Bloomberg Daybreak: June 8, 2022 - Hour 1 (Radio)

parts of the Brexit deal. Credit sweet shares plunge after warning of a second quarter loss, and new developments this morning involving Elon Musk and Twitter controversy over a planned New York City event with Florida Governor de Santis plus a New Jersey mayor says the American Dream mall Owes his city millions. Michael lar More ahead, I'm John stage and Swards Tampa. Maybe if the Rangers to tie up the series at two the Yankees one at Minnesota. The

Mets were shut out from San Diego. That's all strained 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 Sirius x M one nine team and around the world on Bloomberg Radio Dot corm and via the Bloomberg business app. Hey, good Wednesday morning. I'm Nathan Hager, I'm Amy Moura's daybreak is brought to you by Informatica. In 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 and US features are moving lower this morning. We are coming up to five oh one on Wall Street. We checked the markets every fifteen minutes during the trading day on Bloomberg. Right now, S and P futures are down fifteen points, Staff futures down a hundred thirty three, Nastack futures lower by thirty two

points ten. Your treasuries down nine thirty seconds. The yield three point zero percent yield on the two year two point seven four nim X screwed up seven tenths per cent, or eighty six cents to a hundred twenty dollars twenty seven cents of barrel. Amy Well, Nathan more on the markets in just a moment. We begin with the primaries across seven states last night, starting in California. San Francisco, residents took to the polls who ousced progressive District Attorney

Chasa Boudin. Voters were not asked to choose between criminal justice reform and something else. They were given an opportunity to voice their frustration and their outrage, and they took that opportunity. Jason Budin's recall election turned into a heated campaign that divided Democrats. Boudin sought criminal justice reform, critics painted him as far too lenient on crime. He addressed his supporters after his defeat, I want to be very

clear about what happened tonight. The right wing billionaires outspent us three to one. They exploited an environment in which people are appropriately upset. San Francisco District Attorney Chason Buddin will be replaced by an interim d A chosen by San Francisco Mayor London Breed. Staying in California, amy Governor Gavin Newsom cruise to an easy victory. He'll advance to the November election in Los Angeles, where public safety is

also a key issue in that city's mayoral race. Billionaire real estate developer Rick Caruso and California Representative Karen Bass are headed for or a runoff. In other states, congressional races service yet another measure of former President Donald Trump's influence over the GOP. Bloomberg's Michael Barr joins US Live with more on the primary races in New Jersey. Michael, good morning, Good morning, Nathan. A dozen US House seats are being contested in New Jersey. There were several GOP

candidates who followed Donald Trump's brand. However, in New Jersey, only two out of the twelve member delegation are Republicans. In the second district, incumbent Jeff Van Drew won the GOP primary with six percent. Van Drew will face Democrat Tim Alexander, who got sixty two percent. In the fourth district, incumbent Republican Chris Smith one with fifty eight percent of the vote. Smith will face Democrat Matthew Jenkins, who ran unopposed.

In the seventh district, Republican Thomas Kane Jr. Received forty six percent. Hill face incumbent Democrat Tom Malinowski, who got percent of the vote. In New York, Michael Barr, Bloomberg, Day Break, Alright, Michael, thank you. Five other states held primary South Dakota, mississipp In, New Mexico, Iowa, and Montana. Incumbents mostly staved off challenges from other candidates. Let's turn

to politics overseas now Amy. After winning a confidence vote this week, UK Prime Minister Boris Johnson plans to press ahead with legislation that is likely to anger some of his political allies. Bloomberg's You and Parts joins US Life from London with the latest Good morning You, Good morning Nathan and Amy. Back to work for Boris Johnson is less than two days since the UK Prime minister narrowly

survived the confidence vote among his Conservative Party colleagues. Now Bloomberg understands that Johnson is pressing ahead with divisive plans on the Northern Ireland Protocol. The legislation is likely to give ministers the power to UNI actually rewrite post Brexit trading rules. The European Union is warn the move could lead to a suspension of the UK's trade deal. In London, I'm You and Parts spoom Bok day break, Thank you you, and turning to the market's. US futures are down this

morning after yesterday's broad based rally. Sentiment remains fragile amid concerns interest rates will need to go hire to reign in inflation. However, Pemco portfolio manager Aaron Brown says easing supply pressures could temporary aggressiveness from central banks. As we start to seeing more ships supply, as we start to see you know, less of this demand for goods, we do think that you will start to see inflation peak

and then ultimately start to roll over. Aaron Brown of Pimco says waning supply chain disruptions leave her cautiously optimistic about markets in Asia. Amy China's tech stock saw a big jump. The government's latest batch of new game approvals bolstered bets. The industry's business outlook is on the mend. Bloomberg's Juliette Sally joins us with more on that from Singapore, and the Hank sink Teke index rose to a two

month high. A sentiment was bolsted the authorities are moving towards policy normalization, but the contrarian who called China's tech routes says the sector is still a cell. DZ Banks Manuel Mural writing he feels reports regulators and preparing to wrap up a probe into d D a premature. Elsewhere, continued weakness in the yend saw Japanese equities rise and

Australian Stokes recouped some of Tuesday's losses. Short dated India bonds rallied, with the four year yield dropping twelve basis points as India's Central Bank joined the jumbo rate high club, raising its benchmark interest rate by fifty basis points and opping its inflation forecast for the fiscal year to six point seven percent. In Singapore, Juliette Sale Bloomberg Daybreak, Thank you, Juliette, and europe Credit Swiss share shares are down more than

seven percent. The Swiss London's expects a loss at the group wide level and investment bank in the second quarter. Credits we says market conditions have remained challenging. Now there's no uncertainty this morning surrounding the Elon Musk Twitter deal, Amy and Bloomberg UNIEDA Young joins US Live with more on that and Rnita, Good morning, Good morning, Nathan. Elon Musk's attempts to get new funding to take Twitter private are now on hold, and it's because of uncertainty surrounding

the deal. That's according to Reuters, who reports the conversations have halted with private equity firms including Apollo Global Management until this clarity about the future of the acquisition. Now, Musk has been trying to reduce his thirty three point five billion dollar cash contribution to the forty four billion dollar deal by preferred equity financing. Meantime, He's also threatened to back away from the deal if Twitter cannot prove less than five percent of its users are bots. Live

in New York. I'm gonna need a young Bloomberg day break. Okay, we need to thanks. Futures moving lower this morning, straight ahead, local headlines, and the check of sports. This is Bloomberg. Thank you, Nathan. Five or seven in Wall Street, we bring in Michael Barr with more on what else is going on in New York and around the world. Michael,

thank you very much. Amy. New York lawmakers called on the Chelsea Piers Entertainment Center to cancel an upcoming event that includes Florida govern around the Santist, saying his appearance would be an insult to the city's LGBTQ community. According to an online event scheduled to scientists, a Republican and potential presidential candidate, we'll discuss the Florida model and why it's good for religious Americans on June twelve at the

Jewish Leadership Conference. Local lawmakers representing or running for office in the area I have said the booking is offensive to lgbt Q New Yorkers, especially considering Chelsea status as an important neighborhood for LGBTQ history. Critics specifically cited the Florida law to Santa Signed that restricts classroom instruction about sexual orientation and gender identity for children in kindergarten through third grade. Is the Senate getting closer to a compromise

on gun safety, Bloomberg said. Baxter reports Senator Chris Murphy is telling President Joe Biden every day we get closer to an agreement, not further away, and House Minority Leader Mitch McConnell is being very careful about commenting. I don't want to speculate about how many of my members might support it, So Majority Leader Chuck Schumer says it will need those votes. We don't just need thoughts and prayers, We need votes. We need action. We need at least

ten Republicans who are willing to say yes. But the hope is closer in San Francisco. I'm at Baxter, Bloomberg gay break. It comes as Matthew McConnaughey made a plea to Washington, d C. To make changes to gun laws. Now. The Valley, Texas native visited his hometown the day after the massacre at an elementary school that left nineteen children and two of their teachers dead. The actors spoke to the White House Press reefing calling out any legislators who

are hedging on change. We start right now by voting to pass policies that can keep us from having as many Columbines. Sandy Hooks, Parklands, Las Vegas is buffaloes, and you valudies. From here on, McConaughey called on lawmakers to rise above politics. Americans, raam. The five billion dollars super mall in New Jersey isn't only in the Hawk the bond holders. The mayor of Eastford says the shopping and entertainment complex. Oh was the borough between five point five

and six million dollars there. Jeffrey Liffe Hill Here says the mall, which is in the middle Lands Sports Complex, it's failed to make payments in lieu of property taxes. Global News twenty four hours a day on air and on Bloomberg quicktake powered by more than the journalis annalists countries. I'm Michael bar this is Bloomberg game all right, thank you, Michael.

Time now for the Bloomberg Sports update. Here's john sas Thanks Amy, and the Rangers have gotten to this point, two wins from playing for the Stanley Cup, winning only twice on the road. They won the two road games they had to win a the season would have been over. Game six in Pittsburgh, Game seven at Carolina, but they've lost the other seven on the road. Tampa Bay took last night's game four, four to one in the East Finals, are now tied into The only Ranger goal came late

the Martemi pinery. It was on the power fed. Rangers were not able to score in the two games at Tampa at even strength. They come home. They've won eight in a road Game five tomorrow night at NSG. Game three of the NBA Finals tonight in Boston, Celtics and Warriors tied at one win of the year for the Yankees. With an occurrence early on that has now happened twenty two times. Indeed, Bucks stood back, He's on the track, He's on the wall. Change done over the center fille

Wall a judge in Blast. But he is something Aaron Judge that's happened to live all the John Stirling on w F and twenty two omers for judge that was first with a man, John Carlos Stanton in his twelve also in the first seventh that ain't three runch shot for Anthony Rizzo his fourteenth. Yanks beat the Twins ten to four. They are forty and fifteen. They've won seven in a row. Mets loss in San Diego seven nothing managed only two hits off the Padres you Darvish Red

Sox one in tenantings. They sent the Angels to a club record thirteen bloss in a row. The Angels fired their manager, sixty eight year old Joe Madden, who's been managing the majors to the last seventeen years. He wont to pen it with Tampa Bay, of course, won a World series with the Cuts. John Stash where Bloomberg Sports team, all right, thank you, john S and P. Futures down twenty del futures down one hundred seventy four, Nasdaq futures

down forty six and a half. We have much more still to come on this Wednesday morning, on Bloomberg Daybreak. Stay with us. This is Bloomberg Bloomberg eleven three oh weather today, maybe an early shower, otherwise partly to mostly study and breezy. We'll see eighty five degrees seventy five degrees tomorrow it will be eighty and sunny. To start your weekend, 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. I'm Nathan Hager. European stocks are moving lower along with US equity futures on persisting worries about high inflation and slowing growth. Adding to those worries, new word from the Organization for Economic Cooperation and Development and its latest forecast, warning the world economy will face a hafty price for the war in Ukraine, encompassing weaker growth, stronger inflation, potentially

long lasting damage to supply chains. O e c D slash its outlook this year to three percent from the four and a half percent it predicted in December, and doubled its inflation projection to nearly nine percent for its thirty eight member countries. We checked the markets every fifteen minutes during the trading day on Bloomberg. Right now, SMP futures are down sixteen points down, futures down a hundred fifty one. NAZAC future is lower by thirty two points.

The docks in Germany down three tenths percent, the cat in Paris is lower by four tenths percent. To foot see one hundred in London lower by a quarter percent ten Your treasuries down eight thirty seconds. The yield at three percent deald on the two year two point seven four Nimex crude is up three quarters of one percent, or ninety cents, and a hundred twenty dollars thirty one cents a baril come X golled down a tenth per cent or two dollars forty cents at eighteen forty nine

seventy anounce. The euro is at one point zero six eight two against the dollar, British pound one point one five to nine, and the end is at one thirty three point six nine. Seven am Wall Street time we get NBA mortgage applications, and at ten we had a report on wholesale inventories. That's the Bloomberg business flash. Now here's Michael Barr with more on what's going on around

the world. Good morning, Michael, Good morning Nathan. Democratic US representative Karen Bass and billionaire developer Rick Caruso Breeze passed a large field of rivals looking to be the next mayor of Los Angeles and advantage to a runoff election in November. Bass Is boised to become the first woman to hold the job in the nation's second most populous city. The winner in November will replace outgoing Mayor Eric gar City.

In the NHL East Final, Arrangers lost to the Lightning for one, the series now tied at two games apiece. In baseball, the Yankees won, the Mets lost, The Red Sox and the Orioles were winners. The Nationals lost, along with the A's and Giants. Global News twenty four hours a day on here and on Bloomberg quick Take, powered by more than the journalists analysts more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg Gamey. Alright, Michael,

thank you so much. It is five twenty on Wall Street. We're live from the Bloomberg Interactive Broker Studios on Bloomberg Daybreak and Michael just mentioned it. Yesterday was a really busy primary day in the US. Seven states held elections, with a focus mainly on setting up those house races for November. Joining us now with a rundown of some of the biggest contests from yesterday, Bloomberg Government reporter Emily Wilkins. Emily, thanks so much for joining us. Always a pleasure to

have you. Oh, great to be honest, Amy, And yes, there were a lot of house races yesterday, although interestingly, I think the two most telling races for what we're going to see for the rest of the rest of this primary season as well as November, actually happened more at the local level, um the Los Angeles mayoral race and then a recall race for the San Francisco Attorney General.

And you saw, basically voters really gravitate towards the idea that they need candidates in place who are going to take crime seriously, who are going to crack down on crime. That they've seen these rising crime rates, they've seen rising homelessness,

and they're very really concerned. And they did vote to out Chelsea Bowden, the progressive district attorney who was elected in San Francisco Uh, you know, he was really seen as someone who wanted to be a little more lenient on criminals, kind of give them the second chance, and voters basically have said this approach is not working. Um. And I think this is something that you saw in the New York mayoral race. You've seen President Biden address.

He talked about his support for the police, wanting to to back the local police, wanting to make sure that there is a reduction in crime. Um. It'll be interesting to see if in Washington when it comes to the legislation that's past the messaging that you hear. You've heard a little bit from Democrats on this issue, but it's certainly something that Republicans are hammering them on and we'll

do so for the next couple of months. So we'll be interesting to see if there's actually any any laws or bills that come about as a result of this. So crime being a primary issue that that got San Francisco residents to recall their d A. Let's talk about what happened in l A. Then that race was neck and net the polls. Uh. In the polls as the voters were casting their's between Karen Bass, who's a representative and Rick Caruso, who's a billionaire. What does that also

indicate as far as November is concerned. Well, Rick Caruso, who's, as you mentioned, a billionaire developer of high end malls. He really has sort of pitched himself as the outsider in this race, the law and order candidate, probably the more moderate choice, who was formerly a Republican before he switched to the Democratic Party. Well, Karen Bass, you know, she's someone who has been a Democrat, a community organizer. She's well known in the community, She's represented that area

for quite some time now in Congress. And the fact that she is basing this very serious primary challenger does still kind of speak to the fact that you have crime and you have homelessness as major issues here. Um, and it'll be interesting to see a Crusoe technically has so far one more votes than Karen Bass has in this primary runoff, but not all of them have been counted.

Uh So we have to wait for some final totals on that to really get a sense of the strength of the two candidates, but we do know that they are the two that will advance to the general election in November. Let's shift out to New Jersey got about a minute and a half here. Where were the focus in New Jersey was really on those House primaries and local like you mentioned also the Trump backed candidates and how they did. What did the results in New Jersey also show you? So in New Jersey, it was a

great night if you were an incumbent Democrat Republican. A lot of them continue to lock down their seats, uh, you know, make sure that they are going to be running in the November runoffs at least. And you've got some really competitive races in New Jersey, particularly the Tom Keene Tom Melnowski race. UM. And you did see Kean who you know, uh, son of a former governor, grandson of a congressman. He has again one hit the Republican primary for that district, which is going to be very

good for Republicans come November thanks to newly redrawn district lines. Um. But at the same point, you know, you you saw a couple of different narratives playing out with Republicans. You saw some that had gone against Trump and what he wanted to vote for in terms of infrastructure, in terms of January six go ahead and win their primaries. But you also saw others who had voted against what Trump wanted in deep red states like Mississippi have now run

off runoffs in their primary. They had a really strong challenger and they're going to have to continue to defend their right for the Republican nomination. So we're still seen a bit of a mixed bag here and exactly where Trump's hold is. It seems to be that the red or the area of the country is the more likely it is that the lawmaker really needs to be in

line with what former President Trump wants. Really interesting stuff, and as more primaries come down the pike, will be watching more of those local races because that seems to be where the story is being told. Emily Wilkins, Bloomberg Government Reporter, thank you so much for taking the time with us. Always a pleasure. We'll be talking with Emily later during Bloomberg Daybreak. SMP futures down almost sixteen, DAL futures down a hundred forty five now, NAZZAC futures down

twenty nine. Much more to come on this Wednesday morning edition of bloom Daybreak. This is Bloomberg. Just ahead on Bloomberg Daybreak, we'll be talking with Greg val Gay with a g f investment about what those primary results may be indicating for him for this November that's still to calm. This is Bloomberg broadcasting live from the Bloomberg Interactive Broker's

studio in New York. Bloomberg E Living Free to Washington, d C, Bloomberg ninety nine one to Boston, Bloomberg one oh six one to San Francisco, Bloomberg nom sixteen to the country Sirius XM to A one nine team, and around the globe the Bloomberg Business at and Bloomberg Radio dot Com. This is Bloomberg Daybreak, five thirty on Wall Street. Good Wednesday morning. I'm Amie Morris and Nathan Hagar. We're just about four hours away from the open of US training.

Let's sketch up to date on the news you need to know at this hour. Beginning with some key primary results from coast to coast, Democratic representative Karen Bass and billionaire developer Rick Caruso breezed past a large field of rivals looking to be the next mayor of Los Angeles. They are advancing to a runoff election in November. The winner will replace outgoing l A Mayor Eric Carcetti. In San Francisco residents voted to recall progressive district Attorney Jason Boudin.

Boudin tried to reform the criminal justice system, but critics accused him of being too soft on crime. We've made mistakes, We've learned a lot, and I am so unbelievably appreciative about sixty of those voting favorite ousting Boudin. He'll be replaced by an interim district attorney chosen by Mayor London Breed New Jersey, Amy and the second district incumbent Jeff and Andrew won the GOP primary with eight six percent

of the vote. Van Drew will face Democrat Tim Alexander, who got in the fourth district incumbent Republican Chris Smith one with fifty eight percent of the vote. He'll face Democrat Matthew Jenkins ran on a post and in the seventh district, Republican Tom Kaine Jr. Received forty six percent of the vote. He will face incumbent Democrat Tom Malinowski,

who got nent of Democratic votes. In UK politics, Bloomberg News has learned Prime Minister Boris Johnson will go ahead with legislation to override parts of the Brexit deal that risks in flaming tensions with members of his Conservative party and the European Union. All right, let's turn to market, Samy. Futures are lower following back to back games for the SMP five in Europe. Shares of Credit Sweezer down more

than seven percent. The Swiss Lander expects a loss at the group wide level and investment bank in the second quarter. Credit sweet says market conditions have remained challenging after the invasion in Ukraine and monetary tightening around the world. New uncertainty surrounding the Elon Musk Twitter deal. Bloomberg's Ranita Young joins US Now Live with the latest. Ranita, good morning, Good morning Amy. Elon Must's attempts to get new funding to take Twitter private are now on hold, and it's

because of uncertainty surrounding the deal. That's according to Reuters who were sports conversations have halted with private equity firms, including Apollo Global Management, until there's clarity about the future of the acquisition. And Muska has been trying to reduce his thirty three point five billion dollar cash contribution to the forty four billion dollar deal by preferred equity Financing Live in New York. I'm Renita Young Bloomberg Daybreak, Nita,

thank you. Right now, SMP futures are down fourteen points down, futures down a hundred thirty six nanstack futures lower by twenty five points ten. Your treasury yield three point zero one percent. Local headlines and a check of sports. Next, This is Bloomberg, Thank you, Nathan five three down on Wall Street. Let's bring in Michael bar with more on what else is going on in New York and around

the world. Good morning, Michael, Good morning Amy. New York lawmakers called on the Chelsea Piers Entertainment Center to cancel an upcoming event that includes Florida Governor around the center's saying his appearance would be an insult to the city's LGBTQ community. According to the online of ends schedule, the Santists, a Republican and potential presidential candidate, will discuss the Florida model and why it's good for religious Americans on June

twelve at the Jewish Leadership Conference. The House Oversight Committee is set to here testimony today from survivors of mass shootings and the families of victims. Senate Minority Leader Mitch McConnell has privately expressed an openness to raising the age limit to buy an assault style rifle from eighteen to twenty one, but McConnell is not pushed for any specific policy. It is way too soon to start predicting how many

are going to vote for it. We don't have an agreement yet, and so I don't want to speculate about how many of my members might support it. McConnell has not publicly said where he stands on raising the age requirement. Majority Leader Chuck Schumer says he expects a vote in the near future. Democrats are ready to take good, strong action, and every member of this chamber is going to have to answer the question, can we actually get something real done?

Senator Schumer says they need ten and Republicans to vote for approval. Actor Matthew McConaughey is calling for Washington, DC to make changes to gun laws. He spoke to White House reporters, calling out any legislators who are hedging on change.

Can both sides see beyond the political problem at hand and admit that we have a life preservation problem on our hands, Panthew McConaughey, a native of you Valdy, Texas, visited his hometown the day after the massacre and an elementary school that left nineteen children and two of their teachers dead. Fierce street battles and heavy shelling continued in the strategic Ukrainian city. Meanwhile, Kiev is asking for more

rocket systems from the West. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Amy, all right, thank you, Michael on Wall Street. Time now for the Bloomberg Sports update with John stash Our. All right, Amy, Home ice continues to mean a whole lot on the

Stanley Cup playhouse. Rangers played that series with Carolina where the road team didn't win until Game seven, and now four games into the East Finals of Tampa Bay, both teams won twice at home. Game four, early goal over the Lightnings pat maroon, second period, Tampa scored again the other way, bounces it to the Lightning line. Quick up, root up for a lot of the middle coup shop, maybe a step in front hold shoot suck up good

l A. Stephen Stampko scored in the third. Late goal for the Rangers are Tammy panerin on the power play. Rangers had gone eighty six minutes without a goal and Plott and empty er at the end. Tampa Bay won four one thirty one stays for andre v Celeski. Rangers hope the home cooking continues. If they keep winning at the Garden, where they won eight in a row, they'll win the series. Game five tomorrow. NBA Finals Game three tonight in Boston, Celtics and Warriors tied to one another.

Yankee win their forty at seventh in a row ten four at Minnesota. Three Yankee home runs Aaron Judge, John Carlos Stanton, Anthony Rizzo, and two hits each from the two Yanks who have struggled mightily all season, Aaron Hicks and Joey Gallow only two hits all night for the Mets.

They lost in San Diego seven nothing, Padres rough for nothing by the second and the new Darvish beat Taiwan Walker, Dustin Johnson and Phil Nicholson getting ready to play in London and the debut of the new Live Golf tour boat will then play the US Open next week near Boston. But Tiger Woods skipping the US Open says his body needs time to heal. Tiger hopes to play the British Open next month. John stasheer Bloomberg Sport team, All right, thank you, John. It is on Wall Street time now

for the tri state business reporting. For that, We're joined by Bloomberg's Ed Corey. Paid Pal will let use his transfer certain cryptocurrencies to other customers exchanges and external wallets. The New York Department of Financial Services granted pay Pal a bit license. It governs businesses working with virtual currencies hours both. The New York Legislature ended its session last week.

Policymakers approved a corporate tax break for chip manufacturers. It has come under scrutiny, though for potentially constant taxpayers up to ten billion dollars over twenty years, and for passing

without a single public hearing or debate. Connecticut's Attorney General, William Tong says he'll asker possible criminal charges against members of the billionaire Sackler family over the marketing of the opioid pain killer OxyContin by their company for Due Pharma Sacklers agreed back in March to pay several states billions of dollars to resolve opioid lawsuits. That's your Bloomberg Trying State Business Report. I'm Ed Corey. Thank you, Ed. It's

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. Steve Chas in New York, we're talking about the return of the high school reunion after two years of host bogos Um when he's done a hoe on ca Fabian Omaha farmers have the bleakest outlook in two years. On soaring costs, I'm Gina Servetti infle

View c CEO in Minneapolis. I'm reporting that high drug costs are the focus of a Federal Trade Commission probe of units at United Hills CBS and Signal. I'm in Glory on w w K in Detroit. I'm reporting seventeen year old in Michigan will be able to attend bar. And those are some of the stories our tundred Bloomberg journalists and analysts are working on this morning around the world. It is thirty nine on Wall Street. The following is

an editorial from Bloomberg Opinion. If ever there was a pyric victory, Boris Johnson's win and the Conservative Party leadership Jones this week must qualify. Although the UK Prime Minister gandered enough support to stay on in his role, more than of Tory MP's told him to go. There's little mystery why Johnson's government has run up a dismay catalog of broken promises and bungled initiatives. It has seriously mismanaged Brexit and the response to COVID, and left many confused

about its economic priorities. The Prime Minister's threadbar authority is now completely shot. His net approval ratings stands at minus. A determination to hang on the face of such disapproval is unlikely to serve the Conservative Party's interests, much less the country's. The Tory's best case for retaining Johnson's services is that, for the moment, they have no obvious successor. Monday's embarrassment suggests that they better find one and fast.

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 opan go on the Bloomberg terminal. These has been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every weekday at this time, and terminal customers can read more at OPI, I n go, SMP futures down sixteen and three quarters, DAL futures down one five and Nasdaq futures down thirty. Much more still to

come on Bloomberg daybreaks. Stay with us. This is Bloomberg Bloomberg eleven three oh Weather today, maybe in early shower, otherwise partly the mostly sunny, kind of breezy going up to eighty five. We'll see eighty degrees with showers tomorrow, sunshine on Friday, going up to eight Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quick Take, He's a Bloomberg Business Lash. Nathan Haggard has risk off this morning,

with stocks moving lower. Persistent worries about high inflation and slowing growth are gripping the markets. We check the numbers for you every fifteen minutes during the trading day on Bloomberg. Right now, SMP futures are down fourteen point, staff futures down a hundred thirty five, NASTAC futures are lower by twenty one points. The decks in Germany down three tenths per cent. The cat in Paris is down by almost a half percent. The foot see one hundred lower by

a quarter of one percent. Ten Your treasury is down nine thirty seconds, with a yield at three percent yield on the two year two point seven four percent. Nimex crude is moving up up a one point one percent or a dollar thirty four two hundred twenty dollars seventy five cents a barrel. Comex school little change down seventy cents at eighteen fifty one fifty announced. The euro is at one point zero seven zero seven against the dollar,

British pound one point to five three nine. The end is at one thirty three point seven too, and be a mortgage applications at seven am Wall Street time, followed by wholesale inventories at ten. Campbell's among companies scheduled to report earnings today. That's a Bloomberg business flash. And now here's my bar with more on what's going on around

the world. Michael, Good morning, Nathan. Victims, families, and survivors of the Uvaldi and Buffalo mass shootings are in Washington, d C. Today for multiple hearings to call on the Congress to act on gun reform. In Iowa, a retired Navy admiral Democrat Mike Franken will challenge Republican Senator Chuck Grassley's re election this fall after winning his party's nomination

over two competitors. In the NHL East Final, the Rangers lost to the Lightning for one, series now tied at two games apiece, and baseball the Yankees one, the Mets lost, the Red Sox and the Orioles were winners. The Nationals lost, along with the A's and 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 bar and this is Bloomberg.

Amy all right, thank you, Michael. It's five forty nine on Wall Street. We're live from the Bloomberg Interactive Brokers Studios on Bloomberg day break after yesterday's primaries, we are looking at what these races and their results are telling us about what we can expect in November. Joining is now Gregg Valiant, chief US policy strategist at a GF Investment. Greg,

thanks so much for joining us. Always a pleasure. I gotta say, some of the big issues that keep coming up are crime, gun control measures now abortion rights, and of course inflation, including high gas prices. I want to know from you, though, if the election were just about inflation, it seems Democrats would be in trouble. But with these

other factors, does that make a difference. Perhaps In Good Morning, Amy, I think that once in a great while in the world of politics, there's a message that is so clear, that is a metaphor for what's going on politically that you can't ignore it. And that happened in San Francisco last night. The fact that a progressive defund the police Democrat got beaten in a landslide sends a chilling message I think to a lot of Democrats around the country that they need to go to the center, going to

the leftist coming in albatross for the party. In addition, in the race for the mayor of Los Angeles. You had Karen Bass and Caruso. They're both advancing to the November runoff, and you have, you know, one who is a representative, the other who is a billionaire in businessman. Does that give you any indications? Not necessarily, And I'd say that for Caruso, he should have won by a majority.

Now he's going to runoff where it's just him against Karen Bass, and I think it's going to be a lot tougher for Caruso than it was last night when he had several other candidates diluting uh the vote total. Caruso has money, and Caruso has you know, the argument that crime is out of control in l A. But

I think his chances have decreased. Something we're also noticing is that it's very granular how these results are turning out and what those results might be indicating when it comes to the primary and then perhaps the general election in a couple of years. Are you noticing that as well, that everything boils down to super local, which is kind of unusual, absolutely, right, Amy. I think that you know a lot of these races are based on parochial races,

and I tell everybody don't overinterpret these primaries. That's why I think the San Francisco vote is so unique and so important. But if there is a theme you mentioned at the beginning of our chat, the theme still is inflation. And I think that the average American who seeing gasoline prices over six dollars a gallon, uh, wants to extract revenge and they want to blame somebody. And who is going to get blamed, Well, it's the party in power.

Very briefly, I'm going to shift gears about the January six hearings. They're going to be public, they're going to be in prime time. They start tomorrow night. But when people are having a hard time filling up their gas tanks and dealing with those kitchen table issues that we talked about, crime, inflation, gun control measures, even is anybody going to tune in tomorrow? I think people will. I think, uh, it's probably not going to change a lot of votes.

I think that, um, you know, it's not going to move the needle. As someone who follows politics for a living, I'll be addicted to this. It's going to be fascinating. A lot of speculation about Bombshell's coming, new new evidence being introduced, but I think in terms of the election again, it's inflation more than anything else, and closer behind inflation is urban crime as we saw last night. And absolutely Gregg Vali, chief US policy strategist at a GF Investment.

Always a pleasure. Thanks so much, Nathan, okay me, thank you. It is coming up to five fifty three on Wall Street. It's time for a Bloomberg Law Report, brought to you by American Arbitration Association. Business disputes are inevitable, resolve faster with the American Arbitration Association, the global leader and alternative dispute resolution for over ninety years. More at a d R dot org. Now let's get to the legal stories

we are watching this morning. Here's Bloomberg's Jeff Bellinger. A House past bill would make more small businesses eligible for expedited and less expensive bankruptcy procedures. The Federal Trade Commission is suing the footwear maker Gravity Defire Medical Technology, accusing the company of deceptively advertising its shoes as helping to relieve pain. Fiser filed a federal lawsuit alleging that MSN Laboratories proposed generic versions of zel gems would infringe on

a fiser patent. 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. Now to another legal story we're watching. In the securities filing Monday, Elon Musk said he thinks Twitter is breaching their merger agreement by not meeting his demands for more information about spam and fake accounts. Legal experts widely speculated that Musk

is having buyer's remorse. But the problem for Musk is he can't just walk away from the deal by paying a breakup see Twitter holds all the cards because their agreement contains a specific performance provision that allows the social media company to force Musk to consummate the deal. For more Bloomberg's June Grosso speaks with Eric Talley, professor at Columbia Law School. So let's suppose that Twitter hasn't given all the information because of privacy concerns. Is that enough

to be a material breach of Twitter's obligations under this agreement. No, generally not. So there are two reasons why it's not. First of all, explicitly in the very same section of the contract that Mr Musk's lawyer has been citing, Twitter retains the right not to hand over information that would be confidential that might cause it to breach someone's privacy rights,

or that might undermine its future competitive position. And so it's conceivable to me that that's the exact claim they're making. He's not satisfied with it, but it is in fact baked into their contract rights all Eddie. Moreover, if these are the types of infirmities that can be cured over time, it also wouldn't get him off the hook from the deal. It would essentially possibly delay the closing of the deal until they could resolve what would and would not be disclosed.

But it's not gonna be a likely excuse to walk away from the deal. So one of the possible reasons why Musk is trying to be so focal and vocal about this particular issue is possibly he is trying to encourage the very folks that he arranged to lend him money to start getting cold feet about lending him money, because if they get cold feet and say, sorry, the

deal is off, we're not going to lend anymore. That's one of a few scenarios where he would plausibly be able to walk away and be exposed only up to this billion dollar termination feet. How long does Twitter have to wait before it says, Okay, we're going to court to enforce this contract. Well, in principle, they could file

suit anytime they want, did. I think one of the things that you really want to try to balance from Twitter's perspective, is to assemble a track record of acting in good faith, moving things along in the direction of trying to close this transaction without yourself getting hotheaded or

overly demanding. So the executives of Twitter has no doubt sort of taken this lesson to heart that they're in a relatively strong position based on the contract, to the extent that Musk is trying to goad them into a public spat or a spat that causes them to start acting petty and withholding things that could just put them

in breach of this contract. So I think their approach is probably the right one is to say, navigate this boat as steadily as we can, realizing that we're gonna get hit by a tidal wave every once in a while. That's got Elon Musk's fingerprints all over it, but keeps sailing towards the north Star, and if at some point he does something definitive to walk away from the deal, that's when we will go ahead and file suits. MBA

Law School speaking with Bloomberg's June Grosso. You can 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 and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b Logo. SMP features down fourteen points, now down features down a hundred thirty eight, NAZDAC features lower by twenty

eight points. The tenure treasuries down eight thirty seconds. The yield at three percent yield on the two year two point seven four nimex screwed up one and a half percent, or a dollar eighty to a hundred twenty one dollars one cents. The barrel comic School little change at eighteen fifty two ten an ounce. Bloomberg Daybreak continues. This is Bloomberg