WEBVTT - Bloomberg Daybreak: August 18, 2022 - Hour 2 (Radio) 0:00:01.520 --> 0:00:04.920 Bye from the Bloomberg Interacted Burger Studios. This is Bloomberg 0:00:04.960 --> 0:00:08.840 Daybreak for Thursday, August eighteen two. Coming up this tower, 0:00:09.119 --> 0:00:12.520 the US in Taiwan begin formal trade negotiations in a 0:00:12.560 --> 0:00:15.440 blow to China stocks pull back is The FED considers 0:00:15.440 --> 0:00:18.160 the pace of rate he apples, sets a target day 0:00:18.200 --> 0:00:21.439 for its next iPhone release, and adhering today to determine 0:00:21.480 --> 0:00:25.360 whether to unseal the FBI's Mara Lago affidavit. The war 0:00:25.440 --> 0:00:29.080 of words continues between New York Mayor Adams and Texas 0:00:29.080 --> 0:00:32.800 Governor Rabbitt. Plus the CDC wants to hit the reset button. 0:00:33.240 --> 0:00:37.080 Michael blar More Ahead, I'm John Stashdown spots dramatic win 0:00:37.200 --> 0:00:39.160 for the Yankees. They beat the Rays on a tenth 0:00:39.200 --> 0:00:42.240 inning grand slamb the metfield on to win in Atlanta. 0:00:44.440 --> 0:00:48.400 That's all's training. Ahead on Bloomberg day Break on Bloomberg eleven, 0:00:48.440 --> 0:00:52.960 Free on New York, Bloomberg one, Washington, d C, Bloomberg 0:00:52.960 --> 0:00:56.640 one oh six one, Boston, Bloomberg nine sixty, San Francisco, 0:00:57.160 --> 0:01:00.160 Sirius x M one nineteen and around the world on 0:01:00.360 --> 0:01:03.640 Bloomberg Radio dot com and via the Bloomberg Business app. 0:01:07.680 --> 0:01:10.480 Good morning. I'm John Tucker and I'm Karen. Moscow and 0:01:10.640 --> 0:01:14.000 US Dock index futures are moving higher. It is six 0:01:14.000 --> 0:01:15.880 oh one on Wall Street. We checked the markets every 0:01:15.880 --> 0:01:18.960 fifteen minutes throughout the trading day. On Bloomberg, again, futures 0:01:18.959 --> 0:01:21.840 have erased their losses. The SNP future is now up 0:01:21.840 --> 0:01:25.120 six points in OWN futures up thirty seven, nasdack futures 0:01:25.160 --> 0:01:27.520 up twenty two. The decks in Germany's up eight tens 0:01:27.520 --> 0:01:30.480 of a percent. Ten your treasury of five thirty seconds, 0:01:30.480 --> 0:01:32.920 heal two point eight seven percent yield on the two 0:01:33.000 --> 0:01:36.800 year three point to seven percent. John and US futures 0:01:36.840 --> 0:01:40.600 are higher this morning. Karen minutes from the Fed help 0:01:40.680 --> 0:01:44.800 boosting centiment. Traders found some dovish elements from the Central banks. 0:01:44.920 --> 0:01:48.760 July and meeting. Lauren Gilbert's CEO of Wealthwise Financial says 0:01:48.840 --> 0:01:53.560 there's uncertainly but still a chance for solid returns information 0:01:53.640 --> 0:01:58.640 technology services. We see that as an opportunity because unlike 0:01:58.720 --> 0:02:02.720 goods that have had the pricing pressures, with good prices 0:02:02.760 --> 0:02:05.880 continue to go up while you have wage pressure as well. 0:02:05.920 --> 0:02:09.400 In services, you don't have the cost goods issue. Lauren 0:02:09.440 --> 0:02:13.320 Gilbert with Wealthwise as technically indicator show markets could sustain 0:02:13.360 --> 0:02:16.119 a bull run in the months ahead. When it comes 0:02:16.120 --> 0:02:18.600 to the Fed minutes, John wall Street focused on Central 0:02:18.600 --> 0:02:21.720 Bank officials discussing the need to eventually dial back the 0:02:21.720 --> 0:02:25.280 pace of interest rate hikes. Eric Lund, principal economists with 0:02:25.320 --> 0:02:28.079 the Conference Board, said, the important takeaway is that the 0:02:28.120 --> 0:02:31.000 Fed will remain a data dependent in its approach. We 0:02:31.080 --> 0:02:33.399 all kind of figured they're going to at some point 0:02:33.400 --> 0:02:35.720 half to dial back the pace of the increases. It 0:02:35.880 --> 0:02:38.880 matter at what rate and when. So with the next 0:02:38.919 --> 0:02:41.360 meeting a little over a month off, we still have 0:02:41.480 --> 0:02:43.120 a quite a bit of data points that are going 0:02:43.200 --> 0:02:44.720 to be coming out, and it's been known and they're 0:02:44.720 --> 0:02:47.120 we're gonna have to watch. Eric Lund with the Conference 0:02:47.160 --> 0:02:50.160 Board says if inflation continues to fall, the Fed will 0:02:50.200 --> 0:02:53.000 be well positioned to ease rate hikes, and Karen, we're 0:02:53.000 --> 0:02:55.280 also going to be watching for more economic data. It's 0:02:55.280 --> 0:02:58.640 a thirty Well Street time the Labor Department releases fully. 0:02:58.720 --> 0:03:01.760 This figures on jobless games economy was predicted new hime 0:03:01.840 --> 0:03:05.040 for the year, with claims rising to two hundred sixty 0:03:05.120 --> 0:03:08.200 four thousand. We're also going to get existing home sales 0:03:08.240 --> 0:03:10.880 for the month of July. The National Association of Realtors, 0:03:11.200 --> 0:03:14.679 it's going to release those figures at ten Turning overseas 0:03:14.680 --> 0:03:17.600 now John Stocks in Asia fell overnight as further downgrades 0:03:17.639 --> 0:03:21.480 to China's growth outlooks sour and sentiment. Bloomberg's Juliett Sally 0:03:21.600 --> 0:03:24.119 joins US from Singapore with the latest Good Morning Juliette, 0:03:24.280 --> 0:03:27.040 Good Morning John, and Karen Goldman. Sacks lowered its projection 0:03:27.080 --> 0:03:30.280 for China's GDP to three percent from three point three percent, 0:03:30.400 --> 0:03:33.560 citing weaker than expected July economic data as well as 0:03:33.560 --> 0:03:37.240 new term energy constraints. Noamora slashed their forecast to two 0:03:37.240 --> 0:03:40.280 point eight from three point three percent. The Bloomberg median 0:03:40.320 --> 0:03:43.320 forecast from economists is now at three point nine percent. 0:03:43.800 --> 0:03:46.480 Stokes fell in Japan, China, and Hong Kong, and the 0:03:46.480 --> 0:03:49.480 Aussie was lower for a fourth session after almost forty 0:03:49.520 --> 0:03:52.240 one thousand jobs were lost in the nation last month, 0:03:52.520 --> 0:03:56.360 versus expectations of a twenty five thousand job gain in Singapore. 0:03:56.400 --> 0:04:00.400 Juliette Sally, Bloomberg Deybreak Julia thanks now to geopol takes 0:04:00.480 --> 0:04:03.480 Tensions with China remain front and center. The US and 0:04:03.520 --> 0:04:07.680 Taiwan now are set to start a start formal negotiations 0:04:07.680 --> 0:04:11.680 on a bilateral trade agreement. That story from Bloomberg's and Baxter. 0:04:12.240 --> 0:04:14.160 This is the next step in what has become a 0:04:14.280 --> 0:04:17.760 very heated and very sensitive issue for China. The statement 0:04:17.800 --> 0:04:20.800 says the two have already started formal negotiations, but the 0:04:20.839 --> 0:04:23.920 first sit down round will begin an early fall. They 0:04:23.960 --> 0:04:28.040 say it will cover trade facilitation, regulatory practices, and a 0:04:28.120 --> 0:04:32.599 corruption standards and deepening agriculture trade, among others. The statement 0:04:32.640 --> 0:04:36.000 says it will promote innovation and will deepen the relationship 0:04:36.520 --> 0:04:39.520 in San Francisco. I'm at Baxter Bloomberg Daybreak. All right, 0:04:39.720 --> 0:04:42.280 thank you. Returned to Corporate News Now, where news from 0:04:42.360 --> 0:04:45.159 Apple as front end center. The company is aiming to 0:04:45.240 --> 0:04:47.960 unveil its new iPhone next month, and bloombergs we need 0:04:48.040 --> 0:04:50.080 young joins us Live with the details. We need a 0:04:50.120 --> 0:04:53.359 good morning, Good morning, Karen Bloomberg. Sources say Apple's big 0:04:53.360 --> 0:04:56.120 reveal of the iPhone fourteen is expected to come on 0:04:56.240 --> 0:05:00.120 September seven. The flagship product generates more than half of 0:05:00.160 --> 0:05:02.839 Apples sales, and the update comes at a time when 0:05:02.880 --> 0:05:06.760 smartphone sales more broadly have started to slump, as consumers 0:05:06.800 --> 0:05:10.080 cope with inflation and a shaky economy. The launch kicks 0:05:10.080 --> 0:05:12.480 off with busy fall products season for the tech giant, 0:05:12.800 --> 0:05:15.839 which will include multiple new max low end and high 0:05:15.920 --> 0:05:19.520 end iPads and three Apple Watch models. Live in New York, 0:05:19.520 --> 0:05:22.760 I'm rend a young Bloomberg daybreak needed thanks and sticking 0:05:22.760 --> 0:05:25.920 with corporate news Walmarts see then s Walgreen's theory getting 0:05:26.000 --> 0:05:28.920 hit with a big fine. The pharmacy chains were ordered 0:05:28.920 --> 0:05:31.680 to pay a total of six fifty million dollars over 0:05:31.800 --> 0:05:36.320 failure to properly monitor opioid prescriptions in the state of Ohio. 0:05:36.960 --> 0:05:40.200 It's the drug industry's latest setback in litigation over the 0:05:40.240 --> 0:05:43.880 pain killers Well john and the earnings. Francisco Systems came 0:05:43.880 --> 0:05:47.080 out with results that beat analyst estimate. Shares her up 0:05:47.320 --> 0:05:49.560 almost five per cent in the free market after the 0:05:49.640 --> 0:05:53.120 company gave a bullish forecast again more from Bloomberg Charlie Pellet. 0:05:53.400 --> 0:05:56.359 Cisco is the biggest maker of machines that run the 0:05:56.400 --> 0:06:00.160 Internet and corporate computer networks, had said revenue will grow 0:06:00.240 --> 0:06:03.200 two to four percent in the fiscal first quarter from 0:06:03.279 --> 0:06:06.360 a year earlier. Analysts had predicted that sales will be 0:06:06.440 --> 0:06:09.520 roughly flat from a year ago when revenue was twelve 0:06:09.600 --> 0:06:13.960 point nine billion dollars. For fiscal three, the company expects 0:06:13.960 --> 0:06:17.359 sales to expand as much as six percent. The outlook 0:06:17.400 --> 0:06:21.760 suggests Cisco can weather a shaky economy and tech spending slowdown, 0:06:21.960 --> 0:06:25.920 helped by better access to supply in New York. Charlie 0:06:25.960 --> 0:06:28.919 Pellett Bloomberg Debris alright, thanks, Charlie. Bad Bath and Beyond 0:06:29.000 --> 0:06:31.600 another stock on the move this morning. Shares are down 0:06:31.680 --> 0:06:35.560 right now fourteen percent in the pre market as a 0:06:35.560 --> 0:06:40.800 big investors sours on the stock. Ryan Cohen's RC Adventures says, 0:06:40.920 --> 0:06:42.840 you know filing that it might sell as much as 0:06:42.839 --> 0:06:45.920 seven point seven million shares of Bad Bathroom Beyond r C, 0:06:46.279 --> 0:06:50.760 the retailers second largest shareholder after Black Rock Well. On 0:06:50.800 --> 0:06:53.280 the flip side, John shares at Bluebird Bio are up 0:06:53.279 --> 0:06:56.200 more than thirteen percent in early trading. The company's team 0:06:56.279 --> 0:06:59.520 therapy for a rare blood disorder was cleared by US regulators. 0:06:59.640 --> 0:07:02.200 Blue and said it plans to charge two point eight 0:07:02.240 --> 0:07:05.919 million dollars for the first ever one time treatment and 0:07:06.040 --> 0:07:08.599 coming up today more earning something you docket this morning, 0:07:08.880 --> 0:07:11.520 retail and focus. Once again, we're gonna get results from 0:07:11.560 --> 0:07:15.760 b j's Coles and Steve Lauter. Right now, del Future 0:07:15.840 --> 0:07:23.640 is up sixty nine. You're listening to Blueberg Daybreak and 0:07:23.720 --> 0:07:25.800 it brings us to six or seven at Wall Street 0:07:25.920 --> 0:07:27.840 time to bring in Michael barn to find out what 0:07:27.960 --> 0:07:31.000 else is going on to New York and around the world. John, 0:07:31.080 --> 0:07:34.000 thank you very much. The war of words continues between 0:07:34.040 --> 0:07:37.320 New York Mayor Eric Adams and Texas Governor Greg Abbott, 0:07:37.600 --> 0:07:40.920 with the Texas governor is doing it's just so anti American. 0:07:41.240 --> 0:07:44.400 Mayor Adams has four more bus loads of migrants who 0:07:44.440 --> 0:07:47.120 had crossed the border into Texas arrived in New York 0:07:47.160 --> 0:07:50.760 City yesterday. Abbott says he has been sending migrants to 0:07:50.840 --> 0:07:54.200 New York and Washington, d C. To ease pressure on 0:07:54.240 --> 0:07:57.840 the state, blaming the Biden administration for the crisis. Mayor 0:07:57.880 --> 0:08:00.520 Adams said, Governor Rabbit is using, to my grins, ask 0:08:00.560 --> 0:08:05.080 political pawns to strike out against democratic run cities. Those 0:08:05.080 --> 0:08:09.200 buses are leave in Texas and passing through the states 0:08:09.480 --> 0:08:12.600 and of the cities, how about speaking to those mayors 0:08:12.600 --> 0:08:17.080 of course, those cities and other governors state how do 0:08:17.200 --> 0:08:21.440 we do this together? Governor Rabbit responded, to Adams, calling 0:08:21.520 --> 0:08:25.080 him a hypocrite. Why he's ever complaining for one moment 0:08:25.480 --> 0:08:29.400 about these people being busted into a city goes against 0:08:29.840 --> 0:08:33.840 his own self declaration of being a sanctuary city. Governor 0:08:33.880 --> 0:08:38.520 Rabbit and Mayor Adams appeared on ABC's Nightline. Donald Trump's 0:08:38.600 --> 0:08:42.959 CFO is expected to plead guilty today to tax violations 0:08:42.960 --> 0:08:45.760 in a deal that would require him to testify about 0:08:45.840 --> 0:08:50.319 business practices at the former president's company. Alan Weisselberg, is 0:08:50.400 --> 0:08:53.280 charged with taking more than one point seven million dollars 0:08:53.280 --> 0:08:58.440 an untaxed compensation from the Trump organization. Rudy Giuliani says 0:08:58.480 --> 0:09:01.760 he has satisfied his obli ation after facing hours of 0:09:01.840 --> 0:09:05.680 questioning before special grand jury in Atlanta. His appearance was 0:09:05.760 --> 0:09:09.600 part of an investigation into attempts by former President Donald 0:09:09.640 --> 0:09:13.560 Trump and others to overturn his twenty election defeat in Georgia. 0:09:14.040 --> 0:09:16.960 The CDC director is planning a major overhaul of the 0:09:17.040 --> 0:09:21.679 agency after an internal review acknowledge missteps in its response 0:09:21.840 --> 0:09:26.000 to the COVID nineteen pandemic. Dr Rochelle Willinski, who ordered 0:09:26.040 --> 0:09:28.880 the internal review, is calling for a recept. We were 0:09:29.000 --> 0:09:32.680 operating with a frail public health infrastructure. Nationally, and we 0:09:32.760 --> 0:09:35.400 made some pretty public mistakes and we need to own them. 0:09:35.679 --> 0:09:39.320 Dr Wilinsky says the agency review found the CDC's COVID 0:09:39.360 --> 0:09:44.199 guidelines on masks, vaccines, and more have been confusing and overwhelming, 0:09:44.280 --> 0:09:48.280 echoing public criticism globally twenty four hours a day on 0:09:48.360 --> 0:09:51.720 air and on Bloomberg Quicktake, powered by more than twenty 0:09:51.800 --> 0:09:54.640 seven hundred journalist and analysts more than a hundred twenty countries. 0:09:55.040 --> 0:10:02.200 Michael Barr and this is Bloomberg Jump Michael, Thank you man. 0:10:02.280 --> 0:10:04.520 That brings us to six ten of Wall Street time 0:10:04.559 --> 0:10:07.800 down for the Bloomberg Sports Update to Morning John Stancheward 0:10:07.840 --> 0:10:10.040 AFOD Morning John. Mets and Yankees had both lost the 0:10:10.120 --> 0:10:12.480 last two nights. Both teams last night to sit through 0:10:12.480 --> 0:10:15.200 a rain delay. Both teams gave up seven runs and 0:10:15.240 --> 0:10:19.200 still one, and both debuted brand new rookie third baseman. 0:10:19.240 --> 0:10:21.320 For the Mets, it was twenty two year old Brett Batty. 0:10:21.360 --> 0:10:23.440 He was their first round draft pick in two thousand nineteen. 0:10:23.440 --> 0:10:25.520 He's been tearing it up in the minors and what 0:10:25.679 --> 0:10:28.839 a start to his big league career. High in the 0:10:28.920 --> 0:10:31.559 here the light feel pretty deep. Back to Cecoonia at 0:10:31.559 --> 0:10:35.839 the track at the wall is gone. Brett Batty, with 0:10:36.040 --> 0:10:39.720 his first major league swing, hits a whole run off 0:10:39.720 --> 0:10:42.600 the top of the six team foot high wall in 0:10:42.800 --> 0:10:46.640 right field. He salutes his parents on his way around 0:10:46.720 --> 0:10:50.679 third base. This kid is living the dream w CBS. 0:10:50.720 --> 0:10:52.959 Mets also got two on runs with Sterling Marte. They 0:10:53.040 --> 0:10:55.559 let Atlanta six to one, nine to five of the 0:10:55.640 --> 0:10:57.559 ninth inning. They held on beat the Braves nine to 0:10:57.720 --> 0:10:59.880 seven to go back up by four and a half games. 0:10:59.880 --> 0:11:02.679 In Jacob de Graham pitchers. Tonight, Yankees, of course, in 0:11:02.760 --> 0:11:05.319 a deep slump, called up twenty three year old as 0:11:05.320 --> 0:11:07.640 Waldo Cabrere. He went over four in his first game. 0:11:07.880 --> 0:11:10.720 Certainly looked like the Yanks are gonna lose yet again. 0:11:10.880 --> 0:11:13.480 They trailed Tampa Bay four to nothing. They did catch 0:11:13.559 --> 0:11:16.040 up on home runs by Glaver Torres and Anthony Rizzo, 0:11:16.080 --> 0:11:20.000 but then they fell behind again. The raised Francisco Mehia 0:11:20.240 --> 0:11:22.760 three run double with two out in the tenth up 0:11:22.800 --> 0:11:26.040 our oldest Chapman and it was seven four. Bottom of 0:11:26.080 --> 0:11:29.960 the tenth, Josh Donaldson hit a came winning opposite field 0:11:30.040 --> 0:11:33.280 walk off grand slam Yanks one eight seven. The upcoming 0:11:33.400 --> 0:11:35.240 US Open, It's gonna be dominating at least early on 0:11:35.320 --> 0:11:38.560 by it being Serena Williams last tournament. Her sister Venus 0:11:38.880 --> 0:11:41.200 has won the Open over twenty years ago, as excepted 0:11:41.240 --> 0:11:44.440 a wild card spot. Johns dash, We're Bloomberg Sports, don't 0:11:44.520 --> 0:11:46.480 all right? John Texas a lot ahead of the Open. 0:11:46.520 --> 0:11:49.280 On Wall Street, futures right now are in the green. 0:11:49.320 --> 0:11:52.360 The down futures of fifty one points. That's up about 0:11:52.360 --> 0:11:55.559 two tenths per cent. He has somepe many futures of 0:11:55.880 --> 0:11:59.200 eight points and the nansday futures twenty two points higher. 0:11:59.720 --> 0:12:07.960 You're listening to Bloomberg day Break and just ahead the 0:12:08.000 --> 0:12:11.439 Fed minutes were they devish. We're gonna speak with Jennifer Lee, 0:12:11.559 --> 0:12:16.600 senior economists at Bemal Capital Markets. This is Bloomberg day Break, 0:12:22.080 --> 0:12:25.480 Markets headlines and breaking news twenty four hours a day, 0:12:25.600 --> 0:12:28.600 at Bloomberg dot Com, the Bloomberg Business Out and at 0:12:28.600 --> 0:12:38.960 Bloomberg Victape. She's a Bloomberg Business Flash and I'm Karin Moscow. 0:12:39.160 --> 0:12:42.160 US Dock index futures have reversed losses in a volatile 0:12:42.240 --> 0:12:45.200 session after the Federal Reserve signal the Delicate Balancing Act 0:12:45.200 --> 0:12:48.319 I would see inflation busting rate hikes. Continued despite a 0:12:48.360 --> 0:12:51.520 weekending economy. We checked the markets every fifteen minutes throughout 0:12:51.520 --> 0:12:54.079 the trading day. On Bloomberg A S and P future 0:12:54.160 --> 0:12:56.240 is up five points this morning, down Future is up 0:12:56.240 --> 0:12:59.079 thirty two and as day futures up twelve. The decks 0:12:59.080 --> 0:13:01.600 in Germany's up eight tense of upper set ten. Your 0:13:01.640 --> 0:13:04.679 treasury up four thirty seconds, yield two point eight eight percent. 0:13:04.720 --> 0:13:07.079 They yield on the two year three point to eight percent. 0:13:07.559 --> 0:13:09.680 NIMEX s crude oil is up one point one percent 0:13:09.760 --> 0:13:12.000 of ninety eight cents at eighty nine dollars nine cents 0:13:12.000 --> 0:13:14.599 of barrel comic schoold is at four tens percent or 0:13:14.640 --> 0:13:17.559 seven dollars ten cents a seventeen eighty three eight n ounce, 0:13:17.960 --> 0:13:21.320 the Euro one point one seven two against the dollar, 0:13:21.440 --> 0:13:23.680 the British pound one point to zero six five and 0:13:23.679 --> 0:13:26.959 again one thirty five point to one, and Bitcoin this 0:13:27.040 --> 0:13:29.440 morning is up four tens percent at twenty three thousand, 0:13:29.440 --> 0:13:32.440 five hundred dollars. That's a Bloomberg business flash. Now here's 0:13:32.440 --> 0:13:34.840 Michael Barr with more on what's going on around the world. 0:13:34.960 --> 0:13:37.800 Michael Karen, thank you very much. Accord is expected to 0:13:37.840 --> 0:13:40.319 decide today whether to make public the full aff of 0:13:40.480 --> 0:13:44.400 David used to justify the FBI raid at President Trump's 0:13:44.440 --> 0:13:47.720 Mora Lago home. The Justice Department has objected to the 0:13:47.760 --> 0:13:51.040 aff of David's release, saying it would compromise the investigation. 0:13:51.559 --> 0:13:55.280 CDC Director Dr Rochelle Wolinski is calling for a reset 0:13:55.280 --> 0:13:58.400 of the agency after an internal review fault at the 0:13:58.440 --> 0:14:02.280 CDC's response to the OVID pandemic. She wants the agency 0:14:02.320 --> 0:14:06.240 to share information faster and in plain language. In baseball, 0:14:06.280 --> 0:14:09.360 the Yankees one with a dramatic Grand Slam against the 0:14:09.440 --> 0:14:12.360 Raise eight seven and ten innings. The Mets beat the 0:14:12.360 --> 0:14:15.679 Braves nine seven, The Red Sox and Ace won the 0:14:15.800 --> 0:14:19.640 Nationals Orioles and Giants lost. Global News twenty four hours 0:14:19.640 --> 0:14:22.480 a day on air and on Bloomberg Quick Take, powered 0:14:22.480 --> 0:14:25.480 by more than twenty seven hundred journalists and analysts in 0:14:25.560 --> 0:14:27.960 more than a hundred twenty countries. I'm Michael Barr, and 0:14:28.080 --> 0:14:31.200 this is Bloomberg, John Michael, thank you six twenty on 0:14:31.240 --> 0:14:34.160 Wall Street and rely for the Bloomberg Interact and Brokers Studios. 0:14:34.280 --> 0:14:37.560 This is Bloomberg Day Right. Minutes from their last meetings 0:14:37.560 --> 0:14:40.360 show the Federal Reserve officials agreed last month on they 0:14:40.360 --> 0:14:42.800 need to eventually dial back on the pace of the 0:14:42.840 --> 0:14:46.080 industrate hikes. Let's take a deeper time this morning, joining 0:14:46.120 --> 0:14:50.920 us at BEMO Capital Markets Managing Director senior economist Jennifer Lee. Hey, Jen, 0:14:51.080 --> 0:14:54.680 what is your takeaway? Oh? Good morning? Um, you know 0:14:54.680 --> 0:14:57.920 what the particule is that I think that said, much 0:14:58.000 --> 0:15:00.200 like most of the other central banks to s, you're 0:15:00.280 --> 0:15:03.280 on that whole there, biding by that whole. We're not 0:15:03.320 --> 0:15:06.000 on a preset course kind of view. Um. You know, 0:15:06.040 --> 0:15:08.800 they continue to see that there's little evidence of inflation 0:15:08.840 --> 0:15:11.280 pressure is cooling off, and that's going to take a 0:15:11.320 --> 0:15:13.720 while for this to happen, but you know, at some 0:15:13.760 --> 0:15:15.680 point they're you know, they're also looking for GDP to 0:15:15.760 --> 0:15:18.400 be revised upward, which was which I thought was quite 0:15:18.480 --> 0:15:21.080 interesting as well. But it basically sounds like, you know, 0:15:21.480 --> 0:15:23.760 we we that seventy five basis points are probably not 0:15:23.800 --> 0:15:26.760 in play, and it just supports our call for another 0:15:26.760 --> 0:15:31.440 fifty basis point like UM in September and the meeting afterwards. 0:15:31.480 --> 0:15:33.840 But I think they're just going to be very data dependent, 0:15:34.160 --> 0:15:36.160 wait and see what happens, and I think that's definitely 0:15:36.240 --> 0:15:39.120 the right UM mindset to be in. We you say, 0:15:39.160 --> 0:15:42.240 a little evidence of cooling off on the inflation front. 0:15:42.280 --> 0:15:44.960 So why would the expectations go down to fifty basis 0:15:45.000 --> 0:15:48.520 points at the next meeting, Because if you know, I mean, 0:15:48.720 --> 0:15:51.640 we're not back, We're not at nine point one percent anymore. 0:15:51.720 --> 0:15:54.080 And again you continue to you know, you have seen 0:15:54.840 --> 0:15:57.840 one month of data and inflation port last week that 0:15:57.880 --> 0:16:01.320 sally some cooling off, um, But you're going to need 0:16:01.360 --> 0:16:03.760 a lot more than that, So I think to that, 0:16:03.840 --> 0:16:05.240 you know, And plus at that point, they didn't have 0:16:05.280 --> 0:16:08.080 the inflation report anyway, So I think they're they're going 0:16:08.120 --> 0:16:09.840 to see they didn't need to see at least, you know, 0:16:09.880 --> 0:16:13.080 a few months of of downward pressure on inflation before 0:16:13.080 --> 0:16:15.400 they start dialing back even further than that. But seventy 0:16:15.400 --> 0:16:17.320 five basis points was already an aggressive move, and I 0:16:17.360 --> 0:16:20.280 don't think that's necessary at this point. Do they have 0:16:20.320 --> 0:16:25.600 to torpedo other stuff like a full employment to get there? Oh? Man, 0:16:25.640 --> 0:16:28.440 I hope it's not. I hope nobody has to torpedo anything. 0:16:28.480 --> 0:16:31.160 But you know, all of these moves, um, whether it's 0:16:31.200 --> 0:16:33.360 seventy five or fifty, you know, a series of them 0:16:33.760 --> 0:16:36.640 were supposed to have that intended effect of slowing economic growth, 0:16:36.680 --> 0:16:38.440 and it's already we're already seeing that. We saw that 0:16:38.520 --> 0:16:40.480 in you know, for example, this week, that big nine 0:16:40.480 --> 0:16:44.000 point in housing starts. We're already going to see another 0:16:44.080 --> 0:16:46.480 you know, setback as well as existing home sales. So 0:16:46.560 --> 0:16:48.960 the whole impact of this is just too cool demand 0:16:49.440 --> 0:16:51.240 and we're starting to see that and hopefully it's not 0:16:51.240 --> 0:16:55.200 going to torpedo um employment although you know, you know 0:16:55.280 --> 0:16:58.240 the big games that we saw in payrolls, you know, 0:16:58.360 --> 0:17:01.080 it's definitely a thing of the past. Okay, Jackson Hole 0:17:01.200 --> 0:17:07.880 meeting more important than usual, this FED symposium. You know, Um, 0:17:07.920 --> 0:17:10.320 I've been treading lately on this lab. I have to 0:17:10.359 --> 0:17:12.480 say yes because we're sending a lot of people there. 0:17:12.600 --> 0:17:15.480 I heard, you know, it's it's obviously it's you know, 0:17:15.520 --> 0:17:17.879 it's it's like the who's who uh in the world 0:17:17.920 --> 0:17:19.920 of finance. That will that will that will always be 0:17:19.960 --> 0:17:22.399 an attendance, although I think I missed my invitation again 0:17:22.480 --> 0:17:25.280 for the you know, year in a row. Um. But 0:17:25.359 --> 0:17:26.840 you know, at the same time, I have to think, 0:17:26.880 --> 0:17:29.399 you know, I don't know what more he could add 0:17:29.560 --> 0:17:31.400 to what they've already been saying. You know, they're trying 0:17:31.400 --> 0:17:33.920 to be as clear as they can with their communications 0:17:34.000 --> 0:17:36.560 and being as compelling as they as they can possibly be. 0:17:37.040 --> 0:17:38.680 You know, they just look for they just continue to 0:17:38.680 --> 0:17:41.120 look for more evidence U and you know they might ask, 0:17:41.160 --> 0:17:42.600 you know, what what is it going to take? And 0:17:42.640 --> 0:17:46.000 that might be the more interesting thing to talk about 0:17:46.040 --> 0:17:47.600 it Maybe we even talk about, you know, when they're 0:17:47.600 --> 0:17:50.679 actually gonna start seeing rate cuts. Also that thing that 0:17:50.800 --> 0:17:56.480 for us is not until probably move okay, Adding to 0:17:56.520 --> 0:17:59.119 the difficulties and all this remind everybody there is a 0:17:59.520 --> 0:18:03.640 there's a period between implementation and when you actually see 0:18:03.680 --> 0:18:06.480 if the policy is working in that right, Um, a 0:18:06.520 --> 0:18:07.960 little bit of a leg but you know, I mean 0:18:08.280 --> 0:18:10.240 we're seeing, you know, as soon as you start raising rates, 0:18:10.240 --> 0:18:13.000 you know that the banks start raising rates as well. Um. 0:18:13.280 --> 0:18:16.200 It does filter through fairly quickly. So that's why you're seeing, 0:18:16.520 --> 0:18:19.160 especially on the housing front, and that's why you're seeing 0:18:19.200 --> 0:18:22.399 you know, such a big dramatic um UM decline right 0:18:22.480 --> 0:18:26.320 now in some of the housing data. Although at some point, 0:18:26.960 --> 0:18:28.520 of course, at some point, you know, there's also going 0:18:28.560 --> 0:18:30.960 to be that impact of high prices as well, at 0:18:30.960 --> 0:18:34.040 which buyers were already dealing with UM. So this added 0:18:34.240 --> 0:18:36.840 increase in boring costs is just gonna make things a 0:18:36.840 --> 0:18:38.800 little bit more difficult for the who're trying to get 0:18:38.800 --> 0:18:41.320 back into the housing market. Okay, so from the market 0:18:41.400 --> 0:18:46.720 participant perspective, was this dovish not dovish? Or I mean, 0:18:46.760 --> 0:18:49.960 how do you give me the bottom line here? For me? 0:18:50.080 --> 0:18:51.720 If I had to take, if I was back into 0:18:51.760 --> 0:18:53.880 the corner, I would say it's a little bit um 0:18:54.200 --> 0:18:57.840 more slightly more dovish. I think um than one would 0:18:57.840 --> 0:19:00.200 expect it. Again, they're going to keep raising rates. They're 0:19:00.240 --> 0:19:02.400 just not going to go sending five basis points. So 0:19:02.560 --> 0:19:04.520 instead if you're going, if you're gonna say from SENTI five, 0:19:05.160 --> 0:19:07.200 if we want to call that duvish, you know that's 0:19:07.480 --> 0:19:09.720 the leaning I would take. But you know they're still 0:19:09.760 --> 0:19:12.080 going and you know we still have them raising rates 0:19:12.119 --> 0:19:14.240 for the last three meetings of this year. Are we 0:19:14.280 --> 0:19:17.560 going to avoid recession? Technical recession? However you wanted to 0:19:17.680 --> 0:19:21.840 find it? About twenty seconds. We we have a negative 0:19:21.920 --> 0:19:26.119 quarter priced in a pencilvan for early next year. It's 0:19:26.160 --> 0:19:28.240 going to be it's going to feel like recession, but 0:19:28.520 --> 0:19:30.439 maybe not the true definition that the n d e 0:19:30.560 --> 0:19:34.720 R would would lean on. BMO Capital Markets Managing Director's 0:19:34.760 --> 0:19:38.399 senior accounts Jennifer Lee with this this morning, always the pleasure, 0:19:38.440 --> 0:19:40.760 appreciate it. And ahead of that, you can show up 0:19:40.760 --> 0:19:43.280 on Wall Street down futures right now there are thirty 0:19:43.320 --> 0:19:45.919 four points higher, that's the tenth of a percent. S 0:19:45.960 --> 0:19:48.920 and p emanate futures there are five points that's of 0:19:49.000 --> 0:19:52.080 the tenth of a percent. The Nanzac futures of fifteen 0:19:52.240 --> 0:19:54.880 right now a tenth of a percent higher. And as 0:19:54.880 --> 0:19:57.720 we look at the Wall Street fear gage slightly elevated 0:19:57.760 --> 0:20:00.879 the vix at twenty point one f work. You're listening 0:20:00.880 --> 0:20:09.280 to Bloomberg Daybreak, the Bloomberg Weather from Rob Caroline Parler. 0:20:09.359 --> 0:20:12.240 Mostly sunny, the high temperature eighty five in New York 0:20:12.280 --> 0:20:17.080 today Tomorrow morning sun increasing afternoon clouds. High temperature eighty 0:20:17.160 --> 0:20:23.600 five to ninety degrees. This is Bloomberg broadcasting live from 0:20:23.600 --> 0:20:27.440 the Bloomberg Interactive Broker Studio in New York. Bloomberg e 0:20:27.480 --> 0:20:31.440 Living Freedom to Washington, d C. Bloomberg ninety one to Boston, 0:20:31.560 --> 0:20:35.439 Bloomberg one O six one to San Francisco, Bloomberg sixteen 0:20:35.520 --> 0:20:38.280 to the country, Sirius XM to A one nineteen and 0:20:38.359 --> 0:20:41.760 around the globe. The Bloomberg Business app and Bloomberg Radio 0:20:41.840 --> 0:20:50.639 dot com. This is Bloomberg Daybreak, the six thirty on 0:20:50.680 --> 0:20:53.680 Wall Street. Good morning, I'm John Tucker and I'm Cameron Moscow. 0:20:53.720 --> 0:20:55.879 We're just about three hours away from the open of 0:20:55.960 --> 0:20:57.919 US trading. It's time for the five things you need 0:20:58.000 --> 0:20:59.840 to know to start your day. Brought to you by 0:21:00.040 --> 0:21:04.440 Interactive Brokers. Interactive Brokers Simple, ib k our Global Trader app, 0:21:04.520 --> 0:21:07.120 deposit in your local currency and trade stocks in the US, 0:21:07.200 --> 0:21:10.040 Europe and Asia. Sharn't your free trial at ibk R 0:21:10.119 --> 0:21:14.320 dot com Slash Global Trader First. US futures are higher 0:21:14.359 --> 0:21:16.840 this morning, after the first down day for stocks in 0:21:16.880 --> 0:21:19.720 nearly a week. Markets are still digesting minutes from the 0:21:19.760 --> 0:21:23.639 latest FED meeting. Lorene Gilbert's CEO of Wealthwise Financial, says, 0:21:23.680 --> 0:21:27.119 there's uncertainty, but still a chance for solid returns. We 0:21:27.200 --> 0:21:30.840 do like small cap across the way growth in value 0:21:30.880 --> 0:21:33.280 because if you do believe that this is a bull 0:21:33.320 --> 0:21:36.760 market run, then we have the opportunity for small cap 0:21:37.000 --> 0:21:41.640 to continue to outpace. Lorrene Gilbert with Wealthwise says technical 0:21:41.680 --> 0:21:44.639 indicators show markets could sustain a bull run in the 0:21:44.680 --> 0:21:47.879 months ahead, and traders are waiting fresh economic data. Today 0:21:47.920 --> 0:21:50.760 A thirty am, All Street Time, Labor Department releases the 0:21:50.840 --> 0:21:53.520