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

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Speaker 1: Daybreak for Thursday, July two. Coming up this hour, Nastack

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Speaker 1: futures fall after yesterday's fed fueled rally. Facebook owner Meta

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Speaker 1: Platforms drops following earnings, Amazon and Apple report. Today, President

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Speaker 1: Biden and China's Shi Jin Pain gets set to speak,

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Speaker 1: and Joe Manchin and Chuck Schumer strike a deal on

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Speaker 1: a tax and energy policy belt. There's an offer on

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Speaker 1: the table to get w n B, a star Britney

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Speaker 1: Griner back from Russia, plus a new groundbreaking to bring

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Speaker 1: the portable housing to New York City. I'm Michael blar

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Speaker 1: More ahead, I'm town Stash and sports the Mets with

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Speaker 1: a walk off when to swape the Subway series. The

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Speaker 1: Yankees have acquired a new outbuild. That's All's training. Head

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Speaker 1: on Bloomberg Daybreak on Bloomberg he Living Free on New York,

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Speaker 1: Bloomberg one, Washington, d C, Bloomberg one, O six one, Boston,

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Speaker 1: Bloomberg nine sixties and Francisco Sirius XAM one nine team,

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Speaker 1: and around the world on Bloomberg Radio dot Com and

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Speaker 1: via the Bloomberg Business App. Good morning, I'm Nathan Hagart

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Speaker 1: and I'm Karen Moscow. US DOT Index futures are lower

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Speaker 1: this morning. We are coming up to five oh one

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Speaker 1: on Wall Street, and we check the markets every fifteen

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Speaker 1: minutes throughout the trading day. On Bloomberg. Right now, SNP

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Speaker 1: futures are down fifteen points. Now futures down forty five

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Speaker 1: NASTACK futures down one twelve. The decks in Germany's down

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Speaker 1: a third of u percent. Ten year Treasury down one

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Speaker 1: thirty second two points seven eight percent. They yield on

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Speaker 1: the two year two point nine eight percent. Nathan, we'll Karen.

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Speaker 1: This morning's drop in futures comes after the biggest one

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Speaker 1: day gain for tech stocks since November. The NASDACS searched

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Speaker 1: four point three percent yesterday following resilient earnings and the

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Speaker 1: FEDS press conference. Randy Watts, chief investment strategistict O'Neil Global Advisor, says,

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Speaker 1: there is light at the end of the tunnel, so

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Speaker 1: I think the minute the stock market can identify or see,

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Speaker 1: we don't have to be there, but can see the

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Speaker 1: end of the Fed titans cycle. I think stocks are

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Speaker 1: headed up a lot higher. Randy wattson O'Neil Global Advisor's

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Speaker 1: notes the SMP five hundreds on course for its biggest

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Speaker 1: monthly gain since October last year. Well Nathan reaction is

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Speaker 1: still pouring in this morning to yesterday's FED decision. Share

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Speaker 1: J Powell says moderate hikes are coming, but the pace

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Speaker 1: will slow at some point as the stance of monetary

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Speaker 1: policy titans further, it likely will become appropriate to slow

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Speaker 1: the pace of increases while we assess how our cumulative

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Speaker 1: policy adjustments are affecting the economy and inflation. At the

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Speaker 1: same time, J. Powell and the FED are losing credibility,

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Speaker 1: as according to Scott Minor, chief investment officer at Guggenheim,

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Speaker 1: after this this run up we're getting in the in

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Speaker 1: the stock market and the bond market right now, that

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Speaker 1: that by next week we're going to be sitting around

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Speaker 1: and questioning, um, you know, and gee, you know, are

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Speaker 1: they really being incredible? Guggenheim Scott Miner It says the

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Speaker 1: economy may already be in a recession. However, Bloomberg opinion

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Speaker 1: columnist Muhammad Hilarian thinks the economy remains wrong. It's a

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Speaker 1: FED that needs to re anchor itself, but the wheel

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Speaker 1: economy is again running ahead of it. Both Muhammadhalarian and

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Speaker 1: Scott Mitred made the comments on a special edition of

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Speaker 1: Bloomberg Surveillance heard right here on Bloomberg Radio and Bloomberg Television. Well, next, Yaren,

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Speaker 1: we get a key reading on the US economy. Second

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Speaker 1: quarter GDP comes out at eight thirty am. Wall Street

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Speaker 1: Time economists expect annualized growth of a half percent. On

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Speaker 1: the surface, that would be an improvement after a one

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Speaker 1: point six percent drop in the first quarter. Let's turn

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Speaker 1: to earnings now, Nathan, where tech is front end center

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Speaker 1: shares the meta platforms are down five percent. The parent

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Speaker 1: of Facebook and Instagram reported its first ever quarterly sales decline. Here,

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Speaker 1: CEO Mark Zuckerberg, we seem to have entered an economic

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Speaker 1: downturn that will have a broad impact on the digital

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Speaker 1: advertising business. And it's always hard to predict how deep

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Speaker 1: or how long these cycles will be, but I'd say

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Speaker 1: that the situation seems worse than it did a quarter ago.

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Speaker 1: The week results from Zuckerberg's meta platforms is weighing on

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Speaker 1: sentiment this morning after revenue forecast fell short of estimates.

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Speaker 1: Coming up today, Karen, we enter the busiest day of

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Speaker 1: the earning season, highlighted by reports from Apple and Amazon.

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Speaker 1: Bloomberg's Jeff Bellinger has the details. Apple's quarterly profit may

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Speaker 1: have declined. If it did, it would be the first

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Speaker 1: drop in almost two years. Investors will be especially interested

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Speaker 1: in hearing about iPhone sales, since the device typically accounts

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Speaker 1: for half of Apple's revenue. Bloomberg Intelligence says, we may

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Speaker 1: hear that Amazon dot COM's online revenue, games and profit slowed,

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Speaker 1: but there is strong potential for continued growth and cloud services,

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Speaker 1: streaming and advertising. Walmart issued a profit warning this week,

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Speaker 1: but Amazon is not Walmart b I says its customer

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Speaker 1: base is more affluent. Jeff Bellinger, Bloomberg day Break. All right, Jeff,

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Speaker 1: thank you. On the M and A front this morning,

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Speaker 1: we're learning that Jeff Blue is close to an agreement

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Speaker 1: to buy Spirit Airlines, and Bloomberg's Greneda Young is here

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Speaker 1: live with or Good morning Room, Nita, Good morning Carrion.

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Speaker 1: Bloomberg sources say Jet Blues deal to buy Spirit could

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Speaker 1: come as soon as today. The airline swooped in just

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Speaker 1: hours after Spirit ending Appending ended appending merger with Frontier Airlines,

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Speaker 1: and that deal fell apart. On a lack of shareholder support.

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Speaker 1: A Spirit acquisition would be Jet blues best shot to

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Speaker 1: broaden its network quickly. It will also inject an infusion

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Speaker 1: of pilots and air cap craft orders, both of which

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Speaker 1: are expected to be in short supply for several years.

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Speaker 1: Live in New York. I'm Ranita Young, Bloomberg Debris. All right, Nita, thanks.

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Speaker 1: You've also got geo politics on the front burner this morning,

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Speaker 1: and we're learning more about the agenda for today's call

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Speaker 1: between Presidents Biden and she Jin Ping. Amy Morris has

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Speaker 1: details from our Bloomberg newsroom in Washington. The two world

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Speaker 1: leaders will discuss Trump era tariffs, Russia's invasion of Ukraine,

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Speaker 1: a price cap on Russian oil, climate change, and economic competition.

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Speaker 1: National Security Council Communications strategic Coordinator John Kirby says he

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Speaker 1: expects the President will also bring up China's increasingly aggressive

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Speaker 1: actions in the South China Sea. I would fully expect

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Speaker 1: that part of the President's conversation that tensions in the

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Speaker 1: South China will will come up. Today's call comes as

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Speaker 1: tensions are rising over a possible visit to Taiwan by

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Speaker 1: how Speaker Nancy Pelosi in Washington. I'm Mammy Morris Bloomberg Daybreak,

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Speaker 1: All right, Amy, thank you a meantime on Capitol Hill,

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Speaker 1: and Energy and Tax bill may have just come back

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Speaker 1: to life in the Senate, as Senators Joe Manchin and

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Speaker 1: Chuck Schumer have reached a deal on a seven hundred

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Speaker 1: thirty nine billion dollar package that includes a fifteen percent

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Speaker 1: corporate minimum tax, three hundred billion dollars in deficit reductions,

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Speaker 1: and three hundred sixty nine billion for energy and climate change.

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Speaker 1: Bloomberg polit takes A contributor Genie sheehan Zeno says it's

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Speaker 1: a win for Democrats. It's a big victory for what

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Speaker 1: I call the Purple Dems. Those Democrats who have to

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Speaker 1: go to these moderate districts with a president with approval

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Speaker 1: ratings in the thirties have been looking for something to

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Speaker 1: take home. I don't think they ever suspected they would

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Speaker 1: get both chips and reconciliation. Bloomberg can tributor Jeannie Shehanzeno

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Speaker 1: spoke with our Washington corresponded Joe Matthew on Bloomberg Sound

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Speaker 1: on Catch the show weekdays at five pm Eastern on

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Speaker 1: Bloomberg Radio, and futures are lower this morning, SMP futures

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Speaker 1: down fifteen points, straight ahead, your latest local headlines, plus

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Speaker 1: a check of sports. And this is Bloomberg. Thanks Karen.

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Speaker 1: Five oh seven on Wall Street, seventy four degrees in

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Speaker 1: Central Park. Already dealing to the big problem on the

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Speaker 1: westbound l I near Utopia Parkway. There's an overturned vehicle.

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Speaker 1: Get to the details and traffic first. Michael Bars here

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Speaker 1: with more on what's going on in New York and

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Speaker 1: around the world. Good morning, Michael, Good morning, Nathan. Secretary

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Speaker 1: of State Anthony B. Lincoln says the US has made

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Speaker 1: an offer for the release of w NBA star Britney

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Speaker 1: Griner and former US Marine Paul Wheeland from prison in Russia.

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Speaker 1: Lincoln said he plans to put the US proposal before

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Speaker 1: Russian officials, and he plans to bring up grain shipments

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Speaker 1: from Ukraine and Americans being held by the Kremlin. I

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Speaker 1: planned to raise an issue that a top priority for US,

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Speaker 1: the release of Americans Paul Wheeling and Brittney Griner, who've

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Speaker 1: been wrongfully detained and must be allowed to come home.

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Speaker 1: Secretary Blincoln says he plans to speak with Russian foreign

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Speaker 1: ministers Sergei Lavrov in the coming days. A person familiar

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Speaker 1: with the offers said the US would swap them for

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Speaker 1: imprisoned Russian arms dealer Victor Boot. Vice President Kamala Harris

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Speaker 1: will be in New York today. She will be in

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Speaker 1: Brooklyn to meet with community leaders. They will discuss the

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Speaker 1: Biden administration's investment in underserved communities, financial institutions, and small businesses.

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Speaker 1: Governor Kathy hocol and New York City Mayor Eric Adams

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Speaker 1: announced the groundbreaking on an affordable housing development in the

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Speaker 1: Morris Heights section of the Bronx. HOCl says the one

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Speaker 1: nine million dollar development will feature three six affordable apartments,

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Speaker 1: including two hundred homes with supportive services for individuals experiencing homelessness.

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Speaker 1: Right now, Bronx households are rent Burton. What does that

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Speaker 1: mean they spend more than of their income on rent. Well,

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Speaker 1: just earlier this week, I was talking about how people

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Speaker 1: are spending income on childcare. So add that up. You're

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Speaker 1: still trying to pay for rent. You've got a couple

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Speaker 1: of kids. We need childcare because you need to have

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Speaker 1: a job to pay for this. It doesn't add up.

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Speaker 1: Governor Ouncle went on to say the development will provide safe,

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Speaker 1: stable homes for more than three hundred residents of the Bronx,

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Speaker 1: and offer critical resources and amenities to support the Morris

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Speaker 1: Heights neighborhood in the long term. North Korean leader Kim

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Speaker 1: johanuon unleashed fiery rhetoric yesterday as they celebrate at the

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Speaker 1: sixty nine anniversary of the Korean War armistice. Kim warned

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Speaker 1: he's ready to use his nuclear weapons and potential military

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Speaker 1: conflicts with the US and South Korea. Global News twenty

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Speaker 1: four hours a day on air and on Bloomberg Quicktake,

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Speaker 1: powered by more than seven d journalists and analysts more

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Speaker 1: than a hundred twenty countries. I'm Michael barn This is

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Speaker 1: Bloomberg NACOM. All right, Michael, thank you, five oh nine

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Speaker 1: on Wall Street. Time for the Bloomberg Sports Update. Good morning,

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Speaker 1: John stash Our, Good morning, Nathan. Bragging rights to the Mets.

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Speaker 1: They got an early home run from Peter Alonzo his

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Speaker 1: twenties six. They got brilliant pitching for Max Scherzer on

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Speaker 1: his thirty eighth birthday through seven scoreless, and he struck

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Speaker 1: out Aaron Judge three times. Yankees did tie the game

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Speaker 1: on a glabor Tores two run home or eighth inning.

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Speaker 1: But in the bottom of the nine, I want to

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Speaker 1: know the farte for all the deals, S're gonna line

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Speaker 1: in the left base put up, here comes Escobar. He

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Speaker 1: stars the winning road parte Slams has helmet down at Hurst.

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Speaker 1: Comets have swept. The Yankees pay up the seat of

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Speaker 1: up three to two. That's poor. Out of the duck.

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Speaker 1: Up they are Bobby Starlet Martea. The line up second

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Speaker 1: day CBS Golf three to the final. Two New Mets

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Speaker 1: playing in the first Subway series combined to win it.

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Speaker 1: In the ninth the Marte hit after lead off double

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Speaker 1: by Eduardo Escobar. The Braves lost the Mets with three

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Speaker 1: games ahead. They're off tonight. The Yankees tonight host Kansas City,

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Speaker 1: which means the yanks new outfielder will face the team

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Speaker 1: that just traded him. A long rumor deal took place.

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Speaker 1: The Yanks acquire All star Andrew Benn and tender was

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Speaker 1: hitting three twenty for the Royals. We get back three

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Speaker 1: minor league pictures. This presumably ends talk of the Yanks

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Speaker 1: getting one SODO, but they are believed to still be

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Speaker 1: looking to at a starting picture. Two names mentioned off

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Speaker 1: in Cincinnati's Luis Castillo and Oakland's Frankie Mantas trade deadline

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Speaker 1: next Tuesday. Another big name golfer bolts the p G

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Speaker 1: A for the new Live Tour. Bubbo Watson, two time

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Speaker 1: Masters champion to Live Towards, starts the tournament tomorrow at

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Speaker 1: Trump National in New Jersey, Atlanta. Falcons made it official

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Speaker 1: their starting quarterback will be Marcus Mariota, John Stashiart Bloomberg Sports.

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Speaker 1: Nathan all Right, John, thank you're watching futures move lower

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Speaker 1: on earnings. SMP futures down eighteen points, Staff futures down

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Speaker 1: seventy one. Nastack futures leading the declines down down a

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Speaker 1: hundred twenty eight points. That is a drop of one percent.

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Speaker 1: To tend your treasury is a little changed, the yield

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Speaker 1: two point seven eight percent. Just had more analysis of

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Speaker 1: the FEDS decision and the path forward for raid hikes

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Speaker 1: week with Drew Maddis, chief market strategist at MetLife. This

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Speaker 1: is Bloomberg Bloomberg eleven three oh weather. Mix of sun

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Speaker 1: with a high near ninety degrees sun in passing clouds

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Speaker 1: upper eighties for Saturday. Right Now Markets headlines and breaking

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Speaker 1: news twenty four hours a day at Bloomberg dot Com,

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Speaker 1: The Bloomberg Business at and at Bloomberg Quicktapee's a Bloomberg

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Speaker 1: Business Flash and I'm Karen Moscow. European stocks rising as

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Speaker 1: the prospect of a slower pace off at a reserve

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Speaker 1: monetary tightening filters across global markets, investors turning their focus

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Speaker 1: to the busiest day of the earning season. Along with

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Speaker 1: key economic data, a dip in u S stock Index

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Speaker 1: Future suggests that US rally could stall, with technology stocks

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Speaker 1: set to pull back after their biggest jumps in November.

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Speaker 1: We checked the markets every fifteen minutes to out trading

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Speaker 1: day on Bloomberg Right Now, S and P futures down

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Speaker 1: eighteen points down, futures down sixty four and NASDACK futures

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Speaker 1: down one twenty eight that's down one percent. The decks

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Speaker 1: in Germany is lower, down about half percent. The ten

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Speaker 1: year Treasury little change yield two point seven eight percent.

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Speaker 1: The yield on the two year two point nine eight percent.

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Speaker 1: Nine X screwed oil is up to and a quarter

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Speaker 1: percent of two dollars fourteen cents and ninety nine dollars

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Speaker 1: forty cents of barrel comex s goled up one point

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Speaker 1: four percent, or twenty four dollars sixty cents at seventeen

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Speaker 1: sixty two. Ten announced the euro one point two oh

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Speaker 1: four against the dollar, British found one point two one

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Speaker 1: seven four, then one thirty five point three one, and

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Speaker 1: bitcoin is up half percent at twenty two thou nine

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Speaker 1: hundred dollars and Barclay's earnings fell short of forecasts on

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Speaker 1: the second quarter after the bank book charges and penalties

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Speaker 1: in the US. That's a Bloomberg business flash. Now here's

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Speaker 1: Michael Barr with Moore on what's going on around the world. Muchael,

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Speaker 1: Good morning, Good morning Karen. A possible prisoner swap with

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Speaker 1: Russia could bring w n B, a star, Britney grinder,

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Speaker 1: and former US Marine Paul Wheeland back to the US.

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Speaker 1: A person familiar with the offers said it would swap

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Speaker 1: them for imprisoned Russian arms dealer Victor Boot. However, Russia

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Speaker 1: says there's no agreement yet. Senator Joe Manchin and Majority

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Speaker 1: Leader Chuck Schumer have struck a deal on the tax

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Speaker 1: Energy and climb at Bill. It breaks the deadlock on

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Speaker 1: the Democrats long sought legislation to enact major parts President

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Speaker 1: Biden's agenda. In baseball, the Mets beat the Yankees three to,

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Speaker 1: The Guardians beat the Red Sox, the Dodgers beat the Nationals,

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Speaker 1: the Rays beat the Orioles, the A's beat the Astros

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Speaker 1: four to, The Diamondbacks beat the Giants. Global News twenty

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Speaker 1: four hours a day on air and on Bloomberg Quicktake,

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Speaker 1: powered by more than seven journalists and analyst more than

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

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Speaker 1: Nathan alright, Michael, thank you. It is five nineteen on

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Speaker 1: Wall Street Live from the Bloomberg Intractive Broker Studios. This

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Speaker 1: is Bloomberg Daybreak, as we continue gathering reaction to the

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Speaker 1: fed's latest policy decision on the path ahead for central

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Speaker 1: bank policy. We're joined this morning by Drew Medis, market

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Speaker 1: strategist at MetLife Investment Management. Drew, good morning, So no

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Speaker 1: surprises as far as the seventy five basis point move,

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Speaker 1: but we got some interesting messaging from Chairman Powell. Ongoing

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Speaker 1: increases maybe appropriate, but hikes will slow at some point,

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Speaker 1: how did you take what the chairman had to say. Yeah,

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Speaker 1: So it's interesting. I didn't really see this as new news.

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Speaker 1: I mean, he had been telegraphing that, uh, you know,

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Speaker 1: seventy five was likely uh this time around, and the

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Speaker 1: FED would reassess the things we're developing. And if you

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Speaker 1: look at the economic data around UM, around the decision, um,

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Speaker 1: you know, it's it's been softening, UM, and inflation expectations

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Speaker 1: on the part of consumers have been coming down in

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Speaker 1: line with gas prices. So uh, you know, the idea

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Speaker 1: that the FED would ratchet down that the pace of

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Speaker 1: rate hikes UM is uh. You know, in my mind,

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Speaker 1: we shouldn't have been too surprising. Um. You know, perhaps

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Speaker 1: most surprising in my mind is that they're going to

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Speaker 1: keep doing rate hikes given the momentum, the downward momentum

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Speaker 1: in the economy right now, which you know, really seems

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Speaker 1: to be steering us towards the recession. Um. You know,

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Speaker 1: when you see the movement and gas prices actually dramatically

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Speaker 1: affecting inflation expectations, is that your base case that the

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Speaker 1: FED is going to stay aggressive even in the face

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Speaker 1: of softening economic data that we are starting to see

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Speaker 1: now our base case, because they telegraphed it was that

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Speaker 1: they would they would downshift from the seventy five basis

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Speaker 1: point moves to something smaller UM and and you know,

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Speaker 1: maybe eke out another fifty basis points or so UM

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Speaker 1: this year in terms of rate hikes. But by that point,

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Speaker 1: you know, looking into three, UM, you know, it seemed

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Speaker 1: to us like a recession was was highly probable in

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Speaker 1: three given given the downward momentum we were seeing the

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Speaker 1: shift in UM consumer expectations where the labor market was

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Speaker 1: heading UM and uh, you know, the slowdown in economy

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Speaker 1: wide margins, which is something we'd like to at the

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Speaker 1: time recessions. What's the risk for the FED moving at

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Speaker 1: least more explicitly now toward a policy of data dependence,

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Speaker 1: the reliance on sort of backward looking data. Is there

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Speaker 1: a risking Well, there's always a risk looking at backward

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Speaker 1: looking data because policy works with the lag UM and

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Speaker 1: so uh, you know, people always liken it to um,

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Speaker 1: you know, driving in the rear view looking at the

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Speaker 1: rear view mirror only, and that's a pretty apt analogy. UM.

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Speaker 1: You know, one of our concerns and the reason we have,

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Speaker 1: you know, a recession penciled in for next year is

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Speaker 1: right around the time we expect that firms may be

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Speaker 1: pulling back on hiring an investment. We're also expecting the

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Speaker 1: full impact of the rate heights we've already had to

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Speaker 1: feed into the economy. Um. And so we would have

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Speaker 1: preferred a much earlier start to the rate hike cycle,

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Speaker 1: with a much more gradual pace to the rate hike cycle,

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Speaker 1: because you know, once you missed the rate hip bus,

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Speaker 1: we think it's a little dangerous to try to play

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Speaker 1: catch up and jump on board. Watts moving. Interesting as

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Speaker 1: well that the Chairman said that he doesn't think that

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Speaker 1: the US is currently in recession. Is that a hold

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Speaker 1: out of the possibility that central bank tightening could steer

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Speaker 1: the US into a decline? Uh? You know, I think

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Speaker 1: it's it's you know, a standard view. Um. You know,

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Speaker 1: the idea that we'd be in intercession and the unemployment

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Speaker 1: rates not moving just doesn't make any sense, right, I mean,

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Speaker 1: you know, the whole point of kind of timing a

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Speaker 1: recession is a period where economic growth is is contracting

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Speaker 1: in a meaningful way. Uh. And if the consumer is

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Speaker 1: not pulling back, um, and there's no impact on unemployment. Um.

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Speaker 1: You know, how do you get that meaningful reduction and

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Speaker 1: economic activity? UM so, But we thought it was a

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Speaker 1: little premature to say we're gonna be in a recession,

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Speaker 1: you know, earlier this year because of two quarters of

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Speaker 1: negative growth UM. You know it's not that that isn't

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Speaker 1: the technical definition of recession UM but or the short

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Speaker 1: that everyone uses, because it certainly is UM. But you

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Speaker 1: really have to put it in context. The unemployment rates

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Speaker 1: not moving, you know, it's hard to call anything at recession.

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Speaker 1: Only about thirty seconds left here we get a g

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Speaker 1: DP print today, what's that going to mean for economic expectations?

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Speaker 1: So just quickly, I think people are looking to see

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Speaker 1: if there are any aberrations because that will affect the

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Speaker 1: second half of the year where you have to be

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Speaker 1: a little more careful because you know we are slowing down.

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Speaker 1: Thanks Drew, great to have you on with us this

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Speaker 1: morning after the FED decision. Drew maddis chief market strategist

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Speaker 1: at MetLife Investment Management. Looking ahead to the market open,

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Speaker 1: looks like futures are pointing the losses here led by

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Speaker 1: tech sector. We have SMP futures down nineteen points right now,

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Speaker 1: Dow futures down seventy four Nastack futures lower by a

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Speaker 1: hundred thirty three points. That's a drop of almost one

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Speaker 1: point one percent. Ten Your treasury little changed right now

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Speaker 1: the yield two point seven eight percent. The yield on

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Speaker 1: the two year right now two point nine seven percent.

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Speaker 1: You're listening to blue Berg day Break Bloomberg eleven three

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Speaker 1: oh weather some passing showers and storms today with a

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Speaker 1: high in neeer ninety degrees. Will have afternoon showers and

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Speaker 1: storms as well. Tomorrow high near ninety operate sun in

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Speaker 1: passing clouds for Saturday. Right now seventy four in Central Park.

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Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York.

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Speaker 1: Bloomberg E Loving Freedom to Washington, d C. Bloomberg to Boston,

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Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg Non

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Speaker 1: sixty to the country, Sirius XM to the one nine team,

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Speaker 1: and around the globe the Bloomberg business in Bloomberg Radio

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Speaker 1: dot Com. This is Bloomberg day Break. It's five thirty

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Speaker 1: on Wall Street. Good morning. I'm Nathan Hager and I'm

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Speaker 1: Karen Moscow. We are just about four hours away from

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Speaker 1: the open of view US training. Let's get you have

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Speaker 1: to date on the news you need to know. At

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Speaker 1: this hour. US futures are slumping after the biggest game

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Speaker 1: for tech stocks since November of Yesterday's push higher came

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Speaker 1: after resilient earnings and the Fed's press conference, but Victoria Green,

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Speaker 1: chief investment officer at G squared Private Wealth, remains defensive.

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Speaker 1: I think the Margaret Pree decide relief that really wasn't necessary.

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Speaker 1: So I think we realized the earnings really aren't that strong.

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Speaker 1: We're going into a hawkice tightening cycle and a weakening

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Speaker 1: economic cycle, and I always think it's funny if we're

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Speaker 1: arguing about the definition of a session, we're probably in

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Speaker 1: a second. Victoria Green, mag Squared Private Wealth says the

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Speaker 1: FED is not being accommodative, but it is communicating well

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Speaker 1: and reactions still pouring in. Karen to FED Chair j

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Speaker 1: Powell's latest communication, the FED raised interest rate seventy five

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Speaker 1: basis points. Powell signaled more hikes coming, but ditched specific

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Speaker 1: forward guidance. The pace of those increases will continue to

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Speaker 1: depend on the incoming data and evolving outlook for the economy,

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Speaker 1: and Sheriff Hell says the FED is fully committed to

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Speaker 1: restoring price stability. Well. Next, Nathan, we get a key

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Speaker 1: reading on the US economy. Second quarter GDP comes out

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Speaker 1: of eight thirty am Wall Street Time economists expect annualized

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Speaker 1: growth of half of a percent after a contraction in

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Speaker 1: the first quarter. Let's turn to earnings now, Karen war

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Speaker 1: Tech is front end center. Shares of meta platforms are

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Speaker 1: down nearly six percent. The parent of Facebook and Instagram

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Speaker 1: reported its first ever quarterly sales decline. Up. Next, we

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Speaker 1: get results from Apple and Amazon, and on the M

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Speaker 1: and A front, Nathan. Jet Blue is close to an

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Speaker 1: agreement to buy Spirit Airlines. Bloomberg's Rinita Young is here

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Speaker 1: live with more. Good Morning Radia, Good morning, Karen. Bloomberg.

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Speaker 1: Sources say Jet Blues deal the by Spirit could come

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Speaker 1: as soon as today. The airline swooped in hours just

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Speaker 1: after Spirit ended a pending merger with Frontier Airlines. That

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Speaker 1: deal fill apart on a lack of shareholder support. A

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Speaker 1: Spirit acquisition would be Jet blues best shot to broaden

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Speaker 1: its network quickly. It will also inject an infusion of

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Speaker 1: pilots and aircraft orders, both of which are expected to

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Speaker 1: be in short supply for several years live in New York.

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Speaker 1: I'm rened a young Bloomberg day break, I need a thanks.

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Speaker 1: Couple important political notes this morning. President Biden and China's

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Speaker 1: Shi Jin Ping speak today. The world leaders are expected

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Speaker 1: to discuss trump are Tariff's Ukraine and economic competition. And Nathan,

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Speaker 1: there's also action on Capitol Hill. Senators Joe Mansion and

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Speaker 1: Chuck Schumer have reached a deal on a seven hundred

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Speaker 1: thirty nine billion dollar energy and tax bill that includes

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Speaker 1: three hundred sixty nine billion for energy and climate change.

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Speaker 1: And straight ahead, we have your latest local headlines, plus

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Speaker 1: a check of sports. Mr Is Bloomberg, Karen thanks hiree

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Speaker 1: on Wall Street, seventy degrees in Central Park new accident

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Speaker 1: on the l I E east bound at the Grand

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Speaker 1: Central Parkway. Details coming up in traffic. First, Michael Barr

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Speaker 1: with what else is going on in New York and

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Speaker 1: around the world. Michael, thank you very much, Nathan. Secretary

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00:23:51,359 --> 00:23:54,080
Speaker 1: of State Anthony Lincoln's that he intends to speak with

428
00:23:54,200 --> 00:23:57,560
Speaker 1: Russian Foreign Minister Sergey lav Roth about a substantial offer

429
00:23:58,080 --> 00:24:01,960
Speaker 1: to free imprison Americans. Wittney Grinder and Paul Wheeland. A

430
00:24:02,080 --> 00:24:04,720
Speaker 1: person familiar with the offers said it would swamp them

431
00:24:05,080 --> 00:24:08,880
Speaker 1: for imprisoned Russian arms dealer Victor Boot. However, Russia says

432
00:24:08,920 --> 00:24:12,640
Speaker 1: there is no agreement yet. National Security Council spokesman John

433
00:24:12,720 --> 00:24:15,160
Speaker 1: Kirby this has been at the top of the mind

434
00:24:15,240 --> 00:24:18,040
Speaker 1: for the President and for his whole national security team.

435
00:24:18,600 --> 00:24:21,560
Speaker 1: He receives regular updates about the status of our negotiations

436
00:24:21,680 --> 00:24:25,000
Speaker 1: to secure Brittany and Paul's release, as well as other

437
00:24:25,200 --> 00:24:28,480
Speaker 1: U S nationals who are wrongfully detained or held hashness

438
00:24:28,520 --> 00:24:30,880
Speaker 1: in Russia, and I might add around the world as well.

439
00:24:31,240 --> 00:24:35,159
Speaker 1: Spokesman Kirby says, though they won't negotiate in public. Governor

440
00:24:35,240 --> 00:24:37,960
Speaker 1: Kathy how Cool and New York City Mayor Eric Adams

441
00:24:38,000 --> 00:24:41,959
Speaker 1: announced the groundbreaking on a one million dollar affordable housing

442
00:24:42,040 --> 00:24:45,359
Speaker 1: development in the Morris Heights section of the Bronx. Governor

443
00:24:45,400 --> 00:24:48,840
Speaker 1: Hocals says Star Hill Face one will feature three six

444
00:24:48,920 --> 00:24:53,080
Speaker 1: affordable departments. Over two hundred of these homes are going

445
00:24:53,160 --> 00:24:57,359
Speaker 1: to be for people who've been homeless who expend experience

446
00:24:57,440 --> 00:25:01,200
Speaker 1: some of life's challenges, whether it's ups, abuse or mental

447
00:25:01,240 --> 00:25:03,760
Speaker 1: health challenges. They'll be able to get the support of

448
00:25:03,880 --> 00:25:06,639
Speaker 1: services not by trying to travel across town and go

449
00:25:06,800 --> 00:25:08,800
Speaker 1: see somebody who might be able to help him someday,

450
00:25:08,880 --> 00:25:12,359
Speaker 1: maybe in between their jobs, but right here on site.

451
00:25:12,680 --> 00:25:17,119
Speaker 1: Governor huncle says the national affordability crisis is driving rent

452
00:25:17,160 --> 00:25:20,280
Speaker 1: and other costs to new highs. New York Attorney General

453
00:25:20,359 --> 00:25:23,080
Speaker 1: Letitia James asked judge to allow her to join the

454
00:25:23,160 --> 00:25:27,000
Speaker 1: lawsuit brought against Glock by a New York woman wounded

455
00:25:27,160 --> 00:25:30,359
Speaker 1: in in April shooting on a crowded subway train. Eileen

456
00:25:30,440 --> 00:25:32,680
Speaker 1: Stewart was one of ten people wounded when she was

457
00:25:32,760 --> 00:25:36,240
Speaker 1: shot by a gunman with a glock pistol. Earlier this month.

458
00:25:36,280 --> 00:25:39,240
Speaker 1: Block sought to have the suit dismissed under a federal

459
00:25:39,359 --> 00:25:43,720
Speaker 1: law shielding gunmakers from liability. The producers of Jeopardy say

460
00:25:43,960 --> 00:25:47,200
Speaker 1: my Umba Alic and Ken Jennings will both continue hosting

461
00:25:47,240 --> 00:25:50,440
Speaker 1: the game show next season. Global News twenty four hours

462
00:25:50,480 --> 00:25:53,760
Speaker 1: a day on air and on Bloomberg Quicktake, powered by

463
00:25:53,840 --> 00:25:56,879
Speaker 1: more than seven hundred journalists and analysts more than a hundred,

464
00:25:56,920 --> 00:26:00,160
Speaker 1: twenty countries. Michael Barron, this is Bloomberg, Nathan, Mike Well,

465
00:26:00,200 --> 00:26:08,440
Speaker 1: thank you on Wall Street, Jo Stashirison, Bloomberg Sports Update,

466
00:26:08,640 --> 00:26:10,560
Speaker 1: RN Nathan, the Mets had to like their chances of

467
00:26:10,640 --> 00:26:13,439
Speaker 1: sweeping the two game Subway series. They won Tuesday. Last night.

468
00:26:13,520 --> 00:26:16,399
Speaker 1: Max Scherzer, pitching on his thirty eighth birthday going against

469
00:26:16,440 --> 00:26:20,040
Speaker 1: Domingo Hermans, was terrific seven scoreless innings, struck out Aaron

470
00:26:20,080 --> 00:26:22,359
Speaker 1: Judge three times, Peter Alonzo homer. The Mets had to

471
00:26:22,520 --> 00:26:25,240
Speaker 1: nothing eighth any when Glaber Torres tied the game of

472
00:26:25,280 --> 00:26:27,480
Speaker 1: the two on homer rock David Peterson, but two new

473
00:26:27,560 --> 00:26:29,960
Speaker 1: members of the Mets combined to win at bartom of

474
00:26:29,960 --> 00:26:33,000
Speaker 1: the night leadoff double by edwardo Escobari scored on a

475
00:26:33,080 --> 00:26:35,840
Speaker 1: game winning hit by Starling Marte. Mets one three two,

476
00:26:35,960 --> 00:26:38,160
Speaker 1: They go up three games on Atlanta. Jacob de Gran

477
00:26:38,240 --> 00:26:41,000
Speaker 1: pitched four innings for Triple Day Syracuse gave up four runs,

478
00:26:41,359 --> 00:26:44,000
Speaker 1: but where is the Groan will make his highly anticipated

479
00:26:44,080 --> 00:26:47,240
Speaker 1: season debut sometime next week. In the series in Washington

480
00:26:47,320 --> 00:26:49,680
Speaker 1: and All, the Yankees made a trade with Kansas City,

481
00:26:49,800 --> 00:26:51,840
Speaker 1: one that had been rumored for a while. The Yanks

482
00:26:51,880 --> 00:26:54,720
Speaker 1: sent three minor league pitchers to the Royals for after

483
00:26:54,840 --> 00:26:57,880
Speaker 1: the Andrew ben Intendee. Here's Judge and his new teammates

484
00:26:58,359 --> 00:26:59,879
Speaker 1: like that, and especially a guy like that he's been

485
00:27:00,160 --> 00:27:02,720
Speaker 1: hidden while over three hundred all year, you know, playing

486
00:27:02,760 --> 00:27:05,400
Speaker 1: great defense and you know being kind of a spark

487
00:27:05,440 --> 00:27:09,080
Speaker 1: plug over there in Kansas City. Um Antony bring him

488
00:27:09,200 --> 00:27:11,359
Speaker 1: into the type of culture we got. It's always a

489
00:27:11,400 --> 00:27:14,080
Speaker 1: plus and kind of a campus center. When Judge was

490
00:27:14,160 --> 00:27:16,600
Speaker 1: rookie year and it hasn't seventeen Ben intendee then with

491
00:27:16,680 --> 00:27:18,800
Speaker 1: the Red Sox in the second he's won to go glove.

492
00:27:18,880 --> 00:27:21,919
Speaker 1: He was just an All Star. He's also unvaccinated, may

493
00:27:21,960 --> 00:27:23,399
Speaker 1: not be able to play when the Yanks go to

494
00:27:23,480 --> 00:27:26,359
Speaker 1: Toronto in September, and they could also be facing the

495
00:27:26,359 --> 00:27:28,960
Speaker 1: Blue Jays in the playoffs. Mike Trout down played a

496
00:27:29,040 --> 00:27:32,160
Speaker 1: quote from the Angels trainer that Trout's back injury could

497
00:27:32,160 --> 00:27:34,360
Speaker 1: affect him for the rest of his career. Trout says

498
00:27:34,400 --> 00:27:37,840
Speaker 1: he expects to return this season. John Stash Allen Bloomberg

499
00:27:37,880 --> 00:27:40,800
Speaker 1: Sports and thanks John seven on Wall Straight Time for

500
00:27:40,840 --> 00:27:44,320
Speaker 1: the Tri State Business Report. Here's Bloomberg's head Cory. Rental

501
00:27:44,440 --> 00:27:48,280
Speaker 1: prices in the Hamptons through sliding. Veteran market forecaster Ed

502
00:27:48,400 --> 00:27:52,399
Speaker 1: Hyman tells Bloomberg it's a sign of declining inflation. Realtors

503
00:27:52,480 --> 00:27:55,640
Speaker 1: in the exclusive Long Island beach communities have talked about

504
00:27:55,680 --> 00:27:59,159
Speaker 1: Reynold prices dropping this summer, and even some sales are

505
00:27:59,200 --> 00:28:02,560
Speaker 1: showing them mark down. It's not getting any easier for renters.

506
00:28:02,920 --> 00:28:06,679
Speaker 1: The Zumper National rent index hit another record. The median

507
00:28:06,760 --> 00:28:10,040
Speaker 1: monthly price for a new listed one bedroom apartment rose

508
00:28:10,080 --> 00:28:13,240
Speaker 1: eleven percent from last year. The four hundred and fifty

509
00:28:13,359 --> 00:28:16,560
Speaker 1: dollars New York City top the list, is the most

510
00:28:16,640 --> 00:28:20,320
Speaker 1: expensive market at thirty seven hundred and eighty dollars a month.

511
00:28:20,840 --> 00:28:23,440
Speaker 1: In New York City, demand for office space took a fall.

512
00:28:23,640 --> 00:28:26,600
Speaker 1: It reversed nearly all growth seen over the past four

513
00:28:26,720 --> 00:28:29,159
Speaker 1: months and ended the second quarter down ten and a

514
00:28:29,200 --> 00:28:32,560
Speaker 1: half percent. Demanded New York City now just above two

515
00:28:32,640 --> 00:28:35,840
Speaker 1: thirds of its pre pandemic normal. It's sixty eight percent

516
00:28:36,560 --> 00:28:40,000
Speaker 1: that your Bloomberg Dry State Business Report. I'm Ed Corey,

517
00:28:40,120 --> 00:28:42,880
Speaker 1: Thanks on Wall Street. Bloomberg Radio is on the air

518
00:28:42,960 --> 00:28:45,400
Speaker 1: from San Francisco to New York, London to Hong Kong.

519
00:28:45,480 --> 00:28:47,200
Speaker 1: Let's check in with our global news team for some

520
00:28:47,280 --> 00:28:49,480
Speaker 1: of the top stories here in our three hundred affiliate

521
00:28:49,600 --> 00:28:55,160
Speaker 1: radio stations around the world. I'm Steve podas Kind on

522
00:28:55,320 --> 00:28:57,640
Speaker 1: tench Head Wins in New York We're talking about how

523
00:28:57,680 --> 00:29:00,320
Speaker 1: the red hot real estate market may be cooling down,

524
00:29:00,640 --> 00:29:03,760
Speaker 1: even in the Hamptons on Corney Tanahoe on w h

525
00:29:04,040 --> 00:29:07,200
Speaker 1: S and Louisville toward CEO Jim Farley tells analyst the

526
00:29:07,280 --> 00:29:10,280
Speaker 1: company has too many people. I'm Joan Donnager telling w

527
00:29:10,520 --> 00:29:13,360
Speaker 1: C CEO listeners in Minneapolis St. Paul a judge is

528
00:29:13,520 --> 00:29:17,600
Speaker 1: questioning three MS bankruptcy moved to settle ear Plug lawsuits.

529
00:29:17,920 --> 00:29:20,680
Speaker 1: I'm Stephen Carl and Bloomberg d a B Digital Radio

530
00:29:20,760 --> 00:29:23,800
Speaker 1: in London. We've been reporting on oil giants Shalon's Hotel

531
00:29:23,840 --> 00:29:27,520
Speaker 1: announcing further share by box as higher oil prices boost profits.

532
00:29:27,960 --> 00:29:31,080
Speaker 1: I made Corey on w w J in Detroit time

533
00:29:31,120 --> 00:29:35,040
Speaker 1: reporting Ford second quarter earnings beat Walt's green estimates. And

534
00:29:35,200 --> 00:29:37,600
Speaker 1: those are some of the stories our twenty seven hundred

535
00:29:37,600 --> 00:29:40,200
Speaker 1: Bloomberg journalists and analyst are working on this morning around

536
00:29:40,240 --> 00:29:42,800
Speaker 1: the world. It's five thirty nine on Wall Street. The

537
00:29:42,920 --> 00:29:47,200
Speaker 1: following is an editorial from Bloomberg Opinion. This editorial was

538
00:29:47,320 --> 00:29:51,320
Speaker 1: written by the Bloomberg Editorial Board. In close to four

539
00:29:51,480 --> 00:29:55,840
Speaker 1: years in office, Brazilian President Jayer Balsonaro has done little

540
00:29:55,920 --> 00:30:00,400
Speaker 1: to instill faith in his commitment to democracy. He's claimed

541
00:30:00,480 --> 00:30:03,479
Speaker 1: only God could remove him from office, chipped away at

542
00:30:03,600 --> 00:30:09,080
Speaker 1: checks and balances, and repeatedly questioned Brazil's well established voting system.

543
00:30:09,280 --> 00:30:12,600
Speaker 1: Whether such bluster could translate into a concerted effort to

544
00:30:12,680 --> 00:30:17,160
Speaker 1: reject an unfavorable outcome in October's presidential election remains to

545
00:30:17,240 --> 00:30:20,959
Speaker 1: be seen, but the mere possibility of an electoral crisis

546
00:30:21,080 --> 00:30:24,520
Speaker 1: in Latin America's biggest country is one that corporate leaders

547
00:30:24,600 --> 00:30:28,720
Speaker 1: should use their clout to prevent. Business coalitions and lobby

548
00:30:28,760 --> 00:30:32,280
Speaker 1: groups can make clear the lasting economic harm that would

549
00:30:32,320 --> 00:30:36,880
Speaker 1: be caused by any violations of basic democratic rules. Some

550
00:30:37,160 --> 00:30:41,120
Speaker 1: have already signed an open letter in defense of democracy.

551
00:30:41,760 --> 00:30:45,120
Speaker 1: That makes sense, after all, companies would have nothing to

552
00:30:45,240 --> 00:30:50,040
Speaker 1: gain from the unraveling of the world's fourth largest democracy.

553
00:30:50,320 --> 00:30:53,800
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For

554
00:30:53,920 --> 00:30:56,959
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash

555
00:30:57,040 --> 00:31:00,719
Speaker 1: opinion or opie I n go on the blue Bird terminal.

556
00:31:01,040 --> 00:31:05,240
Speaker 1: This has been Bloomberg Opinion. Listen for Bloomberg opinion editorials

557
00:31:05,280 --> 00:31:08,080
Speaker 1: every weekday at this time. Terminal customers can read more

558
00:31:08,640 --> 00:31:12,520
Speaker 1: at O P I n go SMP Futures down fifteen points, down,

559
00:31:12,560 --> 00:31:16,160
Speaker 1: futures down fifty two, Nasdaq futures lower by one hundred

560
00:31:16,240 --> 00:31:23,360
Speaker 1: twelve points. You're listening to Bloomberg Daybreak Bloomberg eleven three

561
00:31:23,400 --> 00:31:25,440
Speaker 1: oh weather some passing showers and storms today with a

562
00:31:25,480 --> 00:31:28,520
Speaker 1: high near ninety degrees. Afternoon showers and storms possible tomorrow

563
00:31:28,680 --> 00:31:31,280
Speaker 1: higher once again, We'll have a mix of sun and

564
00:31:31,320 --> 00:31:37,760
Speaker 1: cloud Saturday. Right now seventy four in Central Park markets,

565
00:31:37,880 --> 00:31:40,920
Speaker 1: headlines and breaking news twenty four hours a day at

566
00:31:40,960 --> 00:31:44,960
Speaker 1: Bloomberg dot Com, Blo Bloomberg Business Atland at Bloomberg Quick Tape,

567
00:31:45,520 --> 00:31:54,360
Speaker 1: He's a Bloomberg Business Flash and I'm Karen Moscow. A

568
00:31:54,440 --> 00:31:57,160
Speaker 1: dip in u S dock Index Future suggesting the US

569
00:31:57,280 --> 00:32:00,160
Speaker 1: rally could stall when Wall Street reopens, with technolog G

570
00:32:00,320 --> 00:32:02,560
Speaker 1: stock set to pull back after their biggest jumps in

571
00:32:02,640 --> 00:32:06,520
Speaker 1: November twenty. Big check will be a particular focus today

572
00:32:06,600 --> 00:32:09,840
Speaker 1: with results from Amazon dot Com, Apple and Intel. We

573
00:32:09,960 --> 00:32:12,280
Speaker 1: checked the markets every fifteen minutes throughout the trading day

574
00:32:12,360 --> 00:32:15,520
Speaker 1: on Bloomberg S and P Future is down about fourteen points,

575
00:32:15,600 --> 00:32:18,560
Speaker 1: Dow futures down forty five, and NASTAGG futures done a

576
00:32:18,640 --> 00:32:21,480
Speaker 1: hundred and four. That's down eight tenths of uppercent. The

577
00:32:21,600 --> 00:32:24,360
Speaker 1: decks in Germany is down almost two tenths of upper cent.

578
00:32:24,400 --> 00:32:26,760
Speaker 1: The ten year treasury little change yield two point seven

579
00:32:26,840 --> 00:32:29,280
Speaker 1: eight percent yield on the two year two point nine

580
00:32:29,360 --> 00:32:32,600
Speaker 1: seven percent. Nine max screwed oil is of one percent

581
00:32:32,680 --> 00:32:34,920
Speaker 1: of a dollar eighty at ninety nine dollars seven cents

582
00:32:34,960 --> 00:32:37,480
Speaker 1: of barrel comics gold is a pointed a third percent,

583
00:32:37,600 --> 00:32:40,680
Speaker 1: or twenty three dollars at seventeen sixty fifty announced. The

584
00:32:40,800 --> 00:32:43,520
Speaker 1: euro one point one eight zero against the dollar, British

585
00:32:43,520 --> 00:32:45,960
Speaker 1: found one point one eight and the En one thirty

586
00:32:46,040 --> 00:32:49,440
Speaker 1: five point three five and bitcoin this morning it's higher,

587
00:32:49,520 --> 00:32:52,000
Speaker 1: up seven ten percent at twenty two thousand, nine hundred

588
00:32:52,080 --> 00:32:55,080
Speaker 1: fifty dollars. That's a Bloomberg business flash. Now here's Michael

589
00:32:55,120 --> 00:32:57,200
Speaker 1: Barr with more on what's going on around the world.

590
00:32:57,360 --> 00:33:00,760
Speaker 1: Michael Karen, thank you very much. Russia says agreement has

591
00:33:00,800 --> 00:33:03,520
Speaker 1: been reached yet on the prisoners swap with the US

592
00:33:03,920 --> 00:33:07,640
Speaker 1: Secretary of State Anthony Lincoln says that they will offer

593
00:33:07,720 --> 00:33:10,040
Speaker 1: a way to bring w n B, a star Britney

594
00:33:10,080 --> 00:33:13,400
Speaker 1: grinder and former US Marine Paul Wheeland out of Russian

595
00:33:13,480 --> 00:33:16,480
Speaker 1: detention back to the US. A person familiar with the

596
00:33:16,520 --> 00:33:20,640
Speaker 1: potential swaps says the US is proposing trading infamous Russian

597
00:33:20,840 --> 00:33:24,960
Speaker 1: arms dealer Victor Boot. Russian forces have launched massive missile

598
00:33:25,040 --> 00:33:29,040
Speaker 1: strikes on regions near Kiev. Meanwhile, Ukrainian officials announced in

599
00:33:29,120 --> 00:33:32,320
Speaker 1: operation to liberate and occupied region in the country South.

600
00:33:32,720 --> 00:33:35,840
Speaker 1: In baseball, the Mets beat the Yankees three to the

601
00:33:36,000 --> 00:33:40,520
Speaker 1: Red Sox, Nationals and Orioles all lost. The A's beat

602
00:33:40,560 --> 00:33:44,280
Speaker 1: the Astros four to the Diamondbacks beat the Giants. Global

603
00:33:44,320 --> 00:33:46,440
Speaker 1: News twenty four hours a day on air and on

604
00:33:46,520 --> 00:33:49,920
Speaker 1: Bloomberg Quicktake, powered by more than twenty seven hundred journalists

605
00:33:49,920 --> 00:33:52,400
Speaker 1: and analysts more than a hundred twenty countries. Michael Barr

606
00:33:52,440 --> 00:33:55,160
Speaker 1: and this is Bloomberg. Nathan all right, Michael, thank you.

607
00:33:55,280 --> 00:33:58,000
Speaker 1: It is five nine on Wall Street Life from the

608
00:33:58,000 --> 00:34:02,360
Speaker 1: Bloomberg Interacted Broker Studios. Is Bloomberg Daybreak with a focus

609
00:34:02,480 --> 00:34:05,480
Speaker 1: on big tech earnings this morning, especially if you look

610
00:34:05,520 --> 00:34:09,400
Speaker 1: at the futures, tech is leading the declines and shares

611
00:34:09,560 --> 00:34:13,400
Speaker 1: of Facebook parent meta platforms right now are down nearly

612
00:34:13,640 --> 00:34:17,440
Speaker 1: six percent, adding to yesterday's losses after the social giant

613
00:34:17,800 --> 00:34:21,160
Speaker 1: reported its first ever sales decline let's bring in Angelo

614
00:34:21,280 --> 00:34:23,680
Speaker 1: Zeno for more on these earning Senior industry analyst at

615
00:34:23,719 --> 00:34:26,840
Speaker 1: CFR A Angelo, good to speak with you this morning.

616
00:34:27,000 --> 00:34:30,040
Speaker 1: Of course, what used to be known as Facebook doesn't

617
00:34:30,120 --> 00:34:33,000
Speaker 1: want to be known as just a social media company.

618
00:34:33,320 --> 00:34:35,520
Speaker 1: Is that part of the story here why we got

619
00:34:35,640 --> 00:34:40,520
Speaker 1: these disappointing results? Well, you know, I think listen as

620
00:34:40,560 --> 00:34:44,000
Speaker 1: far as Meta's concerned me, UM, you know, this was

621
00:34:44,040 --> 00:34:47,080
Speaker 1: a company that just it just looks like it's kind

622
00:34:47,120 --> 00:34:49,200
Speaker 1: of lost in its way in many respects. I mean,

623
00:34:49,239 --> 00:34:53,000
Speaker 1: you've got a company that's that that essentially is now

624
00:34:53,320 --> 00:34:56,920
Speaker 1: it's just sorts. First quarter of revenue declines. Ever UM

625
00:34:57,280 --> 00:35:00,960
Speaker 1: September quarter guidance essentially applies about six percent year of

626
00:35:01,000 --> 00:35:03,759
Speaker 1: a year decline. So UM this is a company that

627
00:35:03,840 --> 00:35:05,399
Speaker 1: we think over the next kind of two or three

628
00:35:05,480 --> 00:35:09,560
Speaker 1: years at best see low to know UM growth on

629
00:35:09,640 --> 00:35:11,560
Speaker 1: a year of a year basis. And when you kind

630
00:35:11,600 --> 00:35:14,640
Speaker 1: of combine that with some of the significant capital investments

631
00:35:14,719 --> 00:35:17,880
Speaker 1: that have to make to try to transition that business

632
00:35:17,960 --> 00:35:21,600
Speaker 1: around UM, it's just it's just a very tough path

633
00:35:21,719 --> 00:35:24,440
Speaker 1: here for investors to really be patient on UM. And

634
00:35:24,560 --> 00:35:26,600
Speaker 1: for that reason, we continue to stand a sideline as

635
00:35:26,640 --> 00:35:29,600
Speaker 1: far as men is concerned. You say the company is

636
00:35:29,960 --> 00:35:33,080
Speaker 1: looking for direction here. You could sort of break that

637
00:35:33,320 --> 00:35:36,080
Speaker 1: down into a lot of the changes that we've seen

638
00:35:36,360 --> 00:35:40,760
Speaker 1: on the platforms themselves and focus more on the Facebook stories,

639
00:35:40,840 --> 00:35:45,120
Speaker 1: Instagram reels and of course uh CEO Mark Zuckerberg's ongoing

640
00:35:45,239 --> 00:35:49,760
Speaker 1: push to focus on the netaverse. How is that affecting

641
00:35:49,880 --> 00:35:54,120
Speaker 1: things for this company? Well, you know, as of right now,

642
00:35:54,239 --> 00:35:57,800
Speaker 1: I mean clearly they're having a ton of lingering issues

643
00:35:57,840 --> 00:36:00,880
Speaker 1: that they've got to deal with, whether b Ius privacy changes,

644
00:36:01,040 --> 00:36:04,200
Speaker 1: right which is impacting some of the measuring targeting issues, UM,

645
00:36:04,320 --> 00:36:08,040
Speaker 1: tighter customer budgets because of the macro backdrop right now, Um,

646
00:36:08,080 --> 00:36:10,600
Speaker 1: you've got these four X head winds, and of course

647
00:36:10,680 --> 00:36:14,040
Speaker 1: the increased competitive pressures which is really forcing um, you know,

648
00:36:14,160 --> 00:36:17,319
Speaker 1: Zuckerberg to look for a kind of some other opportunities.

649
00:36:17,360 --> 00:36:20,759
Speaker 1: The real short term Video really is kind of the

650
00:36:21,200 --> 00:36:23,960
Speaker 1: the the biggest opportunity here over the next couple of

651
00:36:24,400 --> 00:36:27,920
Speaker 1: quarters and years, and it is seeing increasing engagement levels.

652
00:36:27,960 --> 00:36:30,880
Speaker 1: It finally crossed one billion dollar revenue run rate, so

653
00:36:31,040 --> 00:36:33,040
Speaker 1: it's still got a long ways to go in terms

654
00:36:33,080 --> 00:36:35,600
Speaker 1: of the transition is concerned, but that's really the answer

655
00:36:35,680 --> 00:36:38,000
Speaker 1: for them in terms of kind of combating some of

656
00:36:38,080 --> 00:36:41,200
Speaker 1: the competitive pressures and some of the recent market share

657
00:36:41,280 --> 00:36:45,279
Speaker 1: loss that they've experienced. Facebook. Sorry, Meta is going to

658
00:36:45,360 --> 00:36:49,240
Speaker 1: be navigating the next few years now without Chief operating

659
00:36:49,320 --> 00:36:53,600
Speaker 1: officer Cheryl Sandberg. Does Mark Zuckerberg have the right team

660
00:36:53,640 --> 00:36:58,360
Speaker 1: in place to move forward here that that remains to

661
00:36:58,440 --> 00:37:00,960
Speaker 1: be seen? To be honest with you, UM, the loss

662
00:37:01,080 --> 00:37:04,680
Speaker 1: of Cheryl Sandberg I think continues to be very underappreciated.

663
00:37:04,760 --> 00:37:08,279
Speaker 1: I think she has just been absolutely instrumental with kind

664
00:37:08,320 --> 00:37:12,239
Speaker 1: of helping really turn Meta into the company that it is.

665
00:37:12,840 --> 00:37:15,480
Speaker 1: Um not to mention, I mean we she's kind of

666
00:37:15,560 --> 00:37:17,880
Speaker 1: been in the face um or it has been the

667
00:37:17,960 --> 00:37:19,759
Speaker 1: face of of Meta as far as a lot of

668
00:37:19,800 --> 00:37:22,759
Speaker 1: the regulatory headwines that have kind of, UM, you been

669
00:37:22,800 --> 00:37:25,320
Speaker 1: out there and things are only going to get tougher

670
00:37:25,400 --> 00:37:27,920
Speaker 1: as far as Meadow is concerned, some of the regulatory

671
00:37:28,000 --> 00:37:31,279
Speaker 1: concerns out there. UM. So the loss of Cheryl um

672
00:37:31,520 --> 00:37:34,839
Speaker 1: is clearly a huge, huge hit for the company, whether

673
00:37:34,920 --> 00:37:36,640
Speaker 1: they have the right team or not. I just think

674
00:37:36,680 --> 00:37:40,480
Speaker 1: it's going to be a much tougher um, a much

675
00:37:40,719 --> 00:37:43,839
Speaker 1: kind of tougher process for them without her, UM than

676
00:37:43,920 --> 00:37:46,320
Speaker 1: with her. I think about a minute left here, Angela.

677
00:37:46,400 --> 00:37:50,400
Speaker 1: We get earnings from Apple and Amazon later for Apple

678
00:37:50,680 --> 00:37:54,920
Speaker 1: of some pretty big headwinds there as well. Right, there's headwinds,

679
00:37:55,000 --> 00:37:57,239
Speaker 1: but there's also a number of tail ones going on.

680
00:37:57,400 --> 00:38:00,360
Speaker 1: So as far as Apple is concerned, Um, you know,

681
00:38:00,440 --> 00:38:02,719
Speaker 1: on the hardware side of things, which is you know

682
00:38:02,840 --> 00:38:05,560
Speaker 1: where um, you know, a lot of the in touching

683
00:38:05,640 --> 00:38:10,000
Speaker 1: goes to obviously, UM, we think that the um, the

684
00:38:10,800 --> 00:38:14,880
Speaker 1: the the June, the late May into June. Um, we

685
00:38:15,000 --> 00:38:18,319
Speaker 1: definitely saw some momentum come in on top in terms

686
00:38:18,360 --> 00:38:20,200
Speaker 1: of the supply side of things, which kind of trickled

687
00:38:20,239 --> 00:38:23,080
Speaker 1: into July. So we think that the guidance that was

688
00:38:23,160 --> 00:38:26,560
Speaker 1: provided back in late April was fairly conservative in nature

689
00:38:26,600 --> 00:38:28,719
Speaker 1: and that and for that reason, we do think that

690
00:38:28,760 --> 00:38:30,520
Speaker 1: they end up seeing a beat here in the June

691
00:38:30,600 --> 00:38:34,239
Speaker 1: quarter and as far as the September quarter guide is concerned, UM,

692
00:38:34,520 --> 00:38:38,680
Speaker 1: I think there's kind of enough um you know, treadway

693
00:38:38,760 --> 00:38:41,040
Speaker 1: here for them to really kind of um you know,

694
00:38:41,400 --> 00:38:44,319
Speaker 1: gain some tractions. Thanks Angela, great having gone with us

695
00:38:44,360 --> 00:38:48,480
Speaker 1: this morning. Angelo Zeno at c f R A Karen, alright,

696
00:38:48,520 --> 00:38:51,840
Speaker 1: thanks Nathan. It is five and fifty three on Wall Street.

697
00:38:51,880 --> 00:38:54,640
Speaker 1: And now another legal story we're watching this morning. It

698
00:38:54,680 --> 00:38:58,240
Speaker 1: has brought to you by American Arbitration Association. Business disputes

699
00:38:58,280 --> 00:39:02,200
Speaker 1: are inevitable, reselves faster with the American Arbitration Association, the

700
00:39:02,280 --> 00:39:05,640
Speaker 1: global leader in alternative dispute resolution for over ninety years.

701
00:39:05,719 --> 00:39:09,480
Speaker 1: More at a dr dot org. What do a former Congressman,

702
00:39:09,560 --> 00:39:12,640
Speaker 1: a Goldman, sax banker, at an FBI trainee have in common?

703
00:39:12,719 --> 00:39:16,600
Speaker 1: They've all been indicted for insider trading. In an unusual move,

704
00:39:16,680 --> 00:39:19,840
Speaker 1: the Manhattan US Attorney unveiled the insider trading charges and

705
00:39:19,960 --> 00:39:23,200
Speaker 1: for unrelated cases at the same press conference. Among the

706
00:39:23,280 --> 00:39:27,560
Speaker 1: nine people indicted were former Indiana Congressman Stephen Buyer, former

707
00:39:27,719 --> 00:39:32,560
Speaker 1: Goldman Vice president Brigesh Goyle, and former FBI trainee Seth Marken.

708
00:39:32,840 --> 00:39:35,600
Speaker 1: From more bloombergs jone Grosso speaks to James Park, a

709
00:39:35,640 --> 00:39:38,239
Speaker 1: professor at u c l A Law School, at the

710
00:39:38,360 --> 00:39:42,160
Speaker 1: press conference. The words that the current Manhattan US attorney

711
00:39:42,320 --> 00:39:46,360
Speaker 1: used were so similar to the words that the former

712
00:39:46,600 --> 00:39:50,560
Speaker 1: Manhattan US Attorney, pret Berrara used about a decade ago

713
00:39:51,160 --> 00:39:56,760
Speaker 1: in announcing a crackdown on insider trading. Basically, be careful,

714
00:39:57,040 --> 00:40:01,120
Speaker 1: we're watching, We're listening. Does that mean that the threat

715
00:40:01,320 --> 00:40:05,680
Speaker 1: the watching didn't work, didn't stop insider trading. It's a

716
00:40:05,760 --> 00:40:10,919
Speaker 1: great point, June, that this misconduct continues, and I think

717
00:40:11,080 --> 00:40:15,520
Speaker 1: that the need for enforcement to happen periodically is very

718
00:40:15,600 --> 00:40:19,520
Speaker 1: important because it's been almost a dec need five six

719
00:40:19,560 --> 00:40:24,160
Speaker 1: seven years. Then we had the last significant wave of

720
00:40:24,280 --> 00:40:28,400
Speaker 1: insider trading enforcement by the U. S. Attorney's Office of

721
00:40:28,440 --> 00:40:31,200
Speaker 1: the Southern District of New York. These sorts of cases

722
00:40:31,200 --> 00:40:33,920
Speaker 1: are part of that office's brand, part of the reason

723
00:40:34,000 --> 00:40:37,600
Speaker 1: why it's such a prominent office. But even with the

724
00:40:37,920 --> 00:40:41,000
Speaker 1: cases that pre Bahara brought, you know, I think the

725
00:40:41,200 --> 00:40:45,960
Speaker 1: fear had dissipated by the time this trading happened, and

726
00:40:46,160 --> 00:40:49,520
Speaker 1: so it's necessary not only to be watching, but to

727
00:40:49,600 --> 00:40:54,120
Speaker 1: be enforcing, to be bringing criminal cases, because when you

728
00:40:54,200 --> 00:40:57,480
Speaker 1: bring criminal cases, that will deter people from trading on

729
00:40:57,600 --> 00:41:01,520
Speaker 1: inside information. But I think the lesser of these events,

730
00:41:01,600 --> 00:41:05,200
Speaker 1: the discovery of this egregious trading at a very respected

731
00:41:05,280 --> 00:41:09,719
Speaker 1: investment bank with strong compliance. I think that a reminder

732
00:41:09,920 --> 00:41:12,360
Speaker 1: that it's not enough to watch, you also have to

733
00:41:12,600 --> 00:41:16,960
Speaker 1: enforce in order to deter insider trading. Prosecutors say the

734
00:41:17,080 --> 00:41:21,120
Speaker 1: banker used coded text messages having to do with playing

735
00:41:21,239 --> 00:41:25,640
Speaker 1: squash with his friend the tippy, and that indicates knowledge

736
00:41:25,840 --> 00:41:29,480
Speaker 1: that what he was doing was wrong. Absolutely. You know,

737
00:41:29,600 --> 00:41:34,640
Speaker 1: that really speaks to the maturity of insider trading law.

738
00:41:34,840 --> 00:41:39,040
Speaker 1: It's often criticized as being vague and difficult to apply,

739
00:41:39,400 --> 00:41:41,920
Speaker 1: but you know, at its poor essence, I think the

740
00:41:42,080 --> 00:41:45,120
Speaker 1: law is fairly clear, and they knew that what they

741
00:41:45,160 --> 00:41:49,120
Speaker 1: were doing was insider training and that they could be

742
00:41:49,280 --> 00:41:53,040
Speaker 1: prosecuted criminally. Yet they took this risk. You know, they

743
00:41:53,120 --> 00:41:56,239
Speaker 1: may not have understood some of the other ways that

744
00:41:56,440 --> 00:41:59,600
Speaker 1: sort of trading can be detected. You know, the SEC

745
00:42:00,040 --> 00:42:02,480
Speaker 1: to play an important role here because they were the

746
00:42:02,560 --> 00:42:07,680
Speaker 1: ones who first detected the unusual trading activity. Because they

747
00:42:07,719 --> 00:42:12,680
Speaker 1: do monitor trading in stock to look for various suspicious

748
00:42:13,040 --> 00:42:16,840
Speaker 1: trading rights before the announcement of a merger, for example,

749
00:42:16,960 --> 00:42:20,239
Speaker 1: they might refer it to the U S attorneys and

750
00:42:20,320 --> 00:42:22,760
Speaker 1: as James Parker, professor at u c l A Law School,

751
00:42:22,760 --> 00:42:24,759
Speaker 1: speaking at the Bloomberg jo in grass So catch more

752
00:42:24,800 --> 00:42:27,359
Speaker 1: of that interview, plus analysis of the latest legal news,

753
00:42:27,480 --> 00:42:30,440
Speaker 1: by subscribing to the Bloomberg Law Podcast or downloading this

754
00:42:30,520 --> 00:42:33,759
Speaker 1: show at Bloomberg dot com. Slash Podcast Attorneys can find

755
00:42:33,800 --> 00:42:37,000
Speaker 1: exceptional legal research and business development tools at Bloomberg law

756
00:42:37,080 --> 00:42:40,480
Speaker 1: dot com and on the Bloomberg terminal at b law Go,

757
00:42:41,400 --> 00:42:43,440
Speaker 1: and still ahead of Bloomberg day break, can check on

758
00:42:43,520 --> 00:42:45,400
Speaker 1: the business headlines and all the news you need to

759
00:42:45,480 --> 00:42:47,680
Speaker 1: start her day. This is Bloomberg