Bloomberg Daybreak: August 2, 2022 - Hour 1 (Radio)

and another blowout earnings support by Big Oil. This time it's VP New York City, along with California to have declared the state of emergency because of Monkey Fox cases plus its primary day in five states. I'm Michael lare More Ahead. I'm John stash Own Sports another errand judge home running. The Yankees win seventh straight win for the Mets.

Jacob de Graham pitches tonight. That's all strade ahead on Bloomberg day Break on Bloomberg eleven, Freeo, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius XM one nineteen and around the world on Bloomberg Radio dot Com and via the Bloombird Business Actor. Good morning, I'm Nathan Hagard. And I'm Karen Moscow. How in US DOT index futures are following this morning?

We are coming up to five A one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg SMP futures down twenty seven points, down, futures down one fifty five, and NASDAK futures down one hundred five. The decks in Germany's down seven tenths of per cent, the ten year treasury up six thirty seconds, yield two point five four percent, and a yield on

the two year two point eight five percent. Nathan Karen will have more on markets in a minute, but first a major announcement from the White House. President Biden says a U. S. Drone strike in Afghanistan has killed one of the planners of the nine eleven attacks. I'm in Alswari was the leader of al Qaeda. No matter how long it takes, no matter where you hide, if you are a threat to our people, the United States will

find you and take you out. Senior Administration official tells the drone strike had been planned for weeks and there were no civilian casualties. Well, Nathan, the strike comes about a year after the fall of Kabbal to the Taliban and the US military's hasty withdrawal from Afghanistan. Lester Munson, principle at the government relations firm b GR Group, says, it's important to look at the attack from that context. What else is happening in Afghanistan? What are the other

consequences of our withdrawal. This is one event, It maybe a very significant one, but we do need to kind of put it in the constellation of all of the other information that we have. Lester Munson with b GR Groups spoke with our Washington corresponded Joe Matthew on Bloomberg's Sound on Catch the program weekdays at five pm Eastern

on Bloomberg Radio. Well, another major story we're following at this our Karen is US house speaker Nancy Pelosi expected in Taiwan later this morning to find Chinese threats of military action. We get more from Bloomberg's Bruce Einhorn in Hong Kong. She has a long history going back to you know, the early days of her career as a China Hawk. She has a long record supporting human rights

issues are related to China. She's met with the Doli Llama, She's met with Joshua Wang, the pro democracy activists from Hong Kong. She's met with ethnic wagers from Shinjong. So this is just in keeping with the long history of Nancy Pelosi's position when it comes to highlighting human rights issues democracy issues related to China. Bloomberg's Bruce ein Horn says Pelosi's trip would make her the highest ranking American

politician to visit Taiwan in twenty five years. Well, Nathan, the escalating tension between the US and China is impacting markets. This morning, US features are lower and Asian stocks fell overnight. We get the recapt from Bloomberg's Juliet Sally and Singapore Good Morning, Julia, Good morning Karen. China cs I three extended it's July losses and is now down around nine percent from its June peak, moving closer towards the correction

tai When the stocks also came under pressure. While the Taiwan dollar fell to a May twenty low against the green bag, investors flocked to save Haven's with the yen rising against the dollar for a fifth session, its longest winning streaks since April twenty twenty one, and Australian bonnes rose while the Aussie dropped as the ABBA became slightly less hawkish while still delivering another fifty basis point hike

in Singapore Juliet Sally Bloomberg Daybreak, juliett Thanks. In Europe this morning, shares of VP are up more than three and a half percent. The oil giants second quarter adjusted net income was the highest since two thousand and eight. We get more from Bloomberg Intelligence senior energy analyst Will Hairs. This is a very big beat from BP and two Q eight and a half billion in adjusted earnings. This is roughly more than two billion than the street consensus

had estimated. A big driver here has been there the oil trading division, which is not broken out by BP. The company cited they had exceptional oil trading returns, capturing value from some of that historic volatility we have seen well Hare's with Bloomberg Intelligence says VP also increased its dividend and accelerated share by backs. Well back here in the US, Nathan, shares of Pinterest are surging more than nine percent, as after Elliott Investment Management confirmed at Steak

as the company's top shareholder. Let me get the story from Bloomberg's Charley Pillett. Elliott says it approves of the company's leadership. Sales at pin Trust increase nine percent to six hundred sixty five point nine million dollars in the second quarter. Pinterests that had had four hundred thirty three million monthly active users at the end of the period on June, about the same as in the previous quarter,

but a five percent decline from a year earlier. In New York, Charlie Pellett Bloomberg taybreak all right, Charlie, thank you, and the earnings continue today. With more than forty companies reporting Uber Technology reports. This afternoon, we get a preview from Bloomberg's Tom Busby. Investors will focus on two things from the second quarter results out today, signs of how a shortage of drivers may have impacted its ride hailing business and how much it's food delivery unit Uber Eats

may have suffered from rising food costs. Bloomberg and Census calls for revenue of seven point nine billion dollars at a loss of twenty five cents per share. Total losses forecast to be around four hundred million dollars. Tom Busby Bloomberg Daybreak. All right, Tom, thank you all. Another corporate news this morning. The legal moves are heating up in Twitter's case against Elon Musk. Can we get the latest line from Bloomberg's reneed a Young, Good morning, Randa, Good

morning Karen. Twitter is probing the social circle of Elon Musk. Lawyers are making far reaching legal requests about his forty four billion dollar deal to take Twitter private. That's according to legal documents obtained by The Washington Post. Now, Twitter's legal team asked for information about Silicon Valley elite investors, including David Sex and Mark Andreson, and since some of the heavy hitters have not been named in the deal publicly, it suggests just how far Twitter is willing to go

to force Elon Musk to honor the deal. That Twitter is also probing Morgan Stanley, Bank of America and other banks that committed to backing the acquisition. Live in New York, I'm renned a Young Bloomberg day Brea. Thanks you need to SMP futures now down twenty five point, Staff futures down a hundred forty five. Nasdaq feutures are lower by

ninety nine points. The tenure. Treasury is up for thirty seconds yield two point five percent yield on the two year, two point eight five Straight ahead, your latest local headlines, and a check of sports. This is Bloomberg at five oh seven on Wall Street where it's seventy two degrees in Central Park. We got an overturn tractor trailer in northbound New Jersey Turnpike Exit seven. A details coming up in traffic. First Michael Barr with what else is going

on in New York and around the world. Good morning, Michael, Good morning Nathan. New York City as declared a state of emergency as monkey pox cases continue to rise. A reporter grass Mayor Adams if the city has quote dropped the ball on its response, Adams says, it has done the best it could with tools it had. We will receive it less than we deserved. In vaccines, we advocated we utilize our direct communication with the White House to give more. About a quarter of all monkeypox cases in

the United States are in New York City. An estimated one hundred fifty thousand New Yorkers are at risk of monkeypox exposure. California has declared a state of emergency to deal with the outbreak of monkeypox more in this live report from Bloomberg's John Tucker John Michael. Governor Gavin Newsom made the declaration to bolster the state's vaccine efforts. It makes California the second state in three days to take the step. Nearly eight hundred cases have been reported in

the state. He says California will continue to work with the federal government to secure more vaccines, raise awareness about reducing risk, and stand with the LGBT community fighting stigmatization. This move does come after the similar declaration of New York State Saturday and in San Francisco Thursday. John Tucker, Bloomberg Day, John, Thank you, Sarah. It's primary day in

five states. In Arizona, voters are choosing between candidates who say they wouldn't have certified the results of the campaign and those who argue it is time to move on. Other closely watched contests include races for Michigan's governor and Missouri senator. Voters in Kansas will be the first to design on abortion rights since the U. S. Supreme Court

revoked Roe v. Wade. Washington state also holds primaries. The Ukrainian troops have made inroads into the Russian defenses and used US supplied rocket launchers to strike bridges and military infrastructure in the south. Moscow is diverting its forces from the Donbas region to counter the new threat. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists and analysts in more

than one twenty countries. Michael Barr and this is Bloomberg, Nathan. Thank you, Michael. Five oh nine on Ball Street time for the Bloomberg Sports Update. Good morning, John Stenshower. All right, good morning, Nathan. Has been such a great baseball season in New York through four months, and both teams began August with victories the Yankees seven to two for the

Mets seven to three in Washington. They stretched their winning streak to seven the night after nineteen hits thirteen more four by Brandon Nemo home runs for Pete Alonzo and Francisco Lindor to back Max Scherzer. Vina's old team improved the seven and two. Mets fans have dreamt about the one two punch of Scherzer and Jacob de Graham, and the night after Scherzer, it's de Gram making his long anticipated season debut. Definitely excited. Um, you know, like you said,

it's been a long time. Um, you know, this has been a pretty slow process of coming back. So um excited to be out there. Uh, nerves haven't really said in yet, but you know, I'm sure Tuesday, I'll be pretty nervous and uh have feeling's gonna feel like my debut. Meanwhile, let the stadium familiar script for the Yankees. Four home runs Anthony Rizzo three run homer before the Mariners recorded their first out. His twenty six and one in inlet

Or Shure enough Aaron Judge is forty second. Jose Trevino hadded two solo shots to Mingo her mom got his first win, but he may be losing his spot on the rotation because the Yankees, before today's tread their trade deadline, acquired Frankie Montas from Oakland. They also got reliever Lou Trevino.

They acquired another reliever, Scott Efrost, from the Cooks. The arbitrator hired to rule on de Shaun Watson game a six game suspension for his sexual missconduct with missuses, but under terms of the labor deal, the NFL, who wanted a longer suspension can appeal basically to themselves and then add more games and I could lead to a lawsuit by the unions of the Watson story likely not over yet.

Johns nashwar Bloomberg Sports Nathan John thank you, SMP futures again down twenty six point staff features down a hundred forty two. Nastac features lower by a hundred points. The tenure Treasury is up four thirty seconds yield two point five five percent yield on the two year two point eight five percent. Nimex crewed lower by a third percent, or thirty one cents at ninety three dollar sixty cents a barrel. Komex scold up at tenth percent, up to

forty at seventeen ounce. The Euro one point zero two four one against the dollar the end one thirty point nine eight Bitcoin down one point four percent twenty two thousand and eight hundred dollars. And you're listening to Bloomberg

Day Break Bloomberg eleven three oh weather. Chance for a shower, thundershower today with a high neeer ninety degrees sunny, your ninety tomorrow sunny, hot, humid for Thursday with higher nine five Right now seventy two in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape.

This is a Bloomberg Business Flash, and I'm Karen Moscow's docks in US Dock Index futures are falling amid escalating US China tension over Taiwan and deepening worries about a global economic slowdown, driving investors into the safety of government bonds. We check the markets every fifteen minutes throughout the trading day.

On Bloomberg s and P Future is down twenty four points down, futures down a hundred thirty three nasdack futures down ninety four The decks in Germany's down six tenths of upper set, and your Treasury at five thirty seconds held two point five five per cent. They yield on

the two year two point eight five per set. Night mex Screwed oil is down about two tenths per center eighteen cents at ninety three dollars seventy one cents of Barrel Comics gold is up about two tenths of upper center two dollars seventy cents at seventeen ninety announced, the euro one point oh two four one against the dollar, British found one point two two oh five and the end one thirty point nine five and Bitcoin is down when at a quarter percent at twenty two thousand, eight

hundred forty dollars. Today, we are watching for the jolts jobs you report at a ten o'clock Wall Street time. Caterpillar, Starbucks, and Uber among companies scheduled to report earnings today. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, good morning, Good morning Karen. President Joe Biden has announced that al kind of leader I'm in al zaur Heerie was killed in a US drone strike in Cobble During an evening address.

Biden is hailing the operation as delivering justice, while expressing hope that it brings one more measure of closure to the families of the victims of the nine eleven attacks. How Speaker Nancy Pelosi is expected to land in Taiwan in defiance of Chinese threats. The trip today would make Pelosi the highest ranking American politician to visit the island. In twenty five years. In baseball, the Yankees beat the Mariners seven to the Mets beat the Nationals seven three.

The Red Sox and Orioles were also winners. The Giants lost to the Dodgers eight. To Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalists and analysts more than a twenty countries. Michael Barn this is Bloomberg. Nathan right, Michael. Thanks, It's five nineteen on Wall Street

Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak on a morning where geo politics has been more in focus for markets than we've seen in quite some time. Let's bring in Joe Matthew this morning, Bloomberg Washington correspondent, host of Sound on Weekday is at five Eastern here on Bloomberg Radio. Joe, good morning. Let's start off with the breaking news that we got last night from President Biden that i'm an Oswahi is now off the battlefield.

Do we have any more information about the strike that took him out? Well, we know it was a drone strike. A couple of missiles rockets were sent down. To the balcony. Apparently where he was standing, he stepped outside, I guess to get some fresh air, and those were the last breaths he took. What we don't know is where the intelligence came from. And this is something that we're very curious about because of the debate following our withdrawal from

Afghanistan over what we call over the Horizon missions. This is, you know, the idea of sending drones in without having boots on the ground, without having troops there or intelligence personnel there, that we can from our satellites and technology uh be able to respond to threats against the United States.

There were a lot of doubts about that, a lot of a lot of criticism of the administration upon the time of our withdrawal, and it it was an opportunity last night for the White House for Joe Biden to show that it actually worked and pretty remarkable to see him standing out on that balcony Nathan, because we have to remember he still technically has COVID. Made for a very pretty picture as he spoke to Americans last night,

but it also reminded us what he's dealing with personally. Yeah, and it also reminded US, as you allude to of the hasty withdrawal from Afghanistan, and as you mentioned that, the idea that the US could still have a footprint and do those kinds of over the horizon attacks was a big part of the rationale for what has become a very unpopular decision by the President to move troops out after the Taliban took over a cobble. Is the White House sort of looking for some vindication here by

actually showing that the leader of al Qaeda was taken out? Well, sure, I mean look like I said, it's it's an opportunity to respond to that criticism, which is now basically a year old. Uh And I don't think that the public sentiment was against removing troops. It was the style in which had happened. It was the way that things did not appear to be planned, the way it was conducted, and of course the deaths of thirteen Marines. But remember

with regard to drone strikes, they remained controversial. Uh And and it was about a year ago that we killed ten civilians and had to apologize for that and what we thought was a counter terror strikes. So yes, this is an opportunity for the White House to say this type of mission can work. And obviously the other big source of tension this morning is the possibility that how Speaker Pelosi is going to arrive in Taiwan within hours.

What's the latest there. Let spoke with John Kirby yesterday who speaks for the National Security Council of the White House, and his messaging was very deliberate. There's a precedent for this trip. Speakers of the House have gone before, albeit it it's been about a quarter century. And that the White House that the United States as a nation is making no change in policy towards China or the One China policy or Taiwan. This is status quo, and it is in fact Beijing that has been cranking up the

rhetoric here. Uh. The White House, as you know, did not prefer this happened, Joe Biden said two weeks ago. The military didn't think it was a good idea. But the White House can't tell the Speaker what to do. On the other hand, the White House has to provide, or at least the administration as a whole Visavi the Pentagon must provide the transportation and security for her. It's

gonna be flying in on an Air Force jet. So to suggest as well if the White House is watching this on the news with the rest of US is not very accurate. This is gonna take both sides of Pennsylvania Avenue. In our last minute here, Joe, we've gotten even more response from China. There was a briefing earlier this morning vowing resolute measures if Pelosi does visit Taiwan. We've had a ratcheting up of rhetoric here. What is the US preparing for in terms of perhaps something more

than just rhetoric getting ratcheted. Yeah, it's been pretty hot, and they did name Pelosi in that briefing this morning. John Kirby told us yesterday some of the things that they're concerned about maybe another missile test labba couple of missiles uh into the ocean near Taiwan, which actually happened uh last time we sent a high ranking official there. Uh. Maybe there is more to it than that. Maybe we have a large scale incursion into Taiwan's airspace. That would

be something we're typically testing those lines. But to have a number of jets, maybe a squadron from China fly over there, if not over the island itself, would be considered a very bold move. Keep in mind, the Pentagon is going to be flying escorts with Nancy Pelosi to make sure she gets in and out safely, and the chance for a mistake, the possibility of an error is

what could be the biggest risk today. And we'll have much more from that interview that you did with a National Security Council spokesman John Kirby coming up here in about a half hour here on Bloomberg day Break. Joe Matthew or Washington correspondent, host of sound On. You can catch him every weekday evening five pm Eastern Time on Bloomberg Radio. And Joe'll be back up with us later

on in this program on Bloomberg Daybreak. As we continue to follow developments with how Speaker Pelosi expected to arrive in Taiwan within hours ahead of that, futures are moving lower. We have SMP futures down twenty six point, STOW futures down a hundred forty seven. Nastack future is lower by a hundred one points. This is Bloomberg and Bloomberg day Break is brought to you by Peapack Private Wealth Management.

Prepack Private Wealth Management knows that the portfolio is more than a collection of assets, It's a path to your future. Visit Peapack Private dot com. Begin your financial legacy today. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg Living for You to Washington, d C. Bloomberg ninety one to Boston, Bloomberg one O six one to San Francisco, Bloomberg M sixty to the Country Sirius xm J A one nine team, and around the globe the Bloomberg Business

and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. We are just about four hours away from the open of US trading. Let's get you up to date on the news. You need to know what this show where Politics front and center this morning and the beginn of President Biden's addressed to the nation last night. The President said a US drone strike in Afghanistan has killed one of the planners of the nine

eleven attacks. I'm in Alzowari was the leader of al Qaeda. President Biden thanked experts and operatives who brought justice to al Zawari is thanks to their extraordinary persistence of skill that this operation of success than it's all safer. President Biden said he authorized this strike and that there were no civilian casualties. Another major story we're following this morning, Karen,

is Nancy Pelosi's visit to Taiwan. China is threatening military action over the visit, but the House Speakers should make the trip safely. That's according to US National Security Council spokesman John Kirby. We have indications that the Chinese might take some actions in a military way to protest a trip by the speaker. What I wanted to make clear today was that we are going to make sure that if the Speaker decides to go to Taiwan, she can

do so safe. John Kirby with the National Security Council spoke with our Washington correspondent Joe Matthews. Stay tuned for more of that interview coming up shortly. The escalating tension between the US and China is impacting markets. Futures are lower and Asian stocks fell overnight. Well turned into corporate news now Nathan. Legal moves are heating up in Twitter, skates against Elon Musk and Bloomberg's Rnda Young joins us

live with the latest. Good morning, Ready down, Good morning, Karen. Twitter is probing the circle social circle of Elon Musk. Lawyers are making far reaching legal requests about his forty four billion dollar deal to take Twitter private. That's according

to legal documents obtained by The Washington Post. Now, Twitter's legal team asked for information about elite Silicon Valley investors like David Sacks and Mark and Reeson, and since some of the heavy hitters have not been named publicly in the deal, it suggests just how far Twitter is willing to go to force Elon Musk to honor the deal. Twitter is also probing Morgan Stanley, Bank of America and other banks that committed to backing the acquisition. Live in

New York. I'm really need a Young Bloomberg daybreak, all right, we need to thank you. More than forty companies report earnings today, including Uber and Starbucks. Pinterest chairs are surging nine despite results that missed estimates. The jump followed Elliott Investment Management confirming its steak as the company's top shareholder, and again Nathan futures are lower. SNP Future is down

twenty nine points. Down, futures down a hundred sixty six and Asdack futures down one ten year treasury up six thirty seconds, held two point five four percent. Try to head your latest local headlines plus a check of sports, and this is Bloomberg. Thanks on Wall Streets seventy one degrees in Central Park, overturned tractor trailer on the New Jersey Turnpike Nearks at seven A. And Michael Barr has more on what's going on in New York and around

the world. Michael Nathan, thank you very much. New York City Mayor Eric Adams defended his city's response to monkey parks as cases rise. Adams declared a state of emergency over the virus. When asked whether the city quote draw the ball and its response, Adam says, the city is simultaneously dealing with multiple issues. We're moving together, of still getting people vaccinated for COVID and still dealing with the

monkey pox that's coming in. Meanwhile, California's governor has declared a state of emergency to combat the monkey pox outbreak. More in this live report from Bloomberg's John Tucker. John Michael Nearly eight hundred cases of monkeypox have been reported in California. People getting six so far have mainly been men who have sex with men, though health officials note the virus can infect anyone. The emergency declaration in California comes after the similar one in New York State on

Saturday and in San Francisco Thursday. San Francisco City officials have said the federal government has failed to deliver enough vaccines live in New York. I'm John Tucker, Bloomberg Daybreak, John, Thank you, sir. It is primary election day today in five states. In Kansas, abortion is on the ballot, with voters deciding whether residents should continue to have the right to an abortion under the state constitution. Pro choice, Canvasser, Jackie Clapper, whatever your views are on what do you

believe restrictions or no restrictions or whatever. It's just women should be able to make that choice for themselves. However, this man supports amending the constitution taking away the right to an abortion. This isn't about abortion. It is about how do we want decisions made by a board of liberal judges with no input from the citizens of the

state of Kansas. Michigan, Arizona, Missouri, and Washington State also hold Primaries Global News twenty four hours a day on air and on Bloomberg Quicktate, powered by more than twenty seven hundred journalists and analysts and more than one hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Thank you. Michael. On Wall Street, John stash Are has the Bloomberg Sports Update.

All right, Nathan, lot of happy Mets fans as seven game winning Street kept and Jacob mcgraham on the Mountain Tonight Medicine. Washington led four three, but the game away six. Here's a drive for the year. Teth call left center, this one spot, fixt my go and it's gone up field, a three run homer to the opposite field, hit five Francisco and door. It's his eighteenth home run of the year. He is now at Reveden seven day, three runs. You see he has to call seven. Three of the final

matchers who got the win. Patrick Corbin took the loss, his fifteenth loss of the season, and now it's de Graham baseball's best picture, but so often injured his first met starting more than a year, once Soto homeward officers or in what may have been his last game with the Nationals trade deadline six o'clock, Yank, He's busy. The day before they acquired three pictures a starter Frankie Montas. He comes from Oakland with reliever Loom Trevino, and they

also added reliever Scott Frost. On the Cubs yankst and beat Seattle seven to two with the stadium second three run homeward. As many days for Anthony Rizzo came Perstiny This twenty six inning later, two run shot from Aaron Judge continues his torrid faces forty three omer two solo shots for Jose Travino. The Astros trying to catch the Yankees. They lost to the Red Sox usedon acquired catcher Kristin Vasque has from Boston and first baseman trade man Senior

from Baltimore. NBA is investigating whether the next hampered and their Sonning the free agent Jalen Brunson Arizona, QB Caler Murray Seattle coach Pete Carroll all tested positive for COVID, and Greg Norman, who runs the Lift Tour, says they offered tiger Woods about seven hundred fifty million dollars and said no. John stash Our Bloomberg stats. Wow. Thank you John seven on Wall Street. Time for the tri State

Business report with Bloomberg's d Cory American Dream. The Mall In Entertainment complex in New Jersey's meadow Lands has failed to make an interest payment that was due Monday on municipal bonds sold to help finance the venture. At eight point eight million dollar payment was due, according to a regulatory filing. Valley's has become an official sports vetting partner

with the Yankees. Marketing benefits for Valleys inside Yankees Stadium include advertising on the outfield wall that lines the playing field, field facing walls on the main level bars and left and right field, the terrorist level ribbon board and led board throughout the Great Hall. The New York State Retirement Systems on nine and a half present annual return during the fiscal year ending in March, surpassing it's long term investment target. The games came before the worst of this

year's stock market slide. They increased the value of the fund's assets to two hundred seventy two billion dollars. That's your Bloomberg Trying State Business Report. I'm Ed Corey. Thank you, Add five thirty eight on Wall Street Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I've Steve's

podas on K and X in Los Angeles. We're talking about a post pandemic slowdown at GameMaker, Actor Vision Blizzards on Courtney Donahoe. On kt r H in Houston, consumers spent more than they earned in the last six months. I'm Gina Servetti and for w b d M in Chicago, we're watching for earnings from Caterpillar. I'm Caroline Hepfilm Bloomberg, DAB Disturbed and Lonson. We've been reputting on Bump results for VP, whose coarsely profits came in one point seven

billion dollars higher than expect it. I made Corey on w w J in Detroit. I'm reporting twenty three small manufactories in Michigan have been awarded grants to help them adopt new technology. And those are some of the stories are twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion.

This editorial was written by the Bloomberg Editorial Board. After months of debate, the two hundred eighty billion dollar Chips and Science Act passed both chambers of Congress last week. Some aspects of the bill should be uncontroversial. Its proposal to boost funding for the National Science Foundation, for instance, Yet the bill also devotes an astonishing amount, some fifty two billion dollars to propping up the U S semiconductor

manufacturing industry. It's all too easy to imagine government dependent chipmakers demanding yet more handouts a decade down the line. Congress can head off this threat with some pro competitive reforms, including expanding free trade deals and scrapping tariffs. Beyond that, lawmakers must be mindful about how all this new cash is being spent and ensure that a one time splurge doesn't turn into a permanent subsidy. This editorial was written

by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or O P I N go on the Bloomberg terminal. This has been Bloomberg opinion and you can hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read more and O P I n GO future is moving lower. SMP futures down twenty eight points down, futures down a hundred fifty seven. NASTACK futures are lower by a hundred eight points ten

Your treasury yield two point. This is Bloomberg Bloomberg eleven three oh weather sunshine, but can't rule out a shower, a thundershower with a high your ninety degrees mostly sunny near nine tomorrow, mid nineties sunny, hot, humid for Thursday right now seventy one in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at, and at Bloomberg Quick Tape. This

is a Bloomberg business lash and I'm Cameron Moscow. Stocks in US stock index futures are falling him at escalating US China, at tension over Taiwan and deepening worries about a global economic slowdown, driving investors into the safety of government bonds. We checked the markets every fifteen minutes throughout the trading day on bloomberg S and P futures down twenty six points now futures at a hundred forty four

and NAS day futures down a hundred four. The decks in Germany is down six tenths of upper cent ten. Your treasury up six thirty seconds. He'l two point five four percent field on the two year is a two point eight five percent. Noimex screwed oil is down half percent or forty three cents and ninety three dollars forty six cents in barrel and comex schoold is up two tens per cent or three dollars fifty cents is s ounce. That's a Bloomberg business flash. Now here's Michael Barr with more.

I'm let's going on around the world. Michael Karen, thank you very much. President Biden says that a US air strike killed al Qaida leader. I'm in al Zaur hearing in a drone strike. The White House says the Kainda leader was essentially provided safe harbor in downtown Cobble by senior leaders of the Taliban network. How Speaker Nancy Pelosi continues her Asia trip and in a here she will

make a controversial stop in Taiwan. China warns that it would never sit idly by if Pelosi goes through with a visit to Taiwan, which Seana claims as its own. In baseball, the Yankees beat the Mariners seven to seven straight wins, where the Mats after beating the national seven three. The Red Sox and Orioles were also winners. The Giants

lost to the Dodgers. A too global news twenty four hours a day on air and on Bloomberg Quittake, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Michael Barr, and this is Bloomberg, Nathan. Thank you, Michael. It's almost five forty nine on Wall Street Live from the Bloomberg Interactive

Brokers Studios. This is Bloomberg Daybreak. I'm Nathan Hagar. The White House is seeking to dial back rising tensions with China over how Speaker Nancy Pelosi's expected visit to Taiwan. There he would make Pelosi the highest ranking US officials to set foot on the island in twenty five years. Ahead of the visit, Bloomberg's Joe Matthew Caroline Hyde and Taylor Riggs spoke with US nash Security Council spokesperson John Kirby.

He insists Pelosi's travel plans do not signal a change in the U S posture towards Taiwan, and he urged Beijing to refrain from an aggressive response. Here is part of that interview. You made clear that Speaker Pelosi has precedent for this trip and that there has been no change in US China policy. Why then, did President Biden suggest a couple of weeks ago that the US military thought this might be a bad time for her to go.

I think the President was answering her question you got from a reporter that surrounded her the context of the kinds of information we give to Speaker Pelosi before she travels. We met with her staff and with her at various levels before she made this trip to make sure that she could make the best decisions on her own. That she had all the information and context she needed, and the President was referencing that. But it is up to this speaker she gets to decide what her travel itinerary

looks like. The President respects that you mentioned the fact that there were live fire exercises conducted by China last night, and you said that the country is positioning itself to potentially take further steps in the coming days. I spoke earlier, Admiral today with Defense Secretary Mark Esper who suggested that the U. S. S. Ronald Reagan was sent to the region in case Speaker Pelosi did visit Taiwan. Is that accurate? No, Ronald Reagan UH is already forward deployed to the region

her her UH activities in the South China. See we're long planned. Um. We keep a vigilant posture in the end Pacific because we need to. But it was not related to any potential visit by Speaker Pelosi. We know, of course that you've just said that the United States has no interest in increasing tensions over Taiwan. But this does increase tensions, and what therefore do you have to do about it. I would let the Chinese speak for the degree to which they feel this is increasing tensions.

I would just remind that a Speaker of the House has gone before in the mid nineties ago though Adam, members of Members of Congress routinely go to Taiwan as is their right. UH. This doesn't if she goes, and I'm not confirming whether she will or not. It's not going to violate any sovereignty issues, It's not going to

violate territory integrity. As the Chinese spokesman alluded to. It will simply be a move in keeping very consistent with American policy now for decades, nothing's changed about our adherence to the One China policy, and nothing has changed about our commitments to helping Taiwan self defense on the Taiwan Relations Act. And the Speaker's trip is in the context of that very stable, very solid, very consistent American policy.

How do you, from a national security perspective prepare if China follow us through with what they've said of there will be consequences to this. I'm not going to speculate here or hypothesize, and I'm certainly not gonna say anything that gets ahead of where we are right now. What we said today was we're watching this very very closely, and we have indications that the Chinese might take some actions, uh in a military way, to protest a trip by

the Speaker. They can talk about what they want to do. What I wanted to make clear today was that we are going to make sure that if the Speaker decides to go to Taiwan, she can do so safely and securely. And number two, that we are able and continue to be able to meet our ample security commitments in the region responsibilities that we have. The President takes that very very seriously. But look, there's no reason for this to come to blows. There's no reason for this to erupt

into some sort of conflict. There's no reason for the Chinese to use a potential visit by the Speaker of House as some sort of pretext to escalate tensions higher than they already are. And I would remind you that in recent days and weeks, it is the Chinese side that has, through their rhetoric and their activities, including this live fire exercise, the ones that are escalating the tensions.

Abel Kirby, you have preferred a few times, as you did in the briefing today, about consultations that the administration had with Speaker Pelosi's office. Did you discuss any sort of overt actions or news conferences or any activities that that she might be reluctant to conduct while there so as to not inflame tensions. Our job is to make sure she has all the information she needs and to make sure from a security perspective that she can make

a trip wherever it is safely and securely. The Speaker decides what she's gonna do, where she's gonna go, what she's gonna say when she's on the ground. Um, we simply provided her information and context so that she can make decisions about her travel. And that was National Security Council spokesman John Kirby speaking with Bloomberg's Shoe Matthew, Caroline Hyde, and Taylor Riggs ahead of House Speaker Nancy Pelosi's expected visit to Taiwan. Today. You can catch the full interview

on Bloomberg dot Com and on the Bloomberg terminal. Karen, Thanks Nathan. It is five or day three on wall Stream Time for our daily Bloomberg Law Brief, exploring legal issues in the news. Today, we're looking at legal issues around groundbreaking drugs that prevent HIV infection. The medicine may be harder to get if a prominent Texas lawyer wins a lawsuit that pits his client's religious beliefs against free

and nationwide access to the drugs. Jonathan Mitchell, the former Republican Solicitor General of Texas, is something of a hero of conservatives in the state. He was a lawyer behind texas is strict abortion law that used an innovative tactic allowing private citizens to seek ten thousand dollar bounties on anyone who helps a woman get an abortion. For more in the matter, June Grauso speaks to Bloomberg legal reporter Eric Larson, who recently interviewed Mitchell. So now he's setting

his sights on HIV drugs. Yeah, there was a hearing in federal court in Fort Worth, Texas, in which he's trying to overturn a provision of the Affordable Care Act for preventive services. So his lawsuit takes aim really at the entire preventive services mechanism, which it covers a wide range of things from polio vaccines to pre screenings for pregnant women and children to screenings for cancer, all kinds of preventive services that are covered in no cost under

the Affordable Care Act. But in the lawsuit he takes the typic aims at a drug called prep which prevents HIV infection, sort of a groundbreaking drug that was created about a decade ago that had helped reduce the spread of HIV and as of last year, has been added to that preventive services list. So he's also taking aim specifically a prep under the Religious Freedom Restoration Act. Why

is he aiming at this drug? His clients are a few Christian owned companies and some individuals who are Christians who say that the preventive services provision in the Affordable Care Act, because PRUPP is covered in this, they believe that buying a healthcare plan or offering a healthcare plan required to cover this drug and no cost, makes them complicit in what they say is homosexual behavior and that

it violates their religious freedom. Is Mitchell just a lawyer representing his clients who happened to be conservative Christians or is he a true believer? I guess I would say it's a little bit of both. He seems to be a true believer, clearly in the conservative cause of reducing sort of the power and the reach of government and things like that. I did not get the impression that he was pushing that the particular religious agenda himself. He really did afraid as him taking on these clients who

had these beliefs. But it is worth noting that he is working on a lot of these cases that have a similar scheme of trying to rein in the reach of protections for the LGBTQ community, particularly after the Supreme Court's landmark bus Stock ruling that prohibited discrimination against LGBTQ people. They have several laws these pending in other cases that are trying to have a religious carve out for those

in various ways. And he's also affiliated with an organization called America First Legal, which of course was set up by some former Trump administration folks like Steve Miller and Mark Meadows sort of become the conservative answer to the a c l U and filed lawsuits against the Biden administration to wave off the progressive rule and laws. And that's Bloomberg the Legal Reporter Eric Larson speaking with June Garrosso.

Catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or

downloading the show at Bloomberg dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b Law Go SMP futures down at thirty one points this morning down futures down one hundred seventy one and Nasdag features down one hundred thirty and the tenure treasury up eight thirties seconds, held two point five four percent yield on the two year two point eight five percent.

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