Bloomberg Daybreak: July 5, 2022 - Hour 1 (Radio)

bike to get around in Russia. Plus fireworks lit up the sky in New York. I'm Michael bar More ahead and I Scott Zachberg and the bets when the Yankees were off. Plus enough there on Wimbledon. I'll have that

more coming up in sports. That's all straight Ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius XM one nineteen and around the world on Bloomberger dot Com and via the Bloomberg Business Act. Good Morning on John Tucker in Moscow and US Dock Index futures are lower this morning. We are coming up to five oh one on Wall Street, and we check

the markets every fifteen minutes throughout the trading day. On Bloomberg SMP Future is down twenty two points down Future is down a hundred fifty nine and now Sday Future is down eighty four. The decks in Germany's down nine tenths of a percent. Ten year treasury down to thirty seconds yeld two point eight eight percent. They yield on

the two year two point eight six percent. NIMEX s crude oil is up one point one percent of a dollar twenty one at a hundred nine dollars sixty four cents of barrel comex school that'll change at eighteen o one forty announced and the euro one point oh three oh six against the dollar, the n one thirty five point eight three, John, and we'll have more on the markets in a moment. Care and the first we begin

in Highland Park, Illinois. We're a gunman opened fire on a rooftop up at an Independence Day parade yesterday, killing at least six people, wounding at least thirty others. Illinois Governor JB. Pritsker addressed the violence and in his carference, I'm furious. I'm furious that yet more innocent lives were taken by gun violence. I'm furious that their loved ones are forever broken by what took place today. I'm furious

that children and their families have been traumatized. Illinois Governor JB. Pritsker speaking to President Biden after the incident as well. All The President also addressed the tragedy, saying more it needs to be done to curb gun violence. We got a lot more work to do. We gotta get this under control. A person of interest in the shooting was taken into custody late yesterday after a lengthy man hunt in the affluent community of Highland Park. There was also

gun violence in Pennsylvania last night. Two police officers were shot in Philadelphia during festivities held near the city's Museum of Art. Philadelphia Police Commissioner Daniel Outlaws as the shooters motives were unclear. We don't know if this was ricochet from celebratory gunfire. We don't know if this was intentional. We don't know if this was someone taking a shot

intentionally at these officers. Philadelphia Police Commissioner Daniel outlaws. As the officers have been treated and released, all right, Johnny turned out to Washington and the Biden administration could roll back some tariffs imposed by former President Trump. Senior U, s and Chinese officials discussed the matter last night, and

what the White House calls candidate substantive discussions. There are expectations that the administration could remove levies to help these price increases on consumers, and we get more in this story from Bloomberg's Roof sin Horn. People familiar say that the White House has actually asked companies to make a commitment that if the US agrees to ease some of these tariffs, that companies will then pass those savings through

two consumers. But people familiar say that executives of these companies said, well, no, we're not going to make that kind of commitment, and Bloomer's design Horner forts there are currently US tariffs on hundreds of billions of dollars in Chinese goods. However, senior members of the Biden administration appeared divided about the need to lift levies and US futures. Reacting positively initially to news of the US potentially lifting towers,

they have since erased those gains. Still, the news is good for satiment. According to Dpac Mira, whose head of investments at Commercial Bank of Dubai, it's the recognition that the government is very conscious that they need to act on the supply side of the inflation issue because the FED has been slamming the brakes on the demand side, whereas the real issue is the supply. So I think trying to fix that issue is giving the markets a bit of ease and comfort that you know we are

finally addressing the problem where where it is. Commercial Bank of Dubai's Dpac Mirrors says he expects the FED to keep hiking rates and slam the brakes on demand well. John. Turning to the economic outlook, one Goldman Sack strategist says the base case expectation is not for a US recession. God Pray gil Is, macro strategists for Global fixed Income at Goldman Sax, said management. She says, we may get a recession, but opportunity for investment will depend on its magnitude.

We do expect continued monitory tightening. You may well see a technical recession, but what really matters when you're thinking about the investment landscape and opportunities and fixing consectus is the magnitude and instead of the characteristics of that recession. Goldman sacks macro strategistic or preate gil like expects growth to level off as rates had higher, and another major bank painting a grim picture for the economy. Boombergs really be young, joins us live with that story. We need

the good morning, Good morning John. With the recent drop in bond yields, investors are betting the FIT makes are less hawkish if inflation peaks in the second half of the year, but Morgan Stanley says any drop in interest rates should be interpreted as more of a growth con stern rather than the FIT giving relief strategists. They say, if macroeconomic data do not confirm a recession, then equity markets could rally further. But if growth were to pull back, they say the S and P five may sink to

three thousand points. That's about twenty two percent below its latest close. Live in New York, I'm really need a young Bloomberg daybreak. All right, we need to thank you for looking at oil now. City Group is worrying that crewe could collapse to sixty five dollars a barrel by the end of this year and slumped to forty five dollars by the end of next year. That's if we

get hit by a demand crippling recession. The outlook is based on the absence of any intervention by OPEC and checking prices now, Ninemex screwed oil higher, up seven tenths percent at a hundred nine dollars fifteen cents of barrel. Brent is down half per cent of a a hundred twelve dollars ninety two cents, and overseas European equities they've turned

lower after some initial optimism. Euro this morning weakening to the lowest level against the dollars is two thousand three and mean time in Asia stocks climbed overnight, and the futures this morning, as we said, moving lower. John SMP futures down twenty points right now, DAL futures down one forty, NASTACK futures down seventy nine, and Bitcoin is up four ten percent at nineteen thousand, eight hundred dollars. Straight and hand your latest local headlines plus a check of sports,

and this is Bloomberg. Thanks Karen, five O seven Wall Street can't time to bring in Michael Barr with Bora. What else is going on to New York end around the world, John, Thank you very much, Sarah. It was a fireworks show that did not disappoint. About three million people watched the Macy's fireworks show over the East River in New York City last night. One man from Queen's watching the show told a v C seven that we

are resilient because we have survived a lot. W NBA player Britney Griner wrote the President Joe Biden, pleading with him to bring her and other Americans detained in Russia back home. According to the Associated Press, Grinder told Biden in the letter that she is terrified that I might be here forever. Representative for Grinder delivered the letter to the White House. Another step closer to joining NATO, Finland and Sweden foreign ministers are in Brussels today for the

signing of the NATO accession protocols. NATO Secretary General Yen Stoltenberg open the meeting in Brussels today and we will formerly sign the protocols of accession. This marks the start of the ratification coursis. NATO's Yen Stoltenberg called today historic for Finland, Sweden, and NATO. The federal judges ruled in favor of three major US drug distributors in a two and a half billion dollar lawsuit, which had accused them

of causing an opioid crisis in West Virginia County. The suit said Mckeeson, Maris, Source Bergen, and Cardinal Health distributed eighty one million pills over eight years in Cabell County ravaged by opie weight addiction. President Biden awards the Medal of Honored for Army soldiers today. They're being honored for their heroism in Vietnam. They include retired Major John Duffy, who was wounded twice during an ambush but refused to

evacuate until the enemy could be subdued. Intudos awards are appreciated. They're recognizing your endeavors, your duty that you've done, and the the pride you have in your uniform that you've

earned in combat. Along with retired Major Duffy, retired Specialist to white Birdwell will be honored and will be the first Native American awarded for service in any conflict since nineteen Global News twenty four hours a day on air and on Bloomberg Quick Tank powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Mike bar In, this is Bloomberg, John Michael, thank you. It's on Wall Street. Time for the Bloomberg Sports Update.

Good morning, Scott Seidenberg. Thanks John Tyawana Walker struck out nine in at six innings as the Mets beat the Reds yesterday seven four. Brandon Nimo and Francisco Lindor pulled homeward off Red starter Hunter Green, who has now allowed a Major League leading twenty two home runs this season. The Mets are the first n L team to fifty wings. Brandon Nimo on the team's first half success been a

good first half. I don't think anybody would complain about it, but we also know that we have places that we can get better and that, you know, opportunities that um, we haven't taken advantage of. So to know that there's more in the tank, especially with Jake and Max coming back and Max Scherzer comes off the i L to make the start tonight his first since leaving the game back on May eight. Team the Yankees were off yesterday Tonight Jamison Tyone faces his former team the Pirates Tennis

at Wimbledon. Rafa Nadal and Nick Curios advanced to the men's quarterfinals and a fourth of July tradition, as Joey Chestnut wins his fifteenth Nathan's Hot Dog Eating contest despite being interrupted by a protester midway through. Chestnut down sixty three dogs to win his fifteenth title in the last

sixteen years. I'm Scott Zeedinberg with Boomberg Sports. John all right, thanks Scott, and ahead of the market open, we did to see some green on the screen initially with US futures right now they are lower down futures turning down one dred ninety points. That's a decline of six tenths of per percent. SMP E many futures they're down twenty six points, that's down seven tenths per percent. And then as eighty many futures one points glory that is down

nine tenths of a percent. The Euro one oh three eleven that is down a four percent against the dollar. His dollar d x y seems strength, and of dollar that's up eight tens of a percent. You're listening to Bloomberg Day day Break brought to you by New York Community Trust. Your name will live on as a champion of the causes you care about for years to come. To a chantable bequest to the New York Community Trust.

Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out, and at Bloomberg Quick Tape. This is a Bloombern business lash and I'm Karen Moscow. US dot Index futures and European equities are falling. It is concerned over the possibility of a recession. Outweighs optimism over US China talk saimed at tariff reductions, the Euro at a twenty year low. We checked the

markets every fifteen minutes throughout the trading day. On Bloomberg SMP future is down nineteen points down, futures down a hundred thirty six nasday futures down seventy five the decks in Germany's down nine tenths of upper cent and your treasury up one thirty second yield two point eight seven percent, a yield on the two year two point eight five percent. Nine max screwed oil is up seven tenths percent or

seventy two cents at a hundred nine dollars. Thirteen cents of barrel co Max school is up tenth of upper cent or two dollars at eighteen o three fifty. Announce the euro one point oh three one three against the dollar again one thirty five point seven too at a British pound is at one point to zero four nine. Looking at bitcoin, it's up seven ten percent at nineteen thousand, nine hundred dollars. That's a Bloomberg business flash. Now here's

Muchael Barr with more on what's going on around the world. Muchael, Good morning, Good morning, Karen. Police. A gunman on the rooftop opened fire on an Independence Day parade in suburban Chicago, killing at least six people, wounding at least thirty, and sending hundreds of marchers, parents with strollers and children on bikes fleeing in terror. Police and Island Park say a person of interest, twenty two year old Robert Bobby cree Know,

is now in custody in connection to the shooting. In Philadelphia, two police officers were shout and wounded during Fourth of July festivities held near the city's Museum of Art. So far, new arrests have been made in baseball, the Mets one, the Red Sox, Orioles and A's also one. The Nationals lost along with the Giants. Global News twenty four hours a day on air 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, John, Michael, thank you. It is five nineteen on Well Straight. We are live for the Bloomberg Injuranto Broker Studios. This is Bloomberg Daybreak. US markets reopening this morning after camping at Lemon declines in the past thirteen weeks. Let's get you set up for the trading day head this morning. I'm happy to say we're joined now by Dennis Gartman, economists the University of acron and Downmand Chair, former publisher of

The Garment Letter. Dennis, I hope he had a great four ear good Tuesday morning to you. Have we shifted from inflation fears now to recession fears for investors? I don't think there's any question about that. We are. We are clearly shifting to recessionary concerns, and well we should. Inflation seems to be a baiting. Take a look at the green markets, they've turned lower. Take a look at at crude oil and as it's trading a hundred nine dollars a barrel instead of a hunting twenty two dollars

a barrel. Take a look at the lumber it's down a rather substantially. Take a look at livestock prices, they're down over over time, things seem to be changing. And I pay a lot of attention to what happens in the grain markets, more than perhaps most other people do because they are so international in scope. But the news had been because of the war in uh in Ukraine, everybody wanted to be bullish of of the grain markets, and they've clearly topped out and gone to a lower concern.

So I think recession is a far greater concern at this point. The Fed has begun the process of quantitative tightening rather than quantitative easing. The SAID clearly wants to raise the overnight SAID funds rate another seventy five five basis points, But far more important is what's going on in their quantitative tightening circumstances where they're gonna have to be either selling or rolling off sixty five billion dollars

worth of the treasury securities on a monthly basis. That was the fuel that that that fueled the bull market in stocks, that was the fuel that fueled the bull market in the economy, and that is the fuel that's being taken away. So I think you have to be very careful. As the chairman of the University of ackmansendowmant I pushed the university to to sell about twelve of its portfolio of equities out of its endowment at the end of the last year. And I see no reason

to change my opinion on that point. As I've always said, in the bearer market, here, she who loses the least will be the winner. And right now, that's the that's the operative opportunity, that's the operative circumstance. Here, she who loses the least will be the winner. Jumping in in any rally in the bearer market, is that fool's errant? Yes, So I think it's a fool's errand I think that you have to instead of For for long period of time,

while Tina was the answer, there was no alternative. Tina has now become she's moved to the sidelines. Now there is an alternative. Higher interest rates are are are going to stap money out of the stock market. I think, as I said, the Fed is tightening monetary tightening monetary policy, and and so rallies and equities are to be sold into weaknesses, not to be bought. That's that may change in another three, four or five six months or so. The average duration of a bear market tends to be

postal a year in duration. We started this on January five. We have another five or six months to go on the downside. How far much the lower stocks can go as anybody's guest, but I think the trend is from the upper left of the lower right well with slowing growth. I mean, does this alter the federal reserves trajectory at

all over time? It shall, no question about it. But they they've told us, they made it a bundantly clear that they intend to raised the overnight said funds right at least seventy five basis points of the July meeting. They made it I think reasonably clear that they intend to raise another fifty basis points at the meeting. After that, they have to remain consistent and not back down from

what they said in the past. So I think that the said funds rate goes another seventy and maybe a hundred twenty five basis points from here, then maybe later in the in the autumn, maybe later in the winter, the SAD can change his policies. But right now that has made it abundantly clear that it intends to raise the overnight said funds right, and it really has to do so, otherwise it loses credibility. Can you deliver probability

of recession? If so, how long, how deep? Well, I've always said, since for the last three months, I said the odds of a recession in two or sixty seventy as long as if the overnight said sounds rate moved to an inversion and if the spot rate of w T I got above a hundred nine dollars a barrel were both. Clearly, we've been about above a hundred nine dollars a barrel. We have not gone to an aversion yet.

So I'll continue to hold the fact that we've got a sixty to seventy percent probability of recession in two al raised at the greet because of the classical definition that a recession requires two consecutive declines in GDP for quarter over quarter, the second quarter GDP will probably be marginally higher. So given the fact that the first quarter GDP was negative, second quarter GDP will probably modestly positive.

So it means that in order to justify the classical definition, we have to wait till the second, third or fourth quarter this year, and I think both those quarters will be negative GDP growth. Dennis, always a pleasure. Thanks for being with us this morning. Dennis Garment, University of Acronym downmand Chairman, former publisher of the Garpment Letter. Ahead of the cash elten on Wall Street futures right now in

the red. The down futures down half a percent, one sixty five points lower, SMP evening futures down twenty two. That's down six tenths percent. Nancant futures eighty four points slower. That is down seven tenths of eight percent. Dollar d x Y that is of eight tenths of a percent continued dollar strength. Do y're all one oh three? That's down one percent. This is Bloomberg Bloomberg Daybreak, brought to

you by the New York community. To trust your name will live on as a champion of the crosses you care about for years to come through a charitable bequest

to the New York Community Trust. Learn more at Philanthropist dot n y C criadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg vom Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one O six one does San Francisco, Bloomberg NUN sixty to the Country, Sirius XM Cho one nine and around the globe, the Bloomberg Business apt and Bloomberg Radio dot Com. This is Bloomberg Daybreak. Yeah, it's finally thirty on Wall Street. Good morning. I'm John

Tucker and I'm Karen Moscower. Just about four hours away from the open of you West Tray Daying. Let's get you have to day on the news you need to know at this hour. We begin in Highland Park, Illinois, where a gunman opened fire on a rooftop at an Independence Day parade yesterday, killing at least six people and wounding at least thirty others. Illinois Governor JB. Pritsker addressed the violence in a news conference. A little while ago,

I spoke with President Biden, who pledged all support. The White House can provide the President agrees with me, this madness must stop. Illinois Governor JB. Pritsker, a person of interest in the shooting, was taken into custody late yesterday after a lengthy man hunt in the affluent community of Highland Park and now turning to Washington, this were the Biden administration could roll back some tariffs imposed by former

President Trump. Senior US and Chinese officials discuss the matter last night and what the Lighthouse calls candidate and substantive discussions. There are expectations from the White House that removing levies could help ease inflation pressures on consumers. John turning the economy now, we may get a recession, but opportunity for investment could still be positive, depending on the magnitude of the slowdown. That's according to Goldman Sacks, macro strategist for

Global Fitioned Income g freat GIL. Either way, she says, the labor market will feel a pinch. We'd say that the sandwich in sastety. We're going to have to monitor the data closely. The expectations for this show is for the unemployment rate to I mean stable, but both the pace of job games to motivate and Goldman sax macro Strategistic your preate Gil expects growth to level off as

rate head higher. Meantime, another major bank painting a grim picture for the economy and Bloombergs were neither young joins us Live with that story. We need the good morning, Good morning John. With the recent drop in bond yields, investors are betting the fit may turn less Hawkis if inflation peaks in the second half of the year, but Morgan Stanley says if any drop in interest rates happened, it should be interpreted as more of a growth concern

rather than the Fed giving relief. Strategists there say if growth were to pull back, the may sink to three thousand points, that's about below its latest clothes Live in New York. I'm gonna need a young Bloomberg day break. We need to thank you. And looking at oil this morning, City groups warning crewde could collapse to sixty five dollars a barrel by the end of this year and slumped to forty five dollars by the end of next year

should a demand crippling recession hit. Checking prices right now and now I'm x screwed oil love about half percent at a hundred eight dollars ninety three cents of barrel Brent is lower and a hundred twelve dollars seventy four cents your local headlines straight ahead and this is Bloomberg, all right. Thanks Carty three on Wall Street. Time to bring in Michael bar with more on what else is going out of New York and around the world. John, thank you very much. It was a fireworks show that

did not disappoint. The May Seas fireworks show lit up the sky over the East River in New York City Line US night. About three million people watched the show. After more than four months of ferocious fighting, Russia claimed full of control over one of two provinces in Ukraine's eastern industrial heartland. However, there are signs Russia is sustaining heavy losses. Another step closer to joining NATO. Finland and Sweden foreign ministers are in Brussels today to start the

ratification process. NATO Secretary General Yen Stoldenberg open the meeting in Brussels. This is truly unhistoric moments for Finland, for Sweden and Fort NATO. NATO, Jen Stoltenberg w NBA Star Britney Grinder sent a letter to President Biden. Grinder, who is being detained in a Moscow prison, told the President,

I'm terrified I might be here forever. Grinder adds she misses her wife, her family, and her teammates, while making a direct plead to the President, writing I realize you are dealing with so much, but lease don't forget about me and the other American detainees. President Biden awards the Medal of Honor to four Army soldiers today for their

heroism in Vietnam. They include retired Specialist to White Birdwell, who took enemy fire to his face and torso but still managed to get his commander to safety and disrupt the enemy assault. Quite a way to celebrate the fourth saved my fellow serviceman. I did it twice. Went into an enemy hell bellis at night, couldn't see. The only light was elimination from the enemy fire at our fire.

Retired Specialist to Wade Birdwell will be the first Native American awarded for service in any conflict since ninety three. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analysts more than twenty countries. Michael Barr And this is Bloomberg Own, Michael, Thank you, Yes how five thirty five on Wall Street Tips. Time for the Bloomberg

Sports Update, and you're Scott Seidenberg. Good morning, John. Another solid outing from Taiwan Walker as he struck out nine in six innings as the Mets beat the Reds yesterday seven to four. Dom Smith, who had a two run double in the game, talked about Walker afterwards. I think it's been awful. He's just selling like uh what he said his last year when he was an All Star, So it's something that he's capable of doing. Brandon Nemo

and Francisco Adore both homered in the win. The Mets are the first n L team to fifty wins this season. And tonight, welcome back Max Scherzer, making his first start since leaving the game back on May eight. Team the Yankees. Meanwhile, we're off yesterday Tonight, Jamison Tyone faces the Pirates, his

former team. Tennis at Wimbledon, Rafa Nadal and Nick Kurios advanced to the quarterfinals and a fourth of July tradition as Joey Chestnut wins his fifteenth Nathan's Hot Dog Eating contest despite being in a opted by a protester midway through Chestnut down sixty three dogs. When his fifteenth title in the last sixteen years. I'm Scott Seedinberg with Bloomberg Sports. John all Right, Scott, thanks a lot. It's five thirty seven on Wall Street. Time down for the Bloomberg Tri

State Business Report. For that We're joined by ed Query. The Hampton's COVID era buying frenzy is the thing of the past. May sales numbers were lackluster, according to a Douglas Element report, with new signed contract for single family homes down thirty eight percent from last May. Even his fourteen percent more listings came onto the market. Sales at Prent de mon J cafes near Wall Street are still

only half of what they were before the pandemic. As COVID cases increase in New York City, the new wave is curbing bags ambitions to bring workers back. Bloomberg's Prett Index shows that transactions in New York's financial center have hovered around the fifty percent mark for weeks. Givon She has opened its first location town to New York's Soho neighborhood, Located at nine Green Street, The thirty square foot boutique is the brand's sixth freestanding location in the Americas and

the first to open in four years. It's also givon She's second Manhattan location. That your Bloomberg Dry State Business Report. I med Corey. Alright, thanks said. It is five thirty seven on Wall Street, and Bloomberg Radio is on the year from San Francisco to New York, London to Hong Kong. Let's check in now with our global news team for some of the top stories heard on our three hundred

at Philligate radio stations around the world. Corney Donaho on ktr H in Houston City Bank is warning oil may collapse to sixty dollars for recession heads. I'm Gina Servetti and for wfl A in Orlando. We're looking ahead to Friday and the June jobs report. IM mace Mateo and on KYW in Philadelphia, I'll be reporting on how Hollywood cutbacks could affect your viewing pleasure. I'm Stephen carl and

Bloomberg d A Begical Radio in London. We've been reporting on shares surging for the German gas giant Unipower after Bloomberg report it talks over a government failu. I'm in gory on w w J in Detroit. I'm reporting Kellogg he's lost a bit to block the UK's new curbs on the promotion of unhealthy food and those are some of these stories are twenty seven Bloomberg journalists and analysts are working on this morning around the world. It's five

thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. Later in July, the U s public health emergency that's been in place since early is scheduled to end. One unanticipated consequence, millions of Americans could lose their health insurance. Here's why. In the early days of COVID nineteen, the government offered states extra Medicaid funding so long as they didn't boot anyone off the program during

the public health emergency. Whenever the emergency ends, and it could be extended further, states will need to restart eligibility assessments for more than eighty million Medicaid beneficiaries. Millions could lose their coverage in the process. Federal and state officials will need to work closely to prevent this from happening. For example, the federal government could phase down its extra medicaid payments slowly, encouraging states to reassess their rosters more methodically,

and reducing the risk of administrative errors. Pandemic error spending won't last forever, but lawmakers can smooth the transition to avoid a crisis. This editorial was written by the Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg Opinion, please go to Bloomberg dot com, slash Opinion or ope and go on the Bloomberg terminal. These has been Bloomberg Opinion and Bloomberg Opinion Editorial is going to be heard

every week day at this time. Terminal customers can read more at op I an go ahead of the cash open on Wall Street. The dawn of futures on four point slower. That's down half a percent, as and p E many futures down twenty points. That's down half of percent. Yeah, the domesday futures seventy six points lower, that is down seven tenths of a percent. Euro at one oh three down one percent against the dollar. Dollar d x Y showing strength this morning up nine tenths of a percent.

You're listening to Bloomberg team break still ahead of the US rolls back terrafs on Chinese goods, we'll have much of an impact on inflation. We'll put that question to end occurring the chief the ancient economics correspondent for Bloomberg News, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quick Tape. This is a Bloomberg business lash, and I'm

kerin Moscow and yous Dock. Index futures and European equities are falling as concerned over the possibility of or accession outweighs optimism over US China talks aimed at tariff reductions. The Euro around at twenty year low. We checked the markets every fifteen minutes throughout the trading day on Bloomberg Guess and p future is down twenty two points down, futures down one hundred sixty two and NASDAG futures down

eighty eight. The decks in Germany's down one point two percent, The ten year treasury down three thirties seconds, yield two point eight nine percent yield on the two year two point eight eight percent Nimex screw oil little change at a hundred eight dollars thirty seven cents of barrel comics gold is a tenth of a percent or two dollars fifty cents. At eighteen o four announced the euro one point oh two nine one against the dollar, the British found one point two zero three seven and the end

of one thirty five point seven three bitcoin. It's lower down four ten percent at nineteen thousand and six hundred seventy dollars. That's a bloomberg business flash. Now here's Muchael Barr with more on what's going on around the world. Muncale Karen, thank you very much. A gunman on the rooftop opened fire on an Independence Day parade in suburban Chicago, killing at least six people, wounding at least thirty others.

Police and Island Park said. The man, named as a person of interest and the shooting, was taken into police custody last night after an hour's long manhunt. To Philadelphia Police officers have been released from the hospital after they was shot during the Fourth of July celebration where they were working security. It is unclear whether the shootings were intentional, and there have been no arrest so far. In baseball, the Met's one, the Red Sox Orioles and A's also one.

The Nationals lost along with the giants. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, John, Michael, thank you. It is five forty nine on Wall Street.

We are live for the Bloomberg interrant to Broker Studios, Well investors sentiment was getting a bit of a lift this morning on where the Biden administration may be close to cutting tariffs on Chinese goods and a current is our achieved Asia Economics correspondent joining us this morning with the tails, So what do we do at this point? And so John, there are a couple of things going on this morning. We had a read out of the

coal between top of US and Chinese economic officials. On the Chinese side led by the Vice Premier and the U s I led by the Treasury Secretary. They discussed tariffs on goods, They discuse functions, and they discussed every where there could be perhaps corporation around ensuring global supply

chains are functioning smoothly. And they're like, we didn't get much more details and that, but that call was the first such calls in October, and it does add momentum to this idea that our colleagues are reporting out of Washington that the Biden administration moving towards listening tariffs off

at least some Chinese goods. Now, we don't yet have the exact details on what's coming down the pipe there in terms of what good it will be, will it be industrial or consumer, and by how much of those tarr will be reduced, and what kind of time frame it will be unindeed whether or not China will reciprocate.

But you know, as you say, on a headline basis, it looks like some progress on China US trade talks, but fairly incremental, and I would I wouldn't say it changes the overall back drop of tension between both governments. Would this be unilateral or do we have to wait for China move to move We don't have a sense on that from more reporting, Yes, John, I mean you'd have to think on the U S side, for example,

this is being driven by the inflation story. Is there? However, economists this morning we're actually reacting that if you were to roll back these twers, the impact would be fairly music in terms of what it would do to bring down US inflation, in which case you got to have you have to have ben how much of very political hit with President Bible will take go into the own mid term elections over there. So there's a lot that

he has to consider about in terms of US. He doesn't want to be seems being soft each on it, in which case are very the question what would trying to do in return? Would they do anything in return? I think that's going to become one of the talking parts we have reported out of Washington before that they there might be a call between she and Biden over the summer months, or perhaps we might get detailed closer to them. Hey remind everybody when the terrorists were imposed

in the first place. The broad back DUP was complaints of unfair trade against China by the US government under the then President Trump. Be thinking was that China undervalues its currency, that they don't allow fair access to its markets, and of course they were accused of staff drive intellectual property China, of course pushes back on those charges, but nonetheless the U S push ahead with tariffs on merchandise,

goods and good divorce under building US dollars. It didn't do much about to slow Chinese exports to the US. In fact, Chinese exports and trade circlets grew during the pandemic given the appetite for the US consumers to bide on goods. I should say, by the way, on the flip side, if the cars do come down, neither are they expected to do much for shiny manufacturers this time. They are suffering now from slowing demand and in the

U S T T inflation. And again this morning most people were saying that the stars from down that won't really change our story either, all right, and will leave it there. Thanks very much for the up They appreciate it and the current Bloomberg Chief Asia Economics correspondent Karen, thank you and Bluebirg. Daybreak brought to you by in for Emnica and the Cloud. Your data has the power to do the extraordinary. Managed data across any location in

the cloud for accurate and actionable insights. More at Informatica dot com. It is five fifty two on Wall Street. Time for our Bloomberg the Law Report. Let's get to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger, co. Settlement filed in a New York state court indicates Google agreed to pay twenty two million dollars to resolve claims

of gender and racial bias in job assignments. A former North Eastern University employee accuses the Boston based school of filling its retirement plan with high costs, underperforming investments, and allowing the plan to pay excessive administrative fees. A music industry used release as the Copyright Royalty Board restored an increase in the royalty rate to be paid to songwriters

by streamers such as Spotify. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. All right, Jeff, thank you. Now. Another legal story we're watching.

On the last day of the term, the Supreme Court issued a blockbuster decision limiting the environment O Protection Agencies authority to reduce greenhouse gas emissions from power plants, handcuffing the Bonden administration and its efforts to tackle climate change. The decision was six to three down ideological lines, and the theory the court used to justify the ruling could

have serious ramifications for federal agencies. For more of the rstud in Grosso speaks to environmental law professor Pat Parento at the Vermont Law School. Pat President Biden called this another devastating decision that aims to take our country backwards? Is it that ruinous? Yeah, I don't think it's that bad.

I understand why he's saying that. I mean, you know, the sheer fact that the Supreme Court did not take into account the reason that e p A was adopting this rule, which was to deal with the existential threat of climate change, is jaw dropping. I mean, how can the court not take account of what the agency is

trying to do in the face of the threat? Right, So, Biden is right to say it's devastating in the sense that we don't have a court that is willing to seriously engage with the nature of the problem that regulations are trying to deal with. That is devastating, But the effect of the decision itself, that's not devastating. For example, e p A has right now in the works four other rules that are aim that coal fired power plants.

What I'm saying is, yes, e p A lost a major tool with the West Virginia decision, but they're not helpless. They have other ways of hastening the end of the coal era. And I do think Cole is the walking dead. I think we're going to be done with Cole within a decade. Even without this rule, the marketplace is already moving our energy system in the right direction. The Chief uses the so called major questions doctrine. This is the first time a majority opinion has explicitly used that doctrine

to justify a ruling. Yes, this new version of major question is problematic because you know, we don't know what major means. You know, a rule can have major effects that could be beneficial. You know they're big, but they're good. The Court doesn't distinguish between something that's big and good or big and bad. It just sort of says, if an agency comes up with the confused anyway as a

new interpretation of an old statue. And by the way, in the West Virginia case, Roberts goes out of his way to make fun of this provision that EPA is relying on He called it the backwater provision. It's like what I mean, it's the law Congress doesn't write statutes and say here are the really important provisions. The rest of them don't worry about it. So this is a matter of convenience for the court if it doesn't like

the rule the agency has adopted. If the Court majority thinks an agency is quote driving outside its lane or arrogating new authority to itself, then it's going to say, that's a major question. We give you no difference. We're going to rule as a matter of law, you just

simply can't do it. And as Professor Pat Parento at the Vermont Law School speaking with the Bloomberg Student grounds, So catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading the show at Bloomberg dot com slash podcasts. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b Law. Go s ANDP futures lower this morning,

down about eighteen points down. Futures are down one every thirty one, and NASDAG futures down as seventy two. The ten year Treasury down four thirty seconds, yield two point eight nine percent. A yield on a two year is

at two point eight nine percent as well. Not an ex screwed oil up tenth of upper cent or fifteen cents at a hundred eight dollars fifty seven cents of barrel and comex school the tenth of upper cent at eighteen oh three thirty announce Still ahead on Bloomberg day break and check on the business headlines and all the news you need to start your day. And this is Bloomberg