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00:00A LOT GOING ON IN GEOPOLITICS, IN MARKETS AND IN CRYPTO AS WELL. WHAT ARE YOU SEEING IN TERMS OF THE ASIAN SESSION? KAILEY: STOCKS DOWN ACROSS IN HONG KONG AND CHINA. THE INDEX DOWN BY ABOUT 9/10 OF 1%. IN THAT RISK OFF PLAY, OF THE JAPANESE YEN WHICH IS IN OUTPERFORMER WHICH IS A G10 FX AS WELL. STRONG AGAINST THE DOLLAR TRADING AROUND THAT LEVEL. YOU'RE SEEING A BID TO THE BOND MARKET, YIELDS COMING IN LOWER. THE 10 YEAR YIELD THAT 14 BASIS POINTS. THAT'S THE LOWEST WE'VE SEEN SINCE THE END OF MAY. YOU'RE SEEN PRICES COMING ACROSS -- COMING DOWN ACROSS THE COMMODITY COMPLEX. FUTURES DOWN ANOTHER 7% OR SO. THE LOWEST SINCE SEPTEMBER DOWN 40% FROM THE PEAK IN APRIL. AS WE ARE SEEING, INDONESIA BRINGING MORE SUPPLY ON THE MARKET. WE COMBINE THAT WITH THE FACT THIS IS COMING DOWN FOR THAT EASING SOME CONCERN ABOUT FOOD INFLATION IN PARTICULAR. > > INTERESTING TO SEE THE DYNAMICS THAT LED TO METALS PRICES BEING WEAKER IN THE SECOND QUARTER. RIGHT NOW A FAIRLY POSITIVE STORY, UP ON THE STOXX 600. NEARLY ALL SECTORS IN POSITIVE TERRITORY. THE BANKING SECTOR AND ENERGY SECTOR UNDERPERFORMING. WEAKNESS COMING THROUGH YESTERDAY. I'LL SHOW YOU WHAT'S GOING ON WITH U.K. ASSETS. A LOT GOING ON IN TERMS OF U.K. POLITICS. THE POUND MAKING SOME MODEST GAINS BUT THIS HAS VERY LITTLE DO WITH THE POLITICS. OTHER THINGS SEEM TO BE IN THE DRIVER SEAT. SLIGHTLY AT THE MARGIN HAWKISH COMMENTARY FROM BANK OF ENGLAND OFFICIALS. CONTINUING TO EMPHASIZE THE NEED FOR MORE RATE HIKES IN PARTICULAR SAYING WE NEED TO LIGHTEN -- TIGHTEN FURTHER. NATURAL GAS PRICES IN EUROPE BUT NOT FOR THE REASONS THEY USUALLY ARE. A BETTER STORY AROUND INFLATION. ALSO HIGHER BECAUSE OF PRICE ACTION, WITH REDUCED THREATS FOR NATURAL GAS PRICES TO COME DOWN. THIS IS THE COMPANY THAT MAKES THE MACHINES THAT MAKE CHIPS AND THIS WE UNDERSTAND AS BEING LEANED ON TO BE USING LESS -- DOING LESS BUSINESS IN CHINA. SHARE PRICE IS UP. MATT: FOLLOWING THAT CLOSELY. WE ARE DOWN RIGHT NOW. RECESSION CONCERNS, TWOS, ATTENDS CURVE IS FIRMLY INVERTED. JAY POWELL WATCHES THIS AS WELL. YOU SEE THE 10 YEAR YIELD COMING DOWN AS INVESTORS BY THAT DEBT AND THE TWO YEARS YIELDING 281 AND CHANGE. NYMEX CRUDE AND DROPPED DOWN BELOW 00 A BARREL YESTERDAY, IT IS BOUNCING BACK A LITTLE BIT. IT DOESN'T SEEM THAT CRUDE HAS BEEN AFFECTED BY RECESSION CONCERNS BUT MAYBE THAT'S A BIT OF A DROP WE SAW YESTERDAY. BITCOIN DOWN ONE AND TWO THIRDS PERCENT. THIS PRICES FROM MIDNIGHT. IT IS NOT RANDOM, WE PICKED IT. BUT OF COURSE BITCOIN TRADES 24/7 HE CAN PICK ANY TIME OF DAY TO MEASURE THE CHANGE. > > OBVIOUSLY A LOT GOING ON THIS MORNING AND THERE'S MORE IN THE DAY AHEAD. STARTING WITH U.K. PRIME MINISTER BORIS JOHNSON FACING SCRUTINY BY LAWMAKERS OF HIS Q & A SESSION IN THE HOUSE OF COMMONS. AND LATER IN THE DAY HE WILL TAKE QUESTIONS FROM SENIOR MPS ON PARLIAMENT LIAISON COMMITTEE. MY GUESS IS IT WILL BE BRUTAL FOR THE PRIME MINISTER. PRESIDENT BIDEN WILL TRAVEL TO CLEVELAND, OHIO. WHERE HE WILL GIVE REMARKS ON HIS ECONOMIC AGENDA AND BUILDING THE ECONOMY. WE WILL BE GETTING THE FED MINUTES FROM THE JUNE MEETING, WHAT CLUES WILL IT GIVE AS TO HOW POLICYMAKERS ARE THINKING ABOUT GOING THIS MONTH. > > LET'S GO NOW TO WHAT'S GOING ON IN THE U.K.. BORIS JOHNSON AS PRIME MINISTER REALLY FIGHTING FOR HIS POLITICAL SURVIVAL. THE -- HIS GOVERNMENT HAS BEEN ROCKED BY THE RESIGNATIONS OF CHANCELLOR RISHI SUNAK AND THE HEALTH SECRETARY. BOTH QUIT OVER REVELATIONS THAT JOHNSON LIED ABOUT THE EXTENT OF HIS KNOWLEDGE OF MISCONDUCT ALLEGATIONS FACING A NEWLY APPOINTED CABINET ALLY. > > IT WAS A MISTAKE AND I APOLOGIZE FOR IT. IN HINDSIGHT IT WAS THE WRONG THING TO DO. I APOLOGIZE TO EVERYONE WHO HAS BEEN BADLY AFFECTED. I WANT TO MAKE CLEAR THAT THERE'S NO PLACE IN THIS GOVERNMENT FOR ANYBODY WHO IS PREDATORY OR ABUSES THEIR PRINTED -- POSITION. > > WE ARE JOINED FROM DOWNING STREET. IT'S BEEN DESCRIBED AS THE BIGGEST DAY OF DRAMA IN WESTMINSTER SINCE THE FALL OF MARGARET THATCHER. > > ON DOWNING STREET WERE WATCHING THE COMINGS AND GOINGS OF MINISTERS IN CASE ANY MORE RESIGN BECAUSE THE CHANCELLOR AND HEALTH SECRETARY HANDED IN THEIR NOTICE. THEY SAID THE HANDLING OF THE CHRIS PINCHER AFFAIR WAS TOO MUCH FOR THEM TO BEAR. THE RESIGNATION LETTERS FOCUSED ON INTEGRITY BUT THEY WERE QUICKLY REPLACED. BUT MORE JUNIOR RESIGNATIONS JUST KEEP ON COMING EVEN AS WE SPEAK. ALEX REPORTS THIS MORNING THAT BORIS JOHNSON IS ON RED ALERT WITH SIGNS OF A COORDINATED PLOT FROM HIS MINISTERS TO BRING HIM DOWN, IF EIGHT OF HIS CABINET QUIT BUT WOULD LEAVE HIM STRUGGLING EVEN TO FORM A CABINET. THE NEXT AND IMMEDIATE HURDLE WILL BE PRIME MINISTER'S QUESTIONS THIS AFTERNOON WHERE HE FACES KEIR STARMER AND THEN THE PARLIAMENTARY LIAISON COMMITTEE. IT DOES NOT LOOK LIKE BORIS WILL VOLUNTARILY RESIGN, OF THE NEWSPAPER SAYING HE IS REFERRING TO IS MONITOR -- MONIKER, OF THE OTHER WAY HE COULD GO IS THE 1922 COMMITTEE OF TORY BACKBENCHERS CHANGES ITS RULES, REDUCES THE ONE-YEAR GRACE. HE CURRENTLY -- ONE-YEAR GRACE PERIOD HE HAD AFTER WINNING THAT NARROW VOTE. ANNA: WE HAVE SEEN 13 RESIGNATIONS IN THE LAST 24 HOURS FROM HIS TEAM, EITHER MINISTERS OR MINISTERIAL AID. KEY AMONGST THESE IS THE DEPARTURE OF THE CHANCELLOR AND THE REAPPOINTMENT OF A NEW CHANCELLOR. WHAT DOES THIS APPOINTMENT MEAN FOR THE U.K. ECONOMY? > > OF COURSE THIS IS HAPPENING IN THE MIDDLE OF THE COST OF LIVING CRISIS. THE RESIGNATION LETTER HIGHLIGHTS THE REDO -- THE DIFFERENCES ON FISCAL POLICY. HE SAID IF IT SEEMS TOO GOOD TO BE TRUE IT PROBABLY IS. WHILE HE SEEMS TO BE MORE RELYING ON FISCAL POLICY WITH BORIS JOHNSON. HE'S BEEN ON THE RADIO SAYING HE IS DETERMINED TO DO -- TO DO MORE ON TAX CUTS BUT NOTHING IS OFF THE TABLE. UTILITIES ANALYSTS SAY THAT COULD INCLUDE THE WINDFALL TAX ON ENERGY COMPANIES. WREPS CORPORATION TAX RISE WILL BE REVERSED. THIS WILL HAVE IMPLICATIONS FOR THE BANK OF ENGLAND. MUCH LOOSER FISCAL POLICY. YOU'VE ALREADY HEARD FROM THE CHIEF ECONOMIST ON THE BANK OF ENGLAND. HE WAS TOLD EARLIER THE DEFENSE SECRETARY NOT RESPONDING TO QUESTIONS IF HE'S GOING TO RESIGN BUT IN TERMS OF MONETARY POLICY THE BANK OF ENGLAND MAY EVEN GO FOR A HALF-POINT HIKE AND FISCAL POLICY GETS LOOSE. > > THANK YOU SO MUCH. FROM U.K. POLITICS TO U.S. AND REALLY GEOPOLITICS, OF THE U.S. WANTS TO TALK CANDIDLY. THE SECRETARY OF STATE WILL HAVE A DISCUSSION ABOUT THE WAR IN UKRAINE WITH HIS CHINESE COUNTERPART LATER ON. ANNMARIE HORDERN HAS THE LATEST FROM D.C.. WHAT MESSAGE WILL HE BE TRYING TO CONVEY. > > THE U.S. WANTS TO MAKE IT CLEAR TO CHINA WHAT WASHINGTON'S EXPECTATIONS ARE WHEN IT COMES TO HOW CHINA DEALS WITH RUSSIA AND REVIEWS THE INVASION OF UKRAINE. THESE INDIVIDUALS HAVE NOT MET SINCE OCTOBER AND OF COURSE SINCE OCTOBER A LOT HAS HAPPENED INCLUDING CHINA AND RUSSIA DECLARING THAT THERE TREND -- THAT THEIR FRIENDSHIP HAS NO LIMITS. THIS AFTER A SHARP CRITICISM OVER THE WEEKEND FROM THE U.S. AMBASSADOR TO CHINA, AND NICHOLAS BURNS SAYING CHINA IS SPREADING RUSSIAN PROPAGANDA. IT'S GOING TO BE A PRETTY FRANK AND -- FRANK CONVERSATION. WE SHOULD ALSO NOTE AT THIS G20 MEETING THERE WILL BE ANOTHER INDIVIDUAL THERE AND SECRETARY BLINKEN WILL NOT BE SITTING DOWN WITH THEM. RUSSIA'S FOREIGN MINISTER SERGEI LAVROV. MATT: JP MORGAN OVER THE WEEKEND CAME OUT WITH A REPORT SAYING MOSCOW WAS IN SUCH A STRONG FISCAL POSITION THEY COULD PULL ALL OF THEIR OIL PRODUCTION OF THE INTERNATIONAL MARKET IF THEY WANTED. NOW WE FIND CHINA AND INDIA HAVE PAID $24 BILLION TO PUTIN SINCE THESE SANCTIONS STARTED. IS THE U.S. CONCERNED AT ALL ABOUT THIS? > > THEY CLEARLY ARE BECAUSE I GOT BACK FROM THE G7 LEADERS MEETING AS WELL AS NATO AND WHAT YOU HAD COMING OUT OF THE G7 IS ALL OF THESE COUNTRIES AGREE THAT THEY NEED TO DO SOMETHING ABOUT FOOD AND STILL BEING ABLE TO MAKE THIS REVENUE EVEN THOUGH A NUMBER OF COUNTRIES INCLUDING THE UNITED STATES AND EUROPE IS TRYING TO WIND DOWN OR REJECTING RUSSIAN FOSSIL FUELS. BUT PUTIN IS STILL ABLE TO MOVE ALL OF THOSE FOSSIL FUELS NOW WITH SKYHIGH PRICES TO COUNTRIES LIKE CHINA AND INDIA AND WHAT CUSTOMS DATA SHOWS HIS CHINA SPENT ABOUT 9 BILLION IN FOR THREE MONTHS ENDING IN MAY. INDIA ABOUT FIVE TIMES AS MUCH AS WHAT THEY SPENT LAST YEAR BECAUSE CHINA AND INDIA ARE ABLE TO CALL UP DISCOUNTS FROM RUSSIA. BUT RUSSIA IS MAKING A TON OF MONEY WHICH IS WHY THEY'RE TRYING TO FIGURE OUT A METHOD -- MECHANISM AND PRICE CAP TO MAKE SURE RUSSIAN CRUDE STAYS IN THE MARKET. SO THERE'S IS EASING OF INFLATIONARY CONCERNS BUT AT A CAP THAT PUTIN CANNOT BE MAKING ALL OF THIS PROFIT. > > BLOOMBERG'S ANNMARIE HORDERN BACK ON U.S. SOIL IN WASHINGTON, D.C.. MORE CRYPTO WOES IN THE MARKET. FILING FOR CHAPTER 11 BANKRUPTCY PROTECTION. EMILY, HOW DID WE GET HERE. IS THIS JUST ONE MORE DOMINO IN THE CHAIN? > > IT'S DEFINITELY THE LATEST ONE THAT SEEMS TO BE STRUGGLING THE MOST. THEY HAD LENT $670 MILLION TO THREE ARROWS AND ARE TRYING TO RECOVER THOSE ASSETS AS THIS GOES THROUGH LIQUIDATION. THEY ARE SAYING THEY WILL BE RESTRUCTURING SUBSIDIARIES TO TRY AND MAKE SURE THEY RECOVER FUNDS AND MAKE SURE EVERYONE GETS THEIR MONEY BACK. THIS IS GOING TO THE SAME WAY THE CUSTOMERS PUT THEIR MONEY IN. AND NOT EVEN IN THE CRYPTO SPACE. OTHERS ARE WAITING TO SEE IF THOSE WILL BE COMING BACK AS WELL. > > THAT'S WHAT WE ARE WATCHING FOR. WHAT'S THE FATE OF VOYAGER CUSTOMERS? > > THEY HAVE ABOUT 100,000 CREDITORS LIST IT ON THEIR AS WE KNOW AT THE MOMENT. AND THE LARGEST ONE IS A CRYPTO RESEARCH FIRM RUN BY THE FOUNDER OF CRYPTO EXCHANGE. ALAMEDA HAS EXTENDED CREDIT FACILITIES AND NOW THEY ARE TRYING TO RECOVER AROUND $75 BILLION OF THAT FROM BANKRUPTCY PROCEEDINGS. OTHER THAN THAT WE ARE SEEING SUPPLIES GOING TO GOOGLE. AND FOR THE LITTLE PEOPLE ANYWAY IT'S ESSENTIAL. > > THANK YOU SO MUCH. BE SURE TO CATCH BLOOMBERG CRYPTO EVERY TUESDAY IN LONDON. WE BREAK DOWN ALL OF THE CRYPTO NEWS. LET'S GET A LOOK AT THE STOCKS MOVING IN PREMARKET TRADING. COIN -- ONE OF THE PERFORMERS -- UNDERPERFORMERS IS CRYPTO -- COINBASE. DOWN ANOTHER 4% OR SO THIS MORNING. ANOTHER STOCK POSTING A RELATIVELY BIG DECLINE IS DOORDASH. THIS ISN'T HAVING TO DO WITH THIS COMPANY AS IT IS WITH ONE OF ITS COMPETITORS BECAUSE AMAZON HAS NOW GOTTEN A DEAL TO TAKE UP TO A 15% STAKE IN GRUBHUB WHICH IS A COMPETITOR. AMAZON GOING TO OFFER MEMBERSHIP FOR THOSE WHO HAVE PRIME MEMBERSHIPS. ONE MORE POSITIVE STORY IS ROCKET. THE MORTGAGE COMPANY, A 0 PRICE UP.

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First Look With Surveillance: Blinken China, Crypto Woes

Anna Edwards, Matt Miller and Kailey Leinz take you through what to watch today. (Source: Bloomberg)

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