Bloomberg Daybreak: July 25, 2022 - Hour 1 (Radio)

the nation's capital. I'm John Tucker. Those stories straight ahead. I'm John Stastow and sports p Alonzo, the Big Glow for the met to the one over San Diego, Aaron Judge Homeward again the Yankees won in Baltimore. That's all training ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x AM 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 and US stock index futures are higher this morning. We're coming up to five oh one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg, Guess and P Future is up, Abody points down, Future is up fifty two, Nasdack futures at thirty one, and a ten year Treasury down fifteen thirty seconds, yield two point eight zero percent, and the yield on the two

year at three point zero zero percent. Nathan Karen, we begin with this week's highly anticipated FED meeting. The decision comes on Wednesday. After raising rates sharply in June, j Pal and his colleagues are expected to approve another seventy five bases point hike while the Fed titans policy to get inflation under control. Treasury Secretary Janet Yellen says she does not see any signed the economy is in a

broad recession. We're likely to see some slowing of job creation um, but I do I don't think that's that's a recession. A recession is broad based weakness in the economy. We're not seeing that now. Treasury Secretary Janet Yellen made the comments on NBC's Meet the Press heard Sundays on Bloomberg Radio. Well, despite Yellen's comments and Nathan, investors are

skeptical to Fed contain inflation without a recession. That's according to more than a people who responded to a Bloomberg and Live Pulse survey Beget more from Bloomberg's Heather Burg. Over sixty percent of the respondents in the survey said there's a low or zero probability that the FED can

rein in inflation without causing our recession. And about two thirds of the respondents expect the ten er treasury yield to peak over the next nine months at the low three point seven percent, and most think that the Fed is going to start cutting rates in so definitely, it's a pretty muted outlook going into Bloomberg's Heather birth says, the majority in the survey say the FED funds rate will peak at four percent or less. Oh another note on inflation, Karen, prices may be close to peaking, but

they won't come down quickly. That's according to an analysis by Bloomberg Economics, which things inflation is likely to stay above eight percent through the end of the year. In fact, the team's model assigns zero probability that inflation will drop below four percent. In the feed is not the only thing and focus this week, Nathan, it's also a big few days for major tech earnings. You get more from

Bloomberg SHIRLEYE. Pillett. It's a week one we'll hear from names including Alphabet, Apple, Amazon, Microsoft, and Metal Platforms, among many others. We will also hear from more than thirty percent of S and P five hundred companies. Liz Young is head of investment strategy at SO five. Earning season has been mixed, not terrible so far, but we have heard from a lot of companies that they're thinking the following environment is going to be more challenging, so they're

preparing themselves for that challenge. Also on deck this week three m Boeing, Chevron, Coca Cola, GM, Hilton, MasterCard, mcgarld's Proctoring, Gamble ups and Visa in New York. Charlie Palett Bloomberg Daybreaking. All right, Charlie, thank you, and earnings are all self ront and center in Europe this week, let's go live to London get the latest with Bloombergs You and Parks. Good morning, Good morning, Nathan and Karen A bump a week for European earnings. Ryanair has posted a profit for

the first quarter, ahead of estimates. Europe's largest discount airline says it's cautious about bookings, though beyond the current summer travel boom. Meanwhile, first half profits slumping at Swiss Swiss Wealth Managers Julius bear that's as wild market swings spooks clients. And a cut to sales guidance for this year from medical equipment maker Phillips. It's been hit by inflationary pressures,

supply chain troubles and COVID lockdowns in China. Phillips the worst performing share on the Stocks hundred today, down more than ten percent in London. I'm you in parts been book daybreak you, and thank you. In other news this morning, international concern is growing over monkey parks. The World Health Organization has to clear the monkey parks outbreak a public health emergency. We get the latest live from Bloomberg's n Need a Young, Good Morning, Rained, A Good morning, Karen.

The lack of urgency and coordination in testing and treatment for the monkey pox virus in many parts of the world has prompted the World Health Organization to sound the alarm. The virus has spread to about sixteen thousand people in more than seventy countries in just a few months, and White House COVID nineteen Response Coordinator dr Ashishja says monkey pocks can be contained. The way we contain monkey pox is we have a very simple, straightforward strategy on this right,

which is make testing widely available. We have done that, and now testing is far more frequent and common. We're gonna be releasing hundreds of thousands of more vaccines in the next days and weeks. Dr Ashishja made the comments on CBSS Face the Nation. You can hear the program on Sundays on Bloomberg Radio Live in New York. I'm rened a young Bloomberg Radio. All right, Nita, thank you.

We also have a COVID pandemic we're still under and we've got an update this morning on President Biden's condition as he recovers from about with the virus. Amy Morris has that from our Bloomberg room in Washington. White House physician Kevin O'Connor says President biden symptoms are improving significantly, with the most prominent symptom now a sore thrope O'Connor says the seventy nine year old, who is vaccinated and double boosted, is responding to therapy is expected, and his

other symptoms have diminished considerably. Biden is being treated with paxslavi it. He takes Thailand all and has been using an inhaler two to three times a day. The White House says he's still working as he continues to isolate in Washington. I'm Amy Morris Bloomberg debris right, Amy, thank you well. Incorporate news. This morning. Apple has announced a rare retail promotion in China. It's offering four days of discounts on its top tier iPhones and related accessories, aheaded

a launch of its next generation devices. The company is historically reluctant to Walter pricing. The discounts come as China's economy tries to bounce back from major COVID lockdowns in Shanghai and Beijing. Finally, Karen Elon Musk is denying he had an affair with Google co founder Sergey Brinn's wife. According to the Wall Street Journal, this alleged affair took place in December. The newspaper says it led Brand to sell his investments in Musque's companies. Musk says the story

is untrue and that he's still friends with Bran. Bran filed for divorce in January. Straight ahead, we have your latest local headlines and a check of sports. This is Bloomberg the South five oh seven on Wall Street, eighty two degrees in Central Park and an accident already on the way to jaff Careport westbound belt Parkway in your Cross Bay. Details coming up in traffic. First John Tucker with more on what's going on in New York and

around the world. Good morning, John, Nathan historic Keith has many people struggling to pay the utility bills, and as Bloomberg's dedas Fella Greeny tells us, the Senate majority of Leader Chuck Schumer says people need more help. Senator Schumer says demand for New York's federally funded cooling assistance program

is unprecedented. Area has been such a big demand for this program giving the heat way the occasions went up from about ten thousand to thirty thousand increase in demand, and is proposing adding billions of dollars to the budget for the program after it had to stop taking applications

because it was so oversubscribed to the spell. A greedy Blueberg radio a destructive wildfire ne Usemity National Park has burned out of control through tinder dry forests and has grown into one of California's biggest blazes of the year. It's forcing thousands of residents to flee remote mountain communities. Sheriff Jeremy Breeze as the fight is far from over.

There is hot ash, hot trees, still stuff throwing stuff over the line, causing US concerns, and two thousand firefighters battling the Oak Creek fire facing tough conditions including steep terrains, sweltering temperatures, and low humidity. Donald Truphy is coming back to Washington as Republican rivals maneuver for a possible primary challenge. Lowmakers probe his culpability for the January six insurrection for were president with the liberal keynote speech yesterday Tomorrow at

the America First Agenda Summit, a conservative conference. A live stream of a church service in New York was interrupted Sunday morning by a robbery. Three gun toting thieves entered the Leaders of Tomorrow International Ministries in Brooklyn, demanding valuables from the Bishop Lamar Whitehead. You know, took my watch, took my jury, took my bishops ring, took my wedding ben and then they took my bishops across the bishop says. The thieves drove away, drove away in a white Mercedes.

New York City is ranking n thre in the US for public bathrooms per capita, and now there's a bill aimed at opening more public bathrooms. It has the support to pass the City Council by the end of September. The effort comes after widespread shutdowns during the early days of the pandemic made it even tougher to find a restroom. The m t A, for instance, shuttered all seventy six

toilets in the subway system. Could the news twenty four hours a day on Aaron on Bloomberg Quicktake power by more than journalists and analysm more than one hundred twenty countries. I'm John Tucker. This is Bloomberg. Nathan, Thank you John. Almost five ten on Wall Street. Time for the Bloomberg Sports Sunday. Good morning, John Stonshire, Good morning, Nathan, Aaron,

Judge Peter Alonso, the two New York City Sluggers. They've got the two most runs vetted in the majors, and they'll be facing on tomorrow Wednesday a brief subway series at City Field. Yesterday in Baltimore, another home run for Judges thirties seven. He hit three in the series and in the game where he did in. Homery had four hits, Jose Trevino had four hits, and Nestor Cortez and the Yanks shut out the oriol six nothing. Last night City Field,

Mets held scoreless until the sixth inning. At that point they'd only scored two runs in the series. Alonso then unloaded three run homer. Mets went on to leave the Padres eight to one, and then held on to win eight five in Atlanta, law So that met their game and a half ahead of the Braves. Among those and ductor of the Baseball Hall of Fame, Gil Hodges, fifteen years after his death, he was one of the Boys of Summer bolog Brooklyn Dodger for Spaceman. His daughter Irene

made his induction speech. When my father slumped in the nineteen fifty two World Series, Brooklyn fans loved him. Who goes over one and gets the standing ovation every time at bat Mets fans loved him too. I just, of course the manager of the Miracle Mets in nineteen sixty nine, Cleon Jones Ed Cranepool, Art shampste Ron Swavoda and the

daughter of the late Tom Siever. We're all there in Cooperstown where David Ortiz, Jim Cott, Tony Oliva and the late Mini Minosa and Buck O'Neal were all inducted as well. Three AM Golf at Minnesota, Tony fine out trailed by five shots with eleven holes to play, and he won by three. John stash Award Bloomberg Sports Nathan, Thank you John. Right now, SMP futures are up ten points, staff futures up seventy six. Dance dec futures are highed by thirty

six points. The tain your treasury is down sixteen thirty seconds yield two point eight zero per cent on FED decision week. We'll take a look at these markets next with Lorie Calvin seen ahead of US Equity strategy at RBC Capital Markets. This is Bloomberg Bloomberg eleven three oh weather.

We got a heat advisory till eight pm for parts of northern New Jersey, will get in your ninety today, mid eighties, less humid tomorrow, oper eighties on Wednesday right now two in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com and Bloomberg Business Outland. At Bloomberg Quick Tape, He's a Bloomberg Business Flash and I'm Karen Moscow. US dot Index futures on the rise this morning, while European shares are little change.

Treasury yields advancing. We checked the markets every fifteen minutes throughout the trading day on Bloomberg right now, s and P futures are up about eleven foys down futures of A D two and nasdack futures of thirty nine. The Daccine Germany is higher, up about two tents of upper cent ten year treasury down seventeen thirty seconds. He had two point eight one percent. They yield on the two

years at three percent. Nivex screwed oil is up six tents percent, or fifty seven cents at ninety five twenty eight cents a barrel. Comics gold is up a tenth of a percent of a dollar seventy at seventeen forty seven, announced the euro one point oh two four three against the dollar, British pound one point to zero four two and again one thirty six point three nine and looking at bitcoin, it's down the most three percent at twenty

two thousand fifty dollars. And German business confidence deteriorated to the worst level since the early months of the pandemic on growing concerns that record inflation and limited energy supplies from Russia will our Europe's biggest economy into a downturn. As a Bloomberg Business flash, now here's John Tucker with

more on what's going on around the world. John, Good morning, Good morning, Tarring the international concern growing over Monkey Box, the World Health Organization has declared the monkey Box outbreak a public health emergency the White House physicians as President Joe Biden is improving from his COVID nineteen infection. And a distracted unidfire near you Sebody National Park burning out of control through Tinder Drive forest, thousands of residents have

been evacuated. Sports The Yankees beat the Orioles, the Men's stop the Pondres, the Red Sox fold of the Blue Jays, Dodgers beat the Giants, and the Nationals, Beat the Diamondbacks Global News twenty four hours a day on There and on Bloomberg cuicktake Power by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. On John Tucker, This is Bloomberg. Thankay, John, Thank you. It's five nineteen on Wall Street Live from the Bloomberg

Interactive Broker Studios. This is Bloomberg Daybreak. As we get started on a very important week for investors. Lori Calvacina is with us this morning, Head of US Equity Strategy at RBC Capital Markets. Lori, it's great to speak with you this morning while we all get ready for this FED decision coming up on Wednesday. The markets have pretty much priced in a seventy five basis point rate hike. What do you think the market reaction is going to

be from whatever the Fed does decide on Wednesday? Well, well, thanks for having me. As always, I think that, as always with these events, it's really more about the details, um in terms of the commentary that's made afterwards, and at least at this point in time, it seems like there's pretty much of a consensus in terms of what the set is going to do. But I really think

it's a forward look. One of the things that you know, I continue to talk to investors about is just the whole sensitivity of the FED to how these policies are reverberating in the economy. So I think if there is any indication that the SID is sensitive to that issue, I think that's something equity investors would hear. But of course, you know, unfortunately don't have a crystal ball, so it's

hard to say exactly what Powell will say. But I think that sort of understanding the SED sensitivity there is something equity investors are always keen to know. Now we sort of have a dueling forecast for what the FED could do as we get further along in this tightening cycle.

We've heard from Morgan Stanley strategists saying that the recession risk is growing and that stocks may have more room to fall here, while JP Morgan Chase is saying that maybe inflations peaked and there could be tail winds for stocks. What's your view on recession risk going forward? So I'll tell you that I'm in the camps that agrees that the recession risks have risen and we do need to

be vigilant. But I'm an equity strategist, so I care about how equity markets digest us as opposed to making the economic call. And I will tell you that draw down already in the S and T it's come very very close, and that's where we're at the low and mid June. It's come very close to pricing and a typical recession. And if you look at small cap stocks, they essentially are pricing in a recession. They're already pricing in,

for example, a big spike and job with claims. They're already pricing in a plunge in I S M manufacturing back to trough like levels if you just look at the relationship between the performance of those stocks and those economic indicators I mentioned. So I am more interested these days in adding on to rebound trades. We think that

the fensage are overbought and overvalued at this point in time. Um, And I will just tell you John that if you go through the e c SC function on Bloomberg, which is something I do quite frequently, there aren't that many economists that are actually calling for an outright recession, but voices calling for the recession are quite loud, but if you look at streak a consensus economic forecast, it's really more for something coming close to contraction in the fourth

quarter and really moderating to below trend type levels. And I think that's what equities are digesting at this point in time. Late last week, you made a pretty significant call to go overweight now on small caps stocks. Talk a little bit more about that. Why you're thinking that we should be cutting more toward small caps as opposed to larger ones. Yeah, so, John, small caps are my

first professional child. Has spent about seven years exclusively covering the space back in the day um, including the ol oh you know, kind of oh nine period, which was quite dicey for the asset class. And you know, one of the things we know about small caps as they do tend to price in risks quite early. So I mentioned they're already pricing in this big deterioration. Certain uh

very's sensitive economic indicators. But if you look at the valuations where at historic lows and small verses large um. You're also if you back at mid June, we were trading around eleven times a forward pe multiple and the Russell two thousand, and that is typically where the index bottoms out at If you also look at c FTC positioning, data positioning among asset managers and features, market for Russell two thousand features was well below financial crisis lows, making

essentially massively new all time lows. That is astounding to me. It tells me, whatever your view of whether or not recession is coming, this is one area of the market where it has clearly been baked in. And we do know going back over time, recessions are historically fantastic buying opportunities for small caps like underperformed going in midway through the recession, you tend to see a big pivot and

they outperform very strongly on the way out. And we think that we're getting closer to that inflection point if we aren't at it already got about him in left here, Laurie. We are going to hear from some big names in big tech this week in earnings. What's your expectation there? So I think that this is a bell Weather group. Um, you know, I do sort of, you know, care more about what classic tech is saying as opposed to communications

services internet type names. Um, you know, we're we very keenly watched the software companies to see what the clues are in the corporate behavior. And I think for the corporate reaction, UM is going to really tell us how deep for this economic carnage economic damage that we may be facing gets UM. So I think that's really what I'm going to be looking for. But I do think the text stocks are reasonably valued at this point in time.

So let's keep a close eye on the commentary. Yeah, we'll be watching for Thanks as always, LORI, great to have you on with us. Lori Calvacina, head of US Equity Strategy at RBC Capital Markets. Right now, SMP futures are up thirteen points, STOUT futures up ninety NASTAC futures are higher by fifty one points. Tend your Treasury is down fifteen thirty seconds. The yield two point eight zero percent.

Yield on the two year right now two point nine nine percent just ahead Why Treasury Secretary Yellin says she does not see recession in the US economy. And Bloomberg m Live Pulse survey on where the Fed is going when it comes to inflation. This is Bloomberg Bloomberg eleven three oh weather heat advisory for parts of northern New Jersey today till eight pm. We're all getting them near ninety degrees today, mid eighties tomorrow upr eighties by Wednesday

two is the current temperature in Central Park. Broadcasting live from the Bloomberg Interactive Broker's studio in New York, Bloomberg E Living Freedom to Washington, d C, Bloomberg nine nine one to Boston, Bloomberg one All six one to San Francisco, Bloomberg M sixteen to the country Sirius XM Cho one nine teen, and around the globe the Bloomberg Business app 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 mos Gali. Are just about four hours away from the open of US training. Must get you up to date on the news you need to know at this hour. We begin with this week's highly anticipated FED meeting, when Chair J. Powell and his colleagues are expected to once again approve US seventy five basis point hike so far. Our Treasury Secretary Janet Yellen says she does not believe the US economy is in a broad recession, but inflation is still a concern. Inflation is way too high.

The FED is charged with putting in place policies that will bring inflation down, and I expect them to be successful. Treasury Secretary Janet Yellen made the comments on NBC's Meet the Press, and you can hear the program Sundays on Bloomberg Radio. Well, despite what Yelling saying, Karen, investors remain

skeptical that the Fed will contain inflation. That's according to more than people who took part in a Bloomberg m Live Pulse survey, and according to a new model from Bloomberg Economics, inflation is very likely to stay above eight percent through year end. Well, Nathan. Big tech earnings are also in focus on Wall Street. We'll hear from Alphabet, Apple, Amazon, Microsoft, and Meta this week. They joined more than S and

P five companies scheduled to report. Well Apart from corporate news this morning, Karen, International concern is growing over monkey pox. The World Health Organization has declared the outbreak of public health emergency, and we get the latest live from Bloomberg's We Needed Young. Good morning, Rida, Good morning Nathan. The

lack of urgency and coordination in testing and treatment. For the monkey pox virus in many parts of the world has prompted the World Health Organization to sound the alarm. The virus has spread to about sixteen thousand people in more than seventy countries in just a few months, and White House COVID nineteen response Coordinator dr Ashishja says monkey poks can be contained. The way we contain monkey pox is we have a very simple, straightforward strategy on this right,

which is make testing widely available. We have done that and now testing is far more frequent and common. We're going to be releasing hundreds of thousands of more vaccines in the next days and weeks. Dr Ashisa made the comments on CBSS Face the Nation. You can you the program Sundays on Bloomberg Radio Live in New York. I'm Renda Young Bloomberg Radio. All right. Rened to thank you, and we've an update from the Biden administration. After the

President tested positive for COVID nineteen last week. White House physician Kevin O'Connor says President Biden has a sore throat, but his symptoms have improved significantly. Again. Futures are higher this morning. SMP futures up twelve points and down futures of eighty nine NAS day futures up forty five ten year treasury down fifteen thirty seconds held two point eight zero percent. Straight ahead your latest local headlines, and this

is Bloomberg. Thanks Caring. It's five thirty three on Wall Street where eighty two degrees in Central Park and got a new accident your Lagardy Airport on the westbound Grand Central Parkway. Details coming up in traffic. First John Tucker with more on what's going on in New York and around the world. John Nathan, The heat is on again. A heat advisory remains that affect for parts of northern New Jersey until tonight. Bob Bloomberg. Media Rama justist Gary

Vast tells us relief is in sight. John, A big gridgi of high pressure that's been responsible for all our heating commidity will begin to break down a bit through today, so that's gonna be more seasable weather coming up here for much of this week, with temperatures mainly sitting in the eighties, and the commity will be on the moderate to highside at times. See in Newark, New Jersey, there have been five straight days of hitting one hundred degrees

that's the longest stretch on Rancord. At least two thousand firefighters battling a raging wildfire just west of Yosemite National Park. More than six thousand residents have been forced from their homes. Extreme drought fueling the flames. Califire Battalion Chief John Heggie, we're seeing that when change throughout the day, which really kind of puts the firefront in different areas as we despight the fire. California's governor has declared a state of emergency.

Donald Trump will test his winning appeal among Republicans with a visit to the nation's capital. More from Bloomberg's Ain't Need Morris. The former president will deliver a keynote speech tomorrow at the America First Agenda Summit in Washington, a conservative conference. His remarks come the heels of a House Committee hearing that portrayed him standing by indifferently, even vindictively, for hours as a mob of his supporters battled police

and chased lawmakers through the halls of the capital. Trump is not expected to announce a third run for president in his Washington speech. His former Vice president, Mike Penns, will deliver remarks of his own scheduled for today in Washington. I'm anymore as Bloomberg day Break. He was instrumental in getting Republican George Pataki elected governor at Aldamtto elected Senator. In New York, former state Conservative Party chairman Michael Long

has died. He was eight two, and Pope Francis landed in Canada Ian what's been called a penitential journey, a journey that too apologize to Canada's indigenous people for the abuse of children in residential schools going back to the nineteenth century. Global News twenty four hours a day on Aeron on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts and more than one twenty countries.

John Tucker, this is Bloomberg, Nathan. Thank you. John thirty five on Wall Street Time for the Bloomberg Sports Update with John Stesshow all right, Nathan, Mets had lost three in a row, had only scored four runs in those three games. They began to day with their lead over Atlanta.

There was once ten and a half games down to just a half game, the bravest loss, So the Mets knew they were not gonna fall out of first, but their bats were quiet for five innings against the Padres Joe Musgrove and then in the sixth maybe their biggest hit of the season. Here at the pitch, So we're gonna high five ball well hit up center peas on the way there we go are run Homer Pino, wats holl Over the great Wall of using to the right up the three seventy, Mark Petolatzol this crowd here at

New CBS. Mets tacked on five more runs lad eight to one, then held on beat San Diego eight five, and inted Edwin Diaz to close it out, got his twenty first save. Mets off today host the Yankees Tomorrow. Yanks in Baltimore shut out the Orioles six nothing. Nest Ortes the first six innings, Clark Schmidt the last three, four hits for Jose Travino at another home run for Aaron Judges thirty seven. Houston right behind the Yanks. They finished a sweep in Seattle. The Mariners started that series

writing a fourteen game winning streith. The Red Sox lost their fifth in a row, swept at home by Toronto. During the losing street, the Red Sox allowed sixty seven runs they did yesterday get to see one of their all time grades get inducted for the Baseball Hall of Fame. David Ortiz did his speech in both English and Spanish. Tony lev and Jim Cot both in Ducket as well, and three went in posthumously, Minnie Minoso, Buck O'Neill, and

Gil Hodges. Brooklyn Dodger and Met fans had been waiting a long time to see the Blomer, Brooklyn first baseman and Mets manager make it to Cooper Stanmore Bloomberg Sports Nathan thanks John seven on Wall Street time for the Tri State Business Report. Here's Bloomberg's head Corey. A student loan forgiveness program for behavioral health professionals has been started by New York City Health and Hospitals. The program was

being funded with an anonymous million dollar donation. Thirty thousand to fifty thousand dollars will be given a professionals who commit three years to the hospital system. New Jersey brewery owners are upset about new rules imposed by the Division of Alcoholic Beverage Control and j BIZ says they limit the number of events they can host and other restrictions. The regulations are part of a special ruling the ABC issued in which followed a similar harsher set of rules

from two thousand to eighteen. The Middletown, Connecticut Recycling Department has launched its Refill not Landfill coffee cup passport program at Perk on Maine. Patrons are being asked to sign a promise to use reusable competent retailers to reduce waste and maybe even influence others to do the same. That your Bloomberg Dries Day Business report. I'm in Corey, Thanks 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 tough stories heard on our three hundred of siliate radio stations around world. I'm Steve Plis, got on kN X and Los Angeles. We're talking about how Hollywood isn't releasing as many movies and theaters as it was before the pandemic and pornitsahoe on w h S and Moville. Credit card companies have started to seek consumer shift to

buying lower cost products. I'm Joan Donnager telling w c c O listeners of Minneapolis, St. Paul General Mills is seeing more of us by generic serials because of inflation. I'm Stephen Carol on Bloomberg, d AP Digital Radio and London. We've been reporting on Ryanair beating expectations with its latest earnings, the warning of a fragile monks a had. I'm at Corey on KFBK and Sacramento. I'm reporting Apple will offer

a rare iPhone discount for buyers in China. When those are some of the stories our Dred Bloomberg journalists and analyst working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. The senatorial was written by the Blue Burg Editorial Board. When a mob stormed the US capital on January six, Secret Service agents had several key roles, including defending the then Vice president as protesters threatened his life.

But when Congress told the Secret Services parent agency to preserve all records related to the attack, apparently the message didn't get through. The Secret Service recently reported that most of its agents texts from that day have been deleted. By law, federal agencies are required to save all such data. Perhaps some naive i T staffers blundered innocently, or maybe something worse was going on. The Department of Homeland Security

has reportedly opened a criminal investigation into the matter. Whatever happened, the Secret Service, OS, Congress and the country some answers. The editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash open in or opie 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 can

read more at opie I n go. Futures moving higher. You're listening to Bloomberg Daybreak Bloomberg eleventh, three oh weather. Some storms possible this afternoon with parts of northern New Jersey under a heat advisory. Today, we'll get up to their ninety degrees mid eighties tomorrow, oper eighties Wednesday. Right now two 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. This is a Bloomberg Business Flash, and I'm Karen Moscow when you wash Dot Index futures on the rise this morning, while European stocks aren't moving higher to now. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg SMP future is up fourteen points down, futures of a hundred five nasdack features of fifty and the decks in Germany's have three tens of a percent. Ten year treasury down

fourteen thirty seconds held two point eight zero percent. They yield on the two year two point nine nine percent.

Nine Max screw oil is a one two percent of a dollar ten and ninety five dollars seventy nine cents a barrel co make school the tenth of a percent of a dollar eighty at seventeen forty seven ten announce the Euro one point oh two four or five against the dollar, British pound one point to zero five three and agen one thirties six point to seven, and Bitcoin this morning is lower down three percent at twenty two

thousand thirty. And that's a Bloomberg Business flash. Now here's John Tucker with more on what's going on around the world. John Van Karen. International concern growing over monkey pox, the World Health organization has to clear the monkey Fox outbreak of public health emergency. The White House position says President Joe Biden is improving from his COVID nineteen infection, and the destructive wildfire near YU seventy is burning out of

control through tinder drive forests. Thousands have been evacuated. Sports. Yankees beat the Orioles, Mets beat the Podres, the Rentss, full of the Blue Jays, Dodgers beat the Giants, and the Nationals went over the Diamondbacks. Global news twenty four hours a day on air and on Bloomberg Quicktake Power by more than twenty seven hundred journalists and the analysts had more than one hundred twenty countries. I'm John Tucker,

and this is Bloomberg. Nathan Okay, John, thank you. It's five forty nine on Wall Street Life from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and we're joined now by Sarah Human, Managing Director, Head of Europe and America's Research at Standard Chartered Bank, as we look ahead to that all important rate decision this week from the Federal Reserve. Sarah, good morning, thanks for being here. Chairman

Powell and Company. Of pretty much dialed back expectations that we're going to get more than of seventy five basis point hike on Wednesday. What's the year four asked for this week. Yeah, we're expecting seventy basis points. I think that, as you say, they've dialed back on a hundred basis points and we're seeing some pretty weak data coming out of the US. UM So, I think it's going to be a focus more on what's the tone of the meeting. UM. We think that it's UM. We'll probably have some hawkish

noise coming from Powell. Um. He still needs to have some indication that inflation is coming down. Um So, I think the that there are concerns going concerns about the econom accounts. Look, but for the time being, if you're doing a seventy five basis point hype, then that suggests that inflation is the main driver. Now, of course, we did hear from Treasury Secretary Yelling yesterday trying to talk down some of those concerns about recession in the economy.

She says, there's no evidence at this point of a broad based US recession. What are you looking at? We think we will see recession later in the year. It's possible that when we get the GDP data out on Thursday then they could come in negative. But the first half of the year obviously has been a time when the unemployment rate has been very low. It stayed very low, and we have had some indication that households have drawn

on savings to maintain spending despite very high inflation. But we think that um as we carry on through the year, high inflation is becoming increasingly a headwind to spending and that we will see a deterioration, not just in I mean received very weak consumer confidence now and increasingly very weak business confidence as well. So that combination of factors to us suggests that the second half of the year

is going too slow, quite markedly. Um So, as I say, the second quarter data are somewhat vulnerable to what's happened to inventories, what's happened to trade, we may still see spending, consumer spending, an investment holding up, even if there is a technical negative for the quarter. Are you thinking that the Fed is going to continue hiking aggressively into those signs of weakness. No, we think September that we'll see

as so a pace of hiking. So we're expecting fifty basis points in September that will take us to three percent on the FED funds rate, and we think that that's where they will halt, because we believe that by September there will be some after September fourth quarter there will be some very clear signs of economic stress, and that also importantly, we'll be seeing clear signs of inflation slowing, both on a sort of annual and on a monthly basis.

So UM we're we we've we think the market is still being too aggressive, and what priced in market has been dialing back quite quickly on UM, the pace of FED hiking and the and to which the Fed will carry on raising rates, But in our view three will be the tops for this this current cycle, and we'll get there in September. How much control can the FED have over this kind of supply driven inflation that we're seeing,

particularly with the war in Ukraine going on. Is central bank policy effective enough to deal with this kind of inflation? It's not. Supply There's there's nothing that can be done in terms of boosting supply of oil, gas, energy. There's there's little that can be done. A menager policies is not going to change what's happening in terms of trying to get grain out of Ukraine. What it can do, though,

is ensure that inflation expectations remain well anchored. So we have had some encouraging signs there that the University of Michigan inflation expectations for both one year and three five years ahead have come down recently. Um fundamentally, it's a matter of slowing the economy, raising the unemployment rate, taking demand out of the economy such that you don't get these second round effects and the inflation spiraling up higher. So it's a pretty um sort of broad way of

trying to address the inflation situation. Thanks for this, Sarah, great having you on with us this morning. Sarah Hwan with Standard Chartered Bank. Karen Nathan, it is five or D three on Wall Street. It's time for the Bloomberg Law Report. It has brought to you by American Arbitration Association. Business disputes are inevitable, resolve faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years.

More at a d R dot org. That's yet to the legal stories we're watching this morning from Bloomberg's Jeff Bellinger, OSA is proposing that the family dollars door in Orlando we find more than three hundred thousand dollars over the death of a worker. The employee died shortly after struggling with a shoplifting. Lawyers for Cody and Knoxell struck back at a proposed class suit alleging that a cosmetic powder contained an undisclosed p f A S indicator. The attorneys

say the lead plaintiff suffered no injury. The Ninth Circuit affirmed that Marriott's website for a California hotel has sufficient disclosures on accessibility. The court refused to revive claims that the information is inadequate. 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.

Legal teams for Elon Musk and Twitter are preparing for an October trial. After Muska lost the first round at a Delaware Chancery court, Chief Judge Knatling McCormick indicated that she is going to treat the case, just like any other broken deal case involving a public company. For more Bloomberg's doing. Grow So speaks to Eric Telly, professor at Columbia Law School. Did Chancellor McCormick give any hints about how she views this deal or what's important in the case.

She was appropriately pretty guarded about expressing opinions about the underlying merits of the case. There are potentially a few things that do seem to leak out a little bit. She did specifically say that, you know, this looks like it's the type of case where specific performance would be appropriate. That money damages, you know, wouldn't compensate Twitter for all

of the pain and harm and lack of closing. I think the second thing that it is much more implicit that comes out is that now that she has put these parties on, you know, a leash that's only a couple of months long, to do all of their expert discovery, to do all of their depositions of the fact witnesses, to do all of their document review, and all of their data review. It suggests that the body counting exercises going to have to be somewhat more limited than what

Team Musk wanted. You're not going to be able to, you know, pull out just mountains and mountains and mountains of data and be able to go over it and reach definitive conclusions about it in a couple of months time. So it is at least a little bit suggestive that Chancellor McCormick, it's probably going to cabin the fishing expeditions for bots a little bit and quite possibly concentrate a little bit more on exactly what was Twitter putting in

their securities disclosures. They weren't writing about specific numbers of bots, they had a rough estimate, but much of it was just sort of describing how they went about auditing their own system. And that's the thing that is most testable in terms of whether those disclosures had fraudulent statements. And then did they actually audit their bot system, did the process that they have to cohere with how they described it in their filings? And so what does this expedited

schedule mean for the legal tomes here? For both sides, this is now kind of an all hands on deck moment. So I would not be surprising to see delivery trucks with Diet Coke and Red Bulls backing up to the law firms that are having to push forward with all kinds of depositions, document review, expert reports, and so forth. But this is not unusual in Delaware, even for large high profile cases. There are a lot of these large high profile cases that end up taking this fast track

to final adjudication. And as Rich Caney, a professor at Columbia Law School, speaking at Bloomberg student Grosso. Catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading the show at Bloomberg dot com, slash podcasts, Top Stories, straight Ahead, This is Bloomberg