1 00:00:02,480 --> 00:00:12,080 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. Good morning, I'm Nathan 2 00:00:12,119 --> 00:00:15,080 Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're 3 00:00:15,120 --> 00:00:16,640 Speaker 1: following today, Karen. 4 00:00:16,720 --> 00:00:19,439 Speaker 2: Stocks are coming off their worst week since March of 5 00:00:19,520 --> 00:00:23,639 Speaker 2: last year after another disappointing jobs report revived concerns the 6 00:00:23,680 --> 00:00:26,840 Speaker 2: economy is cooling and the Fed is moving too slowly 7 00:00:26,920 --> 00:00:29,960 Speaker 2: to rescue it. But speaking with Bloomberg's David Gura over 8 00:00:30,000 --> 00:00:33,720 Speaker 2: the weekend of the Texas Tribune Festival, Treasury Secretary Janet 9 00:00:33,800 --> 00:00:36,960 Speaker 2: Yellen said she is not yet worried overall. 10 00:00:37,080 --> 00:00:41,640 Speaker 3: I would say for the US the kinds of metrics 11 00:00:41,680 --> 00:00:46,360 Speaker 3: that we would monitor that would summarize risks, whether it's 12 00:00:46,440 --> 00:00:53,040 Speaker 3: asset valuations or the degree of leverage. Things look good. 13 00:00:53,120 --> 00:00:56,400 Speaker 3: There are not I don't see red lights flashing. 14 00:00:56,720 --> 00:01:00,240 Speaker 2: Treasury Secretary Janet Yellen, speaking with Bloomberg's David Gurra, she 15 00:01:00,280 --> 00:01:03,120 Speaker 2: reiterated her view that the US economy has reached a 16 00:01:03,240 --> 00:01:06,440 Speaker 2: soft landing, even as job growth weekends. 17 00:01:06,400 --> 00:01:08,839 Speaker 1: Well, Nathan, traders will now be keeping a close eye 18 00:01:08,840 --> 00:01:12,240 Speaker 1: on the next key economic data point. On Wednesday, we 19 00:01:12,319 --> 00:01:15,600 Speaker 1: get the Consumer Price Index report for the month of August, 20 00:01:15,640 --> 00:01:19,800 Speaker 1: and we get more from Bloomberg Market's Live strategist Mary Nicola. 21 00:01:19,680 --> 00:01:22,480 Speaker 4: It was almost up until a labor market report that 22 00:01:22,520 --> 00:01:25,280 Speaker 4: the CPI was dismissed, that labor market was going to 23 00:01:25,280 --> 00:01:27,360 Speaker 4: give us an inclination of what the Fed was going 24 00:01:27,440 --> 00:01:29,920 Speaker 4: to do. And of course now that that's not the case, 25 00:01:30,400 --> 00:01:32,880 Speaker 4: really the onus goes back on CPI. If you get 26 00:01:32,880 --> 00:01:36,920 Speaker 4: a weaker number, then obviously it could precipitate expectations of 27 00:01:36,959 --> 00:01:40,039 Speaker 4: a jumbo rit cut of fifty basis points because of 28 00:01:40,080 --> 00:01:42,200 Speaker 4: the fact that it tells you that the FED should 29 00:01:42,240 --> 00:01:45,600 Speaker 4: no longer be concerned about inflation. However, you get an 30 00:01:45,640 --> 00:01:48,160 Speaker 4: upside surprise, and then it makes the FED a little 31 00:01:48,160 --> 00:01:51,160 Speaker 4: bit more cautious because of the fact that the inflation 32 00:01:51,280 --> 00:01:53,360 Speaker 4: genie is not fully back in the bottle. 33 00:01:53,680 --> 00:01:57,080 Speaker 1: Bloomberg Market's Live strategist Mary Nicola says, a day after 34 00:01:57,120 --> 00:02:00,680 Speaker 1: we get the CPI, investors will get another infla reading 35 00:02:00,680 --> 00:02:03,160 Speaker 1: on Thursday with producer prices. 36 00:02:02,680 --> 00:02:05,960 Speaker 2: For the month of August when Asia karen deflation risk 37 00:02:06,040 --> 00:02:08,400 Speaker 2: is rising in China. We get more on that from 38 00:02:08,440 --> 00:02:11,880 Speaker 2: Bloomberg Daybreak Asia anchor Brian Curtis and Hong Kong. 39 00:02:11,840 --> 00:02:15,839 Speaker 5: China's consumer prices rose less than expected. Last month, it's 40 00:02:15,880 --> 00:02:19,440 Speaker 5: more data showing that households are simply not spending. The 41 00:02:19,520 --> 00:02:22,359 Speaker 5: CPI gained six tenths of a percent from a year earlier, 42 00:02:22,600 --> 00:02:25,320 Speaker 5: compared to a forecast of seven tenths of a percent. 43 00:02:25,680 --> 00:02:28,480 Speaker 5: In the meantime, factory gate price has slid one point 44 00:02:28,480 --> 00:02:31,519 Speaker 5: eight percent from a year ago. Economists had expected a 45 00:02:31,600 --> 00:02:34,799 Speaker 5: drop of one point five percent. Former Central Bank Governor 46 00:02:34,840 --> 00:02:38,920 Speaker 5: E Gung has called on policymakers to fight deflationary pressures 47 00:02:39,240 --> 00:02:42,360 Speaker 5: and do it right now. In Hong Kong. Brian Curtis, 48 00:02:42,400 --> 00:02:43,680 Speaker 5: Bloomberg Radio, All. 49 00:02:43,680 --> 00:02:46,160 Speaker 1: Right, Brian, thank you. Now let's get the latest in 50 00:02:46,200 --> 00:02:49,560 Speaker 1: the presidential race. Kamala Harris and Donald Shrump are getting 51 00:02:49,560 --> 00:02:52,880 Speaker 1: ready for their first and for now only debate tomorrow 52 00:02:53,000 --> 00:02:55,840 Speaker 1: night in Philadelphia, and the race is air tied with 53 00:02:55,960 --> 00:02:58,799 Speaker 1: fifty seven days until the election. The latest New York 54 00:02:58,840 --> 00:03:01,400 Speaker 1: Times Siena College pull has Trump in the lead over 55 00:03:01,520 --> 00:03:05,760 Speaker 1: Harris among registered voters by just one percentage point forty 56 00:03:05,760 --> 00:03:09,240 Speaker 1: eight percent forty seven percent. Nikki Hayley was the last 57 00:03:09,240 --> 00:03:12,400 Speaker 1: Republican to challenge Trump in the primary. She says Harris 58 00:03:12,720 --> 00:03:13,440 Speaker 1: is vulnerable. 59 00:03:13,480 --> 00:03:17,239 Speaker 6: Tomorrow night, you look at Kamala Harrison. It's quite remarkable. 60 00:03:17,320 --> 00:03:20,280 Speaker 6: She never had a debate, she never had a primary, 61 00:03:20,400 --> 00:03:23,320 Speaker 6: she never had anyone vote for her, and they basically 62 00:03:23,360 --> 00:03:25,200 Speaker 6: took her and in forty eight hours they put her 63 00:03:25,240 --> 00:03:28,119 Speaker 6: back out there and she was this whole new candidate. 64 00:03:28,480 --> 00:03:30,800 Speaker 1: And following the debate, Harris plans to travel to key 65 00:03:30,919 --> 00:03:35,840 Speaker 1: battleground states, including North Carolina on Thursday. That state's Democratic governor, 66 00:03:35,960 --> 00:03:38,680 Speaker 1: Roy Cooper says he knows the race is tied. 67 00:03:39,080 --> 00:03:40,440 Speaker 7: There's no question about it. 68 00:03:40,440 --> 00:03:43,240 Speaker 2: It's close here in North Carolina it always is. 69 00:03:43,760 --> 00:03:46,760 Speaker 8: This was Biden Harris's closest loss. 70 00:03:46,360 --> 00:03:50,400 Speaker 1: In twenty twenty, only one point three percent. Roy Cooper 71 00:03:50,440 --> 00:03:53,680 Speaker 1: and Nikki Haley were both guests on CBS's Face the Nation, 72 00:03:53,720 --> 00:03:57,000 Speaker 1: which can be heard Sundays on Bloomberg Radio. Our coverage 73 00:03:57,040 --> 00:03:59,920 Speaker 1: of the ABC News presidential debate begins tomorrow night at 74 00:04:00,000 --> 00:04:03,000 Speaker 1: eight pm Wall Street Time on a special edition of 75 00:04:03,080 --> 00:04:06,080 Speaker 1: Balance of Power on Bloomberg Radio and Television. 76 00:04:06,440 --> 00:04:09,400 Speaker 2: In company News, Karen, it is a big day for Apple. 77 00:04:09,480 --> 00:04:13,160 Speaker 2: The company unveils its iPhone sixteen today. While the new 78 00:04:13,200 --> 00:04:15,600 Speaker 2: iPhone line will be the focus of the product launch, 79 00:04:16,040 --> 00:04:19,040 Speaker 2: its slumping wearable device business is poised to get a 80 00:04:19,080 --> 00:04:21,400 Speaker 2: boost as well. For the first time since the end 81 00:04:21,400 --> 00:04:24,919 Speaker 2: of twenty twenty two, Apple is unveiling major changes to 82 00:04:24,960 --> 00:04:28,920 Speaker 2: the Apple Watch and air Pod earbuds. All three versions 83 00:04:28,920 --> 00:04:31,920 Speaker 2: of the smart watch, the se the Standard series line, 84 00:04:31,920 --> 00:04:34,719 Speaker 2: and the Ultra, will be upgraded, and the two lower 85 00:04:34,800 --> 00:04:37,440 Speaker 2: end air Pods will get the most significant update in 86 00:04:37,520 --> 00:04:38,360 Speaker 2: their history. 87 00:04:39,040 --> 00:04:41,560 Speaker 1: Well Nathan Shares a Boeing up three point four percent 88 00:04:41,640 --> 00:04:44,840 Speaker 1: this morning. The planemaker and its largest union say they've 89 00:04:44,920 --> 00:04:48,279 Speaker 1: hammered out a landmark deal to potentially avoid a strike. 90 00:04:48,560 --> 00:04:50,520 Speaker 1: Begin more from Bloomberg's Doun Krisner. 91 00:04:50,839 --> 00:04:54,200 Speaker 9: The breakthrough came after a marathon marketing session. The current 92 00:04:54,240 --> 00:04:58,159 Speaker 9: contract expires at midnight September twelfth, and a possible strike 93 00:04:58,279 --> 00:05:01,200 Speaker 9: is looming. The deal includes a twenty five percent wage 94 00:05:01,200 --> 00:05:03,839 Speaker 9: increase over four years, as well as a commitment to 95 00:05:03,880 --> 00:05:07,280 Speaker 9: build Boeing's next plane in the Seattle area. There are 96 00:05:07,320 --> 00:05:11,400 Speaker 9: sweeteners if workers accept the accord, and immediate eleven percent 97 00:05:11,480 --> 00:05:14,200 Speaker 9: pay bump, along with a three thousand dollars bonus to 98 00:05:14,240 --> 00:05:16,679 Speaker 9: be paid at the end of the month. Boeing CEO 99 00:05:16,800 --> 00:05:20,880 Speaker 9: Kelly Ortberg has pledged to reset long contentious labor relations, 100 00:05:21,160 --> 00:05:23,120 Speaker 9: but it's too soon to know if workers will go 101 00:05:23,240 --> 00:05:26,760 Speaker 9: along or buck their leadership. In New York, I'm Doug Prisner, 102 00:05:26,760 --> 00:05:27,559 Speaker 9: Bloomberg Radio. 103 00:05:27,800 --> 00:05:30,279 Speaker 2: Thanks Doug. Circle K is trying to keep its takeover 104 00:05:30,320 --> 00:05:34,760 Speaker 2: bid for seven eleven alive. The Canadian owner of Circle K, Kushtard, 105 00:05:34,839 --> 00:05:38,039 Speaker 2: has told Japan's Seven and I Holdings it wants to 106 00:05:38,080 --> 00:05:42,520 Speaker 2: work together on a friendly takeover after the Japanese convenience 107 00:05:42,520 --> 00:05:47,359 Speaker 2: store operator pushed back on Kushtard's initial proposal. Seven and 108 00:05:47,400 --> 00:05:49,600 Speaker 2: I is the operator of seven to eleven shops. It 109 00:05:49,720 --> 00:05:53,320 Speaker 2: rejected Kushtard's prices too low in front with regulatory risk, 110 00:05:53,640 --> 00:05:56,320 Speaker 2: and made clear that price was the issue, not the 111 00:05:56,360 --> 00:06:00,440 Speaker 2: idea of an acquisition itself. A potential deal would create 112 00:06:00,480 --> 00:06:03,480 Speaker 2: a global convenience store behemoth with more than one hundred 113 00:06:03,480 --> 00:06:07,279 Speaker 2: thousand stores. It would represent the biggest ever foreign takeover 114 00:06:07,400 --> 00:06:09,000 Speaker 2: of a Japanese company. 115 00:06:09,160 --> 00:06:12,560 Speaker 1: And Nathan discount retailer Big Losses found for bankruptcy Big 116 00:06:12,560 --> 00:06:15,080 Speaker 1: Losses among a number of troubled retailers that have been 117 00:06:15,160 --> 00:06:18,280 Speaker 1: hurt by a slowdown in home spending. Collins and LL 118 00:06:18,320 --> 00:06:25,640 Speaker 1: Flooring Holdings also filed bankruptcies in recent months. Time now 119 00:06:25,680 --> 00:06:27,240 Speaker 1: for a look at some of the other stories making 120 00:06:27,279 --> 00:06:29,320 Speaker 1: news in New York and around the world. For that, 121 00:06:29,360 --> 00:06:32,120 Speaker 1: we're joined by Bloomberg's John Tucker, John, Good Morning and 122 00:06:32,120 --> 00:06:32,839 Speaker 1: Good Morning, Karen. 123 00:06:33,080 --> 00:06:36,039 Speaker 10: The White House today is taking steps to lower mental 124 00:06:36,080 --> 00:06:39,039 Speaker 10: healthcare costs. We get more of this report from Bloomberg's 125 00:06:39,080 --> 00:06:39,880 Speaker 10: Jeff Bellinger. 126 00:06:40,279 --> 00:06:43,400 Speaker 7: New guidelines seek to ensure that Americans have the same 127 00:06:43,480 --> 00:06:46,960 Speaker 7: access to mental health and substance use benefits that they 128 00:06:47,000 --> 00:06:51,159 Speaker 7: have two physical health benefits. The proposal seeks to build 129 00:06:51,200 --> 00:06:53,760 Speaker 7: on the two thousand and eight Mental Health Parity and 130 00:06:53,920 --> 00:06:58,279 Speaker 7: Addiction Equity Act, which required insurance companies to provide the 131 00:06:58,320 --> 00:07:02,480 Speaker 7: same access to mental and physical treatment when the bill passed, 132 00:07:02,480 --> 00:07:06,240 Speaker 7: it did not require some non federal government health plans, 133 00:07:06,320 --> 00:07:09,560 Speaker 7: like those offered to state and local government employees, to 134 00:07:09,680 --> 00:07:14,080 Speaker 7: comply with its requirements. Jeff Bellinger, Bloomberg Radio. 135 00:07:14,240 --> 00:07:18,160 Speaker 10: Republican lawmakers accused the Biden administration of lying to Americans 136 00:07:18,520 --> 00:07:21,440 Speaker 10: and sacrificing the safety of US soldiers during the twenty 137 00:07:21,520 --> 00:07:25,320 Speaker 10: twenty one Afghanistan withdrawal. The accusation comes in a report 138 00:07:25,360 --> 00:07:28,800 Speaker 10: that seeks to implicate Vice President Kamala Harris before the election. 139 00:07:29,400 --> 00:07:32,760 Speaker 10: Is as President Joe Biden's team misled and in some 140 00:07:32,920 --> 00:07:36,640 Speaker 10: instances directly lied to the American people at every stage 141 00:07:36,760 --> 00:07:40,520 Speaker 10: of the Afghanistan withdrawal a gun and killed three Israelis 142 00:07:40,520 --> 00:07:43,360 Speaker 10: at a terminal on Jordan's border with the Israeli occupied 143 00:07:43,400 --> 00:07:46,440 Speaker 10: West Bank on Sunday. It's the first such incident since 144 00:07:46,480 --> 00:07:50,000 Speaker 10: the Gods of War began in October. Israel's army sent 145 00:07:50,080 --> 00:07:54,600 Speaker 10: the gunman accused access the allenby Pridge Crossing also known 146 00:07:54,600 --> 00:07:58,320 Speaker 10: as the King Hussain Bridge from the Jordanian side, fired 147 00:07:58,360 --> 00:08:02,320 Speaker 10: shots before he was killed by Israeli guards. Jerry selection 148 00:08:02,400 --> 00:08:04,240 Speaker 10: is set to begin today in the federal trial of 149 00:08:04,280 --> 00:08:07,920 Speaker 10: three former Memphis police officers charged with violating the civil 150 00:08:08,000 --> 00:08:10,840 Speaker 10: rights of Tyree Nichols. He's the twenty nine year old 151 00:08:10,840 --> 00:08:14,240 Speaker 10: man whose fatal beating last year was caught on police cameras, 152 00:08:14,480 --> 00:08:19,240 Speaker 10: also triggering protests and calls for police reform. A storm 153 00:08:19,280 --> 00:08:22,280 Speaker 10: system in the Gulf of Mexico forecast to strengthen into 154 00:08:22,360 --> 00:08:26,000 Speaker 10: a hurricane early this week, bringing heavy rain, damaging winds, 155 00:08:26,040 --> 00:08:29,760 Speaker 10: and potentially life threatening storm surges departs of the Texas 156 00:08:29,800 --> 00:08:33,280 Speaker 10: and Louisiana coastlines. If it continues to strengthen, it'll be 157 00:08:33,320 --> 00:08:36,640 Speaker 10: named tropical storm France scene and a good Samaritan with 158 00:08:36,679 --> 00:08:39,400 Speaker 10: a familiar name helped to save a choking man at 159 00:08:39,400 --> 00:08:43,360 Speaker 10: the Hampton Beach Lobster roll eating competition in New Hampshire Sunday. 160 00:08:43,840 --> 00:08:46,640 Speaker 10: Governor Chris Sanunu was at the event. He says he 161 00:08:46,760 --> 00:08:49,800 Speaker 10: was the first to notice a contestant having trouble breathing. 162 00:08:50,080 --> 00:08:53,560 Speaker 10: The Governor performed the Heimlich maneuver before first responders took 163 00:08:53,600 --> 00:08:56,439 Speaker 10: over and helped free the stuck piece of lobster. 164 00:08:57,120 --> 00:08:59,600 Speaker 11: She went right back to the contest for who would 165 00:08:59,600 --> 00:09:03,040 Speaker 11: I couldn't believe he had another seven lobster after that, 166 00:09:03,240 --> 00:09:04,320 Speaker 11: right down the gullet. 167 00:09:04,600 --> 00:09:09,240 Speaker 10: Governor Snuno speaking there to wm R Global News twenty 168 00:09:09,280 --> 00:09:11,840 Speaker 10: four hours a day, whatever you want it with Bloomberg News. Now, 169 00:09:12,080 --> 00:09:14,640 Speaker 10: I'm John Tucker and this is Bloomberg Nathan and. 170 00:09:14,600 --> 00:09:23,720 Speaker 1: Karen another seven lobster roswell, John, thank you time now 171 00:09:23,760 --> 00:09:26,360 Speaker 1: for the Bloomberg Sports Update with John stash Hour. 172 00:09:26,480 --> 00:09:28,000 Speaker 7: John, Good morning, Good morning Karen. 173 00:09:28,040 --> 00:09:31,280 Speaker 12: It was the Giants one hundred season opener and one 174 00:09:31,320 --> 00:09:33,240 Speaker 12: of their worst. They left the Vikings score in the 175 00:09:33,240 --> 00:09:35,880 Speaker 12: first quarter. They game a ninety nine yard drive in 176 00:09:35,920 --> 00:09:38,600 Speaker 12: the second. Minnesota scored again early in the third. One later, 177 00:09:38,679 --> 00:09:41,559 Speaker 12: the Giants had the ball deep in their own territory 178 00:09:41,960 --> 00:09:43,360 Speaker 12: Spike's Lee twenty one to six. 179 00:09:43,480 --> 00:09:49,280 Speaker 11: Jones holy threw it to ben Gekle touchdown. That's book 180 00:09:49,400 --> 00:09:54,880 Speaker 11: four touchdown in Andrew ben Gikle's career, and he read 181 00:09:55,040 --> 00:09:58,360 Speaker 11: Daniel Jones like a book, and that book had a 182 00:09:58,400 --> 00:10:03,040 Speaker 11: happy ending seven to six Minnesota. 183 00:10:02,200 --> 00:10:04,640 Speaker 12: On k Fan twenty eight six the final. Many of 184 00:10:04,640 --> 00:10:06,880 Speaker 12: the fans headed for the exit early, and the ones 185 00:10:06,920 --> 00:10:09,640 Speaker 12: that stuck around spend much of their time booing the 186 00:10:09,679 --> 00:10:12,960 Speaker 12: Giants effort, especially in left offensively under one hundred yards 187 00:10:12,960 --> 00:10:16,160 Speaker 12: in the first half. Daniel Jones severely outplayed by the 188 00:10:16,240 --> 00:10:18,920 Speaker 12: Viking Sam Darnold, the x jeed, who completed his first 189 00:10:18,960 --> 00:10:22,280 Speaker 12: twelve passes two for touchdown. Jones at his last two 190 00:10:22,360 --> 00:10:26,360 Speaker 12: seasons has only two TD passes, eight interceptions, and only 191 00:10:26,440 --> 00:10:29,480 Speaker 12: one victory the Patriots and a surprise one for new 192 00:10:29,480 --> 00:10:31,599 Speaker 12: coach to Rod Meos sixteen to ten at Cincinnati. The 193 00:10:31,640 --> 00:10:35,120 Speaker 12: Commanders lost at Tampa Bay thirty seven to twenty. Dallas 194 00:10:35,120 --> 00:10:38,680 Speaker 12: won thirty three seventeen at Cleveland after Dak Prescott got 195 00:10:38,679 --> 00:10:41,840 Speaker 12: a new sixty million dollars a year contract Miami on 196 00:10:41,880 --> 00:10:44,800 Speaker 12: a last second field goal by Jacksonville Tyreek Hill had 197 00:10:44,800 --> 00:10:48,280 Speaker 12: an eighty yard catch after getting stopped for speeding and 198 00:10:48,320 --> 00:10:51,720 Speaker 12: getting handcuffed on his way to the stadium. Last night overtime, 199 00:10:51,800 --> 00:10:54,360 Speaker 12: Detroit beat the Rams twenty six to twenty one. Game 200 00:10:54,440 --> 00:10:57,160 Speaker 12: left in Week one that's the Jets and forty nine 201 00:10:57,240 --> 00:11:00,000 Speaker 12: Ers tonight ed Reigley Cubzel. The four Heads had only 202 00:11:00,120 --> 00:11:02,160 Speaker 12: seven hits of the three game series, where they scored twice. 203 00:11:02,160 --> 00:11:04,600 Speaker 12: In the first Name North Garrett Cole topped the Yankees 204 00:11:04,600 --> 00:11:06,360 Speaker 12: two to one, a game with no scoring after the 205 00:11:06,360 --> 00:11:08,880 Speaker 12: top of the second. The Mets nine game winning streak 206 00:11:08,960 --> 00:11:10,760 Speaker 12: end in Cincinnati scored two of the ninth to win 207 00:11:10,800 --> 00:11:13,880 Speaker 12: three to one. US Open final. Yannick Sinner showed why 208 00:11:13,920 --> 00:11:16,560 Speaker 12: he's ranked number one, straight sets over Taylor Fritz. Still, 209 00:11:16,600 --> 00:11:19,000 Speaker 12: no American man has won of Grand Slam in twenty 210 00:11:19,000 --> 00:11:22,040 Speaker 12: one years. John Stashiellward, Bloomberg Sports, Karen Nathan. 211 00:11:24,080 --> 00:11:28,200 Speaker 7: Coast to Coast on Bloomberg Radio nationwide on Sirius XM, 212 00:11:28,280 --> 00:11:31,160 Speaker 7: and around the world on Bloomberg dot Com and the 213 00:11:31,240 --> 00:11:32,440 Speaker 7: Bloomberg Business app. 214 00:11:32,679 --> 00:11:37,240 Speaker 2: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Treasury 215 00:11:37,240 --> 00:11:40,600 Speaker 2: Secretary Janet Yellen is reiterating her view that the US 216 00:11:40,720 --> 00:11:44,880 Speaker 2: economy has reached a soft landing per comments followed last 217 00:11:44,880 --> 00:11:48,160 Speaker 2: week's stock sell off in months of soft jobs data. 218 00:11:48,640 --> 00:11:51,520 Speaker 2: In an interview with Bloomberg's David Gura at the Texas 219 00:11:51,520 --> 00:11:55,360 Speaker 2: Tribune Festival in Austin, Yellen also underscored the importance of 220 00:11:55,440 --> 00:11:57,800 Speaker 2: US engagement with China. We now want to bring you 221 00:11:57,840 --> 00:11:58,960 Speaker 2: part of their discussion. 222 00:11:59,440 --> 00:12:03,359 Speaker 3: But when I look at it, the economy broadly speaking, 223 00:12:03,559 --> 00:12:08,080 Speaker 3: is very strong growth deep into a recovery. With the 224 00:12:08,160 --> 00:12:12,600 Speaker 3: economy operating it basically at full employment. We're still seeing 225 00:12:12,679 --> 00:12:16,719 Speaker 3: three percent growth roughly over the last year, and it 226 00:12:16,800 --> 00:12:26,840 Speaker 3: continues consumer spending, investment, spending, solid, inflation coming down substantially, 227 00:12:27,520 --> 00:12:31,720 Speaker 3: and I believe headed back to the FIDS two percent goal. 228 00:12:32,360 --> 00:12:37,239 Speaker 3: And what I describe as a strong, solid labor market. Clearly, 229 00:12:37,760 --> 00:12:42,439 Speaker 3: the pace of job creation has gone down, and that's 230 00:12:42,720 --> 00:12:48,120 Speaker 3: something we should expect. The unemployment rate has moved up 231 00:12:48,200 --> 00:12:51,360 Speaker 3: somewhat off it's very low level of I think it 232 00:12:51,400 --> 00:12:56,559 Speaker 3: got down to three point four percent, but it's not 233 00:12:56,640 --> 00:12:59,600 Speaker 3: common in the United States to have unemployment rates in 234 00:12:59,640 --> 00:13:04,959 Speaker 3: the four and it's what I think of is a 235 00:13:05,320 --> 00:13:06,599 Speaker 3: employment economy. 236 00:13:06,800 --> 00:13:08,679 Speaker 8: You say, many people would call that a soft landing. 237 00:13:08,720 --> 00:13:11,360 Speaker 8: So that is the FED being able to get high 238 00:13:11,360 --> 00:13:14,600 Speaker 8: inflation under control without triggering a deep downturn or recession. 239 00:13:14,640 --> 00:13:15,080 Speaker 3: That's right. 240 00:13:15,240 --> 00:13:17,080 Speaker 8: Many people would say that. Do you say that as well? 241 00:13:17,080 --> 00:13:18,959 Speaker 8: Do you think that it's Are you fairly confident that 242 00:13:19,000 --> 00:13:19,920 Speaker 8: we're going to get done? 243 00:13:20,040 --> 00:13:23,000 Speaker 3: I think what we're seeing now is consistent with that. 244 00:13:23,520 --> 00:13:27,400 Speaker 3: While there are risks, it really has been amazing to 245 00:13:27,480 --> 00:13:31,800 Speaker 3: be able to get inflation down as meaningfully as we have. 246 00:13:32,280 --> 00:13:36,200 Speaker 3: And I'd say also, wages are going up at a 247 00:13:36,240 --> 00:13:42,960 Speaker 3: decent clip, and real wages adjusted for inflation are rising, 248 00:13:43,480 --> 00:13:47,719 Speaker 3: and they well, a lot of especially low income households, 249 00:13:48,000 --> 00:13:51,960 Speaker 3: are under stress. Aspects of the cost of living for 250 00:13:52,080 --> 00:13:58,320 Speaker 3: them are genuinely challenging, and it's our administration's top priority 251 00:13:58,720 --> 00:14:02,520 Speaker 3: to try to address that. It's still true that wages 252 00:14:02,600 --> 00:14:07,120 Speaker 3: have gone up since before the pandemic in real or 253 00:14:07,120 --> 00:14:13,439 Speaker 3: inflation adjusted terms, and continuing to rise at a decent basic. 254 00:14:13,840 --> 00:14:15,960 Speaker 8: What is your secret as you think of embracing this 255 00:14:16,080 --> 00:14:18,959 Speaker 8: role as a diplomat? What has made you particularly i'll 256 00:14:18,960 --> 00:14:21,080 Speaker 8: say particularly good or have the. 257 00:14:21,000 --> 00:14:24,520 Speaker 3: Facility for well, well, thank you for the compliment. I've 258 00:14:24,640 --> 00:14:29,160 Speaker 3: seen this sort of diplomatic initiative, both with China and 259 00:14:29,240 --> 00:14:34,320 Speaker 3: with other countries as really critical because we need to 260 00:14:34,400 --> 00:14:39,640 Speaker 3: work together collaboratively to solve every global problem that we face, 261 00:14:40,160 --> 00:14:46,320 Speaker 3: from climate change to Russia's aggression, to issues that we 262 00:14:46,440 --> 00:14:51,480 Speaker 3: have with China. And during the previous administration, I'm sorry 263 00:14:51,520 --> 00:14:56,320 Speaker 3: to say, our alliance is fred and you know, it 264 00:14:56,400 --> 00:15:02,120 Speaker 3: was America first, and that should really never be America alone, 265 00:15:02,480 --> 00:15:07,800 Speaker 3: and it was necessary to rebuild alliances to work with 266 00:15:07,920 --> 00:15:12,040 Speaker 3: allies around the world. And that's been a broad that's 267 00:15:12,080 --> 00:15:15,960 Speaker 3: been a broad effort, and I think we really have succeeded. 268 00:15:16,400 --> 00:15:23,440 Speaker 3: And perhaps we'll talk about this, but when Russia attacked Ukraine, 269 00:15:23,720 --> 00:15:27,280 Speaker 3: we had an alliance that came together in a matter 270 00:15:27,400 --> 00:15:33,760 Speaker 3: of a day or two to strongly counter what Russia 271 00:15:33,960 --> 00:15:39,360 Speaker 3: was doing. We've stayed together and we've worked together to 272 00:15:39,560 --> 00:15:45,400 Speaker 3: address and this is broad effort G twenty or larger 273 00:15:46,000 --> 00:15:52,600 Speaker 3: to address climate change and problems afflicting poor countries around 274 00:15:52,600 --> 00:15:58,480 Speaker 3: the world, to address pandemics, created a pandemic fund knowing 275 00:15:59,440 --> 00:16:03,600 Speaker 3: the properly be another pandemic unfortunately, and we need to 276 00:16:03,640 --> 00:16:07,560 Speaker 3: be better prepared than we were for COVID. So on 277 00:16:07,680 --> 00:16:12,560 Speaker 3: many different fronts, we've tried to rebuild alliances, and with 278 00:16:12,640 --> 00:16:19,000 Speaker 3: respect to China, relations had really deteriorated during the pandemic 279 00:16:19,560 --> 00:16:22,640 Speaker 3: and we went for a period of close to two 280 00:16:22,720 --> 00:16:31,320 Speaker 3: years without any meaningful senior level contact between US and Chinese, 281 00:16:32,200 --> 00:16:35,960 Speaker 3: and that was really a very dangerous state of affairs. 282 00:16:36,760 --> 00:16:42,040 Speaker 3: President Biden met with President she In Bali. I was 283 00:16:42,080 --> 00:16:45,960 Speaker 3: at that meeting, and they agreed that it was important 284 00:16:46,000 --> 00:16:48,280 Speaker 3: to re establish relationships. 285 00:16:49,240 --> 00:16:52,400 Speaker 2: And that was the Secretary of the US Treasury Janet Yellen, 286 00:16:52,480 --> 00:16:55,120 Speaker 2: speaking with Bloomberg's David Gera. You can listen to their 287 00:16:55,360 --> 00:16:58,840 Speaker 2: entire interview on the Bloomberg Talks podcast. Subscribed to hear 288 00:16:58,920 --> 00:17:03,040 Speaker 2: all our high profile conversations on Apple, Spotify, or anywhere 289 00:17:03,040 --> 00:17:05,879 Speaker 2: else you get your podcasts. And David is here with 290 00:17:06,000 --> 00:17:09,119 Speaker 2: us now for more on his conversation with the US 291 00:17:09,160 --> 00:17:13,520 Speaker 2: Treasury Secretary. David, good morning, thanks for being here. Wide 292 00:17:13,640 --> 00:17:18,320 Speaker 2: ranging discussion, but a lot of focus on the Treasury 293 00:17:18,359 --> 00:17:23,240 Speaker 2: secretary saying that a soft landing has been achieved even 294 00:17:23,320 --> 00:17:26,640 Speaker 2: with job growth slowing. How does she square that circle? 295 00:17:27,359 --> 00:17:29,560 Speaker 8: Yeah, she said in that bit of tape that you played, 296 00:17:29,560 --> 00:17:31,520 Speaker 8: and we had our conversation a day after those jobs 297 00:17:31,600 --> 00:17:34,080 Speaker 8: numbers came out. She feels very confident that we're getting 298 00:17:34,119 --> 00:17:36,679 Speaker 8: back to a level that would be considered more normal 299 00:17:37,040 --> 00:17:40,240 Speaker 8: in regular times. And all the while we did talk 300 00:17:40,240 --> 00:17:42,600 Speaker 8: about the trend that we've seen over the course of 301 00:17:42,640 --> 00:17:44,000 Speaker 8: the year. So obviously, if you look at the three 302 00:17:44,000 --> 00:17:46,760 Speaker 8: month average of what we've seen, it is dramatically lower 303 00:17:46,760 --> 00:17:48,639 Speaker 8: in those non farm payrolls than what we had at 304 00:17:48,680 --> 00:17:51,120 Speaker 8: the beginning of this year. She acknowledges that I asked 305 00:17:51,119 --> 00:17:52,960 Speaker 8: her if there is any chance or if she sees 306 00:17:53,000 --> 00:17:54,840 Speaker 8: any risk of us getting a negative print in those 307 00:17:54,920 --> 00:17:56,720 Speaker 8: numbers by the end of the year, and she didn't 308 00:17:56,720 --> 00:17:59,680 Speaker 8: bite it that question. But she's a labor economist by training, 309 00:17:59,680 --> 00:18:02,560 Speaker 8: of course, Nathan, this is her bread and butter. And 310 00:18:02,600 --> 00:18:04,520 Speaker 8: in a conversation that we had there on stage and 311 00:18:04,560 --> 00:18:06,440 Speaker 8: the day before when I accompanied her on a tour 312 00:18:06,480 --> 00:18:09,480 Speaker 8: of a big IRS facility in Austin, right after those 313 00:18:09,560 --> 00:18:12,359 Speaker 8: numbers came out, she continued to express confidence in the 314 00:18:12,400 --> 00:18:14,480 Speaker 8: health or the strength of the labor market. So she 315 00:18:14,840 --> 00:18:18,320 Speaker 8: acknowledges that there are those who are fearful that we're headed, 316 00:18:18,760 --> 00:18:21,080 Speaker 8: perhaps to her higher unemployment, but at this point feels 317 00:18:21,119 --> 00:18:23,159 Speaker 8: confident that things are indeed going in the right direction. 318 00:18:23,560 --> 00:18:27,000 Speaker 2: You have to think that the Treasury Secretary was cognizant 319 00:18:27,160 --> 00:18:33,200 Speaker 2: of the selloff happening after those numbers came out, and 320 00:18:33,880 --> 00:18:38,480 Speaker 2: perhaps trying to soothe the markets to some extent. Was 321 00:18:38,480 --> 00:18:39,720 Speaker 2: there some of that involved. 322 00:18:39,720 --> 00:18:42,879 Speaker 8: Do you think she was projecting calm and she speaks 323 00:18:42,880 --> 00:18:45,879 Speaker 8: in a very matter of fact and careful way. You 324 00:18:45,960 --> 00:18:48,320 Speaker 8: heard that in that tape as well. Another question that 325 00:18:48,359 --> 00:18:50,000 Speaker 8: I asked her over the course of that hour long 326 00:18:50,040 --> 00:18:53,159 Speaker 8: conversation is from her vantage, does she see pockets of 327 00:18:53,240 --> 00:18:55,600 Speaker 8: risk elsewhere in the financial system? And she brought up 328 00:18:55,640 --> 00:18:58,920 Speaker 8: money market funds, which she, under her stewardship of the 329 00:18:58,920 --> 00:19:03,600 Speaker 8: Financial of ESSOK, the kind of overarching financial regulation board 330 00:19:03,840 --> 00:19:06,720 Speaker 8: has worked to tackle. She talked about cybersecurity, so she 331 00:19:06,760 --> 00:19:08,800 Speaker 8: said she saw no flashing red lights when she looks 332 00:19:08,800 --> 00:19:11,280 Speaker 8: at the financial system broadly. But I think you're right, Nathan. 333 00:19:11,280 --> 00:19:14,159 Speaker 8: I think she was actively trying to assure the markets there. 334 00:19:14,400 --> 00:19:17,480 Speaker 2: Now, although interesting to hear say no flashing lights a 335 00:19:17,560 --> 00:19:20,000 Speaker 2: day after we did see that big sell off, the 336 00:19:20,040 --> 00:19:23,720 Speaker 2: worst sell off since the last time we saw flashing 337 00:19:23,760 --> 00:19:26,240 Speaker 2: lights in the financial system around the time of the 338 00:19:26,280 --> 00:19:27,600 Speaker 2: regional bank crisis. 339 00:19:27,920 --> 00:19:30,080 Speaker 8: We talked about that as well. And there are a 340 00:19:30,080 --> 00:19:32,200 Speaker 8: couple of moments over the course of her tenure when 341 00:19:32,600 --> 00:19:36,240 Speaker 8: she and her colleagues at Treasury, colleagues around the world 342 00:19:36,240 --> 00:19:38,240 Speaker 8: have had to get together and deal with crises. Certainly 343 00:19:38,280 --> 00:19:39,720 Speaker 8: the war in Ukraine is one of them. But she 344 00:19:39,760 --> 00:19:42,840 Speaker 8: did talk about that kind of compressed moment when we 345 00:19:42,880 --> 00:19:45,360 Speaker 8: saw the collapse of First Republic. There was so much 346 00:19:45,400 --> 00:19:47,520 Speaker 8: concern about contagion and they had to get together, so 347 00:19:47,680 --> 00:19:50,120 Speaker 8: it was safe. I didn't introduce the subject of those 348 00:19:50,119 --> 00:19:50,720 Speaker 8: failed banks. 349 00:19:50,760 --> 00:19:51,000 Speaker 1: She did. 350 00:19:51,080 --> 00:19:52,919 Speaker 8: It's safe to assume it still feels quite raw for 351 00:19:53,000 --> 00:19:55,640 Speaker 8: her and is kind of a signal moment in her career. 352 00:19:55,640 --> 00:19:57,680 Speaker 8: I mean, it was so wonderful to have so much 353 00:19:57,680 --> 00:20:00,679 Speaker 8: time with her. She I kind of off handedly asked her, 354 00:20:00,720 --> 00:20:03,280 Speaker 8: if there's any chance that she remains in office after 355 00:20:03,440 --> 00:20:05,840 Speaker 8: January twenty fifth, If you know Kamala Harris would be reelected, 356 00:20:05,880 --> 00:20:07,879 Speaker 8: would she stay in the job. She didn't bat that 357 00:20:07,920 --> 00:20:10,520 Speaker 8: away entirely, but made it seem like she probably she 358 00:20:10,560 --> 00:20:12,399 Speaker 8: probably would be done. But it was a moment to 359 00:20:12,400 --> 00:20:14,719 Speaker 8: both look ahead to what she hopes to accomplish here 360 00:20:14,720 --> 00:20:16,879 Speaker 8: in these next few months presumably of her tenure, her 361 00:20:16,880 --> 00:20:19,080 Speaker 8: final months of her tenure, but also back on some 362 00:20:19,119 --> 00:20:22,000 Speaker 8: of those crisis moments, including what happened with those regional banks. 363 00:20:22,200 --> 00:20:23,720 Speaker 2: Yeah, I did want to ask you if it felt 364 00:20:23,760 --> 00:20:27,160 Speaker 2: more like an exit interview to speak with Treasury Secretary 365 00:20:27,240 --> 00:20:31,240 Speaker 2: Yellen at this point, or whether she is thinking about 366 00:20:31,480 --> 00:20:34,760 Speaker 2: perhaps staying on a little bit longer. Is she running 367 00:20:34,800 --> 00:20:37,640 Speaker 2: through the tape, or is this sort of the end 368 00:20:37,680 --> 00:20:37,919 Speaker 2: for her? 369 00:20:38,000 --> 00:20:39,760 Speaker 8: She made it seem like she was. I mean, the 370 00:20:39,760 --> 00:20:41,600 Speaker 8: interview was an hour and we had two or three 371 00:20:41,600 --> 00:20:42,960 Speaker 8: minutes left, and I said, you have this to do. 372 00:20:43,040 --> 00:20:45,000 Speaker 8: List what's on and give me a couple of things, 373 00:20:45,040 --> 00:20:47,159 Speaker 8: and she gave quite a long answer of things that 374 00:20:47,200 --> 00:20:49,440 Speaker 8: she hopes to accomplish. But it gave me more perspective 375 00:20:49,440 --> 00:20:51,199 Speaker 8: on just the breadth of that job, what you have 376 00:20:51,240 --> 00:20:53,440 Speaker 8: to do when you are the Treasury Secretary. And it's 377 00:20:53,440 --> 00:20:55,960 Speaker 8: something that she expressed to me she's had to learn 378 00:20:56,280 --> 00:20:59,080 Speaker 8: along the way. She is obviously incredibly accomplished and has 379 00:20:59,080 --> 00:21:01,280 Speaker 8: had all of these key jobs, of course, the chief 380 00:21:01,320 --> 00:21:04,560 Speaker 8: Economic Advisor to Preston Clinton, Federal Reserve Vice Chair and 381 00:21:04,640 --> 00:21:06,639 Speaker 8: chair head of the San Francisco Federal Reserve Bank, and 382 00:21:06,640 --> 00:21:09,520 Speaker 8: now the Treasury secretary, all of these new and novel 383 00:21:10,119 --> 00:21:12,960 Speaker 8: she had trained academic economists who has really embraced and 384 00:21:13,359 --> 00:21:16,240 Speaker 8: found her way in each of these roles. She did 385 00:21:16,240 --> 00:21:17,800 Speaker 8: not make it seem like that she'll be resting on 386 00:21:17,800 --> 00:21:19,520 Speaker 8: her laurels and in any sense here in the next 387 00:21:19,520 --> 00:21:20,000 Speaker 8: few months. 388 00:21:20,160 --> 00:21:21,600 Speaker 2: Yeah, and certainly I know you're not going to be 389 00:21:21,600 --> 00:21:25,280 Speaker 2: resting heading right over to Philadelphia for tomorrow night's first 390 00:21:25,320 --> 00:21:29,359 Speaker 2: debate and perhaps only debate between Vice President Harris and 391 00:21:29,720 --> 00:21:33,680 Speaker 2: former President Trump. Does this conversation with Secretary Yellen inform 392 00:21:34,119 --> 00:21:36,720 Speaker 2: what you're going to be thinking about as we head 393 00:21:36,760 --> 00:21:38,480 Speaker 2: into this encounter tomorrow, Knight. 394 00:21:38,560 --> 00:21:41,720 Speaker 8: Yeah, she Janet Yellen stuiously avoids talking about politics, but 395 00:21:41,760 --> 00:21:44,000 Speaker 8: did talk a lot about the Biden administration, Biden Harris 396 00:21:44,040 --> 00:21:46,800 Speaker 8: administration's economic priorities. And I'm very interested in Nathan and 397 00:21:46,880 --> 00:21:49,800 Speaker 8: hearing how much concrete policy comes up over the course 398 00:21:49,840 --> 00:21:52,119 Speaker 8: of this debate. But as you point out, this is 399 00:21:52,160 --> 00:21:54,040 Speaker 8: on the calendar the only time that these two candidates 400 00:21:54,040 --> 00:21:56,240 Speaker 8: are supposed to meet face to face, and quite deliciously, 401 00:21:56,240 --> 00:21:58,480 Speaker 8: they've never been in the same room together before, So 402 00:21:58,840 --> 00:22:00,840 Speaker 8: there is the drama in theat of that the two 403 00:22:00,920 --> 00:22:04,000 Speaker 8: candidates facing each other on stage. But yes, I think 404 00:22:04,040 --> 00:22:07,200 Speaker 8: that what I heard from gannet Yellen was a lot 405 00:22:07,200 --> 00:22:09,800 Speaker 8: of pride and emphasis in the policies that they have 406 00:22:09,880 --> 00:22:12,720 Speaker 8: been able to put in place since the COVID pandemic, 407 00:22:12,840 --> 00:22:14,920 Speaker 8: and obviously a sense of urgency as well as she 408 00:22:14,960 --> 00:22:18,159 Speaker 8: looks kind of unfinished business, mindful of what would happen 409 00:22:18,200 --> 00:22:21,520 Speaker 8: to those initiatives if Vice President Harris loses this election 410 00:22:21,680 --> 00:22:23,399 Speaker 8: and former President Trump were to win. 411 00:22:24,280 --> 00:22:27,199 Speaker 2: This is Bloomberg day Break Today, your morning brief on 412 00:22:27,280 --> 00:22:30,840 Speaker 2: the stories making news from Wall Street to Washington and beyond. 413 00:22:31,080 --> 00:22:33,800 Speaker 1: Look for us on your podcast feed at six am 414 00:22:33,920 --> 00:22:37,600 Speaker 1: Eastern each morning, on Apple, Spotify, and anywhere else you 415 00:22:37,640 --> 00:22:38,840 Speaker 1: get your podcasts. 416 00:22:38,960 --> 00:22:41,640 Speaker 2: You can also listen live each morning starting at five 417 00:22:41,680 --> 00:22:44,359 Speaker 2: am Wall Street time on Bloomberg eleven three to zero 418 00:22:44,359 --> 00:22:47,160 Speaker 2: in New York, Bloomberg ninety nine to one in Washington, 419 00:22:47,280 --> 00:22:50,879 Speaker 2: Bloomberg one six one in Boston, and Bloomberg nine sixty 420 00:22:50,960 --> 00:22:51,919 Speaker 2: in San Francisco. 421 00:22:52,280 --> 00:22:55,440 Speaker 1: Our flagship New York station is also available on your 422 00:22:55,520 --> 00:23:00,040 Speaker 1: Amazon Election devices. Just say Alexa play Bloomberg eleven. 423 00:23:00,600 --> 00:23:03,520 Speaker 2: Plus listen coast to coast on the Bloomberg Business app. 424 00:23:03,600 --> 00:23:07,760 Speaker 2: Serious xmb iHeartRadio app and on Bloomberg dot Com. I'm 425 00:23:07,800 --> 00:23:09,720 Speaker 2: Nathan Hager and I'm Karen Moscow. 426 00:23:09,920 --> 00:23:12,679 Speaker 1: Join us again tomorrow morning for all the news you 427 00:23:12,800 --> 00:23:16,000 Speaker 1: need to start your day right here on Bloomberg Daybreak