Bloomberg Daybreak: July 19, 2022 - Hour 2 (Radio)

That's story straight ahead. I'm John stas Shaller and sports Peter Alonzo dethroned Juan Soto won the home run derby m l A where the All Star Game takes place tonight. That's all strain ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius Exam one nineteen and around the world on Bloomberg Radio

dot Com and via The Bloomberg Business. Good Morning, I'm Nathan Hagar, and I'm Karen Moscow and US stock in Next Future is on the rise this morning. We're coming up to six oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg and SMP futures are up about twenties six points in Our futures up a hundred fifties seven and

Nastack Future is up about seventy three. The ten year Treasury Little Change yield two point eight percent, and they yield on the two year three point one six percent, and NIMEX screwed Oil is down three tenths of a percent. Nathan, Karen, we begin with a growing number of companies clamping down on hiring. It's a trend showing up in firms from tech to banking. Let's get the latest live from Bloomberg's

Rnda Young. Good morning, Rnita, Good morning, Nathan. Bloomberg. Sources say Apple is putting a lid on hiring to limit spending. Leaders have not adopted a company wide policy, but this more cautious approach mimics moves by Amazon and Microsoft, and it's more evidence that even Silica and Valley is worried about an impending recession. Now, Goldman Sachs also plans to

slow hiring to reign in expenses. CFO Dennis Coleman says Goldman could also reduce the pace of replacing staff it loses because of attrition and will reinstate annual performance reviews. Live in New York, I'm rened a young Bloomberg daybreak. All right, we need to thank you. We're also seeing a tepid outlook from another big name and tag. Shares of IBM or down about five percent in early trading.

The company has lowering forecast for free cash flow this year due to the impact of a strong dollar and the loss of business in Russia. Bloomberg's Charlie Pellett has more the revision overshadowed results the top analysts estimates, signaling the demand from mainframe computers, consulting, and cloud services remains strong amid concerns of a pullback in tech spending. IBM set of estimates free cash flow of ten billion dollars this year, at the low end of a previous range

of ten to ten point five billion dollars. Chief financial Officer Jim Kavanaugh said the reduced range is not a result of a broader business slowdown. In New York. Charlie Pellett Bloomberg, pay break, all right, Charlie, thank you. Earnings continue to roll in with ten companies in the SMP

reporting today. This afternoon, we hear from Netflix. Bloomberg's Tom Busby has a preview, well the keeper investors will be subscriber losses for the second quarter, which the streaming giant predicted good total two million in its previous earnings report in April, when it announced its first ever subscriber losses.

Also have note whether the blowout success of the latest season of Stranger Things may have helped Netflix keep some subscribers, and it's new crackdown on password sharing now when effect in five Latin American markets. Bloomberg and Census calls for earnings per share of two dollars cents revenues of just over eight billion dollars. Tom Busby Bloomberg, daybreak, all right, Tom, thank you. None of the latest, and Twitter's legal dispute

with Elon Musk. Twitter is dismissing Musk's complaints that he does not have enough information about space AM and robot accounts. The company calls it a relevant sideshow and wants a judge to hold a trial as soon as possible over Musk's cancelation of his forty four billion dollar takeover. Watching Bitcoin rise this morning, Karen, but it's off its highs for the day. In fact, earlier Bitcoin almost hit twenty

three thousand. The cryptocurrency has struggled to escape a nineteen to twenty two thousand range as investors licked their wounds from the recent route. Martin Chavez from six Street Partner says the time has come to finally regulate the crypto market. Regrettably, we usually wait until some calamity before there is regulation, and the questions always with this calamity big enough or does there need to be another leg down before we

have the appropriate regulation. Martin Chavez at six Street Partners made the comments in an interview on Bloomberg Television. We'll have more on the future of bitcoin throughout the day as the Bloomberg Crypto Summit gets underway in New York. Well. Turning to the global economy now, Nathan, pressure is building on the European Central Bank. Sources say the ECB may consider raising interest 's by more than expected this week

because the worsening inflation backdrop. Sources sat the central Bank may raise rates by fifty basis points on Thursday. That's double the twenty five point Hi get outlined just last month. Well back here in the US, Karen prices the pump keep dropping. In fact, they've fallen for thirty five straight days, hitting a two month low. Triple A says the nationwide averages just below four fifty a gallon prices have fallen more than ten percent. S it's hitting a record last month.

Climate Change and Focus at the White House Nathan President Biden is reportedly considering declaring a climate emergency as soon as this week. Details now from Bloomberg's Amy Morris from our ninety nine one newsroom in Washington. Senator Jeff Murkley of Oregon says climate legislation has no chance to get

through Congress. Instead, he says the president should use the full powers of the executive branch to declare an emergency, which would give him the authority to redirect funds for clean energy projects or restrict offshore drilling, and could even curtail the transport of fossil fuels. And Now sources they're telling the Washington Post that Biden is expected to announce additional actions aimed at curbing emissions as soon as this

week in Washington, I'm any Morris Bloomberg daybreak. All right, Amy, thank you. Let's turn to Capitol Hill now, where computer chips are in focus. The Senate wants to quickly pass fifty two billion dollars in grants and incentives for American semiconductor makers. Senate majority leader Chuck Schumer says Democrats and Republicans are hashing out the final details. The legislation is a scaled down version of a larger bill intended to

make the US technology sector more competitive with China. Supply chain issues are also in focus this morning, Nathan Treasury Secretary Janet Yellen is calling on so called to trust in to US allies to help fix the supply chain seeing in South Korea. Yelling called on US partners to strength and trade relationships with what she calls friend shoring. Freensuring is about deepening relationships and diversifying our supply chains

with a greater number of trusted trading partners. The purposes to lower risks for our economy, and there's tread race. Secretary Johnny Yellen singled out China as a country on which the US and others should be less reliant futures this morning on the rise, SMP futures up about thirty points down. Futures have a hundred eighty nine nsday futures up eight five Straight ahead, your latest local headlines, plus

a check of sports. This is Bloomberg. Thanks Karen six O seven on Wall Street, seventy three degrees in Central Parks. We get ready for a heat wave and we're still dealing with an accident investigation on the westbound Belt Parkway. More coming up in traffic. First John Tucker with more on what's going on in New York and around the world. John may feel a powerful thunderstore I was swept over in New York City yesterday afternoon, swamping highways, flooding trade lines,

casting the evening commune into sudden disarray. Heavy rains caused a massive sinkhole to open up in the Bronx and swallow a VAM. New York City is completed in the first phase of at one point four or five another project of fortifying a section of Lower manhapt along the

East River that was devastated by Hurricane Sandy. The East Side Coastal Resiliency Project will elevate park land along the East River stretching two point four miles, and temperatures in the UK set to hit a record today at Bloomberg's Advance that joins US now from sweltering London. Good Morning John.

Today is said to be the hottest day on record in the UK, with temperatures as high as one hundred and seven degrees fahrenheit's That follows the warmest nights on record, with temperatures no lower than seventy eight degrees in some places. Brutal conditions have already struck India, parts of the U S and Western Europe this year, but they are a particular challenge of places like Britain, which are not used

to extremes of hot or cold. In London, I'm you in Potspin, Big Daybreak and the January six Committee will be extending its inquiry. That story this morning from Bloomberg's head Baxter Cherry. Bennie Thompson says information keeps coming in. He says it includes a secret service text. First, he says the committee will put out a scale back interim report in September, which is when it was scheduled to end. He says now he will not predict a date when

the final report would be issued. The committee will hold another public hearing Thursday, and then Thompson says they will decide where to go from there. In San Francisco, I'm at Baxter Bloomberg Daybreak. It will take almost a lifetime seven decades for US colleges and universities to achieve racial

parody among its freshman classes. That according to a new studied by McKenzie and Company, they analyze data for more than three thousand institutions with enrollment of about two point four million first time students, enrollment among black and Native American students actually declined in some cases. Global News twenty four hours a day on air in a Bloomberg Quick Take, power by more than journalists and analysts in more than

one twenty countries. I'm John Tucker and this is Bloomberg. Nathan. Thank you, John six o nine on Wall Street time for the Bloomberg Sports Update, which on stas Thanks Nathan. It's ironic that Juan Soto won the home run derby in Los Angeles because he is very much in the news. The twenty three year old star of the Washington Nationals just rejected a contract offer of fifteen years and four

hundred and forty million dollars in. The Nats, who had been saying they were not going to trade Soto, are now entertaining trade offers. The Mets and Yankees both believed to be interested Soto's under his current contract until after the fourth season. By winning the Derby, Soto earned a million. He beat Seattle's Julio Rodriguez in the final. He won a half million. As a rookie, he only makes seven

hundred thousand from the Maritors. The one year old Rodriguez put on a show over the first two rounds with sixty three home run semifinal losers were the Mets Pete Alonso, the two time defending champ, and forty two year old Albert Pools, who was in the field in this the final season of his Hall of Fame career. Clayton Kershaw I headed the Cooperstown someday. Surprisingly, he's never four started an All Star Game. He'll be on the mound for the National League tonight in his home part. I really

didn't think anything of it at the time. I was like, well, yeah, I'll be fun to do it or whatever. But um, now that it's finally here and I get to uh, start that game tomorrow night. It just uh, it means a lot, and it means lots of my family, and we're excited. Charlie's excited, My kiddos are excited. So we're gonna we're gonna have a good time tomorrow and hopefully I don't screw it up too bad. Speaking yesterday, Tampa Bay, Shane McClanahan starts for the a L. There are six

Yankees on the a L roster. Aaron Judge and John Carlos Stanton will start in the outfield that mets. Jeff McNeil is the n L starting second basement soccer in Mexico, US over Canada one nothing the Clintsos spot in the Olympics. John Stashiaward Bloomberg Sports Nathan, Thank you John. Right now, SMP futures are up thirty points, STUFF futures up two D one, NASAC futures higher by eighty six points ten.

Your treasury is a little changed right now. The yield two point nine eight percent yield on the two year three point one six percent. More to come, including on Apple's high rings. Slow down with Bloomberg Tech columnist Alex Wab, This is Bloomberg Bloomberg eleven three oh weather sunny and

hot today, tomorrow and the next day. We're getting into a heat wave here with highs into the low to mid nineties right now seventy three and second part Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business app, and at Bloomberg Quick Take. This is a Bloomberg Business Flash and I'm

Karen Moscow. Stocks are stabilizing as investors assess the outlook for global growth amid Europe's deepening energy crisis, hawkish central banks, and slumping earnings estimates that all are swalling against all the BITS group at ten piers. US stock index futures, meanwhile, are higher in the wake of another reversal for the SMP five hundred yesterday on Apple's plans to slow hiring.

If you check the markets every fifth teen minutes throughout the trading day on Bloomberg Guess and p future is at thirty three points down. Futures have two hundred fourteen Nasdack features have ninety eight. The decks in Germany is it will change ten your treasury, that'll change yield two point nine eight percent. They yield on the two year

three point one six percent. Nine x Screute oil is down a tenth of upper cent or twelve cents, and a hundred two dollars forty eight cents of barrel Comic School is up a tenth of upper cent or two dollars. At seventeen twelve, twenty announced the euro one point to five two against the dollar, British found one point two zero two one and the end month thirty seven point to five six Bitcoin is at one point eight percent at twenty one tho eight hundred seventy dollars. That's a

Bloomberg business flush. Now here's John Tucker with more on moss going on around the world. John and Karen sent a Democrat searching the White House to the clear a climate emergency. The House committee investigating the January says attack on the Capitol, which had planned to finish its inquiry by September, will stead keep operating beyond that because more information keeps coming in at shun vowing to take a resolute and strong response to any Taiwan visit by House

Speaker Nancy Pelosi. Sports the National superstar Juan Soto winning the home Run derby at the Baseball All Star Game. And we have global news twenty four hours a day on here. Get on Bloomberg Quick Say Power by more than seven hundred journalists and analysts and more than one hundred twenty countries. I'm John Tucker. This is Bloomberg. Nathan Alright, John, thank you to six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg a daybreak.

Let's get back to our top story this morning, the growing trend in the tech and financial sectors, with now Apple adding itself to it, slowing hiring and spending. Let's bring back Alex Web for more on this. Bloomberg Quick Take anchor tech columnist for Bloomberg Opinion, Alex. As you know, we saw tech stocks lead the declines yesterday on that news from Apple. What kind of slow down could we

be looking at from the iphonemaker. Ultimately, this is the corollary of the inflationary environment that apples in the business of selling thousand dollars a pop electronic devices. As discretionary income gets increasingly squeezed, is easy to see how that might affect spending on Apple devices. Now we've seen the other tech companies cutting jobs, and that's largely been to do with the broader economic conditions, which mean that the

first thing companies cut is their marketing spend. Apple is a little bit different. It is very much to do with direct consumer appetites for their products. Yeah, so this is a raising the question in the market once again about not just the inflationary pressures ALEX, but whether we could potentially be heading into a recession here if we do start to see more of those consumers who have come to rely on iPhones and other products from Apple

not necessarily to upgrade as they're getting squeezed. Even further, we've seen over the past five six years a gradual all um increase in the amount of time that keep people keep their phones. Maybe five years ago it was only every sort of two years or so that people would upgrade to the to the latest hand set. That's now extended to three years, and the jet sensor, the general direction of travel is going further than that. Now.

Apple has managed to diversify its revenue quite substantially into services, you know, things like Apple TV plus, Apple Music, Fitness plus all these things where it gets more dependable income over longer period of time, and the other huge benefit of that is it ties consumers more keenly to their Apple devices. So there is still expectation that people will upgrade.

The risk of them churning into trading their iPhones for Android devices isn't necessarily any greater right now, but it's just generally that people maybe aren't going to be spending as much on electronic devices as a whole. So it's the thinking then that as Apple starts to think about what it's doing in terms of it's spending, that it's going to make another pivot one again from services or from goods to services as part of its overall strategy

that has been going at at at a real clip anyway. Um, they it's they're trying. Several years ago the revenue came from the iPhone. Now it's less than six so they have succeeded in doing that quite well. The other point that you can make here is, look, they are not freezing all spending. They are slowing spending in some divisions and slowing headcount um slowing hiring in some divisions. And you could also look at it as a way of sometimes companies use um these sort of economic environments as

a cover as an excuse, there's a reason to go. Actually, let's just rain things in a little bit. We've maybe got a little bit out of control over the past few years. I'm not saying that Apple has got out of control, but it is a good opportunity just to recalibrate, retrench, and not get the sort of massive blowback from your

employees that might otherwise be the case. With this in the context alex of what we've seen from other companies as they've been announcing slow downs in hiring and spending as well, particularly Netflix, is that getting ready to report earnings after the closing bell today. When you think about any of these companies, you look at the lifetime value

of your customers. And for Netflix, there had been an expectation in growing perception that it was really a utility that if anybody was interested in watching, you know, sort of televisual content, they would have Netflix and that was the base layer upon which you would then add other streaming services if you so desired. What we started to see is that's not necessarily the case. It is losing subscribers.

Um is. The expectation is that it loses two million subscribers globally the only region which will add subscribers is Asia. The inference of that, which is that's about one percent of their total subscribe account. But the inference is then that like maybe Netflix is discretionary spending, it is not a utility. And so you know, there's a function of the greater competition in that space, but which in turn then means that Netflix is content. Perhaps isn't as appealing

as people thought it was once. Yeah, interesting to think about the competition growing for Netflix, including from Apple TV Plus as they're dominating the news this morning with the reports of a hiring and spending slowdown over at Apple. Thanks for this, Alex, as always great having on with us. Alex web Bloomberg Opinion, tech columnist and anchor at Bloomberg

Quick Take course. You can check Alex out anytime Bloomberg dot Com, Slash quick Take Right now, SMP futures up thirty two points down, futures up two hundred five NASDAC futures higher by ninety seven points. The tenure Treasury right now little changed for a yield of two point nine eight percent. Yield on the two year right now three point one six percent. NIMEX crude moving a bit lower down a half percent, or of fifty six cents to

a hundred two dollars four cents a barrel. Just to add more on Apple's hiring and spending slow down and even higher interest rate hikes coming from the e c B this week. We'll tell you more about that as we get the five things you need to know to start or day. Just ahead on Bloomberg Daybreak Bloomberg eleven three oh weather sunny and hot, low nineties today, mid nineties tomorrow, mid nineties Thursday, with a chance for afternoon

showers and storms by then. Right now seventy three in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C, Bloomberg N one to Boston, Bloomberg one O six one to San Francisco, Bloomberg NOME sixty to the Country, Sirius XM Chado one nineteen and around the globe, the Bloomberg Business at and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. I'm Nathan

Hagar and I'm Karen Moscow. We are just about three hours away from the open of US training time for the five things you need to notice. Start your day broth to you by Interactive broker Simple ib k are Global Trader app. Deposit in your local currency and trade stock in the US, Europe and Asia. Start your free trial at ibk r dot com slash Global Trader. First, you begin with the growing number of companies putting a clamp down on hiring. It's a trend of showing up

in firms from tech to banking. They get the latest live from Bloomberg's Ranita Young, Good Morning Radia, Good Morning Karen. Apple is joining its fellow tech giants and putting a lid on hiring. Bloomberg sources say Apple wants to limit spending and job growth at some of its divisions, although leaders have not adopted a companywide policy. This more cautious approach mimics moves by Amazon and Microsoft. Meantime, Goldman Sex

also plans to slow hiring to reign in expenses. CFO Dennis Coleman says Goldman could also produce or reduce the pace of replacing staff it loses because of attrition, and will reinstate annual performance reviews Live in New York. I'm Rennita Young Bloomber Daybreak. We need to thanks sticking with tech. The war of words continues between Twitter and Elon Musk. The company's calling Musk complaints about spam and robot accounts and irrelevant side show. Twitter wants a trial soon over

must cancelation of his takeover Nathan and crypto markets. This morning, Bitcoin is continuing its rise, nearly touching twenty three thousand. Shila Warren, Crypto Innovation Council CEO, has more on the recent rally. You know that we're waiting for a calamity. I find that a bit dramatic. I mean, I think we've seen a number of cycles and waves in this industry.

And I've been in this space for seven years now, and this is not the first time we've seen a big crash followed by a quick rally, and I think that we are starting to see a little bit of that rally starts to happen and marketsing were confidence in these alternative assets. Crypto Innovation Council CEO Shila Warren spoke

to Emily Chang on Bloomberg Technology. Catch Emily's daily Bloomberg Tech podcast week nights wherever you get your podcast overseas, Karen, Treasury Secretary Janet Yellen's taking David Beijing, singling out China as a country on which the U S and others should be less reliant. We cannot allow countries like China to use their market position in key raw materials, technologies, or products to disrupt our economy or exercise unwanted geopolitical leverage.

Speaking in South Korea, Treasury Secretary Yellen also called on trusted US allies to help fix supply chain issues and over in Europe, today, government bonds flipped to losses in response to headlines on the European Central Bank sources telling Bloomberg the ECB may now consider a half point rate hike this week. Johnson and Johnson lowering its forecast for the year. That just crossing the Bloomberg. It did beat analysts estimates for second quarter earnings and shares up one

percent in early trading. This is Bloomberg, all right, Karen, thank you. Six thirty three on Wall Street, seventy three degrees in Central Park. Could see some lingering delays on the belt Park Bay, but they've cleared the accident investigation in Pennsylvania Avenue we'll tell you more in Traffic First. John Tucker has more on what's going on in New York and around the world. Good morning, John, and good morning Nathan. Senate Democrats are urging the White House to

to clear a climate emergency. Such a move would get President Biden broad to get authority to redirect fonds for clean energy projects a restrict offshore oil drilling. It comes as Democrats dismiss any optimism that a climate change package could be moved swiftly through Congress come September. A funding agreement's been a reach for the multi billion dollar redevelopment of New York's Aging Pan Station. That story from Bloomberg's Jeff Bellinger. It is the country's busiest rail hub and

in dire need of renovation. The plan would create new commercial and residential buildings around the station, with those buildings developers getting to make payments in lieu of taxes for a period of forty to forty five years. The amount collected in excess of existing property taxes would be applied to the project. The plan calls for a large, single level train hall with higher ceilings and a four hundred fifty foot long skylight to replace the current cramped, windowless interior.

Jeff Bellinger, Bloomberg, Neigbring How Speaker Nancy Pelosi plans to make a landmark visits to Taiwan next month. That story in this report from Bloomberg's Amy Moore is The Financial Times reports Pelosi will lead a delegation to Taipei in August. It comes despite Chinese warnings that the trip could escalate

tensions between Washington and Beijing. At the same time, there are talks by top aids to President Biden and Chinese counterpart Sheejinping in preparation for a possible conversation between the two leaders. China has ramped up military activity around Taiwan to signal its displeasure with past high profile visits. No sitting US speaker has visited Taiwan since Newt Gingrich traveled

to the island, and in Washington. I'm anymore as Bloomberg Daybreak, Global News twenty four hours a day on raighthand on Bloomberg Quick Take or Power by more than twenty seven hundred journalists and analysts and more than one twenty countries. I'm John Tucker, and this is Bloomberg. Nathan all Right, John thanks a lot. It is five on Wall Street. Time to check the Bloomberg Sports Update with John stash Our.

All right, Nathan. The Baseball All Star Game tonight, Dodgers stayed in where they had the home run derby last night. Seven guys in their twenties plus forty two year old Albert Pooles, who was in the final season of his career. He upset the top seed Kyle Schwarber in overtime, but then lost a Juan Soto, who then knocked off Seattle rookie Julio Rodriguez in the final. Rodriguez literally half who holds his age. He was amazing over the first two rounds,

belting out thirty two and thirty one homers. He ded throned the Mets Pete Alonso in the semis Alonzo denied a home on derby three pet that twenty three year old Soto wins a million dollars just after he rejected a contract offer from Washington for four hundred and forty million over fifteen years. ESPN reported last night the Nationals are now expected to trade Soto before the upcoming deadline.

The Mets and Yankees both interested. Three Mats six Yankees on the All Star rosters for tonight, Aaron Judge got the most votes of anyone. That's a pretty big honor. Chose it. You know a lot of fans support too, and um, yeah, I wouldn't. I wouldn't be here without their cons of support, you know, motivating me to go out there and do my best. You know, they're They're

who I played for. You know, it's the fans, you know, always, you know, I want to go out there and um, you know, leader all on the field for them, so you know, and that's not free. Special honors Danny Pitchers tonight, Tampa Bay, Shane McClanahan and the American League. Clayton kersh Off of the NL in his home park. Mark McGuire's son, drafted in the eighth round by the Phillies. He's a high school pitcher in California, may instead go to college.

Talks broke down. There will not be a merger between the Big twelve and Pack twelve conferences. Tom Stash, We're Bloomberg Sports, Nathan Okay, John, thank you. Six thirty seven on Wall Street time down to take a look at stock some of the names moving in the pre market for that returned to Bloomberg Radio on TV. Markets correspondent Crety Gupta create Karen just mentioned the earnings from Johnson and Johnson crossing the Bloomberg terminal moments and go. Very

interesting investor reaction to them. Very interesting investor reaction. The shares are up about one percent in the pre market. J and J is your taker. But check out what's actually underneath the hood here, pretty solid growths. Total sales growth about three percent, operational growth about eight percent, and if you even adjust that, it goes up to eight point one percent. So a lot of good news there. Medical devices worldwide sales grew three point four percent, pharmaceuticals

to up twelve point four percent. Basically across all of their kind of growth platforms, you are seeing um an increase in their sales. Here's what you're not seeing confidence that this is going to continue, the idea that by the end of the year you're going to see the same kind of momentum. So in fact, they actually trimmed their full year Outlook, I'm not actually citing some of those dollar pressures. Remember a lot of these sales are counted as worldwide sales, it's not just here in the

United States. So I think it's interesting Nathan that here we are talking about Johnson and Johnson alongside the likes of Microsoft, Nike McDonald's about the pressures that you're seeing with the dollar in particular, and they just cided that it's one of the reasons they trim their outlook. Yeah, very interesting to see that as well. And we've got

a lot of tech headlines crossing this morning. We've been talking, of course about the Apple story, but it looks like China's probe to uh, their answer to Uber maybe coming to a big close here. It is coming to a big close. And this is interesting the Wall Street Journal reporting here that d d is going to get fined.

I believe it's one billion dollars. Uh. This is huge as we of course, we know that for a very long time we were seeing a lot of scrutiny for Chinese tech in particular, but it was there was kind of this relief built into the market, the idea that a lot of these Chinese A d R s and likes of j d Ali Baba for example, well they were all going to perhaps get a little bit of an easier um treatment for lack of a better term,

from China. The idea here being that that regulatory scrutiny was driving so many foreign investors away from some of these companies. That seems to at least have gotten some investors back into Chinese a d R. So, for example, Ali Baba Shares b A B A that's actually up a five cents of one percent, but DD we know

has already been delisted from the U S market. Nevertheless, watched the space because here's where you can perhaps see some read through into some of the other a d R s um just based off the idea that d D is find one billion dollars in our last thirty seconds or so. Here, how's Netflix doing ahead of earnings today? Oh, this is such a widely watched event, not just because Netflix is this major tech name, but also because this is kind of a proxy for what you're going to

see with the broader economy. Are people going to continue to spend on those subscriptions. Well, it looks like there's a little bit of optimism baked into the market at the moment. N f l X is your taker up one and a half percent in the pre market. This is important as we talk about simply how much of their ad based businesses are really gonna start picking up.

Remember this was one of the main sticking points that their last earnings call, that they are now going to pivot from having commercials into their business and ads, and that's how they're going to make up some of the revenue that they're getting or losing, i should say, from some of their content production. How they're going to do and how successful that strategy is we'll find out today. Yeah, it's going to be a very interesting call after the

bell this afternoon. Bloomberg Radio on TV Markets correspondent creating cooped up with us as always in the pre market, looking at stocks as a whole. Future are surging right now. SMP futures up thirty six points, that's a gain of almost one percent. DAL future is up two and thirty two. NASTACK futures higher by a hundred fourteen points, that is

a gain of about one percent. The tenure Treasury is now down one thirty second yield two point nine nine percent on the benchmark tenure Note this is Bloomberg Bloomberg eleven three oh weather tempt surging two will be in the low nineties today, mid nineties tomorrow and Thursday. Welcome to the heat wave 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 Quick Tape, He's a Bloomberg Business lash and I'm Karen Moscow. Futures are on the rise this morning. We go to the First Word breaking news desk for today's morning call, and here's Big Bill Maloney. Bill, good morning, Good morning, Karen. That's right. US futures with a bid

right now. It's deat features of two hundred twenty point, says he's game thirty five and nas like futures rise by a hundred and ten US ten year old at two point nine nine percent, Gold is up five, oil is in the red, and Bitcoin is higher by one point seven. Shanghai was a little changed overnight, while up and markets are posting modest games this morning. And back in the US on the Economic Funday thirty housing starts

after the LS night. IBM cut its annual forecast for free cash flow due to the strong dollar and regarding earnings this morning, and J and J Lord its guidance due to the dollar's strength. In other news, Bank of American's Global Fund Manager survey shows that investors are in full capitulation and wrapping things up. X on Mobile was raised to overweight O. Brad Piper Live from the First

Breaking News Desk on Bill Maloney. Karen, all right, Bill, thank you, and here like breaking news over your Bloomberg type squawk on your terminal squ a w K and that's a Bloomberg business flash. Now here's John Tucker with more on what's going on around We're all John, Good morning, Karen.

Senate Democrats urging the White House to declare a climate emergency, such a move who would give the president broad executive authority to redirect funds for clean energy projects, and the House Committee investigating the January sist attack on the U. S Capitol, which had planned to finish its inquiry by September, will instead keep operating beyond that date. And China vowing to take a resolute and strong response to any time

on visit by US House Speaker Nancy Pelosi. Sports the Washington National Superstar Jun Solo winning the home run derby the Major League Baseball All Star Game. Global News twenty four hours a day on air, yet on Bloomberg Quick Take powered by more than twenty seven hundred journalists and analysts in more than one twenty countries. I'm John Tucker, and this is Bloomberg. Karen, all right, John, thank you,

and it's sixty nine on Wall Street. Returned to news and science and technology Now with the Bloomberg and J I. T. Stammerport brought to you buy New Jersey Institute of Technology, a ranked top fifty national public university by US News and World 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 now Here's just making news and science, technology, engineering and math. In China, the

number of new cases of coronavirus increased. Nearly seven hundred infections are reported Monday, the highest number in almost two months. More infections, straight, more infectious strains of the virus are testing China's hardline approach as outbreaks spread beyond major cities. A drive in the Senate to quickly pass fifty two billion dollars in grants and incentives for American semiconductor makers

has picked up steam in Congress. Senate majority leader Chuck Schumer says the Democrats and Republicans are hashing out the final details. The legislation is a scale down version of a larger bill intended to make the US more competitive with China in technology, and the Pentagon says the US will spend one point three billion dollars to develop advanced satellites that will be able to better track hypersonic missile threats.

Hyper Sonic weapons are defined as anything traveling beyond mac five or five times faster than the speed of sound. That's about thirty eight hundred miles per hour. And as a Bloomberg and j I t Stem report, Nathan Okay, Karen,

thank you. We're live from the Bloomberg Interactive Broker Studios or at six fifty on Wall Street Time Now to check what's going on in d C. Some of the top stories in our nation's capital include that Chip's bill picking up steam in the Senate, also making new Senate Democrats urging President Biden to declare a climate emergency, witnesses set for the next January six prime time hearing, and China warning of a grave impact if how Speaker Nancy

Pelosi visits Taiwan. Let's bring in Bloomberg Government reporter Emily Wilkins for more on all these stories. Emily, good morning. Let's start with what we're hearing about, the idea that President Biden could think at least about declaring a climate emergency, even as we see this red headline cross the Bloomberg Terminal from the UK that the temperature there has hit its highest level on record. This is obviously not just

a political issue. It's a real life issue. I mean, Nathan, I feel like headlines like this, they've just become so much more commonplace in recent years, hearing about these high temperatures, these big disasters, these reports from climate scientists saying that that time is running out and that urgent action is needed now. For a while, Democrats were staking their hopes on that reconciliation package they'd be able to pass hundreds

of billions and tax credits for clean energy. But ever since Senator Joe Manson said that that can't be a part of the package for now until he sees inflation go down, Democrats have decided that their next strategy is going to be turning to President Biden and seeing if he can use his executive powers to declare a climate emergency. Now, remember presidents do have these emergency powers. We saw a former president Trump used them to sort of fund that

border wall between the US and Mexico. The idea is that Trump sorry Biden rather could use a climate emergency to do things like restrict off short drilling, redirect funding for clean energy product and wholt crude oil exports. Now, the White House has said that they're still looking at this decision idea, that they haven't come to a decision yet and don't have any plans for an announcement at this time, but the Washington Post an announcement could come

as soon as this week. Um. Democrats really don't have too many more options for what they can do from a legislative stance, and they think that they need to do something and do something big so that their supporters will realize how serious they are about addressing climate change and hoping that that will be reflected in the numbers

that we see come out for the mid terms. Yeah, it's interesting, also, Emily, to see the President thinking about making a declaration like this when he's just come back from very hot Saudi Arabia looking for some concessions there on boosting fossil fuels. It's a really interesting dance that

the President is trying to play here. Yeah, it just shows the fact that you've got multiple pressures on Biden right now that he's trying to live up to the campaign promises he made to address climate, that he's trying to address the long term issue of climate, but in the short term, you can't deny that many Americans are being hurt as a as a result of these high

gas prices and the subsequent inflation for it. And so you're really kind of in this this situation where you have to try to vote be addressing both the short term and the long term at the same time. And that's really leading to some of these pressures that we're seeing on Biden and kind of this as you mentioned that this dance between today we're going to be focused on, you know, increasing oil production and today we're going to be focused on the environment and clean energy policies. Or

there's a lot going on in DC. So let's get a progress report real quickly on the Chips bill in the Senate. Could that get passed this week? Um? So, there will be a procedural vote today and then there's another procedural vote later this week. We might be able to see things expedited, but I think at this point, UM, it's not quite clear it will either be this week or next week for passage, assuming of course that we do have the vote to go forward. That's looking good

at this point. There's a lot of support for this bill on both sides of the aisle. Remember, they've parted way down from that initial bill that was focused on US manufacturing, research, development, and competitiveness against China. So right now you're just seeing a focus on this piece that has more than fifty billion dollars going towards semi conductors and producing those in the US. You've also seen House leadership say that they are ready to move that bill

through the House as soon as it comes. And while there's certainly disappointment that there are many aspects not in that overall bill, UM, right now that the sense is

that this is something that needs to happen quickly. Interesting to note, though, that you are seeing some opposition from the Wall Street journals up ed Board noting that you know, this industry is not where it was a year ago, that they have had time to double up on supply, that it's come closer to meeting demand, and they exactly suggested that this bill would basically amount to corporate welfare. UM so an interesting to see if that will wind up playing a role in this debate at all or

keep some members from voting to support this. We also have a lot of developments with the House. January six, committee witnesses set for what may not be the final live hearing. Yeah. This is the thing mate, that I mean, they do these live hearings, they get a lot of attention, and then more people come forward, and you've seen this

really impact the committee's schedule so far. And now they're even saying that their final report, which they we were expecting around September, could be even pushed back later than that. You've got this primetime hearing that's going to be coming up on Thursday. Bloomberg is gonna be covering it, so

make sure you tune in. But we've got, uh, we now know at least two of the folks will will be hearing before the committee, Matt Pottinger, a former deputy National Security advisor, and Sarah Matthews, a deputy Press secretary. Both of them resigned from the White House after the assault on the Capitol, meaning that they could have really an inside luck at what was happening in the White House on January six, which is going to be the

focus of the January sixty's next hearing. And finally, Emily, we're getting some response from China to a reported visit coming up from how Speaker Nancy Pelosi to Taiwan. Yeah, China is not particularly pleased about this. I mean, if you remember what happened a last time that Pelosi announced to trip back in April, you heard Chinese Foreign Minister Yang e Uh say that this was a malicious provocation

into China's sovereignty, a gross interference inferience and international affairs. Um. This would be the first trip of a Speaker of the House to visit Uh Taiwan since a New Game Ridge win more than twenty five years ago. UM. And this is coming out a time where you have heard these discussions between Beijing and Washington. It seems to be building toward another call between President Biden and President she Um.

But at this point it remains to be seen what if any impact a trip from Pelosi would have to the region and how China would respond. All right, thank you as always, Bloomberg Government reporter Emily Wilkins joining us from the nation's capital. Read more about these stories on Bloomberg dot com or on the Bloomberg terminal, and listen to Bloomberg Radio in Washington Bloomberg and one oh five

point seven FM HD two where assembly mentioned. We will have coverage of the prime time hearing of the House January six Committee coming up Thursday evening eight pm Wall Street Time. Tune in live right here on Bloomberg Radio. Right now. SMP futures are up thirty two points, staff futures of two eight, NASTAC futures up a hundred four points ten Your treasury little change the yield two point nine eight percent yield on the two year three point

one six percent. Bloomberg Surveillance is next to Tom Keene, Jonathan Farrell, and Kaylee Lines and Felisa Brahmowitz for Karen Moscow. I'm Nathan Hagar. This is Bloomberg