1 00:00:02,600 --> 00:00:05,880 Speaker 1: My from the Bloomberg interactor Berger Studios. This is Bloomberg 2 00:00:05,920 --> 00:00:09,240 Speaker 1: Day Right for Friday, July twenty nine two. Coming up 3 00:00:09,280 --> 00:00:13,119 Speaker 1: the shower, Nasdaq Future's rally thanks to earnings from Amazon 4 00:00:13,240 --> 00:00:16,599 Speaker 1: and Dapple, Intel and Roku shares sell off on disappointing 5 00:00:16,720 --> 00:00:19,760 Speaker 1: quarterly results. Big Oil in the spotlight this morning with 6 00:00:19,840 --> 00:00:22,840 Speaker 1: Exxon and Chevron reporting, and Janet Yellen says the U 7 00:00:22,920 --> 00:00:25,800 Speaker 1: s economy is slowing, but not in a recession. A 8 00:00:25,920 --> 00:00:28,840 Speaker 1: former New York State Supreme Court justice has been sentenced 9 00:00:28,880 --> 00:00:31,920 Speaker 1: for taking bribes. Plus flooding in eastern Kentucky has left 10 00:00:31,960 --> 00:00:34,760 Speaker 1: at least eight people dead. I'm Mike Lablar. More ahead, 11 00:00:34,960 --> 00:00:37,720 Speaker 1: I'm Don Stash, Aaron Sports, Aaron Judge strikes again a 12 00:00:37,920 --> 00:00:39,680 Speaker 1: home run bottom of the ninth inning, and give me 13 00:00:39,720 --> 00:00:43,320 Speaker 1: the Yankees a one up in wine for Kansas City. 14 00:00:44,479 --> 00:00:48,680 Speaker 1: That's all straining Ahead on Bloomberg Daybreak on Bloomberg eleven three, 15 00:00:48,680 --> 00:00:53,159 Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one 16 00:00:53,159 --> 00:00:57,639 Speaker 1: oh six one, Boston, Bloomberg nine sixties and Francisco Sirius 17 00:00:57,800 --> 00:01:00,880 Speaker 1: XAM one nine team, and around the world on Bloomberg 18 00:01:00,960 --> 00:01:07,480 Speaker 1: Radio dot Com and via the Bloomberg Business app and 19 00:01:07,680 --> 00:01:11,039 Speaker 1: good Friday morning. I'm Nathan Hagar and I'm Karen Moscow 20 00:01:11,080 --> 00:01:14,000 Speaker 1: and US Dock Index futures are higher this morning. We 21 00:01:14,040 --> 00:01:15,920 Speaker 1: are coming up to five oh one on Wall Street, 22 00:01:15,920 --> 00:01:18,040 Speaker 1: and we checked the markets every fifteen minutes throughout the 23 00:01:18,080 --> 00:01:21,440 Speaker 1: trading day. On Bloomberg SNP, Future is up twenty five 24 00:01:21,440 --> 00:01:24,680 Speaker 1: points now, Future is up sixty five. Nasday futures up 25 00:01:24,760 --> 00:01:27,520 Speaker 1: one d thirty. The tacks in Germany's up seven tenths 26 00:01:27,560 --> 00:01:30,560 Speaker 1: of upper cent ten. Your treasury down eight thirty seconds, 27 00:01:30,560 --> 00:01:33,399 Speaker 1: held two point seven zero percent, and they yield on 28 00:01:33,440 --> 00:01:36,720 Speaker 1: the two year two point eight six percent. Nathan, Well, Karen. 29 00:01:36,760 --> 00:01:39,240 Speaker 1: The lift we're seeing in NASAC futures this morning follows 30 00:01:39,280 --> 00:01:43,200 Speaker 1: earnings from two tech giants. Let's begin with Amazon. Those 31 00:01:43,240 --> 00:01:46,640 Speaker 1: shares are surging nearly twelve percent this morning after the 32 00:01:46,640 --> 00:01:49,640 Speaker 1: company reported revenue the topped estimates and gave a strong 33 00:01:49,680 --> 00:01:53,279 Speaker 1: sales forecast for the current quarter. Bloomberg Intelligence Senior retail 34 00:01:53,320 --> 00:01:56,120 Speaker 1: analyst Punum Goyle says, it's quite a different story than 35 00:01:56,160 --> 00:01:59,880 Speaker 1: another high profile retailer we were not worried about we 36 00:02:00,040 --> 00:02:04,200 Speaker 1: saw earlier this week with walpart taking down guidance as 37 00:02:04,480 --> 00:02:07,360 Speaker 1: we had thought that Amazon has a different customer based. 38 00:02:07,440 --> 00:02:11,000 Speaker 1: Amazon doesn't target the low income consumer, so we didn't 39 00:02:11,040 --> 00:02:14,560 Speaker 1: think Walmart's rose would bleed into Amazon, and that's exactly 40 00:02:14,600 --> 00:02:18,200 Speaker 1: what we saw today. Bloomberg Intelligence antalist Poonhoumoyle says Amazon 41 00:02:18,240 --> 00:02:20,840 Speaker 1: added full and part time jobs at the slowest pace 42 00:02:20,840 --> 00:02:24,560 Speaker 1: since in an effort to cut costs. Well. Apples yairs 43 00:02:24,560 --> 00:02:27,160 Speaker 1: are also higher, Nathan. They're up almost two and a 44 00:02:27,160 --> 00:02:31,040 Speaker 1: half percent. The company's revenue and profit narrowly top to estimates, 45 00:02:31,040 --> 00:02:34,480 Speaker 1: with iPhone sales holding up better than expected. Tom Giles 46 00:02:34,560 --> 00:02:38,560 Speaker 1: is an executive technology editor for Bloomberg News. The market 47 00:02:38,600 --> 00:02:42,920 Speaker 1: took away that Apple so far is weathering the downturn 48 00:02:43,080 --> 00:02:47,480 Speaker 1: relatively well. Um and they even though they missed on 49 00:02:47,520 --> 00:02:51,079 Speaker 1: a couple of their different products, they did uh surpassed 50 00:02:51,280 --> 00:02:55,440 Speaker 1: Wall Streets projections on the iPhone, which is their biggest product, 51 00:02:55,840 --> 00:02:59,720 Speaker 1: all important product. Bloomberg's Tom Giles says the iPad also 52 00:03:00,000 --> 00:03:03,320 Speaker 1: are in better than feared, though other products, including Max 53 00:03:03,320 --> 00:03:06,799 Speaker 1: and wearables fell shorter. Projections will have more on Apple 54 00:03:06,919 --> 00:03:10,200 Speaker 1: and Amazon coming up surely. When we speak with Gene Munster, 55 00:03:10,360 --> 00:03:13,000 Speaker 1: the co founder of Loop Ventures on the flip side, 56 00:03:13,000 --> 00:03:15,520 Speaker 1: of the tech story Karen. Shares of Intel are down 57 00:03:15,600 --> 00:03:18,520 Speaker 1: more than nine percent in early trading. The chip makers 58 00:03:18,560 --> 00:03:21,960 Speaker 1: profit in sales missed estimates, and it's also slashing forecasts. 59 00:03:22,040 --> 00:03:25,280 Speaker 1: Let's get more from Bloomberg's Charlie Pellett. The world's biggest 60 00:03:25,320 --> 00:03:28,760 Speaker 1: maker of computer processors was weighed down by a steep 61 00:03:28,840 --> 00:03:32,360 Speaker 1: drop in demand for data center chips and a steep 62 00:03:32,360 --> 00:03:36,600 Speaker 1: decline in PC shipments after two years of growth. Spending 63 00:03:36,600 --> 00:03:41,160 Speaker 1: on laptop and desktop machines is declining quickly as rising 64 00:03:41,200 --> 00:03:45,200 Speaker 1: inflation is leading consumers to shy away from large purchases. 65 00:03:45,600 --> 00:03:49,080 Speaker 1: The market for chips that power PCs is still Intel's 66 00:03:49,080 --> 00:03:52,080 Speaker 1: biggest source of revenue and the cash needed to fund 67 00:03:52,120 --> 00:03:55,760 Speaker 1: an ambitious attempt by CEO Pat Gelsinger to restore the 68 00:03:55,800 --> 00:04:00,760 Speaker 1: company to semiconductor industry leadership in New York. Charlie Pellett, 69 00:04:00,760 --> 00:04:03,120 Speaker 1: Bloomberg day Break. All right, Churley, thank you. We have 70 00:04:03,160 --> 00:04:07,000 Speaker 1: another stock getting hammered this morning. Roku shares are plunging. 71 00:04:08,240 --> 00:04:11,720 Speaker 1: The maker of streaming TV device is reported disappointing second 72 00:04:11,760 --> 00:04:15,520 Speaker 1: quarter results. Roku said advertisers are pulling back on spending 73 00:04:15,600 --> 00:04:18,920 Speaker 1: due to economic concerns. Now the earnings continue today, Karen 74 00:04:18,960 --> 00:04:22,240 Speaker 1: with big Oil in the spotlight. Bloomberg's Jeff Balinger reports 75 00:04:22,400 --> 00:04:25,279 Speaker 1: x on Mobile and Chevron post quarterly results this morning. 76 00:04:25,720 --> 00:04:27,800 Speaker 1: There could be a lot to like when x on 77 00:04:27,880 --> 00:04:31,880 Speaker 1: Mobile reports, Bloomberg Intelligence says the company likely saw a 78 00:04:31,880 --> 00:04:35,640 Speaker 1: substantial increase in net earnings from its refining unit. If 79 00:04:35,680 --> 00:04:38,520 Speaker 1: that drove a major improvement and free cash flow, it 80 00:04:38,600 --> 00:04:42,680 Speaker 1: could being faster share by backs. Refining improvements at Chevron 81 00:04:42,800 --> 00:04:46,040 Speaker 1: likely lagged behind x on Mobile. The I says the 82 00:04:46,080 --> 00:04:49,479 Speaker 1: company's balance sheet maybe in a net cash position before 83 00:04:49,520 --> 00:04:51,839 Speaker 1: the end of the year if it continues to hold 84 00:04:51,880 --> 00:04:56,640 Speaker 1: back on share repurchases. Jeff Bellinger, Bloomberg Day Break. All right, Jeff, 85 00:04:56,640 --> 00:04:58,680 Speaker 1: thank you for turning to the economy. Now there's a 86 00:04:58,760 --> 00:05:01,160 Speaker 1: key report coming up of where we wrap up the week. 87 00:05:01,200 --> 00:05:04,560 Speaker 1: The University of Michigan issues it's a national Consumer Sentiment 88 00:05:04,640 --> 00:05:07,200 Speaker 1: Index for July at ten am Wall Street Time, and 89 00:05:07,240 --> 00:05:11,479 Speaker 1: Bloomberg's Vineydale Judais reports the Prairie report covering early July 90 00:05:11,640 --> 00:05:15,760 Speaker 1: showed long term inflation expectations declined at that time. At 91 00:05:15,839 --> 00:05:19,440 Speaker 1: least a consumer surveyed anticipated prices would rise at an 92 00:05:19,480 --> 00:05:22,120 Speaker 1: annual rate at two point eight percent over the next 93 00:05:22,160 --> 00:05:26,560 Speaker 1: five to ten years. Today we're pushing nine percent inflation. Overall. 94 00:05:26,600 --> 00:05:30,359 Speaker 1: Consumer sentiment is suffering, with the University of Michigan index 95 00:05:30,520 --> 00:05:34,119 Speaker 1: at historic close, and he dealt Bloomberg day Break, all right, Vinnie, 96 00:05:34,160 --> 00:05:36,320 Speaker 1: thank you in That sentiment report comes a day after 97 00:05:36,360 --> 00:05:39,320 Speaker 1: the latest GDP data fired up the debate over whether 98 00:05:39,360 --> 00:05:42,800 Speaker 1: the US has slipped into a recession. One top official 99 00:05:42,880 --> 00:05:46,279 Speaker 1: says no. Let's get the latest line from Bloomberg's rended 100 00:05:46,360 --> 00:05:49,320 Speaker 1: a Young, Good morning, Rena, Good morning, Nathan. Treasury Secretary 101 00:05:49,440 --> 00:05:52,479 Speaker 1: Janet Yellen is rejecting the notion that the US has 102 00:05:52,600 --> 00:05:56,520 Speaker 1: entered a recession. She points to continued job creation gains 103 00:05:56,520 --> 00:06:00,960 Speaker 1: and consumer spending, strong household finances, in growth in business, 104 00:06:01,120 --> 00:06:05,320 Speaker 1: although she acknowledges a slowdown is needed to tame inflation. 105 00:06:05,760 --> 00:06:08,760 Speaker 1: We knew there are challenges ahead of US. Growth is 106 00:06:08,800 --> 00:06:15,360 Speaker 1: slowing globally, Inflation remains unacceptably high, and its disadministration's top 107 00:06:15,440 --> 00:06:19,840 Speaker 1: priority to bring it down. Treasury Secretary Janet Yellen says 108 00:06:19,880 --> 00:06:24,040 Speaker 1: she remains optimistic about the country's ability to fight inflation. 109 00:06:24,600 --> 00:06:27,320 Speaker 1: Live in New York, I'm gonnait to Young Bloomberg Daybreak. 110 00:06:27,480 --> 00:06:29,080 Speaker 1: We need to thank you. We also have news on 111 00:06:29,120 --> 00:06:32,120 Speaker 1: the geo political front this morning. President Biden and GJM. 112 00:06:32,200 --> 00:06:35,160 Speaker 1: Ping have now agreed to set up an in person meeting, 113 00:06:35,240 --> 00:06:38,159 Speaker 1: and Bloomberg said Baxter has the details. This could be 114 00:06:38,200 --> 00:06:41,559 Speaker 1: interpreted as a positive sign the dialogue could remain open, 115 00:06:41,680 --> 00:06:45,440 Speaker 1: but tensions remain high, with words like constructive left out 116 00:06:45,440 --> 00:06:48,720 Speaker 1: of the readouts. White House Folks Women Karen Jean Pierre 117 00:06:48,800 --> 00:06:52,640 Speaker 1: says Taiwan was a major issue. President Biden underscored that 118 00:06:52,680 --> 00:06:55,919 Speaker 1: the United States policy has not changed and that the 119 00:06:56,000 --> 00:07:01,360 Speaker 1: United States strongly opposes unilateral efforts to change the status. 120 00:07:01,400 --> 00:07:03,800 Speaker 1: Also mentioned of the read outs efforts to fight climate 121 00:07:03,880 --> 00:07:07,760 Speaker 1: change and protect the global macro economy. In San Francisco, 122 00:07:07,839 --> 00:07:11,280 Speaker 1: I'm at Baxter, Bloomberg, Gay break, Okay, thanks, SMP futures 123 00:07:11,320 --> 00:07:13,640 Speaker 1: up twenty four points, right now down, Futures up sixty, 124 00:07:13,720 --> 00:07:17,080 Speaker 1: Nasdaq futures up. Add twenty five local headlines and the 125 00:07:17,160 --> 00:07:23,560 Speaker 1: check of sports up next. This is Bloomberg, and it's 126 00:07:23,560 --> 00:07:25,600 Speaker 1: five oh seven on Wall Street, where it's seventy six 127 00:07:25,640 --> 00:07:27,800 Speaker 1: degrees in Central Park, dealing with an accident on the 128 00:07:27,880 --> 00:07:31,360 Speaker 1: westbound l I E Exit thirty seven Willis Avenue, more 129 00:07:31,360 --> 00:07:33,760 Speaker 1: coming up in traffic. First, Michael Bars here with what 130 00:07:33,800 --> 00:07:36,240 Speaker 1: else is going on in New York and around the world. 131 00:07:36,320 --> 00:07:39,560 Speaker 1: Happy Friday, Michael, Happy Friday to you. Nathan, a former 132 00:07:39,720 --> 00:07:42,840 Speaker 1: New York State Supreme Court justice, was sentenced to a 133 00:07:43,000 --> 00:07:46,920 Speaker 1: year and four months in jail. Attorney General Letitia James 134 00:07:46,960 --> 00:07:52,080 Speaker 1: says former Judge John Michelich accepted bribes and from a 135 00:07:52,120 --> 00:07:57,000 Speaker 1: Democratic Party political operative. James says mcconnic took bribes from 136 00:07:57,000 --> 00:08:01,560 Speaker 1: former Erie County Democratic Committee Chairman G. Stephen Pigeon in 137 00:08:01,720 --> 00:08:05,960 Speaker 1: exchange for a political, judicial and personal favors. In Kentucky, 138 00:08:06,000 --> 00:08:07,880 Speaker 1: at least eight people are dead after more than ten 139 00:08:07,960 --> 00:08:12,160 Speaker 1: inches of rain in twenty four hours. It submerged homes, 140 00:08:12,280 --> 00:08:16,600 Speaker 1: washed away roads, and triggered mudslides. Governor Andy Basher has 141 00:08:16,600 --> 00:08:19,840 Speaker 1: declared a state of emergency. The state police are fully active, 142 00:08:20,080 --> 00:08:23,400 Speaker 1: have an extra helicopter that can be used in rescues. 143 00:08:23,440 --> 00:08:27,840 Speaker 1: The Transportation Cabinet is actively working preparing for debris removal. 144 00:08:28,440 --> 00:08:32,920 Speaker 1: Fish and wildlife is out with votes, working to make 145 00:08:32,960 --> 00:08:38,240 Speaker 1: water rescues were safe for their personnel. Forestry is ready 146 00:08:38,840 --> 00:08:42,920 Speaker 1: for any clean up. This is an all hands on deck. 147 00:08:43,320 --> 00:08:47,560 Speaker 1: Governor Basher says about twenty people are without power. Former 148 00:08:47,600 --> 00:08:51,200 Speaker 1: President Donald Trump says the Saladi funded live golf circuit 149 00:08:51,240 --> 00:08:55,000 Speaker 1: has created a gold rush for players. Trump played around 150 00:08:55,080 --> 00:08:58,959 Speaker 1: yesterday on his home course at Trump National Deadminister. This 151 00:08:59,040 --> 00:09:02,800 Speaker 1: one was the Live Golf Invitational pro am. The former 152 00:09:02,840 --> 00:09:05,680 Speaker 1: president says what the Sundi BAC League is doing is 153 00:09:05,760 --> 00:09:09,360 Speaker 1: good for golf because it gives players an alternative. Trump 154 00:09:09,400 --> 00:09:12,120 Speaker 1: also says nobody has gotten to the bottom of nine eleven. 155 00:09:12,880 --> 00:09:17,160 Speaker 1: Three hostile foreign actors breached the federal courts document management 156 00:09:17,160 --> 00:09:22,400 Speaker 1: system via an incredibly significant and sophisticated cyber attack more 157 00:09:22,440 --> 00:09:25,880 Speaker 1: than eighteen months ago. The Chairman of the House Judiciary Committee, 158 00:09:25,960 --> 00:09:29,160 Speaker 1: Gerald Nadler, said that the hack had a disturbing impact 159 00:09:29,240 --> 00:09:32,880 Speaker 1: on both pending civil and criminal litigation in national security. 160 00:09:33,160 --> 00:09:36,840 Speaker 1: The Mega Millions lottery drawing tonight, the Jackpott one point 161 00:09:36,880 --> 00:09:39,640 Speaker 1: one billion dollars. What would you do with all that money? 162 00:09:40,160 --> 00:09:46,640 Speaker 1: Has some bills, definitely bills number one priority for me, 163 00:09:46,840 --> 00:09:51,120 Speaker 1: Knox on bills, damn U and I have to get 164 00:09:51,200 --> 00:09:54,960 Speaker 1: uh see what I got there? It's the third largest 165 00:09:54,960 --> 00:09:57,199 Speaker 1: prize in you has a lot of rehistory. Global News 166 00:09:57,200 --> 00:09:59,360 Speaker 1: twenty four hours a day on air and on Bloomberg 167 00:09:59,440 --> 00:10:02,440 Speaker 1: Quick Take or by more than seven hundred journalists analysts 168 00:10:02,600 --> 00:10:04,560 Speaker 1: more than a hundred twenty countries. That Michael Barr, this 169 00:10:04,600 --> 00:10:11,760 Speaker 1: is Bloomberg ni alright, Michael, thank you. Coming up to 170 00:10:11,800 --> 00:10:14,160 Speaker 1: five ten on Wall Street time for the Bloomberg Sports Update. 171 00:10:14,200 --> 00:10:16,280 Speaker 1: Good morning, John Stans, all right, Good morning Nathan. The 172 00:10:16,360 --> 00:10:19,679 Speaker 1: Yankees sixty seventh win of the year. There twelve walk 173 00:10:19,760 --> 00:10:22,560 Speaker 1: off win and three of those twelve games have ended 174 00:10:22,760 --> 00:10:25,720 Speaker 1: just like this one in the picture hit of the 175 00:10:25,720 --> 00:10:29,480 Speaker 1: air to deep cleft center. It is high hell fuck 176 00:10:32,360 --> 00:10:36,520 Speaker 1: walk off home run to win the game a judge 177 00:10:36,760 --> 00:10:41,480 Speaker 1: and glad oh wow, bottom by the ninth home run 178 00:10:42,160 --> 00:10:45,840 Speaker 1: my judge to win the ball game one nothing Chris 179 00:10:45,960 --> 00:10:48,760 Speaker 1: john Sterling w f A and great pictures dual Kansas 180 00:10:48,800 --> 00:10:51,440 Speaker 1: City's Brady Singer and when seven and is allowed only 181 00:10:51,440 --> 00:10:54,440 Speaker 1: one hit, struck outs and the Yanks Jamison, tyn Ron 182 00:10:54,480 --> 00:10:57,120 Speaker 1: Marionachio Clay Homes together they gave up only four hits 183 00:10:57,160 --> 00:11:00,920 Speaker 1: with no womps, twelve strikeout, so scoreless until the Aaron 184 00:11:01,000 --> 00:11:03,720 Speaker 1: Judge blast four hundred and thirty one feet off Scott 185 00:11:03,800 --> 00:11:06,839 Speaker 1: Barlow judges thirty ninth home run. He had never had 186 00:11:06,840 --> 00:11:09,840 Speaker 1: a walkoff homer before this season. He's now had three 187 00:11:09,880 --> 00:11:12,040 Speaker 1: in the last two and a half months. Andrew Bennettendi 188 00:11:12,120 --> 00:11:14,640 Speaker 1: made his Yankee debut, faced the team that just traded him. 189 00:11:14,840 --> 00:11:17,760 Speaker 1: He batted leadoff one over four. The series continues tonight. 190 00:11:17,840 --> 00:11:20,640 Speaker 1: Mets Tonight visit the Marlins. The Mets sent to minor 191 00:11:20,720 --> 00:11:23,640 Speaker 1: leaguers the Cincinnati for outfielder Tyler and Naquin, who was 192 00:11:23,679 --> 00:11:26,440 Speaker 1: hitting two forty six for the Reds. The Rangers drafted 193 00:11:26,480 --> 00:11:28,880 Speaker 1: Capocaca's second over all few years ago. They have given 194 00:11:28,920 --> 00:11:31,000 Speaker 1: the twenty one year old the two year contract extension. 195 00:11:31,320 --> 00:11:34,240 Speaker 1: The Jets signed linebacker Kwan Alexander had been with New 196 00:11:34,360 --> 00:11:36,559 Speaker 1: Orleans before that the forty Niners, where he was coached 197 00:11:36,559 --> 00:11:40,199 Speaker 1: by Jets coach Robert Sala White. Out DK Metcalf has 198 00:11:40,200 --> 00:11:42,920 Speaker 1: a new contract with Seattle three years, seventy two million. 199 00:11:43,400 --> 00:11:46,680 Speaker 1: Dallas Cowboys signed kick returner Cavante Turpin. He was the 200 00:11:46,840 --> 00:11:49,760 Speaker 1: USFL m v P playing for the New Jersey Generals. 201 00:11:49,960 --> 00:11:53,120 Speaker 1: John Stashantler Bloomberg sports name all right, John, Thanks SMP 202 00:11:53,240 --> 00:11:55,360 Speaker 1: future is now twenty four point staff futures up a 203 00:11:55,400 --> 00:11:59,480 Speaker 1: hundred sorry up points futures up a hundred twenty six. 204 00:12:00,080 --> 00:12:07,840 Speaker 1: You're listening to Bloomberg Daybreak. Good morning, Bloomberg eleven three 205 00:12:07,840 --> 00:12:10,320 Speaker 1: o oather chance for an afternoon shower thunderstorm today otherwise 206 00:12:10,360 --> 00:12:13,439 Speaker 1: partly sunny, upper eighties, mix of sun and clouds through 207 00:12:13,440 --> 00:12:17,160 Speaker 1: the weekend. Highs tomorrow and Sunday around eighty five to 208 00:12:17,280 --> 00:12:23,680 Speaker 1: ninety right now seventy six degrees. Markets, headlines and breaking 209 00:12:23,679 --> 00:12:26,560 Speaker 1: news twenty four hours a day at Bloomberg dot com, 210 00:12:26,720 --> 00:12:30,240 Speaker 1: The Bloomberg Business at and at Bloomberg Quick Tape is 211 00:12:30,240 --> 00:12:39,120 Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow. Stocks in 212 00:12:39,160 --> 00:12:41,199 Speaker 1: Europe in the US are set for their biggest monthly 213 00:12:41,200 --> 00:12:45,400 Speaker 1: advanced in November twenty on positive earnings. Nasday futures are 214 00:12:45,480 --> 00:12:47,920 Speaker 1: high or after hitting a seven week high yesterday and 215 00:12:47,960 --> 00:12:50,760 Speaker 1: after Amazon and Apple earnings. We checked the markets every 216 00:12:50,760 --> 00:12:53,400 Speaker 1: fifteen minutes throughout the trading day on Bloomberg s and 217 00:12:53,440 --> 00:12:55,640 Speaker 1: P Future is up twenty five points this morning, Down 218 00:12:55,640 --> 00:12:59,959 Speaker 1: futures up fifty four and nasdack futures up seven. That's 219 00:13:00,040 --> 00:13:02,920 Speaker 1: up about one point one percent. The docks in Germany 220 00:13:03,000 --> 00:13:05,520 Speaker 1: is up eight tenths of upper sent ten. Your treasury 221 00:13:05,559 --> 00:13:08,319 Speaker 1: down seconds ye on two point seven one percent. That 222 00:13:08,400 --> 00:13:11,040 Speaker 1: yield on the two year two point eight seven and 223 00:13:11,160 --> 00:13:13,040 Speaker 1: I'm ex screwded oil is up two and a quarter 224 00:13:13,080 --> 00:13:15,760 Speaker 1: percent of two dollars fifteen cents at ninety eight dollars 225 00:13:15,760 --> 00:13:18,760 Speaker 1: fifty eight cents of barrel. That's a Bloomberg business flash. 226 00:13:18,800 --> 00:13:20,840 Speaker 1: Now here's Michael Barrow with more on less going on 227 00:13:20,960 --> 00:13:23,960 Speaker 1: around the world. Michael, good morning, Good morning, Karen. President 228 00:13:23,960 --> 00:13:27,520 Speaker 1: shi Jing Ping warned against meddling in China's dealings with 229 00:13:27,720 --> 00:13:31,680 Speaker 1: Taiwan during a phone call with his US counterpart, Joe Biden. 230 00:13:32,040 --> 00:13:35,640 Speaker 1: It comes among Beijing's opposition to House Speaker Nancy Gelosi's 231 00:13:35,679 --> 00:13:39,240 Speaker 1: possible visit to Taiwan that China claims as its own. 232 00:13:39,720 --> 00:13:42,679 Speaker 1: Flooding in eastern Kentucky has left at least eight people dead. 233 00:13:42,800 --> 00:13:46,080 Speaker 1: Governor Andy Basher has declared a state of emergency. In baseball, 234 00:13:46,120 --> 00:13:49,160 Speaker 1: the Yankees beat the Royals one zip, the Red Sox 235 00:13:49,200 --> 00:13:52,880 Speaker 1: beat the Guardians, the Oriole shut out the Rays, and 236 00:13:53,000 --> 00:13:56,240 Speaker 1: the Giants beat the Cubs. Global News twenty four hours 237 00:13:56,240 --> 00:13:58,760 Speaker 1: a day on air and on Bloomberg Quicktake, powered by 238 00:13:58,840 --> 00:14:02,679 Speaker 1: more than journalist and analysts in more than one twenty 239 00:14:02,760 --> 00:14:05,840 Speaker 1: countries now Michael Barr and this is Bloomberg. Alright, Michael, 240 00:14:05,840 --> 00:14:08,200 Speaker 1: It's five nineteen on Wall Street Live from the Bloomberg 241 00:14:08,200 --> 00:14:11,560 Speaker 1: Interactive Broker Studios. This is Bloomberg Daybreak. Let's turn our 242 00:14:11,600 --> 00:14:15,120 Speaker 1: focus back to tech earnings. Amazon and Apple are both 243 00:14:15,160 --> 00:14:18,200 Speaker 1: set to add almost two thirty billion dollars in market 244 00:14:18,280 --> 00:14:23,160 Speaker 1: value after joining their peers Alphabet and Microsoft and easing 245 00:14:23,200 --> 00:14:26,800 Speaker 1: investor concerns by reporting higher revenue even in the face 246 00:14:26,840 --> 00:14:29,680 Speaker 1: of higher inflation. Let's get more on these results now. 247 00:14:29,760 --> 00:14:33,440 Speaker 1: Gene Munster joins US live, co founder of Loop Ventures. Gene, 248 00:14:33,480 --> 00:14:36,160 Speaker 1: great to speak with you. I want to start with Amazon, 249 00:14:36,720 --> 00:14:39,040 Speaker 1: just because the shares are surging so much this morning, 250 00:14:39,080 --> 00:14:42,800 Speaker 1: nearly twelve in the pre market, cranking out the revenue 251 00:14:43,320 --> 00:14:46,560 Speaker 1: even with inflation and cost cuts. Do you think that 252 00:14:46,600 --> 00:14:51,040 Speaker 1: can continue in this environment? Well, I think it can, 253 00:14:51,080 --> 00:14:54,440 Speaker 1: and I think it's going to continue because just stepping 254 00:14:54,480 --> 00:14:57,040 Speaker 1: back and looking at the big picture here is that 255 00:14:57,360 --> 00:15:01,280 Speaker 1: Bell Weather companies are missing traditional old school bell Weather 256 00:15:01,320 --> 00:15:04,800 Speaker 1: companies and some tech companies are missing. But the tech 257 00:15:04,960 --> 00:15:07,880 Speaker 1: giants are doing better. And the reasons that there are 258 00:15:08,000 --> 00:15:10,840 Speaker 1: some tail ones that power through even what's going on 259 00:15:10,920 --> 00:15:13,160 Speaker 1: with the macro and I just want to put some 260 00:15:13,200 --> 00:15:16,000 Speaker 1: context into Amazon. What's going on with their revenue growth. 261 00:15:16,040 --> 00:15:18,680 Speaker 1: It was seven percent in the June quarter. If you 262 00:15:18,840 --> 00:15:21,000 Speaker 1: assume they hit the high end of their guidance, which 263 00:15:21,040 --> 00:15:23,400 Speaker 1: is probably or the midpoint of their guidance, UH, they'll 264 00:15:23,400 --> 00:15:27,280 Speaker 1: be seventeen percent. So a nice acceleration. And to answer 265 00:15:27,280 --> 00:15:32,280 Speaker 1: your question, can this continue? The answer is it can continue. 266 00:15:32,520 --> 00:15:35,480 Speaker 1: That these big tech companies will do better on a 267 00:15:35,520 --> 00:15:39,480 Speaker 1: relative basis than there appears. Not to say that all 268 00:15:39,520 --> 00:15:42,040 Speaker 1: companies are going to be immune. It's hard to predict 269 00:15:42,040 --> 00:15:44,360 Speaker 1: what the depth and the length of the recession is 270 00:15:44,400 --> 00:15:47,040 Speaker 1: going to be. So, and I want to answer the 271 00:15:47,080 --> 00:15:50,760 Speaker 1: substance of your question is why can it continue? And 272 00:15:50,800 --> 00:15:55,280 Speaker 1: the answer is that, surprisingly, we're still early in e commerce. 273 00:15:55,440 --> 00:15:58,640 Speaker 1: If you look at the most aggressive estimates are that 274 00:15:59,640 --> 00:16:02,520 Speaker 1: of what's bought in the US has bought online globally, 275 00:16:03,840 --> 00:16:07,160 Speaker 1: and that eventually is probably gonna be fifty or sixty percent. 276 00:16:07,760 --> 00:16:10,120 Speaker 1: And when you have a company like Amazon that's building 277 00:16:10,200 --> 00:16:14,040 Speaker 1: infrastructure that really no one can compete with. Those types 278 00:16:14,080 --> 00:16:17,320 Speaker 1: of factors are why this growth rate can continue. Simply 279 00:16:17,760 --> 00:16:21,280 Speaker 1: they're gaining share in the market where consumers are getting 280 00:16:21,320 --> 00:16:24,800 Speaker 1: more UH, frugal, just getting into the weeds a bit. 281 00:16:24,880 --> 00:16:26,800 Speaker 1: Is Amazon going to be able to do it by 282 00:16:26,920 --> 00:16:28,680 Speaker 1: raising prices or is it gonna have to do it 283 00:16:28,720 --> 00:16:31,440 Speaker 1: through cutting costs a combination, or is it going to 284 00:16:31,520 --> 00:16:34,120 Speaker 1: have to lean more on the cloud as opposed to 285 00:16:34,160 --> 00:16:38,360 Speaker 1: the e commerce side of its business. It's cutting costs 286 00:16:38,400 --> 00:16:42,280 Speaker 1: and Jesse said that they're making progress on containing costs 287 00:16:42,320 --> 00:16:46,960 Speaker 1: that they reference last quarter, particularly improving productivity of their 288 00:16:46,960 --> 00:16:50,640 Speaker 1: fulfillment network. And that's the big takeaway here is that 289 00:16:50,720 --> 00:16:53,360 Speaker 1: they have a network that really no one can compete with. 290 00:16:53,400 --> 00:16:56,120 Speaker 1: These are the trucks. These are the fulfillment centers. They 291 00:16:56,240 --> 00:16:59,920 Speaker 1: over built them in the June quarter, in the March quarter, 292 00:17:00,600 --> 00:17:02,640 Speaker 1: in December of last year, and now they're starting to 293 00:17:02,680 --> 00:17:05,400 Speaker 1: reap some of those benefits. So that's how it can 294 00:17:05,440 --> 00:17:09,320 Speaker 1: continue on the profitability side. I want to turn to 295 00:17:09,320 --> 00:17:12,400 Speaker 1: an Apple now, and I love the headline on your 296 00:17:12,440 --> 00:17:15,680 Speaker 1: note out this morning on Apple's earnings. iPhone is stronger 297 00:17:15,680 --> 00:17:19,959 Speaker 1: than an acre of garlic. What do you mean by that? Um, 298 00:17:20,000 --> 00:17:23,720 Speaker 1: it's an old Texas term. It's there's a colleague of 299 00:17:23,760 --> 00:17:26,320 Speaker 1: mine that's used it for years, and I never fully 300 00:17:26,359 --> 00:17:30,679 Speaker 1: appreciate it being born and raised in the in the Midwest, 301 00:17:30,720 --> 00:17:34,639 Speaker 1: but it basically is an iconic. Any anything that can 302 00:17:34,680 --> 00:17:37,600 Speaker 1: really blow you away is stronger than an acre of garlic, 303 00:17:37,680 --> 00:17:39,920 Speaker 1: and that is the case with the iPhone. Just quickly 304 00:17:40,200 --> 00:17:43,040 Speaker 1: put some perspective on it, is that the segment grew 305 00:17:43,160 --> 00:17:45,960 Speaker 1: three percent year over year, and this is about half 306 00:17:45,960 --> 00:17:49,160 Speaker 1: of their business, which doesn't sound very impressive, but when 307 00:17:49,200 --> 00:17:51,480 Speaker 1: you put in the context that it was up against 308 00:17:51,560 --> 00:17:56,240 Speaker 1: a monster fifty percent comp a year ago, uh, it 309 00:17:56,320 --> 00:17:59,040 Speaker 1: was quite impressive. It was surprising that it grew at all. 310 00:17:59,520 --> 00:18:01,439 Speaker 1: And the on that that jumped out to me from 311 00:18:01,480 --> 00:18:04,960 Speaker 1: the earnings call was Cook's assessment that in respect to 312 00:18:04,960 --> 00:18:08,280 Speaker 1: the iPhone, that there was no obvious evidence of macro 313 00:18:08,560 --> 00:18:12,040 Speaker 1: economic impact on the June quarter for for the for 314 00:18:12,119 --> 00:18:15,760 Speaker 1: the iPhone, and that really uh surprised me and I 315 00:18:15,800 --> 00:18:19,000 Speaker 1: think is an example of uh, you know, just the 316 00:18:19,040 --> 00:18:23,560 Speaker 1: strength of iPhone and specifically of its move it's basically 317 00:18:23,600 --> 00:18:27,440 Speaker 1: become an essential. So the quarter wasn't perfect. Apple's quarter 318 00:18:27,520 --> 00:18:31,439 Speaker 1: wasn't perfect, but the most important product really shine and 319 00:18:31,440 --> 00:18:33,920 Speaker 1: I think it's evidence of our dependence on it. Only 320 00:18:33,920 --> 00:18:37,040 Speaker 1: about a minute left here, Jeans. So iPhone and iPad 321 00:18:37,119 --> 00:18:39,159 Speaker 1: did well, but as you allude to, a lot of 322 00:18:39,240 --> 00:18:42,840 Speaker 1: other segments of Apple's business were pretty soft, like Max, 323 00:18:42,920 --> 00:18:47,680 Speaker 1: like wearables. Is that an issue going forward? Max, it's not, 324 00:18:47,920 --> 00:18:51,560 Speaker 1: because they basically had a product transition that accounted for 325 00:18:51,600 --> 00:18:56,240 Speaker 1: that shortfall. But the wearables business that that was a disappointment. 326 00:18:56,280 --> 00:18:59,920 Speaker 1: They missed expectations by ten percent. It was down eight 327 00:19:00,080 --> 00:19:02,000 Speaker 1: percent year of a year, and I think that's an 328 00:19:02,000 --> 00:19:05,359 Speaker 1: example of consumers holding off. I think there's still largely 329 00:19:06,040 --> 00:19:10,320 Speaker 1: discretionary potentially luxuries, so I think that that segment could 330 00:19:10,440 --> 00:19:13,520 Speaker 1: continue to be under pressure, but I would expect that 331 00:19:13,560 --> 00:19:16,400 Speaker 1: the MAC and I had to bounce back because again, 332 00:19:16,440 --> 00:19:19,160 Speaker 1: I think that this trend to high bred, whether it's 333 00:19:19,160 --> 00:19:21,120 Speaker 1: work and learn, even though we've had a lot of investment, 334 00:19:21,280 --> 00:19:23,800 Speaker 1: it's going to continue in the years to come. Thanks Jean, 335 00:19:23,880 --> 00:19:25,760 Speaker 1: great having you with us. Hope you have a great weekend. 336 00:19:25,840 --> 00:19:29,080 Speaker 1: Gene Munster, co founder of Loup Ventures, on the latest 337 00:19:29,080 --> 00:19:32,320 Speaker 1: tech earnings, Amazon shares this morning, as I mentioned, up 338 00:19:32,480 --> 00:19:36,240 Speaker 1: nearly twelve percent in the pre market, Apple shares higher 339 00:19:36,320 --> 00:19:39,800 Speaker 1: by two and a half percent following those earnings, driving 340 00:19:39,880 --> 00:19:43,760 Speaker 1: Nasdaq futures higher as a whole. Nasdack up hundred forty 341 00:19:43,800 --> 00:19:46,720 Speaker 1: points for a gain of one point one percent. SMP 342 00:19:46,880 --> 00:19:49,480 Speaker 1: futures are up twenty five points. Staff futures are higher 343 00:19:49,840 --> 00:19:53,359 Speaker 1: by forty six points. Just ahead, the earnings focus shifts 344 00:19:53,359 --> 00:19:58,440 Speaker 1: to big oil and the political debate over recession. Top 345 00:19:58,480 --> 00:20:01,679 Speaker 1: stories of the morning. On the way, you're listening to 346 00:20:01,760 --> 00:20:09,240 Speaker 1: Bloomberg Daybreak Bloomberg eleven three oh weather chance for afternoon 347 00:20:09,280 --> 00:20:12,240 Speaker 1: showers and storms today with a high in the upper eighties. 348 00:20:12,400 --> 00:20:15,400 Speaker 1: Sunshine tomorrow opper eighties, mix of sun and cloud Sunday 349 00:20:15,960 --> 00:20:18,840 Speaker 1: oper eighties. Get used to it right now seventy six 350 00:20:18,880 --> 00:20:24,920 Speaker 1: in Central Park Markets, headlines and breaking news twenty four 351 00:20:24,920 --> 00:20:27,919 Speaker 1: hours a day at Bloomberg dot Com and Bloomberg Business 352 00:20:28,000 --> 00:20:31,680 Speaker 1: Out and at Bloomberg Quicktake. This is a Bloomberg Business 353 00:20:31,720 --> 00:20:40,680 Speaker 1: lash and I'm Karen Moscow stocks in Europe and US 354 00:20:40,720 --> 00:20:44,200 Speaker 1: stock index futures heading for their biggest monthly advanced since 355 00:20:44,240 --> 00:20:48,120 Speaker 1: November twenty twenty on positive earnings. We're watching and NASDACK 356 00:20:48,240 --> 00:20:51,200 Speaker 1: futures outperformed this morning after hitting a seven week high 357 00:20:51,320 --> 00:20:55,520 Speaker 1: yesterday and after Amazon and Apple earnings this We check 358 00:20:55,600 --> 00:20:57,800 Speaker 1: the markets every fifteen minutes throughout the trading day on 359 00:20:57,840 --> 00:21:00,320 Speaker 1: Bloomberg Guess and P futures are up twenty eight points 360 00:21:00,320 --> 00:21:02,919 Speaker 1: this morning, down futures of seventy one and NASTAG futures 361 00:21:02,920 --> 00:21:05,520 Speaker 1: have one forty six as up one point two percent. 362 00:21:05,920 --> 00:21:08,480 Speaker 1: The docks in Germany is up nine tenths of uppercent 363 00:21:08,600 --> 00:21:11,520 Speaker 1: ten year treasury down twelve thirty seconds, held two point 364 00:21:11,600 --> 00:21:13,760 Speaker 1: seven one percent. They yield on the two year two 365 00:21:13,800 --> 00:21:16,639 Speaker 1: point eight eight percent. Ni mack screwed oil is up 366 00:21:16,640 --> 00:21:19,000 Speaker 1: two point two percent of two dollars fifteen cents at 367 00:21:19,080 --> 00:21:22,000 Speaker 1: ninety eight dollars fifty seven cents of barrel comex school 368 00:21:22,080 --> 00:21:24,040 Speaker 1: is a third of upper cent or six dollars twenty 369 00:21:24,080 --> 00:21:27,959 Speaker 1: cents at seventeen seventy ounce. The euro one point one 370 00:21:28,080 --> 00:21:30,400 Speaker 1: nine four against the dollar, British found one point two 371 00:21:30,400 --> 00:21:32,920 Speaker 1: one four six and a yen one thirty three point 372 00:21:32,960 --> 00:21:37,040 Speaker 1: four one. And Bitcoin this morning isn't all changed. It 373 00:21:37,200 --> 00:21:41,000 Speaker 1: is at twenty four thousand, sixteen dollars and that's a 374 00:21:41,000 --> 00:21:43,600 Speaker 1: Bloomberg business flash. Now here's Michael Barr with more on 375 00:21:43,680 --> 00:21:46,159 Speaker 1: what's going on around the world. Michael Karen, thank you 376 00:21:46,240 --> 00:21:49,119 Speaker 1: very much, President Joe Biden, and Chinese President that Hi 377 00:21:49,240 --> 00:21:52,679 Speaker 1: jing Ping told AIDS to plan and in person meeting. 378 00:21:52,800 --> 00:21:56,600 Speaker 1: During yesterday's call, the fifth conversation between the leaders of 379 00:21:56,640 --> 00:22:00,440 Speaker 1: the world's two largest economies centered on Taiwan, a long 380 00:22:00,480 --> 00:22:05,080 Speaker 1: time flashpoint exacerbated by how Speaker Nancy Pelosi's possible visit 381 00:22:05,320 --> 00:22:08,399 Speaker 1: to the island next month. Flooding in eastern Kentucky has 382 00:22:08,480 --> 00:22:11,760 Speaker 1: left at least eight people dead. The area is bracing 383 00:22:11,760 --> 00:22:15,000 Speaker 1: for more rain. In baseball, the Yankees beat the Royals 384 00:22:15,040 --> 00:22:17,720 Speaker 1: one zip. The Red Sox beat the Guardians four to 385 00:22:18,119 --> 00:22:21,360 Speaker 1: the Orioles shut out the Rays three nothing. The Giants 386 00:22:21,359 --> 00:22:24,200 Speaker 1: beat the Cubs for two. Global News twenty four hours 387 00:22:24,200 --> 00:22:27,640 Speaker 1: a day on air and on Bloomberg Quicktake, powered by 388 00:22:27,640 --> 00:22:30,399 Speaker 1: more than seven hundred journalists and analyst more than a 389 00:22:30,440 --> 00:22:34,040 Speaker 1: hundred twenty countries. I'm Michael Barr, and this is Bloomberg. 390 00:22:34,119 --> 00:22:36,639 Speaker 1: Nathan all right, Michael. Thanks. It is now five forty 391 00:22:36,720 --> 00:22:40,080 Speaker 1: nine on Wall Street Live from the Bloomberg Interactive Broker Studios. 392 00:22:40,160 --> 00:22:43,520 Speaker 1: This is Bloomberg Daybreak. Let's turn now to the nation's capital. 393 00:22:43,520 --> 00:22:46,400 Speaker 1: Whereas Michael mentioned, President Biden is making plans to meet 394 00:22:46,480 --> 00:22:50,120 Speaker 1: with China's Sijin Ping after their long phone call yesterday, 395 00:22:50,400 --> 00:22:53,600 Speaker 1: though the president won't have a surging US economy to 396 00:22:53,720 --> 00:22:56,560 Speaker 1: brag about once they do go face to face. Let's 397 00:22:56,560 --> 00:22:58,960 Speaker 1: bring in Bloomberg government reporter Emily Wilkins now from a 398 00:22:59,000 --> 00:23:03,440 Speaker 1: Bloomberg ninwland On studios in Washington, d C. Emily, good morning. 399 00:23:03,440 --> 00:23:05,199 Speaker 1: It does seem as though there's a kind of a 400 00:23:05,240 --> 00:23:09,240 Speaker 1: political parlor game that's surfaced now after the latest GDP 401 00:23:09,680 --> 00:23:13,160 Speaker 1: rating for the US, and it does really have some 402 00:23:13,600 --> 00:23:20,840 Speaker 1: geopolitical dimensions as well in this era of great power competition. Absolutely, Nathan, 403 00:23:20,960 --> 00:23:22,920 Speaker 1: I mean, you just here are seeing a lot of 404 00:23:23,000 --> 00:23:26,040 Speaker 1: dynamics play out right now. Um. I guess first, let's 405 00:23:26,040 --> 00:23:28,800 Speaker 1: talk about that phone call between President Leiden and Chinese 406 00:23:28,800 --> 00:23:32,760 Speaker 1: President Jijin Ping lasted a little over two hours and 407 00:23:33,000 --> 00:23:36,680 Speaker 1: there The White House then reported afterwards that they are 408 00:23:36,720 --> 00:23:39,600 Speaker 1: now trying to get an in person meeting between Biden 409 00:23:39,680 --> 00:23:43,119 Speaker 1: and she. This would be the first of Biden's presidency. 410 00:23:43,200 --> 00:23:45,439 Speaker 1: Of course, this is coming at a little bit of 411 00:23:45,520 --> 00:23:49,159 Speaker 1: a tricky time on the Washington side, as how, Speaker 412 00:23:49,280 --> 00:23:53,040 Speaker 1: Nancy Pelosi is reportedly going to be traveling to Taiwan. Now, 413 00:23:53,040 --> 00:23:55,480 Speaker 1: the Speaker's office has not confirmed those plans. They say 414 00:23:55,480 --> 00:23:58,359 Speaker 1: it's a safety risk, but certainly I've We've talked to 415 00:23:58,440 --> 00:24:00,639 Speaker 1: lawmakers who have said that Pelosi and bided them on 416 00:24:00,680 --> 00:24:02,960 Speaker 1: the trip. Uh, this very much seems like like a 417 00:24:03,040 --> 00:24:05,520 Speaker 1: thing that's going to go forward at this point, and 418 00:24:05,560 --> 00:24:08,120 Speaker 1: a lot of lawmakers are supportive of Pelosi on both 419 00:24:08,160 --> 00:24:11,040 Speaker 1: sides of the aisle. Senator Mitch McConnell said she'd be 420 00:24:11,080 --> 00:24:14,080 Speaker 1: handing China win to back down now. So Pelosi is 421 00:24:14,080 --> 00:24:16,960 Speaker 1: expected to leave on that trip to Asia Pacific region today. 422 00:24:17,000 --> 00:24:18,919 Speaker 1: She's going to go to a number of countries, including 423 00:24:18,960 --> 00:24:22,560 Speaker 1: Japan and Indonesia. UM. Exactly when she's going to Taiwan 424 00:24:22,720 --> 00:24:26,800 Speaker 1: has not yet been announced. UM. But yesterday when that 425 00:24:26,920 --> 00:24:31,040 Speaker 1: call happened between Biden and she, she warned Biden to 426 00:24:31,160 --> 00:24:34,919 Speaker 1: not play with fire. Kind of they it's not necessarily 427 00:24:34,960 --> 00:24:38,120 Speaker 1: clear that they were discussing the trip exactly, but both 428 00:24:38,119 --> 00:24:43,320 Speaker 1: sides definitely restated their current positions on Taiwan. Biden says 429 00:24:43,560 --> 00:24:46,760 Speaker 1: that the US does not want to undermine the status 430 00:24:46,840 --> 00:24:50,560 Speaker 1: quo and undermine piece and stability in the Taiwan straight 431 00:24:51,200 --> 00:24:53,320 Speaker 1: And then this is also coming as the White House 432 00:24:53,400 --> 00:24:56,560 Speaker 1: is dealing with the economic news h that DVP was 433 00:24:56,640 --> 00:24:58,840 Speaker 1: then down for another second quarter, and the White House 434 00:24:58,920 --> 00:25:01,440 Speaker 1: is doing everything it came, and to send the message 435 00:25:01,520 --> 00:25:04,920 Speaker 1: that this is not a recession, uh, that even though 436 00:25:05,160 --> 00:25:09,359 Speaker 1: you have these two quarters of declining GDP growth, that 437 00:25:09,520 --> 00:25:12,600 Speaker 1: the job market is still strong, that the economy is 438 00:25:12,600 --> 00:25:15,439 Speaker 1: still showing signs of strength. Of course, neither though the 439 00:25:15,480 --> 00:25:18,919 Speaker 1: difficulty hear from from a purely political perspective. The average 440 00:25:18,960 --> 00:25:21,520 Speaker 1: American is not sitting around saying, well, it is a 441 00:25:21,560 --> 00:25:24,280 Speaker 1: recession or it isn't a recession. The average American is 442 00:25:24,320 --> 00:25:26,919 Speaker 1: simply dealing with the higher prices that they're seeing at 443 00:25:26,920 --> 00:25:30,360 Speaker 1: the grocery stores, gas station prices. Sure, they've come down, 444 00:25:30,400 --> 00:25:32,800 Speaker 1: they're still high compared to what they were a year ago. 445 00:25:33,200 --> 00:25:34,960 Speaker 1: And I mean those are really the things that are 446 00:25:35,040 --> 00:25:37,840 Speaker 1: going to wind up making a difference here in terms 447 00:25:37,840 --> 00:25:41,440 Speaker 1: of the political outlook for Biden and the Democratic Party. Yeah, 448 00:25:41,480 --> 00:25:43,879 Speaker 1: even as the Biden administration is saying that we're not 449 00:25:44,000 --> 00:25:47,240 Speaker 1: in a recession, they're still doing things like pushing for 450 00:25:47,640 --> 00:25:51,639 Speaker 1: big pieces of legislation, big spending legislation with the Chips 451 00:25:51,680 --> 00:25:56,000 Speaker 1: Act and now this deal between Senator's Mansion and Schumer 452 00:25:56,040 --> 00:25:58,600 Speaker 1: to try to bring inflation down. I mean that feeds 453 00:25:58,640 --> 00:26:01,080 Speaker 1: into the story as well about whether this country is 454 00:26:01,119 --> 00:26:05,200 Speaker 1: in a recession. It does. And there's also an interesting 455 00:26:05,280 --> 00:26:09,480 Speaker 1: aspect of that Mansion Schumer debate. Remember Joe Mansion's big concern, 456 00:26:09,600 --> 00:26:12,960 Speaker 1: his big opposition to this package was the inflationary impact 457 00:26:12,960 --> 00:26:16,040 Speaker 1: that it could have. And you actually saw Larry Summers 458 00:26:16,359 --> 00:26:18,439 Speaker 1: he met with Mansion, the two of them spoke. He 459 00:26:18,480 --> 00:26:21,800 Speaker 1: assured them that the package was not inflationary, and that 460 00:26:21,960 --> 00:26:25,360 Speaker 1: was part of the thinking of Mansions that ultimately went 461 00:26:25,400 --> 00:26:28,679 Speaker 1: into him deciding to go forward with this agreement. Now, 462 00:26:28,720 --> 00:26:31,080 Speaker 1: of course, it will remain to be seen. Certainly, You've 463 00:26:31,119 --> 00:26:35,480 Speaker 1: already seen Republicans take that COVID relief package that Democrats 464 00:26:35,520 --> 00:26:39,320 Speaker 1: back in one and tied that to inflation. You've already 465 00:26:39,359 --> 00:26:42,679 Speaker 1: started to see them tie this upcoming reconciliation package to 466 00:26:42,760 --> 00:26:46,000 Speaker 1: inflation as well, and we expect to see that continue 467 00:26:46,200 --> 00:26:48,960 Speaker 1: until November. With the with the mid terms only about 468 00:26:49,000 --> 00:26:51,720 Speaker 1: thirty seconds left here, what are the chances that either 469 00:26:51,760 --> 00:26:54,640 Speaker 1: the Chips bill or the reconciliation package get done before 470 00:26:54,640 --> 00:26:57,560 Speaker 1: the Senate heads out of town in Washington. Well, Nathan 471 00:26:57,640 --> 00:27:00,639 Speaker 1: Chips is done. It passed the House yesterday after passing 472 00:27:00,640 --> 00:27:02,760 Speaker 1: this set it earlier this week. It's on the way 473 00:27:02,760 --> 00:27:06,880 Speaker 1: to Biden's desk reconciliation. That's a bit of a trickier question. 474 00:27:06,920 --> 00:27:09,639 Speaker 1: You've got two main obstacles right now to that getting 475 00:27:09,640 --> 00:27:12,200 Speaker 1: done soon. Number one set up parliamentary and has gotta 476 00:27:12,240 --> 00:27:14,080 Speaker 1: go through all that text give it a green light 477 00:27:14,720 --> 00:27:16,720 Speaker 1: or a red light, which could wind up impacting what's 478 00:27:16,720 --> 00:27:19,000 Speaker 1: in the bill. That'll take some time, and we still 479 00:27:19,080 --> 00:27:22,760 Speaker 1: don't know. Senator Kristensen supports that package. Remember she was 480 00:27:22,840 --> 00:27:26,359 Speaker 1: not a big fan of that carried interest tax that 481 00:27:26,560 --> 00:27:29,680 Speaker 1: is uh now included in this bill, and it might 482 00:27:29,760 --> 00:27:32,159 Speaker 1: keep her from ultimately supporting it, which would kill the 483 00:27:32,280 --> 00:27:36,760 Speaker 1: entire thing. Bloomberg Government reporter Emily Wilkins with us from Washington. Emily, 484 00:27:36,880 --> 00:27:39,720 Speaker 1: thank you, Karen all right, Nathan, thank you. It is 485 00:27:39,760 --> 00:27:42,520 Speaker 1: five fifty four on Wall Street. Now to a legal 486 00:27:42,560 --> 00:27:45,879 Speaker 1: story we're watching this morning, brought to you by American 487 00:27:46,000 --> 00:27:50,280 Speaker 1: Arbitration Association. Business disputes are inevitable, Brazil Faster with the 488 00:27:50,320 --> 00:27:54,560 Speaker 1: American Arbitration Association, the global leader in alternative dispeed resolution 489 00:27:54,640 --> 00:27:58,160 Speaker 1: for over ninety years. More at a d R dot org. 490 00:27:58,640 --> 00:28:01,840 Speaker 1: Well Attorney General General America Garland has acknowledged that the 491 00:28:01,920 --> 00:28:05,800 Speaker 1: Justice Department's investigation into January six is now focusing on 492 00:28:05,840 --> 00:28:09,240 Speaker 1: the effort to stop the peaceful transfer of power after 493 00:28:09,240 --> 00:28:13,120 Speaker 1: the election. That statement, along with reports of questions asked 494 00:28:13,119 --> 00:28:15,840 Speaker 1: by prosecutors and a grand jury, indicate that the Justice 495 00:28:15,880 --> 00:28:19,840 Speaker 1: Department is investigating former President Donald Trump's efforts to create 496 00:28:20,000 --> 00:28:23,600 Speaker 1: fake electors to overturn the election for Moore Bloomberg. Student 497 00:28:23,600 --> 00:28:27,080 Speaker 1: Grosso speaks to a former federal prosecutor, Robert Mintz, a 498 00:28:27,160 --> 00:28:31,400 Speaker 1: partner at mcarter in English. Mark Short, former Vice President 499 00:28:31,480 --> 00:28:36,000 Speaker 1: Pence's former chief of staff, and Greg Jacob, his former 500 00:28:36,080 --> 00:28:39,760 Speaker 1: chief council, appeared before the grand jury and they were 501 00:28:39,800 --> 00:28:44,320 Speaker 1: asked about conversations they had with Trump and his inner 502 00:28:44,400 --> 00:28:49,400 Speaker 1: circle about efforts to create false selectors. What does that 503 00:28:49,520 --> 00:28:53,240 Speaker 1: signal to you? Well, as you know, this investigation has 504 00:28:53,280 --> 00:28:56,920 Speaker 1: been going on with the Department of Justice since shortly 505 00:28:57,040 --> 00:29:00,480 Speaker 1: after the January six assault on the Capitol, and since 506 00:29:00,560 --> 00:29:04,880 Speaker 1: that time, federal prosecutors have charged eight hundred forty individuals 507 00:29:05,120 --> 00:29:10,480 Speaker 1: with various charges directly relating to assaults and to forcibly 508 00:29:10,640 --> 00:29:14,560 Speaker 1: entering the Capitol. But the investigation has taken a different 509 00:29:14,560 --> 00:29:18,320 Speaker 1: turn recently because we know that individuals who are being 510 00:29:18,320 --> 00:29:22,360 Speaker 1: brought before the grand jury are being asked questions directly 511 00:29:22,440 --> 00:29:26,080 Speaker 1: about the former president's involvement in the efforts to reverse 512 00:29:26,080 --> 00:29:29,600 Speaker 1: the election lass and particularly what did he know, when 513 00:29:29,640 --> 00:29:32,360 Speaker 1: did he know it, and what direction was he giving 514 00:29:32,480 --> 00:29:35,600 Speaker 1: his lawyers and those around him in the events leading 515 00:29:35,680 --> 00:29:38,760 Speaker 1: up to January six. So that suggests to me that 516 00:29:38,840 --> 00:29:41,720 Speaker 1: the Department of Justice is taking a more aggressive tone 517 00:29:42,120 --> 00:29:45,440 Speaker 1: and they are entering what is clearly a very politically 518 00:29:45,480 --> 00:29:50,480 Speaker 1: fraught phase of this investigation. If Garland where to prosecute Trump, 519 00:29:50,800 --> 00:29:55,400 Speaker 1: would he want a straightforward case that can withstand scrutiny 520 00:29:55,520 --> 00:30:01,400 Speaker 1: of court proceedings and appeals and is a scheme to create, say, electors, 521 00:30:01,440 --> 00:30:05,880 Speaker 1: that more straightforward case. If the Department of Justice were 522 00:30:06,000 --> 00:30:09,120 Speaker 1: to pursue a case against former President Trump, there's no 523 00:30:09,280 --> 00:30:12,840 Speaker 1: question that Merrika will want a case that is virtually 524 00:30:12,920 --> 00:30:16,920 Speaker 1: bullet proof, will want something that is straightforward, that curres 525 00:30:16,960 --> 00:30:20,880 Speaker 1: can understand, and that will ultimately almost guarantee him a 526 00:30:20,960 --> 00:30:25,240 Speaker 1: conviction and ultimately almost guarantee him that on appeal the 527 00:30:25,280 --> 00:30:28,040 Speaker 1: conviction will not be reversed. So at this point there 528 00:30:28,040 --> 00:30:30,920 Speaker 1: were two phases of the government's investigation. The first had 529 00:30:30,960 --> 00:30:35,360 Speaker 1: centered on the seditious conspiracy and conspiracy to obstruct government proceedings. 530 00:30:35,520 --> 00:30:38,440 Speaker 1: But now the investigation is moving into a second stage, 531 00:30:38,760 --> 00:30:41,560 Speaker 1: as you mentioned, where the Department of Justice is focusing 532 00:30:41,600 --> 00:30:45,520 Speaker 1: on this potential fraud associated with the false elector scheme 533 00:30:45,920 --> 00:30:49,000 Speaker 1: or with pressure that former President Trump and his allies 534 00:30:49,040 --> 00:30:52,000 Speaker 1: allegedly brought on the Department of Justice and others to 535 00:30:52,160 --> 00:30:54,920 Speaker 1: falsely claim that the election was rigged and the votes 536 00:30:54,960 --> 00:30:58,640 Speaker 1: were fraudulently cast. And that's I think something that ultimately 537 00:30:58,880 --> 00:31:03,080 Speaker 1: would be a stronger Storge and as former federal prosecutor 538 00:31:03,200 --> 00:31:05,920 Speaker 1: Robert mens A, partner at McCarter and English speaking with 539 00:31:05,960 --> 00:31:09,400 Speaker 1: Bloomberg student Grosso, it's more of that interview pust analysis 540 00:31:09,400 --> 00:31:11,800 Speaker 1: of the latest legal news. By subscribing to the Bloomberg 541 00:31:11,840 --> 00:31:14,960 Speaker 1: Law podcast, are downloading the show at Bloomberg dot com 542 00:31:15,000 --> 00:31:18,760 Speaker 1: slash podcasts. Attorneys can find exceptional legal research and business 543 00:31:18,800 --> 00:31:21,720 Speaker 1: development tools at Bloomberg Law dot com and on the 544 00:31:21,720 --> 00:31:25,920 Speaker 1: Bloomberg terminal at b Law. Go futures on the Rise 545 00:31:26,000 --> 00:31:29,760 Speaker 1: this morning. Our tough stories are straight ahead, and this 546 00:31:30,120 --> 00:31:30,880 Speaker 1: is Bloomberg