Bloomberg Daybreak: July 28, 2022 - Hour 2 (Radio)

a tax and energy policy. Bell there's an offer on the table to get w w n B, a star Britney Griner back from Russia, plus a new groundbreaking to bring the portable housing to New York City. I'm Michael barr more ahead, I'm time statue in sports, the Mets with a walk off, when to swape the Subway series.

The Yankees have acquired a new outfield That's all Stradyhead on Bloomberg Daybreak on Bloomberg eleven, Free 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 app. Good morning, I'm Nathan Hagar and I'm Karen Moscow, and US DOT Index futures are

lower this morning. We are coming up for six o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg, I guess and P futures down twelve points down, futures down forty five and nowasday futures down on the decks in Germany is litill. Change in the ten year treasury up three thirty seconds, yield two point seven seven percent, and the yield on the two year two point nine seven percent.

Nathan Karen. The drop in futures comes after the biggest one day gain for tech stocks since November twenty twenty. The Nasdacks surged four point three percent yesterday following resilient earnings and the fed's press conference. Randy Watts, chief investment strategist at O'Neil Global Advisor, says, there's light at the end of the tunnel, so I think the minute the stock market can identify or see, we don't have to be there, but can see the end of the Fed

titan cycle. I think stocks are headed up a lot higher. Randy wattson O'Neil Global Advisor's notes the SMP five hundreds on course for its biggest monthly gain since October of last year. Well Nathan reaction is still pouring in this

morning to yesterday's FED decision. Share J Powell says moderate hikes are coming, but the pace will slow at some point as the stance of monetary policy titans further, it likely will become appropriate to slow the pace of increases while we assess how our cumulative policy adjustments are affecting the economy and inflation. At the same time, J. Powell and the FED are losing credibility. That's according to Scott Minor,

the chief investment officer at Guggenheim. After this this run up we're getting in the in the stock market, in the bond market right now, that that by next week we're going to be sitting around and questioning, um, you know, and gee, you know, are they really being incredible? Cooggenheim. Scott Minor had said the economy may already be in a recession. Bloomberg Opinion columnist Muhammadhalarian says there's no good

outcome in the FED waging inflation against slowing growth. It's the FED that needs to we anchor itself, but the weed economy is again running ahead of it. And both Muhammadalarian and Scott Miner made the comments on a special edition of Bloomberg Surveillance heard right here on Bloomberg Radio and Bloomberg Television. Well, next turn, we get a key reading on the US economy. Second quarter GDP comes out at eight thirty am. Wall Street Time economists expect annualized

growth of a half percent. On the surface, that would be an improvement after a one point six percent drop in the first quarter. And we turn to earning. Now, Nathan, where tech is front end center? Shar's a Meta Platforms down five percent, the parent of Facebook and Instagram reporting its first ever quarterly sales decline. And here's CEO Mark Zuckerberg. We seem to have entered an economic downturn that will

have a broad impact on the digital advertising business. It's always hard to predict how deep or how long these cycles will be, but I'd say that the situation seems worse than it did a quarter ago. The week resils from Zuckerberg's Meta Platforms is weighing on sentiment this morning after revenue forecast fell short of estimates. Well, next, can we into the busiest day of this earning season, highlighted by reports from Apple and Amazon. Bloomberg's Jeff Bealllinger has

the details. Apple's quarterly profit may have declined. If it did, it would be the first drop in almost two years. Investors will be especially interested in hearing about iPhone sales, since the device typically accounts for half of Apple's revenue. Bloomberg Intelligence says we may hear that Amazon dot COM's online revenue, games and profit slowed, but there is strong potential for continued growth and cloud services, streaming and advertising.

Walmart issued a profit warning this week, but Amazon is not. Walmart b I says its customer base is more affluent. Jeff Bellinger, Bloomberg day Break, Right, Jeff, thank you and the m and A. From this morning, we're learning that Jet Blue is close to an agreement to buy Spirit Airlines, and Bloomberg's Ready Young is here alive with more Good Morning, Ready to Good Morning, Karen. Bloomberg. Sources say Jet Blues deal to buy Spirit could come as soon as today.

The airline swooped in just hours after Spirit ended a pending merger with Frontier Lines that deal fell apart on a lack of shareholder support. A Spirit acquisition would be Jet blues best shot to broaden its network quickly. It will also inject an infusion of pilots and aircraft orders, both of which are expected to be in short supply for several years. Live in New York, I'm Nita Young

Bloomberg Daybreak, Rida thank you. Geo. Politics is also on the front burner this morning, and we're learning more about the agenda for today's call between Presidents Biden and Hijin Ping of China, and Amy Morris has details from our Bloomberg newsroom in Washington. The two world leaders will discuss Trump era tariffs, Russia's invasion of Ukraine, a price cap

on Russian oil, climate change, and economic competition. National Security Council Communications strategy Coordinator John Kirby says he expects the President will also bring up China's increasingly aggressive actions in the South China Sea. I would fully expect that part of the President's conversation um tensions in the South China Cey World will come up. Today's call comes as tensions are rising over a possible visit to Taiwan by House

Speaker Nancy Pelosi in Washington. I'm Amy Morris, Bloomberg Daybreak right, Amy, thank you meantime on Capitol Hill, and Energy and Tax bill may have just come back to life in the sun, as Senators Joe Mansion and Chuck Schumer have reached a deal on a seven hundred thirty nine billion dollar package that includes a fifteen percent corporate minimum tax, three hundred billion dollars in deficit reductions, and three hundred sixty nine

billion for energy and climate change. Bloomberg Politics contributor Genie she and Zano says it's a win for Democrats. It's a big victory for what I call the Purple Dems. Those Democrats who have to go to these moderate districts with the president with approval ratings in the thirties, have

been looking for something to take home. I don't think they ever suspected they would get both chips and reconciliation and Bloomberg contributor Gene she She and Zano spoke with our Washington corresponded Joe Matthew on Bloomberg Sound on Fetch The show weekdays at five pm Eastern on Bloomberg Radio and Bloomberg Daybreak is brought to you by B and Y Mellen's Pershing Learned Why the world's most sophisticated wealth management and institutional firms rely on Pershing to help them

improve profitability, create efficiency, attract talent, and manage risk At pershing dot Com. Futures moving lower On this Thursday morning. Straight ahead, we'll have your latest local headlines and a check of sports. This is Bloomberg and it sounds six oh seven on Wall Street. Where's seventy four degrees in Central Park? Got an accident memaron X southbound New England through Way eggs at eighteen B. Details coming up in traffic. First Michael Barr with what else is going on in

New York and around the world. Good morning, Michael, Good morning, Nathan. Secretary of State Anthony Lincoln says the US has made an offer for the release of w n B, A star Britney grinder and former US Marine Paul Wheeland from prison in Russia. B Lincoln said he plans to put the US proposal before Russian officials, and he plans to

bring up grain shipments from Ukraine. I plan to raise an issue that's a top priority for US, the release of Americans Paul Owen and Brittany Griner who've been wrongfully detained and must be allowed to come home. Secretary Blankolin says he plans to speak with Russian Foreign Ministers Sergei Lavrov in the coming days. A person familiar with the offers said the US would swap them for imprisoned Russian arms dealer Victor Bood. However, Russia says no agreement has

been announced yet. Vice President Kamala Harris will be in New York today. She will be in Brooklyn to meet with community leaders. They will discuss the Biden Administration's investment in underserved communities, financial institutions, and small businesses. Governor Caffey Hokel and New York City Mayor Eric Adams announced the groundbreaking on an affordable housing development in the Morris Heights

section of the Bronx. HOCl says the one nine million dollar development will feature three hundred twenty six affordable apartments, including two hundred homes with supportive services for individuals experiencing homelessness. Right now, Bronx households are rent Burton. What does that mean? They spend more than their income on rent? Well, just earlier this week. I was talking about how people are spending income on childcare. So add that up. You're still

on trying to pay for rent. You got a couple of kids. We need childcare because you need to have a job to pay for this. It doesn't add up. Governor Huck went on to say the development will provide safe, stable homes for more than three hundred residents of the Bronx and offer critical resources and amenities to support the neighborhood in the long term. North Korean leader Kim John UoN unleashed fiery rhetoric yesterday as they celebrated the sixty

nine anniversary of the Korean War armistice. Kim warned that he's ready to use his nuclear weapons in potential military conflicts with the US and South Korea. Global News twenty four hours a day on the air and on Bloomberg Quicktake, powered by more than journalists and analysts more than a hundred twenty countries. Michael barn this is Bloomberg, Nathan. Thanks Michael six o nine on Wall Street. Time for the Bloomberg Sports Update. Here's John all right, Nathan bragging rights

to the Mets. They got an early home run from Peter Alonso was twenties things they got brilliant pictured from Max Scherzer on his thirty eight birthday. Through seven scoreless instruct out Aaron Judge three times. Yankees did tie the game on a Glabor Torres two run homer eighth inning, but in the bottom of the ninth, Marte, we're all the deals slinging the line in the left face, put up a box, test the bar. He stores the one in run. Martey slams has helmet down at first swept

the Yankees. They have defeated the three to two. The Mets poor out of the tongue out. They are bobbing Starling Marte of the light up second thing you see Calso. Two new Mets playing in their first Subway series, combined to win it. In the ninth, the Martte hit after a leadoff double by Edward o Escobar. Braves lost. The Mets are three games ahead. They're off tonight. The Yankees tonight host Kansas City, which means the yanks new outfielder

will face the team that just traded him. A long rumor deal took place that Banks acquire All star Andrew Bennintendee, who was hit in three twenty for the Royals, who would get back three Mono league pictures. This presumably ends talk of the Yanks getting Juan Soto, but they are believed to still be looking at a starting pitcher. Two names mentioned often Cincinnati's Luis Castillo, Oakland's Frankie Montas the trade deadline next Tuesday, another big name golfer bolts the

p g A for the new Live Tour. It's Bubba Watson. He's a two time Master's champion to lift tour starts a tournament tomorrow at Trump National Embedminster, New Jersey. Atlanta Falcons made an official they lost Matt Ryan. Now their new starting quarterback will be the recently acquired Marcus Mariota. John Stashar Bloomberg Sports Nathan Okay, John, thank you. SMP futures down down thirteen point, Staff futures down forty, NASAC futures down ninety three points. The tenure treasury is little

changed right now. That yield two point yield on the two year two point nine seven percent. Just to head more on the FEDS policy decision from guy who was in the room with FED chair j Pal. Bloomberg's Michael McKee joins US next this is Bloomberg Bloomberg eleven three oh weather. Some passing showers and storms today with a

higher ninety degrees. We have some more afternoon showers and storms send the week highs back near ninety mix of sun and cloud Saturday opper eighties right now seventy four in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com and Bloomberg Business at and at Bloomberg Quick Take. This is a Bloomberg

Business flash and I'm Karen Moscow. I dip in u S Stock Index future, suggesting the US rally could stall with technology stocks set to pull back after their biggest jumps in November, with big tech to be in our particular focus today with results from Amazon dot Com, Apple, and Intel. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP futures down thirteen points this morning, down features down fifty seven. Now's deck features

down ninety three. The decks in Germany's down three tents

of upper cent. The ten year treasury that'll change yield two point seven eight percent, yield on the two year two point nine seven percent, nine x screwed oil is at one point nine percent of a dollar eighties seven and ninety nine dollars, thirteen cents of barrel comex sculled up one point two percent, or twenty dollars sixty cents at seventeen fifty eight ten announced the euro one point one six one against the dollar, British pound one point two one to eight, and the en mon thirty five

point five zero, and bitcoin is up seven tenths percent. Is at nine hundred forty dollars and Jack mob planning to seed control of a group that according to Dowd Jones, who cited people familiar with the matter, that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, thank you very much, Karen. A possible prisoner swap with Russia could bring w n B, a star Britney grinder, and former US Marine Paul Wheeland

back to the US. A person familiar with the offers said it would swap them for imprisoned Russian arms dealer Victor Boot. However, Russia says there was no agreement yet. Senator Joe Manchin and Majority Leader Chuck Schumer have struck a deal on attacks Energy and Climate bill. Excuse me, It breaks a deadlock on the Democrats and long sought legislation to enact major parts at President Biden's agenda. In baseball, the Mets beat the Yankees, the Guardians beat the Red Sox.

The Nationals and Orioles also lost. The A's beat the Astros, the Diamondbacks beat the Giants. Global News twenty four hours a day on air and on Bloomberg Quickdig, powered by more than twenty seven hundred journalists and antalists more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan Alright, Michael, thank you to six nineteen on Wall

Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and Bloomberg Economics correspondent Michael McKee is back in the Interactive Broker's studio this morning after quick trip down to Washington, d C. To watch the Federal Reserve raise interest rates five seventy five basis points. Again, Michael, good morning. So we got the rate increase that the

market was expecting. What did you make of the messaging on where rates may or may not go from here, Mike, Well, I think the way I put it yesterday is is the FED knows where it's going, it just doesn't know where it is. At this point, we don't have enough data to know if the FED has really put us on a sustainable path of lower inflation or if the FED has started us on a path to a recession. The problem is data or backward looking, and we don't have enough of it yet to really get the measure

of the FEDS rate increases. But they know they want to get a little bit above neutral right now. When the FED funds future start trading today, they should be trading just at the bottom end of the FEDS neutral line. So they are going to raise rates above that. It's about two and a half to three percent, Nathan, and they're going to raise rates above it. But how quickly they do that and how far above it they go

will depend on getting more data. Yeah, it's interesting that you term it as the FED not necessarily knowing where it is right now, particularly when we heard from the Chairman yesterday pretty much saying that they're going to get even more data dependent. That's a big risk, isn't it. When the data are back, we're looking and it makes them that much more difficult to tell whether policy is having the intended effect of bringing inflation back to back

to bear. Yeah, you have to get the various measures of the economy and try to interpret for from those

where the economy might be going. Today, we'll get the GDP numbers, and the Fed will be looking at not the headline so much as they'll be looking at consumer spending and business investment and then taking apart the various parts of consumer spending and business investment to see what's growing and what's not, and what might have been affected by interest rates and what just kind of kept on going. So they'll be doing that, and they'll look at the

employment costs into which comes out tomorrow. Uh. It's sort of the best measure and detail of incomes, and they'll try to figure out who's making money and how they're making it. Is that the wage people is at the salary people, uh, is at the folks on Wall Street who you get paid uh uh fees and bonuses. So uh. A lot of of scientific work on data is going to be ahead for the feed. Yeah, and a lot to go before the next decision coming up. And what

just about two months from now. I mean, that's gonna be a lot of data that the FED is going to have to digest from now until then. Give us an idea of where we could see the messaging going from here, given all the uncertainties that are just down the pike. Well after this week, the next big data point is a week from tomorrow when we get the

July Jobs report. The FED has made a big deal out of how low unemployment is and that growth in jobs has been steady, and so if that slows all or if unemployment goes up at all them, that will raise growth fears on Wall Street. If it doesn't, then that could embolden the FED to raise rates at a faster pace to a higher level. Then we'll get on August tenth the CPI report for July, and obviously that will be very big as it was the last time.

But before the FED meeting we get two CPI reports, two jobs reports, and the PC Inflation Indicator, which is the Fed's favorite. So, uh, they have a lot of data to look at. And you know, why take a stand on what you're gonna do right now when you might have to change your mind later in our last minute here, Mike, for those who missed the news conference. What did you ask the chairman and did you like the answer? I sort of asked him about this knowing

where you are thing? You know, where does the FED think it is? And where does the FED think uh, it's it's policies have had an effect, And he didn't get a specific answer. But that's where I took the idea that they don't quite know where they are yet from UH. There wasn't a lot in this news coverage that was new. UH. They left out the idea of forward guidance. But beyond that, everything happened as expected. So not a lot of surprises this time. We just have

to keep an eye on the data going forward. You have to tune into Bloomberg Radio on a regular basis to that information. Get the plug in. Thank you, Mike, always great having you on. Michael McKee are economics correspondent here on Bloomberg Radio, where we'll be parsing the data high frequency UH from now until the next meeting in late September. Right now, futures moving lower. We got SMP futures down about eleven points right now, DAL future is down,

NAZAC futures are lower by eighty nine points ten. Your treasury is up one thirty second now the yield two point seven seven, almost two point seven eight percent on the ten year note, yield on the two year right now two point nine seven. And you are listening to bloom Burke day Break. Good, good morning, Bloomberg eleven three oh weather mix of sun and clouds and passing showers and storms upper eighties today, tomorrow and the next day.

Actually when we'll see some more afternoon showers and storms tomorrow most likely right now seventy four in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg e living free on to Washington, d C, Bloomberg nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg sixty to the country, Sirius XM h at A one ninet and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak.

It's six thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow, and we are just about three hours away from the open of US trading. Time for the Five Things that you need to notice. Our your day brought to you by Interactive Brokers. Interactive Brokers charges Martin loan rates from two point eight percent to

three point eight percent, rates subject to change. Learn more at I b k R dot com slash compare up First, the US futures are slumping after the biggest game for tech stock since November of Yesterday's push higher came after resilient earnings in the Fed's press conference, but Victoria Green, chief investment officer at G squared Private Wealth, remains defensive. I think the Margaret Breeze side relief that really wasn't necessary, So I think we realized the earnings really aren't that strong.

We're going into a hawkersh tightening cycle and a weakening economic cycle. And I always think it's funny if we're arguing about the definition of O sessions, we're probably in a refecca. Victoria Greenwich G Squared Private Wealth said, the FED is not being accommodative, but it is communicating well and reaction continues to pour in Karen to FED Chair J Powell's latest comments, the FED raised interest rate seventy five basis points and Powell signal more hikes coming, but

ditched specific guidance. The pace of those increases will continue to depend on the incoming data and evolving outlook for the economy. Jay Pal says the FETE is fully committed to restoring price stability. Oh up, next, Nathan, we get a key reading on the US economy. Second quarter GDP comes out at eight thirty am. Wall straight time economists expect annualized growth of half of a percent after our first quarter contraction. Okay, let's turn to earnings now, Karen.

Shares of meta platforms are down more than five percent. The parent of Facebook and Instagram reported its first ever quarterly sales decline. Up next, we get results from Apple, and then Amazon and on the M and A front, Nathan. Jet Blue is close to an agreement to buy Spirit Airlines. Bloomberg's Nay Young is here alive with more. Good morning, Rendy down, Good morning, Karen. Bloomberg. Sources say Jet Blues deal to buy Spirit could come as soon as today.

The airline swooped in just hours after Spirit ended a pending merger with Frontier Airlines. That deal fell apart on a lack of shareholders support. The Spirit acquisition would be Jet Blues best shot to broaden its network quick clee. It will also inject an infusion of pilots and aircraft orders, both of which are expected to be in short supply for several years. Live in New York. I'm Renita Young, Bloomberg Daybreak. We need a thanks a couple of important

political notes. Presidents Biden and hijin Ping speak today, and on Capitol Hill, Senators Joe Mansion and Chuck Schumer reached a deal on an energy and tax bill. And that's the five things you need to notice start your day. Brought to you by Interactive Brokers or any sure mark crossing the Bloomberg second quarter sales beating analysts estimates, Slate ahead, uh straight ahead rather your latest local headlines and at czechis Sports. This is Bloomberg. Karen, Thank you to six

thirty three on Wall Street. We're at seventy four degrees in Central Park and Michael Barr has more on what's going on in New York and around the world. Good morning, Michael, Good morning, Nathan. Secretary of State Anthony Lincoln said he intends to speak with Russian foreign ministers Sergei Lavrov about a substantial offer to free imprison Americans Britney Griner and Paul Wheeland. A person familiar with the FORST said it

would swap them for imprisoned Russian arms dealer Victor Boot. However, Russia says there was no agreement yet. National Security Council spokesman John Kirby this has been at the top of the mind for the President and for his whole national security team. He receives regular updates about the status of our negotiations to secure Brittany and Paul's release, as well as other U S nationals who are wrongfully retained or held hashness in Russia, and I might add around the

world as well. Spokesman Kirby says, though they won't negotiate in public, Governor Kathy Okol and New York City Mayor Eric Adams announced the groundbreaking on a one nine million dollar affordable housing development in the Morris Heights section of the Bronx. Governor Huckle says it will feature three affordable apartments. Over two hundred of these homes are going to be for people who've been homeless, who expend experienced some of

life's challenges, whether it's substibus or mental health challenges. They'll be able to get to support of services, not by trying to travel across town and go see somebody who might be able to help him someday, maybe in between their jobs, but right here on site. The Governor Hocle says the national affordability crisis is driving rent and another costs to New Highs. A seventy year old woman on Long Island was attacked and killed by the family dog.

Police and Nassau County say they do not know what prompted at the family's seven year old pitbull to attack the woman. Nassau County Police Commissioner Patrick Ryder said her husband came home from work as the woman was being attacked in the backyard. Called When a husband arrived at one o'clock, he went into the backyard and he found his wife being attacked by the door. At that time

he dragged through the audit. Commissioner Writers said the dog turned on one of the responding officers, who shot and killed him. New York Attorney General Letitia James asked judge to allow her to join a lawsuit brought against the clock by a New York woman wounded in an April shooting on a crowded subway train. Earlier this month, Clock sought to have the suit dismissed under a federal law

shielding gunmakers from liability. The producers of Jeopardy say Myambi Alec and Ken Jennings will both continue hosting the game show next season. 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 bar this is Bloomberg, Nathan, Thank you, Michael. Almost six thirty six On Wall Street. John Stanshar has

the Bloomberg Sports Day. Thanks Nathan. And the Mets had to light their chances of sweeping the two game Subway series. They won Tuesday and last night was Max Sher's. They're pitching on his thirty eight birthday. Going against Domingo Herman

and Susy was terrific. Seven scoreless innings. He struck at Aaron Judge three times, Peter Lonzo Homer Mets led to nothing eighth any when Glabor Torres tied the game to run Homer Rock David Peterson, but two new members of the Mets combined to win at bottom the night leadoff double by edwardo Escobar, he scored on a game winning hit by Starling Marte. Mets won three to two. They go up three games on Atlanta, and Jacob Grand pitched four innings for a triple a. Syracuse gave up four runs.

But where it is. De Graham will make his highly anticipated season debut sometime next week in a series in Washington. Mean while, the Yankees made a trade with Kansas City, one that had been rumored for a while. The Yanks sent three Moner League pitchers of the Royals for outfielder Andrew Benintendee. Here's Judge and his new teammates like that,

and especially a guy like that. He's been, you know, hitting well over three hundred all year, you know, playing great defense, and you know it's being kind of a spark plug over there in Kansas City. Um, and time to bring him into the type of culture we got. It's always a plus and kind of a Cambus energy. When Judge was rookie here in two thousand seventeen. Ben Intende then with the Red Sox for the second he's won a Gold Glove. He was just an All Star.

He's also unvaccinated, he may not be able to play when the Yanks go to Toronto in September, and they could possibly face the Blue Jays in the playoffs. Mike Trout downplayed a quote from the Angels trainer that Trout's back injury could affect him for the rest of his career. Trout says he expects to return this season. John Stashatward Bloomberg Sports, All right, John, thank you sixty seven on

Wall Street. Time to take a look at stock, some of the names moving in the pre market with Bloomberg Radio on TV, Markets correspondent creating Gupta and of course the big mover created this morning with tech stocks on the decline. Has to be what are we calling it? Facebook? Meta? What? What's what's your Which team are you on? This is

such a controversial question, Nathan. I think I'm gonna call metic because that is technically its name, and the ticker, by the way, is now m E T A. But of course for those unfamiliar with the metaverse, that we can call it Facebook as well. Down five percent this morning in the pre market, once again M E T A is your ticker. This comes up to a disappoint with that forecast miss. It's their first ever revenue drop.

In some ways, we saw this coming with Snapchat with Twitter last week, all that pain in the advertising revenue really hitting a snag. And of course Meta were formerly known as Facebook also has a lot of these demographic challenges. So this is going to be really crucial. Also, remember just recently, for those who are into pop culture, Kylie Kardashian recently came out and said Instagram AM needs to

look less like TikTok. So you are starting to see uh Meta try to make their platforms a little bit more UM geared towards a younger audience. They're still dealing with that. And in those in that um in those efforts or lack there up I should say lacking there of success, you are starting to see the advertising sale effort diminished as well. It's pretty clear to advertisers here that Facebook does have a demographics problem, so that of course is um taking quite the hit. The revenue for

this quarters to point five billion. The estimate Nathan was thirty point three billions, so they really fell short of that, and that's why you're seeing Meta shares down about five percent this morning. And of course you got a lot more check earning. Two big names in particular reporting later today, two big ones. So we'll start with Apple. Here a A p L is down about six tenths of one percent, Amazon A m Z and as your taker down about one percent. Both are reporting after the bell. Both are

these massive macro proxies. But remember this price action that you're seeing early in the pre market, it's really your reaction to yesterday. We saw the nasset close over four percent yesterday with this kind of massive rally coming off the FED, but then also coming off Alphabet and Microsoft earnings. So to see a little bit of a pullback right now is completely natural. That being said, Apple is still

that major proxy supply chain issues. Five backs are going to be crucial just how much cash they have, and of course for Amazon, the consumer story and the cloud story crucial for that company. And just quickly we were reporting that Jet Blue and Spirit Airlines are close to a deal on a merger. Now it looks like it could be a done deal. It's there are it looks like they're right on the edge of of getting together. This is going to become a major deal when it

comes to becoming a very competitive, low cost carrier. For those who are familiar, Spirit was being acquired emerging, I should say, with Frontier Group was going to be a low cost regional carrier. There looks like that deal fell through yesterday when the shareholder vote came through, Jet Blue hopping on it. Now they're in active conversations. Remember Jet Blues also going under regulatory scrutiny with American Airlines. Nevertheless, that is good news for Spirit. S a v as

your taker up three seven. The sprain Berg Radio and TV markets correspondent crept with us this morning, taking a look at stocks as the whole. SMP futures are down nine points, Staff futures down forty three, Dasdack futures down seventy seven points. Ten. Your treasury is up one thirty second to yield two point on the benchmark ten year treasury note. This is Bloomberg Bloomberg eleven three oh Weather calls for highs near ninety degrees into Saturday, but today

and tomorrow to see some afternoon showers and storms. Right now seventy five partly cloudy 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 is a Bloomberg Business Flash and I'm Karen Moscow and futures lower this morning on a busy morning for corporate earnings and on a deal in the airline industry. We go to the first word breaking news dance for

today's morning call. Here is Bill Maloney. Bill, good morning and good morning, Karen. That's right. US futures are in the red right now down, futures down sixty points, SUPs drop eleven will nasdack. Futures are looked off by seventy eight. The US ten year old the two point seven eight percent, Gold is up seven, oil is climbing, and bitcoin is up by one percent. Asian markets were quiet overnight, while e up markets are trading mixed this morning and back

in the US. On the economic frontday thirty g d P and initial job as claims after the bell US to night, Facebook had its first ever revenue drop and regarding some of those earnings this morning, Murk boosted its fisky your sales forecast, Honeywell and Fiser EPs beat estimates. In deal news, jet Blue to buy Spirit Airlines for thirty three hours and fifty cents you share in cash and wrapping things up. Best Buy was cut. The hold at Jeffreys craft Hines was raised to buy overd Stephole.

Live from the first breaking Newsdscomb, Bill Maloney, Karen, all right, Phil, thank you, and to hear live breaking news of her Bloomberg types. Squawk on your terminal, SCU A w K and Yeah. Earnings continued across the Bloomberg again Fier second quarter revenue beating analysts estimates. And that's a Bloomberg business flash. Now here's Michael bar with Moore on what's going on

around the world. Michael, Karen, thank you very much. Russia says no agreement has been reached yet on the prisoners swap with the U. S Secretary of State Anthony B. Lincoln says they will offer a way to bring w n B A star Brittney Griner in former US Marine Paul Wheeland out of Russian detention and back to the US. A person familiar with the potential swap says the US is proposing trading infamous Russian arms dealer Victor Boot. Russian

forces have launched massive missile strikes on regions near Kiev. Meanwhile, Ukrainian officials announced in operation to liberate and occupied region in the country's south. And baseball. The Mets beat the Yankees three to, The Guardians beat the Red Sox seven six, The Dodgers beat the Nationals, The Rays beat the Orioles, the A's beat the ass Throws four to, the Diamondbacks

beat the Giants. Global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Can all right, Michael, thank you? And at sixty nine on Wall Street, return to news now in science and technology with the Bloomberg

and j I T S STEM Report. It is 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 A d U slash Data Science and now here's this making news and science, technology, engineering and math. On Capitol Hill, the House is expected to approve a bill which includes fifty two billion dollars for U S semiconductor

manufacturers is sent it passed. The measure yesterday. It's a major legislative victory for President Biden. The US chip industry has steadily lost ground to overseas rivals in recent years. After weeks of delays, how the regulators see nearly eight hundred thousand dos is that the Monkey Pops vaccine will

soon be available for a distribution. He announcement comes amid growing criticism that authorities have been too slow and deploying the vaccine, potentially missing the window to contain what could

soon become an entrenched infectious disease. And more research suggests it maybe time to abandon the craze over vitamin D and a study published in the New England Journal of Medicine, researchers say taking high doses of the vitamin does not reduce the risk of broken bones in generally healthy older Americans and estimated third of Americans sixty and older taking the supplements in more than ten million blood tests for vitamin D levels are performed annually, despite years of controversy

over whether the average older adult needs either. And that's a Bloomberg and j I T Stem report. Nathan, all right, Karen,

thank you. We are live from the Bloomberg Interactive Broker Studios, where it's six fifty one on Wall Street Time now to check what's going on in d C. Some of the top stories in our nation's capital include Senator's Mansion and Schumer reviving and economic deal that Washington had left for dead, Secretary of State Blanket to speak with his Russian counterpart about a prisoner swap, and President Biden speaking with China's Shi Jin Pink, with a Pelosi trip to

Taiwan still up in the air. For more, we're joined by Bloomberg government reporter Jack Fitzpatrick from the Nation's Capital. Jack, let's start off with this deal in the Senate Democratic side. We had thought this wasn't gonna get done until maybe September. How did this come to pass? Oh, we really didn't think that this was going to happen at all, at

least a substantial portion of what what they just announced. Uh. They had been moving forward on the Democratic side with a bill that really was mostly a prescription drug pricing measure with some Affordable Care Act UH subsidy extensions. And then yesterday Mansion announced he and Schumer had had come

to an agreement on tax measures. UH. The big one is a fifteen percent corporate minimum tax and energy and climate spending and tack some measures essentially some some clean energy stuff that's tied to requirement that there be federal land oil and gas leases. So it's sort of a Joe Mansion all of the above energy policy, but there is clean energy stuff in there that Democrats had thought

they would have to give up on. So this really came together quietly and made this a much bigger bill, uh, not quite the original build back better, but significantly larger than what they had been talking about recently. They a lot of people had given up on a significant tax and energy measure through the reconciliation process. Yeah. I guess the idea here, Jack, is that it's bigger than nothing, which we had thought was going to be the case

at least into the Senate recess. Here. But when we think about the tax provisions, are all fifty senators on the Democratic side on board with a fifteen percent corporate minimum tax? We don't know yet. You know, there's been so much focus on mansion that I think sometimes it's lost that Kirsten Cinema is probably the other main X factor, especially on tax issues. There is a measure in this deal that Mansion has signed off on to close the

carried interest loophole. It's basically a way that UH fund managers pay lower amounts on their income by considering a carrying carried interest rather than paying an income tax. UH. It wouldn't raise a massive amount of money. If they needed to pull it out that that might not kill the bill, but Cinema has not signed off on something like that. In particular, they do need unity on this.

It's it's something Republicans are not going to support. They can do it with fifty votes plus the tiebreaker, but that means they need all fifty Democrats to agree, so Cinema could play the spoiler. Uh. The House is such a narrow margin, we can't guarantee that it gets through

the House. But to have a deal between Leadership and Mansion is the biggest step forward that Democrats have taken on these kinds of issues, and so only if it goes forward a pretty significant political and policy victory for President Biden as well. Let's turn to something else happening in the Biden administration. We got this announcement from Secretary of State Blincoln that he's working on a potential prisoner

swap with Russia. Yes, so he just said yesterday he is planning to speak with Sergei Lavrov, the Russian Foreign Minister, and that previously some some information had come out that there was an offer to swap the Russian arms dealer Victor Boot for Brittany Grinder and Paul Wheelan. Uh we don't have an update yet on what exactly the Russian

response was to that. It may be the case that they're trying to provoke more of a response from Russia to that offer by talking about this publicly and saying that they planned to follow up and have a call between Blincoln and Lavrov, which would actually be the first direct communication between them since the Russian invasion of Ukraine. UH So it is uh, I guess, if not a gamble, a significant uh investment from Blincoln in the US to try to reach out and force the issue and and

follow up on this offer on a prisoner swap. And of course we do have the call confirmed now this morning between President and Biden and Chinese leader she Jin Ping. Is there still an overhang though about Speaker Pelosi potentially going to Taiwan. That is maybe the main issue that that we're going to be looking forward to see if they discussed that. Pelosi has not ruled out the possibility of a trip to Taiwan. Uh. That is something that

the Chinese government has warned against. And you heard a little while back Biden say that the military, the US military didn't think it was it was a good idea. Uh. So that is the probably primary point of tension in this call between Biden and Shijin Ping. I would also look to see if there's conversations about lifting tariffs applied on China during the Trump administration. That's the other a big thing to look forward to uh in that call.

But those two issues are would be really big ones for Biden and she to discuss in our last minute. Here Jack, some interesting breaking news this morning reports that House Democrats are thinking about a ban on stock trading. Yeah. So, punch Bowl had a story this morning that House Democrats planned to announce a proposal that would ban lawmakers and their spouses and senior staff from trading stocks. Essentially, this would allow things like mutual funds, but they couldn't actually

be trading stocks. They could either divest completely or put their assets in a blind trust. Uh. This is something this is a bill they would want to enact into law. So this is something that would have to get sixty votes in the Senate. Raises a lot of questions about exactly how that would happen. It's a again, a House

Democratic proposal. There's no bipartisan deal on this kind of thing, and when you get closer to the mid terms, maybe it's a bit more political message jing but it's an issue that has come up enough over the last couple of years that has clearly got some salience, and it's an issue where House Democratic leadership feels the need to put out a proposal. Alright. Bloomberg Government reporter Jack Fitzpatrick

with us this morning. You can read more about these stories on Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington Bloomberg one and one oh five point seven FM HD two SFP futures down twelve points, Style futures down sixty seven, NASDAC features are lower by eighty four points ten. Your treasury little changed. Right now the yield two point seven eight percent and the yield on the two year right now two point

nine seven percent. Bloomberg surveillance is next with Tom King, Jonathan Farrell, and Lisa Abramowitz for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg