Bloomberg Daybreak: August 15, 2022 - Hour 2 (Radio)

was attacked. Plus New York State is cracking down on speeders, especially this week. I'm Michael Vaughan. More ahead, I'm John Stage. In sports, the Mets stay hot, they shut out the Phillies. The Yankees slump continue to shut out loss in Boston.

That's All's training ahead on Bloomberg Daybreak on Bloomberg. He Live in Free on New York, Bloomberg one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XM one nine Team, and around the world on Bloomberg Radio dot Com and via the Bloomberg Business App. Good Morning, I'm John Tucker and I'm Karen Moscow and US stock index futures are lower this morning and we're

coming up to six o one on Wall Street. And we checked the markets every fifteen minutes throughout the trading day on Bloomberg S and P futures down twenty points down, futures down a thirty nine and nowasday future is down fifty five. The decks in Germany is little change ten your treasury that'll change yield two point eight three percent, and they yield on the two year three point to five percent. John and Karen, we begin with a surprise

out of Asia. China's Central Bank is unexpensedly cut it's key interest rate that as fresh data shows its economic slowdown getting worse. Bloomberg Daybreak Asia anchor Brian Curtis is more from Hong Kong, the PBOC cut it's one year rate by ten basis points to two point seven five percent. None of the twenty economy is pulled by Bloomberg expected

to change. The move comes as China's economy weakened in July COVID outbreaks and the property crisis taking a toll factory output up three point eight percent from a year ago retail sales growing two point seven percent, while fixed asset investment grew five point seven percent in the first seven months of the year. All of those missing estimates and China's home prices dropped an eleventh month in a row in on Kong, Brian Curtis Bloomberg deybreak all right, Brian,

thank you. All. Stocks in Asia meantime finished mixed after that surprise rate cut from the PBOC, and we get the recap from Bloomberg's Juliette Sally in Singapore, Good Morning, Juliet, Good morning John and Karen. Markets in Hong Kong and China's struggled for direction after the July activity data was released, While bonds rallied, the yield on China's tenure not dropping as much as seven basis points, one of its steepest

drops since the onset of the pandemic. The off show yuan fell along with the Kiwi and Ozzie dollas Japanese has. The rallied then to to five, close to erasing its losses for the year. Markets in South Korea and India were closed. In Singapore, Juliette Sally Bloomberg deybreak Thanks Juliet relations between the U S and Shina and focused once again this morning. A US congratual delegation landed in Taiwan over the weekend, and Bloomberg's Any Morris has details from

our newsroom in Washington. This delegation is led by Democratic Senator Ed Markey of Massachusetts and tests whether China will react more forcefully after how Speaker Nancy Pelosi went to Taiwan earlier this month. The delegation is set to meet with Taiwan's president and Minister of Foreign Affairs to discuss bilateral relations, security, trade, and investment. The delegation will reaffirm

US support for Taiwan. Reuters sided China's embassy saying this latest visit shows the US quote does not want to cease stability in the region. In Washington, I'm Amy Morris, Bloomberg Daybreak, right, Amy, thank you all back here in the US as senior Democrats says he has not seen any evidence the materials the FBI seas from Donald Trump's home were properly declassified. The former president has seven documents Wrenny classified, and his supporters claim he has the power

to classify documents on his own. Adam Shift, his chair of the House Intelligence Committee, the former president has no declassification authority, and the idea that, eighteen months after the fact, donalka Trump Trump could simply announce, well, I'm you know, retroactively declassifying or whatever I took home had the effect

of declassifying them is absurd. Adam Shift made the comments on CDs is face the nation heard Sundays on Bloomberg Radio, and turning to the economy, Now, the focus this week comes Wednesday. That's when the Feller Reserve issues minutes of its July policy meeting. Let's get more from Bloomberg's Vinny tells you guys. The minutes could indicate whether FED chair Jerome pale One tended to send a dovish signal the

July's post meeting news conference. Bloombrig Economics is betting he didn't, and its full speed ahead on what the interest rates, underpinned by royd sence among officials that the upside risk to inflation is material. Turning to this week's key economic data, US retail sales may show falling gasolene prices freed up cash for such things as Amazon Prime Day, while rising more traits put in housing starts Jude Bloomberg, Daybreak, Vinnie, thank you. We'll retail will also be in focus when

it comes to earnings this week. Let me get the story from Bloomberg's Charley Pellett. Walmart and Target let a

list of retailers issuing profit warnings last month. This week they report, along with Home Depot, Low's, Cole's, Macy's, and t j X. Laurie Calvacina's head of US equity strategy at RBC Capital Markets, we would tell you we're not entirely out of the woods from a market perspective in terms of earnings right now, just because if there really is a big macro slow downcoming economically, UM numbers do

still need to come down. But I think for the moment, investors are You're just excited about the resilience that we're seeing. Also reporting this week, Agile and Technologies, Analog Devices, Applied Materials, Cisco Systems, and Deer in New York. Charlie Pellet, Bloomberg, day Break, Thanks Shortly, we had earnings overseas out this weekend.

Saudi Aramco posted the biggest quarterly profit of any Let's at company anywhere, net income at the South of Oil Giant rose to forty eight point four billion dollars in the second quarter from twenty five and a half billion a year earlier. Well searching oil prices give a boost to energy companies. John both oil and gas have come down since there June Hies and US Energy Secretary Jennifer Grandholmes says they may fall even further. Bloomberry said Baxter

has the details. The caveat, as always is the instability of the globe. But Grant Holmes has given the four dollars. Depending on the region we're seeing now, it should go down even further. We'll probably drop to about three dollars and seventy eight cents. So we hope that that's true, but again it can be impacted by what's happening globally. Grant Home on CNN says the President is monitoring very closely and we'll do everything within his power to help.

In San Francisco, I'm at Baxter Bloomberg Gay Break, and I think said some news on finances out of Russia now. Major Wall Street banks, including JP Morgan Chason City Group are reportedly offering to facilitate trades in Russia. Incorporate debt and government bonds. Reuter's reports the move took place in recent days after guidelines for the U. S. Treasury that did allow US holders to wind down their positions ahead

of the market open. On Wall Street, Dow futures two points lower and SMP futures down twenty two, Nasday futures down fifty eight points and at six. I settled on Wall Street time to bring in Michael Bard to find out what else is going on in New York and around the world. John, thank you very much, sir. And Iranian government official Toni today that Tayron was involved in

the assault on author Salomon Rushty. The comments from arounds Foreign Ministry come after Friday's attack on Rushdi and Western New York. New York Governor Kathy Hoco spoke at the side of where Rushty survived last week's knife attack. New York State will always stand up to protect freedom of expression, freedom of speech, and we condemned the cowardly attack. Governor Hocole at the Chautaqua Institution promised freedom will always eclipse

hatred and oppression rust. He suffered a damage liver and severed nerves and an arm and and I. However, he is off a ventilator and is said to be on the road to recovery his assailants, a twenty four year old man from New Jersey, according to prosecutors, has pleaded not guilty. More details have been disclosing yesterday shooting in Jerusalem's Old City. Authorities in Israel say a Palestinian gunman opened fire at a bus, wounding several passengers, among them

a New York family visiting the country. Three were from Brooklyn, which Senate Majority Leader Chuck Schumer represents. During a briefing, Schumer's shared details, he learned about one of the victims. He was very brave. He bent down over his family to protect them. He was shot in the neck, but and they had him on a respirator, but it looks like he will. His condition is improving. Senator Schumer says this incident in Jerusalem follows a tense week between his

real and the Palestinians. Don't speed in New York State, especially this week. The week long crackdown has started. Governor Hulkel says there are countless risks and tragic consequences to speeding, and I want all New Yorkers to be mindful of the speed limits in your area. During last year's crackdown,

police gave out twenty three thousand speeding tickets. Russian President Vladimir Putin offered to expand relations with North Korea, reaching out to his neighbor as the Kremlin scours the globe for weapons for its war in Ukraine. Amy winning film and television actor and Haiti has died of injuries from

a fiery car crash. The spokeswoman says Haiti was peacefully taken off life support and has was fifty three Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalist and analysts more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg Jump Michael, thank you. Yes. Now six ten on Wall Street. That's time for the Bloomberg Sports Update. Here's John test Shower. Thanks John. Shutout win for the Mets,

shutout loss for the Yankees. Mets have now won seventeen of their last twenty games. The Yanks have lost nine of eleven. In Fenway, they had just two hits, struck out eleven times, fell to the Red Sox. Three nothing. The Socks win a series within the division for the first time all year. Michael Waka, who had been out since June with the injured shoulder, was dominant. Jamison Tyone took the loss and ends a two and seven Yankee road trip. You're Aaron ud Baseball. You know you're gonna

go like this. Um Every every team does. So it's just about us. You're staying consistent. You know, I don't sit on our woes here on our head. You know, I'm not happy about it, but that's still a lot of work to be done. It still a lot of Thingthony to improve on and keep working on. They come home for a nine game homestand three with Tampa Bay starting tonight, and then four with Toronto, and then two with the Mets, who now hit the road for the

next ten games, four in Atlanta, four in Philadelphia. Mets just threw back to back shutouts with the Phillies, who scort only two runs in the three game series. Chris Bassett got his tent win four and inch from the bullpen. The Mets won six to nothing. They are seventy five and forty. It's the first time the Mets have been thirty five games over five hundred. Jets quarterback Zack Wilson headed l a for a knee procedure tomorrow that will determine just how long he'll be out. Suffered a bone

bruise and torn meniscus in the preseason opener. Will's ALLATORUS nearly won the US Open, nearly one the pg H, but you have lost of the playoffs. In Memphis, finally got his first career victory. It came in a playoff, and in the start of the FedEx Cup playoffs. NBA announced it's Christmas Day schedule. The Knicks will host Philadelphia, but the Nets, perhaps because they might trade Kevin Durant,

will not be featured on Christmas. John Stashower, Bluebird Sports, John, all right, thanks, so lunch had ahead of the cash open on Wall Street. Futures in the red to risk off so far this morning. The down futures down one fifty nine points. That's a decline of about half a percent right now, SMP even the futures twenty two points slower, that's down half a percent. The dance dank you many futures fifty three points slower, down four tenths of a percent.

Looking at crude oil Mymex crude at eighties seven, nineties six and barrel that's down about four and a half percent. This is Bloomberg and just ahead, China Central Bank delivers a surprise rate cut. What does it all mean? We'll head to Beijing and speak with Bloomberg's James Meager. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape. This is a Bloomberg Business Flash and I'm Karen Moscow

and US Knock Index. Futures are slipping this morning and commodities from oil to iron ore falling as disappointing data from China further clouds the outlook for the global economy. We checked the markets every fifteen minutes throughout the trading day on Bloomberg s and p Future is down twenty two points down, futures down a hundred sixty three and asdack Future is down fifty four. The decks in Germany little ship aanged ten, your treasury little change yeld two

point three percent. They yield on the two year three point to five percent. Nimax. Screwed oil is down four point four percent, down four dollars one cent at eighty eight dollars eight cents of Barrel Comic School is down one point three percent, or twenty three dollars sixty cents at seventeen two Announce the euro one point one nine eight against the dollar British found one point to zero six six and the yen one thirty three point four seven.

And look at a bitcoin down sixtensive percent at twenty four thousand, one eighty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. China announced more military drills around Taiwan as the island's president met with members of a new US congressional delegation led

by Senator Ed Market. China regards formal contacts between US politicians and the island's government as support for its independence from Beijing. Russian diplomat says they are in talks right now with the US about a possible prisoners swap for w NBA star Britney Grinder. Grinder was sentenced to a Russian prison for nine years on drug smuggling charges. In baseball, the Red Sox be the Yankees three nothing. The match shut out the Phillies six zip. The Nationals and Orioles lost.

The A's lost to the Astros six three the Giants one. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg Jump. Michael, thank you for coming up on six twenty on Wall Street. We are live from the Bloomberg intrant to Broker Studios. This is Bloomberg Day. Prey. China Central Bank, as you've been hearing,

is delivered a surprise rate cut. Could be an indication of just how band the economic picture has gotten in the world's second largest economy. Joining us this morning with more in Bloomberg's James Maker, Economics Senator for Asia, joining us from Beijing this morning or this evening. James, Thanks for me with us. Wh appreciate it. What is the date of talents about China's economy the day of this morning? You know it was surprisingly bad. You saw not just

a poor retail sales, which I think was expected. You know, the COVID lockdowns that have you know that have continued have really damaged China's retail market and consumption and tourism, the services sector. But you also saw really bad numbers for the industrial industrial outport. You know, we saw steel production was the lowest since miden Cement, production was down, glass production was down. You know, computers and phone production was also down. So, you know, so surprisingly bad across

the board. And I think you saw you you saw a reaction to that just before the numbers came out. When then, as you said, the PBOC came out with a not with a rate cut, which was which was very there was expected by none of the economists that we surveyed, and sort of goes against their policy, which is, you know, since January of this year, they've been saying that there there was enough stimulus and there isn't any need for more action from the Central Bank. How did

trying to get to this point? The two things I think that are driving this one is obviously the covered zero policy. Then you know the huge lockdowns we saw in April and May in uh in Shanghai and Jina and and other places in really in other places and trying to really damage the economy. We you know, in a normal country where you know government statistics, where you know not what they are here, I think in the

company would have gone into a session. But even without that, I mean, it was clear that economic activity really slowed. The second thing that's really caused this is a massive flow down. Housing market prices have been falling now for eleven months. Property sales home sales have been falling for

a basically a year now. Large numbers of property developers have declared bankruptcy or in trouble, stopped they've stopped producing the houses, they've stopped building the houses, and now more and more people are stopping paying their mortgages on the houses they haven't been delivered. So, you know, those two things combined, the covered zero thing is is shutting down industrial production in some places when when they have a lockdown,

it's also hitting the consumer side of the economy. And then you know, housing is such a big portion of China's economy and that's in this you know continuing slump, and those two things combined it really sort of you know, you saw that the results of that are clear in the data that came out today. There's a rate cut enough.

We saw in July we saw the lowest borrowing levels of borrowing by households and companies in at least five years UH and by yet, the the inter bank rates are very very low right now, which indicates that banks have a lot of money. It's so it's not the fact that they can't lend money, it's the fact that noyone wants to borrow money. So whether a tempasis point rate cut isn't really going to change that dynamic. The problem is not the banks don't have enough money, or

that the cost of money is too high. The problem is that that there's not enough demand for cash. There's enough demand from companies to borrow money because they're not confident about investing in the future, so they're not taking on more debt. And households don't want to borrow money because they don't want to buy a house because prices of houses are falling right now, and obviously you're not going to buy an asset where the price is going

to continue to fall. So I don't think a rate cut is going to be enough to turn this around. I mean, the problem is not a problem, as I said, it's not it's not supply, it's demand. They really have to change the dynamic, especially what's happening in the housing market. But also you know, an expectation that if they did change the COVID zero policies and stop locking people down, maybe that would in the long term lead to more stable consumption. Is suing Ping on the ropes right now.

I don't think that's on the cards. I mean c Jumping is looking in the next couple of months, maybe in September October, you're going to have the party congress, which was you know, there's no way, there's no reason to think that he's not going to be confirmed as China's leader for a third term. So whether that what

may happen. What may be happening right now within the party is people that sh Jmping is supporting for a lower level officials maybe won't be getting as much support from the Communist Party and other people who might have different ideas about their carey policy may get more support. But it's it's completely opaque what's going on. But I mean s Jimping is going to be confirmed as China's leader, you know, in whenever the party meeting happens. In the

in the next couple of months. The economic problems that China is having the probably make his position more difficult. What's the in thirty seconds, what's the next thing we should be looking for? I think you're gontas continue to see week input to math from China. If you're an X, if you're a commodity exploiting country, you shouldn't be looking at China to be to be boosting your exports in

the next six months. If you are a company that selling products in China, you shouldn't be looking at China to be boosting your sales in the next six months. All right, James Pleasure. We appreciated Bloombergs James Meager, Economics senator for Asia from Beijing this morning after the surprise rate cup from the PBOC, and that is having an effect on markets worldwide. It's risk off in the US, at least for now ahead of they can show up on Wall Street. The Dow futures on eighty one point slower.

The SMB futures are twenty four points slower than asset futures right now, down sixty points. We are seeing in the commodity space, Nimax crew down to eighties seven eight three barrel. That's down over four and a half percent. You're listening to Bloomberg day Break and the Bloomberg Weather from meteorologist Rob Caroline. This morning, partly sunny day on tap, the high temperature in the mid eighties, cloudy tonight seventy. Tomorrow's out look partly to mostly sunny, the height to

eighty five. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg Living Freed to Washington, d C. Bloomberg to Boston, Bloomberg one six one to San Francisco, Bloomberg nine sixty to the Country, Sirius XM Cho one nine and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's six thirty on wool Street. Good morning. I'm John Tucker and I'm Karen Moscow and we are just about three hours

away from the open of US training. It's time to the five things you need to notice start your day. Brought to you by Interactive Brokers. Interactive Brokers Global Analysts helps you find a global investment opportunities to diversify your portfolio and discover undervalued companies, I mean a greater growth potential.

Try ibk our Global analysts today at ib k R dot com slash g A. At first, a surprise in Asia, China's Central Bank unexpectedly cut its key interest rate ten basis points after data show July retail sales, investment, and industrial output missed estimates. Bloom Bars and The Current says it all signals trouble for the Chinese economy. All of his thought it was weak. But the reasons especially concerning is because July was meant to be the good month.

July was meant to be, to think, the month when things pick up a bit of momentum again. The third quarter was supposed to be better than the second quarter and all the rest of it. But of course it's now underscores just how much pressure Shaina's economy is actually under. And Bloomberg's and the Current says the rate cut shows how concerned Chinese officials are about the deepening economic slowdown. And back here in the U, s will get a couple of data points about the economy this week, Julyants

five minutes and retail sales. They'll be released on Wednesday. China and US relations are in focus once again this morning, John, as another U. S congressional delegation has landed in Taiwan.

It's led by Democratic Senator at Marketam, Massachusetts. The delegation is set to meet what Taiwant's president and Minister of Foreign Affairs and will reaffirm US support for Taiwan and bank in Washington and senior Democrats says he hasn't seen any evidence that materials the MBI sees from Donald Trump's home were properly declassified. Last week, the former president said the documents were all classified declassified that is. Adam Schiff

is chair of the House Intelligence Committee. He says is absurd. The president could retroactively declassify materials anyone in the intelligence community that had documents like that, or they would be under serious investigation. Adam Schiff making the comments on CBS's

face the nation heard Sunday's on Bloomberg Radio. Well the oil Now, John first ever see Saudi Aramco posting the biggest quarterly profit of any listed company anywhere, with net income rising to forty eight point four billion dollars in the second quarter, while searching oil prices propelled to Ramco results last quarter. Both oil and gas that come down since they're June highs, and Energy Secretary Jennifer Grindholme tells

CNN it may fall leven further. The price in the fourth quarter of this year per Dallen will probably drop to about three dollars and seventy eight cents. We hope that that's true. And that's Energy Secretary Grandham. That's the find things you need to notice start your day. Brought to you by Interactive Brokers. And it is now sixty three Wall Street, and it's time for a look at world news from around the world and in New York. And for that there's Bloomberg's Michael Bars. Yeah, thank you

very much, sir. Author Salman Rushti is off eventually inter and is said to be on the road to recovery. New York's Governor Kaffe Hukel called the stabbing of Rushti allegedly carried out by a twenty four year old New jerseyman quote cowardly HOCl in Western New York spoke at the site where rushed. He survived a knife attack on Friday. We can damn any individual or any group that dare violates the safety of a place like the tako or to an attempt an assassination on a world leader that

cannot happen in New York. You're standing up pocol At. The Chautauqua Institution says we will always defend a quote, freedom of expression and freedom of speech. We're learning more details about yesterday shooting in Jerusalem's Old City. Authorities in Israel saying Palestinian gunmen opened fire at a bus, wounding several passengers, among them three people from Brooklyn, where Senate Majority Leader Chuck Schumer represents. It hits close to club home.

Three of the families three of those who were shot were American and from Brooklyn from Williamsburg. Senator Schumer says one of the victims wounded is improving. Russian President Vladimir Putin has found to expand relations with North Korea's Kim Johannon. The move may complicate President Joe Biden's pushed to isolate

North Korea. Putin sent a congratulatory message to North Korea for its Liberation Day holiday today, marking the end of Japan's nineteen ten through ninety five colonial rule over the Korean Peninsula, just weeks after he was sentenced the thirty years in prison in New York. R Kelly's federal trial in Chicago starts today. Legal analists gil Sofur says multiple women will testify about being abused when they were miners,

may face tough questions from defense attorneys. Well, they simply try to cast out on everything by calling all the the miners now adults who are going to testify liars, they may, Legal Analists gil Sofur spoke to ABC. Jury selection in the case gets underway today. New York State is cracking down on speeders this week. Governor Kathy Oakel says this enforcement campaign will be crucial for not only to catch speeders, but also to encourage all drivers to

maintain safe speeds on our roadways. Last year, about twenties three thousand tickets were handed out during the crackdown period. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analyists more than a hundred twenty countries. I'm Michael bar This is Bloomberg, John Michael, thank you. Yeah. That sounds six thirty six on Wall Street this time for the Bloomberg Sports Update. Here's John Stown Show all right, John.

Yankee Red Sox games, they usually tend to drag on, sometimes for more than four hours. Last night at Fenway Park, a crisp two hours fifteen minutes. That's tied for the shortest Yankee Red Sox game since the Sox won three nothing. The Yanks managed just two hits against Michael Walker, who hadn't pitched since June to his shoulder injury. Tommy fam who had the walk off hit on Friday, out hit the Yankees by himself. He had three hits rappidvers to

run homer off loser Jamison tay On. So the Yankee tailspin continues at two and seven road trip, nine losses in the last eleven games, no back to back win since July. Still attend game division lead, but they're now two and a half games behind Houston for best record in the American Lady the Yankster back home tonight to play Tampa Bay. The Mets are in Atlanta. They lead the Braves by five and a half. The Mets with

a second straight shut out of the Phillies six. Do not think Chris Bassett four relievers combined to beat x met Zack Wheeler a home run for Daniel Vogel back and Francisco Lindor bro kose Reys record for r b I s by a met short stop. The Mets have won seventeen to the last twenty forty home wins. That's as many as overall losses and thirty five games over five hundred for the first time since Jets quarterback Zack Wilson, who went down early in the preseason opener, will have

minor knee surgery tomorrow. The feeling is out two to four weeks. Coach Robert Sala asked about not rushing him back for the season opener. I think that's all going to depend on what happens here with the surgery and in the feedback we get from the doctors working with Zuck and all and gathering all the information before we even come remotely close to making that decision. But uh, but yeah, that that that's that's all valid and something that we all talk about once we get all the

information we need to. I said, better than Joe Flaco as well as David White. He reserved John actually Bloomberg Sports. John John, thanks very much. It is a six thirty eight on Wall Street. It's time to take a look at some of the stocks, some of the names that are moving in the pre market this morning, and for that we're joined by Bloomberg's Tatiyana dowry A and Tatiyana. I thought the meme stock, So it's through with that, but apparently not the most actively traded bed Bath and

Beyond this morning. Exactly, band Bath and Beyond still on fire among the meme stocks. They are up about eight percent the pre market now a one dollar one billion dollar evaluation the company has and it has gained a just looked at, you know, the past two weeks, it now has gained one dred and fifty seven percent, so more than doubling. It's a share price. But you know, this is a company that is struggling with liquidity, certainly doesn't have great of fundamentals. Is one of the triple

C rated companies as well. That means, you know, it is going to suffer because of higher interest rates. So this rally is certainly not on fundamentals. Um you know, it's part of a revival at a comeback of meme stocks, and that to me, you know, tells me that this is a fed communication problem. So the policymakers need to make clear that higher interest rates are coming, because you know, the rally in the stock market, uh and especially in

the meme stock is getting out of control here. If you are involved in any way in commodities, you're glued to the story coming out of China. China, the second largest economy, will slow down, and we're seeing that this morning and some of the stocks on the move right exactly. Yeah, Well, we're seeing a Freeport nacmaron, one of the companies that is mostly impacted in the pre market at trading down

about a four percent there. But we're also if you look the appears very gold and Newman Mining also down about two percent. That's, you know, on the China story.

After that disappointing data, we saw retail sales, industrial output, investment all slowed in the month of July and missed economists estimates, and that is sort of you know, weighing on the global economic outlook and weighing on markets broadly this morning, but perhaps more on miners and industrials because they're more sensitive to the China story, to the economic story, to the global growth story. So not perhaps not surprising to see them underperformed there, and they're the ones to

watch in today's trading. Let's not always pleasure. Appreciate it. To Bloomberg's Teta Darier with some of the stocks that are moving in the pre market and ahead of the cash open on Wall Street. Seeing futures right now, they are lower. It's the risk off day down futures right now, down on seventy seven points, decline right now about half a percent. S and P Many futures down twenty two points,

that's down half a percent. And the tech heavy DANSDACK futures fifty one points lower, down about four tenths of a percent. In the commodity space, we're seeing lower crude oil this morning, Dimex crew down four and a half percent at eighties seven ninety dollars of barrel. You're listening to Bloomberg Daybreak. The Bloomberg weather for today for meteorologists Ron Carolin Partley, sunny, the highs of the mid eighties, cloudy tonight low to seventy, partly mostly Sunday Tomorrow, lights

again in the mid eighties. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg dictap. This is a Bloomberg Business flash and I'm Karen Moscow, and futures are lower this morning. We go to the first word breaking news dask for today's morning call, and here's film Loney Bill, Good morning and good morning, Karen.

That's right. US futures are on the red after Friday search with down futures down a hundred and sixty seven points. S if you strop twenty one, well nest that futures are down by forty two. The US a ten year old at two point eight three percent, Bold is down twenty six, Oil is sinking, and Bitcoin is lower by half a percent. Japan rose one point one percent overnight. Note that Shanna's PBOC unexpectedly cut key rates. While your

markets are quiet this morning. Back in the US on the economic Frinday thirty Empire Manufacturing at a ten o'clock the NHV Housing market index. In another news, Wells Fargo to shrink u S Banking's largest largest mortgage business, and Soros Fund Management boosted bets on Tesla, Google and Amazon.

Wrapping things up, green Dot was cut to equate at Barkley's and Dollar General was cut to market perform over at BMO Live from the First Breaking News Desk, Bill Maloney, Karen, all right, Bill, thank you to hear live breaking news of your Bloomberg types. Squalk on your tournament. I'll ask you you a w K and that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on

around the world. Michael, Karen, thank you very much. China has announced more military drills around Taiwan as the island's president met with members of a new US congressional delegation. The visit came less than two weeks after the House Speaker Nancy Pelosi's trip to Taiwan. China regards formal contacts between US politicians and the island's government as support for

its independence from Beijing. The Taliban is declaring today Victory Day in Afghanistan, marking one year since their return to power. In baseball, the Red Sox beat the Yankees three nothing. The match shut out the Phillies six zip. The Nationals and Orioles lost. The A's lost to the Astros six three the Giants one Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analysts more than a

hundred twenty countries. Michael Barr And this is Bloomberg. Karen right, Michael, thank you. It is six forty nine on Wall Street, and we turned to news and science and technology now with a Bloomberg and j I T STEM report. It has brought to you by New Jersey Institute of Technology and j I T makes industry ready engineers and more than twenty fields. If it's engineering, it's at n j I T. Learn more at n j I T dot E d U. And here's let's making news and science, technology, engineering,

and math. The climate crisis is compounding Europe's worst energy crisis in years. In Germany, the water level at a key way point on the Rhine River is set to steady at an extremely low level this week. The Rhine is Western Europe's most important river for the transport of fuel and other industrial goods. The river is now at a level where barges find it uneconomical to transit past

that way point. A new poll shows Americans are less concerned now about how climate change it might impact them personally. According to the Associated Press poll u S adults say they are extremely or very concerned about the impact of climate change on them personally, and that's down in August of only about half say their actions have an effect on climate change compared with two thirds. And in a Twitter post over the weekend, Elon Must said Tesla has

now made over three million vehicles. Must says about a third have been produced in Shanghai. And as a Bloomberg and j I t Stem report, John, all right, thanks Karen. We are lying for the Bloomberg Interactor Broker Studios where it is now six fifty one on Wall Street and time to check what's going on in d C. Some of the top stories in our nation's capital include the ampiised Trump search as lawmakers asking for the contents of

the documents. How's Democrats asking intelligence chief to assess the Trump documents. China announces patrols around Taiwan, the protest visit by senators trying to help us figure things out. This morning, we're joined by Greg Valier, the chief US policy strategist at a g F Investments. That's a tall order to figure things out, force, Greg. Look at morning, John, Let's start with the former president and the FBI searched. Yeah, just from a political perspective, Has anything changed, Does this

perhaps open a new political front as the mid terms approach? Yeah? I do think one thing has changed, and it's extremely ironic, and that is that I think the Republicans have become more unified and their support of Trump. His base is angry, they're furious. Uh, they are swearing allegiance to him. So how's that for an irony? After all of this, I think there's a feeling among Trump's supporters that the Justice Department has overdone it. Um does it bring out more

undecided in the election? Now that's the key. I think while the Republicans are unified, I think that moderate voters undecided, the swing voters they're called, might be a little less inclined to support Trump. So that that's the other half of that narrative. You know, based on the warrant, the prosecutor has indicated they're exploring possible violations of the Federal Espionage Act, among other allegations. Does you know it's it's kind of interesting. Also you see that there have been

calls on the part of Republicans to perhaps defund the FBI. Um, it's a little odd that they're taking this position, right now is that. Well. The Republicans, of course, which was the party of law and order, and to have them speak out against the FBI is and still another irony. I think at the end of the day, you really have to go to the big one, and that is did Trump instigate an insurrection and failed to stop it?

I think that's the case that will make or break things, not you know, what did he do with these documents? Does the change is thinking about whether or not to run for president again probably makes him more inclined. I think he would view the presidency as an opportunity to rid himself in some of these charges. You know, he could pardon himselves. He could, he could maybe make his case more for afully if he were presidents. So no, I think the chances of him running have actually increased.

The Democrats requesting, among other things, a damage assessment. Will they be successful making a political hay out of this? I think they will. I think again for moderate voters they will. But for the Democrats there's one surprising negative, and that is that they were hoping to use this week last week has opportunities to boast about all the things Joe Biden got done, the Chips Bill, and the all of the things that he got, the burn pit

thing for soldiers. The next story is going to be student loan released, So instead of talking about their narrative, they've been obscured by Trump. And don't forget crude oil. The spring greg down four and a half, it's below I mean, it has the ways to go, but we suspect. But on the inflation front, which seemed to be the key Republican argument against Democrats in the mid term, maybe

that's fading a bit. Absolutely. I think you've got an environment where the labor market is still red hot, unemployment at three point five, and maybe even more importantly, when people fill up their cars, I think they could see the price of gasoline getting well below four. With what's happening in crude oil, that's a real plus for them. In November, Can we touch on China just for a moment. You have outraged China after US lawmakers make an unannounced

visit to Taiwan. What's the purpose of all this and what's the what's the political fallout in this country? You know, I don't get it much, confessed, and I've talked to a lot of people in this town who don't get it. So here's Nancy Pelosi who stirs the pot. She provokes China. Things get real tense. And now we've got another congressional

delegation going over there, once again provoking Beijing. I mean, I'm not saying we should be just passive, but at the same time, I think that these visits are not productive. In your note this morning, you say President has to address a crucial issue, and he has to do it before Labor Day. What is that? Student loans? Forty million Americans have student loans, and the White House has had extensions of the moratorium on the payments during the pandemic

every three or four months. They would extend it again for another three or four months. Will still another deadline is coming on August one. I think Biden unquestionably will extend it through the end of the year. There's an election coming up. But I think he may also forgive loans of up to ten thousand dollars. That's a big deal for younger voters. Well, who has the student loans?

You say younger voters? So they Democrats Republicans are undecided? Well, I think a lot of them were apathetic and not inclined to vote. This might make them vote. There's a flip side to that story, and that is Republicans will say this exacerbates the deficit. Number one and number two, everybody who made all their loan payments are being penalized

by this huge political stakes here. I suspect right about you say forty million Americans old student loan debt yep, and some of them, many of them are in default and made something like or in default. But I think most loan holders would be glad to see this moratorium. And again the deadline is is August thirty one, and we had primaries and well in Wyoming among others, that's tomorrow. What's next for Liz Cheney, Well, that's the big story

tomorrow's election. I think she might do a little better than Paul's show because Democrats can cross over and vote for her. But I don't think she's going to win, And once she loses, I think she takes a very hard look at New Hampshire in other early primary states. I don't rule out her running for president. Greg always a pleasure help helping us figure things out in Washington

this morning. Greg Val, you are the chief US policy strategist at a GF Investments this morning, and you can read more about these stories on Bloomberg dot com or the Bloomberg Terminal. And a reminder you can follow all the latest Bloomberg Radio in Washington. That's Bloomberg at one oh five point seven fm h D two. Risk off the markets this morning after the surprise cup by the pboc Dall futures right now onty seven points lower, that's down four tens of a percent, smp E Many futures

down nineteen, that's down four tens of a percent. Nasdaq futures right now thirty two points lower again, that's down two tens of eight percent. And in the commodity space this morning mentioned crude oil NIMEX crude West Texas at eight seven seventy four a barrel, down four dollars thirty five cents a barrel. Brent crew the international benchmark, that is down almost five percent this morning. Even listening to Bloomberg Daybreak, I'm John Tucker for Karen Moscow. Thanks for listening,