Bloomberg Daybreak: July 15, 2022 -Hour 2 (Radio)

rights measures. Plus Governor Hawkel allows millions of dollars to fight gun violence. On Michael bar More Ahead, I'm John Stash and sports easy win for the Mets, extra any loss for the Yankees, and they're playing the second round

of the Open Championship in Scotland. That's all trained ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg N one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine team and around the world on Bloomberg Radio dot com and via the Bloomberg Business App. Good morning, I'm Nathan Hagar, and I'm Karen, Moscow and US DOT Index futures are

rising this morning. We are coming up to five o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP future is up about ten points down, futures up sixty eight, and nasday futures up thirties six. The decks in Germany's up one point seven percent. Ten year treasury up ten thirty seconds, held two point nine two percent. They yield

on the two year three point one zero percent. Nine X screwed oil is up a quarter per cent, or twenty four cents at ninety six dollars two cents a barrel, and the euro one point zero zero three zero against the dollar. Nathan Karen, we begin this morning with economic news across the globe. Our first stop is Asia, where data show China's economic growth slowed sharply in the second quarter. Let's begin our team coverage with Bloomberg Daybreak Asia anchor

Brian Curtis in Hong Kong. It's the slowest pace since the pandemic began back in the economy actually contracted two point six percent quarter on quarter. It shows the price of China's dynamic zero COVID policies, but trends are improving. Retail sales recovered somewhat in June, gaining three point one percent year on year, industrial production of three point nine percent, mostly in line, and fixed asset investment jumping six point

one percent. That said, property prices fell for a tenth consecutive month, slipping zero point one percent from May in Hong Kong, Brand Curtis Bloomberg Day Break A right, Brian, thank you well. In Europe today, our focus is political turmoil in Italy. Prime Minister Mario drags offer to resign has been rejected by the country's president. That leaves the door open for a solution that would have Draggy leading the government until elections next year begin More from Bloomberg

Euro Area economist David Powell. The drama is probably going to be prolonged in the sense that even if we get beyond next week and is able to uh command to quit support in parliament, Italians have to go to the polls again before next June, and drug has already said he won't stand um. So this isn't going to be going away. Even if there is a kind of short term fix something we're gonna have to be watching

for quite a while. Plumbers David Powell says the chaos was triggered when the Five Star Movement, the second largest party, and Druggish Alliance boycott it a confidence vote in the Italian Senate. Well back here in the US care and the debate continues on whether the FED will high rates by seventy five basis points or one percent later this month. FED Governor Christopher Waller addressed the issue at an event yesterday in Idaho. I fully support another seventy five basis

for an increase. However, my base case for July depends on incoming data. We have important data releases on retail sales, housing inflation expectations coming in before the next meet. FED Governor Waller says economic ratings will be key, and there's more on the way today. The FED will be looking at two ratings in particular when it comes to setting policy, at least as a case for Cleveland FED President Lorettamester. There's more data coming out than I'm going to be

very attuned to. We have retail sales coming out and we have a very important University of Michigan report and of course that's important because it has placed Expectations measure UM, a consumer measure in there. And Cleveland Fed Presidentmester speaking with the Bloomberg We get the retail sales figure today at eight thirty am Well Street Time, followed by University

of Michigan Sentiment at ten oh. Let's turn from the economy and out of corporate earnings, Karen, because banks are front and center once again after yesterday's disappointing results from JP, Morgan Chase and Morgan Stanley. Bloomberg's Jeff Bellinger has more. The results from City Group and Wells Fargo will be the highlights this morning. Bloomberg Intelligence a City Group likely benefited from fixed income trading strength, but a slide in

banking fees may have offset the gains. Consumers were still generally healthy, and that should have helped city's credit card business. Wells Fargo is still dealing with the fallout of the saga that started in twenty sixteen. When the bank was fine for its sales practices. B I s, as well as Fargo's profit and returns, could move higher. The feds constraint on its balance sheet remains a key hurdle. Jeff

Bullinger Bloomberg Day Break, Right, Jeff, thank you. Meantime, banks are on the hook for a big bill from the government. Financial regulators are poised to extract a total of about one billion dollars in fines from the five biggest US investment banks. Have the story from Bloomberg's Doug Christener, it's the price for failing to monitor employee use of unauthorized

messaging apps for communications involving bank business. In its earnings report, Morgan Stanley said it expects to pay a two hundred million dollar fine that's identical to what JP Morgan Chase paid, and it appears to be the figure being used as a benchmark. We are told City Group, Goldman Sachs, and Bank of America are all in advanced talks with regulators and each may pay a similar amount. These discussions have not yet been concluded in the penalties could still change.

In New York On Christener Bloomberg Gay Break, Doug, Thanks, Let's turn to politics now, where foreign relations are in focus. It's an important day on President Biden's trip to the Middle East as he makes his way to Saudi Arabia Tonight, Bloomberg's and Marie Hordern is there and brings us the latest from Jedda. President Biden will be meeting with Palestinian Authority mood of Boss today before he had over to

Saudi Arabia. This is really going to be the pivotal moment of the trip and a controversial one, especially for many within the Democratic Party. President Biden is trying to bring the price of gasoline down and need the Kingdom's help to get more barrels on the market. But of course when he was campaigning, he had vowed to make the Kingdom of Briah his administrations, that he would only deal directly with the king, and now we know he'll

be meeting this evening with clown Frience. Mom had been Sammon in Jedda, Saudi Arabia and Marie Hordern Boomberg, Gay break and Marie thank you. Meantime, back in Washington, Senator Joe Mansion's delivered a huge blow the President Biden's economic a j and the Democrat told party leaders he would not support new spending on climate measures or tax increases. Mansion says he will back proposals on healthcare and drug prices. SMP futures right now up twelve point, Staff futures up

ninety three, nastack futures up forty three points. Straight ahead your latest local headlines in the check of sports. This is Bloomberg five oh seven on Wall Street, seventy four degrees in Central Park on an accident on the westbound l I E at the Grand Central Parkway. Details coming up in traffic. First Michael Barr with war on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. The New York City Council has taken

steps to expand abortion and reproductive care rights. The Council passed the package bills, including providing free abortion pills at clinics. The New York City Abortion Rights Act also allows people seeking abortions from out of state to safely do so. New York Governor Kathy Hokel talked about shootings during an event in Brooklyn. HOCl announced a new budget allowance of over twe million dollars to fight gun violence in the state.

HOCAL says it would invest in several things, including community outreach programs and crime labs investigating shooting statewide. We will continue devoting everything we have at our disposal to stop this crisis because we are seeing a difference. The governor's announcement comes one month after Hocal signed a new gun safety bill that banned carrying any firearms into sensitive places,

including schools and mass transit stations. The Buffalo supermarket that was the scene of a deadly mass shooting reopens today. There was some debate about possibly shuttering the Top supermarket, but this man who lives in the community says he's glad that it is reopening because it's the only grocery store the community has. We was excited about getting it in. Now um have that just taken away from us will be more devastations and you know than what we've already

been through. Yesterday, a federal grand jury and Buffalo returned to twenty seven count indictment charge Peyton Gendron with hate crimes the suspected shooter. Concern is growing about monkey poks in some health experts. About four cases have been identified in New York City. This week, the CDC announced several efforts to increase access to testing. White House Chief Medical Advisor Dr Anthony Founci told ABC the disease is easily treated,

but should not be ignored. There are vaccines that are available to prevent and respond to monkey parks. There are anti virals that are available, so we're not in the dark about this, although we really must take it seriously. Dr Fauci will be on Bloomberg later today at noon. Ivana Trump, the first wife of Donald Trump, has died in New York City. The police are investigating whether Ms Trump fell down the stairs at our Manhattan town house

on the Upper East Side. Ivana Trump was seventy three Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty dred journal list and analyist more than twenty countries. Michael Barne, this is Bloomberg, Nathan. Thank you, Michael. Coming up to five ten on Wall Street time for the Bloomberg Sports Update. Good morning, John Stash, Our morning, Nathan. Second Night in the Row or the Yankees and Red's played a game.

They went ten innings and finished seven six. Last night was won one. In the eighth inning, Cincinnati scored three off Jonathan low Issaca Yanks tie the game on Eighthenny home runs by Aaron Judge and Labor Torres. Reds then with three in the tenth off Lucas Littkey and the Yanks got two back. Matt Carpenter is eleventh oh run in just his sixty eight That fat for the reds held on won the series. Yanks have lost four the

last five. They host the Red Sox tonight. The Socks just got swept four straight at Tampa Bay at regularly easy win for the Mats eight nothing over the Cubs Carlos Carrasco and Trevor Williams. The combined shutout home runs for Brandon Nemo and Pete Alonso. Cameron Young is a twenty five year old golfer from Westchester. His father is the pro at the Sleepy Hollow Club. Young's first of a round at an Open Championship was an eight under

sixty four. At anytime you set foot on that first teen year eighteenth greener anywhere, especially on that kind of part of the course, UM, there's just no hiding how special of the place it is. Um. And it's certainly been a goal to get to an Open Championship. Pen for my first one to be here, um, it's a little bit extra special for me. Lead and today's second around, Tiger was on the course now brutal seventy eight yesterday,

only seven golfers at a higher score. The Utah Jazza All Star guard Donovan Mitchell is available in a trade that Knicks are interested, but reportedly the Jazz wanted and returned four players and six first round draft picks, and the Knicks signal John Stashar Bloomberg Sports Okay, John, Thanks. Right now, SMP Future is up fourteen points down, Futures up a nastac features up forty eight points now. The tenure Treasury is up seven thirty seconds yield two point

nine down. The two year three point one one. This is Bloomberg Bloomberg eleven three oh weather. Sunshine in a high near eighty five today and tomorrow. Could see some late afternoon showers and storms by Sunday, with higher ninety by then. Right now seventy four degrees 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 is a Bloomberg Business Flash, and I'm Karen Moscow.

Stocks in Europe are gaining. US stock Index Future is edging higher, and bonds advancing at the end of a week in which markets have been whipp sawed by shifting expectations for monetary tightening by the Federal Reserve and worries over global economic growth. We check the markets every fifteen minutes throughout the trading day on Bloomberg U S and P futures up about twelve points down futures of eighty eight Nasty futures have thirty eight the decks in Germany's

at one point seven percent. Ten year treasury have eight thirty seconds held two point nine two percent. The yield on the two year three point one zero percent NIMEX screwed oil is a three tens per cent or twenty nine cents and ninety six dollars seven cents a barrel call max school down to tens per cent or three dollars ten cents at seventeen o two seventy announce the euro one point zero zero three nine against the dollar British pound one point one eight four three and the

end at one thirty eight point seven six. Looking at Bitcoin this morning, I've wanted a third percent is at twenty thousand, nine hundred forty six dollars. That's a Bloomberg business flash now here's Michael Barr with more on what's going on around the world. Michael, good morning, Good morning, Karen. President Joe Biden will announce three hundred sixteen million dollars in USA for the Palestinians today as he seeks to revive US ties with the Palestinian authority. Hospital visit and

a meeting with the authorities President mak Mudabas. Biden will later travel to Saudi Arabia. Ukrainian officials say rush and missiles that struck a city in central Ukraine killed at least twenty three people and wounded more than a hundred others, including children. Dozens are missing. In baseball, the Yankees lost to the Royals, the Mets beat the Cubs. The Red Sox lost to the Raise, the Nationals lost to the Braves,

the Giants lost to the Brewers. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalists analyst more than twenty countries. Michael Barr and this is Bloomberg. Nathan. All right, Michael, thank you. It is five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak with a lot of economic and political news for investors to digest on this Friday morning. So let's bring in

Simon French to talk more about it all. Chief economists at PAM your Gordon, Simon, It's great to speak with you. Let's start off with the latest economic data we got out of China showing a pretty big slow down in growth, in fact, the slowest since the pandemic began. Is this much of a surprise given all the lockdowns the China has been imposing on its citizens over the last several months. Good morning, Nathan, Yes, it was a it's surprise markets

the scale of the slowdown. So two point six percent quarterly contraction in Q two take the annual rate down to almost EREI. It's more point four percent year on year. Now, the if you like, the bright spot for the global economy is not is the fact that this is mainly domestic activity because of social distancing associated with the ongoing

zero COVID policy. And actually there are, if you like, encouraging signs on the industrial output side, which was pretty steady it around just under four percent year on year. That the pass through to global trade volumes is going to be less affected than some of the consumer service as side on the Chinese economy, so you don't see as much of a risk of spillover, perhaps as the markets might give in all those lockdowns and supply chain

issues that have been associated with those lockdowns in China. Um. I think it's a very different set of circumstances to previous lockdowns, because, of course the global economy had huge demand because of its synchronous lockdowns and pivot towards consumer durables consumer good demand, it was putting huge strain on supply chains during the early phase the pandemic. You have to say now that demand picture, particularly from US consumers, is a far lower than it was back in those

early iterations. So I think that therefore the spillover in global supply chains will be commensurately less acute. And I think that is one of the reasons why despite this data which won't do any favors for global GDP growth, I think it's been quite readily absorbed by investors without too much indigestion. When I turn to the political situation in Italy, as if the Eurozone weren't dealing with enough, given the problems with the more in Ukraine and the supply,

the supply of energy there. Now we have this political situation where Mario drag tried to resign as prime minister. Now he's trying to keep a government together. Where do you see this going Simon? Yes, So it's important first and foremost to say that Mario drag has been a prime ministers in February one is the sixth prime minister that Italy have had in a decade. So political turbulence is not unusual, not neither in the last decade or

in the last seventy five years in Italy. So I don't think investors are going to look at that aspect as being particularly worrisome. It's more ahead of next week's European Central Bank meeting, where they're going to almost certainly deliver the first interest rate increase in eleven years. But also to say more about the anti fragmentation policy, which is to try and stop spreads of peripheral countries like Italy from blowing out versus the spreads of German buns.

And of course Italian political backdrop is an uncomfortable one to you know, backdrop to that meeting, because what pressure is going to be born to brought on Christian the Guard to say, well, if the Italian political situation changes, does that change your readiness to intervene and buy a disproportioned amount of Italian death. That's the uncertainty of the market.

And then our last minute here Simon, ahead of that ECV decision, of course, the debate continues here in the US over whether we're going to see a seventy five or one hundred basis point rate HIG from the Fed later on this month. How do you think Chris Waller did to try to potentially tamp down that speculation of a super supersize rate high. I think he did a

good job. I think the market is very sensitive, isn't it at the moment to the idea that the Federal Reserve may, through a variety of communication vehicles, push out and outside the increased like they did with fifty million bits uh the last rate decision. I think the bits was a little bit of an overinterpretation of the heat in the CPI prints. I think fm C chat suggest

it's still the key expectation. It's certainly my expectation, but it's more the path, isn't it's the residual three meetings in twenty twenty two, which I think markets are more sens to two and then certainly to see whether these rate hikes actually do have an impact on forty plus year inflation. Thanks for this, Simon, great having you on with us. Simon French, chief economist at PAN. Mr Gordon.

Right now, SMP futures are up eight points, STAFF futures up sixty two and NASAC futures are higher by twenty four points ten. Your treasury is up nine thirty seconds. The yield two point nine two percent, yield on the two year right now three point one zero percent, nime ex screwdes hire a bit by two tenths per center, twenty cents ninety cents a barrel. The euro right now one point zero zero three eight against the dollar. You're

listening to Bomberg Daybreak on this Friday morning. Bloomberg eleven three oh weather, sunshine mid eighties today and tomorrow mix of sun and cloud Sunday could see some late afternoon

showers and storms. Trend the weekend going up near ninety degrees right now seventy four in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg e Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine six to the country, Sirius XM to the one nine team, and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak, five thirty on Wall Street.

Good morning, I'm Nathan Hagar and I'm Karen Moscow. We're just about four hours away from the open of US trading. Let's get you up to day to the news you need to know at this hour. We begin in shine Over. The economy grew just four tens of uppers and last quarter that's the slowest patients has started the pandemic. But Bloomberg macro strategist Mark Hudmore says it's not the g

d P miss that worries him. The data, I think at the moment is first of all, a little bit backward looking, and there's a bit of a dynamic here where we're kind of going, Hey, bad news is good news for markets because it means more policy eason to come through. The data this morning did not worry me. But the property sector story is getting worse at a quicker rate than I think many of us anticipated a

month or two ago. The credit problems are spreading beyond the property sector into the banking sector, and that is a concern for China, and Bloomberg's Mark Hudmore says it'll be important to see how China performs in their second half of the year. In Europe, care and Italian Prime Minister Mario drags offered to resign has been rejected by

the country's president. Bloomberg Shia Albanesi says if Droggy leaves government, it will negatively affect markets that he had started on a very ambitious pop of reforms to free up the market, to beat up competition, to change up the justice system, to cut rect tape. These is all on the question if he walks away. Bloomberg. Albanesi in Rome says concerns over energy and inflation could hamper Italy's economy later this year.

Back here in the US, Nathan, the debate continues over whether the federal hike rates by seventy five basis points or one percent later this month. Coming up today, we get more economic data for the Central Bank to digest du in retail sales will be released around eight thirty am Wall Street Time, followed by University of Michigan Sentiment at ten. And banks are in focus again today, Karen. After yesterday's disappointing results from JP Morgan, Chase and Morgan Stanley,

we get more from Bloomberg Shinali Bassek. More worries about the U S consumer started to rise after JP Morgan started reporting provisions for loan losses. The bank also said that charge draws were starting to slowly rise. City Group and Walls Fargo will also give another glimpse into the consumer when they report earnings on Friday. M Shnali Bassek Bloomberg Daybreak aarent Sinali thanks and those reports and do out this morning from Wells Fargo at seven am Wall

Street Time, followed by City Group at eight. At the same time, Nathan bakes around the hook for big bill from the government. Financial regulators are poised to extract about one billion dollars and fives from the fine biggest US investment banks. That's her failing to monitor employee use of unauthorized messaging apps for bank communications. And in politics today, Karen,

President Biden visits Saudi Arabia. Sources tell Bloomberg the President will leave his Middle Eastern trip with no public announcements on increasing oil supply. Futures this morning are higher. SNP futures up about eleven points down futures up eighty five, nastday futures up thirty two straight and hand your latest local headlines plus a check of sports. And this is Bloomberg.

Thanks Karen. Three on Wall Street, seventy three degrees in Central Park, dealing with thirty minute delays on the upper level of the George Washington Bridge. This is the morning to go downstairs. I'll tell you why in traffic in a few minutes. First, Michael Barr is here with more on what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York Governor Kathy Hokel talked about shootings during an event

in Brooklyn. Hocal announced a new budget allowance of over twenty million dollars to find gun violence in the state. Vocal says it would invest in several things, including community outreach programs and crime labs investigating shooting state wide. We have a gun violence epidemic here in the state of New York full stop as a statement effect. The governor's announcement comes one month after Hocal signed a new gun safety bill that banned carrying any firearms into sensitive places,

including schools and mass transit stations. A federal grand jury in Buffalo returned to twenty seven account indictment charging the suspected gunmen in the Tops supermarket shooting with hate crimes. Meanwhile, today Tops is set to reopen. There was some debate about possibly shuttering the supermarket, but this man who lives in the community, tells ABC that he's glad that Tops is reopening because it is the only grocery store the

community has. At first, I said to myself, well, maybe they should just put those are out, you know, closed, and make a make a momre you out of it. And then I thought about it again. You know, how long would it take was to get a new Tops. The suspected gunman, Peyton Gendern, is accused of shooting thirteen people, killing ten inside the supermarket, which prosecutors say he targeted

because he wanted to kill black people. The New York City Council has taken steps to expand abortion and reproductive care rights. The Council passed a package of bills, including providing free abortion pills at clinics. The January six Committee says secret service text made as the assault on the Capitol unfolded are missing. Bloomberg's said Baxter as the Story. Committee chair Bennie Thompson says they have been deleted or erased.

He says they are important because they could shed some light on Donald Trump's movements leading up to and during the insurrection. Thompson says, if there's any way that they can be reconstructed, they will do it. Remember the testimony from aid Cassidy Hutchinson, who said that Trump wanted to join the marchers of the Capital but was blocked by security. Well. Thompson says they could also shed light on Trump's activities regarding Vice President Mike Pence in San Francisco. I'm at

Baxter Bloomberg Daybreak. Ivana Trump, the first wife to Donald Trump, has died at her home in Manhattan. Havannah Trump was seventy three Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty seven hundred journalists and analysts, and more than one hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan. Okay, Michael, thank you. HiT's five thirty six on Wall Street. Time

for the Bloomberg Sports Update. Here's John Sanshaw. All right, Nathan.

Great night for the Mets. Not only there eight nothing went over the Cubs at regularly strung pitching from Carlos Carrasco granted Nimo three hits with the home run Pete alonzo is twenty four homer, Edward Ostibar and Patrick Mzek with two run singles, but also sellout crowd in Syracuse to see Jacob de Ground faced Triple A batterers, but the first time four and Anzy did not allow on earn Ron gave up just two hits, struck out four third straight rehab start where de Graham hit a hundred

on the gun, and all indications are he will make his highly anticipated season debut for the Mets. Sometime after the All Star Break, Yankees and Red's had a pictures duel at the stadium. The game still ended up seven to six. It was one one in the eighth inning Ester Cortez against Luis Castillo in the Battle of All Stars Cincinnati, where three runs of the eighth inning off Jonathan Loaisa, just back from injury, and then three more in the tenth off Lucas Litkey. Joey Vado had big

hits in both rallies. The Reds won seven, six and ten Yankee home runs in defeat for Aaron Judge his thirty first. Also Glaver Torres and Matt Carpenter. Yanks host the Red Sox tonight. Socks just lost four straight at Tampa Bay. Seattle Maritors one again last night. That's eleven wins in a row for them. They're playing the second round of the Open Championship at St. Andrews. Taylor Gooch has moved into a tie for second with Rory McElroy

at six under. The leader at eight under remains Cameron Young. Westchester native went to high school at Fordham Up in the Bronx, he shot sixty four. They'll see off today about eight thirty Eastern. Reportedly, the Knicks have rejected a trade offer from the Utah Jazz Donovan Mitchell for four players and six first round draft picks. John Dashwork Bloomberg Sports, thanks Sean seven on Wall Street Time now for the

Tri State Business report. Here's Bloomberg's Ed Corey. After a victory in an Amazon warehouse in New York this year, the Amazon labor union vowed to unionize three more company facilities nearby, but things have not gone according to plan. The group lost an election at a warehouse across the street from the first and has paused efforts to organize

the other two. Monsio Ortega, billionaire founder of the Tzara clothing chain, has agreed to buy New York's nineteen Dutch apartment building or Tega's holding firm will pay about five hundred million dollars, according to details published by the Real Deal and confirmed by a spokesperson for Ortega. The building was sold by Carmel Partners. New York City Mayor Eric Adams has unveiled to plan to draw are writers to

NYC Ferry, effective in September. Adams NYC Ferry Forward plan will let at least a million low income New Yorkers, seniors and people with disabilities to ride one way for a buck. Thirty five. That's your Bloomberg Dry State Business Report. I'm Ed Corey. Thanks At five thirty eight 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 Potaskan on Tension Wins in New York. We're talking about how unauthorized texting will cost Wall Street Banks a billion dollars five um. Courney Donahe on kt r H in Houston. The number of homes for sale rises for the first time in three years. I'm Jinas Servetti in for w c c O in Minneapolis. Were digging

into earnings from United Hill. I'm Stephen Carol on Bloomberg DAB Digital Radio in London. We've been looking ahead to the first TV debate for into its to replace Baris Johnson as Prime Minister. My mid Corey on w w J and Detroit, I'm reporting General motors, self driving startup cruise, is faith that increased scrutiny. And those are some of the stories our twenty hundred Bloomberg journalist and analysts are working on this morning around the world. And here's another one.

Meta Platforms is going to start letting more users create multiple profiles within their Facebook accounts. We get that story from Bloomberg's Charlie Pellett. It's the company's latest attempt to encourage posting and sharing on its social network. As part of a test, certain Facebook members will be able to create as many as four additional profiles, and each one will not need to include a person's real name or identity. Users could have one for friends and another for coworkers,

for example, each with its own feed. Meta is stepping up efforts to drive engagement on the world's biggest social network, which has seen growth slow, especially among younger users. In New York, Arlie Pellet Bloomberg day break. Okay, Charlie, thank you right now. SMP futures are up ten points down futures up seventy six. Dance Act futures are higher by thirty five points the ten Your treasury is up seven thirty seconds yield two point nine three yield on the

two year, three point one one. This is Bloomberg. Bloomberg eleven three oh weather, sunshine in the high and your eighty five degrees today and tomorrow. We'll call it a mix of sun and clouds for Sunday with some late afternoon showers and storms developing highsteer ninety degrees right now seventy three in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quicktake, this is a

Bloomberg Business lash, But I'm Karen Moscow. Stocks in your upper gaining, US Knock Index futures edging higher, and Vaughn's advancing at the end of a week in which markets have been whipped on by shifting expectations for monetary tightening by the Federal Reserve and worries over global economic growth.

If we checked the markets every fifteen minutes throughout the trading day, on Bloomberg s and P futures up about nine points now, Future is up sixty four NAS day futures up about twenty seven The decks in Germany's up

one and a half percent. The ten year treasury of five thirty seconds held two point nine three percent yield on the two year three point one two percent nine makes screwed oil is up a third of Upper Center thirty one cents at ninety six dollars nine cents of barrel coll make school down three ten percent or five dollars thirty cents at one thousand, seven hundred dollars fifty cents announced, the euro one point zero zero four four against the dollar, British found one point one eight three

five and the yen one thirty eight point eight zero bitcoins higher, up about one percent at twenty thousand, eight hundred to 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. Before leaving for Saudi Arabia for the much anticipated second leg of his Middle East tour, President Biden visited the West Bank and East Jerusalem. Today, the President visited a hospital and

praised nurses for the work they do. The Secret Services again in the cross areas of the Congressional Committee looking into the Capitol Hill riot and Internal Watchdogs, says the agency that protects the president deleted messages from January five and sixth of last year. In baseball, the Yankees lost to the Royals, the Mets beat the Cubs, the Red Sox lost to the Raise, the Nationals lost to the Braves,

the Giants lost to the Brewers. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts more than one countries. Michael Barr and this is Bloomberg nath Al Right, Michael, thank you for coming up to forty nine on Wall Street Live from the Bloomberg Interacted Brooker Studios. This is Bloomberg Daybreak. As we continue to watch the parade of bank earnings for the second quarter, We've heard from JP

Morgan Chase, and Morgan Stanley. Up next this morning, Wells Fargo and City Group. So let's bring in Bloomberg Global Finance correspondent Shanali Bassk as we wait for these numbers. Shanali, good morning. Before we get to what's to come, I wonder what you made of the comments we heard yesterday from the CEOs of JPM and Morgan Stanley about sort of the resiliency of the U S consumer despite the

pretty disappointing numbers we got from both those banks yesterday. Yeah, they did try to strike a real note of confidence here because for JP Morgan, what they were saying is spending is holding up discretionary and non discretionary spending in the face of extreme inflation. But at Morgan Stanley you're hearing James Gorman, the CEO, say, while he expects the recession, he doesn't expect it to be deep or drastic. So that is the small bright spot, I suppose, and kind

of the preparing for the tougher times ahead. Yeah, so that sets us up for what we could see from Wells Fargo in City Group today. Let's start off with Wells. They have a pretty big mortgage business. I mean, that could be tricky given where rates are right now. It sure can, and you have to wonder whether that's kind of the worst of it. They've already described a significant drop off in mortgage income given that rise and interest rates and you know, the less demand of consumers to

really take out a mortgage right now. But are there other issues? Are they going to face higher charge offs? We started seeing charge offs rise over at JP Morgan, so are they going to rise more than expects it over at Wells Fargo too? I wonder if we're gonna see more money as well. Set aside for the possibility of loan losses here given where rates are I mean Morgan Standard, Sorry, Wells Fargo and City Group could both

be looking potentially to to do more set asides. Yeah, and that's I think the pivotal question here when you look at Wall Street's expectations, Really the provisioning lies in the hundreds of millions of dollars. It's nothing too crazy, but it is a reversal. Remember, people were not necessarily provisioning for souring loans. They were actually doing the opposite for the last couple of quarters because of reduced in

certainty around COVID. But now we might return to an era where people are starting to get cautious again and the outlook for lending moving forward is going to be equally important in terms of caution. What about the credit card business for City Group, We've heard from JP Morgan, they said that consumers are spending more on credit cards.

It's a sign of resiliency. But you have to wonder, I mean, if people are spending more money on credit cards, what that says about the fragility potentially of the consumer economy. That is the big fear. What are they buying on those credit cards? Are they buying a trip that they haven't been able to take in a while, or are they paying for their groceries that way? That all the color around that, the safety and the soundness of the consumer. We're going to want to hear that not just from

City Group, but on Bank of America on Monday. On City Groups front, they are also huge their international and a lot of the troubles abroad are a lot more drastic than what you see in the United States. So that global picture is also important when you think about City Group. Only about thirty seconds left here, Snelle, But I wonder if we're going to hear more from some of these other banks about what we heard from Morgan Stanley yesterday about getting fined big time for these unauthorized

messaging apps. Yeah, it's certainly possible. Two million dollars worth of fines. We saw it out for a JP Morgan, we saw more than Stanley getting ready for it. City Group is another one to watch for a Goleman on Monday in Bank of America on Monday, thanks for the sale. Good having you on as we wait for those numbers from Wells Fargo right around seven am Wall Street time, followed by City Group at eight am. As we continue

following bank earnings for the second quarter. Of course, we will have full coverage for you throughout the day here on Bloomberg Radio. Karen, all right, Nathan, it is tally fifty three on Wall Street. Time for our Bloomberg Law Report, brought to you buy American Arbitration Association. Business disputes are inevitable resolved faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a d R dot org. Let's get to the

legal stories we're watching this morning. From Bloomberg's Jeff Bellinger, more than thirty House and Senate members told the Environmental Protection Agency they have concerns over chemical recycling technology contributing to the climate crisis. A suit against Tesla will remain in federal court. A man claims Tesla's autopilot system caused an accident that resulted in his wife's death. The plaintiff sought to have the suit moved to a California state court.

BOSHA is considering increased penalties against construction companies that ignore safety requirements. Twenty two workers have died in trench collapses so far this year. 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, thanks know another legal story we're watching.

Twitter is suing Elon Musk over his abandoned forty four billion dollar takeover bid, accusing the billionaire of having buyer's remorse after his fortune declined. The merger agreement includes a specific performance provision that allows Twitter to force must to consummate the deal. And that is just what Twitter is asking the Delaware courts to do. For more Bloomberg's doing, Gross speaks to Eric Talley, a professor at Columbia Law School.

Delaware courts, including this judge, have granted specific performance before. Matthew Shettenhelm, a litigation analyst for Bloomberg Intelligence, gives Twitter a sixty chance to win specific performance. What do you think the chances are? I think the chances are at least that And I would say that the types of situations that could do rails specific performance I think are fairly remote here. The one issue that could cloud things up a little bit is how does that injunction get administered?

Even when a core is inclined to issue a specific performance decree, it doesn't necessarily want to sign itself up for a year's long babysitting service of the parties themselves to try to superintend and oversee the process of closing the deal. And so that can sometimes be a reason

not to grant specific performance. And you know, in this instance, it's conceivable that a judge might say, well, you know, boy, if I compel performance, do I then have to be the person who then wrangles all the banks into court and tells them that they have to lend on this deal. Maybe maybe not, Gentle McCormick didn't even bother doing that. In the other case, you just said you gotta go out and get your financing. So that's one potential obstacle.

There's been some speculation that must might just ignore an order for specific performance. I doubt that that is going to happen. It would be absolutely on a fraud to this reputational stake that the Delaware Chords have in being

serious about enforcing contracts. And because Musk owns so many assets that are within the jurisdiction of Delaware, largely in the form of stock of other companies that he owns that are Delaware companies, it would be not terribly hard for Chancellor McCormick to say Okay, Look, if you don't want to comply with that, then we will start a civil contempt proceeding and I can fashion any remedy I want, including the seizure of your stock of other companies that

you might own. Now, that is definitely the nuclear option, but I think most people understand that nuclear option is there, hardly ever gets used because most people basically believe the Delaware Chancery Corps. So, you know, I think that there are some folks who are kind of discounting the likelihood of specific performance because they just think Musk is gonna ignore a specific performance decree. I don't really share that concerns.

I think that if the decree comes forward, he's going to comply I with it, and it'll be pretty clear that it's going to be in his best interest to comply with it. Aszeri Talley, a professor at Columbia Law School, speaking with the Bloomberg June Grosso. Catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law Podcast or downloading this 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. Headlines crossing the Bloomberg. We're hearing from United Health. Second quarter profit beating analysts estimated, also boosted its forecast for the year, while Black ross assets under management were lower than analysts were looking for. And straight ahead, we have our tough stories. This is Bloomberg