WEBVTT - Bloomberg Daybreak: August 3, 2022 - Hour 1 (Radio) 0:00:02.880 --> 0:00:06.039 Live from the Bloomberg Interactive Burger Studios. Is this Bloomberg 0:00:06.120 --> 0:00:09.280 day Break for a Wednesday, August three, two Coming up 0:00:09.280 --> 0:00:13.040 this hour, Nancy Pelosi vows the US will not abandon Taiwan. 0:00:13.119 --> 0:00:15.800 Will have the latest from the House Speaker's controversial frame. 0:00:15.920 --> 0:00:19.040 He also have key results from five state primaries, Plus 0:00:19.079 --> 0:00:22.159 feed officials double down on plants to tighten policy, and 0:00:22.200 --> 0:00:24.279 shares of chip maker a m D slump on a 0:00:24.360 --> 0:00:27.920 lackluster forecast. The Senate has passed the burn Pit Bill 0:00:28.000 --> 0:00:31.160 after an outcry from Vetteran's Plus the January six missing 0:00:31.200 --> 0:00:34.599 text case widens. I'm Michael Barner. More ahead, I'm John 0:00:34.640 --> 0:00:36.640 stash Our in sports, more trains to the Mets and 0:00:36.720 --> 0:00:40.000 Yankees they both lost their games, and Dodgers broadcasting legend 0:00:40.080 --> 0:00:45.519 Vince Gully has passed away. That's all. Strad Ahead on 0:00:45.640 --> 0:00:48.880 Bloomberg day Break on Bloomberg eleven three on New York, 0:00:49.000 --> 0:00:53.559 Bloomberg on Washington, d C, Bloomberg one oh six one, Boston, 0:00:53.680 --> 0:00:58.200 Bloomberg nine sixties and Francisco Syrius XM one nineteen and 0:00:58.280 --> 0:01:01.360 around the world on Bloomberg deal dot com and via 0:01:01.440 --> 0:01:09.319 the Bloomberg Business add Good morning, I'm Nathan Hagard and 0:01:09.319 --> 0:01:12.760 I'm Karen mouscal at US DOT Index futures are higher 0:01:12.800 --> 0:01:14.560 this morning. We are coming up to five o one 0:01:14.560 --> 0:01:16.600 on Wall Street, and we checked the markets every fifteen 0:01:16.640 --> 0:01:19.440 minutes throughout the trading day on bloomberg S and P 0:01:19.640 --> 0:01:22.840 futures up about eight points down, futures up eighty four. 0:01:23.240 --> 0:01:25.880 Nasdack futures are a little changed, and a ten year 0:01:25.880 --> 0:01:28.920 treasury little change yield two point seven four percent. They 0:01:29.000 --> 0:01:32.080 yield on the two year three point oh six percent. 0:01:32.160 --> 0:01:36.360 The euro one point eight against the dollar, and bitcoin 0:01:36.760 --> 0:01:38.920 is at one point two percent to twenty three thousand, 0:01:38.920 --> 0:01:41.760 three hundred dollars. Nathan well Karen investors will be keeping 0:01:41.760 --> 0:01:45.000 an eye on what's happening in Taiwan. Nancy Pelosi's visit 0:01:45.080 --> 0:01:48.400 is making major waves. The House Speaker is pledging continued 0:01:48.520 --> 0:01:51.760 US support for the island despite new threats from China. 0:01:52.440 --> 0:01:57.360 Now more than ever, America's solidarity with Tom Taiwan is crucial, 0:01:57.800 --> 0:02:00.920 and that is the message we are bringing here today. 0:02:01.160 --> 0:02:04.320 Speaking at a meeting with Taiwanese President sighing when Speaker 0:02:04.320 --> 0:02:07.360 Pelosi talked about the recently past bill to boost American 0:02:07.400 --> 0:02:12.200 made semiconductors the CHIPS Bill. All of these members were 0:02:12.240 --> 0:02:17.320 instrumental in passing that important legislation, which we think offers 0:02:17.440 --> 0:02:23.520 great greater opportunity for US Taiwan economic cooperation. Speaker Pelosi 0:02:23.600 --> 0:02:26.400 is the highest ranking elected US official to visit Taiwan 0:02:26.440 --> 0:02:29.840 in a quarter century. China is responding with new military 0:02:29.919 --> 0:02:33.239 drills surrounding the island and fresh trade curbs on fish, 0:02:33.280 --> 0:02:36.760 fruit and sand for construction Well, Nathan, The timing of 0:02:36.800 --> 0:02:40.240 how Speaker Pelosi's trip is being questioned by some, including 0:02:40.280 --> 0:02:43.760 Douglas Lute, a former US Ambassador to NATO. I'm not 0:02:43.880 --> 0:02:47.400 sure exactly what benefit we're getting from the trip, and 0:02:47.520 --> 0:02:50.200 it comes to the comes to a sensitive time, just 0:02:50.480 --> 0:02:56.120 as the three senior Executive Branch officials have regained contact 0:02:56.120 --> 0:02:59.959 with their Chinese counterparts have begun to discuss the ram 0:03:00.000 --> 0:03:03.280 aifications of the war in Ukraine. So it sort of 0:03:03.320 --> 0:03:05.880 sets us back, I think, from some momentum that's been 0:03:05.960 --> 0:03:08.880 established in the last several weeks. And former US Ambassador 0:03:08.919 --> 0:03:11.839 to NATO Douglas Lewt spoke with our Washington correspondent Joe 0:03:11.880 --> 0:03:14.880 Matthew on Bloomberg Sound on Catch the Program weekdays at 0:03:14.880 --> 0:03:18.399 five PM Easter on Bloomberg Radio. Another major political story 0:03:18.440 --> 0:03:21.400 we're following this morning. Karen involves some key primary races 0:03:21.440 --> 0:03:23.680 across the country, and we get the results from Amy 0:03:23.760 --> 0:03:28.120 Morris in our Bloomberg newsroom in Washington. We begin in Michigan, 0:03:28.120 --> 0:03:32.120 where Trump back Republican commentator Tutor Dixon faces Democratic comment 0:03:32.160 --> 0:03:35.120 Gretchen Whitmer and the race for governor in November. Dixon 0:03:35.120 --> 0:03:38.400 won the nomination with of the vote. Three House Republicans 0:03:38.440 --> 0:03:41.560 who voted to impeach Donald Trump, Michigan's Peter Meyer and 0:03:41.640 --> 0:03:44.920 Washington's Jamie Herrera Butler and Dan new House all lost 0:03:44.960 --> 0:03:48.920 their primaries to Trump endorsed candidates. In Missouri, Republican Eric 0:03:48.920 --> 0:03:51.800 Schmidt won the nomination with nearly forty six percent of 0:03:51.840 --> 0:03:56.120 the vote, derailing former Governor Eric Gryden's political comeback. In Arizona, 0:03:56.160 --> 0:03:59.120 Blake Masters won the GOP primary with seven percent of 0:03:59.160 --> 0:04:02.760 the vote, and he'll face incumbent Senator Mark Kelly in November. 0:04:02.800 --> 0:04:05.960 In Kansas, fifty nine percent of voters rejected a proposal 0:04:06.000 --> 0:04:09.680 to outlaw abortion. In Washington, I maybe Morris Bloomberg daybreak, 0:04:09.680 --> 0:04:11.360 All right, Amy, thank you well, a little more on 0:04:11.400 --> 0:04:14.720 that abortion vote. Out of Kansas, fifty of voters chose 0:04:14.760 --> 0:04:17.359 to maintain abortion rights in the state. Turn Out in 0:04:17.440 --> 0:04:21.320 Kansas far exceeded other contests in recent years, totally nearly 0:04:21.400 --> 0:04:24.960 twice as many ballots as in twenty eighteens primary election. 0:04:25.240 --> 0:04:27.880 Let's turn back to markets now, Karen. They are stabilizing 0:04:27.920 --> 0:04:31.360 this morning after yesterday's declines fueled by anxiety over US 0:04:31.440 --> 0:04:34.880 China relations and hawkish comments from the Fed. In fact, 0:04:34.920 --> 0:04:37.240 four FED officials pushed back at the idea that the 0:04:37.240 --> 0:04:40.120 central bank may pivot away from tightening. They say there 0:04:40.200 --> 0:04:43.800 is no sign inflation is easing. Here's Cleveland's Lorettamester. You 0:04:43.880 --> 0:04:48.279 don't talk about recession per se, it's are we growing 0:04:48.360 --> 0:04:52.359 below or above trend? And you know my forecast for 0:04:52.400 --> 0:04:54.719 this year is that will be growing below trend. But 0:04:54.839 --> 0:05:02.200 that's necessary in order to get price increases inflation under control. 0:05:02.360 --> 0:05:06.320 Cleveland's or At Semester helped trigger a surgeon treasury yields yesterday. St. 0:05:06.360 --> 0:05:09.000 Louis Fed President James Bullard says the FED is up 0:05:09.040 --> 0:05:12.719 to the task of tackling inflation. So modern central banks, 0:05:12.839 --> 0:05:16.000 I will try to convince you have more credibility than 0:05:16.040 --> 0:05:19.919 their counterparts in the nineteen seventies. Because of this, it 0:05:20.000 --> 0:05:22.320 seems like the FED and the ECB may be able 0:05:22.400 --> 0:05:25.600 to disinflate in an orderly manner and we'll get a 0:05:25.640 --> 0:05:28.720 relatively soft landing. St. Louis FED President Jim Bull had 0:05:28.760 --> 0:05:31.800 reiterated the Central Bank should probably increase its benchmark rates 0:05:31.800 --> 0:05:33.440 to as high as four percent by the end of 0:05:33.440 --> 0:05:36.119 the year. Nathan several stocks in the move this morning. 0:05:36.120 --> 0:05:39.080 Shares have Advanced micro Devices down five and a half percent. 0:05:39.160 --> 0:05:42.080 That's after the ship maker gave a lukewarm sales four cast. 0:05:42.120 --> 0:05:45.520 The story from Bloomberg Shirley Pillett. It indicates that market 0:05:45.520 --> 0:05:48.240 share gains against Intel will not make up for a 0:05:48.320 --> 0:05:51.720 decline in PC demand, and he said revenue in the 0:05:51.760 --> 0:05:54.880 period will be about six point seven billion dollars. That 0:05:55.000 --> 0:05:57.880 compares with an average annalists estimate of six point eight 0:05:57.920 --> 0:06:01.520 one billion. Under CEO les So Sue am D have 0:06:01.640 --> 0:06:05.240 been taking market share from Intel and benefiting from demand 0:06:05.279 --> 0:06:08.520 for its new powerful server chips, but the outlook shows 0:06:08.560 --> 0:06:11.960 that the company is not insulated from the slowing PC industry, 0:06:12.240 --> 0:06:15.400 which is still the biggest market for its products. In 0:06:15.520 --> 0:06:19.120 New York, Charlie Pellett, Bloombird, debreak. Alright, Charlie. Thanks. Let's 0:06:19.120 --> 0:06:21.040 take an look at some other stocks in the spotlight 0:06:21.080 --> 0:06:23.719 this morning, Live with Bloomberg's John Tucker, Hey John, and 0:06:23.839 --> 0:06:26.840 the arab NB shares slumping in the pre market, down 0:06:26.839 --> 0:06:30.400 over seven percent, Nathan the company missing estimates on bookings 0:06:30.400 --> 0:06:33.080 shares a match plunging this morning, the parent company of 0:06:33.160 --> 0:06:35.960 dating apps like Tender, giving a forecast for revenue of 0:06:36.000 --> 0:06:39.160 the current quarter that falls short of estimates, growth being 0:06:39.160 --> 0:06:42.320 slowed by the fallout from COVID nineteen. PayPal shares there 0:06:42.320 --> 0:06:45.880 are up ten percent pre market after saying activist investor 0:06:45.920 --> 0:06:49.400 Elliott Investment Management now one of the largest shareholders, and 0:06:49.440 --> 0:06:52.800 that cost cutting will save nine million this year. And 0:06:52.960 --> 0:06:56.440 Robert hood market shares little changed. They announced they're eliminating 0:06:56.480 --> 0:06:59.200 almost a quarter of their workforce. Live in New York. 0:06:59.200 --> 0:07:02.080 I'm John Tucker, Bloomberg, Debreak, Tom, thank you. Oil also 0:07:02.120 --> 0:07:04.320 and focus this morning. Traders waiting to see whe they're 0:07:04.320 --> 0:07:07.120 OPEC will heat at US call to increase oil supplies. 0:07:07.120 --> 0:07:10.120 The OPEC plus coalition meeting virtually today, and a Bloomberg 0:07:10.200 --> 0:07:12.840 survey suggests the alliance is more likely to keep output 0:07:12.960 --> 0:07:17.160 steady in September. Straight ahead, your latest local headlines, plus 0:07:17.360 --> 0:07:23.640 a check of sports. This is Bloomberg, Thanks Haring. It's 0:07:23.680 --> 0:07:25.840 five oh seven on Wall Street. We're seventy four degrees 0:07:25.920 --> 0:07:29.200 in Central Park. Pretty decent start on the roads. Will 0:07:29.240 --> 0:07:32.040 fill you in on that in traffic shortly. First, Michael 0:07:32.040 --> 0:07:34.240 Barr is here with what's going on in New York 0:07:34.280 --> 0:07:36.720 and around the world. Good morning, Michael, Good morning Nathan. 0:07:36.760 --> 0:07:40.240 The Senate passed the Packed Act aimed at helping veterans 0:07:40.240 --> 0:07:43.080 who have been exposed to toxic burn pits. The bill 0:07:43.160 --> 0:07:46.440 passed and an eight six to eleven vote, overcoming Republican 0:07:46.480 --> 0:07:51.000 claims it contains loopholes that would allow indiscriminate spending. Senate 0:07:51.040 --> 0:07:54.840 Democratic Leader Chuck Schumer spoke after the bill passed finally, 0:07:55.480 --> 0:08:00.440 at long last, America lived up to its ideals by saying, 0:08:00.720 --> 0:08:04.840 to our veterans who have been exposed to toxic chemicals 0:08:04.880 --> 0:08:09.520 from burn pitts, we have your back. Senator Schumer says 0:08:09.520 --> 0:08:12.880 the bill will help thousands of sick US veterans. New 0:08:12.960 --> 0:08:16.160 York Congresswoman Carol and Maloney said she didn't believe that 0:08:16.240 --> 0:08:20.560 President Joe Biden would run for re election in Maloney 0:08:20.640 --> 0:08:24.120 is the latest Democratic official to question whether their party's 0:08:24.200 --> 0:08:27.000 leader will seek a second term. The comments came during 0:08:27.040 --> 0:08:30.120 a New York One debate last evening among candidates vine 0:08:30.200 --> 0:08:34.480 for the Democratic primary nomination in New York's twelfth congressional district. 0:08:34.840 --> 0:08:38.360 Because of redistricting, Maloney is running against fellow New York 0:08:38.360 --> 0:08:43.280 House heavyweight Gerald Nadler and lawyer Saras Ptel. The Defense 0:08:43.320 --> 0:08:47.199 Department electronically wiped the phones of some former top officials 0:08:47.320 --> 0:08:52.120 who served under then President Donald Trump. Bloomberg's d Baxter reports, 0:08:52.280 --> 0:08:54.520 and the Department of Defense is confirming that a d 0:08:54.600 --> 0:08:57.640 o J investigation of the missing January six tax is 0:08:57.679 --> 0:09:02.600 now confirmed that, along with accidentally deleting some texts, some 0:09:02.880 --> 0:09:08.640 phones were purposefully wiped after January six. Government lawyers made 0:09:08.640 --> 0:09:11.480 that admission in court filings tied to the Freedom of 0:09:11.520 --> 0:09:15.600 Information Act lawsuit, and the Oversight Group is urging Attorney 0:09:15.600 --> 0:09:19.520 General Merritt Garland to investigate DODS actions in allowing the 0:09:19.559 --> 0:09:23.680 destruction of records potentially relevant to a significant matter of 0:09:23.800 --> 0:09:28.000 national attention and historical importance. In San Francisco, I'm at 0:09:28.000 --> 0:09:30.960 Baxter Bloomberg Daybreak. The State Department of War an American 0:09:31.000 --> 0:09:35.040 citizens traveling overseas of possible retaliation by Al Qaina and 0:09:35.040 --> 0:09:38.480 its supporters after the organization's leader was killed in a 0:09:38.600 --> 0:09:41.760 US drone strike. Global News twenty four hours a day 0:09:41.760 --> 0:09:44.640 on air and on Bloomberg Quicktake, powered by more than 0:09:45.080 --> 0:09:47.640 seven hundred journalists and analysts in more than a hundred 0:09:47.679 --> 0:09:50.760 twenty countries. I'm Michael Barr, and this is Bloomberg, Nathan. 0:09:50.800 --> 0:09:57.520 Thank you, Michael five O nine on Wall Street time 0:09:57.559 --> 0:10:00.800 for the Bloomberg Sports Update. Good morning, John Stanh, Good morning, Nathan. 0:10:00.880 --> 0:10:03.720 Vince Scully has passed away. The New York native began 0:10:03.800 --> 0:10:07.720 calling Brooklyn Dodgers game shortly after he graduated from Fordham, 0:10:07.720 --> 0:10:10.640 and he kept the job for sixty seven years. The 0:10:10.679 --> 0:10:14.160 owner of that soothing voice with an unparalleled ability to 0:10:14.240 --> 0:10:16.560 tell stories while calling the game, Vince Scully was a 0:10:16.600 --> 0:10:20.720 true broadcasting legend. Was ninety four Mets and Yankees both 0:10:20.720 --> 0:10:23.400 lost Mets and Washington five to one and their seven 0:10:23.400 --> 0:10:25.800 game win. Stream of Mets fans happy to see Jacob 0:10:25.800 --> 0:10:28.400 Agraham on the mound. Five solid at things. He allowed 0:10:28.400 --> 0:10:30.719 just one run in his season debut. Yankees battled back 0:10:30.720 --> 0:10:32.800 from deficits a couple of times, but in the end 0:10:32.800 --> 0:10:35.480 lost in Seattle at the Stadium eight to six. Yankees 0:10:35.520 --> 0:10:37.880 made a couple more trades before the deadline. They found 0:10:37.880 --> 0:10:40.800 a Joey Gallo taker and the Dodgers. Gallow was a 0:10:40.800 --> 0:10:43.800 complete bust in his time in Pinstripes, betting just one 0:10:43.920 --> 0:10:46.120 fifty nine. The Dodgers gave the Yanks of top pitching 0:10:46.160 --> 0:10:49.440 prospect Clayton Beater in return. Yankees then made a more 0:10:49.480 --> 0:10:52.200 surprising move because George Montgomery has been a solid starting 0:10:52.240 --> 0:10:55.000 pitcher for them, but they did just acquire another starter 0:10:55.040 --> 0:10:57.840 and Frankie Montes, so they ship Montgomery to St. Louis 0:10:57.840 --> 0:11:01.960 for an outfielders Yankees GM and cashman Harrison Vader is 0:11:02.360 --> 0:11:07.920 you know, one of the elite center field UH defenders 0:11:07.920 --> 0:11:12.040 in the game, UM and so he provides a lot 0:11:12.080 --> 0:11:16.400 of lanes for us, I think for our manager when 0:11:16.400 --> 0:11:18.959 he's when he's health in. Vader currently has a foot injury. 0:11:18.960 --> 0:11:20.480 He's a New York native, went to high school at 0:11:20.520 --> 0:11:23.640 Horace Mann and the Bronx. Matt's acquired two players yesterday 0:11:23.640 --> 0:11:26.360 outfielder Darren Rof. They sent J. D. Davis to the 0:11:26.400 --> 0:11:29.480 Giants for him Mets also picked up reliever Michael Gibbons 0:11:29.520 --> 0:11:31.400 from the Cubs. Of course, the big trade yesterday with 0:11:31.480 --> 0:11:35.319 Juan Soto going from Washington to Same Diego. John Skashwar 0:11:35.360 --> 0:11:39.200 Bloomberg Sports. Okay, John, thank you. Right now. SMP futures 0:11:39.320 --> 0:11:42.240 are up eleven points, Staff futures up a hundred nine, 0:11:42.320 --> 0:11:45.720 Nastack futures are higher by twenty three points, the tenure 0:11:45.760 --> 0:11:48.400 treasury is up three thirty seconds, the yield two point 0:11:48.480 --> 0:11:51.760 seven three percent, yield on the two year three point 0:11:51.880 --> 0:11:55.000 zero six percent, and nimex crew down one point two 0:11:55.040 --> 0:11:59.120 percent or dollar fifteen six of barrel. Ahead of the 0:11:59.160 --> 0:12:07.800 OPEC plus meeting. You're listening to Bloomberg Daybreak. Bloomberg Daybreak 0:12:07.840 --> 0:12:10.600 brought to you by Peepack Private Wealth Management. Peapack Private 0:12:10.640 --> 0:12:13.040 Wealth Management knows that a portfolio is more than a 0:12:13.120 --> 0:12:15.480 collection of assets. It's a path to your future. Visit 0:12:15.559 --> 0:12:22.480 Peapack Private dot com and begin your financial legacy today, Markets, 0:12:22.600 --> 0:12:25.679 headlines and breaking news twenty four hours a day at 0:12:25.720 --> 0:12:28.520 Bloomberg dot Com, at the Bloomberg Business at and at 0:12:28.559 --> 0:12:37.880 Bloomberg Quick Tape. This is a Bloomberg Business Flash and 0:12:37.960 --> 0:12:40.760 I'm Cara in Moscow stocks are studying as some of 0:12:40.880 --> 0:12:45.680 investor anxiety over tense US China ties eases, while treasury 0:12:45.760 --> 0:12:48.240 yields and are fluctuating a bit after a slide is 0:12:48.240 --> 0:12:51.360 sparked by hawkish Federal Reserve comments. We checked the markets 0:12:51.360 --> 0:12:54.200 over fifteen minutes throughout the trading day on Bloomberg Right now, 0:12:54.320 --> 0:12:56.800 S and P futures are up nineteen points down, futures 0:12:56.880 --> 0:13:00.679 up on two NASDACK futures up sixty the decks in 0:13:00.760 --> 0:13:03.559 Germany's up three tenths of upper set ten. Your treasury 0:13:03.600 --> 0:13:06.120 little change a two point seven four percent They yield 0:13:06.200 --> 0:13:09.240 on the two year three point six percent NIMEX Scrude 0:13:09.240 --> 0:13:11.720 oil is down one point one percent on ninety seven 0:13:11.800 --> 0:13:14.120 cents at ninety three dollars forty six cents of barrel. 0:13:14.360 --> 0:13:16.520 Comic School is down four tenths per cent or seven 0:13:16.559 --> 0:13:19.719 dollars fifty cents. A seventeen eighty two ten announced the 0:13:19.800 --> 0:13:22.840 euro one point o one nine zero against the dollar, 0:13:22.920 --> 0:13:25.280 British found one point two one eight seven, the yen 0:13:25.360 --> 0:13:28.599 at one thirty three point one four and Bitcoin of 0:13:28.720 --> 0:13:30.800 one and a half percent at twenty three thousand, three 0:13:30.920 --> 0:13:34.280 hundred sixty dollars Today, We're watching for reports on durable 0:13:34.320 --> 0:13:37.320 goods orders and factory orders at at ten o'clock Wall Street, Time, 0:13:37.640 --> 0:13:40.640 CBS and Maderna are among the company's scheduled to report 0:13:40.720 --> 0:13:43.880 earnings today. That's a Bloomberg Business Flash. Now here's Michael 0:13:43.920 --> 0:13:46.520 Barr with Moore on what's going on around the world. Buckle, 0:13:46.559 --> 0:13:49.800 Good morning, Good morning, Karen. Kansas voters refused to change 0:13:49.880 --> 0:13:52.599 the state constitution to declare there is no right to 0:13:52.760 --> 0:13:56.160 an abortion on a fifty nine to forty one percent vote. 0:13:56.160 --> 0:13:59.520 The state Supreme Court decision in twenty nine that grantede 0:13:59.559 --> 0:14:04.599 state constitutional abortion rights remains intact. Hall of Fame broadcaster 0:14:04.760 --> 0:14:07.920 Vin Scully has died. Scully with those beautiful delcent tones, 0:14:08.000 --> 0:14:11.880 broadcast baseball games for the Dodgers for sixties seven years. 0:14:12.320 --> 0:14:14.839 Vin Scully was nine four asked for the games. The 0:14:14.920 --> 0:14:17.840 Yankees lost to the Mariners eight six, The Mets lost 0:14:17.920 --> 0:14:21.960 to the Nationals five one, the Orioles and Red Sox one, 0:14:22.360 --> 0:14:26.240 the A's and Giants lost. Global news twenty four hours 0:14:26.280 --> 0:14:29.040 a day on here and on Bloomberg quick Take, powered 0:14:29.080 --> 0:14:31.680 by more than twenty seven hundred journalists and analysts. More 0:14:31.680 --> 0:14:34.520 than a hundred twenty countries. Michael Barr, and this is 0:14:34.600 --> 0:14:37.080 Bloomberg Naken. All right, Michael, thank you. It is five 0:14:37.240 --> 0:14:41.000 nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:41.120 --> 0:14:43.960 This is Bloomberg Daybreak as we continue to follow House 0:14:43.960 --> 0:14:48.280 Speaker Nancy Pelosi's trip through Asia, getting ready to leave Taiwan. 0:14:48.440 --> 0:14:52.280 Now a controversial visit given the tensions between the U 0:14:52.480 --> 0:14:54.640 S and China at the moment, and the current is 0:14:54.760 --> 0:14:58.320 with us this morning, Chief Asia Economics correspondent for Bloomberg 0:14:58.400 --> 0:15:02.280 News joining us Li from Hong Kong, and good morning. 0:15:02.360 --> 0:15:05.160 We've heard all the threats from China. We've seen the 0:15:05.520 --> 0:15:08.120 military drills that are about to begin in the next 0:15:08.280 --> 0:15:11.440 day or so. What is the lasting impact or is 0:15:11.560 --> 0:15:14.960 there a lasting impact from how Speaker Nancy Pelosi's trip 0:15:15.120 --> 0:15:18.920 to Taiwan. Well, the impact will start to become clear 0:15:19.040 --> 0:15:21.760 over queen days and perhaps once she leaves. Like you mentioned, 0:15:22.480 --> 0:15:25.320 there have already been some hints or some signs of 0:15:25.360 --> 0:15:28.920 a trade embargo on some Taiwanese goods. So, for example, 0:15:29.920 --> 0:15:33.960 fruits that China imports in Taiwan are now banned. China, 0:15:34.000 --> 0:15:36.640 of course, is existly saying it linked to speaker closest 0:15:36.720 --> 0:15:39.800 with it, but that's obviously the intention of it. There 0:15:40.040 --> 0:15:42.960 there are other restrictions on two way trades come into place. 0:15:43.040 --> 0:15:46.360 For example, China will not export fine SAMs to Taiwan. 0:15:46.400 --> 0:15:49.600 So there's some measures happening on the economical and trade 0:15:49.640 --> 0:15:51.840 tye of things. Now. Of course, I want to move 0:15:51.880 --> 0:15:55.000 forward to the next three days of military drills and 0:15:55.120 --> 0:15:59.040 exercises that we really ring the island of Taiwan and 0:15:59.320 --> 0:16:01.800 go beyond what happened back in the last strange crisis, 0:16:01.840 --> 0:16:04.920 which is back in They're going to have to monitor 0:16:05.000 --> 0:16:08.480 how that happened. There's already been destruction to supply chains. 0:16:09.280 --> 0:16:13.280 The of course TI want strade. It's so crucial an 0:16:13.400 --> 0:16:16.240 artery for global trade, and there's already our colleagues reporting 0:16:16.520 --> 0:16:18.880 from shipping companies and the like having to make the versions. 0:16:19.160 --> 0:16:22.440 China put out a warning to airlines today that they're 0:16:22.480 --> 0:16:25.480 going to have to avoid dangerous owns around Taiwan. There's 0:16:25.480 --> 0:16:28.840 get notification where they should not fly and airlines are 0:16:29.000 --> 0:16:32.560 just in accordingly. For example Pacific, the Hong Kong Airline 0:16:32.600 --> 0:16:35.080 here have to stock up on it on its fuel 0:16:35.960 --> 0:16:40.160 to to make its trips. So these are near term 0:16:40.640 --> 0:16:44.560 tangible response that are happening here and now. Of course, 0:16:44.760 --> 0:16:47.040 as for what it douilds for the broader spectrum of 0:16:47.400 --> 0:16:50.920 the US and ENNE relations will take longer fume clear, 0:16:50.960 --> 0:16:52.960 But you have to feel at early it's not exactly 0:16:53.000 --> 0:16:55.560 going to be positive for those relations either. Yeah, there 0:16:55.720 --> 0:17:00.240 was some expectations, some groundwork laid for presidents need to 0:17:00.280 --> 0:17:03.160 speak with President Biden from the US and the next 0:17:04.440 --> 0:17:07.800 upcoming weeks, if not months. How does this visit by 0:17:07.840 --> 0:17:13.120 Pelosi potentially complicate that? Well, it raises all manner of questions. 0:17:13.280 --> 0:17:17.840 Can these two governments under one hand, reached the brink 0:17:17.880 --> 0:17:20.280 of a crisis that we apparently are with seeing today 0:17:20.440 --> 0:17:22.080 and yet on the other hand go ahead of a 0:17:22.160 --> 0:17:24.840 sort of a parallel stream of talks where the two 0:17:24.960 --> 0:17:27.440 leaders do plan to meet at some point overcoming months. 0:17:27.440 --> 0:17:29.200 I mean, it would have to assume it is a 0:17:29.280 --> 0:17:33.200 negative for those for those prospects. Nonetheless, we'll have to 0:17:33.280 --> 0:17:36.040 see what kind of language competed a Beating and Washington 0:17:36.160 --> 0:17:39.520 overcoming days. Once this trip wraps up, we've already had 0:17:39.560 --> 0:17:41.680 the four minutes of wine. Whine need talking to me 0:17:41.720 --> 0:17:44.800 about how to cupples the complete force. We know that 0:17:45.200 --> 0:17:49.200 China has been eating very hopeish language, and indeed so 0:17:49.320 --> 0:17:52.200 much in fact that some with Don medicines are said 0:17:52.200 --> 0:17:54.800 to be disappointed by the steps that China has taken 0:17:54.840 --> 0:17:57.439 today will be under pressure to continue with their hopeage 0:17:57.480 --> 0:17:59.359 approaching this. But we'll have to see whether or not 0:17:59.440 --> 0:18:00.720 it can be the to you to a point of 0:18:00.720 --> 0:18:03.240 where two leaders believe that they have the face that 0:18:03.400 --> 0:18:07.159 they can leave again without of course either side being 0:18:07.200 --> 0:18:10.240 seen as have a lost out listed. And of course 0:18:10.320 --> 0:18:13.160 this is coming just a few months before Chinese President 0:18:13.280 --> 0:18:15.359 Hi Jin Ping stands for a third term at the 0:18:15.440 --> 0:18:19.720 Party congress later this year. How does his response to 0:18:19.840 --> 0:18:24.520 what's happening in Taiwan feed into that, Yes, if this 0:18:24.600 --> 0:18:27.919 is where politics really does come into it, because there 0:18:28.000 --> 0:18:31.359 was a UNIL money analysts about this trip that regardless 0:18:31.359 --> 0:18:34.040 President she would have to be seen to respond strongly. 0:18:34.400 --> 0:18:36.440 He he would have to be seen to send hope. 0:18:36.560 --> 0:18:38.840 Should know you as over this. But you know, despite 0:18:38.880 --> 0:18:41.120 all the language in the run up to the visit, 0:18:41.680 --> 0:18:44.600 speaker cloths who went ahead with it, And there is 0:18:44.640 --> 0:18:47.520 is now kind of sub thread coming out of China 0:18:47.840 --> 0:18:51.280 that we reported on that people used the social media 0:18:51.320 --> 0:18:54.040 and the lier disappointed that the China response has been 0:18:54.240 --> 0:18:58.480 robust enough, and there are some prominent accusis in the 0:18:58.560 --> 0:19:01.520 former editor of Global Time Stay back to newspaper. He's 0:19:02.240 --> 0:19:05.040 expressing it agrieved to deployment in terms of what has happened, 0:19:05.640 --> 0:19:08.119 But of course we haven't yet seen the full response. 0:19:08.280 --> 0:19:11.080 Like I said earlier, we're now really into military end 0:19:11.119 --> 0:19:14.920 of this response, and over the next three days, China's 0:19:15.000 --> 0:19:17.639 like they're going to ring that island and they're going 0:19:17.720 --> 0:19:22.119 to let off their live rounds and conduct their exercises 0:19:22.240 --> 0:19:24.560 in on scale much bigger than what happened to you 0:19:24.680 --> 0:19:27.280 that ninety nine crisis. So, as I said, due to 0:19:27.320 --> 0:19:29.720 the kind of substory clean China, that the response so 0:19:29.840 --> 0:19:32.159 far has been somewhat muted, we could argue we have 0:19:32.320 --> 0:19:35.320 yet stiful response and we will do overcoming days. Yeah, 0:19:35.400 --> 0:19:38.480 potentially heading into an even more tense weekend. Thanks for 0:19:38.560 --> 0:19:41.400 this end of course, we'll continue following developments and occurring 0:19:41.440 --> 0:19:44.880 with us. This morning, Chief Asia Economics correspondent for Bloomberg 0:19:44.960 --> 0:19:48.840 News with us from Hong Kong. Right now, SMP futures 0:19:48.880 --> 0:19:51.560 are up eighteen points now, futures up a hundred forty two. 0:19:51.640 --> 0:19:54.440 Nastack futures higher by fifty nine points. Tend your treasury 0:19:54.520 --> 0:19:57.320 up one thirty second deal two point seven four percent, 0:19:57.359 --> 0:20:00.080 and I'm ex screwed down almost one percent. Ninety three All, 0:20:00.080 --> 0:20:03.600 there's fifty two cents of barrel. You're listening to. Bloomberg Daybreak, 0:20:07.760 --> 0:20:09.960 Bloomberg eleven three oh weather, lots of sunshine today, a 0:20:10.040 --> 0:20:12.840 high in your ninety degrees. The heat advisory kicks in 0:20:12.960 --> 0:20:17.560 and tomorrow last till Friday hides both days near right 0:20:17.600 --> 0:20:23.600 now seventy four in Central Park, broadcasting live from the 0:20:23.720 --> 0:20:27.960 Bloomberg Interactive Broker Studio in New York, Bloomberg Living freed 0:20:28.280 --> 0:20:32.320 to Washington, d C. Bloomberg nine to Boston, Bloomberg one 0:20:32.359 --> 0:20:36.040 O six one does San Francisco, Bloomberg sixty to the country, 0:20:36.200 --> 0:20:39.320 Sirius XM chto one nineteen and around the globe the 0:20:39.400 --> 0:20:44.440 Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 0:20:50.359 --> 0:20:52.480 It's five thirty on Wall Street. Good morning. I'm Nathan 0:20:52.520 --> 0:20:55.640 Hagar and I'm Karen Moscow. We are just about four 0:20:55.760 --> 0:20:58.280 hours away from the open of US trading. Let's get 0:20:58.359 --> 0:20:59.680 you up to date in the news you need to 0:20:59.760 --> 0:21:03.000 know at this hour, we begin overseas with investors keeping 0:21:03.000 --> 0:21:05.920 an eye on what's happening in Taiwan, Housepiger and Nancy 0:21:05.960 --> 0:21:08.879 Pelosi is planting a continued to US commitment to the island. 0:21:08.960 --> 0:21:13.840 Despite new threats from China, America's determination to preserve democrats. 0:21:13.880 --> 0:21:18.080 The here in Taiwan and around the world remains iron clad. 0:21:18.400 --> 0:21:20.879 Houspiger and Nancy Pelosi was speaking at a meeting with 0:21:20.960 --> 0:21:24.480 Taiwan's president. China is responding to Pelosi's visit with new 0:21:24.560 --> 0:21:28.200 military drills and fresh trade curbs. Or also following key 0:21:28.240 --> 0:21:31.439 primary races across the country, Karen Tutor Dixon, backed by 0:21:31.560 --> 0:21:34.840 Donald Trump, won of the vote for the Republican nomination 0:21:34.960 --> 0:21:38.679 in Michigan's governor's race. He will face Democratic incumbent Gretchen Whitmer. 0:21:38.680 --> 0:21:41.639 In the fall, three House Republicans who voted to impeach 0:21:41.720 --> 0:21:44.920 the former president lost primaries to Trump endorsed candidates in 0:21:45.000 --> 0:21:49.000 Michigan and Washington State, Republican Eric Schmidt secured nearly forty 0:21:49.640 --> 0:21:52.440 of the vote from Missouri's open Senate seat, derailing former 0:21:52.480 --> 0:21:55.920 Governor Eric Brighten's and in Arizona, Blake Masters will face 0:21:55.960 --> 0:21:59.040 incumbent Senator Mark Kelly after winning the GOP primary with 0:21:59.160 --> 0:22:01.480 thirty seven per cent of the vote. All turning to 0:22:01.560 --> 0:22:05.240 markets now, Nathan, they're stabilizing after yesterday's declines fueled by 0:22:05.280 --> 0:22:09.200 geopolitical tensions and hawkish comments from the FED. Four officials 0:22:09.320 --> 0:22:11.760 pushed back against the narrative that the FED may pivot 0:22:11.800 --> 0:22:16.040 away from tightening. Cleveland President Loretta Mester says officials are 0:22:16.119 --> 0:22:19.600 not necessarily talking about a recession, but an outlook for growth. 0:22:20.200 --> 0:22:22.320 My forecast for this year is that will be growing 0:22:22.400 --> 0:22:26.960 below trend, but that's necessary in order to get price 0:22:27.080 --> 0:22:31.600 increases inflation under control. The comments from Cleveland FED President 0:22:31.680 --> 0:22:35.400 Loretta Mester helped trigger a surgeon treasury yields yesterday. Incorporate 0:22:35.480 --> 0:22:38.360 news this morning. Shares of Advanced micro Devices are down 0:22:38.400 --> 0:22:41.080 about five per cent after the company gave a lukewarm 0:22:41.160 --> 0:22:44.200 sales forecast. Other stocks are in the spotlight this morning 0:22:44.240 --> 0:22:46.639 as well, and Bloomberg's John Tucker joins US Live with 0:22:46.720 --> 0:22:48.520