1 00:00:02,720 --> 00:00:05,360 Speaker 1: Live from the Bloomberg Interact at Burger Studios. This is 2 00:00:05,360 --> 00:00:09,360 Speaker 1: Bloomberg Day Right for Wednesday, September four two. Coming up 3 00:00:09,360 --> 00:00:12,719 Speaker 1: this hour, futures rise following the worst day for stocks 4 00:00:12,720 --> 00:00:16,239 Speaker 1: in two years, positive inflation data in the UK as 5 00:00:16,280 --> 00:00:19,880 Speaker 1: prices slipped from forty year highs in London, Queen Elizabeth's 6 00:00:19,880 --> 00:00:22,439 Speaker 1: tough and makes its way to Buckingham Palace, and a 7 00:00:22,520 --> 00:00:25,000 Speaker 1: rail strike in the US threatens the halt shipments of 8 00:00:25,079 --> 00:00:28,560 Speaker 1: farm products and autos. Former New York Governor Cuomo files 9 00:00:28,560 --> 00:00:31,720 Speaker 1: and ethics complain against the A G blush Ukrainian troops 10 00:00:31,880 --> 00:00:34,880 Speaker 1: keep up the pressure on fleeing Russian forces. I'm Michael 11 00:00:34,880 --> 00:00:37,760 Speaker 1: blarn More and I'm John Stashower. And sports. Another big 12 00:00:37,840 --> 00:00:39,919 Speaker 1: night for Aaron Judge, two Armbrons and the Yankee win 13 00:00:39,960 --> 00:00:41,839 Speaker 1: over the Red Sox. The Mets lost again to the 14 00:00:41,880 --> 00:00:45,920 Speaker 1: cub That's all straight ahead on Bloomberg Day Break on 15 00:00:46,080 --> 00:00:50,680 Speaker 1: Bloomberg eleven Freoo, New York, Bloomberg one, Washington, d C, 16 00:00:51,080 --> 00:00:55,440 Speaker 1: Bloomberg one or six one, Boston, Bloomberg nine sixty seven, Francisco, 17 00:00:55,800 --> 00:00:59,080 Speaker 1: Syrius x M one nineteen and around the world on 18 00:00:59,200 --> 00:01:02,680 Speaker 1: Bloomberg Radio dot Com. And via the Bloomberg Business Act. 19 00:01:07,480 --> 00:01:10,240 Speaker 1: Good morning, I'm Nathan Hagar and I'm Karen Moscow and 20 00:01:10,360 --> 00:01:12,640 Speaker 1: US futures are on the rise this morning. We are 21 00:01:12,640 --> 00:01:14,399 Speaker 1: coming up to five oh one on Wall Street, and 22 00:01:14,440 --> 00:01:17,400 Speaker 1: we checked the markets every fifteen minutes throughout the trading day. 23 00:01:17,480 --> 00:01:21,119 Speaker 1: On Bloomberg, SNP future is up twenty four points this morning, 24 00:01:21,160 --> 00:01:23,960 Speaker 1: down features of a hundred fifty three and NASDAG futures 25 00:01:24,000 --> 00:01:27,120 Speaker 1: up seventy eight. Ten year treasury down six thirty seconds. 26 00:01:27,200 --> 00:01:29,880 Speaker 1: You have three point four three percent and they yield 27 00:01:29,920 --> 00:01:32,720 Speaker 1: on the two year at three point seven six percent. 28 00:01:32,920 --> 00:01:35,640 Speaker 1: Nathan well Karen stocks are coming off their worst day 29 00:01:35,680 --> 00:01:39,479 Speaker 1: since twenty twenty. The SMP five hundred dropped four point 30 00:01:39,520 --> 00:01:43,120 Speaker 1: three while the NAZDAC plunged more than five percent. It 31 00:01:43,240 --> 00:01:46,120 Speaker 1: was all fueled by hotter than expected inflation data, which 32 00:01:46,120 --> 00:01:48,760 Speaker 1: is increasing bets for bigger rate hikes from the Fed. 33 00:01:49,120 --> 00:01:52,880 Speaker 1: Carol Schlife, his deputy chief investment officer at Beimo Family Office, 34 00:01:53,440 --> 00:01:56,559 Speaker 1: the market desperately wants to figure out a bullish tone, 35 00:01:56,560 --> 00:01:59,760 Speaker 1: and they've been fighting the Fed all year, and the 36 00:02:00,040 --> 00:02:03,800 Speaker 1: it's been unequivocal saying we're gonna you know, they communicated 37 00:02:03,840 --> 00:02:07,000 Speaker 1: pretty clearly that it's the three quarters of basis point rise. 38 00:02:07,080 --> 00:02:10,160 Speaker 1: And I think this number took everybody by surprise, but 39 00:02:10,240 --> 00:02:13,120 Speaker 1: the data has been really sloppy month a month. Carol 40 00:02:13,160 --> 00:02:16,160 Speaker 1: Schleife at BEMO Family Office says next week's FED meeting 41 00:02:16,200 --> 00:02:19,640 Speaker 1: will be crucial for markets. Well, Nathan, the selloff spread 42 00:02:19,639 --> 00:02:21,880 Speaker 1: to Asia over and night, but the price action was 43 00:02:22,040 --> 00:02:24,760 Speaker 1: more muted than what we saw in the US. Japan's 44 00:02:24,800 --> 00:02:27,760 Speaker 1: Nika dropped two point eight percent, while Hongo Kong's Hang 45 00:02:27,960 --> 00:02:30,280 Speaker 1: Sang fell two and a half percent. We get the 46 00:02:30,320 --> 00:02:33,919 Speaker 1: recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, 47 00:02:34,120 --> 00:02:36,520 Speaker 1: Good morning Karen. The yen rallied further away from the 48 00:02:36,560 --> 00:02:39,040 Speaker 1: closely watched a hundred and forty five per dollar level 49 00:02:39,080 --> 00:02:41,320 Speaker 1: after the NICK reported the Bank of Japan conducted a 50 00:02:41,400 --> 00:02:43,959 Speaker 1: so called rate check in the currency market, a move 51 00:02:44,040 --> 00:02:47,960 Speaker 1: considered a precursor for intervention. Officials in South Korea also 52 00:02:48,040 --> 00:02:50,880 Speaker 1: ramped up verbal intervention, while China Central Bank sent the 53 00:02:50,919 --> 00:02:53,720 Speaker 1: daily reference rate on the one at the strongest bias 54 00:02:53,800 --> 00:02:57,160 Speaker 1: on record. Asian stocks had their biggest drop since June 55 00:02:57,320 --> 00:03:00,880 Speaker 1: entre day, with Australian Chinese tech stocks and Phonetias, the 56 00:03:00,960 --> 00:03:04,959 Speaker 1: laggs in Sydney Juliette Sally Blimber Daybreak juliet Thanks his 57 00:03:05,040 --> 00:03:07,680 Speaker 1: inflation and higher rates continue to weigh on markets, the 58 00:03:07,720 --> 00:03:10,240 Speaker 1: Fed still has a long way to go. That's according 59 00:03:10,280 --> 00:03:13,639 Speaker 1: to legendary investor Mark Mobius, who says the feds benchmark 60 00:03:13,720 --> 00:03:18,040 Speaker 1: interest rate could hit nine percent. Their game plan is 61 00:03:18,120 --> 00:03:22,080 Speaker 1: to make sure that the interest rate is higher than inflation. 62 00:03:22,200 --> 00:03:25,720 Speaker 1: That's the way they believe the way to kill inflation. 63 00:03:26,200 --> 00:03:29,920 Speaker 1: So you have eight percent CPI, that means you have 64 00:03:30,080 --> 00:03:34,960 Speaker 1: to have nine percent interest rates. If that forecaster Mark 65 00:03:35,000 --> 00:03:38,040 Speaker 1: Mobius is right, rates would climb significantly higher than the 66 00:03:38,080 --> 00:03:40,920 Speaker 1: current two and a half percent target rate. Well, Nathan 67 00:03:40,960 --> 00:03:43,240 Speaker 1: the broad based Sell Office putting more pressure on the 68 00:03:43,280 --> 00:03:45,880 Speaker 1: Fed to keep up aggressive policy. But when it comes 69 00:03:45,880 --> 00:03:49,280 Speaker 1: to politics, President Biden says he's not worried about the 70 00:03:49,280 --> 00:03:52,640 Speaker 1: threat of inflation. The stock market doesn't necessarily reflect the 71 00:03:52,680 --> 00:03:55,440 Speaker 1: state of the economy, as you well know, and the 72 00:03:55,640 --> 00:04:00,680 Speaker 1: economy is still strong. Unemployments, low jobs are up, manufacturing 73 00:04:00,760 --> 00:04:03,280 Speaker 1: is could so I think it's uh. I think we're 74 00:04:03,280 --> 00:04:05,960 Speaker 1: gonna be fine. Worried about the inflation number those No, 75 00:04:06,040 --> 00:04:09,040 Speaker 1: I'm not the President spoke after hosting a celebration at 76 00:04:09,040 --> 00:04:12,640 Speaker 1: the White House for the Inflation Reduction Act. After those remarks, 77 00:04:12,720 --> 00:04:16,560 Speaker 1: Bloomberg political contributor Rick Davis said Democrats are starting to 78 00:04:16,560 --> 00:04:19,200 Speaker 1: look out of touch on the economy. It says they 79 00:04:19,320 --> 00:04:22,119 Speaker 1: cannot get out of their own way. This is a 80 00:04:22,120 --> 00:04:25,080 Speaker 1: ad ready to be made. Every Republican is going to 81 00:04:25,160 --> 00:04:27,600 Speaker 1: have this SNAr quiver and frankly, they give back Republicans 82 00:04:28,120 --> 00:04:30,640 Speaker 1: a message that was starting to dwindle, which is, oh 83 00:04:30,680 --> 00:04:33,360 Speaker 1: my god, we we gotta quit talking about inflation. Well 84 00:04:33,400 --> 00:04:36,680 Speaker 1: not now. Rick Davis spoke with our Washington correspondent Joe 85 00:04:36,720 --> 00:04:39,800 Speaker 1: Matthew on Bloomberg Sound on Catch the program weekdays at 86 00:04:39,800 --> 00:04:42,960 Speaker 1: five pm Eastern on Bloomberg Radio. In the UK, care 87 00:04:43,040 --> 00:04:45,919 Speaker 1: and there's some slightly positive news on inflation. Prices have 88 00:04:45,960 --> 00:04:48,159 Speaker 1: gone down a bit, easing off the highest rate in 89 00:04:48,200 --> 00:04:51,279 Speaker 1: four decades. Today's consumer price index rose at an annual 90 00:04:51,360 --> 00:04:53,920 Speaker 1: rate of nine point nine. That's a drop from ten 91 00:04:54,000 --> 00:04:57,039 Speaker 1: point one in July. The Bank of England meets next week. 92 00:04:57,040 --> 00:04:59,719 Speaker 1: It's expected to raise interest rates either fifty or seventy 93 00:04:59,720 --> 00:05:02,840 Speaker 1: five basis points. Well, Nathan the bigger story in England 94 00:05:02,920 --> 00:05:05,839 Speaker 1: right now centers on Queen Elizabeth the Second. Her confin 95 00:05:05,960 --> 00:05:08,680 Speaker 1: is now at Buckingham Palace as people queue up to 96 00:05:08,720 --> 00:05:11,120 Speaker 1: pay their respect to the Queen, and we go live 97 00:05:11,160 --> 00:05:13,240 Speaker 1: to London and get the latest from Bloomberg's You and 98 00:05:13,400 --> 00:05:16,479 Speaker 1: Parts You and Good Morning, Good Morning, Karen and Nathan. 99 00:05:16,560 --> 00:05:19,040 Speaker 1: Queen Elizabeth is said to leave bucking In Palace today 100 00:05:19,160 --> 00:05:22,760 Speaker 1: for the very last time, departing at two twenty two pm. 101 00:05:22,760 --> 00:05:25,640 Speaker 1: He Majesy's coffee will be transported by horse drawn gun 102 00:05:25,680 --> 00:05:29,719 Speaker 1: carriage through St James's Park and onto Westminster. Walking behind 103 00:05:29,760 --> 00:05:32,080 Speaker 1: his mother's coffin will be the new King, King Charles 104 00:05:32,120 --> 00:05:35,200 Speaker 1: the Third, followed by the senior members of the royal family. 105 00:05:35,640 --> 00:05:38,400 Speaker 1: The Queen's coffin will line states in Westminster Hall, the 106 00:05:38,440 --> 00:05:41,320 Speaker 1: ancient heart of the British Parliament, for four days until 107 00:05:41,360 --> 00:05:44,479 Speaker 1: her funeral on Monday. As many as a million people 108 00:05:44,520 --> 00:05:46,760 Speaker 1: are expected to join the line to walk past her 109 00:05:46,800 --> 00:05:49,320 Speaker 1: caskets in London. I'm You and Part Spin by Daybreak, 110 00:05:49,400 --> 00:05:51,520 Speaker 1: all Right, You and thank You. Geo politics is also 111 00:05:51,560 --> 00:05:54,280 Speaker 1: in focus this morning. President Shi jin Ping is making 112 00:05:54,320 --> 00:05:57,080 Speaker 1: his first trip outside China in more than two years. 113 00:05:57,360 --> 00:05:59,760 Speaker 1: Gives him a chance to meet Vladimir Putin in person 114 00:05:59,800 --> 00:06:02,599 Speaker 1: for the first time since Russia began its invasion of Ukraine. 115 00:06:02,880 --> 00:06:06,240 Speaker 1: We get more from Bloomberg Stephen Angle in Hong Kong. Obviously, 116 00:06:06,320 --> 00:06:09,719 Speaker 1: for Putin he needs China's support. Perhaps the war, according 117 00:06:09,760 --> 00:06:13,839 Speaker 1: to many calculations, is not going as planned. And for 118 00:06:14,040 --> 00:06:17,280 Speaker 1: you know, Shed and Ping, he is again steadfastly sticking 119 00:06:17,279 --> 00:06:22,560 Speaker 1: to this plan of decentralizing Western institutions and creating a 120 00:06:22,680 --> 00:06:26,240 Speaker 1: narrative from a Chinese perspective. Bloomberg Stephen Angle reports she 121 00:06:26,320 --> 00:06:29,080 Speaker 1: and Putin meet tomorrow in Uzbekistan on the sidelines of 122 00:06:29,080 --> 00:06:31,800 Speaker 1: a security forum. First President, she makes a stop in 123 00:06:31,880 --> 00:06:34,719 Speaker 1: Kazakhstan today and back here in the US, Nathan, a 124 00:06:34,720 --> 00:06:37,480 Speaker 1: big labor fight is making head lines. A strike set 125 00:06:37,480 --> 00:06:41,279 Speaker 1: for tomorrow could prevent American railroads from transporting firm products 126 00:06:41,279 --> 00:06:43,840 Speaker 1: and other key goods, and could cost the US economy 127 00:06:43,880 --> 00:06:47,480 Speaker 1: two billion dollars a day. President Biden is personally trying 128 00:06:47,480 --> 00:06:50,160 Speaker 1: to break the long jam between railroads and labor unions. 129 00:06:50,240 --> 00:06:53,360 Speaker 1: Labor Secretary Murdie Walsh, We'll meet with railroad and union 130 00:06:53,360 --> 00:06:56,560 Speaker 1: representatives today. Futures moving higher care and we have SMP 131 00:06:56,680 --> 00:07:00,000 Speaker 1: futures up twenty five points right now after yesterday's route down. 132 00:07:00,080 --> 00:07:02,800 Speaker 1: Futures up a hundred sixty one. NASTAC futures on the 133 00:07:02,880 --> 00:07:05,800 Speaker 1: rise by eighty three points. The tenure treasury is down 134 00:07:06,040 --> 00:07:09,680 Speaker 1: seven thirty seconds. The three point three NIMEX screwed is 135 00:07:09,760 --> 00:07:11,560 Speaker 1: up four tenths per cent or thirty one cents at 136 00:07:11,600 --> 00:07:14,480 Speaker 1: eighty seven sixty two a barrel. The euro just below 137 00:07:14,520 --> 00:07:17,800 Speaker 1: parody against the dollar. Local headlines and a check of sports. 138 00:07:17,880 --> 00:07:24,120 Speaker 1: Just ahead. This is Bloomberg at five oh seven on 139 00:07:24,120 --> 00:07:26,800 Speaker 1: Wall Street. Were sixty five degrees in Central Park. Got 140 00:07:26,800 --> 00:07:30,240 Speaker 1: a water main break Scott southbound Root Tuo two closed 141 00:07:30,240 --> 00:07:33,239 Speaker 1: by Henry Street, Morristown. More coming up in traffic. First 142 00:07:33,280 --> 00:07:35,040 Speaker 1: Michael Barr with what else is going on in New 143 00:07:35,120 --> 00:07:38,000 Speaker 1: York and around the world. Good morning, Michael, Good morning Nathan. 144 00:07:38,120 --> 00:07:41,240 Speaker 1: Former New York Governor Andrew Cuomo filed and ethics complain 145 00:07:41,280 --> 00:07:44,560 Speaker 1: against State Attorney General Letitia James about the way she 146 00:07:44,720 --> 00:07:48,560 Speaker 1: handled a sexual harassment investigation that led to his resignation 147 00:07:48,680 --> 00:07:52,640 Speaker 1: last year. Cuomo questioned the accuracy and credibility of the 148 00:07:52,680 --> 00:07:56,600 Speaker 1: investigations findings, a legend. James, a fellow Democrat used the 149 00:07:56,640 --> 00:08:00,160 Speaker 1: probe to tarnish him and further her own political interests. 150 00:08:00,360 --> 00:08:03,600 Speaker 1: Cuomo says James, who briefly ran for governor, had her 151 00:08:03,640 --> 00:08:08,800 Speaker 1: own politically motivated and self interest driven agenda. Cuomo resigned 152 00:08:08,800 --> 00:08:12,240 Speaker 1: in August of last year. Rhode Island Governor Dan McKee. 153 00:08:12,280 --> 00:08:16,280 Speaker 1: On Tuesday's Democratic gubernatorial primary, he thanks supporters, so I 154 00:08:16,360 --> 00:08:20,320 Speaker 1: have to stand here before you tonight, not just as 155 00:08:20,320 --> 00:08:25,320 Speaker 1: your governor, but as the Democratic nomination nominee for governor 156 00:08:25,320 --> 00:08:29,240 Speaker 1: of Rhode Island. Governor McKee at the most with thirty 157 00:08:29,280 --> 00:08:33,040 Speaker 1: three percent. In the fall, McKee will face Republican Ashley Kellis, 158 00:08:33,040 --> 00:08:36,920 Speaker 1: who got eighty four. In New Hampshire, the Republican contest 159 00:08:36,960 --> 00:08:40,440 Speaker 1: for Senate remains a tight race between conservative Donald Baldock 160 00:08:40,800 --> 00:08:44,960 Speaker 1: and the more moderate Chuck Morrise. Republicans see Democratic incumbent 161 00:08:45,000 --> 00:08:49,160 Speaker 1: Senator Maggie Hassan as beatable in the general election. Primaries 162 00:08:49,200 --> 00:08:52,000 Speaker 1: were also held in Delaware. The Mayor of Boston is 163 00:08:52,120 --> 00:08:55,280 Speaker 1: thanking law enforcement for a speedy response last night after 164 00:08:55,320 --> 00:08:59,720 Speaker 1: a package exploded on the campus of Northeastern University injuring 165 00:08:59,720 --> 00:09:02,520 Speaker 1: at AFT member. The forty five year old man suffered 166 00:09:02,559 --> 00:09:04,680 Speaker 1: minor injuries to his hand and was taken to a 167 00:09:04,679 --> 00:09:08,520 Speaker 1: local hospital. Mayor Michelle Woo, I just want to thank 168 00:09:08,640 --> 00:09:13,240 Speaker 1: all of our first responders for very, very swift, coordinated 169 00:09:13,280 --> 00:09:17,720 Speaker 1: and effective response. Within minutes, our police department and E 170 00:09:17,880 --> 00:09:21,319 Speaker 1: M S and Fire department were here. Mayor wu says 171 00:09:21,400 --> 00:09:24,240 Speaker 1: the search revealed a second similar package that was ultimately 172 00:09:24,280 --> 00:09:27,640 Speaker 1: rendered safe by the bomb squad. Ukrainian troops continue to 173 00:09:27,679 --> 00:09:31,920 Speaker 1: pressure retreating Russian forces, pressing deeper into occupied territory and 174 00:09:32,000 --> 00:09:37,000 Speaker 1: sending more Kremlin troops fleeing. Pentagon spokesman Brigadier General Pat 175 00:09:37,000 --> 00:09:41,560 Speaker 1: Writer on Russia, Clearly they've demonstrated their intent to keep 176 00:09:41,600 --> 00:09:47,160 Speaker 1: fighting uh In in Ukraine into prolong their illegal occupation. 177 00:09:47,679 --> 00:09:50,720 Speaker 1: General Writer. Global News twenty four hours a day on 178 00:09:50,800 --> 00:09:54,680 Speaker 1: air and on Bloomberg Quicktake, powered by more than journalists 179 00:09:54,679 --> 00:09:59,439 Speaker 1: and analysts more than twenty countries. Michael Barren, this is Bloomberg. Nathan. Hi, Michael, 180 00:09:59,440 --> 00:10:06,040 Speaker 1: thank you. Almost five ten on Wall Street, time for 181 00:10:06,040 --> 00:10:08,680 Speaker 1: the Bloomberg Sports Update. Good morning, johns Teshun, all right, 182 00:10:08,679 --> 00:10:11,040 Speaker 1: good morning, Nathan. Aaron Boone was asked last night to 183 00:10:11,080 --> 00:10:14,560 Speaker 1: describe Aaron Judge's performance in this remarkable season. He said, 184 00:10:14,600 --> 00:10:17,360 Speaker 1: I have run out of adjectives in Boston, Judge and 185 00:10:17,400 --> 00:10:18,839 Speaker 1: a solo home run in the sixth that need to 186 00:10:18,880 --> 00:10:20,400 Speaker 1: tie the game at three, and then he came up 187 00:10:20,600 --> 00:10:23,599 Speaker 1: too and inans later on one swung on. There it 188 00:10:23,640 --> 00:10:26,800 Speaker 1: goes Jeep love Field. It is hot. Let us far 189 00:10:27,200 --> 00:10:31,280 Speaker 1: head us God out of the building, over the high 190 00:10:31,360 --> 00:10:35,880 Speaker 1: green monster, over the monster seats out on Sir Landsbane. 191 00:10:36,120 --> 00:10:40,640 Speaker 1: He is phenomenal. The second home run of the night 192 00:10:40,720 --> 00:10:44,760 Speaker 1: for Judge, his fifty seventh of the year, and we're 193 00:10:44,760 --> 00:10:47,800 Speaker 1: all tied at four. Game is still four four tenth 194 00:10:47,880 --> 00:10:50,280 Speaker 1: inning when labor Tora has delivered a three run double. 195 00:10:50,320 --> 00:10:52,760 Speaker 1: The Red Sox got two back bottomed the tenth, but 196 00:10:52,880 --> 00:10:55,840 Speaker 1: one deep Peralta struck out Rafe Devers. The Yanks held 197 00:10:55,880 --> 00:10:58,920 Speaker 1: on to win seven six. It's the tenth multi home 198 00:10:58,960 --> 00:11:01,319 Speaker 1: run game of the season for Judge. The record is 199 00:11:01,360 --> 00:11:05,880 Speaker 1: eleven Hank Greenberg ninety eight, and with fifty seven homers, 200 00:11:05,880 --> 00:11:09,040 Speaker 1: he is incheon closer to Roger Marris's sixty one at 201 00:11:09,120 --> 00:11:11,480 Speaker 1: City Field. Second straight Mets loss to the Low Lea 202 00:11:11,600 --> 00:11:14,199 Speaker 1: Cubs four to one, or air loss for Jacob de Graham, 203 00:11:14,200 --> 00:11:16,120 Speaker 1: and the Mets didn't help by getting only four hits 204 00:11:16,120 --> 00:11:19,400 Speaker 1: in Atlanta, won five one at San Francisco. The Braves 205 00:11:19,440 --> 00:11:21,920 Speaker 1: are only a half game behind the Mets. Mike Draft 206 00:11:21,920 --> 00:11:24,520 Speaker 1: did not homer for the Angels. He was trying to 207 00:11:24,520 --> 00:11:26,520 Speaker 1: tie the record with a home run in eighth straight games. 208 00:11:26,520 --> 00:11:29,520 Speaker 1: The twins against the Royals were two outs, some of 209 00:11:29,600 --> 00:11:31,800 Speaker 1: combined no hit or didn't get it. W NBA Playoffs, 210 00:11:31,880 --> 00:11:35,760 Speaker 1: Las Vegas eighty five, Connecticut seventy one, aces up to nothing. 211 00:11:35,800 --> 00:11:37,800 Speaker 1: They can win the championship tomorrow with them, and he 212 00:11:37,920 --> 00:11:41,560 Speaker 1: gets sung. John Stashower, Bloomberg Sports. Nathan all Right, John, 213 00:11:41,600 --> 00:11:44,480 Speaker 1: thank you. SMP futures up twenty one points right now, 214 00:11:44,559 --> 00:11:47,680 Speaker 1: death futures up a hundred thirty six. Danstack futures up 215 00:11:47,840 --> 00:11:51,400 Speaker 1: sixty eight points. The tenure treasuries down seven thirty seconds. 216 00:11:51,440 --> 00:11:54,880 Speaker 1: Deal three point four three percent. Markets looking to make 217 00:11:54,920 --> 00:11:58,000 Speaker 1: a little bit of recovery after yesterday's route. We'll check 218 00:11:58,000 --> 00:12:02,240 Speaker 1: in next with st Dwack, the chief investment officer at 219 00:12:02,240 --> 00:12:08,439 Speaker 1: Flow Bank. This is Bloomberg Bloomberg Day Break, brought to 220 00:12:08,440 --> 00:12:11,680 Speaker 1: you by Pepack Private Wealth Management. Pepack Private Wealth Management 221 00:12:11,679 --> 00:12:14,600 Speaker 1: knows that a portfolio is more than a collection of assets. 222 00:12:14,640 --> 00:12:17,360 Speaker 1: It's a path to your future, visit pepack private dot 223 00:12:17,360 --> 00:12:23,560 Speaker 1: com and begin your financial legacy Today, Markets headlines and 224 00:12:23,679 --> 00:12:26,960 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 225 00:12:27,080 --> 00:12:30,640 Speaker 1: the Bloomberg Business at and at Bloomberg Quicktake, This is 226 00:12:30,640 --> 00:12:39,560 Speaker 1: a Bloomberg Business Flash when I'm Karen Moscow. US knock 227 00:12:39,640 --> 00:12:42,560 Speaker 1: Index future is rallying this morning after shares had their 228 00:12:42,559 --> 00:12:45,000 Speaker 1: biggest drop in more than two years yesterday, with the 229 00:12:45,160 --> 00:12:47,520 Speaker 1: S and P five hundred following more than four percent, 230 00:12:47,640 --> 00:12:50,600 Speaker 1: of the nastacks sliding more than five percent and gave 231 00:12:50,679 --> 00:12:53,160 Speaker 1: to the dollar retreating after jumping the motion in three 232 00:12:53,200 --> 00:12:56,880 Speaker 1: months and attendue. Your treasury yelled is taking higher, hovering 233 00:12:56,880 --> 00:12:59,600 Speaker 1: near a decade peak. We checked the markets every fifteen 234 00:12:59,600 --> 00:13:02,160 Speaker 1: minutes about the trading day on Bloomberg. Right now, SNP 235 00:13:02,320 --> 00:13:04,880 Speaker 1: futures are up twenty one points down futures of A 236 00:13:04,920 --> 00:13:07,720 Speaker 1: hundred twenty eight and nasdack future is up sixty six. 237 00:13:07,840 --> 00:13:10,679 Speaker 1: The decks in Germany's down three tenths of upper set ten. 238 00:13:10,760 --> 00:13:13,280 Speaker 1: Your treasury down seven thirty seconds. You have three point 239 00:13:13,280 --> 00:13:15,480 Speaker 1: four three percent they yield on the two year three 240 00:13:15,520 --> 00:13:18,719 Speaker 1: point seven seven percent. NIMEX Scrude oil is up a 241 00:13:18,800 --> 00:13:21,240 Speaker 1: quarter percent or twenty three cents at eighty seven dollars 242 00:13:21,280 --> 00:13:24,360 Speaker 1: fifty four cents a barrel. Comicsch down two tenths percent 243 00:13:24,440 --> 00:13:27,560 Speaker 1: or three dollars sixty cents is seventeen thirteen ninety. Announce 244 00:13:28,000 --> 00:13:31,600 Speaker 1: the euro point one against the dollar British pound one 245 00:13:31,600 --> 00:13:34,440 Speaker 1: point one five four zero the end one forty three 246 00:13:34,520 --> 00:13:36,960 Speaker 1: point three seven And look at a bitcoin, it's up 247 00:13:37,000 --> 00:13:40,240 Speaker 1: half percent at twenty thousand, three hundred fifty dollars. That's 248 00:13:40,240 --> 00:13:42,920 Speaker 1: a Bloomberg business flash. Now here's Michael Barr with more 249 00:13:42,960 --> 00:13:45,280 Speaker 1: on what's going on around the world. Michael, good morning, 250 00:13:45,360 --> 00:13:48,600 Speaker 1: Good morning, Karen. Queen Elizabeth the Seconds Coffin has arrived 251 00:13:48,640 --> 00:13:52,360 Speaker 1: at Buckingham Palace ahead of today's procession through London to 252 00:13:52,440 --> 00:13:55,640 Speaker 1: Westminster Hall. She will lie in state for four days 253 00:13:55,720 --> 00:13:59,600 Speaker 1: until her funeral. NBA team owner Robert Sarver has ben 254 00:13:59,760 --> 00:14:03,000 Speaker 1: from representing the league in any capacity for one year. 255 00:14:03,440 --> 00:14:07,600 Speaker 1: There were calls for tougher punishment for alleged racism and massaseni. 256 00:14:08,080 --> 00:14:10,680 Speaker 1: In baseball, the Yankees beat the Red Sox seven six 257 00:14:10,720 --> 00:14:13,600 Speaker 1: and ten innings, New York's Serin Jodge at two homer's 258 00:14:13,640 --> 00:14:16,600 Speaker 1: to reach fifty seven this season. The Mets lost, the 259 00:14:16,640 --> 00:14:21,200 Speaker 1: Orioles beat the Nationals for three, the A's and Giants lost. 260 00:14:21,440 --> 00:14:23,960 Speaker 1: Global News twenty four hours a day on air and 261 00:14:24,120 --> 00:14:27,480 Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred 262 00:14:27,520 --> 00:14:29,960 Speaker 1: journalist and analysts and more than a hundred twenty countries. 263 00:14:30,320 --> 00:14:33,400 Speaker 1: Michael Barren, this is Bloomberg, Nathan. Thanks Michael. It's five 264 00:14:33,480 --> 00:14:36,840 Speaker 1: nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. 265 00:14:36,840 --> 00:14:38,920 Speaker 1: This is Bloomberg day Break. Let's try to make sense 266 00:14:38,920 --> 00:14:42,760 Speaker 1: of this market after yesterday's inflation read Sti Dweck joins 267 00:14:42,840 --> 00:14:47,280 Speaker 1: US Live, chief investment officer at Flow Bank ste Good morning. 268 00:14:47,280 --> 00:14:49,720 Speaker 1: We are seeing futures in a bit of recovery mode 269 00:14:49,800 --> 00:14:55,720 Speaker 1: after yesterday's route. Is this a debut by not today? No? Uh, 270 00:14:55,800 --> 00:14:58,800 Speaker 1: you know, we we are going. I mean, we had 271 00:14:58,800 --> 00:15:01,840 Speaker 1: a very big movie yesterday, write down almost four across 272 00:15:01,880 --> 00:15:05,160 Speaker 1: most indicase, and we basically erased most of what happened 273 00:15:05,240 --> 00:15:08,600 Speaker 1: last week. I think as we digest this, we'll see 274 00:15:08,640 --> 00:15:11,280 Speaker 1: that maybe it was a little bit of an overreaction, 275 00:15:11,800 --> 00:15:14,840 Speaker 1: but the fact that the August month on month print 276 00:15:15,000 --> 00:15:18,360 Speaker 1: was positive and not negative was clearly a problem. And 277 00:15:18,400 --> 00:15:21,760 Speaker 1: markets are now repricing a lot more rate hikes into 278 00:15:21,800 --> 00:15:23,560 Speaker 1: the end of the year, and I think that's going 279 00:15:23,560 --> 00:15:26,000 Speaker 1: to have an impact on markets for a couple more days. 280 00:15:26,040 --> 00:15:28,400 Speaker 1: Interesting that you term it a little bit of an overreaction. 281 00:15:28,440 --> 00:15:30,480 Speaker 1: I mean, it was a four point drop for the 282 00:15:31,640 --> 00:15:34,160 Speaker 1: most more than two years. Can you sort of explain 283 00:15:34,160 --> 00:15:35,480 Speaker 1: a little bit more why you think it might have 284 00:15:35,520 --> 00:15:38,840 Speaker 1: been just a little bit of an overreaction rather than 285 00:15:39,160 --> 00:15:42,880 Speaker 1: it was a significant drop yesterday? SD It was. It 286 00:15:43,000 --> 00:15:45,800 Speaker 1: was a very big drop yesterday, for sure, But if 287 00:15:45,840 --> 00:15:48,320 Speaker 1: you think of it in the context of the previous 288 00:15:48,360 --> 00:15:50,800 Speaker 1: few sessions where we've had this big run up in 289 00:15:50,880 --> 00:15:56,400 Speaker 1: markets basically expecting the softer inflation print, reversing a lot 290 00:15:56,400 --> 00:16:00,560 Speaker 1: of that in one go was also maybe not as surprising. 291 00:16:00,680 --> 00:16:02,720 Speaker 1: So I think that's why I'd say a bit of 292 00:16:02,760 --> 00:16:05,440 Speaker 1: an overreaction. Some of the reaction is also in a 293 00:16:05,480 --> 00:16:10,520 Speaker 1: way justified because the inflation prints are not coming down 294 00:16:10,560 --> 00:16:13,520 Speaker 1: as fast as we'd like h some of the stickier 295 00:16:13,560 --> 00:16:17,640 Speaker 1: components are proving sticky, and that means that the FED 296 00:16:17,760 --> 00:16:20,440 Speaker 1: is far from being over So we're also sort of 297 00:16:20,560 --> 00:16:23,720 Speaker 1: deep pricing a little bit of that hope of a 298 00:16:23,760 --> 00:16:26,360 Speaker 1: FED pivot, even though Powell had already done a very 299 00:16:26,400 --> 00:16:30,040 Speaker 1: good job at removing that expectation at Jackson Hole. Oh, 300 00:16:30,160 --> 00:16:33,240 Speaker 1: we're certainly seeing the market now removing that expectation of 301 00:16:33,240 --> 00:16:37,360 Speaker 1: a pivot, with swaps markets now fully pricing in seventy 302 00:16:37,360 --> 00:16:40,160 Speaker 1: five basis points. Let's get into that debate a little bit. 303 00:16:40,200 --> 00:16:42,920 Speaker 1: What do you think the Fed's gonna do next week? 304 00:16:43,920 --> 00:16:46,600 Speaker 1: I think they're gonna do seventy five. I think we 305 00:16:46,880 --> 00:16:49,600 Speaker 1: the market is between seventy five and a hundred, so 306 00:16:49,760 --> 00:16:52,760 Speaker 1: clearly up from where we were just a couple of 307 00:16:52,840 --> 00:16:57,080 Speaker 1: days or weeks ago. Um, I think a hundred could 308 00:16:57,160 --> 00:17:00,840 Speaker 1: scare everyone. I think they know they've done a couple 309 00:17:00,840 --> 00:17:03,360 Speaker 1: of seventy five, they know it takes three to six 310 00:17:03,400 --> 00:17:07,600 Speaker 1: months for this to filter through into the economy. They're 311 00:17:07,600 --> 00:17:10,439 Speaker 1: gonna do seventy five. They're gonna signal that they're going 312 00:17:10,480 --> 00:17:13,080 Speaker 1: to keep going. So we already see that the two 313 00:17:14,000 --> 00:17:18,920 Speaker 1: November December are getting repriced higher as well. UM, I'm 314 00:17:18,920 --> 00:17:22,240 Speaker 1: not sure three four or five months in on one 315 00:17:22,280 --> 00:17:25,760 Speaker 1: inflation print, when you have a lot of other data 316 00:17:25,880 --> 00:17:29,520 Speaker 1: pointing towards this inflation, that a hundred is the right signal. 317 00:17:30,520 --> 00:17:33,239 Speaker 1: What does it mean for stock valuations if we do 318 00:17:33,320 --> 00:17:36,000 Speaker 1: get that seventy five basis point move, or if the 319 00:17:36,280 --> 00:17:40,560 Speaker 1: FED potentially surprises and comes in even stronger. I don't 320 00:17:40,560 --> 00:17:43,359 Speaker 1: think the seventy five surprises markets. It's priced in at 321 00:17:43,400 --> 00:17:46,119 Speaker 1: this point, and you know, even before the print, we 322 00:17:46,119 --> 00:17:49,760 Speaker 1: were between fifty and seventy five, so we knew more 323 00:17:49,880 --> 00:17:53,639 Speaker 1: hikes were coming. I think it's more about the terminal rates, 324 00:17:53,720 --> 00:17:56,640 Speaker 1: which was, you know, may now be shifting to four 325 00:17:56,760 --> 00:17:58,840 Speaker 1: or four and a half as an expectation for the 326 00:17:58,960 --> 00:18:02,600 Speaker 1: end of the year and then probably either more hikes 327 00:18:02,640 --> 00:18:04,400 Speaker 1: at the beginning of next year, or is she've been 328 00:18:04,440 --> 00:18:08,560 Speaker 1: shifting further back any rate cuts um that markets still 329 00:18:08,600 --> 00:18:11,840 Speaker 1: had priced in for the end of So from a 330 00:18:11,920 --> 00:18:14,960 Speaker 1: valuation perspective, in the short term, not a huge move. 331 00:18:15,119 --> 00:18:18,560 Speaker 1: Even if we get seventy five hundred scares markets a 332 00:18:18,560 --> 00:18:21,080 Speaker 1: little more, so we get another drop there. But if 333 00:18:21,080 --> 00:18:23,160 Speaker 1: we get the seventy five and we get an indication 334 00:18:23,240 --> 00:18:25,199 Speaker 1: that more is coming, I think a lot of that 335 00:18:25,280 --> 00:18:28,080 Speaker 1: is priced in or will be priced in by next week. 336 00:18:28,359 --> 00:18:31,000 Speaker 1: So in our last minute here asking what could the 337 00:18:31,240 --> 00:18:34,480 Speaker 1: stronger FED potentially mean for stock valuations? What could it 338 00:18:34,520 --> 00:18:37,159 Speaker 1: mean for earnings expectations going forward for the rest of 339 00:18:37,200 --> 00:18:41,120 Speaker 1: the year. There was a view that earnings expectations had 340 00:18:41,160 --> 00:18:42,639 Speaker 1: to dip for the end of the year, and for 341 00:18:43,520 --> 00:18:47,280 Speaker 1: three they've proved relatively resilient. I think some of these 342 00:18:47,320 --> 00:18:50,119 Speaker 1: prints are showing you that the earnings are going to 343 00:18:50,200 --> 00:18:54,320 Speaker 1: stay relatively resilient. So that's not where I'd be more worried. 344 00:18:54,359 --> 00:18:57,240 Speaker 1: I think you had a bond market that's saying inflation 345 00:18:57,320 --> 00:19:02,200 Speaker 1: expectations are coming down, market actations are coming down. Hopefully 346 00:19:02,240 --> 00:19:05,440 Speaker 1: consumer expectations will see on Friday what what the Michigan 347 00:19:05,480 --> 00:19:08,320 Speaker 1: survey says. So we need to see if those get 348 00:19:08,400 --> 00:19:11,600 Speaker 1: completely repriced and if that has an impact on the 349 00:19:11,640 --> 00:19:14,000 Speaker 1: equity market, because the equity market has been the more 350 00:19:14,080 --> 00:19:18,120 Speaker 1: negative in terms of those of pricing in those tightening 351 00:19:18,119 --> 00:19:21,879 Speaker 1: expectations so far. Thanks for this st as always great 352 00:19:21,920 --> 00:19:25,080 Speaker 1: having you with us. S D. Dwag, chief investment Officer 353 00:19:25,600 --> 00:19:28,520 Speaker 1: at Flow Bank. After the sell off yesterday, we are 354 00:19:28,560 --> 00:19:31,240 Speaker 1: seeing a bit of recovery in the futures contracts. We 355 00:19:31,280 --> 00:19:34,480 Speaker 1: have SMP futures right now higher by twenty four points. 356 00:19:34,520 --> 00:19:38,040 Speaker 1: Staff futures are up one hundred sixty NASTAC futures up 357 00:19:38,119 --> 00:19:41,679 Speaker 1: eighty two points. The tenure. Treasury is down eight thirty seconds, 358 00:19:41,760 --> 00:19:44,320 Speaker 1: yield three point four three percent, yield on the two 359 00:19:44,400 --> 00:19:48,280 Speaker 1: year three point seven seven percent. Crews getting a bit 360 00:19:48,280 --> 00:19:49,880 Speaker 1: of a lift this morning as well. We have nime 361 00:19:49,960 --> 00:19:52,080 Speaker 1: X screwed up four tenths per cent or thirty five 362 00:19:52,119 --> 00:19:56,040 Speaker 1: cents eighty seven dollars seventy cents a barrel. The euro 363 00:19:56,200 --> 00:20:01,240 Speaker 1: right now point nine eight against the dollar. You're listening 364 00:20:01,320 --> 00:20:09,080 Speaker 1: to Bloomberg Taper and at five on Wall Street. Bloomberg 365 00:20:09,160 --> 00:20:11,920 Speaker 1: Daybreak is brought to you by pe Pack Private Wealth Management. 366 00:20:11,920 --> 00:20:14,640 Speaker 1: A portfolio is more than a collection of assets, it's 367 00:20:14,640 --> 00:20:22,280 Speaker 1: a path to your future. Visit pe Pack Private dot Com. 368 00:20:22,280 --> 00:20:26,840 Speaker 1: Broadcasting live from the Bloomberg Interactive Brokery Studio in New York. 369 00:20:26,920 --> 00:20:30,880 Speaker 1: Bloomberg Eloving Freedom to Washington, d C, Bloomberg N one 370 00:20:31,000 --> 00:20:34,240 Speaker 1: to Boston, Bloomberg one O six one does Ent Francisco, 371 00:20:34,320 --> 00:20:37,760 Speaker 1: Bloomberg Now sixty to the Country, Sirius xm Cho one 372 00:20:37,800 --> 00:20:40,920 Speaker 1: nine Tea and around the globe, the Bloomberg Business and 373 00:20:41,000 --> 00:20:51,000 Speaker 1: Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five 374 00:20:51,040 --> 00:20:53,520 Speaker 1: thirty on Wall Street. Good morning. I'm Nathan Hager, and 375 00:20:53,560 --> 00:20:56,480 Speaker 1: I'm Karen Moscow, We're just about four hours away from 376 00:20:56,480 --> 00:20:58,359 Speaker 1: the open of US trading. Let's get you up to 377 00:20:58,400 --> 00:20:59,960 Speaker 1: date of the news. You need to know what this show. 378 00:21:00,000 --> 00:21:03,080 Speaker 1: Our US futures are higher in the wake of yesterday's 379 00:21:03,080 --> 00:21:05,680 Speaker 1: sell off, which saw the SNP five hundred drop more 380 00:21:05,680 --> 00:21:09,040 Speaker 1: than four percent and an AZDAC plunge over five percent. 381 00:21:09,480 --> 00:21:13,199 Speaker 1: Carol Schleef, Deputy Chief Investment Officer at BIMO Family Office, 382 00:21:13,200 --> 00:21:15,879 Speaker 1: says it may be startling, but we should keep it 383 00:21:15,920 --> 00:21:19,080 Speaker 1: in perspective. But I know that the down days are scary, 384 00:21:19,200 --> 00:21:22,240 Speaker 1: but I watched seven happened. That was twenty three percent 385 00:21:22,320 --> 00:21:24,800 Speaker 1: in a day and the year still closed up. Carol 386 00:21:24,880 --> 00:21:28,359 Speaker 1: Schleif at BIMO Family Office says next week's FED meeting 387 00:21:28,400 --> 00:21:31,919 Speaker 1: will be crucial for market sentiment. Sell off Karen splared 388 00:21:32,000 --> 00:21:35,639 Speaker 1: virtually no corner of equity markets and also cost America's 389 00:21:35,720 --> 00:21:38,959 Speaker 1: richest billionaires dearly. We get more on that from Bloomberg's 390 00:21:38,960 --> 00:21:42,520 Speaker 1: Doug Krisner. Jeff Bezo suffered the biggest hit. Data from 391 00:21:42,520 --> 00:21:45,840 Speaker 1: the Bloomberg Billionaire's Index show his wealth plunged by nine 392 00:21:45,880 --> 00:21:49,320 Speaker 1: point eight billion dollars. Elon Musk's net worth fell by 393 00:21:49,400 --> 00:21:52,840 Speaker 1: eight point four billion, and the fortunes of Mark Zuckerberg, 394 00:21:52,920 --> 00:21:56,480 Speaker 1: Larry Page, Sir Gey Brenn, and Steve Balmer all declined 395 00:21:56,480 --> 00:21:59,720 Speaker 1: by more than four billion dollars. In total, the fortunes 396 00:21:59,760 --> 00:22:03,120 Speaker 1: of a America's richest tumbled by ninety three billion dollars. 397 00:22:03,520 --> 00:22:06,080 Speaker 1: You know, just last month the same group lost seventy 398 00:22:06,080 --> 00:22:08,680 Speaker 1: eight billion dollars in a day. After an eight minute 399 00:22:08,720 --> 00:22:11,359 Speaker 1: speech from fed share J Powell in New York, I'm 400 00:22:11,400 --> 00:22:13,920 Speaker 1: duck prisoner Blueberg daybreak, All right, Doug, thank you. In 401 00:22:13,960 --> 00:22:17,560 Speaker 1: the UK, there's some slightly positive news on inflation. Prices 402 00:22:17,560 --> 00:22:20,560 Speaker 1: have gone down slightly, easing off the highest rate in 403 00:22:20,640 --> 00:22:23,840 Speaker 1: four decades. Today's consumer Price index rose at an annual 404 00:22:23,960 --> 00:22:26,600 Speaker 1: rate of nine point nine percent. That's a drop from 405 00:22:26,640 --> 00:22:29,639 Speaker 1: ten point one in July. Well, the bigger story in England, 406 00:22:29,640 --> 00:22:32,400 Speaker 1: of course, Karen centers on Queen Elizabeth the Second. Her 407 00:22:32,440 --> 00:22:35,080 Speaker 1: coffin is at Buckingham Palace now will soon be taken 408 00:22:35,119 --> 00:22:37,800 Speaker 1: to Westminster Hall where it will line state for four 409 00:22:37,880 --> 00:22:41,359 Speaker 1: days until her funeral Monday. The UK Army is helping 410 00:22:41,359 --> 00:22:44,439 Speaker 1: police and London authorities get ready for the event. London 411 00:22:44,480 --> 00:22:47,359 Speaker 1: Mayor City con says it is a massive job. We 412 00:22:47,400 --> 00:22:51,280 Speaker 1: will have almost three hundred world leaders and that team's 413 00:22:51,359 --> 00:22:53,960 Speaker 1: lo trologies out of the l cities ever seen the 414 00:22:54,000 --> 00:22:55,440 Speaker 1: sort of present is going to say over the next 415 00:22:55,480 --> 00:22:59,600 Speaker 1: few days. If you think about a marathon carnival, previous 416 00:22:59,680 --> 00:23:04,120 Speaker 1: rule wedd ends the impics in one London mayor city 417 00:23:04,200 --> 00:23:07,439 Speaker 1: consas rail companies have announced extra service as thousands of 418 00:23:07,520 --> 00:23:10,320 Speaker 1: mourners head into the city. Well nacome backing around the 419 00:23:10,400 --> 00:23:12,760 Speaker 1: U S. A strike set for tomorrow threatens to hit 420 00:23:12,800 --> 00:23:16,280 Speaker 1: supply chains hard. They could prevent railroads from transporting farm 421 00:23:16,320 --> 00:23:18,520 Speaker 1: products and other key goods and coust the U S 422 00:23:18,600 --> 00:23:22,360 Speaker 1: economy two billion dollars a day. President Biden is personally 423 00:23:22,359 --> 00:23:25,439 Speaker 1: trying to break the long jam between railroads and labor unions. 424 00:23:25,560 --> 00:23:28,200 Speaker 1: Labor Secretary Murdie Walsh will meet with railroad and union 425 00:23:28,240 --> 00:23:31,800 Speaker 1: representatives today. Straight ahead, your latest local headlines and a 426 00:23:31,920 --> 00:23:39,280 Speaker 1: check of sports. This is Bloomberg, Thanks Caring. It's five 427 00:23:39,320 --> 00:23:41,840 Speaker 1: thirty three on Wall Street, sixty four degrees in Central Parks. 428 00:23:41,880 --> 00:23:44,080 Speaker 1: Still dealing with that water main break in Morristown. It's 429 00:23:44,119 --> 00:23:46,560 Speaker 1: got southbound two oh two closed at Henry Street. More 430 00:23:46,600 --> 00:23:48,880 Speaker 1: coming up in traffic first, Michael Barr with what else 431 00:23:48,960 --> 00:23:50,400 Speaker 1: is going on in New York and around the world, 432 00:23:50,480 --> 00:23:53,280 Speaker 1: Michael Nathan, thank you very much. Former New York Governor 433 00:23:53,320 --> 00:23:56,679 Speaker 1: Andrew Cuomo filed and ethics complain against State Attorney General 434 00:23:56,760 --> 00:24:00,000 Speaker 1: Letitia James about the way she handled the sexual harazon 435 00:24:00,119 --> 00:24:03,760 Speaker 1: An investigation that led to his resignation last year. Cuomo 436 00:24:03,880 --> 00:24:08,639 Speaker 1: questioned the accuracy and credibility of the investigations findings, alleging James, 437 00:24:08,640 --> 00:24:11,159 Speaker 1: a fellow Democrat, used the probe to tarnish him and 438 00:24:11,240 --> 00:24:15,800 Speaker 1: further her own political interests. The final primaries for two 439 00:24:15,920 --> 00:24:19,080 Speaker 1: ended with voters in the Republican Racist choosing between moderates 440 00:24:19,320 --> 00:24:23,400 Speaker 1: and far right candidates. In the New Hampshire US House race, 441 00:24:23,680 --> 00:24:28,080 Speaker 1: former Trump White House aide Carolinline Lovett beat out fellow 442 00:24:28,080 --> 00:24:32,600 Speaker 1: Trump administration official Matt Mowers with thirty four point six 443 00:24:32,640 --> 00:24:36,000 Speaker 1: percent of the vote. She will face Democrat Chris Pappas 444 00:24:36,040 --> 00:24:38,880 Speaker 1: in November in the race for governor of New Hampshire. 445 00:24:38,920 --> 00:24:43,840 Speaker 1: Democratic nominee doctor Tom Sherman, who ran uncontested, will challenge 446 00:24:43,880 --> 00:24:46,679 Speaker 1: GOP incumbent Kris and new Knew, who won his primary 447 00:24:46,960 --> 00:24:50,439 Speaker 1: with nearly seventy of the vote. In Rhode Island, Governor 448 00:24:50,520 --> 00:24:54,280 Speaker 1: Dan McKee won the Democratic gubernatorial primary Tuesday. He thanked 449 00:24:54,320 --> 00:24:57,960 Speaker 1: his supporters the world is gonna change tonight for Rhode Island. 450 00:24:58,080 --> 00:25:01,720 Speaker 1: It did for us, and oh we're gonna take full advantage, 451 00:25:01,760 --> 00:25:05,919 Speaker 1: but thank you so much. Governor McKee will face Republican 452 00:25:06,040 --> 00:25:10,199 Speaker 1: Ashley Kellis in November. Ukrainian forces have shown a remarkable 453 00:25:10,240 --> 00:25:13,879 Speaker 1: ability to take advantage of opportunities that present themselves on 454 00:25:13,920 --> 00:25:18,200 Speaker 1: the battlefield. That's according to Pentagon spokesman Brigadier General Pat Rider. 455 00:25:18,640 --> 00:25:22,639 Speaker 1: We've seen a number of Russian forces, especially in the 456 00:25:22,640 --> 00:25:26,200 Speaker 1: northeast in the Kharkiev region, cross over the border back 457 00:25:26,280 --> 00:25:31,320 Speaker 1: into Russia as they retreated from the Ukrainian counter offensive. 458 00:25:31,720 --> 00:25:34,760 Speaker 1: General Writers has based on the abilities demonstrated by the 459 00:25:34,840 --> 00:25:38,000 Speaker 1: Ukrainians in the field. It came as no surprise former 460 00:25:38,040 --> 00:25:41,320 Speaker 1: Independent Consul ken Starr, who led the investigation into Bill 461 00:25:41,359 --> 00:25:44,119 Speaker 1: Clinton's affair where the Monica Lewinski has died in Houston. 462 00:25:44,480 --> 00:25:47,560 Speaker 1: He died after complications from surgery. Ken Star was seventy 463 00:25:47,600 --> 00:25:50,360 Speaker 1: six Global News twenty four hours a day on air 464 00:25:50,480 --> 00:25:53,600 Speaker 1: and on Bloomberg Quicktake, powered by more than twenty seven 465 00:25:53,680 --> 00:25:56,280 Speaker 1: hundred journalists and analysts. More than a hundred twenty countries. 466 00:25:56,600 --> 00:25:59,719 Speaker 1: Michael Barr and this is Bloomberg, Nathan, Michael, thank you. 467 00:26:00,000 --> 00:26:07,840 Speaker 1: On Wall Street. John Stanshower has a Bloombridge sports update. 468 00:26:08,000 --> 00:26:10,240 Speaker 1: Dathan Yankees and Red Sacks first of a mini two 469 00:26:10,320 --> 00:26:12,000 Speaker 1: game series in Boston, where there are a lot of 470 00:26:12,040 --> 00:26:14,320 Speaker 1: empty seats. The Socks are, after all in the last place. 471 00:26:14,320 --> 00:26:17,080 Speaker 1: But quite a game Boston. At three different leads, Yanks 472 00:26:17,119 --> 00:26:19,120 Speaker 1: kept coming back to tie. Both teams hit three home 473 00:26:19,200 --> 00:26:21,639 Speaker 1: runs and the game was tied at four tent thinning 474 00:26:21,760 --> 00:26:23,600 Speaker 1: on one line is a fix shit in the right 475 00:26:23,640 --> 00:26:26,800 Speaker 1: center field in the alley'll go all the way of 476 00:26:26,880 --> 00:26:30,840 Speaker 1: the wall. Kind of all love the scores. Judge scores, 477 00:26:31,240 --> 00:26:35,879 Speaker 1: and the throw home is late three run score Floriale scores. 478 00:26:36,080 --> 00:26:39,879 Speaker 1: It is a basis clearing three run double for Glaver Retre. 479 00:26:40,880 --> 00:26:43,240 Speaker 1: Socks got two back bottle, but samp Yanks held on 480 00:26:43,320 --> 00:26:45,600 Speaker 1: to win seven six. The Yankee home run from Marwin 481 00:26:45,720 --> 00:26:49,440 Speaker 1: Gonzalez and two solo shots for Aaron Judge six inning 482 00:26:49,480 --> 00:26:51,480 Speaker 1: off Vic Pavetta that tie the game at three. Eighth 483 00:26:51,520 --> 00:26:53,680 Speaker 1: inning off Garrett Whitlock to tie the game at four. 484 00:26:53,800 --> 00:26:56,359 Speaker 1: That one left Fenway landed on lands down streets, so 485 00:26:56,520 --> 00:27:00,400 Speaker 1: Judge took a big step towards Roger Marris. Nineteen games left, 486 00:27:00,440 --> 00:27:04,240 Speaker 1: he's at fifty seven homer's twenty, more than anyone else 487 00:27:04,280 --> 00:27:06,359 Speaker 1: in the majors. This was supposed to be the easy 488 00:27:06,400 --> 00:27:10,160 Speaker 1: part of the Mets schedule, but against Washington, Pittsburgh, Miami, 489 00:27:10,200 --> 00:27:12,200 Speaker 1: and now the Cubs, the Mets just four and six 490 00:27:12,560 --> 00:27:14,800 Speaker 1: in their last ten games at City Field. They had 491 00:27:14,800 --> 00:27:17,040 Speaker 1: only four hits. They lost four to one as Adrian 492 00:27:17,200 --> 00:27:20,879 Speaker 1: Sampson out pitched Jacob de Graham. Atlanta won. The Braves 493 00:27:20,880 --> 00:27:23,720 Speaker 1: were only a half game behind NFL two big Week 494 00:27:23,760 --> 00:27:26,800 Speaker 1: one injuries, both perhaps not as serious. A Sphere Dallas 495 00:27:26,840 --> 00:27:28,840 Speaker 1: QB Dak Prescott will be back in a month from 496 00:27:28,840 --> 00:27:32,000 Speaker 1: his injured hand. Pittsburgh's t J Watt torn peck muscle, 497 00:27:32,040 --> 00:27:34,440 Speaker 1: but he might return in six weeks. Denver coach Nathaniel 498 00:27:34,480 --> 00:27:37,720 Speaker 1: Hackett now admits he should not have tried a failed 499 00:27:37,760 --> 00:27:40,440 Speaker 1: game winning sixty four yard field goal in the lost 500 00:27:40,440 --> 00:27:44,040 Speaker 1: Monday Night in Seattle. John Staphward Bloomberg sports Nathan. Thank 501 00:27:44,080 --> 00:27:46,359 Speaker 1: you John, five thirty seven on Wall Street Time for 502 00:27:46,359 --> 00:27:49,760 Speaker 1: the Tri State Business Report. Here's Bloomberg said, Corey related 503 00:27:49,800 --> 00:27:53,320 Speaker 1: Companies has landed du tenants at fifty Hudson Yards ahead 504 00:27:53,320 --> 00:27:56,000 Speaker 1: of its opening later this year. The three point eight 505 00:27:56,000 --> 00:27:59,679 Speaker 1: billion dollar skyscraper counts Meta Platforms is a major tenant. 506 00:28:00,040 --> 00:28:02,840 Speaker 1: It has new and expanded leases with companies including the 507 00:28:02,920 --> 00:28:08,240 Speaker 1: Truest Financial Business, Vista Equity Partners, and Service Now. Uber 508 00:28:08,280 --> 00:28:10,960 Speaker 1: has agreed to pay New Jersey one hundred million dollars 509 00:28:10,960 --> 00:28:14,960 Speaker 1: in back taxas the status said the righthling company misclassified 510 00:28:15,080 --> 00:28:19,320 Speaker 1: drivers as independent contractors. The settlement appears to be a 511 00:28:19,359 --> 00:28:22,439 Speaker 1: retreat from the company's claim that drivers should not be 512 00:28:22,520 --> 00:28:26,720 Speaker 1: classified as employees. About fifty thou people who left New 513 00:28:26,800 --> 00:28:30,240 Speaker 1: York City for Connecticut during the pandemic or staying put 514 00:28:30,320 --> 00:28:33,600 Speaker 1: despite calls by big banks and other Manhattan employers to 515 00:28:33,840 --> 00:28:37,440 Speaker 1: bring workers back to the office, Governor Ned Lamont says 516 00:28:37,520 --> 00:28:40,040 Speaker 1: for now there's been no sign of a major exodus 517 00:28:40,080 --> 00:28:44,160 Speaker 1: of transplants from his state. That your Bloomberg Try State 518 00:28:44,200 --> 00:28:48,240 Speaker 1: Business Report, my mid Corey Thanks on Wall Street. Bloomberg 519 00:28:48,320 --> 00:28:50,800 Speaker 1: Radio is on the air from San Francisco to New York, 520 00:28:50,840 --> 00:28:53,240 Speaker 1: London to Hong Kong. Let's check in with our global 521 00:28:53,240 --> 00:28:54,960 Speaker 1: news team for some of the top stories heard on 522 00:28:55,000 --> 00:29:01,200 Speaker 1: our three hundred affiliate radio stations around the world. I'm 523 00:29:01,240 --> 00:29:04,560 Speaker 1: Steve Podas Kant and X in Los Angeles. We're talking 524 00:29:04,600 --> 00:29:08,040 Speaker 1: about a report that Paramount Global is considering merging at 525 00:29:08,080 --> 00:29:12,480 Speaker 1: showtime streaming service into Paramount Plus. Um Corney Donahoe on 526 00:29:12,680 --> 00:29:15,560 Speaker 1: w h A S and Louisville. Starbucks is investing an 527 00:29:15,560 --> 00:29:19,280 Speaker 1: additional four hundred fifty million dollars to revampant stores. I'm 528 00:29:19,360 --> 00:29:22,240 Speaker 1: Ginas Servetti in for w b B b M in Chicago. 529 00:29:22,360 --> 00:29:25,680 Speaker 1: I'm reporting that Chicago Land consumer inflation is up eight 530 00:29:25,680 --> 00:29:28,440 Speaker 1: point eight percent year over year in August. That's a 531 00:29:28,480 --> 00:29:31,200 Speaker 1: faster pace than the national rate. I'm Stephen Carroll and 532 00:29:31,240 --> 00:29:33,800 Speaker 1: Bloomberg d a B Digital Radio in London. We've been 533 00:29:33,800 --> 00:29:36,200 Speaker 1: reporting on a slight easing of inflation in the UK 534 00:29:36,440 --> 00:29:39,240 Speaker 1: ahead of next week's Bank of England decision. I made 535 00:29:39,320 --> 00:29:42,920 Speaker 1: Corey on w w J in Detroit. I'm reporting General 536 00:29:42,960 --> 00:29:46,440 Speaker 1: Motors Help Driving Car Unit is developing its own computer 537 00:29:46,560 --> 00:29:49,080 Speaker 1: chims and those are some of the stories are twenty 538 00:29:49,120 --> 00:29:51,640 Speaker 1: seven hundred Bloomberg journalists and analysts are working on this 539 00:29:51,680 --> 00:29:54,160 Speaker 1: morning around the world. It's five thirty nine on Wall Street. 540 00:29:54,400 --> 00:29:58,760 Speaker 1: The following is an editorial from Bloomberg Opinion. This editorial 541 00:29:59,040 --> 00:30:03,640 Speaker 1: was written by the Bloomberg Editorial Board. Russian President Vladimir 542 00:30:03,680 --> 00:30:06,880 Speaker 1: Putin told a gathering last week that his country had 543 00:30:06,920 --> 00:30:10,680 Speaker 1: not lost anything and will not lose anything in the 544 00:30:10,800 --> 00:30:14,320 Speaker 1: Ukraine War. He may be less certain of victory today, 545 00:30:14,680 --> 00:30:19,960 Speaker 1: unoffensive by Ukraine's armed forces has made spectacular progress, reversing 546 00:30:20,040 --> 00:30:24,320 Speaker 1: gains that took Russia months to achieve. Whatever happens next, 547 00:30:24,400 --> 00:30:27,760 Speaker 1: there's no question that the charge has been a major 548 00:30:27,920 --> 00:30:33,080 Speaker 1: strategic and operational defeat for the Kremlin. Allied nations must 549 00:30:33,080 --> 00:30:36,680 Speaker 1: help Ukraine make the most of it by accelerating weapons 550 00:30:36,760 --> 00:30:41,440 Speaker 1: deliveries and holding the line on trade and sanctions. Of course, 551 00:30:41,560 --> 00:30:45,960 Speaker 1: Putin isn't defeated yet, but however, the conflict unfolds from here. 552 00:30:46,200 --> 00:30:50,520 Speaker 1: All wars end at the negotiating table. The West should 553 00:30:50,600 --> 00:30:53,800 Speaker 1: ensure that Ukraine is in a strong position when it 554 00:30:53,840 --> 00:30:58,160 Speaker 1: gets there. This editorial was written by the Bloomberg Editorial Board. 555 00:30:58,400 --> 00:31:01,280 Speaker 1: For more Bloomberg opinion, please go to Bloomberg dot com, 556 00:31:01,320 --> 00:31:05,560 Speaker 1: slash opinion or opie I n go on the Bloomberg terminal. 557 00:31:05,800 --> 00:31:09,680 Speaker 1: This has been Bloomberg Opinion. Listen for Bloomberg Opinion editorials 558 00:31:09,680 --> 00:31:12,640 Speaker 1: every weekday. At this time, terminal customers can read more 559 00:31:12,760 --> 00:31:17,000 Speaker 1: at opie I n go. Futures moving higher this morning. 560 00:31:17,000 --> 00:31:23,960 Speaker 1: You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather, sunny, 561 00:31:24,040 --> 00:31:26,320 Speaker 1: less human today, highs in the low eighties. Is gonna 562 00:31:26,320 --> 00:31:28,240 Speaker 1: be now. I send to the week actually with abundant 563 00:31:28,280 --> 00:31:31,760 Speaker 1: sunshine Tomorrow and Friday, both days in the upper seventies. 564 00:31:31,840 --> 00:31:38,640 Speaker 1: Right now sixty four in Central Park markets, headlines and 565 00:31:38,760 --> 00:31:42,040 Speaker 1: breaking news twenty four hours a day at Bloomberg dot com, 566 00:31:42,160 --> 00:31:45,240 Speaker 1: the Bloomberg Business at and at Bloomberg Quick Tape. This 567 00:31:45,640 --> 00:31:54,520 Speaker 1: is a Bloomberg Business blash and I'm camerin Moscow. US 568 00:31:54,640 --> 00:31:57,520 Speaker 1: Dock Index Future is rallying this morning after shares had 569 00:31:57,560 --> 00:32:00,120 Speaker 1: their biggest drop in more than two years yesterday, and 570 00:32:00,120 --> 00:32:02,480 Speaker 1: we checked the markets every fifteen minutes throughout the trading 571 00:32:02,560 --> 00:32:05,960 Speaker 1: day on Bloomberg SNP Future is up nineteen points down. 572 00:32:06,000 --> 00:32:09,240 Speaker 1: Futures have a hundred eighteen nasdack Futures up sixty five. 573 00:32:09,320 --> 00:32:11,400 Speaker 1: The decks in Germany's down a third of up percent. 574 00:32:11,720 --> 00:32:14,200 Speaker 1: Ten year Treasury down seven thirty seconds. You have three 575 00:32:14,200 --> 00:32:16,400 Speaker 1: point four three percent they yield on the two year 576 00:32:16,480 --> 00:32:19,560 Speaker 1: three point seven seven percent. Ni Max. Screwed oil is 577 00:32:19,640 --> 00:32:21,720 Speaker 1: up two tens per cent or sixteen cents at eighty 578 00:32:21,760 --> 00:32:24,680 Speaker 1: seven dollars forty eight cents of barrel comics. Gold is 579 00:32:24,680 --> 00:32:26,920 Speaker 1: down two tens per cent or two dollars eighty cents 580 00:32:26,920 --> 00:32:30,640 Speaker 1: at seventeen fourteen sixty and ounce. The euro is at 581 00:32:30,640 --> 00:32:33,680 Speaker 1: one point zero zero zero five against the dollar. And 582 00:32:33,720 --> 00:32:36,240 Speaker 1: that's of Bloomberg Business Flash. Now here's Michael Barr with 583 00:32:36,320 --> 00:32:38,760 Speaker 1: more on what's going on around the world. Michael Karen, 584 00:32:38,800 --> 00:32:41,520 Speaker 1: thank you very much, Queen Elizabeth. The seconds Coffin will 585 00:32:41,560 --> 00:32:45,320 Speaker 1: lie in state for four days from this afternoon in London. 586 00:32:45,680 --> 00:32:48,200 Speaker 1: It comes amid warnings that members of the public wishing 587 00:32:48,200 --> 00:32:51,280 Speaker 1: to attend to pay their respects at Westminster Hall could 588 00:32:51,320 --> 00:32:55,320 Speaker 1: face up to a thirty hour wait. The final primaries 589 00:32:55,360 --> 00:32:58,680 Speaker 1: for twenty two are over. In the New Hampshire US 590 00:32:58,720 --> 00:33:02,360 Speaker 1: House race, former Trump right House aid Caroline Levitt beat 591 00:33:02,400 --> 00:33:06,560 Speaker 1: out fellow Trump administration official Matt Mowers with thirty four 592 00:33:06,600 --> 00:33:09,600 Speaker 1: point six percent of the vote. She will face Democrat 593 00:33:09,760 --> 00:33:14,000 Speaker 1: Chris Peppis in November. Grhode Island Democratic governor Dan McKee 594 00:33:14,040 --> 00:33:18,360 Speaker 1: faces off against Republican Ashley Kellis in the fall. In baseball, 595 00:33:18,360 --> 00:33:20,880 Speaker 1: the Yankees beat the Red Sox seven six and ten innings. 596 00:33:20,920 --> 00:33:23,440 Speaker 1: New York's Are and Judge hit two homers to reach 597 00:33:23,480 --> 00:33:26,560 Speaker 1: fifty seven. The Men's lost, The Orioles beat the Nationals 598 00:33:26,560 --> 00:33:30,120 Speaker 1: for three, The A's and Giants lost. Global News twenty 599 00:33:30,160 --> 00:33:33,040 Speaker 1: four hours a day on air and on Bloomberg Quicktake, 600 00:33:33,280 --> 00:33:36,080 Speaker 1: powered by more than twenty seven hundred journalists and analysts 601 00:33:36,160 --> 00:33:38,440 Speaker 1: more than a hundred twenty countries. I'm Michael Barr, and 602 00:33:38,520 --> 00:33:41,000 Speaker 1: this is Bloomberg. Nathan. Okay, Michael, thank you. We're coming 603 00:33:41,040 --> 00:33:42,760 Speaker 1: up to five forty nine on Wall Street Live from 604 00:33:42,760 --> 00:33:46,040 Speaker 1: the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Want 605 00:33:46,040 --> 00:33:48,720 Speaker 1: to get more now on the hotter than expected read 606 00:33:48,760 --> 00:33:51,800 Speaker 1: on consumer prices we saw yesterday and the market reaction 607 00:33:51,920 --> 00:33:55,560 Speaker 1: joining us now. Drew Maddis, chief market strategist at MetLife 608 00:33:55,640 --> 00:34:00,080 Speaker 1: Investment Management, Drew, Good morning, four percent drop for the 609 00:34:00,200 --> 00:34:03,680 Speaker 1: SMP five hundred after the CPI print. Did the route 610 00:34:03,840 --> 00:34:08,000 Speaker 1: match what we got in the data? Uh? It did, 611 00:34:08,040 --> 00:34:11,000 Speaker 1: and it didn't. The what people are responding to is 612 00:34:11,080 --> 00:34:13,440 Speaker 1: not necessarily that we're gonna go. The Fed's gonna go 613 00:34:13,520 --> 00:34:16,440 Speaker 1: seventy five next week versus fifty, but the fact that 614 00:34:16,440 --> 00:34:18,600 Speaker 1: if they go seventy five next week, it means that 615 00:34:18,680 --> 00:34:22,160 Speaker 1: they really can't drop down to media. After that, they 616 00:34:22,200 --> 00:34:24,239 Speaker 1: have to probably drop down to fifty if they think 617 00:34:24,280 --> 00:34:27,160 Speaker 1: it's possible, and then they can drop down again to 618 00:34:29,040 --> 00:34:31,840 Speaker 1: So it actually didn't add just twenty five basis points 619 00:34:31,840 --> 00:34:35,120 Speaker 1: of rate hikes to this to the whole expectations, but 620 00:34:35,239 --> 00:34:38,320 Speaker 1: rather something closer to a hundred basis points of expectations, 621 00:34:39,200 --> 00:34:42,240 Speaker 1: a hundred basis points of expectations over the next two meetings, 622 00:34:42,440 --> 00:34:46,600 Speaker 1: or could we see a hundred basis points next week. Well, 623 00:34:46,640 --> 00:34:49,120 Speaker 1: a hundred basis point move next week would probably send 624 00:34:49,120 --> 00:34:51,760 Speaker 1: the wrong signal for the FED if if they're thinking about, 625 00:34:52,200 --> 00:34:54,160 Speaker 1: you know, we need to contain inflation, but we need 626 00:34:54,200 --> 00:34:56,560 Speaker 1: to make sure people understand that we aren't just trying 627 00:34:56,560 --> 00:34:59,920 Speaker 1: to rush to a recession um than you know, seventy 628 00:35:00,040 --> 00:35:04,120 Speaker 1: five sends that signal because it's a continuation of what 629 00:35:04,160 --> 00:35:06,880 Speaker 1: they've done previously, whereas if they went to a hundred, 630 00:35:06,880 --> 00:35:08,520 Speaker 1: then people would begin to think, is the next meeting 631 00:35:08,560 --> 00:35:11,640 Speaker 1: a hundred hundred and fifty? You know, where does it end? 632 00:35:13,239 --> 00:35:17,120 Speaker 1: What is the risk for a recession Now, is it 633 00:35:17,120 --> 00:35:19,320 Speaker 1: baked in at this point? And how long does it last? 634 00:35:20,200 --> 00:35:21,960 Speaker 1: I mean, our baseline view is that there will be 635 00:35:21,960 --> 00:35:24,279 Speaker 1: a recession next year. Uh, and it will not be 636 00:35:24,360 --> 00:35:26,839 Speaker 1: one will be debating about what. You'll know it when 637 00:35:26,880 --> 00:35:29,400 Speaker 1: you see it. Um. I think that the risk of 638 00:35:29,440 --> 00:35:33,480 Speaker 1: recession is growing because as much as inflation is something 639 00:35:33,520 --> 00:35:36,040 Speaker 1: you want to get under control, we have to remember that. 640 00:35:36,080 --> 00:35:37,680 Speaker 1: You know, if the FED wants to get inflation under 641 00:35:37,719 --> 00:35:41,279 Speaker 1: control or the US govern want to get inflation under control, 642 00:35:41,320 --> 00:35:42,920 Speaker 1: you can just shut the economy down, right. That is 643 00:35:42,920 --> 00:35:46,319 Speaker 1: what we learned from the pandemic. Inflation is containable if 644 00:35:46,360 --> 00:35:50,720 Speaker 1: you're aggressive enough. However, Uh, it comes with a cost. 645 00:35:50,800 --> 00:35:53,680 Speaker 1: And so you know, for the FED, uh, the idea 646 00:35:53,840 --> 00:35:56,960 Speaker 1: is to actually contain inflation with the lowest cost possible. 647 00:35:57,440 --> 00:36:00,799 Speaker 1: And I think, you know, going seventy next week, when 648 00:36:00,800 --> 00:36:03,279 Speaker 1: you already have housing in a pretty bad situation, when 649 00:36:03,280 --> 00:36:05,920 Speaker 1: there are hints that you know, maybe something's not entirely 650 00:36:06,040 --> 00:36:09,240 Speaker 1: right with the consumer, um, you know, maybe we're rushing 651 00:36:09,360 --> 00:36:12,480 Speaker 1: into a place instead of just letting things play out 652 00:36:12,480 --> 00:36:14,440 Speaker 1: a little bit. All those rate hyps we've seen, we 653 00:36:14,480 --> 00:36:17,719 Speaker 1: haven't seen the full impact from yet, are we seeing 654 00:36:17,800 --> 00:36:21,480 Speaker 1: higher inflation expectations getting baked into this market. And is 655 00:36:21,520 --> 00:36:25,080 Speaker 1: the FED going to be able at some point to 656 00:36:25,200 --> 00:36:28,279 Speaker 1: get to that two percent inflation target or is the 657 00:36:28,320 --> 00:36:32,200 Speaker 1: target going to have to change? Well that you know, 658 00:36:32,520 --> 00:36:35,400 Speaker 1: quite frankly, when they target expectations, what they're targeting is 659 00:36:35,440 --> 00:36:38,600 Speaker 1: pretty much gas and food prices because that's what sets 660 00:36:38,600 --> 00:36:41,560 Speaker 1: consumer expectations for inflation, because that's what you and I 661 00:36:41,640 --> 00:36:47,080 Speaker 1: buy frequently, um and repetitively. UM. So you know, every week, 662 00:36:47,239 --> 00:36:48,800 Speaker 1: I know I have to go to the gas station, 663 00:36:49,000 --> 00:36:50,960 Speaker 1: I know roughly how much it costs, and I go 664 00:36:51,040 --> 00:36:53,719 Speaker 1: the next week it costs more. I understand there's inflation 665 00:36:53,719 --> 00:36:56,960 Speaker 1: in the economy. Um. You know. I think the FED 666 00:36:57,040 --> 00:37:00,440 Speaker 1: needs to back off from looking at inflation expectations from 667 00:37:00,480 --> 00:37:04,320 Speaker 1: consumers and look more at whether people in financial markets 668 00:37:04,320 --> 00:37:07,440 Speaker 1: are asking to be compensated for inflation. And there the 669 00:37:07,520 --> 00:37:10,760 Speaker 1: data is a lot more mixed in terms of um, 670 00:37:10,800 --> 00:37:13,800 Speaker 1: you know, whether or not the FEDS contained inflation. In fact, 671 00:37:14,000 --> 00:37:17,360 Speaker 1: there's you could argue that the FED never lost containment 672 00:37:17,400 --> 00:37:22,560 Speaker 1: of inflation expectations. From a perfecsional inflation traders standpoint, we're 673 00:37:22,600 --> 00:37:25,560 Speaker 1: getting producer prices the I guess the last read on 674 00:37:25,600 --> 00:37:30,160 Speaker 1: inflation before next week's meeting. Is the final print on 675 00:37:30,360 --> 00:37:33,040 Speaker 1: inflation going to make any difference for what the Fed 676 00:37:33,080 --> 00:37:36,200 Speaker 1: decides next week. No. I think the only thing they 677 00:37:36,239 --> 00:37:38,000 Speaker 1: can really make a difference at this point, and it 678 00:37:38,000 --> 00:37:41,520 Speaker 1: would have to be something truly spectacular, almost so spectacular 679 00:37:41,680 --> 00:37:43,800 Speaker 1: that you might not believe it if you saw it 680 00:37:43,840 --> 00:37:46,839 Speaker 1: would be something really bad and retail sales, it's not 681 00:37:46,880 --> 00:37:50,080 Speaker 1: what we're expecting, But I think that could maybe push 682 00:37:50,160 --> 00:37:52,120 Speaker 1: them back down to the fifty level if you got 683 00:37:52,120 --> 00:37:55,520 Speaker 1: something that was both bad and credible. So in our 684 00:37:55,600 --> 00:38:00,319 Speaker 1: last minute here, Drew, what about the effect of the 685 00:38:00,440 --> 00:38:03,960 Speaker 1: route we saw yesterday on financial conditions? Does that make 686 00:38:04,000 --> 00:38:07,480 Speaker 1: any difference for central bankers? I think it should make 687 00:38:07,520 --> 00:38:10,000 Speaker 1: a difference to central bankers. I think it's it's telling 688 00:38:10,040 --> 00:38:12,640 Speaker 1: you that, you know, as much as everyone wants to 689 00:38:12,640 --> 00:38:15,200 Speaker 1: see inflation contains, that there is a cost to be 690 00:38:15,280 --> 00:38:18,600 Speaker 1: paid for containing inflation. And I think that's important to remember, 691 00:38:20,320 --> 00:38:24,160 Speaker 1: is you know, it's about containing inflation over a certain 692 00:38:24,200 --> 00:38:27,360 Speaker 1: timeframe at the lowest cost possible. It's not just about 693 00:38:27,360 --> 00:38:32,239 Speaker 1: containing inflation because that's easy. Actually, thanks Drew great having 694 00:38:32,239 --> 00:38:35,440 Speaker 1: gone with us this morning. Drew Madis, chief market strategist 695 00:38:35,600 --> 00:38:39,680 Speaker 1: at MetLife Investment Management. Karen Nathan, it is five or 696 00:38:39,680 --> 00:38:42,960 Speaker 1: fifty three on Wall Street time for the Bloomberg Law Report. 697 00:38:43,040 --> 00:38:46,360 Speaker 1: It has brought to you by American Arbitration Association. Business 698 00:38:46,360 --> 00:38:50,520 Speaker 1: disputes are inevitable, resolve faster with the American Arbitration Association, 699 00:38:50,760 --> 00:38:54,640 Speaker 1: the global leader in alternative dispute resolution for over ninety years. 700 00:38:54,960 --> 00:38:57,319 Speaker 1: More at a d R dot org. And now to 701 00:38:57,360 --> 00:38:59,759 Speaker 1: a legal story we're watching this morning and his first 702 00:39:00,000 --> 00:39:03,400 Speaker 1: public comments since the Supreme Court eliminated the constitutional right 703 00:39:03,440 --> 00:39:07,520 Speaker 1: to abortion, Chief the Justice John Roberts express concern that 704 00:39:07,680 --> 00:39:11,920 Speaker 1: criticism of the Supreme court our controversial decisions has veered 705 00:39:11,920 --> 00:39:16,000 Speaker 1: into attacks on its legitimacy as an institution. Poul since 706 00:39:16,040 --> 00:39:18,640 Speaker 1: that decision have shown that the public's confidence in the 707 00:39:18,640 --> 00:39:21,799 Speaker 1: Court is at its lowest in modern times. For more, 708 00:39:21,840 --> 00:39:25,759 Speaker 1: Bloomberg student Grosso speaks to constitutional law scholar Harold Krent, 709 00:39:26,080 --> 00:39:30,080 Speaker 1: a professor at the Chicago Kent College of Law. Poles 710 00:39:30,080 --> 00:39:32,560 Speaker 1: do show that public confidence in the Court is at 711 00:39:32,560 --> 00:39:35,960 Speaker 1: an all time low. So should the Chief Justice be 712 00:39:36,080 --> 00:39:40,680 Speaker 1: concerned about people questioning the Court's legitimacy? The Chief Justice 713 00:39:40,719 --> 00:39:43,279 Speaker 1: should be concerned about the legitimacy of the court, and 714 00:39:43,320 --> 00:39:46,000 Speaker 1: I believe that he's generally concerned about it, and he 715 00:39:46,040 --> 00:39:48,640 Speaker 1: has staked much of his reputation as Chief Justice on 716 00:39:49,120 --> 00:39:51,840 Speaker 1: appolling in diligimacy of the court. But I think he 717 00:39:51,960 --> 00:39:55,640 Speaker 1: is also partly to blame for the dip in court 718 00:39:55,719 --> 00:39:57,760 Speaker 1: popularity and for the faith in the court as well. 719 00:39:58,120 --> 00:40:00,799 Speaker 1: His vote carries no more way than any of the 720 00:40:00,920 --> 00:40:04,560 Speaker 1: other justices. Explain why you think he's partly to blame 721 00:40:04,760 --> 00:40:07,839 Speaker 1: for the dipping confidence in the court. Well, there are 722 00:40:07,880 --> 00:40:09,640 Speaker 1: a number of things that the Court has done, and 723 00:40:09,719 --> 00:40:12,239 Speaker 1: obviously not all of his doing. Every time there is 724 00:40:12,280 --> 00:40:15,000 Speaker 1: an era of politicization, people look at the court and 725 00:40:15,000 --> 00:40:18,160 Speaker 1: say it's more political because people see riffs all the time. 726 00:40:18,160 --> 00:40:20,200 Speaker 1: And of course he can't do anything about the risks 727 00:40:20,280 --> 00:40:24,160 Speaker 1: between the conservatives and the liberals. But in many cases 728 00:40:24,280 --> 00:40:28,200 Speaker 1: he has seemingly hipped to the court by trying to 729 00:40:28,360 --> 00:40:30,439 Speaker 1: take cases that they don't have to take in order 730 00:40:30,480 --> 00:40:35,480 Speaker 1: to reach certain principles, by not be consistent in methodology, 731 00:40:35,600 --> 00:40:39,400 Speaker 1: and those types of moves that he probably can control 732 00:40:39,840 --> 00:40:43,120 Speaker 1: undermine the legitimacy of the Court. And of course the 733 00:40:43,200 --> 00:40:46,440 Speaker 1: most everybody's minds. Is the abortion case. He would have 734 00:40:46,640 --> 00:40:49,919 Speaker 1: upheld rovers way, but limited it. He couldn't control the court, 735 00:40:50,080 --> 00:40:52,280 Speaker 1: and the court pushed it back. And there's other cases 736 00:40:52,280 --> 00:40:56,520 Speaker 1: where precedents seem to be willynily transcended by the court 737 00:40:56,680 --> 00:40:59,400 Speaker 1: because the court wants to basically put their own stamp 738 00:40:59,440 --> 00:41:02,440 Speaker 1: on the law and not be concerned with reliance interests, 739 00:41:02,680 --> 00:41:06,520 Speaker 1: not be concerned with looking like an incremental court. You 740 00:41:06,640 --> 00:41:10,680 Speaker 1: mentioned precedents, and the court seems to be changing the law, 741 00:41:10,840 --> 00:41:14,200 Speaker 1: not respecting precedent. And the Chief Justice was in the 742 00:41:14,280 --> 00:41:19,000 Speaker 1: majority in the opinions that struck down New York's hundred 743 00:41:19,080 --> 00:41:22,000 Speaker 1: year old gun law, the case limiting the e p 744 00:41:22,120 --> 00:41:25,880 Speaker 1: as ability to address climate change, the cases breaking down 745 00:41:25,920 --> 00:41:29,319 Speaker 1: the wall between church and states, voting rights cases, He's 746 00:41:29,360 --> 00:41:32,440 Speaker 1: in the majority in all those cases. He is in 747 00:41:32,440 --> 00:41:36,160 Speaker 1: those cases and others I think suggest quite clearly that 748 00:41:36,200 --> 00:41:39,040 Speaker 1: the quote is concerned with the having their moment in 749 00:41:39,160 --> 00:41:42,800 Speaker 1: history as opposed to being conservative in the old fashioned 750 00:41:42,840 --> 00:41:46,520 Speaker 1: sense of moving incrementally, of moving carefully. And I'll just 751 00:41:46,560 --> 00:41:48,640 Speaker 1: give you one example of the Chief Justice as well. 752 00:41:48,960 --> 00:41:52,600 Speaker 1: He has tried to impose a robust view of a 753 00:41:52,719 --> 00:41:55,839 Speaker 1: unitary or strong chief executive under Article two of our 754 00:41:55,880 --> 00:41:59,200 Speaker 1: Constitution on the country. And he's done so in the 755 00:41:59,239 --> 00:42:01,680 Speaker 1: face not only of precedent, but in the face of 756 00:42:01,800 --> 00:42:05,000 Speaker 1: even history, because the first kind has created many structures 757 00:42:05,040 --> 00:42:09,120 Speaker 1: that were not unitary. As Harold Grent, a professor at 758 00:42:09,120 --> 00:42:13,080 Speaker 1: the Chicago Kent College of Laws, speaking with Bloomberg's Done Grosso. 759 00:42:13,160 --> 00:42:16,280 Speaker 1: Catch more of that interview, plus analysis of the latest 760 00:42:16,360 --> 00:42:18,680 Speaker 1: legal news by listening to the Bloomberg Law Show at 761 00:42:18,680 --> 00:42:22,600 Speaker 1: ten pm Eastern Time or subscribing to the Bloomberg Law Podcast, 762 00:42:22,960 --> 00:42:26,120 Speaker 1: and attorneys can find exceptional legal research and business development 763 00:42:26,120 --> 00:42:30,680 Speaker 1: tools at Bloomberg Law dot com. Futures this morning are 764 00:42:30,760 --> 00:42:34,919 Speaker 1: on the rise. SNP futures up about eighteen points down 765 00:42:35,080 --> 00:42:38,320 Speaker 1: futures they're up a hundred seven and NASDAG futures of 766 00:42:38,560 --> 00:42:42,040 Speaker 1: fifty nine and still ahead. On Bloomberg Daybreak and check 767 00:42:42,040 --> 00:42:44,200 Speaker 1: on the business headlines and all the news you need 768 00:42:44,239 --> 00:42:46,920 Speaker 1: to start your day. And this is Bloomberg