i am ritika gupta.n monday, former chancellor and commissioner talk -- he was short of the threshold that would guarantee him a spot. -- has been closing the gap. -- told the senate the coalition can be rebuilt. putin has signaled that europe is not getting gas from the nord stream pipeline. he says unless a dispute over sanction is resolved, gas will be close. maintenance on the nord stream pipeline is set --. they say there is a 50% chance of a slump. the trial now set for october. you don't need four days to prove that musk -- on his commitment. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪ how will your business adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our inv

i'm ritika gupta. european central bank is on the verge of doing something it hasn't done in 11 years, raise interest rates. policymakers may deviate from their guidance of a quarter-point hike and increase rates by twice that amount. a biden administration official predicts a price cap on russian oil could take effect by december. the b imposed alongside eu restrictions on insurance for oil before arguing a cap would give moscow a much-needed revenue and would also when the insurance ban takes effect. president biden expects to speak with president xi jinping in the next 10 days. the administration is considering whether to lift some tariffs on imports. at the same time, relations have gotten worse over beijing's refusal to condemn the russian invasion of ukraine. the slow down in the u.s. housing market is now hitting builders. d.r. horton reported weaker than expected quarterly orders. they focus on entry-level buyers, the ones most affordable -- vulnerable to the affordability squeeze. global news

i'm ritika gupta. the man was arrested after a brief chase. police believe the attacker open fire from a rooftop. china and the u.s. have discussed tariffs that resident biden is looking to ease. the vice premier told janet yellen that the lifting of tariffs is an area of concern. there are reports that the president may announce a rollback of some tariffs on hundreds of billions dollars of chinese goods which would lower the cost of everyday merchandise. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. >> we don't think it is highly likely that they go to 4%. we think that will be too much of a catalyst to the economy. right now the market is correct with a 3.35 peak, easing in the second half. we still think the fed will do 75 in july. jonathan:. morning -- good morning. bramo is back next week. future down by 1% on the s&p. on the nasdaq, down 1.3. a lot of talk about th

i'm ritika gupta.nchor concerns about the global economic slowdown. white house says opec has moved to reproduction if the move to the middle east is any precedent in saudi arabia. candidates to be the next prime minister, 20 members of parliament. nominations will open and close with the first to be held on wednesday. the next prime will be announced september 5. limiting the recent travel chaos at heathrow. they will stop selling tickets to so much trouble, they will limit traffic to 100,000 people through september 11 and new recruits. one of the most dramatic steps, reducing costs. the company will quit building exercise bikes and treadmills at its own factory. the company had nearly 3000 employees this year and shares are down in 2022. human beings have seen distant galaxies more than 4 billion years ago in vivid detail. one of the best -- first full-color images from the james webb space telescope. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalist

i am ritika gupta.his is bloomberg. ♪ >> i think it's important for us to show support for taiwan. i also think we have -- none of us said we are for independence when it comes to taiwan. that is up to taiwan to decide. jonathan: that was nancy pelosi, u.s. speaker of the house. good morning. futures are negative on the s&p and nasdaq. this is from mohamed el-erian on the fed. it seems to remain the central bank in advanced economies it is most prone to using a phrase in the former chancellor of the exchequer rishi sunak, fairytale economics. it is the most systemically important of the central banks. mohamed firing this morning. tom: an important essay and something we will play off of here, not only today but through the weekend and into next week. jon, we have to set up the fed meeting next week. i have to after the desperation we saw from the ecb yesterday. jonathan: 75 basis point seems to be the story. we could wake up on monday to another rally of 50 to 100. tom: i'm looking at german yield right

i am ritika gupta.n highland park, illinois, a 22-year-old man is being held in custody. police believe the attacker opened fire from the rooftop of a building near the parade route. china and the u.s. have discussed trump era tariffs president biden is looking to ease. the lifting of tariffs and sanctions is an area of concern. there are reports the president may announce a rollback on some tariffs on hundreds of billions of dollars worth of chinese goods. that would help lower the cost of everyday merchandise. the new leader of hong kong is signaling a cautious approach toward the coronavirus. he says they want to balance traveling convenience with limiting the spread of covid. he also warned that people in hong kong should only be allowed to go about normal activities when it is known they are not infected. citigroup warns that oil could collapse to six he five dollars a barrel by the end of the year. analysts say could slumped to $45 by the middle of 2023 if a recession hits. that is based on -- by

i am ritika gupta.fficials at the fed may debate a historic 1% rate hike this month. the fed president told reporters everything is in play after consumer prices rose faster than they expected, 9.1% through june. it is more than likely to hike rates by 100 basis points at the next meeting. -- is looking at announcing in september he will one for -- donald is looking to announce in september he will run for president again. before the midterm, he will drive turnout. in israel, president biden committed to extending an agreement that provides billions of dollars to the military, signing a joint declaration with the prime minister. the document says the countries will never allow iran to acquire a nuclear bomb. in the u.k., conservative party balloting continuing in the process to determine the next prime minister. it has been cut to six and trade minister penny morgan has emerged as the frontrunner. a dispute has erected between london's heathrow airport and one of the biggest airlines in the middle east.

i'm ritika gupta. this is bloomberg. what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create >> we think the dollar can still arise further. dxy will move up to 1-12 by the third quarter. we think the fed is much more likely to meet or beat implied rate expectations than the ecb. jonathan: the chief cross as its strategist at morgan stanley. 1-12 the dollar index. that currency could get a whole lot stronger. where does that leave the euro? euro-dollar, a little weaker on the euro side of things, going into a big day for the ecb. 1.0196. a big day for european gas supply and politics. i can't keep up. tom: we have been making jokes about

i am ritika gupta.o relief for the squeeze of consumers. members are already far -- falling far behind the volume needed right now. the conservative party once the narrow a wide field of candidates to be written's next prime minister. nominations will open and close today with the first ballot held on wednesday. the new leader and next prime minister will be announced september 5. london's heathrow airport is limiting travels -- travel chaos. the biggest airport in the u.k. will limit daily passenger traffic to 100,000 people through september 11. they are struggling to hire new staff. american airlines is sticking with their expectations for a jump in second-quarter sales despite rising cost. total revenue is a specter to be up 12%. meanwhile, -- will also arise about 12%. peloton is taking one of the most dramatic steps yet to symbol phi operations and reduce costs. they will quit building exercise bikes and treadmills at its own factories. partners will no handling -- will now handle the manufacturin

ritika: i am ritika gupta with first-order word news. the mood at 10 downing street is grim and tearful as the prime minister fights for his political life after an onslaught of resignations from his government. five more junior ministers resigned today in a coordinated attempt to inflict maximum pressure on johnson. he spoke before the committee. pm johnson: the job of a prime minister is to keep going. ritika: the prime minister has lost almost 30 people from his government. bloomberg learned the u.s. and allies have talked about trying to cap the price on russian oil between $40 and $60 a barrel. they are aiming to limit revenue while limiting the impact on their own economies. the u.s. is weighing potential enforcement tools, including more restrictions on shipping companies and sanctions on banks and financial institutions that facilitate above threshold. children that lack permanent legal status are watching a federal appeals court that could determine whether they can remain in the country. the dreamers are part of the 2012 progra

i am to take a group to, this is bloomberg -- i am ritika gupta. bloomberg. ♪ >> i am concerned with what is good for this country and what is not good for this country is the government. we have seen the mismanagement of the economy. we have gone from being one of the best-performing economies in the g7 to 19th in the g20. jonathan: that was christine anne jardine. i am a jonathan ferro with kailey leinz and tom keene. the nasdaq 100 down by 0.16. the curve inversion continues. 282 in 10 year. 284 on a 10 year yield, a little higher by a basis point. euro-dollar intraday getting closer to -- handle. euro-dollar, more trouble ahead for people in foreign-exchange. tom: dxy finally vaulting to a 106 .90. a 107 dxy get you back 20 years. we will watch the euro as we get a 101. we are not there yet. we are massively off the script, which we can do before questions to the prime minister which will be in 12 minutes. we hope to bring you the fire of johnson and the labor leader. leslie vinjamuri, with her specialties, we can rip up the script and get a pr

i'm ritika gupta. this is bloomberg.of america chairman and ceo brian moynihan sees inflation peaking quote we are not quite there yet. he said the fed has more work to do. he spoke to david westin. brian: i think the fed is raising rates quickly which is the tool they have and telling people what they are doing and being transparent and you see some adjustments being made. there is still work to do. in a day, the fed's toughest job is a fed that it is trying to slow down an economy which has strong employment and wage growth and a strong spending. that is an unusual case to see that all going at once. and with the u.s. being one of the strongest economies in the world, they have a top job ahead of them -- a tough job ahead of them but they are using the tools and telling people what they are doing and you are seeing the markets adjust. alix: one of the big -- david: when the big questions is, do you think inflation has peaked? what would you say? brian: it would be different for different areas. in some areas you are se

. ♪ >> keeping you up-to-date with news from around the world, i'm ritika gupta.ulf producers, optimistic on increased output after the visit to saudi arabia by president biden. confident that there will be a few more steps in the coming week and that any decisions to pump more would be made within opec. in the u.k., sky news canceled the final debate in conservative party candidate, saying that two of the five pulled out of the event after last night's debate turned personal where soon act -- rishi sunak accused others of borrowing and conservative mps are illuminating one candidate today. the international monetary fund that they would other global out substantially in the next update after the g20 finance ministers ended their meeting in bali without agreeing on a communique and the imf downgrading their outlooks by 3.6 percent after russia in graded ukraine -- invaded ukraine. international airshow outside london, delta airlines purchasing 100 other 737 max 10 jetliners with a value of $7.6 billion overall, usually there are big discounts on big orders in augu

i am ritika gupta.his is bloomberg. this is bloomberg. what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create >> inflation is too high, but we are starting to see especially in commodities, prices come down. we have seen that in terms of oil and gas, but other commodities as well. we're going to keep taking action to make sure prescription drugs, people are paying less going forward. jonathan: that was the u.s. treasury deputy secretary, good morning. price action lower by 1.25% of the s&p, down about 48. on the nasdaq 100, about .9%, 101. yields up three basis points, crude lower by 2.9%, 9350. decimate 3.50. she call

i am ritika gupta. this is bloomberg. ♪ what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create >> i think there misjudging neutral. the 2.5% neutral rate is a rate that exists when inflation was still a 2%. that neutral rate is probably higher and i think the fed has some work to do. tom: really on fire yesterday with brean capital. there is a gap of 2.5%, we heard that from michael collins of pgim earlier, and there is 3%? lisa: 3.7% for an end of the year fed funds rate. tom: brean capital is at 4.5%. lisa: tim reidy at deutsche bank saying 10 year treasuries should be below 2%. talk about bifurcation. tom: there is

i'm ritika gupta. this is bloomberg. ♪ >> we are moving toward a 29% with the neutral rate. my belief is we need to go beyond that, well beyond that because inflation expectations are higher than 2% now. we are going to have to keep moving. jonathan: the cleveland fed president weighing in after the cpi report yesterday evening. good morning, here is your price action. down 39 on the s&p, negative 1.4% on the nasdaq, 9/10--.9%. yields a bit higher, curve inversion the story. the euro-dollar breaking parody yesterday, a break of 139, munster moves in foreign exchange. big moves in crude, too. 93 handle on wti. down 2% on the day. we are down more than 20% on wti. quite a move. tom: i'm glad you mentioned it. we are down almost $30 on brent crude. an extraordinary move. what do you see in europe? gas, has it really pullback? it is still a crisis of germany. jonathan: it comes down to the ecb and italian politics for good measure, it is messy. it is really messy. tom: were going to go to emory during dutc

i'm ritika gupta. the ecb is expected to raise interest rates for the first time in 11 years. it may consider an increase in double the plant quarter-point .i'm ritika gupta. the bank of japan leaves its rock-bottom interest rates unchanged. the central bank is wary of boosting rates and hitting the economy. it now sees inflation averaging 2.3% for the current fiscal year. that is the first time they expect price gains above its 2% target. russia has resumed said the gas through its biggest pipeline in europe after a 10-day maintenance period. some have thought that it would stay out longer in response to the retaliation of russia's invasion of ukraine. american airlines expects third-quarter revenue to be as much as 12% higher versus third quarter of 2019 despite capacity running 10% or less. american reported earnings matching their rivals. the world's largest alternative asset manager, blackstone, cashed out on big deals this past quarter. that was driven by $29 billion generated in deal sales. mean

. ♪ i am ritika gupta.is bloomberg. ♪ ♪ >> this prime minister who thinks he's the president has caused untold damage. the brexit situation but doing brinksmanship with the eu over northern ireland was huge. it undermines trust, it undermines certainty for investment, it shows how damaging brexit is. jonathan:jonathan: that was adam posen, the peterson institute president. an hour ago, we heard from the british prime minister, boris johnson, prime minister no more. in our future, a new prime minister. we don't know the timeline for this leadership handover, if you want to call it that. the prime minister suggested in the last 45 minutes we will find out next week. tom: he said we will find out next week, we got to get to the weekend. they don't do sunday talk shows in london. how do you get to next week? what are they going to talk about? how do you get to next week? i don't see it. jonathan: we've got to game out for the next prime minister is, when, if we get an election this year, next year, no idea when

i am ritika gupta. this is bloomberg. ♪ >> this fed will do 75 basis points and it needs to catch up. they are not just reacting. they are catching up. that is why they cannot wait. jonathan: mohamed el-erian. from new york city with tom keene and lisa abramowicz, i'm jonathan ferro. futures recovering just a little bit on the s&p 500, on the nasdaq down .6%. where do you want to start? euro-dollar very close to breaking and staying below 101. it broke that level. right now 1.0106. yields in about one basis points. in the commodity market, down about 2% on crude. a lot of questions about more restrictions on the world's second-largest economy. very soon. jonathan: we have seen -- tom: we have seen that. i would note honestly be monday that is not sleepy, dxy is reaching out on a week euro. can i note that mohamed el-erian had my tweet of the weekend. he wrote a blistering short tweet that said with all of the fancy people like mohamed el-erian, it is the bro some out of inflation that is crushing societ

i'm ritika gupta.his is bloomberg. ♪ >> i'm doing all i can to increase the supply for the united states of america. >> there is a potential shortage. let's work on increasing crude oil production with our opec partners and opec-plus partners. >> we want to see more supply. that helps to depressurized and keep costs down. jonathan: good morning. counting down to the central bank decision with features positive one full percentage point. on the nasdaq, up 1.2. crude in focus, the bpi -- w ti up. further steps expected in the coming weeks on crude output from opec later in august. tom: we will have to see from here. the fist bumping really took front and center. what we need to do is understand that in lieu of scarlet fu to understand what is really going on with ben affleck and j. lo, we have to go to annmarie hordern. she joins us exhausted from the trip this morning. i know you have to have a subscription to the club to get the scoop of what is going on with the wedding. but the wedding is about joe m

i'm ritika gupta. this is bloomberg. this is bloomberg. ♪ and it's easier than ever to■ get your projects done right. inside, outside, big or small, angi helps you find the right so for whatever you need done. with angi, you can connect with and see ratings and reviews. just search or scroll to see upf on hundreds of projects. and when you book and pay throug you're covered by our happiness it's easy to make your home an a check out angi.com today. angi... and done. >> the real economy is quite strong in america right now. inflation is our challenge. the fed is taking action. the administration is doing all we can do and a strong dollar is as it is, which i am not worried about. jonathan: i'm sure they're not worried about it, gina raimondo, the u.s. commerce secretary. that's part of it, getting inflation down and a stronger dollar will help. tom: to a point, and then it is ambiguity. george of deutsche bank was with us yesterday and he said euro parity is not significant but what is significant is a lack of liquidity d

i'm ritika gupta.s is bloomberg. ♪ >> in the case of the euro zone, we think it will lead to a mild recession partly related to the uncertainty around that. but the ecb is going to have to press ahead. jonathan: jennifer, head of global economics at capital economics talking about the potential for the ecb to get to 2%. moments ago, megan said no way. futures positive, into negative territory on the nasdaq, positive 0.05%. yields are higher on the 10 year, much higher on a 10 year and up by 13 basis points but just off session highs into the ecb decision at 8:15 eastern time. i want to finish here because we can't let this one slide, crude down 4.8% and 95 handle now on wti. tom: the last couple of days, you have to watch it come out longer than the equity market. it shows the back-and-forth max was talking about earlier, you see it all of the screens today. so much of that uncertainty toward the u.s., the 8:00 hour and what we hear from frankfurt, germany. right now, we want to italian the energy disc

i am ritika gupta. this is bloomberg. ♪ >> it get worse. if it comes to full-scale war between russia and nato then we will see suffering, damage, destruction at a scale that is much worse than what we see in ukraine today. jonathan: that was the nato secretary-general wrapping up the summit in madrid. i am jonathan ferro. kicking off q3 and the second half of 2022 on a negative note on the s&p and the nasdaq. yields now in seven basis points, almost eight. rounded down to 2.93. 70 on the 10 year. tom: we are having a festive moment, the friday before a lovely summer weekend. seriously, all of you traveling by airline in plain, our thoughts are with you. logistic chaos. in europe it is baby not the festive week -- in europe it is maybe not the festive weekend in america. joining us is in murray or dern -- is maria tadeo and annmarie hordern. the fact is there is a war going on. it came home to me how subdued christine lagarde was in addressing war. maria tadeo, as we begin july, what is the distinctive

i'm ritika gupta.r putin has a europe will start getting gas through a key pipeline, but the russian leader has some conditions. says unless a dispute over sanctioned parts is resolved, that gas flow will be curbed. europe has proposed cutting gas use over 50%. in the u.k. the largest trade union has threatened to strike after the government offer below inflation rate pay raises. they cover about 2.5 million doctors, teachers, and other public sector workers. one worker called another kick in the teeth for the national health service. in italy prime minister mario draghi had a message for those in his coalition. they have to decide whether to get behind him and allow him to govern the country. >> if you want to stay together, build this pact right from the beginning. ritika: the former ecb chief was drafted to lead the country some 17 months ago. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta.

i am ritika gupta. this is bloomberg. ♪ >> this president has pledged to do all he can, you heard him say that yourself, to ensure we have an ample supply of oil to ease inflationary pressures, particularly at the pump. jonathan: that is jared bernstein, white house council of economic advisors. we are south of $4.50 a gallon, the average gasoline price in america. they have been falling since the middle of june. tom: other commodities. i am looking at chicago copper. a stunning statistic. even with the worry of the food crisis and david malpass coming up, even the brains are somewhat quiescent as well. jonathan: are they getting less greedy, those companies? they decided to be generous and just bring prices down. tom: i have no idea what this headline means. heathrow refuelers to go on strike. that is another inflation strike? how much worse will heathrow get? kailey: it is hard to see how it cans. you already have them restricting capacity. they have been dealing with labor issues and alice strike of

i'm ritika gupta.the u.k., boris johnson is fighting to stay in power after ministers jumped ship. rishi sunak and savage avid are out. their resignations came after johnson apologized for the latest scandal, one involving allegations of sexual misconduct against a conservative member of parliament. in highland park, illinois, authorities have charged the subject in a shooting at the fourth of july parade seven counts of first-degree murder. they say dozens more charters will be filed in the coming days. if convicted, he could be convicted to life in prison without parole. illinois no longer has the death penalty. the u.s. says iran is not serious about returning to the international nuclear record. state department cites a lack of forward momentum and says iran keeps on raising extraneous demands. the crypto crash has claimed another victim. the firm cites market volatility and the collapse of the hedge fund it had lighted money to. last year they secured a $485 million credit line from alameda resear

i'm ritika gupta. this is bloomberg. ♪ >> we decided to raise the three key ecb interest rates by 50 basis points and approved the transmission protection instrument. we expect inflation to remain undesirably high for some time owing to continued pressure from energy and food prices and pipeline pressures. jonathan: go back to bed and get under the covers. the ecb hiking interest rates. or maybe go back to sleep, because that is what it felt like at the news conference at times yesterday. tom: it was not a snooze fest. i hung on every word. jonathan: i bet you were. did you even carry that news conference on radio? tom: we did -- jonathan: how much of it? tom: maybe 90 seconds. there was a lot of good comment across all of business media. what martin arnold did was great. as we heard from jim caron, it is a big "so what" -- it needs to be tested. jonathan: i think bfa said from whatever it takes to whatever yesterday. on the nasdaq, lower 0.6%. down six basis points on the 10 year stateside. the button

i'm ritika gupta. this is bloomberg. guy: thank you very much, andy. americans -- indeed.ns hosting independence day cookouts this year will pay a lot more good food prices are up as much is 36% from this time last year. let's talk about the options. eric jenkusky, ceo and founder at matrix food technologies, is with us. matrix is a maker of cultivated meat products. what is on the menu this weekend? eric: unfortunately in the u.s. just yet, we are not able to sell cultivated meat because the fda and the usda are developing the regulations around those products. folks in singapore, maybe some ex-pats, will be able to enjoy some chicken based products over there. guy: just describe what cultivated meat is because there's a lot of different technologies being used in this space right now. talk me through what matrix food technologies does because the matrix is important there. eric: and every living organism there's what is known as the extracellular matrix. if you have seen the body exhibit in museums around the world, you would have noticed a cheesecloth-like fibrous mesh.

. ♪ ritika: keeping you up to date with news from around the world, i'm ritika gupta.oris johnson could face a leadership challenge as soon as next week. rank-and-file conservative members are meeting today to discuss whether to hold a confidence vote. rishi sunak and health secretary savage avid quit in the latest scandal. there has been a steady flow of mp's resigning from junior position today. the shooter from a fourth of july parade has been indicted. authorities say he probably planned the attack for weeks, using a bible that was purchased legally. the european parliament is gearing up for a vote on whether nuclear gas or energy could be considered green. the discussion has heated up since the invasion of ukraine since the region wants to get rid of fossil fuels from moscow. the secretary-general of opec has died. he was in the final weeks of his 10 year as the head of the oil cartel when he died in nigeria. he oversaw one of the most turbulent periods of opec. he was 63. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 jo

this is bloomberg. -- i'm ritika gupta. this is number. russia restarted oil shipments through the nord stream one pipeline. joining us now is leslie palti-guzman, president of gas feasted. if i take a look at -- gas visa. the curve is still relatively elevated. things may be ok today, but what about tomorrow? what about saturday, sunday, monday? what is your prediction? leslie: i think europe is still -- [indiscernible] what we have seen is russia is playing with flows of the pipeline and announcements. and as long as we have this and as long as europe is dependent on this gas prices will remain high and elevated, because it is a game right now. tom: so high and elevated, and no doubt volatile, but the eu set a target of 80%, filling 80% capacity by october and november of this year. is that when things start to ease off? i'm trying to think of a timeline as to when these prices ease off or when we get more clarity and certainty about the direction of pricing. leslie: i think the strategy is to prepare for the worst. we still don't know i

i am ritika gupta. this is bloomberg. ♪ >> right now there is this concern that no matter how mental -- no matter how troubled the u.s. is other countries are in worse shape. other countries are having to react because inflation goes up when the dollar strengthened. jonathan: ken rogoff touching on the heart of the issue right now for many countries, many economies including europe. the euro has been a lot weaker through this year. today some dollar weakness in euro strength. euro-dollar 1.0 264, positive more than 1%. fruit down 2%, just about holding on to 100, $100 point -- $100.55. in about an hour we will have housing starts and building permits for june. it is netflix after the close later. tom: curve inversion pretty static. pre-much where we were yesterday. it is tuesday, two days from the ecb. emily wilkins is focused on one of the most interesting states from east to west. maryland is different, from the pennsylvania border to the evils of washington, maryland is different. what is so differen

i am ritika gupta.is bloomberg. ♪ >> i indicated to them, we should be increasing production generically. i hope we see them in their own interest concluding that makes sense to do. jonathan: the president of the united states on the international stage, the next stop in the next month will be the middle east. good morning. futures kicking off, -2% on the aspen -- on the s&p. bonds, closed out 21, sub 150. 350 got close to that on a tenure. we backed away the last four days. the last four days are instructive, with five basis points at 49 on a 10 year. tom: the ism data will -- which, you are a big fan of. 29610 year yield, that is a compression of the yield curve. jonathan: break it down. writing in, tom, is it as big as 1986 and the world series? tom: that doesn't need american translation. aim three was bad. linnie geiser hit the ball off of linney can boyd. the ball never came down. it reached a velocity. jonathan: we will be doing that on bloomberg tv, going into the opening dow. tom: maria tadeo a

i'm ritika gupta. biden has tested positive for covid, and the white house says he is experiencing mild symptoms. the president has begun taking pfizer's paxlovid treatments. he will isolate while continuing his duties. first lady jill biden is testing negative, according to her spokesman. prime minister mario draghi has offered to resign. it is a move that weighs the prospects of snap elections as early as october. the collapse of his coalition government was inevitable in three of his partners withdrew their support. the italian government is unstable. russia has resumed sending gas through its biggest pipeline in europe after a 10-day maintenance period. officials were worried pipeline would stay out of service in retaliation for opposition to the russian invasion of ukraine. russia has been curbing gas shipments to europe, but the continent lies on that little gas. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countr

i'm ritika gupta. this is bloomberg. ♪ >> we are calling for a technical recession in the first half of this year. we had a negative q1 gdp growth. we expect it of q2 gdp growth, but we are expecting the economy to bounce back in the second half of the year, avoid a more conventional recession this year, and eventually fall into recession next year. jonathan: you got all that? whipsawed by weakness. the chief economist at deutsche bank looking ahead for the u.s. economy. good morning. futures negative on the s&p. on the nasdaq, too. right across the board, we are lower by 0.7% on the s&p, 0.9% on the nasdaq 100. treasuries rally in just a bit off of the lows of last week. yields a little bit lower after creeping higher through pretty much all of last week, down three basis points right now, 3.0449 percent on u.s. 10 year. tom: the distinction today is the link up here with yen, weaker as well. a 138 print would be truly shocking. george saravelos is with deutsche bank. there are real interest rates, no

ritika gupta.have voted down an objection to labeling natural gas and nuclear energy as green. that removes the last major barrier to billions of dollars of funding. new gas plants will be able to tap into fresh money from environmental, social, and governance investors, it only when they are replacing coal fire stations. in the first three months after invading ukraine russia took in billions of dollars from selling energy to china and india. that shows how high prices are limiting efforts by the u.s. and europe to punish vladimir putin. china spent almost twice as much of russia as a year ago. india spent more than five times as much. bloomberg has learned the u.s. wants the netherlands to ban asml holdings from selling to china. the band would expand an existing moratorium on the sale of the most-advanced systems to beijing. the dutch government has not agreed yet. the move could hurt its trade ties with china. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more tha

i am ritika gupta.loomberg. ♪ if you wake up thinking about the market and want to make the right moves fast... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity. >> 50 basis point increase will be among the choices on the table. jon: it is not locked in. in newspaper ad comes out two days before a decision. lucky him that he doesn't have to worry about that. we want to check in on the euro. a little bit of euro strength. in the last 20 minutes or so. saying a fool cut off of russian gas is a likely scenario. europe is repairing without going into an ecb meeting tomorrow. tom: you can go all gloom and doom. it is a very correlated move. the vix goes a little bit gloom, 24.67. it is not just seen through euro. jon: basis points 296. this is what you want politicians to be doing, preparing for the worst. you don't want to be surprised with russian gas later this winter. it has become the most likely scenario for most pe

i am ritika gupta. this is bloomberg. alix: twitter down 10% the last few days.ny expected to file suit this week over elon musk decision to terminate his $44 billion takeover. joining us now, the man considered the dean of security law in the u.s. john coffee of columbia law school. professor, it is great to get your perspective legally. legally, what is the strongest case that musk and mace -- can make and twitter can make? john: twitter has the much stronger legal case. he cannot complain about these risks because he assumed them. he cannot do due diligence before -- he could have done due diligence before, he did none of that. therefore, he is deemed assumed the risk. musk is saying, well, this is a huge risk. actually, it is not a material adverse effect. there has been no change. whatever that percentage of oughts is, which, no one knows. behind this, i've got to point out, there is a mystery. we all agree, every professor, every practitioner. twitter's case is stronger. twitter's stock fell last night $233. $33 versus the 54.20 musk offered. delaware court

ritika: keeping you up-to-date with news from around the world, this is ritika gupta. increase in oil output after joe biden's visit to saudi arabia, telling cvs that he's confident there will be a few more steps in the coming weeks with officials saying that any decisions to pump would be remained within opec on august the third. sky news canceling the final debate between third-party candidates and prime minister boris johnson with two of the five pulling out of the event after last night's debate turned personal with rishi sunak accusing them of socialism, eliminate being one of the candidates today. the international monetary fund said they would cut global economic growth outlooks substantially in their next update after the g20 finance ministers ended their meetings in bali without agreeing on a communique with the imf downgrading their outlook for the year at 3.6% after russia invaded ukraine. indiana police say a man with a rifle opened fire in a mall food court, killing three people according the to this -- the authorities that shot him killed the attacker out

. >> keeping you up to date with news from around the world, i'm ritika gupta. 22-year-old man is beingd in the deadly shooting at a parade in highland park, illinois. six people were killed, dozens more wounded. president biden mark the fourth of july holiday imply noting the u.s. has made great strides but has also taken a few steps backward. he says americans are worried about divisions within the country and describe the economy as growing but without -- not without pain. the crackdown is part of the forthcoming online safety bill. semiconductor stocks are trading at bargain prices. micron technology gave a disappointing forecast. intel set the macro economic environment is weakening. people in china have largely escaped the consumer inflation afflicting other major economies, but that may be about to change. the government has started a campaign. wholesale meat prices are at a six month high. >> the one risk i am really worried about is liquidity risk. we are starting see markets locked out of funding. keep a very close eye. issuance in june was low. companies were either unable or

i amrita could group debt -- i am riddick ago -- ritika gupta. anna: thank you very much.lk with tim ash, senior emerging market sovereign strategist bluebay asset management. nice to have you with us. the turkish president and by the united nations, it is quite a feat, even if there are not deals in place, what was this a sign of? tim: well, internationally, russia has invaded ukraine, leaving those disruptions with the supply of food of the global markets to keep up with the russians' actions. it is mindful that they are not participating, indicating it is willing to kind of help the process. i think it would have gone down badly internationally. that is part of it. it is a pr show by moscow. alix: so, "pr show," is it real? pmi, for example, the deal seems like it should be done to alleviate a global food crisis. tim: the problem is i do not see what russia really has, it wants to make it more difficult for ukraine to conduct this war, and obviously not allowing key, crucial shipments to ukraine, you know, it is against russia's interests, partially. i would doubt wheth

i am ritika gupta. this is bloomberg. ♪ ♪♪ this... is the planning effect.is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor looking at your full financial picture. making sure you have the right balance of risk and reward. and helping you plan for future generations. this is "the planning effect" from fidelity. >> we've got a good chance at a soft landing going forward. there are always risks. or, a shot we cannot even think about that will hit us. that could happen. we are always cognizant of risk. i think the base case is for a soft landing at this point. jonathan: that was james bullard going into potentially another fed meeting at the end of this month with a 75 basis point rate hike. good morning. counting you down to payrolls friday, two hours away. futures negative .1% on the s&p. we are on parity watch on euro-dollar, a break of 101 earlier in the session. 101.32. i was looking at the chart on the dollar index, heavy weighting the euro has in that

i'm ritika gupta. coming up the partner and vice chairman at 6th street partners. bloomberg. >> we welcome now on bloomberg television and radio audience worldwide. we are joined by the ceo of airbus. he is guillaume faury. nice to see you. thanks for your time as ever. these shows used to be dominated by orders. they were all about orders. it was boeing versus airbus. who would come out on top. does it matter? >> probably a bit less now than it used to be in the past because we are constrained by the supply chain at the moment. at airbus we have a very large backlog in the priority is to serve existing plans. we are focusing as much as we can on getting things in order in the supply chain and being able to deliver. guy: let's talk about those orders. you are already a little behind where you were last year and you have a slightly lower target. >> we are the same level as we were at the end of each one last year. indeed we have to deliver more to get to 720. we are slightly behind. we see how july plays out. it's back loaded. we had similar situations in the bus. i

i am ritika gupta. london's heathrow airport has apologized for stocks origins. -- shortages.hey may -- heathrow has been playing -- plagued by long lines. frontier has asked spirit airlines to delay a shareholder approach. they are far from winning sufficient support because of a higher offer from jetblue. frontier asked spirits board to reaffirm its commitment to their agreement reached in february. uber tried to lobby politicians to expand globally from 2013 to 2017. uber does not deny any of the allegations and says it is a different company today. the european of football associations will begin soliciting bids to u.s. tv rights for champions league matches. offers are expected to top $2 billion for a six-year deal. that is more than double the current agreement. that is your bloomberg business flash. this is bloomberg. ♪ guy: the timetable for the latest test to decide who will be the next british prime minister is expected to be set out later today. they are looking for an expedited process. we are up to around 11 candidates. apparently reese mock might be throwing his

i'm ritika gupta. guy?reaming tv wars enter a new phase, this after netflix 's surprise loss of customers. warner bros. discovery ceo david zaslow says the industry is focusing on creating fewer and better shows. he spoke at the sun valley media conference in idaho. quotes i think it is going to be a lot of turmoil in the business. but a lot opportunity. and warner bros. discovery has great, quality content. i think the world has changed and it is not about how much, it is about how good. guy: summer camp for billionaires. they look like they are going to have fun, but i suspect the backdrop is getting increasingly difficult. there are some big m&a stories in this space, including what is going to happen with twitter. ed ludlow, as ever on the scene in sun valley. nissan sun may be lacking, that the stories certainly are not. i wonder if you have seen elon musk yet? ed: i have not seen elon musk. i'm told by sources he is still expected, but not until later in the week. i have seen ned siegel, the cfo. i ha

i am ritika gupta.his is wennberg. ♪ >> as far as ecb is concerned, there is a shutdown that is going to lead to a sharp decline in growth. policy becomes more tricky than it is in the u.s.. tom: exceptionally strong yesterday with us, subadra rajappa head of u.s. rates strategy atsociete general. we are focused on that, we think it is going to be -- we make jokes at the snooze fest, that is unlikely into next week. someone who knows this, someone who lives where i do not know where it is at the map. luxembourg, the vicinity of belgium, germany and france. sebastian galli has done good work over the years, thinking with important research notes with nordion. lisa: sebastian, thank you for being with us. right now, we are looking at what could be a storm in europe next week, and especially with nord stream one supposedly coming back online. what does the ecb do? what do they do to get ahead of this in the face of italy? sebastian: complex situations, my colleague pointing out that the odds are strong tha

i'm ritika gupta, this is bloomberg.s talk about what the samsung numbers overnight looked like out of korea. better than expected. sort of easing investors fears but we won't see a weakening demand and in particular the chip sector. joining us is mandy. when i saw those numbers overnight the first number that so that was the top line, the revenue line looked good. >> you can compare what samsung reported. micron lowered its guidance by about 20% and attribute it on most 10% negative revision to china. so clearly we do not know what samsung's outlook is for the second half. the second-quarter number looked good although i will caution here inventory buildup is a real problem for all semiconductors especially you start to see the tracks in memory and i think that's what micron pointed to. >> it leads me to another semiconductor story we heard or talked about this week, the idea the u.s. is looking to perhaps force the netherlands to ban that key technology inc. sold to china. how much does a difference this make in the sh

i am ritika gupta. this is bloomberg.i surprising wall street with second-quarter earnings. charlie sharp sounded upbeat. >> while we are monitoring risks related to high inflation, increasing interest rates and the slowing economy, which will impact our customers, consumers and businesses have been resilient so far. leading indicators such as payment rates, deposit levels, utilization and revolving debt trends do not yet indicate signs of stress. alix: join us now, cole schmead who has 16% of his portfolio in banks. do you buy citi now? cole: citi, their commercial bank is not as big as the banks we own. we think about it as investment bank related like citi. that is not the most attractive part of the banking world. i would have to say citi is not a bad thing to own. we own -- look at the commercial world, traditional banking to be the most undervalued part of the banking world. what sharp is saying, do not have stress to the world shutting down. no one is exactly bullish on people taking on a mortgage in the next 60 da

i'm ritika gupta.s is bloomberg. ♪ today's challenges require real insights, to get to tomorrow's opportunities. ( ♪♪ ) what can we expect in the coming year? this has been a record- shattering year for m&a. five trillion dollars in deal value. and we're still very bullish on the deal market for 2022. in this kind of climate, what are you advising clients to focus on? we really think companies need to elevate their risk management processes and also scenario planning. what's your outlook, kim, for the 2022 labor market? organizations really do need to take a pivot on their lens of their people and talent from a cost center to make that a value creation center. for key insights into what matters today and what lies ahead for business, this is real time business with ey. >> inflation is a bigger risk because it is here, it's real, and if inflation does not come under control completely, it is long-term damage. is there a risk we have a recession? yes. clearly there is a significant risk in the next 12 mo

i'm ritika gupta. this is bloomberg. >> this recessionary fear is overtaking the market and convincing us that it is going to be something cataclysmic that is going to happen, and we think that is not going to play out, and those kinds of -- that portion of the pullback, you get the money back, and the stock market will rise between now and then. jonathan: the chief u.s. equity strategist. live from washington, i am jonathan ferro, together with tom keene. constructive on the equity market, looking for 4300 on the s&p 500. that forecast is coming in down from 49. look at the equity futures. positive by 1/10 of 1% on the s&p 500, and a decent run of gains coming into thursday. three straight days of gains, and it is a little higher. a couple of basis points. on the 10-year. >> the big stocks are doing better than the nasdaq. the dow and s&p actually have a better percentage change then on the normal market. >> what do make of the optimism? we have to slow down, but not adjust the earnings outlook. >> it

. >> with first word news i am ritika gupta. a huge blow to president biden's ambitious agenda. a democratic leader said he would not support spending on climate measures. tax increases or other missions pretty will back health care and drug prices. the european union is falling behind on the high-profile promises to deliver a substantial eight package. it is almost two months since the ease that she you president said spending loans, but only a fraction is been agreed on. they are facing severe economic pain from inflation any possible cut off of russian gas. italy, the prime minister has less than one week to forge some difficult compromises with populace in his government. the decision to offer his is ignition plunged the country into a put a coat crisis. he said he can no longer trust the parties and the ability to government. a confidence vote may be held next week. news, 20 for hours a day, powered by more than 2700 journalists and analysts in more than 100 20 countries. this is bloomberg. tom: breaking news on american ranking. this is a bank we talk less of, and a troubl