Bloomberg Daybreak: July 7, 2022 - Hour 1 (Radio)

Plus looking for a motive for the Island Park, Illinois shooter. I'm Michael Barr. More ahead, I'm trying to stand shower in sports, attending win for the Mets, a lopsided win for the Yankees. They make their first visit to the

Red Sox tonight. That's all straded ahead on Bloomberg day Break on Bloomberg eleven Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius XM one nine team, and around the world on Bloomberger deal dot Com and via the Bloomberg Business Actor, and good morning. I'm Nathan Hagar and I'm Karen Moscow. US Dock Index futures on the rise this morning.

We're coming up to five the one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP futures up thirteen points this morning, Down futures up ninety six, and NASDAG futures up fifty five. The decks in Germany's up one point six percent. Ten year treasury down twelve thirty seconds, yield two point nine seven percent, and they yield on the two year three point oh three percent. Nine X screwed oil is up

four ten percent at ninety eight dollars ninety cents a barrel. Nathan, all right, Karen, we begin this morning with breaking developments out of the UK. Time is up for Boris Johnson as we get where the prime minister is finally ready to resign. Let's go live to London and get the latest with Bloomberg's You and Potts. Good morning, you, and good morning Nathan and Karen. Boris Johnson says he's quitting as Britain's Prime minister even by we and standards has

been a dramatic day on Downing Street. A snowstorm of resignations from the government at the beginning of the week became an avalanche by yesterday. In total, more than fifty ministers and aids leaving their jobs in protest. But perhaps the final blow came today when the Chance that the second most senior member of the government's only appointed to the job on Tuesday, tweeted that Boris Johnson must go now. Well, the PM is finally given into the pressure and is

now preparing his resignation speech. Nathan, all right, well you and when is Boris Johnson expected to actually leave office? One? Are the next steps for the UK government? Well, today's news means that the UK is set to have its fourth leader within just six years now. Remember, the Conservative Party still has a majority in the British Parliament, so it's up to the party to choose a new leader who will then take over as the British Prime Minister.

And leadership contest is set to get underway in the coming days, with the new PM likely to be in place by October. Live in London, I'm you in port spin by daybreak? How are you? And thank you? Of course, will be following this story throughout the day checking market reaction. Now, the pound strengthening on the news. It's at one point one nine is six and nine against the dollar, and stocks across Europe are rallying. The stock six hundred is up one point three percent and the foot See one

hundred in London is up nine tenths per cent. Well, Britain grapples with political turmoil Karen. The war in Ukraine rages on, and now the US and its allies are firming up plans for a cap on the price of Russian oil. The goal is to limit the Kremlin's ability to finance its war. Amy Morris has the details from our Bloomberg newsroom in Washington. They're discussing a cap between

forty and sixty dollars a barrel. The aim is to cut Moscow's revenue for its war in Ukraine, but the risk is that it would lead to a spike in oil prices. German Chancellor Olof Schultz accused Russia of using natural gas deliveries as a political weapon. The invasion of Ukraine has also forced several European countries to dial back their plans for decarbonization so they can compensate for those cuts and Russian fuel supplies. In Washington, I'm anymore at

Bloomberg Daybreak. All right, Amy, thank you, and turning to the economy now. Investors are still reacting to yesterday's Fed minutes, and they're also looking ahead to tomorrow's jobs report to get the details. Live with the Bloomberg's John Tucker, John, Good morning, Karen. Minutes from the Fed show central bank officials solidified the resolved to keep raising interest rates for longer. They viewed maintaining the central banks credibility to control inflation

as critical. That his investors still betting the Fed will hike by seventy five basis points later this month. Meantime, economists forecast US employers added the fewest jobs in over a year in June, but they say that expended slowdown isn't too concerning just yet. The jobs report from the Labor Department expected to show the unemployment rate remaining at an historically low level. Live in New York, I'm John Tucker,

Bloomberg Daybreak. All right, John, Thanks, talk about an economy of a difference sort Now, billionaires and high fires from the tech and media worlds are all in sun Valley, Idaho, for the annual Allen and Company conference. Bloomberg's Ed Ludlow is there too and found this report. A lot of the big picture macro items are what a top of mind. There are discussions around inflation, recession risk, the volatility that we've seen in public equity markets, the rundown evaluations that

we've seen in both public and private markets. But behind closed doors, all of these high fliers were also talking about a number of societal issues, ranging from gun control to recent decisions by the Supreme Court. They're also discussing issues of climate change. No site yet of Elon Musk, the world's richest man, is coming to some valley, according to sources. Ed Ludlow for Bloomberg News in Sun Valley, Idaho, Alhead. As you mentioned, we're learning now Elon Musk is expected

to speak at the conference. That's expected on the final day this Saturday. Well, staying with tech, Nathan, we have news on Apple. Bloomberg News has learned the company is planning an extreme sports watch. They get the latest live with the Bloomberg's Rnida Young. Good morning, Rinda, Good morning carry Bloomberg. Sources say Apple's new smart watch will be the largest display it's released to date, with a bigger battery and a rugged metal casing, and it's geared toward

extreme sports athletes. Apple could use the largest green area to show more fitness metrics or information on watch faces at one time. The company plans to announce the new watch, along with two other models later this year. Live in New York. I'm gonna need a Young Bloomberg daybreak, all right, we need to thank you. Chip stocks are higher this morning thanks to Samsung Electronics, South Korea's largest company, reported a better than anticipated twenty one percent jump in revenue.

In that report is soothing investors worst fears about the impact of weakening consumer demand and soaring materials costs on the billion dollar chip industry, and deal news Nathan the Wall Street Journal are reporting Murcus and talks to acquire biotech company Cgen. The papers said that del could be worth about forty billion dollars. Cegen shares are up six percent in early trading, and shoes of Game Stopper up

ten percent in the pre market. Care in that company became the poster child for so called meme stocks, of course, and now it's announced stay four to one stock split in the form of a dividend. SMP futures are up nine points, staff futures up seventy four nanstack futures up forty five points. Send your treasuries down ten thirty seconds, the yield two point nine six percent. Straight ahead, local headlines and a check of sports. This is Bloomberg. Man.

It's now five oh seven on Wall Street, where it's seventy two degrees in Central Park. Already got an accident southbound New York State through A before exit fifteen A. We'll get the details in traffic. First. Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning, Nathan. New York Mayor Eric Adams held a brown table style meeting involving community groups and the NYPD. Adams was asked about the

problem of abuse of landlords in the city. We're going to go back and see how we use the Human Rights Division, the Police Department of DA's office to target those who arrests who are harassing older adults, because you know, it's it's against the law to illegally vet, it's against the law to harass, and I don't think there's enough attention on zero and on those bad acting on landlords. Hey Randams dealt with a range of issues from oversight

of homeless shelters and budget. Mayor Adams said the police budget remained flat. Can't live in a city where young people pick up a gun faster that they can get an iPad. Days after a rooftop gunmen killed seven people at the Chicago area Fourth of July parade, attention has turned to how the assailant obtained multiple guns. Authorities say

Robert Kremo, the third confessed to the killings. Highland Park Police Chief Lou Jugman says he's quote disappointed that more couldn't have been done to prevent Cremo from getting his hands on a gun, but he believes his department did all it could. Given the constraints of what we have in place, there is only so much the police department can do. We have a social worker on board, you know,

we do what we can ve. Jogman says Cremo was heading to Madison, Wisconsin to carry out another attack, but changed his mind. W n B A Star Britney Grinder's drug trial resumes today in Russia, where she's being held since February. The White House says President Biden and Vice President Harris have called Grinder's wife directly to reassure her

that he's working to secure Brittney's release as soon as possible. Memhile, friends and family of Brittany Grinder held a rally and Phoenix to show support for the w n B. A star at the rally, Grinder's wife, sharel asked supporters to keep pressure on the administration to get Brittney released. Let's make sure this administration knows that they have our support to do whatever is necessary, and that we are not

going to ever be quiet until she's home safely. Cherrelle Grinder says she has frustrated that her wife is not going to get justice. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts in more than a twenty countries. I'm Michael barn This is Bloomberg. Nathan. All right, Michael, thank you, coming up to five ten on Wall Street

time for the Bloomberg Sports Update. Welcome back John Sasha Ranks, Nathan, Matt's have to be encouraged about the return of Max Scherz or Jacob Gra'm getting closer. But as they trailed in Cincinnati, they might have taken a peek in the scoreboard and scene Atlanta leading yet again. It was looking like the red hot Braids when closed within a game and a half of a mett rally a game sorry no RBI double starling marked a ninth inning. They went to the tent on one pitch demo trills it deep

to right field toward the seats. N went back at defense here with a free run homer. But that's a broken the game open in the top of the ten y It's eight to three. It was the final WCBS ad at the Braves blank the Cardinals three nothing there twenty six and seven. In their last thirty three games. The Met leaders two and a half. As they host Miami tonight. Monday, the Mets visit Atlanta. Yankees tonight make

their first visit of the season to Boston. They'll seek their sixty win in Fittzburg avoided what would have been just their second three game losing speaking the season, wallop the Pirates sixteen enough. In twenty two. Yankee had seven home runs, including Aaron Judges thirty if it was a grand stam and came off Many. Banuelos, who was a Yankee until just a few days ago, ed Wimbledon one, a match Raffield that al took off an abdominal injury, came from two sets to one down one a fifth

set tiebreaker with American Taylor. Fritz d Dal says he's not sure he'll be healthy enough to play his semifinal match tomorrow with the Austine Nick Herrios women's semifinals. For today, Baker Mayfield and Sam Donald were taking first and third overall in the two thousand and eight teen draft didn't work out for either one. The Browns have traded Mayfield

to Carolina, and he'll now be Donald's teammate. John stash Award Bloomberg sports stad all right, John thank USMP futures up thirteen points, steps up a hundred five Nanstack futures up sixty. The British pound strengthening at a one point one six eight against the dollar. Bloomberg's Lizzie Burden joins US next on Boris Johnson resigning Bloomberg eleven three oh Weather mostly cloudy if you afternoon showers possible to high near eighty degrees. More showers likely tomorrow with low eighties

for highs. Will be in the sunshine by Saturday. Right now seventy two in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com for the Bloomberg Business at and at Bloomberg Quicktake. This is a Bloomberg Business Flash and I'm Karen Moscow. You must not in next. Future is on the rise this morning at softer oil prices and a weeker dollar signal.

Fears about inflation and the pace of monetary tightening or fading the US to contend, your yield curve remains inverted for a third day. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg s and T futures up thirteen points this morning. Down futures have one eleven and nowsday future is up sixty one. The decks in Germany is up one point eight percent. In the foot Sea one hundred up one point to percent ten.

Your treasury down twelve thirty seconds. He had two point nine seven percent. They yield on a two year three point oh two percent. Nimex screwed oils up tenth of upper center fourteen cents and ninety eight dollars sixty five cents of barrel comex Schold up three tenths per cent or five dollars twenty cents at seventeen forty one sixty announced the euro one point o one nine four against the dollar. British found one point one nine seven three and the end is at one thirty six point one four.

Look at it bitcoin this morning, it's up half percent at twenty thousand, four hundred eighty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more and what's going on around the world. Muchael, Thank you very much, Karen. British Prime Minister Boris Johnson has agreed to resign. Johnson and buff calls bias cabinet to step down in the wake of ethics scandals. He gave in after more than forty ministers quit his government and told him to go.

We'll have more on the Johnson story in a few moments. In baseball, the Yankees know what for and why whipping on the Pirates sixteen nothing. The Mets also won the Nationals Orioles and Giants won. The Red Sox lost along with the a's global news twenty four hours a day on here and on Bloomberg Quittake, powered by more than journalists and analysts more than twenty countries. I'm Michael Barr,

and this is Bloomberg. Nathan alright, Michael, thank you. It's five nineteen on Wall Street, live from the Bloomberg Intteractive Broker Studios. This is Bloomberg Daybreak, and speaking of what for and why whippings, Boris Johnson is now finally planning to resign after a wave of resignations that made the last forty eight hours very tough to keep up with

in terms of UK politics. Luckily, we have Bloomberg's Lizzie Burden back with us this morning outside number ten Downing Street, where she's been keeping post over the last couple of days here watching all that's been happening. Lizzie. I've got to think it's been feeling like swimming against a flood, just trying to keep up with all that's going on. And now we have what looks like the then you

are here. Perhaps it has and let me tell you, last night it seemed inevitable that Boris Johnson was going to resign, and we waited and waited and nothing came. Then when I arrived in Downing Street this morning, we weren't sure if anything was going to happen. It was very quiet, and then the staffers started arriving, and then the cars started moving, and then now I could tell you it's absolutely heaving in the press area with cameras from all over the world. We're expecting to hear from

Boris Johnson by noon London time. There's no podium out yet in front of Number ten, but the tone of the speech will be fascinating. Remember his predecessor to reason May was in tears when she resigned. There are twindows twitching, curtains twitching across the street of people trying to buy for the best spot to watch, because what's happened is the usual Number ten meeting. This morning has resulted in Johnson's core team telling him that he had to go.

There was a letter from his chancellor, Nadine Zahawi, who's been appointed. He's been in posed less than twenty fourty eight hours and he's told Johnson to resign. There's been an unprecedented wave of resignations, almost a third of the government, leaving it in para paralysis, and it just seemed increasingly inevitable. After the pest Minster as it's called, sex scandals, the party gate crisis, the cost of living crisis, it's all mounted up and it now seems finally it's going to

be cursins for Boris Johnson. And as you mentioned, we are expecting this resignation speech in less than two hours time. Here we've been told Lizzie that Boris Johnson is planning to stay on as a caretaker leader until the next Prime Minister is chosen by the Conservative Party. Can he stay on that long given that so many of his own party members of jump ship. Well, we're hearing already pushed back from MPs on that point breaking line that Quasi Kuakeng is saying that we need to find a

new leader as soon as reasonably practicable. One MP said that there needs to be an abrupt holt to the Johnson's poison and that the Deputy Prime Minister, Dominic Robb should step in. Remember, if you think about Boris Johnson's time in office at the moment, it would be one thousand, sev days. His predecessor, to reason May was in for one thousand, one hundred and six days, so he'd have a short tenure than May if he leaves now, but

not if he stays on as a caretaker. But in any case, it's a humiliating end to a political career of someone who only three years ago one of the biggest landslide since Margaret Thatcher. As you mentioned, though, it's a short tenure. But it's been like scandal after scandal after scandal for this Prime minister. I'm curious why this last scandal involving Chris Pincher seems to be the one

that was the final straw for so many MPs. Well, it started with the resignation of Satage Other, the Health Secretary, and that was quickly followed i think ten minutes later by that of the Chancellor x now ex Chancel and now Rischie Sunac, and in their resignation letters it's focused on integrity that they couldn't defend this the government line on the Chris Pincher affair any longer, and that has

been the case for other MPs as well. Rischie Sunac, though in his letter, also pointed out his fundamental differences from Boris Johnson on his handling of the economy. He couldn't stay on board with Boris Johnson's boosts. He said in the letter. If it sounds too good to be true, it probably is. So it would be interesting to see of the people put the MPs who put themselves forward to replace Boris Johnson, what their economic offerings will be because we're in the middle of a cost of living

crisis in the UK. Inflation set to hit double digits in the fall, so economics is going to be crucial on It's going to be very interesting to see who continues to jockey for position. Now what comes next after Boris Johnson. Lizzie Burden Bloomberg News corresponded with us this morning once again outside number ten Downing Street. Will be looking for more of your coverage throughout the day and

for Boris Johnson's resignation speech. As Lizzie mentioned, that's expected around noon UK time, that's seven am Wall Street time. We will of course bring you live coverage right here on Bloomberg Radio. Looking ahead to the market open on Wall Street, futures are moving a touch higher. SMP futures right now, we're up twelve points down, futures up a hundred nine. NESTACS futures are higher by fifty three points.

We are seeing some strong gains for European equities. The German decks up one and three quarters percent, the foot see in London up one point two percent. Tenure Treasury back here in the US down twelve thirty seconds. The deal two potent British pound strengthening this morning one point one four against the dollar. You're listening to Bloomberg day Break. Good morning, Bloomberg, eleven three oh weather mostly cloudy today, maybe a few afternoon showers will get up to near

eighty degrees. More showers likely tomorrow, low eighties, mostly sunny for Saturday. Right now seventy two and cloudy in Central Park. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg in Living Free to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg, N'm sixty to the country, Sirius XM Gentle one nine ten, and around the globe to the Bloomberg Business and Bloomberg

Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Haggert and I'm Karen mons Gall we are just about four hours away from the open the US trading. Let's get you up to date on the news you need to know at this hour. Beginning with breaking news out of the UK, Boris Johnson will resign as Prime Minister following numerous scandals

and intense pushback from his government. Bloomberg's Lizzie Burden has the latest from ten Downing Street resignations had mounds heads. More than almost a third of the government quit their jobs because of Johnson's integrity over the Chris Pincher affairs, humbling, the cost on living crisis, the party Gate scandal. It had all been building and government was paralyzed. So Johnson, it seems, can do it no longer. And Bloomberg's Lizzie Burden says Johnson plans to stay on as caretaker leader

until October where awaiting a formal statement from Johnson. Will bring that to you live when it happens right here on Bloomberg Radio. There. Thanks for that, Karen. We'll back here in the US, the focus is on the economy as investors react to yesterday's FED minutes. Bloomberg's John Tucker joins the slide with that Good morning, John, Good morning Nathan. The minute show policy makers will probably de were another big interest rate hike later this month. Investors bet it

will be seventy five basis points. Inflation was referenced ninety times in the meeting. Despite all the worry about an economic downturn, there were no mentions of recession. Meantime, the jobs report from the Labor Department tomorrow expected to show employers and the fewest jobs in over a year. In June Live in New York, I'm John Soccer Bloomberg Radio. All right, John, thank you, And now an economy of

a different story. Billionaires and high flyers and tech and media are discussing political and economic issues at the Allen and Company conference in Sun Valley, Idaho. We're told test La CEO Elon Maski is expected to speak on the final day of the conference this Saturday. And sticking with the tech them, Karen Bloomberg News has learned Apples planning an extreme sports watch. Bloomberg's Radia Young joins US Live with more on that. Good morning, Radina, Good morning, Nathan. Bloomberg.

Sources say Apple's new smart watch will be the largest display it's released to date. With a bigger battery and a rugged metal casing. And it's scared toward extreme sports athletes. Now, Apple could use the large your screen area to show more fitness metrics or information on watch faces at one time. The company plans to announce the new watch, along with two other models later this year. Live in New York, I'm rened to Young Bloomberg daybreak, All right, reneded, thank you,

And futures are higher this morning. S ANDP futures up eleven points and down futures up one nine NASTAGG futures at forty five and a ten year treasury down twelve thirty seconds held two point nine seven percent. They yield on the two year three point oh three percent. Try to hand your latest local headlines plus a check of sports. And this is Bloomberg. All right, Kent, thank you. It's five thirty three on Wall Street. We're at seventy two

degrees in Central Park. Still dealing with an accident on the South Bend New York State three Wiggs at fifteen A details coming up in traffic. First Michael Barr with more on what's going on in New York and around the world. Michael, thank you very much. Nathan. New York Mayor Eric Adams held around table style discussion involving community groups and the NYPD. Mayor Adam is dealt with a range of issues from oversight of homeless shelters and the budget.

When you look at this budget and the amount of money we allocated to unprecedented resources go into children and families, uh the increase dollar amount in the reduced Fair Metro Card program never before numbers were reached. Mayor Adams said the police budget remained flat. We can't live in a city where young people pick up a gun faster than

they can get an iPad. Prosecutors in Illinois say the twenty one year old man accused of killing seven people at the Fourth of July parade in Highland Park and fast to the shooting. After being taken into custody, the suspect made his first court appearance by video. The attorney for the accused shooters mother and father says his clients are hurting too. Steve Greenberg, representing Robert cream O, the third's parents, spoke to w LSTV. They faced charges. They'll

deal with charges when it happens. Their concern is helping the community to heal and helping everyone to figure out how to keep this from happening again. Attorney Steve Greenberg. Illinois State Police say there will be criminal investigations into the culpability of the father because he sponsored the application for his son's twenty twenty firearm permit. Friends and fans of Britney Grinder held a rally and Phoenix to show support for the w n B. A star who has

been detained in Russia since February. Day two of her drug trail near Moscow, is today. Former White House Council under President Trump Pat Sipaloni is expected to testify under subpoena before the House January six Committee Tomorrow. Sipolonia will speak to the panel behind closed doors. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven journalists and analysts more

than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan, all right, Michael, thank you on Wall Street. Time for the Bloomberg Sports Update with John Sharon. Alright, Nathan Yankees unaccusted or losing two games in a row, weren't about to drop a third strate A sixteen to nothing round

in Pittsburgh. They scored eleven over their last two at fact Yankee hits six home runs, Aaron Judge in his thirty it was a Grand Slam in the eighth and ain't Aaron Hicks at a Grand Slam of the ninth. Yanks have not played the Red Sox in at the opening series of the season that was in New York. Finally, their first trip to Fenway tonight start the four game series. How Steinbrenner met the media in Pittsburgh. He says there will be no contract talks with Judge until after the season.

Says he has no regrets about the offer they've made that Judd rejected Mets one in Cincinnati eight to three, tennings, They tied the game of the ninth, didn't take their first lead until the tenth. Brandon Nimbo put it away with a three mon homer Atlanta one again the Brave State two and a half game behind. Raphael and All admits his family was trying to encourage him to quit his quarter final match at Wimbledon with American Taylor Fritz.

He was battling and abdominantly injury. It at alst get out and sure enough won the last two sets, the fifth set in the tiebreaker to retired uh In the me that loved the match. It's not easy even if I had that idea or such a long time. But no, Hunt, I do a couple of times in my tennis career is something that I I hate to do it. He hopes to recover for tomorrows semifinal. Matt with the aussee Nick Kurios. The Cleveland Browns had already moved on from

Baker Mayfield, bringing in to Shawn Watson. They traded Mayfield first overall pick of the twenty eighteen draft, to Carolina, where will apparently battle Sam Donald. He was the third pick of that same draft. John stash, they weren't Bloomberg Sports all right, John. Thanks, It's five thirty seven on Wall Street. Time for the Tri State Business Report. Here's Bloomberg,

said Corey. The U S Transportation Department is awarded sixteen coveted flight slots at Newark International just Spirit Airlines, denying requests by rival's Jet Blue in Alaska air The government says Spirit is most likely to provide the lowest fares to the most consumers. Construction of a new Hudson River Rail tunnel connecting New York City and New Jersey has

taken another step forward. Both states governors have announced a memorandum of understanding with the Port Authority of New York and New Jersey on financing for the Gateway tunnel and the Portal Bridge replacement. The m t A is selling seven hundred million dollars in bonds backed by New York City's sales tax revenue as the largest mass transit system in the US looks to attract investors worried about low

ridership levels on subways, commuter trains, and buses. It's the first time the agency is borrowing against sales tax receipts. That's your Bloomberg Tries State Business Report. I'm Ed Corey. Thanks that It's five thirty eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm

Corney Donahoe on ktr H in Houston. Chelsea is a one billion dollar gain and it's We're finding business in the most routsent quarter. On Gina Servetti and for w c c O in Minneapolis. I'm reporting that three m have reached an agreement in Belgium to clean up so called Forever Chemicals, but the deal does not release the company from future responsibility. I'm LISAMATHEO and on KMOX and St. Louis. I'll be reporting on a new gadget for extreme sports fans.

I'm Stephen Carol on Bloomberg d A B Digital Radio and London. We've been reporting on Boris Johnson's last hours as Prime Minister. He'll now resign after an avalanche of his minister's question I'm Ed Corey on w w J in Detroit. I'm reporting Michigan gave General Motors pre point eight billion dollars in tax credits in the wake of its bankruptcy. And those are some of the stories our twenty seven hundred Bloomberg journalists and analyst organ on this morning.

It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. With each passing day, the brave new world of crypto currencies is looking more like the perilous old world of Wall Street. Circa nine. Supposedly stable investments are proving to be anything but tillions of dollars in virtual wealth have vanished. Their right response is relief, relief that things didn't get even worse. Rarely has a

crisis been so well timed. Crypto managed to boom and crash before it became too connected to the broader financial system. The damage has been limited mostly to those who, despite ample warning, chose to get involved. There's no need for emergency intervention. On the contrary, the bubble's deflation affords regulators and investors a unique opportunity to reflect. Unlessons learned, Perhaps the speculative frenzy surrounding crypto will give way to the

development of truly valuable applications. For the time being, though, it's better to keep a safe distance. This editorial was written by the Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg opinion, please go to Bloomberg dot com, Slush Opinion or opion. Go on the Bloomberg terminal. This has been Bloomberg Opinion. Listen for Bloomberg opinion editorials every

week at this time. Terminal customers can read more at O P I n go SMP futures up eleven points, Staff futures up a hundred eleven INSTECT futures up forty seven points in the tenure treasury yield right now two point nine seven. This is Bloomberg Bloomberg eleven three oh Weather mostly cloudy, a few afternoon showers possible, going up to near eighty degrees low eighties, with more showers likely tomorrow. Sunshine low eighties for Saturday. Right now seventy two in

Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot com for the Bloomberg Business at and at Bloomberg Quick Tape is a Bloomberg Business blash and I'm Karen Moscow us on Index futures are on the rise this morning as fears about inflation in the face of mont a tightening or fading. The foot see one hundred in London is higher following news Boris Johnson plans to resign as UK Prime Minister and the US to and ten Your yield curve remains inverted for

a third day. We checked the markets every fifteen minutes throughout the trading day on Bloomberg s and p futures up ten points this morning, down futures of a hundred three now's day futures up thirty nine. The foot see one hundred is up one point two percent, The ten year Treasury down eleven thirty seconds, yield two point nine six percent. Yield on a two year three point two percent.

Nine X Screwed oil is up about one point one percent, up a dollar three at ninety nine dollars fifty five cents in barrel comics school that four ten percent or six dollars seventy cents is seventeen forty three twenty announced. The euro one point two oh five against the dollar, British round one point one nine nine three and the end at one thirties six point oh seven. And Bitcoin this morning is moving higher, up about one percent at

twenty thousand, five hundred seventy dollars. That's at Bloomberg Business Flash. Now, here's Michael bar with Moore on what's going on around the world. Michael Karen, thank you very much, as we've been made eining all this morning. UK Prime Minister Boris Johnson plans to resign, according to officials familiar with his thinking, following an unprecedented wave of resignations from his government over

the past two days. Treasury Chief not him Zahabi told the Prime Minister to resign for the good of the country. Will have more on the Johnson resignation in a few moments. In baseball, the Yankees put on What four and Why, whipping on the Pirate sixteen nothing. The Mets also won the Nationals Orioles and Giants won. The Red Sox lost.

Along with the a's Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist analysts in more than a hundred twenty countries, I'm Michael Barr, and this is Bloomberg. Nathan. Hi, Michael, thank you for coming up to five on Wall Street ten forty nine in London, live from the Bloomberg Interactive

Broker Studios. This is Bloomberg Daybreak and Bloomberg's Lizzie Burden joins us once again from outside number ten Downing Street as we continue our coverage of reports said Boris Johnson will resign as UK Prime Minister and make that announcement later today. Lizzie, thanks for being back with us. For those who may have just joined us, can you get us up to speed on what got us to this point because there have been so many developments over just

the last couple of hours. Yeah. Well, in the last couple of hours we've seen the cars arriving, the cameras and now the clowds are developing beyond the gates of Downing Street because we're expecting to hear from Boris Johnson in the next few hours. There's no podium in front of Number ten yet, but he'll be interesting to hear the tone of his resignation speech. Remember Theresa May, his predecessor,

was teary. But finally we're at the point where Boris Johnson is handing in his resignation after an unprecedented wave of resignations from his government. It was in it was paralyzed. About a third of the government had quit and those resignations keep on coming. It seems that the lesson from his chancellor, newly appointed Chancellor A. Deeza Harwe, was one of the things that pushed Boris Johnson to the edge. Uh just telling Boris Johnson to resign, but it had

seemed increasingly inevitable. We've had the recent Chris Pincher, a bear the latest chapter in the Peasants sex scandal, Party Gate, the crisis that saw Boris Johnson the first sitting prime ministers to be found to have broken the law and on top of that the cost of living crisis in the UK were expecting to see inflation hitting double digits in the four So this is finally the moment where Boris Johnson is it seems to be decided to call

it Curtains. Yeah, and it looks as though this will be the final resignation of this wave and it's going to set up a new leadership election. Lizzie, how's that going to work? Well, it's in two stages and it takes several months. The first stage is the shortlisting stage where mp put their own names into the hats and over several rounds Tory MP for whittle that lifts down to two the ideas to keep out the extreme names.

And then the second stage is it goes to the grass troops members to move it down just to one name on who gets picked. But the time scales breach of those stages are set up by the nineteen twenty two Committee of Conservatives Backbenches and if it takes till October to find a new leader. That would only leave them fourteen months to set a new agenda before a general election. But whoever takes over doing so in a

time of absolute crisis, economic undue political. So I have to think then that there's probably already some jockey and going on behind the scenes members of the Conservative Party looking to firm up support. Who are we hearing in terms of names of people who are thinking of taking over as prime minister now? Well, in a way you could split the candidates into those who quit and those who stayed till the end. Those who quit include a Rishi Soon actss former Chancellor and Sage Javit, the former

Health secretary, strong hint around their statements and letters of resignation. Uh. Then there are those who stayed to the end, like Liz trust for Foreign Secretary here and she's coming back from G twenty meeting in Indonesia. Also Ben Wallace Defense Secretary. But they they're on the one hand, those who've stayed seemed to be tarnished by the proximity to Boris Johnson. But for lots of Tory Party members, those who've left

will seem to have betrayed Boris Johnson. So we'll see how the grassroots vote, but their economics could be key, as I say, were in the midst of a cost of living crisis. But then those with military links military backgrounds could also started a good chance because of course we have the war in Ukraine going on as well. Bloomberg's Lizzie Burton, thanks again for being with us this morning from outside Number ten Downing Street, as we await

that resignation speech. We are expecting it later today from UK Prime Minister Boris Johnson, and this headline just across the Bloomberg terminal, Sky News is reporting that that speech is expect did around mid day, so it could be coming in the next couple of hours. Here, of course, we will have it for you live here on Bloomberg Radio. In the meantime, we want to get to look at some of the market reaction here. For that, we're pleased to be joined now by St. Dwack, chief investment officer

at Flow Bank. St. Good morning. I'm sure you saw on your terminal the spike in the pound on the news that Boris Johnson plans to resign. What are you looking for in terms of market reaction to what's happening in the UK. Good morning. Absolutely, we've seen a small

move in the pound, but clearly upwards. Uh. The pound is usually the best barometer of what's happening in the UK because UK stalks tend to react more with global stocks and they'll react a little bit less to the politics, so that the pound is really the good indicator to keep an eye on. Still a lot of uncertainty, I think, Uh, the speech that's coming up is going to be the first step that he is actually resigned ing um, so

that'll be good for the markets. And then still a bit of uncertainty because in the best case scenario it looks like we're talking about October, so it's still a few months with a lot of resignations. And of course the backdrop in the UK isn't fantastic, right you have this very high risk of recession, extremely high inflation, a difficult conundrum for the central bank, possibly even worse than

in some of the other regions. So the view for the pound is is certainly an improvement if you have less uncertainty, if you have someone who might be a little more euro friendly, but was still a lot of work to go before it can recover significantly. Obviously, the dynamics in the UK are are somewhat different from what we see in the U S. But Lizzie mentioned a housing crisis in the UK, and we have inflation concerns here,

possibility of recession. We heard from the Fed yesterday in the Minutes the resolve to keep raising interest rates to cool inflation. What does that mean for investors? I think you have to take yesterday's minutes with a little bit of a grain assault, just because, uh, there's a few weeks old, right, and we know that at the FED meeting, there was the May CPI that's surprised to the upside. There was the University of Michigan inflation expectations that has

been revised down since. And we've seen a couple of data points showing that a few maybe the beginning of cracks in the economy and certainly some disinflationary pressures that should be coming through relatively quickly, including commodity prices. So we know the Fed is going to continue to talk tough, They're probably going to continue to act tough. I think you could have almost a dovish fifty basis points, uh, depending on the June CPI that comes out next week.

But we'll still have to probably get through the summer before you have enough data points both on inflation and on growth for the FED to not be I'd say only focus on inflation and to maybe realize that inflation is coming down and they've already tight and quite significantly. I'm not calling for a pause, but at least an acknowledgement of an evolving situation compared to this spring. Are going to get another big backward looking data point tomorrow

with the June jobs report. What's your expectation there and what could that mean for the Fed? We've only got about a minute left here. Well, it's one of those you want it to be soft but not too soft. You don't want to have recession fears with too bad a print, but you don't want it to be too high and then have those FED expectations rise again in

terms of tightening. So it's a fine line to thread, but I do think it will be slightly on the softer side, even though there is quite a bit of a cushion before you start see really disappointing news in terms of the US labor market. As always, thanks for giving us your insights. SD really appreciated. St dwag is chief investment officer at Flow Bank. As we take a look at a market that's uh poised for gains for equity investors, particularly in Europe. This morning, right now on

Wall Street, SMP futures are up seven points. That's a game of about two tenths percent down futures are hired by eighty points, NASTAC futures up thirty points. Look at the docks in Germany, it's top about one and a half percent. So it's the catc in Paris and the foot scene London hired by one point two percent. Ten. Your treasuries down ten thirty seconds, the yield two point nine six percent. We have inversion between the two's and tens. The two year yield is above three at three point

zero three percent. Nim X screws up three quarters per cent, or seventy three cents, ninety nine dollars, twenty six cents of barrel, just shy of a hundred, and the British clown one point one nine nine zero against the dollar. Bloomberg Day Break continues on this Thursday morning. This is Bloomberg