Bloomberg Daybreak: July 14, 2022 - Hour 1 (Radio)

City Council demands Mayor Adams restore school budgets. I'm Michael barn More Ahead, johns fash Owen Sports, the Yankees care for barring to fit the Red the Mets one in Atlanta, The Open Championship golf underway in Scotland. That's all s Train ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one, Those six one, Boston, Bloomberg nine sixties, San Francisco, Syrius x M one nineteen and around the world on Bloomberg

Radio dot Com and via The Bloomberg Business Up. Good morning, I'm Nathan Hager and I'm Cameron Moscow. US Dock Index futures are following this morning. We're coming up to five oh one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SNP futures are down forty six points down, futures down three hundred thirty five, and NASDAG futures down one thirty one.

The decks in Germany's down eight tenths of uppercent ten year treasury down nine thirty seconds, YELD two point nine six percent, and the yield on the two year at three point one and nine percent. Nathan Karen reaction is still rolling into yesterday's hot rating. On inflation, the dollar is trading at a twenty four year high against the end, and speculation is growing that the Fed's next move maybe a one percent rate hike rather than a seventy five

basis point increase. We caught up with Cleveland Fed President Lauretta Mester. Certainly, the inflation reports suggests that there's no reason to say a smaller rate increase than we did last time, right because nothing moved in that direction. Cleveland Fed President Loretta Mester made those comments in an interview with Bloomberg's Kathleen Hayes. Stay tuned for more of that

conversation coming up shortly here on Bloomberg Daybreak. Well, Nathan Mester is not the only FED official hinting of higher rates to come. At Lanta. FED President Raphael Bostick says, quote, everything is in play for policy action this month. Begin more from Bloomberg Shirley Pillett. His comment came after data showed that US inflation accelerated again to a fresh four decade high last month. Speaking to reporters in St. Petersburg, Florida, Bostick said the top line number is a source of

concern and everything is in play. The comments add fuel to bet so the FED is more likely than not to raise interest rates by one hundred basis points when it meets later this month in New York. Charlie Pellett Bloomberg Daybreak. All right, Charlie, thank you. Coming up today, we get another reading on inflation with the release of the Produce ser Price Index for June. Here with the

preview is Bloomberg's Michael McKee. Though it would seem logical the producer price index actually doesn't really lead moves in the consumer price index, and that may be a good thing. Unlike consumer prices, producer prices have been falling a little bit after reaching a peak in March. The economist consensus forecast is that continued to come down in June. But CPI surprised to the upside last month, and there's a

risk at least headline PPI could do the same. Oil and gas a lead prices rose as did other commodities, pushing up the cost of goods. The unanswered question is how service prices have behaved. Watched the Trade Services index in the pp I. It's something of a proxy for margins. As earning season gets underway in the US. Michael McKee, Bloomberg, Gabriad All right, Mike Banks and speaking of earning, the season gets started this morning in earnest when big banks

are poor? Do we get the details from Bloomberg? A global finance correspondention, Alle Boss, JP Morgan and Morgan Stanley kickoff earnings for the biggest US banks and recession fears are growing across the economy. The question is our provisions for loan losses going to build? Especially at JP Morgan, where not interest income is also rising due to higher interest rates. The question is how much will that offset any future pains from any potential recession ahead. I'm Shanelli

basic Bloomberg Daybreak, All right, sale, thank you. As recession fears grow on Wall Street, one top tech executive says the industry will be able to weather the storm. Let's get that live from Bloomberg's Grnida Young, Good morning, Granita, Good morning Nathan. IBM CEO Arvin Krishna says he believes business technology spending will remain robust above DDP growth, even including Europe. And this is even after others in the industry have been pessimistic in the face of a potential

US recession and resulting slower growth. When you look at supply chain inflation, Liabo demographics, interest rates. Technology offers you away to scale without necessarily increasing costs that are linear or the linear. IBM CEO Arevn Krishna is less optimistic about supply chain problems. He says they are a real, fundamential, fundamental issue that's going to be on going on for a couple more years. Live in New York. I'm rened a Young Bloomberg Daybreak, All right. We need to thank

you about turning to politics now. President Biden most signal like continuing US commitment to Israel's defense. As part of his trip through the Middle Age, the President signs a joint declaration with Israel's new Prime Minister, extending an agreement that provides billions of dollars to the country's military. Tomorrow, Biden heads to Saudi Arabia. Democratic Congresswoman Abigail Spenberger says he'll need to project American values when he meets with

Crown Prince Mohammed bin Salman. He must raise the issue of Jamal Kashoki's murder. He must continue to ensure that we have strong expectations of what our Saudi partners are or are not bringing to the table, whether they are or are not um meeting the expectations that we have in terms of the values that they um are by Congresswoman Abigail Spenberger of Virginia spoke of their Washington correspondent Joe Matthew on Bloomberg Sound On Catch the program weekdays

at five pm Eastern on Bloomberg Radio. We have new developments in the battle against the pandemic. This morning, Karen the nation's top doctor says the O macron b A five variant is becoming worrisome. Bloomberg said, Baxter has the story. COVID Response Coordinator, doctor Ashe's Jaw says, it's something to very carefully watch. It is certainly the most immunovative. What we're seeing as people who are previously infected getting reinfections

at high rates. People who got vaccinated, let's say last year, having a ton of breakthrough infections. So something that we're you know, obviously paying very close attention to you. Yeah. Dr Josh says mitigation tools like smart use of masks and of course vaccinations is important. He says everybody over fifty needs a second booster in San Francisco, I'm at Baxter Bloomberg daybreak, all right, and thank you. And despite COVID concerns and current economic conditions, back to school shoppers

are expected to spend a record amount this year. According to a survey by Deloitte, Sales for the season are expected at total thirty four point four billion dollars. It breaks down to sixty per student, an increase of eight percent from a year earlier. Again, future is moving lower. This morning, straight ahead, your latest local headlines, plus the check of Sports, and this is Bloomberg. Thanks Karen. It's five oh seven on Wall Street. Were at seventy three

degrees in Central Park. Big problems for rail commuters this morning. Michael Barr is here with that and more that's going on in New York and around the world. Good morning, Michael, Good morning Nathan. Commuters are saying, oh great, here we go. This justin New Jersey Transit has suspended service in and out of New York City. Rail service is suspended into and out of Penn Station, New York due to amtrack

overhead wire issues. New Jersey Transit rail tickets and passes will be cross honored by New Jersey Transit, bus and private carriers. Path is cross honor ring at newer Penn Station, Hobo Conterminal and Penn Station, New York. It is the third shark attack in ten days on Long Island. A forty nine year old man was attacked by a shark yesterday evening, less than twelve hours after a paddle boarder

was attacked at a nearby beach that morning. According to the Suffolk County Police, the man was standing waist deep in the water at Seaview Beach on Fire Island when he was bitten on his wrist around six pm. Also his leg. Earlier that morning, at year old man was bitten by a shark while paddle boarding at Smith Point Beach.

Both suffered non life threatening injuries. Suffolk County Executive Steve Alone I think it is an indication, however, that what we're looking at is uh something of a new normal. Suffolk County Executive Steve Bloone says the tigers sharks are closer to the shore than they've been In New York City. The council members are calling on Mayor Eric Adams and the Department of Education not to exercise budget cuts, and a joint letter council members saying it will result in

the city spending less on each child. Last month, the city Council signed off on a two fifty million dollar budget cut and Adams three city budget. Now, council members say the Atoms administration has led them by saying the cuts would be fully accounted for by declining enrollment. A new mental health clinic and the Bronx just opened its diverse Mayor Eric Adams as the short term treatment center will provide new Yorkers with mental health and substance of

use issues, immediate access to services. We unfairly treated the New York City Police Department in this city in so many ways. We called on them to do everything. We called on them when someone had a gun. We called on them when someone had a cat up the tree, We called on them when someone was going through a mental health crisis. We called on them for everything and didn't realize that we had other agencies that we should have.

Cord Ate it with Mayor Adams again. New Jersey Transit suspended service in and out of New York City overhead wire issues. I'm Michael barn and this is Bloomberg Nathan. Thank you, Michael. Five ten on Wall Street time for the Bloomberg Sports Update with John Sesshire Banks Nathan. The Yankees and Reds at the stadium, the Yanks trying to avoid their first four game losing to taking the season.

The night did not begin well at last seven No injured most of the last three seasons, He's been so good this year, but he served up three home runs in the second inning while taking his warm up to us as in the third, he left the game headed for an m R. I on his shoulder. Yanks called behind four nothing, came back Isaiah Kiner Falapa pree run double and led five to four, trailed six five. John Carlos Stanton a game tying home run. Eighth inning. Yanks

stared in the tent for get another walk off. Wins seven to six. Mets used the long ball in Atlanta, delivers and Lindoor rips it deep in the air right field. Kunia turns around, watches it fly. That was way out of here. We three run blast for Francisco Windoor. He comes through in the top of the third inning and he extends the Mets lead to four nothing. CDs had a solo shots from Marc Canada warda Eskibar. Mets be

the Braves seven three. Chris Bassett got the win. Mets take the series, lead Atlanta by two and a half. They visit the Cubs tonight. Two American late teams stretched their winning streaks to at ten. The Seattle Mariners, who have gone longer than any team in all of sports without making the postseason, and the Baltimore Orioles, baseball's worst team over the last several years. The Mariners now tied for the playoffs spot the Orioles only two games behind

Toronto fired manager Charlie Montoyo. The Rangers have signed free agent Vincent tro Check away from Carolina Open Championship. Golf hundred and fifty edition underway a historic st Andrew's min wou Ye stand eagle on the fourteen poll, got the four under He's got a one shot lead. John stash Award Bloomberg Sports Naphen John Thanks. SESP futures down forty two points, Sound futures down three twenty five Nassect futures lower by a hunt thirteen points. You're listening to Bloomberg

Daybreak Bloomberg eleven three oh weather. Mix of sun and clouds and showers and storms developing through the day with a high near ninety degrees, sunshine near ninety tomorrow, mix of sun and clouds upright ease Saturday, right now seventy

three in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quick Jade's a Bloomberg Business Flash and I'm Karin moscow Ustack Index futures are falling this morning, along with European shares and the dollar resumed its advance after high US inflation hardened expectations for more aggressive Federal

Reserve monetary tightening that could trigger our recession. We checked the markets every fifteen minutes throughout the trading day on Bloomberg Guess and P futures down four points down, futures down three twenty nine and Nastack futures down on the decks in Germany's down seven tenths of upper set ten. Your treasury down six thirties seconds, held two point nine five percent. They yield on the two year three point

one nine percent. NIMEX scrude oil is down two point seven percent, down two dollars sixty cents and ninety three dollars seventy two cents a barrel. And comic School there's down one point three percent. It's at seventeen thirteen fifty announced. That's a Bloomberg business flash. Now here's Michael Barrow with Moore on what's going on around the world. Michael, thank you very much, Cameron. President Joe Biden will seek to bolster co operation between the US, Israel, and other countries.

During his first full day in the Middle East, his schedule today involves meetings with Israeli Priminister Here LaPete. The FDA authorized the Novovaks COVID nineteen vaccination for emergency use and adults in baseball, the Yankees beat the Reds, The Mets beat the Braves. The Nationals lost both games of a double header to the Mariners. The Orioles beat the Cobs, the Giants top the Diamondbacks. The A's lost to the Rangers.

Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts in more than one twenty countries. Michael Barr and this is Bloomberg. Thanks Michael. It's five nineteen on Wall Street Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak. The Federal Reserve has its work cut out for it when it comes to inflation. That's according to Cleveland Fed President Loretta Mester. Her comments follow

yesterday's hot reading on consumer prices. Mester spoke with Bloomberg's Kathleen Hayes late yesterday about the latest CPI report and where the Fed goes from here. Let's go to part of that interview now about a week at half ago, you said that if conditions were pretty much the same as they were, then you would be on board. You would probably be supporting a seventy five basis point rate high. NAT only saw on the inflation report even higher than expected,

few signs that inflation is easing up. Uh, would you be on board potentially with a one hundred basis point high July meeting? Well, Kathleen, we don't have to make that decision today, and there's more data coming out than I'm going to be very attuned to. We have retail sales coming out on Friday, and we have a very important University of Michigan report, and of course that's important because it has the in Placed Expectations Measure UM, a consumer measure in there. So you know, we have data

coming out. What what I take from the report and it was uniformly bad. There was no good news in that report at all, was that inflation remains at a unacceptably high level. We at the Fed have to be very deliberate and intentional about continuing on this path of raising our interest rate until we get and see convincing evidence that inflation is turned the corner is on a downward path, and it's sustainably on a downward path, and

that we just have more work to do. So you know, I will make that decision about you know, what the right number is in terms of the rate increases. But we're gonna have to continue on this path because we haven't seen UM monthly numbers coming down. You know, even the monthly numbers, UM, they are moving in the wrong directions.

So we just have to be very intentional here. UM. The Beige Book came out today as well, and as you saw in that report, UM, and that's a nice report because it really shows you across the country, our

business contacts and consumer contacts. There's concern about UM recessionary risk going up, But the same point in that report that I took was there's continuing to be price pressures, no alleviation there, and that some of the moderation and demand is really being driven by the fact that consumers have to pull back some of the discretionary spending because the prices of food and energy and other essentials are so hot. So let me ask you, this is a

hundred basis points. If if we had asked you about a hundred basis points a couple of weeks ago, two or three months ago. I don't even think we have got to ask you, but is that something though you could see being discussed. Would you discuss it? Is it something given what we see in inflation now that is quote unquote on the table that maybe has to be under consideration because the FED has to figure out just

how aggressive you have to be. Well, we're gonna have a meeting and we're gonna talk about what the appropriate path of policy is. And again, you know, we don't have to make a decision today. We're gonna take them to account all the data. But you know, we're having this conversation. The markets are having a conversation and putting their money where their mouth is in terms of where market expectations are. So we're gonna be talking about the appropriate path of policy. And I have not seen any

convincing evidence that inflation is termed the corner, right. We haven't seen anything that in that new CPI report that suggest inflations turning out. And now we do know that energy prices right are have fallen compared to the prior month, So you know, there's some expectation that the next report

on inflation. We might see that part going down, but on the other hand, we have shelter prices going out, so again, you know, I think it's much more The focus, I think is on the fact that we're going to have to keep moving into st rates up being very deliberate and intentional about it, right, you know, we if you know, we're moving towards a two and a half percent what with the long run neutral rate is my own belief is that we're going to need to go

beyond that and will beyond that because right inflation and inflation expectations are higher than two percent now, So we're gonna have to keep moving and the pace of which we do that at and you know what any particular meaning is really going to be driven by. Are we seeing demand get into better balance with constraints supply which remains constrained in order to see that inflation it on

that a sustainable downward. We have not seen that. And that was Cleveland FED President Loretta Mester speaking with Bloomberg's Kathleen Hayes on the heels of yesterday's hot Inflation reading. You can catch the full interview we have it up for you on Bloomberg dot com or on the Bloomberg terminal. Futures continue to point lower following yesterday's hot cp I print and as we look ahead to producer prices later this morning. Right now, SMP futures are down forty nine points,

that's a drop of one point three percent. Down futures are lower by three fifty nine points, and NASDAC futures lower by one hundred forty three points a ten. Your treasury is down seven thirty seconds, the yield two point nine six percent, The yield on the two year three point one nine niam X screwed is down two point six percent, and ninety three dollar seventy five cents a barrel. The euro right now one point zero zero two two

against the dollar. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather showers and storms developing through the day as we had near ninety degrees. Will be sunny tomorrow with a high near ninety mix of sun and clouds to start the weekend. Right now, seventy two in Central Park, broadcasting live from the Bloomberg Interactive Broker's studio in New York.

Bloomberg eloving freon to Washington d C, Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country Sirius XM Channel one nine and around the Blob, the Bloomberg Business app 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 Moscower. Just about four hours away from the open of US trading.

The sketch you up to date on the news you need to know at this hour, Reactions still rolling into yesterday's hot reading on inflation. The dollar is trading at a twenty four year high against the end, and speculation is growing that the Fed's next move maybe a one percent rate hike. Cleveland FED President the Rettamester says there's a lot of work left to do to cut inflation. Job one for us is to get inflation under control.

And I say that knowing that the risk of recession have on but that's part of what we're trying to do, is normalize or or moderate the man because if we don't do this, we're gonna have many more problems in the economy going forward. Cleveland FED president the Reddemester made the comments to Bloomberg's Kathleen Hayes. Catch the full interview on Bloomberg dot Com and on the Bloomberg terminal. Wellmester isn't the only one hinting at higher rate increases, Karen.

Atlanta FED President Raphael Bostick says, quote everything is in play end quote for policy action. He calls yesterday's top line CPI number a source of concern. We get another reading on inflation in just a few hours with the release of the Producer Price Index. Nathan. There's also more data to digest this morning. Earning season gets underway as big banks open their books for the second quarter. Coming up today to get results from JP Morgan and Morgan Stanley,

and as recessions fears grow on Wall Street. Karen, one top tech executive, says his industry will be able to weather the storm. Bloomberg. Trinity Young joins US Live with more Ranita, Good morning. Nathan, IBM CEO Arvid Krishna says he believes business technology spending will remain robust above GDP growth, including in Europe, and this is even after others in the industry. You have been pessimistic in the face of a potential US recession at resulting slower growth. When you

look at supply chain inflation, liberal demographics, interest rates. Technology offers you away to scale without necessarily increasing costs that are linear or the linear. IBM CEO Arvin Krishna is less optimistic about supply chain problems. He's is they'll go on for a couple more years. Live in New York. I'm really need a young Bloomberg daybreak. I need to

thank you. And turning to politics now, President Biden will signal like continuing US commitment to Israel's defense today signing a joint declaration with Israel's new Prime minister that provides billions of dollars to the Israeli military. Up next, the President heads to Saudi Arabia for a meeting with Crown Prince Mohammed Ben Salmon. It is currently well futures this morning, you're moving lower with S and P futures down forty five points straight. I hand your latest local headlines plus

a check of sports, and this is Bloomberg. Thanks Carte on Wall Street seventy two degrees in Central Park and the big headline locally this morning, Big problems on the rails. Michael Barr has that and more on what's going on in New York and around the world. Michael, thank you very much. Nathan Commuters is saying, here we go. New Jersey Transit has suspended service in and out of New York City. Apparently they are overhead wire issues, but and

the path train are cross honoring. Of course, we're following this story throughout the morning. Two more shark bites happened within hours off Long Island yesterday. Suff A County Executive Steve Malone called it the new normal. They've always been here, but they're close to the shore now. Beloone says. In one attack, a surfer punched the predator, was knocked off his sport and then saw this shark coming back around towards him. Suffolk County Executive Steve Malone says both men

suffered non life threatening injuries. It is the third shark attack in ten days off Long Island. New York City Council members called on Mayor Eric Adams and the Department of Education to hold school budget cuts they say will result in the city spending less on each child. Last month, the city Council signed off on the two fifteen million

dollar budget cut in passing Adams twenty three city budget. However, in a joint letter, council members say they were misled when the Adams administration said the cuts would be fully accounted for by declining enrollment. High In Park, Illinois, held a candle light vigil to honor those killed and injured during the July fourth Parade mass shooting. Mayor Nancy Rotoring we are all survivors. Each of us will have a different experience and a different timeline as we find a

way to move forward into our new normal. Mayor Nancy Rodering says seven people were killed. Again our top story in New Jersey Transit has suspended service in and out of New York City, apparently overhead wire issues. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than seven hundred journalists analysts in more than a hundred twenty countries. On Michael bar This is Bloomberg, Nathan Michael. Thanks on Wall Street time

for the Bloomberg Sports Update, which on standshop. Thanks Dathan. The Yankees had lost three and around blown leads, and all three this time they were the ones that came from behind down four nothing later six five they beat the Reds at the Stadium seven six ten at INDs, the winning run square on a wild pitch Isaiah Narco left at a three run double Giant Carlos stanton I gained tying home run. Now the yankster waite word on an m R. I on Luis Savarino's shoulder. He knew

early on last night something was wrong. On first speech something it was like ninety ninety one, you know what that'st not mean. But I told I I couldn't get a little bit more after that Cyclaney, you know, when I was rowing up, it was I wasn't from getting worse. So I told him my seven before something even bigger happened. I mean, you know, slubber right here. Svorenas made it back from multiple injuries over the last few years. That's one in Atlanta seven three, they hit three home runs

and playing a three un shot for Francisco Indoor. They win the series and lead the Brays like two and a half. In tonight they played the Cubs at Wrigley where Baltimore one again. Last night the Orioles and won ten in a row. Still in last place with the over five hundred, only two games out of the playoff spot. NHL free agency, the Rangers signed Vincent Trocheck to a

seven year dealing with with Carolina. They also added a veteran backup goalie Yooslav A lot open if a chip golf underway at historic St. Andrews, and right now there's a three way to halve the lead at four undertar went Bloomberg Sports. John Thanks thirty six on Wall Street Time for the Tri State Business Report. Here's Bloomberg's at Cory. Manhattan apartment rents hit a record in June, with even more pain to come for prospective tenants as the market

heads into its most competitive season. New leases were signed last month at a meeting in a four thousand and fifty dollars, according to appraiser Miller Samuel and brokerage Douglas Eleman Real Estate. Tommy Hill Figure, which is owned by p v H, says it's returning to New York Fashion

Week for the first time in three years. The brand plans to offer what it calls an experiential runway event that will unveil the latest see now by now Fall twenty two collection New York reached a half million dollars settlement to resolve claims of harassment, discrimination, and wage theft at a popular Lower Manhattan bar. It's part of a crackdown on worker mistreatment. New York Attorney General Letitia James Alimes the bar's owner allowed male managers to engage in

sexual commentary on female workers. That's your Bloomberg Try State Business Report. I'm in Corey, Thanks seven on Wall Street. Bloomberg Radio is 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 Podascan on ten ten Wins in New York. We're talking about Manhattan rents jumping to get another record.

Tom corns Anaho on ktr H in Houston. Expensive gasolene is keeping more drivers off the road. I'm Gina Servetti in for w w BBM in Chicago. I'm reporting that a new Fed Bank of Chicago survey shows the US economic outlook is worse today than it was at the depths of the pandemic. I'm Jeff Bullinger and on w I O D in Miami. I'm recording American Airlines will resume plates between Miami and five destinations in Cuba this fall.

I'm killin goll Bloomberg, Davey dishal Medio in London. We've been before to your market reaction to the latest political tumil in Italy as Mario Jogis government faces a confidence vote. ID Gorey on w w J in Detroit. I'm reboarding an analysts as second quarter results for most Anto companies

will probably miss the estimate. And those are some of the stories are twenty dred Bloomberg journalists and analysts are working on this morning around the world, and speaking of second quarter results, we are definitely waiting for those this morning from JP Morgan Chase and Morgan Stanley Is Bank earnings kickoff this morning. Bloomberg Radio and TV Markets correspondent Credi Gupta is with us with more on that. We're expecting pretty big moves. I would imagine creedy once those

numbers hit. We're facing some pretty big moves. Rummer. This is not just a stock specific story. This is a fundamental story for the entire economy. Now there's a couple of different layers. Here's in Nathan, bear with me as I as I passed through them, because at the very beginning, you do, of course have low lost provisions. How much are banks bracing for a recession, sing for some sort of losses or things like that. How much faith at the end of they do they have in that consumer.

Remember Jamie Diamond of JP Morgan has been very vocal in terms of the strength of the consumer, but did ultimately say that, well, a recession isn't off the table, So those are gonna be the kind of comments that we're gonna hear from him as well. Remember he did also this worn last month of an economic quote hurricane on the horizon. What that actually entails he was less specific about, but hopefully more details from the company itself. Though.

Remember we're not just watching low lost proposes, Russell watching trading revenue, Nathan. The market has tanked year to date, so that's gonna be a major one. How do some of these trading houses and some of their commodities units or their fixed income units actually tread water or perhaps make up for some of their other shortfalls? And things like investment banking deal volume has been very very low for example, So that's gonna be a big question, and

that's just JP Morgan. Then you got Morgan Stanley, was you then have to include their wealth management business and of course E trade as well. Yes, certainly will Bloomberg Radio TV Markets correspondent Pretty Gupta will be checking way back with you next hour on some of the other names moving in this pre market. As we watch, futures add to yesterday's losses, SMP futures down forty two points down, futures down three four, NASTAC futures are lower by one

hundred sixteen points. This is Bloomberg Bloomberg eleven three oh weather mix of sun and clouds today, showers and storms developing highs near ninety degrees will be in the UPR eight ees tomorrow and the next day, with partly the mostly sunny skies right now seventy two 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 Tape. He's a Bloomberg Business Flash and I'm

Karer a Moscow. You watch. Stock index futures are falling along with stocks in Europe. And the dollar resuming its advance after how US and Nation hard and expectations more aggressive federal reserve monetary tightening that could trigger our recession. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. SNP futures down forty one points down, features down three hundred nine, NASDAG futures down one hundred ten.

The decks in Germany is down six tenths of uppercent ten. Your Treasury down seven thirty seconds, yield two point nine six percent. They yield on the two year three point one nine percent. NIMEX screwed oil is down two point four percent on two dollars thirty four cents and ninety three dollars ninety six cents of barrel comics gold is down one point two percent on twenty one dollars forty cents.

At seventeen thirteen eighty announced, the euro one point zero zero three five against the dollar, British found one point one eight six four and the end one thirty eight point seven eight and Bitcoin this morning is higher, up six tenths per cent in nineteen thousand, seven hundred eighty dollars. That's a Bloomberg Business Flash. Now here's Michael Barr with more on what's going on around the world. Muchael, Thank you very much. Karen high states talks in the Middle

East during his first full day in Israel. Has then Biden and Prime Minister Lapide will hold a full joint briefing later today. A national wide curfew was in effect in Sri Lanka from last night till this morning after protesters surrounded and entered the Prime Minister's office in Colombo. Yesterday, the Prime Minister was made acting president after the former president stepped down. In baseball, the Yankees beat the Reds. The Mets beat the Braves. The Nationals lost both games

of a double header to the Mariners. The Orioles a k a. Super Dudes beat the Cobbs the win their tenth straight. The Giants stopped the Diamondbacks. Hey, he's lost to the Rangers. Global needs twenty four hours a day on here and on Bloomberg quick Say, powered by more than journalists and analysts more than a hundred twenty countries. And Michael bar this is Bloomberg. Naight, how about them? Ohs okay, Michael, thank you. It is nine on Wall

Street line from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak at the start of bank earning season. This morning, JP Morgan Chase and Morgan Stanley the first of the big Wall Street firms to open their second quarter. Bucks and Bloomberg Global Finance correspondent Shanali Bassik is back with us this morning for more on what to expect tionally. This is a really important one because we've already heard from JP Morgan Chase CEO Jamie Diamond. Of course that

economic hurricane quote we've all been talking about. Now we get actual numbers to see whether we're in that storm right now. Yeah, certainly, And he does take questions from media and analysts, and I'm sure he'll get many on what a potential one hundred basis point rate hike could mean for JP Morgan because on one hand, it's more in an interest income for the bank that is already

expected to start bringing in billions more. But on the other hand, it's happening because people are very worried about inflation and people are very worried about the economic future ahead. So are we going to start seeing provisions for loan losses, higher expectations for charge offs when we look at the credit book at JP Morgan and any potential hints of deteriorating credit quality, and you gotta fake in terms of credit as well, looking at the credit card business, the

health of the u U S consumer. JP Morgan obviously has a really big chase credit card business as well. Yeah, and you did see a slow down and lending last year when it came to credit cards. There was a real hope that that would start to tick up. But with the economic picture being where it is, and remember we reported JP Morgan is one of the first of the large banks to start to let people go in a very specific business. When it comes to the mortgage business,

there is a slowdown. So are we going to see more layoffs on Wall Street and Corporate America more largely? That will start to tighten the way consumers start to think about spending and borrowing. And that kind of goes as well to the sort of dichotomy when it comes to higher interest rates. Obviously it makes loans a lot less attractive for bank customers. But if you're a saver, maybe this is a good environment for you. Yeah, that's an interesting question. You see, for example, over at Goldman

sacks at the markets business. Those interest rates are now one point two percent. That is on the high or end of things that you're seeing here. And there are certainly analysts that are thinking, okay, maybe these deposit betas and the costs for the banks as they pay out higher interest will start to impact the banks too. And what are we thinking in terms of performance for the

trading desk, either for JP Morgan or Morgan Stanley. You have to think that they're going to be out performing given all the market volatility that we've seen over the last several months, especially JP Morgan because a lot of that volatility came in the rates, businesses and commodities, and JP Morgan is humongous when it comes to those businesses. Morgan Stanley is better known for equities. Typically, they are getting better it fixed income Traditionally they used to make

well under two billion. This quarter they're expected to make more than that. So the question will come down to market share gains for Morgan Stanley and maintaining that very competitive spot for JP Morgan. And how about in our last minute here Shannelli on the deal making investment banking side.

It's been tough out there for M and A and and that's a big one for both these banks as well, certainly, and you do see fees starting to come down drastically, especially when it comes to equity issuance, because there's been virtually no big I p O s and debt underwriting, where JAP and Morgan has traditionally in recent quarters at least biden more than a billion dollars. The business was so hot they are expected to bring in less than that.

Bloomberg Global Finance correspondent Snelly basket with us this morning ahead of JP Morgan Chase results. Were expecting those around seven am Wall Street Time, followed closely by Morgan Stanley at seven thirty. Of course, we will have full coverage for you throughout the day here on Bloomberg Radio Shinale. Thank you, Karen Nathan. It is from fifty two on Wall Street Time for the Bloomberg Law Report, 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 dr dot org. Let's get to the legal stories we're watching this Morning from Bloomberg's Jeff Bellinger. The Department of Health and Human Services has a warning for pharmacists. They can be charged with violating federal sex discrimination laws if

they refuse to fill prescriptions for miscarriage management. The National Labor Relations Board agreed to review a decision granting West Coast Port truckers the right to form a union. Amazon dot Com told Senator Red Markie that its ring unit has provided security camera recordings to law enforcement in a few emergency situations that did not require a user's permission. 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. Right, Jeff. Thanks. In another legal story, we're watching as the Georgia investigation into potential criminal interference in the election heats up, Prosecutors are trying to force allies and advisers of former President Donald Trump to come to Atlanta to testify before a special grand jury.

Republican Senator Lindsey Graham has vowed to fight the subpoena issued for his testimony, and now Georgia judge has ordered him to appear before the grand jury. Next month for Laura Bloomberg's June Grosso speaks to former federal prosecutor Jennifer Rogers, a lecturer at Columbia Law School. The judge said that Graham was a necessary and material witness to the grand jury probe. What else can Graham do to get out of this, Well, he's going to ultimately have to comply.

I suspect he can get more time if he wants more time. August is pretty close to now, so I'm sure if you can work something out with the timing. But this is a legitimate subpoena at Georgia. Judge has signed off. They have ways of getting cooperation from other states, so that in the worst case scenario playing in al for Lindsay Graham, if he absolutely refused to comply, he

could be arrested and brought to Georgia to testify. So he certainly doesn't want to trigger that happen name, so he is going to have to show up there the move to quash the subpoena. But this judge has already said that he finds, you know, he's been necessary witnessed, so that's out. So he's going to have to comply, is it? Just political that he doesn't want to show up because you know, we all know about the two calls he made to the Georgia Secretary of State Raffensburger.

Raefinsburger has already testified to the grand jury, and he's been told that he's a witness, he's not a subject or a target of the investigation. Yeah, I mean, I think there's a couple of things going on. One thing is in your own self interest. You want to make sure that you're not in jeopardy, So being told you're not a target is one thing. He might also actually be seeking technical immunity. He may want an actual order

of immunity, so his lawyer would be negotiating that. And then the political side, as you mentioned, I mean he's been a loyal Trump supporter. He doesn't want to be seen as going away from at right, and he still wants to be seen as a loyal Trump supporter. So I think that those things combined is why he's reluctant. But he probably knows he's going to have to do it. This is a little bit of show I'm resisting. I'm

not doing it. They have to come get me and then lo and behold in a couple of weeks areas in Georgia, Right, what he wants to give this kind of impression of still being on team Trump and he only has to go down there because he has absolutely no choice. Do you think it would look bad for a sitting senator to ask for immunity? I think it used to be that if you were a senator and you ask for immunity from criminal prosecution, everyone would be like,

that's so outrageous. You know that you think you did something that you need immunity for. Nowadays we have people asking for pardons. Right. It's kind of in a different world. And if there are a lot of criminal defense lawyers who, if they were representing Lindsey Graham, would say, thank you for your statement that he's not a target, but we want immunity. You know, that is what really protects your clients.

And as for Rogers of Columbia Law School speaking with Bloomberg's June Grosso, catch where that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast, are 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 again. Futures this morning are moving lower. SMP futures down thirty seven points down, futures

down two hundred eighty three and ASDAG futures down. The ten year Treasury down eight thirty seconds, held two point nine six per cent and still ahead. On Bloomberg Daybreak, we have a check on the business headlines and all the news you need to start your day. Am. This is Bloomberg