5 Things You Need to Know to Start Your Day

Traders await clarity from the Federal Reserve’s minutes, China calls for global cooperation, and more OPEC+ cuts ripple out in the oil mark [View in browser]( [Bloomberg]( Traders await clarity from the Federal Reserve’s minutes, China calls for global cooperation, and more OPEC+ cuts ripple out in the oil market — [Liza Tetley]( Fed minutes The [Federal Reserve will release the minutes from its June meeting]( on Wednesday, which traders are hoping will shed some light on its confusing decision to pause interest rates while at the same time forecasting two more hikes this year. Staying in tightening mode is [likely to decouple global monetary policy in the coming months](, as the rest of the world forges its own path. China is loosening policy, while Indian and South African central banks have opted for a sustained hold for now. China calls [China is calling on nations to spurn steps to decouple and cut supply chains](, urging cooperation between countries. “We should make the pie of win-win cooperation bigger, and ensure that more development gains will be shared more fairly by people across the world,” said Chinese leader Xi Jinping in a virtual speech to Shanghai Cooperation Organization leaders. His words contrast with his government’s decision on Monday to tighten export controls on two metals as a countermeasure to Western tech curbs. Oil cuts [Oil has weakened after rallying more than 2% on Tuesday after the latest batch of curbs by OPEC+ linchpins](, Russia and Saudi Arabia, were announced on Monday. Riyadh issued a supply-cut extension while Moscow announced a fresh pledge to reduce production. The price of crude slumped this year amid moderating expectations around China’s recovery, and higher interest rates, but metrics now suggest the market is tightening. Risk-off markets Stock futures are pointing to a lower open today. Contracts on the tech-heavy Nasdaq are 0.5% lower as of 5:19 a.m. in New York, while S&P 500 futures decline 0.3%. Capital is flowing into Treasuries instead, sending yields lower, most markedly in shorter-duration notes. A measure of the dollar is strengthening slightly, gold is climbing, and oil is also edging higher. Iron ore prices are dipping, meanwhile. Coming up… We will get US May Factory Orders and Durable Goods at 10 a.m. Then at 11:30 a.m., the US will sell 17-week bills. FOMC is due to issue its June meeting minutes at 2 p.m., and the Fed’s Williams will speak at 4 p.m. Janet Yellen departs for Beijing today, and the OPEC International Seminar is going ahead in Vienna. Earnings today include Nextracker. While S&P 500 has closed the first half with a strong gain, its earnings-per-share have been declining. Do you think this trend has hit the bottom, or will profits continue to shrink? Share your views in the latest [MLIV Pulse survey.]( What we’ve been reading Here’s what caught our eye over the past 24 hours: - [Global temperatures smashed through records this week]( - More signs are emerging that [China's economic recovery is spluttering]( - McKinsey adds to the growing chorus warning of [metal shortages for clean energyÂ]( - [Hong Kong has a steep climb to reclaim its place]( as Asia’s premier finance hub - [South Korea opens up its banking sector](for the first time in 30 years - The [UK’s health service is showing its age](as it celebrates its 75th birthday - Expect Swiatek, Sabalenka and Rybakina to dominate the [Wimbledon Tennis Tournament](bbg://news/stories/RXBA4GTP3SHS)  And finally, here’s what Joe’s interested in this morning... Last week the White House decided that it was time for the administration to put its stamp on the economy, [touting the success of Bidenomics](. Inflation is still high, and consumer sentiment is still low. But nonetheless, it's interesting that the White House decided now is the time to brag a little bit. Unemployment is low. Inflation is, in fact, falling, even if it's not falling as fast many would have hoped. And people are starting to notice that thanks to CHIPS and the Inflation Reduction Act, domestic industrial investment is booming. Almost every other day it seems, there's some new factory announcement related to semiconductors or batteries, [or something else greentech adjacent](. So yeah, there's plenty for The White House to point to. Yesterday [we published an interview with Jared Bernstein](, the head of The White House Council of Economic Advisors, diving deeper into Bidenomics, what it is, and what's next. Obviously it's tough to predict the future, as all the recession-callers have found out over the last year. But to my mind there are two inter-related questions that will speak to the ultimate success of Bidenomics. The first is related to a conversation we held this past spring [with Dan Wang and Adam Ozimek]( about whether or not the CHIPS Act will be successful. A big theme that emerged out of that conversation was that ultimately, all of this money we're spending will have been worth it only if we're capable of producing advanced tech, that's cost competitive with what's being built around the world. That's obviously TBD. But it's one thing to build a factory, which can be bought with enough dollars. It's another thing for great products to be built inside the factory. And there, money isn't always enough. Some culture and expertise has to be developed, and that's a big question mark still. So that's the first thing. It'll be interesting over the coming months and years to track these factories, and what comes out of them. And then secondly, one pillar of Bidenomics is empowering workers, support for unions and so on. And yet there is concern within [organized labor]( of low pay at the new EV battery plants that are being built up, and that over time will theoretically replace the old ICE operations. Last week, [Lee Harris at the American Prospect]( reported on the use of cheap, migrant labor at a TSMC factory, again to the frustration of local unions. So again, once the factories are all built, the real questions that will emerge have to do with the quality and quantity of the goods being built at them, and then, basically whether the quality and quantity of the jobs ultimately improve the position of labor, as the President aims to do. Follow Bloomberg's Joe Weisenthal on Twitter @TheStalwart Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Five Things to Start Your Day: Americas Edition newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](