Bloomberg Daybreak: August 8, 2022 - Hour 1 (Radio)

and the CEO of Carlisle Grove unexpectedly steps down. New York Mayor Adam says they're welcome, but it's criticizing Governor Rabbit after sending a second bus load of migrants from Texas. Michael Varner more an I'm John stadshowering forth. Jacob de Grand pitched the Mets to victory over the Brave. They won four or five of the series. The Yankees swept

in St. Louis. That's all s trended ahead on Bloomberg day Break on Bloomberg Eliving three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco, Syrias x AM one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning, I'm John Tucker. I'm Nathan Hagar. Futures are moving higher this Monday morning. They are coming up to five oh one on Wall Street. We checked

the markets every fifteen minutes during the trading day. On Bloomberg, SFP futures are up ten points right now, DWAL future is up fifty eight sowar NASDACK futures. The tenure Treasury is up nine thirty seconds. The yield two point seven nine percent yield on the two year three point one n I'm ex screwed down seven cents per cent, or sixty four cents at eighty eight dollars thirty three cents a barrel. Jonathan will have more on the markets in

a minute. First, we started in Washington. Over the weekend, the Senate passed a landmark tax, climate, and healthcare bill. Fifty one Democrats voted in favor of the measure, fifty Republicans against it. Vice President Kamala Harris casting the tie breaking vote. When it comes to what's of the bill, we get more from Bloomberg's head Baxter. The top one percent avoided the tax increases liberal Democrats had wanted at the beginning. There will be a tax on stock buybacks.

The legislation also aims to prevent large corporations from exploiting tax breaks, and there will be a fifteen percent minimum. It did not raise the salt deduction on the climate side, and sentived to cut greenhouse gases with a hope to cut emissions by about from two thousand five levels by the end of the decade. It will extend the tax credit on e v s, but there'll be restrictions that US electric car makers say will exclude seventy of vehicles,

and Medicare will be allowed to negotiate drug prices. In San Francisco, I'm at Baxter Bloomberg Daybreak, All right, and thank you. On Wall Street today, the FED is in focus after friday strong jobs reports. Speculation is growing that another seventy five basis point rate height could be coming. San Francisco FED president Mary Daily tells CBS the Central Bank has a lot of work ahead. We are far from done yet. That's the promise of the American people.

We are far from done. We're committed to bringing inflation down and will continue to work until that job is fully done. So it would still be appropriate to raise rates in September by half percent. Absolutely, and you know we need to be data dependent. Mary Daily made those comments to Margaret Brennan on CBSS Face the Nation and catch the program Sunday afternoons on Bloomberg Radio. Mary Daily and the Fed get another key report and inflation this Wednesday.

That's when the government releases the consumer price Index for the month of July. I's gonna preview from Bloomberg's Vinny Down Judas. We may see some moderation as energy prices retreat. Economists say the US household inflation rate, as tracked by the Consumer Price Index, probably slipped below nine in July. June's on nine point one percent jump, the fastest since the Bad Old days for inflation. Inflation remains far above the Federal reserves two percent target. The after mathis supply

shortages and delays. This week's date on US producer prices and import prices may also moderate. Benny Dell Judas, bloom Daybreak, Okay, if any, thank you, And as we await that report on inflation, the outlook from consumers is turning more gloomy. When you ask most Americans, they say the economy is getting worse and Bloomberg's Doug Krisner has the details. A poll from ABC News IPSOS found about sixty of those surveyed think the economy is deteriorating. That's the highest since

two thousand and eight. The poll also finds only thirty seven percent saying they approve of how President Biden is handling the recovery. That's unchanged from June. We're just three months before the midterm elections. US employment is back to pre pandemic levels, but inflation is the hottest in decades and more stubborn than expected. Demand for gasoline in the US is now nine percent below last year in New York. On Duck Krisner Bloomberg Daybreak. Alright, thanks Juve. There's also

earnings to watch this week. We get results from nearly two dozen companies in the SP five Hunter. Let's get more from Bloomberg's Charlie Pellett. Traders will continue to parse corporate earnings reports against a backdrop of aggressive rate hikes, Kim Forest is to investment officer at Bouquet Capital Partners. Companies are saying their visibility for the next six months is whatever, and they're maintaining more or less maintaining their

their estimates. So I think that speaks well. These companies know their business. They know they can't set the bar too high for themselves, so it's probably kind of low. Among the names reporting this week, Walt Disney, Coin Based Global, a I G. Barrack Gold and Tyson Foods in New York, Charlie Pellett Bloom Bird Day breaking all right, Charlie, thank you. A dimming earnings outlook is at odds with the recent rebound in stock markets. That's according to strategist of Morgan

Stanley and Goldman Sachs. Both Morgan's Mike Wilson and Goldman's David Constant expect corporate profit margins to contract next year given unrelenting cost pressures. In fact, Wilson says, quote, the best part of the rally is over Warren Buffett, following an age old strategy by the dip, but do it cautiously. Buffett's Bertshire Hathaway stepped in as the S and P five hunder ships sixteen percent. In the latest quarter. It was a net buyer of equities, reporting three point eight

billion dollars in purchases. That's a different story than last year. When it was a net seller. In the second quarter of surprise changed John at the top of private equity giant Carlisle Group. The CEO q Sung Lee has stepped down. Lee's five year employment contract was due to expire at the end of this year. Bloomberg News has learned Lee and Carlisle's board had clashed over his contract in recent discussions.

The firm's co founder, Bill Conway will step in as interim CEO and looking overseas, now, we have a major development of the pandemic front in Hong Kong. The city will shorten hotel quarantine times for arrivals starting on Friday. Bloomberg day Break Asia anchor Brian Curtis has more from Hong Kong. People will only need to spend three days in quarantine now down from seven. Their movements will be restricted for four additional days after that, but they can

leave their residents. This marks a fundamental break from China's strict COVID zero policies. Business groups say it's just step in the right direction, but they'd like to see quarantine dropped altogether in Hong Kong. Brian Curtis Bloomberg day Break Brian thanks a lot ahead of the cash show. Up on Wall Street. Dow futures they're up seventy points right now, SMP evening futures thirteen points higher, and the Nazak futures they are up sixty six points. This is Bloomberg. There's

five o seven on Wall Street. Time to bring in Michael Barr with more than what else is going on in New York and around the world. John, Thank you very much. There. The heat continues to cause air conditioners to blast on high in the Tri State area Bloomberg meeting religious Rob Carolin reports, Michael, the heat wave across

the Tristate area continues for a couple more days. National Weather Service has a heat advisory in effect through eight pm tomorrow evening, but we will be breaking the heat wave on Wednesday. Frontal system be dropping down from the north. Will see showers and thunderstorms Wednesday. It only gets to eighty five, and it looks more comfortable for Thursday and Friday, but it's gonna be tough today and tomorrow with highs

between ninety and nine. Michael, Thank you. Rob. A second bus load of migrants from Texas arrived in New York City yesterday as part of Governor Greg Abbott's plan to send migrants from his state so called sanctuary cities. Abbot claims that his state can handle the influx and that cities that say they can should take the burden off

the border states who are getting inundated. But New York City Mayor Eric Adams says the migrants who are coming to his city are being forced onto the buses without warning and that officials and volunteers are doing what they can to help them. Mayor Adams also says Texas officials aren't in touch with anyone in New York. Then I'll let us know what time the buses are leaving. Then I'll let us know or what it needs of the

people on the bus. They're giving us any information, so we're unable to really provide the service of people en route, and we would like to get that information. New York Mayor Adams says the city welcomes them and will provide assistance, but has asked for federal help. New York City, you are looking for a suspect, they say, stabbed a man in the back on the subway station outside Yankee Stadium

Sunday afternoon. The man was spotted in the subway system after the attack, and has been estimated between seventeen and twenty one years old. The victim, the Wolling by the name of Leo, tells ABC he was waiting for the D train when a stranger invaded his personal space. I had to let him know, like, excuse me a little. You know, young men, get out my personal face. I'm not the one to be bothered today. You know, had a long day. It's hot. I look back once. He

didn't move. I look back again. He's still not moving. Leo says he believes he was targeted as a gay man. He is expected to make a full recovery. A fragile ceasefire deal to a nearly three days of fighting between Israel and Palestinian militants has held throughout the night. Global News twenty four hours a day on air and on Bloomberg Quickdake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. High Michael

Barr and this is Bloomberg, John, Micah, thank you. I'll find sim On Wall straight time for the Bloomberg Sports Uptake and Morning John Stains Show. Alright and Morning John Welcome back to City Field, Jacob Degraham on the mound there first time in more than a year. All he did was throw five perfect innings. In the sixth the

walk in a home run, his day was done. He got seventeen outs, twelve by strikeout, and the Mets scored four runs in the third inning to run doubles by Peter Alonso and Markenna and de Graham, and the Mets beat the Braves by it the two. That was a long day yesterday and these guys came in and you know, um put up runs early, and you know, my goal was to try to keep it there, and you know, Joylily did a great job. And then Das coming in and and closing that game. So um, you know, it

just shows a lot this king grind to everything. You know, that was a long day yesterday. And then they come off the day and jump on him early and and you know finished the series with huge What a series of the Mets. They won four or five. They gained three games on Atlanta that I leave the inn at least by six and a half. And they have also caught the Yankee for best record in New York. As good a weekend as it was for the mess. That's how bad it was for the Yankees in St. Louis.

The day after the Cardinals won one to nothing, they won twelve to nine. Sixteen Yankee hits not enough, as Frankie Montaz gave up six runs and his Yankee debut. It's the Cardinals seventh grade win their first ever sweep of the Yankees. First time all year, the Yankees have been swept in a three game series. Over their last twenty five games, the Yankees just nine and sixteen. Joe Young King Kim, a twenty year old from South Korea, won the Windham Golf in greensbro His first hole of

the tournament last Thursday was a quadruple bogey. Made up for that with the final round sixty one Women's Open in Scotland, a major one by South African Ashley Bouhi. That's her first LPGA. John stash Boomberg Sports John. All right, thanks John, and ahead of the open on Wall Streets, we have futures in the green as follows Friday's Bang Up Jobs report. The down futures right now sixty three points center. That's up to tens of her percent. SMP

futures up ten these futures up fifties its points. You're listening to Bloomberg Daybreak. Daybreak brought to you by the New York Community Trust. Your name will live on as a champion of the causes you care about for years to come through a charitable bequest that the New York Community Trust. Learn more at Philanthropists dot n y C, markets headlines and breaking news twenty four hours a day, at Bloomberg dot com, the Bloomberg Business apt and at

Bloomberg Bucktake. This is a Bloomberg Business Flash. I Nathan Hagar's stock to Get in the week started on the rise this morning as investors assess the prospects of aggressive Federal Reserve interest rate hikes against reassuring earnings. We checked the markets every fifteen minutes during the trading day on Bloomberg. Right now, SMP futures are up eight points, STAFLE futures up, NASZAC futures are higher by fifty points. The acts in Germany up three tenths per cent. Attack in Paris is

higher by a half percent. Ten year Treasury is up seven thirty seconds. The yield two point seven nine percent. Yield on the two year three point two zero percent. Nimex Screwed is down six tenths percent, down fifty four cents at eighty eight dollars, forty four cents a barrel. Comax Gold little change down forty cents at Sight announced the euro one point zero one seven eight against the dollar,

the pound one point zero eight one. The end is at one thirty five point one four and Bitcoin up three point seven percent at twenty four thousand, one hundred dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Good morning, Michael, Good morning Nathan. The Senate passed the landmark tax, climate

and Healthcare bill. The vote on the bill was fifty one Democrats in favor the fifty Republicans against, with Vice President Kambalay Harris casting the time breaking vote after an overnight marathon of votes on amendments. It now goes to the House, where it is expected to pass on Friday. China's military announced the new exercise near Taiwan today, signaling that Beijing wanted to keep up pressure. You're on the island. After US House Speaker Nancy Pelosi's visit in baseball, the

Yankees lost to the Cardinals twelve nine. The Mets beat the Braves five to the Red Sox, Orioles and Nationals all lost. The Giants beat the A six four Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analyist more than a hundred twenty countries. Michael Barr and this is Bloomberg, John, Michael, thank you, coming up on five twenty on Wall Street. We are lying

from the Bloomberg Interact and broker studios. This is Bloomberg Daybreak. Strong US job Stata on Friday that added to the case for more fed tightening. You have the major averages added mixed, little change on Friday. Futures they're higher this morning, so it's driving stocks. Let's get your set up with the trading day ahead now with Lori Kalvasin at the head of US Equity Strategy at RBC Capital Markets. Laura, happy Monday, thanks for being with us. What's in the

driver's seat for stocks? So look, I think that we got an amazing number of cross currents right now between the reporting season, which has turned out better than feared investors are taking some comfort in that we've got the jobs data from last week, We've got said watching. I think in general, investors are breathing a bit of a

sigh of relief over those two que reporting season print. UM. We would tell you we're not entirely out of the woods from a market perspective in terms of earnings right now, just because if there really is a big macro slow downcoming economically, UM, numbers do still need to come down. But I think for the moment, investors are you know, just excited about the resilience that we're seeing. Yeah. I mean, by our calculations, almost companies that have reported so far

delivered positive earnings surprises. You've got to wonder if that pace is sustainable and what happens to the margins. Well, what's interesting is that if you look at the percent of companies beating consensus estimates, UM, we are very very strong. We are still high relative to history. We did a cut a little more than halfway through reporting season and found that about seventies six percent we're beating on earnings and the average over time was about sevent But we

also found that we were well above eight. UM. You know, in recent quarters so that the pace is softening just a little bit. UM. I'll tell you John, what's really interesting to me is that if you look at the small cap part of the market, the beat stats are hitting all time highs UM, which is maybe one of the untold stories in this recording season. So it's smart that the small caps are really the star of the show, the small tips also being the more domestic stocks. What

is the differentiation there with the way is that? So I think that there are a few things going on. We do know that small caps, you know, if you look at operating margin trends, do tend to be a little bit more sensitive to labor issues. UM. So I think it'll be interesting to see if perhaps you know, we we have heard companies in recent quarters allude to the idea that the labor market is loosening up just a little bit. That could be translating to the bottom

line in small caps in a bigger way. But I do think in part it's that domestic revenue explos or small caps had less of that international exposure, UM, tend to be you know, sort of more resilient and a stronger dollar type environment. Whereas when we look at you know, the more international SMP five hundred type, because we are hearing a lot of complaints about dollar strength, and we are seeing a decent number of downward revisions that are

that are are based on just the currency itself. And as the Fed continues to raise rates, the trajectory higher the dollar also higher. How much higher do you suppose it can go? Well, Luckily my forecasting is limited to the S and P five hundred um. But but what I will tell you is that UM a stronger dollar, you know, at the end of the day, to the extent that it's reflecting US economic strength relative to the rest of the world, it does actually end up being

a little bit of a wash on our model. The downward revisions do hurt UM from that currency translation, but at the end of the day, the sort of relative economic strength ends up being a good thing. So there's good and bad in the stronger dollar. Another inflation report this week, so I'm gonna ask, gonna forecast that have

we passed peak inflation? So our economists think that we could see you know, some tough prints for a little bit longer, And you know, they do think the job stated that we saw last week will keep the Fed aggressive for a little bit longer, um, But in general they do think the trend on inflation is going to start to moderate soon. We just haven't quite gotten to

the point where we're there just yet. Does they tell you, well, I was just going to tell you, John, I personally, as a strategist, I don't you know, I don't love the high inflation prints, but I do worry what happens to earnings when inflation moderates, because we do tend to see a pretty strong correlation between CPI and revenues. Does the Climate bill, what's known as the Inflation Reduction Act, passed by the Senate over the weekend, does that move

the needle on stocks? You know? To me, it's not a big game changer. We got some questions about the stock by back tax um, you know, late last week and when it became pretty clear that this bill was going to pass. UM, when I talked to my analysts and we just did some quick checks, we found that most of them, you know, think that maybe they're companies will grumble a little bit about this tax, that they

don't ultimately see it deterring behavior. We had one analyst tell us that he thinks his companies are probably going to accelerate buybacks in the short term um just to sort of get ahead of the tax coming up later. But in general, I don't think it's a big game changer. We don't have any buy back impact based into our

earnings model for next year. Maybe it pushes a few companies that the margins towards dimdends and benefit sectors like energy, but I think it's you know, it's more interesting about it what it's signifying politically for the mid terms, to be honest, Okay, LORI always a pleasure. We appreciated Lori Kalbassy and ahead of US Equity Strategy, RBC Capital Markets, ahead of the cash open on Wallstree futures in the green for now down futures there are forty points. That's

of a tenth of a percent. Smp euny futures seven points higher, that's a two tents of a percent, Nanzac futures three seven points higher. That is a three tense of a percent right now, and right now, the ten year yield to seventy nine, the two year at three twenty. You're listening to Bloomberg day break and just ahead, what's in the Climate bill passed by the Senate. What's not in the climate bill? Dr Julie Norman will join us

from University College in London. You are listening good Bloomberg day Break broadcasting live from the Bloomberg Interacted Broker Studio in New York. Bloomberg E Living freed on to Washington, d C. Bloomberg to Boston, Bloomberg one O six one, to San Francisco, Bloomberg N sixty to the country Sirius XM H O one nineteen and around the globe the Bloomberg business in Bloomberg Radio dot Com. This is Bloomberg day Break. It's five thirty on Wall Street. Good morning.

I'm John Tucker. I'm Nathan Hager. We're about four hours away from the open of US trading. Let's get you up to date on the news you need to know at this hour. Beginning in Washington, in where the Senate has passed a landmark tax, climate and healthcare bill. The move gives President Biden an apparent victory on his domestic agenda, but the measure is a shadow of his original build back Better plan. Here send a majority, Leader, Chuck Schumer.

He had many bumps in the road, many times when it looked like it would never happen, but we never gave up, and here we are. We got it done. Sent a majority leader Chuck Schumer says, the bill now goes to the House, where the Democratic Majority is expected to pass it on Friday, and journey to the markets now. Future is higher to start a week that will be highlighted by a key inflation report, the July CPI forecast

to come at eight point seven percent on Wednesday. San Francisco Fed President Mary Daily says fighting inflation does remain the Fed's main focus. We are far from done yet. That's the promise of the American people. We are far from done. We're committed to bringing inflation down and we'll continue to work until that job is fully done. Very Daily making the comments on CPS is face the nation. You can catch that program Sunday afternoons on Bloomberg Radio.

Earnings will also be in focus this week, john with two dozen companies reporting. The highlight comes Wednesday with Disney's results. Meantime, at dimming earnings outlook is at odds with the recent rebound in stock markets. That's according to strategist of Morgan Stanley and Goldman Sachs. Both Morgan Stanley's Mike Wilson and Goldman's David Costan expect corporate profit margins to contract next year, give an unrelenting cost pressures and a surprise in the

private equity space. This morning, Carlisle Groups CEO k song Leah stepped down. Lee's five year employment contract was due to expire at the end of the year. Bloomberg News has learned that Lee and Carlisle's board clashed over the contract at recent discussions. The firm's co founder, Bill Conway will step in as the interim CEO, and shares of Signify Health are up more than eighteen percent in early trading. The Wall Street Journals reporting CVS plans to submit a

bid for the Norwalk, Connecticut based healthcare company. Right now, SMP futures are up nine points, STOLE futures up fifty three. NASTAC future are higher by forty six points. The decks in Germany have three tenths percent. The CAC in Paris is higher by a half percent. The tenure treasury is

up eight thirty seconds. The yield two point seven nine percent, yield on the two year three point one nine percent, nimex screwed is down six tenths per cent, or fifty six cents at eighty eight dollars forty five cents a barrel. Comics gold Little changed up a dollar sewenty for announce the euro one point zero one eight one against the dollar, the yen one thirty five point zero seven Bitcoin trading at about twenty four thousand, one hundred dollars. Straight ahead

your latest local headlines and the check of sports. This is Bloomberg. Thanks Nathan five three on Wall Street Time to bring in Michael Barr with more on what else is going on in New York and around the world. John, thank you very much, sir. New York Mayor Eric Adams on Sunday greeted another bus of migrants who arrived on the East Coast send by Texas, saying their treatment by

the states governor has been horrific. The first bus of about fifty migrants arrived on for today, with Texas Governor Greg Abbott saying he was testing New York's smitment to being a sanctuary city. Adam says while the migrants are welcome, they're being forced onto buses. Some of the families are on the bus that wanted to go to other locations

and they were not allowed to do so. They were forced on the bus u with the understanding that they were going to other locations that they wanted to go to, and when they tried to explain, they were not allowed to do so. Mayor Adams says Governor Abbitt is using humans as political powns. The Trying State area remains under a heat advisory. It's expected to aspire tomorrow night at a PM. As for today, ninety degree plus temperatures will

feel like it's one hundred degrees. President Joe Biden and First Lady Joe Biden are planning to visit Kentucky today to meet with families who have suffered from historic flooding. At least thirty seven people have died. When schools in Madison County, North Carolina, head back into session later this month, students will be greeted by school resource officers and their

new A R fifteen rifles. Both the Madison County Sheriff and the school district superintendent have supported the measure, which will have six semi automatic rifles inside the district's schools behind a lock safe in the event of an active shooter. Dr Dorothy Espalage is a UNC Chapel Hill professor in the School of Education. It's what we call hardening in the schools, and it's what's going to happen, is that

we're going to have um accidents with these guns. Dr Espalage says when she first hearned of the measure, she thought it was a joke. Can Fake News Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. H Michael Barr and this is Bloomberg, John, Michael, thank you, thirty five on Wall Street. That time at the Bloomberg Sports Update, here's John stash Hour.

And as we wait for John Stash in Sports, let's get you up to date on the markets this morning. The Dale futures right now fifty two points higher. S and P futures there are eight points. And as they Emity futures right now they are higher by forty four points. Yeah, let's do the Tri State Business Report, and for that this morning, we're joined by Bloomberg's and Query indeed is set to remain one of Connecticut's biggest corporate employers for

the foreseeable future. The career services provider has renewed its office leases in downtown Stamford, where has added several hundred employees in the past few years. Vantage the Business Cloud Communications Company, has moved its corporate headquarters a little over three miles to Bell Works, the former historic Bell Labs building in Home Deale, New Jersey. For more than a decade. Advantages least twenty three Main Street. They're one of the

biggest office buildings at the Jersey Shore. Dom Pearre and Yon has raised the bar on Yahn Charters. This summer, you can hire the brands eighty eight foot yacht and be treated to dinner from a three Michelin starred sushi restaurant. The Experienced costs thirty thousand bucks for a four hour cruise. It departs from sag Harbor Village Marina or Gurney Star Island Marina in montuck eure up to date on bet

your Bloomberg Crying State Business Report. I'm ed Corey. Alright, thanks said, it is five thirty seven on the Wall Street. Let's get the sports up day now. Good morning, John Show. All right, John, I think we're connected. A tale of two weekends. Great for the Mets, not so hot for the Yankees. Two teams now have identical records. Seventy and thirty nine. Were really excites Mets fans the last two games of this five game series of Atlanta, that one

two punch has arrived. Jacob Degram was hurt. Then so was Max Serzer. They're both down healthy. The day after shows were dominated, so did de Gram. His first five innings were perfect. He got seventeen outs, all but five were straight ats. He got his first win in thirteen months to Ellie rod Reaguez and Edwin Diaz followed him. The three combined for nineteen strikeouts. Mets beat the Raise five to two, took four or five in the series. Buck Showalter credits the city field crowd to pick me up.

It's from a tough tex And series, and the fans have been huge for us emotionally too, because you know, to come out and as hard as it is and as uncomfortable as some of the games have been physically for them to come out and support, uh, you know, the team. The guys really fed off of it. That Met saw the division lego from ten and a half down to a half game. It's now back up the six and a half. They host Cincinnati tonight. That's the Yankees.

Great pitching Saturday, but a one nothing lost in St. Louis, and then nine runs yesterday, but they lost with the Cardinals twelve to nine. And they're losing streakers read five just nine wins over the last twenty five games. They recently acquired. Frankie Mantas made his debut. It did not go well and the loss. Aaron Judge did drive in four runs, Labor torre As, Aaron Hicks, d J le Menu all but three hits with the Yanks string and it well gets swept in a three game series for

the first time all year. They take tonight. Bloomberg's work all right, John, Thanks a lot Iti is now five thirty eight on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Sri Lanka's new president ra Neil Wick Ramasinga needs all the help he can get. That's why he should be trying to win over his many critics, not suppress them. The scale of the crisis confronting Sri Lanka

is daunting. The country is effectively broke, and months of demonstrations drove the previous president from power in mid July. Many protesters are no less suspicious of his successor. The new president didn't help his case by immediately ordering the military to clear the main protest site by force. Seeking to crush the opposition is a deeply short sighted strategy. The new president instead must address protesters legitimate demands for

political reform. Trying to paper over this crisis will only hasten the next one. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or ope I n go on the Bloomberg terminal. This has been Bloomberg Opinion. Bloomberg Opinion editorial is gonna be heard every weekday at this time terminal customers, you can read more head O, p I n go. Well, Friday is stronger than expected non

farm payrolls. That adding to the case for more fit monetary tning traders. Also, we'll be looking to inflation numbers do this week for clues on the policy path ahead of the cash open on the Wall Street this morning, we have futures in the green, the down futures there are fifty six points two tents of a percent ryans this morning smp emny futures up nine points. That's up two tents of a percent. And then as the many futures right now at forty five points a Ryan's three

tenths of a percent. And the inversion continues. With the treasuries, the two tents spread negative forty one basis points, the two year at three point two percent, the taine here yield two points seven nine. And you're listening the Bloomberg day Break. And just ahead on Bloomberg day Break, Dr Julie Norman will join us from University College in London to tell us what's in the big climate bill that was passed by the Senate and what it leaves out.

That's all straight ahead. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Take. He's a Bloomberg Business Lash. I'm Nathan Hagar. Futures are advancing, Treasury yields are falling as investors assess the path of monetary policy. Before key inflation data later this week. We check the markets every fifteen minutes during the trading day.

On Bloomberg SMP futures are up ten points right now, DAL future is up sixty two NASDAC futures up forty eight points. The ten year Treasury is up eight thirty seconds. The yield two point seven nine percent yield on the two year three point two zero percent. Nim X screwed is down seven tenths per cent, or sixty three cents at eighty eight dollars. Thirty eight cents in barrel comes. Gold up about a tenth percent or a dollar sixty

eight seventeen eighty announce. The Euro one point zero one eight zero against the dollar, British pound one point to zero seven three the end one thirty five point zero four. Bitcoin up three point eight percent, twenty four thousand on five dollars. That's the Bloomberg Business Flash. And now here's Michael Barr with more on what's going on around the world. Good morning, Michael, Good morning Nathan. The Senate has approved

the Democrats Economic Package. The legislation is less ambitious than President Joe Biden's original domestic goals, but it does embody, deep rooted part dreams of slowing global warming, moderating pharmaceutical costs, and taxing big corporations. Just out of COVID quarantine, President Biden hands for Kentucky with the First Lady. Today they would tour the very hard hit eastern part of the state from deadly flooding. In baseball, the Yankees lost to

the Cardinals twelve nine. The Mats beat the Braves five two, The Red Sox, Orioles and Nationals all lost. The Giants beat the A's six four. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts more than a d twenty countries. Michael barn this is Bloomberg, John, Michael, thank you. It is five forty nine on Walster. We

are live from the Bloomberg Interact of Brokers Studios. Well, the Senate has passed the landmark tax, Climate and Healthcare Bill, so let's take up a bit of a deeper dive this morning with Dr Julie Norman lecture at the University College in London. Dr thanks for being with us. Can

you give me your impression of the bill and its impact. Yeah. Sure, So it's a very notable bill for climate change, first and foremost, really the first major piece of legislation that we've seen trying to address global warming, investing nearly four hundred billion dollars over the next ten years that Democrats say will cut greenhouse gas emissions by about forty of the two thousand five levels, So getting close to meeting

some of Biden schools on that. And it's important to note they're trying to do this mostly through tax credits rather than through any kind of tax penalties, So really trying to nudge consumers towards electric vehicles, electric appliances, and moreover try and trying to nudge you know, utility companies energy uh companies towards energy sources like wind and solar power.

So by going through this kind of approach, they're hoping to at least start some traction on climate change, not going as far as, of course, some progressives would want, but trying to hit that sweet spot for this compromise

is so definitely a big deal in that area. Um And secondly, of course, in terms of expanding the Affordable Care Act subsidies, they're hoping we'll go a long way with voters this year and finally meeting this long term Democrat goal of allowing Medicare to negotiate with drugmakers for prescription medicine prices. It's something that Democrats have been pushing for for a while, So from a Democrat point of view, it's a big win. Um, what's is there any significance

to what's not in this bill? Well, there certainly is. You know, if we look back to the initial plans for a build back Better a year ago, Democrats were hoping for two trillion dollars worth of spending on not only climate, but on different kinds of what they called human infrastructure, pre K program programs, all these kinds of things. None of those are there anymore, and even the climate measures have been significantly scaled back. So again it's definitely

not as much as some would want. Bernie Sanders up until the eleventh hour, was trying to push for even some more measures to be included, but those did not make the final bill. But again for Democrats, they're working with the reality that they have not only the fifty fifty Senate, but a really difficult situation with their own party, with getting all fifty senators on board and they were able to do that. Is this the Senate's accomplishment or

is it the White House and the administration's accomplishment. Who gets the credit? It's a good question. I think we'll we'll see all sides trying to to take a little bit of the celebration here. I mean, we can definitely say that this particular goal came out of ongoing negotiations between Schumer, uh and a Mansion in particular, over months of back and forth. So I think there's some credit to be said for the Senate and really trying to find something that was going to work for again, all

fifty senators there. With that said, again, you know Biden has you know, kind of given that permission to the Senate to do what they need to do to try and get something through. It's going to be a win

for him. I don't think it'll change things to aradically for the mid terms, but it does show Democrats for Biden and as well as for congressional races, the sense that Congress can occasionally do something and that was really important message for them to get across going into this next fall with the elections, and of course the opposition was unified Mitch McConnell arguing it's a job killer because of tax hikes. Any truth in that, well, certainly from

the Republican point of view. The other part of this bill is the minimum fifteen percent tax on corporations earning over one billion dollars. So from a Republican point of view, that is seen as something that hurts businesses, that they

say will hurt job growth. From the Democrat point of view, they were very targeted in that uh Senator cinema the last couple of days really tried to tailor that piece of it in particular to make sure that it was hitting certain corporations and not others like private equity firms. So they were quite intention on how they did that. But the Republican talking point will be that will hurt nonetheless, always a pleasure. Dr Julie Norman Leisher at University College

in London with us this morning. Thank you very much, Nathan, Okay, John, Thanks, It's five fifty three on Wall Street. Time now for our Bloomberg Law Report. Let's get to the legal stories are watching this morning with Bloomberg's Jeff Balinger, the top lawyer at the e p A, says the agency is continuing to build up at Civil Rights Enforcement Office as part of an ongoing effort to move to a proactive program.

The Southern District of New York rule that an all state employee who claimed she was sexually assaulted and falsely imprisoned by her supervisor must disclose her real name, and audited by the New York State Controller's Office found that the state made more than seven hundred million dollars in medicaid payments for recipients who were ineligible for the program. 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. And now to another legal story we're watching. Netflix is suing the creators of the unofficial Bridge Retain musical for copyright and trademark infringement, saying

the musical rips off their original series. Bridgetin creator's Abigail Barlow and Emily Bear won a Grammy for Best Musical Album for the fifteen song album based on the Bridge Retain series, but when the pair stage to sold out performance at the Kennedy Center in Washington, d C, Netflix decided enough was enough and sued for more. Bloomberg's June Grosso speaks to intellectual property litigator Terrence Ross, a partner at Captain Mutchen Rosenman. So, Terry, is this considered a parody?

I don't think so, not even in the broadest definition of parody. It is clear that actual dialogue from the Bridgetin Intellvision show is used as lyrics. The characters on the stage were apparently dressed in costumes that were similar to the ones used Intelligence show, the settings were similar to the Intellivision show, and the parent intent and effect upon the audience was to recreate the Bridger Tin television

experience in a live performance with music. So then does it appear that Barlow and there are using the intellectual property of Netflix without permission, constituting copyright infringement. So there's no doubt in my mind whatsoever that the plainists here Netflix have established, on the face of the completing of Prime a fashion case of copyright infringement as well as

trademark infringement. The question we should be afking, well, what's the defense that we're going to see from miss Barlow and miss bear And based on path cases in which fan fiction has been charged with copyright infringement, we typically see two defenses, one that we had the implied authorization to do this, or to that our use of the original work was a fair use and therefore protected from copyright infringement. Go through what a fair use analysis might

look like here. The approach that has to be taken in these fan fiction cases with respect the fair use defense is the work sufficiently transformed it if that it accomplishes some sort of societal good is recognized in the Copyright Act. And I think you're gonna be hard pressed to see that here. This is not a parody. This is very much taking advantage of the original Netflix television

series Britain and attempting to exploit it. It is very different from the sort of transformative works that have been approved by the courts in the past. And I think this will be a very hard road for the defendants to pursue a fair use defense here. I think it's far more likely that they're going to have to pursue some sort of implied licensed defense. So how would it applied license defense were so you see the elements of

the implied license defense in this case. In the actual complaint, the lawyers for Netflix have anticipated that that's the way the defendants will attempt to go. They repeatedly point out that, yes, there were discussion with Miss Farlow and Miss Bear about the fans fiction that they were producing, but in each instance they carefully preserve the right and thing, we're not authorized sing this, We're not going to do anything about

it right now, and they always stopped short. So they wanted a little bit of this brand fiction without it going to the point of displacing their potential marketplace. And that was Terence Ross, a partner at Captain muchin speaking

with Bloomberg's June Grosso. Catch more of that interview, plus analysis of the latest legal news by listening to The Bloomberg Law Show ten pm Eastern Time on Bloomberg Radio, or by subscribing to the Bloomberg Law Podcast, and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com. SMP futures are up nine points this morning. Down futures up fifty eight. Nan stack futures are higher by forty four points. The tenure treasury is

up seven thirty seconds. They yield two point seven nine per cent. You're listening to Bloomberg Gay Break