Bloomberg Daybreak: July 12, 2022 - Hour 1 (Radio)

again indoors plus. Funeral services were held today for former Japanese per Minister Robert On Michael bar More Ahead, I'm John Stashward sports matchers or pitched the Mets to a big win in Atlanta, and pet Delonso will be in

next week's Home One Dirty. That's All's trading ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg nine one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XM one nine team and around the world down Bloomberg Radio dot com and via the Bloomberg Business App. Good morning, I'm Nathan Hagar and I'm Karen. Moscow and US index futures are lower

this morning. We're coming up to find the one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg and SMP futures are down twenty one points down, futures down a hundred sixty eight, and NASDAG futures down sixty three. The decks in Germany's

down six tenths of upper cent. The ten year treasury of twenty thirty seconds yield two point nine zero percent, and they yield on the two year two point nine nine percent, and Bitcoin is at nineteen thousand, seven hundred sixty dollars. Nathan Well Karen futures are adding to yesterday's losses, which saw all three major indexes fall. Hardest hit was the Nasdaq, which fell two into quarter percent. Still, Alan zaffron Co, CEO at I e Q Capital says growth

stocks may be the place to invest. We are looking forward at a slower growing economy, given what's happening with the ED, given what's happened with a more heightened inflationary environment, and so it is a setup for growth stocks to outperform. Value stocks looking forward for quite some time. I e Q Capital's Alan Zafferan says the upcoming earning season will

be key for the markets. Well, Nathan, The Wall Street sell off spread to Asia overnight, both Japan's and EK and Hong Kong's Hang Sang Index strat more than one percent. Make at the recap from Bloomberg Daybreak, Asia anchor Brian Curtis in Hong Kong, Asian stocks fell on concerns over the economic outlook, high inflation, and China's issues with COVID. The tech sectors struggled, sparking weakness in Japan, Hong Kong, and China. The dollar pushed higher, up near the levels

that we saw in the panic over COVID. The euro has edged closer to parody, with the greenback sapped by Europe's energy crisis and fears of recession. Treasuries gained, taking the tenure yield well below three percent. Bonds also rallied in Australia. You know, Hong Kong, Brian Curtis, Bloomberg Daybreak, All right, Brian, thank you well. Oil is lower this running down two and a quarter per cent for West Texas Intermediate at a hundred one dollar seventy five cents

of barrel. A COVID resurgence in China is adding to concerns about a global economic slowdown. Fatty Barol, executive director at the International Energy Agency, says the worst of the energy crisis maybe ahead. The world has never witnessed such a major energy crisis. It is interwoven by many factors, including the geopolitics, and I believe we might not have seen the worst of it yet. I e A Executive director Fatty Barol says this winter in Europe will be

quote very, very difficult. Well. Investors are closely watching for the release of June's Consumer Price Index tomorrow, Nathan. The White House is giving an eye on it too. Press Secretary Karine John Pierre says the inflation data will be highly elevated, but she also notes it's backward looking. June's CPI data is already out of date because energy prices have come down substantially this month and are expected to

fall further. White House Karen John Billerre says food and gas prices continue to be impacted by the war in Ukraine. Economist surveyed by Bloomberg expect June prices to jump eight point eight percent compared to last year, and that would be a fresh forty year high. Well, Karen, we continue to follow the saga between Elon Musk and Twitter. Shares fell more than eleven percent yesterday for the social media company. Let's get the latest live from Bloomberg's Rnita Young. Good morning, Rnita,

Good morning, Nathan. Twitter lawyers are calling Elon Musk's termination of his forty four billion dollar deal to buy the company invalid and wrongful. They wrote it in a letter to his attorneys, and it's a preliminary step in the

legal battle over the deal. And Musk agreed to buy Twitter for fifty four dollars and twenty cents a share back in late April, but he terminated the agreement because he believes Twitter misrepresented user data, claiming the number of spambots on the platform is much higher than the five percent the company has disclosed. Bloomberg sources say Twitter aims to file suit early this week. The agreement specifies any legal dispute over the deal must be heard in Delaware.

Live in New York. I'm gonna need a Young Bloomberg daybreak, all right, We need to thank you well, one other note. In the World's Richest Man This Morning, Elon must says Donald Trump should quote sail into the sunset and forget about running for president again, And a series of tweets Must claim to that Florida Governor Rhonda Santis would easily defeat President Biden. He also told his one hundred million followers that there was too much drama when former President

Trump was in office. A meantime, Karen testimony on last year's attack at the US Capital rolls on in Washington. Up next the House January six committee focuses on the roll of extremists in the insurrection. Bloomberg said Baxter has

the story. Committee member Jamie Raskin says it will continue building on the case that Donald Trump had a hand and trying to overthrow the results of the election and led to the advance that day on January six, Raskin says, we will focus on what's become known as Team Crazy, a group of people around Trump, Sidney Pale, Rudy Giuliani among them. Raskin says one of the meetings was unlike

anything in American history. Now. The committee has also announced postponement a Thursday's hearing because it is getting so much new information on White House ties in San Francisco. I'm at Baxter Bloomberg Daybreak, and thank you. In corporate news this morning, San Francisco based Gap has fired at CEO Sonia Singal was dismissed after two and a half years in the job. And we get the story from Bloomberg's Charlie Pellett. The apparel company is struggling to leave operational

challenges behind it. Chairman Bob Martin is taking over immediately as CEO on an interim basis. GAP shares aren't down fifty percent this year, compared with a thirty percent dropped for the S and P five hundred retailing index. Single took over in early twenty right before Covid royaled the business and demand. Prior to that, she was in charge of the company's old Navy brand in New York. Charlie Pellett Bloomberg Daybreak. All right, thank you, Charlie, and job

cuts are coming at Microsoft. The layoffs effect less than one percent of the workforce and span a variety of groups, including consulting and customer and partner solutions. Microsoft says the cuts were not spurred by economic factors, but in May the company slowed hiring in its windows and office groups. Straight ahead your latest local headlines in the check of sports. This is Bloomberg South five oh seven on Wall Street.

We are at seventy degrees in central parking looking at twenty minute delays on the upper level of George Washington Bridge. Use the lower more 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. The Department of Health is continuing to urge New York City residents to wear masks in all public indoor settings and in crowded areas outdoors because I went uptick in COVID.

It comes as the latest omicron variant B A point five has become the dominant strain in the US. This New Yorkers says people got lacks about masking. I think the city's the government's gonna have a hard time getting people back into mask Meanwhile, about two out of three

people in the US are fully vaccinated. Harvard Medical School professor Dr John Brownstein says the evolution of variance unresponsive to immunity from previous infection means we are likely going to have to give up on the idea of her immunity. You see this virus evolved quicker and quicker, and we'll probably see another variant in the fall. So the main question really is can we avert really serious outcomes like deaths and hospitalizations. But inmiologist Dr John Brownstein is also

the Chief Innovation Officer at Boston Children's Hospital. Police in New York City they're looking for a man they say is targeting homeless people in a string of stabbing attacks. The latest victim a twenty eight year old woman attacked early yesterday. Police say the same man can be seen on surveillance cameras in all three locations where homeless people have been stabbed in the last week. The first stabbing

was on jo I Five. Thirty four year old man resting on the bench was stabbed and later died from his injuries. Three days later, a fifty nine year old homeless man was stabbed in the abdomen. Japanese people have said goodbye to former Prime Minister Shinzo Abe. A family funeral was held at a temple days after his assassination that shocked the nation. Abbe the country's longest serving prime minister, who remained influential even after he stepped down two years ago,

was gunned down Friday during a campaign speech. The first image from NASA's new Space Telescope is the deepest view of the universe ever captured. The image from the James Webb Space Telescope was unveiled at the White House President Joe Biden. Light from the Oldest Galaxies, the oldest documented light in the history of the universe, from over thirteen

billion Let me say that again, thirteen billion years ago. Today, four more galactic shots will be released Global News twenty four hours a day on air and on Bloomberg Quicktake Power about more than twenty seven hundred journalists and antaalists, more than a hundred twenty countries. Michael bar this is Bloomberg naked alright, Michael, thank you almost five ten on All Street time for the Bloomberg Sports up Take. Good morning, John Sho, Good morning Nathan. The Mets are paying maxers

are at forty three million dollars a year. They are doing that for games like last night in Atlanta. Mets lead over the Braids once ten and a half games at dwindled to one and a half thanks to Atlanta's twenty nine and eight records since June one, they have the best offense in the National League. Shars shut them down, allowed only one hit over the first six sitting stuck out and nine shows are in. The Mets beat the Prey four to one. We want to play good baseball,

and especially this time of year. Uh. You know, they're a great team over there, and you want to come out there and play your best baseball. Uh. And you know when you you can collect wins against them, and you know, that's kind of a measuring stick win and you know it's it's a good feeling. So um, you know. But like you said, we're in one getting game here

in July. We gotta go out there and played, you know, great months of John got a home run from Luisti or may rbi double from Pete Alonso, Pete an ounce he'll go for the home run derby three. Pete. He's never not won it, the winner in two thousand nineteen and last year didn't have it in the Braves. Ronald the Kun you will be one of his competitors next Monday in Los Angeles. Rest of the field not getting off Yankee so Cincinnati Reds tonight at the Reds are swept,

Tampa Bay the Rays. Last night Pete the Red Stots ten to five. As the British Open gets ready to tee off Thursday at St. Andrew's. Still much talk about the new Live Tour, with word that the Anti Trust Division of the Justice Department is investigating whether the PG eight Tour used anti competitive practices against the Lift Tour. The PGA says it expected this and is confident there

was no wrongdoing. John stash Award Bloomberg Sports All right, John thanks SMP futures down one staff, futures down a hundred seventy six, dance at Futures down fifty nine points ahead of tomorrow's CPI data that the White House already says will be highly elevated. More on what the White House has to say about an inflation next, Bloomberg Washington correspondent Joe Matthew is coming up. Bloomberg. Gay Break is

brought to you by the New York Community Trust. Your name will live on as a champion of the causes you care about for years to come through a charitable request to the New York Community Trust. Learn more at philanthropists dot n y C markets headlines and breaking news

twenty four hours a day at Bloomberg dot com. The Bloomberg Business Outland at Bloomberg Quick Tape is a Bloomberg Business Flash and I'm Karen Moscow Stocks in u S stock index futures are following this morning as the dollar and sovereign vaughns rise a pattern highlighting pervasive unease about the economic outlook amid high inflation and China struggles with COVID.

We checked the markets every fifteen minutes throughout the trading day on Bloomberg S and P futures down down futures and A hundred seventy five and NASDAG futures down fifty seven. The decks in Germany's down six tenths of upper sent ten year treasury of twenty thirty seconds held two point nine one percent yield on the two year two point nine eight percent. Ninemex screwed oil is down two point eight percent, down two dollars eighty eight cents at a

hundred one dollars twenty four cents of barrel. Comex school is up a tenth of a percent of a dollar sixty at seventeen thirty three fifty announced the euro one against the dollar, the British pound one point one eight to one, and the end is at one thirty seven point to zero. Looking at a big coin at this morning, down more than three percent at nineteen thousand, seven hundred seventy dollars. And today we are watching for a report on small business optimism amount at six o'clock Wall Street

time and PepsiCo. I'm on company schedule to report earnings and that's a balloon Berg business flash. Now here's Michael Barr with more on what's going on around the world. Muncle,

Good morning, Good morning care. In another public hearing today by the Congressional Committee investigating the deadly January sixth insurrection, This hearing will focus on the involvement of white supremacists hate wops in the attack on the Capitol and feature testimony by former White House Consul Pat Sabloni, whom investigators say cooperates former White House aid Cassidy Hutchinson. People in Japan to bid their final goodbye to former Prime Minister

Shinzo Abe. Family funeral was held at the Temple days after his assassination that shocked the nation. In baseball, the Mets one, red, Sox, A's and Giants lost. Global news twenty four hours a day on a or and on Bloomberg Quicktake, powered by more than twenty seven hun journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg Natham. All right, Michael. Thanks, It's five nineteen on Wall Street Live from the Bloomberg Interactive

Broker Studios. This is Bloomberg Daybreak. Investors are waiting closely for the consumer price data that's coming out tomorrow for the month of June. The White House is watching for it as well, and already warning that it expects June consumer prices to be highly elevated. Let's head over to the nation's capital. Lots going on there, so we're pleased to be joined out by Joe Matthew, Bloomberg, Washington correspondent, host of sound On on Bloomberg Radio. Joe, good morning.

Sounds like the White House is really trying to get out in front of tomorrow's inflation data based on what we we heard from the White House Press Secretary yesterday, and we saw this a month ago as well, and trying to say, look, this is gonna be tough. Remember that they were trying to delineate the difference for the brief the reporters in the briefing room who are not mostly financial reporters, and for people in their living rooms, the

difference between headline and core inflation. It's going over the heads of a lot of people to at this time around highly elevated to your point. Was the word from or the phrase from the Press Secretary Karine Jean Pierre, who said the reading as well, was already out of date. Now that that's really where the White House is going here. Look, Nathan, it's gonna be bad, but guess what, it's already out

of date. It's a rear view looking indicator. And we know that prices have come down a bit since this was taken. But of course, if you do this for a living, like you do ethan Uh, you note that all economic data is right and absolutely and it raises the question as we try to look forward here what the White House is doing about it. We also heard from Karine John Pierre saying that the President has been laser focused on getting prices down. That's also a message

that we've been hearing for the last couple of months. Yeah, and we hear it just about every day from from most of his surrogates who were out their cabinet secretaries and the President himself. You could ask them something about Christmas, Nathan whatever, come up with any the the answer will be preceded by just a reminder that this president is

laser focused on inflation. It is his top domestic priority, and that's partly why he's getting on an airplane tonight to go to the Middle East in an attempt to secure more oil resources. But of course energy is only part of this inflation story, and we're gonna see that come to bear in the CPI report. Is that really gonna be the focus of what President Biden is looking for when he heads to Saudi Arabia? I mean a lot of the critics of the President have been saying

he's going hat in hand. Well, that's right, more energy, and the White House has been careful to try to manage the messaging around this. Look, he's clearly going to be looking for more oil output, but the White House is framing this is more of a security trip. He's going to Israel first, it's gonna visit the West Bank. Then he gets on an airplane and flies to jetto where, and he'll be asking that all OPEC members increased production.

But look, if you if you read Bloomberg, if you have a terminal, you know that Saudi Arabia and the U a E are the only members of OPEC with any real spare capacity. And there are questions about that, not just their ability to pump more, but say we get a whole bunch more crude, we gotta gush your Nathan. It's only part of the story because US refineries are of course already at nine capacity, so it's unclear that we'd be able to do a lot with that oil

to lower gas prices in the time we have left. Joe. We have another January sixth hearing coming up later on this afternoon. It's gonna be focused on extremist groups. Give us a little more of a setup. Extremist groups like the Proud Boys, like the oath Keepers. The members of this committee, Democrats and Republicans, are hoping to try to start connecting the dots, the convergence that Congressman Jamie Raskin

has talked about. We're just not clear, Nathan, on whether this is going to be directly from the White House some sort of through some sort of back channels or or indirect leaves, a convergence that just happened to take place because people were reading the President's tweets. That's what we have yet to learn. How much are we expecting former White House counsel Hat Sipoloni's closed or testimony from last week to factor and they will This woul be

a big part of the hearing. Of course, they're not going to see it in long form, but like we have in other interviews other testimony, they'll use clips to corroborate what we heard from witnesses like Cassidy Hutchinson, knowing that Sippoloni was in the room for a lot of those uh, really outrageous events that she described in her recent testimony. And we've also gotten word in our last thirty seconds here that the next hearing after today has

been postponed. Is part of that because of the Steve Bannon situation. It may well be Look, this was supposed to be in prime time on Thursday night. This was gonna be the big finale. It has been postponed. We're not sure exactly when it's gonna take place, likely in the next week. But yes, Donald Trump cleared Bannon to testify, giving up executive privilege in this case that could lead

to some pretty dramatic testimony. Trump wants someone on that panel, Nathan or testifying before that committee, to come to his defense and thinks Bannon is the one to do it. Joe Matthew Bloomberg Washington Correspondent, and of course much more to come on sound on every weekday on Bloomberg Radio five pm Wall Street Time. We'll be checking back with Joe as well later on in this program here on Bloomberg and Daybreak. Looking ahead to the market open this morning,

UH stocks are poised for more losses. Right now, SMP futures are down twenty three points down, futures down eight NASTAC futures down sixty six. The ten year treasury up nineteen thirty seconds, yield two point nine one percent, yield on the two year even higher two point nine nine percent. The euro point zero zero zero five against the dollar. This is Bloomberg Bloomberg eleven three oh Weather chance drafting

in showers and thunderstorms today. Some of them could be strong, as we had a near ninety degrees near ninety again tomorrow. Upper eighties by Thursday right now seventy in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Free to Washington, d C. Bloomberg to Boston, Bloomberg one oh six one to San Francisco, Bloomberg sixty to the country, Sirius XM to the one nine team, and around the globe the Bloomberg Business and Bloomberg Radio

dot Com. This is Bloomberg Daybreak. HiT's five thirty on Wall Street Coomboarding. I'm Nathan Hager and I'm Karen Moscow. We are just about four hours away from the open of US trading. Let's get you have to date on the news you need to know. At this hour, US futures are lower, adding to yesterday's losses, which saw all three major indexes slump. Mike vocals Sang, chief investment officer at cap Trust, says, at this point, it's unclear how

markets are pricing in a recession. This recession has been so anticipated that it's far to believe the market hasn't discounted most of it. Maybe the surprise will be that it's that it's really really a negative and difficult and deep recession. We don't think so. It also could be that we don't really hit a recession. We're like a stone skipping off the top of the pond and moving

on and back up again. That's the question I think, and I think we're going to know a lot more about that as we had into earning season later this week and then the next couple of weeks. Mike vocals Sang at Cap Trust as forward guide and from companies will be watched closely over the next few weeks. Now, the Wall Street Cell Office spreading overseas Karen Japan's NIEK and Hong Kong's Hang Sang Index both dropped more than one percent overnight over concerns of inflation and COVID in China.

Oil is moving lower as as well. Checking prices now Nimex cruge down two point seven hundred one dollar thirty one cents of barrel Brent is down two point four percent at a hundred four dollars fifty four cents. Well, investors are looking ahead to the release of June's Consumer Price indext tomorrow, Nathan, and so is the White House Press Secretary Karine Jeanpierre says prices continue to be impacted

by the war in Ukraine. We got here with the with the increase of gas prices and food prices because of Mr. Putin's war in Ukraine. White House Smoke showman Karine Jeanpierre says the latest inflation data will be elevated, but also notes it's backward looking. While we're continuing to follow the saga between Elon Musk and Twitter. This morning, Karen after it shares a Twitter fell eleven percent yesterday. Bloomberg's Rnita Young joins us Live. Good morning, Ranita, Good morning, Nathan.

Twitter lawyers are calling Elon Musk's termination of his forty four billion dollar deal to buy the company invalid and wrongful. They wrote it in a letter to his attorneys, and it's a preliminary step in the legal battle over the deal. And Musk agreed to buy Twitter for fifty four dollars in twenty cents a share, but he terminated the agreement, claiming the number of spam bots on the platform is much higher than the company disclosed. Bloomberg sources say Twitter

aims to file suit early this week. Live in New York. I'm gonna need a Young Bloomberg Daybreak, All right, rened to thank you and sticking with corporate news. Job cuts are coming at Microsoft. Layoffs are affecting less than one percent of its workforce, and the company says cuts were not spurred by economic factors. Sure had your latest local headlines plus a check of sports. This is Bloomberg. Thanks on Wall Street. Seventy degrees in Central Park construction as

eighth Avenue closed from forty to Columbus Circle. More coming up in traffic. First Michael Barr with more on what's going on in New York and around the world. Michael, thank you very much, Nathan. The January six Committee is preparing to highlight how violent extremist groups answered what one lawmaker says was Donald Trump's siren call to come to Washington and attack the capital. The panel is set to convene today. The committee is probing whether extremist groups coordinated

with White House allies ahead of the violence. Police in New York City are looking for a man, they say staff the twenty eight year old homeless woman early Monday. They say the suspect is behind similar attacks in the past week, including one that was fatal. Police say they have video and photos of the same man at all

three locations. The latest omicron variant B A point five has become the dominant strain in the U S. As COVID cases increase, cities like New York and Los Angeles are asking people to mask up indoors and in crowded areas. This New Yorker says, though masking is not enough to avoid COVID, people should remember even more important as washing your hands. That's actually, that's actually as important, if not

more important, than the masking. Health officials across the nations say the US is still averaging about one hundred thousand cases a day. The family funeral was held today for Japan's former Prime Ministrations Ambe. A motorcade including a hers slowly drove by a packed crowd to the funeral. This man was among the crowd of mourners. Mrs is one of the greatest uh prime minister in the Japanese history, and a lot of people look out to a lot of people, and we're so sad that we lost him.

Only Abbe's widow, close family members, and senior party leaders, including Prime Minister Fumio Kashita, attended the service. The Chief Judge of New York's Court of Appeals says you will step down after more than six years presiding at the state's highest court. Judge Janet di Fiori, who is sixty six, says she will leave at the end of August and move on to the next chapter of her professional life.

Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a d twenty countries. I'm Michael barn This is Bloomberg. Nath It Michael, thank you on All Street time for the Bloomberg Sports Upthing with

John steps Show. Thanks Nathan and Mets went down to Atlanta well aware that fifteen of their last seventy six games or against the team had stunned the defending World Series James, but the hottest team in MLB twenty nine and eight since June one, met still in first place, but their lead over the on rushing praise that the game and a half. That's the smallest since mid April. Thankfully.

For the series opener, the Mets had Max scherz Are on the mound, pitched seven as allowed only one run, three had struck out nine Mets beat the Braids four to one. So shars or two starts to missing seven weeks and its alloud of onnely one run. He was asked the advice he gave to his younger teen nine when you get a droning playoff bit, you know, don't be don't don't be a shy away from it, bringing on, this is what you played the game for. It. You want to be in these situations. You want to be

facing the best teams in the league. You want to be in a racist you know, you gotta rise to the occasion and matching. Um. So they have a uh, you know, atmosphere like this tonight. Uh, playing in this type of environment, it's only good to you know, continue playing this and uh, you know in feet off see, Alonso won a four Mets name to play next week's All Star Game in l a and Alonso announced he will also be in the Home Run Derby next Monday.

He's won the last two Yankees only wants this season, have lost three games in the row off the back to back blown leads in Boston. The yanksos home tonight to play the Cincinnati Bet. The NBA expected to make official today that the play intorney that's been used the last two seasons will become a permanent part of the postseason. Four teams in each conference vying for the last two spots that then goes into the first round. Jnifer Broncos

have new owners. It was revealed that part of the new ownership group former National Security advisor Condoleeza lights John Stash award Bloomberg's books. Nathan thanks John seven on Wall Street Time for the Tri State Business Report with Bloomberg's head Cory. New York City's multifamily developments face an unsettled future following the expiration of a tax incentive for affordable housing.

The fifty one year old program expired in June. When lawmakers fail to renew or replace it, dal Jones reports developers are scrambling the complete rental projects or build other types of property. Thirty nonprofits in New Jersey are expected to get grants totally nearly eighteen million dollars. The money will support the state's restaurant industry while battling hunger at the same time. It's the third phase of its Sustain

and Serve New Jersey program. Cartena Capital of Connecticut Hedge Fund committed eight and a half million dollars to support Elon Musk's proposed acquisition of Twitter. The Connecticut Post reports the fundest staying quiet after the world's richest man announced last week that he would abandon his bid to buy the social media platform. That's your Bloomberg Trying State Business Report. I'm ed Corey than on Wall Street Bloomberg Radios 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 affiliate radio stations around the world. I'm Steve Potas cat on ten ten Wins in New York. We're talking about water Brothers Discovery looking to resume a deal with Amazon to get it to distribute the HBO Max streaming Sir m Bornitanahwan ktr H in Houston. The International Energy Agency says to squeeze on energy supplies may get worse.

Nice Mateo and on came X and St. Louis, I'll be reporting on an electric vehicle maker tightening its belt on Kallen had called BlueBag Davy dish Do in London. We've been reporting on warnings from the International Energy Agency that the worst of the energy crisis maybe yet to come.

I mid Cory on w w J in Detroit. I'm reporting Ribby and Automotive planned hundreds of lay off and those are some of the stories our hundred Bloomberg journalist 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 editorial was written by

the Bloomberg Editorial Board. Sympathy and outrage over last week's shocking assassination of former Japanese Prime Minister Shinzo Abe contributed to the sweeping victory of his Liberal Democratic Party in recent UPPERA House elections. However much he owes the former prime minister, though, Japan's current leader, Fumio Kashita, must now find his own path. That will mean, for example, fleshing

out his own economic vision for Japan. Kashida has called for a fairer and more inclusive new form of capitalism that can tackle inequality in contrast to Abe's focus on growth. Ultimately, Kasheda will need to implement tough reforms that even AB couldn't manage, including making changes to Japan's rigid seniority based employment system. Japan would not be the country it is today had it not been for Abe's vision and drive. Kashita can best respect Abe's legacy by forging his own.

The editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or ope I n go on the Bloomberg terminal. This has been Bloomberg Opinion. Listen for Bloomberg opinion and editorials every weekday. At this time, terminal customers can read more at O P I n go. SMP futures down twenty six points, Stown futures down two eleven, NASAC futures down seventy six points ten. Your treasury yield two point

two year close to three percent. This is Bloomberg Bloomberg eleven three oh weather partly sunny today. We could see some strong thunderstorms this afternoon on our way near ninety degrees, Sunshine near ninety Tomorrow upr eighties and chance for an

afternoon shower Thursday. Right now seventy 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 Take, He's a Bloomberg Business Flash and I'm Karen Moscow. You must dock. Index future is falling as a dollar and sovereign bonnds rise, a pattern highlighting pervation of unease about the economic outlook amid high inflation and China's struggles

with COVID. They checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SMP futures are done about twenty nine points down, futures down two hundred thirty four and NASDAG futures down seventies seven. The decks in Germany is down nine tenths of upper cent. The ten year treasury of twenty thirty seconds yield two point nine one percent. The yield on the two year is

at three percent. NIMEX screwed oil is down two and a half percent on two dollars fifty seven cents at a hundred one dollars fifty two cents in barrel comes gold is little change at seventeen thirty two twenty announced the euro right at one point zero zero zero four against the dollar. British found one point one one eight and the en one thirty seven point one six Bitcoin this morning down more than four percent and nineteen thousand,

five hundred sixty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more unless going on around the world. Michael Karen, thank you very much. The January six Panel holds another public hearing today. It is expected to explore whether extremist groups worked in coordination with the White House allies in an attempt to overthrow the result of the presidential election through a political coup and the mobilization of an armed, violent mob. President Biden is set to meet

with Mexico's president at the White House today Later. President Biden is looking for cheaper oil prices on his Middle East trip this week, which will include a stop in Saudi Arabia. In baseball, the Mets one, the Red Sox, A's and Giants lost Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalists and analysts in more than

one countries. I'm Michael bar and this is Bloomberg. Nathan all right, Michael, thank you for coming up to five forty nine on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak on what looks like a risk off Tuesday morning. We are joined now by Ivy Jack, head of equity research at north Star Asset Management. Ivy, good morning, Futures continue to fall and we're watching for euro dollar parody this morning. What is your read on

this market? Thank you, Nathan. Um. I think like everyone else, we are waiting to see what happens. There are a lot of puts and takes going on. I mean, I will say first of all, Um, as I'm thinking about going into earning season, I'm mindful that pandemic is still with us. UM. This will be the first set of results where I think we have a lot of the

bad news that we've been anticipating. We will get a chance to really see how it impacts company earnings and whether or not margins are really going to come under pressure. So UM, I'm looking forward to starting off the week with the banks reporting this week to see, you know, what they're saying about consumers, what lending looks like. UM. But I think this is going to be a very telling reporter for all of us is there a concern

for you that there's more bad news to come. I mean, we've heard from the head of the International Energy Agency saying the worst the energy crunch isn't over. Well. The White House is saying that the inflation data we're gonna get tomorrow is backward looking. They're they're hoping for more optimism.

I think this is the first quarter where we're going to begin to see, uh, the full effect of what has happened with the war in Ukraine, the impact of higher energy prices, how it kind of has worked its way through the system. UM. I also think we're now beginning to see that demand is cooling as well. Um, you know, we have higher mortgage interest rates. So again, this is the first quarter where a lot of the bad news that we were anticipating we should start to

actually see, uh in the results of corporate earning. So I think that's what really makes this quarter unique compared to pass quarters, is we'll get to see the impact and also to get to see, if you know, margins are impacted. I will say I was really uh surprised that companies were still able to pass on a lot of higher costs to consumers. I don't know if they're going to be able to do that this quarter. So, um,

there's still a lot for us to learn. Are you looking for pretty strong downward revisions to the outlook for profit margins? Then I definitely am. And I mean I think I've started well, at least for the companies that I currently cover and I'm looking at. I've started seeing it already that earnings are coming down, and I think they're gonna have to come down more than what we're already seeing. What kind of catalysts do you think this

week's inflation data is going to be for markets? Wow? Catalysts. I think it's going to give honestly the fan more comfort to continue raising interest rates. Um. That's something else that I think I'm not really sure that has been fully appreciated the impact that that is going to have

on at the markets. Um. So I really think, like I said, terms of catalysts, they're gonna be a lot of things that probably come out that we haven't even anticipated because there there's so many things that are going on and coming together in this particular moment in time.

So when we hear from someone like Kansas City Fed President Esther George, who was warning that raising rates too fast could force the FED or cause the FED to Oversteerum, you're thinking that that doesn't hold much weight with the rest of the committee. Oh, I mean I think right now, look, we just got the job to report. You know, we got three hundred and seventy thousand jobs. That's still pretty strong. Um. So I think that in and of itself tells us

that the labor market is holding up pretty well. And I think if you're the FED, you want to try to get this done as soon as possible. So you're gonna try to raise interest raise as much as you can, as fast as you can, so that you can back off. So with that being said, Um, and on top of that, I'm expecting for inflation to come out ye higher than it was last month, and so I think again that is going to allow the FIT to get a little

bit more aggressive. So um, right now, I think, you know, we should be bracing ourselves for higher interest rates, perhaps higher than we anticipated. And on top of that, I think, you know, a labor market that has held up really well gives the FIT ammunition to keep moving forward. Thanks for this, Ivy, great having gone with us this morning. Ivy jack Head of equity research at north Start Asset Management. Karen.

All right, Nathan, thank you. It is five fifty three on Wall Street, and now we go to a story we are watching this morning, brought to you by American Arbitration Association. Business disputes are inevitable, resolve faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a d R dot org.

Now here's a legal story we're following with Elon Musk may have decided he doesn't want to buy Twitter after all, but he can't just walk away from the forty four billion dollar deal. Twitter said it will take Mustachord to compel him to go through with the agreement, and if history is a god, the odds are in Twitter's favor. For more, Bloomberg scu in Grasso speaks to Eric Tallely, a professor at Columbia Law School. Eric, I believe a few weeks ago you predicted that Musk would try to

walk away from the deal. Yeah, he was making sounds that he was trying to figure out a way to walk away from the deal, and most of the behavior that has been publicly observable was completely consistent with it.

The theory about you know, his concern over spam or body accounts set into motion what evidently has been a back and forth in which Musk and his representatives had made demands for more and more information, and at some point Twitter must have said, no, that's enough information, We're not going to give you anymore, or not going to give you information along certain lines that you've requested, and that, in part seems to have precipitated the letter that his

lawyer filed on Friday. And so that behavior, in some ways is what you would expect from someone who is trying to figure out a way to walk away from a deal. And you know, there was a part of the merger agreement that he is quite clearly now trying to seize upon that requires Twitter to comply with the reasonable requests to give information to Musk and his representatives, and if they unreasonably refused to give him access to that information, that could constitute a breach of the contract.

So I think that is effectively the course that most people, myself included, thought he was setting himself on, and that appears to have been correct. So Musk is claiming that Twitter's failure to hand over specifics on the number of bots amounts to a material adverse effect under the contract. But haven't Delaware courts been reluctant to find that and to allow people to walk away from mergers. Neither the Delaware courts nor these provisions themselves are incredibly generous about

giving people the ability to walk away. Until a couple of years ago. For example, although many buyers had tried to use this language to walk away from a deal, none had succeeded. Now one finally succeeded a couple of years ago, But even in that case, it was a fairly egregious form of fraud. And so the odds just

from a case law perspective, just don't favor Mosque. And based on the language of the deal and what we know that's in the factual record thus far, I think Twitter would have a very good chance at getting a specific performance decree, which is not just in order to pay damages, but in order for Elon Musk to close the transaction. And that's Eric tale Or, professor at Columbia

Law School, speaking with the Bloomberg June 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. And futures this morning falling with SMP futures down about thirty points, now futures down two hundred forty one and

NASDAG futures down. One ten year Treasury up twenty one thirty seconds held two point nine one percent, and they yield on the two year two point nine nine percent, and nim X screwed oil down two point four percent. It's aid one d one dollars fifty five cents of barrel to get more on the markets straight ahead on Bloomberg Daybreak and check on all the business headlines and the news you need to start your day as well. This is Bloomberg