1
00:00:01,520 --> 00:00:04,880
Speaker 1: Life from the Bloomberg Interactive Burger Studios. This is is Bloomberg

2
00:00:04,960 --> 00:00:08,720
Speaker 1: Daybreak for Tuesday, July twenty six two. Coming up this hour,

3
00:00:08,960 --> 00:00:12,000
Speaker 1: Former President Trump returns to d C as talks of

4
00:00:12,039 --> 00:00:14,760
Speaker 1: another run for office heat up. The FED prepares another

5
00:00:14,800 --> 00:00:17,760
Speaker 1: rate high as the Central Banks policy meeting gets underway.

6
00:00:17,840 --> 00:00:21,439
Speaker 1: Walmart shares sank after the company lowers its forecast, and

7
00:00:21,520 --> 00:00:24,919
Speaker 1: candidates in the UK make their case to replace Boris Johnson.

8
00:00:25,000 --> 00:00:27,560
Speaker 1: New York's mt A says it may take thirteen years

9
00:00:27,560 --> 00:00:30,560
Speaker 1: to match pre COVID ridership. Let's talk of speaker Belosi

10
00:00:30,640 --> 00:00:34,160
Speaker 1: possibly heading to Taiwan has made China furious. I'm Michael

11
00:00:34,159 --> 00:00:36,800
Speaker 1: barn More, I'm Jim Stagower. In sports, the Mets and

12
00:00:36,920 --> 00:00:39,520
Speaker 1: Yank You both in first place, begin a two game

13
00:00:39,600 --> 00:00:45,600
Speaker 1: Subway series tonight at City Field. That's All's train ahead

14
00:00:45,680 --> 00:00:49,240
Speaker 1: on Bloomberg day Break on Bloomberg eleven three on New York,

15
00:00:49,440 --> 00:00:54,120
Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston,

16
00:00:54,400 --> 00:00:58,840
Speaker 1: Bloomberg nine sixties and Francisco Sirius XM one nine team

17
00:00:59,040 --> 00:01:01,960
Speaker 1: and around the world long Bloomberg Radio dot Com and

18
00:01:02,120 --> 00:01:08,640
Speaker 1: via the Bloomberg Business app. Good morning. I'm Nathan Hagger

19
00:01:08,959 --> 00:01:11,720
Speaker 1: and I'm Karen Moscow and US DOT index futures are

20
00:01:11,800 --> 00:01:13,959
Speaker 1: lower this morning. We are coming up to a six

21
00:01:13,959 --> 00:01:15,880
Speaker 1: oh one on Wall Street. I'm mean check the markets

22
00:01:15,920 --> 00:01:18,680
Speaker 1: every fifteen minutes throughout the trading day. On Bloomberg, U

23
00:01:18,720 --> 00:01:20,840
Speaker 1: S and P Future is down about ten points down

24
00:01:20,840 --> 00:01:23,600
Speaker 1: Future is down a hundred twenty nine and NASDAG Future

25
00:01:23,680 --> 00:01:26,000
Speaker 1: is down about thirty. The ten year treasury up six

26
00:01:26,000 --> 00:01:29,160
Speaker 1: thirty seconds. He had two points seven seven percent, and

27
00:01:29,240 --> 00:01:31,720
Speaker 1: they yield on the two year at three point one

28
00:01:31,800 --> 00:01:34,800
Speaker 1: percent and the euro one point zero one seven three

29
00:01:34,840 --> 00:01:37,240
Speaker 1: against the dollar. Nathan, Karen, We'll get back to markets

30
00:01:37,240 --> 00:01:39,520
Speaker 1: in a moment, but we begin in the nation's capital,

31
00:01:39,520 --> 00:01:42,720
Speaker 1: where former President Donald Trump returns for the first time

32
00:01:42,800 --> 00:01:45,840
Speaker 1: since leaving office. Amy Morris has details from our Bloomberg

33
00:01:46,480 --> 00:01:49,600
Speaker 1: newsroom in Washington. Donald Trump will be back inside the

34
00:01:49,600 --> 00:01:53,440
Speaker 1: Beltway as Republican rivals maneuver for a possible primary challenge

35
00:01:53,600 --> 00:01:57,360
Speaker 1: and lawmakers probe his culpability for the January six insurrection.

36
00:01:57,640 --> 00:02:00,360
Speaker 1: He'll deliver the keynote address at the America First Agenda

37
00:02:00,440 --> 00:02:03,639
Speaker 1: Summit held by the conservative think tank The America First

38
00:02:03,680 --> 00:02:07,320
Speaker 1: Policy institute launched by some former Trump One House advisers.

39
00:02:07,680 --> 00:02:09,519
Speaker 1: He's not expected to announce a run for the White

40
00:02:09,560 --> 00:02:12,720
Speaker 1: House during today's speech, which will be his highest profile

41
00:02:12,800 --> 00:02:17,120
Speaker 1: speech since leaving office in Washington. I'm anymore as Bloomberg daybreak.

42
00:02:17,200 --> 00:02:19,240
Speaker 1: All right, Amy, thank you, but we stay in Washington,

43
00:02:19,320 --> 00:02:22,000
Speaker 1: where the Federal Reserves two day meeting kicks off today.

44
00:02:22,040 --> 00:02:24,239
Speaker 1: The Central Bank is set to raise rates again. That's

45
00:02:24,240 --> 00:02:27,239
Speaker 1: just by GDP numbers due out Thursday, which could show

46
00:02:27,280 --> 00:02:31,600
Speaker 1: the US contracted and back to back quarters, signaling a recession. However,

47
00:02:31,639 --> 00:02:35,240
Speaker 1: Moody Chief economist Marksandy tells us there are not recession

48
00:02:35,360 --> 00:02:37,480
Speaker 1: signs at the moment. When you have a lot of jobs,

49
00:02:37,520 --> 00:02:39,680
Speaker 1: you have low lay offering, a lot of consumer spending.

50
00:02:39,760 --> 00:02:43,320
Speaker 1: Income growth is strong. That's not consistent with a recession.

51
00:02:43,440 --> 00:02:46,800
Speaker 1: This is not a recession. Moody Chief Economist Marksany says

52
00:02:46,840 --> 00:02:49,480
Speaker 1: if the economy does contract, it will likely be in

53
00:02:49,520 --> 00:02:52,160
Speaker 1: the next six months. He spoke at our Washington corresponded

54
00:02:52,240 --> 00:02:55,200
Speaker 1: Joe Matthew on Bloomberg's sound on Catch the Program weekdays

55
00:02:55,200 --> 00:02:58,280
Speaker 1: at five pm Eastern on Bloomberg Radio, Karen Futures and

56
00:02:58,360 --> 00:03:01,079
Speaker 1: Laura ahead of the Fed meeting. Lisa Ericson, senior vice

57
00:03:01,080 --> 00:03:04,440
Speaker 1: president with US Bank, is preaching caution. We are modestly

58
00:03:04,520 --> 00:03:08,920
Speaker 1: cautious advising our clients to move all other things being equal,

59
00:03:08,960 --> 00:03:13,239
Speaker 1: away from equity and more to quality fixed income, where

60
00:03:13,280 --> 00:03:16,240
Speaker 1: again historically they've been able to hold up in times

61
00:03:16,320 --> 00:03:19,440
Speaker 1: of market volatility. US Banks Lisa Rickson says the US

62
00:03:19,480 --> 00:03:22,880
Speaker 1: will narrowly avoid a recession as inflation begins to receive well.

63
00:03:22,960 --> 00:03:25,320
Speaker 1: Nathan turning to oil now, crude is advancing for a

64
00:03:25,400 --> 00:03:28,360
Speaker 1: second session. Signs of a tide market are offsetting concerns

65
00:03:28,360 --> 00:03:31,280
Speaker 1: about an economic slowdown. And checking prices now nim Ex

66
00:03:31,320 --> 00:03:33,720
Speaker 1: screwed oil is up two percent of a dollar ninety

67
00:03:33,720 --> 00:03:36,360
Speaker 1: and ninety eight dollars sixty two cents and barrel brent

68
00:03:36,480 --> 00:03:39,720
Speaker 1: at one point seven a hundred six dollars nine six cents.

69
00:03:39,920 --> 00:03:43,600
Speaker 1: We're also seeing volatility and overseas energy markets. Russia plans

70
00:03:43,600 --> 00:03:46,640
Speaker 1: to curb natural gas flows on the Nordstream pipeline, and

71
00:03:46,640 --> 00:03:49,600
Speaker 1: that's joelding energy markets in Europe and the UK. Karen

72
00:03:49,640 --> 00:03:52,600
Speaker 1: candidates her Prime minister, faced off in another primetime debate

73
00:03:52,720 --> 00:03:55,680
Speaker 1: last night. Liz Trust and Rischi soon actrifying to replace

74
00:03:55,720 --> 00:03:58,560
Speaker 1: Boris Johnson. Bloomberg's You and Potts joins us from London

75
00:03:58,600 --> 00:04:00,600
Speaker 1: with more good Morning You and give warning Nathan and

76
00:04:00,680 --> 00:04:03,520
Speaker 1: Karen strong stuff from the final two candidates in the

77
00:04:03,520 --> 00:04:07,200
Speaker 1: Conservative Party leadership race. In a TV debate, Foreign Secretary

78
00:04:07,280 --> 00:04:09,960
Speaker 1: Liz Trust warn that tax rises would send the UK

79
00:04:10,200 --> 00:04:14,320
Speaker 1: into a recession. Everybody thinks the putting up taxes at

80
00:04:14,360 --> 00:04:17,760
Speaker 1: this moment is going to hurt the economy. You can't

81
00:04:17,760 --> 00:04:22,080
Speaker 1: put up taxes and get gross If we follow Riscie's plans,

82
00:04:22,480 --> 00:04:26,520
Speaker 1: we are headed for. That was Foreign Sectuary Liz Trust. There. Meanwhile,

83
00:04:26,560 --> 00:04:29,799
Speaker 1: former Chancellor Riscie Sunac calam that his opponent's tax plans

84
00:04:29,800 --> 00:04:33,480
Speaker 1: would push up inflation and mortgages. The proposals would mean

85
00:04:33,520 --> 00:04:36,880
Speaker 1: that we get the short term sugar rush of unfunded

86
00:04:36,880 --> 00:04:39,599
Speaker 1: borrowed tax cars, but that would be followed by the

87
00:04:39,720 --> 00:04:42,760
Speaker 1: crash of higher prices and higher mortgage rates. That was

88
00:04:42,800 --> 00:04:45,520
Speaker 1: former Chancellor Rishi Sunach. Whoever wins the six week long

89
00:04:45,560 --> 00:04:48,159
Speaker 1: contest will end up as the next British Prime minister.

90
00:04:48,279 --> 00:04:50,320
Speaker 1: But with a tax like these, it's easy to forget

91
00:04:50,360 --> 00:04:53,239
Speaker 1: they're both members of the same political party in London.

92
00:04:53,279 --> 00:04:55,360
Speaker 1: I'm you in parts in both Daybreak You and thank

93
00:04:55,360 --> 00:04:57,360
Speaker 1: you Beck. Here in the US, corporate earnings are in

94
00:04:57,400 --> 00:05:00,320
Speaker 1: focus today and shares of Walmart are down made and

95
00:05:00,320 --> 00:05:02,880
Speaker 1: a half percent in early training after the company lowered

96
00:05:02,920 --> 00:05:05,440
Speaker 1: its forecast for the second quarter. Bloomberg's you need a

97
00:05:05,440 --> 00:05:07,320
Speaker 1: Young joins us Live with the details or we need

98
00:05:07,360 --> 00:05:10,200
Speaker 1: a good morning, Good Morning care in analysts say Walmart's

99
00:05:10,240 --> 00:05:12,880
Speaker 1: warning gives more insight into the health of the U.

100
00:05:13,000 --> 00:05:16,200
Speaker 1: S consumer that's likely to signal more pain ahead for

101
00:05:16,279 --> 00:05:19,440
Speaker 1: retail stocks as they take on food and gas inflation.

102
00:05:19,880 --> 00:05:23,119
Speaker 1: Morgan Stanley cut its price target for Walmart and says

103
00:05:23,160 --> 00:05:26,159
Speaker 1: it challenges the broker's view of the retail giant as

104
00:05:26,160 --> 00:05:29,880
Speaker 1: a safe haven play. City analysts didn't think Walmart would

105
00:05:29,920 --> 00:05:32,359
Speaker 1: be hit as much as others, and say the news

106
00:05:32,400 --> 00:05:35,880
Speaker 1: is as signed that marginally higher income consumers are feeling

107
00:05:35,920 --> 00:05:39,400
Speaker 1: the pitch from inflation, But Piper Sandler says it's too

108
00:05:39,400 --> 00:05:42,400
Speaker 1: early to take a more constructive view on Walmart, so

109
00:05:42,440 --> 00:05:45,640
Speaker 1: analysts there are waiting on a more broad earnings reset

110
00:05:45,760 --> 00:05:48,800
Speaker 1: industry wide Live in New York, I'm really need a

111
00:05:48,800 --> 00:05:51,680
Speaker 1: young Bloomberg, Daybreak need a thanks Back. In Europe, UBS

112
00:05:51,760 --> 00:05:54,200
Speaker 1: reported week er than expected profit for the second quarter.

113
00:05:54,279 --> 00:05:57,120
Speaker 1: The global market sell off kept wealthy clients on the sidelines,

114
00:05:57,160 --> 00:05:59,920
Speaker 1: as the Swiss Bank saw outflows of twelve billion dollars.

115
00:06:00,200 --> 00:06:03,120
Speaker 1: Surging prices and slowing growth also hit the results. We

116
00:06:03,160 --> 00:06:06,799
Speaker 1: spoke with you Ubs CEO Ralph Hammers about his outlook

117
00:06:06,800 --> 00:06:10,520
Speaker 1: for inflation and how it's impacting businesses and some businesses

118
00:06:10,560 --> 00:06:13,120
Speaker 1: there are still quite some tension in the labor markets,

119
00:06:13,160 --> 00:06:15,720
Speaker 1: so that has not gone completely away yet. So it's

120
00:06:15,760 --> 00:06:19,720
Speaker 1: a mix of inflations and the labor market circumstances. If

121
00:06:19,800 --> 00:06:22,600
Speaker 1: inflation continues to be here, of course, it will be

122
00:06:22,640 --> 00:06:25,719
Speaker 1: reflected ultra in thing. Ubs CEO Ralph Hammers called the

123
00:06:25,720 --> 00:06:27,840
Speaker 1: second quarter one of the most challenging periods in the

124
00:06:27,920 --> 00:06:30,000
Speaker 1: last ten years. Shares of the bank are down more

125
00:06:30,040 --> 00:06:32,480
Speaker 1: than six percent. Well, Nathan, you to leave are also

126
00:06:32,520 --> 00:06:35,080
Speaker 1: out with earnings. Results are mostly in line with estimates.

127
00:06:35,120 --> 00:06:37,840
Speaker 1: The company is raising prices to battle inflation. That's helping

128
00:06:37,839 --> 00:06:40,800
Speaker 1: to offset certain costs, and shares her up two percent

129
00:06:40,920 --> 00:06:43,760
Speaker 1: in London. In Asia, overnight, Karen Stock's got a boost

130
00:06:43,800 --> 00:06:46,160
Speaker 1: from China's tech sector. The c s I three and

131
00:06:46,200 --> 00:06:48,720
Speaker 1: the Hang Sang climbed after reports that Ali Bomba will

132
00:06:48,720 --> 00:06:51,720
Speaker 1: seek a primary listing in Hong Kong. The move could

133
00:06:51,720 --> 00:06:54,760
Speaker 1: provide a template for Chinese companies to exit exchanges in

134
00:06:54,800 --> 00:06:58,559
Speaker 1: New York and cryptocurrencies are also under pressure this morning.

135
00:06:58,640 --> 00:07:01,559
Speaker 1: Nathan Nazas sources to ls coin based Global is facing

136
00:07:01,600 --> 00:07:04,839
Speaker 1: an investigation from the Securities and Exchange Commission. We're told

137
00:07:04,839 --> 00:07:07,520
Speaker 1: the SEC is probing weather coin base and properly led

138
00:07:07,520 --> 00:07:10,880
Speaker 1: Americans or let Americans trade digital assets that should have

139
00:07:10,920 --> 00:07:14,720
Speaker 1: been registered as securities. Again, futures are lower this morning.

140
00:07:14,720 --> 00:07:17,080
Speaker 1: Straight ahead of your latest local headlines plus the check

141
00:07:17,120 --> 00:07:23,840
Speaker 1: of sports and this is Bloomberg. Thanks Karen. Six oh

142
00:07:23,880 --> 00:07:26,760
Speaker 1: seven on Wall Street in Central Park, problems on the

143
00:07:26,760 --> 00:07:30,160
Speaker 1: east side, gotta crash southbound FDR Drive at seventy ninth Street.

144
00:07:30,440 --> 00:07:33,040
Speaker 1: More coming up in traffic. First, Michael Bars here with

145
00:07:33,080 --> 00:07:34,720
Speaker 1: more on what else is going on in New York

146
00:07:34,760 --> 00:07:37,280
Speaker 1: and around the world. Michael, thank you very much, Nathan.

147
00:07:37,320 --> 00:07:40,200
Speaker 1: More people are being infected by the monkey pox virus

148
00:07:40,200 --> 00:07:43,160
Speaker 1: in the US. So far, there are almost twenty nine

149
00:07:43,280 --> 00:07:47,080
Speaker 1: hundred known cases and no depths. During an event at

150
00:07:47,080 --> 00:07:50,520
Speaker 1: Harlem Hospital, New York City Mayor Eric Adams notes that

151
00:07:50,600 --> 00:07:53,680
Speaker 1: most of the state's current nine hundred cases come from

152
00:07:53,720 --> 00:07:56,960
Speaker 1: New York City and they need additional resources from the

153
00:07:56,960 --> 00:08:00,040
Speaker 1: federal government to help slow the spread. Almost nine he

154
00:08:00,120 --> 00:08:03,120
Speaker 1: presented the cases in the States in New York City,

155
00:08:03,480 --> 00:08:07,240
Speaker 1: and so this is once the game we would would again.

156
00:08:07,800 --> 00:08:10,480
Speaker 1: Last week, the w h O proclaimed the spread of

157
00:08:10,560 --> 00:08:14,520
Speaker 1: monkey pox a global emergency. Officials say New York's m

158
00:08:14,560 --> 00:08:18,800
Speaker 1: t A may not regain on of pre pandemic writership

159
00:08:19,200 --> 00:08:24,440
Speaker 1: until about twenty thirty five. Writership on New York City subways, buses,

160
00:08:24,480 --> 00:08:28,920
Speaker 1: and commuter rail lines is now projected to reach nineteen

161
00:08:28,960 --> 00:08:33,120
Speaker 1: doubles in late the back and forth on weather House

162
00:08:33,120 --> 00:08:36,600
Speaker 1: speaker Nancy Pelosi is going to visit Taiwan as China angry,

163
00:08:36,880 --> 00:08:40,800
Speaker 1: Bloomberg said. Backster reports Beijingia has issued his strongest statement

164
00:08:40,880 --> 00:08:43,679
Speaker 1: yet regarding the proposed visit, saying the U s should

165
00:08:43,720 --> 00:08:47,360
Speaker 1: be ready to face the consequences. So. Richard Hass of

166
00:08:47,440 --> 00:08:50,280
Speaker 1: the Council on Foreign Relations on Bloomberg says, it is

167
00:08:50,320 --> 00:08:53,440
Speaker 1: time for the globe to figure out plans and responses,

168
00:08:53,480 --> 00:08:58,120
Speaker 1: which means taking military preparations ourselves, strengthen in Taiwan, continuing

169
00:08:58,160 --> 00:09:02,000
Speaker 1: to work more closely with Japan, organizing Europe about what

170
00:09:02,080 --> 00:09:04,520
Speaker 1: sanctions would put you put in place of China ever

171
00:09:04,600 --> 00:09:07,760
Speaker 1: moved against Tailan process. At some point there will be

172
00:09:07,800 --> 00:09:11,760
Speaker 1: a confrontation between China and the US regarding Taiwan. In

173
00:09:11,840 --> 00:09:15,240
Speaker 1: San Francisco, I'm at Baxter Bloomberg Gabrie, New York Republican

174
00:09:15,280 --> 00:09:18,320
Speaker 1: Congressman Lee Zelden is reacting to a man who tried

175
00:09:18,320 --> 00:09:21,439
Speaker 1: to attack him last week. Forty three year old David

176
00:09:21,520 --> 00:09:25,800
Speaker 1: Jacobanus was re arrested and federally charged after he jumped

177
00:09:25,840 --> 00:09:29,280
Speaker 1: on stage during a political rally on Thursday. He tried

178
00:09:29,320 --> 00:09:32,320
Speaker 1: stamming Zelda was not hurt. Zelden is calling on the

179
00:09:32,320 --> 00:09:35,880
Speaker 1: New York State legislature to get rid of cash less bail.

180
00:09:36,320 --> 00:09:38,880
Speaker 1: The good news is the attacker as of Saturday, was

181
00:09:38,960 --> 00:09:41,680
Speaker 1: re arrested, and as far as anything else that the

182
00:09:41,679 --> 00:09:43,920
Speaker 1: federal government wants to charge him with, or anything else

183
00:09:43,960 --> 00:09:46,400
Speaker 1: that the District Attorney's office want to charge him with,

184
00:09:46,600 --> 00:09:49,200
Speaker 1: they have that opportunity working with each other to decide

185
00:09:49,320 --> 00:09:52,680
Speaker 1: what that is. If convicted, Jacobanus could spend up to

186
00:09:52,679 --> 00:09:55,280
Speaker 1: ten years in prison. Global News twenty four hours a

187
00:09:55,400 --> 00:09:57,800
Speaker 1: day on air and on Bloomberg Quick Take Power by

188
00:09:57,800 --> 00:10:00,480
Speaker 1: more than seven hundred journalists and analyst in a hundred

189
00:10:00,480 --> 00:10:03,880
Speaker 1: twenty countries. Michael Barr and this is Bloomberg, Nathan, Michael,

190
00:10:03,920 --> 00:10:10,160
Speaker 1: thank you kind. Up to six ten on Wall Street.

191
00:10:10,200 --> 00:10:12,920
Speaker 1: John Stashower has a Bloombridge Sports update thanks to Nathan.

192
00:10:13,000 --> 00:10:15,760
Speaker 1: The Subway series always about bragging rights, but the one

193
00:10:15,800 --> 00:10:19,000
Speaker 1: that starts tonight at City Field as another billing possible

194
00:10:19,120 --> 00:10:21,880
Speaker 1: World Series preview. Both teams have been in first place

195
00:10:22,160 --> 00:10:24,880
Speaker 1: basically all season. All of the Mets lead once ten

196
00:10:24,920 --> 00:10:27,000
Speaker 1: and a half games is down to two. The Mets

197
00:10:27,000 --> 00:10:29,840
Speaker 1: did get some help last night from the Phillies. Bryson

198
00:10:30,040 --> 00:10:33,040
Speaker 1: stopped in particular, three run homer eighth inning gave the

199
00:10:33,080 --> 00:10:35,480
Speaker 1: Fields a six four win over Atlanta. Yankees lee the

200
00:10:35,480 --> 00:10:38,000
Speaker 1: Al East by twelve and a half games. They're concerned

201
00:10:38,440 --> 00:10:41,400
Speaker 1: is finishing ahead of Euston for best overall record the Astros,

202
00:10:41,440 --> 00:10:43,240
Speaker 1: so their five game win Street come to an end

203
00:10:43,320 --> 00:10:46,440
Speaker 1: in Oakland, so the Yanks two games ahead. Starting pitchers

204
00:10:46,480 --> 00:10:49,480
Speaker 1: tonight Jordan Montgomery for the Yanks, Taiwan Walker for the Mats,

205
00:10:49,480 --> 00:10:54,200
Speaker 1: and Aaron Judge is excited. The fans getting into it.

206
00:10:54,200 --> 00:10:58,600
Speaker 1: It's always the packs playoff atmosphere um always back and forth.

207
00:10:58,679 --> 00:11:01,640
Speaker 1: You never know what's gonna happen. Um, and that's a

208
00:11:01,679 --> 00:11:03,839
Speaker 1: competition here. They got a great pitching, seve, great offense

209
00:11:03,920 --> 00:11:07,440
Speaker 1: over there. You know, we so looking forward to let's

210
00:11:07,520 --> 00:11:10,600
Speaker 1: see what happens. Just thirty seven home runs, seven more

211
00:11:10,640 --> 00:11:12,719
Speaker 1: than anyone in baseball. He has eighty one r V

212
00:11:12,880 --> 00:11:15,480
Speaker 1: I is the only player with more Pete Alonso, he

213
00:11:15,559 --> 00:11:19,000
Speaker 1: has eighty two. Details emerging about trade talks between the

214
00:11:19,080 --> 00:11:22,800
Speaker 1: Nets and Celtics involving Kevin Durant. Reportedly, the Celts offered

215
00:11:22,800 --> 00:11:25,480
Speaker 1: to Brooklyn, Jalen Brown Derek White in the first round

216
00:11:25,480 --> 00:11:28,240
Speaker 1: pick and the Nets wanted Brown and Marcus Smart and

217
00:11:28,360 --> 00:11:31,320
Speaker 1: multiple picks, and the Celtics said no, no secret. Nick's

218
00:11:31,320 --> 00:11:33,760
Speaker 1: trying to acquire Donovan Mitchell from Utah. Now there's where

219
00:11:33,760 --> 00:11:36,959
Speaker 1: they're Washington's, Charlotte and Sacramento are all talking to the

220
00:11:37,000 --> 00:11:39,280
Speaker 1: Jazz as well. Nix also said to be one of

221
00:11:39,280 --> 00:11:41,360
Speaker 1: a few teams that I've spoken with the Lakers about

222
00:11:41,360 --> 00:11:45,960
Speaker 1: acquiring Russell Westbrook. John stash Award, Bloombrook Sports Nathan, thank you, Johns.

223
00:11:45,960 --> 00:11:48,400
Speaker 1: Some red headlines across the Bloomberg terminal ups out with

224
00:11:48,480 --> 00:11:52,240
Speaker 1: second quarter earnings a beat analyst estimates. GM's results missed,

225
00:11:52,320 --> 00:11:55,040
Speaker 1: the carmaker reaffirmed its view for the year, and European

226
00:11:55,160 --> 00:11:58,320
Speaker 1: Union countries reach a deal to cut gas use for

227
00:11:58,440 --> 00:12:02,200
Speaker 1: next winter. A few chers moving lower this morning. This

228
00:12:03,400 --> 00:12:09,640
Speaker 1: is Bloomberg Bloomberg eleven three. Weather partly sunny, less humid today,

229
00:12:09,640 --> 00:12:11,920
Speaker 1: mid eighties for highs. We'll bring back chances crafting in

230
00:12:11,960 --> 00:12:15,840
Speaker 1: showers and thunderstorms tomorrow and Thursday, both days near ninety

231
00:12:16,040 --> 00:12:23,800
Speaker 1: degrees right now in Central Park Markets. Headlines and breaking

232
00:12:23,840 --> 00:12:26,720
Speaker 1: news twenty four hours a day at Bloomberg dot Com,

233
00:12:26,840 --> 00:12:30,360
Speaker 1: the Bloomberg Business At and at Bloomberg Quicktap. This is

234
00:12:30,400 --> 00:12:39,439
Speaker 1: a Bloomberg Business Flash, and I'm Karen Moscow, and we've

235
00:12:39,480 --> 00:12:42,280
Speaker 1: been watching earnings cross the Bloomberg this morning, with the

236
00:12:42,400 --> 00:12:46,400
Speaker 1: UPS reporting second quarter profit at beat analysts estimates and

237
00:12:46,440 --> 00:12:49,480
Speaker 1: no share higher in early trading, up one point nine percent.

238
00:12:49,920 --> 00:12:53,960
Speaker 1: GM second quarter profit missed analysts estimates, and shares her

239
00:12:53,960 --> 00:12:56,760
Speaker 1: down about a third of percent this morning. Futures are

240
00:12:56,800 --> 00:12:59,600
Speaker 1: also lower. S and P futures down thirteen points down,

241
00:12:59,600 --> 00:13:02,040
Speaker 1: futures in A hundred fifty two and NASTAG futures down

242
00:13:02,080 --> 00:13:05,120
Speaker 1: forty three. The decks in Germany is down half per cent.

243
00:13:05,160 --> 00:13:07,520
Speaker 1: The ten year treasury of eleven thirty seconds yield two

244
00:13:07,520 --> 00:13:10,960
Speaker 1: point seven five percent, yield on the two year three

245
00:13:11,240 --> 00:13:14,240
Speaker 1: point zero zero two percent. No make screwed oil is

246
00:13:14,280 --> 00:13:16,240
Speaker 1: at one point seven percent of a dollar sixty and

247
00:13:16,320 --> 00:13:18,600
Speaker 1: ninety eight dollars twenty seven cents a barrel. Co make

248
00:13:18,640 --> 00:13:21,080
Speaker 1: school at a quarter percent or four dollars at seventeen

249
00:13:21,120 --> 00:13:24,040
Speaker 1: thirty three ten announced the euro one point one four

250
00:13:24,160 --> 00:13:27,000
Speaker 1: two against the dollar, British found one point one eight

251
00:13:27,280 --> 00:13:29,440
Speaker 1: and the En one thirties six point eight zero and

252
00:13:29,480 --> 00:13:32,200
Speaker 1: bitcoin this morning down four point nine percent at twenty

253
00:13:32,280 --> 00:13:35,400
Speaker 1: one thousand, ninety dollars. Sets up a Lottomberg business flash.

254
00:13:35,400 --> 00:13:37,760
Speaker 1: Now here's Michael Barr with more on what's going on

255
00:13:37,800 --> 00:13:40,679
Speaker 1: around the world. Michael Karen, thank you very much. Former

256
00:13:40,720 --> 00:13:43,680
Speaker 1: President Donald Trump will return to Washington today for the

257
00:13:43,679 --> 00:13:47,760
Speaker 1: first time since leaving office. Trump will address the America

258
00:13:47,840 --> 00:13:51,760
Speaker 1: First Policy Institutes Today summit. Sometime in the future, Trump

259
00:13:51,800 --> 00:13:56,080
Speaker 1: could announce it two White House campaign. How Speaker Nancy Pelosi,

260
00:13:56,200 --> 00:13:59,679
Speaker 1: staff and security officials aren't ruling out plans for her

261
00:13:59,720 --> 00:14:02,679
Speaker 1: to to time on in early August. The possible trip

262
00:14:02,679 --> 00:14:06,200
Speaker 1: has already stoked more US China tensions. In baseball, the

263
00:14:06,200 --> 00:14:09,640
Speaker 1: Red Sox beat the Guardians three one, the Orioles down

264
00:14:09,679 --> 00:14:13,320
Speaker 1: the Raise five one, The Nationals beat the Dodgers for one,

265
00:14:13,679 --> 00:14:17,520
Speaker 1: the A's beat the Astros seven five, and the Diamondbacks

266
00:14:17,679 --> 00:14:21,280
Speaker 1: blank the Giants seven zip. Global News twenty four hours

267
00:14:21,280 --> 00:14:24,480
Speaker 1: a day on air and on Bloomberg Quicktech, powered by

268
00:14:24,520 --> 00:14:27,160
Speaker 1: more than twenty seven hundred journalists and analysts more than

269
00:14:27,200 --> 00:14:32,120
Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan, Okay, Michael,

270
00:14:32,160 --> 00:14:34,400
Speaker 1: thank you. It is six nineteen on Wall Street Live

271
00:14:34,480 --> 00:14:38,120
Speaker 1: from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak.

272
00:14:38,200 --> 00:14:40,760
Speaker 1: And Pria Misras with us now global head of rate

273
00:14:40,840 --> 00:14:44,080
Speaker 1: Strategy at t D Securities, as the Federal Reserve and

274
00:14:44,640 --> 00:14:46,760
Speaker 1: really all the rest of us get ready for the

275
00:14:46,800 --> 00:14:50,280
Speaker 1: two day July policy meeting in that hotly anticipated decision

276
00:14:50,360 --> 00:14:52,640
Speaker 1: coming up tomorrow. Priya, it's great to speak with you

277
00:14:52,720 --> 00:14:56,200
Speaker 1: this morning. The markets have pretty much priced in seventy

278
00:14:56,200 --> 00:14:59,560
Speaker 1: five basis points. What are the chances we get something else?

279
00:14:59,600 --> 00:15:04,160
Speaker 1: Maybe an upside surprise from the Fed tomorrow? Moring uh

280
00:15:04,360 --> 00:15:06,320
Speaker 1: and thanks for having me, Um, you know, I think

281
00:15:06,360 --> 00:15:08,760
Speaker 1: the market was pricing in a decent chance of a

282
00:15:08,800 --> 00:15:13,360
Speaker 1: hundred basis points after the very high CPR report. But

283
00:15:13,400 --> 00:15:15,920
Speaker 1: then since then, you know, I think growth is slowing.

284
00:15:16,080 --> 00:15:18,720
Speaker 1: The Fed may want to start to slow down. That

285
00:15:18,720 --> 00:15:21,480
Speaker 1: that base of rate hikes we heard from a bunch

286
00:15:21,520 --> 00:15:24,480
Speaker 1: of Fed officials talking about seventy five is still very large.

287
00:15:24,880 --> 00:15:27,240
Speaker 1: So you know, our view is that they go seventy five.

288
00:15:27,280 --> 00:15:31,000
Speaker 1: I would say the chance of a higher amount is

289
00:15:31,000 --> 00:15:33,640
Speaker 1: is low. I mean the markets pricing in ten percent chance,

290
00:15:34,000 --> 00:15:36,400
Speaker 1: I would say that's fair. I think the big question

291
00:15:36,560 --> 00:15:39,360
Speaker 1: is what is the downship? Does chep? I'll commit to

292
00:15:39,400 --> 00:15:43,960
Speaker 1: that downship going forward. It's all about that that terminal rate,

293
00:15:44,000 --> 00:15:46,720
Speaker 1: which has actually gone down significantly. I think the market

294
00:15:46,800 --> 00:15:49,320
Speaker 1: is a little bit too pessimistic on growth here and

295
00:15:49,600 --> 00:15:52,560
Speaker 1: optimistic on inflation because the market has taken the end

296
00:15:52,560 --> 00:15:55,560
Speaker 1: point of the hiking cycle from four percent two now

297
00:15:55,640 --> 00:15:58,120
Speaker 1: as low as three point three. I think the Fed

298
00:15:58,240 --> 00:16:01,000
Speaker 1: may be forced to keep going here. His inflation is

299
00:16:01,040 --> 00:16:03,720
Speaker 1: still very high and the unemployment rate is still low.

300
00:16:03,800 --> 00:16:06,400
Speaker 1: So I don't think they're going to signal that they're

301
00:16:06,480 --> 00:16:08,800
Speaker 1: very close to being done with the hiking cycle. I

302
00:16:08,880 --> 00:16:12,840
Speaker 1: think that's the that's it's really the forward guidance or

303
00:16:12,880 --> 00:16:16,200
Speaker 1: the messaging about future hikes that will be focused on.

304
00:16:16,320 --> 00:16:20,280
Speaker 1: I think this seventy, as you said, is essentially all priceton. Well,

305
00:16:20,280 --> 00:16:22,920
Speaker 1: where do you see the terminal rate going? And how

306
00:16:22,920 --> 00:16:27,440
Speaker 1: do you see the FED potentially moving into this hiking cycle? Here?

307
00:16:27,440 --> 00:16:30,000
Speaker 1: Are are Are you forecasting a slow down from the Fed?

308
00:16:31,440 --> 00:16:33,640
Speaker 1: We are so, you know, our view is that they

309
00:16:33,760 --> 00:16:36,040
Speaker 1: really wanted to front load to get to neutral with

310
00:16:36,160 --> 00:16:38,680
Speaker 1: this one seventy five basis points. They'll get to neutral

311
00:16:39,120 --> 00:16:42,120
Speaker 1: at this point. They can then start to go a

312
00:16:42,160 --> 00:16:45,080
Speaker 1: little bit slower, you know, but it's still fifty basis points.

313
00:16:45,080 --> 00:16:49,320
Speaker 1: So we've got fifty basis point hikes really September, November, December,

314
00:16:49,560 --> 00:16:52,000
Speaker 1: and that's when the hiking cycle ends. You know. I

315
00:16:52,040 --> 00:16:55,120
Speaker 1: think they have to go into restrictive territory. They really

316
00:16:55,120 --> 00:16:58,240
Speaker 1: have to control the inflation narrative and and and inflation

317
00:16:58,320 --> 00:17:01,360
Speaker 1: expectations and so, you know, I don't think they can

318
00:17:01,520 --> 00:17:04,600
Speaker 1: sound too concerned about growth. The problem is growth is

319
00:17:04,640 --> 00:17:07,080
Speaker 1: also slowing, So we think, you know, when you get

320
00:17:07,080 --> 00:17:09,800
Speaker 1: close to that three seventy So our view and terminalists

321
00:17:09,840 --> 00:17:13,080
Speaker 1: three seventy five maybe as high as four if inflation

322
00:17:13,119 --> 00:17:16,000
Speaker 1: doesn't really slow down core inflation. I think headline is

323
00:17:16,040 --> 00:17:18,280
Speaker 1: likely to slow down, but they're going to also look

324
00:17:18,280 --> 00:17:21,439
Speaker 1: at core. That shelter number is very high, and that

325
00:17:21,520 --> 00:17:24,560
Speaker 1: tends to be very trending. So if that doesn't slow down,

326
00:17:24,600 --> 00:17:26,320
Speaker 1: I think they can go as high as four percent

327
00:17:26,920 --> 00:17:29,480
Speaker 1: and then slow down. And I think what I struggled

328
00:17:29,520 --> 00:17:32,440
Speaker 1: with is the markets pricing and cuts right away, and

329
00:17:32,680 --> 00:17:34,879
Speaker 1: you know, I really I think there's a different threshold

330
00:17:34,960 --> 00:17:37,639
Speaker 1: for the FED to stop hiking. I think slowing in inflation,

331
00:17:38,040 --> 00:17:40,840
Speaker 1: slowing in growth. Once they get to three seventy five

332
00:17:40,920 --> 00:17:43,840
Speaker 1: or four, they stop the market saying, oh, next meeting,

333
00:17:43,880 --> 00:17:46,480
Speaker 1: they start to cut, and I think that's where we're

334
00:17:46,480 --> 00:17:49,040
Speaker 1: going to struggle. I think we'll all look at slowing

335
00:17:49,080 --> 00:17:52,520
Speaker 1: growth and wait for the FED to to start to ease.

336
00:17:52,920 --> 00:17:55,040
Speaker 1: I don't think they'll be able to ease with inflation,

337
00:17:55,600 --> 00:17:58,320
Speaker 1: you know, at five percent or six percent early next year.

338
00:17:58,480 --> 00:18:01,480
Speaker 1: I think that's the surprise of negative surprise for for

339
00:18:01,600 --> 00:18:03,919
Speaker 1: risk assets that could be ahead. Do you think this

340
00:18:03,960 --> 00:18:06,240
Speaker 1: economy is slowing into a recession. We've heard from the

341
00:18:06,280 --> 00:18:09,600
Speaker 1: White House saying that the technical recession too straight quarters

342
00:18:09,640 --> 00:18:12,840
Speaker 1: of negative growth isn't necessarily a broad based recession. What's

343
00:18:12,840 --> 00:18:16,440
Speaker 1: your view on that? Sure, So, I think what we've

344
00:18:16,480 --> 00:18:18,639
Speaker 1: seen in the first quarter in the second quarter is

345
00:18:18,680 --> 00:18:22,639
Speaker 1: sort of negative for you know, technical reasons, meaning that

346
00:18:23,119 --> 00:18:25,320
Speaker 1: it's not a broad based slowdown. I would agree with

347
00:18:25,359 --> 00:18:28,240
Speaker 1: the White House there. NBR is the one that actually

348
00:18:28,280 --> 00:18:30,760
Speaker 1: announces whether we're in a recession. I don't think we're

349
00:18:30,760 --> 00:18:33,480
Speaker 1: in a recession right now, despite the negative GDP. It

350
00:18:33,600 --> 00:18:36,720
Speaker 1: was net expots related and and and it's an inventory

351
00:18:36,800 --> 00:18:39,960
Speaker 1: drag in the second quarter. But we do think we're slowing.

352
00:18:40,359 --> 00:18:44,120
Speaker 1: We're slowing from very strong levels. The labor market's very hot.

353
00:18:44,160 --> 00:18:47,680
Speaker 1: I mean we're well through what the fact believes the

354
00:18:47,760 --> 00:18:50,800
Speaker 1: natural rate of unemployment is. So I think the unemployment

355
00:18:50,880 --> 00:18:52,840
Speaker 1: rate is going to go up. The economy is going

356
00:18:52,920 --> 00:18:55,399
Speaker 1: to slow. It is odd that the FED is hiking

357
00:18:55,440 --> 00:18:57,399
Speaker 1: into a slow down, but I think we've got an

358
00:18:57,440 --> 00:19:00,760
Speaker 1: inflation problem. Um. So you know where I'm more concerned

359
00:19:00,760 --> 00:19:04,200
Speaker 1: about a recession. I delete this year, fourth quarter, early

360
00:19:04,320 --> 00:19:06,760
Speaker 1: next year. That's where I think there is so much

361
00:19:06,800 --> 00:19:09,720
Speaker 1: child that would be a more broad based slowdown because

362
00:19:09,720 --> 00:19:12,359
Speaker 1: the labor market by that point starts to you know,

363
00:19:12,400 --> 00:19:15,720
Speaker 1: the unemployment rate starts to rise, and then it's hard

364
00:19:15,760 --> 00:19:18,280
Speaker 1: to see how the ft can finesse it perfectly. Where

365
00:19:18,520 --> 00:19:21,879
Speaker 1: the unemployment rate only increases by a couple of you know,

366
00:19:21,880 --> 00:19:24,640
Speaker 1: a couple of tenths of a percentage point, that's where

367
00:19:24,640 --> 00:19:26,600
Speaker 1: I think there is a higher But I think right

368
00:19:26,640 --> 00:19:30,040
Speaker 1: now we're slowing from strong levels, so I don't think

369
00:19:30,040 --> 00:19:32,399
Speaker 1: we're in a recession right now. Great to have you

370
00:19:32,400 --> 00:19:34,680
Speaker 1: on with us. Thanks for these insights this morning, Prea

371
00:19:34,760 --> 00:19:37,760
Speaker 1: really appreciate it. Prea Misra, Global head of Rates Strategy

372
00:19:38,200 --> 00:19:41,680
Speaker 1: at t D Securities with us this morning. Getting more

373
00:19:41,720 --> 00:19:45,240
Speaker 1: earnings crossing the Bloomberg terminal this morning, ge with a

374
00:19:45,280 --> 00:19:49,919
Speaker 1: big earning speed seventy eight cents adjusted EPs. The estimate

375
00:19:50,000 --> 00:19:53,760
Speaker 1: was thirty seven cents, so earnings coming in more than

376
00:19:53,840 --> 00:19:58,120
Speaker 1: double analyst estimates. Right now. SMP futures down seventeen points down,

377
00:19:58,200 --> 00:20:02,119
Speaker 1: Futures down A five, NaSTA features down sixty. You're listening

378
00:20:02,119 --> 00:20:09,159
Speaker 1: to Bloomberg Daybreak, Bloomberg eleven three oh weather partly sunny,

379
00:20:09,200 --> 00:20:11,800
Speaker 1: less humid today, mid eighties for highs. We'll bring back

380
00:20:11,840 --> 00:20:14,520
Speaker 1: the humidity tomorrow and Thursday, both days with that afternoon

381
00:20:14,680 --> 00:20:17,080
Speaker 1: chance for it showers and thunderstorms on a high near

382
00:20:17,160 --> 00:20:22,879
Speaker 1: ninety degrees right now seventy one in Central Park, broadcasting

383
00:20:22,960 --> 00:20:26,680
Speaker 1: live from the Bloomberg Interactive Broker Studio in New York.

384
00:20:26,760 --> 00:20:30,240
Speaker 1: Bloomberg E Living free to Washington, d C, Bloomberg ninety

385
00:20:30,320 --> 00:20:33,240
Speaker 1: nine one to Boston, Bloomberg one O six one to

386
00:20:33,320 --> 00:20:37,080
Speaker 1: San Francisco, Bloomberg nine sixty to the country, Sirius XM

387
00:20:37,119 --> 00:20:39,320
Speaker 1: to the one nine team, and around the globe the

388
00:20:39,400 --> 00:20:43,320
Speaker 1: Bloomberg Business at and Bloomberg Radio dot com. This is

389
00:20:43,320 --> 00:20:51,439
Speaker 1: Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm

390
00:20:51,520 --> 00:20:54,320
Speaker 1: Nathan Hagar and I'm Karen Moscow. We are just about

391
00:20:54,320 --> 00:20:56,920
Speaker 1: three hours away from the open of US trading. Time

392
00:20:56,920 --> 00:20:58,320
Speaker 1: for the five Things that you need to know to

393
00:20:58,359 --> 00:21:02,120
Speaker 1: start your day. Brought to you by Interactive Brokers Global Analysts.

394
00:21:02,160 --> 00:21:05,080
Speaker 1: It helps you find new global investment opportunities to diversify

395
00:21:05,119 --> 00:21:08,879
Speaker 1: your portfolio and discover undervalued companies that may have greater

396
00:21:08,920 --> 00:21:11,800
Speaker 1: growth potential. Try i v k R Global Lenos today

397
00:21:11,880 --> 00:21:15,480
Speaker 1: at IBKR dot com. Slash G A first to begin

398
00:21:15,560 --> 00:21:18,399
Speaker 1: of the nation's capital. Former President Donald Trump is returning

399
00:21:18,440 --> 00:21:20,560
Speaker 1: to d C for the first time since leaving office,

400
00:21:20,600 --> 00:21:23,080
Speaker 1: and the Federal Reserves two day meeting cakes off today

401
00:21:23,080 --> 00:21:25,720
Speaker 1: in Washington. The Central Bank is set to raise rates

402
00:21:25,760 --> 00:21:28,280
Speaker 1: as it looks to tamp down inflation, and futures are

403
00:21:28,320 --> 00:21:30,960
Speaker 1: lower as markets get ready for that next move. Karen

404
00:21:31,040 --> 00:21:34,560
Speaker 1: Lisa Ericson, senior vice president at US Bank, is preaching

405
00:21:34,600 --> 00:21:38,320
Speaker 1: caution on stocks. We are more defensive right now again,

406
00:21:38,400 --> 00:21:40,440
Speaker 1: while in the near term we see some of that

407
00:21:40,680 --> 00:21:44,360
Speaker 1: underlying fundamental strength that we came into the year as

408
00:21:44,400 --> 00:21:48,240
Speaker 1: preventing the worst case scenarios. Lisa Ericson with US Bank

409
00:21:48,280 --> 00:21:51,320
Speaker 1: also thinks the US will narrowly avoid a recession. Nathan

410
00:21:51,359 --> 00:21:54,560
Speaker 1: Corporate Earnings in focus today shares of Walmart down more

411
00:21:54,600 --> 00:21:57,960
Speaker 1: than nine percent of the company lowered a second quarter forecast.

412
00:21:58,119 --> 00:22:00,919
Speaker 1: Bloombergs Jurneda Young joins us live the details or need

413
00:22:00,960 --> 00:22:03,639
Speaker 1: a good morning Good Morning Care and analysts say Walmart's

414
00:22:03,640 --> 00:22:06,280
Speaker 1: warning gives more insight into the health of the U.

415
00:22:06,359 --> 00:22:09,600
Speaker 1: S consumer. That's likely to signal more pain ahead for

416
00:22:09,640 --> 00:22:12,879
Speaker 1: retail stocks as they take on food and gas inflation.

417
00:22:13,240 --> 00:22:16,160
Speaker 1: Morgan Stanley cut its price target for Walmart and says

418
00:22:16,200 --> 00:22:19,160
Speaker 1: it challenges the broker's view of the retail giant as

419
00:22:19,160 --> 00:22:23,000
Speaker 1: a safe haven play. City analysts didn't think Walmart would

420
00:22:23,000 --> 00:22:25,240
Speaker 1: be hit as much as others, and say the news

421
00:22:25,280 --> 00:22:28,959
Speaker 1: is a sign that marginally higher income consumers are feeling

422
00:22:29,000 --> 00:22:32,560
Speaker 1: the inflation pinch. But Piper Sandler says it's too early

423
00:22:32,640 --> 00:22:35,960
Speaker 1: to take a more constructive view on Walmart, so analysts

424
00:22:35,960 --> 00:22:39,639
Speaker 1: there are waiting on a more broad earnings reset industry wide.

425
00:22:40,080 --> 00:22:42,679
Speaker 1: Live in New York, I'm gonna need a young Bloomberg Daybreak,

426
00:22:42,720 --> 00:22:44,280
Speaker 1: all right, we need to thank you over and you're ap.

427
00:22:44,400 --> 00:22:47,359
Speaker 1: Ubs reported weaker than expected second quarter profit and the

428
00:22:47,359 --> 00:22:50,359
Speaker 1: Swiss banks shares are now down nearly seven percent. And

429
00:22:50,400 --> 00:22:52,280
Speaker 1: in the US, Nathan, it's a big week for Big

430
00:22:52,320 --> 00:22:55,440
Speaker 1: Check Bloomberg. Jeff Bellinger reports on Microsoft earnings to do

431
00:22:55,480 --> 00:23:00,000
Speaker 1: out today. Bloomberg Intelligence notes that half of Microsoft's totals

432
00:23:00,000 --> 00:23:03,680
Speaker 1: sales come from outside the US. That makes the software

433
00:23:03,720 --> 00:23:07,240
Speaker 1: giant more susceptible to foreign exchange movements, and the stronger

434
00:23:07,320 --> 00:23:10,240
Speaker 1: dollar may have weighed on the company's bottom line. Sales

435
00:23:10,280 --> 00:23:13,920
Speaker 1: of consumer PCs may have slowed, but b I expects

436
00:23:13,920 --> 00:23:18,040
Speaker 1: to hear that overall sales increased fourteen percent. Jeff Bullinger,

437
00:23:18,160 --> 00:23:20,560
Speaker 1: Bloomberg day Break, all right, Jeff, thank you. That's the

438
00:23:20,560 --> 00:23:22,440
Speaker 1: five things that you need to notice start your day.

439
00:23:22,480 --> 00:23:26,000
Speaker 1: Brought to you by Interactive Brokers and Futures this morning

440
00:23:26,040 --> 00:23:30,000
Speaker 1: are moving lower. Straight ahead, we have your latest local headlines,

441
00:23:30,359 --> 00:23:38,520
Speaker 1: plus the check of sports, and this is Bloomberg. Thank you.

442
00:23:38,640 --> 00:23:41,080
Speaker 1: Karen six thirty three on Wall Street, seventy two degrees

443
00:23:41,160 --> 00:23:43,919
Speaker 1: in Central Park got an accident in Queen's northbound Cross

444
00:23:43,960 --> 00:23:46,440
Speaker 1: Island Parkway at Belle Boulevard. We'll get to the details

445
00:23:46,440 --> 00:23:48,600
Speaker 1: in traffic first. Michael Bars here with what else is

446
00:23:48,640 --> 00:23:51,119
Speaker 1: going on in New York and around the world. Good morning, Mike, Call,

447
00:23:51,240 --> 00:23:55,080
Speaker 1: Good morning Nathan. Monkeypox cases in the US continue to grow.

448
00:23:55,720 --> 00:23:59,399
Speaker 1: There are almost twenty cases so far. Close to eight

449
00:23:59,640 --> 00:24:02,720
Speaker 1: d party cases are identified in New York City alone.

450
00:24:03,119 --> 00:24:06,119
Speaker 1: Mayor Eric Adams. They always come up with new ways

451
00:24:06,160 --> 00:24:10,000
Speaker 1: of solving the problems that we face, and monkey pox

452
00:24:10,480 --> 00:24:14,199
Speaker 1: is a problem. The disease spreads primarily through skin to

453
00:24:14,240 --> 00:24:17,800
Speaker 1: skin contact or direct contact with the virus. Officials say.

454
00:24:17,840 --> 00:24:20,720
Speaker 1: High risk people are those who have been in contact

455
00:24:20,760 --> 00:24:23,679
Speaker 1: with a known monkey pox patient, which right now mostly

456
00:24:23,720 --> 00:24:27,680
Speaker 1: includes men who have sex with men who have multiple partners.

457
00:24:27,920 --> 00:24:31,960
Speaker 1: White House coronavirus Response Coordinator Dr ishi'sh John, it's really

458
00:24:32,000 --> 00:24:35,399
Speaker 1: important that we do not use this moment to propagate

459
00:24:35,560 --> 00:24:39,440
Speaker 1: homophobic or transphobic messaging, and and I think it's really

460
00:24:39,440 --> 00:24:41,760
Speaker 1: important that we stick to the science, stick to the evidence,

461
00:24:41,920 --> 00:24:43,800
Speaker 1: and do in a way that's respectable of people. The

462
00:24:43,840 --> 00:24:47,280
Speaker 1: World Health Organization declared the ongoing monkey pox I'll break

463
00:24:47,320 --> 00:24:51,000
Speaker 1: to be a global public health emergency. A senior MTA

464
00:24:51,080 --> 00:24:54,880
Speaker 1: officials says New York may not regain on of pre

465
00:24:55,000 --> 00:24:59,640
Speaker 1: pandemic writership until about twenty thirty five. Writership on New

466
00:24:59,720 --> 00:25:02,960
Speaker 1: York's city subways, buses, and commuter rail lines is now

467
00:25:03,080 --> 00:25:09,640
Speaker 1: projected to reach nineteen levels. In late President Biden made

468
00:25:09,760 --> 00:25:12,840
Speaker 1: rare comments about his White House predecessor and his lack

469
00:25:12,880 --> 00:25:17,359
Speaker 1: of action on the January sixth riot. The President remotely

470
00:25:17,600 --> 00:25:22,040
Speaker 1: addressed black police officials about President Trump for three hours.

471
00:25:22,760 --> 00:25:26,040
Speaker 1: The defeated former president of United States wat's it all

472
00:25:26,119 --> 00:25:28,919
Speaker 1: happen as he sat in the comfort of the private

473
00:25:28,960 --> 00:25:32,119
Speaker 1: dining room next to the Oval office. While he was

474
00:25:32,160 --> 00:25:35,920
Speaker 1: doing that, brave law enforcement officer subject to the medieval hell.

475
00:25:36,680 --> 00:25:40,240
Speaker 1: President Biden telling the nation that Americans can't be pro

476
00:25:40,320 --> 00:25:44,480
Speaker 1: insurrection and pro cop or pro democracy. There is more

477
00:25:44,520 --> 00:25:47,320
Speaker 1: fall out from out speaker Nancy Pelosi's possible visit to

478
00:25:47,359 --> 00:25:50,720
Speaker 1: Taiwan next month. China has moren that any visit to

479
00:25:50,800 --> 00:25:53,560
Speaker 1: the island nation that it considers part of China will

480
00:25:53,600 --> 00:25:57,840
Speaker 1: be met with serious consequences. State Department spokesman Dead Price

481
00:25:58,040 --> 00:26:01,719
Speaker 1: were committed to maintaining Cross Street peace and stability UH

482
00:26:01,880 --> 00:26:05,399
Speaker 1: and our One China policy. There has been no official

483
00:26:05,400 --> 00:26:09,399
Speaker 1: announcement from spokesman net Price or any senior officials about

484
00:26:09,400 --> 00:26:12,400
Speaker 1: a Pelosi trip. Global News twenty four hours a day

485
00:26:12,400 --> 00:26:14,840
Speaker 1: on air and on Bloomberg Quick Take Power by more

486
00:26:15,119 --> 00:26:18,399
Speaker 1: than hundred journalists and anatolists more than a twenty countries.

487
00:26:18,560 --> 00:26:26,399
Speaker 1: Michael Barr and this is Bloomberg. Nathan, Thanks Michael. Almost

488
00:26:26,400 --> 00:26:28,639
Speaker 1: six thirty six on Wall Street, John stash Ower has

489
00:26:28,680 --> 00:26:31,520
Speaker 1: the Bloomberg Sports Update. All right, Nathan. First Subway Series

490
00:26:31,560 --> 00:26:33,960
Speaker 1: game of the season, usually not this late, and normally

491
00:26:34,000 --> 00:26:36,200
Speaker 1: not with both teams in first place. The Mets and

492
00:26:36,280 --> 00:26:38,720
Speaker 1: Yankees plate tonight in tomorrow at City Field, then twice

493
00:26:38,800 --> 00:26:41,800
Speaker 1: next month in the Bronx. Tonight it's Jordan Montgomery against

494
00:26:41,800 --> 00:26:44,520
Speaker 1: Taiwan Walker. Last night, the Phillies down three nothing came

495
00:26:44,560 --> 00:26:47,919
Speaker 1: back beat Atlanta six to four. Bryson stopped game winning

496
00:26:47,920 --> 00:26:50,160
Speaker 1: through on homer and the eighth inning. That helps the Mets.

497
00:26:50,160 --> 00:26:52,320
Speaker 1: They leave the Braves now by two. The Yankees lead

498
00:26:52,320 --> 00:26:54,640
Speaker 1: the Astros by two in the race for best overall

499
00:26:54,720 --> 00:26:57,560
Speaker 1: record used and lost last night in Oakland much they

500
00:26:57,600 --> 00:26:59,360
Speaker 1: didn't win. For the Red Sox. They had lost five

501
00:26:59,400 --> 00:27:01,560
Speaker 1: in a row. They had a out sixty seven runs

502
00:27:01,920 --> 00:27:04,280
Speaker 1: in those five. They beat Cleveland at Fenway three to one.

503
00:27:04,520 --> 00:27:07,200
Speaker 1: Baseball trade deadline in one week. Both the Mets and

504
00:27:07,280 --> 00:27:10,120
Speaker 1: Yankees believed to be in talks with Washington about acquiring

505
00:27:10,200 --> 00:27:13,760
Speaker 1: Juan Sot that would certainly be a blockbuster. Yankees GM

506
00:27:13,760 --> 00:27:16,439
Speaker 1: Brian Cashman told the y S Network He's always looking

507
00:27:16,480 --> 00:27:20,520
Speaker 1: to make any move necessary. Every chess piece, every decision,

508
00:27:20,760 --> 00:27:25,720
Speaker 1: every promotion or in court, it's all designed to to

509
00:27:25,760 --> 00:27:29,600
Speaker 1: improve your shot and your team's stabilities and your managers

510
00:27:30,560 --> 00:27:34,280
Speaker 1: UH maneuver ability UH and choices that he has to

511
00:27:34,359 --> 00:27:36,399
Speaker 1: play with. The Yanks also said to be interested in

512
00:27:36,480 --> 00:27:40,640
Speaker 1: Cincinnati petrol Luis Castillo and Kansas City outfielder Andrew Benintenni

513
00:27:40,720 --> 00:27:43,160
Speaker 1: to concern with him, he's unvaccinated, so he can't play

514
00:27:43,200 --> 00:27:46,920
Speaker 1: games in Toronto. The Cardinals play in Toronto tonight and St.

515
00:27:46,920 --> 00:27:49,359
Speaker 1: Louis will be without it's top two hither as Paul

516
00:27:49,359 --> 00:27:53,240
Speaker 1: Goldsmith Nolan Arronado, both on facts. The doors open at

517
00:27:53,280 --> 00:27:56,480
Speaker 1: all thirty two NFL training camps today for the Jets

518
00:27:56,480 --> 00:27:58,640
Speaker 1: and Giants that come off seasons where they both went

519
00:27:58,720 --> 00:28:02,359
Speaker 1: four and thirteen. John stactually our Bloomberg Sports, Nathan, thank you,

520
00:28:02,440 --> 00:28:04,520
Speaker 1: John sixty seven on Wall Street Time to take a

521
00:28:04,520 --> 00:28:06,440
Speaker 1: look at stocks, some of the names moving in the

522
00:28:06,480 --> 00:28:09,480
Speaker 1: pre market. Bloomberg Radio and TV Markets correspondent Pretty Gupta

523
00:28:09,640 --> 00:28:12,360
Speaker 1: is very busy this morning because there has already been

524
00:28:12,440 --> 00:28:15,000
Speaker 1: a lot of earnings acrossing the tape in the pre market.

525
00:28:15,040 --> 00:28:16,879
Speaker 1: Where do you want to start. Let's start with General

526
00:28:16,920 --> 00:28:19,400
Speaker 1: Motors here, because this is I think almost the old

527
00:28:19,440 --> 00:28:22,240
Speaker 1: story is the new story. General moters missing their profit

528
00:28:22,320 --> 00:28:25,120
Speaker 1: estimates is of course coming after the chip shorters. They're saying, well, look,

529
00:28:25,320 --> 00:28:27,960
Speaker 1: the chips are issue is still a major issue. We've

530
00:28:27,960 --> 00:28:29,720
Speaker 1: been talking about this for almost a year and a

531
00:28:29,800 --> 00:28:32,880
Speaker 1: half now, Nathan, and it's enormous and they're saying basically,

532
00:28:32,920 --> 00:28:35,560
Speaker 1: without all the chips, they can't increase their output. Therefore,

533
00:28:35,960 --> 00:28:39,480
Speaker 1: when people buy cars. There's just no supply for them.

534
00:28:39,560 --> 00:28:41,800
Speaker 1: That being said, the way they're making it up is

535
00:28:41,840 --> 00:28:45,280
Speaker 1: by having higher sticker prices on their SUVs and their trucks,

536
00:28:45,280 --> 00:28:49,160
Speaker 1: so their production volume remains constrained, but ultimately the kind

537
00:28:49,200 --> 00:28:51,680
Speaker 1: of sticker price makes up for it. That being said

538
00:28:51,760 --> 00:28:55,400
Speaker 1: Mary Barra, the chief executive officer of GM. She does

539
00:28:55,520 --> 00:28:58,360
Speaker 1: say that they expect those deliveries to be up sharply

540
00:28:58,440 --> 00:29:00,400
Speaker 1: in the second half, so basically the first half is

541
00:29:00,400 --> 00:29:02,440
Speaker 1: not representative of the back half of the year is

542
00:29:02,440 --> 00:29:04,840
Speaker 1: going to be like still, that is not helping the

543
00:29:04,840 --> 00:29:07,479
Speaker 1: shares regardless. GM is also the taker as well as

544
00:29:07,480 --> 00:29:10,400
Speaker 1: the company's name down one point four percent in the

545
00:29:10,400 --> 00:29:12,840
Speaker 1: pre market. So it really is the old stories the

546
00:29:12,840 --> 00:29:15,560
Speaker 1: news story. And while we're talking about some of those industrials,

547
00:29:15,600 --> 00:29:17,760
Speaker 1: I would argue UM three M is another one. We

548
00:29:17,760 --> 00:29:19,440
Speaker 1: want to keep an eye on those earnings coming out

549
00:29:19,440 --> 00:29:22,640
Speaker 1: as well. M M M is your ticker. The shares

550
00:29:22,640 --> 00:29:25,080
Speaker 1: are about two percent this morning. This comes after they

551
00:29:25,080 --> 00:29:28,560
Speaker 1: announced a spinoff of their healthcare unit, a huge project

552
00:29:28,560 --> 00:29:31,480
Speaker 1: that they're saying is going to help monetize their healthcare

553
00:29:31,520 --> 00:29:33,440
Speaker 1: business in the long term. And Nathan, this is a

554
00:29:33,480 --> 00:29:36,120
Speaker 1: theme we just heard Amazon getting into the healthcare business.

555
00:29:36,200 --> 00:29:38,600
Speaker 1: It looks like healthcare is the place to be at

556
00:29:38,640 --> 00:29:41,520
Speaker 1: the moment. Yeah, it certainly does. And we also got

557
00:29:41,560 --> 00:29:45,760
Speaker 1: that big news yesterday from Walmart cutting its Outlook. Are

558
00:29:45,800 --> 00:29:50,080
Speaker 1: we seeing some spill over into other big box retailers, Oh,

559
00:29:50,080 --> 00:29:52,840
Speaker 1: we absolutely are. The pain is back when it comes

560
00:29:52,880 --> 00:29:55,240
Speaker 1: to the retailers. Down about nine point three percent for

561
00:29:55,280 --> 00:29:58,080
Speaker 1: Walmart sharees w M T is your taker. And to

562
00:29:58,200 --> 00:30:01,960
Speaker 1: your point, they did talk about that that massive myth

563
00:30:02,000 --> 00:30:05,320
Speaker 1: they they're they're cut on their full year forecast, Nathan,

564
00:30:05,840 --> 00:30:08,760
Speaker 1: is huge. They had previously forecasted a drop about one

565
00:30:08,800 --> 00:30:11,479
Speaker 1: percent on their full year forecast. Now they're saying it's

566
00:30:11,520 --> 00:30:15,760
Speaker 1: going to be eleven to. That is enormous. In addition

567
00:30:15,760 --> 00:30:18,400
Speaker 1: to talking about this, of course, the inventory build up

568
00:30:18,440 --> 00:30:20,840
Speaker 1: that we've seen across the board. Really when we have

569
00:30:20,960 --> 00:30:23,920
Speaker 1: Target come out that big warning. Um. More recently t

570
00:30:24,040 --> 00:30:25,960
Speaker 1: g T s the other taker, down about five percent

571
00:30:26,000 --> 00:30:29,320
Speaker 1: on Target shares. And the issue with Walmart, Nathan, Um

572
00:30:29,440 --> 00:30:31,520
Speaker 1: for for the folks who are not New Yorkers and

573
00:30:31,560 --> 00:30:34,600
Speaker 1: are familiar with Walmart, you'll know that everyday low prices

574
00:30:34,760 --> 00:30:38,440
Speaker 1: is their thing. UM and price much guarantees they target

575
00:30:38,520 --> 00:30:41,560
Speaker 1: a lower income audience, but that of course is the

576
00:30:41,640 --> 00:30:44,120
Speaker 1: part that is most hit by inflation as well, so

577
00:30:44,160 --> 00:30:46,640
Speaker 1: you can't pass on the higher input costs and that's

578
00:30:46,680 --> 00:30:49,200
Speaker 1: what's really hitting their bottom line there. Yeah, big part

579
00:30:49,200 --> 00:30:52,240
Speaker 1: of the economics stories. We continue to watch these earnings

580
00:30:52,240 --> 00:30:55,280
Speaker 1: come through. Creaty group to Bloomberg Radio TV Markets correspondent

581
00:30:55,600 --> 00:30:57,560
Speaker 1: with us in the pre market as we say, we're

582
00:30:57,560 --> 00:30:59,640
Speaker 1: gonna be very busy for the next several days, if not.

583
00:30:59,800 --> 00:31:02,280
Speaker 1: We here looking ahead to the market open this morning.

584
00:31:02,320 --> 00:31:05,200
Speaker 1: Future is moving lower. SMP futures down eighteen point, STOW

585
00:31:05,280 --> 00:31:08,320
Speaker 1: futures down a hundred sixty three, NASTACK futures lower by

586
00:31:08,400 --> 00:31:11,320
Speaker 1: sixty nine points, the tenure treasury up eleven thirty seconds,

587
00:31:11,400 --> 00:31:14,680
Speaker 1: yield two point seven five ahead of the feds July

588
00:31:14,880 --> 00:31:23,040
Speaker 1: decision tomorrow. You're listening to Bloomberg day Break Bloomberg eleven

589
00:31:23,080 --> 00:31:25,520
Speaker 1: three oh weather partly sunny, less humid today, mid eighties

590
00:31:25,520 --> 00:31:28,800
Speaker 1: for high so we've been back near ninety Tomorrow and Thursday,

591
00:31:28,840 --> 00:31:31,920
Speaker 1: both days of chances for afting noon showers and thunderstorms.

592
00:31:32,000 --> 00:31:38,440
Speaker 1: Right now seventy two in Central Park Markets, headlines and

593
00:31:38,600 --> 00:31:41,840
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,

594
00:31:41,960 --> 00:31:45,520
Speaker 1: the Bloomberg Business at and at Bloomberg Quick Tape. He's

595
00:31:45,520 --> 00:31:54,640
Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow and it's

596
00:31:54,640 --> 00:31:57,959
Speaker 1: been a busy morning for earnings and futures are lower.

597
00:31:58,040 --> 00:31:59,880
Speaker 1: We got to the first word breaking news dash for

598
00:32:00,080 --> 00:32:04,000
Speaker 1: day's morning call, and here's Bill Maloney. Bill, good morning, Yeah,

599
00:32:04,040 --> 00:32:06,920
Speaker 1: and good morning, Karen. Walmart is setting the tone today,

600
00:32:06,960 --> 00:32:10,680
Speaker 1: dropping ten percent. Pre market Future is currently down a

601
00:32:10,760 --> 00:32:13,520
Speaker 1: hundred and fifty points, sabs drop fifteen well, the nastic

602
00:32:13,560 --> 00:32:17,160
Speaker 1: futures are off by sixty one. US ten year old

603
00:32:17,200 --> 00:32:20,280
Speaker 1: sinks to two point seven six percent, Gold is little chained,

604
00:32:20,360 --> 00:32:23,600
Speaker 1: Oil is climbing, and Bitcoin is down by five percent.

605
00:32:24,000 --> 00:32:26,640
Speaker 1: Hong Kong rose one point seven percent overnight, while up

606
00:32:26,840 --> 00:32:28,920
Speaker 1: markets are in the red this morning and back in

607
00:32:28,920 --> 00:32:31,160
Speaker 1: the US. On the economic front, it's on o'clock consumer

608
00:32:31,160 --> 00:32:34,480
Speaker 1: confidence and new home sales after the bells night. Walmart

609
00:32:34,520 --> 00:32:37,600
Speaker 1: cut its profit outlook again and regarding some of the

610
00:32:37,600 --> 00:32:41,040
Speaker 1: earnings this morning, g and upspat estimates and also look

611
00:32:41,080 --> 00:32:43,959
Speaker 1: for Coca Cola and McDonald's report in the pre market.

612
00:32:44,280 --> 00:32:46,720
Speaker 1: Indian News three im plans to spin off its healthcare

613
00:32:46,800 --> 00:32:49,840
Speaker 1: business and wrapping things up. Micro Strategy was put to

614
00:32:49,920 --> 00:32:54,080
Speaker 1: underperform over Red Jeffreys Live from the First Record newsscom

615
00:32:54,160 --> 00:32:56,360
Speaker 1: Bill Maloney, Karen, alright, Bill, thank you to here live

616
00:32:56,400 --> 00:32:59,320
Speaker 1: breaking news over your Bloombery Times, Squawk on your terminal

617
00:32:59,520 --> 00:33:02,360
Speaker 1: SQ you a w K, that's a Bloomberg business flash.

618
00:33:02,360 --> 00:33:04,719
Speaker 1: Now here's Michael Barrow with more on what's going on

619
00:33:04,840 --> 00:33:07,120
Speaker 1: around the world. Michael, Karen, thank you very much. It

620
00:33:07,160 --> 00:33:10,000
Speaker 1: will be the first time President Trump returns to Washington

621
00:33:10,280 --> 00:33:13,760
Speaker 1: since leaving office. Today, the former president will deliver a

622
00:33:13,880 --> 00:33:18,040
Speaker 1: policy speech before an allied think tank crafting a possible

623
00:33:18,080 --> 00:33:21,840
Speaker 1: second Trump term. W NBA star Britney Grinder has returned

624
00:33:21,840 --> 00:33:24,640
Speaker 1: to a Russian court room for her drawn out trial

625
00:33:24,720 --> 00:33:26,920
Speaker 1: on drug charges. They could bring her ten years in

626
00:33:26,920 --> 00:33:30,360
Speaker 1: prison if convicted. The trial of the Phoenix Mercury Standout

627
00:33:30,400 --> 00:33:33,520
Speaker 1: began July first, but only four sessions have been held,

628
00:33:33,840 --> 00:33:36,800
Speaker 1: some of them lasting only a few hours. In baseball,

629
00:33:36,840 --> 00:33:39,920
Speaker 1: the Red Sox beat the Guardians three one, The Orioles

630
00:33:39,920 --> 00:33:43,360
Speaker 1: down the Raise five one, The Nationals beat the Dodgers

631
00:33:43,440 --> 00:33:47,320
Speaker 1: for one. The A's beat the Astros seven five, the

632
00:33:47,360 --> 00:33:51,720
Speaker 1: Diamondbacks blank the Giants seven. Zip Global news twenty four

633
00:33:51,720 --> 00:33:54,240
Speaker 1: hours a day on air and on Bloomberg Quick Take

634
00:33:54,240 --> 00:33:57,479
Speaker 1: Power by more than hundred journalists and analysts more than

635
00:33:57,520 --> 00:34:00,360
Speaker 1: a hundred twenty countries. And Michael Barn this is Boomberg.

636
00:34:00,440 --> 00:34:03,440
Speaker 1: Here Ry Michael bar thank you, and it is six

637
00:34:03,520 --> 00:34:06,320
Speaker 1: forty nine on Wall Street. Return to news and science

638
00:34:06,320 --> 00:34:08,600
Speaker 1: and technology now with the Bloomberg and j I T

639
00:34:08,800 --> 00:34:12,560
Speaker 1: Stem Report, brought to you by New Jersey Institute of Technology,

640
00:34:12,600 --> 00:34:16,240
Speaker 1: transforming computing professionals into data scientists to meet the demand

641
00:34:16,280 --> 00:34:18,759
Speaker 1: in this fast growing field. Learn more at n j

642
00:34:18,920 --> 00:34:22,120
Speaker 1: I T dot E d U slash Data Science Now.

643
00:34:22,160 --> 00:34:25,319
Speaker 1: Here's It's making news and science, technology, engineering, and math.

644
00:34:25,760 --> 00:34:28,880
Speaker 1: Environmental groups are asking Tesla to reconsider its plans for

645
00:34:29,000 --> 00:34:32,880
Speaker 1: nickel investment in Indonesia. Dozens of organizations ask the e

646
00:34:32,960 --> 00:34:36,680
Speaker 1: V Giant determinate plans, siting the country's history of environmental

647
00:34:36,760 --> 00:34:41,080
Speaker 1: damage and anti democratic governance. Indonesia is the world's top

648
00:34:41,120 --> 00:34:44,360
Speaker 1: producer of nickel. J D dot Com and bay Do

649
00:34:44,520 --> 00:34:47,400
Speaker 1: are among Chinese tech firms that may follow Ali Baba

650
00:34:47,400 --> 00:34:50,840
Speaker 1: and applying for a Hong Kong primary listing as the

651
00:34:50,840 --> 00:34:54,280
Speaker 1: financial hub seeks to attract mainland investors and hedge against

652
00:34:54,320 --> 00:34:57,480
Speaker 1: the risk of being kicked off US exchanges. Over the

653
00:34:57,520 --> 00:35:00,760
Speaker 1: past year, Chinese companies have increasingly opted for a dual

654
00:35:00,840 --> 00:35:04,200
Speaker 1: primary listing in both the US and Hong Kong, and

655
00:35:04,280 --> 00:35:08,640
Speaker 1: crypto owners would not have to report small transactions under

656
00:35:08,640 --> 00:35:12,719
Speaker 1: a bipartisan bill sponsored by Republican Senator Pat Toomey and

657
00:35:12,760 --> 00:35:16,239
Speaker 1: Democratic Kirston Cinema that's aimed at simplifying the use of

658
00:35:16,360 --> 00:35:19,680
Speaker 1: virtual currencies. It's unclear if the bill could be considered

659
00:35:19,680 --> 00:35:23,160
Speaker 1: this year. That's the Bloomberg and jat Stem report. Nathan

660
00:35:23,360 --> 00:35:25,840
Speaker 1: interesting note out of Washington. There, thank you, Karen. We

661
00:35:25,880 --> 00:35:28,480
Speaker 1: are live from the Bloomberg Interactive Broker Studios where at

662
00:35:28,520 --> 00:35:30,640
Speaker 1: six fifty on Wall Street, and it is time to

663
00:35:30,719 --> 00:35:32,520
Speaker 1: check what's going on in d C. Some of the

664
00:35:32,560 --> 00:35:35,760
Speaker 1: top stories in our nation's capital include former President Donald

665
00:35:35,800 --> 00:35:39,880
Speaker 1: Trump returning to Washington to make a policy speech, China

666
00:35:40,120 --> 00:35:43,520
Speaker 1: fuming over how Speaker Nancy Pelosi potentially heading to Taiwan,

667
00:35:44,040 --> 00:35:47,479
Speaker 1: and the Biden teams take on a technical recession. It's

668
00:35:47,520 --> 00:35:50,719
Speaker 1: not real. Let's bring back Joe Matthew, our Washington correspondent,

669
00:35:50,760 --> 00:35:54,279
Speaker 1: host of Sound on Here on Bloomberg Radio. Joe, what

670
00:35:54,600 --> 00:35:57,719
Speaker 1: is the level of anticipation from where you sit for

671
00:35:57,760 --> 00:36:01,480
Speaker 1: the former president's return later today, Well, it's very high.

672
00:36:01,760 --> 00:36:04,960
Speaker 1: We've been, you know, anticipating this speech, and we now

673
00:36:05,120 --> 00:36:10,920
Speaker 1: understand that we will have dueling speeches as we first thought. Yesterday.

674
00:36:11,000 --> 00:36:13,080
Speaker 1: You might have heard that Mike Pence's speech at the

675
00:36:13,120 --> 00:36:16,719
Speaker 1: Heritage Foundation here in d C. Last evening had to

676
00:36:16,719 --> 00:36:19,040
Speaker 1: be postponed because of weather. Couldn't get the plane here.

677
00:36:19,040 --> 00:36:21,520
Speaker 1: But he's said to speak at a separate event this

678
00:36:21,600 --> 00:36:25,279
Speaker 1: morning in Washington. So this becomes a bigger story when

679
00:36:25,280 --> 00:36:27,960
Speaker 1: you consider the two of them talking within hours of

680
00:36:28,000 --> 00:36:30,879
Speaker 1: each other here. As far as Donald Trump is concerned, Look,

681
00:36:31,080 --> 00:36:33,479
Speaker 1: it's not his first speech since he left the White House,

682
00:36:33,480 --> 00:36:37,480
Speaker 1: so his messaging, the points that he plans to hit

683
00:36:37,520 --> 00:36:40,520
Speaker 1: and the people will be surrounding himself with, will look

684
00:36:40,600 --> 00:36:46,200
Speaker 1: very familiar. It's billed as a speech to the America

685
00:36:46,320 --> 00:36:50,880
Speaker 1: First Policy Institute. Are we expecting a policy speech from

686
00:36:50,920 --> 00:36:54,040
Speaker 1: the President? Well, to the extent that Donald Trump delivers

687
00:36:54,080 --> 00:36:56,440
Speaker 1: policy speeches, and I'm sure there will be. We'll talk

688
00:36:56,480 --> 00:36:59,640
Speaker 1: about border policy. I suspect we'll hear about trade policy.

689
00:37:00,080 --> 00:37:03,000
Speaker 1: Maybe military policy is well, foreign policy. The way we're

690
00:37:03,000 --> 00:37:05,520
Speaker 1: dealing with Vladimir Putin and so forth. That's opposed to,

691
00:37:05,600 --> 00:37:08,600
Speaker 1: you know, a laundry list of proposals here. But the

692
00:37:08,600 --> 00:37:11,279
Speaker 1: fact of the matter is the President has not announced

693
00:37:11,280 --> 00:37:13,680
Speaker 1: a run for the White House. He's not expected to

694
00:37:13,719 --> 00:37:16,280
Speaker 1: do so today, at least in in in a formal sense.

695
00:37:16,520 --> 00:37:19,040
Speaker 1: He likes to say, you know, we won twice and

696
00:37:19,080 --> 00:37:20,839
Speaker 1: we might just have to do it again. That's kind

697
00:37:20,840 --> 00:37:22,440
Speaker 1: of a stock line in his speech that gets a

698
00:37:22,480 --> 00:37:24,759
Speaker 1: big round of applause. But as far as today goes,

699
00:37:24,920 --> 00:37:27,040
Speaker 1: you know, it's gonna be kind of warming back up

700
00:37:27,080 --> 00:37:29,600
Speaker 1: to the crowd. Kevin McCarthy, the minority leader in the House,

701
00:37:29,719 --> 00:37:33,240
Speaker 1: is going to be speaking before the President, surrounding himself

702
00:37:33,280 --> 00:37:36,160
Speaker 1: again by members of the Republican Party here in Washington

703
00:37:36,239 --> 00:37:38,680
Speaker 1: that are on board with Trump. A lot of House

704
00:37:38,960 --> 00:37:42,000
Speaker 1: leadership will be there, as opposed to Senate leadership. Mitch

705
00:37:42,040 --> 00:37:44,200
Speaker 1: McConnell will not be in the room. And as you

706
00:37:44,239 --> 00:37:46,480
Speaker 1: point out, we are going to get now dueling speeches

707
00:37:46,520 --> 00:37:50,520
Speaker 1: from the President and the former vice president, potentially setting

708
00:37:50,600 --> 00:37:56,960
Speaker 1: up at least the dynamic for possible opposition here is

709
00:37:57,560 --> 00:38:00,000
Speaker 1: that part of what we could be expecting, certainly anything

710
00:38:00,040 --> 00:38:02,520
Speaker 1: as possible. It's pretty clear that Mike Pence would like

711
00:38:02,640 --> 00:38:05,400
Speaker 1: to run. It's not clear whether we're gonna have a

712
00:38:05,400 --> 00:38:08,520
Speaker 1: Trump versus Pence race, although that would be a heck

713
00:38:08,600 --> 00:38:12,120
Speaker 1: of a spectacle. The thing is, it's really unclear right now.

714
00:38:12,120 --> 00:38:14,520
Speaker 1: As we've watched Donald Trump endorsed a lot of candidates

715
00:38:14,520 --> 00:38:18,200
Speaker 1: in the primary trail. Uh. Some call him, including our

716
00:38:18,239 --> 00:38:24,040
Speaker 1: own political analyst Rick Davis, Mr thirty because that's really

717
00:38:24,080 --> 00:38:27,319
Speaker 1: been the threshold for his victories on the campaign trail.

718
00:38:27,360 --> 00:38:30,600
Speaker 1: Could he actually beat Mike Pence? Could Mike Pence bring

719
00:38:31,080 --> 00:38:34,480
Speaker 1: a real base of support here? It's very difficult to

720
00:38:34,520 --> 00:38:37,000
Speaker 1: tell in a couple of years, uh that that we've

721
00:38:37,040 --> 00:38:39,640
Speaker 1: gone through here, certainly after January six, because a lot

722
00:38:39,640 --> 00:38:43,000
Speaker 1: of Republicans tend uh not to say that they don't

723
00:38:43,080 --> 00:38:46,240
Speaker 1: want to support Trump. So, you know, does Mike Pence

724
00:38:46,320 --> 00:38:48,840
Speaker 1: have a sort of silent base out there? That's what

725
00:38:48,960 --> 00:38:52,360
Speaker 1: he's trying to figure out as the establishment Republicans like

726
00:38:52,480 --> 00:38:55,480
Speaker 1: Mitch McConnell go a little bit further over to that side.

727
00:38:55,719 --> 00:38:58,480
Speaker 1: And speaking of January six, Joe, it has to be

728
00:38:58,719 --> 00:39:02,919
Speaker 1: noted that this appearances coming as the House January six

729
00:39:02,960 --> 00:39:07,880
Speaker 1: Committee and even other bodies outside Washington are still investigating

730
00:39:07,880 --> 00:39:09,920
Speaker 1: the former completely. That's true. And you know, we talk

731
00:39:10,000 --> 00:39:12,480
Speaker 1: a lot about Joe Biden's approval ratings. Here take a

732
00:39:12,480 --> 00:39:15,880
Speaker 1: look at Donald Trump's approval ratings. Joe Biden is in

733
00:39:15,920 --> 00:39:18,680
Speaker 1: the load and mid thirties, which is historically low. It's

734
00:39:18,680 --> 00:39:20,719
Speaker 1: a major problem. But you know what, Donald Trump is

735
00:39:20,760 --> 00:39:23,480
Speaker 1: in the low forties, not that far ahead. To be

736
00:39:23,480 --> 00:39:26,120
Speaker 1: perfectly honest with you, in a majority of voters on

737
00:39:26,239 --> 00:39:30,000
Speaker 1: both the Democratic and Republican sides have said to posters

738
00:39:30,120 --> 00:39:33,040
Speaker 1: very recently, including one by The New York Times in

739
00:39:33,120 --> 00:39:35,879
Speaker 1: Siena College over the last couple of weeks, that they

740
00:39:35,920 --> 00:39:39,320
Speaker 1: don't they don't prefer either in front of their party.

741
00:39:39,360 --> 00:39:42,359
Speaker 1: They want new faces. Democrats would prefer somebody other than

742
00:39:42,440 --> 00:39:46,239
Speaker 1: Joe Biden. Republicans at least a majority tell posters they

743
00:39:46,280 --> 00:39:48,719
Speaker 1: prefer somebody other than Donald Trump. All right, well, let's

744
00:39:48,719 --> 00:39:51,160
Speaker 1: turn while we wait for that speech from the former

745
00:39:51,200 --> 00:39:53,919
Speaker 1: president later this afternoon, and to what's happening in this

746
00:39:54,080 --> 00:39:56,799
Speaker 1: current White House under President Biden. And it seems like

747
00:39:56,840 --> 00:40:02,400
Speaker 1: they're still mounting pressure from China over this reported trip

748
00:40:02,440 --> 00:40:05,480
Speaker 1: to Taiwan. By how Speaker Nancy Pelosi were getting more

749
00:40:05,520 --> 00:40:09,160
Speaker 1: comments from the China. Chinese government just this morning. Yeah,

750
00:40:09,160 --> 00:40:11,439
Speaker 1: this is true. We've you know, we heard yesterday about

751
00:40:11,440 --> 00:40:14,239
Speaker 1: how they were going to be making special preparations if

752
00:40:14,280 --> 00:40:17,560
Speaker 1: she were to come. The question becomes now, which looks

753
00:40:17,600 --> 00:40:20,400
Speaker 1: worse showing up when President Biden says she should not

754
00:40:20,680 --> 00:40:22,840
Speaker 1: or the Pentagon says she should not, or canceling the

755
00:40:22,840 --> 00:40:25,680
Speaker 1: trip and looking like we cow tow to the Chinese.

756
00:40:25,719 --> 00:40:27,680
Speaker 1: A lot of Republicans are saying that she should go

757
00:40:27,760 --> 00:40:29,840
Speaker 1: for that reason. We keep in mind that we have

758
00:40:29,920 --> 00:40:33,920
Speaker 1: seen other high ranking US officials visit Taiwan, uh Mike Pompeo,

759
00:40:34,200 --> 00:40:36,920
Speaker 1: when the former Secretary of State, the former Defense Secretary

760
00:40:36,960 --> 00:40:39,800
Speaker 1: Mark Esper, the Speaker of the House is apparently a

761
00:40:39,840 --> 00:40:42,280
Speaker 1: little too far up the food chain for the Chinese

762
00:40:42,280 --> 00:40:45,240
Speaker 1: to stomach here. But it is another scenario that reminds

763
00:40:45,320 --> 00:40:47,719
Speaker 1: us of our separate branches of government. Nancy Pelosi does

764
00:40:47,719 --> 00:40:50,000
Speaker 1: not want to be told where or when to travel

765
00:40:50,000 --> 00:40:52,399
Speaker 1: by the White House. But you also have to keep

766
00:40:52,400 --> 00:40:55,000
Speaker 1: in mind that she would need the Administration and by

767
00:40:55,000 --> 00:40:57,640
Speaker 1: that I mean again the Pentagon, to provide transportation for

768
00:40:57,680 --> 00:41:00,279
Speaker 1: a coodel like this. That's an Air Force jet she'd

769
00:41:00,320 --> 00:41:02,320
Speaker 1: be flying on, so at some point they'll need to

770
00:41:02,320 --> 00:41:04,480
Speaker 1: get their heads together on it. The idea would be,

771
00:41:04,480 --> 00:41:06,360
Speaker 1: though did not have her on the ground in Taiwan

772
00:41:06,400 --> 00:41:09,319
Speaker 1: within days of President Biden speaking with President She and

773
00:41:09,360 --> 00:41:11,719
Speaker 1: I suspect they'll figure that out. Yeah, that's right, Just

774
00:41:11,719 --> 00:41:13,880
Speaker 1: what I wanted to get to Joe, because the President

775
00:41:13,920 --> 00:41:16,719
Speaker 1: said that he could be speaking with the Chinese leader

776
00:41:16,760 --> 00:41:19,080
Speaker 1: as soon as this week. How does this back and

777
00:41:19,160 --> 00:41:24,520
Speaker 1: forth about the speaker Pelosi affect those preparations for that call?

778
00:41:24,800 --> 00:41:26,800
Speaker 1: Kind of hard to tell if if it does affect

779
00:41:26,840 --> 00:41:28,600
Speaker 1: them at all. You know, this just could be kind

780
00:41:28,600 --> 00:41:30,400
Speaker 1: of noise in the background by the time these two

781
00:41:30,440 --> 00:41:32,160
Speaker 1: get on the phone. I think the concern would be

782
00:41:32,520 --> 00:41:36,040
Speaker 1: if Nancy Pelosi were taking pictures, uh, you know, if

783
00:41:36,040 --> 00:41:38,680
Speaker 1: there were photo ops in Taiwan leading up to or

784
00:41:38,760 --> 00:41:41,000
Speaker 1: just after that meeting, that that might make things a

785
00:41:41,040 --> 00:41:43,319
Speaker 1: little bit more complicated. But Taiwan is going to be

786
00:41:43,360 --> 00:41:46,480
Speaker 1: something that's discussed in this hall, and after Joe Biden

787
00:41:46,520 --> 00:41:48,960
Speaker 1: said and the White House went back to clarify what

788
00:41:49,040 --> 00:41:52,920
Speaker 1: he said that we would in fact support Taiwan if

789
00:41:52,960 --> 00:41:56,080
Speaker 1: it were invaded by China. A lot of questions about

790
00:41:56,080 --> 00:41:58,640
Speaker 1: what exactly the policy is at this point with this

791
00:41:58,680 --> 00:42:01,880
Speaker 1: White House. All right, when Berg Washington correspondent Joe Matthew

792
00:42:01,960 --> 00:42:04,319
Speaker 1: catch him on sound on this afternoon five pm Wall

793
00:42:04,320 --> 00:42:07,880
Speaker 1: Street time on Bloomberg Radio, will get certainly more reaction

794
00:42:08,400 --> 00:42:11,480
Speaker 1: to former President Donald Trump's speech before the America First

795
00:42:11,640 --> 00:42:14,400
Speaker 1: Policy Institute. You can read more about all these stories

796
00:42:14,400 --> 00:42:16,640
Speaker 1: as well on Bloomberg dot com or on the Bloomberg terminal,

797
00:42:16,640 --> 00:42:20,080
Speaker 1: and listen to Bloomberg Radio in Washington Bloomberg and one

798
00:42:20,080 --> 00:42:22,640
Speaker 1: oh five point seven FM HD two. As we continue

799
00:42:22,680 --> 00:42:25,799
Speaker 1: to watch earnings cross the Bloomberg terminal. Coca Cola out

800
00:42:25,800 --> 00:42:28,960
Speaker 1: with second quarter results of beat analysts estimates and boosting

801
00:42:29,000 --> 00:42:33,640
Speaker 1: their guidance for the fiscal year. Futures moving lower. SMP

802
00:42:33,719 --> 00:42:36,640
Speaker 1: futures down fourteen points, Staff futures down a hundred forty three,

803
00:42:36,719 --> 00:42:39,960
Speaker 1: Nasdaq futures down fifty seven points. Much more to come

804
00:42:39,960 --> 00:42:43,279
Speaker 1: on Bloomberg Surveillance with Tom Keene, Jonathan Farrell, and Lisa

805
00:42:43,320 --> 00:42:47,640
Speaker 1: Abrahm woids for Karen Moscow. I'm Nathan Hager. This is

806
00:42:47,680 --> 00:42:48,279
Speaker 1: Bloomberg