Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg
Speaker 1: day Break for Friday, September twenty three two. Coming up
Speaker 1: this hour stops fall around the world as higher rates
Speaker 1: field fears of a slowing global economy. Goldman Sack slashes
Speaker 1: its forecast for the SMP five hundred, oils on track
Speaker 1: for its fourth straight weekly decline, and Credit Suite share
Speaker 1: slumped to a record blow. We'll tell you why officials
Speaker 1: believe several deaths of the Manhattan Nursing Home are from
Speaker 1: legionnaire's disease. Plus referendums begin today in Russian occupied Ukrainian cities.
Speaker 1: I'm Michael barr more ahead, and I'm Scott Sladenburg. The
Speaker 1: chase for sixty one will have to wait another day.
Speaker 1: All that and more coming up in sports. That's all
Speaker 1: strain ahead on Bloomberg Daybreak on Bloomberg eleven three, on
Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh
Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius XAM
Speaker 1: one nineteen and around the world Old on Bloomberg Radio
Speaker 1: dot Com and via the Bloomberg Business. Good Friday morning,
Speaker 1: I'm Amy Morris, I'm Nathan Hagar. Futures are moving lower
Speaker 1: this morning. We're coming up to five oh one on
Speaker 1: Wall Street, and we check the markets every fifteen minutes
Speaker 1: during the trading day. On bloomberg SMP futures are down
Speaker 1: twenty four point, Staff futures down a hundred sixty three.
Speaker 1: Nastack futures are lower by ninety points. The tenure Treasury
Speaker 1: is up one thirty second yield three point seven one
Speaker 1: yield on the two year, four point one five British
Speaker 1: pound at one point one one against the dollar. Maymy, Nathan,
Speaker 1: it is all about the markets this morning. V S
Speaker 1: and P five is on track for a second straight
Speaker 1: weekly loss. Yesterday had closed at the level lowest levels
Speaker 1: in June ten. Your treasury yields trading near its highest
Speaker 1: level in a decade, to your rate climb for eleven
Speaker 1: straight sessions. Ryan D. Trichet's chief market strategist at The
Speaker 1: Carson Group, September is the worst months of the year
Speaker 1: when you're week heading into it like down fifteen percent
Speaker 1: for the year like we were this year. Septembers are
Speaker 1: really really rough and can be dicey, So sure the
Speaker 1: Fed matters. We're not ignoring that, but the stage was set,
Speaker 1: honestly for some for some potential weakness. Carson Group Chief
Speaker 1: market strategist Ryan Dietrich says the SMP five hundred is
Speaker 1: just two and a half percent above the low setback
Speaker 1: in June, and there could be more pain ahead. Amy
Speaker 1: one Wall Street firm is saying the selling is still
Speaker 1: not over. Let's get that story from Bloomberg's Lisa Matteo.
Speaker 1: Goldman Saxes slashing its year end target for the SMP
Speaker 1: five index to thirty six hundred from forty three hundred.
Speaker 1: That implies a four point two percent drop from yesterday's close.
Speaker 1: Goldman says a dramatic shift in the outlook for interest
Speaker 1: rates moving higher will weigh on valuations for equities. The
Speaker 1: higher interest rate scenario in Goldman's valuation model supports a
Speaker 1: price earnings multiple of fifteen times compared with eighteen times previously.
Speaker 1: Goldman said the risks to its latest forecast are still
Speaker 1: skewed to the downside because of the rise odds of recession,
Speaker 1: a scenario that would reduce corporate earnings and wide in
Speaker 1: the yield gap. However, the bank strategists say a year
Speaker 1: end rally to is possible if inflation shows clear signs
Speaker 1: of easing. In New York, Lisa Mateo Bloomberg Daybreak. All right,
Speaker 1: thank you, Lisa. Meantime, cash is king. Bank of America
Speaker 1: strategists say investors are flocking to cash and shunning almost
Speaker 1: every other asset class as they turned the most pessimistic
Speaker 1: since the global financial crisis. The banks has cash had
Speaker 1: inflows of thirty billion dollars this week, while global global
Speaker 1: equity funds saw outflows of seven point eight billion dollars.
Speaker 1: Now we saw more losses overnight in Asia. Amy stocks
Speaker 1: in Hong Kong led the declines. Let's get the latest
Speaker 1: from Bloomberg's Juliette Sally. In Singapore, the m s c
Speaker 1: I Asia Pacific Index posted its sixth weekly declined, the
Speaker 1: longest streak since May. Equities with down Friday in Hong Kong, China,
Speaker 1: Australia and South Korea. Japan was closed for a holiday.
Speaker 1: Alsie bondi old spiked the two year up by as
Speaker 1: much as twenty eight basis point into the hyacinths. April
Speaker 1: twelve and the off show you one continue to hold
Speaker 1: past seven to the dollar, despite the PBOC setting a
Speaker 1: strongerly unfixed for a record twenty second day in Singapore.
Speaker 1: Juliet Sally Bloomberg Daybreak, Thanks Juliet. The stellarf is also
Speaker 1: continuing in Europe, where the region is poised for another
Speaker 1: weekly last for starts. Let's get those details live with
Speaker 1: bloom Bloomberg's un parts in London. Good morning you, Good
Speaker 1: morning Karen Nathan. European stocks declining today at the end
Speaker 1: of a week that made very clear that central banks
Speaker 1: are not done yet. You have stocks the hundred now
Speaker 1: down one percentage points, with energy shares leading losses. Adding
Speaker 1: to that decline not for the first time, credits sweet
Speaker 1: shares slumping to a record load today. That's after the
Speaker 1: troubled Swiss bank was forced suits and I report that
Speaker 1: it's considering exiting the US markets and banking also and focus.
Speaker 1: In the UK government's mini budget today, the cap on
Speaker 1: bankers bonuses inherited from the European Union is to be scrapped,
Speaker 1: a planned increase in corporation tax also to be scrapped,
Speaker 1: and the top rate of inc tacks that is going
Speaker 1: as well in London. Immuno Spoobook day breaking. All right,
Speaker 1: you and thank you higher interest rates around the world
Speaker 1: have oil on track for a fourth weekly declined crude
Speaker 1: rings on track for its first quarterly loss in more
Speaker 1: than two years, as concerns about a global economic slowdown
Speaker 1: way on demand. Checking prices now, NIMEX Screwed is down
Speaker 1: two point two per center a dollar eighty five at
Speaker 1: eighty one dollar sixty four cents of barrel. Brent is
Speaker 1: down two percent at eighty eight dollars sixty nine cents,
Speaker 1: But those losses for oil may be short lived. Some
Speaker 1: of Wall Street's biggest banks see crewed rebounding in the
Speaker 1: fourth quarter. JP Morgan Chase is forecasting Brent CREWD at
Speaker 1: a hundred one dollars about the final three months of
Speaker 1: the year. Goldman Sacks targeting one twenty five dollars. Brent
Speaker 1: is trading around ninety dollars today. Analysts say low inventories
Speaker 1: and sustained demand will keep prices elevated despite concerns of
Speaker 1: a global flowdown. All right, let's turn to corporate news now.
Speaker 1: Amy Boeing is in focus this morning. Companies agreed to
Speaker 1: settle an SEC investigation into safety issues on its seven
Speaker 1: thirty seven Max planes. Get the details from Bloomberg's Jeff Bellinger.
Speaker 1: Boeing has agreed to pay two hundred million dollars to
Speaker 1: settle sec allegations that the company and former CEO Dennis
Speaker 1: Mullenberg failed to disclose issues with the seven thirty seven
Speaker 1: Max jetliner. Muhlenberg will pay one million dollars as part
Speaker 1: of the agreement. Regulators say Bowing and Muhllenberg did not
Speaker 1: reveal safety problems with the seven thirty seven Max, which
Speaker 1: was involved in two crashes that killed three hundred forty
Speaker 1: six people. The twin tragedies prompted one of the longest
Speaker 1: groundings in aviation history. Boeing previously paid a two hundred
Speaker 1: forty three million dollar fine as part of a two
Speaker 1: and a half billion dollar settlement with the US Justice
Speaker 1: Department to end a criminal investigation that was in January
Speaker 1: of one. Jeff Bullinger Bloomberg daybreak. All right, thank you, Jeff.
Speaker 1: FedEx cutting costs and increasing its rates. The giant package
Speaker 1: carrier is looking for as much as two point seven
Speaker 1: billion dollars in savings to deal with flowing demand and
Speaker 1: a tight labor mark. Get Last week, FedEx chair suffered
Speaker 1: their worst one day and forty years after the company
Speaker 1: pointed out worsening economic conditions and the futures are worsening.
Speaker 1: This morning Amy with SMP futures down twenty five points,
Speaker 1: now to own futures down a hundred seventy Nastack futures
Speaker 1: are lower by nine points. Straight ahead your latest local
Speaker 1: headlines and a check of sports. This is Bloomberg. Thank you, Nathan,
Speaker 1: five oh seven on Wall Street. Now we bring in
Speaker 1: Michael Barr with more on what else is going on
Speaker 1: in New York and around the world. Thank you very much, aamie.
Speaker 1: New York City's health officials believe fine people have died
Speaker 1: in the Manhattan nursing home of Legionnaire's disease. The outbreak
Speaker 1: over the past year took place at the Amsterdam Nursing
Speaker 1: Home in Morningside Heights. Authorities say four deaths have been
Speaker 1: confirmed to be connected to the legionnaire's disease. Officials are
Speaker 1: investigating the fifth death. Florida Governor Around the Santis, is
Speaker 1: being sued by a state lawmaker for allegedly wasting hundreds
Speaker 1: of thousands of dollars and state funds to fly dozens
Speaker 1: of Venezuelan migrants to Martha's vineyard in Massachusetts and what
Speaker 1: critics have called a political stunt that tricked vulnerable immigrants.
Speaker 1: Florida State Democratic Senator Jason Piso from Miami also asked
Speaker 1: the court to stop the Santists from transporting any more
Speaker 1: migrants to other states. Meanwhile, the Santis says about ten
Speaker 1: thousand dollars paid to an aviation company to fly migrants
Speaker 1: to Delaware has not been put to use. He was vague, though,
Speaker 1: about payments for sending migrants north. The policy is we
Speaker 1: want to voluntarily transport away from Florida so that we
Speaker 1: don't have to bear the costs, and that there's a
Speaker 1: vendor that is doing that for US. Governor de Santis
Speaker 1: made his comments at a news conference in Miami Dade.
Speaker 1: Voting has begun in Moscow held regions of Ukraine or
Speaker 1: referendums to become part of Russia. Ukraine and the West
Speaker 1: have denounced them as shams without any legal force. The
Speaker 1: referendums follow President Vladimir Putin's order of a partial mobilization
Speaker 1: that could at about three hundred thousand Russian troops to
Speaker 1: the fight. Former US Ambassador to Ukraine William Taylor says
Speaker 1: Putin is looking for a way out of the war
Speaker 1: now that Ukrainian advances have made peace talks less likely.
Speaker 1: He's running out of soldiers. He thinks by instituting this
Speaker 1: draft or this call up, he may be able to
Speaker 1: replace these soldiers that he's losing day after day on
Speaker 1: the battlefield. Former Ambassador Taylor spoke to ABC. NASA plans
Speaker 1: the slam a small harmless asteroid as an experiment. A
Speaker 1: spacecraft named Dart will zero win on the asteroid Monday
Speaker 1: and tent on slamming it head on at fourteen thousand
Speaker 1: miles per hour. Scientists say the impact should be just
Speaker 1: enough to nudge the asteroid into a slightly tighter orbit
Speaker 1: around its companion, Space Rock. NASA scientist Tom Stadler, at
Speaker 1: the end of the day, the real question is how
Speaker 1: effectively did we move the asteroid and can this technique
Speaker 1: of kinectic impact be used in the future if we
Speaker 1: ever needed to. NASA Tom Stadler says the asteroid is
Speaker 1: about six point eight million miles away. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg quick Take,
Speaker 1: powered by more than twenty seven hundred journalist and analysts
Speaker 1: more than twenty countries Michael barn This is Bloomberg Gaming.
Speaker 1: All right, thank you, Michael. Five ten on Wall Street.
Speaker 1: Time now for the Bloomberg Sports Update with Scott Seidenberg.
Speaker 1: Good morning, Amy. Yankees fans will have to wait another
Speaker 1: day before seeing Aaron Judge hit home run number sixty one.
Speaker 1: Judge went over to last night with three walks and
Speaker 1: a strikeout, but the Yanks got the win five four
Speaker 1: over the Red Sox in ten innings on Josh Donaldson's
Speaker 1: fourth walk off hit of the season. It's the yankees
Speaker 1: sixteenth walk off win. That's one shy for the most
Speaker 1: walk off wins in a single season in the Yankees
Speaker 1: franchise history. Here was Donaldson after the game a couple
Speaker 1: of times this year. Doesn't it doesn't disap. With the win,
Speaker 1: the Yankees officially clinched a postseason spot, and Aaron Boone
Speaker 1: becomes the first manager to reach the postseason in each
Speaker 1: of his first five seasons. The Yankees have a seven
Speaker 1: and a half game lead in the Al East over
Speaker 1: the Toronto Blue Jays. NBA news, the Boston Celtics have
Speaker 1: suspended head coach eMate Udoka for the upcoming season that
Speaker 1: team citing violations of team policies. In its announcement, Assistant
Speaker 1: coach Joe Missoula takes over in the interim. Week three
Speaker 1: of the NFL kicked off last night, the Browns defeating
Speaker 1: the Steelers seventeen. On Sunday, the Jets will welcome in
Speaker 1: the Bengals. The Giants host the Cowboys on Monday Night Football.
Speaker 1: I'm Scott Seedinberg with Bloomberg Sports. Amy all right, thank you, Scott.
Speaker 1: Checking futures. They're lower. S and P futures down twenty
Speaker 1: six DAL futures down one two points, Nasdaq futures down
Speaker 1: one hundred points. The ten year treasury unchanged, the yield
Speaker 1: at three point. Much more come on Bloomberg Daybreak, look
Speaker 1: at markets and risk of recession. This is Bloomberg Bloomberg
Speaker 1: eleven three oh weather. Sunny and breezy today. We're going
Speaker 1: up to sixty five degrees plenty of sunshine tomorrow, going
Speaker 1: up to seventy five and then eighty degrees with partial
Speaker 1: sun on Sunday. Markets headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business
Speaker 1: at and at Bloomberg Quick Take. This is a Bloomberg
Speaker 1: Business Flash I'm Nathan Hagar. Stocks and futures are extending
Speaker 1: declines at the end of a week that has underscored
Speaker 1: expectations for tighter monetary policy and a slowing global economy.
Speaker 1: We checked the markets every fifteen minutes during the trading day.
Speaker 1: On bloomberg SMP futures are down twenty five points, Stown
Speaker 1: futures down four Nasdaq futures down nine points. The stock
Speaker 1: six hundred in Europe is poised for a bear market
Speaker 1: down one point two percent. The decks in Germany down
Speaker 1: one percent, the CAC in Paris down nine tenths percent.
Speaker 1: The foot scene in London is down one point three percent.
Speaker 1: Tenure Treasury right now little changed at three point seven
Speaker 1: one percent for the ten year yield. The yield on
Speaker 1: the two year four point one five percent. Nim X
Speaker 1: screwed is down two percent or a dollar sixty seven
Speaker 1: at eighty one dollar seventy eight cents. A barrel comes
Speaker 1: golled down seven tenths per cent, or eleven dollars forty
Speaker 1: cents at sixteen sixty nine seventy announced. The euro point
Speaker 1: nine seven five nine against the dollar British pound one
Speaker 1: point one eight seven. The end is at one forty
Speaker 1: two point nine one bitcoin down seven tenths percent at
Speaker 1: nineteen thousand, one hundred dollars. That's a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Good morning, Michael, Good morning. Nathan. The
Speaker 1: special master in the case of documents sees from Donald
Speaker 1: Trump's Florida home says the former president's lawyers have to
Speaker 1: state in a court filing whether they believe the FBI
Speaker 1: and line about the audience. Judge Raymond Deery told Trump's
Speaker 1: legal team that they have until September. Residents and occupied
Speaker 1: parts of Ukraine began voting today in a Russian run
Speaker 1: referendum on joining Russia. The vote has been widely condemned
Speaker 1: as a sham. In baseball, the Yankees beat the Red
Speaker 1: Sox five four, clinching a playoff birth He came close,
Speaker 1: but Aaron Judge fell short of tying Roger Maris his
Speaker 1: a L record of sixty one home runs. The Orioles
Speaker 1: and Giants won the a's lost. Thursday Night football, the
Speaker 1: Browns beat the Steelers twenty nine and seventeen. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: more than a hundred twenty countries. Michael Barr and this
Speaker 1: Bloomberg Amy. All right, thank you, Michael. It's five nineteen
Speaker 1: on Wall Street where live from the Bloomberg Interactive Broker's studios.
Speaker 1: This is Bloomberg Daybreak. Stocks in US equity futures extended
Speaker 1: their declines at the end of a week, underscoring expectations
Speaker 1: for tighter monetary policy and a slowing global economy. We're
Speaker 1: joined now by global market strategist Ben Laylor with Toro
Speaker 1: and Ben, I was looking at your Twitter feed. You
Speaker 1: tweeted that report that said not all recessions are equal.
Speaker 1: Hawk is FED making US recession in out of inevitable.
Speaker 1: So what should we expect? Well, unfortunately, at this point,
Speaker 1: I think the US recession is pretty much inevitable. Um
Speaker 1: and not our word is the scariest word in finance.
Speaker 1: But you know, not all recessions are created equal. And
Speaker 1: you know, if there is a silver lining here, it's
Speaker 1: that I think the recession that is coming in the
Speaker 1: US is going to be a sort of plain vanilla
Speaker 1: um one driven by just the FED hike in interest rates,
Speaker 1: you know, without the shots of COVID, without the sort
Speaker 1: of systemic collapse like we saw in the global financial crisis.
Speaker 1: We're just not seeing you know, imbalances like that. So
Speaker 1: the silver lining is, I think this will be a
Speaker 1: relatively mild recession. It will be painful, but I don't
Speaker 1: think it's uninvestable. Um And I think we've you know,
Speaker 1: the other silver lining here is I think markets have
Speaker 1: priced a lot in. I think we've through the peak
Speaker 1: in inflation. I think this week we've priced in, hopefully
Speaker 1: the peaking interest rate expectations. Recession worry's obviously going through
Speaker 1: the roof, so I think we're pricing that in, and
Speaker 1: investor sentiment, you know, it's already terrible. So I guess
Speaker 1: that's my sort of glass half full review of the
Speaker 1: world of what is has been a pretty brutal few weeks.
Speaker 1: What's driving all of this? What's driving the moves mainly? Um,
Speaker 1: I mean, what's driving it? It's just inflation is high
Speaker 1: and sticky, and the FED is responding to that, and J.
Speaker 1: Powell is channeling his some channeling his Vulcan He's responding
Speaker 1: to that, and he's basically saying he's not going to
Speaker 1: let up until the job is done. Um. You know,
Speaker 1: that's what's been I mean, we're now pricing in four
Speaker 1: and a half percent as the peak FED funds rate
Speaker 1: for early next year. That's clearly quite a long way
Speaker 1: from where we are right now. That's what's been driving
Speaker 1: the latest move down. That's why we're getting pretty close
Speaker 1: to retesting the June lows, on on on on the
Speaker 1: s and P five hundred. Um. I would just say,
Speaker 1: you know, let's look out for that sort of next
Speaker 1: catholyst here I mean, which is the quarter earnings which
Speaker 1: are coming up in a couple of weeks. And let's
Speaker 1: just not forget it was less bad second quarter earnings
Speaker 1: that helped drive that June rally, and I think we're
Speaker 1: being set up for something similar going into third quarter
Speaker 1: owning season. Yeah, that's what I was going to ask about.
Speaker 1: Inflationary pressures. Would they wind up easing and how long
Speaker 1: that might take? Ah, I think it's going to take
Speaker 1: some time. If we look at inflation around the world.
Speaker 1: The problem the US has is that it's driven by
Speaker 1: a lot of these sort of stickier areas light wages
Speaker 1: like housing. So I think it's going to take some
Speaker 1: time to come down. But you know, markets are always
Speaker 1: forward looking, and you know we've priced a lot of
Speaker 1: bad news in here. I think we're beginning to see
Speaker 1: the top of the sort of interest rate cycle early
Speaker 1: next year. And I think the sort of closer we
Speaker 1: get to that, and the more these sort of lead
Speaker 1: inflation indicators, whether it be commodity prices or just the
Speaker 1: weakening economy, begin to sort of cool off a little bit,
Speaker 1: I think I think the bull cases the markets begin
Speaker 1: to sort of sniff out um sort of top of
Speaker 1: the interest right cycle and begin to sort of price
Speaker 1: that in. I want to throw you a bit of
Speaker 1: a little curveball if I could. You were talking about
Speaker 1: how this could be a mild investival your word of
Speaker 1: vanilla recession, But I want to ask about consumer sentiment.
Speaker 1: Wouldn't that depend on how consumers are spawn to it.
Speaker 1: If consumer sentiment then drops because of it's it's a recession,
Speaker 1: is there a risk that could wind up feeding on itself. Absolutely,
Speaker 1: there's definitely a riskless sort of becomes a sort of
Speaker 1: self fulfilling prophecy. I guess the you know, the big
Speaker 1: picture of you is if you look at those uninvestable recessions,
Speaker 1: you know, the ones were earnings for you know, and
Speaker 1: markets do something similar. You see households which you know
Speaker 1: are carrying huge amounts of debt. You see the very
Speaker 1: weak labor markets. You see companies carrying too much debt
Speaker 1: or not being very profitable. You know your banks which
Speaker 1: aren't well capitalized. None of those things apply here. So
Speaker 1: absolutely the consumer is going to soften and probably does
Speaker 1: need to soften for inflation to come down a bit.
Speaker 1: But I think, um again that I think is a
Speaker 1: relatively mild recession compared to some of those big uninvestable
Speaker 1: recessions we've seen, you know, as recently as as twenty
Speaker 1: twenty or or two thousand and eight. And then we've
Speaker 1: got about thirty seconds here. I just want to know
Speaker 1: what you're going to be watching for in the coming quarter.
Speaker 1: I think the two keys are inflation, you know, I
Speaker 1: think we've seen the peak. We need to see keep
Speaker 1: drifting down to take that pressure off those four interest rates.
Speaker 1: And as I say, dug quarter oraining season, which starts
Speaker 1: in a couple of weeks, looking for us some less
Speaker 1: bad earning season to drive, to drive a little bit
Speaker 1: of relief. Similar to what we saw in second quarter.
Speaker 1: All right, thank you Ben so much for taking the
Speaker 1: time with us on this Friday morning. Global market strategists.
Speaker 1: Then Laydler is with the Toro checking the markets now.
Speaker 1: Futures are lower, SMP down twenty seven points down, futures down,
Speaker 1: Nasdaq futures down one d one points ten. Your treasury
Speaker 1: unchanged to yield at three point seven one much want
Speaker 1: to come on Bloomberg Daybreak, Stay with us. This is
Speaker 1: Bloomberg Bloomberg eleven three oh weather sunny and breezy today.
Speaker 1: We're going up to sixty five degrees only going up
Speaker 1: to stephany degrees tomorrow, but plenty of sunshine and a
Speaker 1: chance of rain on Sunday. Going up to broadcasting live
Speaker 1: from the Bloomberg Interacted Broker's studio in New York, Bloomberg
Speaker 1: E living free on to Washington, d C, Bloomberg nine
Speaker 1: nine one to Boston, Bloomberg one O six one to
Speaker 1: San Francisco, Bloomberg N sixteen to the country, Sirius XM
Speaker 1: Todo one nineteen and around the globe the Bloomberg Business
Speaker 1: app in Bloomberg Radio dot com. This is Bloomberg Daybreak.
Speaker 1: It's five thirty on Wall Street. Good Friday morning. I'm
Speaker 1: Amy Morris, I'm Nathan Hager. We're about four hours away
Speaker 1: from the open of US trading. Let's getch you up
Speaker 1: to date on the news you need to know. At
Speaker 1: this hour. The s P five hundred is on track
Speaker 1: for a second straight weekly loss. Yesterday, the index closed
Speaker 1: at its lowest level since June, as higher interest rates
Speaker 1: continue to hit sentiment. Jess meant And covers equities for
Speaker 1: Bloomberg News technology sector, looking at discretionary shares. Also industrial
Speaker 1: companies really coming under pressure following what happened with that
Speaker 1: sell off after the Fed's move, but also more globally,
Speaker 1: this isn't even just the Fed. Investors are really trying
Speaker 1: to digest what's happening because it's been over five hundred
Speaker 1: basis point moved by global central banks right now getting
Speaker 1: aggressive to tackle what's happening with inflation, and traders really
Speaker 1: trying to reprice. Bloomberg Jeff sment And says it looks
Speaker 1: like investors aren't expecting the FED to cut rates till
Speaker 1: sometime next year, and there could be more pain ahead.
Speaker 1: When Wall Street firm says the selling is not over
Speaker 1: Goldman Status slashing its year end target for the SMP
Speaker 1: five D thirty six hundred. That's down from forty three
Speaker 1: hundred now. With that in mind, Amy Cash is king.
Speaker 1: Bank of America strategist say investors they're flocking to cash
Speaker 1: as they turn the most pessimistic since the global financial crisis.
Speaker 1: Jennifer Lee, senior economists with BEMO Cap the Market, says
Speaker 1: firms like hers are lowering growth forecasts, but she says
Speaker 1: there's still strength in the labor market. We've actually been
Speaker 1: lowering our growth forecast sadly like everyone else, and we've
Speaker 1: actually got euro growth now three we still have only
Speaker 1: one quarter of negative growth. I guess the big difference
Speaker 1: here in terms of recession is the labor market. You know,
Speaker 1: anyone who has multiple job offers out there, you don't
Speaker 1: take one because it's not gonna last. This is all
Speaker 1: from personal with what happens when there's a central bank
Speaker 1: who is aggressively tightening. You're gonna see that slower growth,
Speaker 1: You're gonna see it hit consumers spending, and you're going
Speaker 1: to see the doubles rate to caire. Jennifer Lee with
Speaker 1: BEMO Capital Market says she expects unemployment to continue to
Speaker 1: rise in the coming months. Stocks in Europe and Asia
Speaker 1: are lower this morning, so is oil Crewed is on
Speaker 1: track for a fourth weekly decline and could record its
Speaker 1: first quarterly loss in more than two years. Turning to
Speaker 1: corporate news, now FedEx is making cuts the shipping companies,
Speaker 1: slashing flights, differring projects, and closing offices to increase savings.
Speaker 1: That comes after last week's announcement that FedEx would miss
Speaker 1: earnings forecasts. And Hong Kong is announcing plans to cut
Speaker 1: COVID restrictions, scrapping hotel coren teens for inbound travelers. Starting Monday,
Speaker 1: those flying to the city will no longer need to
Speaker 1: take a PCR test before departure. Instead, a rapid test
Speaker 1: will do. However, they still need to take a PCR
Speaker 1: test upon arrival in Hong Kong. It's a sign that
Speaker 1: more easing of COVID restrictions could soon come to the city. Now,
Speaker 1: let's get to these latest red numbers. Amy SMP futures
Speaker 1: are down thirty one point, style futures down two nineteen
Speaker 1: NASTAC futures down a hundred fifteen points. The tenure treasuries
Speaker 1: down four thirty seconds yield three point seven three cent
Speaker 1: yield on the two year, four point one six straight ahead,
Speaker 1: your latest local headlines, and a check of sports. This
Speaker 1: is Bloomberg. Thank you, Nathan, five thirty three on Wall Street.
Speaker 1: Let's bring in Michael bar with more on what else
Speaker 1: is going on in New York and around the world.
Speaker 1: Good morning, Michael, Good morning Amy. Health officials suspect five
Speaker 1: people have dying in the Manhattan nursing home of legionnaire's disease.
Speaker 1: The outbreak over the past year. It took place at
Speaker 1: the Amsterdam Nursing Home in Morningside. Heights for deaths have
Speaker 1: been confirmed, while a fifth is being investigated. Residents in
Speaker 1: Russian occupied parts of Ukraine began voting today and a
Speaker 1: referendum on joining Russia. The vote has been widely condemned
Speaker 1: as a sham. It comes as Vladimir Putin called up
Speaker 1: three hundred thousand reservists to fight the war. Former US
Speaker 1: Ambassador to Ukraine, William Taylor says Putin is looking for
Speaker 1: a way to bolster support for the war inside Russia.
Speaker 1: This is because Putin is losing support for this war
Speaker 1: that he wants to do some sleight of hand that says, well,
Speaker 1: actually this is really Russia. So now it's really the
Speaker 1: Ukrainians and the West against US. Former Ambassador Taylor spoke
Speaker 1: to ABC. A man charged with assault for allegedly slapping
Speaker 1: former New York Mayor Rudolph Juliani on the back and
Speaker 1: using a derogatory term filed a notice of claim against
Speaker 1: the city for two million dollars for false arrest. Daniel
Speaker 1: Gill was seen on a video in June touching Juliani
Speaker 1: on the back with an open hand while Giuliani was
Speaker 1: at a Staten Island shop rights wh Per Market supporting
Speaker 1: his son Andrew's campaign for New York governor. According to
Speaker 1: the notice of claim, Gill was jailed for more than
Speaker 1: twenty four hours and lost his job at the market.
Speaker 1: Hurricane Fiona has founding Bermuda with heavy rain and winds
Speaker 1: as it sweeps by the island. Forecasters say it is
Speaker 1: still on track to approach northeastern Canada as a still
Speaker 1: powerful storm late today. A new poll shows, despite his
Speaker 1: legal issues, support for former President Trump remains unmoved. According
Speaker 1: to a New York Times Siena College survey, about forty
Speaker 1: four percent of voters viewed Trump favorably, about the same
Speaker 1: as an earlier poll in the summer. Meanwhile, Republicans strategist
Speaker 1: Doug High discussed the release of the House Republicans Commitment
Speaker 1: to America agenda ahead of the midterm elections. I think
Speaker 1: Republicans have opportunities here to define themselves on three issues
Speaker 1: even further inflation, UH, crime, and the border. And if
Speaker 1: if we're if the conversations on those three issues, even
Speaker 1: if Republicans don't have a fully fleshed out plan on
Speaker 1: inflation they don't and neither does the White House, then
Speaker 1: if that's what we're talking about, Republicans are going to
Speaker 1: do well. GPS trying to just duck. I spoke on
Speaker 1: sound On, which hairs at five pm on Bloomberg Global
Speaker 1: News twenty four hours a day on air end on
Speaker 1: Bloomberg Quick Take, powered by more than twenty seven hundred
Speaker 1: journalists analysts more than a hundred twenty countries. Michael bar
Speaker 1: this is Bloomberg Gaming. All right, Thank you, Michael. It's
Speaker 1: six on Wall Street. Time now for the Bloomberg Sports Update.
Speaker 1: Here Scott Seidenberg, Good morning, Amy. Some excitement in the
Speaker 1: Bronx last night, as fans thought Aaron judge head home
Speaker 1: run number sixty one, although it felt shy being caught
Speaker 1: at the wall. The Yankees would go on to win
Speaker 1: in tenantings over the Red Sox five four, thanks to
Speaker 1: Josh Donaldson's fourth walk off hit of the season. Here
Speaker 1: was Aaron Judge after the game. I was hoping maybe
Speaker 1: it was blowing out in the time I was hiding,
Speaker 1: But you know he just missed it. But I'll lined
Speaker 1: up for a nice little Jad walk off us for sure.
Speaker 1: It was the sixteen walk off win for the Yankees
Speaker 1: this season, one shy of the most in a single
Speaker 1: season in franchise history. Tonight, Judge will get another crack
Speaker 1: at number sixty one when the Yankees and Red Sox
Speaker 1: face off again. Garrett Cole gets the start Rich Hill
Speaker 1: for the Red Sox. NBA Who's The Boston Celtics have
Speaker 1: suspended head coachma Udoka for the upcoming season the team's
Speaker 1: citing violations of team policies in its announcement. Assistant coach
Speaker 1: Joe Missoula takes over in the interim. Week three of
Speaker 1: the NFL kicked off last night, the Browns defeating the
Speaker 1: Steelers seventeen. On Sunday, the Jets will welcome in the Bengals.
Speaker 1: The Giants host the Cowboys on Monday Night Football. I'm
Speaker 1: Scott Seedinberg with Bloomberg Sports. Amy all right, thank you,
Speaker 1: Scotti seven now on Wall Street time for the Tri
Speaker 1: State Business Report. Here with that is Bloomberg's head Cory.
Speaker 1: In a letter to black Rock CEO Larry Fink, New
Speaker 1: York City's controller says he's reassessing the Big Apple's business
Speaker 1: with the asset management company. The reason, brad Lander claims
Speaker 1: black Rock abdicates responsibility and not pushing corporations to do
Speaker 1: more to fight global warming. Women who work for the
Speaker 1: New York City government see an even bigger gender pay
Speaker 1: gap than the average worker in the state. Report from
Speaker 1: the New York City Council says female municipal employees make
Speaker 1: about seventy three cents for every dollar paid to mail workers.
Speaker 1: Beginning October third, Newark Liberty International Airport will no longer
Speaker 1: be considered a New York City airport by the I
Speaker 1: A t A. Airlines will not be required to give
Speaker 1: passengers options to or from the other two New York airports. Currently,
Speaker 1: many airlines offer passengers the option to change flights within
Speaker 1: a city code without a penalty. That your Bloomberg trying
Speaker 1: state business report. I'm d Corey, Thank you Ed on
Speaker 1: Wall Street. Bloomberg Radio is on the air from San
Speaker 1: Francisco to New York, London to Hong Kong. Let's check
Speaker 1: in with our global news team for some of the
Speaker 1: top stories heard on our three hundred refiliate radio stations
Speaker 1: around the world. I'm Steve Podas kan K and EX
Speaker 1: in Los Angeles. We're talking about a top Fox Enter
Speaker 1: England executive jumping to Rokum Corney's Anaho on w h
Speaker 1: A S and Louisville. FedEx is cutting flights and deferring
Speaker 1: projects to save money. I'm Gina Servetti and for double
Speaker 1: w BBM in Chicago, I'm reporting that the city comes
Speaker 1: in twelve final list of the world's top twenty financial centers.
Speaker 1: I'm Stephen Carol on Bloomberg d A B Digital Radio
Speaker 1: in London. We've been reporting on massive tax cuts being
Speaker 1: announced by the UK's new Chancellor, Quasi Quarte. I made
Speaker 1: Corey on w w J in Detroit. I'm reporting Michigan's
Speaker 1: first self board tap room opens next month in Royal
Speaker 1: Oak Those are some of the stories are twenty Bloomberg
Speaker 1: journalists and analysts are working on this morning around the world.
Speaker 1: It's five thirty nine on Wall Street. The following is
Speaker 1: an editorial from Bloomberg Opinion. This sedaitorial was written by
Speaker 1: Bloomberg Editorial Board. The campaign by several Republican governors to
Speaker 1: transport asylum seekers to Democratic controlled areas such as Washington,
Speaker 1: d C. Has been a national embarrassment. Whatever point Republicans
Speaker 1: may have had about migration, they have forfeited their moral
Speaker 1: authority by treating vulnerable people as props. But while President
Speaker 1: Biden has rightly denounced the relocation stunts, his administration and
Speaker 1: the Democratic controlled Congress should do more to fix the
Speaker 1: underlying problem. They can start by boosting support for the
Speaker 1: Federal Emergency Management Agency's Migrant Assistance program and fixing the
Speaker 1: nation's perennially underfunded immigration courts. Biden might not want to
Speaker 1: call attention to the issue in an election year, but
Speaker 1: it's his responsibility to work to fix it. The editorial
Speaker 1: was written by the Bloomberg Editorial Board. For more Bloomberg
Speaker 1: inn please go to Bloomberg dot com, Slash Opinion or
Speaker 1: opie I n go on the Bloomberg Terminal. This has
Speaker 1: been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every
Speaker 1: weekday at this time, and terminal customers can read more
Speaker 1: at Opie I n Go. Futures are lower. This is
Speaker 1: Bloomberg Bloomberg eleven three oh weather sunny and breezy today
Speaker 1: only going up to sixty five and then seventy degrees
Speaker 1: tomorrow with plenty of sunshine. Could see some rain on
Speaker 1: Sunday going up to seventy five degrees. Markets, headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business at and at Bloomberg crick Tape. This
Speaker 1: is a Bloomberg Business Flash Nathan Hagar. The dash to
Speaker 1: cash continues this morning, with futures and stocks extending declines
Speaker 1: at the end of the week, underscoring expectations for tighter
Speaker 1: monetary policy and a slowing global economy. Bloomberg Dollar Index
Speaker 1: has risen to another record tenure. Treasury yields are holding
Speaker 1: near their highest level in a decade. We checked the
Speaker 1: markets every fifteen minutes during the trading day on Bloomberg.
Speaker 1: Right now, SMP futures are extending their declines down thirty
Speaker 1: five point. Stawle futures down two fifty two. NASDAC futures
Speaker 1: down one point one percent, a drop of a hundred
Speaker 1: twenty nine points. The decks in Germany is down one
Speaker 1: and a third percent. Cat in Paris down down one
Speaker 1: point one percent. The tenure treasury is down eleven thirty seconds.
Speaker 1: The yeld three point seven six percent yield on the
Speaker 1: two year now just shy a four point to one.
Speaker 1: Nimex screwed down two point one percent, or a dollar
Speaker 1: seventy five at eighty one dollar seventy three cents of
Speaker 1: arrol comes gold is down nine tenths per cent, or
Speaker 1: fifteen dollar sixty cents at sixteen sixty five thirty announced.
Speaker 1: The euro point nine seven four four against the dollar,
Speaker 1: the British pound one point one zero nine eight. The
Speaker 1: end is at one forty three point one nine and
Speaker 1: bit point right around nineteen thousand dollars. That's a bloomberg
Speaker 1: business flash. Now here's Michael Barr with what else is
Speaker 1: going on around the world. Michael, thank you very much.
Speaker 1: Nathan and Russia, traffic is jammed at border crossing and
Speaker 1: crowds are packed at airports. Most of those trying to
Speaker 1: get out our young men of military age fleeing Vladimir
Speaker 1: Putin's draft after he called up three hundred thousand reserves
Speaker 1: for the war in Ukraine. Protests were also taking place
Speaker 1: in the streets. In the NBA, the Boston Celtics suspended
Speaker 1: head coach in the Udoka for a year for violating
Speaker 1: team policies. In baseball, the Yankees beat the Red Sox
Speaker 1: five for clinching a playoff berth. It hit the warning track,
Speaker 1: but Aaron Judge fell short of tying rogermarrass a l
Speaker 1: record sixty one home runs. The Orioles and Giants won
Speaker 1: the A's lost. Thursday Night football, the Browns beat the
Speaker 1: Steelers twenty nine seventeen. Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty seven hundred journalists and analyst more than a
Speaker 1: hundred twenty countries. Michael Barn this is Bloomberg Gaming, all right,
Speaker 1: Thank you, Mike Well. It is five forty nine on
Speaker 1: Wall Street, Live from the Bloomberg Interactive Broker Studios. This
Speaker 1: is Bloomberg Daybreak. The Federal reserves more hawkish stance reflects
Speaker 1: more tightening to come, we get market reaction. Now we
Speaker 1: turn to global market strategist Brian Leavitt at Investco. Brian,
Speaker 1: good morning, Thank you for taking the time with us today.
Speaker 1: So what is next four markets after this fat decision?
Speaker 1: What's your takeaway? I think we have to be realistic
Speaker 1: about the near term. We we have challenges now just
Speaker 1: because we're just because of these challenges, I still think
Speaker 1: we want to be have more optimism over an intermediate term,
Speaker 1: call it six months to two years. What we need
Speaker 1: to see here is for inflation to come down more
Speaker 1: rapidly in the Federal Reserve to be able to provide
Speaker 1: more clarity on what the terminal rate is going to
Speaker 1: be for the Fed funds rate. Until we get there,
Speaker 1: we should expect volatility and markets policy and certainty creates
Speaker 1: market volatility um, and we should expect some pressure on
Speaker 1: equities because said is tightening to a week weakening economic environment,
Speaker 1: and you know that starts to create some some um
Speaker 1: likely recessionary output outcomes. So it's a challenge. Um, we'll
Speaker 1: get through it, but but it's certainly a challenge in
Speaker 1: the news term. Now, you called this, you anticipated the
Speaker 1: stricter policy stance from the Fed after the latest CPI report.
Speaker 1: So what do you anticipate comes next? How much tighter
Speaker 1: can they go? You mean at some point, um, you
Speaker 1: know they're they're going to tighten the Fed funds rate
Speaker 1: to above where the core personal consumption expenditure is on
Speaker 1: a EUROBA your basis. Um. I know a lot of
Speaker 1: people look at core CPI, but the core pc IS
Speaker 1: is already in the mid fours on a EUBA your basis.
Speaker 1: So you know, the markets pricing in a terminal rate
Speaker 1: of call it four six, um, So we're getting there
Speaker 1: to pricing it in. And my expectation as inflation will
Speaker 1: start to come down. You see in the bond market,
Speaker 1: I mean that the break evens um, the tips break
Speaker 1: even to the bond markets expectation for inflation are all
Speaker 1: the two percent range across maturities. So look at the process.
Speaker 1: This is a unique pandemic cycle. Too much stimulus has
Speaker 1: now led to too much tightening. Um. You know it's
Speaker 1: it tends to bring forward recessions ends of cycles unfortunately. UM.
Speaker 1: But there will be another side to this. I know
Speaker 1: we got word this morning Goldman slashing it's year end
Speaker 1: target for the SMPTY and they're blaming the FED rate trajectory.
Speaker 1: But I wonder if you agree with that. Well, we're
Speaker 1: almost there, right, I mean, if you look at the SMP,
Speaker 1: we're in the thirty seven hundred range. UM. I think
Speaker 1: thirty six hundred is a reasonable one. You know, if
Speaker 1: you if you consider that earnings are still climbing, peak
Speaker 1: earnings are likely to be around to twenty in a recession,
Speaker 1: they tend to follow out, so that would take you
Speaker 1: to around one eight on earnings UM, And then what
Speaker 1: ultiple are you willing to pay for that UM? When
Speaker 1: interest rates are going up, there's pressure on multiples. If
Speaker 1: if the economy starts to slow more meaningfully, which we
Speaker 1: suspected will, rates will start to come down UM, and
Speaker 1: multiples can start to go up. So you think are
Speaker 1: at one eight UM with a twenty multiple, then you're
Speaker 1: looking at thirty six hundred. Of course, if rates stay,
Speaker 1: if inflation stays elevated, and rates stay higher, than I
Speaker 1: think that multiple goes down. So that's the challenge right
Speaker 1: now in trying to consider a bottom. But but I
Speaker 1: do understand that thirty six hundred number UM, and and
Speaker 1: quite frankly we're moving closer to that. I think quicker
Speaker 1: than people have expected. All Right, Brian, thank you so
Speaker 1: much for taking the time with us on this Friday morning.
Speaker 1: Brian Leavitt, Global market strategist at Investco. Nathan all Right, Amy,
Speaker 1: thank you. It's three on Wall Street. Time for our
Speaker 1: Bloomberg Law Report, brought to you by American Arbitration Association.
Speaker 1: Business disputes are inevitable, resolve faster with the American Arbitration Association,
Speaker 1: the global leader in alternative dispute resolution for over ninety years.
Speaker 1: More at a d R dot org. Let's get to
Speaker 1: the legal stories we're watching this morning. Here's Bloomberg's Jeff Bellinger.
Speaker 1: Bloomberg Law reports the compromised deal that averted a nationwide
Speaker 1: rail strike includes a concession allowing unpaid but job protected
Speaker 1: medical leave. Washington d C Is suing Liberty Tax. The
Speaker 1: district accuses the tax prep service of misleading low income
Speaker 1: taxpayers with deceptive offers. A federal trial court barred Rhode
Speaker 1: Island from operating a unique bridge polling system that would
Speaker 1: have targeted large commercial trucks registered in other states. Bloomberg
Speaker 1: Law everything you need, all on one legal research platform,
Speaker 1: including guidance analysis and Bloomberg market intelligence. Find out more
Speaker 1: at Bloomberg Law dot com. Now another legal story we're watching.
Speaker 1: The Justice Departments want a critical attle and its dispute
Speaker 1: over about a hundred documents with classified marketings seized from
Speaker 1: former President Donald Trump's Marral Law go home. The Eleventh
Speaker 1: Circuit Court of Appeals, one of the most conservative appellate
Speaker 1: courts in the country, put a Florida federal judges order
Speaker 1: on hold, ordering that the Justice Department can use the
Speaker 1: materials and its ongoing criminal investigation into whether Trump mishandled
Speaker 1: sensitive government records after he left office. For more, Bloomberg's
Speaker 1: June Grosso speaks with national security law expert Bradley Moss,
Speaker 1: a partner at Mark's Aid, explain why did this three
Speaker 1: judge appeals court panel with two judges nominated by Trump
Speaker 1: intervene here? This was the Eleventh Circuit bringing everyone back
Speaker 1: to reality on what the case law actually says and
Speaker 1: how this is actually supposed to work. Mainly, this was
Speaker 1: a civil litigant Mr Trump, who is now a private citizen,
Speaker 1: suing to try to regain access to a control over
Speaker 1: records that had been seized from him by the FBI
Speaker 1: pursuance to a search warrant, and in the particular context
Speaker 1: of this appeal, it concerned one documents with classification markets.
Speaker 1: At no point in the lower court litigation had he
Speaker 1: ever provided any evidence that the documents were not classified,
Speaker 1: that he had declassified him, or that the markings were
Speaker 1: not valid. The burden was on him, and all of
Speaker 1: the case law that applies in this context, most of
Speaker 1: which has been dealt with in the context of either
Speaker 1: Breame Information Act or First Amendment litigation for manuscripts of
Speaker 1: former employees, always makes clear that the burden to gain
Speaker 1: access to documentation that the government still thinks it is classified,
Speaker 1: that burden is going to be on the plaintiff to
Speaker 1: disprove essentially that the classification is valid. And Mr Trump
Speaker 1: had never done anything to create a genuine issue of
Speaker 1: material dispute on that front. That's why the Circuit intervened.
Speaker 1: Did you see a review to Trump here, the panel said, quote.
Speaker 1: For our part, we cannot discern why the plaintiff would
Speaker 1: have an individual interest in or need for any of
Speaker 1: the one documents with classification markings. I saw it as
Speaker 1: more of a very polite and professional rebute to Judge Cannon,
Speaker 1: more so than to Mr Trump. Mr Trump is trying
Speaker 1: to put forth whatever arguments he can, which is why
Speaker 1: he civil litigan does in this context, trying to create
Speaker 1: a material controversy in order to try to delay in
Speaker 1: gain access to the records. The judge, Judge Cannon, should
Speaker 1: have known better. And that's what the Eleventh Circuit I
Speaker 1: think was really focusing on. It was more of a
Speaker 1: response of what were you thinking here? There's no possible
Speaker 1: basis in law for him to have a possessory interest
Speaker 1: in these documents. That's Bradley Moss, a partner in marks Ad,
Speaker 1: speaking with Bloomberg's June gross How. Catch more of that interview,
Speaker 1: plus analysis of the latest legal news by subscribing to
Speaker 1: the Bloomberg Law Podcast or downloading the show at Bloomberg
Speaker 1: dot com. Slash pod casts and attorneys can find exceptional
Speaker 1: legal research and business development tools at Bloomberg Law dot
Speaker 1: com and on the Bloomberg terminal at b law Go.
Speaker 1: SMP future is down down thirty one point, Style futures
Speaker 1: down two twenty seven. Nasdaq futures are lower by a
Speaker 1: hundred fourteen points. Germany's decks down one point three percent.
Speaker 1: The cat in Paris is down one point one. The
Speaker 1: foot scene London down one point six percent. The Tenure
Speaker 1: Treasury is down nine thirty seconds. You'ld three point seven
Speaker 1: five percent yield on the two year four point one
Speaker 1: nine Nimex crewed down two point one percent or a
Speaker 1: dollar seventy five at eighty one dollar seventy six cents.
Speaker 1: A baril Comex Gold is down eight tenths percent at
Speaker 1: sixteen sixty six seventy announced. The euro point seven five
Speaker 1: eight against the dollar British pound one point one one
Speaker 1: two six. Bloomberg day break continues. This is Bloomberg