Noises Detected in Search for Missing Sub; Powell's Congressional Testimony

From the Bloomberg Interactive Burgers Studios is Bloomberg day Break for Wednesday, June twenty.

First coming up today, A.

Hopeful sound noises are detected in the search for the undersea vessel near the Titanic.

New tensions emerged with China after President Biden refers to Shijin Ping as a dictator.

Fed Chair J.

Powell delivers his first day of congressional testimony this morning.

And FedEx does not deliver for investors with its latest earnings.

President Biden prepares for his state visit with India's Prime minister. Plus New York State is banding employer's use of non compete agreements. I'm Michael bar More Ahead.

I'm John Stasharon Sports Garrett Cole pitched the Yankees so much they didn't win over Seattle, the Mets, and Justin Verlander lost in Houston.

That's all straight Ahead on Bloomberg day Break, the business news you need to starn your day in just one fifteen minute podcast each morning on Apples, Spotify, the Bloomberg Business app and everywhere you get your podcasts.

Good morning, I'm Nathan Hager.

And I'm Karen Moscow. Here are the stories.

We're following today.

We want to update you first on the missing submersible near the wreckage of the Titanic and what may be a hopeful sign. The Coastguard says underwater sounds have been detected. Now search teams are being redirected to find out where those sounds came from. Coastguard Rear Admiral John Mager says they're using planes, remotely operated vehicles, and underwater robots to find the five people on board the titan.

It's a really complex case. Their active debris fielled down on the bottom of the ocean, and a lot of complexity of working at that time.

Rear Admiral John magertell's ABC News it's a race against time. The Titan is designed to carry up to ninety six hours of oxygen. At this rate, the ship may have less than twenty four hours of air left well.

Another major story that we're following this morning, Nathan, involves the fallout from the plea deal for Hunter Biden. The deal may help avoid a messy public trial and keep President Biden's son out of jail, but the agreement also provides fodder for the president's political opponents. Bloomberg's Amy Morris or Poor Sermer a ninety nine one newsroom in Washington.

Hunter Biden's legal troubles haven't stopped the President from supporting him.

Very proud of my son.

Republicans are outraged with the deal, vowing to continue their probes into the Biden family. Congressman James Comer is chair of the House Oversight Committee.

This has absolutely nothing to do with our investigation of Joe Biden, and we're going to continue to move forward with that.

The Congressman Jamie Raskin, the top Democrat on that committee, says, if there is a double standard, it's with the Trump family, not Biden.

They should check out what happened with Jared Kushner.

He registered to create a new corporation, which promptly received two billion dollars from the Saudi government.

Judge still has to approve the Plea deal, even as the lead prosecutor says the investigation is ongoing. In Washington, I'm Amy Morris, Bloomberg Daybreak.

Thank you, Amy.

While the rhetoric heats up between the parties over Hunter Biden, in tentions between the US and China may be rising again, and China, says President Biden made a quote public political provocation by referring to his counterpart she Jinping as a dictator. Biden told a California fundraiser that the Chinese leader had been embarrassed by an alleged spy balloon because he didn't

Well, turning to the markets now, Nathan, all eyes today and tomorrow are focused on Washington. That's where Fed Chairman j Powell gives his semi annual report to Congress. We get a preview from Bloomberg's Michael McKee.

In the House today, the Fed Chairman will have the opportunity to clarify what some feel was a confusing message on the path for interest rates. What would lead central bankers to raise rates again something their own forecasts suggests will happen? Does inflation have to rise, does unemployment or does it just have to remain flat? What is the ultimate end rate? And how soon after that might they begin the rate cuts they foresee for twenty twenty four.

Daybreak, Okay, Mike, As investors await possible clues on the future of rates, Brown Brothers Harriman, head of Currency Strategy, when Thin thinks the FED is far from done, when all its.

Dust settles, I think the FED is going to go higher for longer.

The market still doesn't quite believe the Fed.

They cut one hike pricing, but.

The fedest single number two. And I said to a.

Lot of analysts, I don't think the Fed will hike again.

That this isn't just a pause, this is the end. I wholeheartedly disagree.

Brown Brothers Harriman's whin then expects a stronger dollar the rest of the year.

Well.

Rates are also in focus in Europe. This morning, Nathan after a hot inflation rading over in the UK, and we get the latest of the Bloomberg's Ewen Pot's in London.

Good morning you in, Good.

Morning, count of Nathan. It's hot in London again today. But while the weather is nice, a fourth inflation reading high that estimates is not so welcome. Consumer prizes rose eight points seven percent in the year to make the flying forecasts for a slowdown in price gains core inflation unexpected. The rose on last month. It's now at a thirty one year high. It's all a headache for the Bank of England as they weigh their next move in tomorrow's

Day break, marry you and thank you. Back here in the US, we're watching shares of FedEx in early trading. They're down about three percent after the company gave a twenty twenty four profit outlook that came in below analysts essimate. So we get the story from Bloomberg's Charlie Pellett.

A drop in package demand offset CEO raj subermanians four billion dollar cost cutting plan the company, who's sought to reduce expenses as the industry deals with a decline and package volume following two years of surging demand fueled by pandemic driven online shopping. In a separate statement, FedEx said CFO Michael Lens will retire effective July thirty, first in New York, Charlie Pellett's Bloomberg Daybreak.

Right, Urlie, Thanks, and JP Morgan. Chase is making a fresh round of layoffs in Asia. Bloomberg News has learned the bank is cutting about twenty investment banking jobs as deal flows remain muted. Sources say the reductions impact mostly junior staff and associates and analyst levels, and sectors including consumer, healthcare and private capital markets.

Time now to take a look at some of the other stories making news in New York and around the world, and for that we are joined by Bloomberg's Michael Barr.

Good Morning, Michael, Good morning, Nathan. New York is joining other states on banning employee non compete agreements. The bill coincides with Federal Trade Commission and National Labor Relations Board actions to fight non competes. The measure now heads to Governor Kathy Oakle's desk after the state Assembly passed it yesterday. Employer's use of non compete contracts, which restrict workers from going to work for a competitor, an estimated one fifth

Exact scenario where there is an e bike store on the first floor and residences above, and the volume of fire created by these lithium ion batteries is incredibly deadly.

The FDN Y says the shop was inspected in August of last year and summonses were issued. A former NYPD officer is among a group of people convicted of working for China. More from Bloomberg's Dan Schwartzman.

Three people, including a retired New York City Police sergeant, had been convicted of acting as agents of the People's Republic of China. Prosecutors showed that the three carried out a legal law enforcement operation in the US, including trying to pressure dissidents to return to China. The three were in a group of eight originally charged back in October of twenty twenty of participating in Operation fox Hunt, which a Chinese government says was a legitimate operation to track

President Joe Biden is hosting Indian Prime Minister Narindra Modi for a state visit this week. Biden hopes to improve his relationship with the leader of a nation of one point four billion at the US Administration sees as a pivotal force in Asia for decades to come. Dozens of Congressional members are urging President Biden to talk to Mody about human rights concerns. Today, Modi is highlighting inner tranquility. His public schedule for the day opens with a group

Thank you, Michael. Time now for the Bloomberg Sports update, and for that, here's John Stanshall.

All right, Nathan, yankees back home after the rough weekend in Boston, and thankfully Garrett Cole was on the mound dominant in seven to thirty. The is allowed one run only four hits, struck out eight. Clay Holmes got the last five outs, so much needed a Yankee win three to one over Seattle. They beat the Mariners George Kirby, the Ryan native who had shut them out in a recent game in Seattle, Billy McKinney to the two run

Got a really good team. When we're flying high and playing the way we're capable of right now, we haven't been doing that, and so it looks bad. It feels bad, It tastes bad, and no one likes losing, so so I understand why the fans are upset and not happy was how it's playing out.

Cashman said he still has belief in rookie short staff Anthony Volfe, who's among many Yankees who have been struggling.

Mets at Houston.

Justin Verlanders faced his former seven Alex Bregman hit a two on homer off him. The Astros one four to two, of the Mets to only four hits. Didn't have a base runner off Franbur Valdez until the sixth inning. They didn't score until the eighth Freeway Series. Dodgers shut out the Angels two nothing behind Clayton Kershaw. The Cincinnati Reds last season lost one hundred games. They just won their tenth game in a row, and the Giants, a five

Sports from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias XAM, the Bloomberg Business appened Bloomberg dot Com. This is Bloomberg Daybreak.

Good morning.

I'm Nathan haig Well. A flurry of legal news came out of Washington yesterday morning. First, we learned the trial date for former President Donald Trump, in the classified documents case. A federal judge set that for mid August. It was also announced that the current president's son, Hunter Biden, is facing tax and gun charges and reached a plea deal

Anything short of a felony indictment of Hunter Biden was going to be interprend by some folks as to tier. I think it remains to be seen as to what's in, what are the facts, what was the circumstance behind Hunter Biden's tax issues.

Now that the German comers.

Made a really good point, which is now that we are either at the end or moving speedily to the end of the investigation of Hunter Biden, then the Department of Justice no longer has an excuse.

Not to share information with Congress. So as between both the public hearing on the plea deal and the congressional investigation, my guess is we'll see a lot more about Hunter Biden than we know. Right now and only then will you be able to sort of have an informed opinion as to a two different tiers of justice in this consum.

Does this quiet the voices of concern who thought Hunter Biden was never going to be acknowledged here in Washington, that this would never actually become a.

Case, Yeah, a little bit. In fact, I had some conversations with some of my friends, by Republican friends who are complaining about, well, they're charging Trump but they're not charging Hunter. And then you know, say, well, okay, they charge Hunter. He's been okay with them charging Trumpet very quiet, very quickly. So again, whether or not it's a serious charge, I guess we don't know yet until we see the facts in the file.

Mick.

The idea of an August fourteen trial date the all the while, and that might frankly be a bigger story that's been kind of overshadowed by the Hunter headline. Do you think a trial actually begins in August?

And no, you're not supposed to make, you know, absolute tradictions when you're dealing with politics, and there's a lot of politics here. But I'd be willing to bet my house there's no trial at August fourteenth. Keep in mind, the right to a speedy trial, which does exist under our constitution, is possessed by the accused, not by the government. So you know, if don Trump wants to have slowed things down, there's going to be plenty of opportunities to do.

So.

You've made a good point about how hard it's going to be to picking jury. I disagree with your the reporter, respectfully. I think it's going to be very, very difficult to pick a jury here because everybody's going to have an opinion about it, and Donald Trump is going to be looking for one juror who's willing to say, you know, I don't care what he did, I'm not convicting it because he only has to get it one person to hold out, and the government knows that. So that's going

I am, says Mick Mulvaney. That said, does the trial begin before the presidential election or is that what we're talking about here, anything to delay it past the election.

I talked to a lot of my friends who were in the federal prosecuting business, a lot of folks who used to do white collar criminal defense to a man and a woman. They all thought this trial would take place after the election. I think we're all surprised by this announcement, at least of this early date. And whether or not that changes the caucus, you know, i'd have to talk to folks who've done this for twenty thirty years. I'm not sure how Donald Trump delays it for a

I don't know if you saw Donald Trump and Brett Baer on Fox News. There were some pretty remarkable moments, and it's been suggested that some of this could be entered as evidence in the trial, particularly as he discusses moving the boxes around and what was in the boxes. Here's a moment that you might have missed.

So why not just.

Hand them over then? Because I had a boxes I want to go through the boxes and get all my personal things out.

I don't want to hand that over to Narrow yet, and I was.

Very busy, as you've sort of seen.

Yeah, Ords, you then tell this aid to move to other locations after telling your lawyers to say you'd fully complied with the subpoena when you hadn't.

But before I send boxes over, I have to take all of my things.

Actually, the former president do damage to himself.

Yes, I was watching it. I was actually texting a little bit with Brett Bair. You know, the interview wasn'tlive. All I could think of is now the public sort of gets a chance to see why so many of Donald Trump lawyers quit because he made things much much worse for himself. There's one thing that was It wasn't in the segment you just picked up, but it was right about the same time where he said. Rhett asked him about the papers that he held up on the

But it's not.

In order to make that defense, he has to testify, and I can guarantee you that Donald Trump is not testifying in this case, so that that is going to be used against him. Most of a lot of that video would be used against him.

This is blue Burg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.

Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts.

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Plus listen coast to coast on the Bloomberg Business app, serious XM Channel one nineteen, the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.

And I'm Karen Moscow.

Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak