Bloomberg Daybreak: July 13, 2022 - Hour 1 (Radio)

weapons ban. I'm Michael larm More Ahead, I'm John stash Own sports the Cincinnati Reds with four of the ninths. Don the Yankees sent them to a third strade, loss them. That's lost in Atlanta. That's all. S Trady Ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nineteen and around the world. Old on Bloomberg Radio Dot Carmen

via The Bloomberg Business. Good Morning. I'm Nathan Hager, and I'm Karen Moscow. US DOT Index futures are higher this morning. We're coming up to six o one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg guess in P futures of nine points down, futures up sixty three, and NAZAC futures at thirty five. The decks in Germany is down about three

quarters of a percent. Ten year treasury up to thirty seconds, the yale two point nine five percent, and the yield on the two year three point oh four percent. The euro is at one point zero zero three eight against the dollar. The yen is at one thirty seven point oh eight, and looking at bitcoin this morning, it's higher. It's at nineteen thousand is seven hundred and ninety dollars. Nathan Well, Karen, we begin with the big inflation report

Wall Streets bracing four. In about two and a half hours from Washington, the government will issue the Consumer Price Index for June. It's expected to show no let up on inflation. Amy Morris has more from our bloombergs room in Washington. May CPI rose eight point six percent year over year, abroad based increase and the largest in forty years. June's reading could be even higher based on a survey

of Wall Street economists. At the same time, Blueberg Economics says today's report will be balanced by recent evidence that inflation as well as economic growth may be moderating. The Federal Reserve is expected to keep raising interest rates to contain inflation by tempering economic growth. In Washington, I'm any

more as Bloomberg daybreak, heymy thank you. The tom priority for the Federal Reserve has curbing inflation, and Richmond Fed President Thomas Barkin sees another fifty or seventy five basis point rate high coming this month. We're engaged in a very challenging exercise, which is m to try to cool the economy down to normal levels right in an effort to bring inflation out of under control, but without the intent of trying to cool it so down that that

that the decline is calamitous. The right policies to get inflation under control. Richmond Fed President Thomas Barkin says today's CPI reading will inform the Central banks next move. He is not a voter around this year's rate setting. F O m C will higher. Gas and oil prices have been a major contributor to price spike's Karen, and today we're seeing crude higher following yesterday's nearly eight percent decline.

This morning, the International Energy Agency warns that oil prices pose a high risk to the global economic recovery, with signs that fuel costs are starting to take their toll on demand growth. Right now, West Texas intermediate crudes up six six tenths percent, sixty cents higher at ninety six forty three cents of Arrol Well Nathan. A sergein gasoline prices this year has Americans changing their minds on the next car they will drive, and we get the details

around Bloomberry se Lisa Mateo. According to a survey by the American Automobile Association, a quarter of Americans say their next car will be an electric vehicle. More than three fourths of them say their interest is driven by a desire to save on fuel costs. Gas prices, which have come down this month, reached a record five dollars and

two cents a gallon in June. Millennials are the most eager to electrify their ride, with thirty percent saying they planned to buy an EV next Last year, only three point two percent of US vehicles for E vs. Lisa Matteo Bloomberg Daybreak. Al Right, Lisa, thanks. Let's turn to corporate news now, where Twitter is escalating its battle with Elon Musk. For the details were joined live by Bloomberg's

Rene A Young. Good morning, Na, Good morning, Nathan. Twitter is suing Elon Musk after he abandoned his forty four billion dollar takeover bid, and the company is accusing him of having buyer's remorse after his fortune declined. Twitter lawyers say Musk should be forced to honor his agreement. The lawsuit says that Twitter has bent over backwards to provide

him with the information he's requested. Musk has been disputing claims that Twitter has less than five percent of its users as bots and wanted more proof, but he ultimately abandoned the deal partially because of those concerns. This filing is setting up what will be the closely watched battle in the Delaware court system. Life, New York. I'm really need a Young Bloomberg day Break. I need to thank you. Turning to politics now, It's all about geo politics. President

Biden submittast trip is underway. His first off Israel Bloomberg's and Marie Hordern is traveling with the President and final dis report from Jerusalem. Don't expect any major breakthroughs when it comes to the United States and the Israeli government. It recently collapse and they're looking ahead to elections in November. One key focus of this administration has been to normalize more Arab countries with Israel, and a key focus in

a country to watch out for Saudi Arabia. But there won't be any massive breakthroughs when it comes to dialogue or peace talks with the Kingdom, but potentially more Saudi airspace being open to more Israeli flights. The President himself will be one of them, the first president United States to fly from Israel to Jetta. Later in the week, the President is backtracking on a campaign promise to make the Kingdom of Priyah, but at home he needs the Saudi's help to put more oil on the market to

bring gasoline prices down in Jerusalem. I'm a Hordern Bloomberg News, Okay, and Marie, thank you. Back here in the US, the political focus remains on Capitol Hill. The House January sixth Committee says it's investigating the possibility that former President Donald Trump directly tried to contact a witness, Bloomberg said, Baxter has the story. The potentially explosive announcement by Committee Vice

Chairless Chaney was saved for the end. After our last hearing, President Trump tried to call a witness in our investigation, a witness you have not yet seen in these hearings. That person declined to answer or respond to President Trump's call and turned over the evidence to an attorney, who in turn contact of the committee. Chaney says, Now it has been turned over to the d o J for possible charges of tampering with a witness in San Francisco.

I'm at Baxter Bloomberg daybreak, all right, and thank you. SMP futures are higher, up about nine points this morning. Down futures up sixty two and nasday futures up thirty four. The decks in Germany is down about eight tens of uppercent ten year treasury up three thirty seconds, held two point nine five percent, and they yield on the two year three point oh three percent. And again n I make screwed. Oil is up three quarters of a percent. Straight ahead or latest local headlines plus a check of

sports and this is Bloomberg. Thanks caring at six oh seven on Wall Street, where as seventy five degrees in Central Park dealing with an accident still on the South New York State three wave hast eggs at sixteen. Details coming up in traffic. First. Michael Barr details on an accident on the Hudson River. Michael, it was a tragic afternoon. At least two are dead and ten injured after a

boat capsized in New York City Sudson River. The cause of the accident is under investigation, but the twenty seven foot private boat was in calm waters when it went down near Midtown Manhattan. New York City Mayor Eric Adams called a devastating moment for the city. Between New York Waterway Harbor f and gals who participated a week clearly saved live. New York Fire Commissioner Laura Kevanah spoke about

the conditions of the others. Are two New Yorker is in critical condition in the hospitals and an additional New Yorker who is stable the critical at the hospital at this time. We also have eight additional patients who are green tags and are in stable condition. Fire Commissioner Laura Kevanagh. The boat was charted by a group of family and friends. The January six panel revealed Donald Trump fought objections from his White House lawyers to a plan eventually discarded to

see states voting machines. The panel says, then Trump summoned supporters to march on the US capital, but we're turned into the deadly riot. Former oath Keepers spokesman Jason van Tatanhoef testified he wants more accountability. There was a gallows set up in front of the capital. This could have been the spark that started a new civil war and no one would have won there. That would have been

good for no one. Former oath Keeper Jason van Teytenhof says that he's worried about what will happen if Trump is reelected. Local media and Texas released edited surveillance videos showing law enforcement and Voldi waiting more than an hour to take action after our gunmen enter the broad Elementary school, killing nineteen children and two teachers. Police officers are seen in the video waiting in the hallway during the massacre.

According to CNN, one leaked segment of the video shows the gunman entering the school and walking down the hallway with a long rifle. The recording also shows officers approaching the classroom that the shooter was in, but then retreating down the hallway and taking cover when gunfire is heard. A gun rights group sued to overturn New York's assault weapons ban less than a month after the U. S. Supreme Court struck down a related state law that limited

who could carry a handgun in public. According to the fire Arms Policy Coalition, the assault weapons band violates the Second Amendment. Global News twenty four hours a day on their end on Bloomberg Quick Take, powered by more than journalists, analysts more than a hundred twenty countries on Michael bar this is Bloomberg Naked. Thank you, Michael. Almost six cent on Wall Street. Time for the Bloomberg Sports Update with

John Stenshown all right, Nathan. So many bright spots to this Yankee season, Maybe none brighter than the picture than reliever Clay Holmes, acquired a year ago from Pittsburgh. Holmes gave up a run on opening Day and then didn't give up another run for the next two and a half months for the Red Sox. Did get a big hit off him last weekend and one of those comeback wins. And last night at the Stadium against the lowly Reds,

Holmes suddenly couldn't get anyone out. A walk, I hit, a hit batsman, another single, another hit by pitch, and he was taken out. Jonathan India with two outs of the ninth, delivered the game winning two runs single off Wanda Peralta. Cincinnati with four and the ninth stunned the Yankees four to three, and the Yanks have now lost three in a row, blown leads in all three. It's only their second three game losing Street. The other was back in May. Mets in Atlanta had just five hits,

lost four to one. Is Matt Oles sending a two run homers six getting off David Peterson, Adam Duvall two run shot and then later on Seth Lugo the series in it. This afternoon, the Orioles one again they beat the Cubs. That's nine wins in a row. The Orioles have reached five hundred one and fifty Open Championship T's off tomorrow. Historic st Andrew's most of Tiger Woods as presser yesterday, where his thoughts about the new Live tour.

He's not a fan. I disagree with it. UM. I think that what they've done is they've they've turned our their back on what has allowed them to get to this position. Um. Some players have never got a chance to even experience it. Taggarts off tomorrow at ten eastern. He's playing with the US Open JAMP Matt Fitzpatrick, John stash Award Bloomberg Sports Thanks John smp futures up eight points, Stown features of fifty eight, nastacks features up thirty two points.

This red headline just across the Bloomberg terminal, traders are now fully pricing in a seventy five basis point rate hike in July ahead of June cp HI. We check in next with Bloomberg Economics correspondent Michael McKey. This is Bloomberg Bloomberg eleven three oh weather partly mostly sunny today with behind your ninety degrees afternoon showers and storms, fossil tomorrow, upper eighties, mix of sun and clouds. Upper eighties for Friday.

Right now seventy five degrees 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, He's a Bloomberg Business flash and I'm Karin Moscow. U stock index future is moving higher this morning, while stocks and your updip and cautious trading is dominated by a dimming economic outlook and an anxious wait for data that may show US inflation at a fresh four decade high.

That CPI report is due out at a thirty Wall Street time this morning. Right now is and P futures are up nine points of our future is up sixty two and now stay future is of thirty seven and the Dacks in Germany is down nine tenths of a percent. Pen your treasury of three thirty seconds, the yield two point nine five percent. That yield on the two year three point oh three nine mix. Frude oil is up nine tenths percent or eighty cents at ninety six dollars

sixty four cents of barrel. Comex school this it'll change at seventeen twenty six and ounce. The euro is at one point zero zero four zero against the dollar, British found one point one eight nine nine and again one thirty seven point one four and bitcoins higher up one point seven percent at nineteen thousand, seven hundred sixty dollars. And that's a Bloomberg business flash. Now here's Michael Barrow with more unless going on around the world. Michael Karen,

thank you very much. January six. Committee Vice cheer Liz Cheney revealed at the close of yesterday's hearing that former President Trump tried to call a witness in the investigation, and that the committee has notified the Justice Department. Also, former White House Council Patsypaloni testified a special order was drafted in December that would allow the Defense Department to

see voting machines. Military officials from Russia and Ukraine are set to hold their government's first phase to face talks in months. They're meeting in Istan Bowlder discuss a U n plan to export blocked Ukrainian grain to world markets through the black Seat. In baseball, the Yankees and Mets lost.

Also in the losing column, the Red Sox, the orioles As and Giants won global news twenty four hours a day on air and on Bloomberg Quick Take power by more than journalists and analysts more than a hundred twenty countries. Michael Barr this is Bloomberg. Nathan, Yes, it is Michael, Thank you. It is six nineteen on Wall Street live

from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak at six nineteen means we are about two hours and eleven minutes a give a take from the release of the June Consumer Price Index, what is likely to be another historically high read for inflation, and we're joined by Bloomberg Economics correspondent Michael McKee and Mike I know you saw that now traders are fully pricing in three quarter

percentage point rate hikes at the July meeting. Sounds like the market has made its decision on just how hot this inflation print is gonna be. I think that's the case. Most FETE officials are sticking to their predictions because a lot of them have been out saying seventy in July, so we haven't really seen any backing off from that. And I think one of the reasons is the increase in the CPI for the month of June is so

widely anticipated. Most of it's going to be driven by gasoline prices in the headline, and people know that's out there. The question is, what does the core look like. In other words, what does it look like if you take out gasoline and food prices and what's the month over month change? Are we hanging in there? Are we starting to see improvement on a month over month basis that doesn't isn't reflected in the headline because of base effects. Uh,

that's what the fet is gonna want to know. They're gonna worry about maybe an accidental going over nine percent because they don't want inflation expectations to get entrenched. But they are going to watch the monthly change to see the progression of inflation. That's certainly what matters to the FED.

The core cp I, and you look at the expectations on the ECO screen on the Bloomberg terminal, it sounds like economists are thinking, we're gonna see, uh slight drop in core cp I. What signs are you looking at that could point to where things are going in terms

of inflation outside those more volatile food and gas sectors. Well, we know that used car prices at a wholesale level have gone down over the past month and a half of the Mannheim reports suggests that used car prices will have backed off, and that was a big driver during the months coming out of the pandemic because there were no cars to sell, so that would be good news.

It's a reasonably large enough category. And also we know that inventories are very bloated, so consumer discretionary items, apparel in particular, maybe some other things might actually have seen a price decreases, retailer's discount trying to get rid of this stuff. What does this number mean in terms of the rate path going forward? Obviously we mentioned that money markets are pricing in seventy basis points this month, what about subsequent months? I mean, does backward looking data like

this really matter? What's the Fed going to be looking at going forward? Well, the reason it really matters is because of consumer expectations. If people start to get entrenched in their mind that inflation is always going to go up, then that makes it much harder for the Fed to get rid of inflation to help bring it down. So it will matter in that sense. But the question that arises immediately at eight thirty one Eastern time this morning after the release is what is the Fed going to

do at the September meeting. That's what matters to Wall Street, and no, this UM release probably won't have a major impact on that. It'll start people thinking about it. But we'll get August and September CPI numbers before where the Fed meets again, and so we'll have a much better idea of the progression of inflation. And of course, uh, I don't know if if you've noticed on your daily commutes,

but the gasoline prices have been coming down now for weeks. Yeah, that's right about for seventy I think, is what I've seen around my area. Anyway, I've got about a minute left here, and I know you weren't thrown by this, but before street time this morning, we got a fake cp I print that made the rounds online yesterday. Is fake news, just gonna be with us when it comes to eco data. It seems like it was unusual that this happened because HICO data is not usually something that

people care about. They do now and they you know, maybe it was an attempt by somebody to game the markets, but it quickly fell apart, So I'm not sure whether somebody else will try again. But you always have to be careful. And uh, you know what, Bloomberg will verify anything that goes out before we set it out. Yeah, when we verify that their fake stories are out there and post stories about that to let you know that the real stuff comes eight thirty Wall Street Time, as

usual from the Bureau of Labor Statistics. Bloomberg Economics correspondent Michael McKee, thanks for being with us ahead of the release of June's cp I. Looking ahead to the market open at nine thirty Wall Street time, SMP futures are up eight points, DAL futures up fifty one, NASTAC futures higher by thirty five points ten. Your treasury is up four thirty seconds, with a yield of two point nine five percent, still inverted between twos and tens. The two

year yield right now three point zero three percent. Nime x crew to touch higher, up a half percent, forty nine cents higher ninety six dollars, thirty three cents of barrel after yesterday's eight percent plunge in crude markets. Much

more to com. You're listening to Bloomberg Daybreak Ye Bloomberg eleven three oh weather sunshine high your ninety today, opper eighties tomorrow with a chance drafting in showers and thunderstorms, mix of sun and clouds, Oper eights for Friday Right now, seventy and sunny in Central Park, broadcasting live from Bloomberg Interactive Broker's studio in New York, Bloomberg E Living free to Washington, d C, Bloomberg ninety nine one to Boston,

Bloomberg one O six one to San Francisco, Bloomberg Ning sixteen to the country, Sirius XM h at A one nine te and around the globe to Bloomberg Business at and 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're just about three hours away from the open of US trading. Time to the five things that you need to notice Dark your day. Brought to

you by Interactive Brokers. Interactive Brokers charges margin loan rates from two point eight percent to three point eight percent, rates subject to change. Learn more at I b k R dot com. Slash compare first, who began with the latest Consumer Price Index, which will be released two hours from now, and Bloomberg's Viney down Judai says we're likely to see another hot inflation reading. May CPI rose eight point six percent you over a year abroad based increase

in the largest and forty years. June's reading could be even higher based on a survey of Wall Street economists. At the same time, Bloomberg Economics, as today's report will be balanced by recent evidence that inflation as well as economic growth may be moderating. The Federal Reserve is expected to keep raising interest rates to contain inflation by tempering

economic growth. Benny Ice, Bloomberg day Break, Okay, Vinny, thank you. Meantime, the International Monetary Fund cut it's month old growth projections for the U S economy. It's one of a broad based surgeon. Inflation poses systemic risks to both the US and the global economy and Federal Reserve Bank of Richmond President Thomas Barkin says the feds top priority is to curb inflation. The FEDS tools work over time, so I expect inflation to come down, but not immediately, not suddenly,

and not predictably. I'd expect inflation to bounce around on its way back to our target, and these significant oscillations are going to take time to damp. Richmond FED President Thomas Barkin says the right policy is to cool inflation without causing a significant economic downturn, we'll higher gas at all prices have contributed to the inflations by Karen. This morning, Crude is up following yesterday's decline. Checking prices now, nime Excrudes up six tenths per cent or fifty nine cents

at ninety six dollars forty five cents in barrel. Brent is at a hundred dollars two cents. Well incorporate news Nathan. Twitter's escalating its battle with Elon Musk and Bloomberg's or need a young joints life with more. Good morning Nina, Good morning Karen. Twitter is suing Elon Musk after he abandoned his forty four billion dollar takeover bid. The company is accusing him of having buyer's remorse after his fortune decline. Mind now. The lawsuit says that Twitter has bent over

backwards to provide Musk with the information he's requested. He's disputed Twitter's claims that less than five percent of its users are bought and wanted more proof. This filing is set up what will be a closely watched battle in the Delaware court system. Live in New York. I'm gonna need a young Bloomberg daybreak. All right, we need to thank you. That's the five things that you need to

notice start your day. Brought to you by Interactive Brokers. Again, futures are higher this morning and straight ahead your latest local headlines, plus a check of sports and this is Bloomberg. Thanks Karen six on Wall Street, seventy five degrees in Central Park. Problems headed the Jeff Careports southbound Van Wick's gotta crash at Atlantic Avenue. 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. Tragedy in New York City. Two people are dead after a boat capsized in the Hudson River in Manhattan, but East Commissioner Keeaching Seul saysn't happened mid afternoon. This is a tragic day for New Yorkers. Indeed, it may have well been worse or not for the incredible effort by not only our own extraordinary first responders, but also the swift response from the New York Waterway Ferries, who rescued

nine additional people from the water. A nearby ferry rushed to help pull people from the water. As mentioned by Police Commissioner teaching Seoul. At least nine others were sent to local hospitals. The mayor of Vivaldi Taxes is furious after video footage from the rob Elementary School hallway was leaked ahead of a private family viewing scheduled for this weekend.

You've Aaldi Mayor Don McLoughlin says he feels the families were blindsided by the release of the tape and when it comes to the local, state and federal authority scene waiting in the hallway while the violence inside continued. McLoughlin wants everybody who's seen on the tape to be held accountable. I'm not shipping the blame, but there was enough half powered officers, US Martshalals, DPS, Border Patrol, DHS to come

in and say, hey, we're going We're doing this. The Austin American Statesman and a local TV station released an edited version of the seventy seven minutes of valance video. According to seeing an anim one video shows the gunmen entering the school and walking down the hallway with a long rifle. The recording also shows officers approaching the classroom that the shooter was in, but then retreated down the

hallway and took cover when gunfire is heard. It was more than an hour later before authorities confronted and killed the shooter. Sri Lanka's president fled the country early today, slipping away only hours before he promised to step down under pressure from protesters angry over economic chaos that has triggered severe shortages of food and fuel. Thousands of protesters

are also demanding that the Prime minister resigned. A US gun rights groups sued to overturn New York's assault weapons ban less than a month after the U Supreme Court struck down the related state law that limited who could carry a handgun in public. The Firearms Policy Coalition says the band violates the Second Amendment. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven journalists and analysts more than

a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan, thanks Michael, come up to sixty six on Wall Street. And John Stenshar has the Bloomberg Sports Update. Banks Dathan Yankees were cruising along at the stadium against the Cincinnati Reds, the team that began this season three and twenty two. Garrett Cole was sharp seven scoreless Indians, gave up only four hits, struck out eleven Anthony Rizzo by two runs single before there was an out in the first inning.

Yanks took a three nothing lead to the ninth gave the ball to their all star Clay Holmes, who has been nearly perfect this season. He has taken the closer roll away from a role as Chapman. Homes then faced five batters and could not get anyone out, gave up two hits, the walk hit two batters. The Yanks were still one out from victory. To pitch India Lupson into short center field. It's down for a basive one rental score.

Here come Salano pill score, and the Rats have come all the way back to take the lead shots in India with his second hit tonight, what's the Rets on top four to three, and at the final w l W and Cincinnati, the Reds of one five in a row, three straight Yankee losses blown leads in all three. The Mets loss in Atlanta four to one. The Braves got two run homers from Matt Olsen and Adam Duval. They

are thirty and nine since June one. If Atlanta wins again this afternoon, they'll be only a half game behind the Mets and NHL free agencies on the way. The biggest name was of Jenny Malkin, but he is staying in Pittsburgh, where he has spent his entire sixteen year career. Got a new four year contract with the Penguins. Tiger Woods his first public comments about the new Lived tour, says he doesn't understand why anyone would want to give away a chance to play the major. Says they've turned

their back on the PGA. Tiger passed up the US Open to get ready to play the Open Championship. He wanted to play St. Andrew's one more time while he feels he's still competitive the one Open Championship. Jess Off Tomorrow, johns Starre Shanwa, Bloomberg Sports. Thanks John sixty seven On Wall Street, Let's take a look at stocks some of the names moving in the pre market right now with Bloomberg Radio and TV Markets correspondent Crety cooped to create

Let's get the update. Twitter versus Ellen Well. The lawsuit is certainly been filed, at least on Twitter side. They are officially suing Elon musk Over has abandoned forty four billion dollar takeover bid. Those shoes are higher by to tune about one point four percent. T W t R

is your taker. This is important, Nathan, because we're talking about this being a suping filed in Delaware, which a lot of folks perhaps aren't familiar with with the chancery court there, but basically a lot of companies are incorporated in Delaware. It's a very business friendly environment. It's also in environment where it's kind of known to be sticking to the rules. If you say you're going to take over a company, they're going to enforce that. At least

that's been the precedent there. So the idea here being that Twitter is does have the upper hand going into that law student, not necessarily that they're going to come out on the winning hand, but that is what the street take is for the moment. So tw t R rising on that prospect up one point four percent and was high. I should mentioned postmarket after that official lawsuit

came out, Nathan. We should take with the tech story though, because Google is also very important to watch two stories here. G O O G is your ticker we'll start off there. The shares are about three tenths of a percent. But keep an eye on this one because two things happened. The first is alphabets. Google is planning to slow hiring

for the remainder of the year. That's coming. According to an email to staff from the CEO, Soonder pitch, I you are also seeing alphabet stocks a little bit concerning when it tells that cow and They're trim their two Google Search and YouTube add estimates at following checks and suggested that search is seeing healthy demand but that the

business ease is decelerating. This is something that was largely expected, but Cowen coming out and saying we'll really keep an eye on it because that deceleration could come faster than expected. Once again, Google shares g o O G up three tenths of one percent. All right, creating We just got earnings this morning from Delta Airlines. Big earnings miss, a big earnings miss, and I mean this is perhaps setting a poor precedent for some of its peers, American Airlines

for example, or even United. We are going to hear from them, I believe going into next week with Delta shares, well, let's like they're up now one point three percent, but they were down far far more. What's interesting here is the difference between their operating margin and their capacity, because it says their third quarter capacity was down about fifteen

to seventeen percent relative to pre COVID levels. There are also saying that Delta may buy about twelve more Airbus eight to twenty jets that according to Reuters, so perhaps expecting a little bit more demand there. So you do have some two conflicting forces. Um when it comes to how the stock is trading at the moment. Right now, it is up one point four percent. We're gonna see when the earnings call comes on what other color they can give about that capacity. But Nathan a stock to

keep an eye on, Yeah, certainly. Bloomberg Radio TV Markets correspondent Crety Gupta with us this morning. She'll continue to be keeping an eye on stocks and the broader market, joining Tom Key and co hosting Bloomberg Surveillance on Bloomberg Radio all week, beginning at nine Wall Street time. This morning, sb futures up six points, staff features up thirty eight, nastac features up twenty six points. You're listening to Bloomberg

Daybreak Bloomberg eleven three oh weather. Sunshine today with a high near ninety chance for afternoon showers and storms tomorrow. Oper eighties will have a mix of sun and clouds Friday and a high near ninety degrees once again right now seventy five degrees in Central Park. Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business App, and at Bloomberg Quicktake, Tru's a Bloomberg Business lash and I'm Karen Moscow. Futures on the rise.

This morning, we get to the first word breaking news dash for today's morning call. Here's Bill Maloney, Good morning, and good morning, Karen. Modest gains in the US futures right now a deaf features up fifty two points, sesamees gains seven one night stick features are up by thirty six the US ten years at two point nine five percent, Gold is little changed, Oil is in the green, and Big Coin is trading higher by one point seven percent.

Shanghai was little changed overnight, while europ markets are in the red, led by one percent losses in Germany. Back in the US, on the economic front, at a thirty to consumer price index at two o'clock, the Fed releases it's beige book regarding earnings this morning, Delta EPs missed estimates, and in other news, Google plans is slow hiring for

the remainder of the year. Wrapping things up, Armstrong World was raised by over Goldman Sax, Juniper was cut to underway to Piper, and Lazard was cut to underperform over at KBW Live from the first breaking news bestcom Doll Maloney care all right, Bil, thank you, and you mentioned Delta earning, so shares down nine tenths per cent in early trading right now, and to hear live breaking news over your Bloomberg types, squawk on your terminal squ a

w K, that's a bloom Business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. January six, Committee coach here Liz Cheney, said the panel had notified the Justice Department that Donald Trump himself had contacted the potential witness who was talking with the committee. The panel also presented evidence that Trump Ate secretly planned for a second rally stage across from the capital on the day of the attack.

President Joe Biden lands in Israel this afternoon for a three day stop before heading to Saudi Arabia. Ron's quickly evolving nuclear program is high on the agenda. In baseball, the Yankees and Mets lost. Also in the losing column the Red Sox, the Orioles, A's and Giants. One Global News twenty four hours a day on air and on Bloomberg Quick Tank Power by more than journalists and then lists more than a hundred twenty countries. Michael Barr and

this is Bloomberg. Karen, all right, Michael, thank you at a sixty nine on Wall Street. Returned to news and science and technology now at the Bloomberg and j I. T. Stam Report brought to you by New Jersey Institute of Technology, ranked to town fifty national public university by US 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 Here's what's making news

and science, Technology, engineering and math. And Shanghai coronavirus cases appear to be leveling off after a recent surge. Still, residents have in urged to stockpile food and medicines that sparked fears that the city could return to lockdown. Shanghai's flare up is just one of the outbreaks. China's currently grappling with Mexican President Andreas Manuel Lopez overdoor, has agreed to spend one and a half billion dollars over the

next two years to improve a smart border technology. During meetings with President Biden, a series of agreements the two countries hammered out called for several other concrete moves, including expanding the number of work visas the U S issues and creating a bilateral working group on labor migration pathways. And New York researcher has transplanted pig hearts into two brain said people over the last month. It's the latest innistring of developments in the long question of one day

safe human lives with animal organs. The Food and Drug Administration is considering whether to allow a small number of Americans who need a new organ to volunteer for rigorous studies of either pig hearts or kidneys. And as a Bloomberg n j I t STEM report Nathan Okay, Karen,

thank you. We are live from the Bloomberg Interactive Brokers Studios or as six fifty on Wall Street time to check what's going on in d C. Some of the top stories in our nation's capital include the January six Committee making a mapping a path from a wild Trump tweet to the capital attack, President Biden on a Middle East trip that's all about oil, and Vice President Harris

revealing a new Pacific strategy and encountering China. Let's bring in Bloomberg Government reporter Emily Wilkins for more on all these stories, starting with what we learned from the latest January six hearing. Emily, take us through what came out of it. It sounds like the panel is making the argument that the mob was galvanized by President Twitter. Yeah, that was definitely part of what happened at the hearing yesterday.

The hearing really focused a lot on this one tweet set in the early hours of December nineteen from Trump basically telling his reporters supporters to come to d C, saying that it will be wild. Um and the committee also focused on what happened in the White House in the hours leading up to that tweet being sent. A meeting late in the evening on December eighteenth, Um that

some advisors to the White President called unhinge. They said, it was profanity laced meeting where a number of the president's advisors were urging him to accept reality, and the you know, announced that he had lost the election, sort of call off his supporters. And then you had another group of Rudy Rudy Giuliani, UM and others who are telling Trump, know, what you need to do at this

point is double down. We can find a way to make sure that that you know, we put forward these alternative elections and and find a way to fight and and see if you can still become president. And so it was a very interesting hearing, a really kind of delve into what the White House was like on a very particular night before Trump sent that tweet. We also

learned that they expected to have a second stage. Remember there was the here, there was the event on the ellipse, but there was also going to be another event closer to the Capitol Um. They also dug into the fact that the march of the Capitol was planned from the start um and that Trump initially had it in a

draft of his speech. And then at the very end of the hearing, vice chair Liz Cheney revealed that Trump had tried to call a witness in the investigation, UM, and that they had to learn alerted the Department of Justice to that. Interesting that final point to come out from the vice chair of the committee, and it sounds as though they may be pointing to the possibility of at least referring this to the Justice Department. I mean that has some pretty serious implications. Yes, I mean, this

would be this muind to be witnessing tampering. I mean, this is an investigation and congressional congressional in the investigation that's going on. They did refer this to to the Department of Justice. Um, there's certainly, you know, other questions about Remember, as everything happens with January six, there's also the Justice Department to keep an eye on because there are also watching their own investigation into this. They've brought charges against folks UM, and so they're sort of, uh,

not perfectly working together. It will be it would be inaccurate to say that, but certainly you've got two bodies there who are very much focused on getting to the bottom of what happened in the months leading up to January six and on the day itself. Okay, let's turn to President Biden's trip to the Middle East. He's heading to Israel right now, multiple challenges to address, and we've already gotten some news made on the way. Yeah, we've got at this point a schedule about what exactly Biden

is going to be doing. We know that he will be meeting with Saudi crown parents Mohammed bin Salmon on Friday night as long as other Saudi leaders. Uh. He's also expected to do an announcement on food security on Thursday and talk about the importance of sustainable energy supply level on UH during the trip as well. But Nathan, this is gonna be a tough trip for President Biden. I mean, he's coming at a time where his approval rating is very low, even compared to his most recent

predecessor in this office. Uh. And you've got a pretty big goal. He needs to try and figure out a way to stabilize gas prices, lower gas prices, and that's going to come to an ask to the Saudi government to be able to ramp up productions. Stabilize helps stabilize the region, and that's really not a guarantee that that

is going to happen. At the same time, he's got a lot in his own party who are frustrated with Hi, saying that he should not be going to Saudi Arabia because of their record of human rights abuses and their actions with Washington Post journalists Jamal because Sogi, who an intelligence report revealed that was killed at the hands of the Saudi government. So lots for the president to try to overcome as he makes his way through the Middle

East over the next few days. Let's talk about this new UH strategy focused on Pacific nations that came out from Vice President Kamala Harris. What's the focus there, because so the idea is to really prioritize pecific nations in foreign policy as well as addressing some concerns over exclimate change and the whole idea here, Nathan is that what they really want to do is our counter China's bid

in that nation. They want to make sure that they're building up US influence and relationships with allies that are, you know, physically close to China. And so Vice President Kamala Harris announced the plans to in more embassies UM. She's talked about having more officials at the White House and executive level that are working in the area. UM. And you know, this is also coming as other US allies in Australia and New Zealand are ramping up their

relationships with Pacific island nations. Of course, for a lot of these nations, a big concern for them is climate change and what's going to happen. I mean, if you were a tiny island out in the middle of the ocean, it's a huge concern. And so they are taking steps to try and making sure that they're addressing climate change, stepping up sort of talking more to the leaders of those specific island nations about what is needed um and

finding ways to address it. Yeah. Interesting to see the focus continue to be on China and the challenge there, even as President Biden heads over to the complete other side of the Asian con and Bloomberg Government reporter Emily Wilkins thank you for this from the nation's capital. Read more about all these stories on Bloomberg dot com or on the Bloomberg terminal, and listen to Bloomberg Radio in Washington Bloomberg and one oh five point seven FM HD two.

Head of the release of June consumer prices, futures are moving to touch higher mentioned earlier, traders are now fully pricing in seventy five basis point rate hikes from the FED at the upcoming July meeting. Right now, SMP futures up six points, now features up forty NASTACK futures are higher by thirty one points. The tenure treasury is up five thirty seconds. The yield two point nine four percent. Yield on the two year higher at three point zero two.

Nim X screwed up seven tenths percent, nineties six dollars fifty cents of barrel bitcoin nineteen thousand, seven hundred dollars. Bloomberg Surveillance is up next with Tom King, Jonathan Farrow, and Lisa abramoids for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg