Bloomberg Daybreak: July 11, 2022 - Hour 1 (Radio)

Steve Bennon's attorneys saying he is now willing to testify before the January sixth House Committee plus Senate ma Geority Leader Schumer asked covid, I'm Michael blomen more ahead, I'm on Stagon Sports the Yankees for the second night in the road. Blue Lee lost to the Red Sox in Boston. The Mets were shut out. They visit the Braves tonight.

That's all straight ahead on Bloomberg day Break on Bloomberg eleven Free on New York Bloomberg ninety nine one, Washington, d C Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio dot com and via the Bloomberg Business. Good morning. I'm Nathan Hagar and I'm Karen Moscow. When US dot in next, Futures are moving lower this morning.

We're coming up to FACO one on Wall Street, and we check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, US and futures are down twenty six points down, futures down two and NASTAG futures down. In the ten year treasury at five thirty seconds, you have three point oh five percent, and they yield on the two year three point oh seven per cent. Nathan, Karen,

We're keeping an eye on Twitter shares this morning. They are down six and three quarters percent in early trading as the showdown between Elon Musk and the social media company appears headed for court. Let's get the latest live from Bloomberg's Rnita Young. Good morning, Granita, Good morning Nathan.

Even though Elon Musk is backing out of the forty four billion dollar deal to buy Twitter, after all, he can't just walk away without a court case, and Twitter has lawyered up in a race to sue Musk to follow through on his end of the agreement, Bloomberg sources say of filing could come as soon as early this week. Now. If the judge rules against Musk, he could be forced to pay Twitter shareholders fifty four dollars and twenty cents

a share. But a ruling in his favor would let Musk walk, although he probably have to pay a one billion dollar breakup fee. And there's still also the prospect that both sides could reach a settlement where Musk still makes the acquisition, but potentially at a lower price. Live in New York, I'm rened a young Bloomberg Daybreak, all right, rened to thank you about the Twitter news is also

impacting another stock this morning. Shares of Digital World acquisition are up more than twenty four percent on heavy volume and early trading. Digital World the company emerging with former President Trump's Trump Media and Technology Group, which owns his Truth social platform. Well, stocks overall are lower this morning, Karen, as we begin a new trading week in Asia, Overnight, a resurgence of COVID flare ups led to a drop of almost three percent for Hong Kong's Hang Sent Index.

Let's get the recap from Bloomberg day Break Asia anchor Bran Curtis, most Asian benchmark slid COVID cases in Shanghai arising as the city faces more mass testing. In Macau, authority shut down casinos and other businesses for a week. As a result, casino shares took a big hit. Tokyo, though was a bright spot after the ruling coalition won a stronger majority in the upper house election. The end was the weakest. Major currency traders see the election result

as an endorsement of Japan's ultra easy monetary policy. In Hong Kong, Brian Curtis, Bloomberg day Break, Brian, thank you back here in the US. We have conflicting calls this morning, and whether the reason stock rally will continue. Morgan Stanley Chief US equity strategist Mike Wilson says it won't. He thinks the surge in the dollar will be a headwind

for corporate profits. On the flip side, City Group strategists say stocks are likely to rally in the second half as corporate earnings remain resilient to searching inflation and slowing economic growth. The S and P five hundred is up about six per set since it's mid June. Low well speaking of earning screen reporting season gets underway this week as we hear from the country's biggest banks. More on that from Bloomberg's Charlie Pellett. The question on everyone's mind

is is a recession coming? On? What clues will the latest batch of earnings reports provide. Scott croner To is a strategist at City Group Global Markets. What we're expecting to see is a follow through of the earning the nurse we got in Q one, so we're looking for mid single digit EARNIE shows for the SMP in total. We think we'll make the Q two expectations. Certainly C suites will express caution regarding the second half outlook. Wall

Street Banks leadoff second quarter earnings JP. Morgan Chase and Morgan Stanley report Thursday, City Group and Wells Fargo on Friday in New York. Charlie Pellett Bloomberg Day Break, All right, Charlie, thank you all. On the economic front this week, it's all about inflation, with readings coming on consumer and producer prices. We get a preview from Bloomberg's Vinnie down ju Dice. June's household inflation probably ran close to nine percent based

on Wall Street forecast. That's taking a toll. Bloomberg econonamics is average hourly earnings have been shrinking for more than a year when taking inflation into account. Look for that trying to drag on with the household inflation rate projected to run at or above seven percent through year end. We'll get the consumer price index Wednesday, as well as data on producer prices Thursday and import prices Friday. Benny

Delta s Bloombergday Break. All right, Benny, thanks, And when it comes to tackling inflation, the Biden administrations thinking about lowering tariffs on Chinese imports is one way to provide relief. President Biden says he is still holding discussions on the idea. Commerce Secretary Gina Raimondo expects a decision from the President shortly. If he decides to lift certain tariffs, it will be because he knows he has to think about doing everything

he possibly can to provide any relief to consumers. Secretary Ramando made that comment on NBC's Meet the Press heard Sundays on Bloomberg Radio, and stay tuned for more from the Commerce secretary later today. Gina Ramondo said it's down with Bloomberg Radio and Television for an interview in the eleven AM Eastern hour. Well in Europe this week, Nathan, the race is heating up to succeed Boris Johnson as British Prime Minister. Let's go live to London and get

the latest at the Bloomberg's un parts. Good morning you, Good morning Karden, Nathan. Just days after Boss Johnson was pushed into resigning, there are now eleven candidates to succeed him as Conservative Party leader. Liz Trust, the Foreign Secretary, is the latest ends of the race. She's making tax cuts the hearts of her campaign. Lomakers were expected to begin voting later this week. As the field is narrow to the final two candidates, one of them will become

the UK's next Prime minister. In London, I'm you in parts between BOK Daybreak, Okay you and thanks. Let's stay in Europe where natural gas prices are falling today. That's after Canada said it would return a stranded turbine for the nord Stream pipeline between Russia and Germany that could potentially increase flows, which have been limited since last month.

The nord Stream pipeline between Russia and Germany is currently undergoing routine maintenance at the same time the war in ukry in his sparking concerns that maybe Moscow will not open the pipeline back up after the work. SMP future is now down twenty one points. Now futures down a hundred fifty three NASTAC futures are lowered by eighty four points. The tenure treasury is up five thirty seconds for a yield close to three point zero six percent. Your latest

local headlines into check of sports. Next, this is Bloomberg and it's now five oh seven on Wall Street where sixties seven degrees in Central Park already a problem if you're heading to the Kennedy Airport. There's an accident on the westbound Belt Parkway across Babel of Our details coming up in Traffic. First, Michael Barr with more on what's going on in New York and around the world. Good morning,

MI Call, Good morning Nathan. Donald. Trump's one time adviser, Steve Bannon, has agreed to testify to the House committee investigating last year's storming of the US Capitol. It comes after former President Trump says he waived executive privilege even though Bannon was a private citizen at the time of the Capitol riot. Trump portrays the inquiry is biased and

one side it. Loyola Law University professor Lorie Levinson says, though the value of Bannon's testimony remains to be determined, the real problem is that I'm not sure that they can trust Bannon at all. It is clear that he and Trump still considered themselves best friends, and that if Bannon comes in front of the committee, it is very unclear what he would say that would help their investigation.

But isn't just designed to help Trump. Loyola Law professor Lourie Levinson says Bennon was facing two criminal accounts of contempt of Congress for refusing to comply with the committee's subpoena. The car pooling discount is over at the George Washington Bridge the g w B when cash less tolls over

the weekend. Normally, it was a sixteen dollar fee one way to get across the bridge from New Jersey to New York, but drivers who had a car pool discount plan on their easy passes paid only seven fifty with three or more people in the vehicle. Officials hope going cash less at the g w B will mean a faster commute into the city. New York City is debuting a fleet of cars mounted with air quality sensors in the Bronx and Manhattan this week. The plan is to

address air pollution. Japanese Prime Minister Fumio Kashda has met with U S Secretary of State Anthony B. Lincoln. He delivered condolences from President Biden and the United States over the assassination of former leadershian Zoabe and reassurances of a strong bid lateral alliance. I thought it was just important to show our solidarity with our friend Japan and the Japanese people in this difficult time. Secretary Lincoln says the

US and Japan are more than allies, We're friends. Senate Majority Leader Chuck Schumer's office says he tested positive for COVID nineteen. Schumer spokesman says the Senator is experiencing mild symptoms. The statement said Schumer is fully vaccinated and double boosted.

Schumer says he will quarantine this week and work remotely as he recovers global news twenty four hours a day on air and on Bloomberg quick Take, powered by more that seven hundred journalists, analysts more than a hundred twenty countries. Michael Bard, this is Bloomberg, Nathan, Thank you. Michael came into five ten on Wall Street time for the Bloomberg Sports Update. Good morning, John Senshi, All right, Good morning Nathan. Twenty four hours after the rare occurrence of a Yankees

blown lead, it happened again. Yanks lead the Residence four nothing, later six two socks for the last nine runs and one eleven six to gain a split of the four game series in Boston. A J. D. Martinez home run fifth inning off Jamison ti On tied the game at six. A Trevor Story three run double off Miguel Castro in the seventh put it away. Yanks got home runs and defeat from Giant Carlo Stans didn't get another from Matt Carpenter, but hurt by a couple of hours plus two catchable

pop ups. The dj Lemi who failed to grab Yanks are off tonight. Mets tonight begin their biggest series of the season in Atlanta. Max Scherzer opposes the Braves, Max Freed. Mets couldn't score over ten innings, blost to the Marlins to nothing. Atlanta one of the ninth inning. The Mets League, once ten and a half games, now one and a half. Four Mets named to play the next BIGS All Star Game in l a Edwin Diaz, Peterlonzo, Jeff McNeil, and

Sterling Marque. Four Yankees were named Garrett Cole, Estor Cortez, Clay Holmes, and Jose Chavino. Aaron, Judge and Stanton had already been being as starters. The year began for Novak Djokovitz when he went to Australia and wasn't allowed to play and due to being unvaccinated, he lost at the French but he just won Wimbledon for the fourth grade time. I don't take anything for granted. I'm very blessed to be in this position, and especially considering everything that that

happened this year. At the beginning of the year, I just didn't feel emotionated a good place for for several months, and I was kind of trying to find the serenity and uh, you know, the balance on and off the court and uh and and get get myself in a position to fight for a big trophy. Zokovitz, now with twenty one career Grand Slam titles won more than Roger Federer, won fewer than Raphael the Dow, John Stasha Howard, Bloomberg Sports Thanks John SMP futures down twenty Dow futures down

a hundred forty. Nasdaq futures are lowered by eighty two points tenure Treasury yield three point zero six per cent. This is Bloomberg Bloomberg eleven three oh weather, sunshine and a high your eighty five today, chance draftnion showers or thundershowers tomorrow going up to near ninety. It will be mostly sunny near ninety on Wednesday right now seven in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business Outland

at Bloomberg Quick Take. This is a Bloomberg business lash and I'm Cameron. Moscow and European stocks are dropping along with US stock index futures as traders await the keys second quarter earning season for indications on how companies are

weathering the inflation storm, the dollars jumping, bonds gaining. We checked the markets every fifteen minutes throughout the trading day on Bloomberg SNP futures down nineteen points this morning, down futures and a hundred twenty eight and NASTAG futures down seventy nine. The docks in Germany's down seven tenths of a percent. Ten Your treasury at five thirty seconds, you have three point oh five percent, a yield on the

two year three point oh six percent. Nine x Scrude oil is down one downe about one percent on a dollar eleven at a hundred three dollars sixty five cents a barrel. COMEX school down three tenths per cent or five dollars forty cents at seventeen thirty six nine ounce, the euro one pot one seven against the dollar British bound one point one nine six six and the end at one thirties seven. And Bitcoin this morning lower down about two percent at twenty thousand, five hundred sixty dollars.

That's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Muchael, Good morning, Good morning, Karen. Dozens of Ukrainian emergency workers are trying to pull people out of the rubble after a Russian rocket attacked and smashed into three apartment buildings in eastern Ukraine.

At least eighteen people were killed. Former Trump wind out strategis Steve Bennon says he is now willing to testify before the House Committee investigate think the January sixth sold on the Capitol. Bennon's attorney says his client is willing to cooperate because the former president has rescinded his claim of executive privilege, even though Bennon was a private citizen at the time of the riot. In baseball, the Yankees lost to the Red Sox eleven six. The Mets lost

along with the Nationals and A's. The Orioles won their eighth straight. The Giants won Global Needs twenty four hours a day on air and on Bloomberg Quick Takes, powered by more than twenty seven hundred journalists and analyists more than a hundred twenty countries. Michael bar This is Bloomberg. Thanks Michael. It's five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. We want to get back to our top story this morning.

The saga over Elon must bid to buy Twitter is now headed to chord with the world's richest man now trying to walk away from the forty four billion dollar deal. From what We're joined by Alex Webb, Bloomberg Quick Take anchor and tech columnists for Bloomberg Opinion. Alex, good morning. This has been quite the saga to watch. Let's talk about how both sides got to this point and the dispute over bots on Twitter. It's certainly it's are is

certainly the right word. There's been increasing volume from Ellen over the past few months since the two long since the deal was agreed, that he thinks that there are Twitter has more bots than its reporting. Twitter says that less than five percent of its users are bots, and Elon seems to think it's a lot more. That he

hasn't quite provided the evidence as to why. Now. I think there may be a discrepancy here between the amount of engagement the Elon sees on his own accounts and he sees a lot of bot engagement and how many bots? How how many Twitter users Twitter reports as active users? Right? So when Twitter says it has eighty million daily active users, it probably doesn't include bots in those numbers, right, And so that's the maybe there are accounts using Twitter every day.

I'm making that number up. We don't know women that might be, and maybe half of those are boats for argument's sake, so that might be where we're seeing the disparity. Now, that's interesting that you point out that perhaps Elon Musk is looking at his own Twitter account as opposed to the fire hose of data that Twitter says it has handed over to Elon Musk, something that that the that Musk had been asking for. I mean, what is his

focus here? Well, that kind of gets to another the issue, namely that is this really about the bots or is it about the fact that tech stocks and social media stocks in particular are down a lot since that deal was announced, and so there's a lot of expectations. You know, some analysts saying that if the deal completely falls apart, they see a bottom for the stock at twenty three dollars. That's considerably less than half of the four dollars twenty

which he agreed to take it private. So, you know, is this really to do with bots or is it just Elo going, God, I'm over paying for this deal and therefore I need to find a way of backing out of it. There's a heavy suspicion that it's the latter, and right now in the pre market, Twitter is trading at about thirty four fifty, which obviously the fifty four twenty offer is a huge premium still even if Twitter

hasn't reached bottom. Here with the possibility and the likelihood now that this dispute is headed to court in Delaware, what's the burden of proof? Elon seems to think that Twitter is going to have to provide the the the number of bots he's been tweeting memes saying to the case. Ultimately he needs to prove that they're wrong, not the other way around. And generally these the Delaware Delaware courts tend to um sit on the side that if a deal has been agreed, a deal has to be completed.

The case that a lot of people have been pointing towards and um is kind of important in the case law is about twenty five years ago, around the turn of the millennium, UH, there was a deal in the meat industry whereby Tyson Foods agreed to acquiet then rival I P b Um for about three and a half or three point two billion dollars. And in the meantime between the deal being agreed and incompleted, there was a downturn, and so the value of the company declined as well,

so Tyson tried to back out of the deal. They were forced to complete it. Now three point two billions clearly far different scale from forty four billion. We weren't even really sure that Elon definitely had the financing lined up, So that is another layer of complication. Um in some cases it arrives at a settlement, but the burden of proof seems to be on Elon about at the last minute here, Alex, what is the likelihood that all this is just a negotiating tactic on Elon must part in

this does end up in a settlement. I mean, I don't know. We don't know what's in the Elon's mind. Guessing what Elon's thinking is a very difficult thing to do. If it's not a negotiating tactic. I think it is certainly an element to back out. There's a high challenge. It's an element. It's an effort to back out because the prices change, right, it's and he looks like he's overpaying at this stage. So whatether that means he would come back to the table if he was able to

back out and and an agree at lower price. I'm not sure that's the case given the kind of the face that he's lost in recent months. And again, Twitter shares dropping by about six and a quarter percent for a value about thirty four fifty a share in the pre market as we watch this battle potentially head now to court in Delaware. Alex Webb, Bloomberg Opinion, tech columnists and anchor on Bloomberg Quicktake. As always, thanks for the

insights as we continue to watch the saga unfold. Right now, SMP futures are down twenty point, staff futures down a hundred thirty six. NASDAC futures are lower by eighty four points. Tenure treasury up six thirty seconds, the yield three point zero five percent, and the yield on the two year almost three point zero seven percent. Still invert Jian between twos and tense. You're listening to the Bloomberg Day Break Bloomberg eleven three oh weather. Sunshine with a high near

eighty five today. It's gonna be mostly sunny tomorrow, but could see an afternoon shower thundershower tomorrow on Wednesday. Both days near ninety degrees. Right now sixty seven in Central Park broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E living free to Washington, d C, Bloomberg nine one to Boston, Bloomberg one oh six, one to San Francisco, Bloomberg sixty to the country, Sirius XM to A one nineteen and around the globe to Bloomberg

Business app in Bloomberg Radio dot com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hager and I'm caring Moscow or just about four hours away from the open of US training. Let's get you have to day on the news you need to know at this hour, and we begin at the latest. On Twitter, Twitter shares are down more than six and a half

percent in early training. Is the show down between Elon Musk and a social media company appears to be headed to court Bloomberg's or need a young joins us live at the latest, or need a good morning, Good morning Karen. Even though Elon Musk is backing out of the forty four billion dollar deal to buy Twitter, after all, he can't just walk away without a court case, and Twitter has lawyered up in a race to sue Musk to follow through Bloomberg. Sources say a filing could come as

soon as early this week. Now, if the judge rules against Musk, he could be forced to pay Twitter shareholders fifty four dollars and twenty cents a share. But a ruling in his favor would let Musk walk, although he probably have to pay a one billion dollar breakup fee, and there's also the prospect that both sides could reach a settlement. Live in New York, I'm gonna need a

young Bloomberg daybreak. We need to thank you. Turning to markets now, stocks are lower to begin a new training week, and the recent rally in US equities could be short lived. That's according to Morgan Stanley chief US equity strategist Mike Wilson. He is one of Wall Street's biggest bears. Wilson adds the surgeon the dollar will be a headwind for corporate profits.

Well Nathan. Speaking of corporate earnings, it's a big week for big banks JP, Morgan, Morgan Stanley, City and Wells Fargo all reports second quarter earnings late in the week. Will also get important inflation data this week. The latest Consumer Price Index data will come and Wednesday, and producer prices out Thursday. And when it comes to tackling inflation, Karen, the Biden administration is still thinking about lowering tariffs on

Chinese imports to provide relief. Commerce Secretary Gina Rimando expects a decision from the President shortly. He's gonna do it in a thoughtful way that is strategic and also most important, most important to him and to all of us, is without hurting American workers. Secretary Rimando made that comment on NBC's Meet the Press, heard Sundays on Bloomberg Radio. Will speak live with Commerce Secretary Rimando later this morning on

Bloomberg Radio and Television. Catch that conversation in the eleven a m. Eastern hour. Nathan President Biden plans to speak with Chinese leader Shesan Ping in the coming week. Secretary of State Anthony blinkln laid the groundwork for the call over the weekend in a conversation with the Chinese Foreign Minister Mr. Chinese stocks caring they had their worst stand about a month. A slew of issues, including COVID flare ups led to a drop of almost three percent for

Hong Kong's Hang Sang Index. S and P futures are lower down twenty two points and DOWN futures down a hundred fifty and NASDAG futures down two. Straight ahead your latest local headlines, plus a check of sports. And this is Bloomberg. Thank you Caring. It's five thirty three on Wall Street where at sixty seven degrees in Central Park. We're dealing with a new accident this morning northbound FDR

Drive at seventy nine. Details coming up in traffic. First, Michael Barr with what else is going on in New York and around the world. Michael, thank you, Nathan. Speaking of traffic, how's your commute so far this morning? Heading city bound over the George Washington Bridge. The g WB went cashless tolls over the weekend. The good news is that official sop that will mean a smoother commute from New Jersey into New York. The bad news means that's the end of the car pooling fee. Normally it costs

sixteen dollars one way to get across the bridge. However, drivers who had a car pool discount plan on their easy passes paid about half of that if they had three or more people in their vehicle. Former advisor to former President Trump Steve mannen as change course and is now saying he will cooperate with the January sixth committee. However, Loyola Law University professor Lori Levinson says the value of Bannon's testimony remains to be determined in terms of what

he would say to the committee. I think the only thing that is clear is that he continues to be allied with Donald Trump, and so I'm not sure the committee would particularly trust what he's going to have to say, even if Bannon is willing now to appear before the committee.

Loyola Law professor Lorie Levinson. Meanwhile, Republican Committee member Adam Kinzinger says this week's hearing will likely focus on the president's action the day of January six But we want to show the American people is what was the president doing during that time? The rest of the country knew that there was an insurrection. The president obviously had to have known there was an insurrection, So where was he? What was he doing? Representative Kinzinger spoke on ABC's This Week,

which can be here at Sundays on Bloomberg. Japanese Prime Minister Fumio Kashita has met with the US has top diplomat who delivered condolences over the assassination of former leaders Shinzo Abe and reassurances of a strong bilateral alliance. The U S Secretary of State Antony Blinkoln in Japan gave Kashida a letter from President Joe Biden to Abe's family. I shared with our Japanese colleagues the sense of lost, the sense of shock that we all feel, the American

people feel at this horrific tragedy and killing. Secretary Blanket sent him Majority leader Chuck Schumer tested positive for COVID mild symptoms, according to a spokesman. Global News twenty four hours a day on air and on Bloomberg Quick Take power by more than journalists, analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, natholn Okay, Michael, thanks five on Wall Street time for the Bloomberg Sports

Update with John Stown Shower. Thanks Nathan. Yankees first visit the season to Boston started well. They won the first two games Saturday, they had leads in the eighth and ten thinnings, and last night the twice had a four rue leads. The Red Sox with two come from behind victories, they get a split of the four game series. The Sox went from down six to two to an eleven six victory, and while the Yankees still have that sizeable fourteen game leads, there is concerned over Jamison tai On.

He's allowed twenty runs of his last four starts. His manager is Aaron Boom. The mistakes are are hurting him. Um, you know, we gotta you know, that's what we gotta work to correct, you know, making sure when we do make a mistake that it's you know, not into an area where it's getting slug that's really hurting him because I thought tonight is stuff. I thought tonight through the ball really well. Not the only problem last Nights and sketchy defense. Ganks failed to score in the last five

plus Sennings. Mets didn't score at all in the game, without a single extra base hit by either team. The Marlins won too nothing and tena Names of pitchers duel between Sandy all Contra and Taiwan Walker. I'll Contra just named an All Star. Walker could have made a case for making it. He did not. Four Mets were named All Stars. Edwin Diaz, Peter Alonzo, Jeff McNeil, and Starley Marte. Four Yankees named Garrett Cole, Nestor Cortez, Clay Holmes, and

Jose Trevino, Aaron Judge and John Carlos. Stanton has already been named as starters of the National League team for next week's game in l A. Will have brothers in the starting lineup. Cubs catcher Wilson co Rris and his brother William, who plays with the Dodgers, will be the d h Novak. Jocobs, just after winning Wimbledon for the seventh time, said he does not expect to be allowed to come to New York for the US Open since he is unvaccinated. Said it would take an easy of

restrictions or a medical exemption. John Stash Award Bloomberg Sports Nathan Okay, John thanks five thirty seven on Wall Street. Now time for the Tri State Business Report with Bloomberg's head Cory twelve. New Jersey hospitals will get one hundred twenty nine million dollars through the budget deal crafted in late June by Governor Phil Murphy and top lawmakers, and j Spotlight says it's not clear how projects were picked for funding. Much of its reportedly destined for hospitals in

democratic legislative districts. Before the American Dream super Mall in New Jersey can get help with payments, the state's Economic Development Authority must approve documents certifying expenditures by the developer Triple five Group, But three weeks before the debts to be paid, e d A still has not approved a cost statement. D t O Law has opened an office in New York City on Broadway Center. The Business Journal says.

The law firm with offices in l A and San Francisco, says the New York City office will be staffed by Alison Kenner, formerly an assistant U S Attorney for the Eastern District of Pennsylvania. That your Bloomberg Trying State Business Report. I'm Ed Corey on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London into Hong Kong. Let's check in with our global news team for some of the top stories heard on our three

hundred affiliate radio stations around the world. I'm Steve Podascan on k X in Los Angeles. We're talking about a decent opening for the New Thor movie improving Disney's uneven movie release record for this year. I'm Connahow on ktr H in Houston. Texans are asked to conserve energy on sports and temperatures. I'm Gina Servetti in for w c c O in Minneapolis. I'm talking about some of the locally based companies reporting their earnings this week, including United Health.

I'm Stephen Carl and Bloomberg D a B Digital Radio in London. We've been reporting on fears around Russian gas supplies as the nord Stream pipeline shuts down for maintenance. I'm d Cory on w w J in Detroit. I'm reporting Forward Is had to recall one hundred thousand hybrid vehicles. And those are some of the stories our twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street.

The following comming to areas from Bloomberg Opinion. Where have people gone all electric? Not the places you'd expect. I'm Justin Fox, a columnist for Bloomberg Opinion in hopes of curtailing the emissions that cause global warming. Dozens of local governments on the coasts have banned natural gas so cups for new construction. In response, twenty state legislatures, mostly in the middle of the country, have banned local authorities from banning natural gas loo cups. But where are people most

likely to have gas free homes now? In states that are banning gas hookup bands? Mainly in one of them, Florida, seventy seven percent of homes are all electric in hookup band hotbeds New York. In California, the all electric shares are just seven and eight percent. Politicians in New York and California are making such a big deal about home electrification in part because they have so far to go, and at least some of the bann the band states

electrification is already here. I'm justin Fox. For more opinion, please go to Bloomberg dot com, slid Opinion or O P I n go on the Bloomberg terminal. This has been Bloomberg Opinion. Listen from Bloomberg opinion, editorials and commentaries every weekday. At this time, terminal customers can read more at O P I n go. SMP futures down twenty one point, staff futures down a hundred forty nastak futures

are lower by eighty eight points. This is Bloomberg Bloomberg eleven three oh weather sunshine mid eighties today, chance for an afternoon shower thundershower tomorrow with the high near nineties. It will be mostly sunny and hot for Wednesday, going back up near ninety degrees right now sixty seven markets headlines and breaking news twenty four hours a day at Bloomberg dot com, bloo Bloomberg Business Outland, at Bloomberg Quicktape's

a Bloomberg Business Flash and I'm Karen Moscow. European stocks dropping this morning along with US stock intext futures as traders await the key second quarter earning season for indications on how companies are weathering the inflation storm. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg U S and P future is down twenty two points down, futures down a hundred thirty nine nosday futures down ninety The decks in Germany's down seven tenths of

upper cent. The ten year treasury of five thirty seconds held three point oh six percent yal done a two year three point oh seven percent di nex screwde oil is down to and a third percent on two dollars forty seven cents and a hundred two dollars thirty six cents of barrel and bitcoin this morning downward than two percent to twenty thousand, five ten dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's

going on around the world. Michael Karen, thank you very much. Japanese from minister Fumio Ka has called for party unity to achieve the unfinished goals of assassinated former leader Shinzo Abe, including strengthening the military. It comes as Kashida's ruling block secured more seats in parliaments upper House in elections yesterday. Also today, US Secretary of State Anthony Lincoln met with

Kashita to all for his condolences. President Biden says he is considering declaring a public health emergency to free up federal resources to promote abortion access. In baseball, the Yankees lost to the Red Sox eleven six. The Mets have lost along with the Nationals and A's. The Orioles won their eight straight. The Giants want global news twenty four hours a day. On air and on Bloomberg Quicktike, powered by more than twenty seven hundred journalists and analysts, are

more than a hundred twenty countries. Michael bar this is Bloomberg Nick. Thanks Michael. It's five forty eight on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Is We're gonna get ready to kick off a very busy week for investors. Were joined this morning by Ross Mayfield, investment strategy analyst at Baird and Company. Ross,

good morning. Obviously I want to get your thoughts on this market, but I wonder if you have anything to add to this ongoing Elon Musk Twitter buy out saga now apparently headed to court. Where do you see this thing going? You know, I don't know if I have a time to add to had such a focus of the discourse, but it seems like a lose lose at

this point, right. I mean, they're gonna they're gonna, you know, take this to the courts and it's gonna probably get muddy and messy, and it just feels like this isn't what Twitter wants, this isn't what Elon wants, and so we kind of headed to you know, a messy, messy break up from here, is Twitter headed lower? From here, there's some people talking about a bottom well below thirty a share. Well, look, I mean, I think part of

this has to be right. In the initial stages of this, tech stocks were in one place, and then along the course of this you know kind of courtship and offers, tech stocks continued to plumb it. So, you know, without this to uh, you know, put a floor under Twitter's price, I think there's potential just to catch up with the rest of the kind of the tech route and growth throughout that we've seen across the first half of the year.

So um, I'm not sure, but it wouldn't surprise me if it if it kind of caught down to some of the other tech weakness, and we're looking at more signs of that tech round potentially continue doing here. With Nasdaq futures leading declines this morning, as I mentioned, it is a very busy week for investors, with the focus now going to second quarter earnings and of course inflation, recession worries at the foreign we're kind of hearing dueling

views on where this market goes from here. Ross Mike Wilson over Morgan Stanley is thinking that a stronger dollar could be a headwinds for earnings, while a city group is thinking that corporate profits could hold up to the inflation concerns that an economic slowdown. Where do you see

this market right now? Yeah, I think, I mean, I think this earning season will show you know, tepid strength, modest strength, and it will be more about um forward guidance, what companies are seeing on the cost side of things, how they're how they're viewing the consumer picture in particular. Um So I think this actual earnings could be a bit anticlimactic, but the guidance peace and then what soull side analysts doing response as far as re visions to say,

estimates will be important. Um you know, FFX as a headwind and f FX will uh you know, probably probably weigh on the bottom line, but it's hard to ever get you know, to too overly concerned with what the swings and currencies actually weigh on, uh on earnings. More to me, it's about the cost inflation, wage inflation, and then how companies who are seeing that consumer spending in real time think that the consumer is holding up in

the face of a lot of pressure. What's your expectation on how companies are going to lay out those concerns. I think what we'll see is um probably not the worst case scenario, which is heading towards kind of a deepercession, and probably not the best case scenario, which right now I think three earnings are still pegged for the S and T at close to two and fifty dollars a share,

which would be about growth uh next year. That's that's pretty inconsistent with even a mild economic slowdown, which almost seems like a certainty given what the set is doing where inflation still is. So, I think earnings revisions need to come in. I think estimates need to come down. But I do think that the consumer strength and the corporate strength to date will provide kind of a cushion um that that we can take solace in heading into h heading into so somewhere in the middle. Um, but

certainly expectations need to come in. Only about thirty seconds left here ross we get inflation data as well this week. Are you seeing any signs of peak inflation? Yeah? Sure, I mean industrial medals, uh, you know, break evens are coming in. Uh, yields to come in quite a bit um, you know, gasoline prices, so so we're seeing plenty of signs of it. The bigger issue to me is wage inflation. We got a lot of data last week that said the job market is still quite strong, and that's obviously

a very sticky form of inflation. So we need to see some peasing of pressure on that front to really get continue. Thanks for ros, good to have you on with us this morning. Ross Mayfield, investment strategy analyst at Baird and Company, Karen. Then it is five three on Wall Street. It's time for the Bloomberg Law Report, brought to you buy American Arbitration Association. Business disputes are inevitable. Brasilve faster with the American Arbitration Association, the global leader

in alternative dispute resolution for over ninety years. More at a dr dot org. That's gift of the legal stories we are watching this morning from Bloomberg's Joan Donnegher. Mr. Creme Court's decision overturning the right to an abortion opens the door from more conflict over travel for an abortion.

Three law professors tell Bloomberg Law the right to travel like the right to privacy, isn't mentioned explicitly in the Constitution, so the High Court will have to design that Texas state lawmakers planted target law firms with civil and criminal sanctions that have promised to cover travel expenses for workers

to obtain abortions in other states. And the Justice Department is asking a federal court to pause booze Allen Hamilton's deal to my ever watch a defense technology firm, Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg market intelligence. Find out more

at Bloomberg Law dot com. All right, John, thanks Now another ego story where watching the Supreme Court finished a tumultuous term in which the conservative majority wiped away the constitutional right to abortion, expanded gun rights, up end of the law of church and state, and limited the federal government's ability to combat climate change. It was a term that exposed dissension among the justices as the Conservatives exercised

more power over the lives of Americans. For more, Bloomberg student Grosso speaks the constitutional law expert Stephen Vladdock, a professor at the University of Texas Law School. In many of these cases, the court would say, well, this is up to Congress or Congress has to say this more exactly, knowing that Congress has gridlocked and is not going to address this. Is the Court now more powerful than the

other branches? More powerful than it should be? So the first I don't know how anyone considers the Supreme Court today has power the life of which I don't think it's at at any point in history. And someone that's because of power that the Court has claimed for itself. But we ought to be Franks, and that's because we are in a period of political deadlock in Washington. Is

it more powerful than it should be? I mean again, I think it's worth stressed him that in the federalist right, Madison's argument for why the people of New York ratify the Constitution with the power separated the way they were was that ambition ought to be made to counteract ambition. The branches should be made to check each other. And I think what we're seeing is a Supreme Court that's

not worried about being checked by any foot. And that's easy for folks who like what the current Supreme Court is doing to not be all that troubled by. But in the long term, I don't know how it's healthy for our system when the Court is basically claiming the power for itself, not just to decide where a right started it's always been its power, but to decide what Congress must have meant in statutes that wrote a long time ago, the long term of this country and its history.

I don't know how we're all better off being run by five or six on elected justices versus you know, fivety six elected politicians. The justices don't even seem to be trying to present a united front anymore. Only of cases were unanimous. That's the lowest rate since Coodus Plug began compiling statistics two decades ago. You know, usually at the end of the term we say, well, it wasn't as divisive as we thought, But now we look at

these numbers and it was. Listen, I think there's a reason why conservatves are celebrating the scernment progressed or to cry. I mean, this was as dominant a term for one side of the political aisle in American politics as we've seen, really, frankly, in as long as I can remember. And I don't think that by itself as an indictment of the court. I mean I think the problem is it's about the cases the justices are taking. It's about the length they're

going to decide these issues. It's about the inconsistent rationales they're relying upon. It's about the fubrists inflecting some of the decisions, and frankly, it's about the complete black of effort to suggest that the other size positions are reasonable or work taking seriously. And in that regard, I think the best themis can be said about the Supreme Court term is that the Supreme Court is doing its best

to look like the country. We ought to expect more from the Court and it ought to be above that. And as Stephen Vladdick, a professor at the University of Texas Law School, speaking with Bloomberg student 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 b law Go. Futures are lower this morning. SMP futures down twenty four points down. Futures down a hundred fifty eight, NASTAG futures

down one hundred one and still ahead. On Bloomberg Daybreak, we have a check on the business headlines and all the news you need to start your day, and we continue to watch shares a Twitter, which you're down about seven percent right now. And this is Bloomberg.