Bloomberg Daybreak: July 20, 2022 - Hour 1 (Radio)

Tucker Bore Straight Ahead. I'm John stand and Sports making nine straight All Star Game victories with the American lad the Yankees. Dian Carlos Stanton was the m v P. That's All Train Ahead on Bloomberg day Break on Bloomberg eleven three, on New York Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, and Francisco Sirius XM one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business App.

Good morning, I'm Nathan Hagar and I'm Karen Moscow. US Dock index futures are higher. This morning, we are coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg right now, must In the futures up five points down, Future is up twenty three, and Nastack Future is up twenty nine. The decks in Germany is up a tenth of uppercent. Ten year Treasury up ten thirties seconds, yield two point nine eight percent, and the yield on

the two year three point one eight percent. Nine Max Screwed oil is down eight tenths of uppercent. Nathan Well Karen futures are adding to yesterday's gains on Wall Street, which are the biggest in three weeks. It was a broad based rally, all eleven industry groups in the SMP five hundred advanced. John Baranko is Chief Investment Officer of

Fundamental Investments at all Spring Global Investments. I think we're in a transition period here, and then the market really is in media evidence really and I think evidence that inflation is speaking, evidence that um, you know, we're moving down a path of hopefully towards a you know, a soft landing. John Baranko at all Spring Global Investment says he's looking for companies with strong balance sheets that are able to weather tough economic conditions. Well, Nathan, earnings optimism

is helping fuel this morning's gains. Netflix shares her up six and a half percent in early trading after subscriber numbers came in better than estimates. To get this story from Bloomberg's Ternley Pellet, The leader in paid streaming TV, says it lost nine hundred seventy thousand subscribers in the second quarter, less than half what Wall Street feared, thanks in large part to a new season of Stranger Things, the services most popular English language series. This quarter, Netflix

expects to sign up one million subscribers. While that is well short of the one point eight three million analysts forecasts this period, it reverses the losses of the first half. In New York Charlie Pellett Bloomberg Daybreak, Charlie, thank you, and earnings continue to roll in. With nearly seventeen companies on the SMP reporting today, we get results from Tesla after the closing bell here. The preview is Bloomberg Jeff

Balinger Bloomberg Intelligence. As Tesla's fundamentals relative to its peers are strong, and the company's credit rating could be moved to investment grade. But lockdowns in China had an impact on vehicle production, and Tesla is heavily invested in bitcoin. Its bottom line may include a charge of nearly three quarters of a billion dollars related to the plunge and the price of the cryptocurrency. Jeff Bullinger, Bloomberg Daybreak. All right, Jeff,

thank you well. Tesla has been a longtime favorite of investor Kathy Wood, and her funds have felt the pain as Tesla shares fail from their November peak. Now we're this morning Wood is closing down whatever exchange traded funds. We get the latest line from Bloomberg's Rainy to Young. Good morning, Rainy down, Good morning, Karen. A regulatory filing shows Kathie Wood is shutting down her ARC Transparency et F. The fund gained only twelve million dollars in assets since

it launched at the end of last year. That's a fraction of the nine billion dollars in woods flagship fund. It contains holdings like Teal, Duck and Spotify, and was aimed at investing in companies that received high scores on transparency. Transparency Global which shaped the funds underlying portfolio, will stop calculating the index at the end of July. Live in New York. I'm gonna need a young Bloomberg daybreak. We

need to thank you. Bitcoin is trading at a one month high this morning right now at about twenty three three hundred, but that's a far cry from November's peak of nearly sixty nine thousand. Billionaire investor Mike Nelvigrats weighed in on the sell off at the Bloomberg Crypto Summit in New York. What I don't think people expected was the magnitude of losses that would show up in you know, professional institutions balance sheets, and that caused the daisy chain

of effects. It turned into a full fledged credit crisis. Mike Nelvigrat says regulators should do more to protect crypto investors and called for more transparency in the industry. Well, turning to the economy now, name then expect higher interest rates for the foreseeable future, and that's according to Blackstone. We come up with Joseph Zeidel, chief investment strategist at

Blackstones Private Wealth Solutions Group. I think that inflation is more deeply entrenched in the U S economy, and it's going to require the Fed to take interest rates higher and the tightening cycle longer. So my own view is that Fed fund raids could exceed four percent. I think they could go above four and half percent. Make it close. Blackstone Private Wells Joseph Zeidel expects the Fed to hike

by seventy five basis points at next week's meeting. Like the U S. Karen, inflation continues to be a major problem in Europe, and fresh data show the UK still struggling to tame prices. Let's go live to London and get the latest with Bloomberg's U and Potts. Good morning Human, Good morning Nathan and Karen. A fresh forty year high for UK inflation. Consumer prices rose nine point four percent in the eighth of June, driven by surging prices for

motor fuel. The pain only sets get worse, with inflation forecast the top eleven percent in October, when another gas and electricity price hike is jew. The banking and has already increased rates five times since December and Today's day to Well, that's to calls for a jumbo hike at the bank's next meeting in London. I'm you and paults in back day break, are you and thank you all back here in the US, President Biden plans to take executive action to tackle climate change. With his clean energy

agenda stalled on Capitol Hill. The President will outline his steps later today at a shuttered coal fire plant in Somerset, Massachusetts. He is not expected to clear a climate emergency bu Bloomberg Politics A contributor Rick Davis says he doesn't have to. There are many things he can do around pollution from cars, and and and and and put a little uh pressure on Joe Mansion by you know, talking about doing some

things around coal and gas fired power plant regulation. So I think he could bring him along to the negotiating table if he wants to put some heat on Mansion and Bloomberg Politics contributor Rick Davis says, we'll have more on this presidential announcement in just a few minutes. Bloomberg's and Mastery is at the event and joins us a live in just a few moments. In the meantime, Karen

futures are moving higher. We have SMP futures up seven points, down features up forty three, NASTACK futures higher by thirty six points. Straight ahead your latest local headlines and to check off sports. This is Bloomberg five oh seven on Wall Street, eighty degrees. Already in Central Park, tend to fifteen minute delays on the upper level George Washington Bridge after overnight construction. Saying more about that in traffic First.

John Tucker's trying to stay cool in New York. Good morning, John. We'll forget about taking a swim as the heat wave grips the city. Everyone's been ordered out of the water on Rockaway Beaches. Sharks were seeing probably the area lit here. City Police department has been doing flyovers to look for any threats, and parks officials say they'll reopen the beach when it's safe to do so. A handful of recent shock attacts on Long Island beaches against a tourists, a surfer,

a lifeguard. They've caught the attention of swimmers and officials. Trump endorsed candidate has when the closely watched Republican primary for governor in Maryland. That story this morning from Bloomberg's Amy Morris. Dan Cox won the Republican primary and the race to replace Governor Larry Hogan of Maryland, a race that became a proxy clash between former President Trump and Hogan,

a potential GOP presidential candidate. Trump had endorsed Cox, while Hogan, who can't seek re election because of term limits, backed Kelly Schultz, who served in Hogan's administration. Cox will face the winner of the crowded Democratic primary. Cox organized bus loads of Trump supporters to attend the Stop the Steel rally before the assault on the US Capital in Washington.

I'm Amy Moore as Bloomberg Daybreak, New York. Represent of Hockey, Jeffries says former President Trump announcing another run for the White House before the mid term elections would be a boon for Democrats and a disaster for Republicans. Jefferies is the Chairman of the House Democrat to concuss, former Secretary of State Henry Kissinger has the words of advice for President Biden regarding relations with China. That story from Bloomberg's

and Baxter. Kissinger, of course, was Richard Nixon State Department later during the time of Ping Pong diplomacy with China. Kissinger tells Bloomberg's editor in chief John mickel Thwaite at the Intelligence Squared event it is important to prevent some of China's actions, that it's a permanent determent, that it's not something that can be a chief uh endless confrontations.

Kissinger says today's world needs flexibility. In San Francisco, I'm at Baxter Bloomberg Daybreak and former New York City mayor built a Blase it was dropping out of the crowd of Democratic primary race for the open seat in the state's redrawn tenth congressional district. He says, it's clear people are looking for another option. Global News twenty four hours a day on here and Bloomberg Quick to Power by more than twenty seven hundred journalists and analysts and more

than one who to twenty countries. I'm John Tucker. This is Bloomberg, Nathan. All right, John, thank you, coming up to five ten on Wall Street. Time for the Bloomberg Sports up. Take the morning, John Stash Morning, Nathan. There was a long period with the National League dominated the Baseball All Star Game one twenty of twenty one back in the nineteen sixties and seventies, but lately the American

wig has at its way. Last night in l at the n L jumped in front two ones in the first inning, but failed to score again, and the y L did damage in the fourth swing. High fly ball, trill, forget it way back out to left center failed and that is tall. Oh my goodness, he crushed it. John Carlos Stanton deep into the pavilion and left center field at the American League. With one swing is tied it up.

It's too two. As Stanton goes KEYSPN had to call the Stanton homer travel four hundred and seventy five ft longer than any home run hit at Dodgers Stadium this season. Next batter was the Twins Byron Buckston. He hit a solo shot that was it for the score. The a L one three to two has now one on nine All Star Games in a row, twenty one of the last twenty five. Stanton in l a native, was the m v P third Yankee to win Derek Jene in two thousand, Marianna Rivera in two thousand thirteen. Aaron Judge

struck out twice. Jose Trevino had a base hit. Nestor Cortez pitched the sixth INNT. Clay Holmes got two out of the eighth for the Mets. Jeff McNeil o for one also got hit by a pitch. Peter Alonzo was up once into a walk. Miles Bridges was Charlotte's leading score this past season. It's clearly a free agent. He's now facing three felony counts of domestic violence, excused the

assaulting his girlfriend. Still no no, no word on how long the suspension Cleveland quarterback to Shaun Watson will get. But there's now a report it's expected to be eight games for sexual misconduct. That was earlier reporting it would be the entire season. John stash Award Bloomberg Sports. Okay, John, thanks right now. SMP futures are up seven points. Stown futures up forty seven. NASTAC futures are highed by thirty seven points. The ten year treasury is up ten thirty seconds.

Yield two point nine eight percent, yield on the two year three point one eight percent. You're listening to Bloomberg Gabri Bloomberg eleventh three O weather heat advisory from noon

today till eight tomorrow nights. You could see an isolated shower storm today with esteer nine degrees right now eighty already in Central Park markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quicktake, This is a Bloomberg Business Flash and I'm Karen Moscow stocks are inching higher image speculation that the worst of this year's equity route maybe over, even as concern over the potential for a

global downturn sparked by hawkish central banks lingers. We get the market. We get a check on the market's every fifteen minutes throughout the trading day. On Bloomberg s and P Future is higher this morning, up about eight points down. Future is at forty six. Snazdack futures up thirty six. The decks in Germany is up four tenths of a percent. The tender Your Treasury of nine thirty seconds held two point nine eight percent yield on a two year three

point one eight percent. NIMEX Screwed oil is down one point one percent on a dollar nine at a hundred three dollars thirteen cents of arrol comics go down to ten percent or two dollars eighty cents at seventeen thirty announced. The euro one point two four six against the dollar. British found one point to zero one nine and again one thirty eight point one four and Bitcoin this morning it's higher, up nine tenths percent at twenty three thousand,

five eighteen dollars. That's a Bloomberg Business Flash. Now here's John Tucker with more on what's going on around the world. John, Good morning, Karen. President Biden sent to announced executive action to confront climate change. Russian President Latimer Putin signaling Europe will start getting gas again through a key pipeline. And Dan Cox wins the Republican primary and the race to replace Governor Larry Hogan to Maryland, a race that became

a proxy clash between former President Trump and Hogan. And it's sports. The Yankees Gin Carlos Stanton named the All Star Game m v P of the American League Beach the National League Global. It was twenty four hours a day on Aaron on Bloomberg Quicktake. We're powered by more than twenties of one hundre journalist and analysts in more than one hundred twenty countries. I'm John Sucker, and this

is Bloomberg. Nathan John, Thank you. It is five nineteen on Wall Street Live from the Bloomberg Interactor Broker Studios. This is Bloomberg Daybreak and we are watching for President Biden to take executive action to tackle climate change. He is expected to do so later today in a visit to Somerset, Massachusetts, where we find Bloomberg's and Moss Do this morning, joining us live ahead of the President's announcement in Somerset, and good morning. Great to have you with

us this morning. So what do we know so far about what the President plans to say where you are this morning? Well, Nathan, the President plans to talk about climate crisis, how a clean energy future might create jobs, lower costs for families. This is gas prices remain, how he's expected to announce some support in terms of heating

for low income families, and his support for offshore wind. Now, the sight he is coming to in Somerset is far from the idyllic New England beachfront community you might be picturing. This is a small town just next to Rhode Island and they have an enormous vacant lot by the ocean called Brayton Point, which was a power plant plant. It was a coal power plant up until when it was completely demolished, and it's now three D seven acres of

just rubble. Now, Biden's going to come and visit this, and there is in the works, but far from ready, a manufacturing facility for offshore wind here as there are three projects in Massachusetts that are under review right now. So interesting backdrop to sort of showcase the energy transition that the President says he would like to see here.

But I guess a lot of the reason why he's making this of and is because he's had trouble getting his clean energy spending agenda moving forward on Capitol Hill. That's exactly right, Nathan. He is under a pressure to declare a climate emergency after his agenda stalled in the Senate again last week. Now, this is largely impart Democratic West Virginia Senator Joe Manchin saying he would not support additional measures to combat climate change. Now, the climate emergency declaration.

There was talk that Biden would make that today in Massachusetts, but the White House has said he will not. It would empower him to be able to do more administratively to curb emissions. But there are a lot of politicians who say it's not the right tactic, that declaring a national emergency is not the right idea. Um, no one's ever done that before. No president has ever done that before, not in terms of a climate emergency, I guess. But we have seen to be fair executive actions taken many

times on other issues in the past. So what's the thinking at the White House about why the President shouldn't make that step, at least not at this point. Well, that's a really good question, Nathan. I mean, you're right, there have been dozens of national emergencies declared by presidents since the seventies, but never for the purpose of climate change. UM. I think that there's still hoping, perhaps hopeful that Mansion

will change his mind. Um. But there is a lot of pressure also coming from Senator Elizabeth Warren Um, the Democrat from Massachusetts. She's also been calling for this national emergency. Um. It's not clear why the White House is stalling on this if they're actually going to do it. And it's interesting that the President is making this announcement at a time when we are experiencing a pretty significant heat wave.

I mean, it's hot here in Washington, d C. And in New York City, and no it's getting quite warm in Boston as well. It's going to bring even more of a fine point on the issue for the president. I would imagine, Yes, that's exactly right. We're in the middle of a major heatwave here. It's been in the nineties this week. I know that's not much compared to the rest of the country, but in Massachusetts that's pretty hot. And UM, I think that that again creates this visual

backdrop for him. You know, you've got part of Biden's family on Nantucket right now, his wife Jill and UM other relatives, and then he's going to what really is sort of an apocalyptic looking stretch of land that is very slowly transitioning to renewable energy, and UM hoping that these developers do indeed follow through with their plans to create these offshore wind cables at this site and then put up these three offshore wind farms off the coast

of Massachusetts. There's already one off the coast of Rhode Island, I should mention off of Block Island, UM. And so the deep water port, the hot weather, it's all very visual opportunity for Biden to show action when people really are still very much struggling with prices and and air

conditioning prices at this point. Yes, certainly are and it's gonna be interesting to hear as well what the President has to say in terms of the kinds of projects that you're alluding to that could benefit from the announcement that we are expecting later today from the President that he will be taking executive action to tackle climate change, and as the White House terms it, to create clean energy jobs as part of the action that the President

is expected to announce. And mos do Bloomberg News correspondent with us this morning from Somerset, Massachusetts, and our listeners in Boston can catch live coverage from and of the President's announcement. It's coming up on Bloomberg based State Business or three to six pm on Bloomberg one oh six one Boston, Newburyport and HD two. Looking ahead to the market open on Wall Street, SMP futures are up six points, Staff futures up thirty nine, Nasdaq futures higher by thirty

one points, adding to yesterday's rally. Will tell you more about that just ahead, the biggest rally in three weeks for stocks actually, and we continue to watch Netflix after it could have been worse subscriber loss. Top stories of the morning just ahead on Bloomberg Daybreak Bloomberg eleven three oh weather heat advisory from noon today till eight tomorrow night, and we're not expecting much of a break god Friday highs for the rest of the week in the load

of mid nineties. Right now eight in Central Park, broadcasting live from the Bloomberg Interactive Brokery Studio in New York. Bloomberg E Living Freedom to Washington, d C, Bloomberg on to Boston, Bloomberg one O six one to San Francisco, Bloomberg nong sixteen to the country, Sirius XM Chad A one nineteen and around the globe the Bloomberg business in Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five

thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow, and we are just about four hours away from the open of US trading. Let's get you up to date on the news you need to know. At this hour, US futures are adding to yesterday's gains on Wall Street, which were the biggest in three weeks. Still, Sherry Paul, senior portfolio manager with Morgan Stanley Private Wealth,

says the markets remain uncertain. Clients I think are feeling very data overwhelmed, and the greatest threat to portfolio returns is in decision. So right now, what we're advising clients is to go right down the middle of this market. Do you want to plan for inflation being structural and owned sectors of the market that actually benefit from the reflationary stories. So that would put you in financials and energy stocks. And Sherry Paul with Morgan Stanley Private Wealth

says investors should remain active despite volatility. When we get more earnings today Karena, with seventeen companies in the SMP five reporting Tesla headlines the list, investors will look for how its bottom line is affected by lockdowns in China

and the crypto plunge. Tesla is heavily invested in bitcoin al Turning to Netflix now Nathan shares her up more than seven percent and early trading after it lost less subscribers and initially feared and gave Ragnatha uncovers Netflix for Bloomberg Intelligence, there's really not a whole lot to cheer about. What the market is really looking for at this point of time is really some clarity, not just on the subscriber growth trajectory, but also on other metrics, so you know,

how are they going to drive our poo? How are they going to drive margins? So there's pressure all around, and gave the Raganathan at Bloomberg Intelligence as Netflix still has positives working in its favor, including its size and reach. Okaren, we're learning this morning more about Kathy Wood closing down one of her exchange traded funds. Bloomberg. Ornina Young joins US Live with the latest. Good morning, Beneatha, Good morning Nathan.

A regulatory filing shows Kathie Wood is shutting down her ARC Transparency et F. The fund gained only twelve million dollars in assets since it launched at the end of last year. That's a fraction of the nine billion dollars in woods flagship fund. It contains holdings like Teal, Duck and Spotify. It was aimed at investing in companies that received high scores on transparency. Transparency Global, which shaped the funds underlying portfolio, will stop calculating the index at the

end of July. Live in New York. I'm gonna need a Young Bloomberg daybreak, all right, reneed to thank you, and overseas we got the latest reading on UK inflation. Today, consumer prices hit a fresh forty year high in Brittain as the country grapples with a cost of living in crea crisis. Inflation figures for June rose nine point four percent year over year. A nine point surging gas prices

helped fuel the increase. Straight to had your latest local headlines plus a check of sports, And this is Bloomberg. Karen Thanks on Wall Street. Seventy degrees in Central Park, accident investigation eastbound Bruckner at the Shared An Expressway more common in traffic. First John Tucker with more on what's going on in New York and around the world. John Nathan. The summer swelter resumes today as the heat advisories an effects starting at noon. When can we expect some relief

from Bloomberg? Meteorologist Rob Carolin hopefully has some answers. Good morning, Rob, John. The hot weather that's developed across the century United States, while a piece of it is broken off and is working its way through the eastern part of the country, and that's why we are going to be so warm between now and the end of the weekend. We're under a heat advisory from noon today through eight p m. Thursday.

The only wrinkle in the forecast the next couple of days is the potential for a little bit of afternoon shower and thutterstorm activity. Those areas that do see the storms would see temperatures cool off quite a bit. I think the heat is going to peak Saturday. John Meteorologist Rob Carolin, Well, it's the end of the political road for former Mayor Bill de Blasio. It's clear to me that when it comes to this congressional district, people are

looking for another option. He's dropping out of the crowded Democratic primary race for an open seat in the state's redrawn tenth congressional district. The Caper of Federal Record is asking Secret Service to determine whether any tax messages by agents around the time of the attack of the U. S Capital were improperly deleted that story from Bloomberg's Jeff Bellinger. The National Archives and Records Administrations said in a letter to the agency that it must submit a report within

thirty days documenting what occurred. A spokesman for the Secret Service has previously said the text were inadvertently lost during an equipment upgrade. The House committee investigating the efforts by former President Trump and his allies to overturn the results of the twenty twenty election. Has also subpoenaed the agency for the texts Jeff Bellinger, Bloomberg Daybreak and Russian President Vladimir Putin signal Europe will start getting gas again through

a key pipeline. But it's also warring that Lessa's fat over sanctions parts is resolved, flows will be totally curred. Global News twenty four hours a day on the air had a Bloomberg quick Take powered by more than twenty seven hundred journalist and analysts in more than one hundred twenty countries. I'm John Soccer. This is Bloomberg, Nathan. Thank you John on Wall Street time for the Bloomberg Sports Update with John Sashion. Thanks Nathan, and the win for

the American League. In the baseball Altar game, that's nine in a row, one of the last twenty five in Los Angeles, the Yana L scored twice in the first It ain't Paul Goldschmid homer, but the rest of the game, ten a L pitchers, including the Yankees Nestor Cortez and Clay Holmes, combined to her eight scoreless innings. Allowing only one hit with ten strikeouts. Toronto's Alan Bunoa struck out the side in the second inning. He did so as

he was talking to the Fox broadcasters. Cleveland's Emmanuel Chase struck out the side of the ninth on just ten pitchers. The Yale one three to two, scoring all three in the fourth inning. The game time long to on Homer by the Yankees Giant Carlos Stanton, in l A Native, his first career All Star Game hit. Next batter was the twins Byron Buxton, solo shots seventh time in All Star Game history back to back. Homer's both came off Tony Gonsolin. He took the loss, something he hasn't done

all season. He's eleven and oh for the Dodgers. Stanton in his first All Star Game as a Yankee. Third Yank to win m v P. Derek Jeter did it in two thousand Marianna Rivera in two thousand thirteen. At SEC Media Day, Alabama coach Nick Saban asked about players now being a of the cash in on their name, image and likeness. Players that extremely well last year. I think they made over three million dollars in name, image

and likeness and UM. But I do think that the concerns um are, you know, there there has to be something, some guidelines that sort of protect competitive balance. A lot of social media reaction to that comment, considering Sabing makes over nine million a year and there hasn't really been competitive balance in college football as Alabama has dominated every year. Johns Dashwer Bloomberg Sports. Nathan john thinks it's just about five thirty seven on Wall Street time for the Tri

State Business Report. Here's Bloomberg Scott car. A measure of optimism among small businesses in New Jersey is pretty dismal. The National Federation of Independent Business Small Business Optimism Index dropped by three point six points last month to eighty nine point five. The survey found thirty four percent of business owners reported inflation was the single most important problem

in operating their business. The Luxembourg based multinational firm A Rent and Metternock has inked a five year deal for office space in Rockefeller Plaza. The firm, which was previously in the building, is expanding its footprint there by one thousand square feet. Heads Up, hot dog Fans. Today is National Hot Dog Day and Coney Islands Nathan's Famous will be offering up five cent hot dogs with the purchase

of a regular price dog at participating restaurants. Nathan's has restaurants and twenty four states, about forty in New York State. That's the Bloomberg Tri State Business Report. I'm Scott Carr and l Relation. Thank you, Scott. It's five thirty eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard in our three hundred affiliate radio

stations around the world. I'm Steve Podascant on ten ten Wins in New York. We're talking about members only clubs popping up around Manhattan offering remote workers a social hub com Corny Donahoe on ktr H in Houston. The summer driving season is showing signs of a two thousand eight like bus. I'm Gina Servetti and for Double Ubb, I'm in Chicago. We're looking at some of the things investors will be watching for when United Airlines opens its books after the closing bell. I'm Scott Carr on w d

C H in Washington. I'm reporting on Maryland's novavacts, providing the nation with a fourth COVID vaccine, and those are some of the stories are twenty seven hundred Bloomberg journalist and analyst are working on this morning around the world. We're coming up to nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. The stock market does an excellent job of serving one group of retail customers, active

traders who like to pick their own stocks. Wholesale brokers love to take their trades. In return, they offer better prices and even pay for the privilege of fulfilling the orders. The latter practice, known as payment for order flow, enables the commission free trading that has helped fuel the Meme stock craze. The security is an exchange commission is considering changing all this, a move that might curb the craziness and very slightly benefit other investors, but that is hardly

worth the blowback it would generate. Given all the secs other priorities in areas such as crypto regulation, climate change risk, and derivatives disclosure, This battle is best left for another day. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or ope I n go on the Bloomberg terminal. This has been Bloomberg opinion and you can hear Bloomberg

opinion editorials every weekday at this time terminal customers. You can read more at O P I N go on the Bloomberg terminal. Right now, SMP futures are up nine points. Staff futures up fifty nine Now as that futures are hired by forty four points, adding to yesterday's gain, saw the SNPU mount it's biggest rallying about three weeks. Take a look at this market next to Tracy McMillian, head of Global Asset Allocation Strategy at Wells Fargo Investment Institute.

Stay with us, you're listening to Bloomberg Table Bloomberg eleven three oh weather. I gotta find ways to stay cool for the rest of this week. Heat advisory from noon today till eight Tomorrow night, with highs for the rest of the week in the load of mid nineties. Right now seventy eight in central park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot com for the Bloomberg Business at and at Bloomberg Quick Tape

He's a Bloomberg Business Flash and I'm camerin Moscow. Songs are inching higher amid speculation that the worst of his year's equity route maybe over US. Futures are also higher as Netflix surges in early trading on a smaller than expected subscriber loss. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg U S and P Future is up about eight points now Future is up forty two Nasdack Future is up forty one. The decks

in Germany's up a third of a percent. Pen Your treasury of eight thirty seconds held two point nine nine percent.

They yield on the two year three point one eight percent nine mag Screwed oil is down one point one percent on a dollar nine at a hundred three dollars thirteen cents of barrel comic School little change is seventy seven eighty announce the euro one point oh two four or five against the dollar, British pound one point two zero two zero and the yen one thirty eight point one three and bitcoin this morning of more than one percent at twenty three thousand, five hundred fifty dollars. That's

a Bloomberg Business Flash. Now here's John Tucker with more on what's going on around the world. John, and good morning, Karen. President Biden set to announced sixecutive action today to confront climate change. Russian President Ladimir Putin's signal in Europe will

start getting gas again through a key pipeline. You're is waiting to see whether gas flows resumed tomorrow at Dan Cox, when's the Republican primary that race to replace Governor Larry Hogan of Maryland, a race that became a proxy clash between former President Trump and Hogan. Sports Yankees Gan Carlos Stantley has named the All Star Game m v P

as the American League beats the National League. Global News twenty four hours a day on airin on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts more than twenty countries. I'm John Tucker, and this is Bloomberg. Nathan. Thank you, John. It's five forty eight on Wall Street

Live from the Bloomberg Interactive Broker Studios. This is Bloomberg daybreak, and we have Tracy McMillian with us this morning ahead of the market open, head of Global asset Allocation Strategy at Wells Fargo Investment Institute. Tracy, Good morning, sink some modest games in the futures contracts after the best rally yesterday for the SMPN about three weeks. Is there more room for stocks to run or is this a bear market rally? Good money, Nathan, thanks for having me. Um. So,

we do think that this rally is premature. You know, some of the assumptions that are underlying the rally will eventually lead us out UM, and they're not necessarily incorrect. You know, we will see capitulation, we will see value coming back into the market, um, and we also will start to see the dollar ease at some point. But you know, we just think it's too early in this bear market really, you know, too early in the fads

tightening cycle, the call the all clear. Um. You know, in some ways this seems to us like it's a classic case of fighting the fad. It's interesting because I'm sure you saw the note yesterday from Bank of America that they see full capitulation in this market. What are they getting wrong? Yeah, So, UM, they are seeing UH levels that are a kin or I guess they're seeing a UH investor sentiment that is akin to what they

saw back in October of two thousand eight. And if you'll recall in October of two thousand eight, we still had five more months of a bear market before things started to turn in mid March. So you know, even though we are seeing these high levels of industor pessimism, it doesn't necessarily mean that we're through this. You know, the FED has just started tightening, so we've got always to go as they work to bring inflation lower. So you're thinking that the FED is going to tighten even

further than it's projected at this point. It does seem like at least at the July meeting they're looking for a seventy five basis point move. Are you looking for even more significant moves for the rest of this year? So we are looking for seventy five basis points than July, another seventy five basis points in September, and potentially some

additional tightening thereafter in two and into three UM. We are actually thinking that inflation UM could start to come off next month UM, and that could WITHSAW investors in the coming months. Some oils traded back above a hundred dollars of earrol yesterday. That's still well off the highs that we've seen in oil. Industrial medals have started to

fall back UM. But we think that this, together with strong base effects in the in the coming July CPI report, could have us seeing a downside surprise and inflation come back to the Fed. What are they going to do with this? Well, they are going to continue to raise rates and continue to tighten quantitineously until they get closer to their targets. So even if we do come down to five or six percent inflation, we think they've got to keep going. So that's not necessarily again all clear.

Is that an overshoot? In your view? Do you think the Fed's going to go too far with interest rates and bring the economy into recession? You know, they probably will. UM. They typically do because the tools that they're using work with a lag, and the the inflation rates are going to continue, in our opinion, to stay relatively high UM, and the Fed will have to keep tightening in order to restore its credibility and UH continue to bring inflation lower.

But because of that six twelve month lag in UH the effects of their tightening policy. They're probably going to go too far. We do think we're probably going to even see a recession starting in the second half of this year. Interesting as we get closer to the fed's next meeting coming up in just about a week from now. Tracy McMillian, head of Global Asset Wells far Go Investment Institute, Thanks for this good having down with us, Karen and Nathan.

It is five fifty three on Wall Street. It's time for the Bloomberg Law Report. We get to the legal stories we are watching this morning from Bloomberg Jeff Bellinger. The Sex Circuit ruled that Michigan officials are immune from a suit by Bowling Alley and Roller Ring operators. The plaintiffs claimed that orders to close their facilities during the

pandemic ammounted to an unconstitutional taking of property. Toys r Us is accused of infringing the trademarks and copyrights of another toy maker's car and tracks that called Magic Track. Johnson and Johnson chose Matthew Orlando to be the legal chief for the consumer business. The company plans to spin out next year. Bloomberg Law Everything you need all on one legal research platform, including guidance analysis and Bloomberg market Intelligence.

Find out more at Bloomberg law dot com. All right, Jeff, thank you. Now another legal story we're watching if you're almost a year and a half. It appears at the full thing any district Attorney's investigation into potential criminal interference

in the election and Georgia may be escalating. The DA has sent so called target letters to sixteen Republicans who served as fake electors, informing them that they could face criminal churches for more of Bloomberg stun Gronso speaks to Unchael Moore, a partner with Moore Hall and the former U S. Attorney for the Middle District of Georgia. What does it indicate to you that she's telling these people

that they could be indicted. I think there's some interest in this fake elector scheme, and she has been digging into matic. You wouldn't have to look very hard to feel like that she's in fact expanding the scoop of what could have been a very narrowly tailored case, a clean cut case against Trump. But it appears that she's

broadening it out to other people. Maybe in that orbit or closer to the inner circle, and dealing with the efforts to basically avoid out the electors who were from Georgia and to avoid out the votes that have been cast here. So I'm not surprised to fear doing that.

It's a little interesting that she would do it in such a public way, especially given some of the political alliances that she has, And I think that may come into play here, that she has actually set out such a notice in the middle of a heated campaign season, because typically you don't always see a prosecutor be quite as public about those types of things, and I think for a good reason. So I think she's clearly broad in the scoop. I think she may be fishing with

a little bit too broad and met right Magda. Sometimes that's where you get caught tangled up in your own men. And I think some of the public comments about the target letters, who they went to, in the timing of them, may open right some questions down the road. Thinking about all the evidence that she basically started out with, all the phone calls, for example, and the testimony she's already taken from state officials, I'm wondering why it's taking her

so long to decide whether or not to prosecute Trump. Sure, and I think that's a question is well placed. I don't think there's any questions she could have based on the type recording as she had, which is for two of us. I mean, how many times you get bostly recorded confession. She could have tried to bring charges forward in a Ragman ranger without beneath the special grander. She simply could have, you know, in between two regular alleged spellings.

She could have stuck the truck indictment right in the middle of it, and the gruduury can decided with him out they're going to issue the indictment, And so he tells me that she's simply broadened it out. She's looking for other people who may have been involved in the planning or the efforts to overturn at least the vote totals in Georgia, and making it more of a guess, more of a spider web in which she can catch more flyf as opposed to just to sufficial of the

clean cut case. At the end of the day, I don't know if that will have been the right call. I don't want to second guess everything she's doing. I mean she may and does have access to facts and evidence that I don't have and the public doesn't have. But as you look at it, I mean, one principle usually remains true, and that is that when you keep it simple, it often makes for a better case. It's easier to prove, it makes less confusing for a jury,

It creates less defenses. That also creates less appellent issues. And that's Michael Moore, the former U S Attorney for the Middle District of Georgia, speaking with the Bloomberg Student Grosso. Catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law podcast or

downloading this show at Bloomberg dot com slash Podcasts. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b Law Go again. Futures this morning are moving higher. SNP futures up eight points, now futures up fifty and NASDAG features up forty one, and the ten year Treasury up nine thirty seconds yield two point nine eight percent.

They yield on the two year three point one eight percent, and nimack screwed oil is down one percent, Still ahead on Bloomberg day break and checked on the business headlines and all the news you need to start your day. This is Bloomberg.