Bloomberg Daybreak: August 8, 2022 - Hour 2 (Radio)

Wall Street races for another key report on inflation. Morgan Stanley Guildman stratagist predicted dimming profit outlook for Corporate America, and the CEO of Carlisle Grove unexpectedly steps down New York Bringer Adams says they're welcome, but it's criticizing Governor Abbot after sending the second bus load of my grants from Texas. Michael Barr more ahead, I'm John Stanstown Sport. Jacob de Grand pitched the Mets to victory over the Brave. They won four or five of the series. The Yankee

swept in St. Louis. That's all trended ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine team and around the world on Bloomberg Radio. Dove Carmen by the Bloomberg Business app. Good morning. I'm John Tucker and I'm Nathan Hagar. US futures are on the rise this morning.

We're coming up to six oh one on Wall Street, and we checked the markets every fifteen minutes during the trading day. On bloomberg SMP futures are up ten points, Staff futures up sixty eight. Nasdaq futures higher by forty eight points. The tenure Treasury is up seven thirty seconds. The yield two point seven nine percent yield on the two year three point to zero nime X screwed is down eight tenths percent at eighty eight dollars twenty nine

cents a bear all, John and Nathan. We're gonna have more on the markets in a minute, but first let's start in Washington. Over the weekend, the Senate passing a landmark tax, climate and healthcare bill, fifty grant See in favor of the measure, fifty Republicans against it, with Vice President Kamala Harris casting the tide breaking vote. When it comes to what's next in the bill, we get more from Bloomberg's and 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 sentives to cut greenhouse gases with a hope to cut emissions by about forty 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 fit is in focus after Friday's strong jobs report, Speculation is growing that another seventy

five basis point rate hike could becoming. 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 for gun. We're committed to bringing inflation down and we'll continue to work until that job is fully done. So it would still be appropriate to raise rates in September by half. 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 and Mary Daily in the Fed. Get another key report on inflation this week. That's Wednesday, when the government releases the consumer price Index for July. Let's get a 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 nine The bad old based for inflation. Inflation remains far above the Federal Reserves two percent target in the aftermathas supply shortages and delays. This week's date on US producer prices and import prices may also model rate any doubt, Judics Bloomberg Daybreak, Okay, Thenny, thank you, And as we await that report and inflation,

the outlook from consumers is turning more gloomy. When you ask most Americans, they say the economy is getting worse. 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. I'm Duck Prisonner, Bloomberg Daybreak. Thanks Doug. Also earnings to watch this week. We get results from nearly two dozen companies in the SMP five hundred.

It was good. More from Bloomberg's Charlie Pillett. Traders will continue to parse corporate earnings reports against a backdrop of aggressive rate hikes. Kim Forest, as chief 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 Daybreak, Thanks Charlie. A dimming earnings outlook has 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 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 is following an age old strategy by the dip, but do it cautiously, Buffets Bertshire Hathaway stepping in as the some B five shed six team percent to even the latest quarter. It was a net buyer of equities, reporting

three point eight billion dollars in purchases. What's a different story than last year when it was a net seller in the second quarter of one. Now there's a surprise change at the top of private equity giant Carlisle Group. John CEO Q Song Lee has stepped down. Lee's five year employment contract was due to expire at the end of this year. Bloomberg Goose 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 a major development on the pandemic front in Hong Kong. That city's gonna shorten hotel quarantine times for rivals starting Friday. Bloomberg Daybreak Asia anchor Bryant 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 a step in the right direction, but they'd like to see quarantine dropped altogether in Hong Kong.

Brian Curtis Bloomberg Daybreak, All right, Brian, thank you Ahead of the cash on Wall Street futures in the green right now, the down futures of eighty two s and P futures of twelve, the NASDAK futures of fifty two points. This is Bloomberg seven of Wall Street. Time to bring in Michael Barr to find out what else is going on in New York hand around the world, John, thank you kindly. The heat continues to cause air condition there's to blast on the high and the Dry State area.

Bloomberg needi elogist Rob Carolin reports, Michael, the heat wave across the Tristate area continues for a couple more days. National Weather Service has a heat advisory 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 to so called sanctuary cities. Abbot claims that his state can handle the influx in that cities that say they can should take the burden

off the border states who are getting intundated. 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 there. Adams also says Texas officials are not in touch with anyone in New York. Did not let us know what time the buses are leaving, did not let us know or what it needs of

the people on the bus. They not 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 Eric Adams says the city welcomes them and will provide assistance, but has asked for federal help. New York City police are looking for us suspect they say stabbed a man in the back on the subway

station outside Yankee Stadium yesterday 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, who goes by the name 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 little you know, young men, get out my personal face. I'm not the ones that you bothered today. You had a long day. It's hot. I look back once. He

didn't move. I look back again. He's still in that movie. Leo says he believes he was targeted as a gay man. He is expected to make a full recovery. A fragile ceasefire deal to nearly three days of fighting between Israel and Palestinian militants has held throughout the night. The Lada's clash has killed forty three Palestinians and upended Israeli lives.

Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts and more than a hundred twenty country Is that Michael Barr? This is Bloomberg, John, Michael, thank you. They had to sound six ten of Wall Street time for the Bloomberg Sports Uptaked Morning. John Stas Shower. Good morning, John, Welcome back to City Phield. Jacob de Graham. I'm the mound there for the first time in more

than a year. And all he did was for five perfect innings in the sixth to walk in a home run, so his day was done. He got seventeen outs and twelve were strikeouts. Mets scored for some runs for him. That doesn't always happen. Four runs in the third inning to run doubles for Pete Alonso and Mark Canna to Graham of the Mets, Pete the Braves five too. So

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, Joelie did a great job and then Das coming in and closing that game. So um, you know, it just shows a lot of team and grind to everything.

You know, that was a long day yesterday. And then they come off the day and and jump on him early and and you know finished the series with Hue and what a series of Wise of the match, they won four of five, so they gained three games on Atlanta that I'll leave the NL East by six and a half. They've also caught the Yankees for the best record in New York. As good a weekend as it was for the Mats, 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 Mantas gave up six runs at his Yankee debut. It's the cardinals seventh win in a row. It's their first ever sweep for the Yankees. First time all year the Yanks have been swept in a three game series. They are just nine and sixteen over their last five games. No Young Cam It's twenty year old from South Korea won the Windham Golf in Greensboro. His first whole of the tournament last Thursday was a

quadruple bogey. Made up for that with a fun round sixty one. John stash Award Bloomberg Sports Done all right, John, Thanks a lot ahead of the Cans show uping on Wall Street. Futures in the green right now the down futures of eight one smp E Mini futures twelve points sire. That's up about three tens of a percent. Yeah, the Nansch futures fifty one points higher. That is a four

tense of eight percent. You're listening to Bloomberg day Break, and just ahead on Bloomberg day Break, Carlyle Group says it's CEO has stepped down. What's the significant We'll ask Bloomberg's Shinali Basset. You're listening to Bloomberg markets, headlines and breaking news twenty four hours a day, at Bloomberg dot com, the Bloomberg Business app, and at Bloomberg Quick Tape. This is a Bloomberg Business lash. I'm Nathan Hagar. Stocks are

climbing this morning. Bond yields are pairing their recent surge as investors way the prospects of aggressive federal reserve rate hikes against reassuring earnings. We check the markets every fifteen minutes during the trading day. On Bloomberg, SMP futures are up twelve points. Now, futures are up a six points, and the Nasdaq futures are higher by fifty two points. Germany's decks is up six tenths percent now. The CACK in Paris is higher by eight tenths of one percent.

The tenure treasuries of eight thirty seconds, the yield two point seven nine percent yield on the two year three point to one percent. Nimex crude is down one percent, now down eighty nine cents at eighty eight dollars twelve cents of barrel comics gold is up two tenths per cent or two dollars ninety cents at SEO even announced the euro one point zero one eight eight against the dollar.

The yen is at one thirty four point nine eight Bitcoin trading at about twenty four thousand, one hundred dollars. That is a gain of three point six percent. That's a Bloomberg business flash. And now here's Michael Barr with more on what's going on around the world. Michael Nathan, thank you very much. The Senate passed the landmark tax,

climate and Healthcare bill. The vote on the bill was fifty one Democrats in favor to fifty Republicans against, with Vice President Kamala Harris casting the tie 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 a new exercise near Taiwan today, signaling that Beijing wanted to keep up pressure 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 Quicktake, powered by more than seven hundred journalists and analysts and more than one d twenty countries. I'm Michael Barr, and this is Bloomberg, John, Michael, thank you, coming up on six twenty on Wall Street. We are live for

the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak. Carlisle Group says it's chief executive officer q Song Lee has stepped down. Let's figure out the significance of this story this morning with Bloomberg and Ali bast six and all the good to see in the studio. This is actually I should tell people one of the most read stories on the Bloomberg terminal this morning, private what he is in the business of fixing and reshaping companies. Yet, when

it comes to tink it in the house. What's the problem? That's a funny question. So Carlisle is one of the earliest private equity firms. Of course, it's three founders only really started the generational change, let's say in the last second half of this past decade. So about five years ago they named q Song Lee and at that time it was Glenn Young Can to be co CEOs. Within a couple of years, Glenn Youngcan of course stepped down, he went into politics, and you have qu Song Lee

who took over on his own. He's made some major shifts in the company. He's made a big pivot and turned towards credit markets, which is something a lot of its peers are doing. He's rearranged teams, he's tried to get more dealmakers to work more closely together. But you know, the the question at the end of the day was when his contract came up from renewal, he and the board not meet eye to eye on the terms of that renewal and therefore they announced this really abrupt exit.

Remember this is a statement that came out on a ten PM on a Sunday night, without a successor named with a former co founder coming back as the interim CEO and announcement that the board will be announcing an executive search firm to find a new CEO. So very rare for a firm, again to your point that deals with a lot of companies and transitional change to announce such a sudden exit that does not have the path

forward delineated. All that clearly. Yet was there any sign prior to this of acrimony between him on the board? So acrimony is a relative term on Wall Street because of course they hate each other. Well, listen, listen, But it's interesting when Glenn Yuncan had taken over as this co CEO. Interestingly, Glenn was a lifer. He was really at Carlisle for a very long time. Ke Sung Lee came over mid career. But when Glenn and Q had stepped into um the four together, Q was the one

who won out. There was a massive power struggle just years ago, and really Ques businesses were the ones that we're winning out. He was the one that was elevated more. He was the one that took over solely at the end of the day. So this has been a five

year experiment over at Carlisle in this generational change. Remember they were the first one of their kind to make this massive change at the top, and now they're going in a different direction with one of the co founders coming back at the helm as they make that transition again. Remember the co founders are the largest shareholders of Carlisle still, but Carlyle was also one of the earliest firms to

release start to make changes be more shareholder friendly. And you know, according to Bloomberg's data out que Sung Lee is not one of the top ten shareholders of the company, whereas the three co founders are the three top sharehol orders of the company. Um and beyond that, this is a firm that has underperformed its rivals over the past year and over the past five years, they've underperformed by how much you know, sometimes double when you look over,

but sometimes at a smaller margin. So um, I'll give you an example. Black Stone has doubled assets in that time frame, more than double by meaningful amount to almost one trillion dollars. Carlyle is not yet doubled its assets in that time frame, but they have grown meaningfully. They have beat their own targets. It is a very competitive landscape out there as these firms are taking share very very quickly. So can we say it's a performance issue or it's one of a culture clash. It's very much

a culture clash. However, given the environment we're in, Carlyle's set to compete as anybody else's. They have grown meaningfully car You know, qus On Lee has navigated them into the best performing businesses. Their credit business, which he really pushed him into in a bigger way, Struck Deals upon That business doubled in six months at the beginning of this year. So it's not that simple of a story, but you know, it is kind of what it is

at this point. And uh, you know, it wasn't surprise to investors, but they've navigated this kind of transition before. Sally Pleasure, thanks for being in the studio with this this morning again. Carlias CEO Q Song Lee quitting after his bid to remake the firm kind of put him at odds with the old guard at Carlysle ahead of the cash Open up, Wall Street, Welcome at the green on the screen. The down futures right now eighties seven points higher, that's a three tense of a percent. Smp

EMNE futures twelve points higher. That's up three tense, and the nsent futures right now are up fifty six points, a rise of four tenths of a percent. Ten year yield at two seventy nine, the two year at three twenty wand negative forty two basis points spread between those two as the inversion continues. This is Bloomberg still ahead. Five states may determine if the four election can be stolen. A fascinating story in Bloomberg will talk to Bloomberg Government

reporter Emily Wilkins. You're listening to Daybreak, broadcasting live from the Bloomberg Interacted Broker's studio in New York. Bloomberg Evan Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixteen to the country, Sirius XM gent O one nine ten, and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak six thirty on Wall Street.

Good morning, I'm John Tucker, I'm Nathan Hagar. We are about three hours away from the open of US trading. Time for the five things you need to know to start your day. Brought to you by inter Active Brokers. Global Analysts helps you find new global investment opportunities to diversify your portfolio and discover undervalued companies that may have greater growth potential. Try ib k our Global Analysts today

at I b k R dot com slash g a up. First, the Senate has passed a landmark tax, climate, and healthcare bill. It 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. We had many pumps in the road, many times when it looked like it would never happen, but we never gave up, and here we are 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 turning to the markets. Now future is hired to start a week that will be highlighted by a key inflation report. The July cp I forecans to come in at eight point seven percent on Wednesday. San Francisco FED President Mary Daly says finding in place and remains the Fed's main focus. We are far from done yet. That's the the promise to 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 CBSS face the nation. You can catch that program Sunday, Antonoons and Bloomberg Radio and earnings will being focused this week John with two dozen companies reporting. The highlight comes Wednesday with Disney's results. Meantime, a dimming earnings outlook is it odds with the recent rebound in stock markets. That's according to

strategist at Morgan Stanley and Goldman Sachs. Both Morgan's Mike Wilson and Goldman's David Constant expect corporate profit margins to contract next year, give an unrelenting cost pressure and a surprise in the private equity space. This morning, Carlyle Group CEO Q Song Lee has stepped down at least five year employment contract was due to expire at the end of the year. Bloomberg News has learned that Lee and Carlyle's board had clashed over the contract and recent discussions.

The firm's co founder, Bill Conway will step in as the interim CEO and shares of Signify Health are hired by sixteen percent in early trading. The Wall Street Journals reporting CVS plans to submit a bid for the Norwalk, Connecticut Healthcare Company. We have this headline crossing the Bloomberg terminal as well, with the Wall Street Journal reporting Fiser has agreed to pay sixty eight dollars fifty cents to share or five point four billion dollars for Global Blood Therapeutics.

That's the five things you need to know to start your day. Brought to you by Interactive Brokers. And again, SMP futures are higher by twelve points this morning. DAL futures of Nasdaq futures are higher by fifty seven points. In the tenure treasury yield two point seven nine straight ahead, your latest local headlines and a check of sports. This is Bloomberg and at six three Wall Street time to bring in Michael barn to tell us what else is going on in New York. Hand around the world, John,

Thank you kindly. New York Mayor Eric Adams on Sunday greeted another bus of migrants who arrived on the East Coast sent by Texas, saying their treatment by the state's governor has been horrific. The first bus of about fifty migrants arived gone Friday, with Texas Governor Greg Abbott saying he was testing New York's commitment 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 uh 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. Hey a, Adam says. Governor Rabbit is using humans as political pawns. The Try And State area remains under a heat advisory. It is expected to expire tomorrow night at

eight pm. Well that's tomorrow asked for today. Ninety degree plus temperatures will feel like it's one hundred degrees. President Joe Biden and First Lady Jill Biden are planning to visit Kentucky today to meet with families who have suffered from historic flooding. At least thirty seven people have died just days after U N Secretary General Antonio Guterres warn the international community the world is just one miscalculation from

nuclear annihilation. The terrorists reiterated this morning while speaking at the Japan Press Club. Today we are witnessing a radicalization in the geopolitical situation that makes the risk of a nuclear war again something will not we cannot completely forget, Secretary General gu Terrorists called on nuclear armed countries to

commit to no first use of nuclear weapons. 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 the six semi automatic rifles inside the district schools behind the locks, safe in the event of an active shooter. Dr Dorothy Espialage is a U n C.

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 Espalange has when she first heard of the measure, she thought it was a joke. And fake news, Global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analyists more than a hundred

twenty countries. Michael Barr, this is Bloomberg, John, Michael, thank you. It's now six thirty six on Wall Street. That's time for the Bloomberg Sports Update. Here's John Stasher. All right, John A. Taylor. Two weekends great for the Mets, not so hot for the Yankees, and the two teams now have identical records of seventy and thirty nine. But really excites Mets fans with the last two games of that five game series with Atlanta, the one two punch has arrived.

Jacob Degram was injured and then so was Max Scherzer. There both now healthy. The day after Surgeon dominated, so did the grand His first five innings were perfect. He got seventeen ounce and all but five were strikeouts. He got his first win in thirteen months to Ellie Rodriguez and Edwin Diez followed them. The three combined for nineteen strikeouts. Met seats grades five to two took four or five in the series. Buck Showalter credits the city field crowd,

it will pick me up. It's been a tough tax 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. The Mets Division lead went from ten and a half down to a half game, but now it's back up to six and a half. Ahio Cincinnati tonight. That's the Yankees. Great pitching Saturday, but a

one nothing loss in St. Louis. They scored nine runs yesterday but lost to the Cardinals twelve to nine. They're losing streaker has reached five just nine wins over their last twenty five games. That recently acquired Frankie Mantas made his debut. It did not go well and the loss. Aaron's judge drove in four runs. Labor Torres, Aaron Hicks, and d J. Mayo all had three hits for the Yanks. Stranded well gets swept in a three game series for the first time all year. They played tonight in Seattle.

John Cash now Bloomberg Sports. John all right, John, thanks very much, appreciate it. It is now six thirty eight on Wall Street. Time to take a look at some of the stocks, some of the names that are moving to the pre market, and for that we're joined by Bloomberg Radio at TV reporter Laura. Right, Laura. That bill that was passed by the Senate over the weekend, it looks like that's having an impact on some of the stocks were following this morning. Yeahsla up two point two

ahead of the US bell. So Tesla, as you mentioned, we'll see a tail wind from this landmark US climate bill out over and approved overnight rather which is here marks around three d and sixty nine billion dollars for US energy security. Another tailwind for Tesla is news of a five billion dollar deal with Indonesia to secure nickel

supplies for five years. Really important for the electric vehicle maker because Indonesia holds almost a quarter of the world global nickel reserve and wants to position itself as a leading e V battery supplier. The most act of this morning is bed Bath and beyond what's happening there. Yeah, this name has become a recent meme stock. It's up nearly in pre market trading after the stock closed thirty higher last Friday. So the company is experiencing its longest

buying streak since two thousand and seven. And this comes down to news released last week that Bed Bathroom Beyond a tapping into the private credit market to help combat the sales decrease, and a build up an inventory. To put in context the scale of the problem, the company had around one million dollars in cash and cash equivalents the end of May. That was down from over a billion dollars the same period a year ago. Okay, and

I'm looking at Bitcoin this morning. That's up with three and a half percent this morning over thousand token, So I would imagine that's having it impact on some of the starcks we're watching this this morning. It is the classic decal names such as Riot Blockchain up six point four percent, coin Based up four point three percent, Marathon Digital up six point seven percent. The crypto bears appear to be in the background for the time being in

this wider uplift that we've seen in equity. For that correlation that has emerged between equities and cryptocurrencies appears to be emerging again. Investors now seem to have confidence dipping their toes back into crypto assets. Okay, strapping Bloomberg Radio TV reporter and Laura right and looking at starts as a whole ahead of the open. SMP futures this morning, they are up fifteen points and that's a rise of

four tens of per percent. The OUR futures up one and one points, three tens of per percent, and the ansday futures right now up sixty seven points. That's up half a percent right now. And again our bed bath and beyond in the premark most actively traded, it is soaring up nine. As we look at treasuries, the inversion continues negative forty two basis points right now, the two year at three twenty and the tenure note two seventy nine. You are listening the Bloomberg Daybreak and just ahead we'll

look at the stories out of Washington this morning. And talked to Bloomberg Government reporter Emily Wilkins. Five states may determine the election, whether it can be stolen. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quick Take. This is a Bloomberg Business lash. I'm Nathan Hager watching futures on the rise this morning. Let's go right over to the First Word breaking news

desk for today's morning call. Here's Bloomberg's Tatiana Darya. Good morning, Tatiana, Good morning, Nathan. Futures are higher this morning, like we said, were all major averages, pointing to gates of about four tenths to six tenths of a percent. Treasuries are also higher, pairing backs some of Friday's losses. That tenure yield there down about three basis points to just under two spot eight percent. Oil is down one percent, and Bitcoin is

higher this morning, breaking above two thousand. In early trading in stocks were saying crypto links shares are gaining, Marathon digital coin based micro Strategy among the names gaining, and test Lap two after the Senate past a key climate bill that extends a consumer tax credit for the purchase of evs, Bath, Bath and Beyond is also up seventeen

percent in the pre market. Regarding earnings, Barrick's Gold up two percent after beating estimates, while by and Tech a d r s are down six after missing its numbers. In other news, Carolile Group CEO Q Song Lee stepped down in a sudden exit, announced like Friday Lie from the First and Breaking News desk, I'm Tatiana, Darian Nathan. Alright, Tatiana, thanks and some breaking news crossing the Bloomberg terminal. It is a done deal. Fightser is buying out global blood transaction.

Sixty eight dollars fifty cents to share to hear live breaking news over your Bloomberg type squawk on the terminal, s Q you a go, that's a Bloomberg business flash. And now here's Michael Barr mcmar on what's going on around the world. Michael Nathan, thank you very much. The Senate has approved the Democrats Economic Package. The legislation is less ambitious than President Joe Biden's original domestic goals, but it embodies deep rooted party dreams of slowing global warming,

moderating pharmaceutical costs, and taxing big corporations. Just out of COVID quarantine, President Biden heads were Kentucky with the First Lady today. They were tour the very hard hit eastern part of the state from deadly flooding. 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 here and on Bloomberg Quicktake, powered by more than twenty seven under journalists and analysts in more than one twenty countries. On Michael Barr and this is Bloomberg. Nathan Okay, Michael, Thanks at six forty nine on Wall Street. Let's turn to news

in science and technology now. The Bloomberg n j I T STEM Report is brought to you by New Jersey Institute of Technology, ranked to top fifty national public university by US News and World Report, and top ten in the nation for engineering by money dot Com. Learn more at n j I T dot E d U and now Here's what's making news and science, technology, engineering and math. Hong Kong has reduced the amount of time travelers entering the city must spend in hotel quarantine from seven days

to three. That's a greater than expected easing of its strict travel curves. Still, Hong Kong is isolated in a world that has mostly reverted to pre pandemic movement. Japanese technology company, soft Bank Group, reported a rect Or twenty three point four billion dollar net loss in the quarter. Soft Bank was hurt by the sell off in global tech stocks. Although it's portfolio isn't directly exposed to the

war in Ukraine. Soft Bank warned the global uncertainty, as well as inflation and soaring energy costs, would likely hurt its profitability. Profitability and beach crews have found the first sea turtle nest on the Mississippi mainland in four years. Scientists say the eggs likely belonged to a protected loggerhead sea turtle or an even rarer kemps ridley sea turtle, which is the most critically endangered species of the kind. The exact species of turtle won't be known until the

eggs hatch in fifty to sixty days. Only about one in ten thousand sea turtle eggs reach adulthood. That's the Bloomberg n j I t STEM Report. John all right, Nathan,

thank you. We are live for the Bloomberg INTERRANTO Brokers Studios where it is now six fifty one Wall Street, and that means it's time to check what's going on to d C of some of the top stories in our nation's capital, include of course, the you sent it passing the Democrats to landmark tax, climate and drugs bill, and the Big Takes story this morning, very interesting five

states may determine if the election can be stolen. And as you've been hearing from Michael Barr this morning, New York City's mayor greeting new bus loads of migrants sent by the governor of Texas. Let's take a deeper dive into these stories this morning, and I'm happy to say we're joined by Bloomberg Government reporter Emily Wilkins this Monday morning. Emily, Happy Monday. Let's start with the the Senate bill that was passed. What's in it and what's not in it?

So this is definitely something that that Democrats and President Joe Biden can claim as a huge win. It looked like it wasn't going to be coming together just a couple of months ago, and now for this agreement to have passed the Senate and making its way to the House, Democrats are feeling very very good this morning after an incredibly long weekend. This bill, it's much much smaller than

that initial six trillion package. This package only is about four hundred and thirty seven billion dollars in spending, but it is expected to reduce the federal deficit over time while allowing medic carriage to negotiate some drug prices, so that should mean lower prices of starting with ten high price drugs for Americans. And also includes a lot of funding for climate and energy, including tax credits for renewable

energy projects. And it will require companies to pay a fifteen percent corporate minimum tax for large firms and as well it has has a one percent excise tax on stock by bats and so those are you know, it's once again, this isn't the big, big bill that Democrats

were initially envisioning. But to get progress in these key areas of lowering drug prices, addressing climate change, and taxing major corporations, all of those are things that Democrats can easily claim as a win and can really go out on the campaign trailed, uh, you know this upcoming fall and really tout that win to Americans. Progressive Democrats to swallow this to a certain extent, certainly, there were things, you know, you talked with lawmakers after a bill like

this passes, and everyone says the same thing. You know, we didn't get everything we wanted. They didn't get everything they wanted, um and certainly, you know, progressives were hoping for more, and there are voters out there who are upset that Democrats weren't able to deliver on certain things like helping out with the cost of childcare, continuing the child tax credit, having pre k, having a wide range

of stuff that was initially discussed for the legislation. At the same point, I think for a number of months, they're all of Washington was kind of sitting with the belief that nothing more was going to happen, that the window of opportunity had shut, and so to have it reopened like this to actually get a bill through, I think everyone kind of spent a long time living in a reality where nothing was going to happen. And then Democrats were very eager to get any sort of chance.

And of course it's does the lap to pass the House. But we are seeing lawmakers who previously announced a lot of skepticists skepticism towards the bill be on board with it. For example, that state and local tax, the salt tax. There were a group of lawmakers who initially said they would not be voting for legislation unless they removed the cap that was put in place in this bill does not do that. And yet we have seen now at least one lawmaker come out and say that he still

will support that legislation. Does it make a difference come the November election, That's a really great question, John Um. I think that to a certain extent, we're not quite sure. This obviously gives Democrats, it's a win for them. It obviously gives them them something they can campaign on, It

gives them something they can talk about. However, if inflation continues to be high, if we see gas prices continue to be far, far higher than they were a year ago, it still might be really dif a cult for Democrats to censia victory. I mean, remember, the historical trend is that whatever party is empowered during the mid term winds

up having losses. And Democrats have such such narrow margins right now that really, even if they only lost a handful of seats, that would be enough to get Republicans control of both chambers. A fascinating big Take story on the Bloomberg this morning, five states determined if the election can be stolen in can you give us the Rundown on this. Yeah, this is a really interesting story that looks at just a number of different data points across America.

UM as far as elections, how easy it is to vote, how secure is the vote, and whether officials will respect the results. And what the article found is that you know, vote that that probably is going to be okay, but there is a really dark picture shaping out for what might happen in particularly as some of these state level officials who have a big role in certifying elections to

end up winning. Now, the article does look at all fifty states, but particularly spotlights Arizona, Michigan, Nevada, Wisconsin, and Pennsylvania as potentially being key states that could you know, it's a certain combination of votes and rules and lawmakers are in place, we might see concerns around the vote, UM as far as whether it's authentic or whether a

authentic and legitimate vote is then declared to be otherwise. UM. You know, you saw a number of cases this last time where local officials were under pressure to say that certain things that happened that that they did not remember. When Trump called up Georgia uh and as George's left officials to find him you know about you know twelve twelve thousand more votes. So certainly this is a huge concern, and I think a lot of it is We're going to have to wait and see exactly who's elected and

exactly what laws passed. And thanks, I appreciate it, Boomberg Government reporter Emily Wilkins. You can read more about these stories on Bloomberg dot com or the Bloomberg terminal. At a reminder, you can follow all the latest on Bloomberg

Radio in Washington. That's Bloomberg at one O five seven FM h D two at a head of the cash open on Wall Street futures in the green down futures right now one thirty seven points, that's the four tenths of a percent SMP Emmity futures, they're up twenty one points, up half a percent, the Nanzac futures up eighty eight points,

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