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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: We begin with Janet Yellen's first full day in China.

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Speaker 3: This morning, the Treasury Secretary spoke at a roundtable with

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Speaker 3: US businesses operating in China. She highlighted the need for

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Speaker 3: companies to diversify rather than decouple supply chains.

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Speaker 4: The United States does not seek a wholesale separation of

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Speaker 4: our economies. We seek to diversify and not to thecouple.

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Speaker 4: The decoupling of the world's two largest economies would be

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Speaker 4: destabilizing for the global economy and it would be virtually

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Speaker 4: impossible to undertake.

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Speaker 3: Jenny Yellen's remarks comm as China imposes restrictions on exporting

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Speaker 3: minerals that are crucial to key technologies, well.

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Speaker 2: Nathan, the Treasury Secretary will have a busy day in Beijing.

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Speaker 2: She had informal talks with China's former vice premier and

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Speaker 2: central bank governor. She's also meeting with the country's new premiere.

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Speaker 2: We get more from Blomberg's Rebecca Chun Wilkins. In Hong Kong.

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Speaker 5: There's Lee Chiang here, who is perhaps the newer relationship

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Speaker 5: this is their first time meeting in Beijing since he

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Speaker 5: took on that more senior role in particular, so we

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Speaker 5: see really Yellen going out and meeting with people both

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Speaker 5: passed and present to try and get these lines of

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Speaker 5: communication open again, try and find some of these areas

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Speaker 5: of common economic ground, even as we know both sort

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Speaker 5: of have these retaliate true sort of tech dots pointing

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Speaker 5: at one another in the background.

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Speaker 2: And Bloomberg's Rebecca Chu and Wilkins as the Treasury Department

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Speaker 2: describes Yellen's talks with Chinese officials so far as quote substantive.

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Speaker 6: Well.

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Speaker 3: In addition to Yellen's trip to China, Karen, we're also

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Speaker 3: keeping a close eye in the US labor market. The

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Speaker 3: government issues monthly payrolls data for June today, Economists predict

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Speaker 3: the gain of two hundred and thirty thousand jobs on

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Speaker 3: the heels of yesterday's surprisingly strong ADP report. We get

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Speaker 3: more from Bloomberg's Michael McKee.

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Speaker 7: Economists aren't buying the ADP data showing almost half a

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Speaker 7: million jobs created in June, but are asking what if

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Speaker 7: a FED rate hike is all but priced in for

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Speaker 7: this month and expectations are that labor market remains tight

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Speaker 7: enough to be an inflation problem even if the ADP

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Speaker 7: numbers are overstated. At their June meeting, FED officials also

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Speaker 7: lowered their unemployment forecast for the year now, anticipating the

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Speaker 7: jobless rate will rise to four point one percent, But

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Speaker 7: the consensus is after going up in May, unemployment likely

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Speaker 7: fell again in June, which leaves the final question what

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Speaker 7: happened with wages, ADP and the market forecast, is that

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Speaker 7: earning's growth slipped in June. That would be something the

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Speaker 7: Fed is looking for. Michael McKee, Bloomberg Daybreak.

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Speaker 2: All right, Mike, thank you well. After that ADP rapport,

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Speaker 2: treasury yields hit their highest levels in fifteen years. Now.

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Speaker 2: That's fueling bets for more rate hikes from the Fed.

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Speaker 2: Dallas FED President Laurie Logan addressed the issue just minutes

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Speaker 2: after yesterday's private payroll data.

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Speaker 8: I remain concerned about whether inflation will return to target

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Speaker 8: in a sustainable and timely way, and I think more

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Speaker 8: restrictive monetary policy will be needed to achieve the fomc's

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Speaker 8: goals of stable prices and maximum employment.

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Speaker 2: Dallas d President Laurie Logan spoke at a Central bank

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Speaker 2: Research Association Forum in New York.

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Speaker 3: Karen, We're also waiting for an announcement from President Biden.

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Speaker 3: Today's expected to release a plan to lower health care

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Speaker 3: costs for some Americans. Amy Morris has a preview from

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Speaker 3: our Bloomberg ninety nine one newsroom in Washington.

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Speaker 9: The administration wants to close loopholes on insurance plans that

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Speaker 9: provide reduced coverage. Now, those plans are often cheaper, but

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Speaker 9: critics say they leave consumers lacking comprehensive coverage and puts

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Speaker 9: them at risk for higher bills in a medical emergency.

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Speaker 9: The administration will also release guidance intended to prevent providers

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Speaker 9: from avoiding billing regulations by contracting with hospitals defined as

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Speaker 9: out of network. White House advisor nar Attanden says the

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Speaker 9: proposals should protect consumers from unexpected bills if they have

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Speaker 9: signed up for miss leading insurance plans. In Washington, I'm

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Speaker 9: Amy Morris, Bloomberg Daybreak.

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Speaker 2: Right, Amy Fan, thank you. In the social media space,

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Speaker 2: the world is still a buzz about the battle between

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Speaker 2: Mark Zuckerberg and Elon Musk. As Instagram's threads enters its

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Speaker 2: second day of existance, we get the latest from Bloomberg's

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Speaker 2: John Tucker, John, good Morning, and.

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Speaker 10: Karen, the heat is on must Twitter now threatening to

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Speaker 10: sue Zuckerberg's Meta for its new app. The website Semaphore

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Speaker 10: quotes a lawyer for Twitter as saying the company has

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Speaker 10: serious concerns that Meta Platforms is engaged in systematic, willful

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Speaker 10: and unlawful misappropriation of Twitter's trade secrets and other intellectual property.

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Speaker 10: In a tweet, Elon Musk said competition is fine, cheating

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Speaker 10: is not. The new app very similar to Twitter, although

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Speaker 10: some of the language is different. It's not a tweet,

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Speaker 10: it's a thread. Visually, Threads does look similar to Twitter.

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Speaker 10: The Daily Mail reports in the first twenty four hours

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Speaker 10: after launch, Threads has already hit fifty million users and

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Speaker 10: seen nearly one hundred million posts in New York. I'm

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Speaker 10: John Tucker, Bloomberg day Break.

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Speaker 3: All right, John, thank you now. A Bloomberg News exclusive

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Speaker 3: involving Apple's new headset told the rollout of the new

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Speaker 3: device will be relatively slow. The company plans a retail

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Speaker 3: launch of its Vision Pro headset with appointments in select

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Speaker 3: US markets early next year. Source to say Apple will

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Speaker 3: designate special areas in the stores with seating, headset, demo units,

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Speaker 3: and tools to access or to size accessories for buyers.

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Speaker 3: While the device will be sold at all Apple locations

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Speaker 3: in the US, the company's initially planning special sections for

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Speaker 3: Vision Pro only its stores in major metro areas.

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Speaker 2: And staying with tech Nathan, we're learning about a management

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Speaker 2: shake up at Binance. Sources he and the executive tasks

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Speaker 2: with helping the world's biggest crypto exchange navigator regulatory crisis

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Speaker 2: is leaving the company. The move comes as Finance faces

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Speaker 2: US allegations of fraud and compliance lapses. The executive who's leaving,

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Speaker 2: Patrick Hillman, was Chief Strategy officer at Finance since twenty

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Speaker 2: twenty one.

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Speaker 3: Time now to take a look at some of the

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Speaker 3: other stories making news in New York and around the world,

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Speaker 3: and for that we're joined by Bloomberg's Michael Barr.

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Speaker 6: Good morning, Michael, Good morning, Nathan. Dozens of people were

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Speaker 6: heard when a double deckor tour bus collided with an

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Speaker 6: MTA US in Manhattan. It happened last evening on First

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Speaker 6: Avenue in East twenty third Street. Police say the MTA

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Speaker 6: Express bus had the right of way as it traveled

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Speaker 6: through the intersection MTA Transit President Richard Davy.

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Speaker 3: The tour bus behind us seemed to have pulln a

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Speaker 3: red light and t boned our bus hit it actually twice.

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Speaker 9: It was going so fast, we.

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Speaker 6: Think audio courtesy of ABC seven. Both buses were full

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Speaker 6: at the time of the crash. Many of those injured

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Speaker 6: were treated for cuts, bruises, and fractures. The man who

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Speaker 6: shot and killed twenty three people at a Walmart in

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Speaker 6: El Paso in twenty nineteen is set to be sentenced

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Speaker 6: today in federal court. For two days, survivors and victim

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Speaker 6: families have been addressing the court. When the father of

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Speaker 6: the youngest victim spoke, he turned to shoot at Patrick

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Speaker 6: Crusius and said, look at me, you coward, look at

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Speaker 6: my son's picture. Crusius, a self proclaimed white supremacist who

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Speaker 6: admitute targeting Hispanics, was seen crying in court during victim

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Speaker 6: impact statements. Crusius is expected to be given ninety life

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Speaker 6: sentences today. Prosecutors in a separate state case, we'll try

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Speaker 6: for depth. President Joe Biden has agreed to send cluster

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Speaker 6: munitions to Ukraine, Bloomberg said. Maxter reports. Though there is dissent, there.

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Speaker 11: Is international concern from arms control in human rights groups

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Speaker 11: because of the potential of harmed civilians. More than one

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Speaker 11: hundred countries, including France, Germany, the UK, and many other

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Speaker 11: NATO allies or parties, to what is called the Convention

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Speaker 11: of Cluster Munitions, which is a twenty ten agreement that

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Speaker 11: bans the use and transfer of such weapons. Note that

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Speaker 11: the US, Russia, and Ukraine did not sign the agreement,

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Speaker 11: although the US in the past has condemned others for

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Speaker 11: using them. In San Francisco, I'm at Baxter, Bloomberg Daybreak.

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Speaker 6: More than sixty seven million Americans in thirty one states

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Speaker 6: saw temperatures top ninety degrees Yesterday, nearly forty million experienced

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Speaker 6: Feelds like temperatures in the triple digits. The last three

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Speaker 6: days have broken the record for the hottest average temperature

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Speaker 6: on Earth. Global News twenty four hours a day, powered

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Speaker 6: by Moriman twenty seven hundred journalists and analysts in over

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Speaker 6: one hundred and twenty countries. I'm Michael Barr. This is Bloomberg, Nathan.

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Speaker 3: Thank you, Michael. Time now for the Bloomberg Sports Update

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Speaker 3: with John Stanshauer.

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Speaker 6: Thanks Nathan.

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Speaker 12: The Mets suddenly hot a couple of wins last weekend

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Speaker 12: at Cityfield. They went to Arizona Diamond back to our

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Speaker 12: first places team the Mets one Tuesday, the thrillly ninth

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Speaker 12: inning rally on Wednesday, and a quick start last night.

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Speaker 6: Two one.

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Speaker 13: Hucks deep down the left field line, a laser beam

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Speaker 13: that gets out for a homer. Oh, a screamer by

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Speaker 13: Alonzo down the left field line into the Arizona bullpen,

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Speaker 13: a sizzling two runs shut and at the top of

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Speaker 13: the first the Mets sabbath two.

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Speaker 12: Nothing Lee WCBS twenty sixth hom run for pet Alonzo.

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Speaker 12: He'll be in Monday's home run derby in Seattle for

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Speaker 12: Francisco Alvarez. Two run shot two innings later. Now sixteen

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Speaker 12: homers for the rookie catcher, and in the sixth the

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Speaker 12: blast by Francisco Lindor, who went five for five. The

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Speaker 12: Mets won nine to nothing, plenty of runs support for

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Speaker 12: Carlos Karrasko.

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Speaker 6: He didn't really need it, allowed only three.

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Speaker 12: Hits in eight ins. Mets look to keep it going

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Speaker 12: in San Diego final games before the All Star Break.

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Speaker 12: As lopsided a win as it was for the Mets.

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Speaker 12: The Yankee loss even more so. Baltimore won fourteen to one.

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Speaker 12: At the Stadium. Orioles rookie Gunner Henderson went four for

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Speaker 12: seven with two home runs. What's up with Luis Sevarino?

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Speaker 12: Sheld again? He got only eight outs, gave up seven runs,

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Speaker 12: ten hits as Era is seven point three eight. Yankees

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Speaker 12: and Cubs tonight at the Stadium. It's the Yankee debut

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Speaker 12: of Carlos Radon. He was their prize free agent signings.

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Speaker 12: A busy day at Wimbledon, thirty six year old Novak

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Speaker 12: Djokovic plays his third round matchits against thirty eight year

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Speaker 12: old Stan Wrinka. Andy Murray is thirty six, the its

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Speaker 12: fifth seed in Stefanos sits APAs two sets to one.

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Speaker 12: They couldn't finish. They werean into the curfew. They'll finish

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Speaker 12: the match today. John Stashenewer Bloomberg Sports.

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Speaker 6: From coast to coast, from New York to San Francisco,

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Speaker 6: Boston to Washington, d C. Nationwide on Syrias Exam, the

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Speaker 6: Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 3: Good morning. I'm Nathan Hager. The US wants to diversify,

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Speaker 3: not decouple. That's the message Treasury Secretary Janet Yellen is

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Speaker 3: delivering in China, but at the same time, she is

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Speaker 3: not hesitating to criticize moves she sees as threats to

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Speaker 3: the US economy.

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Speaker 4: The decoupling of the world's two largest economies would be

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Speaker 4: destabilizing for the global economy, and it would be virtually

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Speaker 4: impossible to undertake.

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Speaker 3: It was Secretary Yellen speaking at a roundtable with US

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Speaker 3: business leaders in Beijing, and for more. We are joined

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Speaker 3: by Bloomberg News China Government editor Jill Desis as we

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Speaker 3: continue to monitor Secretary Yellen's visit to China this morning. Jill,

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Speaker 3: she's meeting right now with the new premier Lead t

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Speaker 3: Yang to talking about trying to prevent a winner take

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Speaker 3: all situation in China when it comes to the economies.

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Speaker 3: What is the balance that Secretary Yellen is trying to

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Speaker 3: strike in this visit to Beijing.

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Speaker 14: Yes, Hi, Nathan, Yeah, this is a really, really, really difficult,

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Speaker 14: delicate balance that she has to strike, right because ultimately

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Speaker 14: she's trying to you know, she's putting out these it's

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Speaker 14: not a winner take all situation remarks saying that they

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Speaker 14: need to cooperate. I mean, that's really what the Treasury

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Speaker 14: Department had told us and some of these officials had

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Speaker 14: told us, was the aim of this trip was to

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Speaker 14: open these lines of communication and continue talking with the

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Speaker 14: world's second largest economy. Of course, this is all happening

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Speaker 14: against this backdrop where you've got these You've got the

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Speaker 14: US throwing sanctions on China and Chinese companies. You had

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Speaker 14: China just earlier this week imposed some new export controls

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Speaker 14: and some very key medals. So it's really this weird

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Speaker 14: situation where you can't just cut off all economic cooperation

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Speaker 14: between these two economies, but at the same time they

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Speaker 14: fundamentally disagree about a lot of different issues, primarily about

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Speaker 14: national security, and that's really sort of poured over into

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Speaker 14: how they affect each other's trade and sort of how,

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Speaker 14: you know, how they trust each other or in this case,

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Speaker 14: really mistrust each other. So ultimately, what she has to

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Speaker 14: do is try to say, hey, like, there are ways

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Speaker 14: that we can cooperate, but it is a really really

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Speaker 14: difficult balance.

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Speaker 3: Yeah, and it has been a lot of attention, particularly

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Speaker 3: on these new export controls on the metals germanium and

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Speaker 3: gallium that are so important to technology across a wide spectrum.

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Speaker 3: Here we heard the Secretary say that they're still looking

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Speaker 3: into what the potential impact could be here. But what

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Speaker 3: does that do for the US China relationship when it

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Speaker 3: seems as though we're having sort of a tit for

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Speaker 3: tat when it comes to a trade between these two countries.

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Speaker 14: Yes, it ultimately, I think just kind of makes things

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Speaker 14: a little bit more complicated, as many of these measures

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Speaker 14: often do. Reuters and reporting actually that the US Defense

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Speaker 14: Department is trying to invoke a new defense it's actually sorry,

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Speaker 14: and it's an existing Defense Production Act to boost domestic

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Speaker 14: mining and processing of these metals that China is trying

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Speaker 14: to limit some exports of. I think that that, really, though,

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Speaker 14: speaks to what Janet Yellen has been trying to emphasize here,

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Speaker 14: this idea of how exactly to diversify or decouple or

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Speaker 14: de risk or however you want to say. The language

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Speaker 14: that she was using, that idea of diversifying economies is

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Speaker 14: a bit softer than deep risking, which is, you know,

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Speaker 14: something that we've been hearing out of the US and

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Speaker 14: Europe this year, and is obviously that was even softer

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Speaker 14: than the coupling lengths that we've heard. So I think

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Speaker 14: that that just kind of reflects how difficult it is

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Speaker 14: for these economies and how they have to kind of

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Speaker 14: tailor each of their you know, each of their responses

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Speaker 14: to whatever the other country is trying to do in

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Speaker 14: terms of limiting trade.

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Speaker 3: It's really interesting, literally colorful commentary we're hearing as well

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Speaker 3: from the new premier Lead Chiong ahead of this meeting

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Speaker 3: with Secretary Yellen, saying the China believes of bilateral ties

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Speaker 3: with the US will be more rainbow after wind and rain.

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Speaker 3: What is China trying to get out of this visit

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Speaker 3: with Secretary Yellen?

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Speaker 14: Well, I think at this point with this visit, I

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Speaker 14: mean remember Lee Chong, He's only been in this position

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Speaker 14: for a few months now. He's the new premier that

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Speaker 14: was installed in March, very key ally of President Chi Jinping.

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Speaker 14: What Chine is ultimately is trying to understand is they're

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Speaker 14: trying to build up at some point a relationship or

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Speaker 14: try to understand the relationship that they really have with

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Speaker 14: a lot of these US officials, right because Jenet Yellen,

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Speaker 14: you know's she's got ties or at least, like the

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Speaker 14: Treasury Department has economic ties with some long standing Chinese officials.

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Speaker 14: You look at Luha, the former the former economic policy

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Speaker 14: advisor in charge of trade. He's no longer in a

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Speaker 14: key leadership position anymore, but he was a really critical

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Speaker 14: source during the US China trade war, ineditigated by the

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Speaker 14: Trump administration. So you had like some of these old

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Speaker 14: hands that had these stronger relationships with US officials. We're

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Speaker 14: seeing right now, though, is that Beijing has a lot

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Speaker 14: of new hands that have kind of taken charge who

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Speaker 14: don't have those relationships, and so I think they're just

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Speaker 14: kind of trying to feel each other out right now.

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