Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: We begin with a slew of news involving China this morning.
Speaker 3: Let's start with economic data. The latest reading show expansion
Speaker 3: in China's services industry slowed in June. Bloomberg Markets editor
Speaker 3: Eddie Vanderwald says the trend is troubling.
Speaker 4: This number is above fifty, but it is terrible. So
Speaker 4: the weakness that we're seeing here, I think will probably
Speaker 4: start to push the authorities to deliver a broad based stimulus,
Speaker 4: which is something we haven't seen. Stimulus we've seen so
Speaker 4: far has really been targeted on the property sickness, so
Speaker 4: it needs to be a little bit more broad by.
Speaker 3: Bloomberg's Eddie Vanderwald notes that tais China Services PMI declined
Speaker 3: to fifty three point nine, down from fifty seven point
Speaker 3: one in May.
Speaker 2: Meantime, Nathan supply chain issues TI geopolitics are also in focus.
Speaker 2: It's been a common theme when it comes to US
Speaker 2: China relations. Now Chinese President Xi Jinping is calling on
Speaker 2: the world to turn away from decoupling and reconsidering supply chains.
Speaker 2: Bloomberg Day Break Asia anchor. Brian Curtis has details from
Speaker 2: Hong Kong.
Speaker 5: It's ironic. The impassioned call came a day after China
Speaker 5: itself imposed limits on exports of two key medals. These
Speaker 5: are minerals used to make advanced semiconductors. President She told
Speaker 5: the Shanghai Cooperation Organization that China wants to work with
Speaker 5: nations to reject this setting up of barriers. It also
Speaker 5: comes a day after the Chinese government postponed a trip
Speaker 5: to Beijing by Europe's top diplomat, Joseph Perell. No reason
Speaker 5: was given for the postponement.
Speaker 1: In Hong Kong. Brian Curtis, Bloomberg day Break.
Speaker 3: Okay, Brian, thanks you. More details on that restriction of
Speaker 3: metal exports from China. Beijing says exports for two medals
Speaker 3: crucial to make semiconductors, must now apply for licenses to
Speaker 3: ship them out of the country. Analysts say the impact
Speaker 3: on the US tech sector depends on the current stockpile
Speaker 3: levels of these medals the companies have on hand, but
Speaker 3: if the restrictions drag on, prices will likely go up.
Speaker 2: And that's not all when it comes to the US
Speaker 2: and China butting heads on tech and it appears the
Speaker 2: White House is planning another round of fresh restrictions on Beijing.
Speaker 2: Bloomberg's John Tucker joins US Now with the details.
Speaker 1: John, Good morning, and Karen.
Speaker 6: The Biden administration preparing to tighten export controls, and this
Speaker 6: time the focus is on cloud computing services like those
Speaker 6: provided by Amazon and Microsoft. The cloud's critical in training
Speaker 6: AI models. The Wall Street journalist as Washington may require
Speaker 6: cloud providers to get permission before they could do business
Speaker 6: with Chinese firms. The administration doesn't want China to get
Speaker 6: a leg up on the US when it comes to
Speaker 6: artificial intelligence. Microsoft's Azure and Amazon Web Services are the
Speaker 6: global leaders in the business of providing Internet computing to enterprises.
Speaker 6: This would be an escalation of export controls from October,
Speaker 6: when the US said it would restrict sales of some
Speaker 6: artificial intelligence chips to China. You are John Tucker, Bloomberg Daybreak.
Speaker 3: All right, John, Thanks, there's some positive news out of
Speaker 3: China this morning. It involves Tesla. The evmaker's China output
Speaker 3: increased almost twenty percent in June, according to preliminary data
Speaker 3: from China's Passenger Car Association. Earlier this week, Tesla smashed
Speaker 3: estimates by setting a company record in quarterly sales. But
Speaker 3: in the pre market, Tesla shares are giving back just
Speaker 3: a bit. They're down four tenths of one percent.
Speaker 2: Well back here in the US, Nathan, we have a
Speaker 2: developing story in Washington. Multiple reports say the White House
Speaker 2: was briefly evacuated Sunday after the Secret Service discovered powder
Speaker 2: in a West Wing common area. Preliminary TAJ showed this
Speaker 2: substance was believed to be cocaine. President Biden was not
Speaker 2: at the White House Sunday evening. He was in Camp
Speaker 2: David for the weekend.
Speaker 3: We also have news at the intersection of politics and
Speaker 3: social media. Karen a federal judge in Louisiana has ordered
Speaker 3: Key Biden administration officials and agencies not to contact social
Speaker 3: media platforms to suppress speakers in viewpoints they disagree with.
Speaker 3: The ruling could curtail efforts to combat misinformation about health
Speaker 3: and other issues. It comes after Louisiana and Missouri filed
Speaker 3: cases claiming the administration with silencing views of the question
Speaker 3: COVID policies, and the legitimate of the twenty twenty election.
Speaker 7: Wells.
Speaker 2: In breaking news this morning, Nathan on labor negotiations between
Speaker 2: the Teamsters and UPS. The International Brotherhood of Teamsters says
Speaker 2: its negotiations with United Personal Service have collapsed. They walked
Speaker 2: away from the bargaining table around four am Eastern time.
Speaker 2: That increases the chances of a nationwide strike when the
Speaker 2: Teamsters contract with UPS expires at the end of this month.
Speaker 3: Karen, We're coming off an Independence Day that was hot
Speaker 3: and humid for much of the country. At the same time,
Speaker 3: we've reached another milestone in the global battle against climate change,
Speaker 3: and Bloomberg Zed Baxter has that story.
Speaker 8: Global temperatures hit a record high on Monday. The average
Speaker 8: worldwide temperature was sixty three degrees fahrenheit, topping the past
Speaker 8: high set in August of twenty sixteen. The National Centers
Speaker 8: from Environmental Prediction say the new high underscores the extremity
Speaker 8: of the twenty twenty three summer and the northern hemisphere
Speaker 8: and brings into focus the slow pace of global progress
Speaker 8: on curbing emissions and their estimates at the current NOS
Speaker 8: phenomenon is set to push global temperatures still higher. In
Speaker 8: San Francisco, I'm at Baxter Bloomberg daybreak.
Speaker 2: All right, and thank you turning to the markets now,
Speaker 2: we're seeing movement in the oil market this morning. Brent
Speaker 2: crude is weaker after a Tuesday rally that came on
Speaker 2: the heels of output cuts by Russia and Saudi Arabia.
Speaker 2: Traders are following commentary from Saudi's energy minister today when
Speaker 2: he addresses the eighth Opek International Seminar in Vienna.
Speaker 3: Time now to take a look at some of the
Speaker 3: other stories making news in New York and around the
Speaker 3: world with Bloomberg's Michael Barr.
Speaker 1: Good morning, Michael, Good morning, Nathan.
Speaker 9: Philadelphia police say as suspected gunman will be in court
Speaker 9: today after five people were killed and two children injured
Speaker 9: when he opened fire apparently at random, across several city
Speaker 9: blocks with an ar style rifle. Authority to say the
Speaker 9: gunman was wearing body armor and a ski mask. Philadelphia
Speaker 9: Mayor Jim Kenny I.
Speaker 5: Was today at city at the Independence Hall where they
Speaker 5: wrote that Constitution and the Second Amnis was never intended
Speaker 5: to protect this.
Speaker 9: There were also mass shootings in Baltimore and ford Worth,
Speaker 9: Texas ahead of the fourth of July holiday. Flights again
Speaker 9: were canceled or delayed yesterday in the US, as Americans
Speaker 9: begin to head home from the long weekend. United had
Speaker 9: its problems rain at Newark Airport costed flight delays last week.
Speaker 9: The flight schedule came unraveled due to weather at Newark.
Speaker 9: At least two more possible shark bites were reported off
Speaker 9: Long Island beaches the fourth of July. Incidents happened just
Speaker 9: today after another two cases were reported. One victim was
Speaker 9: swimming in chest deep water when he was bitten on
Speaker 9: the right knee. Meanwhile, another swimmer was bitten on the
Speaker 9: hand off Fire Island pines. Both men in their forties
Speaker 9: were taken to the hospital with non life threatening injuries.
Speaker 9: The Israeli military says it has withdrawn its troops from
Speaker 9: a militant stronghold in the occupied West Bank. The pullout
Speaker 9: this morning and Jeanine ended an intense two day operation
Speaker 9: that killed at least twelve Palestinians and drove thousands of
Speaker 9: people from their homes, and Israeli soldier was also killed.
Speaker 9: The head of the UN Nuclear Agency is in Japan
Speaker 9: this week as the country prepares to release waste water
Speaker 9: from the damaged Fukushima nuclear plant. The International Atomic Energy
Speaker 9: Agency is trying to reassure people that the water release
Speaker 9: is safe. UN Nuclear Agency Chief Rafieo Grossi says dumping
Speaker 9: the treated water would have, in his words, negligible environmental impact.
Speaker 8: The plan as it has been proposed and devised is
Speaker 8: in conformity with the agreed international standards.
Speaker 9: Local reports say utility operator Tepco could start dumping wastewater
Speaker 9: as early as August. Cities across the nation held Fourth
Speaker 9: of July fireworks shows. In New York City, crowds gathered
Speaker 9: along the East River last night for the May Sea's
Speaker 9: fireworks show. Global News twenty four hours a day, powered
Speaker 9: by more than twenty seven hundred journalist nailysts in over
Speaker 9: one hundred twenty countries. I'm Michael Bard. This is Bloomberg, Nathan.
Speaker 3: Okay, Michael, thanks time now for our Bloomberg sports up date.
Speaker 1: Good morning, John Stanshawer, Good.
Speaker 7: Morning, Nathan. It's been such a surprisingly strong first half
Speaker 7: of the season for the Baltimore Orioles, a rather disappointing
Speaker 7: one for the Yankees, and yet the Yanks win tonight
Speaker 7: and again tomorrow they'll have tied the Orioles for second
Speaker 7: place in the Al East. Yanks had to come from
Speaker 7: behind win Mouday Night came back for a holiday matinee
Speaker 7: at the stadium and won eight to four. A big
Speaker 7: day for Glaver Torres. He always hits well versus Baltimore
Speaker 7: to run homer before the first out of the first,
Speaker 7: getting the later doubled and scored him.
Speaker 1: With the game tie at three.
Speaker 7: Torres, who's been at times criticized for lack of ustle,
Speaker 7: walked and scored all the way from the first on
Speaker 7: a single. Mets at Arizona used the long ball.
Speaker 10: Won to to Marte swaying a high fly ball to
Speaker 10: left field Carol going back to the track, he turns
Speaker 10: and it's gone, a three run, go ahead home run
Speaker 10: first starling Barte about ten rows into the seats.
Speaker 7: And left WCBS also home runs for Brandon Nemo Francisco Alvarez.
Speaker 7: MaTx beat the Diamondbacks eight to five. Max Scherzers struck
Speaker 7: out nine and proved to.
Speaker 1: Eight and two.
Speaker 7: Rough day for the La Angels, they lost to San Diego.
Speaker 7: Shoe Otani gave up back to back home runs, had
Speaker 7: to leave the game of the blister, and Mike Trout
Speaker 7: put on the injured list with a broken hand. He's
Speaker 7: gonna miss at least a month, maybe two. The Padres
Speaker 7: released forty free year old Slaver Nelson Cruz four hundred
Speaker 7: and sixty four career home runs. Only four players ever
Speaker 7: have hit more after the age of twenty nine. Rain
Speaker 7: at Wimbledon's the only matches completed where they're on the
Speaker 7: two courts that have a roof easily wins for the
Speaker 7: top seed, Carlos Alcarez and thirty six year old Andy Murray.
Speaker 7: The defending champe Lana Rabakaa, needed three sets but got
Speaker 7: by American Shelby Rogers. Novak Djokovic plays today, so does
Speaker 7: the women's top seed us Yonte John Stanhelli.
Speaker 1: Boolberg sports.
Speaker 9: From coast to coast, from New York to San Francisco,
Speaker 9: Boston to Washington, d nationwide on Syrias Exam, the Bloomberg
Speaker 9: Business app and Bloomberg dot Com.
Speaker 1: This is Bloomberg Daybreak.
Speaker 3: We had a Tai Shehen Services Purchasing Managers index for
Speaker 3: the month of May that came in quite a bit
Speaker 3: weaker than expected. And it comes as Treasury Secretary Janet
Speaker 3: Yellen heads to China to try to find common economic
Speaker 3: ground with China.
Speaker 1: Let's get more on all this now. In a roundtable discussion.
Speaker 3: We are joined by Bloomberg opinion columnist Matthew Brooker and
Speaker 3: Rebecca Chung Wilkins, Bloomberg's Asia Government and Politics correspondent.
Speaker 1: Good to speak with both of you. Let's start with you, Matthew.
Speaker 3: With these signs of weakness in the Chinese economy, what's
Speaker 3: the potential impact for the global economic outlook?
Speaker 11: Well, I'd say not good. I mean, I think the
Speaker 11: restrictions that China has put these these these export of
Speaker 11: metals that they use in semiconductors are not I mean,
Speaker 11: they're not disastrous. There are there are alternatives that can
Speaker 11: be developed, but it's a it's a it's another sign
Speaker 11: of the of the amount of tension that's in the
Speaker 11: relationship at the moment.
Speaker 3: I think, yeah, we are seeing that tension given the
Speaker 3: export controls that you mentioned, and it seems like continuing
Speaker 3: signs as well from the Biden administration as almost a
Speaker 3: step by step move to limit China's access to technology. Rebecca,
Speaker 3: let's bring you in on this here, because we're waiting
Speaker 3: for Treasury Secretary Yellen to head to China to try
Speaker 3: to reset the Chinese relationship to some extent.
Speaker 1: But when we have these moves happening. Is it possible
Speaker 1: to have a reset?
Speaker 12: Yeah, it's certainly going to be a challenge for Yell.
Speaker 13: And obviously it's positive that the trip is going ahead,
Speaker 13: and this sort of ability to you know, disagree together
Speaker 13: and still have these open lines of communications at the
Speaker 13: top level is somewhat at least a somewhat present somewhat
Speaker 13: of a thaw at least they're speaking at the same time. Obviously,
Speaker 13: we see now both China showing this new willingness to
Speaker 13: push back against what it sees as containment efforts in
Speaker 13: those ways that Matthew points to. But the US also
Speaker 13: now reportedly considering curbing Chinese companies access to cloud computing
Speaker 13: services for anything that pertains to AI chips, so again
Speaker 13: closing that loophole.
Speaker 12: So, you know, with Beijing and the US both kind of.
Speaker 13: Ratcheting up these policies, it's hard to see any big
Speaker 13: sort of significant debt on or agreement coming out of
Speaker 13: Yellen's visit.
Speaker 3: Is there a dot to connect here, Matthew with the
Speaker 3: Biden administration's moves to limit access by China to technology
Speaker 3: and now the economic impact here.
Speaker 11: I mean, I feel there's a kind of a tip
Speaker 11: for tap game.
Speaker 7: Going on here.
Speaker 11: I mean, if you look at the tone of the
Speaker 11: discourse between China and the US and the EU as well,
Speaker 11: there's a lot of talks, I think from the Chinese
Speaker 11: side about how cooperation is the only way forward and
Speaker 11: that decoupling isn't going to work. We've got an independent world,
Speaker 11: and at the same time, you know, things like these
Speaker 11: export controls. I feel it looks to me like, you know,
Speaker 11: they're kind of trying to say, send the signals what
Speaker 11: we should be doing is cooperating. But you know, if
Speaker 11: you're going to if you're going to restrict our access
Speaker 11: to things that damage our economy, then we have the
Speaker 11: same tools available to us.
Speaker 1: What is the potential economic impact to China for putting
Speaker 1: on these export controls, Rebecca, Is the Chinese economy insulated
Speaker 1: enough that it can withstand these kinds of export controls
Speaker 1: without doing damage to its economy even further Well.
Speaker 12: There are two sort of risks.
Speaker 13: The first is the media, and the risk is if
Speaker 13: China does cut off access to these two different metals,
Speaker 13: that it will just simply accelerate other country's efforts to
Speaker 13: find alternatives.
Speaker 12: And we have seen that happen before when China kind
Speaker 12: of ramped.
Speaker 13: Up its restriction exports of rare earth previously, and simply
Speaker 13: what happened was it diminished its own market share in
Speaker 13: the world.
Speaker 12: Now, that takes some time.
Speaker 13: To happen, you know, over a decade or more, to
Speaker 13: fully move away from Chinese supplies of rare earths and
Speaker 13: minerals and so on. The other sort of consequence, potentially
Speaker 13: economically is if the US then does respond in Kine
Speaker 13: and we see a ratting up of this tip for
Speaker 13: tats Mat that Matthew points to, that that longer term,
Speaker 13: you know, those restrictions to developing its strategic technology and
Speaker 13: so on, that does also hobble economic recovery more broadly.
Speaker 12: So those are these two elements here.
Speaker 14: This is Bloomberg Daybreak Today, your morning brief on the
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Speaker 1: I'm Nathan Hager and I'm Karen Moscow.
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