WEBVTT - Bloomberg Daybreak: August 18, 2022 - Hour 1 (Radio) 0:00:01.520 --> 0:00:04.920 Buy from the Bloomberg Interactive Burgers Studios. This is Bloomberg 0:00:04.960 --> 0:00:09.239 Daybreak for Thursday, August eighteen. Coming up the shower, the 0:00:09.320 --> 0:00:12.840 US in Taiwan begin formal trade negotiations in a blow 0:00:12.880 --> 0:00:15.480 to China stocks pull back is the FED considers the 0:00:15.560 --> 0:00:18.279 pace of rate. He apples that's a target day for 0:00:18.320 --> 0:00:21.720 its next iPhone release and adhering today to determine whether 0:00:21.800 --> 0:00:25.520 to unseal the FBI's Mara Lago affidavit. The war of 0:00:25.560 --> 0:00:29.880 words continues between New York Mayor Adams and Texas Governor Abbot. 0:00:30.080 --> 0:00:33.560 Plus the CDC wants to hit the reset button. Michael 0:00:33.560 --> 0:00:37.080 Blar more ahead, I'm John Stasher and sports dramatic win 0:00:37.200 --> 0:00:39.200 for the Yankees. They beat the Rays on a tenth 0:00:39.200 --> 0:00:41.400 then in Grand slamb the Metfill go on to win 0:00:41.560 --> 0:00:48.000 in Atlanta. That's all train ahead on Bloomberg Daybreak on Bloomberg. 0:00:48.040 --> 0:00:51.880 He Living Free on New York Bloomberg one, Washington d C, 0:00:52.360 --> 0:00:55.960 Bloomberg one oh six one, Boston Bloomberg nine sixties, and 0:00:56.040 --> 0:01:00.160 Francisco Syrius Exam one nineteen and around the world on 0:01:00.320 --> 0:01:03.600 Bloomberg Radio dot Com and via the Bloomberg Business app. 0:01:07.480 --> 0:01:10.640 Good morning. I'm John Tucker and I'm Karen Moscow. US 0:01:10.720 --> 0:01:14.280 DOT index futures are a little change, still lower this morning. 0:01:14.280 --> 0:01:16.000 We are coming up to five o one on Wall Street, 0:01:16.040 --> 0:01:18.120 and we check the markets every fifteen minutes throughout the 0:01:18.160 --> 0:01:21.640 trading day. On Bloomberg SMP futures down about three and 0:01:21.640 --> 0:01:24.319 a half points down, futures down twenty four and NASDAG 0:01:24.360 --> 0:01:27.880 futures down seventeen ten. Your treasury up five thirty seconds, 0:01:27.920 --> 0:01:30.320 held two point eight seven percent, and they yield on 0:01:30.400 --> 0:01:33.360 the two year three point to seven percent. NI Max 0:01:33.400 --> 0:01:35.759 screwed oil is up one point three percent at eighty 0:01:35.840 --> 0:01:38.880 nine dollars twenty seven cents in barrel. John, Yeah, as 0:01:38.880 --> 0:01:41.720 you mentioned, Karen, US futures aren't lower this morning, after 0:01:41.760 --> 0:01:43.920 the first down day for stocks in nearly a week. 0:01:44.240 --> 0:01:46.840 Still all bennets from the Fed helped boost centiment as 0:01:46.880 --> 0:01:50.200 traders found some dubbish elements from the central banks. July 0:01:50.200 --> 0:01:54.320 and meeting Lauren Gilbert's CEO of wealth Wise Financialsts, there's uncertainty, 0:01:54.360 --> 0:01:59.080 but still a chance for solid returns. Information technology services 0:01:59.240 --> 0:02:03.200 we see that as an opportunity because unlike goods that 0:02:03.240 --> 0:02:07.280 have had the pricing pressures with good prices continue to 0:02:07.280 --> 0:02:10.560 go up. While you have wage pressure as well in services, 0:02:10.840 --> 0:02:14.240 you don't have the cost goods issue. Lauren Gilbert with 0:02:14.320 --> 0:02:18.079 Wealthwise says, technically, in the Gator Show, markets could sustain 0:02:18.120 --> 0:02:20.679 a bull run in the months ahead. When it comes 0:02:20.720 --> 0:02:23.280 to the Fed minutes, John Wall Street focused on central 0:02:23.280 --> 0:02:26.320 Bank officials discussing the need to eventually dial back the 0:02:26.400 --> 0:02:30.280 pace of interest rate hikes, Eric Lund, principal economist with 0:02:30.320 --> 0:02:33.200 the Conference Board, says, the important takeaway is that the 0:02:33.200 --> 0:02:36.760 Fed will remain data dependent in its approach. We all 0:02:36.840 --> 0:02:39.000 kind of figured they're going through some more half to 0:02:39.040 --> 0:02:41.880 dial back the pace of the increases. This matter at 0:02:41.919 --> 0:02:44.680 what rate and when. So with the next meeting a 0:02:44.680 --> 0:02:47.240 little over a month off, we still have quite a 0:02:47.240 --> 0:02:49.000 bit of data points that are going to be coming 0:02:49.000 --> 0:02:51.040 out between now and then that we're gonna have to watch. 0:02:51.480 --> 0:02:54.399 Eric Lund, with a Conference Board says, if inflation continues 0:02:54.440 --> 0:02:56.880 to fall, the Fed will be well positioned to ease 0:02:57.000 --> 0:02:59.359 rate hikes, and Karen will also be watching for more 0:02:59.400 --> 0:03:02.320 economic Today at a thirty Wall Street time, the Labor 0:03:02.360 --> 0:03:06.280 Department releases the latest figures on jobless claims. Economists predicted 0:03:06.360 --> 0:03:08.720 new high for the year, with claims rising to two 0:03:08.800 --> 0:03:11.800 hundred sixty four thousand. We're also going to get existing 0:03:11.800 --> 0:03:14.359 home sales for the month of July. The National Association 0:03:14.400 --> 0:03:19.160 of Realtors releases those figures at ten. While turning overseas now, 0:03:19.240 --> 0:03:22.200 John Stocks and Asia fell over night as further downgrades 0:03:22.280 --> 0:03:26.520 to China's growth outlook sour sentiment. Bloomberg's Juliet Sally joins 0:03:26.560 --> 0:03:29.359 us from Singapore with the latest Good morning, Juliet, Good 0:03:29.360 --> 0:03:32.040 morning John and Karen Goldman. Sacks lowered its projection for 0:03:32.120 --> 0:03:35.160 China's GDP to three percent from three point three percent, 0:03:35.280 --> 0:03:38.440 citing we couldn't expected July economic data as well as 0:03:38.440 --> 0:03:42.119 new term energy constraints. Nomura slashed their forecast to two 0:03:42.120 --> 0:03:45.120 point eight from three point three percent. The Bloomberg median 0:03:45.200 --> 0:03:48.160 forecast from economists is now at three point nine percent. 0:03:48.680 --> 0:03:51.320 Stokes fell in Japan, China, and Hong Kong, and the 0:03:51.360 --> 0:03:54.360 Aussie was lower for a fourth session after almost forty 0:03:54.400 --> 0:03:57.120 one thousand jobs were lost in the nation last month, 0:03:57.400 --> 0:04:01.240 versus expectations of a twenty five thousand job gain in Singapore. 0:04:01.280 --> 0:04:04.480 Juliet Sally Bloomberg debreaks all right, thanks Julia at tensions 0:04:04.520 --> 0:04:07.680 with China remain front and center. The US and Taiwan 0:04:07.720 --> 0:04:11.840 are sent to store start formal negotiations on a bilateral 0:04:11.920 --> 0:04:15.320 trade agreement. Let's get more from Bloomberg's head, Baxter. This 0:04:15.400 --> 0:04:17.360 is the next step in what has become a very 0:04:17.400 --> 0:04:20.920 heated and very sensitive issue for China. The statement says 0:04:20.960 --> 0:04:24.000 the two have already started formal negotiations, but the first 0:04:24.040 --> 0:04:27.040 sit down round will begin an early fall. They say 0:04:27.040 --> 0:04:31.560 it will cover trade facilitation, regulatory practices and a corruption 0:04:31.720 --> 0:04:35.719 standards and deepening agriculture trade, among others. The statement says 0:04:35.760 --> 0:04:39.440 it will promote innovation and will deepen the relationship in 0:04:39.560 --> 0:04:42.520 San Francisco. I'm at Baxter Bloomberg debris. All right, and 0:04:42.600 --> 0:04:44.880 thank you. We turned to corporate news. Now we're news 0:04:44.880 --> 0:04:47.320 from Apple is front end center at the company is 0:04:47.360 --> 0:04:50.240 aiming to unveil his new iPhone next month, and Bloomberg's 0:04:50.240 --> 0:04:52.240 we need a young joins us live with the details. 0:04:52.320 --> 0:04:55.000 We need a good morning, Good morning, Karen Bloomberg. Sources 0:04:55.040 --> 0:04:58.280 say Apple's big reveal of the iPhone fourteen is expected 0:04:58.320 --> 0:05:02.240 to come on September seven. The flagship product generates more 0:05:02.279 --> 0:05:05.040 than half of Apple's sales and The update comes at 0:05:05.080 --> 0:05:08.240 a time when smartphone sales more broadly has started to 0:05:08.360 --> 0:05:12.240 slump as consumers cope with inflation and a shaky economy. 0:05:12.640 --> 0:05:15.039 The launch kicks off a busy fall product season for 0:05:15.080 --> 0:05:18.479 the tech giant, which will include multiple new Max low 0:05:18.600 --> 0:05:22.200 end and high end iPads and three Apple Watch models. 0:05:22.720 --> 0:05:25.360 Live in New York, I'm reneed a young Bloomberg daybreak 0:05:25.520 --> 0:05:28.560 rened to thanks sticking with corporate news. Walmart, CVNCE, and 0:05:28.720 --> 0:05:31.200 long Greens all getting hit with a big fine. The 0:05:31.279 --> 0:05:33.960 pharmacy chains were ordered to pay a total of six 0:05:34.360 --> 0:05:39.120 fifty million dollars over failure to properly monitor opioid prescriptions 0:05:39.240 --> 0:05:42.360 in Ohio. It's the drug industry's latest scent back and 0:05:42.480 --> 0:05:45.800 litigation over the pain killers. Well on the earnings from 0:05:45.960 --> 0:05:49.520 John Cisco Systems came out with the results that beat Astamade. 0:05:49.520 --> 0:05:52.200 Shares areout four and a half percent in early trading 0:05:52.240 --> 0:05:54.360 after the company gave a bullish fore cash and again 0:05:54.400 --> 0:05:57.840 more from Bloomberg Sterley Pellet. Cisco is the biggest maker 0:05:57.920 --> 0:06:01.600 of machines that run the Internet. Had Corporate Computer Networks 0:06:01.600 --> 0:06:04.520 had said revenue will grow two to four percent in 0:06:04.600 --> 0:06:08.000 the fiscal first quarter from a year earlier. Analysts had 0:06:08.000 --> 0:06:10.760 predicted that sales will be roughly flat from a year ago, 0:06:11.120 --> 0:06:15.920 when revenue was twelve point nine billion dollars. For fiscal three, 0:06:15.920 --> 0:06:19.520 the company expects sales to expand as much as six percent. 0:06:19.720 --> 0:06:23.160 The outlook suggests Cisco can weather a shaky economy and 0:06:23.240 --> 0:06:27.479 tech spending slowdown, helped by better access to supply in 0:06:27.600 --> 0:06:31.120 New York. Charlie Pellett Bloomberg Daybreak, All right, thanks Charlotte. 0:06:31.120 --> 0:06:33.679 Bed Bath and Beyond another stock on the move this morning. 0:06:33.680 --> 0:06:35.719 The shares right now on the pre market down over 0:06:35.800 --> 0:06:39.000 twelve percent as a big investor sours on the stock. 0:06:39.720 --> 0:06:42.400 Ryan Cohen's r C venture says in a filing that 0:06:42.480 --> 0:06:44.719 it might sell as much as seven point seven million 0:06:44.760 --> 0:06:47.760 shares of bed Bath and Beyond our C, the retailer's 0:06:47.760 --> 0:06:51.280 second largest shareholder after black Rock. Well. On the flip side, 0:06:51.360 --> 0:06:54.840 John shares of blue Bird Bio are up about eleven 0:06:54.839 --> 0:06:58.080 percent in early trading. The company's Geen therapy for a 0:06:58.160 --> 0:07:01.279 rare blood disorder was cleared by US regulators. Bloobir had 0:07:01.320 --> 0:07:03.800 said it plans to church two point eight million dollars 0:07:03.839 --> 0:07:07.040 for the first ever one time treatment and coming up today. 0:07:07.080 --> 0:07:09.840 More earnings on the docket this morning, Retail in focus 0:07:10.000 --> 0:07:14.920 once again. We're gonna get results from BJ's, Cole's, and st. Lauter. 0:07:15.920 --> 0:07:18.560 Right now, del Future is up two points. This is 0:07:18.600 --> 0:07:25.320 Bloomberg as five o seven on Wall Street. Time to 0:07:25.320 --> 0:07:27.760 bring in Michael Barr with more with what else is 0:07:27.760 --> 0:07:30.440 going on in New York and around the world. John, 0:07:30.480 --> 0:07:33.560 thank you very much. The war of words continues between 0:07:33.640 --> 0:07:37.160 New York Mayor Eric Adams and Texas Governor Greg Abbott 0:07:37.520 --> 0:07:40.800 with the Texas governor is doing it's just so entire American. 0:07:41.000 --> 0:07:44.240 Mayor Adams says. Four more bus loads of migrants who 0:07:44.240 --> 0:07:46.920 had crossed the border into Texas arrived in New York 0:07:46.960 --> 0:07:50.720 City yesterday. Abbott says he has been sending migrants to 0:07:50.760 --> 0:07:54.160 New York and Washington, d c. To ease pressure on 0:07:54.320 --> 0:07:58.160 the state, blaming the Biden administration for the crisis. Mayor 0:07:58.200 --> 0:08:02.480 Adams said, Governor Abbott using the migrants as political pawns 0:08:02.520 --> 0:08:06.440 to strike out against democratic run cities. Those buses are 0:08:06.560 --> 0:08:10.360 leaven in Texas and passing through other states, and of 0:08:10.440 --> 0:08:14.640 the cities, how about speaking to those mayors across those 0:08:14.640 --> 0:08:19.160 cities and other governors state. How do we do this together? 0:08:19.600 --> 0:08:23.080 Governor Rabbit responded to Adams, calling him a hypocrite. Why 0:08:23.120 --> 0:08:26.920 he's ever complaining for one moment about these people being 0:08:26.960 --> 0:08:31.400 busted into a city goes against his own self declaration 0:08:31.880 --> 0:08:35.440 of being a sanctuary city. Governor Rabbit and Mayor Adams 0:08:35.440 --> 0:08:40.160 appeared on ABC's Nightline. Donald Trump's CFO is expected to 0:08:40.200 --> 0:08:43.480 plead guilty today to tax violations in a deal that 0:08:43.520 --> 0:08:47.240 would require him to testify about business practices at the 0:08:47.240 --> 0:08:51.199 former president's company. Alan Weisselberg, is charged with taking more 0:08:51.240 --> 0:08:54.920 than one point seven million dollars and untaxed compensation from 0:08:54.960 --> 0:08:59.319 the Trump organization. Rudy Giuliani says he has satisfied his 0:08:59.440 --> 0:09:02.920 obligation and after facing hours of questioning before a special 0:09:02.960 --> 0:09:06.240 grand jury in Atlanta. His appearance was part of an 0:09:06.240 --> 0:09:10.199 investigation into attempts by former President Donald Trump and others 0:09:10.360 --> 0:09:13.920 to overturn his twenty twenty election defeat in Georgia. The 0:09:14.000 --> 0:09:17.480 CDC director is planning a major overhaul of the agency 0:09:17.600 --> 0:09:21.400 after an internal review acknowledge missteps in its response to 0:09:21.440 --> 0:09:25.520 the COVID nineteen pandemic. Dr Rochelle Walinski, who ordered the 0:09:25.520 --> 0:09:29.120 internal review, is calling for a reset. We were operating 0:09:29.160 --> 0:09:32.600 with a frail public health infrastructure nationally, and we made 0:09:32.679 --> 0:09:35.000 some pretty public mistakes and we need to own them. 0:09:35.320 --> 0:09:39.160 Dr Wilensky says. The agency review found the CDC's COVID 0:09:39.200 --> 0:09:44.120 guidelines on masks, vaccines, and more have been confusing and overwhelming, 0:09:44.360 --> 0:09:47.960 echoing public criticism. Global News twenty four hours a day 0:09:47.960 --> 0:09:50.760 on air and on Bloomberg Quicktake, powered by more than 0:09:51.800 --> 0:09:54.560 journalists and analysts in more than a hundred twenty countries 0:09:54.640 --> 0:09:58.000 on Michael Barr and this is Bloomberg, John, Michael, thank you. 0:10:02.000 --> 0:10:04.160 He is now five cent on Wall Street. That's time 0:10:04.200 --> 0:10:07.120 to the Bloomberg Sports UPSTATEE and Mart John stashwar Al, 0:10:07.200 --> 0:10:09.520 Good morning, John. Mets and Yankees had both lost the 0:10:09.600 --> 0:10:11.480 last two nights. Both teams last nine had to sit 0:10:11.520 --> 0:10:14.360 through a rain delay. Both teams gave up seven runs 0:10:14.400 --> 0:10:18.360 and still one, and both debuted brand new rookie third baseman. 0:10:18.360 --> 0:10:20.400 For the Mets, it was twenty two year old Brett Beatty. 0:10:20.760 --> 0:10:22.559 He was their first round draft pick in two thousand 0:10:22.559 --> 0:10:24.600 and nineteen. He's been tearing it up in the minors 0:10:24.640 --> 0:10:28.360 and water start his big league career. Hit high in 0:10:28.400 --> 0:10:31.040 the here to right. Feel pretty deep back. Cosconia have 0:10:31.200 --> 0:10:35.719 a track off the walls done. Brett Bety with his 0:10:35.840 --> 0:10:39.360 first pay Nix swing. It's a whole run off the 0:10:39.520 --> 0:10:43.040 top of the six team quote high wall in right field. 0:10:43.320 --> 0:10:46.959 He salutes his parents on his way around third base. 0:10:47.440 --> 0:10:50.600 This kid is living the dream CBS to Calum that's 0:10:50.600 --> 0:10:52.720 also got two on runs with Starling Marte. They let 0:10:52.760 --> 0:10:55.839 Atlanta six to one, nine to five of the ninth thing. 0:10:55.920 --> 0:10:57.760 They held on beat the Brave nine seven to go 0:10:57.840 --> 0:10:59.920 back up by four and a half game. Jacob mgron 0:11:00.360 --> 0:11:03.240 pictures tonight Yankees in that deep slump called up twenty 0:11:03.320 --> 0:11:05.719 three year old as Waldo Cabrera. He went over for 0:11:06.000 --> 0:11:08.120 his first game. Certainly looked like the Yanks are gonna 0:11:08.160 --> 0:11:10.680 lose yet again. They trailed Tavia Bay for nothing. They 0:11:10.760 --> 0:11:13.679 caught up home runs by Glaver tore As An Anthony Rizzo, 0:11:13.800 --> 0:11:16.640 but fell behind again. The Rays led seven to four. 0:11:16.720 --> 0:11:20.120 In the tenth inning, Josh Donaldson hit in opposite field 0:11:20.240 --> 0:11:23.000 walk off grand slam and the Yanks won in dramatic 0:11:23.080 --> 0:11:25.280 fashion and eight to seven. The Liberty opened up the 0:11:25.440 --> 0:11:28.360 w NBA playoffs a nine four eighties seven game one 0:11:28.400 --> 0:11:30.800 win over the defending league champions Chicago Liberty end of 0:11:30.800 --> 0:11:33.520 the game of the thirteen nothing run upcoming US Open 0:11:33.600 --> 0:11:35.760 is gonna be dominating at least early on. By Serena 0:11:35.760 --> 0:11:39.200 Williams's last tournament. Her sister Venus has accepted a wild 0:11:39.240 --> 0:11:42.360 card spot. She'll be playing two. John Stash Howard Plomberg 0:11:42.440 --> 0:11:44.640 Spot John all right, John, thanks very much. Ahead of 0:11:44.640 --> 0:11:46.679 the CANS show on Wall Street. Futures right now kind 0:11:46.720 --> 0:11:50.240 of treading water SMP evening, the futures down just point, 0:11:50.400 --> 0:11:54.480 the DAL futures ten points slower now and the NANSC 0:11:54.600 --> 0:11:58.760 futures are down nine points. They tend your treasury to 0:11:59.760 --> 0:12:03.600 two year yield right now. Three. You're listening to Bloomberg 0:12:03.640 --> 0:12:08.959 Tape right and Bloomberg Weather from meteorologist Rob Carroling for 0:12:09.080 --> 0:12:12.880 today partlet or mostly sunny, high temperature about eighty five tonight, 0:12:12.920 --> 0:12:22.640 clear flows seventy tomorrow, increasing afternoon clouds to ninety degrees. Markets, 0:12:22.760 --> 0:12:25.800 headlines and breaking news twenty four hours a day at 0:12:25.840 --> 0:12:29.239 Bloomberg dot Com, the Bloomberg Business at and at Bloomberg 0:12:29.320 --> 0:12:38.520 Quick Tape. This is a Bloomberg Business lash and I'm 0:12:38.600 --> 0:12:41.800 Karen Moscow and US Dock Index futures pairing losses in 0:12:41.880 --> 0:12:44.680 a volatile session after the Federal Reserve signal the Delicate 0:12:44.800 --> 0:12:47.920 Balancing Act. Now we see inflation busting rate highs continue 0:12:48.240 --> 0:12:51.080 despite the weekending economy. We checked the markets every fifteen 0:12:51.120 --> 0:12:53.600 minutes throughout the trading day on Bloomberg and right now, 0:12:53.760 --> 0:12:56.280 S and p NASDAC and down futures are all little changed. 0:12:56.720 --> 0:12:59.319 The decks in Germany is a four tenths of upper cent. 0:12:59.440 --> 0:13:01.679 Can your trail asury have three thirty second seal two 0:13:01.720 --> 0:13:04.240 point eight eight percent yield on a two year three 0:13:04.280 --> 0:13:07.160 point to eight percent NIMEX screwed oil is I've winted 0:13:07.160 --> 0:13:09.240 a third percent of a dollar nineteen at eighty nine 0:13:09.280 --> 0:13:12.079 dollars thirty three cents of barrel comes called up two 0:13:12.120 --> 0:13:14.400 tenths per cent or three dollars ten cents at seventeen 0:13:14.480 --> 0:13:17.640 seventy nine eighty announce the euro one point one six 0:13:17.720 --> 0:13:19.960 three against the dollar, British found one point two zero 0:13:20.080 --> 0:13:22.040 four and nine and the yen one thirty five point 0:13:22.120 --> 0:13:25.160 three one, and bitcoin is up to tens percent at 0:13:25.200 --> 0:13:28.240 twenty three thousand, four hundred sixty dollars. Today we are 0:13:28.280 --> 0:13:30.800 watching for the weekly report on initial jobless claims at 0:13:30.840 --> 0:13:33.040 a day thirty Wall Street Time that at ten is 0:13:33.120 --> 0:13:36.560 existing home sales and leading indicators, and BJ's Wholesale Club 0:13:36.640 --> 0:13:39.800 and Coleser among companies scheduled to report earnings today. That's 0:13:39.840 --> 0:13:42.560 a Bloomberg business flash. Now here's Michael Barr with more 0:13:42.640 --> 0:13:45.160 on what's going on around the world. Michael, thank you 0:13:45.280 --> 0:13:48.360 very much. Karen Accord is expected to decide today whether 0:13:48.440 --> 0:13:52.040 to make public the full affidavit used to justify the 0:13:52.200 --> 0:13:56.200 FBI rate at Mari Largo. The Justice Department as objected 0:13:56.240 --> 0:13:59.920 to the affi David's release, saying it would compromise the investigation. 0:14:00.720 --> 0:14:04.520 CDC Director Dr Rochelle Wolinski is calling for a reset 0:14:04.679 --> 0:14:07.839 of the agency after an internal review falls at the 0:14:07.880 --> 0:14:11.760 CDC's response to the COVID pandemic. She wants the agency 0:14:11.840 --> 0:14:15.880 to share information faster and in plain, easy to understand language. 0:14:16.559 --> 0:14:20.920 In baseball, the Yankees one with a dramatic grand slam 0:14:21.080 --> 0:14:24.160 against the Raise eight seven and ten innings. The Mets 0:14:24.280 --> 0:14:26.880 beat the Braves nine seven, the Red Sox and A'SE one. 0:14:27.200 --> 0:14:31.080 The Nationals, Orioles and Giants lost. Global news twenty four 0:14:31.120 --> 0:14:34.760 hours a day on air and on Bloomberg quicktake powered 0:14:34.800 --> 0:14:37.440 by more than twenty seven hundred journalists and analyists more 0:14:37.440 --> 0:14:40.640 than a hundred twenty countries. Michael Barr, this is Bloomberg, John, Michael, 0:14:40.680 --> 0:14:43.360 thank you. It is five twenty on one story. We're 0:14:43.440 --> 0:14:46.840 line from the Bloomberg Interranto Broker Studios. This is Bloomberg Daybreak. 0:14:47.200 --> 0:14:50.520 The US and Taiwan will start formal talks on a 0:14:50.680 --> 0:14:54.600 trade in economic initiative. Let's take a deeper diamond and 0:14:54.640 --> 0:14:57.440 this this morning with the chief Asia Economics correspondent with 0:14:57.600 --> 0:15:01.160 Bloomberg News and the current and this something new or 0:15:01.520 --> 0:15:05.520 is it something that's been in the works for a while. Well, 0:15:05.600 --> 0:15:08.200 it's been in the works for a while. It's often 0:15:08.280 --> 0:15:10.960 been held as a kind of a charactery Washington that 0:15:11.080 --> 0:15:15.560 they could deep in economic ties with Taiwan. Obviously, Taiwan 0:15:15.640 --> 0:15:18.440 is very keen to deepen ties. They have been pushing 0:15:18.480 --> 0:15:21.480 from membership to CPP, had been building out what kind 0:15:21.520 --> 0:15:24.120 of trade agreements and aligned as they can in the 0:15:24.200 --> 0:15:28.080 region in recent years. So obviously Taiwan's keen to push it. 0:15:28.520 --> 0:15:32.240 Washington used it as a kind of a carrot when 0:15:32.280 --> 0:15:35.200 it comes through the whole of Beijing story. But how 0:15:35.320 --> 0:15:37.760 deep and half hour goes. I think will depend on 0:15:37.840 --> 0:15:41.200 a number of factors, and not least just US and 0:15:41.320 --> 0:15:44.640 Taiwan driven, but in terms of just howard busts China 0:15:44.720 --> 0:15:47.000 does respond doing. Their initial response to say has been 0:15:47.040 --> 0:15:50.440 already been quite rebust and quite aggressive, as you can imagine. Yeah, 0:15:50.520 --> 0:15:52.920 would this lead to that we're talking about a free 0:15:53.000 --> 0:15:56.920 trade agreement here between the US and Taiwan. I don't 0:15:56.960 --> 0:15:58.920 think you would call it a full of free trade agreement. 0:15:58.960 --> 0:16:01.400 It might be more of a a trading pact, so 0:16:01.600 --> 0:16:03.800 to speak, in terms of where they can agree on 0:16:03.960 --> 0:16:08.520 areas of liberalizing trade and two way flows between both economies. 0:16:08.760 --> 0:16:10.920 I think certainly it's in Taiwan's interests. They're looking to 0:16:10.960 --> 0:16:13.000 the west. By there's a lot of commentary at the 0:16:13.040 --> 0:16:17.040 moment that the semiconductor industry has probably come to see 0:16:17.080 --> 0:16:19.320 something of a slowdown of a coming months due to 0:16:19.480 --> 0:16:22.360 a cooling technology boom. That's a huge part of Taiwan's 0:16:22.400 --> 0:16:25.720 exports sector, for example, So they're keen to certainly diversify 0:16:26.200 --> 0:16:28.480 and open their trading books where they can and win 0:16:28.560 --> 0:16:31.000 new market share there certainly need to come up compared 0:16:31.040 --> 0:16:33.080 to there on the U S side, it's it's probably 0:16:33.120 --> 0:16:37.800 been driven more by perhaps political irrational rather than anything else. 0:16:37.920 --> 0:16:40.080 We noticed by part of an approach of course to 0:16:40.280 --> 0:16:43.360 the US in the US when it comes to Taiwan policy. 0:16:43.520 --> 0:16:45.600 So we will have to see ultimately how fire it 0:16:45.640 --> 0:16:49.080 does go, because obviously every trade agreement always comes up 0:16:49.120 --> 0:16:51.960 again some stakeholder in some industry, in some sector who 0:16:51.960 --> 0:16:54.480 will have to hear how broad reaching and how people 0:16:54.520 --> 0:16:58.840 will ultimately be How much does taipe aid depend on 0:16:59.280 --> 0:17:04.000 Beijing for in terms of its economics. Are they trying 0:17:04.040 --> 0:17:06.440 to reduce that and make up for it with the 0:17:06.560 --> 0:17:10.840 ties the greater ties to the United States. Yeah, there's 0:17:10.880 --> 0:17:13.080 a bit of that. So I mean China is I 0:17:13.200 --> 0:17:15.960 want the biggest trading parking. And when speak of Closi 0:17:16.000 --> 0:17:18.679 went there a few weeks ago, China responded by putting 0:17:18.760 --> 0:17:22.639 effectively kind of an embargo or boycott on imports of 0:17:22.880 --> 0:17:26.359 certain Taiwanese goods for example, certain fruits for instance. And 0:17:26.480 --> 0:17:29.720 they also put restrictions on exports from China to Taiwan 0:17:29.800 --> 0:17:32.840 a certain goods for example, one with fine sands that's 0:17:33.000 --> 0:17:37.520 using the electronics industry. So Taiwan can sorry, China can 0:17:37.600 --> 0:17:41.320 obviously punish Taiwan economically to some extent, it has been 0:17:41.400 --> 0:17:45.119 a kind of a play card of China over the 0:17:45.200 --> 0:17:47.880 years when they're falling out with certain trading partners over 0:17:47.920 --> 0:17:50.760 a politically should they have responded and kind over you know, 0:17:50.880 --> 0:17:53.679 putting back on trade orders for example in with Australian 0:17:53.760 --> 0:17:57.440 recent years and with Philippines and others. So Taiwan is 0:17:57.480 --> 0:17:59.080 one of those who had one of the facing parents 0:17:59.119 --> 0:18:01.720 that came out of course of the Autermouth help speaking 0:18:01.760 --> 0:18:05.840 places with what the Taiwan does want to diversify. It's 0:18:06.480 --> 0:18:09.840 it's it's economic trading partners. It doesn't look for new 0:18:09.880 --> 0:18:11.920 markets around the region. There's some talk that it could 0:18:12.000 --> 0:18:15.520 deepen ties with Japan, for example, Japan is trying to 0:18:15.760 --> 0:18:17.680 be seen as an ally for Taiwan in the region. 0:18:17.960 --> 0:18:20.119 So I think there's no doubt. I wonder what to 0:18:20.200 --> 0:18:24.080 keep in its economic options and obviously when the potential 0:18:24.160 --> 0:18:27.159 for a trade negotiation with the US comes that they 0:18:27.160 --> 0:18:29.200 will certainly jump out that with both House and the 0:18:29.280 --> 0:18:32.399 backdrop for this news that the trade talks are going 0:18:32.440 --> 0:18:36.080 to kick off between Taiwan and the United States comes 0:18:36.640 --> 0:18:44.200 with the Beijing in serious trouble on the economic front. Right, Yes, 0:18:44.480 --> 0:18:46.480 you would say that on the headline basis, and there's 0:18:46.520 --> 0:18:51.359 no doubt all of the sort of real time indicators 0:18:51.400 --> 0:18:53.920 are going against their going in their own direction for China, 0:18:54.040 --> 0:18:57.160 and so the real estate sector remains in a slump. 0:18:57.880 --> 0:19:00.360 House prices and activity continue to go on the wrong 0:19:00.400 --> 0:19:04.040 direction there. So that's a big economy, about twenty of economy. 0:19:04.400 --> 0:19:06.600 Then this week we had a lot of high frequency 0:19:06.640 --> 0:19:09.320 indicators and reach out of spending and an investment and 0:19:09.520 --> 0:19:12.760 on the industrial output attention, all of that was weaker 0:19:12.880 --> 0:19:16.400 than expected. We've also had a big outbreak of COVID 0:19:16.480 --> 0:19:18.760 nntain this weekend in Hainan Island, the kind of a 0:19:18.880 --> 0:19:22.560 choplos ort that's raising fears of more lockdown than that 0:19:22.680 --> 0:19:26.640 kind of cycle ongoing aggressive restrictions. And then of course 0:19:26.800 --> 0:19:29.199 thrown to the mix the you know the US tensions 0:19:29.240 --> 0:19:32.560 with the US which don't bode well for animal spirits, 0:19:32.600 --> 0:19:34.440 shall we say, able to consue in West China. So 0:19:34.840 --> 0:19:36.840 it's all adding down a pressure on the economy. We've 0:19:36.840 --> 0:19:39.159 got a bit of news and in response how this 0:19:39.240 --> 0:19:41.960 already con respond to look to the extra government spending 0:19:42.000 --> 0:19:46.160 coming over aboves ahead all right, Chief Asia Economics correspondent, 0:19:46.280 --> 0:19:48.920 and the current with this this morning and thanks a lot, 0:19:49.040 --> 0:19:52.160 appreciate it. Just ahead of the cash open on Wall Street. 0:19:52.200 --> 0:19:55.399 Down futures they have been fluctuating down right now just 0:19:55.600 --> 0:19:59.680 a lot of points SMP in many futures unchanged and 0:19:59.800 --> 0:20:03.800 then ansday features eight points lower. You're listening to Bloomberg Daybreak, 0:20:06.640 --> 0:20:10.440 just ahead your top headlines. This morning partlet and mostly 0:20:10.560 --> 0:20:13.760 sunny in New York. Today has near eighty five. Tomorrow 0:20:14.000 --> 0:20:18.320 morning sun increasing afternue clouds eighty five. The ninety degrees 0:20:22.200 --> 0:20:26.680 broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.840 --> 0:20:30.280 Bloomberg E Living Freedom to Washington, d C, Bloomberg ninety 0:20:30.400 --> 0:20:34.119 nine one to Boston, Bloomberg one six one to San Francisco, 0:20:34.200 --> 0:20:37.639 Bloomberg n sixty to the country, Sirius XM CHE one 0:20:37.760 --> 0:20:41.440 nine and around the globe the Bloomberg Business and Bloomberg 0:20:41.520 --> 0:20:50.960 Radio dot Com. This is Bloomberg Daybreak. It's five thirty 0:20:51.000 --> 0:20:53.240 on Wall Street. Good morning. I'm John Tucker and I'm 0:20:53.280 --> 0:20:55.879 Karen Moscow. We're just about four hours away from the 0:20:55.960 --> 0:20:57.800 open of US trading. Let's get you have to date 0:20:57.840 --> 0:20:59.520 in the news you need to know at this shower. 0:20:59.720 --> 0:21:02.440 US futures are a little change this morning after the 0:21:02.520 --> 0:21:05.600 first down day for stocks and nearly a wig. Markets 0:21:05.640 --> 0:21:08.480 are still digesting minutes from the latest FED meeting. Loreen 0:21:08.560 --> 0:21:12.720 Gilbert's CEO of Wealthwise Financial, says there's uncertainty, but still 0:21:12.760 --> 0:21:15.960 a chance for solid returns. We do like small cap 0:21:16.240 --> 0:21:19.200 across the way growth in value because if you do 0:21:19.400 --> 0:21:22.080 believe that this is a bull market run, then we 0:21:22.200 --> 0:21:26.280 have the opportunity for small cap to continue to outpace. 0:21:26.720 --> 0:21:30.800 Loreen Gilbert with Wealthwise as technical indicators show markets could 0:21:30.840 --> 0:21:33.440 sustain a bull run in the months ahead. When it 0:21:33.520 --> 0:21:36.000 comes to the Fed minutes, Wall Street focused on Central 0:21:36.040 --> 0:21:38.879 Bank officials discussing the need to eventually dial back the 0:21:38.960 --> 0:21:42.439 pace of interest rate hikes, and traders will be watching 0:21:42.600 --> 0:21:46.600 for more economic data. Today. At eight thirty Wall Street time, 0:21:46.640 --> 0:21:50.000 the Labor Department releases the latest figures on jobless claims. 0:21:50.160 --> 0:21:53.520 Will also get existing home sales for July at ten 0:21:53.920 --> 0:21:56.080 and returned to corporate news now John, where news from 0:21:56.119 --> 0:21:58.359 Apple is front and center. The company is aiming to 0:21:58.480 --> 0:22:01.520 unveil its new iPhone month and Bloomberg's or need a 0:22:01.560 --> 0:22:03.639 young joint us live with the details, or need a 0:22:03.680 --> 0:22:06.880 good morning Good morning, Karen. Bloomberg. Sources say Apple's big 0:22:07.000 --> 0:22:09.680 reveal of the iPhone fourteen is expected to coma in 0:22:09.760 --> 0:22:13.560 September seven. The flagship product generates more than half of 0:22:13.640 --> 0:22:16.440 Apples sales, and the update comes at a time when 0:22:16.560 --> 0:22:20.440 smartphone sales more broadly have started to slump as consumers 0:22:20.520 --> 0:22:24.160 cope with inflation and a shaky economy. The launch kicks 0:22:24.160 --> 0:22:27.520