Bloomberg Daybreak: July 27, 2022 - Hour 2 (Radio)

release repeat for criminals has to end. Plus no jackpot winner in the Mega Millions lottery on Michael Barre Ahead, I've done standshower and four Yankee six to three to start the Subway series, which ends tonight at City V. That's all training ahead on Bloomberg Daybreak on Bloomberg he Living three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nine Team, and around the world

on Bloomberg Radio dot Com and via The Bloomberg Business. Good Morning, I'm Nathan Hagar. And I'm Karen Moscow. US DOT index futures on the rise this morning. We are coming here to six oh one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg S and P futures up thirty six points down. Futures have one forty seven and as day futures have one eighty one. Ten year Treasury up five thirty seconds.

You two point seven eight percent. They yield on the two year three point oh four percent, and nine n screwed oil is up a tenth of a percent. Nathan, all right, Karen, we'll have more in markets in a minute. It is a busy day with a Fed decision in tech earnings reaction. But first, the Justice Department is taking aim at Donald Trump. A federal grand jury is looking into efforts by the former president to create false electors to overturn the election. We get details from Amy Morris

in our Bloomberg newsroom in Washington. Mark Short, who was chief of staff or former Vice President Mike Pence, and Greg Jacob, who was Pence's teeth counsel, were asked by federal prosecutors about conversations they had with former President Trump about creating and submitting false elector certificates. This as Trump addressed the America First Summit in d C was November. The people are going to vote to stop the destruction

of our country. Sources tell Bloomberg the nature of the questions before the grand jury indicate the probe has expanded beyond those who attacked the capital. On January six, in Washington, I'm Amy Morris, Bloomberg Daybreak, Hey mey, thank you. Another major story in Washington this afternoons FED decision. Investors are looking for another rate high from J. Powell and Company,

and we get more from Bloomberg's Michael McKee. Global. Wall Street has priced in a three quarters percentage point increase in the FEDS benchmark rate. The real question is what comes next. At the past few meetings, FED Chair J. Powell has suggested the FED would be looking at fifty or seventy five basis point. Moves comments he's not likely to repeat beneficials won't be making new forecasts at this meeting, but there are signs the rate of inflation may be

starting to eat. At the same time the US economy appears to be slowing. Expect Powell in his news conference to try to retain as much flexibility as he can. Michael McKee, Bloomberg, debriak, Michael, thank you. We'll have complete coverage of the FED decision and cheer Powell's news conferences afternoon in a special edition of Bloomberg Surveillance. Special coverage starts on Bloomberg Radio and Television at one thirty pm

Wall Street Time. Turning the stocks now, Karen, we are seeing futures get to pop this morning following some big tech earnings. We begin with Microsoft. Those chairs are up more than three and a half percent after the company delivered an upbeat sales forecast. The story from Bloomberg's Charlie Pellett. It eases investor concerns about growth that had flared up

following a lackluster fourth quarter earnings report. On the conference call, the software giants said it expects revenue and operating income growth at a double digit pace for fiscal twenty three, which ends next June. Earlier, the company reported fourth quarter sales and profit that fell short of analyst projections, held act by on favorable currency exchange rates and weaker demand for cloud computing services, personal computer software, and advertising. On

its online properties in New York. Charlie Pellett Bloomberg Daybreak. All right, Charlie, thank you. We're also seeing shares of Alphabet on the rise. This morning at three point four per SAI, the Google parent reported revenue that was in line with expectations. Angelo Zeno is senior equity analyst at CFRA.

There's a clear distinction between companies like Alphabet and Apple, which are great compounders, great free cash flow generators, whether you're going in an upturn or a downturn relative to others out there. And Angeloso at CFRA says Google sales gains Indicata's advertising business may be positioned well to weather a crunch and marketing spending. It's another busy day for earnings in Europe, Karen, where big banks are in focus.

Let's go to London and get the latest with Bloomberg's You and Pot's Good morning You and good morning Nathan and Karen. Another new boss, another new turnaround plan. Credit Sweet is replacing its CEO after two years in the job and rolling out a new plan to fix the business just nine months after the last one. This has the Swiss led the Post a large and unexpected loss

in the second quarter. Happier times over at Italy's UNI Credit, though profits in the latest three months coming in a double the level forecast by analysts, un Credit shares gaining some five percent. This morning in London, I'm you and parts day break, Hey you and thank you. He told you yesterday about an SUC investigation centered on coin Base. Now we're learning that has a big name investor cutting

bait on the crypto company. To get the latest life from Bloomberg's Ready Too Young, Good Morning, Ready to Good morning, Karen cathy Wood's Ark Investment Management dumps coin based shares for the first time this year. Arcs daily trading data compiled by Bloomberg show three of the funds sell just over one point four one million shares, valued at about seventy five million dollars as of yesterday's close, and of that, the firm's flagship ARC Innovation et F sells one point

one two million shares of coin Base. Bloomberg sources say coin bases facing a US probe into whether it improperly led Americans trade digital assets that should have been registered as securities. Shares of the world's largest US crypto exchange lost about a fifth of their value. Tuesday Live in New York. I'm gonna need a young Bloomberg daybreak. We need to thank you. Turning to geopolitics, the U. S And China are front and center, with Presidents Biden and

she Jinping set for a call tomorrow. Tensions are simmering on a range of fronts, and we get the story from Bloomberg. Said Baxter, the possible Nancy Pelosi trip to Taiwan is number one. This is speaker Pelosi is being urged by allies and foes alike to make the trip to Taiwan, saying to Councel would look as if she's

backing down to China. And then it is smack dab in the middle of the so called Chip bill debate, which is supposed to pass the Senate today, going to the House to be signed by the President by the end of the week. So with that backdrop, how much attention of Russia and Ukraine will get as a question along with human rights? And the administration is now not commenting on whether Mr Biden has decided on easing tariffs in San Francisco. I'm at Baxter Bloomberg Daybreak, alright, ed,

thank you, futures are moving higher this morning. Straight ahead your latest local headlines. In the check of sports. This is Bloomberg and it's sounds six oh seven on Wall Street, seventy one degrees in Central Park. Still dealing with an accident southbound on the major Deagan and a hundred seventy nine will get the latest details in traffic. First, Michael Bars here with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan.

New York Mayor Eric Adams says the era of catch, release, repeat when it comes to criminals has to end. Adams talked about the recent incident and a Harlem subway stop. Video shows a team punching officers for several minutes at the street station as police struggled to arrest him. Adams says the team was arrested a few days ago and was released before the incident. Just a total disregard for public safety, not only for public safety for that Trisit officer,

but also for the person he robbed. This is what we are saying about what is happening in our criminal justice system. Earlier this week, in my p D trans Achieve, Jason Wilcox says that assaults on his officers of skyrocketed over a fifty five increase this year. New Jersey Governor Phil Murphy's administration is asking state residents to use less water amid a heat spell and scarce statewide rainfall. Some parts of New Jersey had five straight days of temperatures

one hundred degrees or higher through Sunday. Officials stops short of enacting restrictions. The families of the nine eleven victims are letting pro golfers and former President Trump know they are outraged over the Live Golf Invitational Saudi Back tournament will be hosted at Trump's Bedminster, New Jersey golf course on Friday. Terry Strada is the national chair of Nine Eleven Families United. She called the pro golfers who are

participating sellouts. And they thought that taking a large sum of money from the Kingdom, you know, would give them all of this financial security. And it might do that, but you're selling your soul to the devil when you get in bed with the saudiast. The US government says there was Saudi involvement in funding the terror network that

committed the nine eleven attack. It's a permanent place to remember the late Jackie Robinson, the Brooklyn Dodger who broke the color barrier, now has a museum in Soho in his name. Several of robinson surviving relatives were in attendance yesterday for the ribbon cutting. The museum officially opens to the public September five. A giant Mega Millions lottery jackpot balloon to over a billion dollars after no one matched

all six numbers and on the top prize. The next drawing is Friday Global News twenty four hours a day on here and on Bloomberg Quicktake, 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 kill home to a six ten on Wall Street. Time for the Bloomberg Sports Update with John Sesshire. Thanks they can sell out crowd at City Field. They saw

an eventful first inning to start the Subway series. Yankees and Mets both homer twice. Aaron Judge number thirty eight hit it to the opposite field on the next pitch. Anthony Rizzo, his twenty three of the year, also the opposite way Mets didn't get a first any home run from Starling Marte. Mets scored again, then Homer again. So we're gonna drive in the air in the left well

hit Hicks going back turns. Watch this. It is to Homer by edone Oh Escobar into the city sheets in front of the great wall of pushing beyond the three fifty eight part. It's a two run harbor for Escobar. Cbs and Mets led the whole night from there they did the Yanks six to three. Taiwan Walker beat Jordan Motgomery, who labor. He got only seven ounce before departing four outside for Edwin Diaz is twenty second. The series concludes

tonight a Mingo Herman against the Mets David Peterson. Before the game, the Yankees but John Carlos Stanton on the injured Lift Achilles ten tonightus Braves beat the Phillies, the state two games behind the Mets. The Astros lost in Oakland. They're still two behind the Yanks for best record American lead. The Blue James beat the Cardinals. That's toronto seventh win in a row. Baltimore by Tampa Bay to move over five hundred of the Orioles are now ahead of the

Red Sox, who dropped to last place. NFL News with the opening of all thirty two training camps, Tampa Bay signed veteran white out Julio Jones, so he's back in the NFC South. A seven time pro bowler while with Atlanta, spent last season at Tennessee. Since the nati QB Joe Burrow had an appendeck to me he'll miss a couple of weeks. Seattle running back Chris Carson, a two time thousand yard rushier, forced to retire at age seven due

to the neck injury. John Stash, However, Bloomberg Sports Nathan Okay, John, thank you. SMP futures up thirty four points, South Futures up a hundred thirty seven Nasdaq futures the tech heavy side leading the games this morning with a hundred seventy six point increase. That is a game of one and a half percent. Dan, I've some white Bush securities, joins us next on the Tech story. This is Bloomberg Flom

eleven three oh other. Sunshine upper eighties today, more clouds than sun tomorrow, some scattered showers and storms possible with the high near ninety. A few more showers likely Friday,

with highs in the upper eighties. Right now seventy one in Central Park markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Out and at Bloomberg Victape, He's a Bloomberg Business flash and I'm Karen Moscow stocks and US stock index futures are rallying as a batch of resilient company earnings helped to alleviate some of the wider caution and markets ahead

of a pivotal Federal Reserve monetary policy decision. We check the markets every fifteen minutes throughout the trading day on Bloomberg Guess and P futures up thirty four points this morning, down futures up a hundred thirty four, Masday futures up one d seventy, and the decks in Germany's up about two tenths of a percent. Pen Your treasury of six thirty seconds yield two point seven eight percent. They yield

on the two year three point oh four percent. NIMEX screwed oil is up third of percent, up thirty three cents and nine twenty nine cents of barrel comex sculled up two tenths per cent or three dollars sixty cents at seventeen thirty nine thirty announce the euro one point one four two against the dollar British found one point two zero six nine and the end one thirty six point five seven. And looking at bitcoin, it's up when in a third percent at twenty one thousand, two hundred

seventy dollars, 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. The Justice Department is said to be looking into former President Trump's actions as part of its criminal investigation into the January sixth riot. According to a person familiar with the matter, prosecutors have been asking about conversations between Trump and his inner circle.

President Joe Biden plans to speak the Chinese president shi Jing Ping tomorrow. It's scheduled to take place of New Tensions as how Speaker Nancy Pelosi reportedly plans to visit Taiwan. In baseball, the Mats beat the Yankee six three, The Guardians beat the Red Sox eight three, The Orioles beat the Rays, the Nationals beat the Dodgers, The A's down

the Astros. The Giants lost to the Diamondbacks. Seven three 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 a hundred twenty countries. Michael Barren, this is Bloomberg. Nathan Okay, Michael, thank you. It is six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg and Daybreak. We

want to talk more about the latest tech earnings. Are watching shares of Microsoft in the pre markets still gaining up about three point six percent in the pre market after the software giant posted an outlook that suggests to can weather the worst of the economic slowdown. Let's bring in Dan Ives for more on this senior equity research annelist had Wedbush Securities. Dan, It's always great to speak with you, and it looks like we're seeing kind of

a sigh of relief across the tech sector. Isn't warranted after Microsoft's results, Well, it's warranted because Cloud, I mean, that's a pillar of enterprise spend and the best bambers Microsoft Street was on Pindy Needles going into this much better than expected. I mean it really not seeing any

sort of push outs in terms of cloud growth. Gave strong guidance and I think it's a rocket Gibraltar stock and what's been a dark economic storm, but this is important for what cloud and enterprise spending streets gonna really view this as a baramter going forward. There is still a lot of competition in the cloud though, isn't there?

Does Microsoft have market share advantage in the cloud? Yeah? Well, Microsoft, along with Amazon A WUS, they continue to dominate cloud and of course Google being number three, and it's really dominated by those three players. But Microsoft, look, they're just in a man supposition of strength because this is their backyard and I think the important data pointeers companies. Even in a macro like this, they're accelerating the digital transformation

that's front and center. Is a positive from Microsoft to Talent and obviously the jittery macro. This is what the street needed, especially given what we've seen over the last few weeks. This says something about the macro environment, though, doesn't it. When we see Microsoft and its outlook saying that it's going to be leaning more on the cloud side, the commercial spend side as opposed to the consumer side and PC software. What does that say about the direction

of Microsoft going forward? You know, I think it shows a biofrocated tech market. You're going to continue see softness, consumer driven PC obviously supply chain issues coming out of China. Both the street cares about front center form. Microsoft is the cloud business and that's that's what I've used the core DNA of the growth thesis, and that's what we

saw last night. I also think when you're looking into the overall macro, the street, the world is watching when Microsoft gets gotten and I think this is no longer of course alphabet and that's the one to punch that the tech bowls needed and what's been a white knuckle environment. Yeah.

It was also interesting as well to hear the CEO Satanadella talking about how the strong dollar has been a headwind for Microsoft this quarter and despite that, thinking that it's only going to need to cut sales by about four percent for the year on continued dollar strength. What do you make of that? Yeah, and the dollar strength, especially for the multinationals, that's gonna be a headwin. We'll see that from Apple tomorrow. As well. But but but

really that was a well known headwind. I think you really streets trying to understand what cored demand looks like. And if you think about many you know that that have really talked about the nervousness that we're seeing across the macro enterprises, given balance sheets, given the digital transformation,

it's pretty positive. And I think we'll see other data points from Amazon on the w S side as well, and that's important because that just shows you're gonna have a fork in the road in terms attack and that's really what you're seeing play out Microsoft. You know, it's really out call alms Gidens heard around the world. And speaking of the demand story in our last minute here, I want to ask you a little bit about Alphabet's results as well. Coming in stronger than expected on the

ads side. Does that ease some of the concerns for you that we got after the less than exciting results from snap and Twitter on ad spend. Yeah, and Snapchat that was a nightmare in Elm Street Quarter and that continues to be a disaster, and I think there were fears that that was going to spread be being a you with Facebook and of course with Google you'll get ad hours better than feared, actually pretty strong in terms

of where they came in. It shows you'll see some swelling, but especially with YouTube from the Golden Assets that's holding up there than feared. You combine now with what we're seeing with Microsoft, you're now starting to have second sort of teak in terms of neb Things are not falling off a cliff like some of the you know, heck bears have kind of talked about, and I think this is an important print, you know, in terms of a broader tech sector. Always great having you on, Dan, Thanks

for coming back on with us. Dan Ives, senior analysts for equity research at Wedbush Securities. Again looking at shares of Microsoft in the pre market, they're moving by higher by nearly four percent now after those stronger than expected outlooks from the software Giant and cloud player with the Azure Cloud service. Looking ahead to the market open more broadly, SMP futures are higher by thirty two points, South futures up a hundred twenty three and NASCAC futures leading the games.

Uh Tech leading the way this morning, up a hundred sixty nine points for a gain of one point four percent. Ten your treasury is up four thirty seconds, the yield two point seven nine percent ahead of the Fed overserves July policy decision. This is Bloomberg Bloomberg eleven three oh weather, sunshine and highs near ninety today, tomorrow and the next day. You could see some scattered showers and storms in the week. Right now, it's seventy one degrees in SEPO. Broadcasting live

from the Bloomberg Interacted Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C. Bloomberg on to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country Sirius XM Chado one nine team, and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak and at six thirty on Wall Street. Good morning, I'm Nathan Hager and I'm Kared Moscow. We are just about three hours away

from the open of US trading. It's time for the five things that you need to know to start your day. Brachy you by Interactive Brokers, Interactive Brokers, Simple IBK, our Global Trader RAPP. Deposit in your local currency, and trade stocks in the US, Europe and Asia. Start your free trial at ibyk r dot com Slash Global Trader. First, the f O m C meets in Washington, where the Federal Reserve is expected to issue a seventy five basis

point rate high today. Every Core I s I Chief equity strategist Julian Emmanuel said the FED risky anchoring inflation if it raises rates today and then cuts them in the future. Part of the dynamic in markets is that we've all have lovean trained to expect stocks to rally. When the FED cuts rates. To the extent that we take that away, you're actually doing a service. Never, of course, Julian Emmanuel said, the FED should tame inflation while keeping

the market fundamentally sound. Tune into a special edition of Bloomberg Surveillance today for complete coverage of the FEDS starting at one thirty Wall Street Time. Right back to Markets, Karen, Futures are moving higher after earnings from Microsoft and Alphabet. Today we hear from Meta, the parent of Facebook, Instagram, and WhatsApp. Bloombergs Jeff Blinger has a preview. The bar for Meta platforms is set low. The social media giant recently slowed the pace of hiring, and there are some

general concerns about the era of social media dominance. Meta is dealing with a number of headwinds, not the least of which is the privacy change by Apple that complicates ad targeting at a time when the risk of recession could weigh on e commerce spending. Jeff Bellinger, Bloomberg Daybreak. All right, Jeff, thank you. We told you yesterday about an SEC investigation centered on coin Base. Now we're learning a big name investor is cutting Baida. Bloomberg's Needy Young

joint US Live with more. Good morning, Nada, Good morning, Karen, Cathy Woods. ARC Investment Management dumps coin based shares for the first time this year. Arcs daily trading data compiled by Bloomberg show three of the funds sell just over one point four one million shares, valued at about seventy five million dollars as of yesterday's close, and of that, the firm's flagship Our Innovation e t F sells one

point one two million shares of coin base. Bloomberg sources say coin bases facing a US probe into whether it improperly led Americans trade digital assets that should have been registered as securities. Coin based shares lost about a fifth of their value. Tuesday Live in New York. I'm really need a young Bloomberg day break. All we need to thanks in a quick politics note of federal grand Juries looking into efforts by former President Trump to create false

selectors to overturn the election. And that's the five things you need to notice start your day. Brought to you by Interactive Brokers. This is Bloomberg at sixty three on Wall Street where seventy one degrees in Central Park, dealing with a crash on the belt Parkway East found approaching Flatbush Avenue. More coming up in traffic. First Michael Barr with more on what's going on in New York and

around the world. Good morning, Michael, Good morning Nathan. New York Mayor Eric Adams has the team shown in the video punching police at a Harlem subway stop was arrested for robbery as well, but was released just days before. Adams says the era of catch, release, repeat for criminals has to stop. Robberies a violent crime. So as soon as we catch them, the system releases them and they repeat the action. That is just you know, that's when I say we to laugh the stock of the country.

This is what I'm talking about. Earlier this week, nmyp D trans achieved. Jason Wilcox says that assaults on his officers have skyrocketed over a fifty percent increase this year Governor Phil Murphy's administration as New Jersey ends to use less water amid a heat spell and scarce statewide rainfall. Some parts of New Jersey, including the state's most populous city, Newark, had recorded five straight days of temperatures one hundred degrees

or higher through Sunday. Infull Wars host Alex Jones, who claimed that the massacre at Sandy Hook Elementary School in Newtown, Connecticut was a hoax, was at a Texas courthouse to defend his zact and a one fifty million dollar lawsuit by the parents of one of the children killed. Jones spoke about the court, this is a which hunt, This is a show trial. This will go down in history as the greatest show fralls ever to happen, not just here,

but even in the places psychotic charman. Jones now acknowledges the Sandy Hook massacre that left twenty children and six adults dead really happened, but he insists he's not responsible for the harassment that Sandy Hook parents say they endured by his followers as a result of his hoax conspiracy claims that he pushed on his program. Ukrainian troops have struck a strategic bridge essential for Moscow to supply its

forces occupying the country's south. Officials said the bridge remained standing, but its surface was pierced with holes, forcing a halt to traffic. With summer travel underway, the CDC is recommending more hand washing and using hand sanitizer. Is monkeypox cases rise Reported cases in the US jumped in nearly thirty

three in the last four days. Your Dreams Are Still Alive Tuesday, July twenty six and tonight's Mega Millions jack plot has an estimated a new tize eight hundred and thirty million dollars giant Mega Millions lottery jack pot balloon to over a billion dollars now after no one last night matched all six numbers and won the top prize.

The next drawing is Friday Global News twenty four hours a day on air and on Bloomberg Quick Take Power by board of the twenty seven hundred journalists analysts more than a hundred twenty countries. Michael bar this is Bloomberg. Nathan see in line, Michael, thank you. Six thirty six on Wall Street Temper for the Bloomberg Sports Update with John Stash. All Right, Nathan and met sixty win of the year. They beat the Yankee six to three to

start the Subway series and study Field City Field. Good start for the Yankees, back to back home run's first inning Aaron Judge then Anthony Rizzo consecutive pitches both hit the opposite way thirty eighth of the year for Judge, but the Mats with two homers their own in the bottom of the first Darling Mark Day then Eduardo Escobar Taiwan Walker settled down, worked out of a bass load

of jam and the fourth Walker got the win. Was then asked about pitching before a loud sellout crowds electric Um, my game with two home runs and I was like, man, um, it's not off. Took the start here, but you know, we answered back. Dophins was really good to answered back with four runs in the first and Um, after that, my job was just good shut down endings and I was able to do that. When he has got to

save Jordan Montgomery took the loss. He was not happy when Aaron Brune took him out with just one out in the third an another sellout crowd. Tonight the series ends. It's Domingo Herman versus David Peterson. The Yanks gonna be without John Carlos Stanton for a couple of weeks. Achilles ten Denitis Braves beat the Phillies Atlantis to two games by the Mets. Astro is still two back of the Yankees for best record of American League is Houston lost

the second straight in Oakland. Toronto's seventh win in a row beat St. Louis. The Cardinals were without their two best hitters, Paul Goldsmith and Nolan Aaron Outo. They're not allowed into Toronto they're both unvaccinated. Baltimore beat Tampa Bay moved over five hundred moved ahead of the Red Sox, who are now in the last place. Jets training camp underway and good news on a key player, tackle Mackay. Jenny came in having noticeably lost the considerable amount of

weight back then injured almost all of last season. It was said to be out of shape during the off season. John Bloomberg Sports, Right, John, thank you, six thirty seven on Wall Street, Time to take a look at stuck, some of the names moving in the pre market with Bloomberg Radio and TV Markets correspondent Creating Gupta on a morning where tech is leading the way? Is Microsoft? What a sigh of relief looks like? Creat It kind of seems like it. And I'm selling alphabet Is as well

with some of the Microsoft shares. So they're up three point eight percent M S F T is your ticker, Google or Alphabet shares are up as well to tune about three point four percent. G O O G s your ticker. There. You know, Nathan went so crucial here, they think going into these earnings there was kind of this doom and gloom approach to it, almost that if you know, if big Tech doesn't hold up, then what chance do any of these other companies in the SMP

five hundred have. But not only did they hold up, they said, well, you know what we are resilience. I think that's crucial here. A lot of the ads slowdown that we saw in Snapchat and Twitter, well when it to Alphabet, it did still hit them, hit them in their YouTube business. Their ad business there, but it didn't hit them in their search business. And I remember, this is why it makes Alphabet so unique. They are a little bit more diversified when it comes to that kind

of ad revenue business. Remember, Alphabet also has a kind of budding business and cloud something that Amazon really dominates. Microsoft is number two there, but Alphabet is growing on that front as well. From the Microsoft side, they actually said that business investment is actually booming. So remember we're in the middle of this massive cloud revolution. A big chunk of Microsoft's bottom line comes from their cloud business Asia.

So when you're saying that a lot of businesses who, by the way, have now adapted to remote work, for example, are now shifting to the cloud, they're likely using either Amazon Web Services or Asia, and Microsoft is is saying, well, that's actually a really good thing. So both uh companies actually coming in and beating some of those estimates, which is good news at a time when everyone is saying

recession is on the horizon. Things aren't looking good. Yeah, And speaking of resilient creaty, is that what we can say about McDonald's after their you know, we should write and theory you would you would think that they would come out and and actually have a better morning than

they are. But McDonald's is interesting because, yes, they came out with some strong earnings as well yesterday, but Deutsche Bank actually came out and downgraded it to a hold from A by m c D s R takers down about two tenths percent, But keep an eye on this. Their argument over at Deutsche Bank is that inflationary pressures will limit any further upside. So, yes, that was a

good set of earnings. Is it going to stay there is the question, especially because McDonald's does kind of target a lower end consumer and they're the most um afflicted by inflation just just given um kind of the wealth demographic there. So that's certainly something to watch. The currency story though for McDonald's was actually interesting that even if you did take in some of the currency conversions, remember over six the revenue comes from abroad abroad, they actually

still did pretty well. Nathan all Right, bloom Bergradio on TV Markets correspondent, Creedy group. That keeping us on top of the pre market story, and as we checked stocks as a whole ahead of the open and ahead of a FED decision, futures are moving higher. SMP futures up thirty four points, Staff Features up hundred thirty five. Nastack Future is on the rise by a hundred seventy five points. Tenure Treasury is up four thirty seconds now for a

yield two point seven nine percent. You're listening to bloombird Day right Bloomberg eleven three oh weather. Sunshine and a high in the upper eighties today will get in your ninety tomorrow with some scattered showers and storms possible. We'll keep the storm thread in the forecast Friday as well, with highs in the upper eighties once again. Seventy one currently 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 camerin Moscow. Futures on the rise this morning. We got to the first word breaking news dash for today's morning call, and here's Bill below need Bill, Good morning and good morning Karen. That's right. US futures are in the green, helped by earnings from Microsoft and Google. Deal

Futures currently up a hundred and thirty three points. Sides game thirty five, while Nastic futures are up by one eight The US ten year a two point seven nine percent, Gold is up five, Oil is in the green, and bitcoin is trading higher by one and a half percent. Hong Hong fell one point one percent overnight, while Europan markets are in the green this morning and back in the US. On the economic Fronday, Dirty durable goods orders at ten o'clock, penning home sales, and at two o'clock

the f O MC rate decision. After develops night, Microsoft gave an up each three sales growth forecast and Google report it is trading higher by three and a half percent pre market. Regarding some of the earnings this morning, Humanity epspeed estimates and looked for Boeing to report in

the pre market. In another news, elliott Is said to amass a PayPal steak and wrapping things up, McDonald's was cut to hold over at deutsch Your bank live from the first breaking news Descomb, Bill Maloney, Karen, all right, thank you and here lie breaking news of your Bloomberg type squawk on your terminal, that's s q U a w K and taking a look at currencies this morning.

The euro at one five one against the dollar, British pound one point to zero six one, the yen at one thirties six points seven one, and we're watching bitcoin is always up one and a half percent at twenty one thousand, three hundred dollars. That's a Bloomberg business flash. Now here's Michael Barrow with Moore on what's going on

around the world. Michael, Karen, thank you very much. The Justice Department is said to be investigating efforts by former President Donald Trump and his inner circle to create false electors and fresh your former Vice president Mike Pence to overturn the election. According to a person familiar with the matter, Pence's former chief of staff Mark Short and Greg Jacob pences then chief counsel, appeared before grand jury in recent days. W NBA star Britney Grinder will testify today and her

drug trial in Russia. She could get ten years in pre is an if convicted. So you're saying I still have a chance. The Giant Mega Millions lottery jack pot balloon to over a billion dollars after no One last night matched all six numbers and won the top prize. The next drawing is Friday. In baseball, the Mets be the Yankee six three. The Guardians beat the Red Sox, the Orioles beat the Rays, The Nationals beat the Dodgers. The A's down the Astros. The Giants lost to the

Diamond Box. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than und journalists analysts more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Carry all right, Michael, thank you. At A sixty nine on Wall Street, we turned to news and science and technology Now. But 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 and j I T DOT E d U slash data science now. Here's just making news in science, technology, engineering and math. In Asia, a district on the outskirts at Wuhan has been locked down, affecting around one million people. It is the first time the Chinese city, which saw the world's first lockdown, has faced new restrictions for two years. Authorities gave the order after four asymptomatic cases were found

in the area. Their razors shows napping, as well as sleeping too much or too little, or having poor sleep patterns, appears to increase the risk for cardiovascular disease and older adults. The study, published in the Journal of the American Heart Association, adds to a growing body of evidence supporting sleep's importance to good health. The American Heart Association recently added sleep duration to its checklist of health and lifestyle factors for

cardiovascular to health, known as Life's Essential eight. It says adults should average seven to nine hours of sleep at night. And the space jacket worn by buzz All Drin while flying to the Moon is reported to have sold it auction for two point eight million dollars. Aldrin were the white jacket for the majority of the six Days Space Journey in nineteen sixty nine. It becomes the most valuable

American space artifact ever sold at auction. That's a Bloomberg and j I d S Stem Report, Nathan and Secoman jacket. Thank you, Karen. We are live from the Bloomberg Interactive Brokers studios where it is now six fifty one on Wall Street and it's 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 now part of the Justice Department investigation into efforts to overturn the election.

President Biden said to speak tomorrow with China Chi Jin Ping, and Schumer telling donors a tech antitrust measure is unlikely to pass. Let's bring back Terry Haynes, wh run all these stories, the founder of Panjia Policy. Terry, great to speak with you again. So how much importance do you put on these reports that the Justice Department now potentially has former President Donald Trump in its sites. Good morning, Nathan, Uh.

I would caution folks that too, against over reaction. I think it was very little new here, and uh, you know, and I think it's easy to to sort of slide back in the kind of Mueller era, uh, thinking there's more going on here than than there really is. It's entirely responsible for the Justice Department to be investigating this stuff, of course, but at the same time, staying in a year and a half to get to it. Um, And you know, I wonder how much is here at roots,

So you know, there there's watching. But I think in the end, uh, it's just another part of this investigation that's been going on for quite some time, and uh, you know, judging by past reactions, is unlikely to yield something clean or large. But again we'll see what they have. Of course, this is coming is to the former president is hinting that he may run for president again in is there an excess there? Well, yeah, it's been There

is a political nexus there, certainly. I mean my my own view of this is that the Democrats have both in Congress and the Justice Department have slow walked this thing for quite a while. Uh. You know, it took Congress less time to come to conclusions on how Pearl

Harbor happened. Then it's uh, it's taken folks to figure out what's gone on after January six, and uh, you know they and you know, I think the country at large would be a lot better off if this had been speeded up, Uh, that the investigation had been made as bipartisan as possible, and if if the Justice Department

actually have delved into this much more in real time. Uh. Politically, Uh, Democrats, I think forfeit the opportunity to bring consensus around a lot of these issues, so it has the potential to backfire on them in the mid terms. Do you think this investigation gets wrapped up either by the Justice Department or by the January six Committee before the mid terms. Oh, I think the January six that he would like to put a bow on whatever it is that they're doing

before the mid terms. But they might not. I mean, things may may continue on. They they have a pattern of saying, you know, more to come, more to come, more to come. But at the same time, uh, you know, Congress ends at the you know, effectively at the end

of the calendar years, so they better they better wrap up. Uh. Justice you know now that they're working with a grand jury frankly that you know that'll take some time and uh uh you know, they can continue to present evidence before grand jury, but there's not going to be an arbitrary end of that grand jury, so you know, I tend to think that might take much longer. That's been the pattern with Justice departments past and present, and that's

likely to continue. And we're expecting President Biden to get that long awaited phone call between him and Chinese President Shi jin Ping coming up tomorrow. Now, this is coming in a particularly tense time in US China relations. What are you watching for their terry? I'm watching beyond the whole kerfuffle of that Pelosi. I'm watching really two things. One is uh just uh just how the Chinese read

out that proceeds. In other words, you know, the Chinese and the Americans both have their own readouts of these things, and and there's frequently uh holes between them that are that provides some some illumination. And the Chinese readout, of course, will be one thing, and that will be kind of resolute on Taiwan and the one China solution and all the rest. I look, I'm the more interesting part of this to me is to see how the American side

clarifies its its own Taiwan policy. Firstly because there that's been kind of raggedly rolled out, um and there's a little bit of context around the potential Pelosi visit there as well. But also for markets, you know, I wouldn't look for too much or really anything substantial on tariffs. The White House continues to say that the president's making up his mind all though they've been talking about this for a year and a half, and any adjustments are

not going to be particularly large. Do not look for any particular breakthrough here. What's your expectation on where the President could go on tariffs, given that we aren't expecting much to be discussed there on that front, and we got about a minute left here. Yeah, I just you know, they they'll talk about some adjustments. They've been talking about

adjustments for quite a while. But you know, this is bureaucratic tinkering on on one level, and on the other level, it's a it's a fight inside the administration about whether massively overhauling tariff policy makes any difference either to the broader United States China relationship or whether it makes any

difference to markets. There's a faction that wants to talk about UH tariff adjustments as part of an inflationary response, but the other half says, look, I mean they're they're only small to begin with, and it's not going to make any immediate impact upon UH upon average citizens. So I even bother. Thanks Terry, thanks again for being with us.

Terry Haynes is the founder of Pangaea Policy. You can read more about all these stories out of the nation's capital on Bloomberg dot com or on the Bloomberg terminal. Follow all the latest on Bloomberg Radio in Washington. Bloomberg and one oh five point seven fm h D two, and of course, the other big event coming out of Washington this afternoon, a July policy decision from the Federal Reserve.

We have special coverage coming up in a special edition of Bloomberg Surveillance that begins at one thirty this afternoon Wall Street Time, ahead of the Fed decision at two PM. Bloomberg Surveillance the Morning Edition begins next with Tom Kane, John Pharaoh, and Lisa Brahmo. It's for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg