Bloomberg Daybreak: July 21, 2022 - Hour 2 (Radio)

skill Prime Time. The Heat Advisory extended to Sunday night at Donald Trump returns to New York for his ex wife's funeral. I'm John Tucer. Those stories straight ahead, I'm John Stahns forwards. The Yankees returned for the All Star break. They play a day night double letter with the Astros

in Euston. That's all straded ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg ninety nine one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius XAM one nine team, and around the world on Bloomberg Radio dot Com and via The Bloomberg Business and Good Morning, I'm Karen Moscow. I'm

Nathan Heger. Bloomberg day Break, brought to you by B and Y Melon's Pershing learned by the world's most sophisticated wealth management and institutional firms rely on Pershing to help them improve profitability, create efficiency, attract talent and manage risk at pershing dot com. US futures are little change this morning. SMP futures are down about four points down, futures down

sixty six and NASDAG futures again. That will change the ten year treasury down four thirty seconds, you know, three point oh four percent, Nathan, Karen, we begin with turmoil in the Italian government. Prime Minister Mario Draggy is resigning. The former European Central Bank chief announced his decision to President Sergio Mantarella in a meeting earlier this morning. Bloomberg new senior editor in Italy, Gerald Colton, says the resignation

raises the prospect of snap elections. Elections are almost certainly the next be Traditionally year in Italy, election state plate in the spring to allow business to go on in parliament, particularly the budget. In this case, we'll probably have something unprecedented, will probably have elections in the fall. Either the last weekend in September or the first in October would be the most likely time. Bloomberg News Senior editor in Italy,

Gerald Colton, says the market reaction has been swift. The country's benchmark stock indexes down one and a half percent. Benchmark tenure Italian bond yields are surging well. Nathan. The Drazzee drug resignation comes as the European Central Bank gets ready to raise interest rates, and we go to London and get the latest with Bloomberg's un Pats, good morning you, and good morning Nathan and Karen. Will it be twenty

five or will it be fifty? The European Central Bank today's set to raise indust rates for the first time in eleven years, joining payers around the world in confronting an historic spike in inflation. With staring prices across the line team nation Eurozone. The ECB may even deviate from the guidance it said by considering a hike of double the planned quarter points. Will find out lay to today in London. I'mumport Sploomberg day Break, thanks you, And in Asia,

the Bank of Japan left its interest rates unchanged. We get that story from Bloomberg day Break Asia anchor Brian Curtis. The b o J put its concern about growth ahead of any potential implications for the end. It locks in an outlier stance of the b o J compared with other central banks desperately fighting inflation. A downgrade in the growth forecast comes amid new COVID cases at home and lockdowns in China. What the b o J is saying is you need a solid recovery to make inflation sustainable,

and that means lower for longer. Brian Curtis Sploomberg day Break. All right, Brian, thank you all. Turning to corporate earning, shares a Tesla up almost three percent in early trading. The ev market leader reported second quarter earnings at beat Wall Street estimates. Tesla also sold a significant chunk of its steak and bitcoin, converting roughly sevs bitcoin into fiat currency. CEO Elon Musk talked about it in a conference call

with analysts. We are certainly open to increasing up coin holdings in future um so they should not be taken as some verdict on goodcoin. It's just that we were concerned about overall liquidity for the company. Given code shutdowns in China. Testa CEO Elon Mus said the company has been through quote supply chain hell, but he's saying now the optimism Tesla can achieve a record of volume over the rest of the year. Well. Growing number of companies

are slamming the brakes on hiring. Karen and Bloomberg's Vernita Young has more on that. Good morning, Rnita, Good morning Nathan. Microsoft, Google, and Lift are some of the latest companies to freeze hiring as recessent recession fears loom, inflation mounts, the war in Ukraine continues, and the lingering pandemic takes a toll. Microsoft is eliminating many job openings. Google's pausing hiring for the next two weeks. Lift is shutting down a division

and trimming jobs. Meantime, Bloomberg sources say Ford is preparing to cut as many as eight thousand jobs in the coming weeks. The automaker is trying to boost profits to fund its push into the electric vehicle market. Live in New York, I'm renaed a Young Bloomberg Daybreak. All right, we need to thank you. The news of the slowdown in corporate high rank comes as the labor Department gets

ready to issue weekly jobless claims. Data economists or forecasting claims will remain elevated after setting a record low earlier in the year, and Bloomberg's Videol Judais reports in the Prairie Report, jobless claims rose to two four thousand the Hyacinths November. Bloomberg Economics says this year's increase may set

the stage for a broader labor market slowdown. The four week average for jobless claims has been moving steadily higher to also today the Conference Board issues Junes and Decks of leading economic indicators, It's dropped in four the past five months, signaling a slowdown. Final Judas Bloomberg, Daybreak and Sney and Political News. President Biden says he could speak

with China's Shi Jin Ping within ten days. Bloomberg's Baxter reports a whole plate full of issues, but this does come as the US has said publicly it is thinking about rolling back some of the tariffs and average to possibly ease inflay pressures, but White House sources have downplayed that issue now, saying that Biden wants to talk Ukraine and China, seeming support of Russia along with human rights issues in Hong Kong and jin Jong, as well as

relations with Taiwan in San Francisco. I'm at Baxter Bloomberg Daybreak and thank you. The committee investigating the assault in the US Capitol plans to proceed with the primetime hearing tonight. We get a preview from Bloomberg j Amy Morrison our one newsroom mid Washington. The committee is set to hold the televised hearing at eight pm Eastern. It will be the eighth hearing since June and the second in primetime.

Republican Adam Kinzinger and Democrat Elaine Luria will lead the hearing, aiming to show that the former president deliberately chose not to intervene during the attack on the Capitol. They'll walk through what was going on in the West Wing during and after the attack, and what happened the next day. Videotaped testimony of former White House Council Pat Sippoloni will play a crucial role in tonight's hearing in Washington. I

may be more has Bloomberg Daybreak, Amy, Thank you. SMP futures are down four point Staff futures down seventy two. Nasdaq futures are higher now by eight points. The tenure treasury is down four thirty seconds yield three point zero four percent. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg and at six o seven on Wall Street where eighty degrees in Central Park southbound two eighty seven's closed after Route seventeen for an accident.

More on that coming up in traffic. First, John Tucker trying to stay cool in New York. It's tough, John, Well, yeah, the heat is on, Nathan. Heat advisory remains an effect until Sunday night. And Bloomberg meteorolog just Rob Carolin joins

us this morning with Moore. John, it's the heat that's been in the century United States that's had a chance to move in over the area and it will hang around, and we have a weak funnel system headed our way that'll trigger some showers and thud of storms this afternoon, some of which would be strong. It leads to it

not being as humid tomorrow, but it's still hot. And then the heat piece over the weekend where near a hundred by the time we get the Sunday John, Bloomberg Meteorologist Rob Caroline this morning, the operator of a major pipeline from Russia to Europe since natural gas has started flowing again. The pipeline is Germany's main source of runching gas. Bloomberg Stephen Stevinski says they're now watching closely. They see

just how much gas actually comes through the pipeline. There is a steer that yes, we're at right now, but how long will this last? Can you trust putin ke gas from Gage, trust Russia to keep the gas flowing through this vital transit point. You look at what he's been saying, and he said that it doesn't get this vital part, then he's going to reduce flows in his next week, and that causes more distress for the European region, German officials that fear the pipeline might not reopen at all.

Former President Donald Trump was in Manhattan yesterday for the funeral of his ex wife of Donna Trump. More from Bloomberg's Charlie Pillett. This morning, John Trump joined all his children, all the rell tives and friends at St. Vincent for Our Roman Catholic Church on Manhattan's Ouper East Side for Ivanna's funeral mass. Writing on his social media platform Truth Social, Trump called it a very sad day, but at the same time a celebration of a wonderful and beautiful life.

Ivanna and Donald Trump's three children, Donald Jr. Ivanka, and Eric, stood with their father and their families as the gold tone casket was carried from the church. John Bloomberridge Charley Pillett Feizer will spend four hundred seventy million dollars to expand its vaccine research facilities twenty five miles northwest of New York City, with the company hopes to maintain its edge in the booming field of messenger RNA, the technology

behind its blockbuster COVID nineteen shot. The drug baker will construct a new building and renovate existing facilities at its campus in Pearl River. Global News twenty four hours a day on Aerona Bloomberg Quicktake were powered by more than twenty seven hundred journalists and analysts it more than one twenty countries. John Tucker, This is Bloomberg, Nathan. Thanks John. Almost six ten on Wall Street time for the Bloomberg

Sports Update with John stash Our. All right, Nat In the Yankees and Astros have become a rivalry, even though Houston has only been an American League team for a decade, but the Astros have beaten the Yanks of the postseason three times, of course, excused of banging trash cans and signed stealing, and this season they are the two best in the a L could very well be facing off in October again. The two teams WI turned to the All Star break and play a day night doublehead or

in Houston makeups from the lockout. Yankees are sixty four and and Aaron Judge was asked the reason for their success this consistency. I think that's when it comes down to, uh, this this team saying consistent. You know, that's one thing we'll be able to do all year. You know, when it doesn't matter who we're playing. You know, if it's a you know, best team in the a L, or if it's you know, the team in last place, we're gonna go out there and you know, trying to win

every single game, win every single series. And I think that's one thing that's helps uparate us this year from last year. Judge as thirty three home runs, that's how many Roger Marras had at this time, and even this nineteen six one with sixty one homers match turned for the break tomorrow City Field versus San Diego. James Harden traded by Brooklyn the Philadelphia. He declined to forty seven

million dollar option. He's now resigned with the Sixers, will make less, but can be a free agent again next year. The forty Niners last year traded up drafted Tray Lance to be their quarterback. The incumbent QB Jimmy Garoppolo, has now recovered from shoulder surgery, and the Niners have told his agent to try and work out a trade. Seattle, Houston, and Cleveland seen as possible destinations. Giants begin training camp

next week. The Giants news is that for two home games this season, they will wear the uniforms they wore back in the nineteen eighties and nineties. John stash Ward Bloomberg Sports, Nathan all Right, John thanks SMP futures down down two points, Stown futures down fifty eight, nastact futures moving higher now of eighteen points ten. Your treasury down six thirty seconds. The yield three point zero four percent, the euro one point zero one eight eight against the dollar,

head of an ECB decision and pulled. Litical turmoil in Italy Bloomberg opinion columnist Marcus Ashworth joins us next Bloomberg eleven three oh weather heat advisory through eight p m. Sunday. We could have strong thunderstorms this afternoon, going up to the low nineties, low nineties tomorrow, mid nineties. Saturday could hit a hundred by Sunday. Right now eighty in Central Park markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and

at Bloomberg Quick Tape. He's a Bloomberg Business Flash and I'm Karen Moscow. European stocks are steady with US stock index futures as investors brace for the European central banks first interest rate hike in eleven years, while Russia resumes sending gas to Europe through a keep pipeline, dispelling investors worst fears. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now is in P futures,

they're little change. Dow futures down fifty five and nowsday futures higher twenty six. The decks in Germany is down a third of a percent. The ten year treasury down five thirty seconds you three point four percent yield on the two year three point two three percent. Ninemex screwed Oiola is down about five percent, down four dollars seventy nine cents and ninety five dollars nine cents of barrel. COMEX School is down one point two percent or twenty

dollars at six ninety seven seventy. The euro one p seven against the dollar, British pound one point one two and the end at one thirty eight point seven one. And looking at bitcoin, it's down one point one percent at twenty two thousand, nine hundred ninety five dollars. That's a Bloomberg business flash. Now here's John Tucker with more on what's going on around the world. John he Good morning, Karen. President Blinden's today but announce investments in new efforts to

approve community policing in crime prevention. Russia's biggest pipeline at Europe, nord Stream one, has restarted the committee investigating the assault on the Capitol plans to proceed with a prime time hearing tonight. Mario Droni resigns as Italy's Prime minister, throwing

that country in the turmoil. Sports. Major League Baseball returns to action tonight after the All Star Break Global News twenty four hours a day on here and on Bloomberg Quick Take power by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm John Tucker. This is Bloomberg. Nathan alright, John, thank you at his six nineteen on Wall Street Life from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. On the

morning of high drama in Europe. We bring in Bloomberg opinion columnist Marcus Ashworth on Italian Prime minister drags resignation just as his former body, the ECB gets ready for a key policy decision. Marcus good warning, what a confluence of events. What could drag eas resignation mean for the Eurozone more broadly? Oh? Um, well, it can be a lot.

Or at the moment it's uh, he's gonna hang around to October um when as a caretaker, and you know, this is Italian politics, he could well come back, so don't count him out completely yet. But he has had his resignation formally accepted by the President Mattarella, which means that you know this in theory is the end and there will be an election in October six. Obviously, Italian bonds didn't take it very well. Having rallied hard yesterday,

they've collapsed today. It's still not at levels seen perhaps you know last month in June, which was you know, really quite scary at one point teny years got over four four point two percent. So we're not at those levels yet. But we are waiting for the ECB and they're anti fragmentation tool a new safety net um. It's it's it's not gonna be called QUI. It's it's exactly like Q in every shape allards. Eyes are packed. Apart

from the fact they tell you that it's not. Nonetheless, if that's a proper stake in it as an unlimited one, then I think Italian bonds will probably relax them and we can calm down. We also got the first rate height today. It's all coming at the same time. It's crazy for the moment um. Don't panic too much to this anti fragmentation. To all that works affecting from the e CV today apply to the ongoing turmoil in Italian politics. I mean, Italian political turmoil is almost par for the

course in some ways, isn't it. You've got to the nub of it there, and it basically if the ECB has a really tricky problem here and trying to portray that any safety in it is not monetary financing. They're not just simply banning out of government which is not in control of its finances. And that's gonna be the really tricky one. Is there going to be some form of political and economic underwriting of of when this particular tool can be used or is it blind to all

these different things? Who gets to interpret that? Uh? And that is going to be very very difficult thing for obviously Germany. To another more sort of austere countries is when it comes to financial prolicies, how they take it, how they react to it. You know, could there be a fifty basis point rate height to you know, perhap bribe them into accepting a more comprehensive safety net. Or there are also the possibility we don't get the full

details today or not sufficient details from the market. It's a long summer Togo. The next proper meeting might beti September um when we are expecting a bigger right hike. But the point areas is that they President Leguard has got to deliver on a number of different fronts today and a very difficult political backdrop. The chances of it all going wrong and telling yields blowing out are clearly

very high. But she's gonna have to do a very good, big, confident job telling is all that everything's gonna be fine. Since you brought up the debate over whether we're gonna see fifty basis points or twenty five, let's get into that a little bit. What is the case for the ECB to sort of blow past its guidance and deliver

a bigger hike. Well, it's not of themselves. Like always, they're always getting their own way, and they could really step elegantly out this and claim the days dependent and but they do that, it means the whole forward guidance stick and the whole way they've approached everything up to now are very clearly sing things out will be blown out the water and it will be embarrassing and also would make it seem that President the Garden her chief

economists Philip Laine, who are more the Dovish irons, have been overruled and outvoted. So um Therefore, I think they probably will stick with twenty five basis points, even though I believe like most people they should go fifty. So you know, all to play for here, And as I said, it's not the most important thing today is whether the

word unlimited is used with this antifragrammentation tools. If it's not, and it's couched in terms which make it unlikely that certain countries will will take it and use it, will be allowed to or be changed legally, then the whole effect could go unwind and that probably more important than whether it's twenty five or fifty. Now last less than a minute here, Marcus, what about the energy uncertainty with the nord Stream pipeline at least partially getting flows back going.

How does that factor into whatever the UCV decides. Well, it's just am A getting delayed. I mean, I think obviously they'll be grateful for that. They won't and shouldn't take too much comfort for it. It can turn back off again. There's still the turbine sort of refurbishment issue to play for. But the moment, it just looks like, as as we most people expected a little bit of mind games here or game theory going from Russia. They've

turned I've turned it back on. That's the short term good news doesn't mean there will be any chance of getting up to proper capacity by the wintertime. It's still very much open and to playful. So it's just it could have been worse today that it could not have started. The fact that has is, I suppose a small good news, but an awful lot more to happen. It's gonna be a busy day, yeah, busy summer as you alluded to. Thank you, Marcus great having gone with us. Marcus Ashworth

of Bloomberg Opinion. Check out more from our opinion calumnists O P. I N Go on the Bloomberg Terminal or NI Ashworth Girl see everything. Marcus is contributing as part of our team of opinion calumnists on the Bloomberg Terminal. Right now, SMP futures little change down a point. Dow future is down fifty one, Nastack futures are higher by twenty four points ten. Your treasury down five can seal

three point zero four percent? This is Bloomberg Bloomberg eleven three or whether the heat wave continues Heat advisory till eight p m. Sunday today. We could see some strong storms right now It's eighty degrees in Central Park. Broadcasting live from the Bloomberg Interacted Broker Studio in New York.

Bloomberg E Living Freedom to Washington, d C. Bloomberg one to Boston, Bloomberg one, O six one to San Francisco, Bloomberg nine sixt to the Country, Sirius XM Till the one nine team, 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, but I'm Karen Moscow. We are just about three hours away from the open of US trading. Time for the five things that you need to notice. Start your day

bronck to you by Interactive Brokers. Interactive Brokers symbol IBK, our Global Trader app. Deposit in your local currency and trade stocks in the US, Europe and Asia. Start your free trial at ibkr dot com. Slash Global Trader. First returned to Italy, where Prime Minister Mario drag has offered his resignation to Italy's president. The move comes as the European Central Bank is set to raise interest rates today. Bloomberg News Senior editor in Italy, Gerald Colton says it

makes the ECB meeting all the more important. It underscores the fragility of countries like Italy. You can see that the bond the bond market has closely tracked the stability of the draggy government jog. He has been seen as the sort of a guarant for of obstability for for Italy and for you know, and for the weaker countries

in in the European Union at large. In reasones the States for what's happening today, Bloomberg News Senior editor Gerald Coulton says elections are the next step in Italy, likely to take place later this year. Well. Turning to US corporate earnings, Karen Shares of Tesla are up three and a half percent in early trading. The EVY leaders second quarter earnings beat Wall Street estimates. Morning Star Energy and Resources equity analyst Seth Goldstein has more on the company's

outlook this year. A few surprises, no announcements of new vehicle delays or anything. The four, six, eight cells are still ramping up. So all in all, just another quarter where Tesla will continue to execut and I've expected things to improve throughout the rest of the year. Well Learning star Seth Goldstein says lockdowns in China do pose a threat to Tesla this year. Meanwhile, a growing number of companies are slamming the brakes on hiring. Bloomberg's or Needy

Young joins US Live with more on that story. Good morning, Ready, Good morning Karen. Microsoft, Google, and Lift are some of the latest companies to freeze hiring as a recession fears loom, inflation mounts, the war in Ukraine continues, and the lingering pandemic takes a toll. Microsoft is eliminating many job openings. Google's pausing hiring for the next two weeks. Lift is shutting down a division and trimmy jobs. Meanwhile, Bloomberg so versus say Ford is preparing to cut as many as

eight thousand jobs in the coming weeks. Live in New York. I'm really need a Young Bloomberg daybreak. Thanks for Needing. The news of the slowdown in corporate hiring comes as the Labor Department gets ready to issue weekly jobless claims. Data economists forecast claims will remain elevated after they set a record low earlier this year, and a t n T crossing the Bloomberg now right now, it's earning second

quarter profit, beating analysts Estimates. Says the five things you need to notice start your day, brought to you by Interactive Brokers, straight Ahead, your latest local headlines, Spuster, check of Sports, and this is Bloomberg. Thanks Karen. We're at six thirty three on Wall Street, seventy nine degrees in Central Park with that heat advisory all week long. Still dealing with an accident southbounds two eight seven. It's closed after roots seventeen. John Tucker has more on what's going

on in New York and around the world. John Man, if you were looking for a quick relief from shoring temperatures, Nathan, forget about it. Bloomberg Metirama just just Rob caren Lyin says we will be approaching triple digits. John. The Tristate area now under a heat advisory until eight p m. Sunday. It is going to be very uncomfortable over the next couple of days. Tomorrow is the best day out of the next four because the humidity falls a little bit,

but it's still very hot. Big issue today not only the heat, but the potential for afternoon showers and thunderstorms. Some of which may be strong with heavy rain, vivid lightning, and gusty winds, and by Sunday we could see parts of the Tristate area near hundred John Bloomberg meteorologists rob Caroline, civil engineers and transit authorities. So the heat is threatening rail networks, amtrack and posed heat related speed restrictions within

its northeast quarter. The pharmaceutical giant Visor expanding its facilities in New York. More of that story from Bloomberg's Jeff Bellinger. Visor will spend four hundred seventy million dollars to expand its vaccine research facilities twenty five miles northwest of the city. The drugmaker will construct a new building and renovate existing facilities on its campus in Pearl River that has been the nexus of oborratory research driving its vaccine programs, including

the one for COVID. In partnership with myon Tech, the company hopes to maintain its edge in the booming field of Messenger RNA. Jeff Bellinger Bloomberg debris Russia's moving to annex occupied Ukrainian territories. The Kremlin in a dashed to hold referendums in those areas occupied by its troops to give grounds for President Putin to absorb them into Russia. Sources tell Bloomberg it could come as early as September. Meantime, Russia started sending gas through its biggest pipeline to Europe.

The resumption of exports will provide some relief for the continent that's racing to store the fuel before winter, but now may also ease fears of a massive economic damage to the European Union. And a healthy majority of Americans don't want to see either Joe Biden or former President Trump run again. That's according to a Quinnipiac University poll. Biden's approval rating filled to thirty one percent. Fully sixty

four percent of Americans. I don't want to see Trump make another White House bid, according to the Pole Global News twenty four hours a day on errand on Bloomberg Quicktake power by more than twenty seven hundred journalists and analysts and more than one twenty countries. I'm John Sucker. This is Bloomberg, Nathan, Thank you, John. Almost six thirty six on Wall Street, John Stashower has a Bloomberg Sports update.

Thanks to Nathan Yankees and Astros, We're supposed to start the season in Houston, that series put off due to the lockout. Yanks went there a few weeks ago for one game. They're back today for a day night double. Ahead of these two far and away the two best teams in the American day, they could certainly be meeting in October, and if so, it would almost certainly be for the pennant Astro's have ended the Yanks season three times since two thousand and fifteen, twice in the ALCS.

It's been so far a storybook season for Aaron Judge. Thirty three home runs and playing for a team that is sixty four and there's still a long way to go. You know, this team and you know myself, we set ourselves up for a good position. Um, there's still a lot of baseball to players. Still a lot of game

is to play, you know. So the minute I sit back here and you know, sit back in a comfy chair and say, well, you know, we got thirty homers, we got this and that, then someone's gonna pass to our next team is gonna, you know, start creeping up on You're gonna standing and so I just you gotta keep her, you gotta keep the blinders on. That's what certainly all start break tomorrow at home against San Diego.

Jacob Degram today will throw a simulated game, pushed back a couple of days, but the hope is that the next time to Grams on the mound, it's his Mets season debut. James Harden, staying in Philadelphia, acquired in a trade with the Nazi, declined a forty seven million dollar option, signed for less, but he can be a free agent again next year. As to the Nets, trying to decide what to do, Kevinaurant wants to be traded, will they

keep Kyrie Irving? And the next said to be attempting to acquire Donovan Mitchell from Utah, but the latest word on that is that the Jazz are in no hurry. Miles Bridges, Charlotte's leading score last season, was in court yesterday pleading not guilty the three felony domestic violence charges. The forty Niners have told quarterback to be Garoppolo's agent to try and work out a trade as they make room for Trey Lance. The Giants announced they were throwback

uniforms twice next season. Golf Andrik Stenson joined the Staudi back Lift Tori. He has now had his job of European Ryder Cup captain taken away. John Stash a Bloomberg Sports Nathan Okay, John, thank you. It is six thirty seven on Wall Street. Time to take a look at stock some of the names moving in the pre market. For that, we're joined this morning by Bloomberg Market slave reporter Heather Burke. Heather, good morning. Sounds like Tesla investors

liked what they heard from earnings last night. Yeah, Hei, so, Tessa was up about three point five. Um. So, the electric vehicle maker reported second quarter profit that beat, and it kept its production forecast for fifty average annual growth over a multi year horizon. Um Musk said that the company were going through supply chain hell, but believes that it can emerge from it in the second half of

the year. Um. The flip side to that is some crypto exposed stock such as micro Strategy and coin base are dropping in pre market trading. Um. That's because bitcoin into declines after Tesla disclosed that it's sold the majority of its holdings during the second quarter. Yeah, not surprising to see that kind of move after that sort of eyeball raising announcement from Elon Musk. Karen also just mentioned moments ago we got earnings from A T and T

and earnings beat. How's that stuck doing. Yeah, it's still a little bit. Um So the exceeded the estimates on profit and wireless subscriber groups because of deep growth because of deep discounts on new phones. Um even though you know bills are getting more expensive. But the company lowered its free cash flow forecast because of higher spending on those promotions and network gear. Okay, and we got some

other earnings as well, including al Cola. Another earnings beat there. Yeah, so they are up about five six um so it's aluminum producer. They are adjusted EBATA topped average analysts estimates, and they also announced an additional five million authorization for future repurchases. And some news from Carnival a share offering for the cruise line. Yes, so they are down like eleven percent in pre market trading, and also that you Care Shop shares have been down, so they are launching

a one billion dollar share offering. It's one of the largest US equity races to date. Um. It has to help address its debt maturities. And finally, Heather muted outlook from United Airlines. Yeah, so they are limiting flying for the rest of this year and killing its growth plans next year because they're trying to get a handle on the flight disruptions that are royal the industry. That being said, it continues to expect profits amid robust travel demand. So

these two factors are really weighing on airline stocks. Okay, thank you as always. Bloomberg Markets Live reporter Heather Burke. Check out more of her work on the Markets Live blog m l I v GO M Live on the Bloomberg terminal. Looking ahead to the market open, SMP future is little changed, down one point. The future is down fifty three Nastack futures are higher just a bit, up twenty six points. The tenure Treasury is down to thirty seconds. Yield three point zero three percent yield on the two

year three point to two. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather heat advisory through eight pm Sunday. Strong storms possible this afternoon, low nineties sunshine, low nineties tomorrow could hit a hundred by Sunday. 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 hand at Bloomberg Victape, He's a Bloomberg Business

flash and I'm Karen Moscow. SMP futures are moving lower this morning. We got to the first word breaking news days for today's morning call, and here Bill Maloney, Bill, good morning, Hey, Good morning, Karen. Overall US futures trading mixed right now, with DEAT futures lotted by seventy eight points. Like you said, smps are down, while Nasdaq futures are higher by nine. The US ten year old at three

point oh four percent, Gold is down twelve. Oil is also under pressure, and bitcoin is down by one point to percent. Hong Kong fell one and a half percent overnight, while europ markets are trading mixed this morning, and back in the US on the economic front, at A thirty

initial jobs claims and Philly fed after develous night. Tesla epsped simates it also sold a chunk of its steak in bitcoin and regarding earnings this morning, a T and T E p sped estimates also look for Philip Morris and Union Pacific to report in the pre market and under news Carnival is selling a billion in stock and wrapping things up. Docu sign was cut to underweight over at Piper Live from the first Breaking news descom Bill Maloney.

Karen all right, Bill, thank you, man to hear live breaking news over your Bloomberg type squawk on your terminal squ a w K and that's a Bloomberg business flash down. Here's John Tucker with more on what's going on around the world. John and Karen. The committee investigating the assault on the Capitol plans to proceed with a prime time hearing tonight. Mario Drage resigns as Italy's Prime Minister, throwing that country into turmoil. And Russia's biggest pipeline to Europe.

Nord Stream one has restarted. Sports. Major League Baseball returns to action tonight after the All Star Break Global There's twenty four hours a day on Aerona Bloomberg Quick Take. We're powered by more than twenty seven hundred journalists and analysts and more than one twenty countries. I'm John Tucker. This is Bloomberg. Karen all right, John, thank you. It is sixty eight on Wall Street returned to news and Science and Technology Now with the Bloomberg and J I. T.

Stemm report. It is that brought to you by New Jersey Institute of Technology, 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 here's

just making news. In science, Technology, engineering, and math. Tesla has sold a significant and chunk of its steak and bitcoin the electric car makers one and a half billion dollar investment in the cryptocurrency last year helped legitimize it, and a shareholder letter out Wednesday, Tesla said it has converted roughly sevent its bitcoin into fiat currency. A bitcoin impairment hurt second quarter profit. China has find ride hailing giant d D Global more than one point two billion dollars.

That wraps up a year long investigation that symbolized Beijing's tough campaign to rain in its powerful internet industry. Last year, d D pushed ahead with an i p O in the US against the government's wishes, and on the fifty three anniversary of the Apollo eleven lunar landing, NASA announced yesterday it's shooting for a late August launch of its giant new Moon rocket. NASA will attempt the more than month long lunar test flight with three mannequins but no astronauts.

The thirty story is Space launch System rocket and attached to Ryan capsule are currently in the hangar at Kennedy Space Center following repairs stemming from last month out down test and as of Bloomberg and j I t stem report Nathan small step for mannequins. All right, Karen, thank you, six fifty on Wall Street. We're live from the Bloomberg

Interactive Broker Studios. Time now to check what's going on in d C. Some of the top stories in our nation's capital include President Biden seeing a call with China's Chi Jin Ping in the next ten days, the President to propose a new policing plan with worries about crime on the rise, and Democrats making new bids to ban assault weapons, support same sex marriage, and today decriminalized marijuana. Also making news, the final prime time hearing set for

the House January six committee. Let's get a preview now from Bloomberg Government congressional reporter Jack Fitzpatrick and Jack I suspect the number we are going to hear a lot tonight from the January six committee is seven. Yes, that is the number of minutes of inaction that they are highlighting from Donald Trump at the time. Uh, they'll be sort of zeroing in on what he didn't do to help, including the long delay before you put out a video

message asking people to go home. So this will be hearing very focused on Trump's in action or some actions, and why the committee feels that he was derelict of duty on January six, the and and really zeroing in on the primary character they're focused on rather than the peripheral people. They have two Trump aids who were will testify, and as we've seen in other hearings, a lot of

videos from the interviews they've done with others. Now, the committee up to now had sort of telegraph that this was going to be a culmination, this final prime time hearing, but there's still investigating, right, I mean they're still getting information coming in. Yeah, it's less clear exactly how the committee is going to wrap things up. Now. There's potential for more hearings there, they could continue talking to people.

There's the outstanding questions of the missing Secret Service text messages. Um, it's just Over the course of the last couple hearings, there's been enough news, uh to sort of motivate the thought that they could continue this. How they wrap it up exactly is not clear. They still plan to do a report in September, but that's more likely to be

an interim report than a final report. And we don't know exactly when to expect any criminal referrals going to the Justice Department, which really would be that would be the biggest culmination of all of this, But there's not really a timeline for this to be wrapped up just yet. All Right, Well, we'll see how this final primetime hearing goes. At least to this trunch. We'll have live coverage for you this evening starting APM. Wall Street Time right here

on Boomberg Radio. In the meantime, Jack, President Biden's back from that climate announcement in Massachusetts and making some news about his plans to have a conversation once again with the president of China. Yeah. President Biden said he expects to speak with Shijin Ping in the next day, next ten days. Uh. So, it raised a lot of questions about one China hasn't the Chinese government hasn't confirmed that it's not on the schedule yet, but it's obviously a

major bilateral relationship. It it raises questions about Trump tariffs and if the Trump administration and tariffs are going to be eased off at all, or if there will be a conversation about that given the inflation numbers that we've seen in the pressure that tariffs can create. Uh, the the relationship with Russia and frustration that China didn't join other countries in UH in pressuring Russia due to their

invasion of Ukraine. UH, climate is a major one. Uh. We haven't gotten confirmation of, you know, the timing or exactly what the agenda is, but the fact that President Biden himself says he expects this call to happen is very significant. Yeah. And even if tariffs don't necessarily come up directly, Jack, I mean, there are, as you allude to, a lot of pressure point between the US and China, particularly with these reports that how Speaker Nancy Pelosi might

be thinking of going to Taiwan next month. Yes. Uh, that actually was planned even earlier in the spring, and Pelosi got COVID and that put it off. Biden just said yesterday that the US military doesn't think that's a good idea to do that. UH. For for Pelosi to make that trip to Taiwan should be the highest ranking UH member of the US government to visit Taiwan in

many years. UH. It's interesting to see that divide with Biden acknowledging that there is some pushback to Pelosi's plans, but he he didn't say he is actively lobbying against it from happening. UH. So that that would be clearly the biggest August Recess Codel congressional delegation visit of the year for sure if it happens. Now we know President Biden has another trip on his schedule today. This one, I guess is focused on crime fighting initiative. Yes, he's

going to wilkes Bury, Pennsylvania. He's got uh an outline that the White House put out this morning calling essentially for a thirty five billion dollars Safer America plan in addition to two billion dollars he's requested through the normal funding process. UH. There are a few things in there. One, there's he wants to start a fifteen billion dollar grant program to hire and train a hundred thousand police officers.

He's gonna be talking about that kind of thing, UH in Wilkes Barre, which is actually represented by Matt Cartwright, UH Democrat in the House, who faces a competitive reelection campaign, who's also in charge of the subcommittee for funding the Justice Department and police grants. So clearly a bit of a response from the White House to UH public frustration

with crime and dissatisfaction with the Biden administration's response to it. UH. This is not a piece of legislation with a glide path forward, but it shows the President feels the need to respond to some of that dissatisfaction with more plans

UH in support of police. In our last minute here, Jack, there's been so much focus on Capitol Hill on the negotiations over an economic package, but all of a sudden, it seems like Democrats are spinning a lot of plates now with an assault weapons ban moving forward, a gay

marriage bill, and now this morning, a bill to decriminalize marijuana. Yeah, quite a few things that they're trying to fit in before heading out in UH it early August for about a month long recess on the UH markup of the assault band weapon one that is something that the President might get into today. The Judiciary Committee got that out of committee. It's something very difficult, uh, to get on the floor with the very narrow margin that Democrats have

on the House floor. Uh. Interesting that to see them push that, but they may not end up having enough votes to pass it on the House, let alone the Senate. Uh. The gay marriage one may potentially get sixty votes in the Senate. We're still amid a whip count to see if they can get ten Republicans to joining in. Uh. It's possible that that could get the requisite sixty votes. Uh. Probably a better chance of that than the assault assault

weapon ban Alright. Bloomberg Government Congressional reporter Jack Fitzpatrick with us this morning from our Bloomberg studios in Washington, d C. Where you can listen to Bloomberg Radio in the nation's capital. And of course you can find more on all these stories we've been talking about on Bloomberg dot Com or on the Bloomberg terminal. SMP Future is now down six points down. Future is down eighty four NASDACK Future is

a touch higher, up six points now. Tenure Treasury is down to thirty seconds, yield three point zero three percent, and the yield on the two year right now three point to two percent. Bloomberg Surveillance is next, with Tom Keene, Jonathan Faraoll Kayley lines in for Lisa Abramowitz for Karen Moscow. I'm Nathan Hager. This is Bloomberg.