Bloomberg Daybreak: July 11, 2022 - Hour 2 (Radio)

Steve Bennon's attorneys saying he is now willing to testify before the January sixth House Committee plus Senate Majority Leader Schumer asked COVID, I'm Michael blom More ahead stashon sports the Yankees for a second night in the Roade. Bloom 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 three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XM one nineteen and around the world on Bloomberg Radio Dot com and via the Bloomberg Business App. Good morning, I'm Nathan Hager and I'm Karen Moscow. US DOT Index futures are lower this morning. We are coming up to

six oh one on Wall Street. I mean check the markets every fifteen minutes throughout the trading day on Bloomberg. S and P futures down twenty four points now, Future's down a hundred fifty five and nownsday futures down one hundred. Chew ten year treasury up to thirty seconds, you know, three point oh seven percent and a yield on the two year three point oh eight percent and nine x screwde oil is down two and a quarter percent on two dollars thirty eight cents at a hundred two dollars

forty cents of barrel. Nathan and Karen, We continue to watch shares of Twitter this morning. They are down seven percent in early trading as the show down 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, Grenita,

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 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 of share, But a ruling in his favor would let Musk walk, although he'd probably have to pay a one billion dollar breakup fee. And there's 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 renned a young Bloomberg daybreak a right need to thank you about the Twitter news is also impacting another stock this morning, Shares of Digital World Acquisition or up more than twenty four percent on heavy volume in early trading. Digital World is the company merging with former President Trump's Trump Media and Technology Group, which owns his Truth social platform. Well stocks overall Karen are lower as we begin this 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 Sang 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, authorities 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 treators see the election result as an endorsement of Japan's ultra easy monetary policy in Hong Kong. Brian Curtis, Bloomberg day Break, All right, Brian, thank you all. Back here in the US, we have conflicting calls this morning on whether the recent stock rally will continue. Morgan Stanley Chief US equity strategist Mike Wilson says it won't. He thinks that surge in the dollar will be a

headwind for corporate profits. On the flip side, city grip strategists say stocks are likely to rally in the second half as corporate earnings remain resilient to surging inflation and slow going economic growth. The SMP five hunturdays up about six percent since it's mid June low Well. Speaking of earnings, Karen, reporting season gets underway this week as we hear from the country's biggest banks, and we get more on that

from Bloomberg's Charlie Pellett. The question on everyone's mind is is a recession coming and 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 earnings the nurse we got in Q one, so we're looking for mid single digit earnie shorts for the SMP in total we think will 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 bloom Bird 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 a preview from Bloomberg's Vinnie Down judea Ice. June's household inflation rate probably ran close to nine percent based on Wall Street forecast. That's taking a toll, Bloomberg Economics 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. Vinny del Judace bloom birthday break. All right, Vinny. Thanks So. When it comes to tackling inflation, the Biden administration's thinking about lowering tariffs on some Chinese imports is one way to provide relief. President Biden says he is still holding discussions on the idea. Commerce Secretary Gina Rimando 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 Rimando made that comment on NBC's Meet the Press, heard Sundays on bloom Burg Radio. Stay tuned for more from the Commerce Secretary. Today, Gina Raimondo sits down with Bloomberg Radio and Television for an

interview coming up in the eleven am Eastern hour. Well in Europe this week, Nathan the races heating up to succeed Boris Johnson as British Prime Minister. We got to London and get the latest with the Bloomberg's You and Pat's good Morning You and good Morning Carden Nathan. Just days after Bois Johnson was pushed into resigning, there are now eleven candidates to succeed him as Conservative Party leader. This trust the Foreign Secretary is the latest end 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 Boat Daybreak, all are you and thank you? Let's stay in Europe or natural gas prices are falling. The move comes after Canada said it would return a stranded turbine from 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's currently undergoing routine maintenance. At the same time, the war in Ukraine is sparking concerned that maybe Moscow will not open the pipeline back up after the work. S andp futures are down twenty one point, Staff futures down a hundred thirty eight. Nasdaq futures lowered

by eighty eight points. Straight ahead your latest local headlines and a check of sports. This is Bloomberg at six o seven on Wall Streets, still sixty seven degrees in Central Park. Still dealing with that crash on northbound FDR Drive at seventy nine. Details coming up in traffic First Michael Barr with details on what else is happening in New York and around the world. Michael, thank you very much.

Nathan Donald Trump's one time adviser, Steve Bennan, 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 as biased and one sided. Loyola Law University professor Lori 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 Banning 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 Laurie Levinson. The car pooling discount is over at the George Washington Bridge. The d WB went cashless tolls over the weekend. Normally, it's the 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 dollars shifty cents with three or more people in the vehicle. Officials hope going cash less at the g WB will meet a faster commute into the city.

New York City is debuting a fleet of cars mounted with air quality sensors in the Bronx in Manhattan this week. The plan is to address air pollution. A try Magic car accident stat Niland has left three teenagers dead. They were in a red Ford Mustang when their car collided with a turning SUV in Tottonville last night. The Mustang was split and half. New York City Mayor Eric Adams was on the scene of the crash. Overnight, Japanese Prime Minister fumi Yo Kashita has met with U S Secretary

of State Anthony Lincoln. He delivered condolences from President Biden and the United States over the assassination of former leader Shinzo Abe and reassurances of a strong bide 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 b Lincoln. Senate Majority leader Chuck Schumer's office says that he has tested positive for COVID nineteen.

Schumer spokesman says the Senator is experiencing mild symptoms. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. Michael bar this is Bloomberg, Nathan, Thanks Nael. Has it come up to six ten on Wall Street? We check Bloomberg Sports of John Sesshire. Thanks Nathan. Twenty four hours after the rare occurrence of a Yankees blown lane, it happened again.

Yanks lad the Red Sox for nothing later six to two. The Socks scored the last nine runs and one eleven six to game a split of the four game series in Boston. A J. D. Martinez home run fifteningen off Jamison Tai untied the game at six. A Trevor's story three run double off Miguel Castro and the seventh put

it away. Yanks got home runs in defeat from John Fellow Stanton, yet another one from Matt Carpenter, but they were here by a couple of airs plus two catchable pop ups that d J Lemy who failed the drab. Yanks are off tonight. Mets tonight again their biggest series of the season. They are in Atlanta. It's Max Scherzer against the Braves, Max Freed. Mets couldn't score over ten innings,

lost to the Marlins to to nothing. While Atlanta won in the twelfth inning, and the Mets lead, which was once ten and a half games, is now one and a half. Four Mets named to play next week's All Star Game in l a Edwin Diaz, Peter Alonzo, Jeff McNeil, and Starley Marked, and four Yankees were named Garrett Cole, Lefter Cortez, Clay Holmes, and Jose Dravino. Aaron Judge and John Carlos Stanton have already been named as starters. The year began for Novak Djokovic when he went to Australia

and wasn't allowed to play due to being unvaccinated. He lost at the friend but he just won Wimbledon for the fourth grade term. I don't take anything for granted. I'm very blessed to be in this position, especially considering everything that that happened this year. At the beginning of

the year, I just didn't feel emotionally. It's a good place for for several months, and it's kind of trying to find the serenity and uh, you know, the balance on and off the court and and and get get myself in a position to fight for big trop now twenty one career Grand Slam titles. That's one more than Roger Federer, one fewer than Raphael the Dap, John Dash Are, Bloomberg Sports, Nathan Greats All thank you, John SMP futures down twenty points, Staff futures down a twenty seven. NASDAC

futures are lower by eighty five points. Twitter shares down almost seven percent in the re market, with Elon Musk's buyout deal potentially headed to court. Bloomberg eleven three oh weather sunshine today has eighty five degrees camber at an afternoon shower, thundershower tomorrow with a high near ninety sunshine and a high near ninety Wednesday. Right now sixty seven

in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Out and at Bloomberg Quick Tape, She's a Bloomberg business lash and I'm kart Moscow US stock index future is dropping this morning a lot with European shares as traders await the key second quarter earning season for indications and how companies are weathering. The inflation storem the dollar is higher,

bonds gaining. We checked the markets every fifteen minutes Throughout the trading day on Bloomberg, Guess and p Future is down nineteen points and down futures at a hundred eighteen as day futures down eighty one the decks in Germany's down about seven tenths of a percent. Ten year treasury of three thirty seconds, you know, three point oh six percent yield on the two year three point oh seven percent.

Ni Max screwed oil age down two point two percent, down two dollars twenty seven cents at a hundred two dollars fifty two cents of Barrel Co makes gold down half percent, or nine dollars at seventeen thirty three thirty announced the euro one point oh one oh six against the dollar, British found one point one nine four four and the En one thirty seven point oh seven, and bitcoin is down one point nine percent at twenty thousand,

five hundred seventy dollars. Also watching Twitter shares down about seven percent after Elon must terminated his forty four billion dollar takeover approach. But the social media company, that's a Bloomberg business flash. Now here's Michael bar with more on what's going on around the world. Michael, thank you very much Cameron. Dozens of Ukrainian emergency workers are trying to pull people out of the rubble after a Russian rocket

attack smashed into three apartment buildings in eastern Ukraine. At least eighteen people were killed. Former Trump White House try to just Steve Bennon says he is now willing to testify before the House committee investigating the January sixth assault on the Capitol. Bannon's attorneys says his client is willing to cooperate because the former president has rescinded his claim of executive privilege, even though Bannon 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 news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan Alright, Michael, thank you his six nineteen on Wall

Street Life from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and his Karen mentioned Twitter shares are plunging in the pre market after testleas CEO Elon Musk pulled away from his forty four billion dollar bid to buy the social media network, but Twitter is threatening to pull him back in the form of a court battle. Let's get the latest on where this saga's headed. Bloomberg Tech

reporter Aggie can Trill joins us this morning. Aggie, I know you've been following this for months now, ever since Elon Musk announced his bid back in April. Let's talk about where we're how we got from there, Elon Musk

making this deal to here now in a dispute over bots. Yes, so essentially the twenty that he the deal was originally prices share that was back in April, and from then we've seen a lot of back and forth um with Elon Musk essentially pointing out that Twitter has not provided enough evidence of the amount of bots and spam accounts on the platform, and that he's under the impression that

it's much higher than the percentage that Twitter says it is. Um. But then we're also looking at the fact that as this deal was struck, Musk has created this deal with Twitter very rapidly, much quicker than these sort of deals usually happen. Um, and he waived the due diligence that could have taken place um in which he could have asked for all of this information. And now he's backing out of the deal um in what has been described by quite a few commentators as buyas remorse. Well, what

could this mean for Elon Musk? The fact that he didn't do this due diligence and now Twitter is threatening and potentially likely to bring him to Delaware Chancery Court to force him to consummate the deal. Yes, so essentially there is a reverse termination fee of a billion dollars that's baked into this agreement. UM. So that is expected.

But it seems from what Twitter executives have been saying that their concern is essentially um that they will be wanting to either bring him back into the deal or be paying the full amount the forty four billion UM. And so it may be that um as that now we're seeing that Twitter is going to be engaging a very strong m and a team in order to force Elon Musk to pay a great deal more than that original termination fee. Or even be forced to buy the company.

Is there a possibility, Aggie, that we could see some kind of settlement come out of this, or could Twitter be satisfied with Elon Musk taking the deal but potentially

at somewhat of a lower rate. There seems to be speculation that there might be as a settlement that or at least discussions that are going on outside the court, while also UM the Twitter Twitter is looking at filing this agreement, this UM, this legal case in Delaware at the same time, UM, It's difficult to say at this point whether or not UM something can be settled out

of court. But the different between the billion euros settlement, the billion euro termination fee, and the forty four billion billion dollars sorry, and the forty four billion dollar price UM that he originally plans to buy it for. There's something quite significant there. And there's also a potential that

this is Elon must playing hardball. UM. He's gone back on agreement, the agreements in the past, and it could be that he going forward, he might actually be doing this in order to pressure the company to lower the price. From the analysts that you've been speaking to, Ague, where's the bigger burden of proof if this does go into a court battle in Delaware, Twitter proving that it's given the information, or Elon Must proving that there are more

bots than Twitter has said it has. From what we've been seeing, it seems that um that Twitter is potentially well obviously not happy about what is happening. At the same time, it's potentially in a better legal position when

it comes to taking Must to court because UMU. It seems that having waived the due diligence and also um having set the price beforehand and now pointing to issues such as the bots, um which seemed to be a reason in the first place that he was interested in taking on Twitter because it was something that he was keen to to get rid of on the platform, which was part of his original reasoning, it seems that maybe Twitter might be in a better legal position to push

back on put Elon Musk pulling out of the deal. Thanks for this, Aggy, great having you on with us this morning. Aggie Cantrill, Bloomberg News Tech reporter with us as we continue to watch the Elon Musk Twitter buy out saga. On the news that Elon Musk is trying to pull out of the deal, Twitter shares this morning are down more than six percent at close to thirty

four fifty a share. Right now, SMP futures are down sixteen points Down futures are down nineties six and Aztec futures leading the declines this morning, down seventy four points. You're listening to Bloomberg Day Brain Bloomberg eleven three O weather sunshine to start the week. We'll get up to eighty five degrees highs near ninety tomorrow and the next day with the possibility of afternoon showers of thundershowers tomorrow.

Right now sixty seven in Central Park, broadcasting live from Bloomberg Interactive Broker's studio in New York, Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg What Oh six one to San Francisco, Bloomberg Home sixty to the country, Sirius XM Cho one nineteen and around the globe the Bloomberg business in Bloomberg Radio dot Com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning,

I'm Nathan Hagar and I'm Karen Moscow. We are just about three hours away from the open of US trading time. For the five things that you need to notice Start your day. Onto You by Interactive Brokers. Interactive Brokers at the Global Analysts helps you find new global investment opportunities to diversify your portfolio and discover undervalued companies that may have a greater growth potential. Try ib k R Global

Analysts Today at ibk R dot com. Slash g a first you began at the Latest on Twitter shares her down more than six percent in early trading as a show down between Elon Musk and a social media company appears to be headed a court. Bloomberg's you need a young joins us Live with the Latest or need a

good morning, Good Morning Karen. Elon Musk is backing out of the forty four billion dollar deal to buy Twitter after all, but 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 all the breakup fee, there's always the prospect that both sides could reach a settlement. Live in New York, I'm rened a young Bloomberg Day Break. All right, we need to thank you. Know. Stocks are lower to begin a new trading week. It's a big week for big banks and corporate earnings. JP Morgan Morgan, Stanley, City Group, and Wells Fargo all reports second quarter earnings late in

the week. We also get important inflation data. The latest Consumer Price Index comes out Wednesday, Producer prices on Thursday. Well Nathan. When it comes to tackling inflation, the Biden administration is considering lowering tariffs on Chinese imports to provide relief. Commerce Secretary Gena Romando expects a decision from the President shortly. It's gonna do it a thoughtful way that is strategic and also most important, most important to him and to

all of us, is without hurting American workers. And Secretary Ramando made the comments on NBC's Meet the presser and Sundays on Bloomberg Radio. Will speak live with Commerce Secretary Raimondo today on Bloomberg Radio and TV. Catch the conversation and eleven am Eastern our well. President Biden plans to speak with Chinese leader Shi jin Ping in the coming weeks. Karen, Secretary of State Anthony blink and laid the groundwork for the call over the weekend in a conversation with the

Chinese Foreign Minister. And finally in Asia, Nathan, Chinese stock said their worst day in about a month. The slew of issues, including COVID flare ups, led to a drop of almost three percent for Hong Kong's Hang Sang Index. And that's the five things that you need to notice start your day. Brought to you by Interactive Brokers Again, futures are lower this morning, and straight to hand your latest local headlines plus a check of sports. This is Bloomberg,

Thanks Karen. At six thirty three on Wall Street, sixty eight degrees in Central Park of big problems on FDR Drive with a crash on the northbound side at seventy nine. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. How should commute going so far this morning? Over the Georgia Washington Bridge. The g WB when to cash lest tolls over the weekend.

The good news is that officials hope that will mean a smoother commute from New Jersey into New York. The bad news it means 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 the easy passes paid about half that if they had three or more people in the vehicle. Former advisor to former President Trump, Steve Bennon, it's change course and will cooperate

with the January six committee. Bennon had earlier been arrested for ignoring a congressional subpoena to testify former President Trump, and Bennon at first claimed executive privilege, even though Bennon was a private citizen that day. Loyola Law University professor Lorie 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 it's willing now to appear before the committee Loyola Law University 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. What 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 heard Sundays on Bloomberg. Japanese Prime Minister Fumio Kashita has met with the U S. S tob diplomat, who delivered condolences over the assassination of former leader Shinzo Abe and reassurances of a strong bidan lateral alliance. U S. Secretary of State Anthony B. Lincoln in Japan gave Kashita 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 Lincoln. Senate majority leader Chuck Schumer's tested positive for COVID nineteen. A spokesman says Schumer is experiencing very mild symptoms. Global News twenty four hours a day on airand on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts, are more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan, Thank you, Michael. Almost six thirty six

on Wall Street. Here's John stash Are with the Bloomberg Sports updates. All right, Nathan, Yankees first visit of the season. The Boston had started well. They won the first two games. Saturday, they had leads in the eighth and ten thinnings, and last night they twice had a four run lead 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 to an eleven six victory, and while the Yankees still have that sizeable fourteen game lead, there is concern over Jamison Taiani's allowed twenty runs in his last four starts. As managers are in bloom the mistakes 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 threw the ball really well. Not the only problem last night, some sketchy defense. Yanks failed to score over the last five plus innings. The Mets didn't score at all in a game without a single extra base hit by either team. In ten and names the Marlins one to nothing pictures duel between Sandy all Contra and Taiwan

waperl Contract was named an All Star. Walker was not, but four Mets were named Edwin Dz, Peter Alonzo, Jeff McNeil, and Sterling Marte. Four Yankees named Grett Cole, Nestor Cortez, Clay Holmes, and Jose Ravino. Aaron Judge and John Cullo. Stanton had already been named as starters. The National League team for next week's game in l A will have brothers in the starting lineup. Cubs catcher Wilson co and Treris, and his brother William plays with the Braves and will

be the G eight. Novak Djokovic, just after winning the Wimbledon for the seven time, said he does not expect to be allowed to come to New York for the US Open since he's on back senative. He said it would take in easy, no restrictions or a medical example. John scares want Bloomberg Sports Okay? John, thanks sixty seven on Wall Street Time now to take a look at stock some of the names moving in the pre market with Bloomberg, Radio and TV markets correspondent Crety grouped, all right, Creedy,

how's Twitter doing now? Well, shares are down six point eight percent. I'man surprised we're hitting this once again as our top mover. Huge of course, as we talk about this deal really following through, falling through, And let me give you the price action on Tesla as well, because we know there's that inverse relationship. Tessel shares down about three tenths of one percent. Remember this comes to the

context of an entire market that's lower. But remember a wave of analyst notes coming out over the weekend about simply how much pain Twitter the shares are going to

go through. Dan Eyes, for example, who's a major tech will at least it's built his reputation on that is starting to say that while the price where the shares of Twitter could drop us those twenty five dollars, the idea here being that a lot of this is going to be caught up in legal hassle, even that one billion dollar termination fee isn't really going to rescue it. And even if Twitter is once again on the deal block,

who's going to buy it? A question of not just simply this particular deal, but brand value for the future. And of course, as we talked about Tesla as well, what does this neu to Elon Musk's own brand value? And those are all gonna be questions that we're going to explore throughout the day. Yeah, certainly will be. And I see a lot of moves in casino stocks this

morning as well. What's going on there. Well, it's almost like the old story is the new story all over again, except this time those COVID outbreaks while they're hitting the gambling hub of Macau. This is huge as we talk about COVID lockdowns Shanghai in particular Beijing, a lot of those restrictions theories, but then you go to Macau where a lot of American businesses have some pretty good standing there.

Think about it when Resorts Las Vegas stands, for example, all of their international businesses are based in Macau, and now Macau saying they're going to shut almost all business premises, including casinos for a week from Monday as a COVID nineteen outbreak in the gambling hug hub excuse me, shows a few signs of abating. So once again, this is well, the scare here is that this is not just a one week thing. Perhaps it lasts longer, and of course it's going to hit the bottom lines of some of

those stocks as well. So win Resorts, for example, w y n N is your takers down about five point six percent. Las Vegas Sam's is another one. You want to keep your eye on. LVS down five point three percent as well. So, Nathan, as we talked simply about those China stocks, these casino stocks are wants that you really want to keep an eye on, especially in big emphasis here when you talk about the volatility picture, because Nathan, this is also we talked about air wants to talk

about cruise lines a kind of these volatility proxies. Well, these casino stocks are one as well. Yeah, certainly, all right, it's interesting to think about that in the context of COVID shutdowns as well. Thanks for this as always. Boomberg Radio and TV Markets corresponded, Creety gooped up and as we take a look at stocks as a whole ahead

of this Monday morning open, futures are moving lower. SMP futures right now down twenty one points down, futures down, NASDAC futures, the tech heavy UH index leading the declines this morning, down two points. That's a drop of about three quarters of one percent. Ten year Treasury is up for thirty seconds, the yield three point zero six percent, still an inversion between the twos and tens. Two year yield right now just a basis point higher than the

tenure at three point zero seven per cent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather. Sunshine in a high near eighty five today, mostly sunny tomorrow, but could see an afternoon shower a thundershower. Highs near ninety degrees, will be back to near ninety mostly sunny on Wednesday. Right now six eight in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com for the Bloomberg Business apt and at Bloomberg Quick Take.

This is a Bloomberg Business Flash and I'm Karen Moscow Future is following this morning. We go to the First Word Breaking news desk for today's morning call, and here's Phil Maloney. Bill, good morning, Hey, good morning. Can that's right. US futures are in the red right now at Death futures down a hundred points, says if you's drop eighteen and NASDIC futures are lower by seventy eight. The US ten ye yield at three point oh seven percent, Gold is down six oil is trading lower, and Bitcoin is

down by two percent. Shanghai dropped one point three percent overnight, while up markets are also in the red this morning. Back in the US on the economic front, nothing to report, and in deal news, Twitter is down seven percent in the pre market after Elon Musk backed out of his deal. And in other news, Uber shares a down pre market

on report so It's lobbying practices wrapping things up. Bank of America was raised to buy over at Soction, lu Lemon was cut to underperform at Jefferies, and Occidental was put to neutral O Break Oldman Sachs live from the first breaking news task on the Maloney Care All right, Bill, thank you, and to hear live breaking news over here. Bloombergy type squawk on your terminal SCU A w u K. That's a Bloomberg business flash. Now here's Michael Barr with

more on what's going on in the world. Michael Karen, thank you very much. Japanese from Minister Fumio Kashita has called for party unity to achieve the unfinished goals of assassinated former Leadershian Zohabe, including strengthening the military as comes as Kashita's ruling blocks cured more seats in parliaments up our House and elections yesterday. Also today, U S Secretary of St. Anthony B. Lincoln met with Kashita to offer

his condolences. President Biden says he is considering declaring the public Health Emergency the free up federal resources to promote abortion access. In baseball, the Yankees lost to the Red Sox eleven six. The Mets lost along with the Nationals and A's the Orioles. They won their eighth straight game. The Giants won Global News twenty four hours a day on air and on Bloomberg Quick Take powered by more than twenty seven hundred journalists and analysts more than a

hundred twenty countries. Michael Barr and this is Bloomberg killing alright, Michael, thank you well. It's sixty nine on Wall Street and we turned to news in science and Technology Now with the Bloomberg against a I T. Stemmer report, brought to you by New Jersey Institute of Technology, ranked to top fifty national Public University of my u S News and World Report and number fourteen in the nation on Money's Best Colleges List. Learn more at n J I T dot E d U and now here's It's making news

and science, Technology, engineering and math. The latest COVID outbreak in Shanghai is getting larger. The city recorded sixty nine new infections on Sunday, the most since late May. There will be more mass testing in parts of Shanghai. New sub variants of the virus are proving a constant challenge

to the country's zero tolerance approach. The European Union is warning that the continent is facing one of its toughest years when it comes to natural disasters like droughts and wildfires because of increasing climate change, extended drought conditions if hits several member states like Greece and Italy, and a heat wave last month went as far up as northern Germany. It heightened concerns across Europe for more disasters for the rest of the summer, and Wall Street expects the cryptocurrencies

crashed he get a whole lot worse. According to sixty percent of investors in the latest Bloomberg m l I V. Paulse survey, the token is more likely to tumble to ten thousand dollars than rally back to thirty thousand. Some two trillion dollars has vanished from the market value of cryptocurrency since late last year, according to data compiled by coin get Go. That's a Bloomberg and j I. T. Stammerport. Nathan,

all right, Karen, thank you. We are live from the Bloomberg Interactive Brokers Studios or at six fifty on Wall Street Time Now to check what's going on in d C. Some of the top stories in our nation's capital include President Biden still thinking about taking action on Chinese imports harriffs to try to lower consumer prices. Commerce Secretary Gina Ramando was asked about it on NBC's Meet the Press. The President is being thoughtful about this, Unlike President Trump.

Those tariffs that he opposed made no sense, and so we are briefing him and I expect to make a decision shortly. And Secretary Romando is blasting Senate Minority Leader Mitch McConnell for threatening to block a bill boosting the US chip sector if Democrats go ahead with a new spending bill on their own, it's a false choice. He's playing politics with our national security and it's time for Congress to do its job on both of those dimensions.

Commerce Secretary Romando there on ABC's This Week, also making news, President Biden keeping a public health emergency on the table to protect abortion rights. Vice President Kamala Harris tells CBS

has Face the Nation. We also need Congress to act because that branch of government is where we actually codify, which means put into law the rights that again we took for granted but clearly have now been taken from the women of America and the House January six committees getting ready for its next public hearing tomorrow after hearing from former White House Council Patsy Boloney last week, Committee

member Jamie Raskin was also on Face the Nation. He was aware of every major move I think that Donald Trump was making to try to overthrow the election and essentially sees the presidency, and so I considered his testament any valuable. Face the Nation this week and Meet the Press can be heard every Sunday right here on Bloomberg Radio and then for more on all these stories were

joined this morning by Bloomberg Government reporter Emily Wilkins. Emily, let's start off with the latest around President Biden's thinking about whether to take action on Chinese import tariffs. It seems like this decision has turned into a pretty heavy one for the president. Yeah, this is something that the President has definitely taking this time deciding on talking about.

We know that he met with officials at the White House on Friday, um over the weekend, he told reporters that he had still not made a decision on it, although Commerce Secretary Gina Romando said that she expects a decision shortly. Part of the problem Nathan could be that his own advisors are split on this one. Romando and Treasury Secretary Janny Yellen have been plushing for a reductions and some of the tariffs, saying that while it's not going to bring down inflation, it could lower the price

on some goods that Americans by daily. Uh. And then you've got his trade representative Catherine Tie who's argued for keeping the tariffs in play, saying it gives the US leverage and negotiations that are going on between Washington and Beijing. So you've kind of got these these dual arguments here

for keeping and reducing the tariffs. Um. And certainly there's a wider relationship to consider with China, especially in light um that Biden is preparing for a call with Chinese President she Jinping in the coming weeks, according to Secretary of State Anthony Lincoln. And it's gonna be very interesting to hear more from Commerce Secretary Romando when she sits down with Bloomberg Radio and Television coming up later this morning in the eleven o'clock hour. So definitely looking forward

to hearing more from her. Uh. Speaking of splits within the Democratic Party, Emily, are we starting to see one now when it comes to how Democrats how the president should take further action when it comes to protecting abortion rights after the Supreme Courts overturning of Row. Yeah, there's absolutely a split right now within the Democratic Party. There is frustration among some that Biden has not responded as strongly as they were hoping, as fiercely and aggressively as

they were hoping. At this point. The White House, for their part, has cut basically. You know, we saw one of the communications directors come out and basically say that Biden is doing his job and that you know, some of these progressive left to the left, far left side of the party, um, you know, they're not in touch with what the mainstream Democrats want. So certainly some tensions there.

One thing we do know is that Biden has asked his team to look into an emergency national health declaration that could sort of uphold the national ability for a woman to be able to receive abortions. Um, kind of in the idea that you know, with Roby Wade being struck down. This could potentially be a temporary measure given that so many states at this point have already um you know, made abortions, banned abortions completely or in most cases.

And finally, Emily, we're getting ready for more hearing from the House January six committee at least two of them this week, and now word that former White House advisor Steve Bannon is thinking about testifying himself. Yeah, so Bannon actually got a letter from former President Trump basically saying that Trump was releasing him from any executive privilege and that Bannon could go ahead and testify if he wanted to.

This also follows after White House lawyer Pat Slone sat down with the committee in private uh and testified for numerous hours on Friday, And so we're expecting to hear perhaps a little more of that private testimony played out in videos and the hearings tomorrow and on Thursday. Who knows. Tomorrow's hearing is very specifically looking at the ties between

the Proud Boys, the Oathkeepers, and President Trump. A lot of its centers around the tweet he sent in mid December basically saying, you know, calling on folks to come to the Capitol on January six, say that it will be wild. The Committee's really going to sort of paint the narrative that after that tweet, and even before, in the hours before that tweet was said that there was an intention uh to for Trump to try and overturn the election by by confronting Congress directly as they counted

did the accounting of the Electoral College votes. Only about a minute left here, Emily. But what's behind this apparent change of heart by the president because there have been a lot of people in his inner circle who are fighting contempt charges to try to avoid speaking to the January six committee. So one thing we know is that president former President Trump has been watching the January six hearings.

And these hearings, you know, normally when you watch a congressional hearing, you kind of had this one side sort of pushing one narrative, another side's pushing a different narrative. Nathan, there's only really one side with this committee, and they're all pushing the same narrative. And so Trump really wants someone to get in there and defend him. That is what in his letter to Bannon, he really implied that Bannon needs to be able to do. We'll be interesting

to see exactly how the committee takes this. They've said that they will not be interviewing Bannon in public at first, They'll be doing a deposition behind closed doors, and then potentially deciding whether or not they want to make any of that testimony public. So it's still a ways to go before we might actually hear from Bannon himself about

the events of January six. All right, thanks for all this, Bloomberg Government reporter Emily Wilkins, and you can read more on these stories at Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington Bloomberg one and one oh five point seven FM HD two, where again we'll be speaking with Commerce Secretary Gina Raimondo in the eleven am Wall Street Time hour, So to back in for that here on Bloomberg Radio. Bloomberg Surveillance is

up next for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg