Bloomberg Daybreak: July 18, 2022 - Hour 2 (Radio)

breaking news dance for today's morning call. Here's Bill Maloney. Bill, good morning, and good morning Karen, and speaking those Bank of American numbers. Q two trading revenue x d v A was four billion. That Smith their four point one billion US hugues with a bid right now at DEW futures up two hundred and sixty eight points, subs game thirty six, will Nastick futures are up by one thirty seven US ten year at two point nine six percent, Gold is up twelve oils in the green, and bitcoin

trading hired by six percent. Hong Kong rose two points seven percent overnight, while up markets are also in the green. The Bay games in France and Germany. Back in the US. On the economic front, at ten o'clock, the NHB housing marketing in x and regarding earnings. This morning also looked for Schwab and Goldman Sachs to report in the pre market. In undernews, Goldman Sachs also said it's too early to assume inflation is easing and wrapping things up, A Brinker

was cut to neutral. We Right, Goldman Live from the first Breaking News desk on Bill Maloney. Care All right, Bill to your live breaking news over your Bloomberg catch squawk on your terminal squ a w u K and US at Bloomberg Business Flash. Now, Here's John Tucker with more on what's going on around the world. John, Good morning, Karen. Three people killed them all in Greenwood in again of yesterday, in a shooting that ended when an armed man fatally

shopped the gunman. A new report finds egregiously poor decision making on the part of law enforcement responding the mass shooting at the Valdi Elementary School in Texas. Sports Camp Smith wins Golf's British Open. Yankees beat the Red Sox thirteen to two, Metsalus to the three to two, the Financials beat the Brave seven three, the Orioles lose to the Raise seven of five, and the A's beat the

astros four to three. Global News twenty four hours day on air and on Bloomberg Quicktake power by more than twenty seven hundred journalists and analysts in more than one d twenty countries. I'm John Tucker, and this is Bloomberg Karon. All right, John, thank you, and again we're watching earnings from Bank of America across the Bloomberg. It reported trading revenue that met analysts estimates. Shares are moving lower and

early trading down one point four percent. And we're going to break those earnings down in just moments from now with Bloomberg Intelligence senior financial services analysts Alison Williams. But first it is sixty nine on Wall Street. We turned to news and science and technology now with the Bloomberg

and j I T. STEM Report. It has brought to you buy New Jersey Institute of Technology, ranked top fifty national public university by US News and World's Report in number fourteen in the nation on Money's Best Colleges list. Learn more at n J I T dot E D you and here's US making news in science, technology, engineering,

and math. A startup in Cambridge, Massachusetts, says it can use artificial intelligence to help predict future variants of COVID nineteen A Priori Bio said it's harnessing information with the aim of helping pharmaceutical companies produce variant proof vaccines. The company hopes its services will provide an early warning to governments about how future variants might behave, sort of like

a hurricane alert. The United Arab Emirates will set up a fund worth close to a billion dollars to develop satellites as it moves forward with the Middle east most ambitious space program. The program includes plans to explore Venus within a seven years and land on an asteroid in addition to launching a spacecraft into Martian orbit, and the US and Russian space agencies have agreed to resume having a crew member's right to the International Space Station on

each other's rockets. The arrangement will send an integrated crew to the space station in September, according to NASA. That's a Bloomberg and j I t st and rapport. Nathan. All right, Karen, thank you. We are live from the Bloomberg it directive broker studios where we're coming up to six fifty one on Wall Street. As you mentioned, Bank of America earnings are continuing to cross the Bloomberg terminal. So let's bring in Bloomberg Intelligence senior Financial services analyst

Alison Williams for a breakdown of these results. Allison, we saw a bit of a pop in the Bank of America's stock on the headline that trading revenue basically came in line with estimates. Now we're seeing those gains erased and the stock is falling. What stands out to you? So the one thing that stands out to us if the capital ratio. Keep in mind that we thought JP

Morgan pausing there buy backs. UM. Bank of America had already talked about pausing their buy back and in fact those came in much lower UH last quarter, and the capital ratio is a little bit light of where they need to be in the fourth quarter. UM. We learned about those new requirings with the stress tests. And how about the net interest income? Obviously this is something that we're watching with all of the banks as the FED is in a tightening cycle. How'd that do the net

interest income? UM looks good. The loan growth looks good. UM operating leverage is positive. So from a core basis, UM things look pretty good. Consumers spending strong. I think it's I my guess it's going to be that it's a capital ratio that investors are reacting to trading also, by the way, it looks a little bit better. And in terms of provisions for credit losses, those came in lower than analysts were expecting. What does that tell you? There's no reserve built, So we're gonna want to hear

a little bit more detail on the call. But UM credit across the banks has been stronger, so we know that the consumer today is in a great position. And the fact that they're not adding reserves UM could mean that, you know, based on their economic scenarios, they feel that they're in a good position already. And as we watch the earnings continue to roll in, Bank America's stock down

down about two percent in the pre market. Allison Williams of Bloomberg Intelligence were checking back with you throughout the morning as we await the final results as well from Goldman Sachs wrapping up bank earning season. In the meantime, it is now six fifty three on Wall Street, and we want to check what's going on in d C, where some of the top stories include President Biden returning from Saudi Arabia without a promise of increased oil production.

The US Envoy for Energy Security, Almost Hostein, says he is confident to Gulf nations will boost output in the coming weeks. There is additional spare capacity. There is room for increased production UH, as we've told producers in the United States. We've had conversations over the last coeuple of months and weeks with OPEC UH, and I believe that there is still more room to UH to see additional steps. Almost Hochstein with the State Department was on CBS's Face

the Nation. In the meantime, White House Economic Advisor Jared Bernstein tells Fox News Sunday drivers are starting to feel less pain at the hump. The price of gas has come down fifty cents a gallon. There are now twenty thousand gas stations across this country where gases below four dollars a gallon still too high, but that's moving in the right direction, giving Americans some much needed breathing room. Also making new Senator Joe Mansion blocking a slim down

economic package out of concern over inflation. Independent Bernie Sanders tells ABC's This Week Mansion is sabotaging President Biden's agenda. In my humble opinion, you know, match and represents the very wealthiest people in this country, not working families in West Virginia or America. And the House January six Committee expects to receive deleted text messages from the Secret Service by tomorrow under subpoena. Committee member Zoe Lofgren was also

on this week. I was shocked to hear that they didn't back up their data before they reset their iPhones. That's crazy. I don't know why that would be, but we need to get this information to get the full picture. You can hear this week Fox News Sunday and Face the Nation every Sunday right here on Bloomberg Radio and from More. We're joined by Bloomberg Government Order Emily Wilkins

in the nation's capital. So, Emily, President Biden comes back from the Middle East right into a fight over inflation and spending. Yeah, and that's going to make it extra critical for President Biden to be able to show that this trip did amount to something when it comes to terms of gas prices. Uh. Us Envoy, who was on the trip in the touch sign with the State Department, said he is confident that golf producers will increase oil

output after that trip. But Toddie said any decision to increase oil production would have to be made at that August started OPAC meeting. So we're gonna have to see exactly what happens here. But Biden certainly something he can point to. He came under heavy criticism for that fist bump that he exchanged with Saudi Saudi Crown Prince Mohammed and Salmon. Uh. You know, this is a nation he

promised to make a Fria. Uh. He is one that has a nation with a bunch of human rights abuses, obviously the killing of a Washington Post columnists Jamal kaogi Um. And so this whole trip, you know, the big thing was oil. I've talked to lawmakers who say that the thing that Blinden needs to do is really bring up

Christ down. And at this point, it just it remains to be seen exactly what's going to be happening with that and if production will be increased, and it really goes into the debate that's happening on Capitol Hill right now over how to deal with inflation and the ongoing back and forth within the Democratic Party of specifically Senator Joe Mansion blocking that economic package, and now looks like

even the Chips Bill is gonna get dialed back. Yeah, there's a couple different balls in the air, and you're right, Ethan, a lot of this has to do with inflation and concerns over it. Mansion is worried that to put another big financial package out there, even one that is Democrats, as Democrats point out, would be completely paid for, would be super problematic for the economy and for inflation. And

so that one, that reconciliation package is on hold. There's also now looking at the package for US China competitiveness, making the US more compati editive, boosting domestic manufactory. But the and Senate will vote on a version of the Death Bill this week, but it's going to be way slimmed down what we were initially expecting. Lawmakers were negotiating

a much wider package. This one's mostly going to focus on fifty two billion dollars in Grandson incentives to help increase semiconductors and help more of those semiconductor companies look at the US as a place where they can build their factories and produce their products. Thanks for this, Emily, Bloomberg Government reporter Emily Wilkins, and you can read more at Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington Bloomberg and one oh five

point seven FM HD two. We continue to watch shares of Bank of America as the bank has reported earnings. The earnings per share came in slightly below estimates, along with overall revenue b a C down one point one percent. In the pre market, SMP futures are higher by thirty seven points, staff futures up two seventy four, nastack futures on the rise by one forty points. Much more to come on Bloomberg Surveillance. So Tom Keene, Jonathan Faroe, and

Lisa Abramowitz for Karen Moscow. I'm Nathan Hagar. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com. The Bloomberg Business Atland at Bloomberg Quick Tape is a Bloomberg Business blash, And I'm Karen Moscow. US Stock Index futures on the rise this morning by the dollar weekends, is investors scale back bets and how aggressively the Federal reserve a titan policy easing recession fears. We check the markets every fifteen minutes throughout

the trading day. On bloomberg S ANDP Future is up thirty eight points, DAL futures up two hundred seventy three and nasday futures of one forty one. The decks in Germany is up one point three percent. Ten year treasury down ten thirty seconds. You'll two point five percent. They yield on a two year three point one four percent. Nivex screwed oil is up one point eight percent of a dollar seventy six and ninety nine thirty five cents of barrel comex schooled up eight ten percent or thirteen

dollars seventy cents is seventeen seventeen thirty announced. The Euro one point zero one five nine against the dollar, British pound one point four and the Yan is at one thirty eight point to seven, and Big coin is up more than six percent at twenty two thousand, two hundred and thirty dollars. Coleman Sachs Bank of America among company's scheduled to report earnings today. And that's a Bloomberg Business Flash. Now here's John Tucker with more on what's going on

around the world. John and Karen. Three people killed at a mall in Greenwood, Indiana, shooting that ended when an armed man fatally shot the gunman. A new report finds egregiously poor decision making on the part of law enforcement responding to the mass shooting at the All the Elementary School of Texas, and President Vladimir Zelinski removing his national security head and Ukraine's top prosecutor alleging the some employees

collaborated with RUNCH and intelligence. Sports Camp Smith wins Golf's British Open. The Yanks beat the Red Sox thirteen to twelve. Mets lose to the Cubs three to two. The Nationals beat the Brave seven to three. The Oils lose to the Raise seven to five, The beat the Astros four to three. Global news twenty four hours a day on air and on Bloomberg Quickday Power by more than twenty seven hundred journalists and analysts. It more than one hundred

and twenty countries. I'm John Tucker. This is Bloomberg, Nathan John. Thank you. It is six nineteen on Wall Street Live from the Bloomberg Interactive Broker studios. This is Bloomberg Daybreak as we get ready to kick off another trading week. We are joined this morning by Bloomberg television anchor and markets correspondent Danny Burger looking at green on the screen this morning after the late week rally to end last week. But we've got some notes out this morning, Danny that

might make investors wonder whether this is another bear market rally. Yeah. I think that's certainly a big part of this conversation. You could even say, okay, things it filed awful off the Fed. Perhaps, Um, the peak of rate rises is soon going to be here. If we're not going a hundred basis points, we're just going. Yeah. I think the note which you're you're probably trying to bait me into covering, which I am more than happy to be just is

an interesting one. It's close and right the permit perma bear here saying that look, even um, what we're seeing right now is likely, yes, just at a bear market rally. Um that the bear market it's not over. And they say even if we avoid a recession, we're still likely to see more stock losses. But they do say the

odds of a recession arising. Yeah. Interesting to see that once again from as you term him, probably quite rightly Perma Bear Mike Wilson, raising the odds of a recession, even as it seems as though markets, at least for this morning or the last couple of days, are baking in the possibility that we're not going to see quite as big rate hikes as investors might thought. And maybe that brings in the possibility, or at least brings back into the conversation the idea of a soft landing. Yeah.

I think a big part of it is we just went too far in pricing what the set is going to do. Because what we're pricing in for this month's RAAK decision, it's certainly still a jumbo hike. It's uh seventy nine basis points on the money market pricing. Of course, they don't move in those intervals, so that implies that most bets are are centered around seventy five, which again historically a very very large hike. But I do think markets just went too far and saying perhaps it will

be one percent um. Perhaps it's going to be bigger. So what we've seen these past couple of days is markets having to take a step back saying, Okay, yes, the set is raising rates, but inflation perhaps isn't as pernicious, Not that it won't be pernicious, but but we just went too far. And I really think that that's what we've been seeing on Friday and today. You have to wonder, Danny, whether we're going to see more concern about inflation bleed back into the mark it as we get through more

of earning season. We're wrapping up banks today, We're going to hear from some big tech names later this week. That's going to make things pretty interesting. Yes, it definitely will, especially considering we've heard a lot of tech names talk about flowing hiring. Um be it. Microsoft too says that you know this is this is normal for them. It's not because they're global concerns. But Google Alphabet, their parent company, has also slowed hiring as well. Um and yeah, is

the global slow down going to hurt tech? This is usually a sector that's perhaps a bit more resilient. But if you're an ad spending business, if that's if that's what you're dependent on then yeah, certainly slower growth among corporates could could definitely come to bite. Are we looking for more earnings downgrades as we get further into the season. Is that something that the analysts you talk to our

watching out for. Definitely, we have started to see some downgrades that the expectations are are still pretty elevated, but as we get closer to more earnings reports, it is net downgrades instead of net upgrades. UM Bank of America, though my Cartinet over there does believe that it's still despite some of the downgrades we've seen, earnings are going to disappoint and he says that's going to be the

thing that drives the capitulation in this market. That we haven't totally seen it, despite the fact we've entered a bear market, but this earning season will be the thing that causes it if we need disappointments in our last minute here, Danny, as we enter the FED blackout period, here, I gotta ask what you make of all the pretty significant swings we've seen in the market just based on pieces of economic data coming out one after the other. It's like if you get a big inflation print, things

go down big time. We got retail sales last week and things went up big time. I think this is so fascinating because we are trading on pieces of data. I mean, look, we've always traded on pieces of data, but but we're having so many people own so much volatility around pieces of data that we never did before. UM trading on a University of Michigan sentiment survey, I mean, that's pretty strange, but yeah, but but you kind of have to do it. The J Powell last time he

raised rates seventy five basis points, so I did. That is one of the inputs UM. And yet again on Friday's University of Michigan survey, people backed off around rate heights because it wasn't just the retail sales data. It was inflation expectations that came in. So I think it's just every single piece of data is not just important for the market, it's important for the said. Hence why all the volatility. Thanks for this, Dandy, great having you

on with us. Dandy Burger Markets correspondent, Bloomberg TV anchor with us here this morning on Bloomberg Radio, looking ahead to the market, open, futures, poise for games, SMP futures up thirty nine points, staff futures up two to eighty nine nastack futures hired by a hundred forty five points. Tend your treasury down eleven thirty seconds, yield two point

nine five per cent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather cloudy today, some showers and storms developing by midday, low eighties will be your ninety mostly sunny tomorrow and by Wednesday, mostly sunny with a high right now seventy six degrees. Broadcasting live from the Bloomberg

Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C, Bloomberg On to Boston, Bloomberg one oh six one, to San Francisco, Bloomberg N six to the country, Sirius XM, Chad A one nine, and around the globe, the Bloomberg Business APT and Bloomberg Radio dot Com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hager and I'm Karen Moscow. We're just about

three hours away from the open of US trading. Time to the five things that you need to know to start your Day brought to you by Interactive Brokers Investment Advisors, which to Interactive Brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at ib kr dot com. Slash r i a first Markets gear up for a slew of earnings

this week. Investors are watching how business is weathering inflation and tightening from the Fed, Coleman Saxon Bank of America Rapper reporting for the major banks today. Other notable names this week include Tesla and Netflix, United Airlines and IBM, and the results that Karen come on the heels of June's hot CPI report. Clara Advisers Founder and managing principal Ryan Bolanger says, even if they're earnings mrs, big US

companies are still a good place for investors. You've got consumer spending still on the rise, so you've still got a very attractive consumer balance sheet. Household finances are in great shape still, so that's one of the reasons why we still like the domestic companies more than the international counterparts. Ryan Bolanger with Clara Advisor says, we're still likely to

see a prolonged period of volatility pan time. Nathan went to Wall Street's biggest bearer, says us to box are likely to face more declines as even if the economy manages to avoid a recession. Mark and Stanley strateg just Mike Wilson says he expects the bear market to continue. He also sees the odds of a recession continuing to rise. Turning into commodities now, Karen oil is on the rise

after last week's nearly seven percent drop. It follows President Biden's landmark visit to the Middle East that wrapped up without a firm commitment from Saudi Arabia to boost Crewe supplies. Checking prices now name excrudes up two percent or a dollar ninety four nine fifty two cents of barrel. Brent is hired by two point three percent to a hundred three dollars forty nine cents. Well, we moved to Italy now, Nathan, we're Prime Minister Mario Draggy is under mounting pressure to

reverse his pledge to resign. Draggy appears determined to leave office, but Summer pushing for him to stay. Bloomberg's tomaso Ebb Heart has more from Milan If Druggy resigned, then he will resign. They had off of the president of Mazzarella. We are expecting at this point Matarella or to have a consultation with political leader, but that's almost no possibility to form a new go mean in that case he will call his an appalation and Bloomberry's Tomasso I've heard

of Malone, says Mario. Draggy will address lawmakers Wednesday to declare whether or not he'll quit the government. And in corporate news, Starbucks is wayne whether to sell its UK operations, according to the Financial Times, which says the coffee chain has yet to initiate a formal sales process. The UK is starbucks largest market in Europe, the Middle East and Africa. And that's the five things you need to notice start your day. Brought to you by Interactive Brokers and your

local headlines. Straight Ahead on Bloomberg, Thanks Karen. Six thirty three on Wall Street, seventy six degrees in Central Park Out a crash eastbound Route three at seventeen in Rutherford. Details coming up in traffic. First John Tucker with more on what's going on in New York and around the world.

Good morning, John, Good morning, Nathan. The first draft of an investigative report of the mass shooting at a South Texas elementary school in May finds plenty of blame to go around for the stuttering response to the attack that deals in this report this Morning from Bloomberg's Jeff Bellinger.

The report finds nearly four hundred law enforcement officials rushed to a mass shooting at a Uvaldi Elementary school, but egregiously poor decision making resulted in more than an hour of chaos before the gunman who took twenty one lives was finally confronted and killed. The nearly eighty page report was the first to criticize both state and federal law enforcement, and not just local authorities in the South Texas town,

for the bewildering in action. The report also finds no one assumed command despite scores of officers being on the scene. Some families blasted police as cowards and demanded resignations. Jeff Bellinger, Bloomberg Daybreak. Three people were killed at a ball in Greenwood, Indiana, in a shooting yesterday that ended when an arm and fatally shot the gundan and with a rifle and several magazines of ammunition entered the ball's food court and started firing.

Placed on Facebook, there were seeking witnesses to the shooting, which took place at a fifteen miles south of Indianapolis. A New York City firefighter was seriously hurt Sunday after responding to a crash on Manhattan's West Side. It was responding to a two car crash. One of the cars shifted and fell on his leg. According to New York City's Chief Medical Examiner, Vana Trump, the ex wife of former President Donald Trump, died accidentally a blunt impact injuries

to her torso. She reportedly had fallen down the stairs that are upper East side home. Her death led the office of New York's Attorney General, Letitia James to postpone a deposition of the former president that scheduled for next week, and the House Committee investigating the US Capitalists all expects to receive text messages It has subpoena from the Secret

Service by tomorrow. A former aide, Cassidy Hutchinson, said she was told Trump wanted to join the mob when marching on the Capitol, but was blocked by a security detail and a physical altercation took place. The text messages could provide insight into that episode. Global News twenty four hours a day on air, Hannam Bloomberg Quick Take Power by more than hundred journalists and analysts it more than one countries.

I'm John Tucker. This is Bloomberg, Nathan. Thanks John, six thirty five on Wall Stranger's John Sash at the Bloomberg Sports Update. All right, Nathan. The Yankees with a two game Boston massacre. They had lost three straight to the Red Sox with a one Saturday night fourteen to one, and they came back yesterday and won thirteen to two and eight run fourth inning later home runs for tim Lo Castro and Joey Yallow. Garrett Cole struck out twelve twice.

He fanned his nemesis or Afael Devers, who was numbered off Cole. Eight tons. Chris Sale started for the Socks, just doctrum injury and Aaron Hicks line drive in the first inning. Grope Sales pinky Yankees at the All Star break sixty four and thirteen game, leaving a last the mester fifty eight and thirty five. They're up two and a half on Atlanta. They were four outs from a four game sweep in Chicago. The cub score twice in the eighth inning to win three to two. Starling Marte

has taken himself out Tomorrow's All Star Game. Tonight in l A. P. Lolonso goes for a home run derby three pet They held the MLB draft. The sons of Fomer Big leaguers Matt Holiday and Andrew Jones went one too to Baltimore and Arizona. The Mets took Kevin Parratta, a capture from Georgia Tech, and then Jeff Williams, a high school shortstop from Texas, and the Yankees drafted Spencer Jones,

and outfielder from Zanderville. At St. Andrew's. Cam Smith came from behind, had five straight birdies to start the back nine. The twenty eight year old Austine won the Open championship. Uh Pour fought Polsau on a around here, especially with that window, you know, off the left, and um yeah, just stuck to what I was doing and um yeah, just really crowd of how I how I on a

knuckle down today. Smith tied a record for a major with twenty under part beat Westchester native Cam Young by one shot in Rory matheil Roy by two John stash went Bloomberg Sports. Nathan all right, John, Thanks, It's six thirty seven on Wall Street. Time to take a look at stock, some of the names moving in the pre market.

Bloomberg Radio and TV Markets correspondent Creedy Gupta is with us as we await the final set a big bank earning screety the finals at a big banker and he's got Bank of America and Goldman Sacks do to report this morning. And it's interesting because, of course we saw a little bit of mixed messaging when we came from the earnings last week. We haven't where you had, JP Morgan. We're stay coming out and a little bit kind of worried about what might come next. The trading revenue missed

as well. And then you came out and I saw Wells Fargo in city groups sending two completely different messages. Well as far saying, well, we're actually gonna stick to our buyback, city groups saying our trading revenue really not the socks off of all the Wall Street banks this morning. You do have some optism baked into the market here. Bank of America shares be a c is your taker up one point two percent. I'm gonna quickly look up Goldman Sacks here as well. The taker is the letter

g S also up one percent. This is significant as we talk about what's happening in the macro environment as well. Remember, in this rate hike environment, how much do people have to how much do these banks I should say have

to actually create more loan lasted provisions? How much do they actually have to watch out for some of these higher interest rates that would perhaps decline or somewhere there or decrease I should say some of their net profit margin right now, at least on the on the surface level, you do have some optimism baked into those stocks. Sathan. Yeah, we're gonna be watching for those earnings, starting off with

Bank of America. We're expecting those are just a few minutes actually, And I see you're watching some news coming out of Southern England this morning. Part Yeah, it's kind of interesting. You wouldn't think that some news out of the Southern England would move one of the biggest stocks and in the SP five in the Dow, I might add, but nevertheless it is Boeing Shares b A is your ticker up about two point eight percent. This is significant.

It comes after you had Boeing and Airbus. They are buying for almost twenty one billion dollars of aircraft orders at the first major commercial air show since twenty nineteen. Here's where the Southern England Park comes in. This is the farm Borough Air Show. Super important when it comes to simply getting more of those deals done. Boeing actually just announced of this morning that looks like it's also

getting a deal done with Delta at the moments. Remember a lot of those orders, a lot of those jet orders were put on hold just given the COVID uncertainty and especially the back log that Boeing is already facing. But Bowing actually said well they expect a very big order day, not just for their jets but their hydrogen engines as well, and that are obviously it's already boosting the stock this morning to the tune of two and just quickly hear some news with chip stocks as well,

some news with chip stocks. This is really important as we talk about simply what is the trade that really works when it comes to chips. Remember, everyone was buying chips as a bet. These supply chain issues aren't going to go away anytime soon. This morning, applied Materials A M A T actually got a price target cut over at Deutsche Bank. Nevertheless, the shares are still up one

point six percent. Remember Apply Materials is that semi equipment maker, so this is significant that even in the face of perhaps some price start cuts from some of the major banks, it's actually still way way higher. Tells you that trade is still in play, all right. Bloomberg Radio and TV Markets correspondent Creed grooped up with us this morning as we take a look at futures on the rise, SMP futures up thirty seven points, Staff futures up two six

and NAZZAC futures leading the way this morning. They are hired by one under thirty eight points. Tenure treasury is down ten thirty seconds, the yield two point and the yield on the two year still inverted three point one four. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather showers and storms developing by midday. Highes in the low eighties will be near ninety tomorrow under a mostly sunny sky, hot Wednesday for a high by then right now seventy

six degrees. Live from the Bloomberg Interactive Berger Studios This is Bloomberg Daybreak for Monday jo coming up. The shower stocks face another test this week as more earnings roll in, Oil jumps following President Biden's trip to the Middle East, China rolls out mass testing as COVID cases rise, and the January six Committee prepares to receive texts from the Secret Service. Another deadly shooting, this time at the wall in Indiana, and a demning report on the police respond

us to the school shooting in Texas. I'm John Tucker. Those stories straight ahead. I'm John Stash's four second straight game with the Yankees crushed the Red Sox. The Mets lost in Chicago. Cameron Smith won the Open Championship golf.

That's All's trading ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world on Bloomberg Radio, dot com and via the Bloomberg Business Act. Good morning, I'm Nathan Hager and I'm Kart Moscow and

US dot Index futures are rising this morning. We're coming up to six oh one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on bloomberg S ANDP futures up thirty six points this morning, Down futures up two hundred fifty six and Nastack futures up one d forty. The ten year treasury down twelve thirty seconds, Yeal two point nine five per cent Nathan well Karen. Markets are gearing up for another slow of

earnings this week. Investors are watching how business is weathering inflation and FED tightening. The major banks finished reporting today following some disappointing results last week. Bloomberg's Jeff Bellinger has a preview. The investors may not be pleased with the numbers from Goldman Sachs Bloomberg Intelligence, as Goldman's second quarter profit may have declined sharply versus a year ago because of outsized investment gains that turned to losses and the

slide in banking fees that exceeded trading revenue growth. We also hear from Bank of America this morning. The outlook isn't entirely rosy, but b I is more upbeat, saying be of a likely benefited from flat costs, net income that expanded with rates, and healthy industry loan growth. Jeff Bellinger, Bloomberg, Debreak, all right, Jeff, thank you. Some other notable names reporting this week include Tesla, Netflix, United Airlines, and IBM Well Nathan.

This week's earnings come on the heels of June's hot CPI report, and Clara Advisers founder and managing principle Ryan Blander says, even if there are earning some misses, big US companies are still a good place for investors environment. You gotta stay large cap. We think as an overweight, we love the dividend paying stocks. They provide some cash flow. I would say you don't want to abandon large cap technology.

I mean, some of these companies are extremely profitable, have huge business modes, and are trading at really nice discounts to their historic multiples. Ryan Blander at Clara Advisor says you're still likely to see a prolonged period of volatility. Now one of Wall Street's biggest bears, Karen says US stocks are likely to face more declines even if the economy manages to avoid a recession. Morgan Stanley strategist Mike

Wilson says he expects the bear market to continue. He also sees the odds of a recession continuing to rise well. Turning to commodities now, Nathan oil is advancing this morning after last week's almost seven percent to drop. The jumps follow President Biden's landmark visit to the Middle East that wrapped up without a firm commitment from Saudi Arabia to

boost crewed supplies and check in praises. Now nine ex screwed oil is at one point eight percent of a dollar seventy ninety eight cents of barrel Brent is up two point one percent and a hundred three dollars thirty one cents over in Europe, Karen candidate seeming to succeed UK Prime Minister Boris Johnson, are weighing in on the economy and the cost of living crisis in the country. Boom Brigs You and Parts has more from London. Good

Morning You, Good morning Nathan and Karen. A a second TV debate for the five remaining candidates to take over as the next British Prime minister. Clear dividing lines starting to emerge over taxes and the economy as lawmakers votes in there are the field. Here's former Chancellor Rishi Sunak,

Foreign Secretary Liz Trust. This is something for nothing. Economics isn't conservative socialism Under your plans, we are predicted to have a recession because you have raised tax It is cutting back on growth, it is preventing companies from investing, and it's taking money out of people's pockets. That is no way to get the economy going during a recession. But she seen I've seen as the front run or

Penny more Than's runs second list. Trust is third, but a recent poll shows that she would beats all contenders in the final run off between toury members. Live in London. I'm your parts, make day break, are you and thank you? We moved to Italy now where around Minister Mario drag is under mounting pressure to reverse his pledge to resign. Draggy appears determined to leave office, but Summer pushing for him to stay. Bloomberg tomaso Ebb Heart has more from

the lawn. The pression is not coming from political parties, but he's coming from the country, from a business leader, from professor, from major of more than four hundred cities. So there is growing impression but at the moment Mario drag seems determined to live because of the national unity government. Death used to run is not there anymore. The collision is essentially broken. Bloomberg Tomasso Eve heard about Laan, says Mario Draggy will address lawmakers Wednesday to declare whether or

not he'll quit the government. Turning the Asia now, Karen, it was a good day for equities thanks to softer signs from the Fed and pledges from China to or up the economic growth. Bloomberg's Juliette Sally joins us with details from Singapore. Good morning, Juliet, Good morning, Nathan and Karen. The MSCI Asia Pacific Index excluding Japan, which was closed for a holiday, gained more than one percent, boosted by

a jump in Chinese tech shares. Sentiment across mainland equities and in Hong Kong was boosted after the p POC indicated it will step up implementation of prudent monetary policy. Shares of Chinese developers jumped by the most in nearly a month, following a report that the nation's banking regulator has urged lenders to support the sector amid a growing mortgage Boykosh in Singapore, Juliette Sally Bloomberg, daybreak, All right, Juliet,

thank you. Meantime, in China, cases of COVID nineteen remain elevated, Shanghai rolling out Mounse testing, and nine districts to stamp but infections. The country reported five ten cases for Sunday after new infections jumped to five hundred eight on Saturday. Stern Politics, Now, Karen and the latest developments on Capitol Hill. The January six Committee now says it expects to get Secret Service text before tomorrow's deadline. Bloomberg said, Baxter has

the story. These are texts that it was first said were deleted in a system upgrade text that we're not backed up. Now. Committee member Zoe Lofgren says, a change in tune. And there was a statement made by the spokesperson for the Department saying that you know, it wasn't true, it wasn't fair, and that they in fact had pertinent texts. And remember, Adam Kissinger says he hopes to get good information.

It is quite crazy that the Secret Service would actually end up deleting anything related to one of the more infamous days in American history. And he says he doesn't know exactly what they'll get in San Francisco. I'm at Baxter Bloomberg daybreak and thank USMP futures right now at thirty six points down futures of sixty one. NASTAC futures are higher by a hundred forty points. Tend your treasury yield two point straight ahead your latest local headlines, and

to check of sports. This is Bloomberg and it's six so seven on Wall Street. We're seventy seven degrees in Central Park. The Harlem River Drive is jammed southbound of the hundred forty street bridge with a crash clearing. Details coming up in traffic. First John Tucker with more on what's going on in New York and around the world. Gorney John Nathan. Another deadly mass shooting, this one he's not had a shopping mall in Greenwood, Indiana, please say.

The still unidentified adult male enter the mall's food court shortly enter six pm local time yesterday, apparently with a long gun and magazines of ammunition, and started shooting. Five people were shot, three of them died. Police say a good samaritan who was armed shot the attacker, killing him. The real hero of the day is the citizen that was lawfully carrying a firearm in that food court and was able to stop the shooter almost as soon as

he began. That's the Greenwood Police chip Jim Eisen a demic investigative report about the mass shooting in Texas. That report finds nearly four hundred law enforcement officials rushed to the mass shooting at the Vivaldi Elementary School, but egregiously poor decision making resulted in more than an hour of chaos for the government. Who took one lives was finally confronted and killed. With many New york Is frustrated with crime, Mayor Eric Adams has been on the road raising money.

That story in this report from Bloomberg's Lisa Matteo, the mayor raised more than eight hundred and fifty thousand dollars for his re election campaign barely six months after taking office. The figure comes from filings with the city's campaign finance Board. According to The Times, the campaign hall is a result of Mr adams is traveling across the country to raise money for a second term. Nearly half of Mayor Adams's campaign donations, more than four hundred thousand dollars came from

outside New York City. The donors include leaders from real estate, casino, and sports betting businesses. Lisa Matteo Bloomberg Daybreak. New York City is considered the emp center of the U S monkey pox outbreak, and on Sunday, three mass vaccination sites open to the city among a limited supply of shots. New York Cities approaching five hundred confirmed cases of monkey fox. The city's health commissioners thanks that number will grow as testing ramps up. Well, maybe this time is the charm.

Jennifer Lopez and Ben Affleck were married Saturday in a late night Las Vegas drive through chapel, culminating a relationship that stretched over two decades and two separate romances and headline countless tabloid covers. Lopez and Affleck famously dated in the early two thousands, spotting the nickname Benefit, before rekindling

the romance last year. Global News twenty four hours a day on Aeron on Bloomberg Quick Take power by the twenty seven Hunter journalists and analysts more than one hundred twenty countries. I'm John Soccer, this is Bloomberg. You just wanted to say Benefit. This morning, didn't you John? Thank you absolutely? Six ten on Wall Street. John Stashower has

the Bloomberg Sports Update. All right, Nathan Rory McElroy has to be wondering what he got to do to win that elusive fifth career major, the Open Championship at St. Andrews. He had the full stupp board of the karate shot eighteen under Farland were bogey's the entire tournament none In yesterday's final round, he still blew up four start league Am Smith, the twenty eight year old Loss's simply out putted and ran off five straight druties to start to

back nine. Smith's twenty under tied the record for major. Tam Young, theo Westchester native who began the Open the sixty four, finished it with a sixty five out of the eagle on the par four eighteenh pold, so he finished second. McElroy was third two just funding because of five. This year's when some this year's going. I mean, I'm playing some of the best golf, but I've played in a long time, so it's just a matter of keep, you know, knocking on the door and eventually McIlroy still

hasn't one of major since two thousand, fourteen. Yankees hit the All Star K sixty four and twenty eight. Even with a bad week when they lost five out of six, they won the last two with the Red Sox by a combined twenty seven to three thirteen to two. Yesterday, Tim Locastro the unlike the hitting star three hits and home run. Garrett Cole struck out twelve for his ninth win. Metts seemed on their way. They was sweeping in Chicago, cub score twice in the eighth inning, won three to two.

Mets are fifty eight and thirty five, two and a half ahead of Atlanta. Year ago, the Mets with the tenth pick of the draft to Kumar Rocker Picture from Vanderbilt. Then they had injury concerns never signed him. He went back into the draft in a surprise. He was taken third overall by Texas. The sons of fuller major leaguers Matt Holliday and Andrew Jones were taken one two by Baltimore and Arizona. John Stashi, We're Bloomberg Sports, Nathan, thank you,

John SMP futures up thirty eight points. Stout futures up two D seventy three Nasdaq futures are higher right now by one hundred forty six points. You're listening to Bloomberg Day Bright Climberg eleven three oh. Weather cloudy today, some showers and storms developing by midday with highs in the low eighties. Will get near ninety tomorrow under mostly sunny sky. Mid nineties. Gonna be hot for Wednesday. Right now seventy six in Central Park