Bloomberg - Evening Briefing - Sobering data

Bloomberg Evening Briefing

Thursday brought more sobering data as far as the recession-risk debate is concerned. The US economy shrank for a second straight quarter with high inflation undercutting consumer spending and Federal Reserve interest-rate hikes putting the brakes on businesses and housing. Gross domestic product fell at a 0.9% annualized rate after a 1.6% decline in the first three months of the year, the Commerce Department’s preliminary estimate showed. Personal consumption, the biggest part of the economy, rose at a 1% pace, a deceleration from the prior period. But the experts still say a true downturn, by their formal definition, isn’t here. In fact, they might deem the first half of 2022 still part of the expansion

Bloomberg is tracking the coronavirus pandemic and the progress of global vaccination efforts.

Here are today’s top stories

A US aircraft carrier strike group entered the South China Sea as part of what the 7th Fleet said was a scheduled operation amid rising tensions with China over a potential Taiwan visit by House Speaker Nancy Pelosi, who was set to depart for Asia Friday. President Joe Biden, in a phone call Thursday with Chinese leader Xi Jinping, warned him against military action against Taiwan, but said he doesn’t support a formal declaration of independence by the island.

Apple reported third-quarter results that narrowly beat Wall Street estimates, easing concerns that supply chain snags and a shaky economy would ravage the tech giant’s sales. Apple’s iPhone and iPad sales fared better than expected during the quarter, though other products—including Macs and wearables—fell short of projections. Amazon also topped revenue estimates and gave a strong sales forecast for the current quarter, allaying investor concerns about potential belt-tightening by inflation-rattled consumers. Its shares jumped more than 12% in extended trading. Computer processor maker Intel, however, didn’t fare so well

US Democrats need all 50 of their senators to vote for the surprise reconciliation deal that (for now at least) has the support of Democratic West Virginia Senator Joe Manchin. The climate and energy package would generate an estimated $739 billion in revenue, spend $433 billion and reduce deficits by $300 billion over a decade. However, Manchin’s longtime partner in torpedoing much of Biden’s domestic agenda (along with the Senate’s 50 Republicans) has remained silent. Arizona Senator Kyrsten Sinema has yet to say publicly whether she will support the bill, or whether she might help the GOP kill it.

Kyrsten Sinema, left, and Joe Manchin  Photographer: Jabin Botsford/The Washington Post//Getty Images

If Democrats succeed in passing this miniaturized version of Biden’s “Build Back Better” plan, the carried interest tax break will end—and that’s very bad news for private equity and hedge fund managers.

JetBlue Airways has agreed to buy Spirit Airlines for $3.8 billion and create the nation’s fifth-largest airline (if the deal can win approval from antitrust regulators). The agreement arrived one day after Spirit’s attempt to merge with fellow budget carrier Frontier Airlines fell apart.

Russia launched missile strikes on northern Ukraine from neighboring Belarus and the Black Sea Thursday, according to Ukrainian armed forces. Six Russian cruise missiles hit a military base north of Kyiv, while more than 20 rockets struck the Chernihiv region in northern Ukraine. Local authorities also reported rocket attacks in Ukraine’s second-largest city of Kharkiv in the northeast overnight, and explosions were heard again in the southern port of Mykolaiv and Kropyvnytskyi in the center of the country. The attacks in northern Ukraine occurred as Kyiv’s forces step up efforts to liberate Russian-held areas in the south.

In a world that’s effectively burning with massive heatwaves, unprecedented wildfires and drought, the increasing toll of the climate crisis has become readily apparent. If a global green pivot is to happen, power grids must become “supergrids,” continent-spanning networks that can move clean energy thousands of miles. The good news is that the technology to accomplish this feat has arrived. The bad news is that people and politics are, as usual, standing in the way.

What you’ll need to know tomorrow

Meet the World’s Greenest Football Club

Forest Green Rovers are the greenest football club on the planet, according to FIFA. Located in the west of England, the team was playing in one of the UK’s lower leagues when green energy industrialist Dale Vince took over. Then he remade the team in his own image, and everything took off.

Jack Evans of Forest Green Rovers advances during a match against Northampton Town at The New Lawn in Nailsworth, England, last August. Photographer: Pete Norton/Getty Images

Key phrases

Older messages

The Taiwan call

Wednesday, July 27, 2022

Bloomberg Evening Briefing View in browser Bloomberg President Joe Biden is to speak with Chinese leader Xi Jinping on Thursday amid fresh tensions over Taiwan. The first conversation between the two

Recession call gets cloudy

Tuesday, July 26, 2022

Bloomberg Evening Briefing View in browser Bloomberg The word recession seems to be in every other headline these days, but a shift in how US consumers are spending just landed with a thud in the Wall

‘Delusional’ predictions

Monday, July 25, 2022

Bloomberg Evening Briefing View in browser Bloomberg Data due this week could show the US economy contracted for a second straight quarter. While that's one way to define a recession, the Biden

A world melting

Saturday, July 23, 2022

Bloomberg Weekend Reading View in browser Bloomberg Follow Us Get the newsletter In the span of two weeks, temperature records have been smashed, railroad tracks warped, energy grids pushed to the

Russia makes a deal

Friday, July 22, 2022

Bloomberg Evening Briefing View in browser Bloomberg Russia and Ukraine reached a deal aimed at releasing millions of tons of grain through Ukraine's Black Sea ports that would mark a vital step

Margin Call

Friday, October 7, 2022

Plus: Consumer Health, HSBC ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Daily StockTips Newsletter 10.07.2022

Friday, October 7, 2022

(Published 7:30 AM ET MON-FRI) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Wall Street: Why the banks won't ditch Musk

Friday, October 7, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Morning, Michelle Abrego here from a sunny New York City! Who might not be seeing much daylight right now?

🐚 Shell-shocked

Thursday, October 6, 2022

Shell gave a profit warning | Retail sales dropped in the eurozone | TOGETHER WITH Hi Reader, here's what you need to know for October 7th in 3:10 minutes. ☕️️ Hopefully your daily Finimize

Safe haven no more

Thursday, October 6, 2022

Bloomberg Evening Briefing View in browser Bloomberg Equities found little encouragement to sustain any rebound attempt on the eve of the all-important US jobs report, with major benchmarks finishing

Nobel laureate Paul Krugman warns the Fed risks going too far in fighting inflation - and predicts a return to rock-bottom interest rates

Thursday, October 6, 2022

The renowned economist noted that rate hikes have a delayed effect, and the US labor market is showing signs of cooling down. View in browser Business Insider Business Insider Business Insider

Wall Street: Musk-Twitter saga winners and losers

Thursday, October 6, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hi! This is Dan DeFrancesco checking in from New York. For those who observed the high holy day yesterday,

The Daily StockTips Newsletter 10.06.2022

Thursday, October 6, 2022

(Published 7:30 AM ET MON-FRI) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

[New post] Bitesize: Riding the waves: the breadth of global monetary policy changes

Thursday, October 6, 2022

BankUnderground posted: " Shaheen Bhikhu and Thomas Viegas Central banks respond to inflation by setting interest rates in order to achieve domestic price stability. Occasionally, economic shocks

FinTech Weekly Issue #384 - Tougher Regulations & Lower Investments

Thursday, October 6, 2022

Issue #384 - Tougher Regulations & Lower Investments 2022-10-06 More regulatory actions could benefit banks, and fintech companies do not face just this problem. In 2022, investments in fintech