Bloomberg Daybreak: July 29, 2022 - Hour 2 (Radio)

taking bribes. Plus flooding in eastern Kentucky has left at least eight people dead. I'm Mike Lablar. More Ahead, I'm John Stash, Aaron Sports. Aaron Judge strikes again a home run bottom of the ninth inning. Give me the Yankee

the one Nothing went over Kansas City. That's All's trendy Ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg ninety one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and 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 Hagart and I'm Karen Moscow, and US stock index futures are rising

this morning. We are coming up to six oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg. Right now, SNP futures are up thirty one points. Now Future is up eighty five and nasdack futures up one fifty four. That's up one point two percent. Ten year treasury down eleven thirty seconds. You two point seven one percent, and they yield on the two year two point eight nine percent, and nine mex screwed oil is of two point one

percent Nathan, Karen. The big lift in nastack futures follows earnings from two tech giants. Let's begin with Amazon. Those shares are surging by twelve percent. The company reported revenue the top estimates and gave a strong sales forecast for the current quarter. Bloomberg Intelligence Senior retail analyst Punum Goyle says, it's quite a different story from another high profile retailer.

We right now worried about what we saw earlier this week with Walpart taking down guidance as we had thought that Amazon has a different customer based. Amazon doesn't target the low income consumer, so we didn't think Walmart's rose would bleed into Amazon, and that's exactly what we saw today. Bloomberg Intelligence analists poom Goyle says Amazon added full and part time jobs at the slowest pace since tween, in an effort to cut costs well. Nathan Apple shares also higher.

They're up more than two and a half percent. The company's revenue and profit narrowly topped estimates, with iPhone sales holding up better than expected. Tom Giles is an executive technology editor for Bloomberg News. The market took away that Apple so far is weathering the downturn relatively well um and they even though they missed on a couple of their different products, they did uh surpass wall streets projections on the iPhone, which is their biggest product, all important product.

Bloomberg Tom Giles says the iPad also performed better than feared, though other products, including max and wearables, fell short of projections. On the flip side, carrying shares of Inteller down nine and a half percent in early trading. The chip maker's profit and sales missed estimates, and it's also slashing forecasts.

More from Bloomberg's Charlie Pellett. The world's biggest maker of computer processors was weighed down by a steep drop in demand for data center chips and a steep decline in PC shipments after two years of growth. Spending on laptop and desktop machines is declining quickly as rising inflation is

leading consumers to shy away from large purchases. The market for chips that power PCs is still Intel's biggest source of revenue and the cash needed to fund an ambitious attempt by CEO Pat Gelsinger to restore the company to semiconductor industry leadership in New York. Charlie Pellett, Bloomberg day Break. All right, Charlie, thank you. Even another stock getting hammered this morning. Roku shares are down more than twenty four percent.

The maker of streaming TV devices reported disappointing second quarter results. Roku said advertisers are pulling back on spending due to economic concerns, and the earnings continue today. Karen with Big Oil in the spotlight. Bloomberg's Jeff Balinger reports X on Mobile and Chevron post quarterly results this morning. There could be a lot to like what X on Mobile reports. Bloomberg Intelligence says the company likely saw a substantial increase

in net earnings from its refining unit. If that drove a major improvement and free cash flow, it could mean faster share by backs. Refinding improvements at Chevron likely lagged behind X on Mobile. The I says the company's balance sheet maybe in a net cash position before the end of the year if it continues to hold back on share repurchases. Jeff Bellinger, Bloomberg Day Break, Right, Jeff, thank you well. Turning to the economy. Now, there's a key

report coming up before we wrap up the week. The University of Michigan issues it's National Consumer Sentiment Index for Law at ten am Wall Street Time and Bloomberg's Viney Down Judas has more. The Prairie report covering early July showed long term inflation expectations declined. At that time. At least the consumer surveyed anticipated prices would rise at an annual rate at two point eight percent over the next

five to ten years. Today we're pushing nine percent inflation. Overall, consumer sentiment is suffering with the University of Michigan index at historic close and he dealt Jdicce Bloomberg day Break. Okay, Vinny, thanks. That sentiment report comes the day after the latest GDP data fired up the debate over whether the US has slipped into a recession. One top official says no. Let's get the latest line from Bloomberg's Riunita Young. Good morning, Rinita,

Good morning Nathan. Treasury Secretary Janet Yellen is rejecting the notion that the US has entered a recession. She points to continued job creation, gains in consumer spending, strong household finances, and growth in business, Although she acknowledges a slowdown is needed to tame inflation. We knew they would. Challenge is ahead of US. Growth is slowing globally. Inflation remains unacceptably high, and it's this administration's top priority to bring it down.

Treasury Secretary Janet Yellen says she remains optimistic about the country's ability to fight inflation. Live in New York, I'm ready to Young Bloomberg Daybreak, all right, ready to thank you. But we also have news on the geo political front this morning. Presidents Biden and she Jan Ping have now agreed to set up an in person meeting, and Bloomberg

said Bachelor has the details. This could be interpreted as a positive sign the dialogue could remain open, but tensions remain high, with words like constructive left out of the readouts. White House Folks Women Karen Jean Pierre says Taiwan was a major issue. President Biden underscored that the United States policy has not changed and that the United States strongly opposes unilateral efforts to change the status. Also mentioned of the readouts efforts to fight climate change and protect the

global macro economy. In San Francisco, I'm at Baxter Bloomberg day break, Okay and thanks SMP futures up thirty points now, DEALT futures up ninety Nastack futures up a hundred fifty one points. The tenure Treasury is down twelve thirty seconds yield two point seven to per cent. Local headlines and a check off sports up next. This is Bloomberg and at six oh seven on Wall Street, We're it's seventy

five degrees in Central Park. Got an overturned tractor trailer on the southbound six eighty four off ramp to two eighty seven inheritson more coming up in Traffic First Michael Barr with what else is going on in New York and around the world Company Michael Good Morning. Nathan, a former New York State Supreme Court justice, was sentenced to a year and four months in jail. Attorney General Letitia James has former judge John mccallock accepted bribes from a

Democratic Party political operative. James says mccallick took bribes from former Erie County Democratic Committee Chairman G. Stephen Pigeon in exchange for a political, judicial, and personal favors. In Kentucky, at least eight people are dead after more than ten inches of rain in twenty four hours. It submerged homes, washed away roads, and triggered mudslides. Governor Andy Butscher has

declared a state of emergency. State police are fully active, have an extra helicopter that can be used in rescues. The Transportation Cabinet is actively working preparing for debris removal. Fish and wildlife is out with votes, working to make water rescues were safe for their personnel. Forestry is ready for any clean up. This is an all hands on deck. Governor Mascher says about twenty people are without power. Former President Donald Trump says the Saudi funded live golf circuit

has created a gold rush for players. Trump played around yesterday on his home course at Trump National Deadminister. This one was the Live Golf Invitational pro am. The former president says what the Saludi Back League is doing is good for golf because it gives players an alternative. Trump also says nobody has gotten to the bottom of nine eleven. Three hostile foreign actors breached the federal courts document management system via an incredibly significant and sophisticated cyber attack more

than eighteen months ago. The Chairman of the House Judiciary Committee, Gerald Nadler, said that the hack had a disturbing impact on both pending civil and criminal litigation and national security. The Mega Millions lottery drawing to night, the jackpot one point one billion dollars. What would you do with all that money as bills? Definitely bills. That's a number one priority for me. Knocks on bills down and I have to get uh see what I got there. It's the

third largest prize in US lottery history. Global News twenty four hours a day on airand on Bloomberg Quick Take powered by more than twenty seven under journal to analysts more than a hundred twenty countries. I'm Michael Barb. This is Bloomberg Knight. You know one point one billion would take care of a lot of bills. Thank you, Michael. Almost six ten on Wall Street. Time for the Bloomberg

Sports Update with John Stesshow all right, Nathan. The Yankees sixties seven win of the year, thirty eight at home, and twelve of the thirty eight nearly a third have been walk off wins, and three of the twelve have ended just like the one last night hit in the

are pitting Glove Center. It is high Hello for hell God, I walk off or run to win the game, A judge and glad oh wow bottom by the nine all run by judge to win the ball game one nothing Sirlene fing and great pictures dokay in the City's Brady Singers seven and is only one hit struck at ten the Yanks Jameson tay On, We're on Marion at Joe

Clait's Holmes. Together they gat of only four it no walks twelve strikehouse of scoreless until the Aaron Judge blast four hundred one feet off Scott Farlow judges thirty ninth home run of the year. He had never had a walk off homer before this season. He's had three in the last two and a half months. Andrew Benintendi made his Yankee debut faced the team that just traded him. Vatted leadoff went over four. The series continues tonight. The

Mets tonight visit the Marlins. The Mets just sent two minor leaguers to Cincinnati for outfielder Tyler Nick when he was hitting two forty six to the Reds. Rangers drafted Kapo Kecko second overall a couple of years ago. They have given the twenty one year old the two year contract extension. The Jets signed linebacker Kwan Alexander. He had been with New Orleans before that the forty Niners, where

he was coached by the Jets coach Robert Salah. White out dk Metcalfe new contract with Seattle and the Dallas Cowboys son kick returner Cavante Turpin. He was the USFL m v P with the New Jersey Generals. John stashwar Bloomberg Sports Nathan thank you, John SMP futures up twenty nine points now del futures fiveness at future is highed

by one forty eight points. This is Bloomberg Bloomberg eleven three oh weather partly sunny, maybe an afternoon shower, thunderstorm going up to near ninety degrees, partly sunny Tomorrow uperds mix of sun and cloud Sunday operatings 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 Quicktape is a Bloomberg business flash and I'm Karen Moscow and earnings from Chevron crossing the Bloomberg.

It did expand at shared by backs by as much as fifty percent after blowing past all forecasts with the strongest quarterly performance in company history, and shares jumping in early trading up three point two per cent. Stocks in Europe in the US are set for their biggest monthly advance in November twenty on positive earnings, and we check the markets every fifteen minutes throughout the trading day on Bloomberg.

Right now, S and P futures are up about twenty nine points down futures of eighty seven and NASDAG futures have one hundred forty up one point one percent. The decks in Germany's of nine tens of a percent ten year treasury down nine thirty seconds yield two point seven one percent, the yield on the two year two point eight eight percent. Nine mex screwed oil of one point seven percent of a dollar sixty four at ninety eight dollars. Five cents of barrel comexs gold a half percent or

eight dollars at seventeen seventy seven. Twenty announced the euro one point oh two one five against the dollar, British found one point to one six zero and the yen one thirty three point to two, and bitcoin is higher up a quarter percent at twenty four thousand, one hundred dollars. That's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Darren,

thank you very much. President Chi Jinking warned against meddling in China's dealings with Taiwan during a phone call with his US counterpart Joe By. It comes among Beijing's opposition to HOW Speaker Nancy Pelosi's possible visit to Taiwan that China claims as its own. Flooding in eastern Kentucky has left at least eight people dead. Governor Andy Basher has declared a state of emergency. In baseball, the Yankees beat

the Royals one zip. The Red Sox beat the Guardians for to The Orioles shut out the Rays three nothing. The Giants beat the Cubs for two. 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 countries. I'm Michael bar This is Bloomberg, Nathan. Thank you, Michael. It is six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak.

And even as we watch big oil earnings begin to cross the Bloomberg terminal, we keep our focus on big tech. After a very interesting week for the tech sector, capped off by Amazon and Apple both posting strong earnings despite economic headwinds, Let's bring in Matthew Blocksham, senior industry analyst of Bloomberg Intelligence, for more on what we learned from

the two big tech giants. Matt, good morning. Let's start off with Amazon just because the shares are surging so much, still managing to eke out revenue even with inflation and cost cuts. Do you think that can continue as we get through the rest of this year and with the FED tightening policy. I mean that they're certainly very constant

about the next course. I mean that they delivered temper and constant currency growth in course just reported and looking for as much as you know, maybe kind off in the quarter ahead. And I think that's coming from both resilience in the e commerce business, you know, which which is kind of more or less flat um constant currency, but really coming the cloud business Amazon Web services, so yeah, near um obviously some some weakness in the consumer, but

not really kind of denting that business too much. And I think the other really positive thing, which I think is pretty more behind the Shampie's reaction, is what they have been able to deliver on costs um in the

court just reported. That was a big concern for people as it came out the pandemic that there's perhaps overinvested in capacity for the e commerce business, and they're starting to show signs that they're getting that under control, and some positive messaging about the quarters ahead in terms of what they'll be doing on headcount and getting spending more online with the revenue they're expecting to get from from

a course of different potsile business. So as Amazon navigates the rest of this year, Matt, where do you see the business really seeing signs of growth. Is it going to be more on the e commerce side or is it going to be more on cloud. I think it's more on cloud. And again we we saw them say yesterday that they're shifting the focus of their spending towards that part of the business because that's where the strength is. UM that that unit grew at something like thirty three

percent you're over year and the course just gone. It's the dominant cloud provider in the world, put about thirty five percent share, and they were saying there's still a huge amount of opportunity in that marketplace. So I think that's going to continue to be both the driver of

both revenues and profit for them. To give you a sense, in the first six months of the year, UM the cloud business delivered something like twelve billion dollars of operating income compared to about five billion dollars of losses across the other businesses. So it really is the revenue and profit engine of Amazon right now. When it comes to Apple, we saw pretty strong results for iPhone and iPad in particular. What about the rest of the business there was some

weakness and some of the other parts of what Apple's out. Yeah, that's right. So a big miss on the wearable segment UM, so maybe they're kind of the Watch seven not rowing so well. That's about a ten percent miss against expectations UM and also a miss on max of the kind of PC division. I think that that the people are more comfortable about the map commiss because essentially it's about timing of new products or see some some of that's been down to shortage of chips and then prioritizing chips

apply to the iPhone and the iPads. So I think it's confidence that when those new products come out in the next few months that will pep up demand. On the MAX side, I think the wearables is a little bit more of a head scratcher. I guess people will be hoping that the Watch eight, which should come out maybe in September, will be a bigger upgrade and people will get more excited about that as their next time piece.

Now last minute here, Matt, is there any concern that Apple is going to manage to keep that product line going with the China exposure and the potential perhaps for supply chain disruptions. I think the the noises yesterday where maybe the supply chain issues were still there oh easing, So I think that there's more confidence, if you like, that there's going to be a better balance between supply

and demand in the next couple of quarters. Clearly China um is a bit of an issue for them, but I'd say, certainly in in the commentary on what we saw in the numbers they released for the course just gone um that perhaps held up a bit better than people expected. And I think you know, they said it was the biggest course overseeing for people shifting from android to iOS. So I think you know that the the appetite for Apple products, certainly in the IP area, is

still incredibly strong. Appreciate this man, thanks for coming on with us. Matthew Blacks, some senior industry analyst at Bloomberg Intelligence. On Amazon after earnings shares are up twelve percent in the pre market, and on Apple those shares higher by about two percent this morning, driving Nasdaq futures higher. They're up a hundred forty points again of one point one s and P futures up twenty nine. Dow Future is

higher by nineties six points. You're listening to Bloomberg Daybreak Bloomberg eleventh, three oh weather partly sunny, maybe an afternoon shower storm to end the week. We'll get up to near ninety degrees. Will be probably the mostly sunny tomorrow all weekend long. We're looking for highs near ninety right

now in Central Park. Broadcasting live from the Bloomberg Interacted Broker Studio in New York, Bloomberg Living Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the Country, Sirius XM to A one nine, and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hager and I'm Karen Moscow. We are just about

three hours away from the open of US trading. Time to the five things that you need to notice start your day to you buy Interactive Brokers Simple, ib KR Global Trader app deposit in your local currency and trade stocks in the US, Europe and Asia. Start your free trial at ibk r dot com Slash Global Trader. First

futures are higher following earnings from two tech giants. Amazon shares are surging twelve percent after the company reported revenue that top estimates, and Apple shares are up two percent after it also beat estimates. Bloomberg Intelligence Senior analyst Matthew blocks Them has more keeping costs under control that's been a really big focus for Amazon shareholders recently, and optimistic

about the next quarter. They issued a arrange for revenue guidance that was pretty much consistent with where alas you're expecting it to be. I think for Apple, iPhone sales held up better than expected. People expecting new mexicom on in the next course and that's going to really help sales and encouraging Tim Coots if they expect to see progress in revenue in next quarter. Matthew blocks Them with Bloomberg Intelligence says both Amazon and Apple are position for

strong performances in the next quarter. Has gotten results from Chevron and x on mobile care in the big oil companies, both reporting earnings above analyst estimates. Shares of Intel are down nearly ten percent, the chip makers profit in sales miss projections, and Roku shares are plunging down more than twenty after it also missed estimates. Unathanic Key Economic Report is also due out today. The University of Michigan issues

it's National Consumer Sentiment Index for July. It comes as experts debate whether the US has slipped into a recession. One top officials says no. We get the latest lie from Bloomberg's Rendi Young Good morning, Ready Down, Good morning, Karen. Treasury Secretary Janet Yellen is rejecting the notion that the

US has entered a recession. She points to continued job creation, gains in consumer spending, strong healthhold finances, and growth in business, although she acknowledges a slowdown is needed to tame inflation. We know there are challenges ahead of US. Growth is slowing globally, Inflation remains unacceptably high, and it's this administration's top priority to bring it down. Treasury Secretary Janet Yellen says she remains optimistic about the country's ability to fight inflation.

Live in New York, I'm gonna need a young Bloomberg daybreak. We need an note on geo politics this morning. President's Biden and Shi Jin Ping have agreed to set up an in person meeting after their loan long phone call yesterday. And futures this morning are on the rise. SMP futures up about thirty points down, features up a hundred, nastag features at four. That's the five things that you need to know to start your day, brought to you by

Interacted brokers. And it's now six thirty three on Wall Street, seventy five degrees in Central Park. Got an accident on the southbound FDR Drive at sixty three Street that Peter Van is gonna tell you about in a few minutes. First, Michael Bars here with Roy else is going on in New York and around the world. Good morning, Michael, Good

morning Nathan. A former State Supreme Court justice and a former Democratic power broker from Western New York were sentenced to prison for their roles a bribery scheme which authorities say influenced judicial decisions and official appointments. G Stephen Pidgeon, the ex chairman of the Erie County Democratic Committee, received a one year sentence. Former Justice John mccallick received a

year and four months. Heavy rains have caused flash flooding and mud slides as storms pound parts of eastern Kentucky. Kentucky Governor Andy Basher says that at least eight people have died from the flooding in the state. We have activated our National Guard. In fact, I just signed a state of emergency that will unlock the resources needed and also tell the people of eastern Kentucky that we are going to be there for them. Governor Brasier also says

about twenty thou people are without power. New York City Mayor Eric Adams met with the newly confirmed director of the a t F, Steve Detleback, and the statement. Adams says, the a t F will be a partner in ending the flow of illegal guns to New York City and in taking down the violent offenders. We want a t F to double the number of ages here in New York City, and we need Congress to support the a

t F with the resources to make that happy. Mayor Adams also called for revoking the license of the nation's largest supplier of ghost guns. Vice President Kamala Harris was in Brooklyn yesterday and to speak about the Biden administration's

investments in underserved communities, financial institutions, and small businesses. Black and Latino homeowners are rejected by traditional financial institutions at a higher rate when applying for home owns, and this is the case even when they have credit profiles that are similar to other applicants. Vice President Harris made the trip with HUD Secretary Marcia Fudge. All right, let's see who's not at work on Monday. The Mega Millions lottery

drawing is tonight. It is the third largest prize in US lottery history. The jackpot is worth one point one billion dollars. The odds of winning the jackpot are one in three hundred two point five million. I still got a chance. Global News twenty four hours a day on air, end on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analyst and more than a hundred twenty countries. Michael Barr, this is Bloomberg. Hey, you know

what they say, can't win if you don't play. Thank you, Michael, Almost six thirty six on Wall Street on Stash Hours and Bloomberg Sports Update. All right, Nathan pictures dual in the bronze Kansas City, Brady Singer allowed only one hit struck out of ten. Jamison Ion works six scoreless as Ron Mernaccio two after that, and then Clay home the Yanks and Royal still scoreless with one out in the bottom of the ninth. Yeah, it was time for all

to rise. Aaron Judge's thirty ninth poem run of the season night after he went over five with three strikeouts against the Mets four hundred thirty one feet off the Royal sky barlowis the Yanks second hit of the game and they won one to nothing. Is there twelve walk off win That's twelve of their thirty eight at home, so nearly a third. Judge has had four of those game winning heads, three of them home runs. You never

had a walk off hit until this season. Only other Yankee they had three walk off home runs of the season. The nicky man over New Yankee Andrew Benintendi, bad at leadoff, went over four against the team that just traded him before going to the Royals. Ben Intendie played for the Red Sox. Playing for the Sox, that you get a little, you know, a bit of a smack talk, which is great. I mean it's all for the song, good fun um.

But yeah, I mean, I've seen how this place can get and help help pumped up and how energize it can get. So I'm excited to be out there, you know, and be able to call this at the home stadiums. And Mets have a new outfielder themselves. They just sent two minor leaguers to Cincinnati for Tyler nake Win. The

Mets visit for Marlin's tonight. Arizona Cardinals QB Kyler Murray just got that big contract, but unhappy with the uproar over the report of the so called homework clause, where Murray's required to work on the game plan each week. Murray called it a joke. The Cardinals have now taken the clause out of the contract. Bloomberg Sports David, 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 pretty goofa joining us with the focus on the oil majors. Now that the earnings focuses are turned that way, so much to discuss, Nathan, I'm just looking through these earnings. I mean, they're literally to hitting the wire as as we speak. We are seeing x on mobile shows will start with big oil here and then we'll go to big tech. X on mobile x O M is your taker. Those shows are up two point six percent in the

preme market. It's pretty fascinating. Here they posted their's best profit ever. Of course, it's coming off the back of commodity prices. The concern here though, is about their Russian business. How do they have to actually pull out of Russia some of the costs that are associated there also the question about recession fears. You know, Nathan, I was talking to a member of the financial community yesterday. We'll keep him anonymous, talking about what the actual kind of momentum

trade in the modity hedging actually is. If you're talking about recession, the commodity trade is the first one that falls apart at any sign of recession. You've kind of already seen that with this pull back in the oil markets. But nevertheless, when it comes to Exons bottom line, that profit still soaring to an all time high. Nathan, But it's not just Exon. You gotta talk about Chevron as well. C v X is your taker up about three point

seven percent in the pre market. They have record profit too, and here's what they're doing with it. They're increasing their share buy backs by get this, as much as fifty percent, blowing past all those profit forecasts. Enormously strong quarterly performance in company history. So you rearly can see that big oil, big oils thriving right now. Well, yeah, it certainly seems to be even despite the headwinds around the war in Russia and Ukraine. But we do have to talk as

well about the big text story. We're still watching Amazon shares in particular surge this morning. We absolutely are, and I think a good way to frame this conversation is simply that, uh, this they had some really tough expectations to beat, or I should say, there was such a gloomy forecast going into these earnings. So a m z N is your taker. The shares are up about twelve percent. This is massive for Amazon, which by the way, has been beaten up in the last two years or so.

And this comes as the fact they show that their cost story they can actually control, that they are able to generate more sales, they are able to slow that spending picture, and that was really the concern for Amazon, the fact that you do have these kind of higher pressures on the consumer. You have higher shipping costs, you

have higher labor costs as well. I'd love to give the example I'm actually seeing commercials for Amazon, not advertising to the consumer, but advertising to workers to come work for their warehouses, which is significant. Speaks to the labor dynamics here, but they're actually showing that those margin concerns well, they're actually getting better. So that's something to keep in mind. And of course Apple shares we always have to talk about this. Shares are up in the pre market to

the tune of about two and a half percent. Yeah, after the big beat on iPhone and iPad sales in particularly thanks Cretty as always for TV and radio markets corresponded pretty gupta. In the pre market, looking ahead to the open, SMP futures are higher by thirty two points. Staff futures up a two nastack future is still leading the games after the big Tech earnings up a hundred fifty five points, a gain of one point two percent.

You're listening to Bloomberg day break Bloomberg eleven three oh weather highs near ninety degrees today, tomorrow and the next day, maybe an afternoon shower, a storm, but a really nice weekend on tap currently seventy in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business app, and at Bloomberg Quick Tape. This is a Bloomberg Business clash and I'm Karen Moscow. And futures on the rise this morning, especially nasdack futures,

which you're jumping almost one two percent. We go to the First Word Breaking news desk for today's morning call. Here's Bell Maloney, Bell, good morning, Hey, good morning, Karen. That's right. US features are in the green right now, helped by earnings last night from Amazon and Apple. Douf you just currently up on hundred twenty one points. SUS

gained thirty two. Well NAS that futures rise by seven, the US ten year old at two point seven percent, Gold is up five, Oil is climbing, but Bitcoin is little changed. Hong Kong fell two point three percent overnight, while up markets are trading higher this morning and back in the US on the economic Fronday, thirty pc E and ninety five Chicago p M I and at ten o'clock Michigan Sentiment after the bellost night, Amazon sales did

top estimates. App Apple revenue beat estimates, but Intel cut its sales and profit forecasts for the rest of the year.

Regarding earnings this morning, Chevron and Exxon Mobile both beat estimates and wrapping things up, Intel was cut to neutral at Robert Baird, Facebook cut to sell it, DC Bank, and Comcast was cut to neutral over at JP Morgan Live from the first to breaking news tests gone boom, Maloney care all right, Phil, thank you to hear live breaking news over your Bloomberg type squawk on your terminal squ a w K and us a Bloomberg business flash. Now here's Michael Barr with more on what's going on

around the world. Michael Karen, thank you very much. President Joe Biden and Chinese President Chi Jing Bing told AIDS to plan and in person meeting. During yesterday's call, the fifth conversation between the leaders of the world's two largest economies centered on Taiwan, a long time flash point exacerbated by how Speaker Nancy Pelosi's possible visit to the island next month. Flooding in eastern Kentucky has left at least eight people dead. The area is bracing for more rain.

In baseball, the Yankees beat the Royals one zip. The Red Sox beat the Guardians four two. The Orioles shut out the Rays three nothing. The Giants beat the Cubs four two. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than und journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Cameron, all right, Michael, thank you.

Sixty nine on Wall Street returned to news and science and technology now with the Bloomberg and j I. T. Stammer fort BRONTI U buy New Jersey Institute of Technology, transforming computing professionals and to 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 and here's US making news and science, technology, engineering, and mouth. The Biden administration reportedly will offer updated booster shots for

the coronavirus in September. According to The New York Times, Fiser and Maderna have promised they can deliver the new vaccines by then. The Time says the new boosters are expected to offer more protection against the omicron subvariant b A five. The House has passed a package to support the domestic ship industry and includes fifty two billion dollars in grants and incentives for semiconductor manufacturing in the US.

Now goes to President Biden for his signature. And a new study says human caused climate change made last week's deadly heat wave and Land and Wales at least ten times more likely and added a few degrees to how brutally hot had got. A team of international scientists found that the heat wave that set a new national record high and more than a hundred and four degrees fahrenheit was made stronger and more likely by the build up of height trapped gas from the burning of coal, oil,

and natural gas. The study is by World Weather Attribution, a collection of scientists across the globe who do real time studies of extreme weather, and as the Bloomberg and j. I. T. Stem Report. Nathan all right, Karen, Thanks, We're live from the Bloomberg Interactive Brokers Studios, where it's almost six fifty one on Wall Street Time Now to check what's going

on in DC. Some of the top stories in our nation's capital include presidents Biden and She planning to meet in person as intentions intensify, or Taiwan, the president encountering GOP talker recession by touting job gains, and the start of the congressional August recess. In the era Senate Democrats wait for ruling on their spending deal. Let's bring back

Bloomberg Government reporter Emily Wilkins for more on all these stories. So, Emily, what's the latest on what we've heard about the President's call with China's Shijen paying yesterday? So we know that it was about a two hour call, and based on the readouts that we've seen, UH, the call is apparently well enough that the two of them are now talking about scheduling an in person meeting. This would be the first in person meeting of Biden and She since Biden

became president. Um, there's not a lot of details yet about exactly when that would be, but we're of course keeping a very close eye out. And Taiwan was also discussed. Remember how Speaker Nancy Pelosi. It's been reported that she will be heading to the island uh in a trip that begins today. It's going to include several countries in the Asia Pacific region, but the Taiwan trips huge. She would be the highest ranking US official to visit Taiwan

in over twenty five years. UH. The Pentagon and Department of Defense have been looking at security options, and even though they've kind of suggested that they're not super comfortable with this trip, a lot of lawmakers on both sides of the aisle have really backed Pelosi going and have kind of encouraged her to not back out now for

any pressure reasons. The Taiwan trip did come up a little bit in the phone call yesterday with President Biden and President she She warned Biden he said, whoever plays with fire will get burned, and Biden re emphasized that the us UH opposes any change in the current status quo or any undermining of the peace and stability across the Taiwan straight. So it would be interesting to see if the Speaker goes, what and how does Beijing wind

up retaliating. Yeah, it seems like we've really seen a build up of tensions, even with the Speaker Pelosi not even confirming whether she's going to go to Taiwan. If we do get an in person meeting between presidents Biden and She. Given the tensions that still exist between these two countries, what would the President hope to accomplish by going face to face with the Chinese leader? I mean, of the one thing that you hear from the White House a lot is that it's simply important to keep

the line of communication open between Biden and She. They are two leaders of two giant powers to giant economies, and they do need to be having these communications. There's certain efforts that the U s And China of course work on things like climate change, things like trade agreement, but there's also a number of points of tension where the US is trying to put pressure on China in terms of human rights abuses, in terms of you know, what's happening with Taiwan in the Taiwan Straight So it's

a very complex relationship overall. It would be interesting to hear what the White House would lay out for potential goals for a meeting ones one actually get scheduled. And of course, the other big source of tension here in the US is the economy still and now these latest GDP readings that seem to have given Republicans like on a silver platter, a new talking point against the White House.

Oh absolutely. I mean, you saw Senator Ted Cruz yesterday trying to actually introduce legislation just suffir me that two quarters of negative GDP equals a recession. Because you're hearing, of course, abiding come out very strongly against that, really pushing back saying that, you know what, the jobs markets looking really good. We don't have the National Bureau of Economic Research way in yet on whether or not this

is a recession. Um really trying to push hard against that, really trying to continue the narrative that the economy is doing well. But I mean, Nathan, you can message all you want when Americans go to the grocery store and they see the current levels of inflation, and I think that speaks more than any sort of messaging that the White House could be doing. So I'm really curious to see exactly how much being in a recession or not

being in a recession ultimately impacts the political fortunes of Democrats. Certainly, it's not preventing them, didn't prevent them from passing that fifty two billion dollar chips bill this week, and it doesn't seem to be slowing anything down as they consider that very large climate and healthcare package. Yeah, and I mean that's something that the President has said is going to be important to tamp down inflation and to keep the economy from going into what he considers a recession.

This new deal between Senator's Mansion and Schumer that had been left for dead just a couple of days ago. Yeah, this was a huge surprise for us in Washington that this deal was resurrected. We thought it was just down to a couple of healthcare provisions, but no, it's actually contains a substantial amount on climate as well as some

things that lawmakers wanted to do on taxes. Really, the big question right now where the Senator Kristensen must stand because if she opposes this, and she might because there are taxes, uh, tax changes in here that she does not like. Uh, is she going to potentially sink this? You still need all fifty senators. Just because you have Joe Mansion on board doesn't mean it's a guess if you have one other Democratic senator being a know in our last minute here, Emily, are they going to be

able to pass this without Republican votes? I mean, there's still a question about whether every provision in this really big bill, uh can pass under the reconciliation rules, right, Yeah, that's the other thing. The Democrats submitted the text to the Senate Parliamentarian. Remember, she's kind of the referee here looking through everything deciding if it can or cannot go through reconciliation. We're expecting to hear a ruling from her

potentially next week. Um. That could lead to Senators passing the bill. But it's still a bit of a question up in the air on what the timeline exactly is going to be here. The Senate was already supposed to be in next week. The House is getting ready to come back at some point in August after the Senate passes the bill. UM. So lawmakers are certainly being prepared

for that one. But yes, Nathan, I mean, if all fifty Democrats and all but three Democrats in the House are supportive of this, they can absolutely pass it without Republicans, all right. Bloomberg Government reporter Emily Wilkins keeping on top of everything in the nation's capital, even in the dog

days of summer. There is a lot going on in d C. And you can read a lot more about it on Bloomberg dot Com or on the Bloomberg Terminal and follow all the latest Bloomberg Radio in Washington Bloomberg ninety nine one and one oh five point seven FM HD two Wall Street Big focuses earnings after Amazon and

Apple came out with strong results. Nasdaq futures are on the rise by one point one percent, a gain of a hundred forty four points, SMP futures up thirty two points, and Dow futures are higher by a hundred nineteen points. That's a gain of four tenths percent. Exxon Mobile and Chevron both also came out with strong results. Those shares are climbing as well in the pre market, and the tenure Treasury is down six thirty seconds, yield two point six nine percent. The yield on the two year right

now two point eight six percent. Bloomberg Surveillance is next with Tom Keene, Jonathan Farrow, and Lisa brahmoys for Karen Moscow. I'm Nathan Hager, Happy Friday. This is Bloomberg