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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. Good morning, I'm Nathan

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Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're

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Speaker 1: following today.

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Speaker 2: Karen starks in Europe around the rise ahead of a

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Speaker 2: key rate decision from the Bank of England. Let's go

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Speaker 2: to London and get the very latest with Bloomberg's Ewan

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Speaker 2: parts Nathan and Karen.

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Speaker 3: Decision day for the Bank of England, but with the

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Speaker 3: UK's general election now exactly two weeks away, every single

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Speaker 3: economist in our survey expects the bank to hold rates

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Speaker 3: today at five and a quarter percent, avoiding making a

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Speaker 3: move which could be seen as political. But with inflation

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Speaker 3: now down to the two percent target, investors are watching

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Speaker 3: the signs of when officials will make their first move,

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Speaker 3: and keep an eye on the vote split. Last time

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Speaker 3: two members wanted a cut. Will the Doves win any

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Speaker 3: converts this time around? In London? I'm Une Pots Blinberg Radio.

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Speaker 1: Right you and thanks Well. It's a busy morning for

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Speaker 1: policy decisions in Europe and a bit of a surprise.

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Speaker 1: The Swiss National Bank cut rates once again another quarter

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Speaker 1: of a point to one and a quarter percent. A

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Speaker 1: small majority of the economist surveyed by Bloomberg anticipated no change,

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Speaker 1: and in Norway the central bank left rates unchanged at

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Speaker 1: four and a half percent.

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Speaker 2: In Asia, cara In, a Japanese bank, is sending a

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Speaker 2: global warning on higher for longer rates. Nor In Chuckenbank

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Speaker 2: surprise the market this week by saying it would unload

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Speaker 2: sixty three billion dollars in bonds to stem losses. While NOURN,

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Speaker 2: Chucken and the Japanese government have expressed confidence in the

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Speaker 2: bank's ability to weather the losses, the episode is a

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Speaker 2: reminder of the danger still lurking in the financial system.

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Speaker 2: Fifteen months after the collapse of Silicon Valley Bank.

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Speaker 1: Well back at home, Nathan, US treasuries are on the

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Speaker 1: brink of breaking even during a roller coaster first half

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Speaker 1: of the year. At Bloomberg gauge of returns in the

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Speaker 1: world's biggest bond market is now down just one tenth

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Speaker 1: of a percent for twenty twenty four. The rebound comes

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Speaker 1: after treasury is lost as much as three point four

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Speaker 1: percent for the year in April. Investors are betting that

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Speaker 1: cooling prices what can vince the Fed to cut rates

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Speaker 1: sooner and buy more than officials have signaled.

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Speaker 2: It's Cerner News out of Washington, Now, Karen. The families

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Speaker 2: of Boeing seven thirty seven Max crash victims are asking

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Speaker 2: the Justice Department to slap a massive fine on the Planemaker.

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Speaker 2: Bloomberg's head Baxter has details.

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Speaker 4: In a letter to the DOJ. They're asking for nearly

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Speaker 4: twenty five billion dollars, saying the amount is legally justified

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Speaker 4: and clearly appropriate. The letter comes a day after Boeing

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Speaker 4: CEO Dave Calhoun faced a grilling in front of the

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Speaker 4: Senate subcommittee, accused of having a broken safety culture. The

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Speaker 4: letter says fourteen to twenty two billion of the total

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Speaker 4: amount could be suspended if Boeing were to devote those

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Speaker 4: funds to an independent corporate monitor and improvements to its

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Speaker 4: safety programs. The attorney representing the family said they deserve

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Speaker 4: some payout as well at Baxter Bloomberg Radio.

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Speaker 1: All right, and thanks. Now, let's turn to politics and

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Speaker 1: a new view on the November election from China. US

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Speaker 1: intelligence agencies have found Chinese leaders have no clear preference

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Speaker 1: between President Trump or former president excuse meet, President Biden

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Speaker 1: or former President Trump, and they think ties will continue

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Speaker 1: to deteriorate no matter who wins. That's according to US

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Speaker 1: officials US and not to be identified. Mark Franklin, senior

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Speaker 1: portfolio manager at Manulife Asset Management, says the assessment is

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Speaker 1: not a surprise.

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Speaker 5: If you look at the Biden administration's actions rather than words.

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Speaker 5: We have seen a significant bipartisan consensus forming across the

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Speaker 5: isle in the US of the needs to address the

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Speaker 5: perceived asymmetries in the trading and the industrial relationship between

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Speaker 5: China and the US economy. That is unlikely to change

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Speaker 5: no matter who November election.

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Speaker 1: Mark Franklin and Manulife says the difference between Biden and

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Speaker 1: Trump on China will likely come down to style over substance.

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Speaker 1: Chinese officials think a second Trump administration could mean unpredictable

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Speaker 1: policymaking and new anti China measures. Well, Biden could look

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Speaker 1: to strengthen regional partnerships to push back against China.

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Speaker 2: High stakes congressional race in Virginia is revealing yet another

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Speaker 2: example of former President Trump's influence on the Republican Party.

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Speaker 2: With ninety eight percent of the vote in state, Senator

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Speaker 2: John Maguire leads incumbent Congressman Bob Good in the fifth

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Speaker 2: District primary race by six tenths of one percent, or

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Speaker 2: around three hundred votes. That is too close to call.

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Speaker 2: This race is likely headed for a recount. Good is

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Speaker 2: the chairman of the House Freedom Caucus, but he lost

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Speaker 2: Trump's endorsement after he back to Florida Governor Ron DeSantis

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Speaker 2: for president. McGuire won the Trump endorsement and actually declared

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Speaker 2: victory Tuesday night, but Good is expressing confidence he has

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Speaker 2: a path to victory as well without standing ballots to

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Speaker 2: be counted as soon as today.

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Speaker 1: Well Nathan Holidays are usually a busy time for car dealers,

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Speaker 1: so this couldn't have come at a worse time. A

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Speaker 1: cyber attack shut down thousands of dealerships across the country

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Speaker 1: during the Juneteenth holiday. The incident targeted a CDK Global,

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Speaker 1: the software provider many dealers rely on for almost all

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Speaker 1: their business. According to Proton, a cybersecurity for the auto industry,

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Speaker 1: the outage left some dealers unable to function at all,

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Speaker 1: while others had to switched to paper for routine services

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Speaker 1: like oil changes. Broton said some CDK functions were restored

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Speaker 1: by the afternoon, but the service is still not fully operational.

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Speaker 2: Karen Citygroup says artificial intelligence is likely to displace more

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Speaker 2: jobs in banking than anywhere else. A report from the

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Speaker 2: Bank predicts more than half the jobs in the financial

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Speaker 2: sector could be automated. Bloomberg's James Woolcock reports.

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Speaker 6: Long established jobs and firms will vanish, and global profits

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Speaker 6: will be one hundred and seventy billion dollars higher in

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Speaker 6: the next five years. That's the verdict of Citygroup's report

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Speaker 6: into how AI will transform the world of finance. It

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Speaker 6: says fifty four percent of jobs in banking can be automated.

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Speaker 6: Although firms may keep headcount steady as they hire AI

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Speaker 6: managers to keep in line with regulations, some of the

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Speaker 6: world's biggest banks are already poaching AI engineers and looking

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Speaker 6: to integrate them into that portfolio. The ACE in London

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Speaker 6: James Ulcock the begra.

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Speaker 1: Idea all right, James, thank you well. Advanced micro devices

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Speaker 1: as a recent cyber attack will not have a material

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Speaker 1: impact on business. The second largest maker of PC processors

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Speaker 1: launched an investigation this week after reports at an organization

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Speaker 1: called Intel Broker had breached its systems. Yesterday, AMD followed

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Speaker 1: up to say that the intrusion did not obtain business

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Speaker 1: critical information. AMD is the closest rival to Nvidia in

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Speaker 1: the contest to build advanced artificial intelligence accelerators, making its

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Speaker 1: technology know how in proprietary information a valuable target. And

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Speaker 1: now let's look at some of the other stories making

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Speaker 1: news in New York and around the world. For that,

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Speaker 1: we're joined by Bloomberg's Michael Barr.

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Speaker 7: Michael, good morning, Good morning, Kareny. It will be another

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Speaker 7: hot day in the Northeast in New York City, and

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Speaker 7: air quality alert is in effact today from eleven am

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Speaker 7: until eleven pm. On this first day of summer, the

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Speaker 7: highs will reach around ninety five hotter than yesterday. This

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Speaker 7: New York parent was trying to find ways to beat

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Speaker 7: the heat.

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Speaker 8: We spent a lot of time in the sprinklers. We're

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Speaker 8: taking breaks in the middle of the day.

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Speaker 1: A good nap always helps, and of course, plenty of

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Speaker 1: ice cream.

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Speaker 7: Tomorrow will be the same with the chance of a

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Speaker 7: late thunderstorm. Boston is forecast to hit ninety eight degrees today.

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Speaker 7: In California, at least twelve wildfires are burning. The number

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Speaker 7: of fires in that state is up nine percent compared

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Speaker 7: to this time last year. In New Mexico, there was

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Speaker 7: zero containment overnight in deadly wildfires, forcing evacuations in multiple counties.

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Speaker 7: Governor Michelle Lewan Grishop declared a state of emergency. I

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Speaker 7: know every New Mexican has every other New Mexican in

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Speaker 7: their thoughts and prayers. Two fire deaths were reported in

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Speaker 7: New Mexico. Tropical Storm Alberto is rumbling toward northeast Mexico

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Speaker 7: as the first named storm of the season, carrying heavy

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Speaker 7: rains that left three people dead. The region has been

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Speaker 7: suffering under a prolonged severe drought. Korea State media says

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Speaker 7: the new agreement between Russia and North Korea reached by

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Speaker 7: their leaders requires the countries to use all available means

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Speaker 7: to provide immediate military assistance in the events of war.

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Speaker 7: The official Korean Central News agency reported the language of

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Speaker 7: the partnership agreement reached by its leader Kim Jan Un

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Speaker 7: and Russian President Vladimir Putin in Pyeongyang. Putin is now

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Speaker 7: in Vietnam to strengthen ties with its longtime partner in

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Speaker 7: Southeast Asia at a time when Moscow is facing growing

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Speaker 7: international isolation because of its military actions in Ukraine. New

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Speaker 7: Jersey Governor Phil Murphy rolled out a new clemency program

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Speaker 7: some of those who may benefit include women who were

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Speaker 7: victims of domestic violence but were given long prison sentences

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Speaker 7: for retaliating. The Governor says he hopes the plan will

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Speaker 7: address unfairness and inequities in New Jersey's justice system. Also

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Speaker 7: attending the event former New Jersey Governor Jim McGreevy, who

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Speaker 7: has long been an advocate for clearing women who've been

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Speaker 7: treated unfairly.

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Speaker 9: So what the Governor is saying today is there's a

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Speaker 9: place for mercy. There's a place for clemency.

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Speaker 7: Former Governor McGreevy and Governor Murphy made the announcement at

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Speaker 7: Newark's Saint James Ame Church. Global News twenty four hours

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Speaker 7: a day and whenever you want it with the Bloomberg News. Now,

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Speaker 7: I'm Michael Barr, and this is.

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Speaker 1: Bloomberg Here, Lary, Michael Barr, thank you time now for

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Speaker 1: the Bloomberg Sports Update with John Stashaur.

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Speaker 2: John, Good morning, Good morning, Careing.

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Speaker 10: The Yankees are the best record in baseball and until

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Speaker 10: last night, their Cy Young Award winning a said yet

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Speaker 10: to pitget the stadium. Garrett Cole was back from the

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Speaker 10: elbow injury, gave up a run of the first and

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Speaker 10: he none of the next three. When he surrendered a

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Speaker 10: hit to lead off the fifth, Cole was taken out.

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Speaker 10: Did not seem happy about that, and even less happy

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Speaker 10: when of the next Orioles batter hit a two run homer.

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Speaker 10: Baltimore led five to one. The Yankees rallied the tie

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Speaker 10: thanks to a homer and four RBIs by a Jihan

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Speaker 10: Carlos Stanton with the the Orioles scored twice in the

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Speaker 10: tenth off Clay Holmes and won seven to six. Here

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Speaker 10: was Aaron boone on Cole.

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Speaker 8: I thought he was under control, and I thought as

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Speaker 8: the outing went on, I thought he got a little

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Speaker 8: bit better and had a little bit of everything, you know,

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Speaker 8: got a strike out with the breaking ball, flashing good

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Speaker 8: slider for a strikeout. I thought the cutter was a

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Speaker 8: good pitch for him all night. Reached back for some

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Speaker 8: heaters that he executed as well, So all in all,

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Speaker 8: I thought he threw the ball well.

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Speaker 10: If the Yanks lose this afternoon there al east Lee

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Speaker 10: on Baltimore will be down to half a game. We'll

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Speaker 10: see if Aaron judges back in the lineup.

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Speaker 4: He sat out last night.

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Speaker 10: After getting hit in the hand with the pitch on Tuesday,

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Speaker 10: Mets in Texas took a three to one lead on

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Speaker 10: the pet Alonzo two on omer sixth inning, but Leoni

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Speaker 10: Taveres with a pinch hit two on shot of the

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Speaker 10: seventh off Drew Smith. The Rangers won five to three.

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Speaker 10: The Mets seven game winning streak comes to an end.

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Speaker 10: Red Sox won seven to three in Toronto. Nationals beat

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Speaker 10: Arizona three to one. Giants lost to the Cup six

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Speaker 10: to five, and then made the trip to Birmingham where

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Speaker 10: they will play the Cardinals tonight at Venerable rick Wood Field,

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Speaker 10: built in nineteen ten, the oldest baseball stadium in the country.

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Speaker 10: It was where in nineteen forty eight, the late William Mays,

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Speaker 10: at age seventeen, played his first professional game with the

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Speaker 10: Birmingham Barons of the Negro Leagues. Mays grew up only

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Speaker 10: nine miles away. Before first pitch tonight, they'll be tributes

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Speaker 10: to Mays, who course passed away on Tuesday. Surprise at

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Speaker 10: NBA coaching firing out that Detroit played well and Armani Williams.

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Speaker 10: They went fourteen and sixty eight. We once lost twenty

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Speaker 10: eight in a row, but Williams still owed sixty five

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Speaker 10: million dollars, John Stashaway, Bloomberg Sports Care.

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Speaker 6: Nathan.

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Speaker 9: Coast to Coast on Bloomberg Radio nationwide on Sirius XM,

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Speaker 9: and around the world on Bloomberg dot Com and the

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Speaker 9: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 2: Good morning, I'm Nathan Hager. With just months to go

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Speaker 2: until the US election, China sees little to no upside

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Speaker 2: from the upcoming rematch between President Biden and former President Trump.

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Speaker 2: That is the latest assessment from US intelligence on beijings

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Speaker 2: view that whoever wins, relations between the world's two biggest

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Speaker 2: economies will continue on a long term downward path. For

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Speaker 2: more on this, we're joined by Daniel ten Kate, Bloomberg

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Speaker 2: News Executive editor for Asia's Economy and Government, joining us

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Speaker 2: from our Hong Kong bureau. Dan, good morning. So does

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Speaker 2: this assessment when it comes to China boil down to

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Speaker 2: what difference does it make?

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Speaker 4: Good morning?

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Speaker 11: Good morning. Yes, that's a good way to put it.

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Speaker 11: There's really no favorite from China. They see downsides to

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Speaker 11: both Biden and Trump, and you know, it's very unclear

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Speaker 11: that either one of them would be better for China

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Speaker 11: at this point. They do have different characteristics so Biden

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Speaker 11: has been much better at working with allies in the

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Speaker 11: region to tell you export controls in particular and high

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Speaker 11: tech items like semiconductors. He's also more predictable on the

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Speaker 11: world stage. There have been a steady stream of meetings

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Speaker 11: between Biden administration officials and counterparts from Beijing. We just

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Speaker 11: saw the first defense talks in a long time take

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Speaker 11: place earlier this month. With Donald Trump, he is disruptive

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Speaker 11: to the allies, but he's also much more unpredictable, and

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Speaker 11: of course started the trade war and rallied Congress against China,

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Speaker 11: so that you essentially have a bipartisan consensus to go

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Speaker 11: hard after China. Now in Washington, when.

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Speaker 2: It comes to that difference that Chinese officials might see

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Speaker 2: between the predictability of a president Biden and an unpredictability

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Speaker 2: of a return Trump administration, is there a window that

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Speaker 2: China sees to potentially take advantage.

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Speaker 11: You know, it's in theory, yes, they would see, Okay,

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Speaker 11: if in Trump's unpredictability, you know, some of the positive

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Speaker 11: points are you know from there prduct if they think

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Speaker 11: he erodes US prestige around the world just by by

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Speaker 11: being so unpredictable. By saying provocative things, doing provocative things

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Speaker 11: by taking on the allies force asking them to pay more,

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Speaker 11: not having an issue blowing up those relationships. Trump also

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Speaker 11: likes to make deals, so you know, he's not ideological

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Speaker 11: really about anything. And then so therefore the Chinese could

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Speaker 11: potentially see an opportunity to gain there. On the other hand,

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Speaker 11: you know, they like certainty, and Donald Trump is very

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Speaker 11: unpredictable and he keeps them on edge, so you know,

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Speaker 11: in a volatile world is riskier from a Chinese Communist

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Speaker 11: Party perspective, where they like to have things under control

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Speaker 11: so they can you know, stay in power and run

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Speaker 11: things the way they see fit in China.

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Speaker 2: From what we're hearing from US intelligence and our sources

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Speaker 2: in China, Dan, what does this assessment, if anything, have

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Speaker 2: to say about how China could pivot depending on who

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Speaker 2: does come out victorious in November.

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Speaker 11: I think China sees it as essentially, no matter what happens,

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Speaker 11: they need to pursue the routes that they're going, which is,

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Speaker 11: you know, we can't depend we can't be dependent on

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Speaker 11: the US for big you know, technology in particular, you know,

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Speaker 11: we need to have technological breakthroughs no matter who takes power,

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Speaker 11: Biden or Trump, we need to be able to stand

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Speaker 11: on our own two feet. We need a financial system

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Speaker 11: that can withstand heavy sanctions in case we come under that.

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Speaker 11: You know, we we can't be subject or you know,

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Speaker 11: can't be just blown around by US export controls of

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Speaker 11: US sanctions, et cetera. We have to be able to

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Speaker 11: have good trade relationships with the rest of the world

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Speaker 11: and and you know, strong systems of our own. So

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Speaker 11: I think that's the approach no matter whether it's Biden

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Speaker 11: or Trump. They'll try and be opportunistic where they can,

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Speaker 11: but they're basically planning for the worst case scenario.

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Speaker 2: This is Bloomberg Daybreak Today, your morning brief on the

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Speaker 4: I'm Nathan Hager.

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Speaker 2: And I'm Karen Moscow.

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Speaker 1: Join us again tomorrow morning for all the news you

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Speaker 1: need to start your day right here on Bloomberg Daybreak