,600 Speaker 1: their way into retail price. It's as yet also. Another 661 00:38:01,640 --> 00:38:04,400 Speaker 1: big drop in productivity during the second quarter means companies 662 00:38:04,400 --> 00:38:08,319 Speaker 1: aren't recouping all their costs, including labor costs, which rose 663 00:38:08,360 --> 00:38:11,200 Speaker 1: at a double digit pace from April through June. Michael 664 00:38:11,280 --> 00:38:14,560 Speaker 1: McKee Bloomberg Daybreak. Okay, Mike. Thanks. This morning, we're learning 665 00:38:14,560 --> 00:38:18,200 Speaker 1: about the impact of President Biden's Inflation Reduction Act. It's 666 00:38:18,200 --> 00:38:20,600 Speaker 1: set to become law in the coming days, and one 667 00:38:20,680 --> 00:38:24,120 Speaker 1: major bank says the bill will hardly impact prices at all. 668 00:38:24,440 --> 00:38:27,440 Speaker 1: Bloomberg's Rinita Young joins us Live with that story. Good morning, Granina, 669 00:38:27,520 --> 00:38:30,960 Speaker 1: Good morning Nathan. The Inflation Reduction Act is estimated to 670 00:38:31,040 --> 00:38:34,720 Speaker 1: reduce the federal budget deficit by about three hundred billion 671 00:38:34,800 --> 00:38:38,480 Speaker 1: dollars over the next decade, but JP Morgan Chase economists 672 00:38:38,520 --> 00:38:40,719 Speaker 1: say the law will have almost no effect on the 673 00:38:40,840 --> 00:38:44,279 Speaker 1: price growth that's currently running at the fastest pace in 674 00:38:44,440 --> 00:38:48,440 Speaker 1: four decades. The nonpartisan Congressional Budget Office, the Committee for 675 00:38:48,480 --> 00:38:52,320 Speaker 1: a Responsible Federal Budget, and the pen Wharton Budget Model 676 00:38:52,440 --> 00:38:56,080 Speaker 1: all agree that the legislation will have a minimal influence 677 00:38:56,160 --> 00:38:59,760 Speaker 1: on inflation. Live in New York, I'm Gonnita Young, Bloomberg 678 00:38:59,840 --> 00:39:02,920 Speaker 1: day Break, Nita. Thanks. Meantime, we're learning the Inflation Reduction 679 00:39:03,000 --> 00:39:07,160 Speaker 1: Act will have tax implications for corporations and middle class Americans. 680 00:39:07,640 --> 00:39:11,840 Speaker 1: Amy Morris has details from our Bloomberg Newsroom in Washington. 681 00:39:12,160 --> 00:39:15,400 Speaker 1: Analysis by the Congressional Joint Committee on Taxation finds that 682 00:39:15,480 --> 00:39:18,640 Speaker 1: corporations will pay nearly two hundred ninety six billion dollars 683 00:39:18,680 --> 00:39:21,080 Speaker 1: more in federal taxes over the next decade, much of 684 00:39:21,200 --> 00:39:24,560 Speaker 1: that from a new corporate minimum tax requiring billion dollar 685 00:39:24,640 --> 00:39:27,960 Speaker 1: companies to pay a fifteen percent minimum. Households making less 686 00:39:27,960 --> 00:39:31,200 Speaker 1: than one hundred thousand dollars will see net tax cuts through, 687 00:39:32,400 --> 00:39:36,359 Speaker 1: mostly through Affordable Care Act premium subsidies. Taxes for middle 688 00:39:36,400 --> 00:39:39,279 Speaker 1: and low income households are largely unchanged. The bill is 689 00:39:39,320 --> 00:39:42,160 Speaker 1: set for a vote in the House on Friday. In Washington, 690 00:39:42,280 --> 00:39:44,560 Speaker 1: I'm Amy Moore as Bloomberg Day Break. All right, Amy, 691 00:39:44,640 --> 00:39:47,680 Speaker 1: thank you. Let's turn our attention overseas. Now. Europe is 692 00:39:47,760 --> 00:39:50,440 Speaker 1: in the midst of a heat wave and it's evaporating 693 00:39:50,480 --> 00:39:53,880 Speaker 1: the region's rivers. A major waterway in Germany's drying up, 694 00:39:54,160 --> 00:39:57,279 Speaker 1: and that could have major economic implications. Bloomberg's You and 695 00:39:57,320 --> 00:39:59,879 Speaker 1: Potts joins us live from London with the latest. Good morning, 696 00:40:00,000 --> 00:40:03,359 Speaker 1: Good morning, Nathan and John. The river Ryne is set 697 00:40:03,440 --> 00:40:07,400 Speaker 1: to become effectively impossible to shipping later this week. The 698 00:40:07,480 --> 00:40:10,720 Speaker 1: German government says the water label drop below sixteen inches 699 00:40:10,800 --> 00:40:14,680 Speaker 1: deep on Friday at a key point west of Frankfurt's 700 00:40:14,880 --> 00:40:18,160 Speaker 1: As the region's drought continues. At that level, vessels that 701 00:40:18,239 --> 00:40:21,120 Speaker 1: haul everything from diesel to coal will be unable to 702 00:40:21,239 --> 00:40:24,160 Speaker 1: use the river. It's just another problem in Europe's worst 703 00:40:24,280 --> 00:40:27,280 Speaker 1: energy crisis in decades. In London, I'm you and Potspoon 704 00:40:27,320 --> 00:40:29,080 Speaker 1: back day break you and thanks. Let's turn into the 705 00:40:29,160 --> 00:40:32,000 Speaker 1: markets now. That's where earnings are weighing on semiconductor stocks. 706 00:40:32,400 --> 00:40:36,000 Speaker 1: Micron Technology the latest shipmaker to Warner of slowing demand. 707 00:40:36,480 --> 00:40:39,680 Speaker 1: We You've heard similar sentiment from Nvidia, Intel and a 708 00:40:39,880 --> 00:40:41,840 Speaker 1: m D in recent days, and that caused that you 709 00:40:41,880 --> 00:40:46,040 Speaker 1: Philadelphia Semiconductor Index to form more than four percent yesterday. 710 00:40:46,400 --> 00:40:49,320 Speaker 1: And earnings in the crypto space are also disappointing. Giant 711 00:40:49,360 --> 00:40:51,560 Speaker 1: shares of coin base are down six and a half 712 00:40:51,640 --> 00:40:54,640 Speaker 1: percent this morning after posting a record second quarter loss 713 00:40:54,800 --> 00:40:58,040 Speaker 1: and lower than expected revenue. Coin based chief operating officer 714 00:40:58,120 --> 00:41:00,919 Speaker 1: Emily Choi discussed the results of for ex Emily Chang. 715 00:41:01,320 --> 00:41:03,800 Speaker 1: I think it was a rough quarter for most companies 716 00:41:03,960 --> 00:41:06,520 Speaker 1: in the crypto space. We obviously had some big episodic 717 00:41:06,560 --> 00:41:09,040 Speaker 1: events that happened during the quarter, and so some of 718 00:41:09,040 --> 00:41:11,520 Speaker 1: those asset prices shrunk, which then impacts things like the 719 00:41:11,560 --> 00:41:15,239 Speaker 1: assets on platform and other numbers. Coin by CEO Emily Choice, 720 00:41:15,239 --> 00:41:19,200 Speaker 1: speaking on Bloomberg Technology, Catch our daily Bloomberg Technology podcast 721 00:41:19,360 --> 00:41:21,960 Speaker 1: Daily wherever you get your podcasts, and sticking with earnings. 722 00:41:22,000 --> 00:41:24,520 Speaker 1: Disney set to reports that day after the closing bill 723 00:41:24,960 --> 00:41:28,560 Speaker 1: Bloomberg Intelligence as the company expect to see subscriber growth 724 00:41:28,600 --> 00:41:31,800 Speaker 1: for its Disney Plus streaming service. But the big question 725 00:41:31,880 --> 00:41:35,400 Speaker 1: is whether management will walk back future subscriber guidance if 726 00:41:35,400 --> 00:41:39,799 Speaker 1: you're losing streaming rights from the for the Indian Premium League. Well, 727 00:41:39,800 --> 00:41:42,839 Speaker 1: we're learning this morning about another share sale by Elon Musk. 728 00:41:42,920 --> 00:41:45,840 Speaker 1: John he has sold another nearly seven billion dollars in 729 00:41:45,880 --> 00:41:49,200 Speaker 1: Tesla stock, according to regulatory filings. The sale comes as 730 00:41:49,320 --> 00:41:51,640 Speaker 1: Musk faces legal challenges in his bid to pull out 731 00:41:51,719 --> 00:41:54,200 Speaker 1: of a deal to buy Twitter. The Bloomberg Global Business 732 00:41:54,280 --> 00:41:56,880 Speaker 1: Editor Emma O'Brien has more on the sale. Looks like 733 00:41:57,040 --> 00:42:00,480 Speaker 1: he's looking to cash in on a substand till amount 734 00:42:00,480 --> 00:42:03,720 Speaker 1: of stock while it is at a decent level around 735 00:42:03,800 --> 00:42:06,839 Speaker 1: eight hundred and fifty dollars a share right now, up 736 00:42:06,880 --> 00:42:10,320 Speaker 1: from those lows reached in May just above six hundred dollars. 737 00:42:10,520 --> 00:42:13,600 Speaker 1: Bloomberg's m O'Brien says Musk could sell even more Tesla 738 00:42:13,719 --> 00:42:16,279 Speaker 1: shares if he's forced to buy Twitter. Right now, Tesla's 739 00:42:16,360 --> 00:42:18,960 Speaker 1: up two point eight percent in the pre market and 740 00:42:19,200 --> 00:42:21,719 Speaker 1: some big news from the search giant Google. Sources tell 741 00:42:21,800 --> 00:42:25,200 Speaker 1: us the Justice Department is comparing to sue Google as 742 00:42:25,239 --> 00:42:27,719 Speaker 1: soon as next month. The move would cap years of 743 00:42:27,760 --> 00:42:31,000 Speaker 1: work building a case that the Alphabet unit illegally dominates 744 00:42:31,120 --> 00:42:35,000 Speaker 1: the digital advertising market. The Justice Department declined to comment 745 00:42:35,160 --> 00:42:38,160 Speaker 1: on further details ahead of the open. On Wall Street 746 00:42:38,200 --> 00:42:40,560 Speaker 1: futures in the green this warning down futures of seventy 747 00:42:41,080 --> 00:42:44,040 Speaker 1: smp E. Many futures there are of thirteen points and 748 00:42:44,080 --> 00:42:47,560 Speaker 1: and the Aztec futures right now up sixty points. You're 749 00:42:47,600 --> 00:42:49,200 Speaker 1: listening to Bloomberg Daybreak