Bloomberg Daybreak: July 1, 2022 - Hour 1 (Radio)

a new DNA gun unit, Catch Criminal. I'm like long ahead, I'm Scott Santenberg, Kevin Durant. What's out the latest on NBA free agency? And the Yankees fell in Houston. That's all coming up in sports, That's all strained ahead on Bloomberg day Break on Bloomberg he Livened three on New York Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco syrius x M one nineteen and around the world on Bloomberg Radio dot Com and

via the Bloomberg Business Act. And good Morning. I'm Karen Moscow. I'm Nathan Haggard Bloomberg Daybreak brought to you by Informatica. In the Cloud, your data has the power to do the extraordinary. Managed data across any location in the cloud for accurate and actionable insights. More at informattica dot com. And futures are lower this morning. It is five oh

one on Wall Street. We checked the markets every fifteen minutes throughout the trading day on Bloomberg Right now, S and P futures are down fourteen points now futures down one D twenty and NAS day futures down forty seven. The docks in Germany is up to tenths of upper sent A ten year Treasury up five thirty seconds, yell two point nine and the yelled on the two year two point nine one percent, and I make screwed oil is at one point three percent at a hundred seven

dollars fourteen cents a barrel Nathan Karen. As we head into this second half, another bout of risk aversion is rippling across market, sending futures lower long along with treasury yields. The SMP five hundred had its worst first half since seventy. Is inflation and fears of recession take hold, but Brent Shooty, chief investment officer at Northwestern Mutual, has a positive outlook for the second half. I think you're already starting to

see signs of inflation pulling back. The market is already showing you that they believe it's going to pull back. I think that backdrop will lead to a stronger second half for stocks because we won't have to worry about the said continuing to hike US so far into a recession. Um we certainly could have a recession, but it would be very, very mild, and I think the market already

discounted that. Brend Shooty with Northwestern Mutual thinks the biggest risk to markets right now is rising energy prices and the war in Ukraine. Well, US features are lower, Nathan, It's more of a mixed picture across the pond in Europe. And Bloomberg's You and Ponts joins us line from London with the latest good Morning You in Good Morning Counter ninthan. Plenty of sunshine in London this morning as July gets on the way, but a damp starts to the month.

Equities with your Stock sounded up one tenth of one percent on lower than average volumes. Damn, certainly an improvement on the powerful storm that was the first six months of the year. It was the worst first half of the stockie hundred since two thousand and eight, the European benchmark shedding seventeen percent of its value between January and June. Live in London, I'm you and pots in big day break,

kind of grace guys in Asia as well. You and with the looming economic slowdown driving another bad of risk a version there as well. Bloomberg's Juliette Sally joins us with more from Singapore. Good morning, Juliet, Good morning Nathan and Karen. The MSCI Asia Pacific Index started the new trading month quarter and half, where it finished off in the red. The gauge fell for a third session, led lower by Japan, and tech stocks hit hardest on growth concerns.

Taiwan's tai x on track to enter a bear market, down twenty from its January peak. Stocks in Maitland, China meandered between gains and losses, and Hong Kong was closed for a holiday. The yen climbed, while commodity linked currencies were on the back foot, and India's rupee dropped to a record loan in Singapore. Juliette Sally Bloomba daybreak Right, Juliet, thank you all. Oil chocked up his first monthly decline since November. A lower consumer spending in the US and

fears of our accession. We're pushing prices down. Prices are higher this morning. Nim Ex Screwed Oil up one point four percent, up a dollar forty seven and a hundred seven dollars cents, and Barrel brand is up one and a half percent at a hundred ten dollars sixty eight cents. Well, it's like at crypto now, Karen. Fresh off its biggest ever monthly declimb, Bitcoin's whip song traders today, Bloomberg's Granita Young joins US Live with Mark. Good morning, Granita, Good

morning Nathan. Bitcoin rallied as much as eleven percent in Asia earlier today, It quickly gave up most of those gains as global equities took a dive. Bitcoin's wild swings underscore the uncertainty looming over cryptos as investors struggled to assess how far central banks will go detain inflation. And adding to that confusion, major crypto players have been thrown into disarray by the market sell off. That's raising the prospect of further contagion. Right now, bitcoin is trading around

twenty thousand. Live in New York. I'm really need a young Bloomberg daybreak. All right, we need to thank you. We turned to Washington now, where the top Republican on the Banking Committee says the economy faces a significant risk over session. Pat Toomey points of the Federal Reserve, saying the central Bank has taken a position where they're not accountable to anyone. We have the situation where the FED

is basically stonewall in Congress. The regional banks and to some some extent, the main FED are taking the position that what we do is none of your business. We're an independent agency. You can't really look very close down what we do. That's outrageous, right, The FED exists as a creature of Congress. Senator Pat Toomey said the FED must be more transparent and his subject to greater Congressional overside. He spoke with David Weston on Bloomberg's Balance of Power.

Catch the program weekdays at noon on Bloomberg Radio and Television. We'll staying in Washington Karen fallout from this week's January six committee hearing remains front and center. Coacher Liz Cheney says the Secret Service agents involved in the reported incident with former President Donald Trum will now testify. Bloomberg said Baxter has the story. Cheney says she wants them under oath. The committee has spoken to both uh, Mr Ornado and

Mr Angel. We welcome additional testimony, and says the committee will also detail witness intimidation by the White House. The way that I would put it is that it gives us a real insight into how people around the former president are operating and that they can influence the testimony of witnesses before the committee. She says, it will draw a clear picture. In San Francisco, I'm at Baxter Bloomberg daybreak, right,

and thank you. Turning to Hong Kong now, where Chinese President Ji Jimping is presiding over celebrations marking twenty five years since the UK returned Hong Kong to China. Former police official John Lee has been sworn in as a city's chief executive. Ceremony comes as Hong Kong sees China tighten its grip on the city in Ukraine, care and Russian missile strikes hit an apartment building and a recreation

center near Odessa earlier today. Seventeen people were killed. It comes after Moscow withdrew four verses from the strategic point of Snake Island. Ukrainian President Vladimir Zolinski's welcoming Russia's departure Moscow says it was a move to east grain shipments. Kiv says Russia was forced out by shelling. Futures moving lower this morning, and straight ahead, we have your latest local headlines and a check of sports. This is Bloomberg and it's now five oh seven on Wall Street where

it's seventy three degrees in Central Park. You've got a closure on the northbound sawmill in the Bronx. Details coming up in traffic. First Michael Barb with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York Governor Kathy Oakel said she will convene a special session of the legislature today to begin considering legislation and shrining abortion access in the state's constitution.

HOCl says the state will take action to protect its people in response to Supreme Court rulings on abortion rights and gun safety. It comes as New York lawmakers began a special legislative session yesterday with the intent of limiting the proliferation of firearms in public after the High Court got at the state century old handgun licensing law. New rules being rushed through an emergency session of the legislature would seek to set new restrictions on where firearms can

be carried. Police in New Jersey say nine people, including a teenager, were wounded last evening in gunfire outside a neighborhood grocery shop in Newark. Acting Newark Public Safety Director Paul Malav says police are searching for a vehicle believed to have been involved in the shooting. We do have a vehicle that is of interest at this point. It's a white hand of pilot UH stolen out of Geergy City and we're following that. Lead public Safety Director Malav

says all of the victims are expected to survive. New York Mayor Eric Adams says the city has launched what he calls the country's first ever forensic DNA gun crime unit. Adams says the new units with the city medical Examiner's office in Manhattan will be made up of twenty four full time criminologists who will process evidence. State of the art. The unit will accelerate evidence testing from sixty days to

thirty days. It's going to cut it in half so that we can prosecute case faster and get dangerous people off our streets. Medical experts say they think COVID could come roaring back in the fall. Mayor Adams also says New York City announced a new Test to Treat mobile unit. It's in a joint federal and city program to improve access to the COVID anti viral drug PACKSLOVIT. This new public health service will help all New york Is get

access to life saving treatments. Mayor Adams says the city helps to open nearly three dozen mobile units by the end of this month. W NBA star Britney Grinder is set to go on trial today in a Moscow area court. Grinder was arrested on Cannada's possession charges at a Russian airport. 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. Michael bar

this is Bloomberg, Nathan. Thank you, Michael Damn. We're coming up to five ten on Wall Street. Time for the Bloomberg Sports Update. Here's Scott Seidenberg. Thanks Nathan. The bombshell that rocked the NBA world yesterday, Kevin Durant has requested a trade away from the Nets. The surprise announcement comes just a day after Kyrie Irving announced he was opting in it to the final year of his deal. Durant

has four years remaining on his contract. Meanwhile, the Nicks have come to an agreement with free agent point guard Jalen Brunson on a four year, one hundred and four million dollar deal. Elsewhere, reigning two time m VP Nicola Yokis has agreed to a MAX extension with the Nuggets. It's the largest deal in NBA history. Also getting max extensions Devin Booker with the Son's, John Morant with the Grizzlies, and Karl Anthony Towns with the timber Wolves. Baseball, yesterday,

the Yankees fell to the Astros to one. They'll begin a set in Cleveland tonight. The Mets will host the Rangers Tennis at Wimbledon, Rafael Nadal, Tech Advance Americans, Coco Golf and Jessica Pagoula move on sixth seed Carolina Plaskova was upset. I'm Scott Edinburg with Bloomberg Sports, Nathan Scott, thanks a lot, getting ready to start off the second half of two and futures at least for the moment are pointing to even more losses after the worst first

half for stocks. Yes, we'll say it again since nineteen seventy. Right now, SMP futures are down eight points down, futures down seventy two. NASTAC futures are lower by twenty four points. Different story overseas. The decks in Germany is higher by four tenths percent. The CAEC in Paris is up a half percent. The tenure treasury back here in the US is up for thirty seconds, the yield now at two

point nine nine percent. We'll look ahead to the second half and the risks of inflation and the potential slowdown if not a recession. Kit Juke's chief ex Strata just at suck Gen joins us. Next. This is Bloomberg Bloomberg eleven three oh weather Late day shower thunderstorm possible today low nineties, will be in the upper eighties tomorrow, low eighties Sunday sunshine, and eighty five for the fourth of July.

Right now seventy three in Central Park markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. He's a Bloomberg Business Flash, then I'm Cameron Moscow. Another bound of risk a version rippling across global markets, sending US DOT Index futures lower and lifting bonds and an ominous start to the second half. The dollar and yen traditional

havens are climbing. If you checked the markets every fifteen minutes throughout the trading day, on Bloomberg, SNP future is down about seven points down, futures down fifty six, nast day futures down twenty the acts in Germany's up three tents of upper cent. Ten year treasury up seven thirty seconds yield two point nine eight percent, yield on a

two year two point nine one percent. NIMEX scrude oil up one point eight percent of a dollar eighty eight at a hundred seven dollar, sixty four cents of barrel commacs gold is down six tenths per cent or eleven dollar seventy cents is seventeen nine sixty announced, the Euro one point oh four or five seven against the dollar, British pound one point two zero nine six, the n one thirty five point four five, and Bitcoin this morning is higher of four percent at nineteen thousand, five hundred.

That's a Bloomberg business flash. Now here's Michael Barr with Moore on what's going on around the world. Michael, thank you very much. Jaren Ukrainian authorities say there was a Russian missile attacked to day on residential buildings in a coastal town near the port city of Odessa. At least seventeen people were killed, including two children. The top Republican on the House January six Committee, Congresswoman Liz Cheney, says the penel may ask the Justice Department to investigate anyone

accused of pressuring witnesses. Florida's parental rights and education law that critics have dubbed that don't say gay measure begins today. It bands teaching on gender identity or sexual orientation in grades K through three in the state. In baseball, the Yankees lost, along with the A's Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalists and analysts more than a hundred twenty countries. Michael bar and this is Bloomberg.

Nathan all right, Michael, thank you. It's five nineteen on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak, And as we get ready to kick off the second half of two, are very pleased to be joined this morning by Kit Jukes, Chief FX Strategists Associated General. Although when you look at the screen this morning, Kit, it looks like at least US investors are having a little bit of trouble closing the books on the first half,

were pointing two more losses in the futures contracts. How much more pricing in of recession risk and inflation concerns does this market have to go? Uh? We could, We could go a fair distance further. Unfortunately, before we're done. One of the things you see at the moment is that sentiment has taken a real dive. But I'm not

sure that the positioning data reflects the same thing. So I'm not sure people have got out of all of those longer positions that they had in stocks, particularly m But you know, equally, I think we've got relatively a liquid markets coming through. And you know now that certainly your government is all your central bank is selling back bonds to the market. We have a lot to absorb here to get the place, to get everything for the

right place. So I'm i'm I'm nervous that July August, never the best most liquid months of the era, are going to be pretty bumpy all the way through. Not that people are surprised by the fact that consumer confidence is weak, for example, and that we're all struggling with the rising inflation, but just that we just have to

absorb the selling pressure that that's coming to us. And we just got a new inflation data out this morning from the Eurozone to some of the highest inflation that the nineteen countries that share the euro has seen in their history eight point six percent. What's the difficulty for Europe compared to the US when it comes to getting

the reins in on these price pressures. Look, I think the problem is going to be faced by everybody in more or less the same way that policymakers who have had central banks have had a relatively easy ride for twenty years in terms of inflation. They couldn't get enough of it. Now they're facing this kind of multitude of factors driving keeping inflation high. Some of them they can't do much about. They can't control the price of gasoline.

They can't control the price of jet fuel, which which we can all see being pushed up by by oil prices, but also by by the difficulties getting the rest of the of the products produced an apt and sufficient quantities um some bits. You know, we're going to see some pressure on wages. That's shortage post pandemic of all to serving at the bar of people to put your luggage

into your airplane for you to go on vacation. That's going to be around, that's going to get passed on, and well, we'll see more of that that will be solved. The second kind of problem with weaker growth, higher rates will slow the economy down in Europe and in the

United States. Where we'll have a dilemma is that we're seeing softer growth and higher inflation, and the central banks are facing really much harder choices and that they're not going to have a good time of it UM and I suspect though, in this occasion they're going to be resolute. So we'll we'll see rate hikes in July from from both the European Central Bank and SHIFT for that matter, the Bank of England and and the and the Federal

Reserves that they'll raizor rates into what is clearly calling economy. Now. Yeah, I don't think we're hearing much anymore about the idea that these inflation pressures are transitory. But what do you think it's going to take? How long do you think we're going to be dealing with a lot of these price pressures that, as you say, are outside of central bankers control, things like the supply chain, bottlenecks, the issues with energy, with the war in Ukraine still continuing. I

think those, you know, I think it's grubbing. Some of those get easier as as grows slow, So you hit the economy hard enough, we do we do stop driving or as so much pretty quickly. You know. I don't know whether I sit here in Europe and watch massive cues of people trying to get into airports which are short of UM staff to check people in and to get luggage onto planes and stuff. We we might we might use a lot of jet fuel to to go on vacation this summer because we promised the kids we

were going. But we might all stay home all the way through to Christmas after that, and so you know, you could see demand come off by a lot. But but yeah, you know, we we if we take Russia out of the if we take Russia out of the equation on energy supplies to a significant degree, then then the reality will be um that uh, it's going to

take a lot of economic weakness to reduce demand. In fact, it's almost impossible to reduce demand by enough to solve at and getting uh and getting more jet fuel and so on produced. Frankly, we need more investment in the industry, and we haven't seen much of that, so those will

take time. What we'll probably see is that at least prices stabilize, come off a little bit, so the year over year moves and inflation start improving somewhat, but they're almost bound to settle down as a higher than they used to be pretty high plateau um sometime in the in the early part of next year. They'll steady out at the level that's still not what we like. In the central banks, I fear will feel that this is a battle they have to win and the hammer inflation lower,

you know, for a fairly long time. Very tough job a head for central bankers. Thanks for this kid, great getting your thoughts. Kit Jukes, chief ex strategists at SoC General SMP futures down six points, more losses potentially in store frequity investors in the US now futures down fifty seven points. In NASTAC futures on the decline by sixteen points. This is Bloomberg Bloomberg eleven three O weather Hot one could see a light day shower storm today with highs

in the low nineties. Some storms possible tomorrow and the next day, but we're expecting a sunny and mid eighties fourth of July. Right now seventy three degrees broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C, Bloomberg ninety nine one to Boston, Bloomberg one oh six one to San Francisco, Bloomberg nine sixty to the Country, Sirius XM to the one nineteen and around the Globe, the Bloomberg Business APT

and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow here just about four hours away from the open of US trade. Let's get you have to date in the news you need to know at this hour and not another bout of risk. Aversion is rippling across markets this morning, sending US futures and treasury yields and lower the SNP five heads worst first half since nineteen seventy as inflation and fears of a recession

take hold. But Brent Shooty, chief investment officer at Northwestern Mutual, has a positive outlook for the second half. I think the big risk still is um certainly what's happening in Russian Ukraine and energy prices and how long those stay where they're at, and are we, you know, typically are we going to be in more of an energy shock

for some period of time. That certainly has how to staying power on inflation so far, but I think you're starting to see everything else kind of depreciate around it, which I think is a good news for inflation. But certainly that is still one of the bigger risk that's out there. Brent shooting with Northwestern Mutual believes the biggest risk to markets right now is rising energy prices and

the war in Ukraine. Well oils coming off its first monthly declined since November this morning, Karen, Lower consumer spending in the US and fears of recession did push crude down, but checking prices now, nimex cruds higher by one point six percent of a dollar sixty seven one oh seven forty three for a barrel of West Texas Intermediate, and Brent right now is a ten dollars eighty seven cents Well Nathan, Fresh off its biggest ever monthly decline, Bitcoin

is whip sawing traders with wild swings today and Bloomberg's RINEDA Young joins US Live with more Good Morning Rania, Good morning Care, and bitcoin rallied as much as eleven percent in Asia earlier today, it quickly gave up most of those games as global equities took a dive. Bitcoin's wild swings underscore the uncertainty looming over cryptos as investors struggle to assist how far central banks will go to

tame inflation and adding to that confusion. Major crypto flight players have been thrown into disarrayed by the market sell off. That's raising the prospect of further contagion. Right now, bitcoin is trading around nineteen thousand Live in New York. I'm Ranita Young, Bloomberg Daybreak. Okay, Nita, thanks so Starting to Washington now, where there's more fallout from this week's January

six committee hearing. Vice chair List Chain says the Secret Service agents who are involved in that reported incident with former President Donald Trump will now testify before Congress. Well overseas, Nathan, Chinese President she Jimpeng has presided up our celebrations marketing twenty five years since the UK returned Hong Kong told China former police official John Lee has been sworn in

as the city's chief executive and Ukraine careen. Russian missile strikes sent an apartment building and recreation center near Odessa earlier today, killing eighteen people. That comes after Moscow withdrew forces from the strategic point of Snake Island. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg three on Wall Street, where it's seventy three degrees in Central Park and still dealing with the closure of the northbound sawmill in the Bronx. We get they

did the details in Traffic First. Michael Barr is here with more on what's going on in New York and around the world. Michael, thank you very much, Nathan. New York Governor Kathy Oakle said she will convene a special session of the legislature today to begin considering legislation and try in abortion access in the state's constitution. According to a statement overnight from HOCOL, the state will take action to protect its people in response to Supreme Court rulings

on abortion rights and gun safety. Hoco went on to say recent Supreme Court rulings have threatened the rights of New Yorkers to make decisions about their own bodies and our right to protect New Yorkers from gun violence. It comes as New York lawmakers began a special legislative session yesterday with the intent of limiting the proliferation of firearms in public. New rules would seek to set new restrictions

on where firearms can be carried. Authorities in Newark, New Jersey, say nine people were shot in the suspected drive by shooting. Investigators say they're looking for a white Honda Pilot stolen out of nearby Jersey City. New Ork's acting Public Safety Director Rule Mala. Five of the shooting victims were able to h get themselves to area hospital on their own. Out of those five, one of them was a juvenile seventeen years old. All of those vict hims are in

stable condition. Public Safety Director Lave says all of those shot and are expected to survive. New York Mayor Eric Adams calls that the country's first ever forensic DNA gun crime unit as the city remains on edge over a number of shootings. Adams spoke at a news conference outside

Medical Examiner's office in Manhattan. The two point five million dollar unit will hire train twenty four forensic scientists dedicated to testing and analyzing of evidence from gun crimes throughout the five borough Mayor Adams says the unit will accelerate evidence testing from sixty days to thirty days. New York Governor Kathy Hucles signed a bill extending mayoral control over the New York City school system. It's a mensa key

power for Mayor Adams. Just minutes before he was sent to expire, Global News twenty four hours a day on air and on Bloomberg Quicktake powered by more than journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. Thank you, Michael on Wall Street. Time for the Bloomberg Sports Update. Good morning, Scott Seedinberg,

Good morning, Nathan. As NBA free agency begames, the Nets received the news yesterday that Kevin Durant requesting a trade, the announcement coming just day after Kyrie Irving announced that he was opting in to the final year of his deal. Durant does have four years remaining on his contract. Meanwhile, the Knicks have come to an agreement with free agent point guard Jalen Brunton on a four year, one hundred

and four million dollar deal. Elsewhere, reigning two time m VP Nicola Yokis has agreed to a MAX extension with the Nuggets. It's the largest deal in NBA history. Also getting max extensions Devin Booker with the Sons, John Rant with Grizzlies, and Karl Anthony Towns with the timber Wolves. Baseball yesterday, the Yankees felt that the Astros to one

here was Aaron Boone. You know they've done a good job of for the most part, holding us down and um, you know that's gonna happen sometimes against UH teams to the Yankees beginn set in Cleveland. Tonight, the Mets will host the Rangers. Tennis at Wimbledon. Lafe Ladal Egatic Advance Americans Cocoa Golf, and Jessica Pagoula move on six seed. Carolina Plaskova was upset. I'm Scott Seginburg with Bloomberg Sports. Nathan all Right, Scott, thank you. We're coming up to

five thirty seven on Wall Street. It's time for the Tri State Business Report. Here's Bloomberg's Ed Corey. New York State has rejected the renewal permit for a power plant used by green Ridge Generation Holdings for bitcoin mining. That decision comes after months of delays. The Department of Environmental Conservation says it denied the application because of statewide limits

on greenhouse gas emissions. Eleven Madison Park explored raising hourly wages by thirty three present in September, but scrapped those plans after a negative New York Times review. According to Business Insider, the restaurant, which shranked number one on the world's Best fifty restaurant list in seventeen planned to announce wage and menu price hikes in an op ed piece

that was never published. New Jersey Governor Phil Murphy has signed a fifty one billion dollars spending plan with property tax relief in a full pension payment for the second year. The budget, which is for the fiscal year starting July one, is thirty five recent higher than Murphy's first in eighteen. That your Bloomberg Try and State Business report. I'm Ed Corey. Thank you, Ed. It's almost on Wall Street. Bloomberg Radio is on the air from San Francisco to New York,

London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred a fillion radio stations around the world. I'm Steve Podascan on K and X in Los Angeles. We're talking about how advertisers are flocking to streaming services, has fewer people watch traditional TV. I'm Joan Doniger killing k f A D listeners in Omaha. The weather in the next few months will determine what a global food inflation slows down. I'm Gina Servetti in for w C

c O in Minneapolis. I'm reporting that here Salon owner Regis has sold its Open Salon pro booking app to Zenoda at last Mateo. And on w b Z in Boston, I'll be reporting on a new trend in the electric vehicle market, car flipping. I'm Stephen Carol and Bloomberg d a Battal Radio in London. We've been reporting on travel chaos that you were of airports dashing hopes for a bumper summer season. I'm Ad Cory on w w J

in Detroit. I'm reporting most US automakers will report second quarter sales results today, and those are some of the stories that are hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion.

This sedatorial was written by the Bloomberg Editorial Board. For decades, US companies have been making a significant omission in their financial statements the full cost of their contribut usians to climate change. This matter is not only for the planet's future, but also for investors today. It makes some businesses look more profitable than they really are, and it prevents others

from realizing the value of new and greener opportunities. The Securities and Exchange Commission wants to address this by requiring better disclosure of climate related costs and risks. Its proposal is an excellent idea, requiring only minor adjustments. No doubt full financial recognition of climate change will be a challenge for corporate America creating new winners and losers, But the sooner the process gets started, the less disruptive it will be.

This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or ope I end go on the Bloomberg terminal. This has been Bloomberg opinion, and you can hear Bloomberg opinion editorial every weekday. At this time, terminal customers can read more at O P I n GO. Future is pointing to more losses as we head into the second half.

Right now, SMP futures are down ten points, Staff futures down eighty three, Nasdaq futures are lower by thirty six points. In the tenure, Treasury yield right now two point nine eight percent Bloomberg eleven three oh, weather hot, maybe stormy later today low nineties, will be in the upper eighties tomorrow, low eighties Sunday. Sunshine finally returns for the fourth of July.

How about that seventy three degrees right now? Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg picktape, He's a Bloomberg Business flash and I'm fair at Moscow.

Another bout of risk aversion rippling across global markets, sending US dot index futures lower and lifting ballons, and an ominous start to the second half of two The ten uere U S treasury yields sliding below three percent of the lowis in's early June, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg SMP future is now down about eight points, down features down to sixty seven and as dagg features down to thirty five.

The decks in Germany is up half percent, the ten year treasury up six thirty seconds, yield two point nine eight percent, and the yield on the two year two point nine one percent. Nim X screwed oil is at one point eight percent of a dollar eighty eight at a hundred seven dollars sixty four cents of barrel comex gold down seven tenths percent or twelve dollars at seventeen

thirty announced. The euro one point oh four six two against the dollar, British bound one point two zero eight too, and the ends at one thirty five point five to Bitcoin is up three point eight percent at nineteen thousand, four hundred fifty dollars. That's a Bloomberg business flash. Now here's Michael bar with more on what's going on around

the world. Michael Karen, thank you very much. At least seven and teen people are dead after Ukrainian authorities say there was a Russian missile attack on residential buildings in a coastal town near the board city of Odessa. Two of the dead our children. President Biden is urging the US send it to change it's filibuster rules to respond to the landmark Supreme Court abortion rights ruling. In response, Senate Republican leader Mitch McConnell said the president's statement undermines

justice and the rule of law. In baseball, the Yankees lost, along with the a's Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analyst more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan Alright, Michael, thank you for coming up to five forty nine on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and we want to

turn to an important event overseas. Hong Kong is marking twenty five years since the handover of the former British colony back to Chinese rule. President Shi Jinping is promising a new era of order will bring a brighter future to a city that has been rocked in recent years by social unrest and of course the shocks from the pandemic. Joining his life from Hong Kong this morning is Bloomberg's von Mann with more on She's visit and the future

of this global financial hub. Yvonne, good morning. It's pretty significant just for President she to be in town after spending the last nearly three years on the mainland. What more did he have to say about his vision for Hong Kong. Well, what strucks me the most nating was just the positivity that he was projecting in this speech. He was very optimistic and as them who tried to pivot the city away from what has been a political

storm in the last few years. You've talked about the political descent that has essentially been frush now two years of the day that we have seen this natural security legislation be imposed. But he talked about moving from chaos to governance. Seemed to be kind of a sideswife on carry lamb THEFO much consecutive during her tumultuous term and what had just said thing that crackdown on the democracy movement, saying that after the storm, Hong Kong is reborn from

the ashes. He focuses more now on prosperity, he says, the economy and that hopefully the Hong Kong can move away from what has been a very tumultuous time, and about this relationship between government and market should be better balanced. It seems like it was kind of a warning shot to some of the real estate tycoons here that sort of kind of have a very tight grip on the

real estate market here. So certainly there was a lot of messages here, but in terms of policies and what this means to the future of Hong Kong has an international hub. I think most were pretty disappointed that we didn't get much on that front, and I wanted to ask whether the business community shares that optimism that President

she is trying to project here. What's the feel among global business leaders who have headquarters in Hong Kong still about where things stand now with the imposition of this

national security law. I think when we been speaking to a lot of foreign chambers here that seem to be cautiously optimistic that now that there is this new administration uh that perhaps this is designed for for Hong Kong can try to rebuild itself, and they've been try to rebuild its competitiveness as a Hong Kong by international pub I should say, but the key crucial things for the business community still remains not so much national security, but

more about Hong Kong's COVID zero strategies. We've we've seen a lot of foot slopping during Carry Lamb's term. There is still no exit plan from the central government nor from John Lee's new government as well. And they say in order for the financial world to continue, for people to be traveling in and out and doing business here.

That is still essential. So I think for the next five years, an Things said, it is critical that during this term that John Lee delivers and he talks about the uniqueness of Hong Kong and that you know Beijing does support that. So what that means when it comes to COVID zero strategy that I think it's still the main to to TBD at at this point, Nathan. But I think in terms of answers on that that is

to the priority among the disappear. What more do we expect from the new Chief Executive of Hong Kong, John Lee. Are we expecting that he's going to be much change in terms of stance toward Beijing from carry lamb with I think was seen as pretty loyal to the Beijing government, right, m right. And if you take a look at John Lee, he has a career in law enforcements and in security.

He was the one that oversaw the implementation of his National Security law, so there is also this sort of perception that national security will remain a top priority under his term. But when you hear from other foreign chambers saying that when they have met with John Lee, because he has no track record with finance, with the economy, with with social issues like how evenings for example, that

perhaps he's more willing to listen. So what we heard was that he's a bit more pragmatics and willing to listen to the concerns from the foreign business community here. So perhaps that's why they still remained hopeful that there could be some changes along the way. But then again, you know, national security, that still remains something in the back burner for now. I think once we do hear more clarity on the COVID Heroal Fund, the issues of data security the like will start to re emerge again.

Thanks for this, Von, good having you with us this morning. Yvon Man joining us live from Hong Kong on the anniversary of the handover from the UK. Karen, sorry, Nathan, thank you. It is five three on Wall Street, and now for a legal story we're watching this morning. On the last day of the term, the Supreme Court cleared the way for the Biden administration to end Trump's Remain in Mexico policy, which required asylum seekers to stay in

Mexico while their cases are processed. The Court was divided five to four, as Chief Justice John Roberts and US dispread. Kavanaugh joined with the three liberal justices and the majority for more in the decision. Bloomberg's June Grass So speak to Lee on Fresco, a partner at Holland and Night and former ahead of the Office of Immigration Litigation at the Justice Department. How much of a victory is this

for the Biden administration. Well, it's an interesting victory in the sense that it's a victory that comes with strings attached to it. And here's what I mean. So, the Biden administration, first of all, gets a nent victory on being able to end the remain in Mexico migration Protection protocol program because the order of the lower Court enjoining

the ending of that program is now vacated. So that now means that unless the lower Court is willing to re enter that order under different circumstances that we can discuss in a second, at the moment, the Biden administration

can end the migrant protection protocols. The reason why I a it's a victory with strings attached is number one, there may be litigation that changes other things about this program that might hurt the immigrants rights community and the Biden administration But secondly, now there will be a lot of pressure on the Biden administration to expedite the appeal to end Title forty two, which is something they may not want to do, which, as you may recall, is

the authority being used to exclude people from entering across the southern border because of COVID, where right now the numbers are pretty high on terms of people trying to enter the southern border. And even of my Chief Justice John Roberts, how did he come to the conclusion that the Biden administration didn't have to keep the remaining Mexico

program ongoing. The issue is that the statute says very clearly uses the word may, meaning that if you cannot detain someone who you encounter at the southern border, you may then play east them in this remain in Mexico program and move them into Mexico awaiting asylum hearing. It doesn't say shall, it doesn't say if there's not the tension space, you have to use this remain in Mexico program.

And so what Justice Robert says in his decision is because it says me, you can't read a shill into this. There's no way to read that there's a requirement that if there's not detention space, you have to do this. And as Leon Fresco, a partner at Holland and Knights, speaking with Bloomberg stun Grosso. Catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law Podcast or downloading the show at Bloomberg

dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at V law. Go and futures this morning, while they have been trimming in their declines, here s and P futures are now that will change now if chears down thirty three and NASDAGG futures are down nine. The decks in Germany is up half percent and the ten year treasury up eight thirty seconds. They

yield two point nine eight percent. They yield on the two year two point nine one percent. Nine meg screwed oil is on the rise, up about two percent now up two dollars eleven cents at a hundred seven dollars eighty seven cents of barrel, and Comex's gold is down seven tenths percent at SEV ten an ounce sets down more than twelve dollars the euro one point oh four or five nine against the dollar. They end at one

thirty five point six four and still ahead. On Bloomberg day Break, we have a check on the business headlines and all the news you need to start your day. And this is Bloomberg