1
00:00:02,120 --> 00:00:05,480
Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg

2
00:00:05,559 --> 00:00:10,280
Speaker 1: Daybreak for Thursday, July two. Coming up the shower, Nastack

3
00:00:10,400 --> 00:00:14,240
Speaker 1: Futures fall after yesterday's fed fueled rally. Facebook owner Meta

4
00:00:14,280 --> 00:00:18,760
Speaker 1: Platforms drops following earnings, Amazon and Apple report. Today, President

5
00:00:18,840 --> 00:00:21,440
Speaker 1: Biden and China's Shi Jin Pain gets set to speak,

6
00:00:21,600 --> 00:00:24,079
Speaker 1: and Joe Manchin and Chuck Schumer strike a deal on

7
00:00:24,160 --> 00:00:27,000
Speaker 1: a tax and energy policy. Bell there's an offer on

8
00:00:27,040 --> 00:00:28,640
Speaker 1: the table to get w w n B, a star

9
00:00:28,680 --> 00:00:31,720
Speaker 1: Britney Griner back from Russia, plus a new groundbreaking to

10
00:00:31,720 --> 00:00:34,320
Speaker 1: bring the portable housing to New York City. I'm Michael

11
00:00:34,320 --> 00:00:37,000
Speaker 1: barr more ahead, I'm time statue in sports, the Mets

12
00:00:37,040 --> 00:00:39,520
Speaker 1: with a walk off, when to swape the Subway series.

13
00:00:39,560 --> 00:00:45,600
Speaker 1: The Yankees have acquired a new outfield That's all Stradyhead

14
00:00:45,640 --> 00:00:49,240
Speaker 1: on Bloomberg Daybreak on Bloomberg eleven, Free on New York,

15
00:00:49,440 --> 00:00:54,080
Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston,

16
00:00:54,400 --> 00:00:59,000
Speaker 1: Bloomberg nine sixties, San Francisco, Sirius x M one nine Team,

17
00:00:59,040 --> 00:01:01,920
Speaker 1: and around the world on Bloomberg Radio dot Com and

18
00:01:02,120 --> 00:01:08,720
Speaker 1: via the Bloomberg Business app. Good morning, I'm Nathan Hagar

19
00:01:09,000 --> 00:01:11,520
Speaker 1: and I'm Karen Moscow, and US DOT Index futures are

20
00:01:11,600 --> 00:01:13,440
Speaker 1: lower this morning. We are coming up for six o

21
00:01:13,560 --> 00:01:15,280
Speaker 1: one on Wall Street, and we check the markets every

22
00:01:15,319 --> 00:01:17,920
Speaker 1: fifteen minutes throughout the trading day. On Bloomberg, I guess

23
00:01:17,920 --> 00:01:20,919
Speaker 1: and P futures down twelve points down, futures down forty

24
00:01:20,959 --> 00:01:24,200
Speaker 1: five and nowasday futures down on the decks in Germany

25
00:01:24,280 --> 00:01:26,400
Speaker 1: is litill. Change in the ten year treasury up three

26
00:01:26,440 --> 00:01:29,600
Speaker 1: thirty seconds, yield two point seven seven percent, and the

27
00:01:29,680 --> 00:01:32,560
Speaker 1: yield on the two year two point nine seven percent.

28
00:01:32,800 --> 00:01:35,480
Speaker 1: Nathan Karen. The drop in futures comes after the biggest

29
00:01:35,480 --> 00:01:38,480
Speaker 1: one day gain for tech stocks since November twenty twenty.

30
00:01:38,520 --> 00:01:42,000
Speaker 1: The Nasdacks surged four point three percent yesterday following resilient

31
00:01:42,080 --> 00:01:45,400
Speaker 1: earnings and the fed's press conference. Randy Watts, chief investment

32
00:01:45,480 --> 00:01:48,200
Speaker 1: strategist at O'Neil Global Advisor, says, there's light at the

33
00:01:48,280 --> 00:01:50,840
Speaker 1: end of the tunnel, so I think the minute the

34
00:01:50,880 --> 00:01:54,160
Speaker 1: stock market can identify or see, we don't have to

35
00:01:54,160 --> 00:01:55,720
Speaker 1: be there, but can see the end of the Fed

36
00:01:55,800 --> 00:01:58,919
Speaker 1: titan cycle. I think stocks are headed up a lot higher.

37
00:01:59,000 --> 00:02:02,040
Speaker 1: Randy wattson O'Neil Global Advisor's notes the SMP five hundreds

38
00:02:02,080 --> 00:02:04,520
Speaker 1: on course for its biggest monthly gain since October of

39
00:02:04,600 --> 00:02:07,560
Speaker 1: last year. Well Nathan reaction is still pouring in this

40
00:02:07,600 --> 00:02:10,880
Speaker 1: morning to yesterday's FED decision. Share J Powell says moderate

41
00:02:10,960 --> 00:02:13,360
Speaker 1: hikes are coming, but the pace will slow at some

42
00:02:13,480 --> 00:02:16,919
Speaker 1: point as the stance of monetary policy titans further, it

43
00:02:17,120 --> 00:02:20,160
Speaker 1: likely will become appropriate to slow the pace of increases

44
00:02:20,520 --> 00:02:24,040
Speaker 1: while we assess how our cumulative policy adjustments are affecting

45
00:02:24,040 --> 00:02:26,840
Speaker 1: the economy and inflation. At the same time, J. Powell

46
00:02:26,880 --> 00:02:29,640
Speaker 1: and the FED are losing credibility. That's according to Scott Minor,

47
00:02:29,760 --> 00:02:33,919
Speaker 1: the chief investment officer at Guggenheim. After this this run

48
00:02:34,000 --> 00:02:36,359
Speaker 1: up we're getting in the in the stock market, in

49
00:02:36,919 --> 00:02:40,120
Speaker 1: the bond market right now, that that by next week

50
00:02:40,160 --> 00:02:43,400
Speaker 1: we're going to be sitting around and questioning, um, you know,

51
00:02:43,560 --> 00:02:47,240
Speaker 1: and gee, you know, are they really being incredible? Cooggenheim.

52
00:02:47,280 --> 00:02:49,720
Speaker 1: Scott Minor had said the economy may already be in

53
00:02:49,760 --> 00:02:54,120
Speaker 1: a recession. Bloomberg Opinion columnist Muhammadhalarian says there's no good

54
00:02:54,120 --> 00:02:57,679
Speaker 1: outcome in the FED waging inflation against slowing growth. It's

55
00:02:57,720 --> 00:03:03,200
Speaker 1: the FED that needs to we anchor itself, but the

56
00:03:03,280 --> 00:03:07,240
Speaker 1: weed economy is again running ahead of it. And both

57
00:03:07,320 --> 00:03:10,000
Speaker 1: Muhammadalarian and Scott Miner made the comments on a special

58
00:03:10,120 --> 00:03:13,120
Speaker 1: edition of Bloomberg Surveillance heard right here on Bloomberg Radio

59
00:03:13,160 --> 00:03:15,560
Speaker 1: and Bloomberg Television. Well, next turn, we get a key

60
00:03:15,600 --> 00:03:18,720
Speaker 1: reading on the US economy. Second quarter GDP comes out

61
00:03:18,720 --> 00:03:22,160
Speaker 1: at eight thirty am. Wall Street Time economists expect annualized

62
00:03:22,160 --> 00:03:24,560
Speaker 1: growth of a half percent. On the surface, that would

63
00:03:24,560 --> 00:03:26,920
Speaker 1: be an improvement after a one point six percent drop

64
00:03:26,960 --> 00:03:29,519
Speaker 1: in the first quarter. And we turn to earning. Now, Nathan,

65
00:03:29,520 --> 00:03:32,320
Speaker 1: where tech is front end center? Shar's a Meta Platforms

66
00:03:32,360 --> 00:03:35,440
Speaker 1: down five percent, the parent of Facebook and Instagram reporting

67
00:03:35,440 --> 00:03:39,280
Speaker 1: its first ever quarterly sales decline. And here's CEO Mark Zuckerberg.

68
00:03:39,640 --> 00:03:43,200
Speaker 1: We seem to have entered an economic downturn that will

69
00:03:43,240 --> 00:03:46,800
Speaker 1: have a broad impact on the digital advertising business. It's

70
00:03:46,800 --> 00:03:49,080
Speaker 1: always hard to predict how deep or how long these

71
00:03:49,080 --> 00:03:52,800
Speaker 1: cycles will be, but I'd say that the situation seems

72
00:03:52,840 --> 00:03:55,080
Speaker 1: worse than it did a quarter ago. The week resils

73
00:03:55,120 --> 00:03:58,480
Speaker 1: from Zuckerberg's Meta Platforms is weighing on sentiment this morning

74
00:03:58,520 --> 00:04:01,720
Speaker 1: after revenue forecast fell short of estimates. Well, next, can

75
00:04:01,760 --> 00:04:04,280
Speaker 1: we into the busiest day of this earning season, highlighted

76
00:04:04,320 --> 00:04:07,680
Speaker 1: by reports from Apple and Amazon. Bloomberg's Jeff Bealllinger has

77
00:04:07,720 --> 00:04:11,760
Speaker 1: the details. Apple's quarterly profit may have declined. If it did,

78
00:04:11,840 --> 00:04:14,120
Speaker 1: it would be the first drop in almost two years.

79
00:04:14,400 --> 00:04:18,159
Speaker 1: Investors will be especially interested in hearing about iPhone sales,

80
00:04:18,360 --> 00:04:21,880
Speaker 1: since the device typically accounts for half of Apple's revenue.

81
00:04:22,120 --> 00:04:25,560
Speaker 1: Bloomberg Intelligence says we may hear that Amazon dot COM's

82
00:04:25,600 --> 00:04:29,200
Speaker 1: online revenue, games and profit slowed, but there is strong

83
00:04:29,279 --> 00:04:33,400
Speaker 1: potential for continued growth and cloud services, streaming and advertising.

84
00:04:33,800 --> 00:04:37,400
Speaker 1: Walmart issued a profit warning this week, but Amazon is not.

85
00:04:37,560 --> 00:04:41,039
Speaker 1: Walmart b I says its customer base is more affluent.

86
00:04:41,360 --> 00:04:44,400
Speaker 1: Jeff Bellinger, Bloomberg day Break, Right, Jeff, thank you and

87
00:04:44,400 --> 00:04:46,400
Speaker 1: the m and A. From this morning, we're learning that

88
00:04:46,480 --> 00:04:49,360
Speaker 1: Jet Blue is close to an agreement to buy Spirit Airlines,

89
00:04:49,400 --> 00:04:52,159
Speaker 1: and Bloomberg's Ready Young is here alive with more Good Morning,

90
00:04:52,160 --> 00:04:55,280
Speaker 1: Ready to Good Morning, Karen. Bloomberg. Sources say Jet Blues

91
00:04:55,320 --> 00:04:57,880
Speaker 1: deal to buy Spirit could come as soon as today.

92
00:04:58,320 --> 00:05:01,280
Speaker 1: The airline swooped in just hours after Spirit ended a

93
00:05:01,400 --> 00:05:05,080
Speaker 1: pending merger with Frontier Lines that deal fell apart on

94
00:05:05,120 --> 00:05:08,479
Speaker 1: a lack of shareholder support. A Spirit acquisition would be

95
00:05:08,560 --> 00:05:12,000
Speaker 1: Jet blues best shot to broaden its network quickly. It

96
00:05:12,000 --> 00:05:15,760
Speaker 1: will also inject an infusion of pilots and aircraft orders,

97
00:05:15,800 --> 00:05:18,080
Speaker 1: both of which are expected to be in short supply

98
00:05:18,200 --> 00:05:21,760
Speaker 1: for several years. Live in New York, I'm Nita Young

99
00:05:21,760 --> 00:05:24,880
Speaker 1: Bloomberg Daybreak, Rida thank you. Geo. Politics is also on

100
00:05:24,920 --> 00:05:27,000
Speaker 1: the front burner this morning, and we're learning more about

101
00:05:27,000 --> 00:05:30,160
Speaker 1: the agenda for today's call between Presidents Biden and Hijin

102
00:05:30,240 --> 00:05:32,520
Speaker 1: Ping of China, and Amy Morris has details from our

103
00:05:32,520 --> 00:05:36,599
Speaker 1: Bloomberg newsroom in Washington. The two world leaders will discuss

104
00:05:36,640 --> 00:05:40,040
Speaker 1: Trump era tariffs, Russia's invasion of Ukraine, a price cap

105
00:05:40,080 --> 00:05:44,400
Speaker 1: on Russian oil, climate change, and economic competition. National Security

106
00:05:44,440 --> 00:05:48,400
Speaker 1: Council Communications strategy Coordinator John Kirby says he expects the

107
00:05:48,400 --> 00:05:52,320
Speaker 1: President will also bring up China's increasingly aggressive actions in

108
00:05:52,360 --> 00:05:55,360
Speaker 1: the South China Sea. I would fully expect that part

109
00:05:55,400 --> 00:05:58,640
Speaker 1: of the President's conversation um tensions in the South China

110
00:05:58,680 --> 00:06:01,440
Speaker 1: Cey World will come up. Today's call comes as tensions

111
00:06:01,440 --> 00:06:04,200
Speaker 1: are rising over a possible visit to Taiwan by House

112
00:06:04,200 --> 00:06:08,680
Speaker 1: Speaker Nancy Pelosi in Washington. I'm Amy Morris, Bloomberg Daybreak right, Amy,

113
00:06:08,680 --> 00:06:11,039
Speaker 1: thank you meantime on Capitol Hill, and Energy and Tax

114
00:06:11,120 --> 00:06:13,480
Speaker 1: bill may have just come back to life in the sun,

115
00:06:13,520 --> 00:06:16,080
Speaker 1: as Senators Joe Mansion and Chuck Schumer have reached a

116
00:06:16,120 --> 00:06:18,760
Speaker 1: deal on a seven hundred thirty nine billion dollar package

117
00:06:18,960 --> 00:06:21,960
Speaker 1: that includes a fifteen percent corporate minimum tax, three hundred

118
00:06:21,960 --> 00:06:25,040
Speaker 1: billion dollars in deficit reductions, and three hundred sixty nine

119
00:06:25,040 --> 00:06:29,120
Speaker 1: billion for energy and climate change. Bloomberg Politics contributor Genie

120
00:06:29,120 --> 00:06:31,880
Speaker 1: she and Zano says it's a win for Democrats. It's

121
00:06:31,960 --> 00:06:34,800
Speaker 1: a big victory for what I call the Purple Dems.

122
00:06:34,839 --> 00:06:37,599
Speaker 1: Those Democrats who have to go to these moderate districts

123
00:06:37,600 --> 00:06:40,479
Speaker 1: with the president with approval ratings in the thirties, have

124
00:06:40,600 --> 00:06:43,280
Speaker 1: been looking for something to take home. I don't think

125
00:06:43,320 --> 00:06:46,920
Speaker 1: they ever suspected they would get both chips and reconciliation

126
00:06:47,240 --> 00:06:50,120
Speaker 1: and Bloomberg contributor Gene she She and Zano spoke with

127
00:06:50,160 --> 00:06:53,280
Speaker 1: our Washington corresponded Joe Matthew on Bloomberg Sound on Fetch

128
00:06:53,320 --> 00:06:55,960
Speaker 1: The show weekdays at five pm Eastern on Bloomberg Radio

129
00:06:56,200 --> 00:06:58,080
Speaker 1: and Bloomberg Daybreak is brought to you by B and

130
00:06:58,200 --> 00:07:01,080
Speaker 1: Y Mellen's Pershing Learned Why the world's most sophisticated wealth

131
00:07:01,120 --> 00:07:04,240
Speaker 1: management and institutional firms rely on Pershing to help them

132
00:07:04,240 --> 00:07:08,680
Speaker 1: improve profitability, create efficiency, attract talent, and manage risk At

133
00:07:08,680 --> 00:07:13,120
Speaker 1: pershing dot Com. Futures moving lower On this Thursday morning.

134
00:07:13,240 --> 00:07:15,760
Speaker 1: Straight ahead, we'll have your latest local headlines and a

135
00:07:15,840 --> 00:07:23,840
Speaker 1: check of sports. This is Bloomberg and it sounds six

136
00:07:23,840 --> 00:07:25,960
Speaker 1: oh seven on Wall Street. Where's seventy four degrees in

137
00:07:26,040 --> 00:07:28,800
Speaker 1: Central Park? Got an accident memaron X southbound New England

138
00:07:28,800 --> 00:07:31,720
Speaker 1: through Way eggs at eighteen B. Details coming up in traffic.

139
00:07:32,080 --> 00:07:34,040
Speaker 1: First Michael Barr with what else is going on in

140
00:07:34,040 --> 00:07:36,600
Speaker 1: New York and around the world. Good morning, Michael, Good morning, Nathan.

141
00:07:36,680 --> 00:07:39,640
Speaker 1: Secretary of State Anthony Lincoln says the US has made

142
00:07:39,640 --> 00:07:42,680
Speaker 1: an offer for the release of w n B, A

143
00:07:42,800 --> 00:07:45,920
Speaker 1: star Britney grinder and former US Marine Paul Wheeland from

144
00:07:45,920 --> 00:07:48,680
Speaker 1: prison in Russia. B Lincoln said he plans to put

145
00:07:48,720 --> 00:07:51,880
Speaker 1: the US proposal before Russian officials, and he plans to

146
00:07:51,920 --> 00:07:55,560
Speaker 1: bring up grain shipments from Ukraine. I plan to raise

147
00:07:55,600 --> 00:07:59,080
Speaker 1: an issue that's a top priority for US, the release

148
00:07:59,080 --> 00:08:02,520
Speaker 1: of Americans Paul Owen and Brittany Griner who've been wrongfully

149
00:08:02,560 --> 00:08:06,080
Speaker 1: detained and must be allowed to come home. Secretary Blankolin

150
00:08:06,280 --> 00:08:09,480
Speaker 1: says he plans to speak with Russian Foreign Ministers Sergei

151
00:08:09,560 --> 00:08:12,200
Speaker 1: Lavrov in the coming days. A person familiar with the

152
00:08:12,280 --> 00:08:16,000
Speaker 1: offers said the US would swap them for imprisoned Russian

153
00:08:16,080 --> 00:08:19,400
Speaker 1: arms dealer Victor Bood. However, Russia says no agreement has

154
00:08:19,440 --> 00:08:22,520
Speaker 1: been announced yet. Vice President Kamala Harris will be in

155
00:08:22,560 --> 00:08:25,040
Speaker 1: New York today. She will be in Brooklyn to meet

156
00:08:25,080 --> 00:08:28,960
Speaker 1: with community leaders. They will discuss the Biden Administration's investment

157
00:08:29,080 --> 00:08:35,000
Speaker 1: in underserved communities, financial institutions, and small businesses. Governor Caffey

158
00:08:35,080 --> 00:08:37,679
Speaker 1: Hokel and New York City Mayor Eric Adams announced the

159
00:08:37,679 --> 00:08:41,280
Speaker 1: groundbreaking on an affordable housing development in the Morris Heights

160
00:08:41,280 --> 00:08:44,840
Speaker 1: section of the Bronx. HOCl says the one nine million

161
00:08:44,840 --> 00:08:48,520
Speaker 1: dollar development will feature three hundred twenty six affordable apartments,

162
00:08:48,800 --> 00:08:54,800
Speaker 1: including two hundred homes with supportive services for individuals experiencing homelessness.

163
00:08:55,400 --> 00:08:59,839
Speaker 1: Right now, Bronx households are rent Burton. What does that mean?

164
00:08:59,840 --> 00:09:03,520
Speaker 1: They spend more than their income on rent? Well, just

165
00:09:03,640 --> 00:09:05,520
Speaker 1: earlier this week. I was talking about how people are

166
00:09:05,520 --> 00:09:10,880
Speaker 1: spending income on childcare. So add that up. You're still

167
00:09:10,880 --> 00:09:13,120
Speaker 1: on trying to pay for rent. You got a couple

168
00:09:13,120 --> 00:09:15,680
Speaker 1: of kids. We need childcare because you need to have

169
00:09:15,679 --> 00:09:18,040
Speaker 1: a job to pay for this. It doesn't add up.

170
00:09:18,160 --> 00:09:21,320
Speaker 1: Governor Huck went on to say the development will provide safe,

171
00:09:21,320 --> 00:09:23,800
Speaker 1: stable homes for more than three hundred residents of the

172
00:09:23,800 --> 00:09:27,240
Speaker 1: Bronx and offer critical resources and amenities to support the

173
00:09:27,240 --> 00:09:30,520
Speaker 1: neighborhood in the long term. North Korean leader Kim John

174
00:09:30,640 --> 00:09:34,839
Speaker 1: UoN unleashed fiery rhetoric yesterday as they celebrated the sixty

175
00:09:34,920 --> 00:09:38,920
Speaker 1: nine anniversary of the Korean War armistice. Kim warned that

176
00:09:39,000 --> 00:09:42,679
Speaker 1: he's ready to use his nuclear weapons in potential military

177
00:09:42,760 --> 00:09:46,360
Speaker 1: conflicts with the US and South Korea. Global News twenty

178
00:09:46,400 --> 00:09:49,000
Speaker 1: four hours a day on the air and on Bloomberg Quicktake,

179
00:09:49,200 --> 00:09:52,560
Speaker 1: powered by more than journalists and analysts more than a

180
00:09:52,600 --> 00:09:56,200
Speaker 1: hundred twenty countries. Michael barn this is Bloomberg, Nathan. Thanks

181
00:09:56,240 --> 00:10:02,640
Speaker 1: Michael six o nine on Wall Street. Time for the

182
00:10:02,640 --> 00:10:06,320
Speaker 1: Bloomberg Sports Update. Here's John all right, Nathan bragging rights

183
00:10:06,320 --> 00:10:07,840
Speaker 1: to the Mets. They got an early home run from

184
00:10:07,840 --> 00:10:10,200
Speaker 1: Peter Alonso was twenties things they got brilliant pictured from

185
00:10:10,240 --> 00:10:13,160
Speaker 1: Max Scherzer on his thirty eight birthday. Through seven scoreless

186
00:10:13,200 --> 00:10:16,080
Speaker 1: instruct out Aaron Judge three times. Yankees did tie the

187
00:10:16,120 --> 00:10:18,400
Speaker 1: game on a Glabor Torres two run homer eighth inning,

188
00:10:18,440 --> 00:10:22,240
Speaker 1: but in the bottom of the ninth, Marte, we're all

189
00:10:22,360 --> 00:10:25,680
Speaker 1: the deals slinging the line in the left face, put

190
00:10:25,760 --> 00:10:28,760
Speaker 1: up a box, test the bar. He stores the one

191
00:10:28,840 --> 00:10:32,920
Speaker 1: in run. Martey slams has helmet down at first swept

192
00:10:32,960 --> 00:10:35,679
Speaker 1: the Yankees. They have defeated the three to two. The

193
00:10:35,840 --> 00:10:38,480
Speaker 1: Mets poor out of the tongue out. They are bobbing

194
00:10:38,640 --> 00:10:42,280
Speaker 1: Starling Marte of the light up second thing you see Calso.

195
00:10:42,400 --> 00:10:45,040
Speaker 1: Two new Mets playing in their first Subway series, combined

196
00:10:45,080 --> 00:10:47,000
Speaker 1: to win it. In the ninth, the Martte hit after

197
00:10:47,000 --> 00:10:50,000
Speaker 1: a leadoff double by Edward o Escobar. Braves lost. The

198
00:10:50,080 --> 00:10:52,400
Speaker 1: Mets are three games ahead. They're off tonight. The Yankees

199
00:10:52,440 --> 00:10:56,040
Speaker 1: tonight host Kansas City, which means the yanks new outfielder

200
00:10:56,080 --> 00:10:58,360
Speaker 1: will face the team that just traded him. A long

201
00:10:58,480 --> 00:11:02,480
Speaker 1: rumor deal took place that Banks acquire All star Andrew Bennintendee,

202
00:11:02,720 --> 00:11:04,880
Speaker 1: who was hit in three twenty for the Royals, who

203
00:11:04,920 --> 00:11:07,920
Speaker 1: would get back three Mono league pictures. This presumably ends

204
00:11:07,960 --> 00:11:10,560
Speaker 1: talk of the Yanks getting Juan Soto, but they are

205
00:11:10,640 --> 00:11:12,839
Speaker 1: believed to still be looking at a starting pitcher. Two

206
00:11:12,920 --> 00:11:17,439
Speaker 1: names mentioned often Cincinnati's Luis Castillo, Oakland's Frankie Montas the

207
00:11:17,600 --> 00:11:21,640
Speaker 1: trade deadline next Tuesday, another big name golfer bolts the

208
00:11:21,679 --> 00:11:24,439
Speaker 1: p g A for the new Live Tour. It's Bubba Watson.

209
00:11:24,480 --> 00:11:26,880
Speaker 1: He's a two time Master's champion to lift tour starts

210
00:11:26,880 --> 00:11:31,000
Speaker 1: a tournament tomorrow at Trump National Embedminster, New Jersey. Atlanta

211
00:11:31,040 --> 00:11:34,120
Speaker 1: Falcons made an official they lost Matt Ryan. Now their

212
00:11:34,200 --> 00:11:37,679
Speaker 1: new starting quarterback will be the recently acquired Marcus Mariota.

213
00:11:37,880 --> 00:11:41,280
Speaker 1: John Stashar Bloomberg Sports Nathan Okay, John, thank you. SMP

214
00:11:41,400 --> 00:11:45,559
Speaker 1: futures down down thirteen point, Staff futures down forty, NASAC

215
00:11:45,679 --> 00:11:49,280
Speaker 1: futures down ninety three points. The tenure treasury is little

216
00:11:49,360 --> 00:11:52,680
Speaker 1: changed right now. That yield two point yield on the

217
00:11:52,720 --> 00:11:55,680
Speaker 1: two year two point nine seven percent. Just to head

218
00:11:55,720 --> 00:11:58,839
Speaker 1: more on the FEDS policy decision from guy who was

219
00:11:58,880 --> 00:12:02,080
Speaker 1: in the room with FED chair j Pal. Bloomberg's Michael

220
00:12:02,120 --> 00:12:08,120
Speaker 1: McKee joins US next this is Bloomberg Bloomberg eleven three

221
00:12:08,120 --> 00:12:10,000
Speaker 1: oh weather. Some passing showers and storms today with a

222
00:12:10,040 --> 00:12:12,480
Speaker 1: higher ninety degrees. We have some more afternoon showers and

223
00:12:12,520 --> 00:12:15,120
Speaker 1: storms send the week highs back near ninety mix of

224
00:12:15,160 --> 00:12:18,120
Speaker 1: sun and cloud Saturday opper eighties right now seventy four

225
00:12:18,280 --> 00:12:24,839
Speaker 1: in Central Park Markets. Headlines and breaking news twenty four

226
00:12:24,880 --> 00:12:27,920
Speaker 1: hours a day at Bloomberg dot Com and Bloomberg Business

227
00:12:27,920 --> 00:12:31,120
Speaker 1: at and at Bloomberg Quick Take. This is a Bloomberg

228
00:12:31,200 --> 00:12:39,600
Speaker 1: Business flash and I'm Karen Moscow. I dip in u

229
00:12:39,600 --> 00:12:42,360
Speaker 1: S Stock Index future, suggesting the US rally could stall

230
00:12:42,440 --> 00:12:45,080
Speaker 1: with technology stocks set to pull back after their biggest

231
00:12:45,120 --> 00:12:48,200
Speaker 1: jumps in November, with big tech to be in our

232
00:12:48,200 --> 00:12:51,560
Speaker 1: particular focus today with results from Amazon dot Com, Apple,

233
00:12:51,640 --> 00:12:54,240
Speaker 1: and Intel. We checked the markets every fifteen minutes throughout

234
00:12:54,280 --> 00:12:58,000
Speaker 1: the trading day. On Bloomberg, SNP futures down thirteen points

235
00:12:58,040 --> 00:13:00,880
Speaker 1: this morning, down features down fifty seven. Now's deck features

236
00:13:00,920 --> 00:13:03,800
Speaker 1: down ninety three. The decks in Germany's down three tents

237
00:13:03,800 --> 00:13:06,120
Speaker 1: of upper cent. The ten year treasury that'll change yield

238
00:13:06,120 --> 00:13:08,679
Speaker 1: two point seven eight percent, yield on the two year

239
00:13:08,760 --> 00:13:11,800
Speaker 1: two point nine seven percent, nine x screwed oil is

240
00:13:11,800 --> 00:13:13,959
Speaker 1: at one point nine percent of a dollar eighties seven

241
00:13:13,960 --> 00:13:16,880
Speaker 1: and ninety nine dollars, thirteen cents of barrel comex sculled

242
00:13:16,960 --> 00:13:19,280
Speaker 1: up one point two percent, or twenty dollars sixty cents

243
00:13:19,280 --> 00:13:22,360
Speaker 1: at seventeen fifty eight ten announced the euro one point

244
00:13:22,559 --> 00:13:25,000
Speaker 1: one six one against the dollar, British pound one point

245
00:13:25,000 --> 00:13:27,040
Speaker 1: two one to eight, and the en mon thirty five

246
00:13:27,080 --> 00:13:30,360
Speaker 1: point five zero, and bitcoin is up seven tenths percent.

247
00:13:30,720 --> 00:13:34,520
Speaker 1: Is at nine hundred forty dollars and Jack mob planning

248
00:13:34,559 --> 00:13:37,520
Speaker 1: to seed control of a group that according to Dowd Jones,

249
00:13:37,679 --> 00:13:40,400
Speaker 1: who cited people familiar with the matter, that's a Bloomberg

250
00:13:40,400 --> 00:13:42,880
Speaker 1: business flash. Now here's Michael Barr with more on what's

251
00:13:42,920 --> 00:13:45,920
Speaker 1: going on around the world. Michael, thank you very much, Karen.

252
00:13:45,960 --> 00:13:49,199
Speaker 1: A possible prisoner swap with Russia could bring w n B,

253
00:13:49,280 --> 00:13:52,480
Speaker 1: a star Britney grinder, and former US Marine Paul Wheeland

254
00:13:52,480 --> 00:13:55,280
Speaker 1: back to the US. A person familiar with the offers

255
00:13:55,320 --> 00:13:58,040
Speaker 1: said it would swap them for imprisoned Russian arms dealer

256
00:13:58,080 --> 00:14:01,120
Speaker 1: Victor Boot. However, Russia says there was no agreement yet.

257
00:14:01,520 --> 00:14:04,680
Speaker 1: Senator Joe Manchin and Majority Leader Chuck Schumer have struck

258
00:14:04,720 --> 00:14:08,600
Speaker 1: a deal on attacks Energy and Climate bill. Excuse me,

259
00:14:08,640 --> 00:14:10,680
Speaker 1: It breaks a deadlock on the Democrats and long sought

260
00:14:10,760 --> 00:14:15,000
Speaker 1: legislation to enact major parts at President Biden's agenda. In baseball,

261
00:14:15,040 --> 00:14:18,360
Speaker 1: the Mets beat the Yankees, the Guardians beat the Red Sox.

262
00:14:18,600 --> 00:14:22,960
Speaker 1: The Nationals and Orioles also lost. The A's beat the Astros,

263
00:14:22,960 --> 00:14:26,160
Speaker 1: the Diamondbacks beat the Giants. Global News twenty four hours

264
00:14:26,160 --> 00:14:28,800
Speaker 1: a day on air and on Bloomberg Quickdig, powered by

265
00:14:28,800 --> 00:14:31,200
Speaker 1: more than twenty seven hundred journalists and antalists more than

266
00:14:31,240 --> 00:14:34,080
Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg.

267
00:14:34,160 --> 00:14:36,680
Speaker 1: Nathan Alright, Michael, thank you to six nineteen on Wall

268
00:14:36,720 --> 00:14:40,160
Speaker 1: Street Live from the Bloomberg Interactive Broker Studios. This is

269
00:14:40,320 --> 00:14:44,520
Speaker 1: Bloomberg Daybreak and Bloomberg Economics correspondent Michael McKee is back

270
00:14:44,560 --> 00:14:48,120
Speaker 1: in the Interactive Broker's studio this morning after quick trip

271
00:14:48,200 --> 00:14:50,800
Speaker 1: down to Washington, d C. To watch the Federal Reserve

272
00:14:51,280 --> 00:14:54,160
Speaker 1: raise interest rates five seventy five basis points. Again, Michael,

273
00:14:54,240 --> 00:14:57,920
Speaker 1: good morning. So we got the rate increase that the

274
00:14:57,960 --> 00:15:01,800
Speaker 1: market was expecting. What did you make of the messaging

275
00:15:02,360 --> 00:15:06,880
Speaker 1: on where rates may or may not go from here, Mike, Well,

276
00:15:06,920 --> 00:15:08,960
Speaker 1: I think the way I put it yesterday is is

277
00:15:09,000 --> 00:15:11,160
Speaker 1: the FED knows where it's going, it just doesn't know

278
00:15:11,200 --> 00:15:14,040
Speaker 1: where it is. At this point, we don't have enough

279
00:15:14,120 --> 00:15:16,840
Speaker 1: data to know if the FED has really put us

280
00:15:16,880 --> 00:15:21,120
Speaker 1: on a sustainable path of lower inflation or if the

281
00:15:21,160 --> 00:15:24,520
Speaker 1: FED has started us on a path to a recession.

282
00:15:25,200 --> 00:15:27,680
Speaker 1: The problem is data or backward looking, and we don't

283
00:15:27,720 --> 00:15:30,720
Speaker 1: have enough of it yet to really get the measure

284
00:15:30,800 --> 00:15:33,800
Speaker 1: of the FEDS rate increases. But they know they want

285
00:15:33,800 --> 00:15:36,920
Speaker 1: to get a little bit above neutral right now. When

286
00:15:36,960 --> 00:15:39,840
Speaker 1: the FED funds future start trading today, they should be

287
00:15:39,840 --> 00:15:44,320
Speaker 1: trading just at the bottom end of the FEDS neutral line.

288
00:15:44,440 --> 00:15:47,440
Speaker 1: So they are going to raise rates above that. It's

289
00:15:47,480 --> 00:15:49,440
Speaker 1: about two and a half to three percent, Nathan, and

290
00:15:49,480 --> 00:15:51,800
Speaker 1: they're going to raise rates above it. But how quickly

291
00:15:51,840 --> 00:15:54,520
Speaker 1: they do that and how far above it they go

292
00:15:54,800 --> 00:15:58,640
Speaker 1: will depend on getting more data. Yeah, it's interesting that

293
00:15:58,720 --> 00:16:02,080
Speaker 1: you term it as the FED not necessarily knowing where

294
00:16:02,080 --> 00:16:05,200
Speaker 1: it is right now, particularly when we heard from the

295
00:16:05,280 --> 00:16:08,360
Speaker 1: Chairman yesterday pretty much saying that they're going to get

296
00:16:08,360 --> 00:16:12,960
Speaker 1: even more data dependent. That's a big risk, isn't it.

297
00:16:13,120 --> 00:16:17,840
Speaker 1: When the data are back, we're looking and it makes

298
00:16:17,880 --> 00:16:20,560
Speaker 1: them that much more difficult to tell whether policy is

299
00:16:20,560 --> 00:16:23,960
Speaker 1: having the intended effect of bringing inflation back to back

300
00:16:23,960 --> 00:16:27,960
Speaker 1: to bear. Yeah, you have to get the various measures

301
00:16:27,960 --> 00:16:31,120
Speaker 1: of the economy and try to interpret for from those

302
00:16:31,720 --> 00:16:34,640
Speaker 1: where the economy might be going. Today, we'll get the

303
00:16:34,680 --> 00:16:38,680
Speaker 1: GDP numbers, and the Fed will be looking at not

304
00:16:38,840 --> 00:16:41,840
Speaker 1: the headline so much as they'll be looking at consumer

305
00:16:41,920 --> 00:16:45,400
Speaker 1: spending and business investment and then taking apart the various

306
00:16:45,440 --> 00:16:48,680
Speaker 1: parts of consumer spending and business investment to see what's

307
00:16:48,680 --> 00:16:52,120
Speaker 1: growing and what's not, and what might have been affected

308
00:16:52,160 --> 00:16:56,040
Speaker 1: by interest rates and what just kind of kept on going.

309
00:16:56,600 --> 00:16:58,880
Speaker 1: So they'll be doing that, and they'll look at the

310
00:16:58,880 --> 00:17:02,320
Speaker 1: employment costs into which comes out tomorrow. Uh. It's sort

311
00:17:02,360 --> 00:17:05,879
Speaker 1: of the best measure and detail of incomes, and they'll

312
00:17:05,880 --> 00:17:08,560
Speaker 1: try to figure out who's making money and how they're

313
00:17:08,560 --> 00:17:10,560
Speaker 1: making it. Is that the wage people is at the

314
00:17:10,600 --> 00:17:13,280
Speaker 1: salary people, uh, is at the folks on Wall Street

315
00:17:13,320 --> 00:17:17,239
Speaker 1: who you get paid uh uh fees and bonuses. So uh.

316
00:17:17,400 --> 00:17:22,199
Speaker 1: A lot of of scientific work on data is going

317
00:17:22,280 --> 00:17:24,200
Speaker 1: to be ahead for the feed. Yeah, and a lot

318
00:17:24,320 --> 00:17:26,919
Speaker 1: to go before the next decision coming up. And what

319
00:17:27,600 --> 00:17:29,840
Speaker 1: just about two months from now. I mean, that's gonna

320
00:17:29,840 --> 00:17:31,919
Speaker 1: be a lot of data that the FED is going

321
00:17:31,960 --> 00:17:36,040
Speaker 1: to have to digest from now until then. Give us

322
00:17:36,040 --> 00:17:40,520
Speaker 1: an idea of where we could see the messaging going

323
00:17:40,720 --> 00:17:44,520
Speaker 1: from here, given all the uncertainties that are just down

324
00:17:44,560 --> 00:17:47,360
Speaker 1: the pike. Well after this week, the next big data

325
00:17:47,400 --> 00:17:49,800
Speaker 1: point is a week from tomorrow when we get the

326
00:17:49,880 --> 00:17:53,440
Speaker 1: July Jobs report. The FED has made a big deal

327
00:17:53,480 --> 00:17:56,560
Speaker 1: out of how low unemployment is and that growth in

328
00:17:56,720 --> 00:18:00,240
Speaker 1: jobs has been steady, and so if that slows all

329
00:18:00,320 --> 00:18:02,560
Speaker 1: or if unemployment goes up at all them, that will

330
00:18:02,640 --> 00:18:05,480
Speaker 1: raise growth fears on Wall Street. If it doesn't, then

331
00:18:05,520 --> 00:18:08,320
Speaker 1: that could embolden the FED to raise rates at a

332
00:18:08,359 --> 00:18:11,879
Speaker 1: faster pace to a higher level. Then we'll get on

333
00:18:11,960 --> 00:18:15,919
Speaker 1: August tenth the CPI report for July, and obviously that

334
00:18:16,000 --> 00:18:18,760
Speaker 1: will be very big as it was the last time.

335
00:18:18,800 --> 00:18:22,000
Speaker 1: But before the FED meeting we get two CPI reports,

336
00:18:22,200 --> 00:18:27,679
Speaker 1: two jobs reports, and the PC Inflation Indicator, which is

337
00:18:27,680 --> 00:18:30,399
Speaker 1: the Fed's favorite. So, uh, they have a lot of

338
00:18:30,480 --> 00:18:33,679
Speaker 1: data to look at. And you know, why take a

339
00:18:33,720 --> 00:18:35,720
Speaker 1: stand on what you're gonna do right now when you

340
00:18:35,840 --> 00:18:38,080
Speaker 1: might have to change your mind later in our last

341
00:18:38,080 --> 00:18:40,760
Speaker 1: minute here, Mike, for those who missed the news conference.

342
00:18:40,840 --> 00:18:42,840
Speaker 1: What did you ask the chairman and did you like

343
00:18:42,960 --> 00:18:47,040
Speaker 1: the answer? I sort of asked him about this knowing

344
00:18:47,040 --> 00:18:50,160
Speaker 1: where you are thing? You know, where does the FED

345
00:18:50,359 --> 00:18:52,760
Speaker 1: think it is? And where does the FED think uh,

346
00:18:52,760 --> 00:18:56,520
Speaker 1: it's it's policies have had an effect, And he didn't

347
00:18:56,520 --> 00:19:00,040
Speaker 1: get a specific answer. But that's where I took the

348
00:19:00,160 --> 00:19:02,800
Speaker 1: idea that they don't quite know where they are yet

349
00:19:02,920 --> 00:19:06,600
Speaker 1: from UH. There wasn't a lot in this news coverage

350
00:19:06,640 --> 00:19:09,679
Speaker 1: that was new. UH. They left out the idea of

351
00:19:10,240 --> 00:19:14,080
Speaker 1: forward guidance. But beyond that, everything happened as expected. So

352
00:19:14,400 --> 00:19:16,720
Speaker 1: not a lot of surprises this time. We just have

353
00:19:16,760 --> 00:19:18,600
Speaker 1: to keep an eye on the data going forward. You

354
00:19:18,640 --> 00:19:21,480
Speaker 1: have to tune into Bloomberg Radio on a regular basis

355
00:19:21,520 --> 00:19:24,960
Speaker 1: to that information. Get the plug in. Thank you, Mike,

356
00:19:25,080 --> 00:19:28,320
Speaker 1: always great having you on. Michael McKee are economics correspondent

357
00:19:28,720 --> 00:19:32,600
Speaker 1: here on Bloomberg Radio, where we'll be parsing the data

358
00:19:33,000 --> 00:19:36,480
Speaker 1: high frequency UH from now until the next meeting in

359
00:19:36,600 --> 00:19:41,000
Speaker 1: late September. Right now, futures moving lower. We got SMP

360
00:19:41,080 --> 00:19:43,760
Speaker 1: futures down about eleven points right now, DAL future is down,

361
00:19:44,800 --> 00:19:47,479
Speaker 1: NAZAC futures are lower by eighty nine points ten. Your

362
00:19:47,520 --> 00:19:50,440
Speaker 1: treasury is up one thirty second now the yield two

363
00:19:50,480 --> 00:19:53,240
Speaker 1: point seven seven, almost two point seven eight percent on

364
00:19:53,280 --> 00:19:55,040
Speaker 1: the ten year note, yield on the two year right

365
00:19:55,040 --> 00:19:59,520
Speaker 1: now two point nine seven. And you are listening to

366
00:19:59,640 --> 00:20:08,080
Speaker 1: bloom Burke day Break. Good, good morning, Bloomberg eleven three

367
00:20:08,080 --> 00:20:10,080
Speaker 1: oh weather mix of sun and clouds and passing showers

368
00:20:10,119 --> 00:20:12,720
Speaker 1: and storms upper eighties today, tomorrow and the next day.

369
00:20:12,720 --> 00:20:16,320
Speaker 1: Actually when we'll see some more afternoon showers and storms

370
00:20:16,320 --> 00:20:19,040
Speaker 1: tomorrow most likely right now seventy four in Central Park,

371
00:20:22,119 --> 00:20:26,640
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York.

372
00:20:26,760 --> 00:20:29,840
Speaker 1: Bloomberg e living free on to Washington, d C, Bloomberg

373
00:20:29,960 --> 00:20:33,200
Speaker 1: nine one to Boston, Bloomberg one O six one to

374
00:20:33,320 --> 00:20:37,119
Speaker 1: San Francisco, Bloomberg sixty to the country, Sirius XM h

375
00:20:37,160 --> 00:20:39,960
Speaker 1: at A one ninet and around the globe the Bloomberg

376
00:20:39,960 --> 00:20:46,120
Speaker 1: Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak.

377
00:20:50,359 --> 00:20:52,680
Speaker 1: It's six thirty on Wall Street. Good morning. I'm Nathan

378
00:20:52,720 --> 00:20:55,639
Speaker 1: Hager and I'm Karen Moscow, and we are just about

379
00:20:55,640 --> 00:20:58,280
Speaker 1: three hours away from the open of US trading. Time

380
00:20:58,320 --> 00:20:59,919
Speaker 1: for the Five Things that you need to notice. Our

381
00:21:00,040 --> 00:21:04,000
Speaker 1: your day brought to you by Interactive Brokers. Interactive Brokers

382
00:21:04,040 --> 00:21:06,600
Speaker 1: charges Martin loan rates from two point eight percent to

383
00:21:06,680 --> 00:21:09,600
Speaker 1: three point eight percent, rates subject to change. Learn more

384
00:21:09,640 --> 00:21:12,960
Speaker 1: at I b k R dot com slash compare up First,

385
00:21:13,040 --> 00:21:15,679
Speaker 1: the US futures are slumping after the biggest game for

386
00:21:15,760 --> 00:21:19,920
Speaker 1: tech stock since November of Yesterday's push higher came after

387
00:21:20,000 --> 00:21:23,680
Speaker 1: resilient earnings in the Fed's press conference, but Victoria Green,

388
00:21:23,840 --> 00:21:27,760
Speaker 1: chief investment officer at G squared Private Wealth, remains defensive.

389
00:21:28,119 --> 00:21:31,320
Speaker 1: I think the Margaret Breeze side relief that really wasn't necessary,

390
00:21:31,359 --> 00:21:34,000
Speaker 1: So I think we realized the earnings really aren't that strong.

391
00:21:34,200 --> 00:21:37,120
Speaker 1: We're going into a hawkersh tightening cycle and a weakening

392
00:21:37,119 --> 00:21:39,520
Speaker 1: economic cycle. And I always think it's funny if we're

393
00:21:39,600 --> 00:21:42,359
Speaker 1: arguing about the definition of O sessions, we're probably in

394
00:21:42,440 --> 00:21:46,000
Speaker 1: a refecca. Victoria Greenwich G Squared Private Wealth said, the

395
00:21:46,080 --> 00:21:49,680
Speaker 1: FED is not being accommodative, but it is communicating well

396
00:21:49,840 --> 00:21:52,240
Speaker 1: and reaction continues to pour in Karen to FED Chair

397
00:21:52,320 --> 00:21:55,480
Speaker 1: J Powell's latest comments, the FED raised interest rate seventy

398
00:21:55,480 --> 00:21:58,359
Speaker 1: five basis points and Powell signal more hikes coming, but

399
00:21:58,440 --> 00:22:01,840
Speaker 1: ditched specific guidance. The pace of those increases will continue

400
00:22:01,880 --> 00:22:05,840
Speaker 1: to depend on the incoming data and evolving outlook for

401
00:22:05,880 --> 00:22:08,959
Speaker 1: the economy. Jay Pal says the FETE is fully committed

402
00:22:09,000 --> 00:22:12,000
Speaker 1: to restoring price stability. Oh up, next, Nathan, we get

403
00:22:12,000 --> 00:22:14,800
Speaker 1: a key reading on the US economy. Second quarter GDP

404
00:22:15,040 --> 00:22:17,919
Speaker 1: comes out at eight thirty am. Wall straight time economists

405
00:22:17,920 --> 00:22:21,280
Speaker 1: expect annualized growth of half of a percent after our

406
00:22:21,280 --> 00:22:24,359
Speaker 1: first quarter contraction. Okay, let's turn to earnings now, Karen.

407
00:22:24,440 --> 00:22:27,080
Speaker 1: Shares of meta platforms are down more than five percent.

408
00:22:27,240 --> 00:22:29,840
Speaker 1: The parent of Facebook and Instagram reported its first ever

409
00:22:29,920 --> 00:22:32,679
Speaker 1: quarterly sales decline. Up next, we get results from Apple,

410
00:22:32,680 --> 00:22:35,040
Speaker 1: and then Amazon and on the M and A front, Nathan.

411
00:22:35,119 --> 00:22:38,080
Speaker 1: Jet Blue is close to an agreement to buy Spirit Airlines.

412
00:22:38,119 --> 00:22:40,760
Speaker 1: Bloomberg's Nay Young is here alive with more. Good morning,

413
00:22:40,760 --> 00:22:43,879
Speaker 1: Rendy down, Good morning, Karen. Bloomberg. Sources say Jet Blues

414
00:22:43,920 --> 00:22:46,520
Speaker 1: deal to buy Spirit could come as soon as today.

415
00:22:46,920 --> 00:22:49,840
Speaker 1: The airline swooped in just hours after Spirit ended a

416
00:22:49,960 --> 00:22:53,760
Speaker 1: pending merger with Frontier Airlines. That deal fell apart on

417
00:22:53,800 --> 00:22:57,159
Speaker 1: a lack of shareholders support. The Spirit acquisition would be

418
00:22:57,240 --> 00:23:00,520
Speaker 1: Jet Blues best shot to broaden its network quick clee.

419
00:23:00,600 --> 00:23:04,360
Speaker 1: It will also inject an infusion of pilots and aircraft orders,

420
00:23:04,400 --> 00:23:06,920
Speaker 1: both of which are expected to be in short supply

421
00:23:07,080 --> 00:23:10,320
Speaker 1: for several years. Live in New York. I'm Renita Young,

422
00:23:10,359 --> 00:23:12,479
Speaker 1: Bloomberg Daybreak. We need a thanks a couple of important

423
00:23:12,480 --> 00:23:15,320
Speaker 1: political notes. Presidents Biden and hijin Ping speak today, and

424
00:23:15,359 --> 00:23:18,200
Speaker 1: on Capitol Hill, Senators Joe Mansion and Chuck Schumer reached

425
00:23:18,200 --> 00:23:21,360
Speaker 1: a deal on an energy and tax bill. And that's

426
00:23:21,359 --> 00:23:23,520
Speaker 1: the five things you need to notice start your day.

427
00:23:23,560 --> 00:23:26,360
Speaker 1: Brought to you by Interactive Brokers or any sure mark

428
00:23:26,520 --> 00:23:30,560
Speaker 1: crossing the Bloomberg second quarter sales beating analysts estimates, Slate ahead,

429
00:23:30,840 --> 00:23:33,199
Speaker 1: uh straight ahead rather your latest local headlines and at

430
00:23:33,200 --> 00:23:39,400
Speaker 1: czechis Sports. This is Bloomberg. Karen, Thank you to six

431
00:23:39,440 --> 00:23:41,800
Speaker 1: thirty three on Wall Street. We're at seventy four degrees

432
00:23:41,960 --> 00:23:44,520
Speaker 1: in Central Park and Michael Barr has more on what's

433
00:23:44,560 --> 00:23:46,879
Speaker 1: going on in New York and around the world. Good morning, Michael,

434
00:23:46,920 --> 00:23:50,000
Speaker 1: Good morning, Nathan. Secretary of State Anthony Lincoln said he

435
00:23:50,040 --> 00:23:53,679
Speaker 1: intends to speak with Russian foreign ministers Sergei Lavrov about

436
00:23:53,680 --> 00:23:57,640
Speaker 1: a substantial offer to free imprison Americans Britney Griner and

437
00:23:57,680 --> 00:24:00,560
Speaker 1: Paul Wheeland. A person familiar with the FORST said it

438
00:24:00,600 --> 00:24:04,919
Speaker 1: would swap them for imprisoned Russian arms dealer Victor Boot. However,

439
00:24:05,000 --> 00:24:08,439
Speaker 1: Russia says there was no agreement yet. National Security Council

440
00:24:08,480 --> 00:24:11,480
Speaker 1: spokesman John Kirby this has been at the top of

441
00:24:11,480 --> 00:24:13,959
Speaker 1: the mind for the President and for his whole national

442
00:24:13,960 --> 00:24:17,280
Speaker 1: security team. He receives regular updates about the status of

443
00:24:17,320 --> 00:24:20,480
Speaker 1: our negotiations to secure Brittany and Paul's release, as well

444
00:24:21,280 --> 00:24:24,439
Speaker 1: as other U S nationals who are wrongfully retained or

445
00:24:24,440 --> 00:24:26,919
Speaker 1: held hashness in Russia, and I might add around the

446
00:24:26,920 --> 00:24:30,200
Speaker 1: world as well. Spokesman Kirby says, though they won't negotiate

447
00:24:30,280 --> 00:24:33,440
Speaker 1: in public, Governor Kathy Okol and New York City Mayor

448
00:24:33,560 --> 00:24:36,680
Speaker 1: Eric Adams announced the groundbreaking on a one nine million

449
00:24:36,720 --> 00:24:40,439
Speaker 1: dollar affordable housing development in the Morris Heights section of

450
00:24:40,440 --> 00:24:45,280
Speaker 1: the Bronx. Governor Huckle says it will feature three affordable apartments.

451
00:24:45,400 --> 00:24:48,520
Speaker 1: Over two hundred of these homes are going to be

452
00:24:48,680 --> 00:24:52,560
Speaker 1: for people who've been homeless, who expend experienced some of

453
00:24:52,760 --> 00:24:57,399
Speaker 1: life's challenges, whether it's substibus or mental health challenges. They'll

454
00:24:57,440 --> 00:24:59,840
Speaker 1: be able to get to support of services, not by

455
00:25:00,000 --> 00:25:02,399
Speaker 1: trying to travel across town and go see somebody who

456
00:25:02,440 --> 00:25:04,800
Speaker 1: might be able to help him someday, maybe in between

457
00:25:04,840 --> 00:25:08,359
Speaker 1: their jobs, but right here on site. The Governor Hocle

458
00:25:08,440 --> 00:25:12,560
Speaker 1: says the national affordability crisis is driving rent and another

459
00:25:12,680 --> 00:25:15,679
Speaker 1: costs to New Highs. A seventy year old woman on

460
00:25:15,720 --> 00:25:18,399
Speaker 1: Long Island was attacked and killed by the family dog.

461
00:25:18,880 --> 00:25:21,760
Speaker 1: Police and Nassau County say they do not know what

462
00:25:21,880 --> 00:25:24,600
Speaker 1: prompted at the family's seven year old pitbull to attack

463
00:25:24,640 --> 00:25:28,840
Speaker 1: the woman. Nassau County Police Commissioner Patrick Ryder said her

464
00:25:28,920 --> 00:25:31,600
Speaker 1: husband came home from work as the woman was being

465
00:25:31,640 --> 00:25:35,639
Speaker 1: attacked in the backyard. Called When a husband arrived at

466
00:25:35,640 --> 00:25:37,680
Speaker 1: one o'clock, he went into the backyard and he found

467
00:25:37,680 --> 00:25:41,119
Speaker 1: his wife being attacked by the door. At that time

468
00:25:41,920 --> 00:25:45,280
Speaker 1: he dragged through the audit. Commissioner Writers said the dog

469
00:25:45,359 --> 00:25:47,919
Speaker 1: turned on one of the responding officers, who shot and

470
00:25:48,000 --> 00:25:51,680
Speaker 1: killed him. New York Attorney General Letitia James asked judge

471
00:25:51,720 --> 00:25:54,399
Speaker 1: to allow her to join a lawsuit brought against the

472
00:25:54,400 --> 00:25:56,840
Speaker 1: clock by a New York woman wounded in an April

473
00:25:56,840 --> 00:26:00,560
Speaker 1: shooting on a crowded subway train. Earlier this month, Clock

474
00:26:00,640 --> 00:26:03,160
Speaker 1: sought to have the suit dismissed under a federal law

475
00:26:03,200 --> 00:26:07,480
Speaker 1: shielding gunmakers from liability. The producers of Jeopardy say Myambi

476
00:26:07,520 --> 00:26:10,640
Speaker 1: Alec and Ken Jennings will both continue hosting the game

477
00:26:10,680 --> 00:26:13,880
Speaker 1: show next season. Global News twenty four hours a day

478
00:26:13,920 --> 00:26:16,840
Speaker 1: on air and on Bloomberg Quick Take, powered by more

479
00:26:16,880 --> 00:26:19,040
Speaker 1: than twenty seven hundred journalists and analysts more than a

480
00:26:19,080 --> 00:26:22,760
Speaker 1: hundred twenty countries. Michael bar this is Bloomberg, Nathan, Thank you, Michael.

481
00:26:27,320 --> 00:26:29,760
Speaker 1: Almost six thirty six On Wall Street. John Stanshar has

482
00:26:29,760 --> 00:26:32,040
Speaker 1: the Bloomberg Sports Day. Thanks Nathan. And the Mets had

483
00:26:32,119 --> 00:26:34,680
Speaker 1: to light their chances of sweeping the two game Subway series.

484
00:26:34,680 --> 00:26:36,680
Speaker 1: They won Tuesday and last night was Max Sher's. They're

485
00:26:36,680 --> 00:26:40,280
Speaker 1: pitching on his thirty eight birthday. Going against Domingo Herman

486
00:26:40,359 --> 00:26:43,119
Speaker 1: and Susy was terrific. Seven scoreless innings. He struck at

487
00:26:43,119 --> 00:26:45,600
Speaker 1: Aaron Judge three times, Peter Lonzo Homer Mets led to

488
00:26:45,680 --> 00:26:47,960
Speaker 1: nothing eighth any when Glabor Torres tied the game to

489
00:26:48,119 --> 00:26:50,480
Speaker 1: run Homer Rock David Peterson, but two new members of

490
00:26:50,520 --> 00:26:53,280
Speaker 1: the Mets combined to win at bottom the night leadoff

491
00:26:53,280 --> 00:26:56,040
Speaker 1: double by edwardo Escobar, he scored on a game winning

492
00:26:56,119 --> 00:26:58,239
Speaker 1: hit by Starling Marte. Mets won three to two. They

493
00:26:58,280 --> 00:27:01,040
Speaker 1: go up three games on Atlanta, and Jacob Grand pitched

494
00:27:01,080 --> 00:27:03,679
Speaker 1: four innings for a triple a. Syracuse gave up four runs.

495
00:27:03,680 --> 00:27:06,359
Speaker 1: But where it is. De Graham will make his highly

496
00:27:06,400 --> 00:27:10,200
Speaker 1: anticipated season debut sometime next week in a series in Washington.

497
00:27:10,200 --> 00:27:12,440
Speaker 1: Mean while, the Yankees made a trade with Kansas City,

498
00:27:12,480 --> 00:27:14,600
Speaker 1: one that had been rumored for a while. The Yanks

499
00:27:14,600 --> 00:27:17,639
Speaker 1: sent three Moner League pitchers of the Royals for outfielder

500
00:27:17,680 --> 00:27:20,760
Speaker 1: Andrew Benintendee. Here's Judge and his new teammates like that,

501
00:27:20,800 --> 00:27:22,280
Speaker 1: and especially a guy like that. He's been, you know,

502
00:27:22,359 --> 00:27:24,960
Speaker 1: hitting well over three hundred all year, you know, playing

503
00:27:24,960 --> 00:27:27,359
Speaker 1: great defense, and you know it's being kind of a

504
00:27:27,400 --> 00:27:30,800
Speaker 1: spark plug over there in Kansas City. Um, and time

505
00:27:30,920 --> 00:27:32,760
Speaker 1: to bring him into the type of culture we got.

506
00:27:32,760 --> 00:27:35,800
Speaker 1: It's always a plus and kind of a Cambus energy.

507
00:27:35,880 --> 00:27:38,000
Speaker 1: When Judge was rookie here in two thousand seventeen. Ben

508
00:27:38,000 --> 00:27:40,000
Speaker 1: Intende then with the Red Sox for the second he's

509
00:27:40,000 --> 00:27:42,120
Speaker 1: won a Gold Glove. He was just an All Star.

510
00:27:42,520 --> 00:27:44,960
Speaker 1: He's also unvaccinated, he may not be able to play

511
00:27:45,000 --> 00:27:47,240
Speaker 1: when the Yanks go to Toronto in September, and they

512
00:27:47,280 --> 00:27:50,120
Speaker 1: could possibly face the Blue Jays in the playoffs. Mike

513
00:27:50,119 --> 00:27:53,520
Speaker 1: Trout downplayed a quote from the Angels trainer that Trout's

514
00:27:53,560 --> 00:27:55,840
Speaker 1: back injury could affect him for the rest of his career.

515
00:27:56,200 --> 00:27:59,240
Speaker 1: Trout says he expects to return this season. John Stashatward

516
00:27:59,280 --> 00:28:02,240
Speaker 1: Bloomberg Sports, All right, John, thank you sixty seven on

517
00:28:02,240 --> 00:28:03,800
Speaker 1: Wall Street. Time to take a look at stock, some

518
00:28:03,840 --> 00:28:05,920
Speaker 1: of the names moving in the pre market with Bloomberg

519
00:28:06,000 --> 00:28:09,040
Speaker 1: Radio on TV, Markets correspondent creating Gupta and of course

520
00:28:09,080 --> 00:28:12,320
Speaker 1: the big mover created this morning with tech stocks on

521
00:28:12,359 --> 00:28:16,560
Speaker 1: the decline. Has to be what are we calling it? Facebook? Meta? What?

522
00:28:16,720 --> 00:28:20,000
Speaker 1: What's what's your Which team are you on? This is

523
00:28:20,000 --> 00:28:23,639
Speaker 1: such a controversial question, Nathan. I think I'm gonna call

524
00:28:23,760 --> 00:28:25,919
Speaker 1: metic because that is technically its name, and the ticker,

525
00:28:25,960 --> 00:28:27,760
Speaker 1: by the way, is now m E T A. But

526
00:28:27,880 --> 00:28:30,280
Speaker 1: of course for those unfamiliar with the metaverse, that we

527
00:28:30,280 --> 00:28:33,280
Speaker 1: can call it Facebook as well. Down five percent this

528
00:28:33,320 --> 00:28:35,040
Speaker 1: morning in the pre market, once again M E T

529
00:28:35,240 --> 00:28:37,320
Speaker 1: A is your ticker. This comes up to a disappoint

530
00:28:37,400 --> 00:28:40,200
Speaker 1: with that forecast miss. It's their first ever revenue drop.

531
00:28:40,240 --> 00:28:43,400
Speaker 1: In some ways, we saw this coming with Snapchat with

532
00:28:43,440 --> 00:28:45,960
Speaker 1: Twitter last week, all that pain in the advertising revenue

533
00:28:46,680 --> 00:28:50,080
Speaker 1: really hitting a snag. And of course Meta were formerly

534
00:28:50,080 --> 00:28:53,320
Speaker 1: known as Facebook also has a lot of these demographic challenges.

535
00:28:53,360 --> 00:28:55,360
Speaker 1: So this is going to be really crucial. Also, remember

536
00:28:55,440 --> 00:28:58,000
Speaker 1: just recently, for those who are into pop culture, Kylie

537
00:28:58,040 --> 00:29:00,520
Speaker 1: Kardashian recently came out and said Instagram AM needs to

538
00:29:00,560 --> 00:29:03,200
Speaker 1: look less like TikTok. So you are starting to see

539
00:29:03,440 --> 00:29:07,000
Speaker 1: uh Meta try to make their platforms a little bit

540
00:29:07,040 --> 00:29:10,240
Speaker 1: more UM geared towards a younger audience. They're still dealing

541
00:29:10,240 --> 00:29:13,160
Speaker 1: with that. And in those in that um in those

542
00:29:13,200 --> 00:29:14,959
Speaker 1: efforts or lack there up I should say lacking there

543
00:29:14,960 --> 00:29:17,360
Speaker 1: of success, you are starting to see the advertising sale

544
00:29:17,600 --> 00:29:20,360
Speaker 1: effort diminished as well. It's pretty clear to advertisers here

545
00:29:20,400 --> 00:29:23,440
Speaker 1: that Facebook does have a demographics problem, so that of

546
00:29:23,480 --> 00:29:26,400
Speaker 1: course is um taking quite the hit. The revenue for

547
00:29:26,440 --> 00:29:30,680
Speaker 1: this quarters to point five billion. The estimate Nathan was

548
00:29:30,840 --> 00:29:33,520
Speaker 1: thirty point three billions, so they really fell short of that,

549
00:29:33,560 --> 00:29:35,640
Speaker 1: and that's why you're seeing Meta shares down about five

550
00:29:35,640 --> 00:29:37,520
Speaker 1: percent this morning. And of course you got a lot

551
00:29:37,600 --> 00:29:41,200
Speaker 1: more check earning. Two big names in particular reporting later today,

552
00:29:41,560 --> 00:29:43,400
Speaker 1: two big ones. So we'll start with Apple. Here a

553
00:29:43,480 --> 00:29:45,680
Speaker 1: A p L is down about six tenths of one percent,

554
00:29:45,800 --> 00:29:48,360
Speaker 1: Amazon A m Z and as your taker down about

555
00:29:48,400 --> 00:29:50,560
Speaker 1: one percent. Both are reporting after the bell. Both are

556
00:29:50,640 --> 00:29:54,000
Speaker 1: these massive macro proxies. But remember this price action that

557
00:29:54,040 --> 00:29:56,440
Speaker 1: you're seeing early in the pre market, it's really your

558
00:29:56,440 --> 00:29:58,920
Speaker 1: reaction to yesterday. We saw the nasset close over four

559
00:29:59,000 --> 00:30:02,080
Speaker 1: percent yesterday with this kind of massive rally coming off

560
00:30:02,160 --> 00:30:04,880
Speaker 1: the FED, but then also coming off Alphabet and Microsoft earnings.

561
00:30:04,920 --> 00:30:06,520
Speaker 1: So to see a little bit of a pullback right

562
00:30:06,560 --> 00:30:10,000
Speaker 1: now is completely natural. That being said, Apple is still

563
00:30:10,000 --> 00:30:12,840
Speaker 1: that major proxy supply chain issues. Five backs are going

564
00:30:12,880 --> 00:30:14,560
Speaker 1: to be crucial just how much cash they have, and

565
00:30:14,560 --> 00:30:17,080
Speaker 1: of course for Amazon, the consumer story and the cloud

566
00:30:17,120 --> 00:30:20,080
Speaker 1: story crucial for that company. And just quickly we were

567
00:30:20,080 --> 00:30:22,880
Speaker 1: reporting that Jet Blue and Spirit Airlines are close to

568
00:30:22,920 --> 00:30:24,800
Speaker 1: a deal on a merger. Now it looks like it

569
00:30:24,800 --> 00:30:27,280
Speaker 1: could be a done deal. It's there are it looks

570
00:30:27,280 --> 00:30:29,520
Speaker 1: like they're right on the edge of of getting together.

571
00:30:29,560 --> 00:30:31,480
Speaker 1: This is going to become a major deal when it

572
00:30:31,520 --> 00:30:34,440
Speaker 1: comes to becoming a very competitive, low cost carrier. For

573
00:30:34,440 --> 00:30:37,760
Speaker 1: those who are familiar, Spirit was being acquired emerging, I

574
00:30:37,760 --> 00:30:39,280
Speaker 1: should say, with Frontier Group was going to be a

575
00:30:39,280 --> 00:30:42,080
Speaker 1: low cost regional carrier. There looks like that deal fell

576
00:30:42,160 --> 00:30:45,000
Speaker 1: through yesterday when the shareholder vote came through, Jet Blue

577
00:30:45,000 --> 00:30:47,880
Speaker 1: hopping on it. Now they're in active conversations. Remember Jet

578
00:30:47,920 --> 00:30:51,280
Speaker 1: Blues also going under regulatory scrutiny with American Airlines. Nevertheless,

579
00:30:51,280 --> 00:30:53,400
Speaker 1: that is good news for Spirit. S a v as

580
00:30:53,440 --> 00:30:56,720
Speaker 1: your taker up three seven. The sprain Berg Radio and

581
00:30:56,760 --> 00:31:00,480
Speaker 1: TV markets correspondent crept with us this morning, taking a

582
00:31:00,520 --> 00:31:03,800
Speaker 1: look at stocks as the whole. SMP futures are down

583
00:31:04,560 --> 00:31:08,280
Speaker 1: nine points, Staff futures down forty three, Dasdack futures down

584
00:31:08,360 --> 00:31:10,960
Speaker 1: seventy seven points. Ten. Your treasury is up one thirty

585
00:31:11,040 --> 00:31:15,840
Speaker 1: second to yield two point on the benchmark ten year

586
00:31:15,960 --> 00:31:23,680
Speaker 1: treasury note. This is Bloomberg Bloomberg eleven three oh Weather

587
00:31:23,720 --> 00:31:27,400
Speaker 1: calls for highs near ninety degrees into Saturday, but today

588
00:31:27,400 --> 00:31:30,360
Speaker 1: and tomorrow to see some afternoon showers and storms. Right

589
00:31:30,400 --> 00:31:38,320
Speaker 1: now seventy five partly cloudy in central Park. Markets headlines

590
00:31:38,360 --> 00:31:41,360
Speaker 1: and breaking news twenty four hours a day at Bloomberg

591
00:31:41,400 --> 00:31:44,440
Speaker 1: dot com. The Bloomberg Business at and at Bloomberg quick

592
00:31:44,520 --> 00:31:54,400
Speaker 1: tape is a Bloomberg Business Flash and I'm Karen Moscow

593
00:31:54,600 --> 00:31:57,920
Speaker 1: and futures lower this morning on a busy morning for

594
00:31:58,080 --> 00:32:00,920
Speaker 1: corporate earnings and on a deal in the airline industry.

595
00:32:01,000 --> 00:32:02,640
Speaker 1: We go to the first word breaking news dance for

596
00:32:02,680 --> 00:32:05,600
Speaker 1: today's morning call. Here is Bill Maloney. Bill, good morning

597
00:32:06,640 --> 00:32:08,920
Speaker 1: and good morning, Karen. That's right. US futures are in

598
00:32:08,920 --> 00:32:11,640
Speaker 1: the red right now down, futures down sixty points, SUPs

599
00:32:11,680 --> 00:32:15,400
Speaker 1: drop eleven will nasdack. Futures are looked off by seventy eight.

600
00:32:15,720 --> 00:32:18,400
Speaker 1: The US ten year old the two point seven eight percent,

601
00:32:18,480 --> 00:32:21,240
Speaker 1: Gold is up seven, oil is climbing, and bitcoin is

602
00:32:21,320 --> 00:32:24,520
Speaker 1: up by one percent. Asian markets were quiet overnight, while

603
00:32:24,520 --> 00:32:26,920
Speaker 1: e up markets are trading mixed this morning and back

604
00:32:26,920 --> 00:32:29,200
Speaker 1: in the US. On the economic frontday thirty g d

605
00:32:29,320 --> 00:32:32,000
Speaker 1: P and initial job as claims after the bell US

606
00:32:32,000 --> 00:32:34,800
Speaker 1: to night, Facebook had its first ever revenue drop and

607
00:32:34,840 --> 00:32:37,440
Speaker 1: regarding some of those earnings this morning, Murk boosted its

608
00:32:37,440 --> 00:32:41,840
Speaker 1: fisky your sales forecast, Honeywell and Fiser EPs beat estimates.

609
00:32:42,120 --> 00:32:44,640
Speaker 1: In deal news, jet Blue to buy Spirit Airlines for

610
00:32:44,720 --> 00:32:47,400
Speaker 1: thirty three hours and fifty cents you share in cash

611
00:32:47,760 --> 00:32:49,680
Speaker 1: and wrapping things up. Best Buy was cut. The hold

612
00:32:49,680 --> 00:32:53,000
Speaker 1: at Jeffreys craft Hines was raised to buy overd Stephole.

613
00:32:53,520 --> 00:32:57,120
Speaker 1: Live from the first breaking Newsdscomb, Bill Maloney, Karen, all right, Phil,

614
00:32:57,200 --> 00:32:59,080
Speaker 1: thank you, and to hear live breaking news of her

615
00:32:59,120 --> 00:33:02,840
Speaker 1: Bloomberg types. Squawk on your terminal, SCU A w K

616
00:33:03,120 --> 00:33:06,160
Speaker 1: and Yeah. Earnings continued across the Bloomberg again Fier second

617
00:33:06,240 --> 00:33:10,240
Speaker 1: quarter revenue beating analysts estimates. And that's a Bloomberg business flash.

618
00:33:10,240 --> 00:33:12,360
Speaker 1: Now here's Michael bar with Moore on what's going on

619
00:33:12,400 --> 00:33:15,240
Speaker 1: around the world. Michael, Karen, thank you very much. Russia

620
00:33:15,360 --> 00:33:18,280
Speaker 1: says no agreement has been reached yet on the prisoners

621
00:33:18,280 --> 00:33:21,360
Speaker 1: swap with the U. S Secretary of State Anthony B.

622
00:33:21,400 --> 00:33:24,479
Speaker 1: Lincoln says they will offer a way to bring w

623
00:33:24,680 --> 00:33:27,240
Speaker 1: n B A star Brittney Griner in former US Marine

624
00:33:27,240 --> 00:33:31,080
Speaker 1: Paul Wheeland out of Russian detention and back to the US.

625
00:33:31,400 --> 00:33:34,520
Speaker 1: A person familiar with the potential swap says the US

626
00:33:34,920 --> 00:33:39,720
Speaker 1: is proposing trading infamous Russian arms dealer Victor Boot. Russian

627
00:33:39,720 --> 00:33:44,040
Speaker 1: forces have launched massive missile strikes on regions near Kiev. Meanwhile,

628
00:33:44,160 --> 00:33:48,160
Speaker 1: Ukrainian officials announced in operation to liberate and occupied region

629
00:33:48,200 --> 00:33:50,800
Speaker 1: in the country's south. And baseball. The Mets beat the

630
00:33:50,880 --> 00:33:54,760
Speaker 1: Yankees three to, The Guardians beat the Red Sox seven six,

631
00:33:54,840 --> 00:33:58,120
Speaker 1: The Dodgers beat the Nationals, The Rays beat the Orioles,

632
00:33:58,160 --> 00:34:02,160
Speaker 1: the A's beat the ass Throws four to, the Diamondbacks

633
00:34:02,160 --> 00:34:05,120
Speaker 1: beat the Giants. Global news twenty four hours a day

634
00:34:05,280 --> 00:34:08,560
Speaker 1: on air and on Bloomberg Quick Take, powered by more

635
00:34:08,600 --> 00:34:11,400
Speaker 1: than seven hundred journalists and analysts more than a hundred

636
00:34:11,400 --> 00:34:15,040
Speaker 1: twenty countries. Michael Barr and this is Bloomberg. Can all right, Michael,

637
00:34:15,080 --> 00:34:18,080
Speaker 1: thank you? And at sixty nine on Wall Street, return

638
00:34:18,120 --> 00:34:21,120
Speaker 1: to news now in science and technology with the Bloomberg

639
00:34:21,200 --> 00:34:23,359
Speaker 1: and j I T S STEM Report. It is brought

640
00:34:23,400 --> 00:34:27,160
Speaker 1: to you by New Jersey Institute of Technology, transforming computing

641
00:34:27,200 --> 00:34:29,880
Speaker 1: professionals into data scientists to meet the demand in this

642
00:34:30,040 --> 00:34:32,600
Speaker 1: fast growing field. Learn more at n j I T

643
00:34:32,800 --> 00:34:35,719
Speaker 1: DOT A d U slash Data Science and now here's

644
00:34:35,719 --> 00:34:38,960
Speaker 1: this making news and science, technology, engineering and math. On

645
00:34:39,080 --> 00:34:41,640
Speaker 1: Capitol Hill, the House is expected to approve a bill

646
00:34:41,920 --> 00:34:45,239
Speaker 1: which includes fifty two billion dollars for U S semiconductor

647
00:34:45,320 --> 00:34:48,560
Speaker 1: manufacturers is sent it passed. The measure yesterday. It's a

648
00:34:48,600 --> 00:34:52,760
Speaker 1: major legislative victory for President Biden. The US chip industry

649
00:34:52,800 --> 00:34:56,040
Speaker 1: has steadily lost ground to overseas rivals in recent years.

650
00:34:56,719 --> 00:34:59,000
Speaker 1: After weeks of delays, how the regulators see nearly eight

651
00:34:59,080 --> 00:35:01,520
Speaker 1: hundred thousand dos is that the Monkey Pops vaccine will

652
00:35:01,520 --> 00:35:04,959
Speaker 1: soon be available for a distribution. He announcement comes amid

653
00:35:05,000 --> 00:35:08,080
Speaker 1: growing criticism that authorities have been too slow and deploying

654
00:35:08,080 --> 00:35:11,320
Speaker 1: the vaccine, potentially missing the window to contain what could

655
00:35:11,360 --> 00:35:16,399
Speaker 1: soon become an entrenched infectious disease. And more research suggests

656
00:35:16,640 --> 00:35:20,000
Speaker 1: it maybe time to abandon the craze over vitamin D

657
00:35:20,680 --> 00:35:23,320
Speaker 1: and a study published in the New England Journal of Medicine,

658
00:35:23,360 --> 00:35:26,799
Speaker 1: researchers say taking high doses of the vitamin does not

659
00:35:27,040 --> 00:35:30,640
Speaker 1: reduce the risk of broken bones in generally healthy older

660
00:35:30,680 --> 00:35:34,400
Speaker 1: Americans and estimated third of Americans sixty and older taking

661
00:35:34,400 --> 00:35:37,000
Speaker 1: the supplements in more than ten million blood tests for

662
00:35:37,080 --> 00:35:41,080
Speaker 1: vitamin D levels are performed annually, despite years of controversy

663
00:35:41,320 --> 00:35:44,520
Speaker 1: over whether the average older adult needs either. And that's

664
00:35:44,520 --> 00:35:47,800
Speaker 1: a Bloomberg and j I T Stem report. Nathan, all right, Karen,

665
00:35:47,800 --> 00:35:50,280
Speaker 1: thank you. We are live from the Bloomberg Interactive Broker Studios,

666
00:35:50,320 --> 00:35:52,920
Speaker 1: where it's six fifty one on Wall Street Time now

667
00:35:52,960 --> 00:35:55,239
Speaker 1: to check what's going on in d C. Some of

668
00:35:55,280 --> 00:35:58,160
Speaker 1: the top stories in our nation's capital include Senator's Mansion

669
00:35:58,200 --> 00:36:01,560
Speaker 1: and Schumer reviving and economic deal that Washington had left

670
00:36:01,600 --> 00:36:04,400
Speaker 1: for dead, Secretary of State Blanket to speak with his

671
00:36:04,480 --> 00:36:08,320
Speaker 1: Russian counterpart about a prisoner swap, and President Biden speaking

672
00:36:08,320 --> 00:36:11,239
Speaker 1: with China's Shi Jin Pink, with a Pelosi trip to

673
00:36:11,280 --> 00:36:14,279
Speaker 1: Taiwan still up in the air. For more, we're joined

674
00:36:14,280 --> 00:36:18,439
Speaker 1: by Bloomberg government reporter Jack Fitzpatrick from the Nation's Capital. Jack,

675
00:36:18,520 --> 00:36:22,760
Speaker 1: let's start off with this deal in the Senate Democratic side.

676
00:36:22,800 --> 00:36:26,799
Speaker 1: We had thought this wasn't gonna get done until maybe September.

677
00:36:26,840 --> 00:36:29,359
Speaker 1: How did this come to pass? Oh, we really didn't

678
00:36:29,440 --> 00:36:31,319
Speaker 1: think that this was going to happen at all, at

679
00:36:31,360 --> 00:36:34,759
Speaker 1: least a substantial portion of what what they just announced. Uh.

680
00:36:34,920 --> 00:36:37,960
Speaker 1: They had been moving forward on the Democratic side with

681
00:36:38,440 --> 00:36:41,840
Speaker 1: a bill that really was mostly a prescription drug pricing

682
00:36:41,920 --> 00:36:45,960
Speaker 1: measure with some Affordable Care Act UH subsidy extensions. And

683
00:36:46,000 --> 00:36:50,120
Speaker 1: then yesterday Mansion announced he and Schumer had had come

684
00:36:50,160 --> 00:36:53,640
Speaker 1: to an agreement on tax measures. UH. The big one

685
00:36:53,719 --> 00:36:57,480
Speaker 1: is a fifteen percent corporate minimum tax and energy and

686
00:36:57,640 --> 00:37:02,520
Speaker 1: climate spending and tack some measures essentially some some clean

687
00:37:02,600 --> 00:37:07,440
Speaker 1: energy stuff that's tied to requirement that there be federal

688
00:37:07,960 --> 00:37:11,239
Speaker 1: land oil and gas leases. So it's sort of a

689
00:37:11,280 --> 00:37:14,920
Speaker 1: Joe Mansion all of the above energy policy, but there

690
00:37:15,000 --> 00:37:17,959
Speaker 1: is clean energy stuff in there that Democrats had thought

691
00:37:17,960 --> 00:37:20,000
Speaker 1: they would have to give up on. So this really

692
00:37:20,000 --> 00:37:24,359
Speaker 1: came together quietly and made this a much bigger bill, uh,

693
00:37:24,440 --> 00:37:28,240
Speaker 1: not quite the original build back better, but significantly larger

694
00:37:28,280 --> 00:37:30,640
Speaker 1: than what they had been talking about recently. They a

695
00:37:30,640 --> 00:37:33,800
Speaker 1: lot of people had given up on a significant tax

696
00:37:33,920 --> 00:37:37,439
Speaker 1: and energy measure through the reconciliation process. Yeah. I guess

697
00:37:37,440 --> 00:37:40,280
Speaker 1: the idea here, Jack, is that it's bigger than nothing,

698
00:37:40,400 --> 00:37:43,360
Speaker 1: which we had thought was going to be the case

699
00:37:43,400 --> 00:37:46,920
Speaker 1: at least into the Senate recess. Here. But when we

700
00:37:47,080 --> 00:37:51,440
Speaker 1: think about the tax provisions, are all fifty senators on

701
00:37:51,480 --> 00:37:55,240
Speaker 1: the Democratic side on board with a fifteen percent corporate

702
00:37:55,239 --> 00:37:58,960
Speaker 1: minimum tax? We don't know yet. You know, there's been

703
00:37:59,000 --> 00:38:02,160
Speaker 1: so much focus on mansion that I think sometimes it's

704
00:38:02,200 --> 00:38:05,680
Speaker 1: lost that Kirsten Cinema is probably the other main X factor,

705
00:38:06,120 --> 00:38:10,200
Speaker 1: especially on tax issues. There is a measure in this

706
00:38:10,280 --> 00:38:13,440
Speaker 1: deal that Mansion has signed off on to close the

707
00:38:13,680 --> 00:38:18,120
Speaker 1: carried interest loophole. It's basically a way that UH fund

708
00:38:18,320 --> 00:38:22,520
Speaker 1: managers pay lower amounts on their income by considering a

709
00:38:22,560 --> 00:38:26,040
Speaker 1: carrying carried interest rather than paying an income tax. UH.

710
00:38:26,080 --> 00:38:28,120
Speaker 1: It wouldn't raise a massive amount of money. If they

711
00:38:28,120 --> 00:38:30,680
Speaker 1: needed to pull it out that that might not kill

712
00:38:30,760 --> 00:38:33,880
Speaker 1: the bill, but Cinema has not signed off on something

713
00:38:33,920 --> 00:38:36,920
Speaker 1: like that. In particular, they do need unity on this.

714
00:38:37,120 --> 00:38:39,279
Speaker 1: It's it's something Republicans are not going to support. They

715
00:38:39,280 --> 00:38:42,920
Speaker 1: can do it with fifty votes plus the tiebreaker, but

716
00:38:42,960 --> 00:38:45,279
Speaker 1: that means they need all fifty Democrats to agree, so

717
00:38:45,360 --> 00:38:48,520
Speaker 1: Cinema could play the spoiler. Uh. The House is such

718
00:38:48,560 --> 00:38:51,440
Speaker 1: a narrow margin, we can't guarantee that it gets through

719
00:38:51,480 --> 00:38:54,640
Speaker 1: the House. But to have a deal between Leadership and

720
00:38:54,719 --> 00:38:58,200
Speaker 1: Mansion is the biggest step forward that Democrats have taken

721
00:38:58,280 --> 00:39:00,440
Speaker 1: on these kinds of issues, and so only if it

722
00:39:00,520 --> 00:39:04,960
Speaker 1: goes forward a pretty significant political and policy victory for

723
00:39:05,000 --> 00:39:08,560
Speaker 1: President Biden as well. Let's turn to something else happening

724
00:39:08,560 --> 00:39:10,880
Speaker 1: in the Biden administration. We got this announcement from Secretary

725
00:39:10,880 --> 00:39:13,080
Speaker 1: of State Blincoln that he's working on a potential prisoner

726
00:39:13,120 --> 00:39:16,920
Speaker 1: swap with Russia. Yes, so he just said yesterday he

727
00:39:17,040 --> 00:39:21,960
Speaker 1: is planning to speak with Sergei Lavrov, the Russian Foreign Minister,

728
00:39:22,239 --> 00:39:25,560
Speaker 1: and that previously some some information had come out that

729
00:39:25,600 --> 00:39:30,600
Speaker 1: there was an offer to swap the Russian arms dealer

730
00:39:30,880 --> 00:39:35,719
Speaker 1: Victor Boot for Brittany Grinder and Paul Wheelan. Uh we

731
00:39:35,800 --> 00:39:39,480
Speaker 1: don't have an update yet on what exactly the Russian

732
00:39:39,560 --> 00:39:42,000
Speaker 1: response was to that. It may be the case that

733
00:39:42,040 --> 00:39:45,080
Speaker 1: they're trying to provoke more of a response from Russia

734
00:39:45,360 --> 00:39:48,480
Speaker 1: to that offer by talking about this publicly and saying

735
00:39:48,480 --> 00:39:50,839
Speaker 1: that they planned to follow up and have a call

736
00:39:50,960 --> 00:39:53,440
Speaker 1: between Blincoln and Lavrov, which would actually be the first

737
00:39:53,719 --> 00:39:57,840
Speaker 1: direct communication between them since the Russian invasion of Ukraine.

738
00:39:58,239 --> 00:40:02,240
Speaker 1: UH So it is uh, I guess, if not a gamble,

739
00:40:02,560 --> 00:40:07,200
Speaker 1: a significant uh investment from Blincoln in the US to

740
00:40:07,360 --> 00:40:10,000
Speaker 1: try to reach out and force the issue and and

741
00:40:10,120 --> 00:40:12,960
Speaker 1: follow up on this offer on a prisoner swap. And

742
00:40:13,000 --> 00:40:15,719
Speaker 1: of course we do have the call confirmed now this

743
00:40:15,760 --> 00:40:19,719
Speaker 1: morning between President and Biden and Chinese leader she Jin Ping.

744
00:40:19,920 --> 00:40:24,160
Speaker 1: Is there still an overhang though about Speaker Pelosi potentially

745
00:40:24,520 --> 00:40:28,319
Speaker 1: going to Taiwan. That is maybe the main issue that

746
00:40:28,320 --> 00:40:29,799
Speaker 1: that we're going to be looking forward to see if

747
00:40:29,800 --> 00:40:34,200
Speaker 1: they discussed that. Pelosi has not ruled out the possibility

748
00:40:34,320 --> 00:40:37,319
Speaker 1: of a trip to Taiwan. Uh. That is something that

749
00:40:37,360 --> 00:40:39,920
Speaker 1: the Chinese government has warned against. And you heard a

750
00:40:39,920 --> 00:40:42,719
Speaker 1: little while back Biden say that the military, the US

751
00:40:42,800 --> 00:40:45,440
Speaker 1: military didn't think it was it was a good idea. Uh.

752
00:40:45,520 --> 00:40:49,440
Speaker 1: So that is the probably primary point of tension in

753
00:40:49,480 --> 00:40:53,120
Speaker 1: this call between Biden and Shijin Ping. I would also

754
00:40:53,200 --> 00:40:57,480
Speaker 1: look to see if there's conversations about lifting tariffs applied

755
00:40:57,600 --> 00:41:00,080
Speaker 1: on China during the Trump administration. That's the other a

756
00:41:00,160 --> 00:41:02,480
Speaker 1: big thing to look forward to uh in that call.

757
00:41:02,560 --> 00:41:05,160
Speaker 1: But those two issues are would be really big ones

758
00:41:05,239 --> 00:41:08,520
Speaker 1: for Biden and she to discuss in our last minute.

759
00:41:08,560 --> 00:41:11,680
Speaker 1: Here Jack, some interesting breaking news this morning reports that

760
00:41:11,760 --> 00:41:16,560
Speaker 1: House Democrats are thinking about a ban on stock trading. Yeah. So,

761
00:41:16,840 --> 00:41:19,440
Speaker 1: punch Bowl had a story this morning that House Democrats

762
00:41:19,480 --> 00:41:24,080
Speaker 1: planned to announce a proposal that would ban lawmakers and

763
00:41:24,280 --> 00:41:29,359
Speaker 1: their spouses and senior staff from trading stocks. Essentially, this

764
00:41:29,440 --> 00:41:34,040
Speaker 1: would allow things like mutual funds, but they couldn't actually

765
00:41:34,080 --> 00:41:38,359
Speaker 1: be trading stocks. They could either divest completely or put

766
00:41:38,400 --> 00:41:42,120
Speaker 1: their assets in a blind trust. Uh. This is something

767
00:41:42,280 --> 00:41:44,680
Speaker 1: this is a bill they would want to enact into law.

768
00:41:44,800 --> 00:41:46,640
Speaker 1: So this is something that would have to get sixty

769
00:41:46,719 --> 00:41:49,280
Speaker 1: votes in the Senate. Raises a lot of questions about

770
00:41:49,400 --> 00:41:52,680
Speaker 1: exactly how that would happen. It's a again, a House

771
00:41:52,760 --> 00:41:56,319
Speaker 1: Democratic proposal. There's no bipartisan deal on this kind of thing,

772
00:41:56,320 --> 00:41:58,400
Speaker 1: and when you get closer to the mid terms, maybe

773
00:41:58,400 --> 00:42:00,880
Speaker 1: it's a bit more political message jing but it's an

774
00:42:00,880 --> 00:42:03,359
Speaker 1: issue that has come up enough over the last couple

775
00:42:03,400 --> 00:42:05,440
Speaker 1: of years that has clearly got some salience, and it's

776
00:42:05,440 --> 00:42:08,520
Speaker 1: an issue where House Democratic leadership feels the need to

777
00:42:08,520 --> 00:42:12,120
Speaker 1: put out a proposal. Alright. Bloomberg Government reporter Jack Fitzpatrick

778
00:42:12,239 --> 00:42:14,239
Speaker 1: with us this morning. You can read more about these

779
00:42:14,239 --> 00:42:17,320
Speaker 1: stories on Bloomberg dot com or on the Bloomberg terminal.

780
00:42:17,680 --> 00:42:21,560
Speaker 1: Listen to Bloomberg Radio in Washington Bloomberg one and one

781
00:42:21,560 --> 00:42:25,200
Speaker 1: oh five point seven FM HD two SFP futures down

782
00:42:25,239 --> 00:42:28,319
Speaker 1: twelve points, Style futures down sixty seven, NASDAC features are

783
00:42:28,360 --> 00:42:31,280
Speaker 1: lower by eighty four points ten. Your treasury little changed.

784
00:42:31,440 --> 00:42:34,279
Speaker 1: Right now the yield two point seven eight percent and

785
00:42:34,400 --> 00:42:36,600
Speaker 1: the yield on the two year right now two point

786
00:42:36,719 --> 00:42:40,600
Speaker 1: nine seven percent. Bloomberg surveillance is next with Tom King,

787
00:42:40,680 --> 00:42:45,480
Speaker 1: Jonathan Farrell, and Lisa Abramowitz for Karen Moscow. I'm Nathan Hagar,

788
00:42:45,920 --> 00:42:47,759
Speaker 1: and this is Bloomberg