1 00:00:03,480 --> 00:00:06,840 Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 2 00:00:06,880 --> 00:00:10,319 Speaker 1: day Break for Friday, September twenty three two. Coming up 3 00:00:10,360 --> 00:00:13,200 Speaker 1: this hour stops fall around the world as higher rates 4 00:00:13,240 --> 00:00:17,400 Speaker 1: field fears of a slowing global economy. Goldman Sack slashes 5 00:00:17,440 --> 00:00:20,439 Speaker 1: its forecast for the SMP five hundred, oils on track 6 00:00:20,480 --> 00:00:23,759 Speaker 1: for its fourth straight weekly decline, and Credit Suite share 7 00:00:23,880 --> 00:00:26,680 Speaker 1: slumped to a record blow. We'll tell you why officials 8 00:00:26,680 --> 00:00:29,240 Speaker 1: believe several deaths of the Manhattan Nursing Home are from 9 00:00:29,320 --> 00:00:33,960 Speaker 1: legionnaire's disease. Plus referendums begin today in Russian occupied Ukrainian cities. 10 00:00:34,120 --> 00:00:37,080 Speaker 1: I'm Michael barr more ahead, and I'm Scott Sladenburg. The 11 00:00:37,159 --> 00:00:40,440 Speaker 1: chase for sixty one will have to wait another day. 12 00:00:40,640 --> 00:00:44,959 Speaker 1: All that and more coming up in sports. That's all 13 00:00:45,040 --> 00:00:48,800 Speaker 1: strain ahead on Bloomberg Daybreak on Bloomberg eleven three, on 14 00:00:48,880 --> 00:00:53,280 Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh 15 00:00:53,360 --> 00:00:58,120 Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius XAM 16 00:00:58,200 --> 00:01:01,240 Speaker 1: one nineteen and around the world Old on Bloomberg Radio 17 00:01:01,360 --> 00:01:08,679 Speaker 1: dot Com and via the Bloomberg Business. Good Friday morning, 18 00:01:08,760 --> 00:01:12,319 Speaker 1: I'm Amy Morris, I'm Nathan Hagar. Futures are moving lower 19 00:01:12,440 --> 00:01:14,720 Speaker 1: this morning. We're coming up to five oh one on 20 00:01:14,840 --> 00:01:17,280 Speaker 1: Wall Street, and we check the markets every fifteen minutes 21 00:01:17,360 --> 00:01:20,720 Speaker 1: during the trading day. On bloomberg SMP futures are down 22 00:01:20,720 --> 00:01:23,720 Speaker 1: twenty four point, Staff futures down a hundred sixty three. 23 00:01:24,080 --> 00:01:27,679 Speaker 1: Nastack futures are lower by ninety points. The tenure Treasury 24 00:01:27,760 --> 00:01:30,240 Speaker 1: is up one thirty second yield three point seven one 25 00:01:30,920 --> 00:01:34,200 Speaker 1: yield on the two year, four point one five British 26 00:01:34,240 --> 00:01:38,319 Speaker 1: pound at one point one one against the dollar. Maymy, Nathan, 27 00:01:38,360 --> 00:01:40,720 Speaker 1: it is all about the markets this morning. V S 28 00:01:40,800 --> 00:01:43,400 Speaker 1: and P five is on track for a second straight 29 00:01:43,480 --> 00:01:47,000 Speaker 1: weekly loss. Yesterday had closed at the level lowest levels 30 00:01:47,000 --> 00:01:50,280 Speaker 1: in June ten. Your treasury yields trading near its highest 31 00:01:50,400 --> 00:01:53,240 Speaker 1: level in a decade, to your rate climb for eleven 32 00:01:53,320 --> 00:01:56,640 Speaker 1: straight sessions. Ryan D. Trichet's chief market strategist at The 33 00:01:56,640 --> 00:01:58,920 Speaker 1: Carson Group, September is the worst months of the year 34 00:01:59,160 --> 00:02:01,520 Speaker 1: when you're week heading into it like down fifteen percent 35 00:02:01,560 --> 00:02:03,560 Speaker 1: for the year like we were this year. Septembers are 36 00:02:03,720 --> 00:02:06,960 Speaker 1: really really rough and can be dicey, So sure the 37 00:02:06,960 --> 00:02:10,080 Speaker 1: Fed matters. We're not ignoring that, but the stage was set, 38 00:02:10,120 --> 00:02:13,960 Speaker 1: honestly for some for some potential weakness. Carson Group Chief 39 00:02:13,960 --> 00:02:16,920 Speaker 1: market strategist Ryan Dietrich says the SMP five hundred is 40 00:02:16,960 --> 00:02:20,120 Speaker 1: just two and a half percent above the low setback 41 00:02:20,160 --> 00:02:23,000 Speaker 1: in June, and there could be more pain ahead. Amy 42 00:02:23,080 --> 00:02:25,840 Speaker 1: one Wall Street firm is saying the selling is still 43 00:02:25,880 --> 00:02:29,120 Speaker 1: not over. Let's get that story from Bloomberg's Lisa Matteo. 44 00:02:29,560 --> 00:02:32,520 Speaker 1: Goldman Saxes slashing its year end target for the SMP 45 00:02:32,639 --> 00:02:35,880 Speaker 1: five index to thirty six hundred from forty three hundred. 46 00:02:36,040 --> 00:02:39,400 Speaker 1: That implies a four point two percent drop from yesterday's close. 47 00:02:39,639 --> 00:02:42,320 Speaker 1: Goldman says a dramatic shift in the outlook for interest 48 00:02:42,400 --> 00:02:45,840 Speaker 1: rates moving higher will weigh on valuations for equities. The 49 00:02:45,919 --> 00:02:49,519 Speaker 1: higher interest rate scenario in Goldman's valuation model supports a 50 00:02:49,600 --> 00:02:54,000 Speaker 1: price earnings multiple of fifteen times compared with eighteen times previously. 51 00:02:54,280 --> 00:02:57,720 Speaker 1: Goldman said the risks to its latest forecast are still 52 00:02:57,800 --> 00:03:01,040 Speaker 1: skewed to the downside because of the rise odds of recession, 53 00:03:01,320 --> 00:03:04,160 Speaker 1: a scenario that would reduce corporate earnings and wide in 54 00:03:04,200 --> 00:03:07,040 Speaker 1: the yield gap. However, the bank strategists say a year 55 00:03:07,120 --> 00:03:11,239 Speaker 1: end rally to is possible if inflation shows clear signs 56 00:03:11,240 --> 00:03:15,280 Speaker 1: of easing. In New York, Lisa Mateo Bloomberg Daybreak. All right, 57 00:03:15,320 --> 00:03:18,560 Speaker 1: thank you, Lisa. Meantime, cash is king. Bank of America 58 00:03:18,639 --> 00:03:23,079 Speaker 1: strategists say investors are flocking to cash and shunning almost 59 00:03:23,200 --> 00:03:26,560 Speaker 1: every other asset class as they turned the most pessimistic 60 00:03:26,639 --> 00:03:30,079 Speaker 1: since the global financial crisis. The banks has cash had 61 00:03:30,080 --> 00:03:33,320 Speaker 1: inflows of thirty billion dollars this week, while global global 62 00:03:33,360 --> 00:03:37,040 Speaker 1: equity funds saw outflows of seven point eight billion dollars. 63 00:03:37,120 --> 00:03:40,360 Speaker 1: Now we saw more losses overnight in Asia. Amy stocks 64 00:03:40,360 --> 00:03:42,960 Speaker 1: in Hong Kong led the declines. Let's get the latest 65 00:03:43,000 --> 00:03:45,920 Speaker 1: from Bloomberg's Juliette Sally. In Singapore, the m s c 66 00:03:46,040 --> 00:03:49,240 Speaker 1: I Asia Pacific Index posted its sixth weekly declined, the 67 00:03:49,280 --> 00:03:52,880 Speaker 1: longest streak since May. Equities with down Friday in Hong Kong, China, 68 00:03:52,920 --> 00:03:55,920 Speaker 1: Australia and South Korea. Japan was closed for a holiday. 69 00:03:56,200 --> 00:03:58,480 Speaker 1: Alsie bondi old spiked the two year up by as 70 00:03:58,560 --> 00:04:01,200 Speaker 1: much as twenty eight basis point into the hyacinths. April 71 00:04:01,240 --> 00:04:03,800 Speaker 1: twelve and the off show you one continue to hold 72 00:04:03,800 --> 00:04:06,440 Speaker 1: past seven to the dollar, despite the PBOC setting a 73 00:04:06,480 --> 00:04:10,320 Speaker 1: strongerly unfixed for a record twenty second day in Singapore. 74 00:04:10,360 --> 00:04:14,200 Speaker 1: Juliet Sally Bloomberg Daybreak, Thanks Juliet. The stellarf is also 75 00:04:14,240 --> 00:04:17,120 Speaker 1: continuing in Europe, where the region is poised for another 76 00:04:17,160 --> 00:04:20,080 Speaker 1: weekly last for starts. Let's get those details live with 77 00:04:20,160 --> 00:04:23,960 Speaker 1: bloom Bloomberg's un parts in London. Good morning you, Good 78 00:04:23,960 --> 00:04:26,520 Speaker 1: morning Karen Nathan. European stocks declining today at the end 79 00:04:26,520 --> 00:04:28,640 Speaker 1: of a week that made very clear that central banks 80 00:04:28,680 --> 00:04:31,120 Speaker 1: are not done yet. You have stocks the hundred now 81 00:04:31,160 --> 00:04:35,279 Speaker 1: down one percentage points, with energy shares leading losses. Adding 82 00:04:35,279 --> 00:04:37,760 Speaker 1: to that decline not for the first time, credits sweet 83 00:04:37,880 --> 00:04:41,320 Speaker 1: shares slumping to a record load today. That's after the 84 00:04:41,320 --> 00:04:43,680 Speaker 1: troubled Swiss bank was forced suits and I report that 85 00:04:43,680 --> 00:04:47,760 Speaker 1: it's considering exiting the US markets and banking also and focus. 86 00:04:47,880 --> 00:04:51,000 Speaker 1: In the UK government's mini budget today, the cap on 87 00:04:51,120 --> 00:04:54,960 Speaker 1: bankers bonuses inherited from the European Union is to be scrapped, 88 00:04:55,120 --> 00:04:58,640 Speaker 1: a planned increase in corporation tax also to be scrapped, 89 00:04:58,800 --> 00:05:01,400 Speaker 1: and the top rate of inc tacks that is going 90 00:05:01,480 --> 00:05:04,360 Speaker 1: as well in London. Immuno Spoobook day breaking. All right, 91 00:05:04,400 --> 00:05:06,479 Speaker 1: you and thank you higher interest rates around the world 92 00:05:06,560 --> 00:05:09,360 Speaker 1: have oil on track for a fourth weekly declined crude 93 00:05:09,440 --> 00:05:11,680 Speaker 1: rings on track for its first quarterly loss in more 94 00:05:11,680 --> 00:05:15,000 Speaker 1: than two years, as concerns about a global economic slowdown 95 00:05:15,040 --> 00:05:18,039 Speaker 1: way on demand. Checking prices now, NIMEX Screwed is down 96 00:05:18,040 --> 00:05:20,080 Speaker 1: two point two per center a dollar eighty five at 97 00:05:20,160 --> 00:05:22,960 Speaker 1: eighty one dollar sixty four cents of barrel. Brent is 98 00:05:23,000 --> 00:05:26,120 Speaker 1: down two percent at eighty eight dollars sixty nine cents, 99 00:05:26,160 --> 00:05:28,960 Speaker 1: But those losses for oil may be short lived. Some 100 00:05:29,240 --> 00:05:32,280 Speaker 1: of Wall Street's biggest banks see crewed rebounding in the 101 00:05:32,320 --> 00:05:35,800 Speaker 1: fourth quarter. JP Morgan Chase is forecasting Brent CREWD at 102 00:05:35,839 --> 00:05:38,359 Speaker 1: a hundred one dollars about the final three months of 103 00:05:38,400 --> 00:05:41,760 Speaker 1: the year. Goldman Sacks targeting one twenty five dollars. Brent 104 00:05:41,920 --> 00:05:45,400 Speaker 1: is trading around ninety dollars today. Analysts say low inventories 105 00:05:45,440 --> 00:05:49,040 Speaker 1: and sustained demand will keep prices elevated despite concerns of 106 00:05:49,080 --> 00:05:51,760 Speaker 1: a global flowdown. All right, let's turn to corporate news now. 107 00:05:51,800 --> 00:05:54,839 Speaker 1: Amy Boeing is in focus this morning. Companies agreed to 108 00:05:54,880 --> 00:05:58,359 Speaker 1: settle an SEC investigation into safety issues on its seven 109 00:05:58,400 --> 00:06:02,080 Speaker 1: thirty seven Max planes. Get the details from Bloomberg's Jeff Bellinger. 110 00:06:02,760 --> 00:06:05,800 Speaker 1: Boeing has agreed to pay two hundred million dollars to 111 00:06:05,800 --> 00:06:09,960 Speaker 1: settle sec allegations that the company and former CEO Dennis 112 00:06:10,040 --> 00:06:13,599 Speaker 1: Mullenberg failed to disclose issues with the seven thirty seven 113 00:06:13,640 --> 00:06:17,440 Speaker 1: Max jetliner. Muhlenberg will pay one million dollars as part 114 00:06:17,480 --> 00:06:20,920 Speaker 1: of the agreement. Regulators say Bowing and Muhllenberg did not 115 00:06:21,040 --> 00:06:24,480 Speaker 1: reveal safety problems with the seven thirty seven Max, which 116 00:06:24,560 --> 00:06:27,599 Speaker 1: was involved in two crashes that killed three hundred forty 117 00:06:27,640 --> 00:06:30,880 Speaker 1: six people. The twin tragedies prompted one of the longest 118 00:06:30,880 --> 00:06:35,080 Speaker 1: groundings in aviation history. Boeing previously paid a two hundred 119 00:06:35,120 --> 00:06:38,000 Speaker 1: forty three million dollar fine as part of a two 120 00:06:38,040 --> 00:06:41,039 Speaker 1: and a half billion dollar settlement with the US Justice 121 00:06:41,080 --> 00:06:45,400 Speaker 1: Department to end a criminal investigation that was in January 122 00:06:45,480 --> 00:06:50,400 Speaker 1: of one. Jeff Bullinger Bloomberg daybreak. All right, thank you, Jeff. 123 00:06:50,400 --> 00:06:53,600 Speaker 1: FedEx cutting costs and increasing its rates. The giant package 124 00:06:53,640 --> 00:06:55,760 Speaker 1: carrier is looking for as much as two point seven 125 00:06:55,760 --> 00:06:58,880 Speaker 1: billion dollars in savings to deal with flowing demand and 126 00:06:59,080 --> 00:07:01,960 Speaker 1: a tight labor mark. Get Last week, FedEx chair suffered 127 00:07:02,000 --> 00:07:04,360 Speaker 1: their worst one day and forty years after the company 128 00:07:04,400 --> 00:07:07,600 Speaker 1: pointed out worsening economic conditions and the futures are worsening. 129 00:07:07,600 --> 00:07:10,400 Speaker 1: This morning Amy with SMP futures down twenty five points, 130 00:07:10,400 --> 00:07:13,640 Speaker 1: now to own futures down a hundred seventy Nastack futures 131 00:07:13,640 --> 00:07:16,840 Speaker 1: are lower by nine points. Straight ahead your latest local 132 00:07:16,880 --> 00:07:25,239 Speaker 1: headlines and a check of sports. This is Bloomberg. Thank you, Nathan, 133 00:07:25,280 --> 00:07:27,240 Speaker 1: five oh seven on Wall Street. Now we bring in 134 00:07:27,280 --> 00:07:29,280 Speaker 1: Michael Barr with more on what else is going on 135 00:07:29,320 --> 00:07:32,560 Speaker 1: in New York and around the world. Thank you very much, aamie. 136 00:07:32,640 --> 00:07:36,360 Speaker 1: New York City's health officials believe fine people have died 137 00:07:36,360 --> 00:07:40,280 Speaker 1: in the Manhattan nursing home of Legionnaire's disease. The outbreak 138 00:07:40,320 --> 00:07:43,080 Speaker 1: over the past year took place at the Amsterdam Nursing 139 00:07:43,080 --> 00:07:46,600 Speaker 1: Home in Morningside Heights. Authorities say four deaths have been 140 00:07:46,600 --> 00:07:50,720 Speaker 1: confirmed to be connected to the legionnaire's disease. Officials are 141 00:07:50,720 --> 00:07:54,360 Speaker 1: investigating the fifth death. Florida Governor Around the Santis, is 142 00:07:54,400 --> 00:07:57,800 Speaker 1: being sued by a state lawmaker for allegedly wasting hundreds 143 00:07:57,800 --> 00:08:01,040 Speaker 1: of thousands of dollars and state funds to fly dozens 144 00:08:01,040 --> 00:08:05,200 Speaker 1: of Venezuelan migrants to Martha's vineyard in Massachusetts and what 145 00:08:05,280 --> 00:08:08,800 Speaker 1: critics have called a political stunt that tricked vulnerable immigrants. 146 00:08:09,200 --> 00:08:13,600 Speaker 1: Florida State Democratic Senator Jason Piso from Miami also asked 147 00:08:13,600 --> 00:08:16,160 Speaker 1: the court to stop the Santists from transporting any more 148 00:08:16,200 --> 00:08:19,280 Speaker 1: migrants to other states. Meanwhile, the Santis says about ten 149 00:08:19,320 --> 00:08:23,040 Speaker 1: thousand dollars paid to an aviation company to fly migrants 150 00:08:23,080 --> 00:08:26,880 Speaker 1: to Delaware has not been put to use. He was vague, though, 151 00:08:26,920 --> 00:08:31,120 Speaker 1: about payments for sending migrants north. The policy is we 152 00:08:31,160 --> 00:08:35,360 Speaker 1: want to voluntarily transport away from Florida so that we 153 00:08:35,400 --> 00:08:38,000 Speaker 1: don't have to bear the costs, and that there's a 154 00:08:38,120 --> 00:08:41,720 Speaker 1: vendor that is doing that for US. Governor de Santis 155 00:08:41,720 --> 00:08:44,720 Speaker 1: made his comments at a news conference in Miami Dade. 156 00:08:45,160 --> 00:08:48,040 Speaker 1: Voting has begun in Moscow held regions of Ukraine or 157 00:08:48,120 --> 00:08:51,400 Speaker 1: referendums to become part of Russia. Ukraine and the West 158 00:08:51,440 --> 00:08:54,720 Speaker 1: have denounced them as shams without any legal force. The 159 00:08:54,800 --> 00:08:59,560 Speaker 1: referendums follow President Vladimir Putin's order of a partial mobilization 160 00:08:59,559 --> 00:09:02,440 Speaker 1: that could at about three hundred thousand Russian troops to 161 00:09:02,480 --> 00:09:06,200 Speaker 1: the fight. Former US Ambassador to Ukraine William Taylor says 162 00:09:06,200 --> 00:09:08,960 Speaker 1: Putin is looking for a way out of the war 163 00:09:09,120 --> 00:09:12,560 Speaker 1: now that Ukrainian advances have made peace talks less likely. 164 00:09:12,840 --> 00:09:16,880 Speaker 1: He's running out of soldiers. He thinks by instituting this 165 00:09:17,040 --> 00:09:19,680 Speaker 1: draft or this call up, he may be able to 166 00:09:19,679 --> 00:09:23,360 Speaker 1: replace these soldiers that he's losing day after day on 167 00:09:23,480 --> 00:09:28,160 Speaker 1: the battlefield. Former Ambassador Taylor spoke to ABC. NASA plans 168 00:09:28,200 --> 00:09:32,080 Speaker 1: the slam a small harmless asteroid as an experiment. A 169 00:09:32,120 --> 00:09:36,440 Speaker 1: spacecraft named Dart will zero win on the asteroid Monday 170 00:09:36,440 --> 00:09:39,320 Speaker 1: and tent on slamming it head on at fourteen thousand 171 00:09:39,320 --> 00:09:41,960 Speaker 1: miles per hour. Scientists say the impact should be just 172 00:09:42,160 --> 00:09:45,400 Speaker 1: enough to nudge the asteroid into a slightly tighter orbit 173 00:09:45,440 --> 00:09:49,679 Speaker 1: around its companion, Space Rock. NASA scientist Tom Stadler, at 174 00:09:49,679 --> 00:09:51,959 Speaker 1: the end of the day, the real question is how 175 00:09:52,000 --> 00:09:55,520 Speaker 1: effectively did we move the asteroid and can this technique 176 00:09:55,559 --> 00:09:58,080 Speaker 1: of kinectic impact be used in the future if we 177 00:09:58,120 --> 00:10:01,880 Speaker 1: ever needed to. NASA Tom Stadler says the asteroid is 178 00:10:01,880 --> 00:10:06,480 Speaker 1: about six point eight million miles away. Global News twenty 179 00:10:06,520 --> 00:10:09,120 Speaker 1: four hours a day on air and on Bloomberg quick Take, 180 00:10:09,320 --> 00:10:11,920 Speaker 1: powered by more than twenty seven hundred journalist and analysts 181 00:10:12,000 --> 00:10:15,400 Speaker 1: more than twenty countries Michael barn This is Bloomberg Gaming. 182 00:10:15,640 --> 00:10:20,640 Speaker 1: All right, thank you, Michael. Five ten on Wall Street. 183 00:10:20,679 --> 00:10:23,840 Speaker 1: Time now for the Bloomberg Sports Update with Scott Seidenberg. 184 00:10:24,160 --> 00:10:26,880 Speaker 1: Good morning, Amy. Yankees fans will have to wait another 185 00:10:27,160 --> 00:10:31,080 Speaker 1: day before seeing Aaron Judge hit home run number sixty one. 186 00:10:31,160 --> 00:10:33,960 Speaker 1: Judge went over to last night with three walks and 187 00:10:34,120 --> 00:10:37,320 Speaker 1: a strikeout, but the Yanks got the win five four 188 00:10:37,440 --> 00:10:40,559 Speaker 1: over the Red Sox in ten innings on Josh Donaldson's 189 00:10:40,679 --> 00:10:44,480 Speaker 1: fourth walk off hit of the season. It's the yankees 190 00:10:44,720 --> 00:10:48,600 Speaker 1: sixteenth walk off win. That's one shy for the most 191 00:10:48,679 --> 00:10:52,200 Speaker 1: walk off wins in a single season in the Yankees 192 00:10:52,240 --> 00:10:56,080 Speaker 1: franchise history. Here was Donaldson after the game a couple 193 00:10:56,080 --> 00:11:01,920 Speaker 1: of times this year. Doesn't it doesn't disap. With the win, 194 00:11:02,040 --> 00:11:06,360 Speaker 1: the Yankees officially clinched a postseason spot, and Aaron Boone 195 00:11:06,400 --> 00:11:09,480 Speaker 1: becomes the first manager to reach the postseason in each 196 00:11:09,880 --> 00:11:13,240 Speaker 1: of his first five seasons. The Yankees have a seven 197 00:11:13,240 --> 00:11:16,040 Speaker 1: and a half game lead in the Al East over 198 00:11:16,160 --> 00:11:19,400 Speaker 1: the Toronto Blue Jays. NBA news, the Boston Celtics have 199 00:11:19,480 --> 00:11:23,439 Speaker 1: suspended head coach eMate Udoka for the upcoming season that 200 00:11:23,559 --> 00:11:28,400 Speaker 1: team citing violations of team policies. In its announcement, Assistant 201 00:11:28,400 --> 00:11:31,360 Speaker 1: coach Joe Missoula takes over in the interim. Week three 202 00:11:31,480 --> 00:11:34,120 Speaker 1: of the NFL kicked off last night, the Browns defeating 203 00:11:34,120 --> 00:11:38,480 Speaker 1: the Steelers seventeen. On Sunday, the Jets will welcome in 204 00:11:38,720 --> 00:11:42,080 Speaker 1: the Bengals. The Giants host the Cowboys on Monday Night Football. 205 00:11:42,160 --> 00:11:46,800 Speaker 1: I'm Scott Seedinberg with Bloomberg Sports. Amy all right, thank you, Scott. 206 00:11:46,920 --> 00:11:50,080 Speaker 1: Checking futures. They're lower. S and P futures down twenty 207 00:11:50,200 --> 00:11:54,600 Speaker 1: six DAL futures down one two points, Nasdaq futures down 208 00:11:54,640 --> 00:11:57,760 Speaker 1: one hundred points. The ten year treasury unchanged, the yield 209 00:11:57,760 --> 00:12:01,880 Speaker 1: at three point. Much more come on Bloomberg Daybreak, look 210 00:12:01,920 --> 00:12:07,720 Speaker 1: at markets and risk of recession. This is Bloomberg Bloomberg 211 00:12:07,800 --> 00:12:10,400 Speaker 1: eleven three oh weather. Sunny and breezy today. We're going 212 00:12:10,440 --> 00:12:13,440 Speaker 1: up to sixty five degrees plenty of sunshine tomorrow, going 213 00:12:13,480 --> 00:12:16,079 Speaker 1: up to seventy five and then eighty degrees with partial 214 00:12:16,160 --> 00:12:24,880 Speaker 1: sun on Sunday. Markets headlines and breaking news twenty four 215 00:12:24,880 --> 00:12:27,960 Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business 216 00:12:27,960 --> 00:12:31,160 Speaker 1: at and at Bloomberg Quick Take. This is a Bloomberg 217 00:12:31,240 --> 00:12:40,400 Speaker 1: Business Flash I'm Nathan Hagar. Stocks and futures are extending 218 00:12:40,440 --> 00:12:42,600 Speaker 1: declines at the end of a week that has underscored 219 00:12:42,679 --> 00:12:46,920 Speaker 1: expectations for tighter monetary policy and a slowing global economy. 220 00:12:47,040 --> 00:12:49,760 Speaker 1: We checked the markets every fifteen minutes during the trading day. 221 00:12:49,840 --> 00:12:53,319 Speaker 1: On bloomberg SMP futures are down twenty five points, Stown 222 00:12:53,360 --> 00:12:57,880 Speaker 1: futures down four Nasdaq futures down nine points. The stock 223 00:12:57,920 --> 00:13:00,320 Speaker 1: six hundred in Europe is poised for a bear market 224 00:13:00,320 --> 00:13:02,840 Speaker 1: down one point two percent. The decks in Germany down 225 00:13:02,840 --> 00:13:05,720 Speaker 1: one percent, the CAC in Paris down nine tenths percent. 226 00:13:05,760 --> 00:13:08,360 Speaker 1: The foot scene in London is down one point three percent. 227 00:13:08,760 --> 00:13:11,800 Speaker 1: Tenure Treasury right now little changed at three point seven 228 00:13:11,880 --> 00:13:14,199 Speaker 1: one percent for the ten year yield. The yield on 229 00:13:14,240 --> 00:13:18,040 Speaker 1: the two year four point one five percent. Nim X 230 00:13:18,080 --> 00:13:20,440 Speaker 1: screwed is down two percent or a dollar sixty seven 231 00:13:20,440 --> 00:13:23,200 Speaker 1: at eighty one dollar seventy eight cents. A barrel comes 232 00:13:23,240 --> 00:13:25,600 Speaker 1: golled down seven tenths per cent, or eleven dollars forty 233 00:13:25,600 --> 00:13:29,439 Speaker 1: cents at sixteen sixty nine seventy announced. The euro point 234 00:13:29,559 --> 00:13:32,400 Speaker 1: nine seven five nine against the dollar British pound one 235 00:13:32,440 --> 00:13:35,319 Speaker 1: point one eight seven. The end is at one forty 236 00:13:35,360 --> 00:13:38,680 Speaker 1: two point nine one bitcoin down seven tenths percent at 237 00:13:38,760 --> 00:13:42,120 Speaker 1: nineteen thousand, one hundred dollars. That's a Bloomberg business flash. 238 00:13:42,200 --> 00:13:44,720 Speaker 1: Now here's Michael Barr with more on what's going on 239 00:13:44,760 --> 00:13:47,719 Speaker 1: around the world. Good morning, Michael, Good morning. Nathan. The 240 00:13:47,760 --> 00:13:50,920 Speaker 1: special master in the case of documents sees from Donald 241 00:13:50,960 --> 00:13:54,760 Speaker 1: Trump's Florida home says the former president's lawyers have to 242 00:13:54,840 --> 00:13:58,520 Speaker 1: state in a court filing whether they believe the FBI 243 00:13:58,559 --> 00:14:02,000 Speaker 1: and line about the audience. Judge Raymond Deery told Trump's 244 00:14:02,040 --> 00:14:06,079 Speaker 1: legal team that they have until September. Residents and occupied 245 00:14:06,120 --> 00:14:09,240 Speaker 1: parts of Ukraine began voting today in a Russian run 246 00:14:09,360 --> 00:14:13,520 Speaker 1: referendum on joining Russia. The vote has been widely condemned 247 00:14:13,520 --> 00:14:16,240 Speaker 1: as a sham. In baseball, the Yankees beat the Red 248 00:14:16,240 --> 00:14:19,920 Speaker 1: Sox five four, clinching a playoff birth He came close, 249 00:14:20,040 --> 00:14:22,960 Speaker 1: but Aaron Judge fell short of tying Roger Maris his 250 00:14:23,040 --> 00:14:26,320 Speaker 1: a L record of sixty one home runs. The Orioles 251 00:14:26,360 --> 00:14:29,480 Speaker 1: and Giants won the a's lost. Thursday Night football, the 252 00:14:29,480 --> 00:14:33,040 Speaker 1: Browns beat the Steelers twenty nine and seventeen. Global News 253 00:14:33,080 --> 00:14:36,400 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 254 00:14:36,640 --> 00:14:39,560 Speaker 1: powered by more than twenty seven hundred journalists and analysts 255 00:14:39,640 --> 00:14:42,160 Speaker 1: more than a hundred twenty countries. Michael Barr and this 256 00:14:42,320 --> 00:14:45,680 Speaker 1: Bloomberg Amy. All right, thank you, Michael. It's five nineteen 257 00:14:45,720 --> 00:14:49,359 Speaker 1: on Wall Street where live from the Bloomberg Interactive Broker's studios. 258 00:14:49,400 --> 00:14:53,120 Speaker 1: This is Bloomberg Daybreak. Stocks in US equity futures extended 259 00:14:53,120 --> 00:14:56,320 Speaker 1: their declines at the end of a week, underscoring expectations 260 00:14:56,320 --> 00:15:00,240 Speaker 1: for tighter monetary policy and a slowing global economy. We're 261 00:15:00,320 --> 00:15:03,960 Speaker 1: joined now by global market strategist Ben Laylor with Toro 262 00:15:04,520 --> 00:15:06,720 Speaker 1: and Ben, I was looking at your Twitter feed. You 263 00:15:06,760 --> 00:15:10,080 Speaker 1: tweeted that report that said not all recessions are equal. 264 00:15:10,480 --> 00:15:13,200 Speaker 1: Hawk is FED making US recession in out of inevitable. 265 00:15:13,320 --> 00:15:17,800 Speaker 1: So what should we expect? Well, unfortunately, at this point, 266 00:15:17,840 --> 00:15:20,560 Speaker 1: I think the US recession is pretty much inevitable. Um 267 00:15:20,560 --> 00:15:23,680 Speaker 1: and not our word is the scariest word in finance. 268 00:15:23,800 --> 00:15:26,920 Speaker 1: But you know, not all recessions are created equal. And 269 00:15:27,000 --> 00:15:28,760 Speaker 1: you know, if there is a silver lining here, it's 270 00:15:28,800 --> 00:15:30,680 Speaker 1: that I think the recession that is coming in the 271 00:15:30,800 --> 00:15:33,360 Speaker 1: US is going to be a sort of plain vanilla 272 00:15:33,960 --> 00:15:36,760 Speaker 1: um one driven by just the FED hike in interest rates, 273 00:15:36,800 --> 00:15:39,840 Speaker 1: you know, without the shots of COVID, without the sort 274 00:15:39,840 --> 00:15:42,920 Speaker 1: of systemic collapse like we saw in the global financial crisis. 275 00:15:42,920 --> 00:15:46,280 Speaker 1: We're just not seeing you know, imbalances like that. So 276 00:15:46,360 --> 00:15:48,360 Speaker 1: the silver lining is, I think this will be a 277 00:15:48,440 --> 00:15:52,200 Speaker 1: relatively mild recession. It will be painful, but I don't 278 00:15:52,240 --> 00:15:56,720 Speaker 1: think it's uninvestable. Um And I think we've you know, 279 00:15:56,760 --> 00:15:58,520 Speaker 1: the other silver lining here is I think markets have 280 00:15:58,640 --> 00:16:00,560 Speaker 1: priced a lot in. I think we've through the peak 281 00:16:00,560 --> 00:16:04,040 Speaker 1: in inflation. I think this week we've priced in, hopefully 282 00:16:04,080 --> 00:16:08,080 Speaker 1: the peaking interest rate expectations. Recession worry's obviously going through 283 00:16:08,120 --> 00:16:09,720 Speaker 1: the roof, so I think we're pricing that in, and 284 00:16:09,800 --> 00:16:12,880 Speaker 1: investor sentiment, you know, it's already terrible. So I guess 285 00:16:12,880 --> 00:16:15,040 Speaker 1: that's my sort of glass half full review of the 286 00:16:15,080 --> 00:16:17,720 Speaker 1: world of what is has been a pretty brutal few weeks. 287 00:16:18,120 --> 00:16:23,040 Speaker 1: What's driving all of this? What's driving the moves mainly? Um, 288 00:16:23,400 --> 00:16:26,080 Speaker 1: I mean, what's driving it? It's just inflation is high 289 00:16:26,280 --> 00:16:30,000 Speaker 1: and sticky, and the FED is responding to that, and J. 290 00:16:30,160 --> 00:16:34,000 Speaker 1: Powell is channeling his some channeling his Vulcan He's responding 291 00:16:34,040 --> 00:16:35,800 Speaker 1: to that, and he's basically saying he's not going to 292 00:16:35,920 --> 00:16:38,240 Speaker 1: let up until the job is done. Um. You know, 293 00:16:38,320 --> 00:16:40,720 Speaker 1: that's what's been I mean, we're now pricing in four 294 00:16:40,760 --> 00:16:43,080 Speaker 1: and a half percent as the peak FED funds rate 295 00:16:43,200 --> 00:16:46,280 Speaker 1: for early next year. That's clearly quite a long way 296 00:16:46,280 --> 00:16:48,800 Speaker 1: from where we are right now. That's what's been driving 297 00:16:48,800 --> 00:16:51,680 Speaker 1: the latest move down. That's why we're getting pretty close 298 00:16:51,680 --> 00:16:53,920 Speaker 1: to retesting the June lows, on on on on the 299 00:16:54,040 --> 00:16:56,680 Speaker 1: s and P five hundred. Um. I would just say, 300 00:16:56,720 --> 00:16:58,200 Speaker 1: you know, let's look out for that sort of next 301 00:16:58,240 --> 00:17:00,480 Speaker 1: catholyst here I mean, which is the quarter earnings which 302 00:17:00,480 --> 00:17:01,960 Speaker 1: are coming up in a couple of weeks. And let's 303 00:17:01,960 --> 00:17:05,320 Speaker 1: just not forget it was less bad second quarter earnings 304 00:17:05,680 --> 00:17:08,000 Speaker 1: that helped drive that June rally, and I think we're 305 00:17:08,320 --> 00:17:11,080 Speaker 1: being set up for something similar going into third quarter 306 00:17:11,119 --> 00:17:13,560 Speaker 1: owning season. Yeah, that's what I was going to ask about. 307 00:17:13,560 --> 00:17:16,600 Speaker 1: Inflationary pressures. Would they wind up easing and how long 308 00:17:16,640 --> 00:17:21,600 Speaker 1: that might take? Ah, I think it's going to take 309 00:17:21,720 --> 00:17:24,840 Speaker 1: some time. If we look at inflation around the world. 310 00:17:24,880 --> 00:17:28,760 Speaker 1: The problem the US has is that it's driven by 311 00:17:29,000 --> 00:17:32,040 Speaker 1: a lot of these sort of stickier areas light wages 312 00:17:32,080 --> 00:17:33,760 Speaker 1: like housing. So I think it's going to take some 313 00:17:33,800 --> 00:17:36,560 Speaker 1: time to come down. But you know, markets are always 314 00:17:36,600 --> 00:17:39,840 Speaker 1: forward looking, and you know we've priced a lot of 315 00:17:39,840 --> 00:17:42,040 Speaker 1: bad news in here. I think we're beginning to see 316 00:17:42,080 --> 00:17:44,639 Speaker 1: the top of the sort of interest rate cycle early 317 00:17:44,720 --> 00:17:46,439 Speaker 1: next year. And I think the sort of closer we 318 00:17:46,440 --> 00:17:49,000 Speaker 1: get to that, and the more these sort of lead 319 00:17:49,000 --> 00:17:51,879 Speaker 1: inflation indicators, whether it be commodity prices or just the 320 00:17:51,920 --> 00:17:54,320 Speaker 1: weakening economy, begin to sort of cool off a little bit, 321 00:17:54,680 --> 00:17:57,400 Speaker 1: I think I think the bull cases the markets begin 322 00:17:57,440 --> 00:18:00,480 Speaker 1: to sort of sniff out um sort of top of 323 00:18:00,480 --> 00:18:02,320 Speaker 1: the interest right cycle and begin to sort of price 324 00:18:02,400 --> 00:18:04,679 Speaker 1: that in. I want to throw you a bit of 325 00:18:04,680 --> 00:18:07,200 Speaker 1: a little curveball if I could. You were talking about 326 00:18:07,200 --> 00:18:10,399 Speaker 1: how this could be a mild investival your word of 327 00:18:10,480 --> 00:18:14,240 Speaker 1: vanilla recession, But I want to ask about consumer sentiment. 328 00:18:14,320 --> 00:18:16,520 Speaker 1: Wouldn't that depend on how consumers are spawn to it. 329 00:18:16,560 --> 00:18:19,760 Speaker 1: If consumer sentiment then drops because of it's it's a recession, 330 00:18:20,400 --> 00:18:25,440 Speaker 1: is there a risk that could wind up feeding on itself. Absolutely, 331 00:18:25,520 --> 00:18:27,399 Speaker 1: there's definitely a riskless sort of becomes a sort of 332 00:18:27,400 --> 00:18:30,600 Speaker 1: self fulfilling prophecy. I guess the you know, the big 333 00:18:30,640 --> 00:18:34,640 Speaker 1: picture of you is if you look at those uninvestable recessions, 334 00:18:34,680 --> 00:18:38,240 Speaker 1: you know, the ones were earnings for you know, and 335 00:18:38,280 --> 00:18:42,679 Speaker 1: markets do something similar. You see households which you know 336 00:18:42,720 --> 00:18:44,960 Speaker 1: are carrying huge amounts of debt. You see the very 337 00:18:44,960 --> 00:18:48,320 Speaker 1: weak labor markets. You see companies carrying too much debt 338 00:18:48,480 --> 00:18:50,880 Speaker 1: or not being very profitable. You know your banks which 339 00:18:50,880 --> 00:18:54,560 Speaker 1: aren't well capitalized. None of those things apply here. So 340 00:18:54,720 --> 00:18:57,680 Speaker 1: absolutely the consumer is going to soften and probably does 341 00:18:57,760 --> 00:19:00,600 Speaker 1: need to soften for inflation to come down a bit. 342 00:19:00,880 --> 00:19:03,679 Speaker 1: But I think, um again that I think is a 343 00:19:03,720 --> 00:19:08,200 Speaker 1: relatively mild recession compared to some of those big uninvestable 344 00:19:08,200 --> 00:19:11,119 Speaker 1: recessions we've seen, you know, as recently as as twenty 345 00:19:11,200 --> 00:19:15,040 Speaker 1: twenty or or two thousand and eight. And then we've 346 00:19:15,080 --> 00:19:16,840 Speaker 1: got about thirty seconds here. I just want to know 347 00:19:16,880 --> 00:19:18,920 Speaker 1: what you're going to be watching for in the coming quarter. 348 00:19:21,520 --> 00:19:23,439 Speaker 1: I think the two keys are inflation, you know, I 349 00:19:23,480 --> 00:19:25,560 Speaker 1: think we've seen the peak. We need to see keep 350 00:19:25,640 --> 00:19:28,440 Speaker 1: drifting down to take that pressure off those four interest rates. 351 00:19:28,520 --> 00:19:31,399 Speaker 1: And as I say, dug quarter oraining season, which starts 352 00:19:31,400 --> 00:19:33,920 Speaker 1: in a couple of weeks, looking for us some less 353 00:19:33,920 --> 00:19:37,159 Speaker 1: bad earning season to drive, to drive a little bit 354 00:19:37,160 --> 00:19:39,040 Speaker 1: of relief. Similar to what we saw in second quarter. 355 00:19:39,680 --> 00:19:41,520 Speaker 1: All right, thank you Ben so much for taking the 356 00:19:41,600 --> 00:19:44,320 Speaker 1: time with us on this Friday morning. Global market strategists. 357 00:19:44,320 --> 00:19:47,399 Speaker 1: Then Laydler is with the Toro checking the markets now. 358 00:19:47,480 --> 00:19:51,800 Speaker 1: Futures are lower, SMP down twenty seven points down, futures down, 359 00:19:52,640 --> 00:19:56,320 Speaker 1: Nasdaq futures down one d one points ten. Your treasury 360 00:19:56,440 --> 00:20:00,160 Speaker 1: unchanged to yield at three point seven one much want 361 00:20:00,160 --> 00:20:02,720 Speaker 1: to come on Bloomberg Daybreak, Stay with us. This is 362 00:20:02,720 --> 00:20:10,040 Speaker 1: Bloomberg Bloomberg eleven three oh weather sunny and breezy today. 363 00:20:10,080 --> 00:20:12,600 Speaker 1: We're going up to sixty five degrees only going up 364 00:20:12,600 --> 00:20:15,240 Speaker 1: to stephany degrees tomorrow, but plenty of sunshine and a 365 00:20:15,320 --> 00:20:23,399 Speaker 1: chance of rain on Sunday. Going up to broadcasting live 366 00:20:23,560 --> 00:20:27,520 Speaker 1: from the Bloomberg Interacted Broker's studio in New York, Bloomberg 367 00:20:27,520 --> 00:20:30,280 Speaker 1: E living free on to Washington, d C, Bloomberg nine 368 00:20:30,480 --> 00:20:33,399 Speaker 1: nine one to Boston, Bloomberg one O six one to 369 00:20:33,480 --> 00:20:37,240 Speaker 1: San Francisco, Bloomberg N sixteen to the country, Sirius XM 370 00:20:37,280 --> 00:20:40,480 Speaker 1: Todo one nineteen and around the globe the Bloomberg Business 371 00:20:40,560 --> 00:20:44,600 Speaker 1: app in Bloomberg Radio dot com. This is Bloomberg Daybreak. 372 00:20:50,480 --> 00:20:53,000 Speaker 1: It's five thirty on Wall Street. Good Friday morning. I'm 373 00:20:53,000 --> 00:20:55,680 Speaker 1: Amy Morris, I'm Nathan Hager. We're about four hours away 374 00:20:55,680 --> 00:20:57,639 Speaker 1: from the open of US trading. Let's getch you up 375 00:20:57,680 --> 00:20:59,239 Speaker 1: to date on the news you need to know. At 376 00:20:59,280 --> 00:21:01,400 Speaker 1: this hour. The s P five hundred is on track 377 00:21:01,440 --> 00:21:04,399 Speaker 1: for a second straight weekly loss. Yesterday, the index closed 378 00:21:04,400 --> 00:21:07,000 Speaker 1: at its lowest level since June, as higher interest rates 379 00:21:07,040 --> 00:21:10,159 Speaker 1: continue to hit sentiment. Jess meant And covers equities for 380 00:21:10,200 --> 00:21:15,240 Speaker 1: Bloomberg News technology sector, looking at discretionary shares. Also industrial 381 00:21:15,280 --> 00:21:18,159 Speaker 1: companies really coming under pressure following what happened with that 382 00:21:18,200 --> 00:21:20,960 Speaker 1: sell off after the Fed's move, but also more globally, 383 00:21:21,000 --> 00:21:23,480 Speaker 1: this isn't even just the Fed. Investors are really trying 384 00:21:23,520 --> 00:21:26,679 Speaker 1: to digest what's happening because it's been over five hundred 385 00:21:26,680 --> 00:21:29,119 Speaker 1: basis point moved by global central banks right now getting 386 00:21:29,119 --> 00:21:32,480 Speaker 1: aggressive to tackle what's happening with inflation, and traders really 387 00:21:32,480 --> 00:21:35,680 Speaker 1: trying to reprice. Bloomberg Jeff sment And says it looks 388 00:21:35,680 --> 00:21:38,040 Speaker 1: like investors aren't expecting the FED to cut rates till 389 00:21:38,080 --> 00:21:40,800 Speaker 1: sometime next year, and there could be more pain ahead. 390 00:21:40,840 --> 00:21:43,400 Speaker 1: When Wall Street firm says the selling is not over 391 00:21:43,480 --> 00:21:46,200 Speaker 1: Goldman Status slashing its year end target for the SMP 392 00:21:46,280 --> 00:21:49,400 Speaker 1: five D thirty six hundred. That's down from forty three 393 00:21:49,480 --> 00:21:51,720 Speaker 1: hundred now. With that in mind, Amy Cash is king. 394 00:21:51,720 --> 00:21:54,400 Speaker 1: Bank of America strategist say investors they're flocking to cash 395 00:21:54,440 --> 00:21:57,480 Speaker 1: as they turn the most pessimistic since the global financial crisis. 396 00:21:57,720 --> 00:22:00,720 Speaker 1: Jennifer Lee, senior economists with BEMO Cap the Market, says 397 00:22:00,760 --> 00:22:03,600 Speaker 1: firms like hers are lowering growth forecasts, but she says 398 00:22:03,600 --> 00:22:06,239 Speaker 1: there's still strength in the labor market. We've actually been 399 00:22:06,280 --> 00:22:08,560 Speaker 1: lowering our growth forecast sadly like everyone else, and we've 400 00:22:08,560 --> 00:22:12,240 Speaker 1: actually got euro growth now three we still have only 401 00:22:12,320 --> 00:22:15,240 Speaker 1: one quarter of negative growth. I guess the big difference 402 00:22:15,280 --> 00:22:17,879 Speaker 1: here in terms of recession is the labor market. You know, 403 00:22:17,920 --> 00:22:20,160 Speaker 1: anyone who has multiple job offers out there, you don't 404 00:22:20,200 --> 00:22:22,440 Speaker 1: take one because it's not gonna last. This is all 405 00:22:22,560 --> 00:22:24,800 Speaker 1: from personal with what happens when there's a central bank 406 00:22:24,800 --> 00:22:26,960 Speaker 1: who is aggressively tightening. You're gonna see that slower growth, 407 00:22:27,000 --> 00:22:29,000 Speaker 1: You're gonna see it hit consumers spending, and you're going 408 00:22:29,080 --> 00:22:31,159 Speaker 1: to see the doubles rate to caire. Jennifer Lee with 409 00:22:31,240 --> 00:22:34,199 Speaker 1: BEMO Capital Market says she expects unemployment to continue to 410 00:22:34,320 --> 00:22:36,919 Speaker 1: rise in the coming months. Stocks in Europe and Asia 411 00:22:36,960 --> 00:22:39,239 Speaker 1: are lower this morning, so is oil Crewed is on 412 00:22:39,280 --> 00:22:41,960 Speaker 1: track for a fourth weekly decline and could record its 413 00:22:41,960 --> 00:22:44,520 Speaker 1: first quarterly loss in more than two years. Turning to 414 00:22:44,600 --> 00:22:47,760 Speaker 1: corporate news, now FedEx is making cuts the shipping companies, 415 00:22:47,800 --> 00:22:51,560 Speaker 1: slashing flights, differring projects, and closing offices to increase savings. 416 00:22:51,920 --> 00:22:54,560 Speaker 1: That comes after last week's announcement that FedEx would miss 417 00:22:54,600 --> 00:22:57,760 Speaker 1: earnings forecasts. And Hong Kong is announcing plans to cut 418 00:22:57,840 --> 00:23:02,199 Speaker 1: COVID restrictions, scrapping hotel coren teens for inbound travelers. Starting Monday, 419 00:23:02,440 --> 00:23:04,560 Speaker 1: those flying to the city will no longer need to 420 00:23:04,600 --> 00:23:08,000 Speaker 1: take a PCR test before departure. Instead, a rapid test 421 00:23:08,040 --> 00:23:10,640 Speaker 1: will do. However, they still need to take a PCR 422 00:23:10,720 --> 00:23:13,399 Speaker 1: test upon arrival in Hong Kong. It's a sign that 423 00:23:13,440 --> 00:23:16,480 Speaker 1: more easing of COVID restrictions could soon come to the city. Now, 424 00:23:16,560 --> 00:23:19,320 Speaker 1: let's get to these latest red numbers. Amy SMP futures 425 00:23:19,320 --> 00:23:21,840 Speaker 1: are down thirty one point, style futures down two nineteen 426 00:23:21,920 --> 00:23:25,000 Speaker 1: NASTAC futures down a hundred fifteen points. The tenure treasuries 427 00:23:25,040 --> 00:23:27,679 Speaker 1: down four thirty seconds yield three point seven three cent 428 00:23:27,800 --> 00:23:31,160 Speaker 1: yield on the two year, four point one six straight ahead, 429 00:23:31,200 --> 00:23:33,840 Speaker 1: your latest local headlines, and a check of sports. This 430 00:23:34,119 --> 00:23:40,440 Speaker 1: is Bloomberg. Thank you, Nathan, five thirty three on Wall Street. 431 00:23:40,480 --> 00:23:42,640 Speaker 1: Let's bring in Michael bar with more on what else 432 00:23:42,760 --> 00:23:44,600 Speaker 1: is going on in New York and around the world. 433 00:23:44,680 --> 00:23:48,280 Speaker 1: Good morning, Michael, Good morning Amy. Health officials suspect five 434 00:23:48,320 --> 00:23:51,640 Speaker 1: people have dying in the Manhattan nursing home of legionnaire's disease. 435 00:23:52,040 --> 00:23:54,400 Speaker 1: The outbreak over the past year. It took place at 436 00:23:54,440 --> 00:23:58,399 Speaker 1: the Amsterdam Nursing Home in Morningside. Heights for deaths have 437 00:23:58,440 --> 00:24:01,840 Speaker 1: been confirmed, while a fifth is being investigated. Residents in 438 00:24:02,000 --> 00:24:05,080 Speaker 1: Russian occupied parts of Ukraine began voting today and a 439 00:24:05,080 --> 00:24:08,919 Speaker 1: referendum on joining Russia. The vote has been widely condemned 440 00:24:08,960 --> 00:24:12,040 Speaker 1: as a sham. It comes as Vladimir Putin called up 441 00:24:12,080 --> 00:24:15,680 Speaker 1: three hundred thousand reservists to fight the war. Former US 442 00:24:15,720 --> 00:24:19,240 Speaker 1: Ambassador to Ukraine, William Taylor says Putin is looking for 443 00:24:19,280 --> 00:24:21,920 Speaker 1: a way to bolster support for the war inside Russia. 444 00:24:22,400 --> 00:24:25,840 Speaker 1: This is because Putin is losing support for this war 445 00:24:26,440 --> 00:24:29,720 Speaker 1: that he wants to do some sleight of hand that says, well, 446 00:24:29,760 --> 00:24:32,920 Speaker 1: actually this is really Russia. So now it's really the 447 00:24:33,400 --> 00:24:37,840 Speaker 1: Ukrainians and the West against US. Former Ambassador Taylor spoke 448 00:24:37,880 --> 00:24:41,760 Speaker 1: to ABC. A man charged with assault for allegedly slapping 449 00:24:41,840 --> 00:24:45,199 Speaker 1: former New York Mayor Rudolph Juliani on the back and 450 00:24:45,320 --> 00:24:48,720 Speaker 1: using a derogatory term filed a notice of claim against 451 00:24:48,800 --> 00:24:51,879 Speaker 1: the city for two million dollars for false arrest. Daniel 452 00:24:51,960 --> 00:24:54,840 Speaker 1: Gill was seen on a video in June touching Juliani 453 00:24:54,960 --> 00:24:57,800 Speaker 1: on the back with an open hand while Giuliani was 454 00:24:57,960 --> 00:25:01,320 Speaker 1: at a Staten Island shop rights wh Per Market supporting 455 00:25:01,320 --> 00:25:05,000 Speaker 1: his son Andrew's campaign for New York governor. According to 456 00:25:05,080 --> 00:25:07,119 Speaker 1: the notice of claim, Gill was jailed for more than 457 00:25:07,160 --> 00:25:10,240 Speaker 1: twenty four hours and lost his job at the market. 458 00:25:10,600 --> 00:25:13,280 Speaker 1: Hurricane Fiona has founding Bermuda with heavy rain and winds 459 00:25:13,320 --> 00:25:16,359 Speaker 1: as it sweeps by the island. Forecasters say it is 460 00:25:16,400 --> 00:25:19,800 Speaker 1: still on track to approach northeastern Canada as a still 461 00:25:19,880 --> 00:25:23,280 Speaker 1: powerful storm late today. A new poll shows, despite his 462 00:25:23,359 --> 00:25:27,880 Speaker 1: legal issues, support for former President Trump remains unmoved. According 463 00:25:27,920 --> 00:25:30,400 Speaker 1: to a New York Times Siena College survey, about forty 464 00:25:30,440 --> 00:25:33,639 Speaker 1: four percent of voters viewed Trump favorably, about the same 465 00:25:33,680 --> 00:25:37,399 Speaker 1: as an earlier poll in the summer. Meanwhile, Republicans strategist 466 00:25:37,520 --> 00:25:41,800 Speaker 1: Doug High discussed the release of the House Republicans Commitment 467 00:25:41,840 --> 00:25:45,360 Speaker 1: to America agenda ahead of the midterm elections. I think 468 00:25:45,400 --> 00:25:49,640 Speaker 1: Republicans have opportunities here to define themselves on three issues 469 00:25:49,720 --> 00:25:53,880 Speaker 1: even further inflation, UH, crime, and the border. And if 470 00:25:54,000 --> 00:25:56,720 Speaker 1: if we're if the conversations on those three issues, even 471 00:25:56,760 --> 00:25:59,879 Speaker 1: if Republicans don't have a fully fleshed out plan on 472 00:26:00,000 --> 00:26:03,400 Speaker 1: inflation they don't and neither does the White House, then 473 00:26:03,680 --> 00:26:06,119 Speaker 1: if that's what we're talking about, Republicans are going to 474 00:26:06,160 --> 00:26:09,119 Speaker 1: do well. GPS trying to just duck. I spoke on 475 00:26:09,200 --> 00:26:12,359 Speaker 1: sound On, which hairs at five pm on Bloomberg Global 476 00:26:12,400 --> 00:26:14,119 Speaker 1: News twenty four hours a day on air end on 477 00:26:14,119 --> 00:26:16,400 Speaker 1: Bloomberg Quick Take, powered by more than twenty seven hundred 478 00:26:16,440 --> 00:26:19,199 Speaker 1: journalists analysts more than a hundred twenty countries. Michael bar 479 00:26:19,320 --> 00:26:24,440 Speaker 1: this is Bloomberg Gaming. All right, Thank you, Michael. It's 480 00:26:25,040 --> 00:26:27,879 Speaker 1: six on Wall Street. Time now for the Bloomberg Sports Update. 481 00:26:27,880 --> 00:26:31,280 Speaker 1: Here Scott Seidenberg, Good morning, Amy. Some excitement in the 482 00:26:31,280 --> 00:26:34,400 Speaker 1: Bronx last night, as fans thought Aaron judge head home 483 00:26:34,480 --> 00:26:38,520 Speaker 1: run number sixty one, although it felt shy being caught 484 00:26:38,600 --> 00:26:41,359 Speaker 1: at the wall. The Yankees would go on to win 485 00:26:41,560 --> 00:26:44,760 Speaker 1: in tenantings over the Red Sox five four, thanks to 486 00:26:44,880 --> 00:26:48,640 Speaker 1: Josh Donaldson's fourth walk off hit of the season. Here 487 00:26:48,720 --> 00:26:51,960 Speaker 1: was Aaron Judge after the game. I was hoping maybe 488 00:26:52,000 --> 00:26:53,960 Speaker 1: it was blowing out in the time I was hiding, 489 00:26:53,960 --> 00:26:56,480 Speaker 1: But you know he just missed it. But I'll lined 490 00:26:56,560 --> 00:26:58,720 Speaker 1: up for a nice little Jad walk off us for sure. 491 00:26:58,880 --> 00:27:01,760 Speaker 1: It was the sixteen walk off win for the Yankees 492 00:27:01,840 --> 00:27:04,720 Speaker 1: this season, one shy of the most in a single 493 00:27:04,800 --> 00:27:09,200 Speaker 1: season in franchise history. Tonight, Judge will get another crack 494 00:27:09,280 --> 00:27:12,159 Speaker 1: at number sixty one when the Yankees and Red Sox 495 00:27:12,200 --> 00:27:14,920 Speaker 1: face off again. Garrett Cole gets the start Rich Hill 496 00:27:15,000 --> 00:27:17,879 Speaker 1: for the Red Sox. NBA Who's The Boston Celtics have 497 00:27:18,000 --> 00:27:22,359 Speaker 1: suspended head coachma Udoka for the upcoming season the team's 498 00:27:22,400 --> 00:27:27,120 Speaker 1: citing violations of team policies in its announcement. Assistant coach 499 00:27:27,200 --> 00:27:30,040 Speaker 1: Joe Missoula takes over in the interim. Week three of 500 00:27:30,119 --> 00:27:32,679 Speaker 1: the NFL kicked off last night, the Browns defeating the 501 00:27:32,680 --> 00:27:37,919 Speaker 1: Steelers seventeen. On Sunday, the Jets will welcome in the Bengals. 502 00:27:38,040 --> 00:27:40,800 Speaker 1: The Giants host the Cowboys on Monday Night Football. I'm 503 00:27:40,840 --> 00:27:44,400 Speaker 1: Scott Seedinberg with Bloomberg Sports. Amy all right, thank you, 504 00:27:44,440 --> 00:27:47,600 Speaker 1: Scotti seven now on Wall Street time for the Tri 505 00:27:47,720 --> 00:27:51,120 Speaker 1: State Business Report. Here with that is Bloomberg's head Cory. 506 00:27:51,160 --> 00:27:54,480 Speaker 1: In a letter to black Rock CEO Larry Fink, New 507 00:27:54,560 --> 00:27:58,720 Speaker 1: York City's controller says he's reassessing the Big Apple's business 508 00:27:58,760 --> 00:28:03,040 Speaker 1: with the asset management company. The reason, brad Lander claims 509 00:28:03,119 --> 00:28:08,000 Speaker 1: black Rock abdicates responsibility and not pushing corporations to do 510 00:28:08,119 --> 00:28:10,919 Speaker 1: more to fight global warming. Women who work for the 511 00:28:10,960 --> 00:28:13,880 Speaker 1: New York City government see an even bigger gender pay 512 00:28:14,000 --> 00:28:17,080 Speaker 1: gap than the average worker in the state. Report from 513 00:28:17,080 --> 00:28:21,200 Speaker 1: the New York City Council says female municipal employees make 514 00:28:21,240 --> 00:28:24,720 Speaker 1: about seventy three cents for every dollar paid to mail workers. 515 00:28:24,920 --> 00:28:29,280 Speaker 1: Beginning October third, Newark Liberty International Airport will no longer 516 00:28:29,320 --> 00:28:32,080 Speaker 1: be considered a New York City airport by the I 517 00:28:32,359 --> 00:28:35,320 Speaker 1: A t A. Airlines will not be required to give 518 00:28:35,400 --> 00:28:39,880 Speaker 1: passengers options to or from the other two New York airports. Currently, 519 00:28:39,920 --> 00:28:43,240 Speaker 1: many airlines offer passengers the option to change flights within 520 00:28:43,280 --> 00:28:46,480 Speaker 1: a city code without a penalty. That your Bloomberg trying 521 00:28:46,480 --> 00:28:50,600 Speaker 1: state business report. I'm d Corey, Thank you Ed on 522 00:28:50,640 --> 00:28:52,800 Speaker 1: Wall Street. Bloomberg Radio is on the air from San 523 00:28:52,840 --> 00:28:55,720 Speaker 1: Francisco to New York, London to Hong Kong. Let's check 524 00:28:55,720 --> 00:28:57,440 Speaker 1: in with our global news team for some of the 525 00:28:57,480 --> 00:29:00,440 Speaker 1: top stories heard on our three hundred refiliate radio stations 526 00:29:00,440 --> 00:29:05,880 Speaker 1: around the world. I'm Steve Podas kan K and EX 527 00:29:06,000 --> 00:29:09,040 Speaker 1: in Los Angeles. We're talking about a top Fox Enter 528 00:29:09,200 --> 00:29:13,800 Speaker 1: England executive jumping to Rokum Corney's Anaho on w h 529 00:29:13,840 --> 00:29:16,880 Speaker 1: A S and Louisville. FedEx is cutting flights and deferring 530 00:29:16,920 --> 00:29:20,320 Speaker 1: projects to save money. I'm Gina Servetti and for double 531 00:29:20,360 --> 00:29:23,280 Speaker 1: w BBM in Chicago, I'm reporting that the city comes 532 00:29:23,280 --> 00:29:26,800 Speaker 1: in twelve final list of the world's top twenty financial centers. 533 00:29:27,080 --> 00:29:30,120 Speaker 1: I'm Stephen Carol on Bloomberg d A B Digital Radio 534 00:29:30,160 --> 00:29:32,959 Speaker 1: in London. We've been reporting on massive tax cuts being 535 00:29:32,960 --> 00:29:36,400 Speaker 1: announced by the UK's new Chancellor, Quasi Quarte. I made 536 00:29:36,480 --> 00:29:40,160 Speaker 1: Corey on w w J in Detroit. I'm reporting Michigan's 537 00:29:40,200 --> 00:29:44,200 Speaker 1: first self board tap room opens next month in Royal 538 00:29:44,240 --> 00:29:49,000 Speaker 1: Oak Those are some of the stories are twenty Bloomberg 539 00:29:49,080 --> 00:29:52,479 Speaker 1: journalists and analysts are working on this morning around the world. 540 00:29:52,880 --> 00:29:55,720 Speaker 1: It's five thirty nine on Wall Street. The following is 541 00:29:55,720 --> 00:29:59,880 Speaker 1: an editorial from Bloomberg Opinion. This sedaitorial was written by 542 00:30:00,040 --> 00:30:05,280 Speaker 1: Bloomberg Editorial Board. The campaign by several Republican governors to 543 00:30:05,360 --> 00:30:10,560 Speaker 1: transport asylum seekers to Democratic controlled areas such as Washington, 544 00:30:10,640 --> 00:30:16,160 Speaker 1: d C. Has been a national embarrassment. Whatever point Republicans 545 00:30:16,200 --> 00:30:19,920 Speaker 1: may have had about migration, they have forfeited their moral 546 00:30:19,960 --> 00:30:25,040 Speaker 1: authority by treating vulnerable people as props. But while President 547 00:30:25,080 --> 00:30:30,200 Speaker 1: Biden has rightly denounced the relocation stunts, his administration and 548 00:30:30,320 --> 00:30:33,880 Speaker 1: the Democratic controlled Congress should do more to fix the 549 00:30:34,000 --> 00:30:38,120 Speaker 1: underlying problem. They can start by boosting support for the 550 00:30:38,160 --> 00:30:43,680 Speaker 1: Federal Emergency Management Agency's Migrant Assistance program and fixing the 551 00:30:43,760 --> 00:30:48,960 Speaker 1: nation's perennially underfunded immigration courts. Biden might not want to 552 00:30:48,960 --> 00:30:52,200 Speaker 1: call attention to the issue in an election year, but 553 00:30:52,320 --> 00:30:56,320 Speaker 1: it's his responsibility to work to fix it. The editorial 554 00:30:56,480 --> 00:30:59,800 Speaker 1: was written by the Bloomberg Editorial Board. For more Bloomberg 555 00:31:00,000 --> 00:31:02,920 Speaker 1: inn please go to Bloomberg dot com, Slash Opinion or 556 00:31:03,280 --> 00:31:06,760 Speaker 1: opie I n go on the Bloomberg Terminal. This has 557 00:31:06,800 --> 00:31:10,480 Speaker 1: been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every 558 00:31:10,520 --> 00:31:13,480 Speaker 1: weekday at this time, and terminal customers can read more 559 00:31:13,560 --> 00:31:18,080 Speaker 1: at Opie I n Go. Futures are lower. This is 560 00:31:18,080 --> 00:31:25,160 Speaker 1: Bloomberg Bloomberg eleven three oh weather sunny and breezy today 561 00:31:25,200 --> 00:31:27,959 Speaker 1: only going up to sixty five and then seventy degrees 562 00:31:28,000 --> 00:31:30,240 Speaker 1: tomorrow with plenty of sunshine. Could see some rain on 563 00:31:30,280 --> 00:31:38,440 Speaker 1: Sunday going up to seventy five degrees. Markets, headlines and 564 00:31:38,560 --> 00:31:41,840 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 565 00:31:41,960 --> 00:31:45,040 Speaker 1: the Bloomberg Business at and at Bloomberg crick Tape. This 566 00:31:45,440 --> 00:31:54,040 Speaker 1: is a Bloomberg Business Flash Nathan Hagar. The dash to 567 00:31:54,200 --> 00:31:58,760 Speaker 1: cash continues this morning, with futures and stocks extending declines 568 00:31:58,760 --> 00:32:01,240 Speaker 1: at the end of the week, underscoring expectations for tighter 569 00:32:01,360 --> 00:32:05,360 Speaker 1: monetary policy and a slowing global economy. Bloomberg Dollar Index 570 00:32:05,400 --> 00:32:08,480 Speaker 1: has risen to another record tenure. Treasury yields are holding 571 00:32:08,480 --> 00:32:11,000 Speaker 1: near their highest level in a decade. We checked the 572 00:32:11,040 --> 00:32:14,320 Speaker 1: markets every fifteen minutes during the trading day on Bloomberg. 573 00:32:14,400 --> 00:32:17,200 Speaker 1: Right now, SMP futures are extending their declines down thirty 574 00:32:17,240 --> 00:32:20,800 Speaker 1: five point. Stawle futures down two fifty two. NASDAC futures 575 00:32:20,800 --> 00:32:23,160 Speaker 1: down one point one percent, a drop of a hundred 576 00:32:23,160 --> 00:32:25,800 Speaker 1: twenty nine points. The decks in Germany is down one 577 00:32:25,800 --> 00:32:27,960 Speaker 1: and a third percent. Cat in Paris down down one 578 00:32:28,000 --> 00:32:31,840 Speaker 1: point one percent. The tenure treasury is down eleven thirty seconds. 579 00:32:31,880 --> 00:32:34,320 Speaker 1: The yeld three point seven six percent yield on the 580 00:32:34,360 --> 00:32:37,080 Speaker 1: two year now just shy a four point to one. 581 00:32:37,600 --> 00:32:40,120 Speaker 1: Nimex screwed down two point one percent, or a dollar 582 00:32:40,200 --> 00:32:42,560 Speaker 1: seventy five at eighty one dollar seventy three cents of 583 00:32:42,640 --> 00:32:45,000 Speaker 1: arrol comes gold is down nine tenths per cent, or 584 00:32:45,040 --> 00:32:48,480 Speaker 1: fifteen dollar sixty cents at sixteen sixty five thirty announced. 585 00:32:48,800 --> 00:32:51,480 Speaker 1: The euro point nine seven four four against the dollar, 586 00:32:51,600 --> 00:32:55,560 Speaker 1: the British pound one point one zero nine eight. The 587 00:32:55,680 --> 00:32:57,600 Speaker 1: end is at one forty three point one nine and 588 00:32:57,680 --> 00:33:00,960 Speaker 1: bit point right around nineteen thousand dollars. That's a bloomberg 589 00:33:00,960 --> 00:33:03,800 Speaker 1: business flash. Now here's Michael Barr with what else is 590 00:33:03,840 --> 00:33:06,240 Speaker 1: going on around the world. Michael, thank you very much. 591 00:33:06,360 --> 00:33:09,320 Speaker 1: Nathan and Russia, traffic is jammed at border crossing and 592 00:33:09,440 --> 00:33:13,040 Speaker 1: crowds are packed at airports. Most of those trying to 593 00:33:13,080 --> 00:33:16,600 Speaker 1: get out our young men of military age fleeing Vladimir 594 00:33:16,640 --> 00:33:20,200 Speaker 1: Putin's draft after he called up three hundred thousand reserves 595 00:33:20,200 --> 00:33:22,800 Speaker 1: for the war in Ukraine. Protests were also taking place 596 00:33:22,800 --> 00:33:25,880 Speaker 1: in the streets. In the NBA, the Boston Celtics suspended 597 00:33:25,920 --> 00:33:29,040 Speaker 1: head coach in the Udoka for a year for violating 598 00:33:29,160 --> 00:33:32,800 Speaker 1: team policies. In baseball, the Yankees beat the Red Sox 599 00:33:32,840 --> 00:33:36,200 Speaker 1: five for clinching a playoff berth. It hit the warning track, 600 00:33:36,280 --> 00:33:39,200 Speaker 1: but Aaron Judge fell short of tying rogermarrass a l 601 00:33:39,280 --> 00:33:42,959 Speaker 1: record sixty one home runs. The Orioles and Giants won 602 00:33:43,120 --> 00:33:46,000 Speaker 1: the A's lost. Thursday Night football, the Browns beat the 603 00:33:46,040 --> 00:33:49,800 Speaker 1: Steelers twenty nine seventeen. Global News twenty four hours a 604 00:33:49,880 --> 00:33:53,040 Speaker 1: day on air and on Bloomberg Quicktake, powered by more 605 00:33:53,120 --> 00:33:55,480 Speaker 1: than twenty seven hundred journalists and analyst more than a 606 00:33:55,520 --> 00:33:59,320 Speaker 1: hundred twenty countries. Michael Barn this is Bloomberg Gaming, all right, 607 00:33:59,320 --> 00:34:01,280 Speaker 1: Thank you, Mike Well. It is five forty nine on 608 00:34:01,320 --> 00:34:04,680 Speaker 1: Wall Street, Live from the Bloomberg Interactive Broker Studios. This 609 00:34:04,840 --> 00:34:08,520 Speaker 1: is Bloomberg Daybreak. The Federal reserves more hawkish stance reflects 610 00:34:08,520 --> 00:34:11,360 Speaker 1: more tightening to come, we get market reaction. Now we 611 00:34:11,480 --> 00:34:15,240 Speaker 1: turn to global market strategist Brian Leavitt at Investco. Brian, 612 00:34:15,280 --> 00:34:17,879 Speaker 1: good morning, Thank you for taking the time with us today. 613 00:34:17,920 --> 00:34:21,000 Speaker 1: So what is next four markets after this fat decision? 614 00:34:21,080 --> 00:34:24,480 Speaker 1: What's your takeaway? I think we have to be realistic 615 00:34:24,520 --> 00:34:27,120 Speaker 1: about the near term. We we have challenges now just 616 00:34:27,160 --> 00:34:29,719 Speaker 1: because we're just because of these challenges, I still think 617 00:34:29,760 --> 00:34:33,239 Speaker 1: we want to be have more optimism over an intermediate term, 618 00:34:33,280 --> 00:34:36,279 Speaker 1: call it six months to two years. What we need 619 00:34:36,360 --> 00:34:39,480 Speaker 1: to see here is for inflation to come down more 620 00:34:39,560 --> 00:34:42,080 Speaker 1: rapidly in the Federal Reserve to be able to provide 621 00:34:42,080 --> 00:34:45,200 Speaker 1: more clarity on what the terminal rate is going to 622 00:34:45,280 --> 00:34:48,040 Speaker 1: be for the Fed funds rate. Until we get there, 623 00:34:48,560 --> 00:34:52,480 Speaker 1: we should expect volatility and markets policy and certainty creates 624 00:34:52,600 --> 00:34:57,680 Speaker 1: market volatility um, and we should expect some pressure on 625 00:34:57,960 --> 00:35:03,640 Speaker 1: equities because said is tightening to a week weakening economic environment, 626 00:35:03,840 --> 00:35:07,319 Speaker 1: and you know that starts to create some some um 627 00:35:08,360 --> 00:35:13,640 Speaker 1: likely recessionary output outcomes. So it's a challenge. Um, we'll 628 00:35:13,680 --> 00:35:15,800 Speaker 1: get through it, but but it's certainly a challenge in 629 00:35:15,840 --> 00:35:18,759 Speaker 1: the news term. Now, you called this, you anticipated the 630 00:35:18,800 --> 00:35:22,000 Speaker 1: stricter policy stance from the Fed after the latest CPI report. 631 00:35:22,360 --> 00:35:25,040 Speaker 1: So what do you anticipate comes next? How much tighter 632 00:35:25,040 --> 00:35:29,319 Speaker 1: can they go? You mean at some point, um, you 633 00:35:29,360 --> 00:35:32,000 Speaker 1: know they're they're going to tighten the Fed funds rate 634 00:35:32,040 --> 00:35:35,719 Speaker 1: to above where the core personal consumption expenditure is on 635 00:35:35,800 --> 00:35:38,160 Speaker 1: a EUROBA your basis. Um. I know a lot of 636 00:35:38,160 --> 00:35:42,000 Speaker 1: people look at core CPI, but the core pc IS 637 00:35:42,000 --> 00:35:45,200 Speaker 1: is already in the mid fours on a EUBA your basis. 638 00:35:45,239 --> 00:35:48,919 Speaker 1: So you know, the markets pricing in a terminal rate 639 00:35:49,120 --> 00:35:53,720 Speaker 1: of call it four six, um, So we're getting there 640 00:35:53,800 --> 00:35:57,560 Speaker 1: to pricing it in. And my expectation as inflation will 641 00:35:57,600 --> 00:36:00,760 Speaker 1: start to come down. You see in the bond market, 642 00:36:00,800 --> 00:36:03,560 Speaker 1: I mean that the break evens um, the tips break 643 00:36:03,640 --> 00:36:06,640 Speaker 1: even to the bond markets expectation for inflation are all 644 00:36:06,760 --> 00:36:11,320 Speaker 1: the two percent range across maturities. So look at the process. 645 00:36:11,360 --> 00:36:14,759 Speaker 1: This is a unique pandemic cycle. Too much stimulus has 646 00:36:14,800 --> 00:36:19,080 Speaker 1: now led to too much tightening. Um. You know it's 647 00:36:18,920 --> 00:36:23,839 Speaker 1: it tends to bring forward recessions ends of cycles unfortunately. UM. 648 00:36:23,880 --> 00:36:26,640 Speaker 1: But there will be another side to this. I know 649 00:36:26,760 --> 00:36:29,080 Speaker 1: we got word this morning Goldman slashing it's year end 650 00:36:29,120 --> 00:36:34,320 Speaker 1: target for the SMPTY and they're blaming the FED rate trajectory. 651 00:36:34,360 --> 00:36:37,160 Speaker 1: But I wonder if you agree with that. Well, we're 652 00:36:37,160 --> 00:36:39,239 Speaker 1: almost there, right, I mean, if you look at the SMP, 653 00:36:39,360 --> 00:36:42,399 Speaker 1: we're in the thirty seven hundred range. UM. I think 654 00:36:42,480 --> 00:36:45,520 Speaker 1: thirty six hundred is a reasonable one. You know, if 655 00:36:45,520 --> 00:36:48,520 Speaker 1: you if you consider that earnings are still climbing, peak 656 00:36:48,560 --> 00:36:52,680 Speaker 1: earnings are likely to be around to twenty in a recession, 657 00:36:53,000 --> 00:36:55,840 Speaker 1: they tend to follow out, so that would take you 658 00:36:55,920 --> 00:36:59,719 Speaker 1: to around one eight on earnings UM, And then what 659 00:37:00,040 --> 00:37:02,560 Speaker 1: ultiple are you willing to pay for that UM? When 660 00:37:02,680 --> 00:37:06,000 Speaker 1: interest rates are going up, there's pressure on multiples. If 661 00:37:06,040 --> 00:37:08,960 Speaker 1: if the economy starts to slow more meaningfully, which we 662 00:37:09,040 --> 00:37:12,640 Speaker 1: suspected will, rates will start to come down UM, and 663 00:37:12,719 --> 00:37:14,640 Speaker 1: multiples can start to go up. So you think are 664 00:37:14,680 --> 00:37:18,480 Speaker 1: at one eight UM with a twenty multiple, then you're 665 00:37:18,480 --> 00:37:22,400 Speaker 1: looking at thirty six hundred. Of course, if rates stay, 666 00:37:23,120 --> 00:37:25,759 Speaker 1: if inflation stays elevated, and rates stay higher, than I 667 00:37:25,800 --> 00:37:28,680 Speaker 1: think that multiple goes down. So that's the challenge right 668 00:37:28,719 --> 00:37:32,400 Speaker 1: now in trying to consider a bottom. But but I 669 00:37:32,440 --> 00:37:36,440 Speaker 1: do understand that thirty six hundred number UM, and and 670 00:37:36,600 --> 00:37:40,040 Speaker 1: quite frankly we're moving closer to that. I think quicker 671 00:37:40,040 --> 00:37:43,600 Speaker 1: than people have expected. All Right, Brian, thank you so 672 00:37:43,680 --> 00:37:45,880 Speaker 1: much for taking the time with us on this Friday morning. 673 00:37:46,080 --> 00:37:50,440 Speaker 1: Brian Leavitt, Global market strategist at Investco. Nathan all Right, Amy, 674 00:37:50,480 --> 00:37:53,040 Speaker 1: thank you. It's three on Wall Street. Time for our 675 00:37:53,080 --> 00:37:56,920 Speaker 1: Bloomberg Law Report, brought to you by American Arbitration Association. 676 00:37:57,000 --> 00:38:01,760 Speaker 1: Business disputes are inevitable, resolve faster with the American Arbitration Association, 677 00:38:01,840 --> 00:38:05,320 Speaker 1: the global leader in alternative dispute resolution for over ninety years. 678 00:38:05,400 --> 00:38:08,000 Speaker 1: More at a d R dot org. Let's get to 679 00:38:08,040 --> 00:38:11,280 Speaker 1: the legal stories we're watching this morning. Here's Bloomberg's Jeff Bellinger. 680 00:38:14,320 --> 00:38:18,200 Speaker 1: Bloomberg Law reports the compromised deal that averted a nationwide 681 00:38:18,239 --> 00:38:23,000 Speaker 1: rail strike includes a concession allowing unpaid but job protected 682 00:38:23,080 --> 00:38:27,080 Speaker 1: medical leave. Washington d C Is suing Liberty Tax. The 683 00:38:27,120 --> 00:38:31,200 Speaker 1: district accuses the tax prep service of misleading low income 684 00:38:31,239 --> 00:38:35,840 Speaker 1: taxpayers with deceptive offers. A federal trial court barred Rhode 685 00:38:35,880 --> 00:38:39,439 Speaker 1: Island from operating a unique bridge polling system that would 686 00:38:39,480 --> 00:38:44,480 Speaker 1: have targeted large commercial trucks registered in other states. Bloomberg 687 00:38:44,560 --> 00:38:48,719 Speaker 1: Law everything you need, all on one legal research platform, 688 00:38:48,840 --> 00:38:53,480 Speaker 1: including guidance analysis and Bloomberg market intelligence. Find out more 689 00:38:53,520 --> 00:38:58,120 Speaker 1: at Bloomberg Law dot com. Now another legal story we're watching. 690 00:38:58,120 --> 00:39:01,000 Speaker 1: The Justice Departments want a critical attle and its dispute 691 00:39:01,000 --> 00:39:04,040 Speaker 1: over about a hundred documents with classified marketings seized from 692 00:39:04,080 --> 00:39:07,440 Speaker 1: former President Donald Trump's Marral Law go home. The Eleventh 693 00:39:07,440 --> 00:39:10,200 Speaker 1: Circuit Court of Appeals, one of the most conservative appellate 694 00:39:10,200 --> 00:39:13,319 Speaker 1: courts in the country, put a Florida federal judges order 695 00:39:13,360 --> 00:39:16,640 Speaker 1: on hold, ordering that the Justice Department can use the 696 00:39:16,680 --> 00:39:20,640 Speaker 1: materials and its ongoing criminal investigation into whether Trump mishandled 697 00:39:20,640 --> 00:39:24,040 Speaker 1: sensitive government records after he left office. For more, Bloomberg's 698 00:39:24,080 --> 00:39:27,400 Speaker 1: June Grosso speaks with national security law expert Bradley Moss, 699 00:39:27,440 --> 00:39:31,239 Speaker 1: a partner at Mark's Aid, explain why did this three 700 00:39:31,320 --> 00:39:35,880 Speaker 1: judge appeals court panel with two judges nominated by Trump 701 00:39:36,120 --> 00:39:40,600 Speaker 1: intervene here? This was the Eleventh Circuit bringing everyone back 702 00:39:40,640 --> 00:39:43,680 Speaker 1: to reality on what the case law actually says and 703 00:39:43,760 --> 00:39:48,200 Speaker 1: how this is actually supposed to work. Mainly, this was 704 00:39:48,440 --> 00:39:52,200 Speaker 1: a civil litigant Mr Trump, who is now a private citizen, 705 00:39:52,600 --> 00:39:56,359 Speaker 1: suing to try to regain access to a control over 706 00:39:56,480 --> 00:39:59,560 Speaker 1: records that had been seized from him by the FBI 707 00:40:00,000 --> 00:40:03,640 Speaker 1: pursuance to a search warrant, and in the particular context 708 00:40:03,680 --> 00:40:09,240 Speaker 1: of this appeal, it concerned one documents with classification markets. 709 00:40:09,280 --> 00:40:13,360 Speaker 1: At no point in the lower court litigation had he 710 00:40:13,440 --> 00:40:18,759 Speaker 1: ever provided any evidence that the documents were not classified, 711 00:40:18,760 --> 00:40:21,879 Speaker 1: that he had declassified him, or that the markings were 712 00:40:21,960 --> 00:40:25,560 Speaker 1: not valid. The burden was on him, and all of 713 00:40:25,600 --> 00:40:28,960 Speaker 1: the case law that applies in this context, most of 714 00:40:29,000 --> 00:40:31,200 Speaker 1: which has been dealt with in the context of either 715 00:40:31,800 --> 00:40:35,960 Speaker 1: Breame Information Act or First Amendment litigation for manuscripts of 716 00:40:36,040 --> 00:40:40,279 Speaker 1: former employees, always makes clear that the burden to gain 717 00:40:40,440 --> 00:40:43,920 Speaker 1: access to documentation that the government still thinks it is classified, 718 00:40:43,960 --> 00:40:46,120 Speaker 1: that burden is going to be on the plaintiff to 719 00:40:46,280 --> 00:40:50,720 Speaker 1: disprove essentially that the classification is valid. And Mr Trump 720 00:40:50,760 --> 00:40:54,360 Speaker 1: had never done anything to create a genuine issue of 721 00:40:54,640 --> 00:40:58,200 Speaker 1: material dispute on that front. That's why the Circuit intervened. 722 00:40:58,719 --> 00:41:02,280 Speaker 1: Did you see a review to Trump here, the panel said, quote. 723 00:41:02,640 --> 00:41:05,799 Speaker 1: For our part, we cannot discern why the plaintiff would 724 00:41:05,840 --> 00:41:09,040 Speaker 1: have an individual interest in or need for any of 725 00:41:09,040 --> 00:41:13,719 Speaker 1: the one documents with classification markings. I saw it as 726 00:41:13,800 --> 00:41:17,200 Speaker 1: more of a very polite and professional rebute to Judge Cannon, 727 00:41:17,360 --> 00:41:20,200 Speaker 1: more so than to Mr Trump. Mr Trump is trying 728 00:41:20,239 --> 00:41:22,799 Speaker 1: to put forth whatever arguments he can, which is why 729 00:41:22,840 --> 00:41:26,240 Speaker 1: he civil litigan does in this context, trying to create 730 00:41:26,400 --> 00:41:29,680 Speaker 1: a material controversy in order to try to delay in 731 00:41:29,840 --> 00:41:33,600 Speaker 1: gain access to the records. The judge, Judge Cannon, should 732 00:41:33,680 --> 00:41:36,200 Speaker 1: have known better. And that's what the Eleventh Circuit I 733 00:41:36,200 --> 00:41:38,239 Speaker 1: think was really focusing on. It was more of a 734 00:41:38,320 --> 00:41:42,040 Speaker 1: response of what were you thinking here? There's no possible 735 00:41:42,080 --> 00:41:44,960 Speaker 1: basis in law for him to have a possessory interest 736 00:41:45,000 --> 00:41:48,960 Speaker 1: in these documents. That's Bradley Moss, a partner in marks Ad, 737 00:41:49,040 --> 00:41:52,360 Speaker 1: speaking with Bloomberg's June gross How. Catch more of that interview, 738 00:41:52,360 --> 00:41:55,040 Speaker 1: plus analysis of the latest legal news by subscribing to 739 00:41:55,080 --> 00:41:58,520 Speaker 1: the Bloomberg Law Podcast or downloading the show at Bloomberg 740 00:41:58,600 --> 00:42:01,759 Speaker 1: dot com. Slash pod casts and attorneys can find exceptional 741 00:42:02,160 --> 00:42:05,480 Speaker 1: legal research and business development tools at Bloomberg Law dot 742 00:42:05,520 --> 00:42:08,120 Speaker 1: com and on the Bloomberg terminal at b law Go. 743 00:42:08,960 --> 00:42:11,800 Speaker 1: SMP future is down down thirty one point, Style futures 744 00:42:11,800 --> 00:42:14,759 Speaker 1: down two twenty seven. Nasdaq futures are lower by a 745 00:42:14,880 --> 00:42:18,440 Speaker 1: hundred fourteen points. Germany's decks down one point three percent. 746 00:42:18,480 --> 00:42:20,560 Speaker 1: The cat in Paris is down one point one. The 747 00:42:20,560 --> 00:42:23,560 Speaker 1: foot scene London down one point six percent. The Tenure 748 00:42:23,600 --> 00:42:26,000 Speaker 1: Treasury is down nine thirty seconds. You'ld three point seven 749 00:42:26,040 --> 00:42:28,200 Speaker 1: five percent yield on the two year four point one 750 00:42:28,320 --> 00:42:31,160 Speaker 1: nine Nimex crewed down two point one percent or a 751 00:42:31,239 --> 00:42:34,200 Speaker 1: dollar seventy five at eighty one dollar seventy six cents. 752 00:42:34,239 --> 00:42:37,000 Speaker 1: A baril Comex Gold is down eight tenths percent at 753 00:42:37,040 --> 00:42:40,719 Speaker 1: sixteen sixty six seventy announced. The euro point seven five 754 00:42:40,800 --> 00:42:43,560 Speaker 1: eight against the dollar British pound one point one one 755 00:42:43,760 --> 00:42:49,239 Speaker 1: two six. Bloomberg day break continues. This is Bloomberg