WEBVTT - Bloomberg Daybreak: June 28, 2022 - Hour 2 (Radio) 0:00:03.240 --> 0:00:06.439 Live from the Bloomberg Get directed Berger Studios is Bloomberg 0:00:06.519 --> 0:00:10.240 day Break for Tuesday, June two. Coming up this hour. 0:00:10.600 --> 0:00:14.560 Stocks get a lift after China eases it's strict COVID protocols. 0:00:14.800 --> 0:00:18.360 Banks boosted dividend payouts after acing the FED stress tests. 0:00:18.600 --> 0:00:22.200 ECB president Christine Legarde says rates are going higher, and 0:00:22.239 --> 0:00:25.880 the January six committee as a surprise hearing later Today. 0:00:25.920 --> 0:00:28.920 It's primary day in New York and six other states, 0:00:28.920 --> 0:00:31.960 plus it is sentencing day for Gilaine Maxwell in the 0:00:32.040 --> 0:00:35.640 Jeffrey Epstein sexual abuse case. I'm Michael barn More Ahead, 0:00:36.000 --> 0:00:39.239 I'm John Stash Sharon sports another comeback win by the Yankees, 0:00:39.280 --> 0:00:44.680 and Kyrie Irving is opting in with the net. That's 0:00:44.680 --> 0:00:48.599 All's training ahead on Bloomberg Daybreak on Bloomberg Eliven Free 0:00:48.640 --> 0:00:53.080 on New York, Bloomberg on Washington, d C, Bloomberg one 0:00:53.080 --> 0:00:57.600 oh six one, Boston, Bloomberg nine sixties and Francisco Sirius 0:00:57.760 --> 0:01:01.160 XM one nineteen and around the world on Bloomberg Radio 0:01:01.240 --> 0:01:07.960 dot Com and via The Bloomberg Business and Good Morning. 0:01:07.959 --> 0:01:11.080 I'm Perrod Moscow. I'm Nathan Hagar. Bloomberg Daybreak is brought 0:01:11.080 --> 0:01:13.720 to you by Informattica in the cloud. Your data has 0:01:13.760 --> 0:01:16.240 the power to do the extraordinary. Managed data across any 0:01:16.240 --> 0:01:19.160 location in the cloud for accurate and actionable insights. More 0:01:19.319 --> 0:01:22.880 at informattica dot com and US future is higher this 0:01:22.959 --> 0:01:24.760 morning six so one On Wall Street. We check the 0:01:24.760 --> 0:01:27.640 markets every fifteen minutes throughout the trading day. On bloomberg 0:01:27.760 --> 0:01:30.320 S and P futures of eighteen points down futures have 0:01:30.360 --> 0:01:32.680 a hundred sixty four and as day futures of forty 0:01:32.800 --> 0:01:35.280 seven and the ten year treasury down eight thirty seconds. 0:01:35.280 --> 0:01:37.839 You have three point to three percent Nathan Well Karen. 0:01:37.880 --> 0:01:40.800 The lifting stocks comes after a major shift to China's 0:01:40.840 --> 0:01:44.800 COVID nineteen policy. China's cutting the quarantine period to ten 0:01:44.880 --> 0:01:48.040 days from up to three weeks for inbound visitors. We 0:01:48.080 --> 0:01:50.560 get more from Bloomberg's John Lou in Beijing, but the 0:01:50.640 --> 0:01:55.440 significance is the amount of cross border travel. The amount 0:01:55.480 --> 0:01:58.480 of business people coming in and out have been great 0:01:58.560 --> 0:02:02.440 really reduced since the pandemic largely because of that twenty 0:02:02.480 --> 0:02:05.600 one days of quarantine people would potentially have to do 0:02:05.640 --> 0:02:09.079 when they come in. This is a substantial reduction, at 0:02:09.480 --> 0:02:12.000 half of what it used to be Not only is 0:02:12.000 --> 0:02:15.079 it for travelers, it's also for people who come into 0:02:15.160 --> 0:02:19.480 close contact with a with an infective person. Bloomberg's John 0:02:19.560 --> 0:02:23.000 lu says Asia's equities erased losses to climb for a 0:02:23.040 --> 0:02:26.840 fourth session, and tourism related stocks led the games well. Nathan. 0:02:26.919 --> 0:02:30.120 US futures are also getting a boost on China easing 0:02:30.160 --> 0:02:33.880 COVID restrictions. Yesterday, stock started the week on a losing note, 0:02:34.240 --> 0:02:37.160 but Aaron Kennon, chief executive officer at Clear Harbor as 0:02:37.200 --> 0:02:41.320 said management says there are some optimistic signs for investors. 0:02:41.360 --> 0:02:43.400 We are seeing some light at the end of the tunnel. 0:02:43.440 --> 0:02:45.880 And I know it may not be in vogue to 0:02:46.000 --> 0:02:50.400 suggest this, but um inflation metrics such as you know, 0:02:50.440 --> 0:02:54.440 for example, copper down, nickel off. I was looking at 0:02:54.760 --> 0:02:57.639 shipping rates. They're down dramatically over the last couple of months, 0:02:57.680 --> 0:03:03.040 aluminums off iron or we you know, even even oils 0:03:03.080 --> 0:03:06.560 off double digits right now. Clear Harbor Asset Management CEO 0:03:06.680 --> 0:03:10.000 er and Kennon still recommends investors be cautious. Yeah, so 0:03:10.040 --> 0:03:13.000 does Goldman Sachs Care and that firm strategists say US 0:03:13.080 --> 0:03:15.880 profit margin estimates are too optimistic and that will put 0:03:15.919 --> 0:03:18.720 stocks at risk of more declines when Wall Street analysts 0:03:18.720 --> 0:03:23.640 downgrade expectations. Goldman expects aggregate margins for SMP companies to 0:03:23.639 --> 0:03:27.680 remain flat in three even if the economy does not contract. 0:03:27.960 --> 0:03:30.160 They say the risk is lower for the ten biggest 0:03:30.200 --> 0:03:33.639 companies on the index, which account for nineteen of its earnings. 0:03:34.040 --> 0:03:36.640 Well Nathan Bank stocks are higher in early trading. They 0:03:36.640 --> 0:03:40.840 boosted dividends following success in passing bank stress tests. Beget 0:03:40.920 --> 0:03:44.040 more from Bloomberg's Turley Pillett. Bank of America announced a 0:03:44.160 --> 0:03:48.040 dividend increase, while Morgan Stanley boosted it's payout while saying 0:03:48.040 --> 0:03:51.880 it will repurchase as much as twenty billion of stock. 0:03:52.240 --> 0:03:56.040 Morgan Stanley boosted its quarterly dividend to seventy seven point 0:03:56.080 --> 0:03:59.440 five cents a share from seventy cents. Bank of America's 0:03:59.440 --> 0:04:03.440 payout limes to two cents from twenty one cents. State 0:04:03.520 --> 0:04:08.720 Street Corps and Truest Financial also announced dividend increases in 0:04:08.840 --> 0:04:12.280 New York. Charlie pea Bloomberg Daybreak. All right, Charlie, thank 0:04:12.280 --> 0:04:14.800 you for watching shares of Nike this morning. They're down 0:04:14.800 --> 0:04:17.720 two and a half percent in early training Bloomberg's Doug 0:04:17.760 --> 0:04:20.839 Prisner reports the company offered a downbeat full year forecast 0:04:21.200 --> 0:04:23.800 the sports where company said gross marchin will be flat 0:04:23.800 --> 0:04:26.960 to down fifty basis points and revenue is expected to 0:04:26.960 --> 0:04:29.360 grow this fiscal year by one percent in the low 0:04:29.440 --> 0:04:32.880 double digits. Nike is also being cautious on China. In 0:04:32.920 --> 0:04:35.760 the last quarter, sales in the Greater China region fell 0:04:36.560 --> 0:04:39.880 at constant currencies. Nike still views China as a long 0:04:40.000 --> 0:04:42.760 term growth market and the company will continue to invest 0:04:42.839 --> 0:04:46.440 in the region even with that China weakness. Overall revenue 0:04:46.480 --> 0:04:49.440 for the last quarter beat estimates, and Nike's board authorized 0:04:49.480 --> 0:04:52.960 a new eighteen billion dollar stock buyback program. In New York, 0:04:52.960 --> 0:04:55.400 I'm Doug Krisner, Bloomberg Daybreak. All right, Doug, thank you. 0:04:55.400 --> 0:04:58.359 We now turn overseas for the European Central Banks Annual 0:04:58.440 --> 0:05:01.960 Forum and Centrums underway and her keynotes speech earlier this morning, 0:05:01.960 --> 0:05:04.960 ECB President Christine the Guards said raids are going higher 0:05:05.040 --> 0:05:08.920 to combat inflation. In July, we intend to raise our 0:05:08.960 --> 0:05:13.920 policy rates for the first time in eleven years, and 0:05:13.960 --> 0:05:18.040 we have provided some guidance for our September policy meeting 0:05:18.760 --> 0:05:23.320 and the rate path that we envisage. Thereafter, ECB President 0:05:23.400 --> 0:05:25.760 Christine and the Guard's signal the July rate high will 0:05:25.800 --> 0:05:28.240 be a quarter of a point of This morning, Karen, 0:05:28.279 --> 0:05:30.640 President Biden's headed to Madrid for the start of the 0:05:30.680 --> 0:05:33.279 three day NATO summit. The White House says he spoke 0:05:33.279 --> 0:05:36.240 with Turkeys president on the way. Biden's leaving a G 0:05:36.400 --> 0:05:39.680 seven meeting in Germany, where leaders accused Russia of war 0:05:39.760 --> 0:05:44.120 crimes for attacking a Ukrainian shopping mall. Ukraine's President vladimir's 0:05:44.200 --> 0:05:49.760 Lensky also condemned the attack. Only terrorists who have no 0:05:49.920 --> 0:05:53.000 place on Earth could strike on such a location. This 0:05:53.080 --> 0:05:56.120 is not a mistaken missile strike. It is a calculated 0:05:56.320 --> 0:06:00.120 Russian strike on the shopping center. President's Lensky address the 0:06:00.160 --> 0:06:02.599 summit through an interpreter. The G seven wrapped up with 0:06:02.640 --> 0:06:05.640 an urgent call for ministers to explore a price cap 0:06:05.680 --> 0:06:08.400 on Russian oil and gas. Well back here at home, Nathan, 0:06:08.440 --> 0:06:11.839 the January six Committee has quickly added an additional hearing. 0:06:11.920 --> 0:06:14.520 It's scheduled for today. A Bloomberg said, Baxter has the 0:06:14.560 --> 0:06:17.479 story a bit of a surprise. The committee's signal last 0:06:17.520 --> 0:06:20.599 week though that it had obtained new information and it 0:06:20.680 --> 0:06:23.400 obviously thinks it is important enough to change the schedule 0:06:23.480 --> 0:06:26.800 like this. Sources say it will center on information from 0:06:26.839 --> 0:06:30.840 documentary filmmaker Alex Holder about footage he has of Donald 0:06:30.920 --> 0:06:34.080 Trump after the election and leading up to the assault 0:06:34.080 --> 0:06:37.600 on the capitol by his supporters. It also has interviews 0:06:37.600 --> 0:06:41.359 with family members including Ivanka Trump, Jared Kushner, and Eric Trump. 0:06:41.600 --> 0:06:45.320 Holder also says it has never before seen footage of 0:06:45.360 --> 0:06:49.200 the insurrection attempt at the capitol in San Francisco. I'm 0:06:49.240 --> 0:06:52.159 at Baxter Bloomberg daybreak, al right, and thank you. SMP 0:06:52.240 --> 0:06:55.200 futures right now up eighteen points. Now futures are hired 0:06:55.200 --> 0:06:57.520 by a hundred sixty three points, NASTAC futures on the 0:06:57.600 --> 0:07:00.839 rise by forty seven points. The tenure treasury is down 0:07:00.880 --> 0:07:03.480 eight thirty seconds. The three point to three percent yeld 0:07:03.520 --> 0:07:06.200 on the two year three point one two Nimex cruds 0:07:06.279 --> 0:07:08.200 up one and a half percent, up a dollar sixty 0:07:08.240 --> 0:07:11.320 six and a hundred eleven dollars cents in barrel, and 0:07:11.400 --> 0:07:13.400 right now the euro is at one point zero five 0:07:13.480 --> 0:07:15.840 eight eight against the dollars. Straight ahead your latest local 0:07:15.880 --> 0:07:23.200 headlines in the check of sports. This is Bloomberg six 0:07:23.240 --> 0:07:26.000 oh seven on Wall Street sixty six degrees in Central Park. 0:07:26.080 --> 0:07:28.840 Heads up, if you take the Sawmill there's a downtree 0:07:28.880 --> 0:07:32.120 northbound Green Lane in Bedford. Details coming up in Traffic 0:07:32.120 --> 0:07:33.920 First Michael Barr with more on what's going on in 0:07:33.960 --> 0:07:36.720 New York and around the world. Michael, thank you very much, Nathan. 0:07:36.800 --> 0:07:39.920 Seven states, including New York, are set to host primary 0:07:39.960 --> 0:07:43.560 elections today, the first election since last week's Supreme Court 0:07:43.640 --> 0:07:47.680 ruling eliminating the constitutional right to an abortion. For the Democrats, 0:07:47.720 --> 0:07:50.920 New York Governor Caffey Hoco faces Tom Swase and Jamanni 0:07:50.960 --> 0:07:56.760 Williams for the gubernatorial nomination. Rob Astino Andrew Giuliani, Harry Wilson, 0:07:57.000 --> 0:07:59.720 and Lee Zelden, who has been endorsed by former Vice 0:07:59.720 --> 0:08:03.120 pres and A Mike Pence running for the GOP nomination 0:08:03.200 --> 0:08:06.160 for governor. A judge has blocked New York City from 0:08:06.240 --> 0:08:09.680 letting non citizens vote for mayor and other municipal offices. 0:08:10.040 --> 0:08:14.160 Republicans challenged the measure as unconstitutional, and the Staten Island 0:08:14.240 --> 0:08:17.560 judge agreed with the GOP and the ruling. The laws 0:08:17.720 --> 0:08:21.200 supporters said it gave an electoral voice to many people 0:08:21.480 --> 0:08:24.680 who have made a home in the city and pay taxes, 0:08:24.960 --> 0:08:28.520 but faced tough paths to citizenship. It is the latest 0:08:28.560 --> 0:08:31.600 tragedy to claim the lives of migrants smuggled across the 0:08:31.640 --> 0:08:35.120 border from Mexico to the US forties. Six people are 0:08:35.160 --> 0:08:38.480 dead after being abandoned an attractor trailer on a remote 0:08:38.480 --> 0:08:42.800 back road in San Antonio. Sixteen people were hospitalized, including 0:08:42.840 --> 0:08:49.280 four children. San Antonio Police Chief Bill mcmanas, who heard 0:08:49.280 --> 0:08:55.080 a cry for help, came out to investigate, found a 0:08:55.360 --> 0:08:58.840 trailer with the doors partially opened, open them up to 0:08:58.840 --> 0:09:03.240 take a look and found the number of um the 0:09:03.280 --> 0:09:07.520 ceased individuals inside. Chief McManus says three people have been arrested. 0:09:07.800 --> 0:09:10.480 At least three people are dead after an Amtrak train 0:09:10.600 --> 0:09:14.120 hit a dump truck in rural Missouri and derailed. This 0:09:14.160 --> 0:09:16.920 man was a passenger on board. Seats were coming apart, 0:09:17.360 --> 0:09:23.400 bags were going everywhere, um and then after it stopped, 0:09:23.840 --> 0:09:27.800 you can smell the fumes until people started panicking thinking 0:09:27.800 --> 0:09:29.760 it was gonna catch fire. So we try to get 0:09:29.760 --> 0:09:32.640 out as quick as possible. Federal investigators will be on 0:09:32.640 --> 0:09:35.800 the scene today. Delane Maxwell will be sentenced today in 0:09:35.800 --> 0:09:39.720 New York for helping the wealthy financeer Jeffrey Epstein sexually 0:09:39.760 --> 0:09:43.439 abused underage girls. Maxwell's lawyers have asked the judge to 0:09:43.520 --> 0:09:46.640 sentence there to no more than five years, while prosecutors 0:09:46.640 --> 0:09:50.040 say she deserves at least thirty years. Behind bars. Global 0:09:50.040 --> 0:09:52.200 News twenty four hours a day on air and on 0:09:52.240 --> 0:09:55.720 Bloomberg Quick Take, powered by more than twenty hundred journalists 0:09:55.720 --> 0:09:58.480 and analysts more than a hundred twenty countries. Michael Barr 0:09:58.520 --> 0:10:01.120 and this is Bloomberg. Nathan. All right, Michael, thank you, 0:10:05.640 --> 0:10:07.360 almost six cent on All Street time for the blue 0:10:07.400 --> 0:10:10.120 Berg Sports Update. Here's John Stashow Banks Nathan. A near 0:10:10.280 --> 0:10:12.680 upset of the Bronx Yankees at the best record baseball 0:10:12.679 --> 0:10:15.080 Oakland A has had the worst, and yet they's got 0:10:15.080 --> 0:10:17.640 the Jordan Montgomery the third and he scored five times, 0:10:17.720 --> 0:10:20.240 led five to one, showing up. The Yanks came back 0:10:20.320 --> 0:10:22.560 a bizarre seventh any when they were helped by two 0:10:23.240 --> 0:10:26.640 catcher's interference calls against the ah Seawan Murphy, Josh Donaldson 0:10:26.720 --> 0:10:29.720 Jose Ravinia, both at two undoubles. Yanks scored the last 0:10:29.800 --> 0:10:31.880 eight runs. They won nine to five, not quite the 0:10:31.880 --> 0:10:35.760 emotion of Sunday's comeback. Whenever Euston with Aaron Boom. Still 0:10:36.160 --> 0:10:39.080 please the good one coming off, you know, obviously at 0:10:39.240 --> 0:10:43.240 high energy, intense series, you know, come out here and 0:10:43.280 --> 0:10:47.280 get a little rain. Early. Um I thought her energy 0:10:47.360 --> 0:10:51.320 was good and uh and obviously a great fit of Nanks. 0:10:51.400 --> 0:10:54.240 Now thirty two and nine at home. The Astros are 0:10:54.240 --> 0:10:56.080 still in New York after that split in the Bronx. 0:10:56.120 --> 0:10:58.959 They visit the Mets tonight. The feeling was things were 0:10:58.960 --> 0:11:01.160 not good between Kybrie, Irving and the Nets, and so 0:11:01.240 --> 0:11:03.560 Irving was gonna pass up the thirty seven million become 0:11:03.559 --> 0:11:06.400 a free agent. Now perhaps there wasn't as much interest 0:11:06.520 --> 0:11:09.040 as he expected. Irving is opting in he could still 0:11:09.080 --> 0:11:12.480 be traded, and that's gm. Shawn Marks hinted wasn't thrilled 0:11:12.480 --> 0:11:15.199 with some of Irvine's ways, and he likes players who 0:11:15.200 --> 0:11:18.600 are available, which Tyree often is not. Opening. They had 0:11:18.640 --> 0:11:21.720 wibbled of that. Venny jf Novak djokovid one in four sets. 0:11:21.720 --> 0:11:25.040 Carlos Alcarez, the nineteen year old Spaniards seated fifth, needed 0:11:25.080 --> 0:11:27.959 five sets, so that John isn't there. American Danielle Collins 0:11:28.000 --> 0:11:30.719 seated seventh. She made us the Australian Open final. She 0:11:30.800 --> 0:11:33.640 lost her first round match. Marlon Brisco has died. He 0:11:33.679 --> 0:11:35.720 was seventy six and nineteen sixty eight. He was the 0:11:35.720 --> 0:11:39.400 starting quarterback for the Denver Broncos, the first African American 0:11:39.440 --> 0:11:43.040 starting QB in pro football history. John Stashun, We're Bloomberg 0:11:43.080 --> 0:11:46.880 Sports all right, John, Thanks SMP features down up seventeen 0:11:46.920 --> 0:11:49.120 points down, features up a hundred fifty three. NAT that 0:11:49.200 --> 0:11:52.160 features are higher by forty three points. The tenure treasury 0:11:52.240 --> 0:11:55.120 is down nine thirty seconds. The yield three point two 0:11:55.160 --> 0:11:57.679 three percent up. Next, the latest from the G seven 0:11:57.679 --> 0:12:00.160 as President Biden now heads to the NATOS. Some at 0:12:00.160 --> 0:12:08.000 Bloomberg's Rosalind Mathieson joins us. Next, This is Bloomberg Bloomberg 0:12:08.000 --> 0:12:09.760 eleven three O weather sunshine and a high and near 0:12:09.800 --> 0:12:13.520 eighty today, mid eighties with Sunday sky Tomorrow sunny and 0:12:13.600 --> 0:12:16.440 hot by Thursday with a high expected near ninety. Right 0:12:16.480 --> 0:12:23.120 now sixty six and cloudy in Central Park markets. Headlines 0:12:23.160 --> 0:12:25.600 and breaking new ones twenty four hours a day at 0:12:25.600 --> 0:12:29.520 Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktap. 0:12:29.800 --> 0:12:39.400 This is a Bloomberg Business lash and I'm Karen Moscow 0:12:39.520 --> 0:12:43.160 stocks are arising after China softened its strict COVID protocols 0:12:43.280 --> 0:12:45.959 us an investor concern about global growth, and we check 0:12:46.040 --> 0:12:48.959 the markets every fifteen minutes throughout the trading day. On Bloomberg, 0:12:49.000 --> 0:12:52.200 futures are higher, with SMP futures up seventeen points down 0:12:52.280 --> 0:12:54.720 futures have a hundred fifty five and NAST day futures 0:12:54.720 --> 0:12:57.520 at forty three. The decks in Germany's up six tenths 0:12:57.559 --> 0:13:00.480 of upper cent and your treasury down ten thirty seconds. 0:13:00.520 --> 0:13:02.640 You three point to three percent, the yield on the 0:13:02.720 --> 0:13:06.120 two year three point one three percent, Nimex screwed oils 0:13:06.120 --> 0:13:08.480 at one point six percent of a dollar seventy seven 0:13:08.480 --> 0:13:10.760 at a hundred eleven dollars thirty three cents, and barrel 0:13:11.000 --> 0:13:14.000 comes gold is little change in eighteen twenty six and 0:13:14.080 --> 0:13:16.760 ounce the euro one point oh five eight nine against 0:13:16.800 --> 0:13:19.080 the dollar, British ground one point to two six five 0:13:19.440 --> 0:13:21.959 and the yen at one thirty five point nine five. 0:13:22.040 --> 0:13:24.720 And look at it bitcoin, it's up half percent at 0:13:24.840 --> 0:13:27.920 twenty one thousand dollars. Today we're watching for reports on 0:13:28.000 --> 0:13:30.480 wholesale inventories at an eight thirty Wall Street time and 0:13:30.559 --> 0:13:33.000 nine we get two reports on home prices and at 0:13:33.000 --> 0:13:36.280 tend consumer confidence. That's a Bloomberg business flash. Now here's 0:13:36.320 --> 0:13:39.240 Michael Barr with more unless going on around the world. Chael, 0:13:39.720 --> 0:13:42.040 thank you very much. Jar In the January six dollars 0:13:42.080 --> 0:13:45.360 panel investigating the US capital ryot is holding a surprise 0:13:45.480 --> 0:13:48.920 during today with a non identified witness. The last minute 0:13:48.920 --> 0:13:52.360 proceedings are being cloaked in secrecy, raising expectations for new 0:13:52.400 --> 0:13:57.480 bombshells in the sweeping investigation. Rescuers are searching through charred 0:13:57.559 --> 0:14:00.120 rubble of a shopping mall for more victims of a 0:14:00.200 --> 0:14:03.440 Russian missile strike that has killed at least eighteen and 0:14:03.440 --> 0:14:06.839 wounded scores of others in a Ukrainian city. The U 0:14:06.960 --> 0:14:10.600 n Security Council scheduled an emergency meeting today to discuss 0:14:10.679 --> 0:14:13.599 the attack. In baseball, the Yankees one along with the 0:14:13.679 --> 0:14:17.200 Nationals and Orioles, the Red Sox lost Global news twenty 0:14:17.200 --> 0:14:19.880 four hours a day on air and on Bloomberg Quick Tank, 0:14:20.120 --> 0:14:23.160 powered by more than journalists and analysts, are more than 0:14:23.160 --> 0:14:27.160 a hundred twenty countries. How Michael Bar, this is Bloomberg, Nathan, Michael. Thanks, 0:14:27.160 --> 0:14:30.119 It's six nineteen on Wall Street Live from the Bloomberg 0:14:30.120 --> 0:14:33.360 Interactive Broker Studios. This is Bloomberg day Break. We want 0:14:33.360 --> 0:14:36.440 to get more now on the summits overseas. President Biden 0:14:36.600 --> 0:14:39.080 is moving on from the G seven in the Bavarian 0:14:39.120 --> 0:14:43.120 Alps to a three day NATO summit in Madrid, as 0:14:43.280 --> 0:14:45.960 both G seven and NATO leaders are focused on the 0:14:46.040 --> 0:14:50.960 short and long term challenges of Russian aggression and arising China. 0:14:51.440 --> 0:14:54.680 Joining us now from Bavaria. Bloomberg News Executive editor for 0:14:54.720 --> 0:14:58.080 International Government Rosalind Matheson. Ros It's great to speak with 0:14:58.120 --> 0:15:00.240 you this morning. Thanks for being with us, Gus. One 0:15:00.240 --> 0:15:01.800 of the biggest developments to come out of the G 0:15:01.960 --> 0:15:06.320 seven is this talk about talking about Russian oil and 0:15:06.400 --> 0:15:09.280 gas price caps. I guess that gets to the challenge, 0:15:09.320 --> 0:15:13.400 particularly in Europe, on how to punish Russia for the 0:15:13.480 --> 0:15:19.640 invasion without hurting the European economy. Well, that's right. So 0:15:19.720 --> 0:15:22.600 we're just getting the details now of the final communicate 0:15:22.760 --> 0:15:25.640 of the leaders as they wrap up their meeting here, 0:15:25.640 --> 0:15:29.240 and as expected, they're they're committing more broadly to the 0:15:29.320 --> 0:15:33.720 idea of a cap on Russian oil prices. As you say, 0:15:33.760 --> 0:15:36.720 the imperative there is to limit the amount of money 0:15:37.240 --> 0:15:40.680 that's going into Vladimir Putin's war coffers because of course, 0:15:41.000 --> 0:15:46.200 with energy prices so high, he's benefiting enormously and that's 0:15:46.200 --> 0:15:50.000 really helping him fund his war machine. So being unable 0:15:50.040 --> 0:15:53.640 to fully stop him selling oil to other countries, at 0:15:53.640 --> 0:15:55.760 the least they can do is try and make sure 0:15:55.760 --> 0:15:57.800 he can't get a good price for it. The equation 0:15:57.920 --> 0:16:00.800 is how do you actually and that's a price caps. 0:16:00.920 --> 0:16:03.760 So what they're they're doing now is simply saying they 0:16:03.760 --> 0:16:06.160 think that there's some possibility here and they need to 0:16:06.200 --> 0:16:08.720 go away and try and figure out exactly how to 0:16:08.800 --> 0:16:11.360 do it. So many steps still to be overcome before 0:16:11.520 --> 0:16:14.280 they actual price cap would be put in place. What's 0:16:14.320 --> 0:16:17.520 the challenge rise for the G seven and NATO to 0:16:18.000 --> 0:16:22.480 confront Russia while putting more of a focus now on 0:16:22.880 --> 0:16:27.280 China and the economic challenge that the world's second biggest 0:16:27.320 --> 0:16:32.120 economy poses. Well, that's right, it's a juggling out to 0:16:32.200 --> 0:16:34.920 these nations. Of course, the US President Joe Biden when 0:16:34.960 --> 0:16:37.880 he came in, made clear that his number one foreign 0:16:37.880 --> 0:16:42.920 policy priority was China and tackling China's expanding economic and 0:16:42.960 --> 0:16:46.000 strategic reach. And then of course came the war in Ukraine. 0:16:46.080 --> 0:16:49.960 Russia's invasion, which kind of abended that and has caused 0:16:50.120 --> 0:16:52.960 him to be distracted from his primary task. That the 0:16:53.000 --> 0:16:56.040 question is, how can you continue to deal with Russia 0:16:56.360 --> 0:16:59.480 while not taking arrive the ball on China and in 0:16:59.520 --> 0:17:02.760 some way the too our interlinked. Of course, China has 0:17:02.840 --> 0:17:06.360 refused to condemn Russia for its actions in Ukraine. It's 0:17:06.359 --> 0:17:10.520 still buying Russian oil, its companies are still trading with 0:17:10.720 --> 0:17:14.040 Russian companies, and President c GM Ping is perhaps not 0:17:14.160 --> 0:17:16.879 leaning on the Russian president as hard as he could 0:17:17.600 --> 0:17:20.920 to curtail his actions in Ukraine, but certainly is very 0:17:20.920 --> 0:17:23.960 difficult the countries like the US to deal with these crises. 0:17:24.000 --> 0:17:28.280 At the same time, meanwhile, China is simply building its 0:17:28.320 --> 0:17:31.639 influence um as every day goes by, but certainly at 0:17:31.680 --> 0:17:34.080 least a statement here of intent to try and refocus 0:17:34.119 --> 0:17:37.640 attention on China. And even before this NATO summit gets 0:17:37.680 --> 0:17:40.800 underway in Madrid, Spain, we've heard a lot of developments 0:17:40.920 --> 0:17:44.280 from the Military Alliance, including word of this new strategic 0:17:44.359 --> 0:17:47.600 posture document that's going to mention China for the first 0:17:47.680 --> 0:17:51.560 time and Secretary General John Stoltenberg saying they're really going 0:17:51.640 --> 0:17:56.199 to increase the rapid response force to confront Russia. What 0:17:56.320 --> 0:18:02.240 further developments are we expecting ras from the NATAI ga ing, Well, 0:18:02.359 --> 0:18:04.679 there are those two things that you've mentioned, but the 0:18:04.720 --> 0:18:09.040 biggest issue on the table arguably for NATO as leaders meet, 0:18:09.080 --> 0:18:11.679 there is a way to try and convince Turkey to 0:18:11.800 --> 0:18:16.440 allow Sweden and Finland to join NATO. Of course, Turkey 0:18:16.520 --> 0:18:20.639 is obstructing that membership application, citing what he says is 0:18:20.680 --> 0:18:24.320 their support for what he calls Kurdish terrorists. And and 0:18:24.440 --> 0:18:27.200 and urdu Wan will be at that meeting. There's a 0:18:27.280 --> 0:18:30.600 possibility he'll even sit down with the US president. That 0:18:30.640 --> 0:18:32.320 would be an effort by the US to try and 0:18:32.400 --> 0:18:36.359 mediate through that and find a way for Turkey to 0:18:36.440 --> 0:18:40.359 agree to unblock that membership right now, though of course 0:18:40.359 --> 0:18:43.120 they're pretty dog in. The question is there's the US 0:18:43.160 --> 0:18:46.160 have to provide Turkey with something in order to get 0:18:46.200 --> 0:18:48.560 them over the lines. That have to sort of talk 0:18:48.640 --> 0:18:54.919 about possibly giving them greater military weapons, perhaps even replacement 0:18:55.000 --> 0:18:58.440 at sixteen fighter jets. Is that a way to convince 0:18:58.560 --> 0:19:01.439 Urdue to show me he has gotten something for what 0:19:01.560 --> 0:19:05.200 really is brinkmanship on the NATO front. But certainly that's 0:19:05.200 --> 0:19:07.920 a key issue on the table. The yeah, and certainly 0:19:08.200 --> 0:19:13.200 underscoring perhaps the importance of the Sweden Finland NATO candidacy. 0:19:13.280 --> 0:19:15.320 We got word from the White House just this morning 0:19:15.560 --> 0:19:19.160 the President Biden spoke with Turkish President ur Nowuan even 0:19:19.160 --> 0:19:22.560 as he makes his way over to that summit in Madrid, Spain. 0:19:22.720 --> 0:19:26.400 Rosalind Matheson, Executive editor for International Government for Bloomberg News, 0:19:26.920 --> 0:19:28.680 thanks for being with us this morning, getting all the 0:19:28.680 --> 0:19:31.159 way us on both these summits now under way, the 0:19:31.240 --> 0:19:34.400 G seven wrapping up in the Bavarian Alps, as the 0:19:34.560 --> 0:19:38.399 NATO leaders get set to meet for three days in Madrid, Spain. 0:19:38.680 --> 0:19:41.199 Looking ahead to the market open on Wall Street, futures 0:19:41.200 --> 0:19:43.920 are moving higher. We have SMP futures up nineteen points 0:19:44.000 --> 0:19:46.119 right now, DAL futures up a hundred seventy three and 0:19:46.240 --> 0:19:50.720 NASTAC futures higher by fifty two points. Looking at bonds, 0:19:50.800 --> 0:19:53.640 the tenure is down nine thirty seconds, the yield three 0:19:53.680 --> 0:19:56.040 point to three percent, and the yield on the two 0:19:56.119 --> 0:19:59.119 year just about three point one three percent. For the 0:19:59.200 --> 0:20:07.600 two year Treasury note, you're listening to Bloomberg Daybreak, and 0:20:07.640 --> 0:20:10.280 Bloomberg day Break is brought to you by Hofstra University's 0:20:10.280 --> 0:20:13.119 Frank gz RB School of Business, top ranked online NBA 0:20:13.200 --> 0:20:16.520 program with a real world foundation. Learn more at Hofstra 0:20:16.640 --> 0:20:23.520 dot e d U slash go grad. Broadcasting live from 0:20:23.520 --> 0:20:27.320 the Bloomberg Interactive Broker Studio in New York, Bloomberg he 0:20:27.400 --> 0:20:31.360 Loving Freedom to Washington, d C, Bloomberg On to Boston, 0:20:31.440 --> 0:20:35.360 Bloomberg one O six one to San Francisco, Bloomberg sixteen, 0:20:35.400 --> 0:20:38.159 to the Country Sirius XM tod A one nineteen and 0:20:38.280 --> 0:20:41.640 around the globe the Bloomberg Business at and Bloomberg Radio 0:20:41.760 --> 0:20:51.000 dot com. This is Bloomberg Daybreak hits six thirty on 0:20:51.000 --> 0:20:54.280 Wall Street. Good morning, I'm Nathan Hayger and I'm Karen Moscow. 0:20:54.320 --> 0:20:56.399 We're just about three hours away from the open of 0:20:56.480 --> 0:20:58.639 US training. Time for the five things you need to 0:20:58.680 --> 0:21:01.840 know to start your Dave Rotch you buy Interactive Brokers. 0:21:02.119 --> 0:21:05.480 Interactive Brokers Global Analysts helps you find new global investment 0:21:05.480 --> 0:21:09.760 opportunities to diversify your portfolio and discover undervalued companies that 0:21:09.800 --> 0:21:13.120 may have greater growth potential. Try ibk our Global Analysts 0:21:13.119 --> 0:21:17.000 today at ibker dot com, slash g a A first. 0:21:17.040 --> 0:21:20.080 Stocks are rising after China made a major shift in 0:21:20.119 --> 0:21:23.639 its COVID nineteen policy, it cut its quarantine period to 0:21:23.800 --> 0:21:27.600 ten days from three weeks for inbound visitors. Bloomberry Senior 0:21:27.680 --> 0:21:30.960 executive editor John Leui and Beijing outlines the reasons for 0:21:31.040 --> 0:21:34.320 the move. The caseload has come down substantially. The other 0:21:34.359 --> 0:21:37.760 thing is the economy has obviously been pummeled last week, 0:21:37.760 --> 0:21:40.840 who had presidents coming out and saying that the government 0:21:40.920 --> 0:21:42.760 is going to do what it can to hit this 0:21:42.840 --> 0:21:45.159 year's growth target. If the government is value and if 0:21:45.200 --> 0:21:47.639 it's willing to take steps like this, it's possible we 0:21:47.720 --> 0:21:49.520 might get closer to five and a half percent than 0:21:49.600 --> 0:21:52.960 previously thought. Bloombery John Luis has stocks in AJR race 0:21:53.080 --> 0:21:56.119 losses to climb for a fourth session. Karen Futures are 0:21:56.119 --> 0:21:58.160 getting a boost as well after stocks started the week 0:21:58.200 --> 0:22:00.760 in the US on a losing note. River Front Investment 0:22:00.760 --> 0:22:04.080 Group chief investment strategist Chris Constantino says, with the outlook 0:22:04.080 --> 0:22:07.080 remaining unclear, investors should put their money in safe assets. 0:22:07.400 --> 0:22:10.320 We think that clipping coupons in the form of you know, 0:22:10.359 --> 0:22:14.320 dividend yields from safe, high quality, high cash low type 0:22:14.320 --> 0:22:17.119 equities as well as certain parts of the fixed income world. 0:22:17.359 --> 0:22:19.080 Those types of instruments are really going to be an 0:22:19.119 --> 0:22:21.280 investor's best friend, we think for the next few years. 0:22:21.359 --> 0:22:24.600 Chris Constantinos, Riverfront Investment Group says the macro environment in 0:22:24.640 --> 0:22:28.040 the U S and globally remains uncertain well overseas, Nathan. 0:22:28.080 --> 0:22:31.360 The European Central Banks Annual Forum in Central is underway. 0:22:31.520 --> 0:22:34.240 ECB President Christine and the Guard addressed interest rates and 0:22:34.280 --> 0:22:38.000 inflation in a keynote speech. In response to the changing 0:22:38.119 --> 0:22:42.400 inflation outlook. We have consistently followed the path of policy 0:22:42.480 --> 0:22:48.240 normalization since December last year, sequentially adjusting our policy stunts. 0:22:48.480 --> 0:22:51.240 ECB President Christine le guards and inflation in Europe is 0:22:51.280 --> 0:22:55.240 expected to remain undesirably high in the foreseeable future. President 0:22:55.280 --> 0:22:56.919