Bloomberg Daybreak: July 26, 2022 - Hour 2 (Radio)

to match pre COVID ridership. Let's talk of speaker Belosi possibly heading to Taiwan has made China furious. I'm Michael barn More, I'm Jim Stagower. In sports, the Mets and Yank You both in first place, begin a two game

Subway series tonight at City Field. That's All's train ahead on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XM one nine team and around the world long Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning. I'm Nathan Hagger and I'm Karen Moscow and US DOT index futures are lower this morning. We are coming up to a six

oh one on Wall Street. I'm mean check the markets every fifteen minutes throughout the trading day. On Bloomberg, U S and P Future is down about ten points down Future is down a hundred twenty nine and NASDAG Future is down about thirty. The ten year treasury up six thirty seconds. He had two points seven seven percent, and they yield on the two year at three point one percent and the euro one point zero one seven three

against the dollar. Nathan, Karen, We'll get back to markets in a moment, but we begin in the nation's capital, where former President Donald Trump returns for the first time since leaving 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 address 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 as Bloomberg daybreak. All right, Amy, thank you, but we stay in Washington, where the Federal Reserves two day meeting kicks off today.

The Central Bank is set to raise rates again. That's just by GDP numbers due out Thursday, which could show the US contracted and back to back quarters, signaling a recession. However, Moody Chief economist Marksandy tells us there are not recession signs at the moment. When you have a lot of jobs, you have low lay offering, a lot of consumer spending. Income growth is strong. That's not consistent with a recession.

This is not a recession. Moody Chief Economist Marksany says if the economy does contract, it will likely be in the next six months. He spoke at our Washington corresponded Joe Matthew on Bloomberg's sound on Catch the Program weekdays at five pm Eastern on Bloomberg Radio, Karen Futures and Laura ahead of the Fed meeting. Lisa Ericson, senior vice

president with US Bank, is 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. US Banks Lisa Rickson says the US will narrowly avoid a recession as inflation begins to receive well. Nathan turning to oil now, crude is advancing for a second session. Signs of a tide market are offsetting concerns

about an economic slowdown. And checking prices now nim Ex screwed oil is up two percent of a dollar ninety and ninety eight dollars sixty two cents and barrel brent at one point seven a hundred six dollars nine six cents. We're also seeing volatility and overseas energy markets. Russia plans to curb natural gas flows on the Nordstream pipeline, and that's joelding energy markets in Europe and the UK. Karen candidates her Prime minister, faced off in another primetime debate

last night. Liz Trust and Rischi soon actrifying to replace Boris Johnson. Bloomberg's You and Potts joins us from London with more good Morning You and give warning 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 gross If we follow Riscie's plans, we are headed for. That was Foreign Sectuary Liz Trust. There. Meanwhile, former Chancellor Riscie Sunac calam that his opponent's tax plans would push up inflation and mortgages. The proposals would mean that we get the short term sugar rush of unfunded borrowed tax cars, but that would be followed by the crash of higher prices and higher mortgage rates. That was

former Chancellor Rishi Sunach. Whoever wins the six week long contest will end up as the next British Prime minister. But with a tax like these, it's easy to forget they're both members of the same political party in London. I'm you in parts in both Daybreak You and thank you Beck. Here in the US, corporate earnings are in focus today and shares of Walmart are down made and a half percent in early training after the company lowered

its forecast for the second quarter. Bloomberg's you need a Young joins us Live with the details or we need a good morning, Good Morning care in analysts 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 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 much as others, and say the news is as signed that marginally higher income consumers are feeling the pitch from inflation, But Piper Sandler says it's too early to take a more constructive view on Walmart, so analysts there are waiting on a more broad earnings reset industry wide Live in New York, I'm really need a

young Bloomberg, Daybreak need a thanks Back. In Europe, UBS reported week er than expected profit for the second quarter. The global market sell off kept wealthy clients on the sidelines, as the Swiss Bank saw outflows of twelve billion dollars. Surging prices and slowing growth also hit the results. We spoke with you Ubs CEO Ralph Hammers about his outlook for inflation and how it's impacting businesses and some businesses there are still quite some tension in the labor markets,

so that has not gone completely away yet. So it's a mix of inflations and the labor market circumstances. If inflation continues to be here, of course, it will be reflected ultra in thing. Ubs CEO Ralph Hammers called the second quarter one of the most challenging periods in the last ten years. Shares of the bank are down more than six percent. Well, Nathan, you to leave are also out with earnings. Results are mostly in line with estimates.

The company is raising prices to battle inflation. That's helping to offset certain costs, and shares her up two percent in London. In Asia, overnight, Karen Stock's got a boost from China's tech sector. The c s I three and the Hang Sang climbed after reports that Ali Bomba will seek a primary listing in Hong Kong. The move could provide a template for Chinese companies to exit exchanges in New York and cryptocurrencies are also under pressure this morning.

Nathan Nazas sources to ls coin based Global is facing an investigation from the Securities and Exchange Commission. We're told the SEC is probing weather coin base and properly led Americans or let Americans trade digital assets that should have been registered as securities. Again, futures are lower this morning. Straight ahead of your latest local headlines plus the check

of sports and this is Bloomberg. Thanks Karen. Six oh seven on Wall Street in Central Park, problems on the east side, gotta crash southbound FDR Drive at seventy ninth Street. More coming up in traffic. First, Michael Bars here with more on what else is going on in New York and around the world. Michael, thank you very much, Nathan. More people are being infected by the monkey pox virus in the US. So far, there are almost twenty nine

hundred 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 nine he presented the cases in the States 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 a global emergency. Officials say New York's m t A may not regain on of pre pandemic writership until about twenty thirty five. Writership on New York City subways, buses, and commuter rail lines is now projected to reach nineteen doubles in late the back and forth on weather House speaker Nancy Pelosi is going to visit Taiwan as China angry, Bloomberg said. Backster reports Beijingia has issued his 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, strengthen in Taiwan, continuing to work more closely with Japan, organizing Europe about what sanctions would put you put in place of China ever moved against Tailan process. At some point there will be

a confrontation between China and the US regarding Taiwan. In San Francisco, I'm at Baxter Bloomberg Gabrie, New York Republican Congressman Lee Zelden is reacting to a man who tried to attack him last week. Forty three year old David Jacobanus was re arrested and federally charged after he jumped on stage during a political rally on Thursday. He tried stamming Zelda was not hurt. Zelden is calling on the New York State legislature to get rid of cash less bail.

The good news is the attacker as of Saturday, was re arrested, and as far as anything else that the federal government wants to charge him with, or anything else that the District Attorney's office want to charge him with, they have that opportunity working with each other to decide what that is. If convicted, Jacobanus could spend up to

ten years in prison. Global News twenty four hours a day on air and on Bloomberg Quick Take Power by more than seven hundred journalists and analyst in a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Michael, thank you kind. Up to six ten on Wall Street. John Stashower has a Bloombridge Sports update thanks to Nathan. The Subway series always about bragging rights, but the one that starts tonight at 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, three run homer eighth inning gave the Fields a six four win over Atlanta. Yankees lee the Al East by twelve and a half games. They're concerned is finishing ahead of Euston for best overall record the Astros, so their five game win Street come to an end

in Oakland, so the Yanks two games ahead. Starting pitchers tonight Jordan Montgomery for the Yanks, Taiwan Walker for the Mats, and Aaron Judge is excited. The fans getting into it. It's always the packs playoff atmosphere um always back and forth. You never know what's gonna happen. Um, and that's a competition here. They got a great pitching, seve, great offense over there. You know, we so looking forward to let's see what happens. Just thirty seven home runs, seven more

than anyone in baseball. He has eighty one r V I is the only player with more Pete Alonso, he has eighty two. Details emerging about trade talks between the Nets and Celtics involving Kevin Durant. Reportedly, the Celts offered to Brooklyn, Jalen Brown Derek White in the first round pick and the Nets wanted Brown and Marcus Smart and multiple picks, and the Celtics said no, no secret. Nick's

trying to acquire Donovan Mitchell from Utah. Now there's where they're Washington's, Charlotte and Sacramento are all talking to the Jazz as well. Nix also said to be one of a few teams that I've spoken with the Lakers about acquiring Russell Westbrook. John stash Award, Bloombrook Sports Nathan, thank you, Johns. Some red headlines across the Bloomberg terminal ups out with

second quarter earnings a beat analyst estimates. GM's results missed, the carmaker reaffirmed its view for the year, and European Union countries reach a deal to cut gas use for next winter. A few chers moving lower this morning. This is Bloomberg Bloomberg eleven three. Weather partly sunny, less humid today, mid eighties for highs. We'll bring back chances crafting in showers and thunderstorms tomorrow and Thursday, both days near ninety

degrees right now in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business At and at Bloomberg Quicktap. This is a Bloomberg Business Flash, and I'm Karen Moscow, and we've been watching earnings cross the Bloomberg this morning, with the UPS reporting second quarter profit at beat analysts estimates and no share higher in early trading, up one point nine percent. GM second quarter profit missed analysts estimates, and shares her

down about a third of percent this morning. Futures are also lower. S and P futures down thirteen points down, futures in A hundred fifty two and NASTAG futures down forty three. The decks in Germany is down half per cent. The ten year treasury of eleven thirty seconds yield two point seven five percent, yield on the two year three point zero zero two percent. No make screwed oil is at one point seven percent of a dollar sixty and

ninety eight dollars twenty seven cents a barrel. Co make school at a quarter percent or four dollars at seventeen thirty three ten announced the euro one point one four two against the dollar, British found one point one eight and the En one thirties six point eight zero and bitcoin this morning down four point nine percent at twenty one thousand, ninety dollars. Sets up a Lottomberg business flash. Now here's Michael Barr with more on what's going on

around the world. Michael Karen, thank you very much. Former President Donald Trump will return to Washington today for the first time since leaving office. Trump will address the America First Policy Institutes Today summit. Sometime in the future, Trump could announce it two White House campaign. How Speaker Nancy Pelosi, staff and security officials aren't ruling out plans for her to to time on 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 Raise five one, The Nationals beat the Dodgers for one, the A's beat the Astros seven five, and the Diamondbacks blank the Giants seven zip. Global News twenty four hours a day on air and on Bloomberg Quicktech, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan, Okay, Michael,

thank you. It is six nineteen on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. And Pria Misras with us now global head of rate Strategy at t D Securities, as the Federal Reserve and really all the rest of us get ready for the two day July policy meeting in that hotly anticipated decision coming up tomorrow. Priya, it's great to speak with you this morning. The markets have pretty much priced in seventy

five basis points. What are the chances we get something else? Maybe an upside surprise from the Fed tomorrow? Moring uh and thanks for having me, Um, you know, I think the market was pricing in a decent chance of a hundred basis points after the very high CPR report. But then since then, you know, I think growth is slowing. The Fed may want to start to slow down. That that base of rate hikes we heard from a bunch of Fed officials talking about seventy five is still very large.

So you know, our view is that they go seventy five. I would say the chance of a higher amount is is low. I mean the markets pricing in ten percent chance, I would say that's fair. I think the big question is what is the downship? Does chep? I'll commit to that downship going forward. It's all about that that terminal rate,

which has actually gone down significantly. I think the market is a little bit too pessimistic on growth here and optimistic on inflation because the market has taken the end point of the hiking cycle from four percent two now as low as three point three. I think the Fed may be forced to keep going here. His inflation is still very high and the unemployment rate is still low. So I don't think they're going to signal that they're

very close to being done with the hiking cycle. I think that's the that's it's really the forward guidance or the messaging about future hikes that will be focused on. I think this seventy, as you said, is essentially all priceton. Well, where do you see the terminal rate going? And how do you see the FED potentially moving into this hiking cycle? Here? Are are Are you forecasting a slow down from the Fed?

We are so, you know, our view is that they really wanted to front load to get to neutral with this one seventy five basis points. They'll get to neutral at this point. They can then start to go a little bit slower, you know, but it's still fifty basis points. So we've got fifty basis point hikes really September, November, December, and that's when the hiking cycle ends. You know. I

think they have to go into restrictive territory. They really have to control the inflation narrative and and and inflation expectations and so, you know, I don't think they can sound too concerned about growth. The problem is growth is also slowing, So we think, you know, when you get close to that three seventy So our view and terminalists three seventy five maybe as high as four if inflation

doesn't really slow down core inflation. I think headline is likely to slow down, but they're going to also look at core. That shelter number is very high, and that tends to be very trending. So if that doesn't slow down, I think they can go as high as four percent and then slow down. And I think what I struggled with is the markets pricing and cuts right away, and you know, I really I think there's a different threshold for the FED to stop hiking. I think slowing in inflation,

slowing in growth. Once they get to three seventy five or four, they stop the market saying, oh, next meeting, they start to cut, and I think that's where we're going to struggle. I think we'll all look at slowing growth and wait for the FED to to start to ease. I don't think they'll be able to ease with inflation, you know, at five percent or six percent early next year. I think that's the surprise of negative surprise for for risk assets that could be ahead. Do you think this

economy is slowing into a recession. We've heard from the White House saying that the technical recession too straight quarters of negative growth isn't necessarily a broad based recession. What's your view on that? Sure, So, I think what we've seen in the first quarter in the second quarter is sort of negative for you know, technical reasons, meaning that it's not a broad based slowdown. I would agree with the White House there. NBR is the one that actually

announces whether we're in a recession. I don't think we're in a recession right now, despite the negative GDP. It was net expots related and and and it's an inventory drag in the second quarter. But we do think we're slowing. We're slowing from very strong levels. The labor market's very hot. I mean we're well through what the fact believes the natural rate of unemployment is. So I think the unemployment rate is going to go up. The economy is going

to slow. It is odd that the FED is hiking into a slow down, but I think we've got an inflation problem. Um. So you know where I'm more concerned about a recession. I delete this year, fourth quarter, early next year. That's where I think there is so much child that would be a more broad based slowdown because the labor market by that point starts to you know, the unemployment rate starts to rise, and then it's hard

to see how the ft can finesse it perfectly. Where the unemployment rate only increases by a couple of you know, a couple of tenths of a percentage point, that's where I think there is a higher But I think right now we're slowing from strong levels, so I don't think we're in a recession right now. Great to have you on with us. Thanks for these insights this morning, Prea really appreciate it. Prea Misra, Global head of Rates Strategy

at t D Securities with us this morning. Getting more earnings crossing the Bloomberg terminal this morning, ge with a big earning speed seventy eight cents adjusted EPs. The estimate was thirty seven cents, so earnings coming in more than double analyst estimates. Right now. SMP futures down seventeen points down, Futures down A five, NaSTA features down sixty. You're listening to Bloomberg Daybreak, Bloomberg eleven three oh weather partly sunny,

less humid today, mid eighties for highs. We'll bring back the humidity tomorrow and Thursday, both days with that afternoon chance for it showers and thunderstorms on a high near ninety degrees right now seventy one in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York.

Bloomberg E Living free to Washington, d C, Bloomberg ninety nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM to the one nine team, and around the globe the Bloomberg Business at and Bloomberg Radio dot com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow. We are just about three hours away from the open of US trading. Time for the five Things that you need to know to

start your day. Brought to you by Interactive Brokers Global Analysts. It helps you find new global investment opportunities to diversify your portfolio and discover undervalued companies that may have greater growth potential. Try i v k R Global Lenos today at IBKR dot com. Slash G A first to begin of the nation's capital. Former President Donald Trump is returning to d C for the first time since leaving office, and the Federal Reserves two day meeting cakes off today

in Washington. The Central Bank is set to raise rates as it looks to tamp down inflation, and futures are lower as markets get ready for that next move. Karen Lisa Ericson, senior vice president at US Bank, is 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 Ericson with US Bank

also thinks the US will narrowly avoid a recession. Nathan Corporate Earnings in focus today shares of Walmart down more than nine percent of the company lowered a second quarter forecast. Bloombergs Jurneda Young joins us live the details or need a good morning Good Morning Care and analysts 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 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 much as others, and say the news is a sign that marginally higher income consumers are feeling the inflation pinch. But Piper Sandler says it's too early to take a more constructive view on Walmart, so analysts there are waiting on a more broad earnings reset industry wide.

Live in New York, I'm gonna need a young Bloomberg Daybreak, all right, we need to thank you over and you're ap. Ubs reported weaker than expected second quarter profit and the Swiss banks shares are now down nearly seven percent. And in the US, Nathan, it's a big week for Big Check Bloomberg. Jeff Bellinger reports on Microsoft earnings to do out today. Bloomberg Intelligence notes that half of Microsoft's totals

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 Bullinger, Bloomberg day Break, all right, Jeff, thank you. That's the five things that you need to notice start your day. Brought to you by Interactive Brokers and Futures this morning

are moving lower. Straight ahead, we have your latest local headlines, plus the check of sports, and this is Bloomberg. Thank you. Karen six thirty three on Wall Street, seventy two degrees in Central Park got an accident in Queen's northbound Cross Island Parkway at Belle Boulevard. We'll get to the details in traffic first. Michael Bars here with what else is going on in New York and around the world. Good morning, Mike, Call, Good morning Nathan. Monkeypox cases in the US continue to grow.

There are almost twenty cases so far. Close to eight d party cases are identified in New York City alone. Mayor Eric Adams. They always come up with new ways of solving the problems that we face, and 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 monkey pox patient, which right now mostly includes men who have sex with men who have multiple partners. White House coronavirus Response Coordinator Dr ishi'sh 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 do in a way that's respectable of people. The World Health Organization declared the ongoing monkey pox I'll break to be a global public health emergency. A senior MTA officials says New York may not regain on of pre pandemic writership until about twenty thirty five. Writership on New York's city subways, buses, and commuter rail lines is now projected to reach 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 about President Trump for three hours. The defeated former president of United States wat's 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 fall out from out speaker Nancy Pelosi's possible visit to Taiwan next month. China has moren that any visit to the island nation that it considers part of China will be met with serious consequences. State Department spokesman Dead Price were committed to maintaining Cross Street peace and stability UH and our One China policy. There has been no official announcement from spokesman net Price or any senior officials about

a Pelosi trip. Global News twenty four hours a day on air and on Bloomberg Quick Take Power by more than hundred journalists and anatolists more than a twenty countries. Michael Barr and this is Bloomberg. Nathan, Thanks Michael. Almost six thirty six on Wall Street, John stash Ower has the 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 plate tonight in tomorrow at City Field, then twice next month in the Bronx. Tonight it's Jordan Montgomery against Taiwan Walker. Last night, the Phillies down three nothing came back beat Atlanta six to four. Bryson stopped game winning through on homer and the eighth inning. That helps the Mets.

They leave the Braves now by two. The Yankees lead the Astros by two in the race for best overall record used and lost last night in Oakland much they didn't win. For the Red Sox. They had lost five in a row. They had a out sixty seven runs in those five. They beat Cleveland at Fenway three to one. Baseball trade deadline in one week. Both the Mets and Yankees believed to be in talks with Washington about acquiring

Juan Sot that would certainly be a blockbuster. Yankees GM Brian Cashman told the y S Network He's always looking to make any move necessary. Every chess piece, every decision, every promotion or in court, it's all designed to to improve your shot and your team's stabilities and your managers UH maneuver ability UH and choices that he has to

play with. The Yanks also said to be interested in Cincinnati petrol Luis Castillo and Kansas City outfielder Andrew Benintenni to concern with him, he's unvaccinated, so he can't play games in Toronto. The Cardinals play in Toronto tonight and St. Louis will be without it's top two hither as Paul Goldsmith Nolan Arronado, both on facts. The doors open at all thirty two NFL training camps today for the Jets and Giants that come off seasons where they both went

four and thirteen. John stactually our Bloomberg Sports, Nathan, thank you, John sixty seven on Wall Street Time to take a look at stocks, some of the names moving in the pre market. Bloomberg Radio and TV Markets correspondent Pretty Gupta is very busy this morning because there has already been a lot of earnings acrossing the tape in the pre market. Where do you want to start. Let's start with General Motors here, because this is I think almost the old

story is the new story. General moters missing their profit estimates is of course coming after the chip shorters. They're saying, well, look, the chips are issue is still a major issue. We've been talking about this for almost a year and a half now, Nathan, and it's enormous and they're saying basically, without all the chips, they can't increase their output. Therefore, when people buy cars. There's just no supply for them.

That being said, the way they're making it up is by having higher sticker prices on their SUVs and their trucks, so their production volume remains constrained, but ultimately the kind of sticker price makes up for it. That being said Mary Barra, the chief executive officer of GM. She does say that they expect those deliveries to be up sharply in the second half, so basically the first half is not representative of the back half of the year is going to be like still, that is not helping the

shares regardless. GM is also the taker as well as the company's name down one point four percent in the pre market. So it really is the old stories the news story. And while we're talking about some of those industrials, I would argue UM three M is another one. We want to keep an eye on those earnings coming out as well. M M M is your ticker. The shares

are about two percent this morning. This comes after they announced a spinoff of their healthcare unit, a huge project that they're saying is going to help monetize their healthcare business in the long term. And Nathan, this is a theme we just heard Amazon getting into the healthcare business. It looks like healthcare is the place to be at the moment. Yeah, it certainly does. And we also got

that big news yesterday from Walmart cutting its Outlook. Are we seeing some spill over into other big box retailers, Oh, we absolutely are. The pain is back when it comes to the retailers. Down about nine point three percent for Walmart sharees w M T is your taker. And to your point, they did talk about that that massive myth they they're they're cut on their full year forecast, Nathan, is huge. They had previously forecasted a drop about one

percent on their full year forecast. Now they're saying it's going to be eleven to. That is enormous. In addition to talking about this, of course, the inventory build up that we've seen across the board. Really when we have Target come out that big warning. Um. More recently t g T s the other taker, down about five percent on Target shares. And the issue with Walmart, Nathan, Um for for the folks who are not New Yorkers and are familiar with Walmart, you'll know that everyday low prices

is their thing. UM and price much guarantees they target a lower income audience, but that of course is the part that is most hit by inflation as well, so you can't pass on the higher input costs and that's what's really hitting their bottom line there. Yeah, big part of the economics stories. We continue to watch these earnings come through. Creaty group to Bloomberg Radio TV Markets correspondent with us in the pre market as we say, we're gonna be very busy for the next several days, if not.

We here looking ahead to the market open this morning. Future is moving lower. SMP futures down eighteen point, STOW futures down a hundred sixty three, NASTACK futures lower by sixty nine points, the tenure treasury up eleven thirty seconds, yield two point seven five ahead of the feds July

decision tomorrow. You're listening to Bloomberg day Break Bloomberg eleven three oh weather partly sunny, less humid today, mid eighties for high so we've been back near ninety Tomorrow and Thursday, both days of chances for afting noon showers and thunderstorms. 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 and it's been a busy morning for earnings and futures are lower. We got to the first word breaking news dash for day's morning call, and here's Bill Maloney. Bill, good morning, Yeah, and good morning, Karen. Walmart is setting the tone today, dropping ten percent. Pre market Future is currently down a hundred and fifty points, sabs drop fifteen well, the nastic

futures are off by sixty one. US ten year old sinks to two point seven six percent, Gold is little chained, Oil is climbing, and Bitcoin is down by five percent. Hong Kong rose one point seven percent overnight, while up markets are in the red this morning and back in the US. On the economic front, it's on o'clock consumer

confidence and new home sales after the bells night. Walmart cut its profit outlook again and regarding some of the earnings this morning, g and upspat estimates and also look for Coca Cola and McDonald's report in the pre market. Indian News three im plans to spin off its healthcare

business and wrapping things up. Micro Strategy was put to underperform over Red Jeffreys Live from the First Record newsscom Bill Maloney, Karen, alright, Bill, thank you to here live breaking news over your Bloombery Times, Squawk on your terminal SQ you a w K, that's a Bloomberg business flash. Now here's Michael Barrow with more on what's going on around the world. Michael, Karen, thank you very much. It will be the first time President Trump returns to Washington

since leaving office. Today, the former president will deliver a policy speech before an allied think tank crafting a possible second Trump term. W NBA star Britney Grinder has returned to a Russian court room for her drawn out trial on drug charges. They could bring her ten years in prison if convicted. The trial of the Phoenix Mercury Standout began July first, 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 Raise five one, The Nationals beat the Dodgers for one. The A's beat the Astros seven five, the Diamondbacks blank the Giants seven. Zip Global news twenty four hours a day on air and on Bloomberg Quick Take Power by more than hundred journalists and analysts more than a hundred twenty countries. And Michael Barn this is Boomberg. Here Ry Michael bar thank you, and it is six

forty nine on Wall Street. Return to news and science and technology now with the Bloomberg and j I T Stem Report, brought to you by New Jersey Institute of Technology, transforming computing professionals into data scientists to meet the demand in this fast growing field. Learn more at n j I T dot E d U slash Data Science Now. Here's It's making news and science, technology, engineering, and math. Environmental groups are asking Tesla to reconsider its plans for

nickel investment in Indonesia. Dozens of organizations ask the e V Giant determinate plans, siting the country's history of environmental damage and anti democratic governance. Indonesia is the world's top producer of nickel. J D dot Com and bay Do are among Chinese tech firms that may follow Ali Baba and applying for a Hong Kong primary listing as the financial hub seeks to attract mainland investors and hedge against

the risk of being kicked off US exchanges. Over the past year, Chinese companies have increasingly opted for a dual primary listing in both the US and Hong Kong, and crypto owners would not have to report small transactions under a bipartisan bill sponsored by Republican Senator Pat Toomey and Democratic Kirston Cinema that's aimed at simplifying the use of virtual currencies. It's unclear if the bill could be considered this year. That's the Bloomberg and jat Stem report. Nathan

interesting note out of Washington. There, thank you, Karen. We are live from the Bloomberg Interactive Broker Studios where at six fifty on Wall Street, and it is time to check what's going on in d C. Some of the top stories in our nation's capital include former President Donald Trump returning to Washington to make a policy speech, China fuming over how Speaker Nancy Pelosi potentially heading to Taiwan, and the Biden teams take on a technical recession. It's

not real. Let's bring back Joe Matthew, our Washington correspondent, host of Sound on Here on Bloomberg Radio. Joe, what is the level of anticipation from where you sit for the former president's return later today, Well, it's very high. We've been, you know, anticipating this speech, and we now understand that we will have dueling speeches as we first thought. Yesterday. You might have heard that Mike Pence's speech at the Heritage Foundation here in d C. Last evening had to

be postponed because of weather. Couldn't get the plane here. But he's said to speak at a separate event this morning in Washington. So this becomes a bigger story when you consider the two of them talking within hours of each other here. As far as Donald Trump is concerned, Look, it's not his first speech since he left the White House, so his messaging, the points that he plans to hit and the people will be surrounding himself with, will look

very familiar. It's billed as a speech to the America First Policy Institute. Are we expecting a policy speech from the President? Well, to the extent that Donald Trump delivers policy speeches, and I'm sure there will be. We'll talk about border policy. I suspect we'll hear about trade policy. Maybe military policy is well, foreign policy. The way we're dealing with Vladimir Putin and so forth. That's opposed to,

you know, a laundry list of proposals here. But the fact of the matter is the President has not announced a run for the White House. He's not expected to do so today, at least in in in a formal sense. He likes to say, you know, we won twice and we might just have to do it again. That's kind of a stock line in his speech that gets a big round of applause. But as far as today goes, you know, it's gonna be kind of warming back up

to the crowd. Kevin McCarthy, the minority leader in the House, is going to be speaking before the President, surrounding himself again by members of the Republican Party here in Washington that are on board with Trump. A lot of House leadership will be there, as opposed to Senate leadership. Mitch

McConnell will not be in the room. And as you point out, we are going to get now dueling speeches from the President and the former vice president, potentially setting up at least the dynamic for possible opposition here is that part of what we could be expecting, certainly anything as possible. It's pretty clear that Mike Pence would like to run. It's not clear whether we're gonna have a Trump versus Pence race, although that would be a heck

of a spectacle. The thing is, it's really unclear right now. As we've watched Donald Trump endorsed a lot of candidates in the primary trail. Uh. Some call him, including our own political analyst Rick Davis, Mr thirty because that's really been the threshold for his victories on the campaign trail. Could he actually beat Mike Pence? Could Mike Pence bring

a real base of support here? It's very difficult to tell in a couple of years, uh that that we've gone through here, certainly after January six, because a lot of Republicans tend uh not to say that they don't want to support Trump. So, you know, does Mike Pence have a sort of silent base out there? That's what he's trying to figure out as the establishment Republicans like Mitch McConnell go a little bit further over to that side.

And speaking of January six, Joe, it has to be noted that this appearances coming as the House January six Committee and even other bodies outside Washington are still investigating the former completely. That's true. And you know, we talk a lot about Joe Biden's approval ratings. Here take a look at Donald Trump's approval ratings. Joe Biden is in the load and mid thirties, which is historically low. It's a major problem. But you know what, Donald Trump is

in the low forties, not that far ahead. To be perfectly honest with you, in a majority of voters on both the Democratic and Republican sides have said to posters very recently, including one by The New York Times in Siena College over the last couple of weeks, that they don't they don't prefer either in front of their party. They want new faces. Democrats would prefer somebody other than Joe Biden. Republicans at least a majority tell posters they

prefer somebody other than Donald Trump. All right, well, let's turn while we wait for that speech from the former president later this afternoon, and to what's happening in this current White House under President Biden. And it seems like they're still mounting pressure from China over this reported trip to Taiwan. By how Speaker Nancy Pelosi were getting more comments from the China. Chinese government just this morning. Yeah,

this is true. We've you know, we heard yesterday about how they were going to be making special preparations if she were to come. The question becomes now, which looks worse showing up when President Biden says she should not or the Pentagon says she should not, or canceling the trip and looking like we cow tow to the Chinese. A lot of Republicans are saying that she should go

for that reason. We keep in mind that we have seen other high ranking US officials visit Taiwan, uh Mike Pompeo, when the former Secretary of State, the former Defense Secretary Mark Esper, the Speaker of the House is apparently a little too far up the food chain for the Chinese to stomach here. But it is another scenario that reminds us of our separate branches of government. Nancy Pelosi does not want to be told where or when to travel

by the White House. But you also have to keep in mind that she would need the Administration and by that I mean again the Pentagon, to provide transportation for a coodel like this. That's an Air Force jet she'd be flying on, so at some point they'll need to get their heads together on it. The idea would be, though did not have her on the ground in Taiwan within days of President Biden speaking with President She and

I suspect they'll figure that out. Yeah, that's right, Just what I wanted to get to Joe, because the President said that he could be speaking with the Chinese leader as soon as this week. How does this back and forth about the speaker Pelosi affect those preparations for that call? Kind of hard to tell if if it does affect them at all. You know, this just could be kind of noise in the background by the time these two

get on the phone. I think the concern would be if Nancy Pelosi were taking pictures, uh, you know, if there were photo ops in Taiwan leading up to or just after that meeting, that that might make things a little bit more complicated. But Taiwan is going to be something that's discussed in this hall, and after Joe Biden said and the White House went back to clarify what he said that we would in fact support Taiwan if

it were invaded by China. A lot of questions about what exactly the policy is at this point with this White House. All right, when Berg Washington correspondent Joe Matthew catch him on sound on this afternoon five pm Wall Street time on Bloomberg Radio, will get certainly more reaction to former President Donald Trump's speech before the America First

Policy Institute. You can read more about all these stories as well on Bloomberg dot com or on the Bloomberg terminal, and listen to Bloomberg Radio in Washington Bloomberg and one oh five point seven FM HD two. As we continue to watch earnings cross the Bloomberg terminal. Coca Cola out with second quarter results of beat analysts estimates and boosting their guidance for the fiscal year. Futures moving lower. SMP futures down fourteen points, Staff futures down a hundred forty three,

Nasdaq futures down fifty seven points. Much more to come on Bloomberg Surveillance with Tom Keene, Jonathan Farrell, and Lisa Abrahm woids for Karen Moscow. I'm Nathan Hager. This is Bloomberg