Speaker 1: Bloomberg Audio Studios, podcasts, radio News. Good morning, I'm Nathan
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today, Karen.
Speaker 2: Stocks are coming off their best week of the year
Speaker 2: ahead of a key speech from FED chair J Powell.
Speaker 2: The S and P five hundred has gained for seven
Speaker 2: straight sessions. A flurry of strong economic data last week
Speaker 2: was cheered on by investors. Nadia Lovell, as senior US
Speaker 2: equity strategist at UBS Global Wealth Management, she is still
Speaker 2: bullish on tech stocks.
Speaker 3: Well, we have been advising clients to do, particularly our
Speaker 3: international clients that tends to have Leod's exposure to attack
Speaker 3: just because of home bias, is to continue to buy
Speaker 3: on the weakness in tech.
Speaker 4: I mean, we heard some positive data points throughout the
Speaker 4: earnesties and particularly around the AI story. I mean we're
Speaker 4: continuing to see those hyper scales, those large hyper scales,
Speaker 4: those cloud service providers increase capax and quite frankly, we
Speaker 4: think that there's upside the APEX estimates into twenty twenty five.
Speaker 2: UBS isnadi a level notes the Nasdaq one hundreds more
Speaker 2: than five percent game last week was a good sign
Speaker 2: for tech stocks going forward, well as for the FED.
Speaker 1: Nathan. The majority of economists and investors expect a twenty
Speaker 1: five basis point rate cut next month, but City US
Speaker 1: economist Veronica Clark is still looking for something bigger.
Speaker 5: Starting with that fifty basis points in September, of the
Speaker 5: bar is relatively low. There is the sense in which
Speaker 5: you know, if they'd had that July employment data just
Speaker 5: a couple of days earlier at that July FOMC meeting,
Speaker 5: they probably would have cut in July. Maybe you're making
Speaker 5: up for lost time a bit. The trend of the
Speaker 5: unemployment rate has just been consistently rising. That we will
Speaker 5: have one more employment report before September, but that's probably
Speaker 5: not enough to convince you that those risks are not
Speaker 5: asymmetric to the upside of the unemployment rate. So I
Speaker 5: think it's easy for them to start with a fifty
Speaker 5: in September.
Speaker 1: And Citi's Veronica Clark pricing in the swaps market implies
Speaker 1: around thirty basis points of easing next month and about
Speaker 1: ninety three by the end of the year. That marks
Speaker 1: a big retreat from earlier this month, when traders indicated
Speaker 1: more than one hundred and fifty bases points of cuts
Speaker 1: for twenty twenty four.
Speaker 2: Then Karen, we could get more clues on rate cuts
Speaker 2: at the end of the week, that is when Federal
Speaker 2: Reserve chair Jay Powell speaks in Wyoming. Bloomberg's Michael McKee
Speaker 2: will be there for the Jackson Hole Symposium and has
Speaker 2: this preview.
Speaker 6: This is the week all Wall Street has been waiting for.
Speaker 6: The Kansas City Fence Annual Jackson Hole Symposium is actually
Speaker 6: an academic conference about economic theory, not current monetary policy.
Speaker 6: Except for the Federal Reserve Chairman's opening remarks on Friday morning,
Speaker 6: Jay Powell isn't expected to give investors a lot of
Speaker 6: detail about the Central banks plans for rate cuts. He
Speaker 6: is expected to say cuts remain on track as inflation
Speaker 6: keeps coming down. The tone he sets, we'll set market
Speaker 6: expectations for the next month until the next policy meeting
Speaker 6: September eighteenth, Wall Street can decide whether the reality of
Speaker 6: Jackson Hole lives up to the hype. Michael McKee, Bloomberg Radio.
Speaker 1: Right and Mike, thanks, So, we do have a deal
Speaker 1: to tell you about this Morning Circle k operator Kushtard
Speaker 1: has made a proposal to take over much larger rival
Speaker 1: seven eleven Owners, seven and I Holdings. A merger would
Speaker 1: create a global network of roughly one hundred thousand convenience stores.
Speaker 2: Now Karen to the latest from the Middle East, Secretary
Speaker 2: of State Anthony Blinkin is set to meet with Israel's
Speaker 2: Prime minister later today, as mediators say they are closing
Speaker 2: in on a deal to halt the war in Gaza
Speaker 2: and free hostages captured by Hamas. Blinken spoke earlier in
Speaker 2: Tel Aviv.
Speaker 7: I'm here as part of an intensive diplomatic effort on
Speaker 7: President Biden's instructions to try to get this agreement to
Speaker 7: the line and ultimately over the line.
Speaker 8: It is time to get done.
Speaker 2: This is Secretary of State Lincoln's ninth trip to the
Speaker 2: Middle East since the conflict began.
Speaker 1: Well back in the US, Nathan Democrats are coming together
Speaker 1: for their convention in Chicago, but infighting over the Israel
Speaker 1: Hamas war threatens to pull them apart. Bloomberg's Amy Morris
Speaker 1: has more.
Speaker 9: The backdrop of the Democratic National Convention this week is
Speaker 9: made up of pro Palaceian protests, incumbents ousted for criticizing Israel,
Speaker 9: and warnings from the left over rising anti Semitism. Now
Speaker 9: as the party tries to pull together in a show
Speaker 9: of unity, Democrats remain split over Israel's war in Gaza.
Speaker 9: Pro Palestinian and pro Israeli groups say they'll be there,
Speaker 9: which means security is tight. Chicago and the DNC expect
Speaker 9: fifty thousand visitors, twenty thousand members of the press, and
Speaker 9: fifty five hundred delegates and more. President Biden speaks tonight,
Speaker 9: Former President Obama speaks tomorrow night, Former President Bill Clinton
Speaker 9: speaks on Wednesday, and Vice President Harris takes the stage
Speaker 9: on Thursday. Amy Moore as Bloomberg Radio.
Speaker 2: Thanks Amy. Vice President Harris spent the day before the
Speaker 2: convention on a bus tour through the battleground state of Pennsylvania.
Speaker 4: We know our country is going to be as strong
Speaker 4: as our willingness.
Speaker 9: To fight for it and to fight for what.
Speaker 2: We stand for.
Speaker 3: You know, and you know what you stand for.
Speaker 9: You know what to fight for.
Speaker 2: When the vice presidents spoke there to supporters in Beaver County, Pennsylvania.
Speaker 2: Harris heads into the convention with the New Washington Post
Speaker 2: ABC News whose IPSOS poll showing her in the lead
Speaker 2: against former President Trump among registered voters. Forty nine percent
Speaker 2: to forty five percent. The poll's margin of er is
Speaker 2: two percent. The same poll last month showed a dead
Speaker 2: heats between Trump and President Biden.
Speaker 1: And Nathan former President. Trump is planning events in four
Speaker 1: swing states during the four days of the convention, including
Speaker 1: a trip to the border later this week, and Bloomberg's
Speaker 1: Ed Baxter has that story.
Speaker 10: Immigration has been a sweet spot for Republicans in their
Speaker 10: attack against Vice President Kamala Harris. Trump will be in Montezuma,
Speaker 10: Pass Thursday, the same day Harris will accept the nomination.
Speaker 10: Now Democratic Arizona Senator Mark Kelly on CBS has heard
Speaker 10: on Bloomberg says the Republicans just go to the border
Speaker 10: for photo ops, but says the truth is Trump is
Speaker 10: standing in the way. I mean, he specifically told my
Speaker 10: Senate colleagues that they could not support this bill because
Speaker 10: he wanted to have this issue for the election. Trump
Speaker 10: is scheduled to get a briefing as well at the border,
Speaker 10: Ed Baxter, Bloomberg Radio said.
Speaker 2: In Ukraine, President Vladimir Lensky says the name of his
Speaker 2: country's incursion into Russia is to create a buffer zone
Speaker 2: between the two countries. His comments come as key of
Speaker 2: has expanded its operation into the Curs region over the weekend.
Speaker 2: It is nightly addressed to the nations. Zelensky made a
Speaker 2: direct appeal to the US, UK and France.
Speaker 11: In every direction, our troops are doing an outstanding job. However,
Speaker 11: when it comes to supplies from our partners, we need
Speaker 11: things to speed up. There are no holidays in war.
Speaker 11: We need decisions, We need timely logistics with the promised
Speaker 11: aid packages.
Speaker 2: Speaking through an interpreter, Ukrainian President Vladimir Lensky said his
Speaker 2: forces have struck two key bridges in the Curs region
Speaker 2: and disrupted some of Moscow's main supply roots.
Speaker 1: And it's time now if for a look at some
Speaker 1: of the other stories making news in New York and
Speaker 1: around the world. And for that we're joined by Bloomberg's
Speaker 1: Michael Barr Michael, good morning.
Speaker 8: Good morning, Karen. Flooding hit the Northeast after heavy rains
Speaker 8: swamped the area. Vehicles were still in the high water,
Speaker 8: especially in New Jersey, and people had to be rescued.
Speaker 8: This stranded driver told ABC seven he was on a
Speaker 8: date in Woodland Park when water enveloped the parking lot
Speaker 8: and his vehicle wound up disabled.
Speaker 1: Point and laugh. You know, it's like, oh that pour
Speaker 1: succer No, we're the sucker.
Speaker 6: To make for shirt.
Speaker 8: Meanwhile, in western Connecticut.
Speaker 1: This water is at least four to five feet high,
Speaker 1: nearly a.
Speaker 8: Foot of rain falling in just hours. Streets and sidewalks
Speaker 8: were suddenly overwhelmed by water moving fast enough to carry
Speaker 8: away cars. Storms sweeping through New York City disrupted flights
Speaker 8: and train service. Tropical storm in Esto became a hurricane
Speaker 8: again as it turned away from Bermuda and headed further
Speaker 8: out in the northeastern Atlantic. Ernesto is sending powerful swells
Speaker 8: toward the US East Coast, generating dangerous rip currents associated
Speaker 8: with at least one depth and prompting many rescues. Many
Speaker 8: East Coast beaches are closed, including in New York. The
Speaker 8: National Hurricane Said in Miami said Ernesto's maximum sustained wins
Speaker 8: we're seventy five miles per hour. That's barely Category one strength.
Speaker 8: The storm is expected to pass near southeastern Newfoundland late
Speaker 8: today and early tomorrow. Alsted Representative George Santos is expected
Speaker 8: to plead guilty today to multiple felony accounts. The New
Speaker 8: York Republican is charged with nearly two dozen counts, including
Speaker 8: wire fraud, money laundering, and theft of public funds. Santo's
Speaker 8: faced twenty years in prison for the twenty three federal
Speaker 8: charges of fraud that the US Attorney's Office has brought
Speaker 8: against him. With the plea deal, no word on whether
Speaker 8: the plea deal will help them avoid jail time. Finally,
Speaker 8: it's that time of the year when parents and kids
Speaker 8: head to stores from back to school shopping. A Bank
Speaker 8: Great survey finds inflation is impacting buying habits, but not
Speaker 8: as much as it was a couple of years ago.
Speaker 8: Bank Great senior analyst Ted Russman.
Speaker 2: About a third of back to school shoppers thirty two
Speaker 2: percent say that inflation is changing.
Speaker 6: The way they buy.
Speaker 1: A couple of years ago that was forty one percent.
Speaker 8: Analyst Ted Rossman says another area as inflation is having
Speaker 8: a greater impact, but back to school's shopping is one
Speaker 8: area where people seem to be feeling a lot better.
Speaker 8: Global News twenty four hours a day and whenever you
Speaker 8: want it with Bloomberg News Now. I'm Michael Barrn. This
Speaker 8: is Bloomberg Karen.
Speaker 1: All right, Michael barr thank you time now for the
Speaker 1: Bloomberg Sports Update with John stash Hour.
Speaker 12: John, Good morning, Good morning, Karen. The little leaguers who
Speaker 12: got to watch the Yankees and Tigers up close in Wayiamsport,
Speaker 12: Pennsylvania saw bizarre game bottom the night day and the
Speaker 12: Yanks led one did nothing. They had scored a run
Speaker 12: without a hit. To that point. There had only been
Speaker 12: nine hits in the game, all singles. But Detroit tied
Speaker 12: the game with two outs of the night off Clay Holmes,
Speaker 12: who blew a safe for a major league leading tenth time.
Speaker 12: After the Yanks reclaimed the lad top of the tenth,
Speaker 12: the Tigers tied it again in the bottom and were
Speaker 12: not done there. We had a one to two pitch
Speaker 12: scrow bowl side that's through for a base hit and
Speaker 12: could well win it the Kid's tree around third to
Speaker 12: Vegas with a throw of the play in the head
Speaker 12: first slide is in time and the Tigers win in
Speaker 12: walk up fashion.
Speaker 8: Three to two over the Yankees.
Speaker 12: Here in Williamsport, ESPN the call of the Parker Meadows
Speaker 12: walk off of Mark Later it was Jason Dominguez making
Speaker 12: that throw from left field. Teams were allowed to add
Speaker 12: a player and the Yanks brought Domingas up from Scranton.
Speaker 12: He had hit four home runs in eight games to
Speaker 12: the Yanks last season before he got hurt. Last night,
Speaker 12: he went zero for four, struck out three times at Cityfield,
Speaker 12: Marlins beat the Mets three to two. The Mets got
Speaker 12: Sterling mart Day back after missing two months with a
Speaker 12: knee injury, but Brandon Nimmo, who homered and the loss,
Speaker 12: then left the game with an achy shoulder. I'll have
Speaker 12: an MRI today. The Mets tonight host Baltimore. The Orioles,
Speaker 12: despite being out hit eleven to three, beat the Red
Speaker 12: Sox four to two in Baltimore, back in the first
Speaker 12: place time with the Yankees. Then Nationals won six to
Speaker 12: four at Philadelphia, and the Giants won four to two
Speaker 12: in Oakland. Last game ever between two Bay Area teams
Speaker 12: as the Aser move into Las Vegas by way of Sacramento.
Speaker 12: In Memphis Reki Matsuyama, but the other day with a
Speaker 12: five shot lead, he won the Saint Jude Golf by two.
Speaker 12: John Stashawer Bloomberg Sports Karen Nathan.
Speaker 8: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 8: and around the world on Bloomberg dot Com and the
Speaker 8: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 2: Good morning, I'm Nathan Hager. Investors are heading into this
Speaker 2: new week with expectations riding high that the Federal Reserve
Speaker 2: is on track to start cutting interest rates next month,
Speaker 2: that all eyes will be on Chairman Powell and his
Speaker 2: speech at Jackson Hole at the end of the week
Speaker 2: to see if he seals in those bets. Joining us
Speaker 2: now to get us ready for what's ahead live in
Speaker 2: our interactive Brookers Studios this morning. Lori Calvacina, head of
Speaker 2: US Equity strategy at RBC Capital Market, It's great to
Speaker 2: have you with us in person this morning, Laurie. As
Speaker 2: we watch S and P on a seven day winning
Speaker 2: streak heading into this week. How much does this rally
Speaker 2: hinge on what Chairman Powell has to say on Friday.
Speaker 7: Well, thanks for having me as all, Nathan, And look,
Speaker 7: I think it's probably his to not mess up at
Speaker 7: this point, not that that's going to be his end goal,
Speaker 7: but I do think that we've settled into the equity
Speaker 7: part of the market, at least just the idea that
Speaker 7: these rate cuts are coming in September. I do feel like,
Speaker 7: at least in my conversations, questions about fifty have been
Speaker 7: dialed down. It does seem like we've sort of I
Speaker 7: wouldn't say we're completely out of the soft patch on
Speaker 7: the economy or the concerns about labor and the consumer,
Speaker 7: but it does seem like we're in a better place
Speaker 7: on that. So, you know, I think at this point
Speaker 7: we need to hear more of the same. You know,
Speaker 7: I would assume that the commentary is going to be
Speaker 7: carefully tailored to match what's been said previously, but as always,
Speaker 7: we're going to have to tune in and.
Speaker 2: See to that point about potentially not being out of
Speaker 2: the rough patch in the economy. We did get some
Speaker 2: pretty positive economic data at the end of the week,
Speaker 2: particularly on retail sales and the dial down of weekly
Speaker 2: jobless claims as well. Do you still have concerns about
Speaker 2: the consumer after what we've heard at the at the
Speaker 2: end of last week.
Speaker 7: So, you know, we've never been in the recession camp.
Speaker 7: We've thought that there was, you know, a moment that
Speaker 7: we've been experiencing right now where consumers are reacting pretty
Speaker 7: profoundly right to the higher interest rate environment. The cumulative
Speaker 7: impact of inflation. As I looked at the retail sales data,
Speaker 7: one thing that struck me was just how how kind
Speaker 7: of back and forth it's been in recent months, you know,
Speaker 7: sort of the idea, at least in my mind, that
Speaker 7: maybe consumers are reacting and then have to go out
Speaker 7: and buy the you know, buy the things and do
Speaker 7: the things they need to do that life goes on.
Speaker 7: They were talking in an earlier segment about back to school, right.
Speaker 7: I mean, it is a great reminder that as long
Speaker 7: as we do have jobs, and that's what we're really
Speaker 7: seeing in that claims data. That's given people so much
Speaker 7: comfort that consumers will go out and do the things
Speaker 7: they need to do, even if they are reacting in
Speaker 7: real time to some of these pressures. And I think
Speaker 7: it's just a very very you know, sort of interesting
Speaker 7: moment that we're in right now. One of the companies
Speaker 7: that reported last week, they had a comment about the
Speaker 7: sort of deferral mindset, and you know, I sort of
Speaker 7: flashed back to kind of the mediate period after COVID.
Speaker 7: I don't know if we you know, exactly where we
Speaker 7: define that, but the idea of demand that was delayed,
Speaker 7: not destroyed, was sort of a phrase. They kind of
Speaker 7: bopped back into my mind, and I think we're going
Speaker 7: to have some puts and takes. I think the data
Speaker 7: is going to be important to watch. In my mind,
Speaker 7: we are going to come out to a better place.
Speaker 2: Yeah, that was some interesting commentary from Home Depot last
Speaker 2: week about this deferral mindset. When we have this idea
Speaker 2: that consumers might be getting a little choosier now in
Speaker 2: this high inflation, high interest rate environment. What sectors do
Speaker 2: well in an environment like this?
Speaker 7: You know, I'm not sure if there's any one particular
Speaker 7: set of sectors or you know, or industries. I do
Speaker 7: think you have to take it company by company. I
Speaker 7: will tell you that we've been neutral the consumer discretionary sector,
Speaker 7: but we've been underweight consumer staples. And if you look
Speaker 7: at consumer staples, it is a quite cheap sector. It's,
Speaker 7: you know, in theory, if you're kind of going into
Speaker 7: an economic soft patch, right, it's one that you might
Speaker 7: think that you want to go into. But I think
Speaker 7: at this point in time, you know, as I read
Speaker 7: through just a very broad array of transcripts from those companies,
Speaker 7: and I'm thinking back, you know, not just this reporting season,
Speaker 7: but going back the last reporting season or two. It
Speaker 7: really seems to me that that's a sector that's been
Speaker 7: very slow to understand the sort of reaction that consumers
Speaker 7: are having. And I do think that they're sort of
Speaker 7: on the front lines of that war, so to speak,
Speaker 7: right now. And that's enough to sort of keep me
Speaker 7: on the sidelines for that sector with an underweight despite
Speaker 7: you know, some attractive valuations on my quant work.
Speaker 2: Just about thirty seconds left, Lourie, But after Chairman Palace
Speaker 2: speech on Friday, we get Nvidia earnings a week from Wednesday.
Speaker 2: I mean, how big a deal is that going to
Speaker 2: be for the rally?
Speaker 7: So I think the AI theme generally, you know, it's
Speaker 7: been a fascinating one to track. I mean, we had
Speaker 7: some you know, disappointments relative to high expectations early on.
Speaker 7: Overlooked parts of this last reporting season. I think we've
Speaker 7: had is that companies are starting to come out and
Speaker 7: talk about how they're trying to use that technology and
Speaker 7: how it's making an impact on the day to day. Now,
Speaker 7: maybe that in and of its office two small potatoes
Speaker 7: for investors and underwhelming, but I do think we've entered
Speaker 7: into a place where you're starting to see some of
Speaker 7: the results manifest.
Speaker 2: This is Bloomberg day Break Today, your morning brief on
Speaker 2: the stories making news from Wall Street to Washington and beyond.
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