1 00:00:01,480 --> 00:00:04,960 Speaker 1: Live from the Bloomberg Interactive Brooker Studios is Bloomberg day 2 00:00:04,960 --> 00:00:08,720 Speaker 1: Break for Thursday, July fourteen two. Coming up this hour, 3 00:00:09,039 --> 00:00:12,320 Speaker 1: Speculation grows about a one percent rate hike by the Fed. 4 00:00:12,440 --> 00:00:15,720 Speaker 1: This month. Wall Street braces for another record on inflation. 5 00:00:16,079 --> 00:00:19,400 Speaker 1: Bank earnings began with JP Morgan Chase and Morgan Stanley 6 00:00:19,440 --> 00:00:23,200 Speaker 1: recording this morning, and President Biden boost Israel's military as 7 00:00:23,200 --> 00:00:26,680 Speaker 1: his Middle Eastern trip continues. Two more shark attacks took 8 00:00:26,680 --> 00:00:29,639 Speaker 1: place within hours off Long Island. Plus the New York 9 00:00:29,640 --> 00:00:33,560 Speaker 1: City Council demands Mayor Adams restore school budgets. I'm Michael 10 00:00:33,560 --> 00:00:36,720 Speaker 1: barn More Ahead, johns fash Owen Sports, the Yankees care 11 00:00:36,800 --> 00:00:39,279 Speaker 1: for barring to fit the Red the Mets one in Atlanta, 12 00:00:39,360 --> 00:00:45,000 Speaker 1: The Open Championship golf underway in Scotland. That's all s 13 00:00:45,000 --> 00:00:48,639 Speaker 1: Train ahead on Bloomberg day Break on Bloomberg eleven, Free 14 00:00:48,680 --> 00:00:53,080 Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one, 15 00:00:53,120 --> 00:00:57,639 Speaker 1: Those six one, Boston, Bloomberg nine sixties, San Francisco, Syrius 16 00:00:57,760 --> 00:01:00,880 Speaker 1: x M one nineteen and around the world on Bloomberg 17 00:01:00,920 --> 00:01:08,000 Speaker 1: Radio dot Com and via The Bloomberg Business Up. Good morning, 18 00:01:08,040 --> 00:01:11,360 Speaker 1: I'm Nathan Hager and I'm Cameron Moscow. US Dock Index 19 00:01:11,440 --> 00:01:14,040 Speaker 1: futures are following this morning. We're coming up to five 20 00:01:14,040 --> 00:01:15,880 Speaker 1: oh one on Wall Street, and we checked the markets 21 00:01:15,920 --> 00:01:19,200 Speaker 1: every fifteen minutes throughout the trading day on Bloomberg. Right now, 22 00:01:19,800 --> 00:01:23,160 Speaker 1: SNP futures are down forty six points down, futures down 23 00:01:23,200 --> 00:01:26,880 Speaker 1: three hundred thirty five, and NASDAG futures down one thirty one. 24 00:01:26,959 --> 00:01:30,160 Speaker 1: The decks in Germany's down eight tenths of uppercent ten 25 00:01:30,240 --> 00:01:32,800 Speaker 1: year treasury down nine thirty seconds, YELD two point nine 26 00:01:32,880 --> 00:01:35,399 Speaker 1: six percent, and the yield on the two year at 27 00:01:35,400 --> 00:01:38,959 Speaker 1: three point one and nine percent. Nathan Karen reaction is 28 00:01:38,959 --> 00:01:42,679 Speaker 1: still rolling into yesterday's hot rating. On inflation, the dollar 29 00:01:42,840 --> 00:01:45,640 Speaker 1: is trading at a twenty four year high against the end, 30 00:01:45,840 --> 00:01:49,160 Speaker 1: and speculation is growing that the Fed's next move maybe 31 00:01:49,200 --> 00:01:52,080 Speaker 1: a one percent rate hike rather than a seventy five 32 00:01:52,160 --> 00:01:55,360 Speaker 1: basis point increase. We caught up with Cleveland Fed President 33 00:01:55,440 --> 00:01:59,760 Speaker 1: Lauretta Mester. Certainly, the inflation reports suggests that there's no 34 00:02:00,000 --> 00:02:03,000 Speaker 1: reason to say a smaller rate increase than we did 35 00:02:03,080 --> 00:02:06,120 Speaker 1: last time, right because nothing moved in that direction. Cleveland 36 00:02:06,160 --> 00:02:08,720 Speaker 1: Fed President Loretta Mester made those comments in an interview 37 00:02:08,760 --> 00:02:11,400 Speaker 1: with Bloomberg's Kathleen Hayes. Stay tuned for more of that 38 00:02:11,440 --> 00:02:14,760 Speaker 1: conversation coming up shortly here on Bloomberg Daybreak. Well, Nathan 39 00:02:14,800 --> 00:02:17,520 Speaker 1: Mester is not the only FED official hinting of higher 40 00:02:17,600 --> 00:02:21,200 Speaker 1: rates to come. At Lanta. FED President Raphael Bostick says, quote, 41 00:02:21,280 --> 00:02:24,640 Speaker 1: everything is in play for policy action this month. Begin 42 00:02:24,720 --> 00:02:28,320 Speaker 1: more from Bloomberg Shirley Pillett. His comment came after data 43 00:02:28,360 --> 00:02:32,560 Speaker 1: showed that US inflation accelerated again to a fresh four 44 00:02:32,680 --> 00:02:37,040 Speaker 1: decade high last month. Speaking to reporters in St. Petersburg, Florida, 45 00:02:37,360 --> 00:02:40,680 Speaker 1: Bostick said the top line number is a source of 46 00:02:40,760 --> 00:02:44,440 Speaker 1: concern and everything is in play. The comments add fuel 47 00:02:44,480 --> 00:02:46,440 Speaker 1: to bet so the FED is more likely than not 48 00:02:46,800 --> 00:02:50,679 Speaker 1: to raise interest rates by one hundred basis points when 49 00:02:50,720 --> 00:02:54,280 Speaker 1: it meets later this month in New York. Charlie Pellett 50 00:02:54,280 --> 00:02:57,160 Speaker 1: Bloomberg Daybreak. All right, Charlie, thank you. Coming up today, 51 00:02:57,200 --> 00:02:59,440 Speaker 1: we get another reading on inflation with the release of 52 00:02:59,440 --> 00:03:02,000 Speaker 1: the Produce ser Price Index for June. Here with the 53 00:03:02,040 --> 00:03:05,280 Speaker 1: preview is Bloomberg's Michael McKee. Though it would seem logical 54 00:03:05,360 --> 00:03:08,679 Speaker 1: the producer price index actually doesn't really lead moves in 55 00:03:08,760 --> 00:03:11,560 Speaker 1: the consumer price index, and that may be a good thing. 56 00:03:11,760 --> 00:03:15,200 Speaker 1: Unlike consumer prices, producer prices have been falling a little 57 00:03:15,240 --> 00:03:18,280 Speaker 1: bit after reaching a peak in March. The economist consensus 58 00:03:18,320 --> 00:03:21,480 Speaker 1: forecast is that continued to come down in June. But 59 00:03:21,600 --> 00:03:24,280 Speaker 1: CPI surprised to the upside last month, and there's a 60 00:03:24,360 --> 00:03:27,280 Speaker 1: risk at least headline PPI could do the same. Oil 61 00:03:27,320 --> 00:03:30,040 Speaker 1: and gas a lead prices rose as did other commodities, 62 00:03:30,240 --> 00:03:32,960 Speaker 1: pushing up the cost of goods. The unanswered question is 63 00:03:33,080 --> 00:03:36,800 Speaker 1: how service prices have behaved. Watched the Trade Services index 64 00:03:36,840 --> 00:03:39,640 Speaker 1: in the pp I. It's something of a proxy for margins. 65 00:03:39,720 --> 00:03:43,800 Speaker 1: As earning season gets underway in the US. Michael McKee, Bloomberg, 66 00:03:43,880 --> 00:03:46,400 Speaker 1: Gabriad All right, Mike Banks and speaking of earning, the 67 00:03:46,480 --> 00:03:49,200 Speaker 1: season gets started this morning in earnest when big banks 68 00:03:49,200 --> 00:03:51,320 Speaker 1: are poor? Do we get the details from Bloomberg? A 69 00:03:51,320 --> 00:03:55,680 Speaker 1: global finance correspondention, Alle Boss, JP Morgan and Morgan Stanley 70 00:03:55,760 --> 00:03:59,440 Speaker 1: kickoff earnings for the biggest US banks and recession fears 71 00:03:59,440 --> 00:04:02,720 Speaker 1: are growing across the economy. The question is our provisions 72 00:04:02,720 --> 00:04:05,760 Speaker 1: for loan losses going to build? Especially at JP Morgan, 73 00:04:06,000 --> 00:04:08,800 Speaker 1: where not interest income is also rising due to higher 74 00:04:08,800 --> 00:04:11,840 Speaker 1: interest rates. The question is how much will that offset 75 00:04:11,960 --> 00:04:15,840 Speaker 1: any future pains from any potential recession ahead. I'm Shanelli 76 00:04:15,880 --> 00:04:19,200 Speaker 1: basic Bloomberg Daybreak, All right, sale, thank you. As recession 77 00:04:19,279 --> 00:04:22,320 Speaker 1: fears grow on Wall Street, one top tech executive says 78 00:04:22,400 --> 00:04:24,839 Speaker 1: the industry will be able to weather the storm. Let's 79 00:04:24,880 --> 00:04:27,479 Speaker 1: get that live from Bloomberg's Grnida Young, Good morning, Granita, 80 00:04:27,520 --> 00:04:31,240 Speaker 1: Good morning Nathan. IBM CEO Arvin Krishna says he believes 81 00:04:31,360 --> 00:04:35,960 Speaker 1: business technology spending will remain robust above DDP growth, even 82 00:04:36,000 --> 00:04:39,599 Speaker 1: including Europe. And this is even after others in the 83 00:04:39,640 --> 00:04:42,440 Speaker 1: industry have been pessimistic in the face of a potential 84 00:04:42,520 --> 00:04:45,720 Speaker 1: US recession and resulting slower growth. When you look at 85 00:04:45,720 --> 00:04:50,520 Speaker 1: supply chain inflation, Liabo demographics, interest rates. Technology offers you 86 00:04:50,560 --> 00:04:55,000 Speaker 1: away to scale without necessarily increasing costs that are linear 87 00:04:55,320 --> 00:04:59,560 Speaker 1: or the linear. IBM CEO Arevn Krishna is less optimistic 88 00:04:59,600 --> 00:05:03,960 Speaker 1: about supply chain problems. He says they are a real, fundamential, 89 00:05:04,279 --> 00:05:07,599 Speaker 1: fundamental issue that's going to be on going on for 90 00:05:07,680 --> 00:05:10,360 Speaker 1: a couple more years. Live in New York. I'm rened 91 00:05:10,400 --> 00:05:12,360 Speaker 1: a Young Bloomberg Daybreak, All right. We need to thank 92 00:05:12,400 --> 00:05:15,239 Speaker 1: you about turning to politics now. President Biden most signal 93 00:05:15,240 --> 00:05:18,240 Speaker 1: like continuing US commitment to Israel's defense. As part of 94 00:05:18,279 --> 00:05:20,440 Speaker 1: his trip through the Middle Age, the President signs a 95 00:05:20,520 --> 00:05:24,279 Speaker 1: joint declaration with Israel's new Prime Minister, extending an agreement 96 00:05:24,360 --> 00:05:27,640 Speaker 1: that provides billions of dollars to the country's military. Tomorrow, 97 00:05:27,720 --> 00:05:32,440 Speaker 1: Biden heads to Saudi Arabia. Democratic Congresswoman Abigail Spenberger says 98 00:05:32,680 --> 00:05:35,440 Speaker 1: he'll need to project American values when he meets with 99 00:05:35,480 --> 00:05:38,880 Speaker 1: Crown Prince Mohammed bin Salman. He must raise the issue 100 00:05:38,880 --> 00:05:44,000 Speaker 1: of Jamal Kashoki's murder. He must continue to ensure that 101 00:05:44,040 --> 00:05:48,240 Speaker 1: we have strong expectations of what our Saudi partners are 102 00:05:48,480 --> 00:05:50,640 Speaker 1: or are not bringing to the table, whether they are 103 00:05:50,839 --> 00:05:54,719 Speaker 1: or are not um meeting the expectations that we have 104 00:05:54,839 --> 00:06:00,400 Speaker 1: in terms of the values that they um are by 105 00:06:00,640 --> 00:06:04,640 Speaker 1: Congresswoman Abigail Spenberger of Virginia spoke of their Washington correspondent 106 00:06:04,720 --> 00:06:08,080 Speaker 1: Joe Matthew on Bloomberg Sound On Catch the program weekdays 107 00:06:08,120 --> 00:06:11,160 Speaker 1: at five pm Eastern on Bloomberg Radio. We have new 108 00:06:11,200 --> 00:06:13,760 Speaker 1: developments in the battle against the pandemic. This morning, Karen 109 00:06:13,800 --> 00:06:16,240 Speaker 1: the nation's top doctor says the O macron b A 110 00:06:16,400 --> 00:06:20,440 Speaker 1: five variant is becoming worrisome. Bloomberg said, Baxter has the story. 111 00:06:20,760 --> 00:06:24,400 Speaker 1: COVID Response Coordinator, doctor Ashe's Jaw says, it's something to 112 00:06:24,760 --> 00:06:28,120 Speaker 1: very carefully watch. It is certainly the most immunovative. What 113 00:06:28,240 --> 00:06:31,719 Speaker 1: we're seeing as people who are previously infected getting reinfections 114 00:06:31,720 --> 00:06:34,280 Speaker 1: at high rates. People who got vaccinated, let's say last year, 115 00:06:34,640 --> 00:06:37,520 Speaker 1: having a ton of breakthrough infections. So something that we're 116 00:06:37,640 --> 00:06:39,839 Speaker 1: you know, obviously paying very close attention to you. Yeah. 117 00:06:39,960 --> 00:06:43,160 Speaker 1: Dr Josh says mitigation tools like smart use of masks 118 00:06:43,200 --> 00:06:47,160 Speaker 1: and of course vaccinations is important. He says everybody over 119 00:06:47,240 --> 00:06:50,920 Speaker 1: fifty needs a second booster in San Francisco, I'm at 120 00:06:50,960 --> 00:06:53,960 Speaker 1: Baxter Bloomberg daybreak, all right, and thank you. And despite 121 00:06:53,960 --> 00:06:57,599 Speaker 1: COVID concerns and current economic conditions, back to school shoppers 122 00:06:57,800 --> 00:07:00,919 Speaker 1: are expected to spend a record amount this year. According 123 00:07:00,920 --> 00:07:03,280 Speaker 1: to a survey by Deloitte, Sales for the season are 124 00:07:03,320 --> 00:07:06,479 Speaker 1: expected at total thirty four point four billion dollars. It 125 00:07:06,520 --> 00:07:10,320 Speaker 1: breaks down to sixty per student, an increase of eight 126 00:07:10,360 --> 00:07:13,440 Speaker 1: percent from a year earlier. Again, future is moving lower. 127 00:07:13,480 --> 00:07:16,400 Speaker 1: This morning, straight ahead, your latest local headlines, plus the 128 00:07:16,480 --> 00:07:23,800 Speaker 1: check of Sports, and this is Bloomberg. Thanks Karen. It's 129 00:07:23,800 --> 00:07:25,760 Speaker 1: five oh seven on Wall Street. Were at seventy three 130 00:07:25,760 --> 00:07:29,960 Speaker 1: degrees in Central Park. Big problems for rail commuters this morning. 131 00:07:30,040 --> 00:07:32,320 Speaker 1: Michael Barr is here with that and more that's going 132 00:07:32,320 --> 00:07:34,480 Speaker 1: on in New York and around the world. Good morning, Michael, 133 00:07:34,560 --> 00:07:37,640 Speaker 1: Good morning Nathan. Commuters are saying, oh great, here we go. 134 00:07:37,880 --> 00:07:41,320 Speaker 1: This justin New Jersey Transit has suspended service in and 135 00:07:41,360 --> 00:07:45,280 Speaker 1: out of New York City. Rail service is suspended into 136 00:07:45,400 --> 00:07:48,640 Speaker 1: and out of Penn Station, New York due to amtrack 137 00:07:48,880 --> 00:07:53,080 Speaker 1: overhead wire issues. New Jersey Transit rail tickets and passes 138 00:07:53,120 --> 00:07:56,440 Speaker 1: will be cross honored by New Jersey Transit, bus and 139 00:07:56,520 --> 00:08:00,760 Speaker 1: private carriers. Path is cross honor ring at newer Penn Station, 140 00:08:00,920 --> 00:08:04,560 Speaker 1: Hobo Conterminal and Penn Station, New York. It is the 141 00:08:04,640 --> 00:08:07,880 Speaker 1: third shark attack in ten days on Long Island. A 142 00:08:07,960 --> 00:08:10,280 Speaker 1: forty nine year old man was attacked by a shark 143 00:08:10,400 --> 00:08:14,360 Speaker 1: yesterday evening, less than twelve hours after a paddle boarder 144 00:08:14,440 --> 00:08:18,040 Speaker 1: was attacked at a nearby beach that morning. According to 145 00:08:18,080 --> 00:08:21,000 Speaker 1: the Suffolk County Police, the man was standing waist deep 146 00:08:21,200 --> 00:08:24,760 Speaker 1: in the water at Seaview Beach on Fire Island when 147 00:08:24,800 --> 00:08:28,120 Speaker 1: he was bitten on his wrist around six pm. Also 148 00:08:28,240 --> 00:08:31,280 Speaker 1: his leg. Earlier that morning, at year old man was 149 00:08:31,320 --> 00:08:34,920 Speaker 1: bitten by a shark while paddle boarding at Smith Point Beach. 150 00:08:35,160 --> 00:08:39,000 Speaker 1: Both suffered non life threatening injuries. Suffolk County Executive Steve 151 00:08:39,040 --> 00:08:44,880 Speaker 1: Alone I think it is an indication, however, that what 152 00:08:44,920 --> 00:08:48,240 Speaker 1: we're looking at is uh something of a new normal. 153 00:08:48,800 --> 00:08:52,040 Speaker 1: Suffolk County Executive Steve Bloone says the tigers sharks are 154 00:08:52,080 --> 00:08:55,960 Speaker 1: closer to the shore than they've been In New York City. 155 00:08:56,280 --> 00:08:59,080 Speaker 1: The council members are calling on Mayor Eric Adams and 156 00:08:59,200 --> 00:09:02,760 Speaker 1: the Department of Education not to exercise budget cuts, and 157 00:09:02,800 --> 00:09:05,280 Speaker 1: a joint letter council members saying it will result in 158 00:09:05,320 --> 00:09:08,840 Speaker 1: the city spending less on each child. Last month, the 159 00:09:08,840 --> 00:09:11,679 Speaker 1: city Council signed off on a two fifty million dollar 160 00:09:11,720 --> 00:09:15,560 Speaker 1: budget cut and Adams three city budget. Now, council members 161 00:09:15,600 --> 00:09:18,440 Speaker 1: say the Atoms administration has led them by saying the 162 00:09:18,480 --> 00:09:22,600 Speaker 1: cuts would be fully accounted for by declining enrollment. A 163 00:09:22,600 --> 00:09:25,000 Speaker 1: new mental health clinic and the Bronx just opened its 164 00:09:25,000 --> 00:09:28,040 Speaker 1: diverse Mayor Eric Adams as the short term treatment center 165 00:09:28,200 --> 00:09:31,240 Speaker 1: will provide new Yorkers with mental health and substance of 166 00:09:31,360 --> 00:09:37,400 Speaker 1: use issues, immediate access to services. We unfairly treated the 167 00:09:37,440 --> 00:09:39,840 Speaker 1: New York City Police Department in this city in so 168 00:09:39,920 --> 00:09:44,240 Speaker 1: many ways. We called on them to do everything. We 169 00:09:44,320 --> 00:09:47,320 Speaker 1: called on them when someone had a gun. We called 170 00:09:47,400 --> 00:09:50,720 Speaker 1: on them when someone had a cat up the tree, 171 00:09:50,880 --> 00:09:52,800 Speaker 1: We called on them when someone was going through a 172 00:09:52,800 --> 00:09:56,559 Speaker 1: mental health crisis. We called on them for everything and 173 00:09:56,559 --> 00:09:59,480 Speaker 1: didn't realize that we had other agencies that we should have. 174 00:09:59,600 --> 00:10:03,080 Speaker 1: Cord Ate it with Mayor Adams again. New Jersey Transit 175 00:10:03,120 --> 00:10:06,119 Speaker 1: suspended service in and out of New York City overhead 176 00:10:06,160 --> 00:10:09,959 Speaker 1: wire issues. I'm Michael barn and this is Bloomberg Nathan. 177 00:10:10,040 --> 00:10:16,839 Speaker 1: Thank you, Michael. Five ten on Wall Street time for 178 00:10:16,840 --> 00:10:19,439 Speaker 1: the Bloomberg Sports Update with John Sesshire Banks Nathan. The 179 00:10:19,520 --> 00:10:21,640 Speaker 1: Yankees and Reds at the stadium, the Yanks trying to 180 00:10:21,679 --> 00:10:24,520 Speaker 1: avoid their first four game losing to taking the season. 181 00:10:24,520 --> 00:10:26,599 Speaker 1: The night did not begin well at last seven No 182 00:10:27,040 --> 00:10:29,679 Speaker 1: injured most of the last three seasons, He's been so 183 00:10:29,760 --> 00:10:31,839 Speaker 1: good this year, but he served up three home runs 184 00:10:31,840 --> 00:10:34,200 Speaker 1: in the second inning while taking his warm up to 185 00:10:34,280 --> 00:10:36,640 Speaker 1: us as in the third, he left the game headed 186 00:10:36,679 --> 00:10:38,160 Speaker 1: for an m R. I on his shoulder. Yanks called 187 00:10:38,160 --> 00:10:41,480 Speaker 1: behind four nothing, came back Isaiah Kiner Falapa pree run 188 00:10:41,520 --> 00:10:43,800 Speaker 1: double and led five to four, trailed six five. John 189 00:10:43,880 --> 00:10:46,839 Speaker 1: Carlos Stanton a game tying home run. Eighth inning. Yanks 190 00:10:46,800 --> 00:10:49,480 Speaker 1: stared in the tent for get another walk off. Wins 191 00:10:49,559 --> 00:10:52,520 Speaker 1: seven to six. Mets used the long ball in Atlanta, 192 00:10:52,880 --> 00:10:56,120 Speaker 1: delivers and Lindoor rips it deep in the air right field. 193 00:10:56,440 --> 00:11:00,120 Speaker 1: Kunia turns around, watches it fly. That was way out 194 00:11:00,120 --> 00:11:05,240 Speaker 1: of here. We three run blast for Francisco Windoor. He 195 00:11:05,480 --> 00:11:07,840 Speaker 1: comes through in the top of the third inning and 196 00:11:07,920 --> 00:11:11,360 Speaker 1: he extends the Mets lead to four nothing. CDs had 197 00:11:11,360 --> 00:11:13,880 Speaker 1: a solo shots from Marc Canada warda Eskibar. Mets be 198 00:11:14,040 --> 00:11:16,960 Speaker 1: the Braves seven three. Chris Bassett got the win. Mets 199 00:11:16,960 --> 00:11:19,079 Speaker 1: take the series, lead Atlanta by two and a half. 200 00:11:19,120 --> 00:11:22,520 Speaker 1: They visit the Cubs tonight. Two American late teams stretched 201 00:11:22,520 --> 00:11:25,360 Speaker 1: their winning streaks to at ten. The Seattle Mariners, who 202 00:11:25,360 --> 00:11:27,800 Speaker 1: have gone longer than any team in all of sports 203 00:11:27,840 --> 00:11:31,640 Speaker 1: without making the postseason, and the Baltimore Orioles, baseball's worst 204 00:11:31,679 --> 00:11:34,320 Speaker 1: team over the last several years. The Mariners now tied 205 00:11:34,360 --> 00:11:36,520 Speaker 1: for the playoffs spot the Orioles only two games behind 206 00:11:36,600 --> 00:11:40,439 Speaker 1: Toronto fired manager Charlie Montoyo. The Rangers have signed free 207 00:11:40,440 --> 00:11:44,120 Speaker 1: agent Vincent tro Check away from Carolina Open Championship. Golf 208 00:11:44,200 --> 00:11:46,960 Speaker 1: hundred and fifty edition underway a historic st Andrew's min 209 00:11:47,000 --> 00:11:49,839 Speaker 1: wou Ye stand eagle on the fourteen poll, got the 210 00:11:49,880 --> 00:11:52,439 Speaker 1: four under He's got a one shot lead. John stash 211 00:11:52,480 --> 00:11:56,040 Speaker 1: Award Bloomberg Sports Naphen John Thanks. SESP futures down forty 212 00:11:56,040 --> 00:11:59,320 Speaker 1: two points, Sound futures down three twenty five Nassect futures 213 00:11:59,320 --> 00:12:03,040 Speaker 1: lower by a hunt thirteen points. You're listening to Bloomberg 214 00:12:03,120 --> 00:12:09,480 Speaker 1: Daybreak Bloomberg eleven three oh weather. Mix of sun and 215 00:12:09,480 --> 00:12:11,719 Speaker 1: clouds and showers and storms developing through the day with 216 00:12:11,760 --> 00:12:15,120 Speaker 1: a high near ninety degrees, sunshine near ninety tomorrow, mix 217 00:12:15,160 --> 00:12:17,880 Speaker 1: of sun and clouds upright ease Saturday, right now seventy 218 00:12:17,880 --> 00:12:24,600 Speaker 1: three in Central Park Markets. Headlines and breaking news twenty 219 00:12:24,600 --> 00:12:27,479 Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg 220 00:12:27,480 --> 00:12:37,319 Speaker 1: Business Outland at Bloomberg Quick Jade's a Bloomberg Business Flash 221 00:12:37,720 --> 00:12:41,320 Speaker 1: and I'm Karin moscow Ustack Index futures are falling this morning, 222 00:12:41,320 --> 00:12:44,480 Speaker 1: along with European shares and the dollar resumed its advance 223 00:12:44,520 --> 00:12:48,199 Speaker 1: after high US inflation hardened expectations for more aggressive Federal 224 00:12:48,240 --> 00:12:51,680 Speaker 1: Reserve monetary tightening that could trigger our recession. We checked 225 00:12:51,720 --> 00:12:54,160 Speaker 1: the markets every fifteen minutes throughout the trading day on 226 00:12:54,160 --> 00:12:57,680 Speaker 1: Bloomberg Guess and P futures down four points down, futures 227 00:12:57,720 --> 00:13:01,440 Speaker 1: down three twenty nine and Nastack futures down on the 228 00:13:01,520 --> 00:13:04,480 Speaker 1: decks in Germany's down seven tenths of upper set ten. 229 00:13:04,559 --> 00:13:07,199 Speaker 1: Your treasury down six thirties seconds, held two point nine 230 00:13:07,240 --> 00:13:09,480 Speaker 1: five percent. They yield on the two year three point 231 00:13:09,480 --> 00:13:12,720 Speaker 1: one nine percent. NIMEX scrude oil is down two point 232 00:13:12,800 --> 00:13:15,240 Speaker 1: seven percent, down two dollars sixty cents and ninety three 233 00:13:15,280 --> 00:13:18,240 Speaker 1: dollars seventy two cents a barrel. And comic School there's 234 00:13:18,280 --> 00:13:21,720 Speaker 1: down one point three percent. It's at seventeen thirteen fifty announced. 235 00:13:22,000 --> 00:13:24,520 Speaker 1: That's a Bloomberg business flash. Now here's Michael Barrow with 236 00:13:24,559 --> 00:13:27,200 Speaker 1: Moore on what's going on around the world. Michael, thank 237 00:13:27,240 --> 00:13:29,520 Speaker 1: you very much, Cameron. President Joe Biden will seek to 238 00:13:29,520 --> 00:13:33,120 Speaker 1: bolster co operation between the US, Israel, and other countries. 239 00:13:33,400 --> 00:13:36,040 Speaker 1: During his first full day in the Middle East, his 240 00:13:36,160 --> 00:13:40,920 Speaker 1: schedule today involves meetings with Israeli Priminister Here LaPete. The 241 00:13:41,080 --> 00:13:45,400 Speaker 1: FDA authorized the Novovaks COVID nineteen vaccination for emergency use 242 00:13:45,400 --> 00:13:48,520 Speaker 1: and adults in baseball, the Yankees beat the Reds, The 243 00:13:48,559 --> 00:13:51,400 Speaker 1: Mets beat the Braves. The Nationals lost both games of 244 00:13:51,480 --> 00:13:54,440 Speaker 1: a double header to the Mariners. The Orioles beat the Cobs, 245 00:13:54,480 --> 00:13:57,880 Speaker 1: the Giants top the Diamondbacks. The A's lost to the Rangers. 246 00:13:58,240 --> 00:14:01,120 Speaker 1: Global News twenty four hours a day on air and 247 00:14:01,320 --> 00:14:04,880 Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred 248 00:14:04,920 --> 00:14:08,760 Speaker 1: journalists and analysts in more than one twenty countries. Michael 249 00:14:08,760 --> 00:14:12,240 Speaker 1: Barr and this is Bloomberg. Thanks Michael. It's five nineteen 250 00:14:12,240 --> 00:14:15,240 Speaker 1: on Wall Street Live from the Bloomberg Interactive Brokers Studios. 251 00:14:15,320 --> 00:14:18,800 Speaker 1: This is Bloomberg Daybreak. The Federal Reserve has its work 252 00:14:18,840 --> 00:14:21,200 Speaker 1: cut out for it when it comes to inflation. That's 253 00:14:21,200 --> 00:14:25,240 Speaker 1: according to Cleveland Fed President Loretta Mester. Her comments follow 254 00:14:25,360 --> 00:14:29,600 Speaker 1: yesterday's hot reading on consumer prices. Mester spoke with Bloomberg's 255 00:14:29,680 --> 00:14:32,680 Speaker 1: Kathleen Hayes late yesterday about the latest CPI report and 256 00:14:32,720 --> 00:14:35,320 Speaker 1: where the Fed goes from here. Let's go to part 257 00:14:35,320 --> 00:14:38,160 Speaker 1: of that interview now about a week at half ago, 258 00:14:38,560 --> 00:14:41,400 Speaker 1: you said that if conditions were pretty much the same 259 00:14:41,440 --> 00:14:44,800 Speaker 1: as they were, then you would be on board. You 260 00:14:44,840 --> 00:14:48,680 Speaker 1: would probably be supporting a seventy five basis point rate high. 261 00:14:49,040 --> 00:14:51,920 Speaker 1: NAT only saw on the inflation report even higher than expected, 262 00:14:52,080 --> 00:14:55,640 Speaker 1: few signs that inflation is easing up. Uh, would you 263 00:14:55,840 --> 00:14:59,120 Speaker 1: be on board potentially with a one hundred basis point 264 00:14:59,200 --> 00:15:03,400 Speaker 1: high July meeting? Well, Kathleen, we don't have to make 265 00:15:03,440 --> 00:15:06,280 Speaker 1: that decision today, and there's more data coming out than 266 00:15:06,320 --> 00:15:08,480 Speaker 1: I'm going to be very attuned to. We have retail 267 00:15:08,520 --> 00:15:10,800 Speaker 1: sales coming out on Friday, and we have a very 268 00:15:10,800 --> 00:15:15,080 Speaker 1: important University of Michigan report, and of course that's important 269 00:15:15,080 --> 00:15:18,920 Speaker 1: because it has the in Placed Expectations Measure UM, a 270 00:15:18,960 --> 00:15:21,600 Speaker 1: consumer measure in there. So you know, we have data 271 00:15:21,640 --> 00:15:24,360 Speaker 1: coming out. What what I take from the report and 272 00:15:24,400 --> 00:15:26,880 Speaker 1: it was uniformly bad. There was no good news in 273 00:15:26,920 --> 00:15:31,120 Speaker 1: that report at all, was that inflation remains at a 274 00:15:31,440 --> 00:15:34,880 Speaker 1: unacceptably high level. We at the Fed have to be 275 00:15:35,040 --> 00:15:38,800 Speaker 1: very deliberate and intentional about continuing on this path of 276 00:15:38,920 --> 00:15:43,200 Speaker 1: raising our interest rate until we get and see convincing 277 00:15:43,280 --> 00:15:47,320 Speaker 1: evidence that inflation is turned the corner is on a 278 00:15:47,440 --> 00:15:51,040 Speaker 1: downward path, and it's sustainably on a downward path, and 279 00:15:51,040 --> 00:15:54,000 Speaker 1: that we just have more work to do. So you know, 280 00:15:54,200 --> 00:15:58,040 Speaker 1: I will make that decision about you know, what the 281 00:15:58,160 --> 00:16:00,560 Speaker 1: right number is in terms of the rate increases. But 282 00:16:00,600 --> 00:16:03,720 Speaker 1: we're gonna have to continue on this path because we 283 00:16:03,800 --> 00:16:08,200 Speaker 1: haven't seen UM monthly numbers coming down. You know, even 284 00:16:08,280 --> 00:16:12,680 Speaker 1: the monthly numbers, UM, they are moving in the wrong directions. 285 00:16:12,720 --> 00:16:15,920 Speaker 1: So we just have to be very intentional here. UM. 286 00:16:15,960 --> 00:16:18,320 Speaker 1: The Beige Book came out today as well, and as 287 00:16:18,360 --> 00:16:22,080 Speaker 1: you saw in that report, UM, and that's a nice 288 00:16:22,080 --> 00:16:25,360 Speaker 1: report because it really shows you across the country, our 289 00:16:25,560 --> 00:16:32,920 Speaker 1: business contacts and consumer contacts. There's concern about UM recessionary 290 00:16:33,040 --> 00:16:36,440 Speaker 1: risk going up, But the same point in that report 291 00:16:36,480 --> 00:16:41,000 Speaker 1: that I took was there's continuing to be price pressures, 292 00:16:41,120 --> 00:16:45,600 Speaker 1: no alleviation there, and that some of the moderation and 293 00:16:45,640 --> 00:16:49,880 Speaker 1: demand is really being driven by the fact that consumers 294 00:16:49,920 --> 00:16:52,720 Speaker 1: have to pull back some of the discretionary spending because 295 00:16:52,840 --> 00:16:55,400 Speaker 1: the prices of food and energy and other essentials are 296 00:16:55,440 --> 00:16:58,640 Speaker 1: so hot. So let me ask you, this is a 297 00:16:58,720 --> 00:17:00,880 Speaker 1: hundred basis points. If if we had asked you about 298 00:17:00,880 --> 00:17:03,120 Speaker 1: a hundred basis points a couple of weeks ago, two 299 00:17:03,200 --> 00:17:05,159 Speaker 1: or three months ago. I don't even think we have 300 00:17:05,200 --> 00:17:08,720 Speaker 1: got to ask you, but is that something though you 301 00:17:08,760 --> 00:17:11,240 Speaker 1: could see being discussed. Would you discuss it? Is it 302 00:17:11,359 --> 00:17:13,800 Speaker 1: something given what we see in inflation now that is 303 00:17:13,880 --> 00:17:16,960 Speaker 1: quote unquote on the table that maybe has to be 304 00:17:17,119 --> 00:17:20,080 Speaker 1: under consideration because the FED has to figure out just 305 00:17:20,119 --> 00:17:23,520 Speaker 1: how aggressive you have to be. Well, we're gonna have 306 00:17:23,640 --> 00:17:26,520 Speaker 1: a meeting and we're gonna talk about what the appropriate 307 00:17:26,560 --> 00:17:30,600 Speaker 1: path of policy is. And again, you know, we don't 308 00:17:30,600 --> 00:17:32,800 Speaker 1: have to make a decision today. We're gonna take them 309 00:17:32,800 --> 00:17:35,399 Speaker 1: to account all the data. But you know, we're having 310 00:17:35,400 --> 00:17:39,119 Speaker 1: this conversation. The markets are having a conversation and putting 311 00:17:39,119 --> 00:17:41,840 Speaker 1: their money where their mouth is in terms of where 312 00:17:41,880 --> 00:17:44,960 Speaker 1: market expectations are. So we're gonna be talking about the 313 00:17:44,960 --> 00:17:49,600 Speaker 1: appropriate path of policy. And I have not seen any 314 00:17:49,840 --> 00:17:52,960 Speaker 1: convincing evidence that inflation is termed the corner, right. We 315 00:17:53,040 --> 00:17:56,879 Speaker 1: haven't seen anything that in that new CPI report that 316 00:17:57,000 --> 00:17:59,840 Speaker 1: suggest inflations turning out. And now we do know that 317 00:18:00,119 --> 00:18:04,640 Speaker 1: energy prices right are have fallen compared to the prior month, 318 00:18:04,720 --> 00:18:07,840 Speaker 1: So you know, there's some expectation that the next report 319 00:18:07,880 --> 00:18:10,439 Speaker 1: on inflation. We might see that part going down, but 320 00:18:10,480 --> 00:18:13,080 Speaker 1: on the other hand, we have shelter prices going out, 321 00:18:13,160 --> 00:18:17,080 Speaker 1: so again, you know, I think it's much more The focus, 322 00:18:17,160 --> 00:18:18,760 Speaker 1: I think is on the fact that we're going to 323 00:18:18,840 --> 00:18:21,920 Speaker 1: have to keep moving into st rates up being very 324 00:18:21,960 --> 00:18:25,560 Speaker 1: deliberate and intentional about it, right, you know, we if 325 00:18:26,080 --> 00:18:28,440 Speaker 1: you know, we're moving towards a two and a half 326 00:18:28,440 --> 00:18:32,479 Speaker 1: percent what with the long run neutral rate is my 327 00:18:32,520 --> 00:18:34,359 Speaker 1: own belief is that we're going to need to go 328 00:18:34,480 --> 00:18:38,600 Speaker 1: beyond that and will beyond that because right inflation and 329 00:18:38,760 --> 00:18:42,159 Speaker 1: inflation expectations are higher than two percent now, So we're 330 00:18:42,160 --> 00:18:45,399 Speaker 1: gonna have to keep moving and the pace of which 331 00:18:45,400 --> 00:18:48,000 Speaker 1: we do that at and you know what any particular 332 00:18:48,080 --> 00:18:50,920 Speaker 1: meaning is really going to be driven by. Are we 333 00:18:50,960 --> 00:18:55,600 Speaker 1: seeing demand get into better balance with constraints supply which 334 00:18:55,600 --> 00:19:00,439 Speaker 1: remains constrained in order to see that inflation it on 335 00:19:00,760 --> 00:19:05,280 Speaker 1: that a sustainable downward. We have not seen that. And 336 00:19:05,359 --> 00:19:08,840 Speaker 1: that was Cleveland FED President Loretta Mester speaking with Bloomberg's 337 00:19:08,880 --> 00:19:12,639 Speaker 1: Kathleen Hayes on the heels of yesterday's hot Inflation reading. 338 00:19:12,680 --> 00:19:14,919 Speaker 1: You can catch the full interview we have it up 339 00:19:14,960 --> 00:19:18,479 Speaker 1: for you on Bloomberg dot com or on the Bloomberg terminal. 340 00:19:18,920 --> 00:19:23,560 Speaker 1: Futures continue to point lower following yesterday's hot cp I 341 00:19:23,600 --> 00:19:26,160 Speaker 1: print and as we look ahead to producer prices later 342 00:19:26,200 --> 00:19:30,040 Speaker 1: this morning. Right now, SMP futures are down forty nine points, 343 00:19:30,080 --> 00:19:32,439 Speaker 1: that's a drop of one point three percent. Down futures 344 00:19:32,480 --> 00:19:36,080 Speaker 1: are lower by three fifty nine points, and NASDAC futures 345 00:19:36,119 --> 00:19:39,200 Speaker 1: lower by one hundred forty three points a ten. Your 346 00:19:39,200 --> 00:19:42,560 Speaker 1: treasury is down seven thirty seconds, the yield two point 347 00:19:42,680 --> 00:19:45,040 Speaker 1: nine six percent, The yield on the two year three 348 00:19:45,600 --> 00:19:49,000 Speaker 1: point one nine niam X screwed is down two point 349 00:19:49,080 --> 00:19:52,200 Speaker 1: six percent, and ninety three dollar seventy five cents a barrel. 350 00:19:52,480 --> 00:19:55,240 Speaker 1: The euro right now one point zero zero two two 351 00:19:55,280 --> 00:20:08,399 Speaker 1: against the dollar. You're listening to Bloomberg Daybreak Bloomberg eleven 352 00:20:08,400 --> 00:20:10,639 Speaker 1: three oh weather showers and storms developing through the day 353 00:20:10,680 --> 00:20:13,240 Speaker 1: as we had near ninety degrees. Will be sunny tomorrow 354 00:20:13,240 --> 00:20:15,840 Speaker 1: with a high near ninety mix of sun and clouds 355 00:20:15,840 --> 00:20:18,760 Speaker 1: to start the weekend. Right now, seventy two in Central Park, 356 00:20:25,000 --> 00:20:29,560 Speaker 1: broadcasting live from the Bloomberg Interactive Broker's studio in New York. 357 00:20:29,640 --> 00:20:34,320 Speaker 1: Bloomberg eloving freon to Washington d C, Bloomberg to Boston, 358 00:20:34,440 --> 00:20:37,840 Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine 359 00:20:37,920 --> 00:20:41,159 Speaker 1: sixty to the country Sirius XM Channel one nine and 360 00:20:41,240 --> 00:20:44,639 Speaker 1: around the Blob, the Bloomberg Business app and Bloomberg Radio 361 00:20:44,720 --> 00:20:53,600 Speaker 1: dot Com. This is Bloomberg Daybreak. It's five thirty on 362 00:20:53,640 --> 00:20:56,959 Speaker 1: Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscower. 363 00:20:57,119 --> 00:20:59,800 Speaker 1: Just about four hours away from the open of US trading. 364 00:20:59,840 --> 00:21:01,280 Speaker 1: The sketch you up to date on the news you 365 00:21:01,359 --> 00:21:04,080 Speaker 1: need to know at this hour, Reactions still rolling into 366 00:21:04,200 --> 00:21:07,560 Speaker 1: yesterday's hot reading on inflation. The dollar is trading at 367 00:21:07,600 --> 00:21:10,320 Speaker 1: a twenty four year high against the end, and speculation 368 00:21:10,440 --> 00:21:13,520 Speaker 1: is growing that the Fed's next move maybe a one 369 00:21:13,640 --> 00:21:17,400 Speaker 1: percent rate hike. Cleveland FED President the Rettamester says there's 370 00:21:17,440 --> 00:21:19,679 Speaker 1: a lot of work left to do to cut inflation. 371 00:21:20,320 --> 00:21:23,600 Speaker 1: Job one for us is to get inflation under control. 372 00:21:23,680 --> 00:21:27,119 Speaker 1: And I say that knowing that the risk of recession 373 00:21:27,200 --> 00:21:30,320 Speaker 1: have on but that's part of what we're trying to do, 374 00:21:30,560 --> 00:21:34,719 Speaker 1: is normalize or or moderate the man because if we 375 00:21:34,800 --> 00:21:37,800 Speaker 1: don't do this, we're gonna have many more problems in 376 00:21:37,880 --> 00:21:41,440 Speaker 1: the economy going forward. Cleveland FED president the Reddemester made 377 00:21:41,440 --> 00:21:44,479 Speaker 1: the comments to Bloomberg's Kathleen Hayes. Catch the full interview 378 00:21:44,520 --> 00:21:47,480 Speaker 1: on Bloomberg dot Com and on the Bloomberg terminal. Wellmester 379 00:21:47,640 --> 00:21:50,240 Speaker 1: isn't the only one hinting at higher rate increases, Karen. 380 00:21:50,280 --> 00:21:54,040 Speaker 1: Atlanta FED President Raphael Bostick says, quote everything is in 381 00:21:54,119 --> 00:21:57,560 Speaker 1: play end quote for policy action. He calls yesterday's top 382 00:21:57,600 --> 00:22:00,520 Speaker 1: line CPI number a source of concern. We get another 383 00:22:00,560 --> 00:22:02,679 Speaker 1: reading on inflation in just a few hours with the 384 00:22:02,720 --> 00:22:06,000 Speaker 1: release of the Producer Price Index. Nathan. There's also more 385 00:22:06,080 --> 00:22:09,240 Speaker 1: data to digest this morning. Earning season gets underway as 386 00:22:09,280 --> 00:22:12,160 Speaker 1: big banks open their books for the second quarter. Coming 387 00:22:12,200 --> 00:22:15,640 Speaker 1: up today to get results from JP Morgan and Morgan Stanley, 388 00:22:15,840 --> 00:22:18,440 Speaker 1: and as recessions fears grow on Wall Street. Karen, one 389 00:22:18,480 --> 00:22:21,399 Speaker 1: top tech executive, says his industry will be able to 390 00:22:21,400 --> 00:22:24,080 Speaker 1: weather the storm. Bloomberg. Trinity Young joins US Live with 391 00:22:24,119 --> 00:22:28,160 Speaker 1: more Ranita, Good morning. Nathan, IBM CEO Arvid Krishna says 392 00:22:28,240 --> 00:22:33,320 Speaker 1: he believes business technology spending will remain robust above GDP growth, 393 00:22:33,400 --> 00:22:36,520 Speaker 1: including in Europe, and this is even after others in 394 00:22:36,520 --> 00:22:39,280 Speaker 1: the industry. You have been pessimistic in the face of 395 00:22:39,280 --> 00:22:43,320 Speaker 1: a potential US recession at resulting slower growth. When you 396 00:22:43,359 --> 00:22:47,959 Speaker 1: look at supply chain inflation, liberal demographics, interest rates. Technology 397 00:22:48,000 --> 00:22:51,719 Speaker 1: offers you away to scale without necessarily increasing costs that 398 00:22:51,800 --> 00:22:56,639 Speaker 1: are linear or the linear. IBM CEO Arvin Krishna is 399 00:22:56,760 --> 00:23:00,639 Speaker 1: less optimistic about supply chain problems. He's is they'll go 400 00:23:00,720 --> 00:23:03,640 Speaker 1: on for a couple more years. Live in New York. 401 00:23:03,680 --> 00:23:06,040 Speaker 1: I'm really need a young Bloomberg daybreak. I need to 402 00:23:06,080 --> 00:23:09,000 Speaker 1: thank you. And turning to politics now, President Biden will 403 00:23:09,040 --> 00:23:12,919 Speaker 1: signal like continuing US commitment to Israel's defense today signing 404 00:23:12,920 --> 00:23:16,480 Speaker 1: a joint declaration with Israel's new Prime minister that provides 405 00:23:16,520 --> 00:23:19,639 Speaker 1: billions of dollars to the Israeli military. Up next, the 406 00:23:19,680 --> 00:23:22,240 Speaker 1: President heads to Saudi Arabia for a meeting with Crown 407 00:23:22,280 --> 00:23:26,680 Speaker 1: Prince Mohammed Ben Salmon. It is currently well futures this morning, 408 00:23:26,680 --> 00:23:28,879 Speaker 1: you're moving lower with S and P futures down forty 409 00:23:28,880 --> 00:23:31,399 Speaker 1: five points straight. I hand your latest local headlines plus 410 00:23:31,400 --> 00:23:39,480 Speaker 1: a check of sports, and this is Bloomberg. Thanks Carte 411 00:23:39,480 --> 00:23:42,080 Speaker 1: on Wall Street seventy two degrees in Central Park and 412 00:23:42,160 --> 00:23:46,119 Speaker 1: the big headline locally this morning, Big problems on the rails. 413 00:23:46,160 --> 00:23:48,119 Speaker 1: Michael Barr has that and more on what's going on 414 00:23:48,119 --> 00:23:50,080 Speaker 1: in New York and around the world. Michael, thank you 415 00:23:50,200 --> 00:23:52,880 Speaker 1: very much. Nathan Commuters is saying, here we go. New 416 00:23:52,960 --> 00:23:56,320 Speaker 1: Jersey Transit has suspended service in and out of New 417 00:23:56,400 --> 00:24:00,679 Speaker 1: York City. Apparently they are overhead wire issues, but and 418 00:24:00,760 --> 00:24:03,840 Speaker 1: the path train are cross honoring. Of course, we're following 419 00:24:03,840 --> 00:24:06,919 Speaker 1: this story throughout the morning. Two more shark bites happened 420 00:24:06,920 --> 00:24:10,560 Speaker 1: within hours off Long Island yesterday. Suff A County Executive 421 00:24:10,600 --> 00:24:14,040 Speaker 1: Steve Malone called it the new normal. They've always been here, 422 00:24:14,200 --> 00:24:16,600 Speaker 1: but they're close to the shore now. Beloone says. In 423 00:24:16,680 --> 00:24:20,440 Speaker 1: one attack, a surfer punched the predator, was knocked off 424 00:24:20,520 --> 00:24:23,840 Speaker 1: his sport and then saw this shark coming back around 425 00:24:23,960 --> 00:24:28,120 Speaker 1: towards him. Suffolk County Executive Steve Malone says both men 426 00:24:28,200 --> 00:24:31,040 Speaker 1: suffered non life threatening injuries. It is the third shark 427 00:24:31,080 --> 00:24:34,160 Speaker 1: attack in ten days off Long Island. New York City 428 00:24:34,200 --> 00:24:37,160 Speaker 1: Council members called on Mayor Eric Adams and the Department 429 00:24:37,200 --> 00:24:40,359 Speaker 1: of Education to hold school budget cuts they say will 430 00:24:40,400 --> 00:24:43,880 Speaker 1: result in the city spending less on each child. Last month, 431 00:24:43,880 --> 00:24:46,639 Speaker 1: the city Council signed off on the two fifteen million 432 00:24:46,640 --> 00:24:51,080 Speaker 1: dollar budget cut in passing Adams twenty three city budget. However, 433 00:24:51,320 --> 00:24:54,520 Speaker 1: in a joint letter, council members say they were misled 434 00:24:54,800 --> 00:24:57,440 Speaker 1: when the Adams administration said the cuts would be fully 435 00:24:57,480 --> 00:25:01,040 Speaker 1: accounted for by declining enrollment. High In Park, Illinois, held 436 00:25:01,040 --> 00:25:03,399 Speaker 1: a candle light vigil to honor those killed and injured 437 00:25:03,480 --> 00:25:07,600 Speaker 1: during the July fourth Parade mass shooting. Mayor Nancy Rotoring 438 00:25:08,000 --> 00:25:12,199 Speaker 1: we are all survivors. Each of us will have a 439 00:25:12,240 --> 00:25:15,960 Speaker 1: different experience and a different timeline as we find a 440 00:25:15,960 --> 00:25:20,080 Speaker 1: way to move forward into our new normal. Mayor Nancy 441 00:25:20,160 --> 00:25:23,080 Speaker 1: Rodering says seven people were killed. Again our top story 442 00:25:23,080 --> 00:25:25,640 Speaker 1: in New Jersey Transit has suspended service in and out 443 00:25:25,680 --> 00:25:29,600 Speaker 1: of New York City, apparently overhead wire issues. Global News 444 00:25:29,600 --> 00:25:31,760 Speaker 1: twenty four hours a day on air and on Bloomberg 445 00:25:31,840 --> 00:25:35,000 Speaker 1: quick Take, powered by more than seven hundred journalists analysts 446 00:25:35,040 --> 00:25:37,000 Speaker 1: in more than a hundred twenty countries. On Michael bar 447 00:25:37,119 --> 00:25:45,160 Speaker 1: This is Bloomberg, Nathan Michael. Thanks on Wall Street time 448 00:25:45,160 --> 00:25:47,760 Speaker 1: for the Bloomberg Sports Update, which on standshop. Thanks Dathan. 449 00:25:47,800 --> 00:25:49,840 Speaker 1: The Yankees had lost three and around blown leads, and 450 00:25:49,920 --> 00:25:52,200 Speaker 1: all three this time they were the ones that came 451 00:25:52,200 --> 00:25:54,800 Speaker 1: from behind down four nothing later six five they beat 452 00:25:54,840 --> 00:25:57,400 Speaker 1: the Reds at the Stadium seven six ten at INDs, 453 00:25:57,400 --> 00:26:00,359 Speaker 1: the winning run square on a wild pitch Isaiah Narco 454 00:26:00,440 --> 00:26:02,840 Speaker 1: left at a three run double Giant Carlos stanton I 455 00:26:02,920 --> 00:26:05,320 Speaker 1: gained tying home run. Now the yankster waite word on 456 00:26:05,359 --> 00:26:08,200 Speaker 1: an m R. I on Luis Savarino's shoulder. He knew 457 00:26:08,200 --> 00:26:10,960 Speaker 1: early on last night something was wrong. On first speech 458 00:26:11,240 --> 00:26:13,119 Speaker 1: something it was like ninety ninety one, you know what 459 00:26:13,320 --> 00:26:17,360 Speaker 1: that'st not mean. But I told I I couldn't get 460 00:26:17,400 --> 00:26:21,280 Speaker 1: a little bit more after that Cyclaney, you know, when 461 00:26:21,480 --> 00:26:25,119 Speaker 1: I was rowing up, it was I wasn't from getting worse. 462 00:26:25,280 --> 00:26:29,600 Speaker 1: So I told him my seven before something even bigger happened. 463 00:26:29,680 --> 00:26:32,720 Speaker 1: I mean, you know, slubber right here. Svorenas made it 464 00:26:32,720 --> 00:26:35,320 Speaker 1: back from multiple injuries over the last few years. That's 465 00:26:35,359 --> 00:26:37,639 Speaker 1: one in Atlanta seven three, they hit three home runs 466 00:26:37,760 --> 00:26:40,119 Speaker 1: and playing a three un shot for Francisco Indoor. They 467 00:26:40,160 --> 00:26:41,760 Speaker 1: win the series and lead the Brays like two and 468 00:26:41,760 --> 00:26:44,080 Speaker 1: a half. In tonight they played the Cubs at Wrigley 469 00:26:44,080 --> 00:26:46,520 Speaker 1: where Baltimore one again. Last night the Orioles and won 470 00:26:46,600 --> 00:26:48,639 Speaker 1: ten in a row. Still in last place with the 471 00:26:48,720 --> 00:26:50,920 Speaker 1: over five hundred, only two games out of the playoff spot. 472 00:26:51,240 --> 00:26:54,240 Speaker 1: NHL free agency, the Rangers signed Vincent Trocheck to a 473 00:26:54,280 --> 00:26:56,800 Speaker 1: seven year dealing with with Carolina. They also added a 474 00:26:56,880 --> 00:27:00,440 Speaker 1: veteran backup goalie Yooslav A lot open if a chip 475 00:27:00,440 --> 00:27:03,080 Speaker 1: golf underway at historic St. Andrews, and right now there's 476 00:27:03,080 --> 00:27:05,640 Speaker 1: a three way to halve the lead at four undertar 477 00:27:06,520 --> 00:27:10,000 Speaker 1: went Bloomberg Sports. John Thanks thirty six on Wall Street 478 00:27:10,040 --> 00:27:13,440 Speaker 1: Time for the Tri State Business Report. Here's Bloomberg's at Cory. 479 00:27:13,680 --> 00:27:16,560 Speaker 1: Manhattan apartment rents hit a record in June, with even 480 00:27:16,560 --> 00:27:19,639 Speaker 1: more pain to come for prospective tenants as the market 481 00:27:19,680 --> 00:27:23,000 Speaker 1: heads into its most competitive season. New leases were signed 482 00:27:23,200 --> 00:27:25,600 Speaker 1: last month at a meeting in a four thousand and 483 00:27:25,680 --> 00:27:29,680 Speaker 1: fifty dollars, according to appraiser Miller Samuel and brokerage Douglas 484 00:27:29,680 --> 00:27:32,679 Speaker 1: Eleman Real Estate. Tommy Hill Figure, which is owned by 485 00:27:32,800 --> 00:27:35,760 Speaker 1: p v H, says it's returning to New York Fashion 486 00:27:35,800 --> 00:27:38,320 Speaker 1: Week for the first time in three years. The brand 487 00:27:38,440 --> 00:27:41,720 Speaker 1: plans to offer what it calls an experiential runway event 488 00:27:41,800 --> 00:27:45,040 Speaker 1: that will unveil the latest see now by now Fall 489 00:27:45,160 --> 00:27:48,879 Speaker 1: twenty two collection New York reached a half million dollars 490 00:27:48,880 --> 00:27:52,600 Speaker 1: settlement to resolve claims of harassment, discrimination, and wage theft 491 00:27:53,000 --> 00:27:55,600 Speaker 1: at a popular Lower Manhattan bar. It's part of a 492 00:27:55,640 --> 00:28:00,000 Speaker 1: crackdown on worker mistreatment. New York Attorney General Letitia James 493 00:28:00,000 --> 00:28:03,480 Speaker 1: Alimes the bar's owner allowed male managers to engage in 494 00:28:03,560 --> 00:28:07,560 Speaker 1: sexual commentary on female workers. That's your Bloomberg Try State 495 00:28:07,600 --> 00:28:11,359 Speaker 1: Business Report. I'm in Corey, Thanks seven on Wall Street. 496 00:28:11,359 --> 00:28:14,080 Speaker 1: Bloomberg Radio is on the air from San Francisco to 497 00:28:14,119 --> 00:28:16,359 Speaker 1: New York, London to Hong Kong. Let's check in with 498 00:28:16,400 --> 00:28:18,320 Speaker 1: our global news team for some of the top stories 499 00:28:18,359 --> 00:28:21,679 Speaker 1: heard on our three hundred affiliate radio stations around the world. 500 00:28:24,640 --> 00:28:27,760 Speaker 1: I'm Steve Podascan on ten ten Wins in New York. 501 00:28:27,840 --> 00:28:31,879 Speaker 1: We're talking about Manhattan rents jumping to get another record. 502 00:28:32,119 --> 00:28:36,080 Speaker 1: Tom corns Anaho on ktr H in Houston. Expensive gasolene 503 00:28:36,119 --> 00:28:39,240 Speaker 1: is keeping more drivers off the road. I'm Gina Servetti 504 00:28:39,320 --> 00:28:42,160 Speaker 1: in for w w BBM in Chicago. I'm reporting that 505 00:28:42,240 --> 00:28:45,040 Speaker 1: a new Fed Bank of Chicago survey shows the US 506 00:28:45,120 --> 00:28:47,880 Speaker 1: economic outlook is worse today than it was at the 507 00:28:47,920 --> 00:28:50,880 Speaker 1: depths of the pandemic. I'm Jeff Bullinger and on w 508 00:28:51,120 --> 00:28:54,400 Speaker 1: I O D in Miami. I'm recording American Airlines will 509 00:28:54,440 --> 00:28:59,080 Speaker 1: resume plates between Miami and five destinations in Cuba this fall. 510 00:28:59,360 --> 00:29:02,400 Speaker 1: I'm killin goll Bloomberg, Davey dishal Medio in London. We've 511 00:29:02,400 --> 00:29:04,960 Speaker 1: been before to your market reaction to the latest political 512 00:29:05,040 --> 00:29:08,800 Speaker 1: tumil in Italy as Mario Jogis government faces a confidence vote. 513 00:29:09,080 --> 00:29:12,520 Speaker 1: ID Gorey on w w J in Detroit. I'm reboarding 514 00:29:12,520 --> 00:29:15,840 Speaker 1: an analysts as second quarter results for most Anto companies 515 00:29:15,920 --> 00:29:18,600 Speaker 1: will probably miss the estimate. And those are some of 516 00:29:18,600 --> 00:29:21,720 Speaker 1: the stories are twenty dred Bloomberg journalists and analysts are 517 00:29:21,760 --> 00:29:24,160 Speaker 1: working on this morning around the world, and speaking of 518 00:29:24,160 --> 00:29:26,920 Speaker 1: second quarter results, we are definitely waiting for those this 519 00:29:26,960 --> 00:29:30,480 Speaker 1: morning from JP Morgan Chase and Morgan Stanley Is Bank 520 00:29:30,600 --> 00:29:35,120 Speaker 1: earnings kickoff this morning. Bloomberg Radio and TV Markets correspondent 521 00:29:35,480 --> 00:29:38,920 Speaker 1: Credi Gupta is with us with more on that. We're 522 00:29:38,920 --> 00:29:42,360 Speaker 1: expecting pretty big moves. I would imagine creedy once those 523 00:29:42,440 --> 00:29:44,840 Speaker 1: numbers hit. We're facing some pretty big moves. Rummer. This 524 00:29:44,920 --> 00:29:47,000 Speaker 1: is not just a stock specific story. This is a 525 00:29:47,000 --> 00:29:49,800 Speaker 1: fundamental story for the entire economy. Now there's a couple 526 00:29:49,760 --> 00:29:52,080 Speaker 1: of different layers. Here's in Nathan, bear with me as 527 00:29:52,120 --> 00:29:54,320 Speaker 1: I as I passed through them, because at the very beginning, 528 00:29:54,640 --> 00:29:57,360 Speaker 1: you do, of course have low lost provisions. How much 529 00:29:57,560 --> 00:30:00,840 Speaker 1: are banks bracing for a recession, sing for some sort 530 00:30:00,840 --> 00:30:03,719 Speaker 1: of losses or things like that. How much faith at 531 00:30:03,720 --> 00:30:05,480 Speaker 1: the end of they do they have in that consumer. 532 00:30:05,560 --> 00:30:09,200 Speaker 1: Remember Jamie Diamond of JP Morgan has been very vocal 533 00:30:09,240 --> 00:30:11,080 Speaker 1: in terms of the strength of the consumer, but did 534 00:30:11,120 --> 00:30:14,640 Speaker 1: ultimately say that, well, a recession isn't off the table, 535 00:30:14,840 --> 00:30:16,120 Speaker 1: So those are gonna be the kind of comments that 536 00:30:16,120 --> 00:30:17,959 Speaker 1: we're gonna hear from him as well. Remember he did 537 00:30:18,040 --> 00:30:21,080 Speaker 1: also this worn last month of an economic quote hurricane 538 00:30:21,560 --> 00:30:24,000 Speaker 1: on the horizon. What that actually entails he was less 539 00:30:24,000 --> 00:30:27,720 Speaker 1: specific about, but hopefully more details from the company itself. Though. 540 00:30:27,880 --> 00:30:30,320 Speaker 1: Remember we're not just watching low lost proposes, Russell watching 541 00:30:30,360 --> 00:30:33,720 Speaker 1: trading revenue, Nathan. The market has tanked year to date, 542 00:30:33,720 --> 00:30:36,440 Speaker 1: so that's gonna be a major one. How do some 543 00:30:36,560 --> 00:30:39,360 Speaker 1: of these trading houses and some of their commodities units 544 00:30:39,440 --> 00:30:42,800 Speaker 1: or their fixed income units actually tread water or perhaps 545 00:30:43,120 --> 00:30:45,960 Speaker 1: make up for some of their other shortfalls? And things 546 00:30:46,000 --> 00:30:48,840 Speaker 1: like investment banking deal volume has been very very low 547 00:30:49,080 --> 00:30:51,520 Speaker 1: for example, So that's gonna be a big question, and 548 00:30:51,720 --> 00:30:54,160 Speaker 1: that's just JP Morgan. Then you got Morgan Stanley, was 549 00:30:54,400 --> 00:30:56,920 Speaker 1: you then have to include their wealth management business and 550 00:30:56,960 --> 00:30:59,720 Speaker 1: of course E trade as well. Yes, certainly will Bloomberg 551 00:30:59,800 --> 00:31:02,400 Speaker 1: Radio TV Markets correspondent Pretty Gupta will be checking way 552 00:31:02,440 --> 00:31:04,960 Speaker 1: back with you next hour on some of the other 553 00:31:05,240 --> 00:31:08,640 Speaker 1: names moving in this pre market. As we watch, futures 554 00:31:08,640 --> 00:31:12,040 Speaker 1: add to yesterday's losses, SMP futures down forty two points down, 555 00:31:12,040 --> 00:31:15,800 Speaker 1: futures down three four, NASTAC futures are lower by one 556 00:31:15,880 --> 00:31:23,480 Speaker 1: hundred sixteen points. This is Bloomberg Bloomberg eleven three oh 557 00:31:23,480 --> 00:31:25,760 Speaker 1: weather mix of sun and clouds today, showers and storms 558 00:31:25,760 --> 00:31:28,240 Speaker 1: developing highs near ninety degrees will be in the UPR 559 00:31:28,240 --> 00:31:31,280 Speaker 1: eight ees tomorrow and the next day, with partly the 560 00:31:31,360 --> 00:31:34,200 Speaker 1: mostly sunny skies right now seventy two in Central Park 561 00:31:37,160 --> 00:31:40,560 Speaker 1: Markets headlines and breaking news twenty four hours a day 562 00:31:40,680 --> 00:31:43,680 Speaker 1: at Bloomberg dot Com, the Bloomberg Business at and at 563 00:31:43,680 --> 00:31:53,360 Speaker 1: Bloomberg Quick Tape. He's a Bloomberg Business Flash and I'm 564 00:31:53,440 --> 00:31:56,000 Speaker 1: Karer a Moscow. You watch. Stock index futures are falling 565 00:31:56,040 --> 00:31:58,560 Speaker 1: along with stocks in Europe. And the dollar resuming its 566 00:31:58,560 --> 00:32:01,840 Speaker 1: advance after how US and Nation hard and expectations more 567 00:32:01,880 --> 00:32:05,840 Speaker 1: aggressive federal reserve monetary tightening that could trigger our recession. 568 00:32:05,840 --> 00:32:08,080 Speaker 1: We checked the markets every fifteen minutes throughout the trading 569 00:32:08,160 --> 00:32:11,720 Speaker 1: day on Bloomberg. SNP futures down forty one points down, 570 00:32:11,720 --> 00:32:15,320 Speaker 1: features down three hundred nine, NASDAG futures down one hundred ten. 571 00:32:15,400 --> 00:32:18,560 Speaker 1: The decks in Germany is down six tenths of uppercent ten. 572 00:32:18,640 --> 00:32:21,280 Speaker 1: Your Treasury down seven thirty seconds, yield two point nine 573 00:32:21,320 --> 00:32:23,600 Speaker 1: six percent. They yield on the two year three point 574 00:32:23,640 --> 00:32:26,840 Speaker 1: one nine percent. NIMEX screwed oil is down two point 575 00:32:26,840 --> 00:32:29,160 Speaker 1: four percent on two dollars thirty four cents and ninety 576 00:32:29,160 --> 00:32:31,960 Speaker 1: three dollars ninety six cents of barrel comics gold is 577 00:32:31,960 --> 00:32:34,760 Speaker 1: down one point two percent on twenty one dollars forty cents. 578 00:32:34,800 --> 00:32:38,400 Speaker 1: At seventeen thirteen eighty announced, the euro one point zero 579 00:32:38,480 --> 00:32:41,000 Speaker 1: zero three five against the dollar, British found one point 580 00:32:41,040 --> 00:32:43,360 Speaker 1: one eight six four and the end one thirty eight 581 00:32:43,360 --> 00:32:46,360 Speaker 1: point seven eight and Bitcoin this morning is higher, up 582 00:32:46,360 --> 00:32:49,600 Speaker 1: six tenths per cent in nineteen thousand, seven hundred eighty dollars. 583 00:32:49,880 --> 00:32:52,520 Speaker 1: That's a Bloomberg Business Flash. Now here's Michael Barr with 584 00:32:52,560 --> 00:32:55,120 Speaker 1: more on what's going on around the world. Muchael, Thank 585 00:32:55,160 --> 00:32:57,640 Speaker 1: you very much. Karen high states talks in the Middle 586 00:32:57,640 --> 00:33:00,320 Speaker 1: East during his first full day in Israel. Has then 587 00:33:00,360 --> 00:33:03,840 Speaker 1: Biden and Prime Minister Lapide will hold a full joint 588 00:33:03,880 --> 00:33:07,600 Speaker 1: briefing later today. A national wide curfew was in effect 589 00:33:07,640 --> 00:33:10,480 Speaker 1: in Sri Lanka from last night till this morning after 590 00:33:10,520 --> 00:33:14,760 Speaker 1: protesters surrounded and entered the Prime Minister's office in Colombo. Yesterday, 591 00:33:15,080 --> 00:33:18,240 Speaker 1: the Prime Minister was made acting president after the former 592 00:33:18,240 --> 00:33:21,640 Speaker 1: president stepped down. In baseball, the Yankees beat the Reds. 593 00:33:21,680 --> 00:33:25,400 Speaker 1: The Mets beat the Braves. The Nationals lost both games 594 00:33:25,440 --> 00:33:28,360 Speaker 1: of a double header to the Mariners. The Orioles a 595 00:33:28,480 --> 00:33:31,280 Speaker 1: k a. Super Dudes beat the Cobbs the win their 596 00:33:31,360 --> 00:33:34,680 Speaker 1: tenth straight. The Giants stopped the Diamondbacks. Hey, he's lost 597 00:33:34,680 --> 00:33:37,000 Speaker 1: to the Rangers. Global needs twenty four hours a day 598 00:33:37,000 --> 00:33:39,320 Speaker 1: on here and on Bloomberg quick Say, powered by more 599 00:33:39,360 --> 00:33:42,440 Speaker 1: than journalists and analysts more than a hundred twenty countries. 600 00:33:42,520 --> 00:33:44,560 Speaker 1: And Michael bar this is Bloomberg. Naight, how about them? 601 00:33:44,600 --> 00:33:47,800 Speaker 1: Ohs okay, Michael, thank you. It is nine on Wall 602 00:33:47,840 --> 00:33:50,760 Speaker 1: Street line from the Bloomberg Interactive Brokers Studios. This is 603 00:33:50,880 --> 00:33:54,320 Speaker 1: Bloomberg Daybreak at the start of bank earning season. This morning, 604 00:33:54,400 --> 00:33:57,440 Speaker 1: JP Morgan Chase and Morgan Stanley the first of the 605 00:33:57,440 --> 00:33:59,840 Speaker 1: big Wall Street firms to open their second quarter. Bucks 606 00:33:59,840 --> 00:34:03,280 Speaker 1: and Bloomberg Global Finance correspondent Shanali Bassik is back with 607 00:34:03,400 --> 00:34:06,440 Speaker 1: us this morning for more on what to expect tionally. 608 00:34:06,520 --> 00:34:09,120 Speaker 1: This is a really important one because we've already heard 609 00:34:09,160 --> 00:34:11,759 Speaker 1: from JP Morgan Chase CEO Jamie Diamond. Of course that 610 00:34:11,840 --> 00:34:15,000 Speaker 1: economic hurricane quote we've all been talking about. Now we 611 00:34:15,080 --> 00:34:18,240 Speaker 1: get actual numbers to see whether we're in that storm 612 00:34:18,360 --> 00:34:20,920 Speaker 1: right now. Yeah, certainly, And he does take questions from 613 00:34:20,960 --> 00:34:23,480 Speaker 1: media and analysts, and I'm sure he'll get many on 614 00:34:23,600 --> 00:34:26,720 Speaker 1: what a potential one hundred basis point rate hike could 615 00:34:26,760 --> 00:34:29,719 Speaker 1: mean for JP Morgan because on one hand, it's more 616 00:34:29,760 --> 00:34:31,800 Speaker 1: in an interest income for the bank that is already 617 00:34:31,800 --> 00:34:35,319 Speaker 1: expected to start bringing in billions more. But on the 618 00:34:35,360 --> 00:34:37,840 Speaker 1: other hand, it's happening because people are very worried about 619 00:34:37,840 --> 00:34:41,200 Speaker 1: inflation and people are very worried about the economic future ahead. 620 00:34:41,440 --> 00:34:44,760 Speaker 1: So are we going to start seeing provisions for loan losses, 621 00:34:45,160 --> 00:34:48,520 Speaker 1: higher expectations for charge offs when we look at the 622 00:34:48,560 --> 00:34:51,719 Speaker 1: credit book at JP Morgan and any potential hints of 623 00:34:52,000 --> 00:34:55,799 Speaker 1: deteriorating credit quality, and you gotta fake in terms of 624 00:34:55,840 --> 00:34:59,160 Speaker 1: credit as well, looking at the credit card business, the 625 00:34:59,239 --> 00:35:01,960 Speaker 1: health of the u U S consumer. JP Morgan obviously 626 00:35:02,000 --> 00:35:05,720 Speaker 1: has a really big chase credit card business as well. Yeah, 627 00:35:05,760 --> 00:35:08,439 Speaker 1: and you did see a slow down and lending last 628 00:35:08,520 --> 00:35:10,520 Speaker 1: year when it came to credit cards. There was a 629 00:35:10,560 --> 00:35:12,560 Speaker 1: real hope that that would start to tick up. But 630 00:35:12,680 --> 00:35:15,280 Speaker 1: with the economic picture being where it is, and remember 631 00:35:15,280 --> 00:35:17,239 Speaker 1: we reported JP Morgan is one of the first of 632 00:35:17,239 --> 00:35:20,680 Speaker 1: the large banks to start to let people go in 633 00:35:21,200 --> 00:35:23,880 Speaker 1: a very specific business. When it comes to the mortgage business, 634 00:35:23,920 --> 00:35:26,439 Speaker 1: there is a slowdown. So are we going to see 635 00:35:26,480 --> 00:35:30,520 Speaker 1: more layoffs on Wall Street and Corporate America more largely? 636 00:35:30,920 --> 00:35:34,319 Speaker 1: That will start to tighten the way consumers start to 637 00:35:34,360 --> 00:35:37,560 Speaker 1: think about spending and borrowing. And that kind of goes 638 00:35:37,640 --> 00:35:40,640 Speaker 1: as well to the sort of dichotomy when it comes 639 00:35:40,680 --> 00:35:44,960 Speaker 1: to higher interest rates. Obviously it makes loans a lot 640 00:35:45,400 --> 00:35:49,480 Speaker 1: less attractive for bank customers. But if you're a saver, 641 00:35:50,239 --> 00:35:52,600 Speaker 1: maybe this is a good environment for you. Yeah, that's 642 00:35:52,600 --> 00:35:55,160 Speaker 1: an interesting question. You see, for example, over at Goldman 643 00:35:55,239 --> 00:35:57,880 Speaker 1: sacks at the markets business. Those interest rates are now 644 00:35:57,920 --> 00:36:00,160 Speaker 1: one point two percent. That is on the high or 645 00:36:00,320 --> 00:36:02,759 Speaker 1: end of things that you're seeing here. And there are 646 00:36:02,800 --> 00:36:06,400 Speaker 1: certainly analysts that are thinking, okay, maybe these deposit betas 647 00:36:06,640 --> 00:36:08,799 Speaker 1: and the costs for the banks as they pay out 648 00:36:08,920 --> 00:36:12,120 Speaker 1: higher interest will start to impact the banks too. And 649 00:36:12,160 --> 00:36:15,000 Speaker 1: what are we thinking in terms of performance for the 650 00:36:15,080 --> 00:36:18,600 Speaker 1: trading desk, either for JP Morgan or Morgan Stanley. You 651 00:36:18,640 --> 00:36:21,080 Speaker 1: have to think that they're going to be out performing 652 00:36:21,120 --> 00:36:23,440 Speaker 1: given all the market volatility that we've seen over the 653 00:36:23,480 --> 00:36:26,040 Speaker 1: last several months, especially JP Morgan because a lot of 654 00:36:26,040 --> 00:36:29,840 Speaker 1: that volatility came in the rates, businesses and commodities, and 655 00:36:29,960 --> 00:36:33,200 Speaker 1: JP Morgan is humongous when it comes to those businesses. 656 00:36:33,520 --> 00:36:36,719 Speaker 1: Morgan Stanley is better known for equities. Typically, they are 657 00:36:36,760 --> 00:36:40,000 Speaker 1: getting better it fixed income Traditionally they used to make 658 00:36:40,000 --> 00:36:42,560 Speaker 1: well under two billion. This quarter they're expected to make 659 00:36:42,560 --> 00:36:44,759 Speaker 1: more than that. So the question will come down to 660 00:36:44,840 --> 00:36:49,120 Speaker 1: market share gains for Morgan Stanley and maintaining that very 661 00:36:49,200 --> 00:36:51,920 Speaker 1: competitive spot for JP Morgan. And how about in our 662 00:36:52,000 --> 00:36:55,720 Speaker 1: last minute here Shannelli on the deal making investment banking side. 663 00:36:55,800 --> 00:36:58,400 Speaker 1: It's been tough out there for M and A and 664 00:36:58,400 --> 00:37:01,120 Speaker 1: and that's a big one for both these banks as well, certainly, 665 00:37:01,200 --> 00:37:03,920 Speaker 1: and you do see fees starting to come down drastically, 666 00:37:04,200 --> 00:37:06,360 Speaker 1: especially when it comes to equity issuance, because there's been 667 00:37:06,400 --> 00:37:09,360 Speaker 1: virtually no big I p O s and debt underwriting, 668 00:37:09,360 --> 00:37:12,520 Speaker 1: where JAP and Morgan has traditionally in recent quarters at 669 00:37:12,560 --> 00:37:14,960 Speaker 1: least biden more than a billion dollars. The business was 670 00:37:15,000 --> 00:37:17,839 Speaker 1: so hot they are expected to bring in less than that. 671 00:37:18,320 --> 00:37:21,760 Speaker 1: Bloomberg Global Finance correspondent Snelly basket with us this morning 672 00:37:21,800 --> 00:37:24,879 Speaker 1: ahead of JP Morgan Chase results. Were expecting those around 673 00:37:24,960 --> 00:37:29,040 Speaker 1: seven am Wall Street Time, followed closely by Morgan Stanley 674 00:37:29,120 --> 00:37:31,880 Speaker 1: at seven thirty. Of course, we will have full coverage 675 00:37:31,880 --> 00:37:35,000 Speaker 1: for you throughout the day here on Bloomberg Radio Shinale. 676 00:37:35,040 --> 00:37:37,960 Speaker 1: Thank you, Karen Nathan. It is from fifty two on 677 00:37:38,000 --> 00:37:40,480 Speaker 1: Wall Street Time for the Bloomberg Law Report, brought to 678 00:37:40,560 --> 00:37:45,080 Speaker 1: you by American Arbitration Association. Business disputes are inevitable, resolve 679 00:37:45,160 --> 00:37:49,080 Speaker 1: faster with the American Arbitration Association, the global leader in 680 00:37:49,120 --> 00:37:52,920 Speaker 1: alternative dispute resolution for over ninety years. More at a 681 00:37:53,040 --> 00:37:55,959 Speaker 1: dr dot org. Let's get to the legal stories we're 682 00:37:55,960 --> 00:38:03,000 Speaker 1: watching this Morning from Bloomberg's Jeff Bellinger. The Department of 683 00:38:03,040 --> 00:38:06,279 Speaker 1: Health and Human Services has a warning for pharmacists. They 684 00:38:06,280 --> 00:38:09,719 Speaker 1: can be charged with violating federal sex discrimination laws if 685 00:38:09,760 --> 00:38:13,920 Speaker 1: they refuse to fill prescriptions for miscarriage management. The National 686 00:38:14,000 --> 00:38:17,360 Speaker 1: Labor Relations Board agreed to review a decision granting West 687 00:38:17,400 --> 00:38:20,600 Speaker 1: Coast Port truckers the right to form a union. Amazon 688 00:38:20,719 --> 00:38:23,560 Speaker 1: dot Com told Senator Red Markie that its ring unit 689 00:38:23,680 --> 00:38:27,440 Speaker 1: has provided security camera recordings to law enforcement in a 690 00:38:27,480 --> 00:38:31,920 Speaker 1: few emergency situations that did not require a user's permission. 691 00:38:31,960 --> 00:38:36,800 Speaker 1: Bloomberg Law everything you need, all on one legal research platform, 692 00:38:36,960 --> 00:38:41,600 Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more 693 00:38:41,640 --> 00:38:45,800 Speaker 1: at Bloomberg Law dot com. Right, Jeff. Thanks. In another 694 00:38:45,920 --> 00:38:49,880 Speaker 1: legal story, we're watching as the Georgia investigation into potential 695 00:38:49,960 --> 00:38:54,560 Speaker 1: criminal interference in the election heats up, Prosecutors are trying 696 00:38:54,600 --> 00:38:58,120 Speaker 1: to force allies and advisers of former President Donald Trump 697 00:38:58,280 --> 00:39:01,400 Speaker 1: to come to Atlanta to testify before a special grand jury. 698 00:39:01,680 --> 00:39:05,200 Speaker 1: Republican Senator Lindsey Graham has vowed to fight the subpoena 699 00:39:05,280 --> 00:39:08,799 Speaker 1: issued for his testimony, and now Georgia judge has ordered 700 00:39:08,880 --> 00:39:11,520 Speaker 1: him to appear before the grand jury. Next month for 701 00:39:11,640 --> 00:39:16,279 Speaker 1: Laura Bloomberg's June Grosso speaks to former federal prosecutor Jennifer Rogers, 702 00:39:16,320 --> 00:39:19,920 Speaker 1: a lecturer at Columbia Law School. The judge said that 703 00:39:19,960 --> 00:39:24,160 Speaker 1: Graham was a necessary and material witness to the grand 704 00:39:24,200 --> 00:39:26,920 Speaker 1: jury probe. What else can Graham do to get out 705 00:39:26,920 --> 00:39:29,760 Speaker 1: of this, Well, he's going to ultimately have to comply. 706 00:39:29,920 --> 00:39:32,279 Speaker 1: I suspect he can get more time if he wants 707 00:39:32,320 --> 00:39:36,359 Speaker 1: more time. August is pretty close to now, so I'm 708 00:39:36,400 --> 00:39:39,040 Speaker 1: sure if you can work something out with the timing. 709 00:39:39,440 --> 00:39:43,200 Speaker 1: But this is a legitimate subpoena at Georgia. Judge has 710 00:39:43,200 --> 00:39:48,960 Speaker 1: signed off. They have ways of getting cooperation from other states, 711 00:39:49,160 --> 00:39:51,520 Speaker 1: so that in the worst case scenario playing in al 712 00:39:51,560 --> 00:39:54,200 Speaker 1: for Lindsay Graham, if he absolutely refused to comply, he 713 00:39:54,239 --> 00:39:57,640 Speaker 1: could be arrested and brought to Georgia to testify. So 714 00:39:57,760 --> 00:40:00,680 Speaker 1: he certainly doesn't want to trigger that happen name, so 715 00:40:00,920 --> 00:40:04,440 Speaker 1: he is going to have to show up there the 716 00:40:04,560 --> 00:40:07,880 Speaker 1: move to quash the subpoena. But this judge has already 717 00:40:07,920 --> 00:40:10,480 Speaker 1: said that he finds, you know, he's been necessary witnessed, 718 00:40:10,480 --> 00:40:12,640 Speaker 1: so that's out. So he's going to have to comply, 719 00:40:13,080 --> 00:40:15,000 Speaker 1: is it? Just political that he doesn't want to show 720 00:40:15,080 --> 00:40:17,399 Speaker 1: up because you know, we all know about the two 721 00:40:17,400 --> 00:40:21,279 Speaker 1: calls he made to the Georgia Secretary of State Raffensburger. 722 00:40:21,360 --> 00:40:25,600 Speaker 1: Raefinsburger has already testified to the grand jury, and he's 723 00:40:25,600 --> 00:40:28,520 Speaker 1: been told that he's a witness, he's not a subject 724 00:40:28,640 --> 00:40:31,279 Speaker 1: or a target of the investigation. Yeah, I mean, I 725 00:40:31,280 --> 00:40:33,880 Speaker 1: think there's a couple of things going on. One thing 726 00:40:34,040 --> 00:40:37,040 Speaker 1: is in your own self interest. You want to make 727 00:40:37,040 --> 00:40:40,400 Speaker 1: sure that you're not in jeopardy, So being told you're 728 00:40:40,440 --> 00:40:43,760 Speaker 1: not a target is one thing. He might also actually 729 00:40:43,800 --> 00:40:47,799 Speaker 1: be seeking technical immunity. He may want an actual order 730 00:40:47,800 --> 00:40:51,600 Speaker 1: of immunity, so his lawyer would be negotiating that. And 731 00:40:51,640 --> 00:40:54,080 Speaker 1: then the political side, as you mentioned, I mean he's 732 00:40:54,080 --> 00:40:57,880 Speaker 1: been a loyal Trump supporter. He doesn't want to be 733 00:40:57,960 --> 00:41:01,040 Speaker 1: seen as going away from at right, and he still 734 00:41:01,040 --> 00:41:03,480 Speaker 1: wants to be seen as a loyal Trump supporter. So 735 00:41:03,640 --> 00:41:06,960 Speaker 1: I think that those things combined is why he's reluctant. 736 00:41:07,200 --> 00:41:08,920 Speaker 1: But he probably knows he's going to have to do it. 737 00:41:08,960 --> 00:41:12,320 Speaker 1: This is a little bit of show I'm resisting. I'm 738 00:41:12,360 --> 00:41:14,480 Speaker 1: not doing it. They have to come get me and 739 00:41:14,600 --> 00:41:16,720 Speaker 1: then lo and behold in a couple of weeks areas 740 00:41:16,719 --> 00:41:19,080 Speaker 1: in Georgia, Right, what he wants to give this kind 741 00:41:19,080 --> 00:41:22,440 Speaker 1: of impression of still being on team Trump and he 742 00:41:22,560 --> 00:41:25,680 Speaker 1: only has to go down there because he has absolutely 743 00:41:25,800 --> 00:41:27,960 Speaker 1: no choice. Do you think it would look bad for 744 00:41:28,000 --> 00:41:31,840 Speaker 1: a sitting senator to ask for immunity? I think it 745 00:41:31,960 --> 00:41:33,840 Speaker 1: used to be that if you were a senator and 746 00:41:34,000 --> 00:41:37,560 Speaker 1: you ask for immunity from criminal prosecution, everyone would be like, 747 00:41:37,640 --> 00:41:39,759 Speaker 1: that's so outrageous. You know that you think you did 748 00:41:39,800 --> 00:41:43,320 Speaker 1: something that you need immunity for. Nowadays we have people 749 00:41:43,360 --> 00:41:46,360 Speaker 1: asking for pardons. Right. It's kind of in a different world. 750 00:41:46,560 --> 00:41:48,719 Speaker 1: And if there are a lot of criminal defense lawyers who, 751 00:41:48,719 --> 00:41:51,719 Speaker 1: if they were representing Lindsey Graham, would say, thank you 752 00:41:51,880 --> 00:41:54,880 Speaker 1: for your statement that he's not a target, but we 753 00:41:54,920 --> 00:41:58,680 Speaker 1: want immunity. You know, that is what really protects your clients. 754 00:41:59,520 --> 00:42:02,480 Speaker 1: And as for Rogers of Columbia Law School speaking with 755 00:42:02,560 --> 00:42:06,320 Speaker 1: Bloomberg's June Grosso, catch where that interview plus analysis of 756 00:42:06,360 --> 00:42:09,880 Speaker 1: the latest legal news by subscribing to the Bloomberg Law Podcast, 757 00:42:10,120 --> 00:42:13,440 Speaker 1: are downloading the show at Bloomberg dot com slash podcast. 758 00:42:13,719 --> 00:42:17,040 Speaker 1: Attorneys can find exceptional legal research and business development tools 759 00:42:17,120 --> 00:42:20,240 Speaker 1: at Bloomberg Law dot com and on the Bloomberg terminal 760 00:42:20,400 --> 00:42:23,560 Speaker 1: at b law Go and again. Futures this morning are 761 00:42:23,719 --> 00:42:27,880 Speaker 1: moving lower. SMP futures down thirty seven points down, futures 762 00:42:27,880 --> 00:42:31,680 Speaker 1: down two hundred eighty three and ASDAG futures down. The 763 00:42:31,680 --> 00:42:34,520 Speaker 1: ten year Treasury down eight thirty seconds, held two point 764 00:42:34,560 --> 00:42:38,880 Speaker 1: nine six per cent and still ahead. On Bloomberg Daybreak, 765 00:42:38,960 --> 00:42:41,239 Speaker 1: we have a check on the business headlines and all 766 00:42:41,280 --> 00:42:44,279 Speaker 1: the news you need to start your day. Am. This 767 00:42:44,920 --> 00:42:45,640 Speaker 1: is Bloomberg