Bloomberg Daybreak: July 26, 2022 - Hour 1 (Radio)

infected by the monkey pox virus in the US. So far, there are almost twenty nine known cases and no depths. During an event at Harlem Hospital, New York City Mayor Eric Adams notes that most of the state's current nine hundred cases come from New York City and they need additional resources from the federal government to help slow the spread. Almost cases in the state is in New York City and so this is once the game we would would again. Last week, the w h O proclaimed the spread of

monkey pox of global emergency. The disease spreads primarily through skin to skin contact or direct contact with the virus. Officials say New York's MTA may not regain one of pre pandemic ridership until about twenty thirty five. Ridership on New York City subways, buses, and communityrail lines is projected to reach levels in late that's down from a prior forecast of eighty six. The authority needs writers to return

to bolts through its finances. The back and forth on the whether US Congresswoman Nanci Pelosi is going to visit Taiwan has China angry. Bloomberg's and Baxter reports Beiji has issued its strongest statement yet regarding the proposed visit, saying the U s should be ready to face the consequences.

So Richard Hass of the Council on Foreign Relations on Bloomberg says, it is time for the globe to figure out plans and responses, which means taking military preparations, ourselves strengthened in Taiwan, continuing to work more closely with Japan, organizing Europe about what sanctions would put it and put in place of China ever moved against Tilan Has says at some point there will be a confrontation between China

and the US regarding Taiwan. In San Francisco, I'm at Baxter Bloomberg Daybreak, there is another development in the investigation into the January six rioting on Capitol Hill. Mark Short, the former chief of staff device President Mike Pence, has been subpoenaed by d o J prosecutors. Short has also appeared before a federal grand jury. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts

more than hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. All right, Michael, thank you, five o nine on Wall Street time for the Bloomberg Sports Upday. Good morning, John stan Shown all right, Good morning, Nathan. The Subway series always about bragging rights, with the one that starts tonight at the City Field as another billing possible World Series preview. Both teams have been in first place basically all season. All of the Mets lead once ten and a half

games is down to two. The Mets did get some help last night from the Phillies. Bryson stopped in particular history one home. He gave the Phills six four win over Atlanta. Yankees lea the Alliast by twelve and a half games. They're concerned as finishing ahead of Houston for best overall record. Astros had their five game winning speaks stopped in Oakland, so the Yankster two games ahead. Starting pitchers Tonight, Jordan Montgomery for the Yankst, Taiwan Walker for

the Mets, and Aaron Judge is excited. Just the fans getting into it. It's always a pack in playoff atmosphere, um, always back and forth. You never know what's gonna happen. Um. And it's a competition here. They got a great pitching seth great offenseive over there, you know, so do we, so you know, looking forward to see what happens. That's dirty. Seven home runs, seven more than anyone in baseball. He has eighty one r B. I is the only player

with more is Pete Alonzo. He has eighty two. Details emerging about trade talks between the Nets and Celtics, involving Kevin Durand reported the Celts offered to Brooklyn, Jalen Brown, Derek White and the first round pick, and the Nets wanted Brown and Marcus Smart and multiple picks, and the Celtics said no, no, sacred. The next trying to acquire Donovan Mitchell from Utah. Now there's word that Washington, Charlotte and Sacramento are all talking to the Jazz as well.

Nicks also said to be one of a few teams that have spoken with the Lakers about Acquarie Russell Westbrook, John dash Award Bloomberg Sports. All right, John, thank you. SMP futures down eight points now, Deal futures down a hundred ten NASTAC futures lower by thirty one points. Ahead of the start of the two day Federal Reserve July policy meeting. Tenure Treasury up six thirty seconds, the yield two point seven seven percent yield on the two year

three point zero one. Just ahead former President Trump's return to Washington, d C. We check in with Bloomberg Washington correspondent Joe Matthew. This is Bloomberg Bloomberg eleven three oh weather partly sunny, less humid for a change today, highs in the mid eighties, chance to afternoon showers at thunderstorms tomorrow, though. We get back to your ninety tomorrow and the next day.

Right now seventy three in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Take. This is a Bloomberg Business Flash and I'm Karen Moscow. European stocks are higher, US Stock Index futures are lower amid caution, and global markets ahead of the Federal Reserve interest rate high.

European energy and mining stocks are rallying with oil and metals, while retailers and banks fall after disappointing reports from Walmart and UBS Group. We check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, U S and P futures are down ten points down features down a hundred nineteen NASDACK futures down thirty six. The decks

in Germany's down three tenths of upper sent ten. Your treasury of four thirty seconds yell two point seven seven percent a yield on a two year three point one percent NIMEX screwed oil is at one point eight percent of a dollar seventy seven and ninety eight dollars forty cents of barrel comex school of this up ten percent of a dollar fifty at seventeen thirty eight sixty announce. The euro is at one point oh two against the dollar, British found one point two zero two four, and the

UN is at one thirty six point five seven. Looking at bitcoin, it's down almost five percent at eighty dollars. That's a Bloomberg business flop show. Here's Michael Barr with more on what's going on around the world. Michael, good morning, Good morning Karen. Former President Donald Trump will returned to Washington today for the first time since leaving office. Trump will address the America First Policy Institutes today summit. He's

expected to announce a four White House campaign. How Speaker Nancy Pelosi's staff and security officials aren't ruling out plans for her to visit Taiwan in early August. The possible trip has already stoked more US China tensions. In baseball, the Red Sox beat the Guardians three one, The Orioles down the Rays five one, The Nationals beat the Dodgers

for one, The A's down the Astros seven five. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalists and mantalist more than twenty countries. Michael Barn, this is Bloomberg Nather. Alright, Michael, thank you. It's five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This

is Bloomberg day Break. Let's pick up on Michael's top story their former President Donald Trump returning to Washington, d C. For the first time since the chaotic end to his presidency. Let's bring in Joe matthew Are, Washington correspondent, host of Sound on Here on Bloomberg Radio. Joe, good morning. Let's set this thing up. Are we expecting announcement from the former president today, Well, no, we're not. That you know has been floated as an idea that he just say,

you know, I'm going forward. We're gonna announce here, but it's not expected to happen, and we will likely get the same Trump speech that we tend to get was in Arizona last weekend, in South Carolina and so forth

before that. But the fact of the matter is if he announced his campaign right now, it would not only telegraph his plans to a lot of other Republicans who are thinking about running, give them a chance to kind of organize, but it would also trigger federal election laws, would make his life a lot more difficult when it comes to raising money, so there's really little incentive to do so. And it would also potentially affect the mid term races as well as the Republican Party is trying.

And you talk to most analysts expected to take over control of at least one House of Congress. Yeah, that's why we're hearing from a lot of Republicans. You know, hey, just give it a couple of months. What we need to get through the midterm election cycle. Here, you've got the January six hearing still percolating or not even done yet, and you know, come September we expect likely more. Also,

you know, Donald Trump's endorsements have been mixed. He hasn't had the perfect record that that he would hope to have had in the midterm elections, and some Republican candidates will not appear with him on stage, as we saw with Glenn Youngcan for instance, when he was running for governor in Virginia. That became kind of a recipe for success, you know, to out the Trump policies, but don't have him make ads where you don't do rallies with him.

And that's gonna be the case for at least some Republicans. So waiting until we get through November would certainly keep things a little more simple for the party and to that point, Joe about keeping the talk toward policy. The president or the former president is going to be speaking today to the America First Policy Institute. So are we expecting a policy speech from the former president? Well, and it's so, what kind of policy could he be putting forwards? Well,

you'll hear about the border. He's been saying recently in his stump speech that he completed the wall, and I suspect that we'll hear that again, even though the wall was never finished. Uh, he says that, you know, they tried to add to it and so forth. But we'll hear about that. We'll hear about I'm sure trade policies, will hear about the war in Afghanistan, the withdrawal. These are typically the things that he hits on with regard to policy when we talk about uh, kind of his

standard speech that that he's been crafting lately. But look, this is gonna be a room full of support orders here. And when the president the former president gets in an environment like that, he's known to stray off off the copy here. You know, he'll he'll be looking left and right at the paddles, looking at the teleprompter. But then when he looks straight out there and he starts telling jokes, maybe drops an F bomb, as he's also been doing

and most of his speeches recently. I don't think that will necessarily happen today. That's when the news tends to be made. Let's see what he says off the script, Nathan and uh. In the lead up to this speech, of course, we were expecting that there was gonna be a potential for upstaging by former Vice President Mike Pence, but I guess weather kept him from making his scheduled

speech last night. Does that potentially change the dynamic for what we're expecting from former President Trump later today, Well, he certainly won't be able to react to what Mike Pence was gonna say, and he's you know, certainly doesn't have any qualms about mentioning Mike Pence in his speech. But I don't think Donald Trump was looking at this, you know, as the dueling speeches that that that we were all kind of framing it to be in the media.

He's living in his own universe here. But I have to admit a lot of us were more curious to hear what Mike Pence was gonna say, whether, in fact he would try to to to go to greater lengths to separate himself from Donald Trump or the opposite. In a speech just last week before an evangelical crowd in South Carolina, you know, Mike Pence said it was the honor of his career to serve in what he called the most pro life administration in American history. He's got

issues with Donald Trump. He's he's he's already talked about that publicly, but there are things that he has to say that that are actually not negative at all. In fact that if he enjoyed working with Donald Trump on issues like abortion. So it's gonna be interesting to see how Mike Pence frames this and whether he's looking for a run himself. A Trump Pence campaign, not on the same ticket, but against each other would be a heck

of a race to watch, Nathan. Yeah, and it was gonna add even more of a dynamic as we are expecting, potentially a pretty wide open field when you think about Rohn De Santis as well, potentially in the mix as well. We'll leave it there for now, unfortunately for time. Thanks Joe, always great having you on with us, Joe, Pa Matthews. In fact, is gonna be backwound with us later on in this program as well, And of course you can catch Joe Oh Gosh every weekday five pm. Wall Street

Time Bloomberg sound on here on Bloomberg Radio, Washington. Correspondent Joe Matthew with us this morning, looking ahead to the market open ahead of the start of the FEDS two day policy meeting. Futures are moving a touch lower, with SMP futures now down ten points, Staff futures down a four, NAZAC futures are lower by thirty four points, Tenure treasury up five thirty seconds. The yield two point seven seven per cent. Just ahead, we have more on the FEDS

July meeting as it gets underway. Walmart sinking after cutting its forecast. You're listening to Bloomberg day Break Bloomberg eleven three oh weather partly sunny, less human today, mid eighties for highs. We'll have a chance for after news showers and thunderstorms tomorrow and Thursday, both days near ninety Right now seventy two in Central Park by from the Bloomberg Interactive Burger Studios. This is Bloomberg Daybreak for Tuesday, July

twenty six two. Coming up this hour former President Trump returns to d C as talks of another run for office heat off. The FED prepares another rate hunk as the Central Banks policy meeting gets underway. Walmart chairs sank after the company lowers its forecast, and candidates in the UK make their case to replace Boris Johnson. New York's MTA says it may take thirteen years to match pre COVID ridership. Colt's talk of Speaker Pelosi possibly heading to

Taiwan has made China furious. I'm Michael varn More, I'm John Stave, Darren Sports. The Mets and the yank You both in first place begin a two game Subway series tonight at City Field. That's all's training ahead on Bloomberg Daybreak on Bloomberg eleven, FREEO New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XAM one nine Team and around the world Old on Bloomberg Radio, dot Com and via

the Bloomberg Business App. Good morning, I'm Nathan Hager and I'm Karen Moscow and US Dot Index futures are lower this morning. We are coming up to five o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, S and P futures are down nine points, dal future is down a hundred eight and NASDAG futures down thirty eight. The decks in Germany's down three towns of upper cent and the tenure treasury up five thirty seconds held two

points seven seven percent. They yield on the two year three point one percent. Nathan Karen, We'll get back to the markets in a moment, but we begin this morning in the nation's capital. That's where former President Donald Trump is returning for the first time since he left office. Amy Morris has details from our Bloomberg newsroom in Washington. Donald Trump will be back inside the Beltway as Republican rivals maneuver for a possible primary challenge and lawmakers probe

his culpability for the January six insurrection. He'll deliver the keynote to dress at the America First Agenda summit held by the conservative think tank the America First Policy Institute, launched by some former Trump One House advisers. He's not expected to announce a run for the White House during today's speech, which will be his highest profile speech since leaving office in Washington, I'm anymore is Bloomberg Day Break?

All right, Amy, thank you, well, let's stay in Washington where the Federal Reserves two day meeting kicks off today. The Central Bank is set to raise rates again. That's despite GDP numbers due out Thursday, which could show the US contracted and back to back quarters, signaling a recession. However, moody Is Chief economist Mark Xandy tells us there are not recession signs at the moment. When you have a lot of jobs, you have low layoffs, and a lot

of consumer spending. Income growth is strong. That's not consistent with a recession. This is not a recession. Moody Chief Economist Mark Sandy says. If the economy does contract, it's likely to be in the next six months. He spoke of our Washington correspondent Joe Matthew on Bloomberg Sound on Catch the program weekday, said five pm Eastern on Bloomberg Radio, all right, let's get back to markets now, Karen, where US futures are moving lower ahead of the Fed meeting.

Lisa Erickson, Senior Vice President with US Bank says she's preaching caution. We are modestly cautious advising our clients to move all other things being equal, away from equity and more to quality fixed income, where again historically they've been able to hold up in times of market volatility. Lisa Ericson with US Bank thinks the US will narrowly avoid

a recession as inflation begins to recede. Well. Turning to oil now, Nathan Crewde is advancing for a second session, signs of a tight marketer, offsetting concerns about an economic slowdown and checking prices now nine x screwed oil is up two point two, up two dollars seven cents and ninety eight dollars seventy nine cents of barrel Brent is at one point nine and a hundred seven dollars nineteen cents.

And we're also seeing volatility and overseas energy markets. Russia plans to curb natural gas flows on the North Stream pipeline, and that's jolting energy markets in Europe well meantime in the UK, care in Canada, it's for Prime Minister Face Staff. In another primetime debate last night, Liz Trust and Rishi Sunac are vying to replace Boris Johnson and bloombergs You and Putts joins us live in London with more good Morning, good Morning, Nathan and Karen strong stuff from the final

two candidates in the Conservative Party leadership race. In a TV debate, Foreign Secretary Liz trust warn that tax rises would send the UK into a recession. Everybody thinks the putting up taxes at this moment is going to hurt the economy. You can't put up taxes and get growth if we follow Riscie's plans, can we are headed for? That was Foreign Secretary Liz Trust. There. Meanwhile, former Chancellor Riscie Sunac came that his opponent's tax plans would push

up inflation and mortgages. Proposals would mean that we get the short term sugar rush of unfunded borrow tax cards, but that would be followed by the crash of higher prices and higher mortgage rates. That was former Chancellor Riscie Sunac. Whoever wins the six week on contest end up as the next British Prime minister. But with a tax like these, it's easy to forget that both members of the same political party in London I'm you and part break a right you and thank you all back here in the US,

corporate earnings are in focus today. Shares of Walmart are down eight and a half percent in early training after the company lowered its forecast for the second quarter. Plumbergs or need a young joint Us Live with the details, or need a good morning, Good morning Karen Ana. Let's say Walmart's warning gives more insight into the health of the U. S consumer that's likely to signal more pain ahead for retail stocks as they take on food and

gas inflation. Morgan Stanley cut its price target for Walmart. It says it's challenges the broker's view of the retail giant as a safe haven play. City analysts didn't think Walmart would be hit as much as others say. The news is a signed that marginally higher income consumers are starting to feel the pinch from inflation. But Piper Sandler says it's too early to take a more constructive view on Walmart, so analysts there are eating one a more

broad earnings reset industry wide Live in New York. I'm rened a young Bloomberg Daybreak, I re need a thanks. Turning to earnings in Europe. This morning, UBS reported weaker than expected profit for the second quarter. The global market so off kept wealthy clients on the sidelines as the Swiss Bank saw outflows of twelve billion dollars. Surging prices

and slowing growth also hit UBS results. We spoke of the CEO, Ralph Hammers about his outlook for inflation and how it's affecting businesses and some businesses there's still quite some tension in the labor markets, so that has not gone completely away yet. So it's the mixt of inflations and the labor market circumstances. If inflation continues to be here, of course, it will be reflected ultra inlying. UBS CEO Ralph Hammers called the second quarter one of the most

challenging periods in the last ten years. Right now, the shares are down more than five and a half percent. Well. Unilever also out with earnings. Nathan results are mostly in line with estimates. The company is raising prices to battle inflation. That's helping to offset certain costs, and shares are up

two point eight percent In London. Futurists this morning or lower s and P futures down seven points this morning down, Futures down a hundred and nowsday, Futures down thirty tenure Treasury up seven thirty seconds here two point seven seven percent, straight ahead, your latest local headlines, plus a check of sports. And This is Bloomberg broadcasting live from the Bloomberg Interactive

Broker Studio in New York. Bloomberg E Living Freedland to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the country, Sirius XM Cho one nineteen and around the globe, the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's by thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Ferard Moscow. We are just about four

hours away from the open of US rating. Let's hit you up to date on the news you need to know at this hour or begin in the nation's capital, where much of the focus will be today on former President Trump is returning for the first time since leaving office, and the Federal Reserves two day meetings kick off today. The Central Bank is set to raise rates as it looks to tamp down inflation. US features are lower this morning, Karen,

as markets get ready for the feds next move. Lisa Ericson, senior vice president with US Banks, says she's preaching caution on stocks. We are more defensive right now again, while in the near term we see some of that underlying fundamental strength that we came into the year as preventing the worst case scenarios. Lisa Erickson with US Banks says the US will narrowly avoid recession as inflation begins to receive.

I's reading to oil now Nathan Crewd is advancing for a second session, signs of a tight marketer offsetting concerns about an economic slowdown, and checking prices right now not max screwed oil at one point seven of a dollar sixty three at ninety eight dollars thirty cents of barrel Brent is at one point four percent of a hundred and six dollars sixty three cents. My corporate earnings are

in focus as well. Karen. Shares of Walmart are down almost nine percent this morning after the company lowered its forecast for the second quarter. Bloomberg Rnita Young joins US Live at details. Good morning, Ranita, Good morning, Nathan. Analysts say Walmart's warning gives more insight into the health of the US consumer that's likely to signal more pain a hit for retail stocks as they take on food and

gas inflation. Morgan Stanley cut its price target for Walmart and says it challenges the broker's view of the retail giant as a safe haven play. City analysts didn't think Walmart would be hit as hard as others and say the news is a sign that marginally higher income consumers are feeling the pinch from inflation, but Piper Sandler says it's too early to take a more constructive view on Walmart, so analysts they are waiting on a more broad earnings

reset industry wide. Live in New York. I'm Ranita Young, Bloomberg daybreak. All right, Rania, thank you. Over in Europe, you b As reported weaker than expected profit for the second quarter of the global market sell off kept wealthy clients on the sidelines. As a Swiss banks alflows of twelve billion dollars and you be As shares are down more than five and a half percent, and we get

earnings from Microsoft today. Here's Bloomberg's Jeff Balinger Bloomberg Intelligence notes that half of Microsoft's total sales come from outside the US. That makes the software giant more susceptible to foreign exchange movements, and the stronger dollar may have weighed on the company's bottom line. Sales of consumer PCs may have slowed, but b I expects to hear that overall

sales increased fourteen percent. Jeff Bellinger, Bloomberg Day Break. All right, Jeff, thanks five thirty three on Wall Street where at seventy two degrees in Central Park got a downtree southbound run twenty three R thirty five in Westchester. And Michael Barr has more on what's going on in New York and around the world. Michael, thank you very much. Nathan. Monkey box cases in the US continue to grow. There are

almost twenty nine hundred cases so far. Close to eight hundred forty cases are identified in New York's City alone, Mayor Eric Adams. They always come up with new ways of solving the problems that we face in monkey pox is a problem. The disease spreads primarily through skin to

skin contact or direct contact with the virus. Officials say high risk people are those who have been in contact with a known monkeypox patient, which right now mostly includes men who have had sex with men or have multiple partners. White House Coronavirus Response Coordinator Dr Hi's John it's really important that we do not use this moment to propagate homophobic or transphobic messaging, and and I think it's really important that we stick to the science, stick to the evidence,

and doing a way that's respectable on people. The World Health Organization declared the ongoing monkey pox outbreak to be a global public health emergency. A senior m t A official says New York may not regain a pre pandemic writership until about Writership on New York City subways, busses and Muta Real lines is now projected to reach seventy four percent of nineteen levels. In late President Biden made rare comments about his White House predecessor and his lack

of action on the January sixth riot. The President remotely addressed black police officials for three hours. The defeated former president of United States watched it all happen as he sat in the comfort of the private dining room next to the Oval office. While he was doing that, brave law enforcement officer subject to the medieval hell. President Biden telling the nation that Americans can't be pro insurrection and

pro cop or pro democracy. There is more fallout from House Speaker Nancy Pelosi's possible visit to Taiwan next month. China has more than any visit to the island nation that it considers part of China would be met with serious consequences. Global nemes twenty four hours a day on air and on Bloomberg Quicktake power by more than twenty seven hundred journalists to listen more than countries. I'm Michael Barr. This is Bloomberg, Nathan, Michael. Thanks on Wall Street. John

Stanshire has a Bloomberg Sports update. All right, Nathan. First Subway Series game of the season, usually not this late, and normally not with both teams in first place. The Mets and Yankees played tonight and tomorrow at City Field, then twice next month in the Bronx Tonight at Jordan Dumbery against Taiwan Walker. Last night, the Phillies, down three nothing, came back beat Atlanta six for Bryson Stock game winning three run homer the eighth inning to the Mets lead

the Braves by two. The Yankees lead the Astros by two in the race for best overall record. Houston lost in Oakland much they didn't win. For the Red Sox. They lost five in a row, had allowed sixties seven runs in those five. They beat Cleveland three to one at Fenway. The baseball trade deadline in one week. Both the Mets and Yankees believed to be in talks with Washington about aquari In Juan Soto that would certainly be

a blockbuster. Yankees g M. Brian Cashman told the Yes Network He's always looking to make any move necessary, every piece, every decision, every promotion or in for it's all designed to to improve your shot and your team's abilities and your managers UH maneuver ability UH and choices that he has to play with. Yanks also said of interest in Cincinnati pictro of Luis Castillo, Kansas City outfielder Andrew benn And Tendi to concern with him. He's unvaccinated, so we

can't play games in Toronto. The Cardinals play in Toronto tonight. St. Louis will be without stop two hitters Paul Goldsmith Nolan Aronado, both on backs. The doors open at all thirty two NFL training camps today Jets and Giants, both coming off seasons where they went four and thirteen. John Stashward, bloombrog Sports, Nathan all Right, John, thank you, five thirty seven on Wall Street Time for the Tri State Business Report with

Bloombergs Dead Cory. About forty four percent of available apartment units in Manhattan come from tenants priced out of apartments they leased. In one Street Easy reports in the second quarter, about fourteen thousand Manhattan apartments became available because the former occupants were handed renewals with significant increases. New Jersey landscaping companies are being hit hard by rising costs and a

labor shortage. The head of the New Jersey Landscaping Contractors Association tells the Herald companies cannot find people to work associations as members have expressed concerns about high fuel costs as well. Sherry and Joel Mallin, two of the world's top art collectors, are selling a pound Ridge New York estate. It's been a showcase for their huge collection. The nearly fourteen acre property, known as the buck Horns Sculpture Park, contains eight structures. It's priced at eight and a half

million dollars. That's your Bloomberg tri Skate business report. I'm d Corey, thanks that on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. Steve podas Can on Chenchen Wins in New York. We're talking about how changing jobs can really pay off com pay day.

I'm Corney Donaho on kfeban Omaha relief for shoppers of the U S. D Aces food inflation will east next year. I'm Stephen Carol on D A B T to the radio in London. We've been reporting on a Swiss miss as ubs these eye flows at twelve billion dollars from its asset management. I'm Lise Matteo and on Cameo X and St. Louis. I'll be reporting on a recall of hundreds of health and beauty products. I'm in Corey on

w w J and Detroit. I'm reporting General Motors report second quarter results before the market opens, and those are some of the stories are twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. President Joe Biden's administration has been discussing changes to U S tariffs on China for weeks.

People familiar with the discussions say a decision will come soon and that the result will be tweaks. Two measures put in place by the Trump administration not a comprehensive effort to roll back import restrictions. That would be disappointing. Biden should start by completely dismantling Trump's Chinese tariffs and then go further. Trade liberalization would reduce inflation and, by injecting fresh competition into US markets, raise longer term productivity

and living standards. One of the most disappointing aspects of Biden's presidency is that he has not decisively broken from his predecessors misguided protectionism. This error can't be fixed too soon. The senatorial was written by the Bloomberg Editorial Board. For more Bloomberg Opinion, please go to Bloomberg dot com. Slash opinion or O P I n go on the Bloomberg terminal. This has been Bloomberg Opinion. You can hear Bloomberg opinion

editorials every weekday at this time. Terminal customers can read more at O P I n go. SMP Future is now down eleven points down, futures down a hundred forty four, and Nastack futures are lower by thirty six points. Tenure treasury is up six thirty seconds, the yield two point

seven seven per cent. This is Bloomberg Bloomberg eleven three oh weather sunny, less humid today, mid eighties for highs will bring back chances for afternoon showers and storms Tomorrow and Thursday, both days near ninety right now seventy 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 Quick Tape. He's a Bloomberg Business

Flash and I'm Karen Moscow. When you mus knock. Index futures are lower this morning, with SMP futures down town points down, futures down hug thirty, Nasty futures down thirty three, and the decks in Germany down a third of uppercent ten year treasury up five thirty seconds, heel two point seven seven percent, the yield on a two year three point one percent. Nimex screwed oil up one point nine percent of a dollar eighties seven and ninety eight dollars

fifty seven cents. A barrel comic school that will change. At seventeen thirty six twenty announced the euro one point one seven eight against the dollar, British found one point to zero zero nine and the N one thirty six point six two bitcoins down four point six percent at twenty one one fifty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on

around the world. Michael Hearin, thank you very much. It will be the first time President Trump returns to Washington sends leaving office. Today, the former president will deliver a policy speech before an ally think tank crafting a possible second Trump term. W n B A star Britney Grinder has returned to a Russian court room for her drawn out trial on drug charges that could bring her ten

years in prison if convicted. The trial of the Nique Mercury standout the gan July one, but only four sessions have been held, some of them lasting only a few hours. In baseball, the Red Sox beat the Guardians three one, The Orioles down the Rays five one, The Nationals beat the Dodgers for one, The A's down the Astros seven five,

the Diamondbacks blank the Giants seven. Zip. Global nemes twenty four hours a day on airand on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and antalists more than a hundred twenty countries at Michael Barr and this is Bloomberg, Nathan. Thank you, Michael. We're coming up to five forty nine on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg day Break. Let's turn to earnings now and bank results out of Europe.

UBS is out with numbers that missed estimates. The profit came in weaker than expected as the global market sell off kept wealthy clients on the sidelines. The Swiss bank also saw outflows that its asset management business of twelve billion dollars. Let's get more on these results and the path ahead now from the CEO of UBS, Ralph Hammers sat down this morning for an interview with Bloomberg's Manus Cranny.

Let's hear some of that conversation. Now, you described the second quarter as muted, where were the most pressure points? Are the deepest pressure points in a music quarter. So indeed it was a quarter with different challenges, neverthe last, we continue to focus on executing our strategy, making sure that we could grow the econsistent for investing their where we saw flow flows through in in private markets at three point nine billion as a Maze four billion as well,

we released two new digital applications as well. On the other side, and that's where this this remark comes from, we saw on one side, private clients, given all the incertainties, sidelining their money and waiting for things to clear up, whereas on the institutional side we saw a lot of activity and that's what you see in our investment banking

results as well. So all of this basically delivered a flat revenue line reported rep in your line cost down by one percent from this last year, and the profit before tax of two point six billion. I look at the transactions and the landing in the wealth management business, I would say that it looks quite grim, transactions down seventeen percent, lending down twelve percent. Do you think we're still in fear mode on the client side. So if you look at the at the wealth management business, you

see a couple of elements here impacting our revenues. So on one side you see that just the level of the market generally is less recurring fees, the sidelining, so that the wait and seed pattern of our clients basically gives pressure on the transaction revenues. On the other side, because the rate environments we saw interesting increasing by two and as a consequence of that almost compensating for the

pressure on the on the fees side. So with that still a good quarter in the lying effects though is different. So on the in the net new fix generating assets, we saw still money coming in four a million, and you saw actually a very darker area, very small where where does the money come from? It's small and it's a very diverse picture. So we see outflows in the US generally driven by tax payments which were higher than

than we expected. But we saw actually three from three billion coming in in Asia Pacific, where we actually now see as the three quarters of lower transaction ravigue. You should see that clients are turning to mandates and they're really turning out to us to get their advice on what investments to do. And that's where the three point three building inflow on Asia Pacific comes in. But on the Asia and the last time we caught up, you said, Manas,

it's de leveraging again. This is the fourth quarter in a row of the leveraging in Asia. Any sign of that bottoming nut um at this moment, No, I don't see. It's the bottoming out. So we we we just report what we see. We depending on the level of the market we see there was more empethite or less eppetite. UM. I don't expect too much further the leveraging m but it really depends on where markets are going. On the other side, we see in the US leverage is still

going up. We were successful in the mortgage business, were successful in the security based lending business as well, supporting there. So overall we still saw almost one billion of net new loans in in the wealth business. Since you sat into the chair, CEO, the headwinds in Asia and China just keep smacking you. He's still full bull on China and Asia's strategy. Well, you can't. You you can't turn away from Asia if you just look at the underlying

trends there and at the future. So the demographics speak for Asia, the demographics speak for China. Clearly, there was a couple of clarities there and I expected towards the youngest the third quarter and the fourth quarter that more optimism and positive from made come back. And that was UBS CEO Ralph Hammers speaking with Bloomberg's Mannace Cranny about the Swiss Bank's latest earnings that came in far short of estimates. Right now, shares of UBS are down six percent.

Karen Nathan, it is five fifty three on Wall Street. Time to the Bloomberg Law Report, brought to you by American Arbitration Association. Business disputes are inevitable. Here's al Faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a dr dot org. Now let's get to the legal stories we're

watching this morning from Bloomberg's Jeff Bellinger. Federal judge in Philadelphia says Walmart's firing of an employee with fibromyalgia and depression may have been discrimination, even though Walmart says she was fired for stealing. The Michigan Supreme Court ruled the fingerprinting someone without a warrant or probable cause is unconstitutional. Theis and came in the case of two black men who were stopped by police but never charged with any crime.

Bill signed into law by New York's governor makes diapers exempt from the state sales tax. 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 where watching takes us to the Supreme Court. Since August, justices have issued more emergency orders than opinions on issues affecting

millions of Americans, from abortion to voting rights. These orders, on the so called shadow docket are short and unsigned, issued without a full briefing or arguments, and without explanation. Several justices have expressed misgivings about the practice, but the three most conservative justices have signaled that they want to use the shadow docket even more aggressively. For more in the matter, Bloomberg stoom Grosso speaks to constitutional law experts.

Steven Vladika, Professor at the University of Texas Law School. Steve, why are we hearing so much about the shadow docket lately? Well, I mean, I think part of it is that the Court is doing more and more significant stuff on the

shadow docted. I think more of it is that, you know, folks are paying attention to it to a better degree than ever before, and the Court, for all the headlines and drama surround him the most recent term, is actually deciding fewer cases on the merits docket at any point

since the Civil War. So you know, when you have a flurry of significant rulings coming down through these unsigned, often unexplained orders, it's no surprise that folks are paying a lot more attention to that part of the Supreme Court's work the courts. Liberal justices Stephen Bryer, Sonya Soto Mayor, and Atlanta Kagan dissented the most in emergency orders that were granted, but conservative justices Clarence Thomas, Samuel Alito, and Neil Gorshich did so the most when the Court refused

to act on appeal. So what does that tell you? One of the many interesting things about the shadow doctors that considers in some respects more interesting data about the justices voting patterns than there is on the merits docket.

So there was this remarkable moment last October. There was a case out of made and there was like a one paragraph concurring opinion by Justice Barrett joined by Justice Kavanaugh that basically said, just because we're sympathetic here claims on the merit doesn't mean we're automatically going to vote to grant emergency relief. You know, we're going to exercise some modicum of discretion in deciding when emergency relief isn't

as an oorent. It basically Barrett and Kavanaugh laying down a marker that they were going to not vote to grant emergency relief as aten as they had to say as recently as the previous term and June, we've seen that play out. I mean, we've seen a number of cases since October where the only public dissenters from a denial of relief were Thomas Alito and Gorsta. And so the assumption is that Barrett and Kavanaugh did not join them.

Some of these have been vaccine mandate cases, and so I do think that you know, one of the things we're seeing on the Shadow Doctor is that Thomas Ledo and Gorst would go even further than the other conservative of Justice at least Kavanaugh are willing to go. And the fact that Thomas the Leado enforces grant emergency released even more often, I think, because you know, a sign of how close we are to this being even more

of a problem than already did. And that's Stephen Vladika, professor at the University of Texas Law School, speaking at the Bloomberg Stu in Grasso. 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 podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and

on the Bloomberg terminal at b Law. Go again. Futures are moving lower this morning, nimex scrude oil higher still ahead. On Bloomberg Daybreak, I check on the business headlines and all the news you need to start your day, and this is Bloomberg