Speaker 1: Markets, headlines and breaking news twenty four hours a day
Speaker 1: at Bloomberg dot Com, the Bloomberg Business Out, and at
Speaker 1: Bloomberg Quick Take. This is a Bloomberg business Flash. I'm
Speaker 1: Nathan Hager, watching futures move higher ahead of July c
Speaker 1: p I and inflation print that will shape investor expectations
Speaker 1: on the direction of Federal Reserve interest rate hikes. We
Speaker 1: checked the markets every fifteen minutes during the trading day.
Speaker 1: On Bloomberg SMP futures are up ten points, STOUT futures
Speaker 1: up fifty nine. NASDAC futures are higher by forty three
Speaker 1: points ten. Your treasuries up two thirty seconds. The yield
Speaker 1: two point seven six percent yield on the two year
Speaker 1: three point two three percent. Nime x Scrooge down eight
Speaker 1: tenths per center seventy three cents eighty nine dollar seventy
Speaker 1: seven cents. A Barrel comic called his down a tenth
Speaker 1: per center to dollars twenty cents. At eighteen ten ten
Speaker 1: announced the euro one point zero two two three against
Speaker 1: the dollar, British pound one point two zero nine zero.
Speaker 1: The n is at one thirty four point nine two.
Speaker 1: That's a Bloomberg Business Flash. Now here's Michael Barr with
Speaker 1: more on what's going on around the world. Michael Nathan,
Speaker 1: thank you very much. Former President Donald Trump will be
Speaker 1: questioned under oath today and the New York Attorney General's
Speaker 1: long running civil investigation into his real estate dealings. Monday,
Speaker 1: FBI agents searched his Florida state as part of an
Speaker 1: unrelated federal probe. The FDA signed off on the Biden
Speaker 1: administration's plan to stretch out the limited supply of monkey
Speaker 1: pox vaccine. The White Owl said it would make the
Speaker 1: currently four hundred forty thousand available doses into more than
Speaker 1: two million smaller doses. In baseball, the Yankees lost to
Speaker 1: the Mariners one zip thirteen innings, The Mets beat the
Speaker 1: Reds six two the Red Sox Giants, and A's lost
Speaker 1: the Nationals and Orioles. One Global news twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered by
Speaker 1: more than twenty seven hundred journalists analysts more than a
Speaker 1: hundred twenty countries. Michael Barr, this is Bloomberg, John, Michael,
Speaker 1: thank you. It is five forty nine on Wall Street
Speaker 1: and we are live from the Bloomberg Interact. A Broker Studios.
Speaker 1: The US Justice Department preparing to sue Google as soon
Speaker 1: as next month. Let's take a deeper die into this story.
Speaker 1: This morning, were joined live by Alex Webb. The Bloomberg
Speaker 1: Quicktake Tech corresponded, joining us from our London bureau. This
Speaker 1: is an anti trust case and how far back does
Speaker 1: this go? What allegedly did Google do or is doing?
Speaker 1: This really focuses on the the control that Google has
Speaker 1: over multiple stages of the I'm really sorry, I have
Speaker 1: some other audio playing in my ear and it's very
Speaker 1: very hard to hear anything. Um, I'm sorry just to
Speaker 1: say that on UM, I say, this really focuses on
Speaker 1: Google control of three points in the advatasing ecosystem. They
Speaker 1: have the demand side platform, the buy side platform, the
Speaker 1: south side platform, should say, and the AD exchange in
Speaker 1: the middle of that. And the AD exchange has the ability,
Speaker 1: given the control all three of those parts of the
Speaker 1: systems to ultimately determined prices in a way that is
Speaker 1: favorable to Google. Now we don't know whether Google does
Speaker 1: this but ultimately, but other regulators have said they don't
Speaker 1: have visibility into where the Google does this. That in
Speaker 1: and of itself is a problem. The lack of visibility.
Speaker 1: So the way I'm picking that and getting to grips
Speaker 1: with the matter, there is the opportunity to hold Google
Speaker 1: more accountable. Okay, the buying and selling of ads online?
Speaker 1: How much? How much is this worth? What kind of
Speaker 1: money we're talking to hear? This business for Google is
Speaker 1: about a twenty two billion dollar business that is clearly
Speaker 1: not the lion's share of its advertising revenue, which predominantly
Speaker 1: comes from search, but it does control a lot of
Speaker 1: the advertising that happens on the web um outside of
Speaker 1: Google's platforms. So if you go to a newspaper, website,
Speaker 1: or another form of media, you will often find that
Speaker 1: the adverts that are served to you are actually served
Speaker 1: to you by Google. Um it means that Google has
Speaker 1: vast control over the advertising ecosystem around the world Wide Web.
Speaker 1: And advertising is what funds vast tracts of the world
Speaker 1: wide Web. So even if it isn't the lion share
Speaker 1: of Google business, it has vast implications for advertising globally.
Speaker 1: And we should say that a twenty two billion dollar
Speaker 1: business is still bigger than the annual revenue of w
Speaker 1: p P, which is the world's biggest advertising agency. It's
Speaker 1: not chump change. UM. When I turned my computer on,
Speaker 1: Google comes up as the default search engine. Is that
Speaker 1: something separate because I know there's legal action with respect
Speaker 1: to that. How does that figure into this of it all?
Speaker 1: So that that is a separate issue. There is also
Speaker 1: in Europe there has been some attention on the bundling
Speaker 1: that has happened and that Google used to say. You know,
Speaker 1: if for example, you were a newspaper website and you
Speaker 1: wanted to have a function which let people search historical stories,
Speaker 1: well Google offered the opportunity to use its search engine
Speaker 1: to search the stories on your website. But what it
Speaker 1: do is it would say, well, if you're going to
Speaker 1: use that, you also have to use our ads system
Speaker 1: that was deemed anti petitive or considered anti competitive by
Speaker 1: authorities here. And so the approach the Google takes to
Speaker 1: bundling these things to not separating in this instance, the
Speaker 1: demand side and the cell side of the advertising um
Speaker 1: ecosystem is where they get in trouble. And you know,
Speaker 1: if you think about financial services, you know by side
Speaker 1: and sell side in a bank have to be have
Speaker 1: to have strict Chinese walls between them and visibility for
Speaker 1: regulators between the two, So there is a comparability there.
Speaker 1: I love the factle when under pressure big tech company
Speaker 1: will bring up small business like you know it's morm
Speaker 1: and apple pie. What real quok about thirty seconds? What
Speaker 1: is the Google response to others? They, of course, you know,
Speaker 1: deny that that that there is a case here. Um
Speaker 1: they have offered there have been just has been muted
Speaker 1: that they talk about maybe separating some of these things internally.
Speaker 1: The response to that that others are made is that
Speaker 1: ultimately an internal separation doesn't solve the problem because it's
Speaker 1: still Google. So they'll fight this tooth and now. But
Speaker 1: it's it's setting forward movement that the authorities are cracking
Speaker 1: down on us. Bloomberg quick to corresponded Alex feb Alex
Speaker 1: always a pleasure. Thanks and uh we are up to
Speaker 1: five fifty three on Wall Street, Nathan, that we are. John.
Speaker 1: It's time now for our Bloomberg Law Report. Let's get
Speaker 1: to the legal stories we're watching this morning. Here's Bloomberg's
Speaker 1: Jeff Bellinger, the newest member of the Federal Trade Commission,
Speaker 1: is looking to hire a psychologist for his staff to
Speaker 1: focus on the impact of social media platforms on young people.
Speaker 1: A lawsuit filed in a Montana federal court chargers that
Speaker 1: direct TV failed to pay technicians and installers for time
Speaker 1: spent driving company vehicles from their homes to their first
Speaker 1: job sites and back after work. Conservation groups told a
Speaker 1: federal court that gray wolves are at risk because the
Speaker 1: Fish and Wildlife Service has not yet decided whether the
Speaker 1: wolves warrant further protection under the Endangered Species Act. Bloomberg
Speaker 1: Law everything you need, all on one legal research platform,
Speaker 1: including guidance analysis and Bloomberg market intelligence. Find out more
Speaker 1: at Bloomberg law dot com. Right now to another legal
Speaker 1: story we're watching. The Justice Department is charging for current
Speaker 1: and former Louisville police officers in connection with the fatal
Speaker 1: shooting of Brianna Taylor during the search warrant that was
Speaker 1: being executed in Three of those officers weren't even at
Speaker 1: the scene of the shooting. They're accused of lying in
Speaker 1: order to get the warrants to search Brianna Taylor's home
Speaker 1: and trying to cover their tracks later. For more on
Speaker 1: the case, Bloomberg June Grosso speaks with Amy Dillar, a
Speaker 1: professor at the University of Baltimore Law School. We see
Speaker 1: the Justice Department stepped into the George Floyd killing and
Speaker 1: the Ahmad are Very killing. And here you have another
Speaker 1: high profile case where her name became a rallying cry
Speaker 1: for racial justice and activists were on the phone and
Speaker 1: in the streets calling for arrests. Does that motivate the
Speaker 1: Justice Department as well? What I think we can see
Speaker 1: is a Justice Department that is operating with this approach
Speaker 1: to review cases where state prosecutors have made choices about
Speaker 1: how to pursue criminal charges, and to investigate and determine
Speaker 1: whether federal charges are warranted, and taking those potential cases
Speaker 1: before federal grand jury. So I think that we might
Speaker 1: see that the three are a pattern of the Justice
Speaker 1: Department's approach to investigating these cases where people have been
Speaker 1: killed in two of those cases by police officers, and
Speaker 1: the Justice Department may be either dissatisfied or think that
Speaker 1: there's not been a thorough and complete investigation of those cases.
Speaker 1: Justice has been investigating the Louisville Police Department and reviewing
Speaker 1: complaints of the regular use of unreasonable force. But the
Speaker 1: indictments here don't charge either of the officers who shot Taylor.
Speaker 1: They fired a total of thirty two rounds, why aren't
Speaker 1: they being charged? So I actually think that these indictment
Speaker 1: are the kind of indictment that get at systemic problems
Speaker 1: in policing. So what's been indicted here are the officers
Speaker 1: who lied in the affidavit that they submitted to the
Speaker 1: judge to obtain the search warrant to go into Brianna
Speaker 1: Taylor's apartment at all. And not only the lying in
Speaker 1: the affidavit, but subsequent to the police killing Brianna Taylor,
Speaker 1: the Justice Department here has alledge that those officers engaged
Speaker 1: in a sustained cover up and in a sustained effort
Speaker 1: to obstruct justice and lied to multiple federal agencies. You know,
Speaker 1: looking at that conduct by police officers might not be
Speaker 1: as satisfying as the criminal law aspects of who should
Speaker 1: be held a auntable for Brianna Taylor's death. But I
Speaker 1: think if we push back a little, we can see
Speaker 1: that all of these people may be responsible in part
Speaker 1: for Brianna Taylor's death, and the officers who lied in
Speaker 1: that f davit set into motion the chain of events
Speaker 1: that resulted in her death. That's Amy Dillard, a professor
Speaker 1: at the University of Baltimore Law School, speaking with Bloomberg's
Speaker 1: June Gronzo. Catch more of that interview, plus analysis of
Speaker 1: the latest legal news by subscribing to the Bloomberg Law
Speaker 1: Podcast or downloading the show at Bloomberg dot com. Slash
Speaker 1: Podcasts and attorneys can find exceptional legal research and business
Speaker 1: development tools at Bloomberg Law dot com and on the
Speaker 1: Bloomberg terminal at b law Go. Looking ahead to July,
Speaker 1: c p I futures are moving higher. We have SMP
Speaker 1: futures right now up nine points, down futures up sixty two.
Speaker 1: Nasdaq futures are higher by forty points. The tenure Treasury
Speaker 1: is up one thirty second, the yield two point seven
Speaker 1: seven percent yield on the two year three point two
Speaker 1: four per cent. Nime X screwed is down eight tenths
Speaker 1: per cent or seventy four cents at eighty nine dollar
Speaker 1: seventy six cents a barrel, and Bitcoin trading right now
Speaker 1: around twenty three thousand dollars. Bloomberg Daybreak continues. This is
Speaker 1: Bloomberg broadcasting live from the Bloomberg Interactive Broker's studio in
Speaker 1: New York. Bloomberg loving Freedland to Washington d C, Bloomberg
Speaker 1: nine to Boston, Bloomberg one oh six one to San Francisco,
Speaker 1: Bloomberg No. Sixteen to the Country, Sirius XM to A
Speaker 1: one nineteen and around the globe, the Bloomberg Business app
Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's
Speaker 1: five thirty on Wall Street. Good morning. I'm John Tucker.
Speaker 1: I'm Nathan Hacker. We're about four hours away from the
Speaker 1: open of US trading. Let's get you up to date
Speaker 1: on the news you need to know. At this our
Speaker 1: all eyes are on this morning's inflation report. Economists predicted
Speaker 1: deceleration in consumer prices for July after a hotter than
Speaker 1: expected June reading. Sylvia Jablonsky is CEO at Defiant CTFs.
Speaker 1: Even if it surprises us to the downside, which will
Speaker 1: be positive for equities, I think we'll get a little
Speaker 1: rally off of something like that. It doesn't really change
Speaker 1: the picture in the short term in terms of what
Speaker 1: the FAT has to do to get to neutral. Sylvia
Speaker 1: Jablonski of Defined ct F says the recent market pullback
Speaker 1: is presenting opportunity for long term investors, and this morning
Speaker 1: we're learning about the impact of President Biden's Inflation Reduction Act.
Speaker 1: It's said to become law in the coming days, and
Speaker 1: one major bank says the bill will hardly impact prices
Speaker 1: at all. Bloomberg's Renata Young joins US Now Live with
Speaker 1: that story. Good morning Rena, Good morning John. The Inflation
Speaker 1: Reduction Act is estimated to reduce the federal budget deficit
Speaker 1: by about three hundred billion dollars over the next decade,
Speaker 1: but JP Morgan Chase economists say the law will have
Speaker 1: almost no effect on the price growth that's currently running
Speaker 1: at the fastest pace in four decades. The nonpartisan Congressional
Speaker 1: Budget Office, the Committee for a Responsible Federal Budget, and
Speaker 1: the in Warden Budget Model all agree that the legislation
Speaker 1: will have a minimal influence on inflation. Live in New York.
Speaker 1: I'm gonna need a young Bloomberg Daybreak. Okay, we need
Speaker 1: to thanks. Let's talk corporate earnings now. Walt Disney has
Speaker 1: set to release its quarterly results after the market's closed today.
Speaker 1: Bloomberg's Jeff Bellinger has a preview. Bloomberg Intelligence says the
Speaker 1: entertainment giant appears to be firing on almost all cylinders.
Speaker 1: Disney Plus is doing well. The consensus is that the
Speaker 1: streaming video service added nine point seven million subscribers during
Speaker 1: the quarter. The loss of the streaming rights to Indian
Speaker 1: Premier League Cricket could force Disney to cut it subscriber
Speaker 1: targets demanded. Theme Parks has been strong that division may
Speaker 1: report an operating profit that exceeds consensus. Jeff Bellinger, Bloomberg Debris.
Speaker 1: All right, thanks Jeff. Earnings in the crypto space also
Speaker 1: disappointing today. Coin Base posted a records a record second
Speaker 1: quarter loss and lower than expected revenue. And we're learning
Speaker 1: this morning, John about another share sale by Elon Muski.
Speaker 1: Has On the had done another nearly seven billion dollars
Speaker 1: in Tesla stock, according to regulatory filings. The sale comes
Speaker 1: as must faces legal challenges in his bid to pull
Speaker 1: out of a deal to buy Twitter. SMP futures ahead
Speaker 1: of the CPI report up ten points, STOW futures up
Speaker 1: sixty two Nastack futures are higher by forty four points.
Speaker 1: The ten your treasury is up three thirty seconds. The
Speaker 1: yield two point seven six percent yield on the two
Speaker 1: year three point to three percent Bitcoin about twenty three
Speaker 1: thousand dollars straight ahead your latest local headlines into check
Speaker 1: of sports. This is Bloomberg and that brings us to
Speaker 1: five thirty three on Wall Street. Time to bring in
Speaker 1: Michael Barr with more on what else is going on
Speaker 1: in New York and around the world. John, thank you
Speaker 1: very much, Sarah. Deadly bus crash on the New Jersey
Speaker 1: turn blank last nine. Authorities say a double decker bus
Speaker 1: transporting passengers from New York to Philadelphia overturned near Woodbridge.
Speaker 1: Sergeant Lawrence Peel of the State Police spoke to reporters.
Speaker 1: We are confirming right now one fatality and five series
Speaker 1: injuries as a result of the collision. The bus also
Speaker 1: hit a pickup truck. Former President Donald Trump will be
Speaker 1: questioned on their oath today and the New York Attorney
Speaker 1: General's long running civil investigation into his dealings as a
Speaker 1: real estate mogul. Trump confirmed in in a post on
Speaker 1: his truth social account. The White House as President Joe
Speaker 1: Biden and aids were not given a heads up or
Speaker 1: briefed on the FBI raid on former President Trump's Mara
Speaker 1: Lago estate and learned about the search from public reports.
Speaker 1: White House Press Secretary Karine Jean Pierre. President Biden has
Speaker 1: been unequivocal since the campaign. He believes in the rule
Speaker 1: of law, in the independence of Justice Department of the
Speaker 1: Justice Department Investigations spokesperson Karine Jean Pierre. Primary elections were
Speaker 1: held in four states. Tim Michaels, who was backed by
Speaker 1: former President Trump, won the Wisconsin GOP gubernatorial nomination with
Speaker 1: forty of the vote over former Lieutenant Governor Rebecca Cleifish,
Speaker 1: who was endorsed by former VP Mike Pence. Michaels thanked
Speaker 1: his supporters late last night. Since I was a young
Speaker 1: boy where I helped farmers bail hay and pick rocks,
Speaker 1: I know how to do a hard day's work, and
Speaker 1: the hard working people in Wisconsin to serve to have
Speaker 1: a leader who understands how hard they're working, and we'll
Speaker 1: lead by example. Tim Michaels will face Democratic Governor Tony
Speaker 1: Evers in the general election. In Connecticut, another Trump and
Speaker 1: Doris candidated one her go OP primary, We Are A
Speaker 1: Levy won the U. S. Senate primary with more than
Speaker 1: fifty percent of the vote in a three way race.
Speaker 1: Levy will face Democratic incumbent Richard Bloomenfell, who ran unopposed
Speaker 1: in District four Republican Jamie Stevenson beat Michael Goldstein with
Speaker 1: more than sixty percent of the vote for a US
Speaker 1: House seat. Stevenson will run against Democratic incumbent Jim Himes.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quick Take, powered by more than twenty seven
Speaker 1: hundred journalists and analysts more than a hundred twenty countries.
Speaker 1: I'm Michael bar This is Bloomberg, John Michael, thank you
Speaker 1: Wall Street. Time for the Bloombird sports update. And here's John. Thanks.
Speaker 1: Another one nothing lost, so the Yankees after this past
Speaker 1: Saturday in St. Louis. Last night in Seattle, Mariners won
Speaker 1: one nothing in thirteen in things neither team could score
Speaker 1: despite the rule now or the extra things to begin
Speaker 1: with the runner at second base. In both the tenth
Speaker 1: and eleven the Yanks killed their scoring chance. First Andrew
Speaker 1: ben Intendi got picked off, then Jose Travino got thrown
Speaker 1: out between second and third. Aaron Brune was asked about
Speaker 1: base running blunderstakes. You know, obviously, you know We're runs
Speaker 1: are are really tough to come by. Um, you know
Speaker 1: it's been one of the real strength list team. So
Speaker 1: I don't want to lose our progressiveness. But but obviously
Speaker 1: we've gotta be a little smarter. Aaron, there's one with
Speaker 1: a couple of hits in the thirteenth thought Jonathan Mowiss
Speaker 1: to go. The Mets, with their six two win over
Speaker 1: the Reds at City Field, now have a better record
Speaker 1: than the Yankees. Carlos Carrasco with his thirteen twin of
Speaker 1: the year home runs for Francisco, then Door and Jeff
Speaker 1: McNeil mess had won fourteen to the last sixteen. In
Speaker 1: the last four wins, there's only allowed a total of
Speaker 1: seven runs. They still need the Braves by seven games.
Speaker 1: Rangers announced a new captain, twenty eight year old hard
Speaker 1: hitting defenseman Jacob Truva, getting ready for his fourth season
Speaker 1: with the Blue Stretch. Rangers have been without the captain
Speaker 1: since Ryan mcdonnald left in two pousand and eighteen. And
Speaker 1: golf camp Smith, the Aussie who won the Open Championship
Speaker 1: last month, latest to join the new Live Tour. Serena
Speaker 1: Williams will retire after the upcoming US Open in New York.
Speaker 1: She's one twenty three majors. One side of a rector
Speaker 1: that really needs an asterisk because Margaret Court won many
Speaker 1: of hers at a time when pros didn't even play
Speaker 1: in the major. Serena is the goat of women's tennis,
Speaker 1: and she said she's ready to move on to new things.
Speaker 1: John Stash Howard Bloomberg Sports done all right, John, thanks
Speaker 1: a lot thirty seven on Wall Street, and it's timed
Speaker 1: out for the Tri State Business Report. For that, we're
Speaker 1: joined by Bloomberg, said Cory. Chipotle Mexican grill has agreed
Speaker 1: to pay twenty million dollars to an estimated thirteen thousand
Speaker 1: current and former employees of its restaurants in New York City.
Speaker 1: The money would settle a claim that the chain repeatedly
Speaker 1: violated laws governing sick leave and scheduling. The fast casual
Speaker 1: chain will also pay a million dollar fine. The pandemic
Speaker 1: era freeze on student debt payments has improved credit scores
Speaker 1: for bar wars. That's according to the Federal Reserve Bank
Speaker 1: of New York, about thirty million people saw improvements in
Speaker 1: their risk profile, with the biggest gains going to those
Speaker 1: who were delinquent before the pandemic. Atlantic City casino dealers
Speaker 1: opposed to smoking indoors, rejecting designated outdoors smoking areas employees
Speaker 1: could opt out of staffing. The leader of a group
Speaker 1: of casino workers says the opt out suggestion is not
Speaker 1: the solution to protect workers and customers that your Bloomberg
Speaker 1: tries to day Business report I mid Corey, all right,
Speaker 1: thanks at on Wall Street. Bloomberg Radio is on the
Speaker 1: air from San Francisco to New York, London to Hong Kong,
Speaker 1: and let's check in now where their global news team
Speaker 1: for some of the top stories heard on our three
Speaker 1: hundred affiliate radio stations around the world. I'm Steve Podas
Speaker 1: kN to Los Angeles. We're talking about the Sweet Green
Speaker 1: Salad chain slashing its revenue forecast for the year. On
Speaker 1: Corney tannahoan cafe bian Omaha. Inflation is wreaking havoc on breakfast,
Speaker 1: with egg prices up almost in a year. I'm Jinas
Speaker 1: Servetti in for w BBM in Chicago. It looks like
Speaker 1: Big ten football fans will have a few options for
Speaker 1: watching college sports next year. I Stephen Carol on Bloomberg
Speaker 1: d a B Digital Radio in London. We've been reporting
Speaker 1: on warnings of blackouts this winter in the UK amid
Speaker 1: an energy supply crunch I'm ed Cory on w T
Speaker 1: A M in Cleveland. I'm reporting Acron's Stigna Jewels is
Speaker 1: buying Blue Nile Eddiot's five thirty nine on Wall Street.
Speaker 1: The following is an editorial from Bloomberg Opinion. This editorial
Speaker 1: was written by the Bloomberg Editorial Board. Oh what portents
Speaker 1: are these demands? A character in Shakespeare's Henry the Fourth.
Speaker 1: Former President Donald Trump may well be wonder the same
Speaker 1: after FBI agents searched his home at Mara Lago on Monday.
Speaker 1: The rest of the country could use some answers to
Speaker 1: This is a fateful moment for US democracy. Whatever happens
Speaker 1: next and wherever the investigation leads, there can be no
Speaker 1: unwringing this bell. So it's essential that Americans get a sober,
Speaker 1: transparent explanation for these latest developments. The sheer amount of
Speaker 1: unpunished wrongdoing that occurred under the Trump administration has many
Speaker 1: people cheering this extraordinary intervention, but it is nothing to celebrate.
Speaker 1: Trump himself has tested the American system in ways unseen
Speaker 1: since the nineteenth century. It is critical that the pursuit
Speaker 1: of justice does not merely compound the damage. The sedatorial
Speaker 1: was written by the Bloomberg Editorial Board. For more Bloomberg opinion,
Speaker 1: please go to Bloomberg dot Com, Slash Opinion or p
Speaker 1: I n go on the Bloomberg Terminal. These has been
Speaker 1: Bloomberg Opinion and Bloomberg Opinion editorials can be heard every weekday.
Speaker 1: At this time, terminal customers can read more ad O,
Speaker 1: p I n go and the Bloomberg Weather for it.
Speaker 1: Today clouds giving me a partial sawn, chance of a
Speaker 1: shower or thunderstorm. The height today in the mid eighties, showers,
Speaker 1: maybe a flunderstorm Tonight, lows in the mid seventies. Tomorrow
Speaker 1: chance of morning showers, then partly Sunday. Markets headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business at and at Bloomberg Quick Tape. This
Speaker 1: is a Bloomberg Business Lash. Good morning on Nathan Hagar.
Speaker 1: Futures are moving higher this morning ahead of US inflation
Speaker 1: data that will shape investor expectations for further Federal Reserve
Speaker 1: interest rate hikes. We check the markets every fifteen minutes
Speaker 1: during the trading day on Bloomberg s and p few
Speaker 1: Cheries are up twelve points. Dal Future is up seventy five.
Speaker 1: NASTAC futures higher by fifty three points. The acts in
Speaker 1: Germany is up three tenths per cent, The CAT in
Speaker 1: Paris is hired by a tenth percent. The tenure Treasury
Speaker 1: is up three thirty seconds. The yield two point seven
Speaker 1: six percent yield on the two year three point to
Speaker 1: three percent. Name x screwed is down two tenths per
Speaker 1: cent or twenty cents and ninety dollars thirty one cents,
Speaker 1: and Beryl comex skulled down two tenths per cent or
Speaker 1: three dollars ten cents eighteen o nine twenty ounce. The
Speaker 1: Euro one point zero two two three against the dollar
Speaker 1: British pound one point two zero nine three. The end
Speaker 1: is at one thirty four point nine four. Of course,
Speaker 1: all lies out for the July Consumer Price Index at
Speaker 1: eight thirty Wall Street time. Before that, we get NBA
Speaker 1: mortgage applications at seven, wholesale inventories for June come out
Speaker 1: of ten, and Walt Disney headlines the list of companies
Speaker 1: reporting earnings today. That's a Bloomberg business flash. Now here's
Speaker 1: Michael Barr with more on what's going on around the world.
Speaker 1: Good morning, Michael, Good morning, Nathan Donald Trump's candidate of
Speaker 1: choice as one Wisconsin's Republican nomination to take on Democratic
Speaker 1: Governor Tony Evers. Businessman Tim Michaels defeated former Lieutenant Governor
Speaker 1: Rebecca Cleefish, backed by former VP Mike Pence. Former President
Speaker 1: Trump will be questioned under oath today and the New
Speaker 1: York Attorney General's long running civil investigation into his real
Speaker 1: estate dealings. In baseball, the Yankees lost to the Mariners
Speaker 1: one zip and thirteen innings. The Mats beat the Red
Speaker 1: six two. The Red Sox lost to the Braves nine
Speaker 1: seven and next reunings. The Nationals and Orioles won the
Speaker 1: Giants and A's lost. Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty seven under journalists and analyist more than a
Speaker 1: hundred twenty countries. Michael barn this is Bloomberg, John, Michael,
Speaker 1: thank you. Five twenty on Wall Street. We are live
Speaker 1: for the Bloomberger interacted broker's studios. This is Bloomberg Daybreak
Speaker 1: by the US Inflation Data TAY will shape the investor
Speaker 1: expectations for Federal Reserve interest rate policy. The path ahead
Speaker 1: let's get a preview today's consumer price index with Bloomberg's
Speaker 1: Mike McKee. Is this going to be the peak? That's
Speaker 1: the question? Yeah, Um, this maybe the peak for headline inflation.
Speaker 1: The core is expected to rise, strip out food and energy.
Speaker 1: Core is expected to rise because there's still a number
Speaker 1: of areas that are rising in price, especially real estate
Speaker 1: rent as it's measured is still going up and will
Speaker 1: be for some months, so that puts pressure on the core. Also,
Speaker 1: base effects inflation was very low at this time last
Speaker 1: year comparatively, so it just makes it go up a
Speaker 1: little higher. But if Wall Street sees progress, that may
Speaker 1: be good enough. Okay, so that they'll be looking for
Speaker 1: the trajectory. And what do we need to hear from J.
Speaker 1: Powell and company at the Federal Reserve? What specifically are
Speaker 1: they're going to be looking for this report. They're gonna
Speaker 1: be looking for progress basically. That That was J Pal's
Speaker 1: comment on the day they last raised rates, was that
Speaker 1: they're looking for significant progress that proves to them or
Speaker 1: shows to them that inflation is declining. We will get
Speaker 1: probably a lower headline number, as I mentioned, because gasoline
Speaker 1: prices have been going down, but they want to see
Speaker 1: more than that, and they want to see it sustained
Speaker 1: for a couple of months. So we'll see what happens today,
Speaker 1: and then we get another CPI report just before their
Speaker 1: next meeting, So what we hear from the Fed will
Speaker 1: probably be more nuanced than declarative right after this number.
Speaker 1: To what degree does policy actually control the rate of
Speaker 1: inflation with all this stuff? That's a good question in
Speaker 1: this circumstance because so much was based on supply chain problems. Uh,
Speaker 1: the fact that gasoline is coming down has nothing to
Speaker 1: do with the Fed. The housing market is going to
Speaker 1: be cooling. We are already seeing sales cool and prices ease,
Speaker 1: but that takes a while to get into the overall numbers. Uh.
Speaker 1: That's an area where the Fed's having an impact. Um.
Speaker 1: Take cars, the Fed's higher interest rates are making it
Speaker 1: more expensive to buy a car, which should cool demand,
Speaker 1: but we're also seeing prices held up by the fact
Speaker 1: that there aren't a lot of cars to buy because
Speaker 1: they still have supply chain problems. So it's a little
Speaker 1: more difficult to separate out what the FED is able
Speaker 1: to accomplish from what is affected by external factors. Right now,
Speaker 1: they have that dual mandate where you know you have
Speaker 1: to have full employment and try to control price pressures
Speaker 1: or at least price stability. So does that mean they
Speaker 1: have to torpedo employment uh to get prices down because
Speaker 1: the wages are a big component of inflation. Well, their
Speaker 1: argument is they don't. And the reason is we have
Speaker 1: so many job openings. If people lose their jobs because
Speaker 1: demand falls for some products, they could get another job.
Speaker 1: Historically that hasn't happened. But historically we haven't had this
Speaker 1: many job openings, so you'll see a lot of people
Speaker 1: argue that they do have to torpedo the unemployment rate,
Speaker 1: send it higher to get inflation down. Fed still holding
Speaker 1: onto the idea that they don't have to really affect
Speaker 1: employment all that much to bring inflation down, and this
Speaker 1: is an argument that won't be settled for many months.
Speaker 1: How does worker productivity figure into all of this, Well,
Speaker 1: the problem for a lot of companies is productivity has
Speaker 1: been falling, So if you're going to keep up with demand,
Speaker 1: you need more people, and we have had a labor
Speaker 1: shortage that pushes up wages. If productivity were to increase
Speaker 1: and companies did spend money, Remember during the pandemic to
Speaker 1: try to make it easier to get by with fewer
Speaker 1: employees because it couldn't get them into the office. Uh.
Speaker 1: If that starts to have an impact, then prices that
Speaker 1: should also be deflationary. Prices should fall a little bit.
Speaker 1: But so far there's no sign of that. The numbers
Speaker 1: yesterday still show major declines in productivity. Is legislation in
Speaker 1: Washington fiscal policy is that having any impact. No, it
Speaker 1: will over a longer run period, but it will be
Speaker 1: so small you really won't notice that. The issue is
Speaker 1: that the money that they're paying out compared to the
Speaker 1: overall size of the economy isn't going to be that great,
Speaker 1: not like it was when they were handing out stimulus checks.
Speaker 1: And also it's going to be spent over a number
Speaker 1: of years. Where you might see some benefit is in
Speaker 1: the Chips Act, the Semiconductor Support Act, and in some
Speaker 1: of the infrastructure spending that that bill was passed a
Speaker 1: year or so ago, and that money just hinting the economy.
Speaker 1: But if those help improve productivity, then that would be
Speaker 1: a weight on prices. What's the betting right now for
Speaker 1: the next meeting from the Fed in terms of the
Speaker 1: rate rise markets are covering sort of in between fifty
Speaker 1: and seventy five, and you're going to see a lot
Speaker 1: of volatility between now and then. So depending on what
Speaker 1: we see today, we may see that go towards seventy
Speaker 1: five or hang around fifty. But I wouldn't put much
Speaker 1: stock in it unless you have to trade it today
Speaker 1: because by the time the Fed meets on September one,
Speaker 1: who have a lot more data that will influence their views.
Speaker 1: The CPI to keep it here. Mike McKee appreciated you're
Speaker 1: listening to Bloomberg day Break ahead of the market open.
Speaker 1: We have down futures of sixty five, the SMP futures
Speaker 1: up eleven, and then say futures right now forty eight
Speaker 1: points higher. This is day Break Bloomberg, brought you by
Speaker 1: a Peapack Private Wealth Management. Pepack Private Wealth Management knows
Speaker 1: that a portfolio is more than a collection of assets.
Speaker 1: It's a path to your future. Visit Peapack Private dot Com.
Speaker 1: Begin your financial legacy today. And it's not five oh
Speaker 1: seven on Wall Street. Time to bring in Michael Barr
Speaker 1: with more on what else is going on to New
Speaker 1: York and around the world. John, thank you very much. Sir.
Speaker 1: There was a deadly bus crash on the New Jersey
Speaker 1: turn plank last night. Authorities say one person was killed
Speaker 1: and five people were seriously injured when a passenger bus
Speaker 1: from New York to Philadelphia overturned near Woodbridge. Sergeant Lawrence
Speaker 1: Peel of the State Police preliminary information indicates that at
Speaker 1: a proximately six fifty three pm, a coach double decker
Speaker 1: bus overturn and came to rest on the entrance ramp
Speaker 1: to the service area. Sergeant Peels says the bus also
Speaker 1: struck a pickup truck. Former President Donald Trump says he
Speaker 1: will be questioned under oath today in the New York
Speaker 1: Attorney General's long running civil investigation into his real estate dealings.
Speaker 1: The New York civil investigation involves allegations that Trump's company
Speaker 1: misstated the value of assets and misled lenders and tax authorities.
Speaker 1: FBI agents recently searched is Maria Lago estate in Florida
Speaker 1: as part of an unrelated federal probe into whether he
Speaker 1: took classified records when he left the White House. Trump
Speaker 1: supporters are reacting to the search. Republican Senator Ted Cruz
Speaker 1: of Texas this raises serious questions again about the Biden
Speaker 1: administration politicizing and weaponizing law enforcement. I believe Congress should
Speaker 1: hold hearings, we should have subpoenas. Senator Cruz blamed politics
Speaker 1: for the Mara Lago search. White House Press Secretary Karine
Speaker 1: Jean Pierre said President Biden respects the d j's independence.
Speaker 1: The President of the White House learned about this FBI
Speaker 1: starge from public reports. We learned just like the American
Speaker 1: public did yesterday, and we did not have advanced notice
Speaker 1: of this activity. Karina Jean Pierre also urged China to
Speaker 1: reconsider escalating aggression, calling it provocative and irresponsible. Meanwhile, China
Speaker 1: says it will end Taiwan military drills and will plan
Speaker 1: regular patrols. Businessman Tim Michaels, who was endorsed by Donald
Speaker 1: Trump as won the GOP primary for Wisconsin governor. Michaels
Speaker 1: defeated former Lieutenant Governor Rebecca Cleefish, who had the backing
Speaker 1: of establishment Republicans and former VP Mike Penns. Michaels will
Speaker 1: face current Democratic Governor Tony Evers in the fall. In
Speaker 1: Connecticut's District four GOP primary, Jamie Stevenson beat Michael Goldstein
Speaker 1: with more than sixty percent of the vote for a
Speaker 1: US House eat Stevenson Will against Democratic incumbent Jim Himes.
Speaker 1: Primaries were also held in Vermont. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than seven hundred journalists analysts more than
Speaker 1: a hundred twenty countries. I'm Michael bar This is Bloomberg,
Speaker 1: John Michael, thank you, and it's coming up on five
Speaker 1: and ten of Wall Street, tied down to the Bloomberg
Speaker 1: Sports Update. Good morning, John Stennshower, all right, good morning John.
Speaker 1: Seattle Mariners manager Scott's Service called last night's game one
Speaker 1: of the best he's ever seen. It's certainly had great pitching.
Speaker 1: The first game of the Majors to be scoreless in
Speaker 1: the thirteenth innings since they put in the new rule
Speaker 1: where extra innings begin with a runner at second base.
Speaker 1: After four hours, finally a run was scored. Why is
Speaker 1: it gets ready? Here's the stretch and now the O
Speaker 1: two on the way to turn swinging a line drive
Speaker 1: basin right now? Score off wise nothing Gyro the coing
Speaker 1: Yankees wasting a Garrett Cole Jim against the same Seattle
Speaker 1: team that scored six runs off him in the first
Speaker 1: inning of the game. Last week in New York, cole
Speaker 1: battle with Luis Castillo, who made his third start in
Speaker 1: the last four weeks against the Yanks. The first one
Speaker 1: was while he was with the Reds, and he dominated
Speaker 1: them and all three of those starts. Speaking of the Reds,
Speaker 1: their bats again quiet and City Field Mets one six
Speaker 1: to two home runs for Francisco Lindor and Jeff McNeil.
Speaker 1: Thirteenth win of the year for Carlos Carrasco. He's tied
Speaker 1: for the National League League. The Mets have won fourteen
Speaker 1: of their last sixteen. Only one of those victories was
Speaker 1: by one run, another by two. The other twelve wins
Speaker 1: all by at least three runs. Atlanta one in eleven
Speaker 1: innings in Boston, who remained seven games behind. When Jets
Speaker 1: Tackla McKay Beckton limped off the practice field Monday, coach
Speaker 1: Rob Salah at first did not think it was a
Speaker 1: serious knee injury. Then came the m r I that
Speaker 1: revealed it was, and the news yesterday it's season ending.
Speaker 1: Beckton hurt the same knee and last year's season opener
Speaker 1: miss twenty one as well. Jets drafted Beckham with the
Speaker 1: eleventh overall pick in Johns Dashawart Bloomberg Sports storm. All right,
Speaker 1: thanks John, And ahead of the cash show up on
Speaker 1: Wall Street, we're seeing down futures up seventy one points.
Speaker 1: The smp Eman futures they're up twelve points right now,
Speaker 1: Nasday futures up. And you're listening to Bloomberg Dame Break
Speaker 1: and Bloomberg Weather from meteorologist Rob Caroline. Cloud's giving weight
Speaker 1: to partial sun today. There is the chance of a
Speaker 1: shower or thunderstorm. Hi today showers, maybe a thunderstorm Tonight
Speaker 1: Loaves in the mid seventies, Live from the Bloomberg Interactive
Speaker 1: Broker Studios. This is Bloomberg day Break for Wednesday, August two,
Speaker 1: coming up this hour. Trader is ready for the latest
Speaker 1: reading on inflation. Elon Musk sells more Testla shares to
Speaker 1: prepare for the possible purchase of Twitter. The d o
Speaker 1: J is poised to sue Google over its digital ad dominance,
Speaker 1: and coin Bass slides after an earnings miss and dim forecast.
Speaker 1: A bus accident in New Jersey has left at least
Speaker 1: one person beat lust. Former President Trump gives his deposition
Speaker 1: today in New York Michael Barner. More Ahead, I'm John
Speaker 1: stash owns boards. Another win for the Red Hot Mats.
Speaker 1: The Yankees lost in Seattle. Wandon update in thirteen and easy,
Speaker 1: that's all strained Ahead on Bloomberg Daybreak on Bloomberg eleven three,
Speaker 1: on New York Bloomberg nine one, Washington, d C, Bloomberg
Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco
Speaker 1: syrius x AM one nineteen and around the world on
Speaker 1: Bloomberg Radio dot com and via the Bloomberg Business Ad.
Speaker 1: Good morning, I'm John Tucker, Anna, Nathan Hagar. Futures are
Speaker 1: on the rise this morning. It's coming up to five
Speaker 1: oh one on Wall Street. We checked the markets every
Speaker 1: fifteen minutes during the training day. On Bloomberg, s and
Speaker 1: P Futures up twelve point, Staff futures up seventy four.
Speaker 1: Nastack Future is higher by fifty four points. The tenure
Speaker 1: Treasury is up to thirty seconds. The yield two point
Speaker 1: seven six percent yield on the two year three point
Speaker 1: two percent. NIMEX screwed is down six tenths percent, down
Speaker 1: fifty four cents at eighty nine nine cents a barrel
Speaker 1: comes gold is down two tenths per cent or three
Speaker 1: dollars eighty cents at eighteen o eight fifty. Announced, the
Speaker 1: euro one point zero to two two against the dollar,
Speaker 1: and the en is at one thirty four point nine
Speaker 1: seven John and they all eyes are. In this morning's
Speaker 1: inflation report, economists predicted deceleration and consumer prices. They predict
Speaker 1: prices for July of rose at an annual rate of
Speaker 1: eight point seven percent. Let's get more from Bloomberg's Michael
Speaker 1: McKee headline. Inflation is forecast to have eased in July,
Speaker 1: in large part because oil prices fell, bringing down the
Speaker 1: cost of gasoline. While perhaps helpful, it won't have much
Speaker 1: influence on FED thinking. That's because core inflation, stripping out
Speaker 1: energy and food, is expected to post another big increase.
Speaker 1: Rents in particular are seen accelerating, which boosts the home
Speaker 1: price component of cp I well. Many commodities have declined
Speaker 1: in price on futures markets, those jobs likely haven't worked
Speaker 1: their way into retail price. It's as yet also. Another
Speaker 1: big drop in productivity during the second quarter means companies
Speaker 1: aren't recouping all their costs, including labor costs, which rose
Speaker 1: at a double digit pace from April through June. Michael
Speaker 1: McKee Bloomberg Daybreak. Okay, Mike. Thanks. This morning, we're learning
Speaker 1: about the impact of President Biden's Inflation Reduction Act. It's
Speaker 1: set to become law in the coming days, and one
Speaker 1: major bank says the bill will hardly impact prices at all.
Speaker 1: Bloomberg's Rinita Young joins us Live with that story. Good morning, Granina,
Speaker 1: Good morning Nathan. The Inflation Reduction Act is estimated to
Speaker 1: reduce the federal budget deficit by about three hundred billion
Speaker 1: dollars over the next decade, but JP Morgan Chase economists
Speaker 1: say the law will have almost no effect on the
Speaker 1: price growth that's currently running at the fastest pace in
Speaker 1: four decades. The nonpartisan Congressional Budget Office, the Committee for
Speaker 1: a Responsible Federal Budget, and the pen Wharton Budget Model
Speaker 1: all agree that the legislation will have a minimal influence
Speaker 1: on inflation. Live in New York, I'm Gonnita Young, Bloomberg
Speaker 1: day Break, Nita. Thanks. Meantime, we're learning the Inflation Reduction
Speaker 1: Act will have tax implications for corporations and middle class Americans.
Speaker 1: Amy Morris has details from our Bloomberg Newsroom in Washington.
Speaker 1: Analysis by the Congressional Joint Committee on Taxation finds that
Speaker 1: corporations will pay nearly two hundred ninety six billion dollars
Speaker 1: more in federal taxes over the next decade, much of
Speaker 1: that from a new corporate minimum tax requiring billion dollar
Speaker 1: companies to pay a fifteen percent minimum. Households making less
Speaker 1: than one hundred thousand dollars will see net tax cuts through,
Speaker 1: mostly through Affordable Care Act premium subsidies. Taxes for middle
Speaker 1: and low income households are largely unchanged. The bill is
Speaker 1: set for a vote in the House on Friday. In Washington,
Speaker 1: I'm Amy Moore as Bloomberg Day Break. All right, Amy,
Speaker 1: thank you. Let's turn our attention overseas. Now. Europe is
Speaker 1: in the midst of a heat wave and it's evaporating
Speaker 1: the region's rivers. A major waterway in Germany's drying up,
Speaker 1: and that could have major economic implications. Bloomberg's You and
Speaker 1: Potts joins us live from London with the latest. Good morning,
Speaker 1: Good morning, Nathan and John. The river Ryne is set
Speaker 1: to become effectively impossible to shipping later this week. The
Speaker 1: German government says the water label drop below sixteen inches
Speaker 1: deep on Friday at a key point west of Frankfurt's
Speaker 1: As the region's drought continues. At that level, vessels that
Speaker 1: haul everything from diesel to coal will be unable to
Speaker 1: use the river. It's just another problem in Europe's worst
Speaker 1: energy crisis in decades. In London, I'm you and Potspoon
Speaker 1: back day break you and thanks. Let's turn into the
Speaker 1: markets now. That's where earnings are weighing on semiconductor stocks.
Speaker 1: Micron Technology the latest shipmaker to Warner of slowing demand.
Speaker 1: We You've heard similar sentiment from Nvidia, Intel and a
Speaker 1: m D in recent days, and that caused that you
Speaker 1: Philadelphia Semiconductor Index to form more than four percent yesterday.
Speaker 1: And earnings in the crypto space are also disappointing. Giant
Speaker 1: shares of coin base are down six and a half
Speaker 1: percent this morning after posting a record second quarter loss
Speaker 1: and lower than expected revenue. Coin based chief operating officer
Speaker 1: Emily Choi discussed the results of for ex Emily Chang.
Speaker 1: I think it was a rough quarter for most companies
Speaker 1: in the crypto space. We obviously had some big episodic
Speaker 1: events that happened during the quarter, and so some of
Speaker 1: those asset prices shrunk, which then impacts things like the
Speaker 1: assets on platform and other numbers. Coin by CEO Emily Choice,
Speaker 1: speaking on Bloomberg Technology, Catch our daily Bloomberg Technology podcast
Speaker 1: Daily wherever you get your podcasts, and sticking with earnings.
Speaker 1: Disney set to reports that day after the closing bill
Speaker 1: Bloomberg Intelligence as the company expect to see subscriber growth
Speaker 1: for its Disney Plus streaming service. But the big question
Speaker 1: is whether management will walk back future subscriber guidance if
Speaker 1: you're losing streaming rights from the for the Indian Premium League. Well,
Speaker 1: we're learning this morning about another share sale by Elon Musk.
Speaker 1: John he has sold another nearly seven billion dollars in
Speaker 1: Tesla stock, according to regulatory filings. The sale comes as
Speaker 1: Musk faces legal challenges in his bid to pull out
Speaker 1: of a deal to buy Twitter. The Bloomberg Global Business
Speaker 1: Editor Emma O'Brien has more on the sale. Looks like
Speaker 1: he's looking to cash in on a substand till amount
Speaker 1: of stock while it is at a decent level around
Speaker 1: eight hundred and fifty dollars a share right now, up
Speaker 1: from those lows reached in May just above six hundred dollars.
Speaker 1: Bloomberg's m O'Brien says Musk could sell even more Tesla
Speaker 1: shares if he's forced to buy Twitter. Right now, Tesla's
Speaker 1: up two point eight percent in the pre market and
Speaker 1: some big news from the search giant Google. Sources tell
Speaker 1: us the Justice Department is comparing to sue Google as
Speaker 1: soon as next month. The move would cap years of
Speaker 1: work building a case that the Alphabet unit illegally dominates
Speaker 1: the digital advertising market. The Justice Department declined to comment
Speaker 1: on further details ahead of the open. On Wall Street
Speaker 1: futures in the green this warning down futures of seventy
Speaker 1: smp E. Many futures there are of thirteen points and
Speaker 1: and the Aztec futures right now up sixty points. You're
Speaker 1: listening to Bloomberg Daybreak