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

weapons Man. I'm Michael lar More. Ahead, I'm John stash Our sports the Cincinnati Reds with four of the ninths done. The Yankees sent them to a third strade loss. Come that's lost in Atlanta. That's all trading ahead on Bloomberg Daybreak on Bloomberg Elibing Free on New York, Bloomberg one, Washington, d C, Bloomberg one six one, Boston, Bloomberg nine sixties, San Francisco, Syrius Exam one nineteen and around the world. Then Bloomberg Radio dot Com and via the Bloomberg Business App.

Good morning, I'm Nathan Hagar, and I'm Karen Moscow and U West Dock Index futures are higher this morning. We're coming up to five o one on Wall Street, and we check the markets every fifteen minutes. In while the trading day on Bloomberg, SNP futures up eleven points. This morning, Down futures up seventy five, NASDACK futures up forty seven. The decks in Germany's down seven tenths of a percent.

Ten year treasury up to thirty seconds yield two point nine five percent, and they yield on the two year at three point oh three percent. Nathan Karen, we begin this morning with the big inflation report Wall Street is bracing for three and a half hours from now. In Washington, the government issues the Consumer Price Index for June, and it is expected to show no let up on inflation. Amy Morris has more from our Bloomberg ninety nine one

newsroom in Washington. May's CPI rose eight point six percent year over year abroad based increase and the largest in four of 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 mayby Moore as Bloomberg Daybreak, right, Amy, thank you. The top priority for the Federal Reserve as curbing inflation. 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 to try to cool the economy down to normal levels, right in an effort to bring inflation 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 on this year's rate setting. F o MC higher gas and oil prices taring have been major contributors to the spike in inflation, and today we're seeing crude higher following yesterday's nearly eight percent decline. This morning, the International Energy Agency is warning that oil prices pose a high risk to the global economic recovery, with signs that phil costs are starting to take their toll on demand growth.

Checking prices now nimex scrude is up one point three percent or a dollar twenty three nine seven cents for a barrel of West Texas Intermediate Well, Nathan the Surgeon, gasoline prices this year has Americans changing their minds on the next car they'll drive. We get the details from Bloomberg's 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 plan to buy an e V next. Last year, on three point two percent of US vehicles for e vs. Lisa Matteo

Bloomberg Daybreak. Okay, Lisa, thank you. Let's turn to corporate news now, where Twitter is escalating its battle with Elon Musk. For the details, we are joined Live five Bloomberg's Renia Young, Good morning, 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 Twitter's claims that less than five percent of its users or butts and wanted more proof, but he ultimately abandoned the deal partially because of those concerns. The filing is setting up what will be a closely watched battle in the Delaware court system. Live in New York. I'm rened a Young Bloomberg Daybreak right, Reneeda,

thank you. But there's also news from Google today. The company plans to hiring this year, and an email to staff Alphabet CEO Sundar Pasha notes the possibility of a recession and urges the company to work with greater urgency. He says Google will focus on hiring engineering, technical and other critical roles. Al turning to politics, now kring. It's all about geopolitics. With President Biden heading to the Middle East, his first stop is Israel. Bloomberg's Amrie Hordern is traveling

with the President and filed this report from Jerusalem. Don't respect any major breakthroughs when it comes to United States and the Israeli government. It recently collapsed 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 Pariah, but at home he needs the Saudi's helped to put more oil on

the market to bring gasoline prices down in Jerusalem. I'm Amory Hordern, Bloomberg News, right, and Murray, thank you well. Back here in the US, the political focus remains on Capitol Hill. The January six Committee says it's investigating the possibility that former President Trump directly tried to contact a witness for the committee. Bloomberry said, Baxter has the story. The potentially explosive announcement by Committee Vice chair List Cheney

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. Cheney says, now it has been turned over to the d o J for possible charges of tampering with a witness. Insane for Francisco. I'm

at Baxter Bloomberg daybreak, alright, and thank you. In futures this morning on the rise, SNP futures up eleven points down, futures of eighty two, Nasdack futures of forty six, and the ten year treasury up one thirty second yeal two point nine six straight and had your latest local headlines plus the check of sports and miss is Bloomberg right, Karen, thank you. It's five or seven on Wall Street, seventy six degrees in Central Park. Already dealing with an accident

investigation in te Neck. The eight and nine five local lanes are closed between exits seventy and seventy one. More coming up in traffic. First, Michael bar with an accident on the Hudson River. Michael, thank you very much. Nathan. At least two people are dead and ten injured after a boat cap sized in New York City's Hudson River. The cause of the accident is under investigation, but the twenty seven foot private boat was in calm waters when

he went down near Midtown Manhattan. New York City Mayor Eric Adams called it a devastating moment for the city. Between York Ward Away Harbor FDN Y and girls who participated a week clearly saved live. New York Fire Commissioner Laura Kavanaugh 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 but 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 Kavanaugh. The vote 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 seize states voting machines. The panel says, then, in the last ditch effort to salvage is presidency, Trump summoned supporters to march on the

US capital for were turned into the deadly riot. Former oath Keeper spokesman Jason van Tatanhov testified he wants more accountability. There was a gallows set up in front of the capital. 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 Oathkeeper Jason van Tatenhove says that he's worried about what will happen if

Trump is re elected. Local media in Texas released edited surveillance video showing law enforcement and Vivaldi waiting for more than an hour to take action after a gunman entered the broad Elementary school, killing nineteen and two teachers. Police officers wearing body armor are seen in the video waiting

in the hallway during the massacre. A gun rights groups sued to overturn New York's assault weapons van 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 Firearms Policy Coalition, the assault weapons ban violates the Second Amendment. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven journalists analyst more than a

hundred twenty countries. Michael bar this is Bloomberg. Nathan. All right, Michael, thank you, Coming up to five ten on Wall Street. Time for the Bloomberg Sports UPDATEK Good morning, John Stanshine, Good morning, Nathan. So many bright spots to this Yankee season, maybe none brighter than the pitching of reliever Clay Holmes, acquired a year ago from Pittsburgh Homes. Gave up a run on opening Day and then didn't give up another

for the next two and a half months. But the Red Sox didn't get a big hit off him last weekend in one of their comeback wins, and last night at the stadium, gainst the lowly Reds, Holmes suddenly couldn't get anyone out a walk a hit, a hit batsman, another single, another hit five pitch at Holmes was taken out Jonathan India with two outs of the ninth and delivered a game winning two runs single off Wandy Peralta and Cincinnati with four in the ninth stunned the Yankees

four to three. Of the Yanks have now lost three in a row, blown leads in all three. It's only their second three game losing three. The other was back in May. Mets in Atlanta had just five hits, lost four to one. Is Matt Olsen at a two run omber six innning off David Peterson. Adam Duval followed with the two run shot at any later off seth Lugo. The series ends this afternoon. At this time tomorrow in Scotland will be underway the one and fifty at Open Championship.

It's at historic St. Andrews. That's why Tiger Wood wanted to play. But most of Tigers pressroo yesterday where his thoughts about the new Live Tour. He's not a fan. That is a possibility that some players will never ever get a chest to play a major championship. Never got a chest experience this right here. Um I walked out in the fairways August, Nashville. I mean, uh that that

to me? I just don't I just to me, I just don't understand it, says the live guys have turned their back on the p G A. He teas off tomorrow ten Easter. He's playing with the US Open. Chat Matt Fitzpatrick, John stash Award Bloomberg Sports. All right, John, thanks SMP futures of ten points down, futures of seventy nastac futures are hired by thirty nine points. Ni'm x screwed up one point two per cent at n barrel are elevated oil prices with US for a while. Bloomberg's

Will Kennedy joins us. Next to this is Bloomberg Bloomberg eleven three oh oather partly the mostly sunny today with a high your ninety degrees operated. These are the chance drafting in showers and storms tomorrow will be operatees mix of sun and clouds on Friday. Right now seventy six 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. This is a Bloomberg

business flash and I'm Karen Moscow. US DOT Index futures are higher this morning, while stocks in Europe and dip and caustious trading dominated by a dimming outlook and an anxious wait for data that may show US inflation at a fresh four decade high. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, S and P futures are up about ten points down. Future is up seventy one. NAS day futures up thirty eight.

The decks in Germany is down eight tenths of upper cent. The ten year treasury up to thirty seconds two point nine five percent. They yield on the two year three point oh four percent. Nin Max Screwed oil is at one point one percent of a dollar eight at ninety six dollars and ninety two cents of Daryl coll Max school.

The tenth of upper cent or two dollars is seventeen twenty six ninety announce the Euro one point zero zero three seven against the dollar, British pound one point one eight nine, the n at one thirty seven point one five and look at it. Bitcoin this morning higher up more than two percent at nineteen thousand, eight hundred fifty dollars.

Now that CPI report is at eight thirty Wall Street time, the Federal Reserve at least as its page book at two, and Delta is among companies schedule to report earnings today. That's a Bloomberg Business Flash. Now here's Michael Barr with more on what's going on around the world. Munchael, Good morning, Good morning, Karen. January six, Committee co chair Liz Cheney said the panel I had notified the Justice Department that Donald Trump himself at contact at the potential witness who

was talking with the committee. The panel also presented evidence that Trump aid 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 three days stop before we heading to Saudi Arabia. The 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 won Global News twenty four hours a day on it or 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 Okay, Michael, thank you. It's five nineteen on Wall Street Live from the Bloomberg

Interactive Broker Studios. This is Bloomberg Daybreak. And while we wait for that all important June Producer price index later this morning, we want to take a closer look at the oil market because that's been such a big piece of the price pressure as we've been experiencing over the last several months. Now, right now, crude is trading about a hundred dollars of barrel, but run around nineties seven for West Texas Intermediate, giving up most of the games

we saw after Russia's invasion of Ukraine. But the era of higher fuel prices maybe with us longer than many policymakers and drivers might like. Bloomberg's senior executive editor for Energy and Commodities, Will Kennedy has a story about this for Bloomberg Business Week, and Will joins us now with more on it. Well, good morning. We kind of heard about this just this week from the head of the International Energy Agency saying the worst of the energy crunch

maybe ahead of US. Why. I think there are several reasons. Yes, some of the heat, as you say, is kind of out of viral prices in recent weeks as concerns about the state of the global economy has grown and the dollar has risen, which tends to be bears viral prices. But when you look at the fundamental underlying supply and demand picture, there's no reason to see any sort of collapse in virald prices. And in fact, you know, most commentators think that the market will remain tight. There are

a few reasons for that. Demand remains robust and it's still recovering from the pandemic, and people want to be out traveling again and flying again and driving again, and that's adding adding to demand, and it's expected to continue to grow. And then on the supply side, you know, OPEC is struggling to meet its current targets. There maybe a little bit more oil from Saudi Arabia in the U a E. And that's something that Joe Biden will be discussing with the Saudi's when he's in the Kingdom

later this week. But other producers are struggling to increase production. US shale industry isn't booming like it once was UM and traditional basins UM investment is quite low, so there's no reason to see a sudden glot of oil, and in fact, a lot of people think that the picture will remain, as I say, fairly well balanced. It does bring some attention, as you mentioned to President Biden's trip to Saudi Arabia later on this week into the weekend.

We heard from the Biden administration this week, and they think that oil producing countries may have some spare capacity to boost production. Is the Biden administration wrong here? No one knows the precise numbers. Yes, I think Audi Arabia does have some extra spare capacity. The UAU probably has a little bit of spare capacity too, although as I pointed out in my story, the leader of the u A told the French president that he didn't think he had that much more to give a couple of weeks ago.

But there's probably some oil for both. The question is exactly how much and importantly for how long. Saudi Arabia is producing at very high levels already. Um IT says it can go to twelve million bells a day, which is you know, about another million bolls from where it is now, but it's only ever hit twelve million bills for a few days, and it's not known to the market whether it can do that on us is for

sustained period. There's another issue here as well. Once that extra Saudian u A oil comes into the market, then the world has very little spare capacity. So traders have to confront the world where if there's another outage and we've seen oil bowels disappear from Libya because of unrest there, for example, or there's a big hurricane in the Gulf of Mexico later in the year, then the market has

little ability to respond. That swing producer role of Saudi Arabia has normally played is all tapped out, and I think that's another issue that the market is going to have to deal with and another reason why prices may remain fairly elevated now. Of course, Russia plays a big part in this as well, right I mean, we heard from JP Morgan is putting out a worst case scenario that prices could spike a three eighty dollars a barrel if for Russian crude gets off the market. Russia is

the great actor in global oil markets right now. Clearly it's using its leverage and global oil markets is one of the world's most important supplies of crude and natural gas to further its political ambitions in the war in Ukraine. Um, we see how it's putting pressure in on Europe through the gas market. It could do something with oil. So far, it's oil production has fallen a bit because traditional buyers

in Europe have shunned Russian crude and products. But a lot of that oil has switched to India and China. But if Putin really wanted to give the global economy a shock, he could reduce rushes of reduction and that could send prices stratos fat. Because JP Morgan, we're exploding in that note. Is that likely? Perhaps not, but definitely President Putin is another factor that traders have to put into their calculations. Thanks for this well, great having you

on with us this morning. Will Kennedy Senior Executive editor for Energy and Commodities for Bloomberg News, and look out for his story on the Bloomberg terminal it's coming up in Bloomberg Business Week on why elevated oil prices could be with us four months, if not years thanks to the underlying dynamics of the oil market. Looking ahead to the market open on Wall Street, futures are a touch higher as we get ready for June. Consumer prices. S

ANDP futures are higher by nine points. STOW futures up sixty eight. Nasdaq futures are higher by thirty nine points ten. Your treasury is up to thirty seconds now, the yield almost two point nine six yield on the two year three point zero four per cent. You're listening to bloom Daybreak Bloomberg eleven three oh weather. Sunshine in a high near ninety today, upper eighties possible tomorrow with a chance drafting in showers and storms. Makes of sun and clouds

upgradies for Friday. Right now seventy six 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 O six one to San Francisco, Bloomberg NUN sixty to the country, Sirius XM to A one nineteen and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow.

We are just about four hours away from the open of US trading. Let's see at you up to date on the news you need to know at this hour, and we begin with the latest Consumer Price Index, which will be released three hours from now. Bloomberg's Vindeydale Judai says we're likely to see another hot inflation reading. May CPI rose eight point six percent 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. Vinnie der Judeace, Bloomberg day Break,

All right, Vinnie, thank you. Meantime, the International Monetary Fund cut it's month old growth projections for the US economy, warning that a broad based surgeon inflation poses systemic risks about the U, S and global economies. And Federal Reserve Bank of Richmond President Thomas Barkins says, the feds top priority is to curb inflation. The FEDS tools work over time, so i X effect 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 damn them. Richmond FED President Thomas Barkins says the right policy is to cool inflation without causing a significant economic downturn. We'll higher gas and oil prices have contributed to the inflation spike. Karen,

and this morning, crude is up following yesterday's decline. Checking prices now, Nime excrudes up one per cent, or ninety three cents at ninety six dollars seventy seven cents a barrel. Brent is at a hundred dollars forty four cents. Well, Nathan incorporate news. Twitter is escalating its banel with Elon Musk, and Bloomberg's Nita Young joins us live with more Good Morning, Ready to 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 buyers of remorse after his fortune declined. Now, the lawsuit says that Twitter has bent over backwards to provide Musk with the information he's requested. He's just spute at Twitter's claims that less than five percent of its users are butts and wanted more proof. The filing is setting up will be a closely watched battle in the Delaware court system. Live in

New York, I'm Nita Young, Bloomberg Daybreak. All right, thanks Nita, and sticking with corporate news, Google plans to slow hiring for the rest of the year. Alphabet CEO Suon Rp noted the possibility of a recession an email to staff and said Google will focus on hiring for specific critical roles and futures are higher. This morning, straight ahead, your latest local headlines, plus a check of sports. And this is Bloomberg on Wall Street, seventy six degrees in Central Park.

And Michael Barr has more on what's going on in New York end around the world. Michael, thank you very much. Nathan. A tragedy in New York City. Two people are dead after a boat capsized in the Hudson River in Manhattan. Police Commissioners. Sul keagent says, it happened mid afternoon. This

is the tragic day for New Yorkers. Indeed, it may have well been worse are 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. Police Commissioner Kasian It's a nearby ferry also rushed to help pull people from the water. At least nine others were sent to

local hospitals. The mayor of Vivaldi, Texas, is furious after video footage from the rob Elementary School hallway was leaked ahead of a private family viewing scheduled for this weekend. I've Aldi Mayor Don McLaughlin says he feels the families were blindsided by the release of the tape and when it comes to the local, state, and federal authorities seen waiting in the hallway while the violence inside continued, mccaughlin wants everybody who's seen on the tape to be held accountable.

I'm not shifting the blame, but there was enough half powered officers, US Marshals, DPS, Border Patrol DHS to come in and say, hey, we're going we're doing this. The Austin American Statesman and the local TV station released an edited version of the seventy seven minutes of valence video. According to CNN, in one video shows the governman 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. It was more than an hour later before authorities confronted and killed the shooter. Sri Lanka's president has fled the country early today, slipping away only hours before he promised to step down under pressure from protesters angry over eating on the chaos that triggered severe shortages of food and fuel. Thousands of protesters

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

than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan Michael, thank you on Wall Street. John Stanshowers the bloom Brig Sports Update, Thanks Naethin. Yankees were cruising along against the Cincinnati Reds, the team that began this season three and twenty two. Garrett Cole was sharp seven scoreless and gave up only four hits. Struck out of eleven Anthony Rizzo at two, one single before there was an out in the first. Yanks took the three nothing leading

to the ninth. Gave the ball to their all star Clay Holmes, who has been nearly perfect this season. That's why he's taken the closer roll away from a roll as Jackman. Holmes then faced five batters, couldn't get anyone out, gave up two hits, a walk, hit two batters. Yanks were still one out from victory. India loops it into short center field. It's down for a base it one rental score. Here comes Solano bill score and the Rats have come all the way back to take the lead.

Chattas in India with his second hit Tonight, What's the Rats on top four to three, w and Cincinnati for three the final. The Reds have won five in a row, three straight Yankee losses with blown leads in all three. Mets lost in Atlanta four to one. The Braves got two on homers from Matt Olson and Adam Duval and they are thirty and nine since June one, and if Atlanta wins again this afternoon, there'll be only a half

game behind the Mets. NHL free agency is underway. The biggest name is of Jenny Malkin, but he's staying in Pittsburgh, where he has spent his entire sixteen year career. Tiger Woods first public comments about the new Live Tour, he says he doesn't understand why anyone would give up a chance to play the majors. Says they've turned their back on the PGA. Tiger passed up the U S 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 hundred and fiftieth Open Championships. He's off tomorrow. John Stash Award Bloomberg's foots Nathan. Thanks John. It's thirty seven on Wall Street time for the Tri State Business Report with Bloomberg's d Cory. New York City's estimated personal income tax payments in June declined to the

lowest level since t seventeen. That marks the first sign that the stock market tumble is hitting the revenue of the financial capital. According to City Controller Brad Lander, New York is suing the owners of a building in Manhattan for running illegal short term rentals through platforms like air B and B. City officials claimed that Aaron Latimer, licensed real estate broker, building owner Apex Management, and managing member Esther Yip allegedly have been running an illegal operation in

the Turtle Bay neighborhood in Midtown Manhattan. The owner of a natural gas fire power plant in Queen's plans to close the facility and transform it into a clean energy transmission and storage hub. Rise Light and Power plans to final applications this year with state regulators that developed the Ravens would generating station. That your Bloomberg Dry State Business Report. I'm in Corey. Thanks that 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 of filliate radio stations around the world. I'm Steve Polask on ten ten Wins in New York. We're talking about how the end of tax incentives threatened New York's rental market. I'm Corney Donahoe on w h S and Louisville. A quarter of Americans say they will buy an electric vehicle for their next car. I'm Gina Servetti

and for k CDs in San Francisco. I'm reporting that Twitter's attorneys say they need just four days to prove that Elon Musk should be forced to honor his buyout agreement. I'm Stephen Carol and Bloomberg DAB Digital Radio in London were reporting on the surprise and the latest UK GDP figure is showing stronger than expected growth in May. I'm Ad Cory on w w J and Detroit. I'm reporting the median sales price for a home in Metro Detroit

has topped three hundred thousand dollars. When those are some of the top stories are hundred Bloomberg journalist and analysts working on this morning, It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This sedatorial was written by the Bloomberg Editorial Board. In some ways, Congress's response to the COVID nineteen pandemic amounted to a

striking bipartisan success. Lawmakers passed six laws offering more than five trillion dollars in relief, helping to keep households afloat, businesses open, and the economy from outright collapse. Unfortunately, the response also wasted money on a large scale. An analysis of more than eleven million paycheck Protection Program loans found that about one point four million, or fully twelve percent, showed some indication of fraud. The author's estimate total suspicious

lending may have exceeded one hundred seventeen billion dollars. Any big federal outlay will lead to attempted scams and swindles, Yet the scale of COVID fraud has been remarkable. Congress owes its two taxpayers to find out what went wrong and to koop as much of their money as it can. This 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 and you are listening to Bloomberg Daybreak. Bloomberg Opinion editorials can be heard every weekday at this time. Terminal customers can read more at op I n go seventy six degrees right now in central Park making our way up to ninety under a partly of mostly sunny sky markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. This is a

Bloomberg Business Flash, and I'm Karen Moscow. You West Dot Index futures are higher, while stocks and You're up a dip and caustious trading dominated by a dimming anomic outlook and an anxious wait for data that may show US inflation at a fresh four decade high. We checked the markets every fifteen minutes throughout the trading day on Bloomberg.

Right now, SNP futures are up nine points down, Future is up sixty five, NASDAG features up thirties seven the decks in Germany is down seven tenths of a percent. Ten year treasury up one thirty second yeal two point nine six percent, The yield on the two year three point four percent. Nine max screwed oil is up nine ten percent, or ninety three cents and ninety six dollars

seventy seven cents a barrel. Comics gold is up a tenth of a percent of a dollar eighty at seventeen twenty six seventy an ounce, the Euro one point zero zero four one against the dollar, British pound one point one eight nine seven and the end one thirty seven point one one, and Bitcoin this morning is up one point seven percent at nineteen thousand, seven hundred sixty dollars. That's a Bloomberg business flash. Now here's Michael Barr with

more on what's going on around the world. Michael, thank you very much, Karen. January six, Committee Vice chair 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 Consul Pat Sipaloni testified a special order was drafted in December that would allow the Defense Department

to seize voting machines. Military officials from Russia and Ukraine are set to hold their government's first face to face talks and months. They're meeting in Istanbul to discuss a u N plan to export blocked Ukrainian grain to world markets through the Black Sea. 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 here and on Bloomberg Quick Take, powered by more than twenty seven under journalists and analysts more than hudred twenty countries. Michael bar this is Bloomberg Naked. Thank you, Michael. It is five forty nine on Wall Street Life from the Bloomberg Interactive Broker Studios. This is

Bloomberg Daybreak. Five means we're about two hours and forty one minutes away from the June consumer Price index that is expected to show another historically high month for inflation. Sarah House is with us this morning ahead of the release of those numbers, senior economists at Wells Fargo. Sarah, good morning. I think just about everybody thinks CPI is gonna come in hot. I guess the question is, are we going to get any signs that inflation has peaked Sarah.

I don't think we have Sarah with us at the moment, so we'll be uh checking her line see if we can get more insights into this consumer price index for June, which economists surveyed by Bloomberg predict is going to come in eight point eight percent higher compared to last year. We'll try to get Sarah back on the line. In the meantime, let's turn over to Karen with a look at the Bloomberg Law brief. Karen, all right, well, Nathan, thank you. It is five or fifty on Wall Street

at this time. For the Bloomberg Law Report. It is brought to you by American Arbitration Association. Business Disputes are inevitable, Brazil Faster with the American Tradition Association, the global leader in alternative dispute resolution for over ninety years. More at a dr dot org. Now, let's get to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger, the

Eleventh Circuit reinstated a Georgia roundup. Users claim that Bayer failed to provide adequate warning about the cancer risk posed by the herbicide. Al Nylum Pharmaceuticals expanded legal battles against Fisser, bion Tech and Moderna, charging the company's COVID vaccines are delivered using technology covered by an all Nylum patent. A copyright suit filed by fitness trainer Tracy Anderson accuses former employee Megan Roupe and her company, The Sculpt Society of

stealing choreography. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg market Intelligence. Find out more at Bloomberg Law dot com. All right, Jeff, thank you now. Another legal story where watching basketball star Britney Grinder pleaded guilty last week to drug positions during the second session of her trial in a Russian court.

But unlike the American system, where a guilty plea ends the trial, Grinder's trial will continue tomorrow, and even after the verdict in sentencing, there is no clear path to bring Grinder back to the US. For more, Bloomberg student Grosso speaks to Jeffrey Kahn, a professor at Southern Methodist

University School of Law. So she's pleaded guilty. What happens next is she sentenced next well, the next hearing is scheduled for July four, And in the Russian system an imposition of punishment, the sentencing usually is done in very close proximity with the court's conclusion that the defendant is guilty of a crime. So conviction and sentence usually come very close together. That's another big difference between the US

approach and the Russian approach. In the US approach, the individual can try to present reasons why lesser should be imposed. There is very little time in the Russian system for contrition to happen. The judge is going to impose that sentence very quickly, and so it may be that Ms Grinder was given the advice that if she wanted to be able to influence the size of her sentence, now was the time. In the last few weeks, there's been

what you could call a full court press. Grinder's wife did several television interviews, Grinder wrote a much publicized letter to President Biden. There's been public support from her teammates and other athletes. Could this high profile push backfire One reason the State Department has generally advised families not to go to the press is because of the fear that this would actually increase the price, so to speak, of return of their family member, that as someone gets more

and more attention, that person's value goes up. The State Department, I think, is also concerned that elevating this to such a high level of attention can encourage other states to seize and bring up on trial Americans who are traveling abroad.

On the other hand, the families of individuals who have been involved in this terrible sort of circumstance have sometimes said that they have felt that nothing was done until they spoke up and went to the press, and that certainly has been what the family of Trevor Reid, that young Texas student, has said after his return to the United States. So could it backfire? It seems that it certainly could, But that's not known to anyone with the

exception of the Russians. And that's Jeffrey Kahn, a professor at Southern Methodist University School of Law, speaking with the Bloomberg stun Grosso. Catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law podcast or downloading the show at Bloomberg dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b law Ago. Nathan, all right, Karen,

thanks fifty four in wallster. I think we were all of some of the technical issues and have wells. Fargo Senior economist Sarah House back on the line with us. Sarah, are you with us? I am all right, great, thanks for being here. As we look ahead to the June c p I, do you think we're going to see any signs of peak inflation on a print that I think just about everybody is expecting it is going to

come in hot this morning? So I don't think anything in today's report will signal that we've quite reached peak and inflation. I think more of that comes from the recent commodity movements we've seen over the past few weeks, and I think overall we look underneath the hood, we're still likely to see a very hot core CPI print again. So even as we see some reliefs coming down the pike in things like food and energy, I think we still have stubbornly high inflation. Well how much then, does

this report matter for the Fed? As you mentioned, it is backward looking, but is it going to keep the FED on track for an aggressive rate hike this month or in two subsequent months. Yeah, so I think overall we're still looking at another monster size hike. So are expectations that we'll see the side move ahead seventy five basis points at their meeting here in a couple of weeks. I think really you'd have to see significant increases in the core that are broad based for that to potentially

come a one hundred basis point hike. I don't think we can write anything off at this juncture. Alternatively, I think if you saw significant cooling across the core, it could uh suggest that maybe they can can go at that slightly slower pace of a fifty basis points. But I think given that overall you're still likely to see another historic print that I think seventy five basis points is a reasonable assumption of this point. Well, what's your

projection about where we are going on core inflation? Obviously that is what the FED is focused on. Yeah, so if you look at the year of year numbers, we think that they're actually likely to head up over the next few months and retest the highs that we've seen earlier this year. And that's because you still haven't seen services inflation peak. So there's still a lot of strength coming out the housing market. There's a lag and when

that data shows up. But even beyond housing, and there's still quite a bit of demand out there for travel services and even in some of the Mormon game services things like home insurance, auto insurance, medical care. And so I think we haven't seen that peak, and so that's going to make it really hard to see that series of moderation prints that in the core that I think could get the FED to really back off and move

to a more moderate pace of tightening. Only have about a minute left here, Sarah, But we got this fake CPI report that made the rounds online yesterday. How much of an issue is fake news when it comes to

gaming out the inflation expectations. So I think overall that just illustrates just how important this data is pad that someone's taking the time to just fake this news that you know, this is the number one concerned facing the economy right now and the number one threat, And so I think overall that just underscores the the overall attention on the current inflation data and what that means for the broader economy. Alright, glad we were back getting be

able to get back connected with you, Sarah. Thanks for this. As we look ahead to June cp I, Sara House, a senior economist at Wells Fargo, in the survey on the Bloomberg Terminal of economists, eight point eight percent year over year inflation, one point one percent month over month. Expectation is core cp I will drop just a bit from six last months down to five point seven percent.

Those numbers come out eight thirty Wall Street time. Of course, we will have full coverage for you here on Bloomberg Radio. Right now. SMP futures are up nine points, STOW future is up sixty seven. NASZAC futures up thirty seven points. The ten your Treasury is up to thirty seconds, yield close to two point nine six percent. Bloomberg Daybreak continues on this Wednesday morning. This is Bloomberg