Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: We begin with Janet Yellen's first full day in China.
Speaker 3: This morning, the Treasury Secretary spoke at a roundtable with
Speaker 3: US businesses operating in China. She highlighted the need for
Speaker 3: companies to diversify rather than decouple supply chains.
Speaker 4: The United States does not seek a wholesale separation of
Speaker 4: our economies. We seek to diversify and not to thecouple.
Speaker 4: The decoupling of the world's two largest economies would be
Speaker 4: destabilizing for the global economy and it would be virtually
Speaker 4: impossible to undertake.
Speaker 3: Jenny Yellen's remarks comm as China imposes restrictions on exporting
Speaker 3: minerals that are crucial to key technologies, well.
Speaker 2: Nathan, the Treasury Secretary will have a busy day in Beijing.
Speaker 2: She had informal talks with China's former vice premier and
Speaker 2: central bank governor. She's also meeting with the country's new premiere.
Speaker 2: We get more from Blomberg's Rebecca Chun Wilkins. In Hong Kong.
Speaker 5: There's Lee Chiang here, who is perhaps the newer relationship
Speaker 5: this is their first time meeting in Beijing since he
Speaker 5: took on that more senior role in particular, so we
Speaker 5: see really Yellen going out and meeting with people both
Speaker 5: passed and present to try and get these lines of
Speaker 5: communication open again, try and find some of these areas
Speaker 5: of common economic ground, even as we know both sort
Speaker 5: of have these retaliate true sort of tech dots pointing
Speaker 5: at one another in the background.
Speaker 2: And Bloomberg's Rebecca Chu and Wilkins as the Treasury Department
Speaker 2: describes Yellen's talks with Chinese officials so far as quote substantive.
Speaker 6: Well.
Speaker 3: In addition to Yellen's trip to China, Karen, we're also
Speaker 3: keeping a close eye in the US labor market. The
Speaker 3: government issues monthly payrolls data for June today, Economists predict
Speaker 3: the gain of two hundred and thirty thousand jobs on
Speaker 3: the heels of yesterday's surprisingly strong ADP report. We get
Speaker 3: more from Bloomberg's Michael McKee.
Speaker 7: Economists aren't buying the ADP data showing almost half a
Speaker 7: million jobs created in June, but are asking what if
Speaker 7: a FED rate hike is all but priced in for
Speaker 7: this month and expectations are that labor market remains tight
Speaker 7: enough to be an inflation problem even if the ADP
Speaker 7: numbers are overstated. At their June meeting, FED officials also
Speaker 7: lowered their unemployment forecast for the year now, anticipating the
Speaker 7: jobless rate will rise to four point one percent, But
Speaker 7: the consensus is after going up in May, unemployment likely
Speaker 7: fell again in June, which leaves the final question what
Speaker 7: happened with wages, ADP and the market forecast, is that
Speaker 7: earning's growth slipped in June. That would be something the
Speaker 7: Fed is looking for. Michael McKee, Bloomberg Daybreak.
Speaker 2: All right, Mike, thank you well. After that ADP rapport,
Speaker 2: treasury yields hit their highest levels in fifteen years. Now.
Speaker 2: That's fueling bets for more rate hikes from the Fed.
Speaker 2: Dallas FED President Laurie Logan addressed the issue just minutes
Speaker 2: after yesterday's private payroll data.
Speaker 8: I remain concerned about whether inflation will return to target
Speaker 8: in a sustainable and timely way, and I think more
Speaker 8: restrictive monetary policy will be needed to achieve the fomc's
Speaker 8: goals of stable prices and maximum employment.
Speaker 2: Dallas d President Laurie Logan spoke at a Central bank
Speaker 2: Research Association Forum in New York.
Speaker 3: Karen, We're also waiting for an announcement from President Biden.
Speaker 3: Today's expected to release a plan to lower health care
Speaker 3: costs for some Americans. Amy Morris has a preview from
Speaker 3: our Bloomberg ninety nine one newsroom in Washington.
Speaker 9: The administration wants to close loopholes on insurance plans that
Speaker 9: provide reduced coverage. Now, those plans are often cheaper, but
Speaker 9: critics say they leave consumers lacking comprehensive coverage and puts
Speaker 9: them at risk for higher bills in a medical emergency.
Speaker 9: The administration will also release guidance intended to prevent providers
Speaker 9: from avoiding billing regulations by contracting with hospitals defined as
Speaker 9: out of network. White House advisor nar Attanden says the
Speaker 9: proposals should protect consumers from unexpected bills if they have
Speaker 9: signed up for miss leading insurance plans. In Washington, I'm
Speaker 9: Amy Morris, Bloomberg Daybreak.
Speaker 2: Right, Amy Fan, thank you. In the social media space,
Speaker 2: the world is still a buzz about the battle between
Speaker 2: Mark Zuckerberg and Elon Musk. As Instagram's threads enters its
Speaker 2: second day of existance, we get the latest from Bloomberg's
Speaker 2: John Tucker, John, good Morning, and.
Speaker 10: Karen, the heat is on must Twitter now threatening to
Speaker 10: sue Zuckerberg's Meta for its new app. The website Semaphore
Speaker 10: quotes a lawyer for Twitter as saying the company has
Speaker 10: serious concerns that Meta Platforms is engaged in systematic, willful
Speaker 10: and unlawful misappropriation of Twitter's trade secrets and other intellectual property.
Speaker 10: In a tweet, Elon Musk said competition is fine, cheating
Speaker 10: is not. The new app very similar to Twitter, although
Speaker 10: some of the language is different. It's not a tweet,
Speaker 10: it's a thread. Visually, Threads does look similar to Twitter.
Speaker 10: The Daily Mail reports in the first twenty four hours
Speaker 10: after launch, Threads has already hit fifty million users and
Speaker 10: seen nearly one hundred million posts in New York. I'm
Speaker 10: John Tucker, Bloomberg day Break.
Speaker 3: All right, John, thank you now. A Bloomberg News exclusive
Speaker 3: involving Apple's new headset told the rollout of the new
Speaker 3: device will be relatively slow. The company plans a retail
Speaker 3: launch of its Vision Pro headset with appointments in select
Speaker 3: US markets early next year. Source to say Apple will
Speaker 3: designate special areas in the stores with seating, headset, demo units,
Speaker 3: and tools to access or to size accessories for buyers.
Speaker 3: While the device will be sold at all Apple locations
Speaker 3: in the US, the company's initially planning special sections for
Speaker 3: Vision Pro only its stores in major metro areas.
Speaker 2: And staying with tech Nathan, we're learning about a management
Speaker 2: shake up at Binance. Sources he and the executive tasks
Speaker 2: with helping the world's biggest crypto exchange navigator regulatory crisis
Speaker 2: is leaving the company. The move comes as Finance faces
Speaker 2: US allegations of fraud and compliance lapses. The executive who's leaving,
Speaker 2: Patrick Hillman, was Chief Strategy officer at Finance since twenty
Speaker 2: twenty one.
Speaker 3: Time now to take a look at some of the
Speaker 3: other stories making news in New York and around the world,
Speaker 3: and for that we're joined by Bloomberg's Michael Barr.
Speaker 6: Good morning, Michael, Good morning, Nathan. Dozens of people were
Speaker 6: heard when a double deckor tour bus collided with an
Speaker 6: MTA US in Manhattan. It happened last evening on First
Speaker 6: Avenue in East twenty third Street. Police say the MTA
Speaker 6: Express bus had the right of way as it traveled
Speaker 6: through the intersection MTA Transit President Richard Davy.
Speaker 3: The tour bus behind us seemed to have pulln a
Speaker 3: red light and t boned our bus hit it actually twice.
Speaker 9: It was going so fast, we.
Speaker 6: Think audio courtesy of ABC seven. Both buses were full
Speaker 6: at the time of the crash. Many of those injured
Speaker 6: were treated for cuts, bruises, and fractures. The man who
Speaker 6: shot and killed twenty three people at a Walmart in
Speaker 6: El Paso in twenty nineteen is set to be sentenced
Speaker 6: today in federal court. For two days, survivors and victim
Speaker 6: families have been addressing the court. When the father of
Speaker 6: the youngest victim spoke, he turned to shoot at Patrick
Speaker 6: Crusius and said, look at me, you coward, look at
Speaker 6: my son's picture. Crusius, a self proclaimed white supremacist who
Speaker 6: admitute targeting Hispanics, was seen crying in court during victim
Speaker 6: impact statements. Crusius is expected to be given ninety life
Speaker 6: sentences today. Prosecutors in a separate state case, we'll try
Speaker 6: for depth. President Joe Biden has agreed to send cluster
Speaker 6: munitions to Ukraine, Bloomberg said. Maxter reports. Though there is dissent, there.
Speaker 11: Is international concern from arms control in human rights groups
Speaker 11: because of the potential of harmed civilians. More than one
Speaker 11: hundred countries, including France, Germany, the UK, and many other
Speaker 11: NATO allies or parties, to what is called the Convention
Speaker 11: of Cluster Munitions, which is a twenty ten agreement that
Speaker 11: bans the use and transfer of such weapons. Note that
Speaker 11: the US, Russia, and Ukraine did not sign the agreement,
Speaker 11: although the US in the past has condemned others for
Speaker 11: using them. In San Francisco, I'm at Baxter, Bloomberg Daybreak.
Speaker 6: More than sixty seven million Americans in thirty one states
Speaker 6: saw temperatures top ninety degrees Yesterday, nearly forty million experienced
Speaker 6: Feelds like temperatures in the triple digits. The last three
Speaker 6: days have broken the record for the hottest average temperature
Speaker 6: on Earth. Global News twenty four hours a day, powered
Speaker 6: by Moriman twenty seven hundred journalists and analysts in over
Speaker 6: one hundred and twenty countries. I'm Michael Barr. This is Bloomberg, Nathan.
Speaker 3: Thank you, Michael. Time now for the Bloomberg Sports Update
Speaker 3: with John Stanshauer.
Speaker 6: Thanks Nathan.
Speaker 12: The Mets suddenly hot a couple of wins last weekend
Speaker 12: at Cityfield. They went to Arizona Diamond back to our
Speaker 12: first places team the Mets one Tuesday, the thrillly ninth
Speaker 12: inning rally on Wednesday, and a quick start last night.
Speaker 6: Two one.
Speaker 13: Hucks deep down the left field line, a laser beam
Speaker 13: that gets out for a homer. Oh, a screamer by
Speaker 13: Alonzo down the left field line into the Arizona bullpen,
Speaker 13: a sizzling two runs shut and at the top of
Speaker 13: the first the Mets sabbath two.
Speaker 12: Nothing Lee WCBS twenty sixth hom run for pet Alonzo.
Speaker 12: He'll be in Monday's home run derby in Seattle for
Speaker 12: Francisco Alvarez. Two run shot two innings later. Now sixteen
Speaker 12: homers for the rookie catcher, and in the sixth the
Speaker 12: blast by Francisco Lindor, who went five for five. The
Speaker 12: Mets won nine to nothing, plenty of runs support for
Speaker 12: Carlos Karrasko.
Speaker 6: He didn't really need it, allowed only three.
Speaker 12: Hits in eight ins. Mets look to keep it going
Speaker 12: in San Diego final games before the All Star Break.
Speaker 12: As lopsided a win as it was for the Mets.
Speaker 12: The Yankee loss even more so. Baltimore won fourteen to one.
Speaker 12: At the Stadium. Orioles rookie Gunner Henderson went four for
Speaker 12: seven with two home runs. What's up with Luis Sevarino?
Speaker 12: Sheld again? He got only eight outs, gave up seven runs,
Speaker 12: ten hits as Era is seven point three eight. Yankees
Speaker 12: and Cubs tonight at the Stadium. It's the Yankee debut
Speaker 12: of Carlos Radon. He was their prize free agent signings.
Speaker 12: A busy day at Wimbledon, thirty six year old Novak
Speaker 12: Djokovic plays his third round matchits against thirty eight year
Speaker 12: old Stan Wrinka. Andy Murray is thirty six, the its
Speaker 12: fifth seed in Stefanos sits APAs two sets to one.
Speaker 12: They couldn't finish. They werean into the curfew. They'll finish
Speaker 12: the match today. John Stashenewer Bloomberg Sports.
Speaker 6: From coast to coast, from New York to San Francisco,
Speaker 6: Boston to Washington, d C. Nationwide on Syrias Exam, the
Speaker 6: Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 3: Good morning. I'm Nathan Hager. The US wants to diversify,
Speaker 3: not decouple. That's the message Treasury Secretary Janet Yellen is
Speaker 3: delivering in China, but at the same time, she is
Speaker 3: not hesitating to criticize moves she sees as threats to
Speaker 3: the US economy.
Speaker 4: The decoupling of the world's two largest economies would be
Speaker 4: destabilizing for the global economy, and it would be virtually
Speaker 4: impossible to undertake.
Speaker 3: It was Secretary Yellen speaking at a roundtable with US
Speaker 3: business leaders in Beijing, and for more. We are joined
Speaker 3: by Bloomberg News China Government editor Jill Desis as we
Speaker 3: continue to monitor Secretary Yellen's visit to China this morning. Jill,
Speaker 3: she's meeting right now with the new premier Lead t
Speaker 3: Yang to talking about trying to prevent a winner take
Speaker 3: all situation in China when it comes to the economies.
Speaker 3: What is the balance that Secretary Yellen is trying to
Speaker 3: strike in this visit to Beijing.
Speaker 14: Yes, Hi, Nathan, Yeah, this is a really, really, really difficult,
Speaker 14: delicate balance that she has to strike, right because ultimately
Speaker 14: she's trying to you know, she's putting out these it's
Speaker 14: not a winner take all situation remarks saying that they
Speaker 14: need to cooperate. I mean, that's really what the Treasury
Speaker 14: Department had told us and some of these officials had
Speaker 14: told us, was the aim of this trip was to
Speaker 14: open these lines of communication and continue talking with the
Speaker 14: world's second largest economy. Of course, this is all happening
Speaker 14: against this backdrop where you've got these You've got the
Speaker 14: US throwing sanctions on China and Chinese companies. You had
Speaker 14: China just earlier this week imposed some new export controls
Speaker 14: and some very key medals. So it's really this weird
Speaker 14: situation where you can't just cut off all economic cooperation
Speaker 14: between these two economies, but at the same time they
Speaker 14: fundamentally disagree about a lot of different issues, primarily about
Speaker 14: national security, and that's really sort of poured over into
Speaker 14: how they affect each other's trade and sort of how,
Speaker 14: you know, how they trust each other or in this case,
Speaker 14: really mistrust each other. So ultimately, what she has to
Speaker 14: do is try to say, hey, like, there are ways
Speaker 14: that we can cooperate, but it is a really really
Speaker 14: difficult balance.
Speaker 3: Yeah, and it has been a lot of attention, particularly
Speaker 3: on these new export controls on the metals germanium and
Speaker 3: gallium that are so important to technology across a wide spectrum.
Speaker 3: Here we heard the Secretary say that they're still looking
Speaker 3: into what the potential impact could be here. But what
Speaker 3: does that do for the US China relationship when it
Speaker 3: seems as though we're having sort of a tit for
Speaker 3: tat when it comes to a trade between these two countries.
Speaker 14: Yes, it ultimately, I think just kind of makes things
Speaker 14: a little bit more complicated, as many of these measures
Speaker 14: often do. Reuters and reporting actually that the US Defense
Speaker 14: Department is trying to invoke a new defense it's actually sorry,
Speaker 14: and it's an existing Defense Production Act to boost domestic
Speaker 14: mining and processing of these metals that China is trying
Speaker 14: to limit some exports of. I think that that, really, though,
Speaker 14: speaks to what Janet Yellen has been trying to emphasize here,
Speaker 14: this idea of how exactly to diversify or decouple or
Speaker 14: de risk or however you want to say. The language
Speaker 14: that she was using, that idea of diversifying economies is
Speaker 14: a bit softer than deep risking, which is, you know,
Speaker 14: something that we've been hearing out of the US and
Speaker 14: Europe this year, and is obviously that was even softer
Speaker 14: than the coupling lengths that we've heard. So I think
Speaker 14: that that just kind of reflects how difficult it is
Speaker 14: for these economies and how they have to kind of
Speaker 14: tailor each of their you know, each of their responses
Speaker 14: to whatever the other country is trying to do in
Speaker 14: terms of limiting trade.
Speaker 3: It's really interesting, literally colorful commentary we're hearing as well
Speaker 3: from the new premier Lead Chiong ahead of this meeting
Speaker 3: with Secretary Yellen, saying the China believes of bilateral ties
Speaker 3: with the US will be more rainbow after wind and rain.
Speaker 3: What is China trying to get out of this visit
Speaker 3: with Secretary Yellen?
Speaker 14: Well, I think at this point with this visit, I
Speaker 14: mean remember Lee Chong, He's only been in this position
Speaker 14: for a few months now. He's the new premier that
Speaker 14: was installed in March, very key ally of President Chi Jinping.
Speaker 14: What Chine is ultimately is trying to understand is they're
Speaker 14: trying to build up at some point a relationship or
Speaker 14: try to understand the relationship that they really have with
Speaker 14: a lot of these US officials, right because Jenet Yellen,
Speaker 14: you know's she's got ties or at least, like the
Speaker 14: Treasury Department has economic ties with some long standing Chinese officials.
Speaker 14: You look at Luha, the former the former economic policy
Speaker 14: advisor in charge of trade. He's no longer in a
Speaker 14: key leadership position anymore, but he was a really critical
Speaker 14: source during the US China trade war, ineditigated by the
Speaker 14: Trump administration. So you had like some of these old
Speaker 14: hands that had these stronger relationships with US officials. We're
Speaker 14: seeing right now, though, is that Beijing has a lot
Speaker 14: of new hands that have kind of taken charge who
Speaker 14: don't have those relationships, and so I think they're just
Speaker 14: kind of trying to feel each other out right now.
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