WEBVTT - Bloomberg Daybreak: August 2, 2022 - Hour 2 (Radio) 0:00:02.840 --> 0:00:05.480 Live from the Bloomberg in Director Berger Studios. This is 0:00:05.519 --> 0:00:09.280 Bloomberg day Break for Tuesday. On his second two Coming 0:00:09.320 --> 0:00:12.200 up this hour, Tensions escalate between the U S and 0:00:12.320 --> 0:00:16.160 China as Nancy Pelosi heads to Taiwan. Stocks drop around 0:00:16.160 --> 0:00:18.720 the world on the News team, coverage is straight ahead. 0:00:18.920 --> 0:00:21.200 A top al Qaida leader is killed in a US 0:00:21.320 --> 0:00:24.800 drone strike, and another blowout earnings report by Big Oil. 0:00:24.920 --> 0:00:28.160 This time it's VP New York City, along with California, 0:00:28.240 --> 0:00:31.280 to have declared the state of emergency because of monkeypox cases, 0:00:31.560 --> 0:00:34.560 lost its primary day in five states. I'm Michael Larer. 0:00:34.640 --> 0:00:37.480 More Ahead, I'm John Stash, Aaron Sports another errand Judge 0:00:37.520 --> 0:00:40.200 home running. The Yankees win seventh straight win for the Mets. 0:00:40.280 --> 0:00:45.599 Jacob de Graham pitches tonight. That's all straight Ahead on 0:00:45.680 --> 0:00:48.960 Bloomberg day Break on Bloomberg Elving Free on New York, 0:00:49.040 --> 0:00:53.600 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:53.720 --> 0:00:58.000 Bloomberg nine sixties, San Francisco, Syrius x M one nineteen 0:00:58.160 --> 0:01:01.080 and around the world on Bloomberg Radio dot Com and 0:01:01.200 --> 0:01:08.319 via the Bloomberg Business Actor. Good morning, I'm Nathan Hagar, 0:01:08.680 --> 0:01:11.480 and I'm Karen mall scalo in US South Index futures 0:01:11.480 --> 0:01:13.760 are lower this morning. We are coming up to six 0:01:13.760 --> 0:01:15.479 oh one on Wall Street, and we checked the markets 0:01:15.480 --> 0:01:18.240 every fifteen minutes throughout the trading day. On Bloomberg, U 0:01:18.280 --> 0:01:21.040 S and P Future is down thirty points now futures 0:01:21.040 --> 0:01:24.520 down one fifty nine and as day futures down one seven. 0:01:24.800 --> 0:01:27.600 Ten year Treasury is up eight thirty seconds, held two 0:01:27.640 --> 0:01:30.240 point five four percent, and they yield on the two 0:01:30.360 --> 0:01:33.680 year two point eight five percent. And NIMEX screwed oil 0:01:33.760 --> 0:01:35.399 is down about a ten s of upper cent or 0:01:35.400 --> 0:01:38.720 seventy four cents and ninety three dollar seventeen cents of barrel. 0:01:38.800 --> 0:01:41.480 Nathan Karen will have more on markets in just a minute. First, 0:01:41.560 --> 0:01:44.480 a major announcement from the White House. President Biden says 0:01:44.480 --> 0:01:47.400 the US drone strike in Afghanistan killed one of the 0:01:47.400 --> 0:01:50.480 planners of the nine eleven attacks, Ammon al Zawahi, was 0:01:50.560 --> 0:01:53.880 the leader of al Qaida. No matter how long it takes, 0:01:54.520 --> 0:01:57.760 no matter where you hide, if you are a threat 0:01:57.800 --> 0:02:00.280 to our people, the United States will find in you 0:02:00.840 --> 0:02:04.120 and take you out. Senior Administration official tells us the 0:02:04.160 --> 0:02:06.280 drone strike had been planned for weeks and there were 0:02:06.280 --> 0:02:09.720 no civilian casualties. Well, Nathan. The strike comes about a 0:02:09.840 --> 0:02:12.239 year after the fall of Kabbal to the Taliban and 0:02:12.280 --> 0:02:17.040 the US military's hasty withdrawal from Afghanistan. Lester Munson, principle 0:02:17.160 --> 0:02:20.720 at the government relations firm BGR Group, says it's important 0:02:20.760 --> 0:02:23.840 to look at the attack from that context. What else 0:02:23.960 --> 0:02:27.440 is happening in Afghanistan? One are the other consequences of 0:02:27.440 --> 0:02:30.000 our withdrawal. This is one event. It may be a 0:02:30.080 --> 0:02:31.960 very significant one, but we do need to kind of 0:02:31.960 --> 0:02:34.000 put it in the constellation of all of the other 0:02:34.040 --> 0:02:37.160 information that we have. Lester Munson with BGR Groups spoke 0:02:37.200 --> 0:02:40.280 with our Washington correspondent Joe Matthew on Bloomberg Sound On. 0:02:40.440 --> 0:02:43.720 Catch the program weekdays at five pm Eastern on Bloomberg Radio. 0:02:43.919 --> 0:02:45.959 Another major story we're following at this hour care in 0:02:46.040 --> 0:02:49.560 US House speaker Nancy Pelosi expected in Taiwan this morning, 0:02:49.639 --> 0:02:53.080 defying Chinese threats of military action over the visit. We 0:02:53.120 --> 0:02:56.440 get more from Bloomberg's Bruce Einhorn in Hong Kong. She 0:02:56.880 --> 0:02:59.440 has a long history going back to you know, the 0:02:59.440 --> 0:03:01.720 early days of her career as a China Hawk. She 0:03:01.760 --> 0:03:05.680 has a long record supporting human rights issues are related 0:03:05.680 --> 0:03:07.960 to China. She's met with the Dali Lama, She's met 0:03:08.000 --> 0:03:11.880 with Joshua Wang, the pro democracy activists from Hong Kong. 0:03:12.280 --> 0:03:16.080 She's met with ethnic wagers from Shinjian. So this is 0:03:16.120 --> 0:03:19.000 just in keeping with the long history of Nancy Pelosi's 0:03:19.000 --> 0:03:22.640 position when it comes to highlighting human rights issues democracy 0:03:22.639 --> 0:03:26.399 issues related to China. Broomberg's Bruce sin Horn says Pelosi's 0:03:26.400 --> 0:03:28.799 trip would make her the highest ranking American politician to 0:03:28.919 --> 0:03:32.280 visit Taiwan in twenty five years. Well, Nathan, the escalating 0:03:32.280 --> 0:03:35.640 tension between the US and China is impacting Marcus Sis morning, 0:03:35.760 --> 0:03:38.680 US futures are lower, and Asian stocks fell overnight. We 0:03:38.760 --> 0:03:42.560 get the recount from Bloomberg's Juliet Sally in Singapore. Good Morning, Juliet, 0:03:42.680 --> 0:03:45.720 Good morning Karen. China cs I three extended it's July 0:03:45.840 --> 0:03:48.360 losses and is now down around nine percent from its 0:03:48.440 --> 0:03:52.520 June peak, moving closer towards the correction. Taiwanese stocks also 0:03:52.560 --> 0:03:54.840 came under pressure, while the Taiwan dollar fell to a 0:03:54.960 --> 0:03:58.320 May twenty low against the green bag, investors flock to 0:03:58.400 --> 0:04:00.840 save haven's With the yen rising against the dollar, for 0:04:00.920 --> 0:04:04.720 a fifth session, its longest winning streaks since April one, 0:04:05.040 --> 0:04:07.800 and Australian Vaughn's rose, while the Aussie dropped as the 0:04:07.880 --> 0:04:11.480 r VA became slightly less hawkish while still delivering another 0:04:11.600 --> 0:04:16.000 fifty basis point hike In Singapore. Juliet Sally Bloomberg daybreak. 0:04:16.120 --> 0:04:18.360 All right, Juliet, thank you. In Europe this morning, shares 0:04:18.360 --> 0:04:21.040 a VP or up about three percent. The Oil Giants 0:04:21.040 --> 0:04:23.760 second quarter adjusted net income was the highest since two 0:04:23.800 --> 0:04:26.479 thousand and eight. We get more from Bloomberg Intelligence senior 0:04:26.560 --> 0:04:29.800 energy analyst Will Hares. This is a very big beat 0:04:29.839 --> 0:04:32.200 from BP and two Q eight and a half billion 0:04:32.240 --> 0:04:35.320 in adjusted earnings. This is roughly more than two billion 0:04:35.400 --> 0:04:39.720 than the Street CONTENTUS had estimated. A big driver here 0:04:39.800 --> 0:04:43.000 has been there the oil trading division, which is not 0:04:43.200 --> 0:04:47.680 broken out by VP. The company cited they had exceptional 0:04:47.760 --> 0:04:51.480 oil trading returns, capturing value from some of that historic 0:04:51.560 --> 0:04:54.800 volatility we have seen well Hairs with Bloomberg Intelligence says 0:04:54.839 --> 0:04:58.840 BP also increased its dividend and accelerated share by backs well. 0:04:58.920 --> 0:05:01.360 Nathan Beck. Here in the U shares A pinterest are 0:05:01.400 --> 0:05:04.880 surging up more than eighteen percent, as after Elliott Investment 0:05:04.920 --> 0:05:08.080 Management confirmed as Steak is the company's top shareholder, and 0:05:08.200 --> 0:05:11.320 we get the story from Bloomberg's Charlie Pellett. Elliott says 0:05:11.360 --> 0:05:15.640 it approves of the company's leadership. Sales at Pinterest increase 0:05:15.800 --> 0:05:19.320 nine percent to six hundred sixty five point nine million 0:05:19.320 --> 0:05:22.240 dollars in the second quarter. Pinterests that have had four 0:05:22.320 --> 0:05:25.680 hundred thirty three million monthly active users at the end 0:05:25.680 --> 0:05:28.800 of the period on June, about the same as in 0:05:28.880 --> 0:05:32.240 the previous quarter, but a five percent decline from a 0:05:32.320 --> 0:05:36.680 year earlier. In New York, Charlie Pellett Bloomberg tabreak. All right, Charlie, thanks, 0:05:36.680 --> 0:05:39.239 and the earnings continue today with more than forty companies 0:05:39.279 --> 0:05:42.600 reporting Uber Technologies reports. This afternoon, we get a preview 0:05:42.600 --> 0:05:46.200 from Bloomberg's Tom Busby. Investors will focus on two things 0:05:46.240 --> 0:05:49.360 from the second quarter results out today. Signs of how 0:05:49.360 --> 0:05:52.120 a shortage of drivers may have impacted its ride hailing 0:05:52.160 --> 0:05:55.520 business and how much it's food delivery unit Uber Eats 0:05:55.560 --> 0:05:59.160 may have suffered from rising food costs. Bloomberg and Census 0:05:59.160 --> 0:06:02.160 calls for revenue of seven point three nine billion dollars 0:06:02.200 --> 0:06:04.880 at a loss of twenty five cents per share total 0:06:04.920 --> 0:06:08.560 losses forecast to be around four hundred nine million dollars. 0:06:08.680 --> 0:06:12.599 Tom Busby Bloomberg Daybreak, Tom, thank you. Another corporate news 0:06:12.680 --> 0:06:15.400 this morning. The legal moves are heating up in Twitter's 0:06:15.480 --> 0:06:17.960 case against Elon Musk. We get the latest line from 0:06:17.960 --> 0:06:20.839 Bloomberg's I Need a young Good Morning Radio, Good Morning, Karen. 0:06:20.920 --> 0:06:23.880 Twitter is probing the social circle of the Elon Musk 0:06:24.240 --> 0:06:27.360 lawyers are making far reaching legal requests about his forty 0:06:27.440 --> 0:06:30.679 four billion dollar deal to take Twitter private. That's according 0:06:30.680 --> 0:06:34.280 to legal documents obtained by The Washington Post. Not twitters 0:06:34.360 --> 0:06:38.279 legal team asked for information about Silicon Valley elite investors, 0:06:38.520 --> 0:06:42.120 including David Sacks and Bark Andresen, and since some of 0:06:42.160 --> 0:06:45.239 the heavy hitters have not been named publicly in the deal, 0:06:45.480 --> 0:06:48.280 it suggests just how far Twitter is willing to go 0:06:48.640 --> 0:06:51.560 to four C Elon Musk to honor the deal. Twitter 0:06:51.640 --> 0:06:54.760 is also probing Morgan Stanley, Bank of America and other 0:06:54.800 --> 0:06:58.600 banks that committed to backing the acquisition. Live in New York, 0:06:58.640 --> 0:07:01.560 I'm gonna need a young, Bloomberg Daybreak, Thanks for Nita SMP. 0:07:01.720 --> 0:07:04.240 Futures now or down thirty two points down. Futures down 0:07:04.240 --> 0:07:07.119 a hundred seventy Nasdaq futures lower by a hundred thirty 0:07:07.120 --> 0:07:10.000 two points, that is a drop of one percent. Tenure 0:07:10.040 --> 0:07:13.080 Treasury is up seven thirty seconds to the yield two 0:07:13.120 --> 0:07:16.680 point five four percent. Straight ahead, your latest local headlines 0:07:16.800 --> 0:07:23.360 and a check of sports. This is Bloomberg six oh 0:07:23.440 --> 0:07:26.480 seven on Wall Street, seventy one degrees in Central Park northbound. 0:07:26.560 --> 0:07:28.680 Root thirty five is closed at the Victory Circle in 0:07:28.760 --> 0:07:31.440 South Amboy for an accident. Details coming up in traffic. 0:07:31.480 --> 0:07:33.760 First Michael Barr with what else is going on in 0:07:33.760 --> 0:07:36.760 New York and around the world. Michael, thank you very much, Nathan. 0:07:36.760 --> 0:07:39.800 New York City has declared a state of emergency as 0:07:39.880 --> 0:07:44.560 monkeypox cases continued to rise. A reporter asked Mayor Eric 0:07:44.600 --> 0:07:47.440 Adams if the city has quote dropped the ball. On 0:07:47.480 --> 0:07:50.400 its response, Adam says it has done the best it 0:07:50.560 --> 0:07:53.280 could with the tools it had. We will receive it 0:07:53.480 --> 0:07:57.440 less than we deserved. In vaccines, we advocated we utilize 0:07:57.480 --> 0:08:01.440 our direct communication with the White House. Get more. About 0:08:01.480 --> 0:08:04.360 a quarter of all monkeypox cases in the United States 0:08:04.440 --> 0:08:07.239 are in New York City. An estimated one hundred fifty 0:08:07.240 --> 0:08:11.240 thousand New Yorkers are at risk of monkeypox exposure. California 0:08:11.280 --> 0:08:13.520 has declared a state of emergency to deal with the 0:08:13.520 --> 0:08:16.800 outbreak of monkey box. More in this live report from 0:08:16.800 --> 0:08:20.840 Bloomberg's John Tucker John Michael. Governor Gavin Newsom mayde declaration 0:08:20.880 --> 0:08:24.000 to bolster the state's vaccine efforts. It makes California the 0:08:24.040 --> 0:08:26.880 second state in three days to take a step. Nearly 0:08:26.920 --> 0:08:29.600 eight hundred cases have been reported in that state. He 0:08:29.720 --> 0:08:31.840 says he'll continue to work with a feller government to 0:08:31.920 --> 0:08:36.520 secure more vaccines, raise awareness about reducing risk, and stand 0:08:36.559 --> 0:08:40.800 with the LGBT community fighting stigmatization. The move comes after 0:08:40.800 --> 0:08:43.800 a similar declaration in New York State Saturday and in 0:08:43.880 --> 0:08:47.520 San Francisco Thursday. John Tucker, Bloomberg Daybreak, John, Thank you, sir. 0:08:47.720 --> 0:08:51.480 It is primary day in five states and Arizona. Voters 0:08:51.520 --> 0:08:55.160 are choosing between candidates who say they wouldn't have certified 0:08:55.160 --> 0:08:58.520 the results of the twenty campaign and those who argue 0:08:58.520 --> 0:09:01.880 it's time to move on. Of the closely watched contests 0:09:01.880 --> 0:09:06.839 include races for Michigan's governor and Missouri's senator. Voters into 0:09:06.920 --> 0:09:09.640 Kansas will be the first to design on abortion rights 0:09:09.679 --> 0:09:12.559 since the U. S. Supreme Court revoked Roe v. Wade. 0:09:12.920 --> 0:09:17.080 Washington State also holds primaries. The Ukrainian troops have made 0:09:17.080 --> 0:09:20.840 in roads into the Russian defenses and used US supplied 0:09:21.000 --> 0:09:25.199 rocket launchers just trying bridges and military infrastructure in the South. 0:09:25.640 --> 0:09:28.840 Moscow is diverting its forces from the Dundas region to 0:09:29.040 --> 0:09:32.120 counter the new threat. Global News twenty four hours a 0:09:32.240 --> 0:09:35.480 day on air and on Bloomberg Quicktake, powered by more 0:09:35.520 --> 0:09:38.320 than twenty seven hundred journalists and analysts or more than 0:09:38.360 --> 0:09:41.920 one hundred twenty countries. I'm Michael Blart, this Bloomberg Nathan. 0:09:41.920 --> 0:09:48.640 Thank you Michael six o nine on Wall Street time 0:09:48.679 --> 0:09:51.840 for the Bloomberg Sports Update. Here s thanks, Nathan. Has 0:09:51.880 --> 0:09:54.520 been such a great baseball season New York through four months, 0:09:54.559 --> 0:09:57.720 and both teams began offus with victories, the Yankee seven 0:09:57.800 --> 0:10:00.520 to two, the Mets seven to three in Asha Kid. 0:10:00.520 --> 0:10:02.680 They spetched their winning streak to seven the night after 0:10:02.800 --> 0:10:06.440 nineteen hits thirteen more for by Brandon Nimo, home runs 0:10:06.440 --> 0:10:09.640 for Pete Alonso and Francisco and door Toback Max Scherzer, 0:10:09.679 --> 0:10:11.800 who beat his old team and proved his seven and two. 0:10:11.880 --> 0:10:14.520 Mets fans have dreamt about the one two points of 0:10:14.640 --> 0:10:18.000 Scherzer and Jacob to Graham the night after Sherzer on 0:10:18.040 --> 0:10:21.840 the mound, It's de Graham tonight, making his long anticipated 0:10:21.880 --> 0:10:24.800 season debuts. Excited. Um, you know, like you said, it's 0:10:24.800 --> 0:10:27.120 been a long time. Um, you know, this has been 0:10:27.160 --> 0:10:30.760 a pretty slow process of coming back. So um, excited 0:10:30.800 --> 0:10:33.200 to be out there. Uh, nerves haven't really said in yet, 0:10:33.200 --> 0:10:35.880 but you know, I'm sure Tuesday, I'll be pretty nervous. 0:10:35.880 --> 0:10:40.079 And uh, I'm feeling it's gonna feel like my debut. Meanwhile, 0:10:40.120 --> 0:10:42.680 at the stadium, familiar script for the Yankees. Four home runs. 0:10:42.720 --> 0:10:45.600 Anthony Rizzo three run home over before the Mariners recorded 0:10:45.640 --> 0:10:48.800 and out his twenty six and one aning later sharing 0:10:48.880 --> 0:10:52.040 off Aaron Judge is forty three. Jose Trevino added two 0:10:52.040 --> 0:10:54.800 solo shots. Domingo Herman got his first win. He may 0:10:54.840 --> 0:10:57.360 be losing his spot on the rotation. Because the Yankees 0:10:57.679 --> 0:11:01.880 before today's trade deadline acquired Rankey Montas from Oakland also 0:11:01.880 --> 0:11:04.679 got leader Luke Rovino. They required another reliever, Scott E. 0:11:04.760 --> 0:11:07.600 Frost from the Cubs. The arbitrator hired to rule on 0:11:07.600 --> 0:11:10.200 de Shaun Watson game a six games suspension for his 0:11:10.280 --> 0:11:13.199 sexualness conduct with the fuss, but under terms of the 0:11:13.280 --> 0:11:16.079 labor deal, the NFL, who wanted a longer suspension can 0:11:16.120 --> 0:11:19.240 appeal basically to themselves, and then can add more games, 0:11:19.240 --> 0:11:21.680 which would lead to a lawsuit by the unions, though 0:11:21.679 --> 0:11:25.640 the Watson stories likely not over. Yeah, johns Dash Bloomberg 0:11:25.640 --> 0:11:29.080 sports all right, John, thank you. SMP futures down down 0:11:29.120 --> 0:11:31.640 thirty one point, Style futures down a hundred sixty nine. 0:11:31.720 --> 0:11:34.840 Nastack futures are lower by a hundred twenty eight points. 0:11:35.120 --> 0:11:38.080 The Jackson Germany down eight tenths per cent. Cap in 0:11:38.120 --> 0:11:41.840 Paris down six tenths percent. Tenure Treasury is up six 0:11:41.920 --> 0:11:44.600 thirty seconds. The yield two point five five percent yield 0:11:44.640 --> 0:11:47.640 on the two year two point eight five percent. Nime 0:11:47.760 --> 0:11:50.120 X crew down nine tenths per cent, or eighty six 0:11:50.160 --> 0:11:52.960 cents at ninety three dollars three cents of barrel with 0:11:53.040 --> 0:11:56.439 Geo political risk taking the four this morning. We speak 0:11:56.520 --> 0:12:00.960 next with Liz Anne Saunders, chief investment strategist at Charles Schwab. 0:12:01.160 --> 0:12:09.080 This is Bloomberg Bloomberg eleven three oh weather, sunshine, maybe 0:12:09.080 --> 0:12:11.840 a shower thundershower going up to near ninety today and 0:12:11.960 --> 0:12:15.000 tomorrow when it will be sunny, sunny, hot, humid for 0:12:15.120 --> 0:12:18.240 Thursday highs then your five right now seventy one in 0:12:18.240 --> 0:12:24.920 Central Park markets, headlines and breaking news twenty four hours 0:12:24.920 --> 0:12:28.040 a day at Bloomberg dot Com, Bloomberg Business Out, and 0:12:28.200 --> 0:12:37.599 at Bloomberg Quicktape. Chris is a Bloomberg Business Flash and 0:12:37.720 --> 0:12:40.719 I'm Karen Moscow socks and US stock index futures are 0:12:40.720 --> 0:12:43.840 falling him at escalating US China tension over Taiwan and 0:12:43.880 --> 0:12:47.439 deepening Rory's about a global economic slowdown driving investors into 0:12:47.480 --> 0:12:50.200 the safety of government balls. We checked the markets every 0:12:50.200 --> 0:12:53.240 fifteen minutes throughout the trading day on Bloomberg Guess and 0:12:53.280 --> 0:12:55.800 p futures down thirty five points down, features down a 0:12:55.840 --> 0:12:59.000 hundred ninety six and nastack futures down one thirty nine. 0:12:59.320 --> 0:13:02.400 The Dacks in Germany is down about one percent. Ten 0:13:02.480 --> 0:13:05.040 year treasury of ten thirty seconds, he'll two point five 0:13:05.040 --> 0:13:07.400 three percent. That yell downe a two year two point 0:13:07.440 --> 0:13:10.560 eight four percent. Nine Max Screwed oil is down one 0:13:10.600 --> 0:13:13.080 point two percent on a dollar eleven at ninety two 0:13:13.120 --> 0:13:15.880 dollars seventy eight cents of barrel comic schooled up three 0:13:15.880 --> 0:13:18.520 tenth percent or four dollars ninety cents. A seventeen ninety 0:13:18.559 --> 0:13:21.960 two sixty announced the euro one point two three six 0:13:22.000 --> 0:13:24.280 against the dollar. British found one point to two oh 0:13:24.360 --> 0:13:27.880 nine and again one thirty point nine zero. I'm looking 0:13:27.880 --> 0:13:30.480 at bitcoin this morning, down one and a half percent 0:13:30.559 --> 0:13:33.559 at twenty two thousand and seven hundred seventy five dollars. 0:13:33.800 --> 0:13:35.840 Today we are watching for the jolts and jobs report 0:13:35.880 --> 0:13:38.000 at a ten o'clock Wall Street time, and that's a 0:13:38.000 --> 0:13:40.800 Bloomberg business flash. Now here's Michael Barr with more on 0:13:40.880 --> 0:13:43.240 what's going on around in the world. Michael Karen, thank 0:13:43.280 --> 0:13:45.920 you very much. President Jill Biden has announced that al 0:13:46.040 --> 0:13:49.080 kind of leader I'm in als Wharre has been killed 0:13:49.120 --> 0:13:51.839 in a U. S drone strike and cobble during an 0:13:51.840 --> 0:13:55.600 evening address. Biden is hailing the operation as delivering justice 0:13:56.040 --> 0:13:59.400 while expressing hope that it brings one more measure of closure. 0:13:59.440 --> 0:14:02.200 It's a family are the victims of the nine eleven attacks. 0:14:02.600 --> 0:14:05.880 How Speaker Nancy Pelosi is expected to land in Taiwan 0:14:06.000 --> 0:14:09.719 today and defiance of Chinese threats, The trip would make 0:14:09.760 --> 0:14:14.000 Pelosi the highest ranking American politician to visit the island 0:14:14.080 --> 0:14:17.160 in twenty five years in baseball. The Yankees beat the 0:14:17.160 --> 0:14:20.560 Mariners seven two, the Mets beat the national seven three. 0:14:20.880 --> 0:14:24.000 The Red Sox and Orioles were also winners. The Giants 0:14:24.120 --> 0:14:27.080 lost to the Dodgers eight to Global News twenty four 0:14:27.120 --> 0:14:30.440 hours a day on air and on Bloomberg Quicktake, powered 0:14:30.440 --> 0:14:33.440 by more than twenty seven under journalist and analysts and 0:14:33.520 --> 0:14:35.760 more than a hundred twenty countries. I'm Michael bar This 0:14:35.800 --> 0:14:37.880 is Bloomberg. Nathan all right, Michael, thank you. It's six 0:14:38.000 --> 0:14:41.440 nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:41.480 --> 0:14:44.400 This is a Bloomberg Daybreak on a risk off morning. 0:14:44.400 --> 0:14:47.720 We are joined by liz Anne Saunders, chief investment strategist 0:14:47.760 --> 0:14:50.160 at Charles Schwab. Liz An, it's really nice to have 0:14:50.200 --> 0:14:52.640 you back on the show with us. I'm really curious 0:14:52.640 --> 0:14:54.800 what you make of this market reaction, where it does 0:14:54.840 --> 0:14:58.120 seem as though geopolitical risk is getting the attention of 0:14:58.120 --> 0:15:01.960 investors this morning. It is the extent you point to 0:15:02.080 --> 0:15:05.360 one particular thing for a pre open move in the market. 0:15:05.360 --> 0:15:07.560 There's obviously always lots of forces, and I think the 0:15:07.600 --> 0:15:12.120 markets strength suggests that there might be um some investors 0:15:12.120 --> 0:15:15.560 looking for excuses to take some profits. So some of 0:15:15.600 --> 0:15:18.120 it has to do with just the nature of this 0:15:18.360 --> 0:15:21.520 rally and and now having I think a reason to 0:15:21.720 --> 0:15:25.280 trim and that's somewhat typical in these bear market rallies. Okay, 0:15:25.280 --> 0:15:28.040 so do you see further momentum then for the bear 0:15:28.120 --> 0:15:32.360 market rally beyond what's happening this morning. I think we 0:15:32.960 --> 0:15:36.040 have the strong likelihood that we continue to see some 0:15:36.120 --> 0:15:38.400 of these rallies. We've had several of them since the 0:15:38.400 --> 0:15:42.040 bear market began. This one has had some improvement in 0:15:42.120 --> 0:15:45.160 breath statistics, but you still have a very anemic percent 0:15:45.240 --> 0:15:48.920 of stocks that have moved to new highs, and you 0:15:48.920 --> 0:15:52.480 would expect to see a bit more of a burst there. Typically, 0:15:53.160 --> 0:15:57.480 I think the market has largely priced in the tighter 0:15:57.480 --> 0:16:01.680 financial conditions environment, maybe even the slowing in economic growth. 0:16:01.840 --> 0:16:04.320 But what I don't think the market is yet priceton 0:16:04.840 --> 0:16:08.400 is what is likely coming in terms of weakening employment 0:16:08.440 --> 0:16:13.280 backdrop and a weaker earnings and profit margin backdrop, which 0:16:13.320 --> 0:16:16.160 hasn't shown up in earnest in second quarter, but I 0:16:16.200 --> 0:16:19.520 think we'll start to be reflected in estimates looking at 0:16:19.560 --> 0:16:21.960 the rest of the year. Interesting that sort of leads 0:16:22.040 --> 0:16:25.120 us to what we could get from the jobs report 0:16:25.200 --> 0:16:28.200 coming out this Friday. What are your expectations there? Do 0:16:28.240 --> 0:16:30.640 you think we'll start to see some signs of weakness 0:16:30.680 --> 0:16:35.440 in the labor market. So expectation is is in the 0:16:35.520 --> 0:16:38.600 two hundred and fifty or so range, and that's down 0:16:38.640 --> 0:16:41.440 from the high three hundreds from last month, so that 0:16:41.480 --> 0:16:47.000 would continue to market deceleration. And I think the the 0:16:47.120 --> 0:16:52.520 sort of innards of the job's report will be increasingly important, 0:16:52.960 --> 0:16:57.600 everything from hours worked, the differential between the payroll survey 0:16:57.600 --> 0:17:01.720 and the household survey that was dark last month when 0:17:01.760 --> 0:17:05.440 we saw the better unexpected payrolls but negative household and 0:17:06.160 --> 0:17:07.800 the two out of the last three months for the 0:17:07.840 --> 0:17:11.560 household survey from which the unemployment rate is calculated were negative. 0:17:11.600 --> 0:17:13.520 And the only reason why the unemployment rate didn't go 0:17:13.600 --> 0:17:16.280 up is because we saw a week or labor force 0:17:16.359 --> 0:17:19.879 participation rates. So I think it's beyond just the headlines 0:17:19.960 --> 0:17:22.720 of how many jobs were created, what is the unemployment rate, 0:17:23.200 --> 0:17:24.960 but the inner workings of what's going on in the 0:17:25.040 --> 0:17:27.880 labor market, And of course preceding that on Thursday will 0:17:27.960 --> 0:17:31.480 be claims, and unemployment claims are now up by a 0:17:31.480 --> 0:17:34.240 percentage amount from the trough that is well beyond the 0:17:34.320 --> 0:17:39.600 average for recessions historically. So yes, labor market that is important, 0:17:39.640 --> 0:17:41.639 but you got to go beyond the headlines. Now, we 0:17:41.720 --> 0:17:44.879 got further signs of economic slowdown just this week from 0:17:44.920 --> 0:17:48.000 the I s M Manufacturing Index. Is the FEDS starting 0:17:48.040 --> 0:17:51.439 to get the reduction in economic activity that it's looking 0:17:51.520 --> 0:17:56.359 for from aggressive policy? Yes, But as as Powell and 0:17:56.400 --> 0:17:59.800 many other Fed speakers have said, in terms of the 0:18:00.040 --> 0:18:04.240 actual inflation data, whether it's PC, whether it's cp I, 0:18:04.320 --> 0:18:07.880 they want to see a series of lower readings. So yeah, 0:18:08.359 --> 0:18:11.639 the leading indicators, including what was embedded in the I 0:18:11.880 --> 0:18:13.960 s M data that came out yesterday with the big 0:18:14.040 --> 0:18:16.960 drop and prices paid the big drop, and supplier deliveries. 0:18:17.280 --> 0:18:19.640 I put a chart out on Twitter today of shipping 0:18:19.800 --> 0:18:24.040 rates from Shanghai to Los Angeles. All suggests we're going 0:18:24.119 --> 0:18:27.480 to start to see an easing and inflation. But given 0:18:27.480 --> 0:18:31.280 their emphasis on series, um, I don't think that this 0:18:31.400 --> 0:18:33.960 is a one time deal. Where as soon as you 0:18:34.040 --> 0:18:38.000 see the peak is in on on headline CPI or 0:18:38.000 --> 0:18:40.520 any other measure, that they're going to feel the ability 0:18:40.560 --> 0:18:43.240 to kind of take their foot off the break. And 0:18:43.320 --> 0:18:46.199 I think that may be what the market might be 0:18:46.280 --> 0:18:48.840 having a bit wrong. Is this assumption that we're going 0:18:48.880 --> 0:18:51.400 to sooner rather than later get a FED pivot, get 0:18:51.480 --> 0:18:54.120 some sort of FED put um. I think that may 0:18:54.160 --> 0:18:57.240 be a bit too optimistic an assumption. Only about thirty 0:18:57.280 --> 0:18:59.440 seconds left here, Liz. And just to bring it back 0:18:59.440 --> 0:19:01.960 to g O politics, if we do have these rising 0:19:02.000 --> 0:19:05.159 tensions between the US and China, does that have implications 0:19:05.160 --> 0:19:09.040 for a global slowdown? Um? I think it has more 0:19:09.080 --> 0:19:13.439 implications for just the sentiment environment, which has been pretty 0:19:13.480 --> 0:19:20.000 touchy anyway, Things like your policy uncertainty index probably moves 0:19:20.080 --> 0:19:23.520 back higher. So I think it just adds to the mix, 0:19:23.600 --> 0:19:26.399 even if it's not an immediate direct impact on the 0:19:26.400 --> 0:19:29.359 global economy. Thanks so much, Lizien, again, great having you 0:19:29.400 --> 0:19:32.760 with us this morning. Liz Ane Saunders, chief investment strategist 0:19:32.800 --> 0:19:36.080 at Charles Schwab. Right now, SMP futures are lower by 0:19:36.119 --> 0:19:39.520 thirty three points, down futures down eight, and NASDAC futures 0:19:39.520 --> 0:19:42.600 down a hundred thirty five points. The tenure Treasury is 0:19:42.680 --> 0:19:45.040 up nine thirty seconds now with the yield two point 0:19:45.080 --> 0:19:47.879 five three percent. The yield on the two year two 0:19:47.880 --> 0:19:51.080 point eight five NIME ex scrudes down one percent or 0:19:51.119 --> 0:19:54.679 ninety seven cents ninety two dollars two cents a barrel, 0:19:54.800 --> 0:19:57.359 just to head more on the market reaction to speaker 0:19:57.359 --> 0:20:01.359 Pelosi's Asia trip, and Twitter goes that elon Musk's Inner Circle. 0:20:01.520 --> 0:20:03.720 Five Things you need to notice start your day on 0:20:03.800 --> 0:20:09.320 Bloomberg day Break Bloomberg eleven three oh weather sunshine, maybe 0:20:09.320 --> 0:20:11.960 a shower of thundershower today with a high near ninety degrees, 0:20:12.040 --> 0:20:15.920 mostly sunny, near ninety Tomorrow, sunny, hot, humid Thursday with 0:20:15.960 --> 0:20:18.679 a high then near nine right now seventy one in 0:20:18.760 --> 0:20:25.840 Central Park. Broadcasting live from the Bloomberg Interactive Broker Studio 0:20:25.920 --> 0:20:29.119 in New York. Bloomberg Living Free to Washington, d C, 0:20:29.320 --> 0:20:33.000 Bloomberg N one to Boston, Bloomberg one oh six one 0:20:33.119 --> 0:20:36.560 to San Francisco, Bloomberg N sixty to the country, Sirius 0:20:36.720 --> 0:20:39.879 XM Cho one nine and around the globe the Bloomberg 0:20:39.920 --> 0:20:44.360 business in Bloomberg Radio dot Com. This is Bloomberg Daybreak, 0:20:50.200 --> 0:20:52.520 six thirty on Wall Street. Good morning, I'm Nathan Hager 0:20:52.840 --> 0:20:55.439 and I'm Karen Moscow. We are just about three hours 0:20:55.480 --> 0:20:57.600 away from the open of US trading. Time for the 0:20:57.600 --> 0:20:59.720 five things that you need to notice start your day. 0:21:00.040 --> 0:21:03.920 Brought to you by Interactive Brokers. Interactive Brokers Global Analysts 0:21:03.960 --> 0:21:07.440 helps you find you global investment opportunities. To diversify your 0:21:07.520 --> 0:21:11.360 portfolio and discover undervalued companies that may have greater growth potential. 0:21:11.640 --> 0:21:14.720 Try ivy Care Global Analyst today at ib care dot 0:21:14.720 --> 0:21:18.879 com slash g a up first. President Biden addressed the 0:21:19.000 --> 0:21:22.280 nation last night, saying a US drown strike in Afghanistan 0:21:22.400 --> 0:21:25.480 killed Al Kinda leader i'm An al Zawari, one of 0:21:25.520 --> 0:21:28.359 the planners of the nine eleven attacks. The President thanked 0:21:28.400 --> 0:21:31.840 experts and operatives who brought justice to al Zawari is 0:21:31.880 --> 0:21:35.960 thanks to their extraordinary persistence of skill that this operation 0:21:36.000 --> 0:21:39.720 was success. They made its all safer. And President Biden 0:21:39.800 --> 0:21:42.240 said he authorized this strike and that there were no 0:21:42.359 --> 0:21:46.200 civilian casualties. And we're also closely following. Nancy Pelosi is 0:21:46.200 --> 0:21:48.920 expected to visit to Taiwan this morning care and China 0:21:49.080 --> 0:21:51.520 is threatening military action over it, but the House Speaker 0:21:51.600 --> 0:21:54.359 should make the trip safely. That's according to US National 0:21:54.400 --> 0:21:58.000 Security Council spokesperson John Kirby. We have indications that the 0:21:58.080 --> 0:22:01.960 Chinese might take some actions in a military way to 0:22:02.080 --> 0:22:05.399 protest a trip by the Speaker. What I wanted to 0:22:05.440 --> 0:22:07.760 make clear today was that we are going to make 0:22:07.800 --> 0:22:10.280 sure that if the Speaker decides to go to Taiwan, 0:22:10.440 --> 0:22:12.800 she can do so safely. John Kirby with the National 0:22:12.800 --> 0:22:15.760 Security Council spoke with our Washington correspondent Joe Matthew and 0:22:15.760 --> 0:22:19.160