Bloomberg Daybreak: August 4, 2022 - Hour 1 (Radio)

up a hundred million dollars for city schools. Plus, the jury is deliberating the Alex Jones defamation case. I'm Michael Bloomberg, bore ahead, I'm down stair Showard Sports Garrett Cole roughed up with the Yankee lost the Seattle the Mets one easily.

They start a big series with it went tonight. That's All's tradinghead on Bloomberg Daybreak on Bloomberg eleven, free on New York Bloomberg nineteen nine one, Washington, d C. Bloomberg one oh six one, Boston Bloomberg nine sixties and Francisco Sirius Exam one nineteen and around the world on Bloomberg Radio dot com and via the Bloomberg Business app. Good morning,

I'm Nathan Hagar and I'm Karen. Moscow and US Dock index futures are lower this morning work coming up to five o one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg S and P futures down four points down, futures down twenty three and nasday futures down sixteen. The decks in Germany's up three quarters of a percent, ten year treasury down eight thirty seconds on two point seven three percent, and they yield on the two year three point one

zero percent. Nathan Karen, The SMP five hundred enters today's session near a two month high. The tech heavy Nasdaq one hundred indexes at its highest level since early May. Corporate earnings and healthy economic data are helping to lift sentiment, and we get more from Northern Trust Bank Chief investment Officer Katie Nixon. I think we came into this really with with such low sentiment, with such a negative positioning, that we were due for a nice bounce like seen

last week and sorted into this week. But is it sustainable in the phase of a FED that appears to be hell bent on not stopping not stopping. Katie Nixon, a Northern Trust says the FED may have to reverse course sooner than expected. She says inflation is slowing meantime, Nathan the FED continues to talk tough on inflation. Minneapolis Fed president Neil cash Carry is the latest to say

it's the top priority. We are laser focused on getting inflation down and um, you know, whether we are technically in a recession right now or not, it doesn't change my analysis and focused on inflation and where inflation is likely going and that is going to be. That to me is what we have. My opinion is what we have to focus on right now. Neil cash Carry says a FED rate cut next year is quote a very

unlikely scenario. The monetary policy is also in focus overseas Karen as the Bank of England gets set to hike interest rates a few hours from now. We get a preview from Bloomberg's Lizzie Burden in London. I'm England rate rise today is all but a dune deal. The debate surrounds whether the UK Central Bank will is Bloomberg Economics expects hike by a half point for the first time

in its independent history. The decision comes against the backdrop of inflation that's not only it's a new forty year high, but headed toward double digits in the fall. Officials are also expected to provide more detail on active quantitative tightening. In London, I'm Lizzie Burden Bloomberg Daybreak, Lizzie, thank you. Turning to politics. Now, Finland and Sweden are getting a boost in their bid to join NATO. The US Senate has now ratified their membership and the Alliance. Bloomberg's and

Bachelor has the story. The intention is to bolster NATO after the Russian invasion of Ukraine. The vote pretty amazing in a body that hasn't been able to agree on much of anything. The vote to one far exceeding the two thirds majority required. Now Finland will join Estonia, Latvia, Lithuania in Poland, as NATO country is a share a land border with Russia. Turkey has been on and off about the idea and could still try to block the move.

Majority leader Chuck Schumer says Putin has strengthened NATO. In San Francisco, I'm at Baxter Bloomberg Daybreak, All right, and thank you. Let's starn to corporate news now, where Tesla is in focus. The electric carmaker holds it's highly anticipated shareholder meeting today. We get a preview from Bloomberg's Tom Busby.

The automaker calls its annual shareholders meeting a cyber roundup, and this year, the biggest item on the roundup agenda is the proposed three for one stock split, which would be the second one in as many years for Tesla, after a five for one split in August of twenty Now, the idea is to make shares, which will begin the trading day just about nine hundred twenty two dollars apiece, more affordable to small dollar retail investors and retail options traders,

not just institutional investors. Tom Busby, Bloomberg Daybreak, All right, Tom, thank you well. Elsewhere on Wall Street, the wave of corporate downsizing continues. There's where now that Walmart is cutting about two d corp are jobs, and we get the details from Bloomberg Charlie Pellett. The retail giant is contending with rising costs, blow to inventories, and weakening demand for

general merchandise. Sources say the company will also be adding an unspecified number of jobs in areas such as e commerce, health and wellness, supply chain, and ad sales. Walmart is tightening its spelt a week after slashing its annual profit forecast for the second time in less than three months. American consumers are buying less clothing and durable goods as soaring inflation raises the cost of food and basic items. In New York. Charlie Pellet Bloomberg debreak, all right, Charlie,

thank you. Coming out today. The earnings parade continues, with fifty companies reporting. Among them is Lift, which comes on the heels of Uber. Is better than expected results, but Lift is not Uber. Bloomberg's Jeff Palinger explains Lift executives may lower the company's full year guidance during their conference call. Bloomberg Intelligence as censored tower data indicates competition with Uber

has been fierce. Downloads of the Lift app decline year over year, and the increase in the number of monthly active users paled in comparison with Uber. The I speculates Lift may seek partnership similar to Amazon grub Hub to increase trip frequency. Jeff Bullinger, Bloomberg Daybreak. Thanks Jeff. We are seeing some stocks on the move this morning following earnings. We get the latest live at the Bloomberg's John Tucker, John Gole morning and Tarran earnings guidance from Chlorox fell

well short of analyst estimates. Shares it down six percent pre market if the company gave weaker than expected guidance for fiscal year three. The shares are the mobile games company Skills tumbling of the pre market. There down twelve percent. They cut their full year guidance for revenue as shares of Lucid sinking thirteen percent after the luxury electric vehicle

startup cut in half this year's production target. Luccent Enhances been dealing with supply chain snags and resulting production hiccups. Live in New York. I'm John Tucker, Bloomberg Daybreak. All right, John, thank you. SMP futures down four points down, futures down twenty seven. Nasdack futures are lower by seventeen points. The tenure treasury is down eight thirty seconds, the yield two

point seven three per cent. Straight ahead, we have your latest local headlines and a check of sports You're listening to Bloomberg Daybreak at five oh seven on Wall Street where seventy seven degrees in Central Park. We've got an accident investigation closing the main road to the g WB and Fort Lee. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world, including rising tensions in the Asia Pacific. Michael,

that is correct, Nathan. China says it has conducted precision missile strikes and the Taiwan Straight as part of military exercises in six zones arounding the island. The drills were prompted by a visit to the island by outspeaker Nancy Pelosi this week. China earlier this week warned airlines to avoid danger zones around Taiwan. It is going to be a hot one in the New York area. Bloomberg meteorologious

Rob Caroline has the latest. Good morning, Michael. The Bermuda High is going to set the Tri state area up for some warm weather over the course of the next several days. In fact, that it's looking like the first

half of August is going to be on the warm side. Today, the city and the surrounding area is close to ninety, but it feels more like a hundred with the humanity and that's why that heat advisories and effect when the nineties again tomorrow close to nighties, Saturday and Sunday, Michael Thanks. New York City Mayor Eric Adams pushed back against criticism that is continual focus on crime at press conferences is feeding into an overblown narrative that the city is unsafe.

Incidents of violent crime remain at historic lows in the city, but seventy percent of New Yorkers said crime was a very serious problem in a February poll. Adam spoke at his news conference yesterday, the numbers continue to trend in the wrong direction, continue to show that these repeated offenders are coming out. It would be irresponsible of me to ignore what is happening right now on our streets every day,

every day was seeing this dangerous people repeatedly committed these actions. Meanwhile, Mayor Adams is freeing up one hundred million dollars in federal stimulus money for New York City schools. It comes after an outcry among parents and some educators over the city's plan to cut hundreds of millions of dollars in

funding for city schools in the current fiscal year. Conspiracy theorists Alex Jones says he was irresponsible to declare the Sandy Hook Elementary School massacre of hoax d cent real as a se regular shame as I said, it's real. The jury and Austin, Texas began deliberating on how much the Info Wars host owes the parents of one of the children who were killed in the twenty twelve attack

in Newtown, Connecticut. Testimony wrapped up after a bombshell from the plaintiffs lawyer revealed that Jones's lawyers mistakenly handed over two years of tax messages from Jones's phone. Names twenty four hours a day on air and on Bloomberg Quickdake powered by more than twenty seven hundred journalists, analysts more than a hundred twenty countries, and Michael bar this is

Bloomberg Naked. Thank you, Michael. Almost five ten on Wall Street time for the Bloomberg Sports Up taken morning, John Stenshower, all right, good morning. Nathan and Mets added some players before the trade deadline, maybe not big names, although their new left handed hitting d h is a big guy. Daniel boga Back generously listed at two hundred and seventy pounds.

He came up in the fifth in eat in Washington two on the way from Williams and vocal Back gets one of the area along the right field line back toward the corner, but that goes Polaso side and it's out of here. A cran swam for Daniel foco Back his first home runs a man at his scores four at the s n Y Collum that's took a nine nothing lead of the ninth and anyother New metas well Leaver and Michael Gibbons. He made his Mets debut. It did not go well. He got just two outs, gave

up five runs. Mets beat the Nationals nine to five. They've won eight of the last nine at at the lost, which means the Big Mets Braves. Five game series that against to Nighted City Field starts with the Mets three and a half games ahead. Stadium Seattle beat the Yankees seven to three. Did almost all the damage top of the first getting six runs on three Mariners home runs

off Garret Cole. Second time this season he has served up three homers in the first of Seattle, just the fourth opposing team to win a series in the box and what could hardly be called a surprise. The NFL will appeal the ruling on that Shaun Watson suspension for

sexual misconduct. The independent arbitrator called for it to be six games, but the appeal process has agreed to by both sides, and the labor deal calls for the Commissioner, or at least someone designated by Roger Goodell, to be the one to rule on the appeals of the NFL appealing to themselves. They would then be allowed to make the suspension longer. Players Association may then follow with a lawsuit.

John Stash that were Bloomberg Sports, Nathan thanks John SMP futures down down three points, Sound futures down twenty seven nastack futures lower by twelve points. The tenure treasury is down eight thirty seconds yield two point seven three per cent. This is Bloomberg Bloomberg eleven three. All weather will be under a heat advisory later this morning until eight o'clock tomorrow night. His your today and tomorrow uper eighties chants

for showers and storms by Saturday. Right now seventy eight in Central part markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quicktake. This is a Bloomberg Business lash, but I'm kerin Moscow. Stocks holding modest gains as investors assess the corporate profit al look, while wagers on further

Federal reserve interest rate hikes lifts Treasury yields. US stock index futures are a little changed after stocks yesterday snapped two day to clawin. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SNP futures as well as NASDAC and Dow futures are all that will change. The decks in Germany is U three quarters of a percent, the ten year treasury down six thirty seconds, YELD two point seven two percent, the yield

on the two year three point oh nine percent. NIMEX scrude oil is down to tens of upper cent or fifteen cents and ninety dollars fifty one cents of barrel comex gold of one percent or seventeen dollar seventy cents is seventeen ten an ounce. The Euro one seven against the dollar, British pound one point to one six seven and the yen one thirty four point three three and looking at Bitcoin down two percent at twenty two eight hundred fifty dollars. 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. Here in China is staging live fire military drills and six self declared zones around in Taiwan, and is in response to a visit by US how Speaker Nancy Pelosi to the island Beijing claims as its own territory. The Senate ratified adding Sweden and Finland to NATO move and tended to bolster the military alliance after

Russia's invasion of Ukraine. Closing arguments in w n B, a star Britney Grinder's cannabis possession case in Russia are set for today. In baseball, the Mariners beat the Yankees seven three, the Mets beat the Nationals nine five, the Red Sox and Giants lost the Orioles, and A's one Global Needs twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts in more than one twenty countries. Sow

Michael Barr and this is Bloomberg Navan. Alright, Michael, thank you. It is five nineteen on Wall Street live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and five nineteen means we are about one hour and forty one minutes away from a policy decision from the Bank of England. In just that stretch of time, we find out if the bo E joins the long list of countries fighting

inflation with more aggressive interest rate hikes. Ahead of that, we're joined by Dan Hansen, senior UK economist at Bloomberg Economics. Dan good Morn think the consensus is that the BOE will go ahead with a fifty basis point hike. But after the last several months of smaller increases, what are the chances we get another downside surprise? Oh, good morning. So I think I think the chance of a downside

surprise quite low. Actually, I think I think that the bank has set itself up self up for this for this big move. If you remember, back in the middle of July, Andrew Bailey in his mention how speech put a fifty basis point point hike firmly on the table, and I think they're going to follow through today. What's the risk that fifty basis point hike brings the UK closer to a recession or is the UK in a

recession already. That's a really good question. I mean, I think the big thing in the UK at the moment is this cost of living squeeze. So we've got sky high inflation and incomes just aren't keeping keeping up. And I think what the Bank's doing, it's it's doing its best to keep inflation at expectations in check um, and that's why we're seeing these this move towards a faster

pace of rate hikes. I mean, answer to your question directly, I don't think we're in recession just yet, um, but there is a significant risk of it, particularly around the turn of the year. And actually that will be one of the things we'll be watching for the bank. From the Bank today, I should say they're they're gonna be putting out new forecasts and it's it's possible a forecast

or recession in the near term. Yeah. There's a debate here in this country, of course, about whether inflation expectations are moving toward a situation where we're seeing less less inflation now that federal reserve policy is starting to have an impact. Is the situation a little different in the UK now? Is inflation getting more entrenched? Yeah, So there's been a few surveys recently that suggested the expectations have

drifted higher. I mean, one thing about the UK as well is that we're likely to get a peak of Our peak for inflation is likely to come a little bit later, and that's to do with the way energy prices are set. So we're we're likely to see our peak for inflation in towards the end of this year, probably in October, and it will be likely in double digits as well, so probably around twelve so probably a

higher peak than the US as well. So that's one reason to think that the Bank of England's going to keep its foot on the break and continue tightening just until it sees sees through the peak and sees sort of strong evidence that inflation is coming back down, which is only really likely to happen sort of in the middle of next year, given that you're expecting that we could see a forecast for recession from the b o E later this morning. How has the bank's outlook panned

out in the past. I mean, there is some concern that the b o E has been behind the curve when it comes to tackling this cut stuff having crisis. Now, yeah, that is true. That is something that has been leveled at the bank. I mean, one thing I'd say in their defense is that they started tightening earlier than other advanced economy central banks, so they do have that in

their favor. And I also think that neutral rate in the the UK, so the rate that sort of neither speeds up nor slows down the economy is a little bit lower as well, so they've probably they're probably closer to that level than certainly the e c B is um and we know the Fed is sort of thinks

it's around that level now um. But I think certainly on the forecast they've been hugely surprised when inflation um and they've if you look back sort of even a year ago, they were thinking the peak for inflation was going to be around four percent, and I think today they'll probably say it's somewhere close to twelve percent. So that's that's a pretty big forecast there, along with the

rate high decision. We're also expecting to get a little bit more clarity on what the bo he is going to do about its balance sheet in our last minute here Dan, what are the expectations there? So what the bank has done is it it's it's sort of taking a two step process. So the first thing it did in February was end reinvestment of government bonds, so when when the guilts redeem, they don't reinvest those proceeds. And

they've been they've been doing that since February. Well, they're gonna start doing now or I should say, set out more detail on how they will go about active sales um and we'll be looking for that today. I mean, as I say it will be it will be more around the detail. It won't be around um. They won't have any sort of votes on it, and that's going to come probably in September, possibly a little bit later.

But we'll just be looking for looking for the pace and how quickly they they're going to reduce their balance sheet. Andrew Baby sort of set expectations that they think it will be somewhere between fifty and a hundred billion pounds in terms of the reduction, the annual reduction in the balance sheet in the first year of QTI. Thanks for this, Dan, good having you on where it's ahead of the b o E decision. Dan Hanson is senior UK economists for

Bloomberg Economics. Right now, SMP futures are a little changed, so are down futures. They're down two points DANCED futures down one point turn. Your treasury is down seven thirty seconds. The yield two point seven three percent. The yield on the two year three point one zero percent. This is Bloomberg Bloomber eleven three oh weather. Lots of sunshine, hot humid today going up to your ninety five degrees will be underheat advisory till eight pm tomorrow, low nineties tomorrow

upr eighties Saturday. Right now seventy seven in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C, Bloomberg ninety nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine six to the country, Sirius xm che and around the globe the Bloomberg Business at and Bloomberg Radio dot com. Or this is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hager

and I'm kerin Moscow. We are just about four hours away from the open of US trading. Let's get you up to date in the news you need to know at this hour. The SNP five hundred enters this session near a two month high. The tech heavy NASDAC one hundred index is at its highest level since early May.

Corporate earnings in healthy economic data has helped to lift sentiment, but Alifa Dory Walla, managing director at Rock Creek, says she's still cautious there could be another severe downturn, another leg to go in the SNP, and a lot of that is some of the big tech companies that could continue to get hard because of the strong dollar and what will happen to earnings in the coming orders if that strong dollar remains. Rock Creeks Alifa Dore Wallace says

the recent pivot into tech might be short lived. Meantime, Karen Feed officials continue talking tough on inflation. Minneapolis President Neil cash car He says the Federal Reserve will keep doing everything in its power to cool inflation. Some financial markets are indicating that they expect US to cut interest rates next year. Uh. I don't want to say it's impossible, but it seems like that's a very unlikely scenario right now,

given what I know about the underlying inflation dynamics. The more likely scenario is we would continue raising and then we would sit there. Neil cash Cary says, whether the US is technically in recession right now or not, his analysis doesn't change well, Nathan. Monetary policy is also in focus overseas. The Bank of England gets set to hike interest rates in a few hours from now, and could

raise rates fifty basis points at today's decision. Back in Washington, Karen the Senate has ratified NATO membership for Finland and Sweden. Senators voted to one in favor of the move. And on Wall Street, it's all about corporate news. This morning. Nathan Tesla is holding its annual shareholder meeting, where leadership will discuss the three for one stock split, and the wave of corporate downsizing shows no signs of slowing. Walmart

is the latest company making the moves, cutting about two jobs. Man, We're seeing some stocks on the move this morning, following yesterday's earnings. Let's get that live from Bloomberg's John Tucker, John and Nathan Losid Group falling as much as percent after the luxury electric vehicles startup slashed its production target.

This is the second time the California based Geno has reduced its output gold this year, Skills dropping pcent this morning, have the mobile games company cut its full year guidance for revenue and Clorox tumbling after its earnings guidance fell well short of analysts estimates. Sales moderated, higher costs for commodities and transportation have eroded the company's profitability. Live in New York, I'm John Tucker, Bloomberg, debreak. All right, John,

thank you. In futures are a little change this morning. Tenure Treasury down seven thirty seconds, you know, two point seven three per cent, straight ahead, your latest local headlines plus a check of sports, and this is Bloomberg. Thanks. Hearing three on Wall Street seventy eight degrees in Central Park at a crash east bound cross Bronx to Jerome Avenue, and Michael Barr has more on what's going on in New York and around the world. Michael, thank you very much. Nathan.

China says it conducted precision missile strikes in the time on straight today as part of military exercises. The drills were prompted by a visit to the island by All speaker Nancy Pelos. You This week, speculation rises about China's threat to attack the self governing island Republic. Heat advisory is in effect for the tri state area because of dangerously high and human conditions. Today's high in New York

will be around ninety four. New York City Mayor Eric Adams says he's freeing up about a hundred million dollars in federal stimulus money for the New York City schools. It comes after an outcry from among parents and some educators over the city's plan to cut hundreds of millions of dollars in funding for city schools in the current fiscal year. Conspiracy theorist Alex Jones now concedes the massacre at Sandy Hook Elementary School in was one real. Jury

is now deliberating Jones's punishment in a defamation case. The parents of a six year old victim of the shooting successfully sued the Info Wars host, proclaiming the shooting was a hoax. During testimony, while Jones was on the stand, there was a startling revelation from the lawyer of the parents, Mark Bankston, accused Joe Ownes of lying and trying to

hide evidence, including about text messages about Sandy. Look twelve days ago, your attorney's messed up and sitting an entire digital copy of your entire cell phone with every text message you've sent for the past two years, and when informed, did not take any steps to identify it as privilege or protected in any way, And as of two days ago, it fell free and clear in the my possession. And that is how I know you'd vibe to me when you said you didn't have to text message about saying

did you know that I see? I told you the truth. This is your perimason moment, Attorney Mark banks Since as Jones has made the lives of the parents a living hell. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than the twenty seven hundred journalist and analysts in more than a hundred twenty countries. I'm Michael Barr, and this is Balloomberg. Nathan.

Thank you, Michael. On Wall Street Time the Bloomberg Sports Update with John Sire Thanks Dathan Garic goals the Yankees as when the playoffs begin, he'll undoubtedly be on the mount. He's at an All Star season, but he's had a few clunkers. That was the night in June in Minnesota when for the first time of the career, Coal gave up three home runs in the first inning. It happened

again yesterday at the stadium. Three run over your Genio Suarez solo shot for Carlos Santana to run blast by the Maryor's Jared Kallinik, the former Mets farman who's betting one thirty three. Coleman settled down with Seattle one seven to three, and cole was asked about the first inning. I have a pretivid recollection. I think it's sometimes easier to remember about stuffs stuff, you know. But there were

some fad pitch selections. There was some bad pitches, um and uh, you know, we got punished for it again. Luis Castillo got the win in his Mariners debut. He also beat the Yankees in the Bronx. It's a few weeks ago while he was with the Reds Yanks off tonight in St. Louis tomorrow, but Mets tonight host Atlanta at the start of a huge five game weekend series, will play a doubleheader Saturday off Either team wins say

four of the five. That's the three game swing. The Mets currently three and a half games ahead of the Braves. They won in Washington nine to five. Daniel Vogelback's first met homer was a grand slam. The game was nine nothing before the Gnats scored five of the night. Phil Nicholson, one of eleven golfers who joined the New Live Tour, now suing the p g A for antitrust violations. The NFL just hit the Dolphins took away their first round draft pick for tampering trying to acquire Tom Brady. The

tampering began not when Brady was with Tampa Bay. It goes back to two thousand nineteen, while Brady was still with the Patriots. Bill Belichick asked about it yesterday, declining Tom John Stasha were Bloomberg Sports Nathan thanks John seven on Wall Street Time for the Tri State Business Report. Here's Bloomberg's ed Corey Capital One is expanding its offices on Fifth Avenue, even as other companies reconsider real estate foot prints amid concerns about an economic downturn and the

increase in remote work. The banks expanding across three full floors at one fourteen Fifth Avenue. The State of New York claims Tyson Foods is resisting demands to provide information for an investigation into whether the meat producer engaged in price gouging during the pandemic. Attorney General Letitia James is ordering a special court proceeding the force Tyson to turn

over the information. New Jersey restaurants received a two year extension for operating outdoors, something Governor Phil Murphy says remains necessary to boost small businesses. Restaurants will be able to continue using tents and other fixtures on sidewalks, in parking lots and elsewhere. According to legislation signed Wednesday that your Bloomberg Drives Day Business Report. I'm Ed Corey, Thanks a

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'm Steve podas Kin on wf A Tampa Bay. We're talking about layoffs in Tampa as Shriner's Hospital for Children closes a facility. M Courney, Donahoan kat r H in Houston. Americans are driving less than they did during the high of the pandemic. I'm

Gina Servetti in for w BBM in Chicago. I'm reporting that Citadel founder and billionaire Ken Griffin has been added to the list of those that Twitter has subpoenaed in its effort to force Elon Musk to complete his purchase of the company. I'm Caroline Head killed Bloomberg Dad Dishwadium in London. Willow King ahead to the Bank of England's decision as Britain's energy regulator moves to four price rises per year from two. I'm Ed Corey on w w

J and Detroit. I'm reporting officials in the area have shut down an automotive plan, saying it was releasing cancer causing chemicalton to the Uron River. And those are some of the stories our twenty hundred Bloomberg journalists and analysts are working on this morning. 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 a year of democratic backsliding, Tunisia went over the edge last week when President Caius Said institutionalized his rule with a referendum on a new constitution that gives him near absolute power. The outcome of the vote was never in doubt, having already suspended Parliament and secured the support of the military. The autocratic side had further tilted the playing field by

jailing opponents and muzzling the media. Most Tunisians demonstrated their disapproval by turning their backs on the process. More than two thirds of those eligible opted not to vote, and his economic conditions continue to worsen. With the worldwide slowdown, site can expect little patients from young Tunisians. The next upheaval may not be long in coming. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or 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 at O P I n Go. Future is moving higher on this Thursday morning. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather highs near nine five today with a heat advisory kicking in and lasting till tomorrow night. Low nineties. Chance for afternoon showers and storms tomorrow will be in

the oper eightings by Saturday. Right now seventy eight degrees, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quicktake. This is a Bloomberg Business flash and I'm Karen Moscow. And stocks are nudging higher as investors assess the corporate profit outlook, while wagers on further at a reserve. Interest rate hikes lift treasury yields and futures are little changed.

We checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P futures up about four points now, futures are up eighteen and NAS day futures up twelve. But i'll pretty much a little change to higher now. The decks in Germany is up nine tenths of a percent and your treasury down five thirty seconds yield two point seven two percent of the yield on a two year three point nine percent NIMEX Screwed oil is up sixtensive upper cent or fifty five cents and

ninety one dollar twenty one cents of barrel comes. Gold up one point one percent or eighteen dollars sixty cents at seventeen ninety five announce. The Euro one one nine five against the dollar, British bound one point two one seven four the one thirty four point one five, and bitcoin is down two percent. It's a twenty two eight hundred fifty 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. How speaker Nancy belows you've met with South Korean counterparts and sold to reassure it's wrong alliance between the two countries. It comes as China's military conducted military exercises around Taiwan in response to Belosi's visit. Flags are at half staff at the US Capitol after an Indiana congresswoman was killed in the car crash. Republican Jackie Willorski, who was fifty eight, died in the accident in northern Indiana along with two of her staffers.

In baseball, the Mariners beat the Yankees seven three, the Mets beat the Nationals nine five, The Red Sox and Giants lost the Orioles and A's one Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts, are more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan all right, Michael, thank you, or just about at five forty nine on Wall Street Live

from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and Bloomberg Government Congressional reporter Jack Fitzpatrick is with us from our Bloomberg studios in Washington, d C. As we continued to my under developments around how speaker Nancy Pelosi's trip through Asia. As Michael bar just mentioned, the speaker is now in South Korea, but a lot of attention is still around Taiwan with China now conducting live fire missile drills. Jack, good morning. What is the reaction to

what is happening between China and Taiwan. Now, well, it's a very significant reaction. As you said, there are the missile drills that China is conducting, uh that we haven't gotten exact update on how long they're going to go, but the original estimate was they were going to go through Sunday, So that could continue and continue to be a disruption uh, potentially for flights into Taiwan or out of Taiwan, another activity around there. And then of course

the congressional reaction is also a significant one. There has been a pushback from the White House uh, towards a bill that would treat Taiwan as a non NATO ally of the US, essentially formalizing the relation and ship that's

already there. Uh. That was supposed to get a committee vote in the Senate yesterday, that got pushed back, and if if they continue working on it, maybe even having to rewrite it is at least delayed because of White House concerns about the message that that would send, delayed until at least after the August recess for Congress. So politically some ramifications here, uh, And of course the Chinese

response is a very significant one. What is the White House pushed back to this idea of designating Taiwan as a non NATO ally. I mean they've basically been treated that way for decades, right, yes, yeah, this would essentially formalize the relationship that has existed already. The issue seems to be, uh, the timing how we communicate that. That's not the only thing in the bill, it does seem to be the most objectionable part of it to the White House, there's a there are a few billion dollars,

but four and a half billion dollars in security AID. Um. You know, it seems the issue is less the US relationship with Taiwan and the timing of putting forth legislation, uh, formalizing that on the heels of this trip by Nancy Pelosi to Taiwan at a time when China is uh, the Chinese government is pushing back as hard as possible on that and trying to send a message. It seems like this trip by Pelosi has sort of left some

daylight between her and the White House. How much of a rift is there now between the Speaker and the President. There definitely seems to be some frustration, uh, you know, on on one hand, the President has been asked about this a while back. He said, Look, the military had said that they didn't think this was a good idea, that they had concerns. It may not just be a

Nancy Pelosi and Joe Biden issue. It could be really between Pelosi and more the administration's security apparatus, the military leaders who had concerns about this. We don't necessarily have uh feedback that Biden himself is outraged by this necessarily, but there are a lot of people who had had a lot of chores to do. I guess you could say, based on Pelosi deciding to make this trip on her own,

this was her decision. It was not really supported uh necessarily by the Biden administration, and that has um if not, created a rift. Clearly they've had to openly discuss their differences on how to approach this. All right, and we'll continue watching as a speaker Pelosi continues making her way through Asia Bloomberg Government Congressional reporter Jack Fitzpatrick, thanks for joining us to get us the very latest on that, Karen. But it's five fifty three on Wall Street. It's time

for our Bloomberg Law Report. We get to the legal stories. We're watching this morning from Bloomberg's Joan Donneger. Republicans in Congress are seizing on the nonpartisan analysis of the Democrats Inflation Reduction Act to claim it would raise taxes on people making as little as ten thousand dollars a year. The plan includes a fifteen percent corporate minimum tax, which would not raise lower and middle class taxes, but could

see companies past those costs. On x On Mobiles lost its fight to claim a one and a half billion dollar tax refund from the i R S and golfers led by Phil Michelson are suing the p G A charging at broke anti trust law by trying to crush the Saudi back to live golf tour. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg market Intelligence. Find out more at Bloomberg Law dot com. All right, Joan, thank you. Now. Another

legal story that we're watching. It's the longest sentence yet for one of the capital rioters. A judge sentence sky Refit, a member of the Exist three per centers group, two more than seven years in prison for obstructing Congress and threatening his two children to keep them quiet. Refit's case attracted widespread attention because he was turned in by his son, who then became the government's star witness against him. For more Bloomberg, jun Grosso speaks to Jimmy Garoule, her professor

had notre Dame law school. Raffit argued for no more than two years in prison, saying most, if not all, defendants who received longer sentences had committed far worse crimes like assaulting police officers. And it's true that a man who pleaded guilty to assaulting a police officer with a fire extinguisher got five years, which was the longest sentence before Refits. I think there are a couple of aggravating

factors here with respect to Refit. One is that when he traveled from Texas to Washington, d C. To participate in the insurrection, he brought with him a a R fifteen style rifle and a forty caliber semi automatic handgun.

She was armed with a weapon. And then he participated in obstruction of justice with respect to the threats directed at his children that if they cooperated, if they disclosed his activities to law enforcement, that they would be considered traders in his words, and everyone knows what happens to traders, you know, he stated, so if the implication was that he would kill his children, yeah, I think the judge

took note of that. Prosecutors and defense lawyers were watching this trial to see how the obstruction charge would hold up because it's rarely used, but it's central to the cases that are coming up. Well. Instruction charge here is unique because the focuses on the congressional proceedings and the certification of the electoral votes, and this was an attempt

to interfere with that process. Here, the evidence was compelling because was based largely on his own words communicated through tech messages, emails that clearly indicated what his intent was. I'm wondering if the judge was sending a message when she said a message to others when she said that his sentence would have been two years less if he had pleaded guilty. I think that's implicit. I think that there was certainly that message sent by the judge as

well as a message being sent by the prosecution. Again, the prosecution was seeking a sentence of fifteen years in prison, and here, while the judge didn't post such a severe sense, it still was a significant sentense a little over seven years, and so I'm certain that other defendants, other individuals that were involved in the January six insurrection are taking note.

I think the lawyers representing them are taking note. And the question is, you know, do we want to run that risk of going to trial, being convicted of multiple felonies, facing the prospect of spending several years in prison, or is the better course to inner a guilty plea, cooperate with the government and receive a much lighter sent Ye and as Jimmy ger Rule are professor at Notre Dame

Law School speaking at the Bloomberg Student Grosso. Catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast. Are downloading the show at Bloomberg dot com slash podcasts. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at the Law Go and futures this morning are well. They're extending their

gains now. SNP futures up six points, now futures up twenty seven and NASDAG futures are up twenty four and the ten year Treasury down six thirties seconds, yield two points seven two still ahead. On Bloomberg Day, Brea I can check on the business headlines and all the news you need to start your day, and this is Bloomberg