Bloomberg Daybreak: July 5, 2022 - Hour 2 (Radio)

President Biden could get around of Russia. Plus fireworks lit up the sky in New York. I'm Michael Barr more ahead, and I'm Scott Zegenberg and the Mets when the Yankees were off. Plus enough they on Wimbledon. I'll have that

more coming up in sports. That's all straight Ahead on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius x M one nineteen and around the world on Bloomberg Radio dot com and via the Bloombird Business APT And Good Morning, I'm John Tucker. And I'm Karen Moscow us Kendeck's futures are lower this morning.

We're coming up to six one on Wall Street. Let me check the markets every fifteen minutes throughout the trading day. On Bloomberg Guess and P Future is down nineteen points this morning. Now Future is down one and nasday futures down seventy five. Ten year treasury down four thirty seconds. You had two point eight nine percent yield on the two year two point eight nine percent, the euro one point two nine seven against the dollar, the N one thirty five point eight four, John, and we'll get to

more of the markets in a moment. For first, Karen, we begin in the Highland Park, Illinois, where a gunman opened fire from a rooftop at an Independence Day parade yesterday, killing at least six people, wounding at least thirty others. Illinois Governor JB. Pritzker addressed the violence at a news conference. I'm furious. I'm furious that yet more innocent lives were taken by gun violence. I'm curious that their loved ones

are forever broken by what took place today. I'm curious that children and their families have been traumatized Illinois Gavin J. V. Pritsker spoke to President Biden after the incident. The President also addressed the tragedy, saying more needs to be done to curb gun violence. We got a lot more work to do. We got to get this under control. A person of interest in the shooting was taken to the custody late yesterday after a lengthy man hunt and the

community of Highland Park. There was also a gun violence in Pennsylvania last night to police officers shot in Philadelphia during festivities held near the city's Museum of Art. Philadelphia Police Commissioner Daniel out Law says 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.

Police Commissioner danielle out Along, saying the officers have been treated and released. I'm not turning to Washington. John the Biden administration could roll back some tariffs imposed by former President Shrump. Senior US and Chinese officials discussed the matter last night and what the White House calls candid and

substitutive discussions. There are expectations that the administration could remove levies to help these price increases on consumers became more In this story from Bloomberg's Bruce Einhorn, people familiar to 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 Bloomberg spruces. Einhorn reports there are currently US tariffs on hundreds of billions of dollars in Chinese goods. However, senior members of the Biden

administration appear divided about the need to lift levies. Well, initially futures were acted positively to these potentially lifting tariffs, they've since erased those games still that it was good for said about According to dpak Mara, who's 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 an ease and comfort that you know, we are finally addressing the problem. Where where it is Commercial Bank of device depect mirrors is he expects the FED to keep hiking rates and slam the brakes on demand. Turning to the economic outlook, John one Goldman SAX strategist, said the base case expectation is not for a US recession to great gil As, a macro strategist for Global fixed income

at Goldman Saccess, said management. She says, we may get a recession, but opportunity for investment will depend on its magnitude. We do expect continued monkey tightening. You may well see a technical recession, but what really matteres you're thinking about the investment landscape and opportunities and fixing conceptus is the magnitude And instead of the characteristics of that recession gone macro strategist, your pretty Gil expects growth to level off

as rates head higher. Another major bank painting a grim picture for the economy, and Bloomberg's reneily Young joins us Live with that story really the good morning, Good Morning John. With the recent drop in bond yields, investors are betting the Fed may turn 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 concern rather than the Fed giving relief.

Strategists there say if macro economic data do not confirm a recession, than 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 below its latest clothes Live in New York. I'm real need a young Bloomberg daybreak. I need to thank you. Looking at oil now, city Girl was warning that crude 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 OPEQ and checking prices now, nine X screwed oil of a quarter percent at a hundred eight dollars seventy cents of barrel. Brent is down one percent at a hundred twelve dollars thirty five cents. Overseas, European equities have turned lower andrew some initial optimism. The earl this morning, weakening to the lowest

level against the dollars since two thousand three. Meantime, at Asia, stocks climbed overnight and John futures are lower. SNP future is down about seventeen points a Dow futures down one twenty seven and NASTAC futures down sixty four. The decks in Germany is down one percent. Ten year treasury down five thirty seconds, the yield two point nine zero percent and the yield on the two year two point eight

nine percent. Comes Gold is higher, up about a tenth of a percent, and one thousand, eight hundred three dollars announced the euro one point two nine six against the dollar, and checking bitcoin, it is down a tenth of a percent at nineteen thousand seven twenty dollars. Straight ahead, your latest local headlines plus a check of sports, and this is Bloomberg. Thanks Karen six wall Street, and that's time to bring in Michael Barr and I find out what

else is going on a New York and around the world. Yeah, thank you very much. Siria 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. The inn my p D said deployment was robust at the show that went off peacefully. W NBA player Brittney Grinder wrote to President Joe Biden, pleading with him to Bringer and other Americans detained in Russia back home.

According to the Associated Press, Grinder told Biden in the letter that she is terrified might be here forever. A representative for Grinder delivered the letter to the White House. After more than four months of ferocious fighting, Russia claimed full control over one of the 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 for the signing of ratification protocols. NATO Secretary General Yen Stoltenberg opened the meeting in Brussels Diday. We will formally sign the propicals of accession. This marks the start of the gratification courses NATOS. Jen 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 the West Virginia County. The suit said, and the cussing maryor Source, Bergen and Cardinal Health distributed eighty one million pills over eight years in Cabell County, ravaged by opioid addiction. Attorney Rusty Webb represents the county and the city of Huntington's Naturally, we're extremely disappointed for the city

of Huntington, who's had to undergo so much devastation. Attorney Rusty Webb says Huntington and Cabell County had asked for two point six million dollars were so called abatement. That money would have provided for drug education, prevention, treatment, and law enforcement for the next fifteen years. 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, as how six ten on Wall Street any time to the Bloomberg Sports Update. Here's Scott Seidenberg. Thanks John. Taiwan Walker struck out nine in a six sinnings as the Mets beat the Reds yesterday seven four. Brandon Nimo and Francisco Lindor both 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 wins. 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 a mantage 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 eighteen. The Yankees were off yesterday. Tonight, Jamison Tyone faces his former team, the Pirates Tennis That Wimbledon rap on the Doll and Nick Curios advanced to the men's quarter finals and a fourth of July tradition, as Joey Chestnut wins his fifteenth Nathan's Hot Dog Eating Contest despite being interrupted by a protester way through. Chestnut down sixty three dugs to win his fifteenth title in the last sixteen years. I'm Scott Zadinger with Bloomberg Sports.

John all right, thanks Scott, and ahead of the cash open on Wall Street, futures in the red right now down futures down one nine points, that's the decline of four tens of a percent. SMP even in futures down fourteen that's down four tens of a percent. But as the futures right now are fifty six points lower, that is down half a percent. Right now, the Wall Street fear gage volatility and that's still well below thirty slightly

elevated though this morning. And as we look at the four in exchange this morning, the yuro ever closer to parody with the dollar one oh two nineties six right now that is down one point two percent against the green back, and the dollar d X Y index dollar continues its strengthening path right now close to one percent you're listening to Bloomberg day Break, and just ahead on Bloomberg Daybreak, US markets reopen after capping eleven declines in

the past thirteen weeks. We'll be joined by Jeffrey U, senior market strategist at B and Y Melon. He'll weigh in on the markets, markets, headlines, and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Victape, She's a Bloomberg Business Lash and I'm Karen Moscow. US dot index, futures and European equities are falling as concerned over the possibility of

our recession. Always optimism over at US China talks aimed at teriff reductions, the heroes at a twenty year low. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP future is down seventeen points this morning, Down futures down a hundred twenty eight, and NASTAG futures down sixty seven. The decks in Germany's down nine tens of percent, the ten year treasury down six thirty seconds,

Hill two point nine zero percent. They yield him a two year two point eight nine percent, nine X screwed oil it's it'll change in a hundred eight dollars forty nine cents of barrel break is moving lower down one point two percent and a hundred twelve dollars eighteen cents. Comic school This it'll change and one thousand, eight hundred

two dollars announced. The euro one point oh three oh one against the dollar, British found one point two zero three four and the end one thirty five point nine five. Look at a bitcoin, it's down about a quarter percent at nineteen thousand, seven hundred dollars. That's a bloomberg business floush. Now here's Michael Barr with more on what's going on

around the world. Muchael, thank you very much, Karen. Police say a gunman on a 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 bicycles fleeing in terror. Police and Highland Parks say a person of interest, twenty two year old Robert Bobby Cremo, is now in cust in connection to the shooting in Philadelphia two police officers were shot and Moon did during Fourth of July festivities held near the city's Museum of Art. So far, new arrests have been made. Baseball, the Met's one, the Red Sox, Orioles and A's also won. The Nationals lost along with

the giants. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than hundred journalists and analyists more than a hundred twenty countries. Michael Barr and this is Bloomberg, Jo, Michael, thank you very much, six ninths you know well Street. We are live in the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. The US markets reopening today this Tuesday morning, after capping

eleventh of clients in the past thirteen weeks. Let's try to get you set up at the trading day ahead with Jeffrey u, a senior market strategist at B and Y Melod Jeff, have recession fears replaced the inflation fears at this at this stage of the economy, um it toutainly feels boining. So and the wakers a lot of survey data and hard data as well, and globally I

think that really is taking over. Yes, we do have some pockets of optimism, such as China trying to reopen and the tariffs and news, but I don't think they're getting the benefits to doubt by markets right now with respect of the tariffs and Chinese good's possibly being rolled back.

Could that practically ease inflation pressures? I think it'll take time for it to transmit, and a bearing in mind in terms of the policy response, it's not about inflation pressures that say, it's about inflation expectations, so tariffs and of people. It will take time for any tariff relief to um to be translating into cheaper prices the local supermarket, I think, whereas if people see their gas fights every single day, so I think that's where tariffs will help

over the medium term. I think that people need short term expectations management on inflation and otherwise they step back on their spending, and I don't think we're going to see that at the time being with a concern about possible recession ahead. Does this alter the course a hand for the Federal Reserve? No, we don't believe so, because there's a difference between expecting a recession in and of itself versus a recession and starting to drag down prices.

That we still believe that a lot of the supply issues, the labor be a good if those are the structural things in driving inflation. There's no guarantee right now that slower growth or even a recession can bring down inflation. And with that in mind, it's still imperative. And if they be said to keep its current course, and and if anything, you don't think the markets are appreciating how high they can still go. Well, is it a supply

or demanded issue with respect to inflation. It's sort of supply issue, and we see the bulk of it as a supply issue that cannot be um adjusted easily. And even if we do have demand come off, and we need to look at the distribution of demand, you know, where is the mond coming up? Will demand come off the areas you know which are impacting a supply? So? Can can the state afford to take that chance? Basically at this point and we just don't think it's fair yet.

If you look at from the pricing components in within the I SMS, for example, there's still very very firm with respect to the Wall Street sphere gage. The VIX still right now below thirty eight oh seven, just slightly elevated. We're told that it needs to go somewhere around forty before we see capitulation in equity markets. Your view, I'm

not sure I agree with that. You know, you don't really have to have capitulation in a in a meltdown manner, right, so you can have a sudden capitulation or you can have slow attrition based capitulations. I think those two are separate issues. If there's just going to be steady reduction whereby the flow of let's say, in a freshly available in less and cash fanball that just goes into bonds and rather than into equity, you just don't have the Pikes momentum to a support the levels in the SMP

which are necessary. So um, that can happen, you know, without a sudden unwinding of existing of them, of the existing positions. And also in a beerying in mind, there's not a whole lot of leverage in the system you need that collapse and for a rise in the victor as well, um and the overall centers. You know, and there is a lot of liquidity available yes, said is going to start to passively allow its balance you to

come up. There will be a liquidity withdrawal, but it's not actively happening in a way which could polatility higher if they can switch to foreign exchange. Just briefly to what extent is fex a litmus test for economies around the world. Um So it's interesting to say that is a a litmus test me there for economies or for central banks and how they deal with economies, because you look at any way the euro is behaving right now. I don't think that be on the Eurozone economy has changed.

But unlike what I just said about the FED, whereby high U S inflation irrespective of growth, and FED will react to that, we're not so sure about the or the market's not so sure about the ECB right now. Will the ECB they start to step back from higher interest rates? And because what about the growth trajectory in Europe? So that's far less confident. So that the ECB will do when it says it might do versus what the said will do. The v dot plots and I think

now that's what's pressing euro dollar right now. Do you get the sense in thirty seconds that emerging markets are unraveling. No, and on the contrary, we are starting to see in a gentle purchases of emerging market equity, so China and Hong Kong, you know, these areas and finding some games underlying iphon custody interests are showing up in the Philippines unit,

for example. So now there are pockets where And let's bear in mind being equity for bonds and markets weren't really the heavily invest in emerging markets anyway the last few years or so, so it's still probably a good environment that we need to wait and see. Oh it is a pleasure. Jeffrey You, senior market strategist at B and Y, melon with us this morning and ahead of the can showp on on Wall Street down futures one twenty nine points lower, the dollar d X y up

about one percent. Right now, you're listening to of Bloomberg day Break, and just ahead we'll have top stories and focus on the Marcus after eleven declients of the US in the past thirteen weeks. You're listening the Bloomberg day Break, broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg Living Freedom to Washington, d C, Bloomberg one to Boston, Bloomberg one oh six, one to San Francisco, Bloomberg No.

Sixty to the Country, Sirius XM to the one nine 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 John Tucker and I'm Karen Moscow. We are just about three hours away from the Open of US Training. It's time of the five Things that you need to know to start your day, brought to you by Interactive Brokers. Interactive Broker symbol ib k R Global Trader App. Deposit in your local currency

and trade stocks in the US, Europe and Asia. Start your free trial at ib k R dot com slash Global Trader. First, we go to 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. Prisker 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. Prisker, a person of interest in the shooting, was taken into custody lady yesterday. Now turning to Washington, there's worth the Biden administration could roll backs of terrorists imposed by former President Trump. Senior US and Chinese officials discussed the matter last night in what

the White House calls candid and substantive discussions. The rex with stations the White House that removing levies could ease inflation pressures on consumers. Well, John, looking at the economy, 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 Sax, macro strategist for Global Fixed Income g Preate Gil. Either way, she says, the labor market will feel a pinch. We'd say that the so

much sinsatainty. We're going to have to monitor the data closely. The expectations of this shoe is for the unemployment rate to I mean stable, but both the pace of job games to motivate. Goldman Sax macro strategistical Preate Yille expects your growth to level off as rates had higher. Meantime, another bank is painting a grim picture for the economy, and Bloomberg's reading the Young joins us Lie with more

we need a good morning, Good morning John. With the recent drop in bond yields, investors are betting the FIT may turn 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 concern rather than the FIT giving relief. Strategists there say if growth were to pull back, the SMP may sink to three thousand points. That's about below its latest close.

Live in New York. I'm really needing Young Bloomberg daybreak. All right, we need a thank you. SMP Future is lower down eighteen points down, futures down one every thirty six and as day Future is down sixties seven, the ten year treasury is down six thirty seconds. He had two point nine zero percent. That's the five things you need to know to start your day, brought to you

by Interactive Brokers, and this is Bloomberg. Thanks Karen six three on Wall Street time to bring in Michael Bard tell us what else is going on in New York and around the world. Yeah, and thank you very much, Seria. It was a fireworks show that did not disappoint. The Macy's Fireworks Show lit up the sky over the East River in New York City last night. About three million people launched the show. After more than four months of ferocious fighting, Russia claimed full control over one of the

two provinces in Ukraine's eastern industrial heartland. However, there are signs Russia's sustaining heavy losses. Another step closer to joining NATO. Finland and Sweden. Foreign ministers in Brussels today signed the protocols to start the ratification process. NATO Secretary General Yen Stoltenberg open the meeting in Brussels. This is truly an historic moments for Finland, for Sweden and fort NATO natos Jen Stoltenberg w NBA Star Britney Griner CENTERL led it

to President Byer a grand Biden. Rather. Grinder, who is being detailed in a Moscow prison help there, told the President, I'm terrified I might be here forever. Grinner added she misses her wife, her family, and her teammates. Frightening scenes at beaches coast to coast in recent days. Authorities in Suffolk County, New York, on Long Island temporarily closed a part of their shoreline over the weekend. A shark injured veteran lifeguard Zac Gallo during a training exercise, leaving him

with injuries on his hand and chest. I feel a sharp pain in my hand, and then as I pulled my hand in um, I felt something was still there. Lifeguard Zach Gallo, fighting for his life, eventually punched the shark and it let go. 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 command due to safety and disrupt

the enemy assault. Quite a way to celebrate the four saved my fellow servicemen. I did it twice. Went into an enemy hell village at night, couldn't see. The only light was elimination from the enemy fire at our fire.

Retired Specialist to white Birdwell would be the first Native American awarded for service in any conflict since nineteen seventy three Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. On Michael Barr and this is Bloomberg. John, Michael, thank you. And it's now six thirty six on Wolf Street. That's time for the Bloomberg Sports Update. Good morning, 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 home. He's just selling like uh what he said his last year when he was a lost star. So it's something that he's capable of doing. Brandon Nemo and Francisco a Door both

homerd in the win. The Mets are the first NL team to fifty wins this season, and tonight welcome back Max Scherzer, making his first start since leaving the game back on May eight, to Yankees. Meanwhile, we're off yesterday. Tonight, jameson Tayone faces the Pirates, his former Team Tennis at Wimbledon.

Laugh On and Alan 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 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 Bloomberg Sports. John all right, Scott,

thanks very much. It is now six thirty seven on wall Strade, and that's time to take a look at stocks, some of the names that are moving in the pre market. For that, we're joined by Bloomberg Radio TV Markets correspondent Kritty Gupta. Um, you may have just heard my interview with Jeff You Jeff you covers the waterfront from Barklay's

and also have specializes in foreign exchange as well. For b and why Melon, Um, can we look at the dollar strength this morning and maybe the implications for the broader market because foreign exchange is such a litmus test for markets. It totally is, and right now, I mean you're quite literally for for the folks who aren't looking at into date charts, you're quite literally seeing this kind of almost vertical move in the dollar this morning and

an almost inverse downside vertical move in future. So you can see very sensitive to that currency change. UM. But there are individual stocks as well that are starting or

are going to see that kind of ripple effect. Think about and multinational companies who majority of their businesses are actually abroad, and that when they actually make those profits abroad in China and Europe, they have to bring it back to the States flip it into dollars, and that of course can eat into some of their profits given the type of strength. So that's an important point for when you look at the flows. If you're a foreign investor or if you're a company making your money overseas,

you have to bring it to the US. You have to take that currency and by U S dollars, if the d U S dollars really strong, you're gonna wind up losing. You are gonna wind up losing UM and and that seems to be the consensus at least this morning, because take a look at some of the names that do have that dynamic at play. Nike, for example, n k s R taker down six tenths of one percent, Starbucks as well. Sp u X also down six tenths

of one percent. Microsoft, remember they warned about that dollar story. M s f T down about half of a percent. Even McDonald's, which isn't seeing as much movement this morning, but you really want to keep an eye on this one because it's about flat right now. M c D is your ticker. It has about sixty percent of its

revenue comes from abroad. So once again, this is going to be a story they're going to see pretty broadly as people talk about well global recession and of course what that means for dollars and at the end of the day, what that means for profits. As he pointed out dollar d X Y what up one percent right now? And you know, look at I'll get off the dollar in a second for exchange, but you're a closer to

parody with the dollar one too closer to parody. I mean, this is has massive implications when you talk about just how European assets are value. Remember this is an exchange that you haven't seen hit parody going all the way back to the nineties. So this does have ripple effects, and especially in commodity prices. Think about this. Europe really need commodities right now. They need natural gas, they need oil, and everything is priced in dollars. That makes it even

harder when it comes to the purchasing power there. And not to mention emerging markets which are can get battered with the stronger dollar. As as you what else is moving in terms of equity. I don't get too far afield, but no, it's okay. There's a lot going on here, so we have to like digest it. I want to take Cowen because this is going to be a major story. CEO w N is your taker up about eleven percent? This comes after the Toronto Dominion TV is set to

explore a takeover of the U S broker. So those shares seeing some optism this morning? Okay, maybe merger Tuesday. Bloomberg Radio on TV Markets corresponded critic goof that thanks for joining us looking at stocks on the whole head of the open. S and P futures right now down sixteen points, Stall futures eighteen points lower, and that as they Committy futures are down sixty four points. You are listening to Bloomberg day Break and just a hit on

Bloomberg Daybreak. Much more work to do. To stop gun violence. The headline from President Biden. We'll speak with Bloomberg's Joe Matthew, host of sound On. That's just a hint on Bloomberg tapreak, markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business lash and I'm Karen Moscow. Futures are lower this morning. We go to the First Word breaking news desk for today's morning call,

and here's Bill Mullow. Any Bill, good morning and good morning Karen. That's right. US features are and they're red right now with down features down a hundred and twenty four point says b drops seventeen and nest that features decline by sixty. The US ten year old at two point nine percent, Gold is down four. Oil and bitcoin are both trading a little changed, and Japan rose one percent overnight, where UP markets are down this morning, led

by one percent losses in France. Back in the US, on the economic front, at ten o'clock, factory orders and durable goods orders over the weekend, Tessa reported Q two deliveries that missed estimates. And another news the euro dropped to a twenty year low against the US dollar, Rapping things up. Fraurey was upgraded over at Jeffreys and Texas Instruments was put to hold over at dasy Bank. Live from the first to breaking news desk Im Bill Maloney.

Care all right, Bill, thank you to hear live breaking news of your Bloombergy Times. Squawk on your terminal, squ a w u K and that's a Bloomberg business flash. Now here's Michael Barrow with more on what's going on around the world. Michael Karen, thank you very much. A gunman on a rooftop opened fire on an Independence Day parade in suburban Chicago, killing at least six people and

wounding at least thirty. Police and Highland Parks say A man named as a person of interest in the shooting was taken into custody last night after an hour's long man hunt. To Philadelphia Police officers have been released from the hospital after they were 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 Mets won the brat sos Orioles and As also won the Nationals lost along with the giants. 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 Barr and this is Bloomberg. Karon. All right, Michael, thank you at sixty nine on Wall Street, and returned to news and science and technology now with

a Bloomberg and j I T STEM report. It is RONTY You buy New Jersey Institute of Technology and j I T welcomes its ninth president, Tech Limb, a visionary leader committed to growing and j I T s partnerships with industry to bolster student opportunities and outcomes. Learn more at n j I T dot E d U and now here's what's making news and science, Technology, engineering and math.

A simple and cheap way to prevent some future climate pollution is to wear the clothes already in your closet and roughly twice as many times as you might have otherwise before tossing them. The United Nations Environment Program echoed a sev or four from the Ellen MacArthur Foundation that Showy could reduce the impact of emissions related to clothing

by forty four percent. Test level Hall most production on its Model Y assembly line in Shanghai for the first two weeks of July, and then stop the Model three line for a twenty days stretch starting July eighth. Upgrade work at the factory to boost output of both vehicles is expected to be completed by early August. People familiar with the matters say, and an electric vehicle charging station that can choose hundreds of cars a day, set up with two batteries I can send power to the UK

grid is opening in Oxford. The project, known as the Energy Superhub Oxford, will include forty two rapid chargers at the Red Bridge Park and Ride and as a Bloomberg and j I t stem report. John all right, Karen, thanks, We're lying for the Bloomberg INTERRANTO Broker Studios where it is six fifty one of Wall Street, and that means it's time to check what's going on in d C. And some of the top stories in the nation's capital include China and the U S discussed Trump era tariffs.

Biden is looking to ease, of course. Six thirty Hurd and that's shooting at the Chicago or at July fourth Parade. Where are we on gun legislation at this point? And the January six hearing revelations include an angry former President Trump and risk to the Vice President Pence, the w n B, a star grinder pleading with President Blind to get her out of Russia, and President Biden urges unity

despite economic worries and deep divisions in the name. Let's take a deeper dive and these stories this morning with Joe Matthew host Bloomberg South Don Happy Tuesday morning to you, Joe and you as well. Hope it was a great fourth John h terriffic fourth for me at least. China and the US discussing ending some of the Chinese tariffs. So one of our top stories this morning, What exactly is taking place? Started perking a couple of weeks ago.

The President has been looking at this, saying that he would make a decision on it in an effort to lower inflation was the idea here. It appears we could be nearing a decision as soon as this week. Bloomberg had sources talking over the weekend about this. Within days, news of a high level meeting between Janet Yellen and China's Vice premier was their first meeting since October and described by the US as candid and substantive. So it

looks like the gears are turning here. But we do have to acknowledge that there's an argument within the administration about this. You might not assume that, but the our trade representative, US Trade Representative Katherine's High says, take away the terrorists, you take away the leverage they bring, some of the only leverage that Washington has over Beijing. And the fact is China has really not changed his behavior, that the behavior that prompted these terrorists to begin with.

There are also questions John about the impact. What would it actually do with regard to inflation. Analysts at the Peterson Institute say it might lower consumer prices by about a quarter percentage point. Barclay says it might be three tents or so, not a lot. It could rise if American companies respond by lowering their prices, but that's a big if here, and we're talking about consumer goods for the most part, a seasonal products, John, like sunscreen and bicycles,

and one possibility would be cutting those terroiffs. While raising some others things like industrial machinery, transportation equipment, will be looking for answers on these in the coming days. So it sounds like at this point it's unilateral. Well yes, but the question is where do they draw the line and and where do we find the balance between leverage and price is knowing that it may not have a

huge impact here at home. All right, another weekend, another mass shooting, UH six thirty heard in that Chicago area, July fourth Parade shooting. And then thanks to the question, we've heard some of the reactions, where are we on national gun control legislation? Well, the President signed it into law a little over a week ago, is the twenty five of July, and the first major, you know, gun

safety legislation passed by Congress in nearly thirty years. The question is, you know, what impact is it going to have? And as these uh these red flag laws take effect around the country. Because this bill, reminding you, incentivizes states to have red flag laws that also expands some background checks, people think that it might have actually played into, UH, some of these mass shootings. Whether it would have prevented

any of the recent examples, it's very difficult to tell. Uh. The n r A opposed the bill, but it has been signed in the law after a ten Senate Republicans and ten Democrats found a compromise on this and also individually some of the states that the Supreme Court overturning some of the restrictions that New York had in place. In New York and then in New with Governor hokel and in New Jersey, um, they have sort of adapted to new gun control legislation and immediately those are facing

lawsuits as well. So there has been response counter response. So we have yet to see what happens on the state level with those and has predicted, you know, this could be tied up in courts for a long time. There are, however, a number of states, roughly twenty states that already have their own red flag laws. So we're we'll have to see what the rest of the country decides to do. The January six hearings and the revelations give us the update. What do we know, Well, there's

a lot there. I don't know how much time you have, but we're we're in a in a lull now. After our surprise hearing popped up with the commentary from Cassidy Hutchinson, the former chief of Staff to Mark Meadows, I think that the committee, which by the way, is going to be UH finishing this with another prime time hearing, likely closer to Labor Day. We're expecting another schedule at some

point soon here. But they say there's new evidence coming in and there are more witnesses who want to talk, so they're they're back in the process of gathering here. Having heard from Cassidy Hutchinson that the President the Secret Service knew that there were weapons in that crowd at the Ellipse that day before they walked up to the Capitol, and learning as well that the President himself wanted to go to the capital raises a lot of questions about

his motivations that day and the Justice Department. Have we heard anything from the attorney channel at this point about this particular matter, not specifically whether you know charges. Of course, the you know, the d o J has been actively investigating this, and there are questions about whether UH they'll be getting information from the committee or whether they even

need it. John, The d J operates very quietly, and they have broad subpoena powers, broad ability to investigate UH, and they're taking their own path on this, which could in fact result in charges at the same time that January six committee can refer uh with with the idea of referring for criminal charges to the d o J. Some of the information that they have interesting that there is a bit of a conflict between Liz Cheney, the Republican ranking member, if you will, vice chair of the committee,

and also Benny Thompson, the Democratic chair. He says, no, we're just doing our work here. We're doing the work of a legislative committee. Liz Cheney says, this information needs to go to d o J so they can act. All right, Joe, we'll leave it there, Thanks very much. We appreciate your time. Joe Matthew the host of Bloomberg Sale dot But you can read more about these stories were just in on Bloomberg dot com or on the Bloomberg terminal. Also a reminder, you can follow all the

latest Bloomberg Radio in Washington. It's Bloomberg at one on five point seven FM HD two. Oh. We did see some sen initially on the screen with US futures afterword of those possible terrorists being lifted with China. Right now, we are in the red risk golf so far this morning, DAL futures down one twenty two points. That's a decline of four tens of a percent. SMP EMNI futures they're down sixteen. That's down four tens of a percent, and that has that futures sixty five points lower. That is

down six tenths of a percent. And the VIX right now twenty eight ten, slightly elevated. As for the dollar dollar d X Y and that is elevated. Stronger dollar this morning, that is up nine tenths of a percent. Watching the Euro as well, one oh two right now, that is down one point two percent. For Karen Moscow on John Tucker, and you have been listening to Bluebird day Break