Bloomberg Daybreak: July 20, 2022 - Hour 2 (Radio)

Tucker Bore Straight Ahead. I'm John stand and Sports making nine straight All Star Game victories of the American Lady Yankees. Dian Carlos Danton with the m v P. That's All Trained head 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 Sirius x AM one nine team and around the world Bloomberg Radio

dot Com and via the Bloomberg Business App. Good Morning, I'm Nathan Hager and I'm Karen Moscow and U West on Index Futures are higher this morning. We're coming up to six o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg. Right now, SNP futures are up eight points to down futures up fifty, NASDACK futures up forty two. The decks

in Germany's up a quarter percent. The ten year treasury up nine thirty seconds, held two point nine eight percent. The yield on the two year at three point one eight percent. NIMEX screwed oil is down one percent on a dollar nine at a hundred three dollars thirteen cents of barrel. Look at it Bitcoin this morning it's up one percent at twenty three thousand, five forty dollars. Nathan mccaren futures are adding to yesterday's gains on Wall Street.

There were the biggest in three weeks. It was a broad based rally, all eleven industry groups in the SNP five hundred advanced. John Barenko 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 indeda 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 is looking for companies with strong balance sheets they're able to weather tough economic conditions well. Nathan Earning's optimism is helping fuel this morning's gains. Netflix shares are up seven and a half percent in early trading, and for subscriber numbers

came in better than estimates. To get the story from Bloombery, Sterley Pillett, 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 lost is of the first half. In New York, Charlie Pellet, Bloomberg Daybreak, Charlie, thank you, and earnings continue to roll in today. With seventeen companies on the SMP reporting, We get results from Tesla after the closing bell. Here with the preview is Bloomberg's 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 in the price of the cryptocurrency. Jeff Wellinger, Bloomberg Daybreak, 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 fell from the November peak. Now we're this morning Wood is closing down whatever exchange traded funds, and we get the latest live from Bloomberg's Rendita Young. Good morning Rindy to Good morning Karen. A regulatory filing shows Kathie Wood is shutting down her ARC Trands parents 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 hold things like Teal, Dock 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 reneed a young Bloomberg daybreak al right, Nita. Thanks. Bitcoin is trading at a one month high this morning right now at about twenty three thousand, five hundred, though that is a far cry from November's

peak of nearly sixty nine thousand. Billionaire investor Mike Novigrats 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 nelvi Grat says, right, gulators should do more to protect crypto investors, and he called for more

transparency in the industry. Oh, we turned to the economy now, Nathan, expect higher interest rates for the foreseeable future. That, according to black Stone. We caught up with Joseph Zeidel, chief investment strategists and Blackstone's 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 up higher and the tightening cycle longer. So my own view is that Fed fund rates could exceed

four percent. I think they could go above four hours and made can close black Stone Private Well, it's Joseph Zidel like expects the FED to high by seventy five basis points at next week's meeting like the US. Karen, inflation continues to be a major problem in Europe and fresh Day to show the UK still struggling to tain prices. Let's go to London get the latest with Bloomberg's un ponds. Good morning You and 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 searching prices from to fuel. The pain only sets get worse, with inflation forecast to top eleven percent in October, when another gas and electricity price hike is due. The banking and has already increased rates five times since December, and today's day so well had to calls for a

jumbo hike at the bank's next meeting in London. I'm you and pots in back day break, all right 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 declare a climate emergency, but Bloomberg Politics contributor mc

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 pressure on Joe Mansion by you know, talking about doing some things around coal and gas fire 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 bloom you got Sloomberg Politics, A contributor. Big Davis will have more on

the president's announcement in just a few minutes. Bloomberg's and Must Do is at the event, and she'll join us live again in just a few moments, futures are higher. This morning, straight ahead, your latest local headlines, plus a check of sports. And this is Bloomberg. All right, Karen, thank you. Six seven on Wall Street, seventy eight degrees in Central Park. Still dealing with an accident investigation eastbound

Bruckner at the Sheridan. More coming up in traffic. First, John Tucker with what else is going on in sweltering New York and around the world? John, And as a heat wave griff the city, Nathan, everyone's been ordered out of the water on Rockaway Beaches. Sharks were seen prowling the area. The police department has been doing flyovers to look for any threats. Parts Officials say they'll reopen the

beach when it's safe to do so. Trump indorsed candidate won the closely watch Republican primary for governor in Maryland. The story from Bloomberg sat me Morris Dan Cox won the Republican primary in 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 anymore as Bloomberg Daybreak. In Maryland's Democratic primary, former nonprofit leader westmore lad the

field with thirty six percent of the vote. He was followed by former Labor Secretary Tom Perez and State Controller Peter Frenshaw, who garnered twenty seven nine of the vote. Former Secretary State Henry Kissinger has some words of advice for President Biden regarding China. That story from Ed 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 Michael Thwaite at the Intelligence Squared event, it is important to prevent some of China's actions, that it's a permanent detendment, that it's not something that can be achieve 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 Bill Deblancia says he's dropping out of the crowded Democratic primary race for an open seat

in the state's redrawn tenth congressional district. De Blasia says it's clear people are looking for another option, pulls that showed him trailing several other candidates and A thirty one year old crew member on Law and Order Organized Crime was fatally shot in Brooklyn this week while working on the production of the TV show Johnny Pizzaro was found unconscious and unresponsive with multiple gunshot wounds to the head

and neck on North Henry Street in Greenpoint. Global News twenty four hours a day on Aeron on Bloomberg Quick to Power by more than twenty seven hundred journalists and analysts and more than one countries. I'm John Tucker. This is Bloomberg, all right, John, thank you, coming up to six ten on Wall Street and John Sashower has a

Bloomberg Sports update. Thanks Nathan. There was a long period where the National League dominated the Baseball All Star Game one twenty of twenty one back the nineteen sixties and seventies, but lately the American League is at its way. Last night in Los Angeles, the n L jumped in front two runs in the first inning, but then failed to score again. And the Yale did damage in the fourth swing and high fly ball trill, forget it way back

out to left center field and that is tall. Oh my goodness, he crushed it, John Carlos Stanton deep into the pavilion and left center field, and the American League with one swing is tied it up. It's too two. As Stanton goes keen, he has had to call the Stanton homer travel four hundred and fifty seven ft, longer than any homer hit at Dodger Stadium this season. Next batter was the Twins Iron Buxton. He had a solo

shot and that was it for the scoring. The A l one three to two and is now one 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 Jeter in two thousand, Marianna Rivera in two thousand and thirteen. Aaron Judge struck out twice, Jose Trevino got a base hit, and Estra Cortez pitched the sixth and in Clay Holmes got two houts in the eight for the Mets. Jeff McNeill over one also got hit by a pitch. Pete

Alonzo was up once and drew a walk. Miles Bridges was the Charlotte Hornets leading score this past season. He's currently a free agent. He's now facing three felon accounts of domestic violence, excused of assaulting his girlfriend. Waiting word on how long the suspension Cleveland quarterback to Shaun Watson will get. There's now report it's expected to be eight games for sexual misconduct. There was earlier reporting it would

be the entire season. John stash Award, Blueberg Sports, Nathan John Thanks s, S and P. Future is now up five points. Stouth Future is up thirty, NaSTA Future is up thirty two points. Send your Treasury's up nine thirty seconds. The yield two point nine eight percent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather heat advisory noon today till eight Tomorrow night with highs in the load

of mid nineties all the way into Friday. Right now seventy eight in Central Park markets, headlines and breaking new ones twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quick Take, She's a Bloomberg Business Flash and I'm Karen Moscow. Stocks are inching higher amid speculation that the worst of this year's equity route made. The over US stock Index futures are higher as Netflix surges in early trading on a smaller

than expected subscriber loss. We check the markets every fifteen minutes throughout the trading day. On Bloomberg Guess and p Future is up six points this morning. Down Future is up thirty seven. Nasday Future is also up thirty seven. The decks in German he is up at thirty five percent ten. Your treasury of nine thirty seconds held two point nine eight percent. The yield on the two year three point one eight percent. NIMEX Screwed Oil is down one and a half percent out of dollar fifty two

and a hundred two dollars seventy cents. A barrel comic school that will change the seventy eight announced zero one two three seven against the dollar, British found one point two zero one four and the end one thirty eight point to four and Bitcoin this morning of one point four percent at twenty three thousand and six twenty five dollars. As a Bloomberg Business Flash. Now here's John Tucker with more on what's going on around the world. John and Karen.

President Biden said to announce executive action today to confront climate change. Russian President Ladmir Putin's signaling Europe will start getting gas again through a key pipeline. Dan Cox wins the Republican primer in the race to replace Governor Larry Hogan to Maryland, a race that became a proxy clash between former President Trump and Hogan. Westmore led the Democratic field and the Yankees t and Como stamp name the All Star Game, m v P as the American League,

Beach the National League. Global News twenty four hours a day on IRAN, on Bloomberg, Quicksache, We're Powerline. We're the twenty seven hood journalists and analysts more than one hundred twenty countries. I'm John Soccer. This is Bloomberg. Nathan all right, John, thank you. It's six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is a Bloomberg Daybreak,

and we continue to watch Netflix shares this morning. They're up more than seven percent in the pre market after the streaming giant second quarter earnings and a subscriber loss that came in not as bad as many Wall Street analysts were expecting. Let's bringing one of the best of them. KEITHA. Wronganathan is with us this morning, Senior media analyst at Bloomberg Intelligence. KEITHA. Good morning. So Netflix shed nine hundred seventy thousand subscribers in this last quarter and that's a

good thing. Good morning, Nathan. Yeah, thank you for having me. And yeah, it looks like in this environment less bad definitely seems to be good. But I think it's still a little bit premature for for a victory lap. So yes, uh, you know, um I. One one key positive that came out of last night's report was that it looks like the subscriber base is stabilizing. Uh, you know, we're we're done with the worst most likely in terms of subscriber losses. But then if you look at the third quarter guide

doesn't it doesn't look particularly inspiring. But at the same time, management seems to have a better handle on what they're going to do to read in the great subscriber growth. Yeah, as you allude to, Netflix is saying it's going to sign up about a million customers in this current quarter. That was lower than many analysts were expecting. What was at one point eight million or something like that the average analyst estimate there. How is it going to do it?

What does Netflix need to do to cement a turnaround after the first quarter that really put a shutter in investors. So they really have so many different initiatives whichtball. We have to remember that the full streaming game has has kind of changed completely. We're we're done with those days of heavy growth when you know, services were able to

easily at and and fifteen million subscriber spread quarters. So now we're in a different world where in a little bit of an uncharted territory, Netflix does have an advantage. It is the dominant streaming platform. They still do have two million subscribers, they have huge levels of engagement. Um So that is something that they're really looking to capitalize

on going forward. Um So in three they're going to be introducing an advertising tier which they're hoping will um you know, not only open up their addressable market significantly, but will also then reignite both subscriber growth as well as um you know, revenue, But in terms of near term and how they're going to um you know, get more subscribers onto the service, there's just you know a combination of different strategies. So they're obviously going to uh

I think the biggest thing for them right now. This is something that Read Hastings spoke to yesterday as well. Stranger Things was by far the biggest driver for this uh you know, UM subscriber beat, if you want to call it, for the second quarter. So content, content, content, content is king. It is absolut netally the biggest differentiator, and they do have a content slate that's kind of

ramping up. The only problem for them is that they're their competition is getting much much tougher, so you have a lot of great content coming from rival services as well. Yeah, I wanted to ask you about that because I know you've been bullish in the past about Netflix's content and its ability to compete on that score with some of the other players like Prime Video, Hulu, Disney Plus, now Apple Plus. Does it still have a content advantage compared

to some of those other players. Absolutely, I do think that they have you know, a first mood mover advantage. They do have this great ability to drive the social conversation. We've seen that time and again with with you know, these big, big hits, whether it's an Ozark, whether it's a Stranger Things, whether it's a Peaky Blinders. But you know, a competition is ramping up. So you know, you brought up Apple TV. Plus, they have their flagship show ted Lasso,

which is coming back. You have a huge movie state coming there. You have HBO Max where you have you know, the Game of Throne sequel with the House of the Dragon. You have Prime, Amazon Prime, that's kind of really doubling down. Whether it's you know, they're going after Thursday night football, they're prepared to launching They're prepared to launch a lot of The Rings, which is supposedly one of the most expensive expensive shows in the history of television. So yes, um,

you know, Netflix definitely has an advantage. But but one of the things that they did bring up, um during their earnings called was that they're holding content spending flat. It's going to be about seventeen billion dollars and that's a huge amount of money. But I'm not sure that's going to be enough to cut it, especially when you have rivals also willing uh to to to write huge, huge checks for content. Only about thirty seconds left here, GEETHA.

But the big question going into this earnings was whether people continue to see Netflix as an expense worth spending on in this economy. Did Netflix answer that question in the earnings? They did so, you know, yes, they do allude to inflationary pressures and impending recession and people kind of holding back a little bit. We saw some elevated shown levels because of the recent price increases that they h implemented across the board in so many different regions.

But at this end of the day, it is a compelling value proposition and that and they're hoping that as they kind of introduced more features, as they introduce better content, people will still hold on to their Netflix subscription even with you know, an economic downturn. Great to speak with you this morning, KEITHA. Thanks for this Keith of Wrong

and Nathan senior media analysts at Bloomberg Intelligence. And again, Netflix shares on the rise this morning, up more than seven percent, following that second quarter subscriber loss that came in not as bad as analysts were expecting. SMP futures right now up seven points down futures of forty three NASTACT futures higher by thirty nine points just ahead. Stocks come off their biggest rally in three weeks, and as we continue to watch Netflix shares, will bring you the

five things need to know to start your day. Coming up on Bloomberg day Break, Bloomberg eleven three oh weather. The heat advisory kicks in noon, doesn't go away till eight tomorrow night, but the heat will stay with us into Friday. Highs in the low nineties for the rest

of this week. Right now seventy eight degrees broadcasting live from the Bloomberg Interacted Broker Studio in New York, Bloomberg and Looking Free to Washington, d C, Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg N six to the country, Sirius XM chto one nineteen 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 Hagar and I'm Karen Moscow. We are just about three hours away from the open of US trading time for the five things you need to notice start your day. Brought to you by Interactive Brokers. Interactive Brokers Global Linelist helps you find new global investment opportunities to diversify your portfolio and discover undervalued companies that may have greater growth potential. Try ibk our Global Analysts today at ibk R dot com. Slash g a up first.

US futures are adding to yesterday's gains on Wall Street, which were the biggest in three weeks. Still, Sherry Paul's 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 as in decision. So right now where we're advising clients is to go right down the middle of this market. You want to plan for inflation being structural and own sectors of the

market that actually benefit from the reflationary stories. So that would put you in financials and energy stocks. Sherry Paul with Morgan Stanley Private Wealth says investors sugar remain active despite volatility. We get more earnings today. Karen with seventeen companies in the SPI 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 well. Turning to Netflix now, Nathan shares up almost seven percent in early training after it lost less subscribers than initially feared. Katha Raganatha uncovers Netflix for a 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. Bloomberg Intelligence US media analyst Gita Raganathan says Netflix still has positives working in its favor, including its size and reach. Now we're learning more this morning. Caring about Kathy Wood closing down one of her exchange traded funds, Bloomberg's Rnida Young joins US Live with the details. Good

morning Grenida, Good morning Nathan. A regulatory filing shows Kathy Wood is shutting down her ARC Transparency e t F. The fun 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. Now it contains holdings like Teal, Dock and Spotify, and 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 really need a young Bloomberg daybreak al right, re need to thanks and overseas ju and inflation figures in the UK rose nine point four percent year over year of forty year high. That's the fine things you need to notice start your day. Brought to you by Interactive Brokers. This is Bloomberg sixty three

on Wall Street, seventy nine degrees in Central Park. We got a problem headed to Jeff care Poor a crash on westbound Belt Parkway at Farmers Boulevard. Details counting up in traffic. First John Tucker with what else is going on in New York and around the world. Good morning, John, Nathan. The summer swelter resumes today. Is the heat advisory starts at noon when gun we expancts some relief on Bloomberg's media cologist Rob Carolin, hopefully as some answers this morning,

Good morning, Rob, John. The hot weather that's developed across the century United States, while the piece of it is broken off and is working its way through the eastern part of the country, and that's why we're going to be so warm between now and the end of the weekend. We're under a heat advisory from noon today through a 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 Bloomberg METEA rologist Rob Carolin. Here'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 redraw and tenth congressional district. The Blasio leaves a jam pack field. The keeper of tender records is as the Secret Service to determine whether any tax messages by agents around the time of the attack on the Capitol were improperly deleted. That story from Bloomberg's Jeff Lenger. 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 texts 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 election has also subpoenaed the agency for

the texts. Jeff Bellinger, Bloomberg, Debreak, and the House has passed a bill that would recognize same sex marriages under federal law and extend legal protections all married couples, a reaction to concern the Supreme Court might reconsider a ruling extending those rights. Global News twenty four hours a day on Aeron on Bloomberg, Quicktake power by more than journalist analysis more than one twenty countries. John Senter, this is Bloomberg,

Nathan John thanks sixty five on Wall Street. Time for the Bloomberg Sports Update with John Sire. All Right, an's another one to the American League in the Baseball All Star Game. That's nine in a row, twenty one of the last five. In Los Angeles, the NL scored twice. First Inningbaul Goldsmid a home run, but the rest of the game ten a L pitchers, including the Yankees Nestor Cortez at Clay Holmes, combined to HERL eight scoreless sings,

leven only one hit with ten strikeouts. Toronto's Alec Manoa struck at the site in the second inning as he was talking to the Fox broadcasters. Cleveland's Emmanuel Chase struck at the site in the ninth on just ten pitches. The a L one three to two, got all three and the fourth inning the game time long to on wherever the Yankees Gihant Carlos Stanton in l A native, his first career All Star Game hit. Next batter the Twins Byron Bexton. Buxton solo shot seventh time at All

Star Game history, back to back homers. 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 the third Yank to win m v P. Derek Jeter did it in two thousand, Marianna Rivera in two thousand. Thirteam at SEC media Day, Alabama coach Nick Saban asked a bad players now being able to cash in on their name,

image and likeness. Players did 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 reacted to that comment, considering Saban makes over nine million a year and it really hasn't been competitive balance in college football at Alabama has dominated every year.

John stashually were Bloomberg Sports Nathan Okay, John, thank you at six thirty seven on Wall Street Time Now to take a look at stock some of the names moving in the pre market. For that, we are joined this morning by Bloomberg Markets Live reporter Heather Blurk. Heather, good morning. We're seeing the future sort of pair back their earlier games. But it looks like Netflix is still holding up. Yeah, definitely,

that's up about seven um. So Netflix lost more than a million customers in the first half, and the message was it could have been worse. So it lost almost a million customers, but that was the last less than half of Wall Street feared and that was in large part to uh, the new season of Stranger Things. And you're also seeing some rid a cross with other online content companies like Disney and Warner Brothers rising premarket. And it looks like investors, at least for this morning, or

putting some bets on casino stocks as well. Yeah, definitely. I'm looking at Las Vegas Sands. That's up about two or three percent UM so Macau casino stocks listed in the US or higher because the city plans to reopen casinos on Saturday if conditions allow. And Las Vegas Stans also reports earnings today after the market closed. Yeah, not the only earning story we're looking forward to. We've gotten even more earnings as well from Interactive Brokers, and that

didn't look so good. No, that was definitely a miss um that missed the averagejournalists estimate um. Looks like that total customer accounts a little bit, but it was definitely the earnings. Okay. And we've got a biotech that's slumping really really badly in the pre market as well. Yeah, as much as so. It's clinical trial for a varian cancer treatment, Oveck didn't meet its primary endpoints. So you know, with these small biotechs, one drug or one study can

really make all the difference. Yeah, and we're talking about VBL Therapeutics v b l T the ticker there. Uh finally Heather omn coon am I pronouncing that right now? So yeah, so the so that and some other advertising stocksure like um Um are doing well. Uh pre market interpublic basically on the kron Um had its second quarter revenue beat the average annalists estimate and it raised its

organic sales growth. And these are proxies for consumer confidence um because it ad spending really got reined in during the pandemic. So that's the sector seems to be recovering alright. Bloomberg Markets reporter Heather Burke. Markets Live reporter Heather Burke with us in the pre market this morning. You can check out more of Heather's work on the Markets Live blog m l I v GO m Live on the

Bloomberg terminal. Heather, thanks for the pre market update, and as we look at stocks as a whole ahead of the open, the gains we had seen for futures have turned around the other way. Right now, SMP futures are down seven points, STAFF futures down seventy eight, NASTAC futures are lower by nine points. This follows the biggest rally for the SMP in about three weeks yesterday. A little uncertainty now in the market as we get closer to

the open. The ten year treasury right now is up fourteen thirty seconds, the yield two point nine six percent yield on the two year three point one six Nimex crude is moving lower, down one point seven percent, down a dollar seventy two and a hundred two dollars five decents of barrel comics gold a little change down to buck for fifty announced, the euro one point one zero at one point zero one nine two against the dollar, and Bitcoin still moving higher, trading at twenty three thousand,

seven hundred dollars. You're listening to Bloomberg Daybreak Bloomber eleven three oh weather heat advisory from noon today till eight tomorrow night. We're expecting highs for the rest of this week. In the load of mid nine days right now seventy nine in Central Park markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quicktake, He's a Bloomberg Business blash and I'm Karen Moscow and you Bush Stock Index futures.

They are now moving lower, with SMP futures down about twelve points beginning the First Word breaking news desk for today's morning call. And here's Bill Maloney. Bill, good morning, Hey, good morning, Karen. That's right. US futures trading in the red right now at futures down a hundred point, says if he's dropped twelve one NASDACK futures are down by thirty the US a ten year the two point nine six percent gold is little changed, Oil is trading lower

and Bitcoin higher by one point six percent. Japan rose two point seven percent overnight, while europ and markets are in the red this morning, and back in the US on the economic front at ten o'clock, existing home sales after the BELUS Knight and Netflix supported a smaller than expected loss in subscribers, and another news Cathy Wood shuttered and e t F for the first time. Wrapping things up, Chevron was raised to buy at HSBC and Eagle Materials

was put to neutral at JP. Morgan Live from the First Breaking News deskcom Bill Maloney, Karen, all right, Bill, thank you to here live breaking news. Over your Bloomberg tip squawk on your termin I'll ask you a w u K and that's a Bloomberg business flash. Now here's John Tucker with more on what's going on around the world. John Karen Currance. Today is an in Biden has send

to announce executive action to confront climate change. Russ and President Vladimir Blutin signaling Europe will start getting gas again through a key pipeline. Europe's waiting to see whether dance flows resumed tomorrow. And Dan Cox wins the Republican primary in the race to replace Governor Larry Hogan of Maryland.

That's a race that became a proxy clash between former President Trumpenhogen Westmore led the Democratic field, and the American League beats the National League in the All Star Game. The Yankees gen Carlos Stanton is named the Game's MVP Global News twenty a day on air, and a Bloomberg quick Take power by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. On John Temper, this is Bloomberg. Karen all right, John, thank you.

It is gonna up to sixty nine. On Wall Street, we turned to news and science and technology now with the Bloomberg n j I T stammerport. It brought to you by New Jersey Institute of Technology RANKY, Top fifty national public university by US News and World Report. It at number fourteen in the nation on Money's Best Colleges List. Learn more at n j I T dot E d U. Here's let's making news in science, Technology, engineering, and math.

Twitter has scored an early win against Elon Musk and its fight to make him complete as forty four billion dollar buyout. A Delaware judge is agreed to fast track the case with an October trial date, despite Musk's legal team arguing that Twitter was unfairly pushing for an early trial, and Elon Musk's main company, Tesla, will have increased competition

from General Motors. GM will start selling a battery power to Chevrolet Blazer next year, giving it a direct competitor to Tesla Model Y, the US is best selling electric suv. The electric Blazer model will go on sale in the summer at three. And the Senate has voted to begin debate on legislation to provide more than fifty two billion dollars to the American semiconductor industry. It's a major milestone for the longstalled bill that supporters say is vital to

national security. Details of the bill are still being worked out. That's a Bloomberg n j I TI STEM report. Nathan all right, Karen, thank you. We're live from the Bloomberg Interactive Workers studios where it's 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 President Biden heading to Massachusetts later today to announce executive actions to tackle climate change. Bloomberg's and Mostoo will be

covering the event for us. She joins US Live this morning from Somerset, Massachusetts, and good morning. What are we expecting to hear from the President later tonight? Well, Nathan, we could be hearing an announcement of an executive order National Emergency about climate change, one of the actually the

first executive order on this topic ever issued by a president. Now, he's also going to be talking about funding for low income home energy assistance during this heatwave and the rising energy costs, and Biden is also going to be boosting offshore winds. Now, I'm surrounded here in southern Massachusetts by some of the most beautiful beaches in New England, but

not this place. Right here at Brighton Point in Somerset, which is the former site of New England's largest coal fired power plant, it is now rubble and an Italian company has purchased part of the land to build subsea

cable manufacturing facility that would serve the emerging offshore wind industry. So, uh, President Biden is going to be coming to this very visual site um to sort of bolster the idea of clean energy, but also show the past and what once was here in Massachusetts, the transition from dirty to clean energy.

Are we expecting any protest at this event? And yes, we are, actually, Nathan, There's been a lot of debate over whether this National Emergency Order should be addressed by the President, and there is a very large organized group

around this Brighton Point, Somerset community. A number of New Englander is about four thousand people are active in this group and they have been out in full force at every event over really the last decade, and are expected to be both at Brighton Point in Somerset when the President arrives for a tour, and perhaps also at the

airport in Rhode Island where he's flying in. All right, Bloomberg's and mos too joining us live this morning from near the once Brighton Point power plant in Somerset, Massachusetts. Listeners in Boston can catch live coverage from Anne of the President's announcement this afternoon on Bloomberg Bay State Business That there's two to five pm on Bloomberg one oh six one Boston, Newburyport and HD two coming up to

six fifty three Now on Wall Street. Let's get to some of the other DC stories we're watching, including the Senate moving forward with fifty two billion dollars in semiconductor funding, a Trump backed candidate winning a Maryland primary that could be a proxy for four and the head of the House Democratic Caucus telling former President Trump quote run Donald run. Let's bring in Bloomberg. Government reporter Emily Wilkins from are on all these stories. Emily, Good morning. So the slim

down Ships bill is moving forward in the Senate, isn't. Yes, there was a procedural vote last night in the Senate that wound up clearing. You saw fourteen Republicans joining with Democrats on it, really showing the strong support that is there for this package, even in its slimmed down form.

So what you've got basically is that fifty two billion dollars for those semiconductors, as well as the investment credit for the manufacturer of semi conductors UH tools of Great semi conductors, as well as uhifty billion for a secure communications program and two million for worker training. So lots of different components in this bill. Uh. You saw Senator Chuck Schumer basically say that if he saw a lot of Republican support, he was going to try and add

a little bit more to the bill. And so we are sort of seeing a slightly healtier package than we might have otherwise gone through. And this is just gonna allow more Democrats and Republicans to get their priorities out there. So are we thinking that this bill has a better chance of passing given the Seneminarity leader Mitch McConnell had said he was going to block the bill because of

Democrats moving forward on a slim down economic package. Yeah, that was a McConnell's sort of initial bid on it, if you remember. Though, after he said that, Mansion Senator Joe Mansion said that he could not support that larger reconciliation package even though it had already been slimmed down, that he wanted an even slimmer package. And I think it got to the point where Republicans were like, Okay, they've knocked out enough of the funding that we were

hoping to see not pass. We're good moving ahead with chips. At the same point, Nathan, there is a lot of pressure on lawmakers to move on this. UH Commerce Secretary Gino Romundo has been talking to them, but there have

also been a number of outside companies. It's basically going to lawmakers and saying, hey, this is a national security measure, this is a job's measure, this is an economy measure, and this is something that if you don't pass before the August recess, we will be taking our business, um hundreds of billions of dollars of business to other countries.

And just outside Washington, we had a very interesting primary for governor on the Republican side, putting a Trump backed candidate against the candidate who's backed by someone who's thinking about running against the President Trump if he decides to. Yeah. Trump and Maryland Governor Larry Hogan are not exactly the best friends. Uh. They do have a bit of a contentious relationship and and really represent kind of two different

philosophies within the Republican Party. And Trump's backed candidate for Maryland Governor, Dan Cox, he won that Republican primary over the candidate which Hogan had had supported. Uh, we don't know yet who which Democrats they'll be going up against the November. That primary is is a little bit too close to call still at this point, but yeah, this

could is. It basically gives Trump another kind of big win in his two endorsement game, the fact that he was able to boost this candidate, particularly in a state that is as blue as Maryland. Another interesting wrinkle here, though, Nathan, is that the Democratic Governor's Association actually spent a lot of money backing Cox because they think that he will

be the easier candidate for them to beat come November. Now, about thirty seconds left here, emlieve we've got some really interesting comments from the head of the House Democratic Caucus about whether President Trump should run again in run Donald run. That's what Coking Jeffries told the Bloomberry editorial board yesterday. He said that Trump running would be a disaster, that Republicans are trying to prevent Trump from declaring his candidacy

so prior to the mid terms. I mean, what Jeffries told us is that the big thing for Democrats is going to sort of be saying, look, you know things might not be perfect right now, but you most certainly do not want the Republicans in charge, and really hitting home that message over the next couple of months. Interesting as the president, the former president gets ready to make

his first trip back to Washington next week. Thanks for this, Emily, great having on as always, Bloomberg Government reporter Emily Wilkins with us from the nation's capital. Read more about all these stories on Bloomberg dot com or on the Bloomberg terminal, and you can follow all the latest on Bloomberg Radio in Washington at Bloomberg and one oh five point seven

FM HD two. Futures have turned lower now with SMP futures now down six points down, futures down fifty five NASTACK futures lower by eleven, so little change to the downside, but futures had been higher for much of this pre market session. Ten Your Treasury is up fourteen thirty seconds, the yield two point nine six percent. Yield on the two year right now three point one seven percent up. Next Bloomberg Surveillance with Tom Keene, Jonathan Farroll and Kaylee

Lines and for Lisa Brahmowitz, for Karen Moscow. I'm Nathan Hagar. This is Bloomberg