Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
We begin with a major development at the NATO summit in Lithuania. Turkey has dropped its objections to Sweden joining the Alliance. NATO's Secretary General Young Stoltenberg says Turkey will ask its lawmakers to approve Sweden's membership as soon as possible.
Completing Sweden's accession to NATO is an historic step that benefits the security of NATO alas at this critical time, it makes us all stronger unsafer.
NATO's Jen Stoltenberg says he can't give exact dates for Sweden's admission to the Alliance. Bloomberg's Maria Todao is in Lithuania and says it should be a relatively quick process.
When I spoke to the Swedish FOREI minister last week, we said, as soon as we get the go ahead from both parliaments, we will deposit our documents and then it's up to go. We want to see our flags at the NATA headquarters by the end of the month, so this is a timeline today. Obviously, yesterday you should have seen the smile on the Swedish Prime minister his faith.
A lot of reliefs, certainly for this country. There really felt there was a risk of being stuck in Noman's land, but obviously we know now that is not the case.
And Bloomberg's Maria today our reports Hungary is now the only NATO member yet to approve Sweden's bid. They're expected to do so in the coming days.
President Biden's weighing in on the historic agreement. Karen He spoke from the NATO summit this morning, the first.
Time that NATO leaders will meet with thirty one together and looking forward to a meeting very soon with thirty two members with their edition of Sweden.
The President Biden plans to meet with Turkey's president later today. They are likely to discuss a sale of F sixteen fighter jets to the nation.
Well, another major story we're following this morning, Nathan assented hearing focused on the proposed merger between the Live Golf and the PGA. The hearing gets underway today on Capitol Hill, and Bloomberg's Amy Morris as a preview from our ninety nine to one newsroom in Washington.
Members of the Senate per minute Subcommittee on Investigations want to know what the merger would mean for the sport in Saudi Arabia's influence within the US. Sources tell Bloomberg that officials plan to assure lawmakers that the PGA has non negotiable terms in the deal giving it control of the combined entity, allowing the PGA to drive the future of the pro golf business. The two sides haven't even agreed to financial terms yet, and they still need approval
from regulators. But what lawmakers really want to know is what led to this sudden decision to merge after months of acrimony in Washington, I Mammy Morris Bloomberg Daybreak.
Thanks Amy. The PGA Live Golf deal has drawn a lot of scrutiny across the country, and today families of nine to eleven victims plan to appear at that hearing. We get that part of the story from Bloomberg's at Baxter.
The family's long support of the PGA's effort against Live from raiding its players and feel betrayed now by the merger. Senator Richard Blumenthal says they don't think the PGA should be doing business with Saudi Arabia.
Many of the nine to eleven families told me that they are seeking justice, simple justice conparents from WABA, which has resisted that effort at every turn.
Bloomenthal says the families believe the PGA is essential to American culture and economy and should be preserved as an American institution. In San Francisco, I met Baxter Bloomberg day break.
All right, ed, thank you, But we also have new developments this morning in the classified documents case against Donald Trump. The former president has asked a federal judge in Florida to postpone setting a trial date. Trump is objecting to plans to set a date this year, signaling he might want to delay it until after the presidential election on August fourteenth. Trial date was initially set by the judge in the case.
Let's turn it back to the markets now, Karen More. Fed officials are coming out in favor of additional rate hikes this year. San Francisco FED president Mary Daily says the risks of doing too little outweigh those of doing too much.
We're likely to need a couple more rate hikes over the course of this year to really bring inflation back into a path.
That's a long sustainable two percent path, and.
That sentiment from Mary Daily was echoed by FED Vice Chair for Supervision Michael Barr and Cleveland FED chief Loretta Master. Markets are currently pricing in a rate hike this month, followed by rate cuts starting in March.
Well big banks may soon face higher capital requirements from US officials. The fed's top banking regulator, Michael Barr, says he wants banks to start using a standardized approach for estimating credit, operational and trading risks rather than relying on their own estimates. Barr says the Fed's annual stressed should be rejiggered to better capture dangers that firms can face.
Corporate news and consumer news really Amazon's Prime Day kicks off today, but will it really make a difference for the company? New data show e commerce is not the driving force it used to be for the stock. Bloomberg's Lisa Matteo has the story.
In the past four years, Amazon stock has fallen in the week of the two day sales event. Analysta JP Morgan say Prime Day could generate about five billion dollars of incremental revenue this year, a thirteen percent from last year, but the pace of growth has slowed steadily each year since a thirty percent increase in twenty twenty. Investor focus has now shifted to the company's faster growing and profitable cloud computing unit In New York. Lisa Mateo Bloomberg Daybreak.
Ry Lisa, thank you well. Amazon founder Jeff Bezos is one of the corporate heavyweights appearing at Allen and Company's annual conference in Sun Valley, Idaho, this week. Disney's Bob Iger open AI CEO Sam Altman and Microsoft CEO Sandanadella are also expected to attend. The summit is typically a hotbed for handshake mergers, but it could take on a different tone this year against the backdrop of M and A activity. This is Bloomberg.
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're joined by Bloomberg's Michael bar Good morning, Michael.
Good morning, Nathan. The cleanup begins from the dangerous flooding from the severe rainstorms that fell in New York's Hudson Valley over the weekend. Off to one woman dead. Orange County executive Steve Newhouse says in just a few hours, nine inches of rain fell, swelling the Highland Brook to the point that it overwhelmed the tiny communities along its banks.
We're transitioning into a recovery stage.
We're trying to.
Help everybody that has flooded out houses, open up roads, work with the utilities.
As for today, the Tri State area will deal with the heat. Bloomberg meeting religious Rob Carolyn. It has the latest, Michael.
High pressure is going to be building across the Tri State area in the wake of the system that produced the heavy rain late in the weekend. That high pressure system building in has some very warm air associated with it, and temperatures across the Tri State area look very warm, particularly over the next seventy two hours. We'll see afternoon heights near ninety today, ninety to ninety five tomorrow, and
then back up again around ninety on Thursday. The Friday and Saturday look a little cooler due to the fact that once again we're going to be dealing with some showers and thunderstorms. And he continues to build in the Southwest as well. Michael.
Thanks Rob speaking about that, Triple digit temperatures are expected in parts of the South for several more days. And what could become the longest heat wave on record. El Paso, Texas has seen twenty five consecutive days of one hundred plus degrees. In Florida, it's not just high air temperatures. An ocean heat wave is pushing water temperatures in the Gulf of Mexico into the mid nineties. The hunt goes on for Michael Burham, an escapee from a northwestern Pennsylvania jail,
since last Thursday. State Police spokesman Lieutenant Colonel George bivins.
There are currently an excess of fifteen federal, state, and local agencies actively participating in the manhunt. The United States Marshall Service has added significant resources to ensure that regardless of where Burham may try to run, he will be pursued by the full force of law enforcement.
Police say they have discovered small campsites near Warren, Pennsylvania, possibly associated with the thirty four year old ESCAPEEEA said it's scrambled warplanes to ward off a US byplane in its exclusive economic zone. The sister of leader Kim John Noon said early today and that the US aircraft retreated Global News twenty four hours a day, powered by more than twenty seven hundred journalists nanalyst in over one hundred and twenty countries. Michae Lebarr. This is Bloomberg, Nathan.
Thank you, Michael.
Time now for the Bloomberg Sports Update with John Stanshawer.
All right, Nathan. The American League has been dominant in the MLB All Star Game in the past decade, as in lost since twenty twelve. See what happens tonight in Seat all the Yankees. Garrett Cole will start for the American League.
Some of my fondest memories growing up, one of them is watching Pedro in the All Star Game starting it. And I've been to a few of them, and you know, had the pleasure of watching some future Hall of famers to it, and I've always been like, man, I really really hope I could do that one day.
Leannel going with Arizona, Zach Gallon, Andive. The Mets are represented by code Is Sanga and Pete Alonzo, who was in last night's home run Derby, but like last year, Alonzo lost to Seattle's Julio Rodriguez, who electrified the home crowd with a forty one home run outburst in the first round, but then he lost in the semis a Toronto's Vladivier Guerrero Junior, who then held off Tampa Bay's Randia rose Arena in the final twenty five twenty three, so Vlad Junior wins the event that was won by
his father. In two thousand and seven, Yankees had their new hitting coach at Sean Casey, a career three hundred hitter himself. He was a Cincinnati Reds teammate of Aaron Boom. There had been conflicting reports about what had really happened with the Northwestern football team in terms of hazing. After an investigation, the original penalty to longtime coach Pat Fitzgerald was just a two game suspension. Last night that was changed. Fitzgerald was fired. He was the coach for seventeen years.
Chris Eubanks, the six foot seven inch hard serving Atlanta native, has come out of nowhere to reach the Wimbledon quarterfinals. He had never before qualified to play the event. He beat the fifth seeds to finals hits up five saith Carlos alcaraz One in four the quarterfinals. Beginning today, John stash Thatwer Bloomberg sports.
From coast to coast, from New York to San.
Francisco, Boston to Washington, DC.
Nationwide on Syria's Exam, the Bloomberg Business app and Bloomberg dot Com. This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hager. The NATO Leader Summit is just getting underway in Lithuania and already there has been a major development. Sweden is a step closer to joining the Alliance now the Turkey has dropped its objections that had held up the bid for months. Bloomberg's Maria TODAYO is covering the summit in Vilnius and Maria joins me. Now this really came about seemingly at the last minute.
Maria absolutely, and it was not clear at all that it would get fixed. The situation at the major summit. At one point it almost seems that person and Erdawan of Turkey had made a connection between yet to Sweden joining me to but then of course a commerce station at the same time about Turkey and the European Union. This is a debate that has racked on four years, and the European Commission making it clearer to that they were not connected and that one should not have an
impact on the other. That was dropped yesterday by the Turkish president. At the end of the night, there was a bilateral mean time between the two delegations. It was moderated by the Nature Secretary General, and that is the magic of diplomacy. But also the meetings and the conversations
that happened behind closed doors. President eard One no longer connecting his gests to the European Union and also dropping the veto instructing now the Turkish parliament to ratify Sweden into Nijor, and that is incredibly important because without that political signal from Erdawan, the country could have stayed in the waitings for many, many, many months, and that was very problematic for Sweden. They believed it was becoming a
national security issue. Now we also see the trickle down effects because the Hungarians, who are yet to ratify this memory ship bid, have also said, you know what, we will also say yes to Sweden. This is now a technicality and it is very likely now that this is now a new member of the Alliance that will join very shortly.
I mean, this has to be seen as a really important step for NATO, just given the fact that the whole idea behind the summit is to continue to show unity around Ukraine in the face of Russia's aggression. What kind of a signal does Sweden's entry into NATO send.
The objects here are very important because NATO wants to project this idea that we are so united, we're more united than we've ever been because of the Russian invasion of Ukraine and that has really bolstered our alliance in terms of the military, but the political allegiance to the police into it. They did not want to have a debate that word or could get toxic in the midst of the stomach. So the fact that this was cleared
on the nights before the stummit started as a huge relief. Frankly, you should have seen the smile on the Swedish Prime minister yesterday. United it with a smile from year to year. In terms of today, the debate moves now to Ukraine. The question is whether they can get to that unity when it comes to this invitation or not for nature membership, we know this is a very delicate issue and again it will put that unity to the test.
I got to think that there's going to be a lot of pressure on NATO to do something with Ukrainian President Zelensky, as I understand it appearing in person in Vilnius.
Yes.
And at the point I got to be very honest, the focus of all the reporters here, and we're probably in the thousands, is when is Vi Lensky going to arrive, because we know he is going to participate in the Nature sessions already. The symbolic nature of that, the objects of that go back to the unity conversation that we were just debating on the show. And look, it's a complicated situation because on the one hand, there's this idea that Ukraine needs some kind of signal but to keep
the country in a gray area. And yesterday I spoke to the Lithuanian president, who is also the host of the summit. He told me this gray area you're not in, but we're going to help you, but you're actually out. This is the most dangerous area to be. The country needs now a clear signal. What the Ukrainians one is
a political invitation. They know they won't get a formal one because the war is still going on, but they want a political signal that will stay clearly in a community Ukraine will join me to once the conditions allowed. That is what they want. President Biden obviously made it. Technically they're not ready yet for a formal invitation, but the Native Secretary General also said that is not necessarily bad news. They can still get a good package. The
question is about the structure. How are they going to freeze this idea? And I think that's where we're going to see really the talks behind the scenes, the linguisticals almost.
Behind it, even ahead of Ukraine potentially getting assurances here from this NATO summit. Just having Sweden and Finland getting into the alliance here fills it a huge defense gap for NATO, doesn't it huge?
And obviously Sweden Finland their neighbors are also geographically very
connected to Russia. This is a Baltic Sea and you also have the Baltic countries, and what they argue is that when you have a very strong nature presence there, not only just makes the Nordics safer in that respect was the Russian border, but it also makes the sea, the Baltic Sea, more protected and secure for the Baltics, who also say they feel Russia could potentially be a threat to What they argue is with this changes, we're
now feeling more secure, protected and the nature structure is complete.
This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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