WEBVTT - Bloomberg Daybreak: August 30, 2022 - Hour 1 (Radio) 0:00:03.560 --> 0:00:06.920 Live from the Bloomberg Interacted Berger Studios. This is is Bloomberg 0:00:06.960 --> 0:00:10.760 day Break for Tuesday, August thirty two. Coming up this hour, 0:00:11.119 --> 0:00:15.040 Futures Rise. Following the worst two days stock selloff since June. 0:00:15.360 --> 0:00:17.479 A top FED official says he was happy how the 0:00:17.480 --> 0:00:21.040 market reacted to j Powell's Jacksonhole speech and the Biden 0:00:21.079 --> 0:00:24.239 administration said to be preparing to sell a billion dollars 0:00:24.239 --> 0:00:27.520 in arms to Taiwan. New York Mayor Adams provides more 0:00:27.560 --> 0:00:31.120 resources for pregnant women. Plus Ukraine has launched a southern offensive. 0:00:31.200 --> 0:00:34.040 As inspector said to a nuclear plant, I like the bar. 0:00:34.200 --> 0:00:37.440 More ahead, I'm drying. Stature and sports, Aaron Judges fifty 0:00:37.479 --> 0:00:39.520 a film, Rod Game, and a Yankee Loss of the Angel. 0:00:39.560 --> 0:00:45.400 Serena Williams advances at the US Open. That's all trained 0:00:45.400 --> 0:00:48.760 ahead on Bloomberg day Break on Bloomberg Eliving, Free on 0:00:48.880 --> 0:00:53.320 New York, Bloomberg one, Washington, d C, Bloomberg one oh 0:00:53.360 --> 0:00:58.120 six one, Boston, Bloomberg nine sixties and Francisco Syrius XM 0:00:58.160 --> 0:01:00.920 one nine Team and around the world. Old on Bloomberg 0:01:01.000 --> 0:01:07.960 Radio dot Com and via The Bloomberg Business. Good morning, 0:01:07.959 --> 0:01:10.920 I'm Nathan Hager and I'm Karen Moscow u S stock 0:01:11.000 --> 0:01:13.680 Index futures on the rise this morning. We're coming up 0:01:13.680 --> 0:01:15.360 to fundle one on Wall Street, and we check the 0:01:15.360 --> 0:01:18.479 markets every fifteen minutes through on the trading day. On Bloomberg, 0:01:18.880 --> 0:01:21.720 SNP futures up thirty five points down, futures of two 0:01:21.800 --> 0:01:25.160 hundred twenty and Nasdaq futures of one forty four ten 0:01:25.240 --> 0:01:28.840 year Treasury up thirteen thirty seconds three point oh five percent, 0:01:28.959 --> 0:01:31.120 and they yield on the two year three point four 0:01:31.280 --> 0:01:34.320 one percent. And NIMEX screwed oil is down three tenths 0:01:34.360 --> 0:01:37.119 of a percent Nathan Well, Karen. The rise in futures 0:01:37.160 --> 0:01:40.240 follows two straight days of losses on Wall Street. In fact, 0:01:40.280 --> 0:01:43.319 the SMP five hundred and NASDAC one hundred posted their 0:01:43.319 --> 0:01:46.880 worst two day tumble since mid June, following FIT chair J. 0:01:47.040 --> 0:01:50.200 Powell's hawk Is comments on Friday. Aaron Kennon is CEO 0:01:50.280 --> 0:01:53.320 at Clear Harbor Asset Management. There has been a belief 0:01:53.720 --> 0:01:56.720 since perhaps mid June, that the FIT, at some point, 0:01:56.760 --> 0:01:58.720 perhaps even by the end of the year, would be 0:01:58.760 --> 0:02:00.920 in a position where they are looking at data and 0:02:00.960 --> 0:02:03.960 decelerating inflation, and that they may in fact be in 0:02:03.960 --> 0:02:05.920 a position to pivot, and I think what we heard 0:02:05.920 --> 0:02:09.640 on Friday was that's not accurate. Do not fight the Fed. 0:02:09.960 --> 0:02:13.080 You know, if you're predicting a pivot soon, please do 0:02:13.120 --> 0:02:15.880 not bet on it. Naron Kennon with Clear Harbor Asset 0:02:15.919 --> 0:02:18.840 Management says equities could experience a rough patch as the 0:02:18.840 --> 0:02:22.920 FED continues battling inflation. Well. Investors may have been rattled 0:02:22.960 --> 0:02:26.360 by the stock market reaction to Powell's speech Nathan. Minneapolis 0:02:26.360 --> 0:02:29.639 FED President Neil Cash Cary says it was good bye him. 0:02:29.840 --> 0:02:31.800 I assumably it was not exciting to see the stock 0:02:31.840 --> 0:02:35.480 market rallying after our last photo Open Market Committee meeting, 0:02:35.520 --> 0:02:38.280 because I know how committed we all are to getting 0:02:38.280 --> 0:02:42.000 inflation down, and I somehow think the markets were misunderstanding that. 0:02:42.080 --> 0:02:45.240 And I was actually happy to see how share Powell's 0:02:45.360 --> 0:02:48.240 Jackson Hole speech was received. You know, people now understand 0:02:48.280 --> 0:02:51.040 the seriousness of our commitment to getting inflation back down 0:02:51.080 --> 0:02:54.720 to two. Cary said, the US Central Bank is determined 0:02:54.760 --> 0:02:57.880 to contain inflation. The most costly mistake we will make 0:02:58.360 --> 0:03:01.680 is if we get fooled thinking, oh, we've got inflation licked. 0:03:01.720 --> 0:03:04.880 Now let's go cut interest rates. Because the economy is 0:03:04.880 --> 0:03:06.919 showing signs of weakening easy. So the way to deal 0:03:06.960 --> 0:03:09.480 with the lags for me is just to get somewhere 0:03:09.520 --> 0:03:12.080 and sit there until we're really convinced that we've got 0:03:12.160 --> 0:03:15.440 inflation licked. Minneapolis Fed President Neil cash Cary made the 0:03:15.480 --> 0:03:18.800 comments on the Odd Lots podcast with The Bloomberg's Tracy 0:03:18.880 --> 0:03:22.000 Alloway and Joe Wassenthal. Listen to the entire interview wherever 0:03:22.080 --> 0:03:24.640 you get your podcasts well. Interest rates are also in 0:03:24.720 --> 0:03:28.040 focus in Europe here and ECB Chief Economist Philip Blane 0:03:28.120 --> 0:03:30.640 is urging a steady pace of rate hikes to fight 0:03:30.720 --> 0:03:34.520 record inflation. He thinks it will help minimize any negative consequences. 0:03:34.880 --> 0:03:37.000 Where we are now, where the polls fate is zero 0:03:37.680 --> 0:03:40.400 is below annie verse from off the terminal race, we 0:03:40.480 --> 0:03:43.040 said in July, and it's fairly obvious, and the market 0:03:43.040 --> 0:03:46.480 believes that the surveys anticipators is there will be a 0:03:46.520 --> 0:03:49.240 series of hikes coming off. But of course what the 0:03:49.240 --> 0:03:54.360 big debate is exactly how high should the accuminated increased 0:03:54.400 --> 0:03:57.680 fe ECB Chief Economist Philip Blaines comments seemed to push 0:03:57.720 --> 0:04:00.200 back against some of his colleagues who floated the idea 0:04:00.240 --> 0:04:03.040 of a seventy five basis point hike at next week's meeting. 0:04:03.520 --> 0:04:06.560 But the Corporate News now Nathan. Microsoft is outline plan 0:04:06.760 --> 0:04:10.440 changes to the terms of its software licensing agreements in Europe, 0:04:10.480 --> 0:04:14.000 and Bloomberg's Charlie Pellett has that story. It follows complaints 0:04:14.000 --> 0:04:18.920 to antitrust regulators from some European cloud computing service providers 0:04:18.920 --> 0:04:23.119 that the company's practices put rivals at a competitive disadvantage. 0:04:23.520 --> 0:04:27.080 Microsoft says the changes will make it simpler for customers 0:04:27.120 --> 0:04:30.400 of rival cloud service companies in Europe to move their 0:04:30.400 --> 0:04:34.320 existing software to these other networks. It says the new 0:04:34.480 --> 0:04:38.440 terms will also ensure that cloud partners quote have access 0:04:38.480 --> 0:04:42.200 to the products necessary to sell cost effective solutions that 0:04:42.360 --> 0:04:46.400 customers want. In New York, Charlie Pellett, Bloomberg Day Break, 0:04:46.480 --> 0:04:48.640 All right, Charlie, thanks on the earnings front, we get 0:04:48.720 --> 0:04:52.000 quarterly results later this morning from best Buy. Bloomberg's Tom 0:04:52.000 --> 0:04:54.920 Busby has a preview. After cutting its annual profit and 0:04:54.960 --> 0:04:58.000 sales forecast in July, It's expected to be a dismal 0:04:58.160 --> 0:05:01.520 second quarter earnings report from the Minnesota based retailer, as 0:05:01.560 --> 0:05:05.120 if contends with weakening demand for PCs laptops, and other 0:05:05.120 --> 0:05:08.640 consumer electronics u S COMP sales forecast to tumble more 0:05:08.640 --> 0:05:11.599 than eleven percent last quarter. The big focus though, for 0:05:11.680 --> 0:05:15.120 investors the chain's outlook for the all important holiday shopping season. 0:05:15.240 --> 0:05:17.800 Consensus calls for adjusted earnings per share of a dollar 0:05:17.839 --> 0:05:21.560 thirty eight revenue of ten point three five billion dollars. 0:05:21.880 --> 0:05:25.200 I'm Tom Busby, Bloomberg Daybreak. All right, Tom, thank you 0:05:25.240 --> 0:05:28.600 to politics. Now. Bloomberg News has learned the Biden administration 0:05:28.720 --> 0:05:31.440 is preparing to sell one point one billion dollars in 0:05:31.480 --> 0:05:34.480 missiles and ratear support to Taiwan. It would be the 0:05:34.560 --> 0:05:37.800 largest transfer of US weapons to Taiwan in almost two years. 0:05:38.040 --> 0:05:41.800 Although the sale does not offer Taiwan any new military capacity, 0:05:42.200 --> 0:05:44.719 it's still likely to lead to more protests from China. 0:05:45.040 --> 0:05:47.400 And we're watching for a primetime speech later this week 0:05:47.440 --> 0:05:50.599 from President Biden and Karen he'll escalate his criticism of 0:05:50.640 --> 0:05:54.360 what he calls extreme MAGA Republicans. Let's get a preview 0:05:54.360 --> 0:05:57.760 now from Amy Morris and our Bloomberg newsroom in Washington. 0:05:57.960 --> 0:06:00.880 White House officials tell Bloomberg News and in Biden will 0:06:00.880 --> 0:06:03.159 speak about the battle for the soul of the nation 0:06:03.240 --> 0:06:07.080 and will warn that the country's core values, including democracy itself, 0:06:07.160 --> 0:06:11.440 are at stake. Thursday's address from Philadelphia's Independence National Historical 0:06:11.480 --> 0:06:14.520 Park will condemn the GOP for what Biden regards is 0:06:14.560 --> 0:06:17.680 their threats to US rights and freedoms, and sharpen his 0:06:17.720 --> 0:06:20.560 attacks on Republicans as he works to reframe the mid 0:06:20.680 --> 0:06:24.520 term elections, which are traditionally punishing for first term presidents. 0:06:24.560 --> 0:06:27.839 In Washington, I'm Amy Morris Bloomberg Day break Right, Amy Thanks. 0:06:27.839 --> 0:06:30.520 President Biden's approval ratings have been on the rise. The 0:06:30.560 --> 0:06:34.040 poll tracking website five thirty eight now says Democrats are 0:06:34.080 --> 0:06:38.640 now slightly favored to keep control of the Senate in November. Republicans, meanwhile, 0:06:38.680 --> 0:06:42.320 are dealing with multiple investigations against former President Donald trumb 0:06:42.520 --> 0:06:46.240 Bloomberg political contributor Jeanie shehan Zano says the more the 0:06:46.240 --> 0:06:48.520 former president is in the news, the better it is 0:06:48.600 --> 0:06:51.840 for Democrats. Republicans know that they would like to turn 0:06:51.880 --> 0:06:54.880 their focus on Joe Biden. They'd like to talk about inflation. 0:06:55.000 --> 0:06:57.320 They'd like to talk about his age. They'd like to 0:06:57.320 --> 0:06:59.880 talk about a whole bunch of things. They haven't gotten 0:07:00.160 --> 0:07:03.599 oxygen in the room because Donald Trump takes it all up. 0:07:03.839 --> 0:07:07.839 Bloomberg Politics contributor Jeanie Sheehan Zeno spoke with our Washington 0:07:07.880 --> 0:07:11.000 corresponded Joe Matthew on Bloomberg Sound On. Catch the program 0:07:11.080 --> 0:07:14.600 weekdays at five pm Eastern on Bloomberg Radio Straight Ahead 0:07:14.600 --> 0:07:17.240 your latest local headlines plus a check of sports. And 0:07:17.440 --> 0:07:24.400 this is Bloomberg com Sparing. It's five oh seven on 0:07:24.440 --> 0:07:26.760 Wall Street where a seventy five degrees in Central Park 0:07:26.800 --> 0:07:28.800 got some late road work at Scott the northbound New 0:07:28.880 --> 0:07:32.600 Jersey turned quite car lanes closed between exit six and twelve. 0:07:33.080 --> 0:07:36.120 With the details Shortland traffic. First, Michael Bars here with 0:07:36.120 --> 0:07:38.000 what else is going on in New York and around 0:07:38.000 --> 0:07:40.440 the world. Good morning Michael, Good morning Nathan. New York 0:07:40.440 --> 0:07:43.680 City will get pregnant women more support and expanded access 0:07:43.720 --> 0:07:47.160 to resources. It's an effort to address health disparities and 0:07:47.200 --> 0:07:51.000 make pregnancy safer. New York City Mayor Eric Adams says 0:07:51.040 --> 0:07:54.400 that he is signing seven bills into law making pregnancy 0:07:54.520 --> 0:07:57.440 safer and bridged the gap for maternal healthcare for black 0:07:57.480 --> 0:08:01.120 women and the numbers of clear Black women are nine 0:08:01.320 --> 0:08:04.840 times more likely to die of pregnancy. Of your Lady 0:08:04.960 --> 0:08:08.760 coises than white women in New York City that is 0:08:08.800 --> 0:08:13.480 an alarming unacceptable number. Mayor Adams says the bills will 0:08:13.560 --> 0:08:17.680 do several things, including establishing a maternal Bill of Rights 0:08:18.040 --> 0:08:21.480 and for women to be free from discrimination. A team 0:08:21.760 --> 0:08:24.320 lost an arm after an impact in the New York 0:08:24.320 --> 0:08:27.480 City subway. The fifteen year old's arm was severed after 0:08:27.520 --> 0:08:31.760 he struck a north bound our train in Jackson Hides, Queens. 0:08:32.240 --> 0:08:35.520 He's currently in stable condition at Bellevue Hospital. Police at 0:08:35.559 --> 0:08:37.800 the team is not believed to have been the victim 0:08:37.800 --> 0:08:41.520 of a crime, and they're looking at surveillance footage. Ukraine's 0:08:41.559 --> 0:08:45.800 military says it is advancing in Russian held territory just 0:08:46.040 --> 0:08:50.320 north of the Crimea Peninsula. Ukrainian forces launched ground assaults 0:08:50.360 --> 0:08:53.720 in the Kershawon region. It comes as the International Atomic 0:08:53.880 --> 0:08:58.040 Energy Agency heads to the Russian occupied nuclear power plant 0:08:58.200 --> 0:09:01.400 to the northeast in Ukraine. There is no safe water 0:09:01.480 --> 0:09:03.560 to drink from the tap for up to a hundred 0:09:03.559 --> 0:09:07.000 eighty thousand people in Jackson, Mississippi. Flood waters from the 0:09:07.000 --> 0:09:10.240 Pearl River are going down, knocking out the main pumping station. 0:09:10.600 --> 0:09:13.640 Mississippi Governor Tate reeves we are drafting a state of 0:09:13.640 --> 0:09:18.720 emergency declaration with regards to Jackson's failure to produce running water, 0:09:19.320 --> 0:09:22.480 Governor Reeves says that also means there is less or 0:09:22.480 --> 0:09:26.280 no water to fight fires and flush toilets. Climate researchers 0:09:26.280 --> 0:09:29.839 are sounding the alarm morning that Greenland's melting ice sheet 0:09:30.040 --> 0:09:33.200 will eventually raise global sea levels by about ten inches. 0:09:33.600 --> 0:09:36.040 According to the report in the journal Nature, The fear 0:09:36.120 --> 0:09:39.720 now is that it may be inevitable. Author and science 0:09:39.840 --> 0:09:44.240 journalists Guy Events says, nations have to start planning now 0:09:44.320 --> 0:09:48.439 for future climate refugees and mass migration. People will not 0:09:48.559 --> 0:09:51.240 be able to adapt in certain places, they will have 0:09:51.320 --> 0:09:55.000 to move. Author Guy Events Global Needs twenty four hours 0:09:55.000 --> 0:09:57.920 a day on air and on Bloomberg Quicktake, powered by 0:09:57.960 --> 0:10:01.920 more than journalists now listen more than twenty countries. High 0:10:01.960 --> 0:10:09.880 Michael Barr and this is Bloomberg Maintain. Thanks Michael. Front 0:10:10.080 --> 0:10:12.000 to five ten on Wall Street. Time for the Bloomberg 0:10:12.040 --> 0:10:15.120 Sports Update. Good morning, John Stanshammer, Good morning Nathan Yankees. 0:10:15.120 --> 0:10:17.560 After a couple of losson's in Oakland, began a series 0:10:17.559 --> 0:10:20.760 in Anaheim and in the eighth inning, a milestone will 0:10:20.800 --> 0:10:23.319 be one one to judge the pitch swung on a 0:10:23.480 --> 0:10:29.040 hit deep center field twelve on the run judge number fifty, 0:10:32.520 --> 0:10:37.360 end of the rock pile in center field in Anaheim. 0:10:37.520 --> 0:10:41.760 It's four three angels after home run number fifty. Per 0:10:41.920 --> 0:10:45.000 Aaron John am to call, he's only the tenth player 0:10:45.000 --> 0:10:48.120 in baseball history to have two fifty home run seasons. 0:10:48.160 --> 0:10:50.240 And he gets there before even get into September. And 0:10:50.280 --> 0:10:53.480 the question now is if Judge Ken break Roger Marris's 0:10:53.520 --> 0:10:56.480 Yankee and American League record of sixty one homers angels 0:10:56.480 --> 0:10:59.160 one four three on the show, Ohtani two run homer 0:10:59.240 --> 0:11:02.439 his twenty nine that came off Frankie Mantash's record with 0:11:02.600 --> 0:11:04.840 the Yanks in the ages just four and eleven. The 0:11:04.920 --> 0:11:07.520 Dodgers with a tenant and win in Miami, they've got 0:11:07.520 --> 0:11:10.480 a record that's fifty one games over five hundred. Dodgers 0:11:10.480 --> 0:11:13.480 start a series tonight with the Mets at City Field, 0:11:13.480 --> 0:11:15.719 where across the parking lot at the US Open last 0:11:15.840 --> 0:11:18.600 night a hot ticket to see Serena Williams not the 0:11:18.640 --> 0:11:21.880 final match of her career. She beat Donka Covinet and 0:11:21.920 --> 0:11:24.199 straight says, so she'll be back tomorrow night for a 0:11:24.320 --> 0:11:26.439 second round match with a net count of right and 0:11:26.520 --> 0:11:29.480 she is the tournament's second seed. The Knicks are said 0:11:29.520 --> 0:11:31.480 to be close to an agreement with R. J. Barrett 0:11:31.800 --> 0:11:34.920 a four year, one hundred and twenty million dollar extensions, 0:11:34.960 --> 0:11:36.959 So if they are to make a trade with Utah 0:11:37.040 --> 0:11:40.520 for Donovan Mitchell, it will not include Barrett. NFL teams 0:11:40.640 --> 0:11:42.880 must cut their rosters today, and it's surprise the forty 0:11:42.960 --> 0:11:46.680 Niners are keeping Jimmy Garoppolo as a backup quarterback. John 0:11:46.720 --> 0:11:50.600 stash were Bloomberg Sports Nathan Okay, John, Thanks, futures moving 0:11:50.640 --> 0:11:52.920 back up. I got SMP futures up thirty points, South 0:11:52.920 --> 0:11:55.320 futures up a hundred ninety two. Nest At futures are 0:11:55.400 --> 0:11:58.720 higher by one d eight points, a gain of one percent. 0:11:58.920 --> 0:12:01.360 Let's in your treasury, you'll right now three point zero 0:12:01.440 --> 0:12:08.480 five percent. This is Bloomberg Bloomberg eleven three oh Weather 0:12:08.600 --> 0:12:10.680 mostly sunny, maybe a late day shower going up to 0:12:10.720 --> 0:12:13.640 near ninety degrees and he showers and early tomorrow clearing 0:12:13.760 --> 0:12:16.560 eyes in the upper eighties. Sunny, less humid for Thursday. 0:12:16.559 --> 0:12:23.960 With the eight five Right Now, markets, headlines and breaking 0:12:23.960 --> 0:12:26.840 news twenty four hours a day at Bloomberg dot Com, 0:12:26.960 --> 0:12:30.599 the Bloomberg Business at and at Bloomberg quicktape. He's a 0:12:30.640 --> 0:12:41.160 Bloomberg business flash, and I'm Karen. Moscow stops rising this morning, 0:12:41.240 --> 0:12:44.679 and US futures are as well as investor sentiments stabilizes 0:12:44.720 --> 0:12:47.160 following a route sparked by the Federal Reserve signal of 0:12:47.200 --> 0:12:51.920 a sustained period of restrictive monetary polictic qual inflation, Treasury 0:12:52.000 --> 0:12:54.360 yields in the dollar declining. We checked the markets every 0:12:54.360 --> 0:12:58.000 fifteen minutes throughout the trading day on Bloomberg SNP futures 0:12:58.000 --> 0:13:00.280 at twenty nine points, now futures up a hundred eighty 0:13:00.360 --> 0:13:02.960 nast egg futures up one hundred twenty. The decks in 0:13:03.000 --> 0:13:05.559 Germany's at one point three percent. The ten year treasury 0:13:05.559 --> 0:13:08.120 of eleven thirty seconds you have three point oh five percent. 0:13:08.200 --> 0:13:11.080 They yield on the two year three point four one percent. 0:13:11.600 --> 0:13:14.240 Nimex Scrude oil is down one point six percent on 0:13:14.320 --> 0:13:16.840 a dollar fifty and ninety five dollars fifty three cents 0:13:16.840 --> 0:13:19.360 of barrel comics gold down a quarter percent or four 0:13:19.440 --> 0:13:22.640 dollars thirty cents at seventeen forty five forty announce. The 0:13:22.760 --> 0:13:25.760 euro is at one point zero zero three three against 0:13:25.760 --> 0:13:28.320 the dollar. British found one point one seven four two 0:13:28.559 --> 0:13:30.600 and the end at one thirty eight point three one 0:13:30.679 --> 0:13:33.240 and bitcoin is at one point one percent at twenty 0:13:33.280 --> 0:13:36.280 thousand and three hundred ninety dollars. Today, we are watching 0:13:36.320 --> 0:13:38.760 for several reports on home prices at at nine a m. 0:13:38.800 --> 0:13:41.520 Wall Street time at tennis, a Jolts jobs report, and 0:13:41.559 --> 0:13:45.280 consumer confidence and best buy in Hewlett Packard Enterprise among 0:13:45.320 --> 0:13:49.080 companies scheduled to report earnings today. That's a Bloomberg business flash. 0:13:49.080 --> 0:13:51.600 Now here's Muchael Barr with more unless going on around 0:13:51.640 --> 0:13:54.920 the world. Muncle, Good morning, Good morning, Karen. Ukrainian Force 0:13:55.000 --> 0:13:58.880 has launched ground assaults in the Curson region of southern Ukraine. 0:13:59.160 --> 0:14:01.800 It comes as an inspector's add to the nuclear plant 0:14:01.880 --> 0:14:05.520 to the northeast from the latest defensive. President Joe Biden 0:14:05.559 --> 0:14:08.960 plans to deliver a prime time speech Thursday in Philadelphia, 0:14:09.080 --> 0:14:12.520 sailing Republicans for what he regards as their threats to 0:14:12.800 --> 0:14:16.319 US rights and freedom. Retirement will have to wait at 0:14:16.360 --> 0:14:19.960 the US Open. Serena Williams advanced after her first round 0:14:20.000 --> 0:14:24.040 win last night over Nanka Kovin. In baseball, the Yankees 0:14:24.200 --> 0:14:27.480 lost to the Angels for three, but Aaron Judge did 0:14:27.520 --> 0:14:30.200 his fiftieth home run of the season, Judge became one 0:14:30.280 --> 0:14:33.920 of ten players in Major League history with multiple fifty 0:14:34.080 --> 0:14:39.120 homer seasons. Alright, a run the Red Sox and Giants lost. 0:14:39.480 --> 0:14:42.280 Global News twenty four hours a day on air and 0:14:42.440 --> 0:14:46.200 on Bloomberg Quit Take, powered by more journalists endlist, more 0:14:46.240 --> 0:14:49.760 than a hundred twenty countries. Michael barn this is Bloomberg, Nathan, 0:14:49.920 --> 0:14:52.560 the verdict is in. Thank you, Michael. We're coming up 0:14:52.560 --> 0:14:54.720 to five twenty on Wall Street Life in the Bloomberg 0:14:54.760 --> 0:14:58.040 Interactive Broker Studios. This is Bloomberg Daybreak. We want to 0:14:58.080 --> 0:15:01.120 turn now to politics because, as Michael mentioned, we are 0:15:01.160 --> 0:15:05.360 expecting a rare primetime speech from President Biden later on 0:15:05.400 --> 0:15:07.640 this week that really could set the tone for the 0:15:07.640 --> 0:15:13.280 mid term elections. Bloomberg Government reporter Emily Wilkins joins us now, Emily, 0:15:13.600 --> 0:15:17.360 good morning. As Michael mentioned, the President is expected to 0:15:17.760 --> 0:15:21.480 blast Republicans in this address. What more do we know 0:15:21.520 --> 0:15:24.080 about what the president plans to say on Thursday night? 0:15:24.520 --> 0:15:27.960 So Biden is dusting off his playbook. He's going to 0:15:28.040 --> 0:15:30.240 come in and start talking again about the battle for 0:15:30.320 --> 0:15:33.680 the soul of the nation. He's going to slam Republicans 0:15:33.720 --> 0:15:36.000 for what he says is a threat to US rights 0:15:36.000 --> 0:15:39.640 and freedoms. I think abortion rights, think things that deal 0:15:39.680 --> 0:15:43.040 with elections, access to elections, access to the ballot box, 0:15:43.320 --> 0:15:46.320 and think as well the thought addressing the fact that 0:15:46.400 --> 0:15:49.480 there are still some Republican candidates out there as well 0:15:49.480 --> 0:15:52.960 as some Republicans who have continually pushed the false claim 0:15:53.040 --> 0:15:56.800 that the election was stolen. And so expect Biden to 0:15:56.840 --> 0:15:59.120 mention all of that. This is coming at a point 0:15:59.120 --> 0:16:02.480 where things are up for the Democrats. Um, it's still 0:16:02.520 --> 0:16:04.440 going to be a stretch for them to potentially hold 0:16:04.480 --> 0:16:06.680 the House, but things are looking much better for them 0:16:06.760 --> 0:16:10.120 to continue to hold the Senate. UM. Biden's poll numbers 0:16:10.120 --> 0:16:13.040 have ticked slightly up they were on the love of July. 0:16:13.080 --> 0:16:16.120 There's still only at pent so less than fifty, but 0:16:16.280 --> 0:16:18.920 once again better than they were. And so this is 0:16:18.960 --> 0:16:21.880 really a moment where Biden's trying to seize the momentum 0:16:22.000 --> 0:16:23.720 to get out there to be in front of the 0:16:23.760 --> 0:16:27.160 American people and the message that he's pushing. This isn't 0:16:27.200 --> 0:16:29.520 a new one. Democrats have been talking about the maga 0:16:29.560 --> 0:16:33.320 Republicans and the threat that Republicans posed really for months 0:16:33.360 --> 0:16:35.200 at this point, and I think that the fact the 0:16:35.200 --> 0:16:37.640 President is really getting out there on the campaign trail 0:16:37.840 --> 0:16:39.720 kind of shows that we're at the point where things 0:16:39.760 --> 0:16:42.720 are very much shifting from thoughts of legislating to thoughts 0:16:42.720 --> 0:16:46.280 of campaigning. We're really going to see things get underway 0:16:46.840 --> 0:16:50.520 after Labor Day. It is interesting, though, because, as you mentioned, 0:16:50.800 --> 0:16:54.480 the Democrats are sort of writing this wave of momentum 0:16:54.480 --> 0:16:57.160 that's driven in large part, one could argue by the 0:16:57.280 --> 0:17:02.400 legislative wins that Democrats have seen over the last several weeks. Uh, 0:17:02.600 --> 0:17:05.080 is there a risk for the president to sort of 0:17:05.160 --> 0:17:10.120 go back to this message of Republicans being anti democratic, 0:17:10.160 --> 0:17:14.399 the semi fascism line that a number of Republicans have 0:17:14.520 --> 0:17:18.240 seized on is going too far. I mean, certainly they're 0:17:18.240 --> 0:17:21.440 always going to be criticisms of the president after any 0:17:21.480 --> 0:17:24.040 sort of speech, and I think that, you know, there's 0:17:24.080 --> 0:17:26.760 definitely debate to be had over exactly how far there 0:17:26.760 --> 0:17:30.280 should it should go. Biden came in and really expressed 0:17:30.320 --> 0:17:33.119 himself as a president who was going to be bipartisan, 0:17:33.160 --> 0:17:35.360 who was going to work across the aisle. He does 0:17:35.400 --> 0:17:37.040 have some things he can point to, right He has 0:17:37.080 --> 0:17:40.000 that infrastructure bill, he has the semiconductor bill. Both of 0:17:40.000 --> 0:17:43.320 those were done with bipartisan support. At the same point, 0:17:43.359 --> 0:17:46.080 when Democrats look at their strategy and look at the playbook, 0:17:46.480 --> 0:17:48.600 what they see is that what they really need to 0:17:48.640 --> 0:17:51.960 do is kind of cast the Republican Party as just 0:17:52.040 --> 0:17:55.280 something that's not in the best interest of Americans. Republicans, 0:17:55.320 --> 0:17:57.280 of course, have pushed back, saying that if you look 0:17:57.280 --> 0:17:59.639 at high inflation prices, you look at gas prices that 0:17:59.640 --> 0:18:02.119 are still a way too high, this is the Democrats 0:18:02.119 --> 0:18:04.240 fall and they are going to rally behind a number 0:18:04.280 --> 0:18:07.439 of policies to really help the economy. Uh, They've been 0:18:07.560 --> 0:18:09.800 very focused on on the issues. When I've talked to 0:18:09.840 --> 0:18:12.320 Republican candidates and tried to get them to talk about 0:18:12.520 --> 0:18:16.199 the election or abortion, they're very quite quickly paid it 0:18:16.240 --> 0:18:19.440 back to the overall agenda. And that's what Republicans are 0:18:19.440 --> 0:18:23.199 really banking on in their messaging. In our last minute here, Emily, 0:18:23.240 --> 0:18:27.080 we've had a pretty significant geopolitical development word of a 0:18:27.240 --> 0:18:33.520 pretty sizeable arms sale coming from the US to Taiwan. Yeah, 0:18:33.560 --> 0:18:37.560 we are hearing that the State Department is prepared to 0:18:37.600 --> 0:18:40.440 sell one point one billion dollars and missiles and radar 0:18:40.480 --> 0:18:43.520 support to Taiwan. Now, Congress has to sign off on 0:18:43.600 --> 0:18:46.080 this package, but it's very likely that they're going to 0:18:46.160 --> 0:18:49.520 do so given the wide bipartisan support we've seen from Taiwan. 0:18:49.880 --> 0:18:52.880 I mean, we've seen a Democratic Senator at Market go there, 0:18:52.920 --> 0:18:55.879 We've seen Republicans Senator Marsha Blackburn go there just in 0:18:55.880 --> 0:18:58.479 the recent weeks, and of course there was a Speaker 0:18:58.480 --> 0:19:02.119 Pelosi's historic trip earlier this month. So you're really seeing 0:19:02.160 --> 0:19:05.000 this wide support. And this comes at a time where, 0:19:05.119 --> 0:19:08.639 you know, China and the relationship between Beijing and Washington 0:19:09.080 --> 0:19:12.239 has really ratcheted up in terms of tension. China has 0:19:12.280 --> 0:19:15.560 continued to send warships and aircraft to the Taiwan Strait 0:19:15.640 --> 0:19:18.800 on a daily basis, and you're seeing this willingness for 0:19:18.880 --> 0:19:22.520 Congress to continue to engage, even though tensions in the 0:19:22.560 --> 0:19:26.399 region have been particularly high, even before Speaker Pelosi's trapping 0:19:26.520 --> 0:19:29.679 and certainly afterwards. Thanks Emily good having on with us 0:19:29.760 --> 0:19:33.399 this morning. Bloomberg Government reporter Emily Wilkins keeping track of 0:19:33.440 --> 0:19:36.919 all the developments for US from the nation's capital, looking 0:19:37.000 --> 0:19:40.960 at developments on Wall Street. Futures are bouncing back. We've 0:19:41.000 --> 0:19:43.760 got SMP futures up thirty two points right now, DAL 0:19:43.920 --> 0:19:47.359 futures highed by two hundred nine NASTAC futures up a 0:19:47.440 --> 0:19:49.880 hundred thirty four points, and the tenure treasury is up 0:19:49.880 --> 0:19:53.320 eleven thirty seconds now the yield three point zero six 0:19:53.520 --> 0:19:56.679 per cent coming up. More on the market recovery and 0:19:56.720 --> 0:20:00.639 why one prominent fed voice is saying he's happy about 0:20:00.680 --> 0:20:03.639 the two day market slide. That's all straight ahead. On 0:20:03.640 --> 0:20:09.480 Bloomberg Daybreak, Bloomberg eleven three oh weather, sunshine, chance for 0:20:09.480 --> 0:20:12.000 a late day shower today going up to near ninety degrees, 0:20:12.040 --> 0:20:14.359 any showers and early tomorrow will have highs in the 0:20:14.400 --> 0:20:17.119 uper eighties once again, mid eighties, sunny and less humid 0:20:17.160 --> 0:20:23.080 for Thursday. Right now seventy five in Central Park, broadcasting 0:20:23.119 --> 0:20:26.840 live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.960 --> 0:20:30.760 Bloomberg E Living frem to Washington, d C. Bloomberg on 0:20:31.040 --> 0:20:34.280 to Boston, Bloomberg one O six one does San Francisco, 0:20:34.320 --> 0:20:37.520 Bloomberg nine sixty to the country, Sirius XM to the 0:20:37.600 --> 0:20:40.960 one nineteen and around the globe, the Bloomberg Business and 0:20:41.040 --> 0:20:51.040 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 --> 0:20:56.439 I'm Karen Moscow. We are just about four hours away 0:20:56.480 --> 0:20:58.399 from the open of US trading. Let's get you up 0:20:58.440 --> 0:20:59.840 to date on the news you need to know. At 0:20:59.840 --> 0:21:03.080 the sour futures are bouncing back after two straight days 0:21:03.080 --> 0:21:06.520 of losses. On Wall Street. The n P five NASDACK 0:21:06.560 --> 0:21:09.840 one hundred posted their worst two day tumbles since mid June. 0:21:10.119 --> 0:21:13.640 Following a FED chair J Powell's hawkish comments on Friday, 0:21:13.840 --> 0:21:16.960 Terry Spath, as chief investment officer, was Zumo Wealth, the 0:21:17.000 --> 0:21:20.280 markets are suits because they're afraid that the FED could 0:21:20.680 --> 0:21:24.159 create a hard landing. Looking forward into September, what we're 0:21:24.160 --> 0:21:27.000 gonna want to try and anticipate is if we see 0:21:27.040 --> 0:21:29.680 a seventy five bases rise, which I think is a 0:21:29.760 --> 0:21:33.800 very high probability and increasing probability, is that digested as 0:21:33.920 --> 0:21:36.920 bad news or as good news? Zuma Wealth ce IO 0:21:37.160 --> 0:21:40.760 Terry Spath says she expects continued market volatility in the 0:21:40.840 --> 0:21:43.040 short term. While the market may have been rattled by 0:21:43.040 --> 0:21:46.160 powell speech care and Minneapolis Fed President Neil cash Car, 0:21:46.160 --> 0:21:48.439 he says he was comforted by the sell off. I 0:21:48.520 --> 0:21:51.760 was actually happy to see how share Pell's Jackson Hole 0:21:51.800 --> 0:21:54.959 speech was received. People now understand the seriousness of our 0:21:55.000 --> 0:21:58.280 commitment to getting inflation back down to two. Minneapolis FED 0:21:58.320 --> 0:22:01.080 President Neil cash Cary spoke on The Odd Lots podcast 0:22:01.119 --> 0:22:04.119 with Bloomberg's Tracy Alway and Joe Wis and Thal. Listen 0:22:04.160 --> 0:22:07.480 to the entire interview wherever you get your podcasts well, Nathan. 0:22:07.520 --> 0:22:10.440 Interest rates are in focus in Europe. ECB Chief economist 0:22:10.480 --> 0:22:13.280 Philip Lane seemed to question the idea of a seventy 0:22:13.280 --> 0:22:16.240 five basis point hike at next week's meeting. We think 0:22:16.240 --> 0:22:18.479 about the next couple of years, We're not necessarily going 0:22:18.520 --> 0:22:20.520