WEBVTT - Bloomberg Daybreak: September 14, 2022 - Hour 1 (Radio) 0:00:02.720 --> 0:00:05.360 Live from the Bloomberg Interact at Burger Studios. This is 0:00:05.360 --> 0:00:09.360 Bloomberg Day Right for Wednesday, September four two. Coming up 0:00:09.360 --> 0:00:12.719 this hour, futures rise following the worst day for stocks 0:00:12.720 --> 0:00:16.239 in two years, positive inflation data in the UK as 0:00:16.280 --> 0:00:19.880 prices slipped from forty year highs in London, Queen Elizabeth's 0:00:19.880 --> 0:00:22.439 tough and makes its way to Buckingham Palace, and a 0:00:22.520 --> 0:00:25.000 rail strike in the US threatens the halt shipments of 0:00:25.079 --> 0:00:28.560 farm products and autos. Former New York Governor Cuomo files 0:00:28.560 --> 0:00:31.720 and ethics complain against the A G blush Ukrainian troops 0:00:31.880 --> 0:00:34.880 keep up the pressure on fleeing Russian forces. I'm Michael 0:00:34.880 --> 0:00:37.760 blarn More and I'm John Stashower. And sports. Another big 0:00:37.840 --> 0:00:39.919 night for Aaron Judge, two Armbrons and the Yankee win 0:00:39.960 --> 0:00:41.839 over the Red Sox. The Mets lost again to the 0:00:41.880 --> 0:00:45.920 cub That's all straight ahead on Bloomberg Day Break on 0:00:46.080 --> 0:00:50.680 Bloomberg eleven Freoo, New York, Bloomberg one, Washington, d C, 0:00:51.080 --> 0:00:55.440 Bloomberg one or six one, Boston, Bloomberg nine sixty seven, Francisco, 0:00:55.800 --> 0:00:59.080 Syrius x M one nineteen and around the world on 0:00:59.200 --> 0:01:02.680 Bloomberg Radio dot Com. And via the Bloomberg Business Act. 0:01:07.480 --> 0:01:10.240 Good morning, I'm Nathan Hagar and I'm Karen Moscow and 0:01:10.360 --> 0:01:12.640 US futures are on the rise this morning. We are 0:01:12.640 --> 0:01:14.399 coming up to five oh one on Wall Street, and 0:01:14.440 --> 0:01:17.400 we checked the markets every fifteen minutes throughout the trading day. 0:01:17.480 --> 0:01:21.119 On Bloomberg, SNP future is up twenty four points this morning, 0:01:21.160 --> 0:01:23.960 down features of a hundred fifty three and NASDAG futures 0:01:24.000 --> 0:01:27.120 up seventy eight. Ten year treasury down six thirty seconds. 0:01:27.200 --> 0:01:29.880 You have three point four three percent and they yield 0:01:29.920 --> 0:01:32.720 on the two year at three point seven six percent. 0:01:32.920 --> 0:01:35.640 Nathan well Karen stocks are coming off their worst day 0:01:35.680 --> 0:01:39.479 since twenty twenty. The SMP five hundred dropped four point 0:01:39.520 --> 0:01:43.120 three while the NAZDAC plunged more than five percent. It 0:01:43.240 --> 0:01:46.120 was all fueled by hotter than expected inflation data, which 0:01:46.120 --> 0:01:48.760 is increasing bets for bigger rate hikes from the Fed. 0:01:49.120 --> 0:01:52.880 Carol Schlife, his deputy chief investment officer at Beimo Family Office, 0:01:53.440 --> 0:01:56.559 the market desperately wants to figure out a bullish tone, 0:01:56.560 --> 0:01:59.760 and they've been fighting the Fed all year, and the 0:02:00.040 --> 0:02:03.800 it's been unequivocal saying we're gonna you know, they communicated 0:02:03.840 --> 0:02:07.000 pretty clearly that it's the three quarters of basis point rise. 0:02:07.080 --> 0:02:10.160 And I think this number took everybody by surprise, but 0:02:10.240 --> 0:02:13.120 the data has been really sloppy month a month. Carol 0:02:13.160 --> 0:02:16.160 Schleife at BEMO Family Office says next week's FED meeting 0:02:16.200 --> 0:02:19.640 will be crucial for markets. Well, Nathan, the selloff spread 0:02:19.639 --> 0:02:21.880 to Asia over and night, but the price action was 0:02:22.040 --> 0:02:24.760 more muted than what we saw in the US. Japan's 0:02:24.800 --> 0:02:27.760 Nika dropped two point eight percent, while Hongo Kong's Hang 0:02:27.960 --> 0:02:30.280 Sang fell two and a half percent. We get the 0:02:30.320 --> 0:02:33.919 recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, 0:02:34.120 --> 0:02:36.520 Good morning Karen. The yen rallied further away from the 0:02:36.560 --> 0:02:39.040 closely watched a hundred and forty five per dollar level 0:02:39.080 --> 0:02:41.320 after the NICK reported the Bank of Japan conducted a 0:02:41.400 --> 0:02:43.959 so called rate check in the currency market, a move 0:02:44.040 --> 0:02:47.960 considered a precursor for intervention. Officials in South Korea also 0:02:48.040 --> 0:02:50.880 ramped up verbal intervention, while China Central Bank sent the 0:02:50.919 --> 0:02:53.720 daily reference rate on the one at the strongest bias 0:02:53.800 --> 0:02:57.160 on record. Asian stocks had their biggest drop since June 0:02:57.320 --> 0:03:00.880 entre day, with Australian Chinese tech stocks and Phonetias, the 0:03:00.960 --> 0:03:04.959 laggs in Sydney Juliette Sally Blimber Daybreak juliet Thanks his 0:03:05.040 --> 0:03:07.680 inflation and higher rates continue to weigh on markets, the 0:03:07.720 --> 0:03:10.240 Fed still has a long way to go. That's according 0:03:10.280 --> 0:03:13.639 to legendary investor Mark Mobius, who says the feds benchmark 0:03:13.720 --> 0:03:18.040 interest rate could hit nine percent. Their game plan is 0:03:18.120 --> 0:03:22.080 to make sure that the interest rate is higher than inflation. 0:03:22.200 --> 0:03:25.720 That's the way they believe the way to kill inflation. 0:03:26.200 --> 0:03:29.920 So you have eight percent CPI, that means you have 0:03:30.080 --> 0:03:34.960 to have nine percent interest rates. If that forecaster Mark 0:03:35.000 --> 0:03:38.040 Mobius is right, rates would climb significantly higher than the 0:03:38.080 --> 0:03:40.920 current two and a half percent target rate. Well, Nathan 0:03:40.960 --> 0:03:43.240 the broad based Sell Office putting more pressure on the 0:03:43.280 --> 0:03:45.880 Fed to keep up aggressive policy. But when it comes 0:03:45.880 --> 0:03:49.280 to politics, President Biden says he's not worried about the 0:03:49.280 --> 0:03:52.640 threat of inflation. The stock market doesn't necessarily reflect the 0:03:52.680 --> 0:03:55.440 state of the economy, as you well know, and the 0:03:55.640 --> 0:04:00.680 economy is still strong. Unemployments, low jobs are up, manufacturing 0:04:00.760 --> 0:04:03.280 is could so I think it's uh. I think we're 0:04:03.280 --> 0:04:05.960 gonna be fine. Worried about the inflation number those No, 0:04:06.040 --> 0:04:09.040 I'm not the President spoke after hosting a celebration at 0:04:09.040 --> 0:04:12.640 the White House for the Inflation Reduction Act. After those remarks, 0:04:12.720 --> 0:04:16.560 Bloomberg political contributor Rick Davis said Democrats are starting to 0:04:16.560 --> 0:04:19.200 look out of touch on the economy. It says they 0:04:19.320 --> 0:04:22.119 cannot get out of their own way. This is a 0:04:22.120 --> 0:04:25.080 ad ready to be made. Every Republican is going to 0:04:25.160 --> 0:04:27.600 have this SNAr quiver and frankly, they give back Republicans 0:04:28.120 --> 0:04:30.640 a message that was starting to dwindle, which is, oh 0:04:30.680 --> 0:04:33.360 my god, we we gotta quit talking about inflation. Well 0:04:33.400 --> 0:04:36.680 not now. Rick Davis spoke with our Washington correspondent Joe 0:04:36.720 --> 0:04:39.800 Matthew on Bloomberg Sound on Catch the program weekdays at 0:04:39.800 --> 0:04:42.960 five pm Eastern on Bloomberg Radio. In the UK, care 0:04:43.040 --> 0:04:45.919 and there's some slightly positive news on inflation. Prices have 0:04:45.960 --> 0:04:48.159 gone down a bit, easing off the highest rate in 0:04:48.200 --> 0:04:51.279 four decades. Today's consumer price index rose at an annual 0:04:51.360 --> 0:04:53.920 rate of nine point nine. That's a drop from ten 0:04:54.000 --> 0:04:57.039 point one in July. The Bank of England meets next week. 0:04:57.040 --> 0:04:59.719 It's expected to raise interest rates either fifty or seventy 0:04:59.720 --> 0:05:02.840 five basis points. Well, Nathan the bigger story in England 0:05:02.920 --> 0:05:05.839 right now centers on Queen Elizabeth the Second. Her confin 0:05:05.960 --> 0:05:08.680 is now at Buckingham Palace as people queue up to 0:05:08.720 --> 0:05:11.120 pay their respect to the Queen, and we go live 0:05:11.160 --> 0:05:13.240 to London and get the latest from Bloomberg's You and 0:05:13.400 --> 0:05:16.479 Parts You and Good Morning, Good Morning, Karen and Nathan. 0:05:16.560 --> 0:05:19.040 Queen Elizabeth is said to leave bucking In Palace today 0:05:19.160 --> 0:05:22.760 for the very last time, departing at two twenty two pm. 0:05:22.760 --> 0:05:25.640 He Majesy's coffee will be transported by horse drawn gun 0:05:25.680 --> 0:05:29.719 carriage through St James's Park and onto Westminster. Walking behind 0:05:29.760 --> 0:05:32.080 his mother's coffin will be the new King, King Charles 0:05:32.120 --> 0:05:35.200 the Third, followed by the senior members of the royal family. 0:05:35.640 --> 0:05:38.400 The Queen's coffin will line states in Westminster Hall, the 0:05:38.440 --> 0:05:41.320 ancient heart of the British Parliament, for four days until 0:05:41.360 --> 0:05:44.479 her funeral on Monday. As many as a million people 0:05:44.520 --> 0:05:46.760 are expected to join the line to walk past her 0:05:46.800 --> 0:05:49.320 caskets in London. I'm You and Part Spin by Daybreak, 0:05:49.400 --> 0:05:51.520 all Right, You and thank You. Geo politics is also 0:05:51.560 --> 0:05:54.280 in focus this morning. President Shi jin Ping is making 0:05:54.320 --> 0:05:57.080 his first trip outside China in more than two years. 0:05:57.360 --> 0:05:59.760 Gives him a chance to meet Vladimir Putin in person 0:05:59.800 --> 0:06:02.599 for the first time since Russia began its invasion of Ukraine. 0:06:02.880 --> 0:06:06.240 We get more from Bloomberg Stephen Angle in Hong Kong. Obviously, 0:06:06.320 --> 0:06:09.719 for Putin he needs China's support. Perhaps the war, according 0:06:09.760 --> 0:06:13.839 to many calculations, is not going as planned. And for 0:06:14.040 --> 0:06:17.280 you know, Shed and Ping, he is again steadfastly sticking 0:06:17.279 --> 0:06:22.560 to this plan of decentralizing Western institutions and creating a 0:06:22.680 --> 0:06:26.240 narrative from a Chinese perspective. Bloomberg Stephen Angle reports she 0:06:26.320 --> 0:06:29.080 and Putin meet tomorrow in Uzbekistan on the sidelines of 0:06:29.080 --> 0:06:31.800 a security forum. First President, she makes a stop in 0:06:31.880 --> 0:06:34.719 Kazakhstan today and back here in the US, Nathan, a 0:06:34.720 --> 0:06:37.480 big labor fight is making head lines. A strike set 0:06:37.480 --> 0:06:41.279 for tomorrow could prevent American railroads from transporting firm products 0:06:41.279 --> 0:06:43.840 and other key goods, and could cost the US economy 0:06:43.880 --> 0:06:47.480 two billion dollars a day. President Biden is personally trying 0:06:47.480 --> 0:06:50.160 to break the long jam between railroads and labor unions. 0:06:50.240 --> 0:06:53.360 Labor Secretary Murdie Walsh, We'll meet with railroad and union 0:06:53.360 --> 0:06:56.560 representatives today. Futures moving higher care and we have SMP 0:06:56.680 --> 0:07:00.000 futures up twenty five points right now after yesterday's route down. 0:07:00.080 --> 0:07:02.800 Futures up a hundred sixty one. NASTAC futures on the 0:07:02.880 --> 0:07:05.800 rise by eighty three points. The tenure treasury is down 0:07:06.040 --> 0:07:09.680 seven thirty seconds. The three point three NIMEX screwed is 0:07:09.760 --> 0:07:11.560 up four tenths per cent or thirty one cents at 0:07:11.600 --> 0:07:14.480 eighty seven sixty two a barrel. The euro just below 0:07:14.520 --> 0:07:17.800 parody against the dollar. Local headlines and a check of sports. 0:07:17.880 --> 0:07:24.120 Just ahead. This is Bloomberg at five oh seven on 0:07:24.120 --> 0:07:26.800 Wall Street. Were sixty five degrees in Central Park. Got 0:07:26.800 --> 0:07:30.240 a water main break Scott southbound Root Tuo two closed 0:07:30.240 --> 0:07:33.239 by Henry Street, Morristown. More coming up in traffic. First 0:07:33.280 --> 0:07:35.040 Michael Barr with what else is going on in New 0:07:35.120 --> 0:07:38.000 York and around the world. Good morning, Michael, Good morning Nathan. 0:07:38.120 --> 0:07:41.240 Former New York Governor Andrew Cuomo filed and ethics complain 0:07:41.280 --> 0:07:44.560 against State Attorney General Letitia James about the way she 0:07:44.720 --> 0:07:48.560 handled a sexual harassment investigation that led to his resignation 0:07:48.680 --> 0:07:52.640 last year. Cuomo questioned the accuracy and credibility of the 0:07:52.680 --> 0:07:56.600 investigations findings, a legend. James, a fellow Democrat used the 0:07:56.640 --> 0:08:00.160 probe to tarnish him and further her own political interests. 0:08:00.360 --> 0:08:03.600 Cuomo says James, who briefly ran for governor, had her 0:08:03.640 --> 0:08:08.800 own politically motivated and self interest driven agenda. Cuomo resigned 0:08:08.800 --> 0:08:12.240 in August of last year. Rhode Island Governor Dan McKee. 0:08:12.280 --> 0:08:16.280 On Tuesday's Democratic gubernatorial primary, he thanks supporters, so I 0:08:16.360 --> 0:08:20.320 have to stand here before you tonight, not just as 0:08:20.320 --> 0:08:25.320 your governor, but as the Democratic nomination nominee for governor 0:08:25.320 --> 0:08:29.240 of Rhode Island. Governor McKee at the most with thirty 0:08:29.280 --> 0:08:33.040 three percent. In the fall, McKee will face Republican Ashley Kellis, 0:08:33.040 --> 0:08:36.920 who got eighty four. In New Hampshire, the Republican contest 0:08:36.960 --> 0:08:40.440 for Senate remains a tight race between conservative Donald Baldock 0:08:40.800 --> 0:08:44.960 and the more moderate Chuck Morrise. Republicans see Democratic incumbent 0:08:45.000 --> 0:08:49.160 Senator Maggie Hassan as beatable in the general election. Primaries 0:08:49.200 --> 0:08:52.000 were also held in Delaware. The Mayor of Boston is 0:08:52.120 --> 0:08:55.280 thanking law enforcement for a speedy response last night after 0:08:55.320 --> 0:08:59.720 a package exploded on the campus of Northeastern University injuring 0:08:59.720 --> 0:09:02.520 at AFT member. The forty five year old man suffered 0:09:02.559 --> 0:09:04.680 minor injuries to his hand and was taken to a 0:09:04.679 --> 0:09:08.520 local hospital. Mayor Michelle Woo, I just want to thank 0:09:08.640 --> 0:09:13.240 all of our first responders for very, very swift, coordinated 0:09:13.280 --> 0:09:17.720 and effective response. Within minutes, our police department and E 0:09:17.880 --> 0:09:21.319 M S and Fire department were here. Mayor wu says 0:09:21.400 --> 0:09:24.240 the search revealed a second similar package that was ultimately 0:09:24.280 --> 0:09:27.640 rendered safe by the bomb squad. Ukrainian troops continue to 0:09:27.679 --> 0:09:31.920 pressure retreating Russian forces, pressing deeper into occupied territory and 0:09:32.000 --> 0:09:37.000 sending more Kremlin troops fleeing. Pentagon spokesman Brigadier General Pat 0:09:37.000 --> 0:09:41.560 Writer on Russia, Clearly they've demonstrated their intent to keep 0:09:41.600 --> 0:09:47.160 fighting uh In in Ukraine into prolong their illegal occupation. 0:09:47.679 --> 0:09:50.720 General Writer. Global News twenty four hours a day on 0:09:50.800 --> 0:09:54.680 air and on Bloomberg Quicktake, powered by more than journalists 0:09:54.679 --> 0:09:59.439 and analysts more than twenty countries. Michael Barren, this is Bloomberg. Nathan. Hi, Michael, 0:09:59.440 --> 0:10:06.040 thank you. Almost five ten on Wall Street, time for 0:10:06.040 --> 0:10:08.680 the Bloomberg Sports Update. Good morning, johns Teshun, all right, 0:10:08.679 --> 0:10:11.040 good morning, Nathan. Aaron Boone was asked last night to 0:10:11.080 --> 0:10:14.560 describe Aaron Judge's performance in this remarkable season. He said, 0:10:14.600 --> 0:10:17.360 I have run out of adjectives in Boston, Judge and 0:10:17.400 --> 0:10:18.839 a solo home run in the sixth that need to 0:10:18.880 --> 0:10:20.400 tie the game at three, and then he came up 0:10:20.600 --> 0:10:23.599 too and inans later on one swung on. There it 0:10:23.640 --> 0:10:26.800 goes Jeep love Field. It is hot. Let us far 0:10:27.200 --> 0:10:31.280 head us God out of the building, over the high 0:10:31.360 --> 0:10:35.880 green monster, over the monster seats out on Sir Landsbane. 0:10:36.120 --> 0:10:40.640 He is phenomenal. The second home run of the night 0:10:40.720 --> 0:10:44.760 for Judge, his fifty seventh of the year, and we're 0:10:44.760 --> 0:10:47.800 all tied at four. Game is still four four tenth 0:10:47.880 --> 0:10:50.280 inning when labor Tora has delivered a three run double. 0:10:50.320 --> 0:10:52.760 The Red Sox got two back bottomed the tenth, but 0:10:52.880 --> 0:10:55.840 one deep Peralta struck out Rafe Devers. The Yanks held 0:10:55.880 --> 0:10:58.920 on to win seven six. It's the tenth multi home 0:10:58.960 --> 0:11:01.319 run game of the season for Judge. The record is 0:11:01.360 --> 0:11:05.880 eleven Hank Greenberg ninety eight, and with fifty seven homers, 0:11:05.880 --> 0:11:09.040 he is incheon closer to Roger Marris's sixty one at 0:11:09.120 --> 0:11:11.480 City Field. Second straight Mets loss to the Low Lea 0:11:11.600 --> 0:11:14.199 Cubs four to one, or air loss for Jacob de Graham, 0:11:14.200 --> 0:11:16.120 and the Mets didn't help by getting only four hits 0:11:16.120 --> 0:11:19.400 in Atlanta, won five one at San Francisco. The Braves 0:11:19.440 --> 0:11:21.920 are only a half game behind the Mets. Mike Draft 0:11:21.920 --> 0:11:24.520 did not homer for the Angels. He was trying to 0:11:24.520 --> 0:11:26.520 tie the record with a home run in eighth straight games. 0:11:26.520 --> 0:11:29.520 The twins against the Royals were two outs, some of 0:11:29.600 --> 0:11:31.800 combined no hit or didn't get it. W NBA Playoffs, 0:11:31.880 --> 0:11:35.760 Las Vegas eighty five, Connecticut seventy one, aces up to nothing. 0:11:35.800 --> 0:11:37.800 They can win the championship tomorrow with them, and he 0:11:37.920 --> 0:11:41.560 gets sung. John Stashower, Bloomberg Sports. Nathan all Right, John, 0:11:41.600 --> 0:11:44.480 thank you. SMP futures up twenty one points right now, 0:11:44.559 --> 0:11:47.680 death futures up a hundred thirty six. Danstack futures up 0:11:47.840 --> 0:11:51.400 sixty eight points. The tenure treasuries down seven thirty seconds. 0:11:51.440 --> 0:11:54.880 Deal three point four three percent. Markets looking to make 0:11:54.920 --> 0:11:58.000 a little bit of recovery after yesterday's route. We'll check 0:11:58.000 --> 0:12:02.240 in next with st Dwack, the chief investment officer at 0:12:02.240 --> 0:12:08.439 Flow Bank. This is Bloomberg Bloomberg Day Break, brought to 0:12:08.440 --> 0:12:11.680 you by Pepack Private Wealth Management. Pepack Private Wealth Management 0:12:11.679 --> 0:12:14.600 knows that a portfolio is more than a collection of assets. 0:12:14.640 --> 0:12:17.360 It's a path to your future, visit pepack private dot 0:12:17.360 --> 0:12:23.560 com and begin your financial legacy Today, Markets headlines and 0:12:23.679 --> 0:12:26.960 breaking news twenty four hours a day at Bloomberg dot Com, 0:12:27.080 --> 0:12:30.640 the Bloomberg Business at and at Bloomberg Quicktake, This is 0:12:30.640 --> 0:12:39.560 a Bloomberg Business Flash when I'm Karen Moscow. US knock 0:12:39.640 --> 0:12:42.560 Index future is rallying this morning after shares had their 0:12:42.559 --> 0:12:45.000 biggest drop in more than two years yesterday, with the 0:12:45.160 --> 0:12:47.520 S and P five hundred following more than four percent, 0:12:47.640 --> 0:12:50.600 of the nastacks sliding more than five percent and gave 0:12:50.679 --> 0:12:53.160 to the dollar retreating after jumping the motion in three 0:12:53.200 --> 0:12:56.880 months and attendue. Your treasury yelled is taking higher, hovering 0:12:56.880 --> 0:12:59.600 near a decade peak. We checked the markets every fifteen 0:12:59.600 --> 0:13:02.160 minutes about the trading day on Bloomberg. Right now, SNP 0:13:02.320 --> 0:13:04.880 futures are up twenty one points down futures of A 0:13:04.920 --> 0:13:07.720 hundred twenty eight and nasdack future is up sixty six. 0:13:07.840 --> 0:13:10.679 The decks in Germany's down three tenths of upper set ten. 0:13:10.760 --> 0:13:13.280 Your treasury down seven thirty seconds. You have three point 0:13:13.280 --> 0:13:15.480 four three percent they yield on the two year three 0:13:15.520 --> 0:13:18.719 point seven seven percent. NIMEX Scrude oil is up a 0:13:18.800 --> 0:13:21.240 quarter percent or twenty three cents at eighty seven dollars 0:13:21.280 --> 0:13:24.360 fifty four cents a barrel. Comicsch down two tenths percent 0:13:24.440 --> 0:13:27.560 or three dollars sixty cents is seventeen thirteen ninety. Announce 0:13:28.000 --> 0:13:31.600 the euro point one against the dollar British pound one 0:13:31.600 --> 0:13:34.440 point one five four zero the end one forty three 0:13:34.520 --> 0:13:36.960 point three seven And look at a bitcoin, it's up 0:13:37.000 --> 0:13:40.240 half percent at twenty thousand, three hundred fifty dollars. That's 0:13:40.240 --> 0:13:42.920 a Bloomberg business flash. Now here's Michael Barr with more 0:13:42.960 --> 0:13:45.280 on what's going on around the world. Michael, good morning, 0:13:45.360 --> 0:13:48.600 Good morning, Karen. Queen Elizabeth the Seconds Coffin has arrived 0:13:48.640 --> 0:13:52.360 at Buckingham Palace ahead of today's procession through London to 0:13:52.440 --> 0:13:55.640 Westminster Hall. She will lie in state for four days 0:13:55.720 --> 0:13:59.600 until her funeral. NBA team owner Robert Sarver has ben 0:13:59.760 --> 0:14:03.000 from representing the league in any capacity for one year. 0:14:03.440 --> 0:14:07.600 There were calls for tougher punishment for alleged racism and massaseni. 0:14:08.080 --> 0:14:10.680 In baseball, the Yankees beat the Red Sox seven six 0:14:10.720 --> 0:14:13.600 and ten innings, New York's Serin Jodge at two homer's 0:14:13.640 --> 0:14:16.600 to reach fifty seven this season. The Mets lost, the 0:14:16.640 --> 0:14:21.200 Orioles beat the Nationals for three, the A's and Giants lost. 0:14:21.440 --> 0:14:23.960 Global News twenty four hours a day on air and 0:14:24.120 --> 0:14:27.480 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:14:27.520 --> 0:14:29.960 journalist and analysts and more than a hundred twenty countries. 0:14:30.320 --> 0:14:33.400 Michael Barren, this is Bloomberg, Nathan. Thanks Michael. It's five 0:14:33.480 --> 0:14:36.840 nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:36.840 --> 0:14:38.920 This is Bloomberg day Break. Let's try to make sense 0:14:38.920 --> 0:14:42.760 of this market after yesterday's inflation read Sti Dweck joins 0:14:42.840 --> 0:14:47.280 US Live, chief investment officer at Flow Bank ste Good morning. 0:14:47.280 --> 0:14:49.720 We are seeing futures in a bit of recovery mode 0:14:49.800 --> 0:14:55.720 after yesterday's route. Is this a debut by not today? No? Uh, 0:14:55.800 --> 0:14:58.800 you know, we we are going. I mean, we had 0:14:58.800 --> 0:15:01.840 a very big movie yesterday, write down almost four across 0:15:01.880 --> 0:15:05.160 most indicase, and we basically erased most of what happened 0:15:05.240 --> 0:15:08.600 last week. I think as we digest this, we'll see 0:15:08.640 --> 0:15:11.280 that maybe it was a little bit of an overreaction, 0:15:11.800 --> 0:15:14.840 but the fact that the August month on month print 0:15:15.000 --> 0:15:18.360 was positive and not negative was clearly a problem. And 0:15:18.400 --> 0:15:21.760 markets are now repricing a lot more rate hikes into 0:15:21.800 --> 0:15:23.560 the end of the year, and I think that's going 0:15:23.560 --> 0:15:26.000 to have an impact on markets for a couple more days. 0:15:26.040 --> 0:15:28.400 Interesting that you term it a little bit of an overreaction. 0:15:28.440 --> 0:15:30.480 I mean, it was a four point drop for the 0:15:31.640 --> 0:15:34.160 most more than two years. Can you sort of explain 0:15:34.160 --> 0:15:35.480 a little bit more why you think it might have 0:15:35.520 --> 0:15:38.840 been just a little bit of an overreaction rather than 0:15:39.160 --> 0:15:42.880 it was a significant drop yesterday? SD It was. It 0:15:43.000 --> 0:15:45.800 was a very big drop yesterday, for sure, But if 0:15:45.840 --> 0:15:48.320 you think of it in the context of the previous 0:15:48.360 --> 0:15:50.800 few sessions where we've had this big run up in 0:15:50.880 --> 0:15:56.400 markets basically expecting the softer inflation print, reversing a lot 0:15:56.400 --> 0:16:00.560 of that in one go was also maybe not as surprising. 0:16:00.680 --> 0:16:02.720 So I think that's why I'd say a bit of 0:16:02.760 --> 0:16:05.440 an overreaction. Some of the reaction is also in a 0:16:05.480 --> 0:16:10.520 way justified because the inflation prints are not coming down 0:16:10.560 --> 0:16:13.520 as fast as we'd like h some of the stickier 0:16:13.560 --> 0:16:17.640 components are proving sticky, and that means that the FED 0:16:17.760 --> 0:16:20.440 is far from being over So we're also sort of 0:16:20.560 --> 0:16:23.720 deep pricing a little bit of that hope of a 0:16:23.760 --> 0:16:26.360 FED pivot, even though Powell had already done a very 0:16:26.400 --> 0:16:30.040 good job at removing that expectation at Jackson Hole. Oh, 0:16:30.160 --> 0:16:33.240 we're certainly seeing the market now removing that expectation of 0:16:33.240 --> 0:16:37.360 a pivot, with swaps markets now fully pricing in seventy 0:16:37.360 --> 0:16:40.160 five basis points. Let's get into that debate a little bit. 0:16:40.200 --> 0:16:42.920 What do you think the Fed's gonna do next week? 0:16:43.920 --> 0:16:46.600 I think they're gonna do seventy five. I think we 0:16:46.880 --> 0:16:49.600 the market is between seventy five and a hundred, so 0:16:49.760 --> 0:16:52.760 clearly up from where we were just a couple of 0:16:52.840 --> 0:16:57.080 days or weeks ago. Um, I think a hundred could 0:16:57.160 --> 0:17:00.840 scare everyone. I think they know they've done a couple 0:17:00.840 --> 0:17:03.360 of seventy five, they know it takes three to six 0:17:03.400 --> 0:17:07.600 months for this to filter through into the economy. They're 0:17:07.600 --> 0:17:10.439 gonna do seventy five. They're gonna signal that they're going 0:17:10.480 --> 0:17:13.080 to keep going. So we already see that the two 0:17:14.000 --> 0:17:18.920 November December are getting repriced higher as well. UM, I'm 0:17:18.920 --> 0:17:22.240 not sure three four or five months in on one 0:17:22.280 --> 0:17:25.760 inflation print, when you have a lot of other data 0:17:25.880 --> 0:17:29.520 pointing towards this inflation, that a hundred is the right signal. 0:17:30.520 --> 0:17:33.239 What does it mean for stock valuations if we do 0:17:33.320 --> 0:17:36.000 get that seventy five basis point move, or if the 0:17:36.280 --> 0:17:40.560 FED potentially surprises and comes in even stronger. I don't 0:17:40.560 --> 0:17:43.359 think the seventy five surprises markets. It's priced in at 0:17:43.400 --> 0:17:46.119 this point, and you know, even before the print, we 0:17:46.119 --> 0:17:49.760 were between fifty and seventy five, so we knew more 0:17:49.880 --> 0:17:53.639 hikes were coming. I think it's more about the terminal rates, 0:17:53.720 --> 0:17:56.640 which was, you know, may now be shifting to four 0:17:56.760 --> 0:17:58.840 or four and a half as an expectation for the 0:17:58.960 --> 0:18:02.600 end of the year and then probably either more hikes 0:18:02.640 --> 0:18:04.400 at the beginning of next year, or is she've been 0:18:04.440 --> 0:18:08.560 shifting further back any rate cuts um that markets still 0:18:08.600 --> 0:18:11.840 had priced in for the end of So from a 0:18:11.920 --> 0:18:14.960 valuation perspective, in the short term, not a huge move. 0:18:15.119 --> 0:18:18.560 Even if we get seventy five hundred scares markets a 0:18:18.560 --> 0:18:21.080 little more, so we get another drop there. But if 0:18:21.080 --> 0:18:23.160 we get the seventy five and we get an indication 0:18:23.240 --> 0:18:25.199 that more is coming, I think a lot of that 0:18:25.280 --> 0:18:28.080 is priced in or will be priced in by next week. 0:18:28.359 --> 0:18:31.000 So in our last minute here asking what could the 0:18:31.240 --> 0:18:34.480 stronger FED potentially mean for stock valuations? What could it 0:18:34.520 --> 0:18:37.159 mean for earnings expectations going forward for the rest of 0:18:37.200 --> 0:18:41.120 the year. There was a view that earnings expectations had 0:18:41.160 --> 0:18:42.639 to dip for the end of the year, and for 0:18:43.520 --> 0:18:47.280 three they've proved relatively resilient. I think some of these 0:18:47.320 --> 0:18:50.119 prints are showing you that the earnings are going to 0:18:50.200 --> 0:18:54.320 stay relatively resilient. So that's not where I'd be more worried. 0:18:54.359 --> 0:18:57.240 I think you had a bond market that's saying inflation 0:18:57.320 --> 0:19:02.200 expectations are coming down, market actations are coming down. Hopefully 0:19:02.240 --> 0:19:05.440 consumer expectations will see on Friday what what the Michigan 0:19:05.480 --> 0:19:08.320 survey says. So we need to see if those get 0:19:08.400 --> 0:19:11.600 completely repriced and if that has an impact on the 0:19:11.640 --> 0:19:14.000 equity market, because the equity market has been the more 0:19:14.080 --> 0:19:18.120 negative in terms of those of pricing in those tightening 0:19:18.119 --> 0:19:21.879 expectations so far. Thanks for this st as always great 0:19:21.920 --> 0:19:25.080 having you with us. S D. Dwag, chief investment Officer 0:19:25.600 --> 0:19:28.520 at Flow Bank. After the sell off yesterday, we are 0:19:28.560 --> 0:19:31.240 seeing a bit of recovery in the futures contracts. We 0:19:31.280 --> 0:19:34.480 have SMP futures right now higher by twenty four points. 0:19:34.520 --> 0:19:38.040 Staff futures are up one hundred sixty NASTAC futures up 0:19:38.119 --> 0:19:41.679 eighty two points. The tenure. Treasury is down eight thirty seconds, 0:19:41.760 --> 0:19:44.320 yield three point four three percent, yield on the two 0:19:44.400 --> 0:19:48.280 year three point seven seven percent. Crews getting a bit 0:19:48.280 --> 0:19:49.880 of a lift this morning as well. We have nime 0:19:49.960 --> 0:19:52.080 X screwed up four tenths per cent or thirty five 0:19:52.119 --> 0:19:56.040 cents eighty seven dollars seventy cents a barrel. The euro 0:19:56.200 --> 0:20:01.240 right now point nine eight against the dollar. You're listening 0:20:01.320 --> 0:20:09.080 to Bloomberg Taper and at five on Wall Street. Bloomberg 0:20:09.160 --> 0:20:11.920 Daybreak is brought to you by pe Pack Private Wealth Management. 0:20:11.920 --> 0:20:14.640 A portfolio is more than a collection of assets, it's 0:20:14.640 --> 0:20:22.280 a path to your future. Visit pe Pack Private dot Com. 0:20:22.280 --> 0:20:26.840 Broadcasting live from the Bloomberg Interactive Brokery Studio in New York. 0:20:26.920 --> 0:20:30.880 Bloomberg Eloving Freedom to Washington, d C, Bloomberg N one 0:20:31.000 --> 0:20:34.240 to Boston, Bloomberg one O six one does Ent Francisco, 0:20:34.320 --> 0:20:37.760 Bloomberg Now sixty to the Country, Sirius xm Cho one 0:20:37.800 --> 0:20:40.920 nine Tea and around the globe, the Bloomberg Business and 0:20:41.000 --> 0:20:51.000 Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five 0:20:51.040 --> 0:20:53.520 thirty on Wall Street. Good morning. I'm Nathan Hager, and 0:20:53.560 --> 0:20:56.480 I'm Karen Moscow, We're just about four hours away from 0:20:56.480 --> 0:20:58.359 the open of US trading. Let's get you up to 0:20:58.400 --> 0:20:59.960 date of the news. You need to know what this show. 0:21:00.000 --> 0:21:03.080 Our US futures are higher in the wake of yesterday's 0:21:03.080 --> 0:21:05.680 sell off, which saw the SNP five hundred drop more 0:21:05.680 --> 0:21:09.040 than four percent and an AZDAC plunge over five percent. 0:21:09.480 --> 0:21:13.199 Carol Schleef, Deputy Chief Investment Officer at BIMO Family Office, 0:21:13.200 --> 0:21:15.879 says it may be startling, but we should keep it 0:21:15.920 --> 0:21:19.080 in perspective. But I know that the down days are scary, 0:21:19.200 --> 0:21:22.240 but I watched seven happened. That was twenty three percent 0:21:22.320 --> 0:21:24.800 in a day and the year still closed up. Carol 0:21:24.880 --> 0:21:28.359 Schleif at BIMO Family Office says next week's FED meeting 0:21:28.400 --> 0:21:31.919 will be crucial for market sentiment. Sell off Karen splared 0:21:32.000 --> 0:21:35.639 virtually no corner of equity markets and also cost America's 0:21:35.720 --> 0:21:38.959 richest billionaires dearly. We get more on that from Bloomberg's 0:21:38.960 --> 0:21:42.520 Doug Krisner. Jeff Bezo suffered the biggest hit. Data from 0:21:42.520 --> 0:21:45.840 the Bloomberg Billionaire's Index show his wealth plunged by nine 0:21:45.880 --> 0:21:49.320 point eight billion dollars. Elon Musk's net worth fell by 0:21:49.400 --> 0:21:52.840 eight point four billion, and the fortunes of Mark Zuckerberg, 0:21:52.920 --> 0:21:56.480 Larry Page, Sir Gey Brenn, and Steve Balmer all declined 0:21:56.480 --> 0:21:59.720 by more than four billion dollars. In total, the fortunes 0:21:59.760 --> 0:22:03.120 of a America's richest tumbled by ninety three billion dollars. 0:22:03.520 --> 0:22:06.080 You know, just last month the same group lost seventy 0:22:06.080 --> 0:22:08.680 eight billion dollars in a day. After an eight minute 0:22:08.720 --> 0:22:11.359 speech from fed share J Powell in New York, I'm 0:22:11.400 --> 0:22:13.920 duck prisoner Blueberg daybreak, All right, Doug, thank you. In 0:22:13.960 --> 0:22:17.560