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

approves abortion rights measures. Plus Governor hokel allows millions of dollars to fight gun violence. I'm Michael bar more than head, I'm John Stage Down 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 trended ahead on Bloomberg Daybreak on Bloomberg Eliven Free on New York, Bloomberg one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine sixties and Francisco Syrius XM one nineteen and around the world on Bloomberg Radio dot Com and the Bloomberg Business app. Good morning, I'm Nathan Hagar and I'm Karen mostal u s stock index futures

are higher this morning. We are coming up to six o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP Future is up six points this morning. Down Future is up seventy two and Nastack Future is up fourteen. The decks in Germany's up one point four percent. Can your treasury up six thirty seconds? Here'll two point nine three percent.

They yield on the two year three point one two percent, and non max Screwede oil is little change at ninety three cents of barrel, the euro one point zero zero three nine against the dollar. Nathan, Thank you, 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 this morning with Bloomberg day Break Asia anchor Brian

Curtis in Hong Kong. It's the slowest pace since the pandemic began back in twenty The economy actually contracted two point six percent quarter on quarter. It chose 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 up 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. Brian Curtis Sploomberg Day Break. All right, Brian, thank you. 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 Dragging leading the government until elections next year begin More from a 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 Drug is able to uh command adequate support in Parliament, Italians have to go to the polls the end before next June, and Drug authorready 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 it's something we're gonna have to be

watching for quite a while. Bloomer's David Powell says the chaos was triggered when a five star movement, the second largest party and drugs Alliance boycotted a confidence vote in the Italian Senate. Back here in the U. S care and the debate continues on whether the Federal Reserve 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 point 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 meeting. FED Governor Waller says economic ratings will be key, and there's more on the way today. The FED will be looking to two ratings in particular when it comes to setting police, at least as the case for Cleveland FED President the Redemester. There's more data coming out that

I'm going to be very attuned to. We have retail sales coming out, and we have very important University of Michigan report, and of course that's important because it has them placed Expectations measure UM, a consumer measure in there. And Cleveland Fed President Master spoke with Bloomberg. We get the retail sales figure today at eight thirty am Wall

Street Time, followed by University of Michigan sentiment at ten. Okay, let's turn from the economy now to corporate earnings, Karen, because banks are front and center again today 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 games. Consumers were still generally healthy and that should have helped cities 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 Vargo's profit and returns could

move higher. The Fed's constraint on its balance sheet remains a key hurdle, Jeff Bullinger Bloomberg Day brink 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. Be the story from Bloomberg's Doug Prisoner. 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 Duck Prisoner Bloomberg Daybreak, Doug, thank you. Let's turn to politics now, where foreign relations are in focus. This is an important day on President Biden's agenda in the Middle East. He makes his way to Saudi Arabia, tonight and Bloomberg's and Marie Hordern is there. She brings us the latest from Jedda. President Biden will be meeting with Palestinian Authority Mahmood of Boss today before he had over

to the 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. He 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 Maria his administrations, that he would only deal directly with the king, and now we

know he'll be meeting this evening with Crown Prince. Mom had been summons in Jedda, Saudi Arabia and Marie Hordern Boomberg, Gabrie sor right, Marie, thank you. Meantime, back in Washington, Senator Joe Manshin has delivered a huge blow to President Biden's economic agenda. The Democrat told party leaders he would not support new spending on climate measures or tax increases. Manson says he will back proposals on healthcare and drug prices, and again futures are on the rise this morning, and

a straight ahead. We have a check of your local headlines, plus a check of sports, and this is Bloomberg. Thanks Karen. Six oh seven on Wall Street, seventy two degrees in Central Park. We've got a tractor trailer fire at the southbound eastern spur the New Jersey Turnpike. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Come morning, Michael, Good morning, Nathan. The New York City Council has taken

steps to expand abortion and reproductive care rides. The council passed 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. Hocal announced a new budget allowance of over twenty million dollars to find gun violence in the state. Hocal says it would invest in several things, including 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. Last month, Governor 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 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 then what we've already been through. Yesterday at federal grand jury and Buffalo returned to twenty seven account indictment charging Peyton Gendren

with hate crimes. He's accused of shooting thirteen people, killing ten inside the supermarket. Prosecuted to say he targeted them because he wanted to kill black people. Concern is growing about monkey poks among some health experts. About four hundred cases have been identified in New York City alone. This week, the CDC announced several efforts to increase access to testing. White House Chief Medical Advisor, Dr Anthony Faunci told a d C the disease is easily treated but should not

be ignored. There are vaccines that are available to prevent and respond to monkey poks. 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.

Ivana Trump was seventy three Global News twenty four hours a day on air and on Bloomberg Quicksac, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. Thanks Michael. Coming up to six ten on Wall Street on Stanshower has the Bloomberg Sports all right, Nathan. Second night in the rowhere the Yankees and Reds played a game. They won ten innings and finished seven to six. Last

night was one to one. In the eighth innings, Sincinnati scored three off Jonathan Loaisiga. Yanks tied the game on eighthenning home runs by Aaron Judge and Glabor Torres Reds then with three in the tenth off Lucas Litkey. Yanks got two back Matt Carpenter's eleventh home run, but the Reds held on and they won the series. Yanks and lost four the last five. They host the Red Sox tonight and regularly easy win for the Mats eight nothing

over the Cubs Carlos Carrasco and Trevor Williams. The combined shutout home runs for Brandon Nimbo and Pete Alonzo. Cameron Youngs a twenty five year old golfer from Westchester. His father is the pro with the Sleepy Hollow Club, and Young's first ever round in an Open Championship was at eight under sixty four at St. Andrews. Anytime fot 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 the place it is. UM. And it's certainly been a goal to get to an Open Championship, and for my first one to be here, UM is a little bit extra special. Home still's got a two shot lead in today's second round. Dustin Johnson and Taylor Goops have moved to six under, tied for second with Rory McElroy. Tiger Woods is on the course. He's six over, had that seventy eight yesterday only seven Dolphers had a higher store Utah Jazz say all start guard Donovan Mitchell

is available in the trade. The Knicks are interested, but reportedly the Jazz wanted in return four players and six first round picks, and the Knicks said no. John Sta actually wear Bloomberg Sports Nathan John Thank you. SMP features up six point, Staff Features up seventy nine, NaSTA features up fifteen points. Nimex crudes up a tenth per cent nine two cents of barrel as President Biden sets his sights on Saudi Arabia tonight, which check in with Bloomberg's

use of Kamal l Dean next in Jetta. This is Bloomberg Bloomberg eleven three oh weather. Sunshine in the city today going up to near eighty five degrees eighty five for high tomorrow as well, could it ninety by Sunday with a chance of late afternoon showers and storms. Right now seventy two degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business out and at Bloomberg Quick Tape is a Bloomberg

Business Flash. And I'm Karen Moscow and we are watching Earning's crossing the Bloomberg this morning. United Health Group racing it's full Your Profit outlook as expanded enrollment in the health insurers plans helped it beat Wall Street analysts forecast for the second quarter, and IT shares are up one percent in early trading. Black Rock clients slow the amount of money they poured into the firm's long term funds

as markets cratered and inflation searched. Net inflows for the most products total sixty nine billion dollars for the three months ending Junet, forty billion dollars less than analysts were looking for. We hear from Most Fargo and City Group later today, among others. US DOT index futures are higher right now, the dollars surge stalling at the end of a week in which markets have been whipsawed by shifting expectations for a 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 s ANDP futures a five points at DOW futures of seventy two NASDAG futures up twelve the decks in Germany's at one point four percent, the ten year treasury up seven thirty seconds, yild two point nine three percent. They yield on the

two year three point one two per cent. Nine max screwed oil is up two tens per cent er nineteen cents at ninety five dollars, ninety seven cents of barrel comex schooled down four ten percent or six dollars sixty cents at sixteen twenty announced the Euro one point zero zero three eight against the dollar, British pound one point one eight two nine, the end one thirty eight point six nine, and look at a big coin of nine tenths for said at twenty eight hundred fifty dollars. That's

a Bloomberg business flash. Now here's Michael Barrow with more on what's going on around the world. Michael Karen, thank you very much. 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. He visited a hospital and then he will meet with the authorities President mak Muda bas Biden will later travel

to Saudi Arabia. Ukrainian officials say Russian missiles that struck a city in central Ukraine killed at least twenty three people and wounded more than one 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 Brewers Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analyst more than one hundred twenty countries. Michael Barr and this is Bloomberg. Nathan, all right, Michael, thank you for coming up to six twenty on Wall

Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and what we expect will be a pivotal day for President Biden is his tripped through the Middle East continues. Tonight, the President heads to Saudi Arabia for that much anticipated face to face with the Crown Prince Mohammed been Salmon. Let's go live to Jetta down check in ahead of that with Bloomberg's Yusef Kamal l Dean Yusuf. Great to speak with you this morning. We've already gotten

some news ahead of President Biden's arrival your way. No announcement expected on increased oil supply. That probably would have been bigger news if we actually did get an announcement like that, right absolutely. I mean, this is the first visit by a US president to Saudi Arabia in the month of July, and there's a very good reason for that. It is hot, it is sticky, and this is not the right time of year to be going to the kingdom.

And it shows you how important this trip is for the U S side to at least reset the conversation in some form or another. There's no doubt that it's a little bit awkward, given that the administration's played the human rights carl can Pain trail. Now they have to manage it. Are they gonna shake hands with the Saudi Crown Prince and the bilaterals later this afternoon? The Crownference has denied ordering the killing, but he has taken responsibility for it, and it's gonna build on what you just

said about the crude oil. Look, the Saudis are already almost at Max's capacity. RBC Capital talk about a soft seeming of eleven point five million barrels per day. The target for August for the Saudis is just a little bit above eleven. Together with the u E looking at spirit capacity about three million barrels per day. Point being

is that spirit capacity before the world. That's not spirit capacity for a visit from the US president and they've got a safeguard this for potential turmoil down the line. They can't tap this today. Well, what potential gains, if any could the president see When it comes to the energy picture, yusef, is there a possibility that the president might be looking to drive something of a wedge between

Saudi Arabia and Russia? For sure, Yes, definitely. It is a way to try and get the saaludiast to steer OPEC plus to be as accommodating as they can be, and so the way rapid and energy they described it in a note this morning, they could get a generic pledge to do what they can to keep the powder drying kind of thing but at the same time it's also to get the Russians to be on guard because the reality is here in the Middle East, and one of the conversations I've had over the last six months,

there is a sense that this part of the world has not featured very highly in the current administration's agenda, and so this trip is at least away and we've seen this with the meetings with you know, with some of the other factions over the last twenty four hours

in Palestine. Basically this comes to be the more more priority. Still, Saudi Arabia is the only stop actually in the Arab world, and the Saalies are selling this as kind of you know, look at us, We're really important, and we manner to a global economy that's struggling for oil barrels. As you mentioned, use if the human rights issue is going to be a major focus as well. The President has been asked about this whether he's going to directly bring up the

Jamal ka show Ji's murder. He says he wants to project American values, but it seems like he's kind of hedging a little bit when it comes to being really direct with NBS. Yeah, this has been a very difficult one to to navigate for the White House and for the saudiast I mean, it is important for this leadership here in the Kingdom to get the ties in order.

It's a long relationship they've had with Saudi Arabia. It's not the first time that they haven't seen iid I I think back to I mean, look, it's almost fifty years to the day since the former President Richard Mixon came to Saudi Arabia and asked for more barrels at a time when there was an inflationary wave as well. So a little bit parallels throughout history. But at the end of the day, what are we gonna get? You know what I mean? Are we gonna get a handshake?

Are we're gonna get, you know, a bit of a meeting? Probably we're gonna manatee the optics. It's a tough one. There's no doubt that I don't envy. I don't envy anybody trying to set up the meetings or the trip. I'll just be watching and uh and observing and taking some notes. Yeah, no matter what the potential photo op looks like, it is definitely going to be one for the history books. Whether it's awkward or all smiles. Very

interesting to watch. Thanks for this use of again great have you go on with us use of Gamal L Dean Bloomberg television anchor with us this morning from Jetta, Saudi Arabia ahead of President Biden's arrival for that face to face something we hadn't thought we'd see just a few months ago with the Crown Prince Mohammed been Salmon. Right now, SMP future is up eight points, Staff futures up ninety one, and that is that future is up

twenty one points ten. Your treasury up seven thirty seconds, the yield on the benchmark ten year note to point nine three percent. Are listening to Bloomberg day Break Bloomberg eleven three oh weather sunshine mid eighties today, sunshine tomorrow mid eighties as well could at ninety on Sunday with some late afternoon showers and storm stand the weekend right now seventy two 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 oh six one to San Francisco. Bloomberg nine sixty to the country, Sirius XM to the one nine team, and around the globe, the Bloomberg Business at and Bloomberg Radio dot com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Higger and I'm Karen Moscow. We are just about three hours away from the open of

US trading. Time for the fine things that you need to notice start your day. Brought to you by Interactive Broker's Global Analyst. It helps you find new global investment opportunities to diversify your portfolio and discover undervalued companies that may have greater growth potential. Try i v k R Global Analyst today at IBKR dot com. Slash g A first returned to China, where the economy grew just four

tents of upper cent last quarter. That's the slowest pace since 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

to 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 biking center, and that is a concern for China, and Bloomberg's Mark Cudmore says China's second half performance will be important well when Europe here and Italian Prime Minister Mario drags offered

to resign has been rejected by the country's president. Bloomberg's Kira Albanesi says if Droggy leaves government, it will negatively impact markets that he had started on a very ambitious pup of reforms to free up the market, to pick up competition, to change up the justice system, to cutrect This is all on the question if he walks away. Bloomberg Skira Albanesi in Rome says concerns over energy and

inflation could hamper Italy's economy later this year well. Nathan Back in the US, the debate continues over whether the federal hike rates by seventy basis points or one percent later this month. Coming up today, we get more economic

data for the Central Bank to digest. June retail sales would be released around eight thirty am Wall Street Time, followed by University of Michigan Sentiment at ten and banks are in focus again today care and after yesterday's disappointing results from JP Morgan, Chase and Morgan Stanley, we get more from Bloomberg Shinelli Vassek More worried about the U S consumer started to rise after JP Morgan started reporting provisions for loan losses. The bank also said that charge

as were starting to slowly rise. City Group and Wall Fargo will also give another glimpse into the consumer when they report earnings on Friday. M Shinnali Bassk Bloomberg Daybreak Sally thanks those reports this morning from Wells Fargo in City Group do out at seven and eight a m. All Street Time. Well. At the same time, Nathan financial regulators are poised to extract about one billion dollars in

fines from the five biggest US investment banks. That's for failing to monitor employee use of unauthorized messaging apps for bank communications. That's the five things you need to notice start your day. Brought to you by Interact you Brokers and straight ahead your latest local headlines plus the check of sports. This is Bloomberg. Thanks Staring sixty three on Wall Street, seventy two degrees in Central Park. Still dealing with a tractor trailer fire by the western merge of

the eastern spur of the New Jersey Turnpike. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York Governor Kathy Hocal announced a new budget allowance of over twenty million dollars to find gun violence in the state. Vocal, speaking during an van in Brooklyn, says it would invest in several things, including

community outreach programs and crime labs investigating shooting statewide. We have a gun violence epidemic here in the state of New York. Full stop. There's a statement effect. The governor's announcement comes one month after Wholecal signed a new gun safety bill that band carrying any firearms into sensitive places, including schools and mass transit stations. A federal grandjury and Buffalo returned to twenty seven account indictment charging the suspected

gunmen in the Top supermarket shooting with hate crimes. Meanwhile, the supermarket is set to reopen today. There was some debate about possibly closing the supermarket for good, but this man who lives in the community tells a d C. He's glad Tops is reopening because it's the only grocery store the community has. At first, I said to myself, well, maybe they should just put those are down, you know, closing and make a make a more more 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 Gendren, is accused of shooting thirteen people, Killington 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 New York City Abortion Rights Act also allows people seeking abortions from out of state to safely do so. The legislation passed forty one to seven. The January six Committee says secret Service. Texts made as the assault on the Capitol unfolded are missing. Bluebergs at Baxter Reports, 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 to 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 met Backster Bloomberg Gay Break Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalist and analysts more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg, Nathan, Thank you, Michael. Almost six thirty six on Wall Street. John stash Hour has a Bloomberg

Sports update, Nathan. Great night for the Mats. Not only there eight nothing went over the Cubs at regular strong pitching from Carlos Carrasco, Brandon Nemo three hits with a home run. Pete Alonzo is twenty four homer but I sell out crowd in Syracuse to see Jacob de Ground faced Triple A batterers for the first time when Fortings did not allow an earned run, just two hits, four strike ats, and all indications are to Gram will make his highly anticipated season debut for the Mats sometime after

the All Star Break. Yankees and Reds a pictures due at the stadium. Though it ended seven to six, it was won one on the eighth Today Esther Cortez and Luis Castillo in the Battle of All Stars Cincinnati with three runs in the eighth inning off Jonathan Loaisaga, just back from injury, and then three more in the tenth of Lucas Litckey. Joey Vado had big hits in both rallies. The Reds won seven six in ten Yankee home runs and defeat for Aaron Judge is thirty first, also Glabor

Torres and Matt Carpenter Yanks. It's the Red Sox tonight Seattle Mariners one again. Last night that's in Levin wins in a row for them. They're playing the second round of the Open Championship at St. Andrews. The leader at eight under remains Cameron Young. The Westchester native went to high school at Fordham Prep and the bronze he teas off.

In a a couple of hours, Taylor Gooch has moved to seven under par and Dustin Johnson and world number one Scottie Scheffler are on the course at six under, and Rory McElroy will start today at six under. Reported the Knicks have rejected a trade offer from the Utah Jazz Donovan Mitchell for four players and six first round draft picks. Big free agent signing by the Devils getting Tampa Bays Andre Polott for five years thirty million. Ryan Strom leaving

the Rangers signed with Anaheim. John Stash were Bloomberg Sports. All right, John, thanks sixty seven on Wall Street. Time to take a look at stock some of the names moving in the pre market on this Friday morning. We're joined by Bloomberg Radio and TV Markets correspondent Crety Gupta. Pretty interesting to see a stock go up when an activist investor takes a steake at it. Absolutely, Nathan, are

you a scrap booker. No, yeah, I mean either. But there's a massive audience for it, and that brings us to pinterest here. P I N as the online scrap booker. Any any bride will know um the value of interest. I'm in bride'smaid and I've recently learned the value of it in the context of planning a wedding product on there. Yeah, exactly. P I N s A is your taker. Up fourteen percent in the pre market. This does come after Elliott Management has acquired a steak in the company about over

nine percent. Now. They've been doing this slowly, They've been building up their steak there now the largest investor in the company. Remember this comes as social media companies broadly are struggling. We of course know the entire Twitter Tesla debacle. We also know that Snapchat, Alphabet, even YouTube. Some of revenues within Alphabet, well, they're all slumping. And a lot of this has to do with the growth story. If you're worried about recession, you're also gonna be worried about

business investment. Pinterest has the same problems. So a lot of those stocks, in addition to having that tech exposure exposure excuse me, have actually taken a hit because of that, so um, this is gonna be an interesting one to see if they actually do something to change the business. This, of course falls shake up at pinterest last month. The co founder and CEO Ben Silberman actually handed the reins to Google and PayPal veteran bill ready, so we'll see

if there's perhaps some new things in store for pinterest. Well, speaking of stocks taking a hit, this morning, we've got some earnings news outside of the big bank earnings that we're waiting for just a few minutes here, Yeah, we really do um And this is perhaps a company that not that many people have heard of, code Excess c d x S that shares are down twenty four percent

this morning. Comes is an enzyme engineering company. They cut their sales guidance for the year and reported preliminary quarterly revenue that trailed estimates. So once again they cut their guidance, they missed their estimates. Not good when you're once again looking at something that's sort of um in the engineering space. Here. The other one I want to point out to you, Nathan very quickly is Vontage VG is your taker is

actually up in the pre markets. Comes after Ericson's the Swedish telecom company received all the necessary approvals from regulators to buy Vontage and Vantage. For those of you who are not familiar, it's a cloud based communications company. UM very big when it comes, a very big player when it comes to to telecom broadly. I always think of it in India, for example, Vantage is everywhere. VG is your taker and those shares are up past six and

a half percent. Nathan Okay, Bloomberg Radio and TV Markets correspondent created grouped WI joining us again later on this morning nine am Wall Street time for Bloomberg Surveillance co hosting the show today. And I should note that President Biden is speaking right now as he meets with Palestinian leaders in Jerusalem. We will be checking back bringing you headlines as he meets with the President of the Palestinian Authority, Mock mood Abas right now. More to come here on

Bloomberg Daybreak. Right now, SMP futures are up eight points, staff Future is up eighty nine, NASAC futures up nineteen points. You're listening to Bloomberg Daybreak, Bloomberg eleven three oh other Sunshine mid eighties today and tomorrow. I could see some late afternoon showers and storms on Sunday, as we had a near ninety degrees to end the weekend. Right now seventy two 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. He's a Bloomberg Business Flash and I'm Karen Moscow and it's another morning, busy morning for Ernie's watching Wells Fargo, crossing the Bloomberg second quarter revenue missing analysts estimates. They get to the first word, breaking news. Dask for today's morning call, and here's Bill Maloney. Bill, good morning, Yeah, good morning, Karen. You as futures are in the green right now down features up a hundred and nine points, as if he's

gained ten well nasdeck features are up by seven. The US ten year at two point nine four percent, Gold is down seven, oil is a little changed, and bitcoin is trading higher by one percent. Japan rose half percent overnight, while European markets are in the green, led by games

in Germany. Back in the US on the economic front at a thirty, Empire manufacturing and retail sales at ten o'clock Commissigan sentiment at the develops to night, it was reported that Elliott took a stake in Pinterest shares are up fourteen percent in the pre market and regarding earnings this morning, you mentioned Wells Fargo, n H raised its guidance Black Rocky ps, missestmates and look for city groups to report around eight wrapping things up, Norfolk Southern was

raised to buy over at Steeple Live from the first breaking News desc Bill Maloney, Karen, all right, Bill, thank you all. You mentioned United Health grew up. It is a one point two percent in early trading this morning to hear life breaking news over here of Bloomberg type squawk on your terminal scue you a w K and that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, Karen,

thank you very much. 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 crosshairs of the Congressional Committee looking into the Capitol Hill, Royant and internal watchdogs, says the agency and 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 Rays, the Nationals lost to the Braves, 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 a hundred twenty countries. Michael barr and this is Romberg. All right, Michael Barry, thank you, and we'll have much more on these breaking earnings in

just a moment. We're watching Wells Fargo shares down more than three percent right now in early trading. It is sixty nine on Wall Street. And we turned to news and science and technology now at the Bloomberg n j I T STEM Report brought to you by New Jersey Institute of Technology, ranking top fifty national public university by u S News and World's Report, and number fourteen in the nation on Money's Best Colleges List. Learn more at n j I T dot E d U and here's

what's making news and science, Technology, Engineering, and math. Senate majority leader Chuck Schumer is telling senators to expect an initial vote as early as Tuesday on scaled back legislation that would provide financial incentives for companies that build semiconductor

manufacturing plants. In the US, both the House and Senator passed sweeping bills that call for the development of regional technology hubs across the country, but lawmakers have struggled to reach a final compromise that could generate sixty votes in the Senate, the number needed to overcome procedural hurdles Pacific

Island now national leaders have declared a climate emergency. Australia, the wealthiest and most populous of the Forum Nations, has committed to reduce greenhouse gas emissions by forty three percent below two thousand five levels by the end of the decade under a new government elected in May. And Amazon is slowing down its hiring in Europe. The company is saying it will create more than four thousand new permanent

jobs in the UK this year. That's the smallest number it's announced in at least the three years, despite planning to open two more fulfillment centers in the north of England, and that's the Bloomberg and J. A. T. Stem Report. Nathan alright, Karen, thank you. We are live from the Bloomberg Interractor broker studios where it's coming up to six fifty one on Wall Street as we continue to watch earnings from Wells Fargo the results across the Bloomberg terminal.

Bloomberg Intelligence Senior Global Banks analyst Allison Williams is with a Santa help break down these numbers. Obviously, Alan the A, I'm sorry, Allison, the red headline from these results. Second quarter revenue came in pretty short of estimates. What else stands out for you? So just looking there's there's a few, um, there's a few items that might have driven the revenue. The headline revenue miss or a couple of things I

would call out. Um, it does look like um, you know, equities securities gains which were a huge booze to the quarter a year ago, and it looks like there could be some losses this quarter. That's a little bit more negative than people thought. Again, that's not core, so I don't think people will be too upset about that. They did have a right down due to market spread winding again. We've seen this across the banks and that's uh to be expected. Mortgage banking income down significantly. That is a

big one to watch. Although you know, we all know that mortgage rates have skyrocketed and volumes are are very depressed. UM. The expectation was for the for that income to be down about it just looks like it's it's a little bit worse. The net interest margin better than expected. So that's a core number to watch for Whiles Fargo UM, and we're looking for the net interest income and the

provision building numbers now. Yeah, and some interesting lines as well coming in with Wells Fargo saying it expects credit losses to increase from low levels and a hundred seven million dollar right down in investment banking. Yeah. So that so the write down and investment banking is UM is the number that I that I had one of the numbers I referred to earlier. This is something we've seen

across the banks to the two areas. I think that we're seeing some stress in the leverage loan books and bridge financing at the investment banks UM just because of the spread widening UM, but significantly lower UM than the types of marks that we saw on the global financial crisis, and certainly uh that these marks are manageable, so I don't think people will be too much upset about that. The credit rising from low levels should be something that

is expected. We have really strong credit quality across all the banks, and we do expect some normalization there. The one thing that we're watching is what's happening with reserves this quarter because of the accounting, the reserves tell you that about today, which as I said, is very strong, but about the future, and that's what investors are worried about.

They're worried about a coming recession. And it does look like there was a little bit of a reserve build there that could be due to long growth like what we saw JP Morgan Um. So we'll be looking to dig into that a little bit more and we'll be watching for more headlines. As a continued to cross, the shares of Wells Fargo right now down two point seven percent. They had been in as low as three point four percent in the pre market. Alison Williams of Bloomberg Intelligence,

lets you get back to crunching those numbers. In the meantime, we want to take you to what's going on in d C. Lots happening in the nation's capital, not the least of which is President Biden's continue to trip through the Middle East. He's meeting right now giving a joint statement with Palestinian Primate or Palestinian President mak Buddha bass Lets bringing Bloomberg Government reporter Emily Wilkins from the nation's capital. Emily, just quickly, let's get some of the details on what

the President is saying alongside President of Boston. Yes, we have a number of different things. I mean Biden, first of all, I'm talking about Jerusalem, saying that it's got to be a city for all its people and saying the US is really working to improve the lives of Palestinian folks. He also announced that he would be uh that he would be putting forward Um, I think it's

over a three d million towards Palestine. This is really Biden's way of trying to renew ties with the region after the Trump administration really ended a lot of the contact.

And of course we're waiting for the President to head to Saudi Arabia later today, but in the meantime, we wanted to what's happening on Capitol Hill as well, because there's been a lot of developments, including Joe Mansion once again putting a big hurdle in front of the slim down economic package that he's been negotiating with the Senate Majority Leader. Yeah, Joe Mansion told Democratic leader is that he wouldn't be supporting new climate measures or tax increases,

particularly climate. That's something that Biden really wanted to see happen. It's something that he was very much pushing for, very you know, really togging um and Manson has said that he does not want that in a final bill. He wants the bill to really be focused on reducing the deficit and potentially a number of healthcare measures as well as things like bringing down drug prices, which have already been agreed to. And this comes as we're seeing inflation

hit nine point one percent. Mansion has been consistently concerned about inflation, consistently warned, uh, you know, that inflation was sort of tempering his desire to see some of this

new spending and the reconciliation go through. And this has really been very frustrating for a lot of Democrats just to see this big package that they have get whittled and whittled down further, but knowing really there's nothing can they can do about it as Mansion is not going to support something they don't have fifty votes, they don't have the means to pass it. Uh So I expect to see this. This is a Asian brokelate last night.

Expecting to see a lot of continued frustration around Capital Hell today on that and even with the difficulties around an economic package. Emily, it's very interesting to see this breaking news this morning that House Democrats are going to try to move forward on an assault weapons band vote. This is really interesting. Yes, so the Hose Judiciary Committee has announced that they'll be taking steps basically to start the process of moving this assault weapons ban built forward.

Now at this point, I've spoken with a couple of senior Democratic aids who have said that, you know, there hasn't really been any sort of announcement yet about whether this bill will come to the floor. The issue is that, methank, there there might not be enough votes to get it to pass. There are a number of Democrats who are from pretty conservative areas and have said that they do

not support an assault weapons fan. Uh. If you remember there was um Lola maker from Buffalo, Chris Jacobs, who came out as uh anti assault weapons after the mass shooting in the Buffalo grocery store. He's a public in in A week later, he had to announce that he would not be running for re election because the backlash to that announcement was so negative. So this is a

pretty controversial area. I think the fact that you've seen leadership go and address it right now really speaks to how public sentiment is turning after some of the most recent mass shootings. We've seen Emily Wilkins of Bloomberg Government keeping any everything happening in the nation's capital. So can you read all these stories at Bloomberg dot com or on the Bloomberg terminal and listen to Bloomberg Radio in Washington, d C Bloomberg and one oh five point seven FM

HD two. Continuing to watch shares of Wells Fargo in early trading after reporting disappointing earnings there down three and a half percent in the pre market. Much more to come on Bloomberg Surveillance Next for Karen Moscow. I'm Nathan Hagar. This is Bloomberg