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Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg

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Speaker 1: Daybreak for Monday, July eleven two. Coming up this hour,

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Speaker 1: Twitter shares plunge after Elon must ends his takeover bid.

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Speaker 1: Now the future of Twitter appears to be headed for

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Speaker 1: a courtroom. Bank earnings and a key inflation report grabbed

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Speaker 1: the spotlight on Wall Street this week, and the race

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Speaker 1: to succeed Boris Johnson as UK Prime Minister heats up.

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Speaker 1: Steve Bennon's attorneys saying he is now willing to testify

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Speaker 1: before the January sixth House Committee plus Senate ma Geority

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Speaker 1: Leader Schumer asked covid, I'm Michael blomen more ahead, I'm

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Speaker 1: on Stagon Sports the Yankees for the second night in

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Speaker 1: the road. Blue Lee lost to the Red Sox in Boston.

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Speaker 1: The Mets were shut out. They visit the Braves tonight.

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Speaker 1: That's all straight ahead on Bloomberg day Break on Bloomberg

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Speaker 1: eleven Free on New York Bloomberg ninety nine one, Washington,

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Speaker 1: d C Bloomberg one oh six one, Boston, Bloomberg nine sixty,

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Speaker 1: San Francisco, Sirius x M one nineteen and around the

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Speaker 1: world on Bloomberg Radio dot com and via the Bloomberg Business.

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Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow. When

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Speaker 1: US dot in next, Futures are moving lower this morning.

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Speaker 1: We're coming up to FACO one on Wall Street, and

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Speaker 1: we check the markets every fifteen minutes throughout the trading

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Speaker 1: day on Bloomberg. Right now, US and futures are down

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Speaker 1: twenty six points down, futures down two and NASTAG futures down.

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Speaker 1: In the ten year treasury at five thirty seconds, you

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Speaker 1: have three point oh five percent, and they yield on

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Speaker 1: the two year three point oh seven per cent. Nathan, Karen,

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Speaker 1: We're keeping an eye on Twitter shares this morning. They

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Speaker 1: are down six and three quarters percent in early trading

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Speaker 1: as the showdown between Elon Musk and the social media

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Speaker 1: company appears headed for court. Let's get the latest live

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Speaker 1: from Bloomberg's Rnita Young. Good morning, Granita, Good morning Nathan.

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Speaker 1: Even though Elon Musk is backing out of the forty

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Speaker 1: four billion dollar deal to buy Twitter, after all, he

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Speaker 1: can't just walk away without a court case, and Twitter

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Speaker 1: has lawyered up in a race to sue Musk to

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Speaker 1: follow through on his end of the agreement, Bloomberg sources

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Speaker 1: say of filing could come as soon as early this week. Now.

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Speaker 1: If the judge rules against Musk, he could be forced

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Speaker 1: to pay Twitter shareholders fifty four dollars and twenty cents

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Speaker 1: a share. But a ruling in his favor would let

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Speaker 1: Musk walk, although he probably have to pay a one

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Speaker 1: billion dollar breakup fee. And there's still also the prospect

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Speaker 1: that both sides could reach a settlement where Musk still

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Speaker 1: makes the acquisition, but potentially at a lower price. Live

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Speaker 1: in New York, I'm rened a young Bloomberg Daybreak, all right,

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Speaker 1: rened to thank you about the Twitter news is also

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Speaker 1: impacting another stock this morning. Shares of Digital World acquisition

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Speaker 1: are up more than twenty four percent on heavy volume

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Speaker 1: and early trading. Digital World the company emerging with former

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Speaker 1: President Trump's Trump Media and Technology Group, which owns his

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Speaker 1: Truth social platform. Well, stocks overall are lower this morning, Karen,

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Speaker 1: as we begin a new trading week in Asia, Overnight,

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Speaker 1: a resurgence of COVID flare ups led to a drop

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Speaker 1: of almost three percent for Hong Kong's Hang Sent Index.

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Speaker 1: Let's get the recap from Bloomberg day Break Asia anchor

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Speaker 1: Bran Curtis, most Asian benchmark slid COVID cases in Shanghai

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Speaker 1: arising as the city faces more mass testing. In Macau,

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Speaker 1: authority shut down casinos and other businesses for a week.

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Speaker 1: As a result, casino shares took a big hit. Tokyo,

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Speaker 1: though was a bright spot after the ruling coalition won

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Speaker 1: a stronger majority in the upper house election. The end

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Speaker 1: was the weakest. Major currency traders see the election result

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Speaker 1: as an endorsement of Japan's ultra easy monetary policy. In

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Speaker 1: Hong Kong, Brian Curtis, Bloomberg day Break, Brian, thank you

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Speaker 1: back here in the US. We have conflicting calls this morning,

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Speaker 1: and whether the reason stock rally will continue. Morgan Stanley

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Speaker 1: Chief US equity strategist Mike Wilson says it won't. He

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Speaker 1: thinks the surge in the dollar will be a headwind

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Speaker 1: for corporate profits. On the flip side, City Group strategists

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Speaker 1: say stocks are likely to rally in the second half

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Speaker 1: as corporate earnings remain resilient to searching inflation and slowing

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Speaker 1: economic growth. The S and P five hundred is up

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Speaker 1: about six per set since it's mid June. Low well

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Speaker 1: speaking of earning screen reporting season gets underway this week

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Speaker 1: as we hear from the country's biggest banks. More on

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Speaker 1: that from Bloomberg's Charlie Pellett. The question on everyone's mind

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Speaker 1: is is a recession coming? On? What clues will the

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Speaker 1: latest batch of earnings reports provide. Scott croner To is

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Speaker 1: a strategist at City Group Global Markets. What we're expecting

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Speaker 1: to see is a follow through of the earning the

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Speaker 1: nurse we got in Q one, so we're looking for

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Speaker 1: mid single digit EARNIE shows for the SMP in total.

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Speaker 1: We think we'll make the Q two expectations. Certainly C

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Speaker 1: suites will express caution regarding the second half outlook. Wall

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Speaker 1: Street Banks leadoff second quarter earnings JP. Morgan Chase and

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Speaker 1: Morgan Stanley report Thursday, City Group and Wells Fargo on

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Speaker 1: Friday in New York. Charlie Pellett Bloomberg Day Break, All right, Charlie,

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Speaker 1: thank you all. On the economic front this week, it's

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Speaker 1: all about inflation, with readings coming on consumer and producer prices.

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Speaker 1: We get a preview from Bloomberg's Vinnie down ju Dice.

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Speaker 1: June's household inflation probably ran close to nine percent based

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Speaker 1: on Wall Street forecast. That's taking a toll. Bloomberg econonamics

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Speaker 1: is average hourly earnings have been shrinking for more than

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Speaker 1: a year when taking inflation into account. Look for that

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Speaker 1: trying to drag on with the household inflation rate projected

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Speaker 1: to run at or above seven percent through year end.

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Speaker 1: We'll get the consumer price index Wednesday, as well as

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Speaker 1: data on producer prices Thursday and import prices Friday. Benny

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Speaker 1: Delta s Bloombergday Break. All right, Benny, thanks, And when

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Speaker 1: it comes to tackling inflation, the Biden administrations thinking about

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Speaker 1: lowering tariffs on Chinese imports is one way to provide relief.

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Speaker 1: President Biden says he is still holding discussions on the idea.

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Speaker 1: Commerce Secretary Gina Raimondo expects a decision from the President shortly.

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Speaker 1: If he decides to lift certain tariffs, it will be

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Speaker 1: because he knows he has to think about doing everything

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Speaker 1: he possibly can to provide any relief to consumers. Secretary

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Speaker 1: Ramando made that comment on NBC's Meet the Press heard

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Speaker 1: Sundays on Bloomberg Radio, and stay tuned for more from

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Speaker 1: the Commerce secretary later today. Gina Ramondo said it's down

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Speaker 1: with Bloomberg Radio and Television for an interview in the

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Speaker 1: eleven AM Eastern hour. Well in Europe this week, Nathan,

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Speaker 1: the race is heating up to succeed Boris Johnson as

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Speaker 1: British Prime Minister. Let's go live to London and get

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Speaker 1: the latest at the Bloomberg's un parts. Good morning you,

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Speaker 1: Good morning Karden, Nathan. Just days after Boss Johnson was

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Speaker 1: pushed into resigning, there are now eleven candidates to succeed

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Speaker 1: him as Conservative Party leader. Liz Trust, the Foreign Secretary,

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Speaker 1: is the latest ends of the race. She's making tax

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Speaker 1: cuts the hearts of her campaign. Lomakers were expected to

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Speaker 1: begin voting later this week. As the field is narrow

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Speaker 1: to the final two candidates, one of them will become

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Speaker 1: the UK's next Prime minister. In London, I'm you in

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Speaker 1: parts between BOK Daybreak, Okay you and thanks. Let's stay

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Speaker 1: in Europe where natural gas prices are falling today. That's

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Speaker 1: after Canada said it would return a stranded turbine for

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Speaker 1: the nord Stream pipeline between Russia and Germany that could

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Speaker 1: potentially increase flows, which have been limited since last month.

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Speaker 1: The nord Stream pipeline between Russia and Germany is currently

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Speaker 1: undergoing routine maintenance at the same time the war in

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Speaker 1: ukry in his sparking concerns that maybe Moscow will not

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Speaker 1: open the pipeline back up after the work. SMP future

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Speaker 1: is now down twenty one points. Now futures down a

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Speaker 1: hundred fifty three NASTAC futures are lowered by eighty four points.

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Speaker 1: The tenure treasury is up five thirty seconds for a

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Speaker 1: yield close to three point zero six percent. Your latest

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Speaker 1: local headlines into check of sports. Next, this is Bloomberg

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Speaker 1: and it's now five oh seven on Wall Street where

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Speaker 1: sixties seven degrees in Central Park already a problem if

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Speaker 1: you're heading to the Kennedy Airport. There's an accident on

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Speaker 1: the westbound Belt Parkway across Babel of Our details coming

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Speaker 1: up in Traffic. First, Michael Barr with more on what's

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Speaker 1: going on in New York and around the world. Good morning,

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Speaker 1: MI Call, Good morning Nathan. Donald. Trump's one time adviser,

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Speaker 1: Steve Bannon, has agreed to testify to the House committee

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Speaker 1: investigating last year's storming of the US Capitol. It comes

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Speaker 1: after former President Trump says he waived executive privilege even

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Speaker 1: though Bannon was a private citizen at the time of

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Speaker 1: the Capitol riot. Trump portrays the inquiry is biased and

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Speaker 1: one side it. Loyola Law University professor Lorie Levinson says,

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Speaker 1: though the value of Bannon's testimony remains to be determined,

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Speaker 1: the real problem is that I'm not sure that they

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Speaker 1: can trust Bannon at all. It is clear that he

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Speaker 1: and Trump still considered themselves best friends, and that if

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Speaker 1: Bannon comes in front of the committee, it is very

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Speaker 1: unclear what he would say that would help their investigation.

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Speaker 1: But isn't just designed to help Trump. Loyola Law professor

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Speaker 1: Lourie Levinson says Bennon was facing two criminal accounts of

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Speaker 1: contempt of Congress for refusing to comply with the committee's subpoena.

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Speaker 1: The car pooling discount is over at the George Washington

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Speaker 1: Bridge the g w B when cash less tolls over

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Speaker 1: the weekend. Normally, it was a sixteen dollar fee one

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Speaker 1: way to get across the bridge from New Jersey to

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Speaker 1: New York, but drivers who had a car pool discount

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Speaker 1: plan on their easy passes paid only seven fifty with

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Speaker 1: three or more people in the vehicle. Officials hope going

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Speaker 1: cash less at the g w B will mean a

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Speaker 1: faster commute into the city. New York City is debuting

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Speaker 1: a fleet of cars mounted with air quality sensors in

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Speaker 1: the Bronx and Manhattan this week. The plan is to

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Speaker 1: address air pollution. Japanese Prime Minister Fumio Kashda has met

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Speaker 1: with U S Secretary of State Anthony B. Lincoln. He

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Speaker 1: delivered condolences from President Biden and the United States over

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Speaker 1: the assassination of former leadershian Zoabe and reassurances of a

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Speaker 1: strong bid lateral alliance. I thought it was just important

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Speaker 1: to show our solidarity with our friend Japan and the

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Speaker 1: Japanese people in this difficult time. Secretary Lincoln says the

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Speaker 1: US and Japan are more than allies, We're friends. Senate

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Speaker 1: Majority Leader Chuck Schumer's office says he tested positive for

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Speaker 1: COVID nineteen. Schumer spokesman says the Senator is experiencing mild symptoms.

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Speaker 1: The statement said Schumer is fully vaccinated and double boosted.

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Speaker 1: Schumer says he will quarantine this week and work remotely

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Speaker 1: as he recovers global news twenty four hours a day

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Speaker 1: on air and on Bloomberg quick Take, powered by more

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Speaker 1: that seven hundred journalists, analysts more than a hundred twenty countries.

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Speaker 1: Michael Bard, this is Bloomberg, Nathan, Thank you. Michael came

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Speaker 1: into five ten on Wall Street time for the Bloomberg

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Speaker 1: Sports Update. Good morning, John Senshi, All right, Good morning Nathan.

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Speaker 1: Twenty four hours after the rare occurrence of a Yankees

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Speaker 1: blown lead, it happened again. Yanks lead the Residence four nothing,

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Speaker 1: later six two socks for the last nine runs and

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Speaker 1: one eleven six to gain a split of the four

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Speaker 1: game series in Boston. A J. D. Martinez home run

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Speaker 1: fifth inning off Jamison ti On tied the game at six.

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Speaker 1: A Trevor Story three run double off Miguel Castro in

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Speaker 1: the seventh put it away. Yanks got home runs and

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Speaker 1: defeat from Giant Carlo Stans didn't get another from Matt Carpenter,

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Speaker 1: but hurt by a couple of hours plus two catchable

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Speaker 1: pop ups. The dj Lemi who failed to grab Yanks

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Speaker 1: are off tonight. Mets tonight begin their biggest series of

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Speaker 1: the season in Atlanta. Max Scherzer opposes the Braves, Max Freed.

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Speaker 1: Mets couldn't score over ten innings, blost to the Marlins

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Speaker 1: to nothing. Atlanta one of the ninth inning. The Mets League,

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Speaker 1: once ten and a half games, now one and a half.

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Speaker 1: Four Mets named to play the next BIGS All Star

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Speaker 1: Game in l a Edwin Diaz, Peterlonzo, Jeff McNeil, and

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Speaker 1: Sterling Marque. Four Yankees were named Garrett Cole, Estor Cortez,

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Speaker 1: Clay Holmes, and Jose Chavino. Aaron, Judge and Stanton had

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Speaker 1: already been being as starters. The year began for Novak

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Speaker 1: Djokovitz when he went to Australia and wasn't allowed to

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Speaker 1: play and due to being unvaccinated, he lost at the

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Speaker 1: French but he just won Wimbledon for the fourth grade time.

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Speaker 1: I don't take anything for granted. I'm very blessed to

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Speaker 1: Central Park Markets. Headlines and breaking news twenty four hours

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Speaker 1: a day at Bloomberg dot Com, The Bloomberg Business Outland

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Speaker 1: at Bloomberg Quick Take. This is a Bloomberg business lash

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Speaker 1: and I'm Cameron. Moscow and European stocks are dropping along

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Speaker 1: That's a bloomberg business flash. Now here's Michael Barr with

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Speaker 1: Good morning, Karen. Dozens of Ukrainian emergency workers are trying

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Speaker 1: strategis Steve Bennon says he is now willing to testify

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Speaker 1: of executive privilege, even though Bennon was a private citizen

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Speaker 1: at the time of the riot. In baseball, the Yankees

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Speaker 1: along with the Nationals and A's. The Orioles won their

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Speaker 1: a day on air and on Bloomberg Quick Takes, powered

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Speaker 1: by more than twenty seven hundred journalists and analyists more

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Speaker 1: than a hundred twenty countries. Michael bar This is Bloomberg.

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Speaker 1: Thanks Michael. It's five nineteen on Wall Street Live from

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Speaker 1: the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. We

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Speaker 1: want to get back to our top story this morning.

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Speaker 1: The saga over Elon must bid to buy Twitter is

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Speaker 1: now headed to chord with the world's richest man now

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Speaker 1: trying to walk away from the forty four billion dollar deal.

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Speaker 1: From what We're joined by Alex Webb, Bloomberg Quick Take

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Speaker 1: anchor and tech columnists for Bloomberg Opinion. Alex, good morning.

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Speaker 1: This has been quite the saga to watch. Let's talk

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Speaker 1: about how both sides got to this point and the

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Speaker 1: dispute over bots on Twitter. It's certainly it's are is

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Speaker 1: certainly the right word. There's been increasing volume from Ellen

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Speaker 1: over the past few months since the two long since

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Speaker 1: the deal was agreed, that he thinks that there are

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Speaker 1: Twitter has more bots than its reporting. Twitter says that

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Speaker 1: less than five percent of its users are bots, and

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Speaker 1: Elon seems to think it's a lot more. That he

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Speaker 1: hasn't quite provided the evidence as to why. Now. I

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Speaker 1: think there may be a discrepancy here between the amount

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Speaker 1: of engagement the Elon sees on his own accounts and

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Speaker 1: he sees a lot of bot engagement and how many bots?

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Speaker 1: How how many Twitter users Twitter reports as active users? Right?

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Speaker 1: So when Twitter says it has eighty million daily active users,

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Speaker 1: it probably doesn't include bots in those numbers, right, And

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Speaker 1: so that's the maybe there are accounts using Twitter every day.

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Speaker 1: I'm making that number up. We don't know women that

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Speaker 1: might be, and maybe half of those are boats for

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Speaker 1: argument's sake, so that might be where we're seeing the disparity. Now,

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Speaker 1: that's interesting that you point out that perhaps Elon Musk

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Speaker 1: the fire hose of data that Twitter says it has

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Speaker 1: handed over to Elon Musk, something that that the that

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Speaker 1: Musk had been asking for. I mean, what is his

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Speaker 1: focus here? Well, that kind of gets to another the issue,

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Speaker 1: namely that is this really about the bots or is

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Speaker 1: it about the fact that tech stocks and social media

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Speaker 1: stocks in particular are down a lot since that deal

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Speaker 1: was announced, and so there's a lot of expectations. You know,

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Speaker 1: some analysts saying that if the deal completely falls apart,

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Speaker 1: they see a bottom for the stock at twenty three dollars.

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Speaker 1: That's considerably less than half of the four dollars twenty

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Speaker 1: which he agreed to take it private. So, you know,

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Speaker 1: is this really to do with bots or is it

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Speaker 1: just Elo going, God, I'm over paying for this deal

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Speaker 1: and therefore I need to find a way of backing

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Speaker 1: out of it. There's a heavy suspicion that it's the latter,

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Speaker 1: and right now in the pre market, Twitter is trading

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Speaker 1: at about thirty four fifty, which obviously the fifty four

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Speaker 1: twenty offer is a huge premium still even if Twitter

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Speaker 1: hasn't reached bottom. Here with the possibility and the likelihood

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Speaker 1: now that this dispute is headed to court in Delaware,

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Speaker 1: what's the burden of proof? Elon seems to think that

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Speaker 1: Twitter is going to have to provide the the the

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Speaker 1: number of bots he's been tweeting memes saying to the case.

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Speaker 1: Ultimately he needs to prove that they're wrong, not the

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Speaker 1: other way around. And generally these the Delaware Delaware courts

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Speaker 1: tend to um sit on the side that if a

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Speaker 1: deal has been agreed, a deal has to be completed.

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Speaker 1: The case that a lot of people have been pointing

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Speaker 1: towards and um is kind of important in the case

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Speaker 1: law is about twenty five years ago, around the turn

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Speaker 1: of the millennium, UH, there was a deal in the

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Speaker 1: meat industry whereby Tyson Foods agreed to acquiet then rival

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Speaker 1: I P b Um for about three and a half

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Speaker 1: or three point two billion dollars. And in the meantime

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Speaker 1: between the deal being agreed and incompleted, there was a downturn,

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Speaker 1: and so the value of the company declined as well,

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Speaker 1: so Tyson tried to back out of the deal. They

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Speaker 1: were forced to complete it. Now three point two billions

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Speaker 1: clearly far different scale from forty four billion. We weren't

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Speaker 1: even really sure that Elon definitely had the financing lined up,

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Speaker 1: So that is another layer of complication. Um in some

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Speaker 1: cases it arrives at a settlement, but the burden of

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Speaker 1: proof seems to be on Elon about at the last

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Speaker 1: minute here, Alex, what is the likelihood that all this

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Speaker 1: is just a negotiating tactic on Elon must part in

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Speaker 1: this does end up in a settlement. I mean, I

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Speaker 1: don't know. We don't know what's in the Elon's mind.

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Speaker 1: Guessing what Elon's thinking is a very difficult thing to do.

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Speaker 1: If it's not a negotiating tactic. I think it is

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Speaker 1: certainly an element to back out. There's a high challenge.

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Speaker 1: It's an element. It's an effort to back out because

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Speaker 1: the prices change, right, it's and he looks like he's

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Speaker 1: overpaying at this stage. So whatether that means he would

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Speaker 1: come back to the table if he was able to

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Speaker 1: back out and and an agree at lower price. I'm

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Speaker 1: not sure that's the case given the kind of the

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Speaker 1: face that he's lost in recent months. And again, Twitter

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Speaker 1: shares dropping by about six and a quarter percent for

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Speaker 1: a value about thirty four fifty a share in the

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Speaker 1: pre market as we watch this battle potentially head now

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Speaker 1: to court in Delaware. Alex Webb, Bloomberg Opinion, tech columnists

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Speaker 1: and anchor on Bloomberg Quicktake. As always, thanks for the

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Speaker 1: insights as we continue to watch the saga unfold. Right now,

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Speaker 1: SMP futures are down twenty point, staff futures down a

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Speaker 1: hundred thirty six. NASDAC futures are lower by eighty four points.

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Speaker 1: Tenure treasury up six thirty seconds, the yield three point

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Speaker 1: zero five percent, and the yield on the two year

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Speaker 1: almost three point zero seven percent. Still invert Jian between

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Speaker 1: twos and tense. You're listening to the Bloomberg Day Break

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Speaker 1: Bloomberg eleven three oh weather. Sunshine with a high near

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Speaker 1: eighty five today. It's gonna be mostly sunny tomorrow, but

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Speaker 1: could see an afternoon shower thundershower tomorrow on Wednesday. Both

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Speaker 1: days near ninety degrees. Right now sixty seven in Central

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Speaker 1: Park broadcasting live from the Bloomberg Interactive Broker Studio in

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Speaker 1: New York. Bloomberg E living free to Washington, d C,

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Speaker 1: to A one nineteen and around the globe to Bloomberg

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Speaker 1: Business app in Bloomberg Radio dot com. This is Bloomberg Daybreak.

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Speaker 1: It's five thirty on Wall Street. Good morning. I'm Nathan

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Speaker 1: Hager and I'm caring Moscow or just about four hours

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Speaker 1: away from the open of US training. Let's get you

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Speaker 1: have to day on the news you need to know

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Speaker 1: at this hour, and we begin at the latest. On Twitter,

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Speaker 1: Twitter shares are down more than six and a half

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Speaker 1: percent in early training. Is the show down between Elon

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Speaker 1: Musk and a social media company appears to be headed

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Speaker 1: to court Bloomberg's or need a young joins us live

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Speaker 1: at the latest, or need a good morning, Good morning Karen.

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Speaker 1: Even though Elon Musk is backing out of the forty

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Speaker 1: four billion dollar deal to buy Twitter, after all, he

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Speaker 1: can't just walk away without a court case, and Twitter

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Speaker 1: has lawyered up in a race to sue Musk to

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Speaker 1: follow through Bloomberg. Sources say a filing could come as

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Speaker 1: soon as early this week. Now, if the judge rules

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Speaker 1: against Musk, he could be forced to pay Twitter shareholders

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Speaker 1: fifty four dollars and twenty cents a share. But a

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Speaker 1: ruling in his favor would let Musk walk, although he

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Speaker 1: probably have to pay a one billion dollar breakup fee,

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Speaker 1: and there's also the prospect that both sides could reach

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Speaker 1: a settlement. Live in New York, I'm gonna need a

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Speaker 1: young Bloomberg daybreak. We need to thank you. Turning to

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Speaker 1: markets now, stocks are lower to begin a new training week,

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Speaker 1: and the recent rally in US equities could be short lived.

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Speaker 1: That's according to Morgan Stanley chief US equity strategist Mike Wilson.

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Speaker 1: He is one of Wall Street's biggest bears. Wilson adds

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Speaker 1: the surgeon the dollar will be a headwind for corporate profits.

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Speaker 1: Well Nathan. Speaking of corporate earnings, it's a big week

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Speaker 1: for big banks JP, Morgan, Morgan Stanley, City and Wells

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Speaker 1: Fargo all reports second quarter earnings late in the week.

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Speaker 1: Will also get important inflation data this week. The latest

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Speaker 1: Consumer Price Index data will come and Wednesday, and producer

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Speaker 1: prices out Thursday. And when it comes to tackling inflation, Karen,

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Speaker 1: the Biden administration is still thinking about lowering tariffs on

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Speaker 1: Chinese imports to provide relief. Commerce Secretary Gina Rimando expects

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Speaker 1: a decision from the President shortly. He's gonna do it

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Speaker 1: in a thoughtful way that is strategic and also most important,

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Speaker 1: most important to him and to all of us, is

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Speaker 1: without hurting American workers. Secretary Rimando made that comment on

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Speaker 1: NBC's Meet the Press, heard Sundays on Bloomberg Radio. Will

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Speaker 1: speak live with Commerce Secretary Rimando later this morning on

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Speaker 1: Bloomberg Radio and Television. Catch that conversation in the eleven

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Speaker 1: a m. Eastern hour. Nathan President Biden plans to speak

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Speaker 1: with Chinese leader Shesan Ping in the coming week. Secretary

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Speaker 1: of State Anthony blinkln laid the groundwork for the call

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Speaker 1: over the weekend in a conversation with the Chinese Foreign

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Speaker 1: Minister Mr. Chinese stocks caring they had their worst stand

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Speaker 1: about a month. A slew of issues, including COVID flare

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00:23:16,600 --> 00:23:19,000
Speaker 1: ups led to a drop of almost three percent for

430
00:23:19,080 --> 00:23:22,080
Speaker 1: Hong Kong's Hang Sang Index. S and P futures are

431
00:23:22,160 --> 00:23:24,359
Speaker 1: lower down twenty two points and DOWN futures down a

432
00:23:24,440 --> 00:23:29,080
Speaker 1: hundred fifty and NASDAG futures down two. Straight ahead your

433
00:23:29,160 --> 00:23:32,960
Speaker 1: latest local headlines, plus a check of sports. And this

434
00:23:33,480 --> 00:23:39,560
Speaker 1: is Bloomberg. Thank you Caring. It's five thirty three on

435
00:23:39,600 --> 00:23:41,880
Speaker 1: Wall Street where at sixty seven degrees in Central Park.

436
00:23:41,960 --> 00:23:44,520
Speaker 1: We're dealing with a new accident this morning northbound FDR

437
00:23:44,640 --> 00:23:47,360
Speaker 1: Drive at seventy nine. Details coming up in traffic. First,

438
00:23:47,440 --> 00:23:49,359
Speaker 1: Michael Barr with what else is going on in New

439
00:23:49,440 --> 00:23:51,959
Speaker 1: York and around the world. Michael, thank you, Nathan. Speaking

440
00:23:52,000 --> 00:23:54,400
Speaker 1: of traffic, how's your commute so far this morning? Heading

441
00:23:54,520 --> 00:23:57,680
Speaker 1: city bound over the George Washington Bridge. The g WB

442
00:23:57,840 --> 00:24:00,320
Speaker 1: went cashless tolls over the weekend. The good news is

443
00:24:00,400 --> 00:24:03,719
Speaker 1: that official sop that will mean a smoother commute from

444
00:24:03,800 --> 00:24:07,639
Speaker 1: New Jersey into New York. The bad news means that's

445
00:24:07,720 --> 00:24:11,000
Speaker 1: the end of the car pooling fee. Normally it costs

446
00:24:11,040 --> 00:24:13,920
Speaker 1: sixteen dollars one way to get across the bridge. However,

447
00:24:14,240 --> 00:24:17,520
Speaker 1: drivers who had a car pool discount plan on their

448
00:24:17,760 --> 00:24:20,840
Speaker 1: easy passes paid about half of that if they had

449
00:24:20,880 --> 00:24:23,840
Speaker 1: three or more people in their vehicle. Former advisor to

450
00:24:24,040 --> 00:24:27,440
Speaker 1: former President Trump Steve mannen as change course and is

451
00:24:27,560 --> 00:24:31,399
Speaker 1: now saying he will cooperate with the January sixth committee. However,

452
00:24:31,720 --> 00:24:35,520
Speaker 1: Loyola Law University professor Lori Levinson says the value of

453
00:24:35,600 --> 00:24:38,879
Speaker 1: Bannon's testimony remains to be determined in terms of what

454
00:24:39,119 --> 00:24:42,000
Speaker 1: he would say to the committee. I think the only

455
00:24:42,080 --> 00:24:44,680
Speaker 1: thing that is clear is that he continues to be

456
00:24:44,920 --> 00:24:48,159
Speaker 1: allied with Donald Trump, and so I'm not sure the

457
00:24:48,200 --> 00:24:51,080
Speaker 1: committee would particularly trust what he's going to have to say,

458
00:24:51,760 --> 00:24:54,840
Speaker 1: even if Bannon is willing now to appear before the committee.

459
00:24:55,200 --> 00:24:59,879
Speaker 1: Loyola Law professor Lorie Levinson. Meanwhile, Republican Committee member Adam

460
00:25:00,040 --> 00:25:03,440
Speaker 1: Kinzinger says this week's hearing will likely focus on the

461
00:25:03,480 --> 00:25:07,280
Speaker 1: president's action the day of January six But we want

462
00:25:07,280 --> 00:25:09,240
Speaker 1: to show the American people is what was the president

463
00:25:09,359 --> 00:25:12,160
Speaker 1: doing during that time? The rest of the country knew

464
00:25:12,200 --> 00:25:15,200
Speaker 1: that there was an insurrection. The president obviously had to

465
00:25:15,240 --> 00:25:17,040
Speaker 1: have known there was an insurrection, So where was he?

466
00:25:17,119 --> 00:25:20,600
Speaker 1: What was he doing? Representative Kinzinger spoke on ABC's This Week,

467
00:25:20,640 --> 00:25:23,479
Speaker 1: which can be here at Sundays on Bloomberg. Japanese Prime

468
00:25:23,520 --> 00:25:27,040
Speaker 1: Minister Fumio Kashita has met with the US has top

469
00:25:27,160 --> 00:25:30,800
Speaker 1: diplomat who delivered condolences over the assassination of former leaders

470
00:25:30,800 --> 00:25:35,000
Speaker 1: Shinzo Abe and reassurances of a strong bilateral alliance. The

471
00:25:35,119 --> 00:25:37,680
Speaker 1: U S Secretary of State Antony Blinkoln in Japan gave

472
00:25:37,720 --> 00:25:40,720
Speaker 1: Kashida a letter from President Joe Biden to Abe's family.

473
00:25:41,320 --> 00:25:46,720
Speaker 1: I shared with our Japanese colleagues the sense of lost,

474
00:25:46,800 --> 00:25:49,679
Speaker 1: the sense of shock that we all feel, the American

475
00:25:49,720 --> 00:25:55,399
Speaker 1: people feel at this horrific tragedy and killing. Secretary Blanket

476
00:25:55,480 --> 00:25:58,440
Speaker 1: sent him Majority leader Chuck Schumer tested positive for COVID

477
00:25:58,560 --> 00:26:01,520
Speaker 1: mild symptoms, according to a spokesman. Global News twenty four

478
00:26:01,560 --> 00:26:03,679
Speaker 1: hours a day on air and on Bloomberg Quick Take

479
00:26:03,720 --> 00:26:06,600
Speaker 1: power by more than journalists, analysts more than a hundred

480
00:26:06,600 --> 00:26:10,160
Speaker 1: twenty countries. Michael Barr and this is Bloomberg, natholn Okay, Michael,

481
00:26:10,200 --> 00:26:17,520
Speaker 1: thanks five on Wall Street time for the Bloomberg Sports

482
00:26:17,600 --> 00:26:20,440
Speaker 1: Update with John Stown Shower. Thanks Nathan. Yankees first visit

483
00:26:20,560 --> 00:26:23,040
Speaker 1: the season to Boston started well. They won the first

484
00:26:23,080 --> 00:26:25,119
Speaker 1: two games Saturday, they had leads in the eighth and

485
00:26:25,320 --> 00:26:28,080
Speaker 1: ten thinnings, and last night the twice had a four

486
00:26:28,240 --> 00:26:31,040
Speaker 1: rue leads. The Red Sox with two come from behind victories,

487
00:26:31,080 --> 00:26:33,119
Speaker 1: they get a split of the four game series. The

488
00:26:33,160 --> 00:26:35,600
Speaker 1: Sox went from down six to two to an eleven

489
00:26:35,720 --> 00:26:37,919
Speaker 1: six victory, and while the Yankees still have that sizeable

490
00:26:38,280 --> 00:26:41,119
Speaker 1: fourteen game leads, there is concerned over Jamison tai On.

491
00:26:41,240 --> 00:26:43,879
Speaker 1: He's allowed twenty runs of his last four starts. His

492
00:26:44,000 --> 00:26:46,880
Speaker 1: manager is Aaron Boom. The mistakes are are hurting him. Um,

493
00:26:47,480 --> 00:26:49,240
Speaker 1: you know, we gotta you know, that's what we gotta

494
00:26:49,280 --> 00:26:51,480
Speaker 1: work to correct, you know, making sure when we do

495
00:26:51,600 --> 00:26:54,760
Speaker 1: make a mistake that it's you know, not into an

496
00:26:54,840 --> 00:26:57,320
Speaker 1: area where it's getting slug that's really hurting him because

497
00:26:57,320 --> 00:26:59,320
Speaker 1: I thought tonight is stuff. I thought tonight through the

498
00:26:59,359 --> 00:27:01,520
Speaker 1: ball really well. Not the only problem last Nights and

499
00:27:01,560 --> 00:27:04,360
Speaker 1: sketchy defense. Ganks failed to score in the last five

500
00:27:04,440 --> 00:27:06,320
Speaker 1: plus Sennings. Mets didn't score at all in the game,

501
00:27:06,359 --> 00:27:09,040
Speaker 1: without a single extra base hit by either team. The

502
00:27:09,240 --> 00:27:11,800
Speaker 1: Marlins won too nothing and tena Names of pitchers duel

503
00:27:11,840 --> 00:27:14,840
Speaker 1: between Sandy all Contra and Taiwan Walker. I'll Contra just

504
00:27:14,960 --> 00:27:17,120
Speaker 1: named an All Star. Walker could have made a case

505
00:27:17,160 --> 00:27:19,280
Speaker 1: for making it. He did not. Four Mets were named

506
00:27:19,320 --> 00:27:22,960
Speaker 1: All Stars. Edwin Diaz, Peter Alonzo, Jeff McNeil, and Starley Marte.

507
00:27:23,080 --> 00:27:26,320
Speaker 1: Four Yankees named Garrett Cole, Nestor Cortez, Clay Holmes, and

508
00:27:26,400 --> 00:27:29,080
Speaker 1: Jose Trevino, Aaron Judge and John Carlos. Stanton has already

509
00:27:29,080 --> 00:27:31,520
Speaker 1: been named as starters of the National League team for

510
00:27:31,600 --> 00:27:33,840
Speaker 1: next week's game in l A. Will have brothers in

511
00:27:33,960 --> 00:27:36,520
Speaker 1: the starting lineup. Cubs catcher Wilson co Rris and his

512
00:27:36,600 --> 00:27:38,960
Speaker 1: brother William, who plays with the Dodgers, will be the

513
00:27:39,040 --> 00:27:41,879
Speaker 1: d h Novak. Jocobs, just after winning Wimbledon for the

514
00:27:41,960 --> 00:27:44,359
Speaker 1: seventh time, said he does not expect to be allowed

515
00:27:44,440 --> 00:27:46,320
Speaker 1: to come to New York for the US Open since

516
00:27:46,359 --> 00:27:49,280
Speaker 1: he is unvaccinated. Said it would take an easy of

517
00:27:49,359 --> 00:27:53,480
Speaker 1: restrictions or a medical exemption. John Stash Award Bloomberg Sports

518
00:27:53,560 --> 00:27:56,280
Speaker 1: Nathan Okay, John thanks five thirty seven on Wall Street.

519
00:27:56,359 --> 00:27:59,240
Speaker 1: Now time for the Tri State Business Report with Bloomberg's

520
00:27:59,240 --> 00:28:02,720
Speaker 1: head Cory twelve. New Jersey hospitals will get one hundred

521
00:28:02,760 --> 00:28:05,520
Speaker 1: twenty nine million dollars through the budget deal crafted in

522
00:28:05,640 --> 00:28:09,080
Speaker 1: late June by Governor Phil Murphy and top lawmakers, and

523
00:28:09,200 --> 00:28:12,160
Speaker 1: j Spotlight says it's not clear how projects were picked

524
00:28:12,200 --> 00:28:15,879
Speaker 1: for funding. Much of its reportedly destined for hospitals in

525
00:28:16,000 --> 00:28:20,119
Speaker 1: democratic legislative districts. Before the American Dream super Mall in

526
00:28:20,200 --> 00:28:23,280
Speaker 1: New Jersey can get help with payments, the state's Economic

527
00:28:23,359 --> 00:28:27,800
Speaker 1: Development Authority must approve documents certifying expenditures by the developer

528
00:28:27,880 --> 00:28:30,760
Speaker 1: Triple five Group, But three weeks before the debts to

529
00:28:30,800 --> 00:28:33,080
Speaker 1: be paid, e d A still has not approved a

530
00:28:33,160 --> 00:28:36,760
Speaker 1: cost statement. D t O Law has opened an office

531
00:28:36,800 --> 00:28:40,280
Speaker 1: in New York City on Broadway Center. The Business Journal says.

532
00:28:40,320 --> 00:28:43,320
Speaker 1: The law firm with offices in l A and San Francisco,

533
00:28:43,800 --> 00:28:46,080
Speaker 1: says the New York City office will be staffed by

534
00:28:46,160 --> 00:28:49,560
Speaker 1: Alison Kenner, formerly an assistant U S Attorney for the

535
00:28:49,640 --> 00:28:53,960
Speaker 1: Eastern District of Pennsylvania. That your Bloomberg Trying State Business Report.

536
00:28:54,120 --> 00:28:57,760
Speaker 1: I'm Ed Corey on Wall Street. Bloomberg Radio is on

537
00:28:57,840 --> 00:29:00,200
Speaker 1: the air from San Francisco to New York, London into

538
00:29:00,280 --> 00:29:02,560
Speaker 1: Hong Kong. Let's check in with our global news team

539
00:29:02,720 --> 00:29:04,440
Speaker 1: for some of the top stories heard on our three

540
00:29:04,560 --> 00:29:11,160
Speaker 1: hundred affiliate radio stations around the world. I'm Steve Podascan

541
00:29:11,280 --> 00:29:14,160
Speaker 1: on k X in Los Angeles. We're talking about a

542
00:29:14,280 --> 00:29:17,640
Speaker 1: decent opening for the New Thor movie improving Disney's uneven

543
00:29:17,760 --> 00:29:21,640
Speaker 1: movie release record for this year. I'm Connahow on ktr

544
00:29:21,800 --> 00:29:24,760
Speaker 1: H in Houston. Texans are asked to conserve energy on

545
00:29:24,920 --> 00:29:28,120
Speaker 1: sports and temperatures. I'm Gina Servetti in for w c

546
00:29:28,240 --> 00:29:30,520
Speaker 1: c O in Minneapolis. I'm talking about some of the

547
00:29:30,600 --> 00:29:34,800
Speaker 1: locally based companies reporting their earnings this week, including United Health.

548
00:29:34,960 --> 00:29:37,600
Speaker 1: I'm Stephen Carl and Bloomberg D a B Digital Radio

549
00:29:37,640 --> 00:29:40,360
Speaker 1: in London. We've been reporting on fears around Russian gas

550
00:29:40,440 --> 00:29:43,600
Speaker 1: supplies as the nord Stream pipeline shuts down for maintenance.

551
00:29:43,800 --> 00:29:46,640
Speaker 1: I'm d Cory on w w J in Detroit. I'm

552
00:29:46,720 --> 00:29:50,240
Speaker 1: reporting Forward Is had to recall one hundred thousand hybrid vehicles.

553
00:29:51,200 --> 00:29:53,160
Speaker 1: And those are some of the stories our twenty seven

554
00:29:53,240 --> 00:29:55,920
Speaker 1: hundred Bloomberg journalists and analysts are working on this morning

555
00:29:56,000 --> 00:29:58,360
Speaker 1: around the world. It's five thirty nine on Wall Street.

556
00:29:58,880 --> 00:30:03,040
Speaker 1: The following comming to areas from Bloomberg Opinion. Where have

557
00:30:03,160 --> 00:30:06,440
Speaker 1: people gone all electric? Not the places you'd expect. I'm

558
00:30:06,520 --> 00:30:09,840
Speaker 1: Justin Fox, a columnist for Bloomberg Opinion in hopes of

559
00:30:09,960 --> 00:30:13,920
Speaker 1: curtailing the emissions that cause global warming. Dozens of local

560
00:30:14,000 --> 00:30:17,200
Speaker 1: governments on the coasts have banned natural gas so cups

561
00:30:17,240 --> 00:30:21,280
Speaker 1: for new construction. In response, twenty state legislatures, mostly in

562
00:30:21,280 --> 00:30:23,959
Speaker 1: the middle of the country, have banned local authorities from

563
00:30:24,000 --> 00:30:27,000
Speaker 1: banning natural gas loo cups. But where are people most

564
00:30:27,120 --> 00:30:29,960
Speaker 1: likely to have gas free homes now? In states that

565
00:30:30,040 --> 00:30:33,680
Speaker 1: are banning gas hookup bands? Mainly in one of them, Florida,

566
00:30:34,000 --> 00:30:37,280
Speaker 1: seventy seven percent of homes are all electric in hookup

567
00:30:37,320 --> 00:30:41,040
Speaker 1: band hotbeds New York. In California, the all electric shares

568
00:30:41,080 --> 00:30:44,480
Speaker 1: are just seven and eight percent. Politicians in New York

569
00:30:44,520 --> 00:30:47,200
Speaker 1: and California are making such a big deal about home

570
00:30:47,280 --> 00:30:50,280
Speaker 1: electrification in part because they have so far to go,

571
00:30:50,840 --> 00:30:53,040
Speaker 1: and at least some of the bann the band states

572
00:30:53,240 --> 00:30:57,720
Speaker 1: electrification is already here. I'm justin Fox. For more opinion,

573
00:30:57,960 --> 00:31:01,120
Speaker 1: please go to Bloomberg dot com, slid Opinion or O

574
00:31:01,280 --> 00:31:03,960
Speaker 1: P I n go on the Bloomberg terminal. This has

575
00:31:04,040 --> 00:31:07,880
Speaker 1: been Bloomberg Opinion. Listen from Bloomberg opinion, editorials and commentaries

576
00:31:07,960 --> 00:31:10,960
Speaker 1: every weekday. At this time, terminal customers can read more

577
00:31:11,400 --> 00:31:14,480
Speaker 1: at O P I n go. SMP futures down twenty

578
00:31:14,520 --> 00:31:17,240
Speaker 1: one point, staff futures down a hundred forty nastak futures

579
00:31:17,240 --> 00:31:23,000
Speaker 1: are lower by eighty eight points. This is Bloomberg Bloomberg

580
00:31:23,000 --> 00:31:25,640
Speaker 1: eleven three oh weather sunshine mid eighties today, chance for

581
00:31:25,680 --> 00:31:28,880
Speaker 1: an afternoon shower thundershower tomorrow with the high near nineties.

582
00:31:28,880 --> 00:31:31,120
Speaker 1: It will be mostly sunny and hot for Wednesday, going

583
00:31:31,200 --> 00:31:37,520
Speaker 1: back up near ninety degrees right now sixty seven markets

584
00:31:37,640 --> 00:31:40,720
Speaker 1: headlines and breaking news twenty four hours a day at

585
00:31:40,760 --> 00:31:45,440
Speaker 1: Bloomberg dot com, bloo Bloomberg Business Outland, at Bloomberg Quicktape's

586
00:31:45,480 --> 00:31:55,320
Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow. European stocks

587
00:31:55,480 --> 00:31:58,239
Speaker 1: dropping this morning along with US stock intext futures as

588
00:31:58,320 --> 00:32:01,320
Speaker 1: traders await the key second quarter earning season for indications

589
00:32:01,360 --> 00:32:04,200
Speaker 1: on how companies are weathering the inflation storm. We checked

590
00:32:04,200 --> 00:32:06,880
Speaker 1: the markets every fifteen minutes throughout the trading day. On

591
00:32:07,000 --> 00:32:09,120
Speaker 1: Bloomberg U S and P future is down twenty two

592
00:32:09,160 --> 00:32:12,040
Speaker 1: points down, futures down a hundred thirty nine nosday futures

593
00:32:12,080 --> 00:32:15,080
Speaker 1: down ninety The decks in Germany's down seven tenths of

594
00:32:15,200 --> 00:32:17,680
Speaker 1: upper cent. The ten year treasury of five thirty seconds

595
00:32:17,760 --> 00:32:20,320
Speaker 1: held three point oh six percent yal done a two

596
00:32:20,400 --> 00:32:23,280
Speaker 1: year three point oh seven percent di nex screwde oil

597
00:32:23,480 --> 00:32:25,600
Speaker 1: is down to and a third percent on two dollars

598
00:32:25,680 --> 00:32:27,840
Speaker 1: forty seven cents and a hundred two dollars thirty six

599
00:32:27,880 --> 00:32:30,600
Speaker 1: cents of barrel and bitcoin this morning downward than two

600
00:32:30,640 --> 00:32:33,880
Speaker 1: percent to twenty thousand, five ten dollars. That's a Bloomberg

601
00:32:33,920 --> 00:32:36,320
Speaker 1: business flash. Now here's Michael Barr with more on what's

602
00:32:36,360 --> 00:32:38,960
Speaker 1: going on around the world. Michael Karen, thank you very much.

603
00:32:39,080 --> 00:32:42,880
Speaker 1: Japanese from minister Fumio Ka has called for party unity

604
00:32:42,960 --> 00:32:47,240
Speaker 1: to achieve the unfinished goals of assassinated former leader Shinzo Abe,

605
00:32:47,320 --> 00:32:51,640
Speaker 1: including strengthening the military. It comes as Kashida's ruling block

606
00:32:51,680 --> 00:32:54,840
Speaker 1: secured more seats in parliaments upper House in elections yesterday.

607
00:32:55,280 --> 00:32:59,040
Speaker 1: Also today, US Secretary of State Anthony Lincoln met with

608
00:32:59,160 --> 00:33:02,640
Speaker 1: Kashita to all for his condolences. President Biden says he

609
00:33:02,800 --> 00:33:05,920
Speaker 1: is considering declaring a public health emergency to free up

610
00:33:05,960 --> 00:33:10,160
Speaker 1: federal resources to promote abortion access. In baseball, the Yankees

611
00:33:10,240 --> 00:33:12,440
Speaker 1: lost to the Red Sox eleven six. The Mets have

612
00:33:12,520 --> 00:33:15,400
Speaker 1: lost along with the Nationals and A's. The Orioles won

613
00:33:15,480 --> 00:33:18,880
Speaker 1: their eight straight. The Giants want global news twenty four

614
00:33:18,920 --> 00:33:22,000
Speaker 1: hours a day. On air and on Bloomberg Quicktike, powered

615
00:33:22,040 --> 00:33:24,600
Speaker 1: by more than twenty seven hundred journalists and analysts, are

616
00:33:24,600 --> 00:33:27,360
Speaker 1: more than a hundred twenty countries. Michael bar this is

617
00:33:27,400 --> 00:33:30,040
Speaker 1: Bloomberg Nick. Thanks Michael. It's five forty eight on Wall

618
00:33:30,080 --> 00:33:33,160
Speaker 1: Street Live from the Bloomberg Interactive Broker Studios. This is

619
00:33:33,320 --> 00:33:35,480
Speaker 1: Bloomberg Daybreak. Is We're gonna get ready to kick off

620
00:33:35,520 --> 00:33:38,400
Speaker 1: a very busy week for investors. Were joined this morning

621
00:33:38,480 --> 00:33:42,840
Speaker 1: by Ross Mayfield, investment strategy analyst at Baird and Company. Ross,

622
00:33:43,000 --> 00:33:44,840
Speaker 1: good morning. Obviously I want to get your thoughts on

623
00:33:45,000 --> 00:33:48,000
Speaker 1: this market, but I wonder if you have anything to

624
00:33:48,240 --> 00:33:53,480
Speaker 1: add to this ongoing Elon Musk Twitter buy out saga

625
00:33:53,600 --> 00:33:55,880
Speaker 1: now apparently headed to court. Where do you see this

626
00:33:56,000 --> 00:33:58,840
Speaker 1: thing going? You know, I don't know if I have

627
00:33:58,920 --> 00:34:01,240
Speaker 1: a time to add to had such a focus of

628
00:34:01,280 --> 00:34:04,360
Speaker 1: the discourse, but it seems like a lose lose at

629
00:34:04,400 --> 00:34:06,560
Speaker 1: this point, right. I mean, they're gonna they're gonna, you know,

630
00:34:06,680 --> 00:34:08,560
Speaker 1: take this to the courts and it's gonna probably get

631
00:34:08,600 --> 00:34:11,359
Speaker 1: muddy and messy, and it just feels like this isn't

632
00:34:11,400 --> 00:34:13,560
Speaker 1: what Twitter wants, this isn't what Elon wants, and so

633
00:34:13,680 --> 00:34:16,600
Speaker 1: we kind of headed to you know, a messy, messy

634
00:34:16,640 --> 00:34:20,120
Speaker 1: break up from here, is Twitter headed lower? From here,

635
00:34:20,160 --> 00:34:23,920
Speaker 1: there's some people talking about a bottom well below thirty

636
00:34:24,400 --> 00:34:28,239
Speaker 1: a share. Well, look, I mean, I think part of

637
00:34:28,320 --> 00:34:30,680
Speaker 1: this has to be right. In the initial stages of this,

638
00:34:30,880 --> 00:34:33,920
Speaker 1: tech stocks were in one place, and then along the

639
00:34:34,040 --> 00:34:37,120
Speaker 1: course of this you know kind of courtship and offers,

640
00:34:37,680 --> 00:34:40,600
Speaker 1: tech stocks continued to plumb it. So, you know, without

641
00:34:40,680 --> 00:34:43,200
Speaker 1: this to uh, you know, put a floor under Twitter's price,

642
00:34:43,560 --> 00:34:45,800
Speaker 1: I think there's potential just to catch up with the

643
00:34:45,880 --> 00:34:47,959
Speaker 1: rest of the kind of the tech route and growth

644
00:34:48,000 --> 00:34:50,560
Speaker 1: throughout that we've seen across the first half of the year.

645
00:34:50,680 --> 00:34:53,600
Speaker 1: So um, I'm not sure, but it wouldn't surprise me

646
00:34:53,719 --> 00:34:55,400
Speaker 1: if it if it kind of caught down to some

647
00:34:55,520 --> 00:34:58,120
Speaker 1: of the other tech weakness, and we're looking at more

648
00:34:58,160 --> 00:35:00,520
Speaker 1: signs of that tech round potentially continue doing here. With

649
00:35:00,920 --> 00:35:03,840
Speaker 1: Nasdaq futures leading declines this morning, as I mentioned, it

650
00:35:03,960 --> 00:35:06,280
Speaker 1: is a very busy week for investors, with the focus

651
00:35:06,400 --> 00:35:09,440
Speaker 1: now going to second quarter earnings and of course inflation,

652
00:35:09,600 --> 00:35:12,400
Speaker 1: recession worries at the foreign we're kind of hearing dueling

653
00:35:12,520 --> 00:35:15,319
Speaker 1: views on where this market goes from here. Ross Mike

654
00:35:15,360 --> 00:35:18,720
Speaker 1: Wilson over Morgan Stanley is thinking that a stronger dollar

655
00:35:18,840 --> 00:35:21,239
Speaker 1: could be a headwinds for earnings, while a city group

656
00:35:21,360 --> 00:35:24,840
Speaker 1: is thinking that corporate profits could hold up to the

657
00:35:25,280 --> 00:35:28,480
Speaker 1: inflation concerns that an economic slowdown. Where do you see

658
00:35:28,520 --> 00:35:31,239
Speaker 1: this market right now? Yeah, I think, I mean, I

659
00:35:31,320 --> 00:35:34,560
Speaker 1: think this earning season will show you know, tepid strength,

660
00:35:34,719 --> 00:35:38,280
Speaker 1: modest strength, and it will be more about um forward guidance,

661
00:35:38,320 --> 00:35:40,560
Speaker 1: what companies are seeing on the cost side of things,

662
00:35:40,640 --> 00:35:43,080
Speaker 1: how they're how they're viewing the consumer picture in particular.

663
00:35:43,640 --> 00:35:47,040
Speaker 1: Um So I think this actual earnings could be a

664
00:35:47,160 --> 00:35:50,359
Speaker 1: bit anticlimactic, but the guidance peace and then what soull

665
00:35:50,400 --> 00:35:53,439
Speaker 1: side analysts doing response as far as re visions to say,

666
00:35:54,400 --> 00:35:58,640
Speaker 1: estimates will be important. Um you know, FFX as a

667
00:35:58,680 --> 00:36:02,000
Speaker 1: headwind and f FX will uh you know, probably probably

668
00:36:02,040 --> 00:36:04,359
Speaker 1: weigh on the bottom line, but it's hard to ever

669
00:36:04,480 --> 00:36:07,400
Speaker 1: get you know, to too overly concerned with what the

670
00:36:07,840 --> 00:36:11,319
Speaker 1: swings and currencies actually weigh on, uh on earnings. More

671
00:36:11,480 --> 00:36:14,880
Speaker 1: to me, it's about the cost inflation, wage inflation, and

672
00:36:14,960 --> 00:36:17,560
Speaker 1: then how companies who are seeing that consumer spending in

673
00:36:17,640 --> 00:36:20,440
Speaker 1: real time think that the consumer is holding up in

674
00:36:20,520 --> 00:36:22,719
Speaker 1: the face of a lot of pressure. What's your expectation

675
00:36:22,800 --> 00:36:26,760
Speaker 1: on how companies are going to lay out those concerns.

676
00:36:28,560 --> 00:36:32,480
Speaker 1: I think what we'll see is um probably not the

677
00:36:32,520 --> 00:36:35,440
Speaker 1: worst case scenario, which is heading towards kind of a deepercession,

678
00:36:35,520 --> 00:36:37,719
Speaker 1: and probably not the best case scenario, which right now

679
00:36:38,480 --> 00:36:41,400
Speaker 1: I think three earnings are still pegged for the S

680
00:36:41,480 --> 00:36:44,280
Speaker 1: and T at close to two and fifty dollars a share,

681
00:36:44,320 --> 00:36:48,799
Speaker 1: which would be about growth uh next year. That's that's

682
00:36:48,880 --> 00:36:52,720
Speaker 1: pretty inconsistent with even a mild economic slowdown, which almost

683
00:36:52,760 --> 00:36:54,680
Speaker 1: seems like a certainty given what the set is doing

684
00:36:54,760 --> 00:36:57,960
Speaker 1: where inflation still is. So, I think earnings revisions need

685
00:36:58,000 --> 00:37:00,200
Speaker 1: to come in. I think estimates need to come down.

686
00:37:00,560 --> 00:37:03,040
Speaker 1: But I do think that the consumer strength and the

687
00:37:03,120 --> 00:37:06,560
Speaker 1: corporate strength to date will provide kind of a cushion

688
00:37:07,200 --> 00:37:10,160
Speaker 1: um that that we can take solace in heading into

689
00:37:10,400 --> 00:37:13,640
Speaker 1: h heading into so somewhere in the middle. Um, but

690
00:37:13,880 --> 00:37:17,040
Speaker 1: certainly expectations need to come in. Only about thirty seconds

691
00:37:17,120 --> 00:37:19,640
Speaker 1: left here ross we get inflation data as well this week.

692
00:37:19,680 --> 00:37:23,719
Speaker 1: Are you seeing any signs of peak inflation? Yeah? Sure,

693
00:37:23,840 --> 00:37:26,640
Speaker 1: I mean industrial medals, uh, you know, break evens are

694
00:37:26,680 --> 00:37:29,520
Speaker 1: coming in. Uh, yields to come in quite a bit um,

695
00:37:30,080 --> 00:37:32,320
Speaker 1: you know, gasoline prices, so so we're seeing plenty of

696
00:37:32,400 --> 00:37:34,920
Speaker 1: signs of it. The bigger issue to me is wage inflation.

697
00:37:35,360 --> 00:37:37,120
Speaker 1: We got a lot of data last week that said

698
00:37:37,120 --> 00:37:39,280
Speaker 1: the job market is still quite strong, and that's obviously

699
00:37:39,280 --> 00:37:40,960
Speaker 1: a very sticky form of inflation. So we need to

700
00:37:40,960 --> 00:37:43,120
Speaker 1: see some peasing of pressure on that front to really

701
00:37:43,120 --> 00:37:45,360
Speaker 1: get continue. Thanks for ros, good to have you on

702
00:37:45,400 --> 00:37:48,560
Speaker 1: with us this morning. Ross Mayfield, investment strategy analyst at

703
00:37:48,600 --> 00:37:53,200
Speaker 1: Baird and Company, Karen. Then it is five three on

704
00:37:53,320 --> 00:37:56,040
Speaker 1: Wall Street. It's time for the Bloomberg Law Report, brought

705
00:37:56,080 --> 00:37:59,920
Speaker 1: to you buy American Arbitration Association. Business disputes are inevitable.

706
00:38:00,040 --> 00:38:03,960
Speaker 1: Brasilve faster with the American Arbitration Association, the global leader

707
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Speaker 1: in alternative dispute resolution for over ninety years. More at

708
00:38:07,200 --> 00:38:09,960
Speaker 1: a dr dot org. That's gift of the legal stories

709
00:38:10,000 --> 00:38:16,080
Speaker 1: we are watching this morning from Bloomberg's Joan Donnegher. Mr.

710
00:38:16,200 --> 00:38:19,120
Speaker 1: Creme Court's decision overturning the right to an abortion opens

711
00:38:19,160 --> 00:38:22,280
Speaker 1: the door from more conflict over travel for an abortion.

712
00:38:22,520 --> 00:38:25,320
Speaker 1: Three law professors tell Bloomberg Law the right to travel

713
00:38:25,440 --> 00:38:29,000
Speaker 1: like the right to privacy, isn't mentioned explicitly in the Constitution,

714
00:38:29,280 --> 00:38:31,640
Speaker 1: so the High Court will have to design that Texas

715
00:38:31,680 --> 00:38:34,720
Speaker 1: state lawmakers planted target law firms with civil and criminal

716
00:38:34,840 --> 00:38:37,840
Speaker 1: sanctions that have promised to cover travel expenses for workers

717
00:38:37,920 --> 00:38:40,920
Speaker 1: to obtain abortions in other states. And the Justice Department

718
00:38:41,000 --> 00:38:43,800
Speaker 1: is asking a federal court to pause booze Allen Hamilton's

719
00:38:43,880 --> 00:38:47,480
Speaker 1: deal to my ever watch a defense technology firm, Bloomberg

720
00:38:47,600 --> 00:38:51,680
Speaker 1: Law everything you need, all on one legal research platform,

721
00:38:51,840 --> 00:38:56,480
Speaker 1: including guidance analysis and Bloomberg market intelligence. Find out more

722
00:38:56,560 --> 00:38:59,600
Speaker 1: at Bloomberg Law dot com. All right, John, thanks Now

723
00:38:59,680 --> 00:39:02,600
Speaker 1: another ego story where watching the Supreme Court finished a

724
00:39:02,640 --> 00:39:06,239
Speaker 1: tumultuous term in which the conservative majority wiped away the

725
00:39:06,320 --> 00:39:10,200
Speaker 1: constitutional right to abortion, expanded gun rights, up end of

726
00:39:10,239 --> 00:39:12,760
Speaker 1: the law of church and state, and limited the federal

727
00:39:12,800 --> 00:39:15,960
Speaker 1: government's ability to combat climate change. It was a term

728
00:39:16,040 --> 00:39:19,920
Speaker 1: that exposed dissension among the justices as the Conservatives exercised

729
00:39:19,960 --> 00:39:23,280
Speaker 1: more power over the lives of Americans. For more, Bloomberg

730
00:39:23,320 --> 00:39:27,040
Speaker 1: student Grosso speaks the constitutional law expert Stephen Vladdock, a

731
00:39:27,120 --> 00:39:30,480
Speaker 1: professor at the University of Texas Law School. In many

732
00:39:30,600 --> 00:39:33,120
Speaker 1: of these cases, the court would say, well, this is

733
00:39:33,239 --> 00:39:36,480
Speaker 1: up to Congress or Congress has to say this more exactly,

734
00:39:37,120 --> 00:39:39,480
Speaker 1: knowing that Congress has gridlocked and is not going to

735
00:39:39,600 --> 00:39:43,400
Speaker 1: address this. Is the Court now more powerful than the

736
00:39:43,560 --> 00:39:46,719
Speaker 1: other branches? More powerful than it should be? So the

737
00:39:46,760 --> 00:39:49,560
Speaker 1: first I don't know how anyone considers the Supreme Court

738
00:39:49,640 --> 00:39:51,640
Speaker 1: today has power the life of which I don't think

739
00:39:51,680 --> 00:39:54,120
Speaker 1: it's at at any point in history. And someone that's

740
00:39:54,160 --> 00:39:56,240
Speaker 1: because of power that the Court has claimed for itself.

741
00:39:56,400 --> 00:39:58,080
Speaker 1: But we ought to be Franks, and that's because we

742
00:39:58,160 --> 00:40:01,239
Speaker 1: are in a period of political deadlock in Washington. Is

743
00:40:01,320 --> 00:40:03,280
Speaker 1: it more powerful than it should be? I mean again,

744
00:40:03,480 --> 00:40:06,400
Speaker 1: I think it's worth stressed him that in the federalist right,

745
00:40:06,560 --> 00:40:10,000
Speaker 1: Madison's argument for why the people of New York ratify

746
00:40:10,040 --> 00:40:12,560
Speaker 1: the Constitution with the power separated the way they were

747
00:40:12,880 --> 00:40:15,480
Speaker 1: was that ambition ought to be made to counteract ambition.

748
00:40:15,520 --> 00:40:17,279
Speaker 1: The branches should be made to check each other. And

749
00:40:17,280 --> 00:40:19,719
Speaker 1: I think what we're seeing is a Supreme Court that's

750
00:40:19,760 --> 00:40:22,000
Speaker 1: not worried about being checked by any foot. And that's

751
00:40:22,080 --> 00:40:24,919
Speaker 1: easy for folks who like what the current Supreme Court

752
00:40:25,040 --> 00:40:27,920
Speaker 1: is doing to not be all that troubled by. But

753
00:40:28,080 --> 00:40:29,960
Speaker 1: in the long term, I don't know how it's healthy

754
00:40:30,040 --> 00:40:33,239
Speaker 1: for our system when the Court is basically claiming the

755
00:40:33,280 --> 00:40:36,080
Speaker 1: power for itself, not just to decide where a right

756
00:40:36,120 --> 00:40:38,640
Speaker 1: started it's always been its power, but to decide what

757
00:40:38,840 --> 00:40:41,480
Speaker 1: Congress must have meant in statutes that wrote a long

758
00:40:41,520 --> 00:40:44,560
Speaker 1: time ago, the long term of this country and its history.

759
00:40:44,880 --> 00:40:47,120
Speaker 1: I don't know how we're all better off being run

760
00:40:47,239 --> 00:40:50,480
Speaker 1: by five or six on elected justices versus you know,

761
00:40:50,560 --> 00:40:54,480
Speaker 1: fivety six elected politicians. The justices don't even seem to

762
00:40:54,760 --> 00:40:59,880
Speaker 1: be trying to present a united front anymore. Only of

763
00:41:00,080 --> 00:41:03,840
Speaker 1: cases were unanimous. That's the lowest rate since Coodus Plug

764
00:41:04,320 --> 00:41:08,239
Speaker 1: began compiling statistics two decades ago. You know, usually at

765
00:41:08,239 --> 00:41:09,839
Speaker 1: the end of the term we say, well, it wasn't

766
00:41:09,880 --> 00:41:12,279
Speaker 1: as divisive as we thought, But now we look at

767
00:41:12,320 --> 00:41:15,560
Speaker 1: these numbers and it was. Listen, I think there's a

768
00:41:15,560 --> 00:41:18,480
Speaker 1: reason why conservatves are celebrating the scernment progressed or to cry.

769
00:41:18,680 --> 00:41:21,680
Speaker 1: I mean, this was as dominant a term for one

770
00:41:21,840 --> 00:41:26,920
Speaker 1: side of the political aisle in American politics as we've seen, really, frankly,

771
00:41:27,000 --> 00:41:29,279
Speaker 1: in as long as I can remember. And I don't

772
00:41:29,280 --> 00:41:31,399
Speaker 1: think that by itself as an indictment of the court.

773
00:41:31,480 --> 00:41:33,320
Speaker 1: I mean I think the problem is it's about the

774
00:41:33,480 --> 00:41:36,120
Speaker 1: cases the justices are taking. It's about the length they're

775
00:41:36,160 --> 00:41:40,080
Speaker 1: going to decide these issues. It's about the inconsistent rationales

776
00:41:40,120 --> 00:41:44,160
Speaker 1: they're relying upon. It's about the fubrists inflecting some of

777
00:41:44,239 --> 00:41:46,800
Speaker 1: the decisions, and frankly, it's about the complete black of

778
00:41:47,000 --> 00:41:50,080
Speaker 1: effort to suggest that the other size positions are reasonable

779
00:41:50,239 --> 00:41:53,160
Speaker 1: or work taking seriously. And in that regard, I think

780
00:41:53,239 --> 00:41:55,399
Speaker 1: the best themis can be said about the Supreme Court

781
00:41:55,600 --> 00:41:57,920
Speaker 1: term is that the Supreme Court is doing its best

782
00:41:58,000 --> 00:42:00,640
Speaker 1: to look like the country. We ought to expect more

783
00:42:00,760 --> 00:42:02,320
Speaker 1: from the Court and it ought to be above that.

784
00:42:03,080 --> 00:42:05,520
Speaker 1: And as Stephen Vladdick, a professor at the University of

785
00:42:05,600 --> 00:42:08,960
Speaker 1: Texas Law School, speaking with Bloomberg student Grosso. Catch more

786
00:42:09,040 --> 00:42:12,000
Speaker 1: of that interview, plus analysis of the latest legal news

787
00:42:12,320 --> 00:42:15,279
Speaker 1: by subscribing to the Bloomberg Law Podcast or downloading the

788
00:42:15,360 --> 00:42:18,839
Speaker 1: show at Bloomberg dot com slash podcast. Attorneys can find

789
00:42:18,880 --> 00:42:22,160
Speaker 1: exceptional legal research and business development tools at Bloomberg Law

790
00:42:22,280 --> 00:42:25,560
Speaker 1: dot com and on the Bloomberg terminal at b law Go.

791
00:42:26,400 --> 00:42:30,400
Speaker 1: Futures are lower this morning. SMP futures down twenty four

792
00:42:30,480 --> 00:42:33,280
Speaker 1: points down. Futures down a hundred fifty eight, NASTAG futures

793
00:42:33,280 --> 00:42:36,640
Speaker 1: down one hundred one and still ahead. On Bloomberg Daybreak,

794
00:42:36,719 --> 00:42:38,520
Speaker 1: we have a check on the business headlines and all

795
00:42:38,560 --> 00:42:40,400
Speaker 1: the news you need to start your day, and we

796
00:42:40,480 --> 00:42:43,080
Speaker 1: continue to watch shares a Twitter, which you're down about

797
00:42:43,120 --> 00:42:46,200
Speaker 1: seven percent right now. And this is Bloomberg.