Bloomberg Daybreak: August 4, 2022 - Hour 2 (Radio)

up a hundred million dollars for city schools. Plus the jury is deliberating the Alex Jones defamation case on Michael Bloomer or Ahead, I'm down stair, Shower and sports. Garrett Cole ropped up at the Yankee lost in Seattle. The Mets wan easily. They start a big series with it

went tonight. That's all s tradyhead on Bloomberg, Daybreak on Bloomberg eleven, Free on New York, Bloomberg nine one, Washington d C Bloomberg one oh six one, Boston Bloomberg nine sixties and Francisco Sirius XAM one nineteen and around the world. Bloomberg Radio dot com and via the Bloomberg Business app. Good morning, I'm Nathan Hagar and I'm Karen Moscow and US futures are higher this morning. We're coming up to

six o one on Wall Street. Have we checked the markets every fifteen minutes throughout the trading day on Bloomberg right now, WESTNP futures they're up about seven points down, futures up thirty one, and NASDAG futures up twenty six. The decks in Germany is up one percent. Tend your treasury down six thirties seconds. You on two point seven two percent, and they yield on the two year three point oh nine percent. Nathan Karen the SNP interns today's

session near a two month high. The tech heavy NASDAC one indexes at its highest levels since early May. Corporate earnings and healthy economic data are helping to lift sentiment. 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 we've 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 the Northern Trust says the FED may have to reverse course sooner than expected. That's because she says inflation is slowing. Meantime, Nathan the FED continues to talk tough on inflation. Minneapolis Spent President Deal cash Curry 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 recession right now or not, it doesn't change my analysis and focus 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 car Is has a FED rate cut next year is quote a very unlikely scenario. Well. Monetary policies also in focus overseas, Karen Is.

The Bank of England gets set to hike interest rates. In just about one hour, we get a preview from Bloomberg's Lizzie Burden in London. I'm England rate rise today is all but a done deal. The debate surrounds whether the UK Central Bank will is Bloomberg Economics expect 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. All right, Lessie, thank you all. 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, and Bloomberg said, 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 of 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 thanks. Let's turn to corporate news now, where Tesla is in focus.

The electric car maker holds its highly anticipated shareholder meeting today. We get a preview from Bloomberg's Tom Busby. The automaker calls it's 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 and 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 above nine twenty two dollars apiece, more affordable to small dollar retail investors and retail options traders, not just institutional investors. Tom Busby, Bloomberg Daybreak Rank Tom. Thank you. Elsewhere on Wall Street today, the wave of corporate downsizing continues.

There's where now that Walmart is getting about two hundred corporate jobs, and get the details from Bloomberg's Charlie Pellett. The retail giant who 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 belt 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 storing inflation raises the cost of food and basic items in New York. Charlie Pellock, Bloomberg Daybreak, Thanks Charlie, coming up today. The earning spread continues fifty. Company's report, including Lift on the heels of ubers better than expected results, but Lift is

not Uber. Bloomberg's Jeff Fellinger explains Lift executives may lower the company's full year guidance during their conference call Bloomberg Intelligence, as censor tower data indicate competition with Uber has been fear. Downloads of the Lift app decline year over year, and the increase in the number of monthly active users paled in comparison with Uber. B I speculates Lift may seek partnership similar to Amazon grub Hub to increase trip frequency.

Jeff Bollinger, Bloomberg Daybreak, All Right, Jeff, Thank you. While we are seeing some stocks on the move this morning following earning, so we get the latest live with Bloomberg's John Tucker, John and Karen. Earnings from guidance from Chlorox fell well short of analysts estimates. Shares were down six percent after the company gave weaker than I expended guidance for fiscal year three. Shares of the mobile games company Skills tumbling at the pre market there down with eleven percent.

They cut their full year guidance for revenue, and shares of Lucid sinking twelve percent after the luxury electric vehicles startup cut in half this year's production target. Lucid has been feeling with supply chain stags and resulting production hiccups Live of New York. I'm John Tucker, Bloomberg Daybreak. All right, John, Futures are getting some traction at the moment. S and P futures right now have ten points. Stout futures up

forty seven. Nasdaq futures are gaining fifty points. The tenure treasury is down six thirty seconds. The yield two point seven to yield on the two year three point one zero straight ahead. Your latest local headlines in the check of Sports. This is Bloomberg. Sus SO seven on Wall Street were at seventy eight degrees in Central Park, getting ready for the heat advisory to kick in later this morning. Michael Barr has more on what's going on in New

York and around the world. Good morning, Michael, Good morning, Nathan. China says it has conducted precision missile strikes and the Taiwan Straight as part of military exercises surrounding the island. China test fired eleven missiles into the seat. The drills were prompted by a visit to the island by House speaker Nancy Pelosi this week. Beijing earlier warned airlines to avoid danger zones around Taiwan. As you mentioned, Nathan, it's going to be a hot one in the New York area,

Bloomberg needed religious. Rob Rreland has the latest. Good morning, Michael. The Bermiera 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 areas close to nine, but it feels more like a hundred with the committee, and that's why that heat advisories and effect when the nineties again tomorrow close to NIGHTTI, Saturday, and Sunday, Michael rob 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. Adams spoke to reporters yesterday. The numbers continue to twin 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 schools. It comes after an outcry among parents and some educators over the city's planned gout hundreds of millions of dollars in funding for schools in the

current fiscal year. Conspiracy theorist Alex Jones says he was irresponsible to declare the Sandy Hook Elementary School massacre hoaxcent real as a sub regular stay and as I said here real Jerry in Austin, Texas began deliberating on how much the Info Wars host owes the parents of one of the children killed in the attack, and Newtown, Connecticut testimony wrapped up after a bombshell from the plaintiffs lawyer revealed that Jones's lawyers mistakenly handed over two years of

text messages from Jones's phone. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than one hundred journalists and analyist and more than a hundred twenty countries. Michael bar this is Bloomberg. Thank you, Michael. It's almost six cent of all street time for the Bloomberg Sports update. Here's John Shower. All right. Nathan and Mets added some players before the trade deadline. Maybe not big names, although their new left handed hitting

d h is certainly a big guy. Daniel Vogelback generously listed a two hundred and seventy pounds. He came up from the fifth in end and Washington two on the way from Williams and boge Back gets one of the area along the right field line back to where the cornerback goes. Colosio said, it's out of here a crans swam for Daniel foco Back. His first home was a met at his scores four and had to call on s n Y. Mets took a nine nothing lead to

the ninth inning. Another new Mets reliever, Michael Gibbons, he made his Mets debut. It did not go well, got just two outs, gave up five runs, but the metstreet the Nationals nine to five. They've won eight of the last nine Atlanta loss, which means the Big Mets Braves five game series that begins Senetta City Field starts with

the Mets three and a half games ahead. At the Stadium Seattle bet Yankee seven to three, did almost all the damage top of the first, sitting six runs on three Mariners home runs off Garrett Cole, the second time this season he has served up three homers in the first so Seattle just the fourth opposing team to win a series in the Bronx and what could hardly be called a surprise the NFL will appeal the ruling on

the Deshaun Watson suspension for sexual misconduct. The independent arbitrator called for it to be six games, but the appeal process, as agreed to by both sides of the labor deal, calls for the Commissioner or at least somewhat designated by Roger Goodell, to be the one to rule on the appeal, So the NFL is appealing basically to themselves. They would then be allowed to make the suspension longer. The Players Association may then follow with a lawsuit. John Stashanward, Bloomberg Sports.

Thank you, John. This red headline just across the Bloomberg terminal. Credit Swiss Group executives are reportedly discussing cutting thousands of jobs around the world as the struggling European lender tries to slash its overall cost base by an additional billion dollars. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather. Yeah, it's gonna be hot in mid nineties today and tomorrow.

The heat advisory kicks into eleven a m. Last till eight pm Friday, will be back in the uper eighties by Saturday. Right now seventy eight in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quick Tape He's a Bloomberg Business lash and I'm Karen Moscow. And stocks are nudging higher as investors assess the corporate profit outlook well waiters on further Federal reserve interest rate

hikes lift treasury yields. We checked the markets every fifteen minutes throughout the trading day on Bloomberg Guess and p future is up twelve points now, futures of seventy NASDAG futures up sixty the decks in Germany's at one point three and the tend your Treasury down six thirty second tield two point seven two percent yield on the two

year three point one zero percent. Nine excrude oils up one point one percent or ninety eight cents and ninety one dollar sixty three cents of barrel called max Schold at one point one percent or eighteen dollars ninety cents. Sevnnounced the euro one pot one nine one against the dollar.

British found one point one eight six c one thirty four point one four and bitcoin down one point seven percent at twenty two thousand, nine hundred twenty dollars, and Credit Swiss Group executives discussing cutting thousands of jobs globally. This is a struggling European lenders seeks to slash its overall cost base by an additional one billion dollars. And today we also are watching for the weekly report on initial jobless claims at an eight thirty Wall Street time,

along with the trade balance. And that's a Bloomberg business flash. Now here Smuggle Barro with more on what's going on around the world. Michael Karen, thank you very much. Today China fired eleven missiles into the c surrounding Taiwan. It is in response to a visit by US how Speaker Nancy Pelosi to the island Beijing claims as its own in territory. The Senate ratified adding Sweden and Finland to NATO, a move intended to bolster the military alliance after Russia's

invasion of Ukraine. Closing arguments in w n B A star Brittney Grinder's cannabis possession case in Russia are set for today. In baseball, the Mamaters beat the Yankees seven three, The Mats 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 journalist and analysts more than twenty countries.

Michael barn this is Bloomberg, Bloomberg Opinion, informed perspectives and expert data driven commentary on breaking news, life and the Bloomberg Interacted Blocus Studios. This is Bloomberg Daybreak. We are coming up to six twenty on Wall Street and Bloomberg Opinion. Calumnist Marcus Ashworth joins us ahead of the Bank of England decision, now just about forty minutes away. Marcus, I love of the headline on your piece ahead of this policy meeting. The Bank of England needs a big bac

and fries. Do you think policymakers have gotten the message from the rising fast food menu? Marcus? It never accused me of click baker, but I mean the point is is that they've upped the price of a burger here or cheeseburger by and though inflation will probably drop back a bit next year or whatever, the chances of a burger going back to below a pound, it's never gonna happen.

We've that's gone forever, and that's the point that inflation is embedding and expectations are rising um just as time goes by and the feet through and energy prices comes into things like food and then obviously wages. So yes,

the Bank of Things should raise fifty basis points. They would be very surprised if it doesn't, but I have some very good excuses if and that would be very worried because it would have to be predicated on some very poor forward economic forecast, which I don't think will happen. But that's why I think fifties pretty much now on

and it will be good to see them. This would be the biggest move they've done for twenty seven years, but obviously follows the more aggressive even FED and even though surprisingly aggressive European Central Bank just a week or so ago. So it's it's the finowing in line with everyone else. Does the BOE stick with a fifty basis points going forward or is this just the one and done? Do you think I think it's well, it's a one

and go down back to the normal twenty five. I think we'll probably get two or three more of them the rest of this year, get over two percent, maybe two and a quarter somewhere around there, and then probably pause. They're also starting quantitative tightening. We think we'll get some details on that today and the final decision we men in September, but it will be a gradual one. But they're gonna you know, I think the fifty base point needs to be done um now, but I think they'll

probably hold back and do twenty fives now. And the only riter to that if we do get a very aggressive fiscal passage package for the next Conservative five minister, then maybe they feel they need to counter right that and there might be another fifty. But it's yeah, we think we're gonna get to about two and a quarter two and a half terminal rates um, so midway between what the FED and and and the u CV are

going to do. It's tighter policy going to be enough to reign in the kind of inflation we are seeing in the UK where you're dealing with a cost of living crisis, and of course there's probably a lot of the same dynamics that continental Europe is dealing with with the war in Ukraine affecting energy prices. Well, we're caught in the trap between the pressures of Europe and then then the pressures similar as the US has on a very tight labor market. So it makes a little bit

something a little bit more cute. But the good news about the UK economy, very much like the U S economy, has got very strong banking system, big savings in both household and corporates, and that very low unemployment is you know, is a good place to start a down to and from, if you know what I mean in the sense, I don't think it would be a very deep or nasty procession. If even there is one, I think will bumble along

around zero growth for for the next courses. An inflation will come down almost of its own accord, and I don't think there's much the bank and you can do about it. They've got to act to try and come some of those inflactional explanations feems of labor uh, you know, wage rises. But the reality is this is external influences energy and they've got very little control over it. How much of an external influences politics here is there are a feeling that the VOE needs to get aggressive now

before there's the leadership change in September. No ish, I mean, obviously I don't think they can act on that in the sense that they really can't. All their economic forecasts, of course, all rubbish because they're all going to be changed when the government does do another big fiscal stimulus.

So a lot of these economic forecasts you're seen out on the UK at the moments are just simply wrong, and then everyone knows they're wrong because you can't plug in something you don't know which is going to happen very soon and another big fiscal stimulus. Nonetheless, I think the Bank of England will you know, if it comes between doing zero or twenty five or whatever it may be in the future, and they think the fiscals can

sisto strong, they're gonna courtion. The good mute is the government has saved them to be blamed for recession by stepping in on the fiscal side, which means the Manet you can get on and do what it should be doing, which is on monegy policy, which is calming inflation. They should have done an age ago, but at least they're getting on that now and they will get on with it.

One way or the other in about thirty six minutes when we get that decision from the b O E. Marcus Ashworth, Bloomberg Opinion columnist, thanks for being with us ahead of that decision. Get more Bloomberg Opinion Bloomberg dot Com Slash Opinion O P I N go on the Bloomberg terminal, where you can get even more great headlines about Big Max and fries. SFP futures up thirteen points, staff futures up seventy two, NASTAC futures up sixty two points. So adding to games as we get closer to the

market open on Wall Street. Ten year treasuries down five thirty seconds, the yield two point seven to per cent, just ahead the Feds still talking tough on inflation and credit. Sweez looking at it's sweeping, John Cuts. Five things you need to know to start your day. Coming up on Bloomberg day Break Bloomberg eleven three oh Weather heat Advisory kicks in at eleven am last till eight p m Friday today tomorrow. In your ninety five degrees will be

in the oper eighties by Saturday. Right now, seventy eight in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E living three on to Washington, d C, Bloomberg on to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the Country, Sirius XM Chandel one nine tea and around the globe the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Day Break six thirty on Wall Street. Good morning,

I'm Nathan Hagar and I'm Karen Moscow. He are just about three hours away from the open of US trading time for the five things you need to notice start your day. Brought to you by Interactive Brokers. Interactive Brokers charges Martin loan rates from two point eight three percent to three point eight three percent. Their clients can also are an extra income by lending their fully paid shares of stock rate subject to change. Learn more at ib

k R dot com. Slash compair first. The S and P five hundred enters this 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 has helped to lift sentiment, but Alifa Doria Walla, managing director at Rock Creek, says she's still proceeding with caution.

There could be another severe downturn, another leg to go in the S and P, 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 creates Alifa Dora Walla says the recent pivotento tech might be short lived. I meantime, Karen

Feed officials keep talking tough on inflation. Minneapolis President Neil cash Cary 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. And more likely scenario is we would continue raising and then we would

sit there. In Minneapolis, FED President Neil cash car says whether the US is technically in recession right now or not does not change his analysis. Well, monetary policy is in focus. Overseas, Nathan, the Bank of England gets set a high interest rates shortly and could raise rates at half a point well, saying. In Europe, Karrent executives from Swiss Bank Credit Suite are thinking of reducing thousands of

roles globally. At least they're talking about it as the struggling European lender seeks to slash its overall cost based by another billion dollars. Meanwhile, Nathan, the world's largest retailer is announcing job cuts. More in this live report from Bloomberg's John Tucker John, Good Morning, Darren. Walmart eliminating about

two hundred corporate jobs. Sources tell Bloomberg that counts includes staffers and last mild delivery and merchant does, and more cuts maybe on the way in areas such as e commerce. The build tightening comes a week after slashing its annual profit forecast for the second time in less than three months. Walmart has had to cut prices on general merchandise as their customers pulled back on spending. Live to New York,

I'm John Tucker, Bloomberg Day Break. Thank you, John, and more corporate news here in the State's Tesla holds its annual shareholder meeting today. And that's the five things that you need to notice start your day. Brought to you by Interactive Brokers. Again, futures are higher this morning, and straight ahead your latest local headlines, plus a check of sports. This is Bloomberg. Thanks Ter sixe on Wall Street. Seventy seven degrees in Central Park. Still got that crash he's

found Cross Bronx and Jerome Avenue. More 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. Today China fired eleven missiles into the sea around Taiwan. The drills were prompted by a visit to the island by All Speaker Nancy Pelosi. This week, speculation and rises about China's threat to attack the self governing

island Republic. A heat advisory is an effect for the tri state area because of dangerously hot and human conditions. Today's high in New York will be around ninety four degrees. New York City Mayor Eric Adams says he's freeing up a 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 planned on hundreds of millions of dollars in funding for schools in the current

fiscal year. The Atoms administration's reverse hole on school funding comes a day before a hearing planned and the lawsuit filed by parents and teachers in an effort to stop the budget cuts. Meanwhile, Mayor Adams pushed back against criticism that is continual focus on crime at press conferences since taking office is feeding into an overblown narrative that the

city is unsafe. This conversation is about a small number of dangerous people who are repeated recidivist who have made up their minds that we could do whatever we want in this city and nothing is going to happen to us. Adams says, the real issue is how much coverage of crime there is by the media. Conspiracy theorist Alex Jones now concedes the massacre at Sandy Hook Elementary School in was reel. A jury is now deliberating Jones's punishment in

a defamation case. The parents of a six year old victim of the shooting successfully suthed 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 Jones of lying and trying to hide evidence, including text messages and

emails about Sandy Hook. Two days your attorney's messed up and sitting an entire digital coining 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 felt free and clear in the mike possession. And that is how I know you'd lied to me when you said you didn't have text message about Samu Okan. Did you know that

I see? I told you the truth? This is your Perrymason moment. Erney. Mark Bankston says Jones made the lives of the parents a living hell. New Jersey Restaurants received a two year extension to continue operating outdoors. Governor Phil Murphy says it's a pandemic precaution that remains necessary to boost small businesses. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts are more than

a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Michael, thank you. Six thirty six on Wall Street. John Sanshower has the Bloomberg Sports Update. All right, Nathan Garrett Cole is the Yankees as when the playoffs begin. Hill undoubtedly beyond the mound. He's at an all star season, but he's had a few clunkers. There's some fear of Yankee fans. What if that happened to the postseason? That was that night in June and Minnesota went for the first time

in Cole's career. He gave up three home runs in the first day, three in a row. First inning yesterday at the stadium, a three run homer by Eugenio Suarez, a solo shot for Carlos Santanna, and a two run blast by the Mariners Jared Klenny. That's the former Mets farm hand that he one thirty three. Cole did settle down after that, but Seattle won the game seven to three, and Cole was asked about that first inning. Have a pretty vivid recollection. I think it's sometimes easier to remember

about stuff, um, Carol. But there were some bad pitch selections. There were some bad pitches, um, and uh, you know we got punished for it again. Louis Castillo got the win in his Mariner's debut. He also beat the Yankees in the Bronx in the game just a few weeks ago while he was with the Reds. He just got treated. The Yankees had only five hits there off tonight. They are in St. Louis tomorrow. The Mets tonight host Atlanta.

It's the start of a huge five game weekend series in City Field to play a doubleheader on Saturday, and if either team should win three or four of the five, that's a three game swing. Met's currently three and a half games ahead of the Braves. They wanted Washington nine to five. Daniel vogel Backs first mat homer was a Grand Slam. The game was nine nothing for the next

Nap scored five. The ninth NFL just hit. The Dolphins took the way their first round draft pick next year for tampering while trying to acquire Tom Brady, and 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 that yesterday, declined to comment. Phil Mickelson, one of eleven golfers, joined the new Live Tour, now suing the p g A for

an I trust violations. John Stash were Bloomberg Sports All right, John, thank you to six thirty eight on Wall Street Time to take a look at stocks, some of the names moving in the pre market. Bloomberg's Laura Right joins us Live ahead of the market open, watching Credit sweez shares. Laura after news of the latest cost cutting plan that the bank's at least considering. Yeah, and the market likes

what it had. Credits Sweet up around two and a half percent in the pre marketed US listed depository that is now The bank announced the appointment of a new CEO last week. Or Kerner asked the stock fell six Under his predecessor, Thomas Scott, the bank has been tied to numerous scandals over the last eighteen months, raising the question of poor risk management. Now there's a bloom Bug scoop out this morning that credit spreets are discussing an

aggressive plan to reduce their head count globally. I was actually in the room with Mannis Cranny last week for the earnings interview in Zurich when the chairman revealed the launch of a so called strategic review, which man Is presciently called a way for people to strategically evaluate their careers. Yeah,

some more strategic evaluation going on this morning. Apparently we also got earnings this morning from Eli Lilly and they came in a little disappointing, Yes, a little disappointing, and ahead of the bell, the stock is down at six percent. This is a far smceutical company with a market cap

of almost three hundred billion dollars. It was a miss on revenue for the second quarter, but importantly, the guidance for full year adjusted ets was revised downward to arrange of seven dollars ninety cents to eight dollars and five cents from a previous range that was around eight dollars and fifteen cents to cents. And just quickly, Laura, what other stocks you're watching this morning. I'm looking at Lucid, the electric vehicle maker. It's down twelve percent ahead of

the open. Now. Lucid lowered their production target to six to seven thousand cars, down from a previous goal of between twelve and fourteen thousand cars. This is all because of supply chain congestion that can't get the parts they need. But at least it's not a demand issue, all right, Bloomberg's law right with us this morning ahead of the pre market. We also got earnings just crossing the Bloomberg terminal from Ali Baba, a big beat on first quarter revenue.

Ali Baba A d r s are higher by seven percent on that earning speed. Right now, SMP futures are up sixteen points, Dow futures up ninety four, NASTACK futures higher by eighty three points ten, Your treasuries down seven thirty seconds, the yield two point seven. This is Bloomberg, Bloomberg eleven three oh, whether we're going up to your nine five on a hot and humid Thursday. Heat advisory kicks in eleven this morning, last till eight tomorrow night.

Right now seventy eight in Central Park. Yeah, and I'm Karen Moscow. And futures this morning are on the rise this morning, with SNP futures up about thirteen points, to DAL futures up sixty seven, and nasday future is of sixty eight, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg. The decks in Germany is of one and a quarter percent this morning ten. Your treasury down seven thirty seconds, you know, two point

seven three percent. They yield on the two year three point one zero percent. Nimex screwed oil is of eight tens of a percent or seventy nine cents and ninety one dollar forty five cents in barrel. Comex gold up one point two percent or twenty one dollar sixty cents is seventeen announced. The euro one point one five against the dollar, British found one point to one nine three and the end this morning four point one seven. Watching bitcoin it's down two point one percent. It's a two

eight hundred fifty dollars. That's a Bloomberg business flash. Now here's Micho Barr with more on what's going on around the world. Michael Hearin, thank you very much. How speaking, Nancy Pelosi met with the South Korean counterparts and sold to reissure strong alliance between the two countries. It comes as China conducted military exercises around Taiwan in response to Pelosi's visit flags are at half staff at the US Capitol after an Indiana congresswoman was killed in a car crash.

Republican Jackie Larski, 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 journalist and analysts more than a hundred twenty countries. Michael Barr and this

is Bloomberg. Karen, all right, thanks Michael at a Sight on Wall Street and we turned to news and science and technology now with the Bloomberg and j I T. STEM Report. It is brought to you by New Jersey Institute of Technology, ranked top fifty national public university by US News and World Report, and at top ten in the nation for engineering by Money dot Com. Learn more at n j I T dot E d U And here's just making news in science, technology, engineering, and math.

Bloomberg News has learned that Apple expects to delay it's next major iPad software update by about a month. For the last several years, the tech giant has released major iPad and iPhone software updates at the same time in September. This time around, sources say Apple plans to put out its iOS sixteen during the usual period, but not launch iPad O S sixteen until October. The delay of the software is due at least in part to an ambitious

effort to overhaul the iPads multitasking capabilities. A Sunday conductor shortage that has slammed the auto industry dented production at Japan's top automaker, Toyota's profit fell nearly eighteen percent in the April June quarter from the year before. Toyota officials apologized to customers who have been waiting for their cars

after putting in their orders. Some have waited so long the vehicle went through a model change in the meantime, and the Transportation Department is proposing to require airlines to offer passengers a refund if their flight schedule is changed significantly or the airline makes major changes to their itinerary.

The proposed rule would require airlines to give a refund sit their departure or arrival time changes by three hours or more for a domestic flight or at least six hours for an international one, and as a Bloomberg and j I t Stem report. Nathan Okay, Karen, thank you. We're live from the Bloomberg Interactive Broker Studios or at six fifty on Wall Street. Good morning on Nathan Hagar.

Time now to check what's going on in DC. Some of the top stories in our nation's capital include the White House lobbying Democrats against a bid too deep en ties to Taiwan as China begins live fire drills around the island, the Senate ratifying NATO membership for Finland and Sweden, Senator Cinema looking for tax changes in the Democrats Tax and Energy bill. And Washington Morning, a congresswoman from Indiana

killed in a car crash. Let's bring Breck Bloomberg Government Congressional reporter Jack Fitzpatrick for more on all these stories. As we continue to monitor the tensions in the Taiwan straight and around Taiwan more generally, Jack, what is the reaction in Washington as Speaker Pelosi's Asian trip continues and China keeps up these live fire drills. Well, there's a

bit of a divide in Washington. You know, they generally UH somewhat of a hawkish stance on China tends to get bipartisan support lately, but there has been a divide between Pelosi and the Biden administration. President Biden mentioning that the military had had concerns about this trip in the first place. Uh, they have. The White House has lobbied against, at least at this point, a bill that would formalize, uh, the US's relationship with Taiwan. Taiwan in formalized Taiwan standing

as a non NATO ally. That wouldn't really change the relationship between these two countries. But there seems to be a bit of a timing issue and a concern about how much the US's actions are rankling the Chinese government. H So, the the White House has is pushed back to bill UH that has been delayed. They're supposed to

be a committee vote yesterday. UH So it's clearly there's some concern about exactly how the Chinese government is going to react to UH Speaker Pelosi's trip, and and and the White House in particular wants to move carefully in terms of not prodding them more than is necessary right now, now, we've heard from the Chinese Foreign Ministry going so far as to say Speaker Pelosi's trip was a violation of

the One China policy. But if we do see this bill deepening Taiwan ties move forward, Jack, what did it really be a change in the U S stance towards Taiwan. No, that's the thing. This would formalize essentially what has been

the US relationship with Taiwan for decades. But that gets at the difficult position that Democrats, especially right now, find themselves in, with Speaker Pelosi wanting to take a stand, make a statement visit Taiwan, the Biden administration having concerns about that, and then questioning, uh, what kind of message they sent to the Chinese government. So it doesn't seem to necessarily be entirely focused on the substance of the bill as much as the public message and the signal

it sends to China. At this time, in the context of Pelosi's visit, it looks like a message is being sent now to Russia. Jack. With the Senate overwhelmingly ratifying Finland and Sweden joining NATO, Yes, an overwhelming vote really yesterday to one. Uh. That makes the US the twenty third country to take a vote to ratify that step, leaving seven left. So they're moving forward on that uh to one again. Josh Holly, the Republican from Missouri, was

the only one against it. Ran Paul voted present. UH. So a really overwhelming vote yesterday and yes, very much in the context of sending a message message to Russia. Uh And I think there's some maybe motivation to show that this is happening because of Russia and Russia's concern about NATO, or at least they're alleged concern about NATO and that being an issue involved in their invasion of Ukraine.

I think you see many Americans, Republicans and Democrats in Congress wanting to push back and say that Russia's actions have actually led themselves to an expansion of NATO and nothing else. A rare moment of near unanimity in the Senate. We don't see that too often, and we're not seeing it really when it comes to this Democratic tax and spending bill, the Inflation Reduction Act. We're getting a little bit better sense of where Senator Cinema may come down

on it. Yeah, We've known she had concerns about this measure to close or narrow the carried interest loophole that would effectively raise taxes on on fund managers that have been paying them as carried interest rather than income. We knew that was going to be an issue. It doesn't raise a massive amount of revenue in the context of this bill. Uh. If it were had, if it had to be dropped, it wouldn't necessarily be the breaking points.

So Cinema is pushing back on that. She evidently does have some concerns about the bigger revenue raiser in this the percent corporate minimum rate. Uh. Not necessarily the fundamental idea of it, but there's an ongoing conversation about exactly who it applies to if there are exceptions to that depending on some tax right offs. Uh. So Cinema has become the big X factor here with Senator Joe Mansion

obviously announcing this deal. Uh. And yes, speaking of unity, this is something where there's not going to be Republican support. So in order to get this through the process, they're taking this bill through that needs a simple majority. They need fifty out of fifty Senate Democrats to all uh. Circle the wagons and essentially anybody could have veto power on the Democratic side. And right now the the eyes

of all turned two. Senator Cinema and finally Jack, in our last minute, here's some sad news suddenly with the death of a Congressman from Indiana. Yes, Jackie will will Or Sky from Indiana, the Republican member of the House died in a car crash, as well as two of her staffers, Emma Thompson and Zachary Potts, who are on the road with her. The sheriff's office there said that another car on the highway went over the middle line

and went directly into them. Very sad, very sudden. A lot of feedback from members of the House on on both sides of the aisle talking about a Congresswoman will Or Sky being someone they really liked and liked to work with. So a bit of a shocking moment yesterday when that happened. Alright, Bloomberg Government reporter Jack Fitzpatrick, as always, thank you Jack for the update from the nation's capital.

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