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Speaker 1: Live from the Bloomberg Interactive Burger Studios. This is Bloomberg

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Speaker 1: Daybreak for Monday, July two. Coming up, The shower stocks

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Speaker 1: face another test this week as more earnings roll in

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Speaker 1: oil jones following President Biden's trip to the Middle East.

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Speaker 1: China rolls out mass testing as COVID cases rise, and

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Speaker 1: the January six Committee prepares to receive texts from the

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Speaker 1: Secret Service. Another deadly shooting, this time that the all

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Speaker 1: in Indiana, and a damning report in the police response

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Speaker 1: to the school shooting in Texas. I'm John Tucker. Those

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Speaker 1: stories straight ahead. I'm John Dasher's fourth second straight game

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Speaker 1: with the Yankees clustered the Red Sox. The Mets lost

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Speaker 1: in Chicago. Cameron Smith won the Open Championship Golf. That's

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Speaker 1: all straight ahead on Bloomberg day Break on Bloomberg Eleving

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Speaker 1: freon New York, Bloomberg one, Washington, d C, Bloomberg one

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Speaker 1: oh six one, Boston, Bloomberg nine sixties and Francisco Sirius

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Speaker 1: XM one nineteen and around the world on Bloomberg Radio

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Speaker 1: dot Com and via the Bloomberg Business Act. Good Morning,

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Speaker 1: I'm Nathan Hagar, and I'm Karen Moscow US Dock Index

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Speaker 1: futures movie higher this morning. We're coming up to five

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Speaker 1: o one on Wall Street, and we checked the markets

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Speaker 1: every fifteen minutes throughout the trading day. On Bloomberg SMP

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Speaker 1: futures up forty three points, at OWN futures up three

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Speaker 1: hundred ten and NASDACK futures have one hundred sixty two.

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Speaker 1: Ten year Treasury down seven thirty seconds, yield two point

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Speaker 1: nine four percent, and a yield on the two year

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Speaker 1: three point one four percent. Nathan Karen. Markets are gearing

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Speaker 1: up for a slew of earnings this week. Investors are

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Speaker 1: watching how business is weathering inflation and tightening from the FED.

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Speaker 1: The major banks finish reporting today following some disappointments from

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Speaker 1: results last week. Bloomberg's Jeff Bellinger has a preview. The

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Speaker 1: investors may not be pleased with the numbers from Goldman

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Speaker 1: Sachs Bloomberg Intelligence, as Goldman's second quarter prophet may have

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Speaker 1: declined sharply versus a year ago because of outsized investment

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Speaker 1: aims that turned to losses and the slide in banking

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Speaker 1: fees that exceeded trading revenue growth. We also hear from

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Speaker 1: Bank of America this morning, the outlook isn't entirely rosy.

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Speaker 1: What b I is more upbeat, saying be of A

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Speaker 1: likely benefited from flat costs, net income that expanded with rates,

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Speaker 1: and healthy industry loan growth. Jeff Bellinger Bloomberg day Break,

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Speaker 1: All right, Jeff, thank you. And some other notable names

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Speaker 1: reporting this week include Tesla, Netflix, United Airlines, and IBM

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Speaker 1: and Nathan. This week's earnings coming the heels of June's

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Speaker 1: hot CPI report. Clara Advisers founder and managing principal Ryan

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Speaker 1: Blander says, even if there are earnings misses, big US

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Speaker 1: companies are still a good place for investors in the

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Speaker 1: sub environment. You gotta stay large cap. We think as

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Speaker 1: an overweight, we love the dividend paying stocks that provide

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Speaker 1: some cash flow. I would say you don't want to

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Speaker 1: abandon large cap technology. I mean, some of these companies

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Speaker 1: are extremely profitable, have huge business modes, and are trading

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Speaker 1: at really nice discounts to their historic multiples. And Ryan

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Speaker 1: Blander and Clara Advisor says we're still likely to see

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Speaker 1: a prolonged period of volatility, and one of Wall Street's

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Speaker 1: biggest bears, Karen says, US stocks are likely to face

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Speaker 1: more declines even if the economy managed to manages to

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Speaker 1: avoid a recession. Morgan Stanley strategist Mike Wilson says he

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Speaker 1: expects the bear market to continue, and he also sees

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Speaker 1: the odds of recession continuing to rise will turning to

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Speaker 1: commodities now. Nathan Oil is advancing this morning after last

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Speaker 1: week's almost seven percent drop. The jump follows President Biden's

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Speaker 1: landmark visit to the Middle East that wrapped up without

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Speaker 1: a firm commitment from Saudi Arabia to boost crewed supplies

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Speaker 1: and checking prices. Now Nimex screwed oil is at one

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Speaker 1: point eight percent of a dollar eighty four and forty

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Speaker 1: three cents a barrel Brent is that more than two

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Speaker 1: percent at a hundred three dollars thirty one cents in Europe.

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Speaker 1: This morning, candidates aiming to succeed UK Prime Minister Boris

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Speaker 1: Johnson are weighing in on the economy and the cost

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Speaker 1: of living crisis in the country. Bloomberg's You and Potts

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Speaker 1: joins us Live with the latest from London. Good Morning,

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Speaker 1: Good Morning, Nathan and Karen. A second at TV debate

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Speaker 1: for the five remaining candidates to take over as the

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Speaker 1: next British Prime minister. Clear dividing lines starting to emerge

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Speaker 1: over taxes and the economy as lawmakers vote and narrow

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Speaker 1: the field. Here's former Chancellor Rishi Senac and for Foreign

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Speaker 1: Secretary Liz Trust, this is something for nothing. Economics isn't

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Speaker 1: conservative socialism Under your plans, we are predicted to have

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Speaker 1: a recession because you have raised tax It is cutting

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Speaker 1: back on growth, it is preventing companies from investing, and

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Speaker 1: it's taking money out of people's pockets. That is no

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Speaker 1: way to get the economy going during a recession. Richie

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Speaker 1: Seon I you've seen as the front run or Penny

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Speaker 1: Mordans runs second list. Trust is third, but a recent

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Speaker 1: poll shows that she would beat all contenders in the

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Speaker 1: final run off between toury members. Live in London, I'm

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Speaker 1: you in parts of bog Daybreak, are you? And thank you?

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Speaker 1: We moved to Italy now wre Prime Minister Mario drags

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Speaker 1: and a mounting pressure to reverse his pledge to resign.

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Speaker 1: Draggy appears determined to leave our for but Summer pushing

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Speaker 1: for him to stay. Bloomberg's tomaso Ebb Heart is more

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Speaker 1: from a lawn the pression is not coming from political parties,

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Speaker 1: but is coming from the country, from a business leader,

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Speaker 1: from professor, from major of more than four hundred cities.

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Speaker 1: So there is growing impression. But at the moment Mario

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Speaker 1: Dagi seems determined to live because of the National Unity

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Speaker 1: government that used to run is not there anymore. The

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Speaker 1: collision is essentially broken. Bloomer Tomasso Ebb heard in Milan,

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Speaker 1: says Mario Dragon will address lawmakers when stay to declare

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Speaker 1: whether or not he'll quit the government. Turning the Asia now, Karen,

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Speaker 1: it was a good day for equity thanks to softer

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Speaker 1: signs from the FED and pledges from China to shore

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Speaker 1: up economic growth. Bloomberg's Juliette Sally joins us with the

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Speaker 1: details from Singapore. Good morning, Juliet, Good morning, Nathan, and Karen.

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Speaker 1: The ms CI Asia Pacific Index excluding Japan, which was

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Speaker 1: closed for a holiday, gained more than one percent, boosted

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Speaker 1: by a jump in Chinese textures. Sentiment across mainland equities

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Speaker 1: and in Hong Kong was boosted after the p POC

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Speaker 1: indicated it will step up implementation of prudent monitory policy.

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Speaker 1: Shares of Chinese developers jumped by the most in nearly

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Speaker 1: a month, following a report that the nation's banking regulator

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Speaker 1: has urged lenders to support the sector amid a growing

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Speaker 1: mortgage Boycosh in Singapore, Juliet Sally Bloomberg, daybreak Right, Juliette,

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Speaker 1: thank you meantime. In China, cases of COVID nineteen remain elevated.

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Speaker 1: Shanghai is rolling out mass testing at nine districts to

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Speaker 1: stamp out infections. The country reported five cases for Sunday

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Speaker 1: after new infections jumped to five eight on Saturday. Turning

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Speaker 1: to politics now, the House January six Committee says it

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Speaker 1: expects to get Secret Service texts before tomorrow's deadline. Bloomberg said,

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Speaker 1: Baxter has that story. These are texts that it was

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Speaker 1: first said were deleted in a system upgrade text that

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Speaker 1: we're not backed up now. Committee member Zoe Lofgren says,

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Speaker 1: a change in tune, and there was a statement made

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Speaker 1: by the spokesperson for the Department saying that you know

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Speaker 1: it wasn't true, was fair and that they in fact

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Speaker 1: had pertinent texts. And remember Adam Kissinger says he hopes

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Speaker 1: to get good information. It is quite crazy that the

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Speaker 1: Secret Service would actually end up deleting anything related to

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Speaker 1: one of the more infamous days in American history, and

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Speaker 1: he says he doesn't know exactly what they'll get. In

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Speaker 1: San Francisco, I'm at Baxter Bloomberg Daybreak. All right, ed,

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Speaker 1: thank you straight ahead. We have your latest local headlines,

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Speaker 1: plus a check of sports. You're listening to Bloomberg Daybreak

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Speaker 1: us at five oh seven on Wall Street where it's

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Speaker 1: seventy seven degrees in Central Park and dealing with an

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Speaker 1: accident on the westbounds Cross, Bronx said, Third Avenue. Details

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Speaker 1: coming up in traffic. First, John Tucker's here with more

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Speaker 1: on what's going on in New York and around the world.

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Speaker 1: Good morning, John and Nathan. Another deadly man shooting, this

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Speaker 1: one he signed Shopping mullin Greenwood, Indiana. Please say they

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Speaker 1: still unidentified adult male enter the mall's food court shortly

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Speaker 1: after six pm local time, apparently with a long gun

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Speaker 1: and several magazines of ammunition, and started shooting. Five people

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Speaker 1: were shot, Three of them died. Please say, Good samaritan

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Speaker 1: to his arm shot the attacker, killing him. The real

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Speaker 1: hero of the day is the citizen that was lawfully

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Speaker 1: carrying a firearm in that food court and was able

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Speaker 1: to stop the shooter almost as soon as he began.

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Speaker 1: That Screenwood Police Chief Jim Ice and Damna investigative report

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Speaker 1: about the mass shooting in Texas. That report finds nearly

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Speaker 1: four hundred law enforcement officials rushed to the mass shooting

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Speaker 1: at Vivandi Elementary School, but egragiously poor decision making resulted

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Speaker 1: in more than an hour of chaos before the government

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Speaker 1: who took twenty one lives was finally confronted and killed.

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Speaker 1: With manting, New York is frustrated with crime. Mayor Eric

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Speaker 1: Adams has been on the road raising money. That story

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Speaker 1: in this report this morning from Bloomberge Lisa Matteo. The

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Speaker 1: mayor raised more than eight hundred and fifty thousand dollars

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Speaker 1: for his re election campaign barely six months after taking office.

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Speaker 1: The figure comes from filings with the city's campaign finance Board.

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Speaker 1: According to The Times, the campaign hall is a result

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Speaker 1: of Mr Adams this traveling across the country to raise

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Speaker 1: money for a second term. Nearly half of Mayor Addams's

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Speaker 1: campaign donations, more than four hundred thousand dollars, came from

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Speaker 1: outside New York City. The donors include leaders from real

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Speaker 1: estate casino and sports betting businesses Liice Mateo, Bloomberg Daybreak

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Speaker 1: and President Vladimir Zelinski removed his national security head in

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Speaker 1: Ukraine's top prosecutor, alleging that some employees collaborated with Russian intelligence.

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Speaker 1: The firings, which targets sensitive polls for a country at war,

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Speaker 1: include the Security Service Chief Personal Friend, whose agency's tasks

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Speaker 1: include counter intelligence, and former Trump White House advisor Steve Bannon,

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Speaker 1: scheduled to go on trial today for contempt of Congress.

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Speaker 1: Bannon spent nearly two months to find a subpoena from

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Speaker 1: the January six committee before he was indubted on contempt

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Speaker 1: of Congress charges in November. As his trial Jake neared,

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Speaker 1: Bennon offered to testify the public, hering an offer that

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Speaker 1: federal prosecutors called not an actual effort at compliance. Global

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Speaker 1: News twenty four hours a day on air and a

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Speaker 1: Bloomberg Quick Take Power bog for the twenties seven hundred

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Speaker 1: journalists and analysts and more than one hundred twenty countries.

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Speaker 1: I'm John Tucker, and this is Bloomberg, Nathan. Thank you.

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Speaker 1: John five ten on Wall Street Time for the Bloomberg

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Speaker 1: Sports Update with John Stonshower Thanks Nathan Rory, McElroy has

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Speaker 1: to be wondering what he has to do to win

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Speaker 1: that elusive fifth career major, the Open Championship at St. Andrew's.

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Speaker 1: He had the full support of the crowd, shot eighteen

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Speaker 1: under far only had four bogees the entire tournament, none

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Speaker 1: in yesterday's final round. He still blew up fourth shot lead.

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Speaker 1: Dam Smith, the twenty eight year old Ausse's, simply outputted

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Speaker 1: and ran off five straight birdies to start the back nine.

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Speaker 1: Smith twenty under, tie the record for major. Cam Young,

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Speaker 1: the Westchester native, who began the Open with a sixty four,

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Speaker 1: finished with a sixty five and an eagle on the

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Speaker 1: par four eighteen poll. He been a second. McElroy was

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Speaker 1: third County two, despondent because it hid this year's gent

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Speaker 1: and this year is going and and I'm I'm playing

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Speaker 1: some of the best golf had a play in a

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Speaker 1: long time, so it's just a matter of keep, you know,

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Speaker 1: knocking on the door, and eventually won the Locan. McRoy

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Speaker 1: still has not one of major since two thousand fourteen.

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Speaker 1: Yankees hit the All Star Rak sixty four and twenty eight,

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Speaker 1: even with a bad week where they lost five out

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Speaker 1: of six. They won the last two of the Red

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Speaker 1: Sox by combined seven to three. Hit was thirteen and

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Speaker 1: two yesterday as Tim Locastro the unlikely hitting star three

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Speaker 1: hits at the home run even Joey Gallo amored. Garret

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Speaker 1: Cole struck out twelve or his ninth win. Mets seemed

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Speaker 1: on their way to a four game sweep in Chicago.

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Speaker 1: Cubs scored twice in the eighth and one three to two.

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Speaker 1: Mets are fifty eight and thirty five, two and a

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Speaker 1: half games ahead of Atlanta. Year ago, the Mets, with

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Speaker 1: the tenth pick in the draft, took Kumar Rocker, a

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Speaker 1: picture from Vanderbilt. Then they had injury concerns and never

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Speaker 1: signed him. He went back into the draft in a surprise.

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Speaker 1: He was taken third overall by Texas. Sons of former

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Speaker 1: Rachel Leakers went one to Matt Holliday's son Jackson by Baltimore,

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Speaker 1: Andrew Jones and son Drew taken by Arizona. John Stashward

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Speaker 1: Bloomberg Sports, Nathan, thank you, john S and p. Futures

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Speaker 1: of forty points right now. Deaf futures up T nine,

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Speaker 1: NASTAC futures up a hundred fifty three. This is Bloomberg

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Speaker 1: your financial legacy Today, Markets, headlines and breaking news twenty

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Speaker 1: four hours a day at Bloomberg dot com. The Bloomberg

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Speaker 1: Business at and at Bloomberg Quick Tape is a Bloomberg

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Speaker 1: Business Flash and I'm Karen Moscow. European stocks in US

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Speaker 1: stock index futures are on the rises morning when the

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Speaker 1: dollar weekends, as investors scale back bets on how aggressively

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Speaker 1: the Federal reserve titan policy. We checked the markets every

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Speaker 1: fifteen minutes throughout the trading day on Bloomberg. Right now,

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Speaker 1: Western p futures or up about forty points, Down futures

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Speaker 1: up two two and Nastack futures up a hundred forty eight.

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Speaker 1: The decks in Germany is at one point three percent,

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Speaker 1: so as the cat in Paris and the foot see

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Speaker 1: one hundred ten year treasury down eleven thirty seconds held

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Speaker 1: two point nine five percent. They yield on the two

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Speaker 1: year three point one four percent. Ni Max Screwed oil

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Speaker 1: is up two point two percent of two dollars thirteen

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Speaker 1: cents and ninety nine dollars eighty six cents a barrel

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Speaker 1: comes gold up nine tenths percent or fourteen dollars eighty cents.

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Speaker 1: At seventeen eighteen thirty announced the euro one point zero

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Speaker 1: one four zero against the dollar, British found one point

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Speaker 1: one nine eight and the yen is at one thirty

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Speaker 1: eight point to six. And look at it Bitcoin, it's

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Speaker 1: up more than six percent at twenty two thousand, two

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Speaker 1: hundred forty five dollars. And we are watching for earnings today.

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Speaker 1: Angleman Saxon, Bank of America among those reporting that's a

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Speaker 1: Bloomberg business flash. Now here's John Tucker with more on

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Speaker 1: what's going on around the world. John, Good morning, and

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Speaker 1: good morning, Karen. Three people killed at a mall in Greenwood, Indiana,

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Speaker 1: in a shooting that ended when an arm man fatally

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Speaker 1: shout the government, demming investigative reports. His poor decision making

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Speaker 1: resulted in more than an hour of chao us before

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Speaker 1: the government to twenty one lives was finally confronted and

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Speaker 1: killed by police at a Texas elementary school, and the

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Speaker 1: Russian Defense Minister has ordered his forces to focus on

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Speaker 1: destroying Ukraine's long range missile and artillery systems during a

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Speaker 1: visit to troops and occupied territory. Bloomberg sports Yankees at

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Speaker 1: the All Star Break with a thirteen to two win

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Speaker 1: over the Red Sox, The Mets lows and Cam Smith

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Speaker 1: wins the British Open. Global News twenty four hours a

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Speaker 1: day on air on Bloomberg Quick Take, powered by more

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Speaker 1: than twenty seven hundred journalists and analysts more than one

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Speaker 1: d twenty countries on John Tucker and this is Bloomberg.

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Speaker 1: Nathan John, Thank you. It's five nineteen on Wall Street

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Speaker 1: Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak.

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Speaker 1: As we get set for another trading week focused on

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Speaker 1: earnings and what the Fed's gonna do at the end

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Speaker 1: of this month, Let's bring in Dennis Gartman, chairman of

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Speaker 1: the University of Akron Endowment Investment Committee for of course,

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Speaker 1: former publisher of the Gartment Letter. Dennis, it's great to

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Speaker 1: speak with you this morning. As we see green on

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Speaker 1: the screen following last week's end of week rally, it

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Speaker 1: seems like markets are sort of dialing back the idea

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Speaker 1: of a hundred basis point move by the FED at

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Speaker 1: the end of this month. What are you pricing in

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Speaker 1: in terms of what the Fed could do? And I

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Speaker 1: think that the market got a little bit silly last

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Speaker 1: week thinking that FED was going to move a hundred

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Speaker 1: basis points. That made it abundantly clear through comments from

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Speaker 1: various regional presidents and the governors of the FED, that

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Speaker 1: seventy five basis points was as far as they were

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Speaker 1: willing to go. Uh and and so the fact that

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Speaker 1: they're dialing it back a little bit given the benefits

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Speaker 1: of better than expected retail sales number on Friday, surprised me.

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Speaker 1: I must admit that the stock market has been as

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Speaker 1: strong as it has been. As the chairman of the

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Speaker 1: University of Akrons Endowment, I got us to move almost

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Speaker 1: fifty of our portfolio out at the end of the

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Speaker 1: last year, and I've been officially barish of stocks since

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Speaker 1: January this year. So maybe I'm wrong. It is possible

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Speaker 1: that we've seen a low I have my doubts at

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Speaker 1: this point. I think the FED is going to continue

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Speaker 1: to be uh less exp eactionary than they had been.

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Speaker 1: They're going to be exactly actually contractionary as far as

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Speaker 1: monetary policy is concerned. I'm far more interested in what

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Speaker 1: they're doing with their balance sheet than they have than

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Speaker 1: what they're doing with the overnight said funds, right, and

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Speaker 1: the balance sheet, which have gone from nine billion dollars

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Speaker 1: to nine trillion dollars in the course of the last

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Speaker 1: several years, has to be drawn down. That that has

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Speaker 1: bunnily has full as time and time again they intend

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Speaker 1: to take sixty five billion dollars out of the balance

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Speaker 1: sheet over the course of the next several years. That

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Speaker 1: I think is far more important than far ore deltarious

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Speaker 1: to stock prices. But nonetheless share prices need to be

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Speaker 1: going up, and I must admit I'm surprised you say

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Speaker 1: you could be wrong about being barished on this market.

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Speaker 1: What are you looking at? What would have to change

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Speaker 1: in the market for you to turn bullish. The most

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Speaker 1: important thing is how the internals of the market respond,

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Speaker 1: and thus far rallies have been on lesser volume and

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Speaker 1: the climbs have been on larger volume. That's how bear

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Speaker 1: markets act, and thus far I have to say that

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Speaker 1: every rally has been a bear market rally, a bounce

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Speaker 1: rather than a rather than a bullish move. We to

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Speaker 1: see volumes started to come in on the upside and

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Speaker 1: it's not doing so, so I'll continue to err upon

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Speaker 1: the side of being modestly barished at this point. But

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Speaker 1: that's the thing that I have to see to see change.

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Speaker 1: I have to see the internals of the market change,

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Speaker 1: and I have to see the FED become expansionary again

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Speaker 1: rather than contractionary. I have to see lessening of the

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Speaker 1: yield curve which has gone to an inversion, which is

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Speaker 1: always barish of stock prices. So a change in the

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Speaker 1: inversion of the yield curve and a in a movement

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Speaker 1: on the on stock prices to rise on stronger volume

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Speaker 1: than fall and lesser volume before I'll have to change

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Speaker 1: my opinion. Do you think that inversion of the yield

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Speaker 1: curve could change anytime soon? What's your outlook on where

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Speaker 1: yields could go from here? I think the overnight PID

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Speaker 1: funds really wants to go another seventy five basis points higher.

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Speaker 1: At the same time, at the back end of the curve,

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Speaker 1: I think grates want to come down a little bit.

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Speaker 1: I'm actually modestly bullish with the long end of the

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Speaker 1: curve thinking that the inflationary pressures are beginning to abate.

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Speaker 1: The the decline and crude oil prices of the client

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Speaker 1: and wheak prices of the declient, and grain prices generally,

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Speaker 1: the decline and base metals prices tells me that inflationary

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Speaker 1: pressures are probably peaked. So that I think that is,

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Speaker 1: I think the FED wants to continue to tighten at

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Speaker 1: the short end of the curve, but the long end

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Speaker 1: of the curve wants two yields once to probably go

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Speaker 1: a little bit lower. So the long of the tenure,

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Speaker 1: which is what now two nine two or something two

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Speaker 1: n three, you can go down to two seventy five,

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Speaker 1: and the short end of the curve you can take

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Speaker 1: the overnight said funds right another seventy five basis points higher.

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Speaker 1: So it'll be at least six months to a year

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Speaker 1: before the Yel curve becomes non inverted, it goes to

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Speaker 1: a more positive slope. Again, that about a minute left here, Dennis,

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Speaker 1: what's your read on how earnings have gone so far,

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Speaker 1: particularly from the banks, and what's your outlook as we

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Speaker 1: go forward further into the earning season. Bank earnings and

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Speaker 1: an inverted YEL curve will always be detrimental. It's it's

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Speaker 1: just as I've always said positively. So youel curves make

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Speaker 1: banking geniuses out of idiots, and then inverted youel curves

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Speaker 1: make idiots out of idiots. So I think that the

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Speaker 1: the banking system is going to have problems of the

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Speaker 1: deal curve and some stays in droted for a long

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Speaker 1: period of time. Thanks for this, Dennis, as always good

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Speaker 1: to get your thoughts. Dennis Gartman, the former publisher of

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Speaker 1: the Gartman Letter, now chairman of the University of Akron

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Speaker 1: Endowment Investment Committee, with us this morning here on Bloomberg

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Speaker 1: Daybreak as we watch equities continue to rise around the world.

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Speaker 1: SMP futures right now up forty three points, that's again

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Speaker 1: one point one percent. Dow futures are up through to

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Speaker 1: twelve points. NASTAC futures leading gains this morning, up a

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Speaker 1: hundred fifty nine points. That's a gain of one and

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Speaker 1: a third percent. Germany's decks the cat in Paris both

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Speaker 1: up one and a half percent this morning. The tenure

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Speaker 1: treasury is down eleven thirty seconds. The yield two point

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Speaker 1: nine five percent yield on the two year again, the

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Speaker 1: twos and tens in inversion with a two year yield

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Speaker 1: at three point one four percent. Watching a crude oil

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Speaker 1: prices on the rise this morning. Nime X screwed is

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Speaker 1: up two point two percent, up two dollars thirteen cents

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Speaker 1: seventy two cents a barrel. The euro right now one

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Speaker 1: point zero one for seven against the dollar. You're listening

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Speaker 1: to Bloomberg Day right Bloomberg eleven three oh weather Cloudye,

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Speaker 1: some showers and storms developing. My midday low eighties for

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Speaker 1: highs will be near ninety in the sunshine tomorrow hot

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Speaker 1: Wednesday highs near right now seventy seven in Central Park.

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Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York,

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Speaker 1: Bloomberg E Loving free to Washington, d C. Bloomberg to Boston,

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Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg Homes

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Speaker 1: sixty to the country, Sirius XM Chando one nine, and

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Speaker 1: around the globe the Bloomberg Business at in Bloomberg Radio

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Speaker 1: dot Com. This is Bloomberg Daybreak. It's five thirty on

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Speaker 1: Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow.

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Speaker 1: We are just about four hours away from the open

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Speaker 1: of US trading. Let's catch you up to date of

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Speaker 1: the news you need to know at this hour. Market

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00:21:03,800 --> 00:21:06,600
Speaker 1: steering up for a slew of earnings this week, investors

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Speaker 1: are watching how business is weathering inflation and tightening from

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Speaker 1: the Fed, Goldman Saxon, Bank of America rapp up reporting

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Speaker 1: from the major banks today. Other notable names this week

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Speaker 1: include Tesla, Netflix, United Airlines, and IBM. Well, all these results,

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Speaker 1: Karen come on the heels of June's hot CPI report.

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Speaker 1: Clara Advisor's founder and managing principal Ryan Bolanger says, even

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Speaker 1: if there are earnings, mrs, big US companies are still

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Speaker 1: a good place to invest. You've got consumer spending still

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Speaker 1: on the rise, so you've still got a very attractive

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Speaker 1: consumer balance sheet. Household finances are in great shape still,

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Speaker 1: so that's one of the reasons why we still like

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Speaker 1: the domestic companies more than the international counterparts. Ryan Blanger

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Speaker 1: with Clara Advisor says we're still likely to see a

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Speaker 1: prolonged period of volatility meantime on a Wall Street's biggest spars,

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00:21:51,440 --> 00:21:54,360
Speaker 1: as US stocks are likely to face more declines. That's

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Speaker 1: even if the economy manages to avoid a recession. Morgan

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Speaker 1: Stanley strategist Mike Wilson says, you expect actual the bear

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Speaker 1: market to continue. He also sees the odds of a

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Speaker 1: recession continuing to rise. Turning two commodities now Karen oil

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Speaker 1: is on the rise this morning after last week's nearly

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Speaker 1: seven percent drop. Jumps follow President Biden's landmark visits to

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Speaker 1: the Middle East that wrapped up without a firm commitment

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Speaker 1: from Saudi Arabia to boost crude supplies. Checking prices now

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Speaker 1: Name excrudes up one pot nine percent of a dollar

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Speaker 1: eighty three at ninety ninety two cents of barrel. Brent

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Speaker 1: is hired by two point one percent at a hundred

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Speaker 1: three dollars thirty cents. I moved to Italy now Nathan,

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Speaker 1: where Prime Minister Mario drag is under mounting pressure to

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Speaker 1: reverse his pledge to resign. Draggy appears determined to leave

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Speaker 1: his office, but some are pushing for him to stay. Bloomberg,

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Speaker 1: Tomaso and Heart has more from Milan. If Druggie resigned,

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Speaker 1: then he will resign. He had off of the President Mazzarella.

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Speaker 1: We are expecting at this point Mazzarella or to have

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Speaker 1: a consultation with political leader, but that's almost no possibility

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Speaker 1: to form a new government. In that case, he will

431
00:22:56,520 --> 00:23:01,200
Speaker 1: call anappalation. Bloomberg's Tomasso eb heard Milan says Mario drag

432
00:23:01,320 --> 00:23:03,960
Speaker 1: you will address lawmakers Wednesday to declare whether or not

433
00:23:04,200 --> 00:23:06,720
Speaker 1: he'll quit the government. And in corporate news this morning,

434
00:23:06,800 --> 00:23:09,639
Speaker 1: Karen's Starbucks is weighing whether to sell its operations in

435
00:23:09,720 --> 00:23:11,959
Speaker 1: the UK. That's according to a reward for the from

436
00:23:12,000 --> 00:23:14,760
Speaker 1: the Financial Times, which says the coffee chain has yet

437
00:23:14,840 --> 00:23:18,040
Speaker 1: to initiate a formal sales process. The UK is starbucks

438
00:23:18,160 --> 00:23:20,960
Speaker 1: largest market in Europe, the Middle East and Africa. And

439
00:23:21,080 --> 00:23:24,160
Speaker 1: futures this morning on the rise. SNP futures up thirty

440
00:23:24,200 --> 00:23:27,840
Speaker 1: eight points now futures of two hundred seventy nowsday futures

441
00:23:27,880 --> 00:23:31,440
Speaker 1: have one five straight ahead, your latest local headlines, plus

442
00:23:31,480 --> 00:23:38,600
Speaker 1: a check of sports. And this is Bloomberg. Thank you, Karen.

443
00:23:39,160 --> 00:23:41,680
Speaker 1: Three on Wall Street seventy seven degrees in Central Park

444
00:23:41,720 --> 00:23:44,239
Speaker 1: in an accident of westbound cross Bronx still has two

445
00:23:44,359 --> 00:23:46,800
Speaker 1: lanes blocked at Third Avenue. More coming up in traffic.

446
00:23:46,920 --> 00:23:49,280
Speaker 1: First John Tucker with more on what's going on in

447
00:23:49,359 --> 00:23:51,920
Speaker 1: New York and around the world. John and Nathan. The

448
00:23:51,960 --> 00:23:54,800
Speaker 1: first draft of an investigative report of the Vans shooting

449
00:23:54,840 --> 00:23:58,240
Speaker 1: at a South Texas elementary school in May finds plenty

450
00:23:58,280 --> 00:24:00,680
Speaker 1: of blame to go around for the stubtle response to

451
00:24:00,760 --> 00:24:03,520
Speaker 1: the attack. Let's get more in this report from Bloomberg's

452
00:24:03,560 --> 00:24:07,320
Speaker 1: Jeff Bellinger. The report finds nearly four hundred law enforcement

453
00:24:07,359 --> 00:24:11,000
Speaker 1: officials rushed to a mass shooting at a Uvaldi Elementary school,

454
00:24:11,200 --> 00:24:15,439
Speaker 1: but egregiously poor decision making resulted in more than an

455
00:24:15,480 --> 00:24:18,560
Speaker 1: hour of chaos before the gunman who took twenty one

456
00:24:18,680 --> 00:24:22,680
Speaker 1: lives was finally confronted and killed. The nearly eighty page

457
00:24:22,760 --> 00:24:25,919
Speaker 1: report was the first to criticize both state and federal

458
00:24:26,000 --> 00:24:29,280
Speaker 1: law enforcement, and not just local authorities in the South

459
00:24:29,359 --> 00:24:33,200
Speaker 1: Texas town, for the bewildering in action. The report also

460
00:24:33,320 --> 00:24:37,160
Speaker 1: finds no one assumed command despite scores of officers being

461
00:24:37,240 --> 00:24:41,080
Speaker 1: on the scene. Some families blasted police as cowards and

462
00:24:41,240 --> 00:24:45,919
Speaker 1: demanded resignations. Jeff Bellinger, Bloomberg, Deybreak Time. Three people were

463
00:24:46,040 --> 00:24:48,639
Speaker 1: killed at of All in Greenwood, Indiana, in a shooting

464
00:24:48,720 --> 00:24:51,320
Speaker 1: that ended when an armed land fatally shopped the gunman

465
00:24:51,720 --> 00:24:54,280
Speaker 1: I mean with a rifle. In several magazines of ammunition,

466
00:24:54,440 --> 00:24:57,359
Speaker 1: ded All's food court and started firing. They set on

467
00:24:57,480 --> 00:25:00,440
Speaker 1: Facebook they were seeking witnesses to the shooting, which took

468
00:25:00,520 --> 00:25:04,439
Speaker 1: place about fifteen miles south of Indianapolis. A New York

469
00:25:04,480 --> 00:25:07,760
Speaker 1: City firefighter was seriously her Sunday after responding to a

470
00:25:07,880 --> 00:25:10,960
Speaker 1: car crash on Manhattan's West Side. He was responding to

471
00:25:11,040 --> 00:25:13,400
Speaker 1: a two car crash when one of the cars shifted

472
00:25:13,560 --> 00:25:17,120
Speaker 1: and falling his leg. According to New York City's Medical Examiner,

473
00:25:17,280 --> 00:25:20,560
Speaker 1: Vanna Trump, the ex wife of the former president, died

474
00:25:20,720 --> 00:25:25,520
Speaker 1: accidentally a blunt impact injuries to her torso She reportedly

475
00:25:25,560 --> 00:25:27,960
Speaker 1: had fallen down the stairs at her Upper East Side home.

476
00:25:28,400 --> 00:25:30,840
Speaker 1: Her death has led the office of New York's Attorney General,

477
00:25:30,960 --> 00:25:34,400
Speaker 1: Letitia James, to postpon a deposition of the former president

478
00:25:34,480 --> 00:25:38,119
Speaker 1: scheduled for next week, and the House Committee investigating the U.

479
00:25:38,280 --> 00:25:41,680
Speaker 1: S Capital Solvas Facts to receive text messages its subpoena

480
00:25:41,800 --> 00:25:45,920
Speaker 1: from the Secret Service by tomorrow. A former Raid Cassidy Hutchinson,

481
00:25:45,960 --> 00:25:48,600
Speaker 1: said she was told Trump wanted to join the mob

482
00:25:48,720 --> 00:25:51,200
Speaker 1: then marching at the Capitol, but was blocked by a

483
00:25:51,280 --> 00:25:55,600
Speaker 1: security detail, and a physical alternational altercation took place. What

484
00:25:55,760 --> 00:25:59,920
Speaker 1: text messages could provide insight into that episode. Global News

485
00:26:00,040 --> 00:26:02,719
Speaker 1: twenty four hours a day on air and the Bloomberg Quicktake.

486
00:26:03,000 --> 00:26:05,560
Speaker 1: We're powered by more than twenty seven hundred journalists and

487
00:26:05,600 --> 00:26:09,320
Speaker 1: analysts and more than one hundred twenty countries. I'm John Tuckery. Yeah,

488
00:26:09,359 --> 00:26:17,359
Speaker 1: this is Bloomberg, Nathan. Thank you. John. Five on Wall Street,

489
00:26:17,400 --> 00:26:19,719
Speaker 1: Time for the Bloomberg Sports Update with John sash out.

490
00:26:19,760 --> 00:26:22,840
Speaker 1: All right, Nathan. The Yankees with a two game Boston massacre.

491
00:26:22,960 --> 00:26:24,680
Speaker 1: They had lost three straight to the Red Sox, but

492
00:26:24,760 --> 00:26:28,520
Speaker 1: then wins fourteen to one and thirteen to two and

493
00:26:28,600 --> 00:26:31,359
Speaker 1: eight run fourth inning later on runs for Tim of Pastro,

494
00:26:31,520 --> 00:26:34,600
Speaker 1: Joey Gallo. Garry Cole struck out twy twelve twice. He

495
00:26:34,720 --> 00:26:38,120
Speaker 1: fanned his nemesis, Rape Devers, who's homard off call eight times.

496
00:26:38,200 --> 00:26:40,840
Speaker 1: Chris Sale started for the sockss back from injury, and

497
00:26:40,880 --> 00:26:43,879
Speaker 1: Aaron hits liner in the first inning broke Sales Pinky.

498
00:26:43,960 --> 00:26:47,680
Speaker 1: Yankees at the All Star break sixty four and thirteen

499
00:26:47,760 --> 00:26:49,800
Speaker 1: game lead me's the fifty eight and thirty five up

500
00:26:49,840 --> 00:26:51,920
Speaker 1: two and a half on Atlanta. They were four outs

501
00:26:51,960 --> 00:26:54,320
Speaker 1: of a four game swite from Chicago. Cubs scored twice

502
00:26:54,359 --> 00:26:56,480
Speaker 1: in the eighth inn and one three to two Starling

503
00:26:56,560 --> 00:26:59,720
Speaker 1: and Marte has taken himself out of Tomorrow's All Star Game.

504
00:26:59,760 --> 00:27:02,000
Speaker 1: Ten night in l A, Peter Lonzo goes for a

505
00:27:02,359 --> 00:27:05,600
Speaker 1: home run derby three. Pete held the MLB draft and

506
00:27:05,640 --> 00:27:08,200
Speaker 1: the sons of former Big leaguers Matt Holliday and Andrew

507
00:27:08,320 --> 00:27:11,120
Speaker 1: Jones went one to to Baltimore and Arizona. The Mets

508
00:27:11,160 --> 00:27:14,280
Speaker 1: took Kevin Parata captured from Georgia Tech, and then Jeff

509
00:27:14,359 --> 00:27:18,680
Speaker 1: Williams high school shortstop from Texas. Yankees drafted Spencer Jones

510
00:27:18,720 --> 00:27:22,400
Speaker 1: and outfielder from Vanderbilt at St. Andrew's. Cam Smith came

511
00:27:22,480 --> 00:27:25,240
Speaker 1: from behind, had five straight birdies to start the back nine,

512
00:27:25,520 --> 00:27:28,600
Speaker 1: and that twenty eight year old Austin won the Open championship.

513
00:27:29,560 --> 00:27:36,800
Speaker 1: It's the poor fools, uh on asy around here, especially

514
00:27:36,840 --> 00:27:39,719
Speaker 1: with that window, you know off the left, and um

515
00:27:40,000 --> 00:27:43,480
Speaker 1: yeah this stuck to what I was doing and um yeah,

516
00:27:43,600 --> 00:27:46,240
Speaker 1: just really crowd of how I how I kna knuckle down? Today?

517
00:27:46,480 --> 00:27:49,000
Speaker 1: Smith tied the record for a major with twenty under

518
00:27:49,040 --> 00:27:52,160
Speaker 1: party beat the Westchester native Cam Young by one shot,

519
00:27:52,200 --> 00:27:55,840
Speaker 1: in Rory McElroy by two. John Stash Award Bloomberg Sports. Nathan,

520
00:27:56,000 --> 00:27:58,160
Speaker 1: Thank you John. It's five thirty seven on Wall Street

521
00:27:58,240 --> 00:28:01,320
Speaker 1: Time now for the Tri State Business Report. Former President

522
00:28:01,359 --> 00:28:04,280
Speaker 1: Donald Trump's golf course in Bedminster set to play host

523
00:28:04,359 --> 00:28:06,480
Speaker 1: to the Saudi Back Live Golf tournament at the end

524
00:28:06,520 --> 00:28:10,199
Speaker 1: of this month. Families of nine eleven victims wanted to reconsider,

525
00:28:10,320 --> 00:28:12,160
Speaker 1: the New York Times reports. Members of the group Nine

526
00:28:12,200 --> 00:28:15,280
Speaker 1: eleven Justice sent a letter to the former president yesterday

527
00:28:15,600 --> 00:28:18,560
Speaker 1: asking him to rethink his business relationship with the Saudi

528
00:28:18,600 --> 00:28:21,679
Speaker 1: Golf League. The families note that the former president has

529
00:28:21,720 --> 00:28:24,359
Speaker 1: blamed the Kingdom for the attack on the World Trade Center.

530
00:28:24,800 --> 00:28:27,520
Speaker 1: Workers at Amazon Showdack warehouse. They're hoping to become the

531
00:28:27,640 --> 00:28:30,040
Speaker 1: second in the state to form a union. About forty

532
00:28:30,080 --> 00:28:33,520
Speaker 1: people turned out yesterday for a rally at Albany's Townsend Park.

533
00:28:33,880 --> 00:28:36,159
Speaker 1: Supporters till the Times union. They're hoping to build on

534
00:28:36,320 --> 00:28:39,080
Speaker 1: Christian small success. He is the interim president of the

535
00:28:39,120 --> 00:28:42,720
Speaker 1: Amazon Labor Union, which one on Staten Island over the summer,

536
00:28:43,000 --> 00:28:47,360
Speaker 1: and NYC Restaurant Week kicks off today across the five boroughs.

537
00:28:47,440 --> 00:28:50,560
Speaker 1: They might be better off calling it NYC Restaurant Month

538
00:28:50,680 --> 00:28:53,320
Speaker 1: Plus because it's actually gonna be five weeks marking the

539
00:28:53,400 --> 00:28:57,080
Speaker 1: thirtieth anniversity event, about six hundred restaurants in eighty five

540
00:28:57,120 --> 00:29:00,200
Speaker 1: neighborhoods are offering two course lunches and three coursetn ers

541
00:29:00,240 --> 00:29:03,160
Speaker 1: for thirty, forty five or sixty dollars. And that is

542
00:29:03,200 --> 00:29:06,760
Speaker 1: the Bloomberg Try State Business Reports thirty eight on Wall Street.

543
00:29:06,800 --> 00:29:09,400
Speaker 1: Bloomberg Radios on the air from San Francisco to New York,

544
00:29:09,520 --> 00:29:11,920
Speaker 1: London to Hong Kong. Let's check in with our global

545
00:29:11,960 --> 00:29:13,640
Speaker 1: news team for some of the top stories heard on

546
00:29:13,720 --> 00:29:19,720
Speaker 1: our three hundred affiliate radio stations around the world. I'm

547
00:29:19,800 --> 00:29:22,680
Speaker 1: Steve Podascan on K and X in Los Angeles. We're

548
00:29:22,720 --> 00:29:26,400
Speaker 1: talking about Stranger Things offering a glimmer of hope during

549
00:29:26,440 --> 00:29:30,320
Speaker 1: the Netflix slamp. Corn Donaho on ktr H in Houston.

550
00:29:30,440 --> 00:29:33,640
Speaker 1: Elon Musk's lawyer say Twitter is unfairly pushing for a

551
00:29:33,720 --> 00:29:36,760
Speaker 1: fast trial of canceled buy out. I'm Gina Servetti and

552
00:29:36,840 --> 00:29:39,800
Speaker 1: for w BB, I'm in Chicago. I'm reporting that Delta

553
00:29:39,840 --> 00:29:42,360
Speaker 1: Airlines is expected to kick off a big air show

554
00:29:42,440 --> 00:29:45,960
Speaker 1: outside of London with orders for Boeing and Airbus jets,

555
00:29:46,240 --> 00:29:48,760
Speaker 1: but the rivals wrapping up deals worth at least twenty

556
00:29:48,800 --> 00:29:51,120
Speaker 1: one billion. I'm carrying head killed boom Bag d A

557
00:29:51,200 --> 00:29:53,640
Speaker 1: B dishow Ado and onto Moverport. And on the potential

558
00:29:53,720 --> 00:29:56,880
Speaker 1: for London to fake in forty degrees Celsius breaking the

559
00:29:57,000 --> 00:30:00,920
Speaker 1: twenty nineteen record he played at laem and cam o

560
00:30:01,160 --> 00:30:03,760
Speaker 1: X and St. Louis. I'll be reporting on how stranger

561
00:30:03,880 --> 00:30:07,280
Speaker 1: things could dave Hollywood summer. Those are some of the

562
00:30:07,280 --> 00:30:10,800
Speaker 1: stories are Bloomberg journalists analysts to working on this morning.

563
00:30:10,880 --> 00:30:13,640
Speaker 1: It's five thirty nine on Wall Street. The following is

564
00:30:13,680 --> 00:30:18,239
Speaker 1: an editorial from Bloomberg Opinion. This editorial was written by

565
00:30:18,360 --> 00:30:22,960
Speaker 1: the Bloomberg Editorial Board. Some five miles off the coast

566
00:30:23,080 --> 00:30:26,880
Speaker 1: of war torn Yemen floats a rusting oil tanker named

567
00:30:27,080 --> 00:30:31,120
Speaker 1: the Sofferer. A skeleton crew maintains the ship, which is

568
00:30:31,200 --> 00:30:35,320
Speaker 1: steadily corroding and could break apart at any moment. If

569
00:30:35,360 --> 00:30:38,440
Speaker 1: that happened, it could release more than a million barrels

570
00:30:38,480 --> 00:30:41,800
Speaker 1: of crude oil into the sea. The United Nations has

571
00:30:41,840 --> 00:30:44,800
Speaker 1: a plan to keep that from happening, but it's struggling

572
00:30:44,880 --> 00:30:48,280
Speaker 1: to raise twenty million dollars for the first stage of

573
00:30:48,360 --> 00:30:52,600
Speaker 1: the operation. There's little time to waste the sea in

574
00:30:52,680 --> 00:30:55,960
Speaker 1: the area will grow rougher and even more dangerous in

575
00:30:56,040 --> 00:30:59,880
Speaker 1: a matter of months. In a world awash with looming disasters,

576
00:31:00,280 --> 00:31:03,680
Speaker 1: it's hard to think of one simpler to avert. The

577
00:31:03,800 --> 00:31:08,880
Speaker 1: global community cannot afford to miss this opportunity. This editorial

578
00:31:09,120 --> 00:31:12,959
Speaker 1: was written by the Bloomberg Editorial Board. For more Bloomberg opinion,

579
00:31:13,120 --> 00:31:16,200
Speaker 1: please go to Bloomberg dot com Slash Opinion or O

580
00:31:16,440 --> 00:31:24,720
Speaker 1: P I N go on the Bloomberg terminal trials every weekday.

581
00:31:24,720 --> 00:31:27,040
Speaker 1: At this time, terminal customers can read more at O

582
00:31:27,200 --> 00:31:30,040
Speaker 1: P I n go. Showers and storms today go up

583
00:31:30,040 --> 00:31:32,479
Speaker 1: to the low eighties right now seventies seven degree use

584
00:31:32,600 --> 00:31:39,840
Speaker 1: in Central Park markets, headlines and breaking news twenty four

585
00:31:39,880 --> 00:31:42,880
Speaker 1: hours a day at Bloomberg dot Com, a Bloomberg Business

586
00:31:42,960 --> 00:31:46,600
Speaker 1: at and at Bloomberg Quick Jape, He's a Bloomberg Business

587
00:31:46,640 --> 00:31:55,560
Speaker 1: slash and I'm Karen Moscow. European stocks in US stock

588
00:31:55,600 --> 00:31:58,600
Speaker 1: index futures are rising this morning with the dollar weekends

589
00:31:58,600 --> 00:32:01,200
Speaker 1: as investors scale back best and have aggressively. The Federal

590
00:32:01,240 --> 00:32:04,600
Speaker 1: Reserve a titan policy easing recession fears, and we check

591
00:32:04,640 --> 00:32:07,360
Speaker 1: the markets every fifteen minutes throughout the trading day. On

592
00:32:07,480 --> 00:32:10,200
Speaker 1: Bloomberg s and P futures up thirty seven points and

593
00:32:10,240 --> 00:32:13,200
Speaker 1: down futures of two hundred fifty nine. Nowsday futures have

594
00:32:13,360 --> 00:32:16,080
Speaker 1: one hundred forty two The decks in Germany's have wanted

595
00:32:16,120 --> 00:32:19,520
Speaker 1: a quarter percent ten year treasury down eleven thirty seconds,

596
00:32:19,600 --> 00:32:21,840
Speaker 1: held two point nine five percent. The yield on a

597
00:32:21,960 --> 00:32:25,400
Speaker 1: two year is at three point one four percent. Nine

598
00:32:25,560 --> 00:32:27,600
Speaker 1: x screwt oil of one and three quarters percent of

599
00:32:27,640 --> 00:32:30,120
Speaker 1: a dollar seventy one and ninety nine dollars thirty cents

600
00:32:30,120 --> 00:32:32,800
Speaker 1: of barrel. Go Max schooled that one percent or seventeen

601
00:32:32,800 --> 00:32:36,320
Speaker 1: dollars thirty cents at seventeen twenty ninety announced the euro

602
00:32:36,480 --> 00:32:39,200
Speaker 1: one point on eight against the dollar, British bound one

603
00:32:39,240 --> 00:32:41,600
Speaker 1: point one nine eight one and again one thirty eight

604
00:32:41,680 --> 00:32:44,880
Speaker 1: point one nine and bitcoin this morning is up more

605
00:32:44,920 --> 00:32:47,800
Speaker 1: than six percent at twenty two thousand, two hundred twenty

606
00:32:47,880 --> 00:32:50,479
Speaker 1: five dollars, and again we're watching for earnings today from

607
00:32:50,520 --> 00:32:53,560
Speaker 1: companies including Goldman, Saxon, Bank of America, and as a

608
00:32:53,600 --> 00:32:56,560
Speaker 1: Bloomberg business flash. Now here's John Tucker with more on

609
00:32:56,680 --> 00:32:59,600
Speaker 1: what's going on around the world. John Karen Good more

610
00:32:59,640 --> 00:33:02,400
Speaker 1: in three people killed in them all in Greenwood, Indiana,

611
00:33:02,960 --> 00:33:05,280
Speaker 1: in a shooting that ended when an armed man fatally

612
00:33:05,320 --> 00:33:09,240
Speaker 1: shot the gunman. A new report finds egregiously poor decision

613
00:33:09,320 --> 00:33:12,040
Speaker 1: making on the part of law enforcement responding to the

614
00:33:12,080 --> 00:33:15,400
Speaker 1: mass shooting at the Vivaldi Elementary School in Texas, and

615
00:33:15,520 --> 00:33:20,160
Speaker 1: President Vladimer Zelinski removed his national security head at Ukraine's

616
00:33:20,240 --> 00:33:25,160
Speaker 1: top prosecutor, alleging that some employees collaborated with Russian intelligence.

617
00:33:25,560 --> 00:33:29,640
Speaker 1: Sports Camp Smith wins Golf's British Open. Yankees beat the

618
00:33:29,680 --> 00:33:32,160
Speaker 1: Red Sox thirteen to two, match los to the Cobs

619
00:33:32,280 --> 00:33:35,120
Speaker 1: three to two. The Nationals beat the Braves, the Orioles

620
00:33:35,200 --> 00:33:37,800
Speaker 1: loses to the Rays, and the A's beat the Astros.

621
00:33:38,080 --> 00:33:40,640
Speaker 1: Global News twenty four hours a day on air and

622
00:33:40,680 --> 00:33:44,000
Speaker 1: on Bloomberg Quick Take power by more than journalists and

623
00:33:44,000 --> 00:33:47,960
Speaker 1: analysis more than one and twenty countries. I'm John Tucker

624
00:33:48,240 --> 00:33:52,720
Speaker 1: at bass Is Bloomberg. This is the Big Take, the

625
00:33:52,880 --> 00:33:56,959
Speaker 1: best of Bloomberg's in depth original reporting from around the globe.

626
00:33:57,000 --> 00:34:00,240
Speaker 1: This is a really fast moving story, close to the

627
00:34:00,320 --> 00:34:04,280
Speaker 1: outrage among investors. This is so fascinating. The market shutdown

628
00:34:04,360 --> 00:34:06,360
Speaker 1: in a way it's never done before. That's gonna have

629
00:34:06,440 --> 00:34:10,920
Speaker 1: consequences for years to come. The Big Take on Bloomberg Radio.

630
00:34:12,920 --> 00:34:16,920
Speaker 1: It's on Wall Street Live from the Bloomberg Interactive Broker Studios.

631
00:34:17,000 --> 00:34:19,920
Speaker 1: This is Bloomberg Daybreak. In our Big Take, this morning

632
00:34:19,960 --> 00:34:22,920
Speaker 1: brings us to look at the next big risk for investors.

633
00:34:23,360 --> 00:34:25,880
Speaker 1: We have predictions from three of the biggest names on

634
00:34:26,080 --> 00:34:30,320
Speaker 1: Wall Street, and Bloomberg Global Finance correspondent Shinali Bassek spoke

635
00:34:30,400 --> 00:34:33,279
Speaker 1: with them all and joins us live with some of

636
00:34:33,360 --> 00:34:35,440
Speaker 1: what she's learned is bringing us this morning on the

637
00:34:35,480 --> 00:34:38,000
Speaker 1: Bloomberg terminal. Shinnally, great to have you back with us

638
00:34:38,120 --> 00:34:41,439
Speaker 1: this morning. Let's start with what you had to say

639
00:34:41,600 --> 00:34:46,200
Speaker 1: with former Goldman sach senior investment strategist Abby Joseph Cohen,

640
00:34:46,239 --> 00:34:50,239
Speaker 1: of course, a very familiar name to Bloomberg listeners now

641
00:34:50,280 --> 00:34:53,319
Speaker 1: with the Columbia Business School. She's got a pretty big

642
00:34:53,600 --> 00:34:57,520
Speaker 1: idea that you fleshed out from her. Yeah, she really does.

643
00:34:57,600 --> 00:34:59,560
Speaker 1: And she was actually the hardest edit for that reason,

644
00:34:59,640 --> 00:35:03,080
Speaker 1: getting all the layers. And she's worried very simply about

645
00:35:03,120 --> 00:35:06,040
Speaker 1: a fading American dream. But there are a lot of

646
00:35:06,120 --> 00:35:10,000
Speaker 1: components that lead to that, and that includes the lack

647
00:35:10,080 --> 00:35:14,720
Speaker 1: of US investment in its own economy. The worry about

648
00:35:14,960 --> 00:35:19,120
Speaker 1: the institutions that protect workers and the economy at large,

649
00:35:19,800 --> 00:35:23,400
Speaker 1: and the idea that immigration is not taking up and

650
00:35:23,440 --> 00:35:25,360
Speaker 1: there are a lot of forces against it. Let's know

651
00:35:25,480 --> 00:35:29,360
Speaker 1: what she had to say. I think that the promise

652
00:35:29,440 --> 00:35:32,360
Speaker 1: of the American dream has to be defined, and that is,

653
00:35:33,360 --> 00:35:37,520
Speaker 1: is every generation doing better than the previous generation? Do

654
00:35:37,640 --> 00:35:41,719
Speaker 1: they have the opportunity to do better than their parents did?

655
00:35:42,440 --> 00:35:45,040
Speaker 1: And what we have seen over the last thirty years

656
00:35:45,239 --> 00:35:49,160
Speaker 1: or so, maybe forty, is that median household income in

657
00:35:49,200 --> 00:35:53,200
Speaker 1: the United States adjusted for inflation, has not risen. But

658
00:35:53,360 --> 00:35:56,360
Speaker 1: that is a problem. I think it creates a sense

659
00:35:56,600 --> 00:36:01,320
Speaker 1: of political discord, It creates a sense of ease among

660
00:36:02,160 --> 00:36:05,200
Speaker 1: people in the United States. Uh. And it is worrisome

661
00:36:05,760 --> 00:36:08,120
Speaker 1: because we have to think about how do we get

662
00:36:08,200 --> 00:36:10,759
Speaker 1: out of this. Well, one way we get out of

663
00:36:10,840 --> 00:36:14,759
Speaker 1: it and is to focus in on the industries that

664
00:36:14,960 --> 00:36:18,880
Speaker 1: we think can create jobs, that can create good paying jobs,

665
00:36:19,440 --> 00:36:21,919
Speaker 1: uh and and to protect our workers in that way.

666
00:36:24,560 --> 00:36:26,800
Speaker 1: So when we think about what she said at large,

667
00:36:26,920 --> 00:36:29,000
Speaker 1: and I want to bring up the immigration point in

668
00:36:29,120 --> 00:36:31,800
Speaker 1: particular because she's worried that we're not going to have

669
00:36:32,400 --> 00:36:35,080
Speaker 1: a workforce that has made for the future to advance

670
00:36:35,160 --> 00:36:38,439
Speaker 1: the American economy forward. She's also worried that the US

671
00:36:38,560 --> 00:36:42,880
Speaker 1: is not investing enough in critical infrastructure, things as simple

672
00:36:43,080 --> 00:36:46,879
Speaker 1: as internet access and communities that could help people get

673
00:36:46,920 --> 00:36:49,960
Speaker 1: off the ground and get the educations they need, and

674
00:36:50,080 --> 00:36:52,520
Speaker 1: the education system at large, which, by the way, is

675
00:36:52,560 --> 00:36:55,120
Speaker 1: a very common theme in this next Big Risk project.

676
00:36:55,239 --> 00:36:58,800
Speaker 1: When we've talked to people in the past, including Eileen Murray,

677
00:36:58,840 --> 00:37:01,480
Speaker 1: the former co cy O Bridge Water, that investment in

678
00:37:01,640 --> 00:37:04,880
Speaker 1: education was one of her biggest worries, along with what

679
00:37:04,960 --> 00:37:07,640
Speaker 1: it meant for the job force. Well, let's turn to

680
00:37:07,960 --> 00:37:11,960
Speaker 1: the next big risk in this project, as we come

681
00:37:12,000 --> 00:37:15,959
Speaker 1: out of this once in a century pandemic. Maybe it's

682
00:37:16,360 --> 00:37:20,279
Speaker 1: not necessarily once in a century, because the next person

683
00:37:20,360 --> 00:37:23,400
Speaker 1: you talked to season even worse pandemic on the horizon.

684
00:37:24,080 --> 00:37:27,680
Speaker 1: So Sam Bankman Freed, the CEO of act X, obviously

685
00:37:27,760 --> 00:37:30,600
Speaker 1: has made a lot of headlines this year for really

686
00:37:30,960 --> 00:37:33,640
Speaker 1: bailing out a lot of the cryptocurrency industry. I mean,

687
00:37:33,760 --> 00:37:36,359
Speaker 1: he is a billionaire in his own right, He's been

688
00:37:36,400 --> 00:37:39,359
Speaker 1: able to navigate the market stress. But when you look

689
00:37:39,360 --> 00:37:43,800
Speaker 1: at how he's spending his own political dollars and charitable dollars,

690
00:37:44,160 --> 00:37:47,840
Speaker 1: what he's doing is putting it towards prevention for the

691
00:37:48,000 --> 00:37:52,440
Speaker 1: next pandemic. He's so worried that we have learned nothing

692
00:37:52,880 --> 00:37:55,800
Speaker 1: when all is said and done, from this current pandemic,

693
00:37:55,920 --> 00:37:59,759
Speaker 1: really from the COVID nineteen pandemic, and he's worried that

694
00:38:00,120 --> 00:38:02,960
Speaker 1: we are going to just put crippling economies into a

695
00:38:03,040 --> 00:38:06,160
Speaker 1: worse spot as well as lose many lives moving forward,

696
00:38:06,520 --> 00:38:08,319
Speaker 1: if we don't do more to prevent the next one.

697
00:38:08,520 --> 00:38:10,759
Speaker 1: Listen to what he had to say. A lot of

698
00:38:10,840 --> 00:38:13,800
Speaker 1: the discourse around you know, COVID and pandemics in general,

699
00:38:13,920 --> 00:38:17,919
Speaker 1: has you know, as you served reference, focused on things

700
00:38:18,000 --> 00:38:21,120
Speaker 1: like masks. By the time that's the debate, we've already

701
00:38:21,160 --> 00:38:24,719
Speaker 1: failed um at the much more important goal, which is

702
00:38:24,760 --> 00:38:28,360
Speaker 1: avoiding ending up there in the first place, by having

703
00:38:28,680 --> 00:38:32,600
Speaker 1: counter measures ready beforehand, by having early detection systems, by

704
00:38:32,680 --> 00:38:35,560
Speaker 1: having good ventilation and buildings. The goals to get to

705
00:38:35,600 --> 00:38:38,760
Speaker 1: a place where outbreaks still become pandemics in the first place,

706
00:38:39,320 --> 00:38:42,200
Speaker 1: and where we don't have to shut down, uh, you know,

707
00:38:42,239 --> 00:38:44,440
Speaker 1: the economy where people don't have to die, where we

708
00:38:44,480 --> 00:38:46,759
Speaker 1: don't have to make trade offs, and hopefully we can

709
00:38:47,280 --> 00:38:49,840
Speaker 1: you know, I think spend you know tens of billions

710
00:38:49,880 --> 00:38:53,400
Speaker 1: of dollars today to save tens of trillions of dollars

711
00:38:54,160 --> 00:38:56,520
Speaker 1: and think about what they have in common. Here. The

712
00:38:56,600 --> 00:38:58,640
Speaker 1: two points that sam Bank and Free and Avages of

713
00:38:58,680 --> 00:39:03,040
Speaker 1: Cohen make is about investing now to prevent that outcomes later.

714
00:39:03,400 --> 00:39:05,399
Speaker 1: For Sam Bank and Free, you know, what he's really

715
00:39:05,440 --> 00:39:08,439
Speaker 1: worried about is that if we just focused on things

716
00:39:08,560 --> 00:39:12,480
Speaker 1: like ventilation and buildings, then we wouldn't have this political

717
00:39:12,560 --> 00:39:14,920
Speaker 1: outcome at the end where people are talking about masks

718
00:39:15,280 --> 00:39:19,239
Speaker 1: and lockdowns. He's saying that the bipartisan effort here is

719
00:39:19,320 --> 00:39:22,040
Speaker 1: really done in the prevention side of things to prevent

720
00:39:22,120 --> 00:39:24,560
Speaker 1: further string not just on the economy later on, but

721
00:39:24,640 --> 00:39:27,440
Speaker 1: also on political systems. And by the way, he does

722
00:39:27,520 --> 00:39:29,640
Speaker 1: talk about this as a global problem and if we

723
00:39:29,719 --> 00:39:33,279
Speaker 1: don't invest in prevention methods, then we really could be

724
00:39:33,600 --> 00:39:37,360
Speaker 1: in the US, for example, subject to a pandemic starting

725
00:39:37,440 --> 00:39:41,080
Speaker 1: elsewhere and traveling across the globe pretty quickly and sort

726
00:39:41,120 --> 00:39:45,239
Speaker 1: of picking up on these ideas of another new pandemic

727
00:39:45,600 --> 00:39:50,200
Speaker 1: and UH lack of infrastructure spending. The next big idea

728
00:39:50,320 --> 00:39:53,840
Speaker 1: here UH focuses on deglobalization. I guess sort of the

729
00:39:53,920 --> 00:39:57,320
Speaker 1: idea that the countries are sort of nationalizing more. This

730
00:39:57,520 --> 00:40:00,239
Speaker 1: is coming from Ken Molis, of course, the f founder

731
00:40:00,280 --> 00:40:03,560
Speaker 1: and CEO of Molus and Company. How's he characterizing the

732
00:40:03,680 --> 00:40:07,279
Speaker 1: risk of the globalization And what's fascinating about Ken Mulis is,

733
00:40:07,320 --> 00:40:10,080
Speaker 1: remember people, many people don't remember this about him. He's

734
00:40:10,840 --> 00:40:14,239
Speaker 1: him and his firm are massive, massive advisors to firms

735
00:40:14,320 --> 00:40:16,680
Speaker 1: around the world, not only in the United States. So

736
00:40:16,840 --> 00:40:20,560
Speaker 1: he's advised companies in Saudi Arabia, in Hong Kong, and

737
00:40:20,719 --> 00:40:23,919
Speaker 1: so he has a really global view of the issue here.

738
00:40:24,400 --> 00:40:26,440
Speaker 1: And he's not the only one to bring that globalization.

739
00:40:26,520 --> 00:40:29,560
Speaker 1: What he is the first one to really do is

740
00:40:29,640 --> 00:40:32,640
Speaker 1: talk about the effects of it and the effects coming

741
00:40:32,680 --> 00:40:36,040
Speaker 1: out of not just the war in Ukraine, but also

742
00:40:36,440 --> 00:40:40,080
Speaker 1: Brexit and also the pandemic. Take a quick listen of

743
00:40:40,160 --> 00:40:42,480
Speaker 1: what he had to say. For a few decades, we

744
00:40:42,560 --> 00:40:45,680
Speaker 1: were able to outsource to the cheapest labor markets. We

745
00:40:45,800 --> 00:40:48,120
Speaker 1: were able to rely on each other for goods that

746
00:40:48,440 --> 00:40:51,160
Speaker 1: that really throughout history, and I do think part of

747
00:40:51,200 --> 00:40:55,120
Speaker 1: this is going back and reading history. Most countries would

748
00:40:55,160 --> 00:40:59,680
Speaker 1: not outsource items that were very important to their well being,

749
00:41:00,040 --> 00:41:02,520
Speaker 1: food being one of them, and I think energy being

750
00:41:02,640 --> 00:41:07,160
Speaker 1: one that's showing up is to be extremely important. What's

751
00:41:07,200 --> 00:41:09,360
Speaker 1: going to happen now is I think each society is

752
00:41:09,400 --> 00:41:11,840
Speaker 1: going to have to think about did I did I

753
00:41:11,960 --> 00:41:16,920
Speaker 1: outsource something that that I'm not comfortable with. He's very

754
00:41:17,080 --> 00:41:20,440
Speaker 1: specific and where he sees issues. He says Germany, for example,

755
00:41:20,560 --> 00:41:24,840
Speaker 1: is an extreme trouble after outsourcing their energy supply to Russia,

756
00:41:25,080 --> 00:41:28,600
Speaker 1: their end market to China, their military to the United States.

757
00:41:28,960 --> 00:41:31,799
Speaker 1: He also talks about other nations across the world, uses

758
00:41:31,800 --> 00:41:34,239
Speaker 1: Sri Lanka as an example. He says, where you're nine

759
00:41:34,320 --> 00:41:37,680
Speaker 1: meals away from having a very unhappy citizenship willing to

760
00:41:37,760 --> 00:41:41,640
Speaker 1: take extraordinary action to keep their families safe. He really

761
00:41:41,719 --> 00:41:44,040
Speaker 1: talks about this in the light of food and energy

762
00:41:44,120 --> 00:41:46,800
Speaker 1: costs around the world, and he says that there's a

763
00:41:46,880 --> 00:41:51,680
Speaker 1: possibility that this leads to revolution and populations that don't

764
00:41:51,800 --> 00:41:54,879
Speaker 1: have control over food and energy. And you know, he says,

765
00:41:54,920 --> 00:41:57,440
Speaker 1: the US is in good shape. We have food resources,

766
00:41:57,520 --> 00:42:00,680
Speaker 1: we have energy resources. But what happens if oil and

767
00:42:00,800 --> 00:42:03,560
Speaker 1: gas gets to two hundred dollars a barrel and food

768
00:42:03,600 --> 00:42:07,080
Speaker 1: supply gets disintermediated. He says that could have catastrophic impacts,

769
00:42:07,680 --> 00:42:09,680
Speaker 1: not just in different countries around the world, but in

770
00:42:09,760 --> 00:42:13,440
Speaker 1: the relationship between the US and other countries UH and

771
00:42:13,560 --> 00:42:16,839
Speaker 1: vice versa. Well, really fascinating and really important to get

772
00:42:17,000 --> 00:42:21,040
Speaker 1: these vague ideas brought together with these three very important

773
00:42:21,120 --> 00:42:24,160
Speaker 1: voices on Wall Street, Bloomberg Shinali Bassk with the Big

774
00:42:24,320 --> 00:42:28,000
Speaker 1: Take this morning, a Goldman legend, crypto star, and top

775
00:42:28,080 --> 00:42:31,480
Speaker 1: banker Warren of the next Big Risk. You can read

776
00:42:31,520 --> 00:42:34,400
Speaker 1: it on NI Big Take Go on the Bloomberg Terminal

777
00:42:34,640 --> 00:42:38,720
Speaker 1: and Bloomberg dot com slash Big Take. Shenally, thanks again

778
00:42:39,080 --> 00:42:42,000
Speaker 1: for bringing this to US. SFP futures right now up

779
00:42:42,040 --> 00:42:44,359
Speaker 1: thirty six points down futures of two hundred fifty four.

780
00:42:44,440 --> 00:42:48,040
Speaker 1: NASTAC futures are higher by one forty points. This is

781
00:42:48,080 --> 00:42:48,600
Speaker 1: Bloomberg