WEBVTT - Bloomberg Daybreak: August 26, 2022 - Hour 1 (Radio) 0:00:03.279 --> 0:00:05.240 That brings us to five oh seven on Wall Street 0:00:05.240 --> 0:00:08.680 where seventy six degrees in Central Park. Heads up for 0:00:08.720 --> 0:00:13.560 some police activity at street. It's got that stretch closed 0:00:13.560 --> 0:00:16.360 between ninth and eighth. Will tell you more shortly in traffic. First, 0:00:16.360 --> 0:00:18.360 Michael Barr with what else is going on in New 0:00:18.440 --> 0:00:20.840 York and around the world. Good morning, Michael, Good morning Nathan. 0:00:20.880 --> 0:00:23.119 The first hearing is in the books about the m 0:00:23.160 --> 0:00:26.560 t a's congestion pricing plan in Manhattan. Hundreds of people 0:00:26.640 --> 0:00:28.840 on both sides signed up to speak on the matter. 0:00:29.200 --> 0:00:31.800 According to the m t A, the plan could cost 0:00:31.880 --> 0:00:35.479 drivers in Manhattan south of sixty Street as much as 0:00:35.479 --> 0:00:38.880 twenty three dollars during rush hour. The agency says it 0:00:39.040 --> 0:00:43.200 was designed to lessen traffic congestion by as much as 0:00:43.520 --> 0:00:46.479 Last evening's public hearing was the first of six. We 0:00:46.560 --> 0:00:49.519 may soon learn more about what made the Justice Department 0:00:49.600 --> 0:00:53.000 search former President Donald Trump's Mara Lago home. The d 0:00:53.120 --> 0:00:56.160 o J is submitting a redacted version today of the 0:00:56.200 --> 0:00:59.800 affidavit out of concerns for the safety of the witnesses. 0:01:00.120 --> 0:01:03.320 Legal expert Lorie Levinson, it does look like the court 0:01:03.400 --> 0:01:06.840 felt that this was something of such great public interests 0:01:06.880 --> 0:01:09.840 that to the extent that the court could release information 0:01:10.280 --> 0:01:14.520 that did not compromise an ongoing investigation, it was inclined 0:01:14.560 --> 0:01:18.120 to do so. And of course there's great public attention 0:01:18.600 --> 0:01:22.200 on what happened here, why the Department of Justice went 0:01:22.319 --> 0:01:25.400 so far to get a warrant to search the ex 0:01:25.480 --> 0:01:30.560 president's Marlago residents. Loyola Law School professor Laurie Levinson says 0:01:30.600 --> 0:01:32.920 the judge ordered it to be released to the public 0:01:32.959 --> 0:01:37.120 by noon. California's Air Quality Regulation Board voted yesterday to 0:01:37.160 --> 0:01:41.600 halt the sale of gas powered cars by five The 0:01:41.640 --> 0:01:45.000 board says it would dramatically lower emissions and air pollutants. 0:01:45.120 --> 0:01:50.280 Governor Gavin Newsom this is the architecture for completely decarbonizing 0:01:50.280 --> 0:01:52.760 our economy. Change away to producing zoom energy, and it's 0:01:52.760 --> 0:01:57.000 the architecture for economic power, not just electric power. Governor 0:01:57.040 --> 0:01:59.360 Newsom says one tenth of all cars sold in the 0:01:59.440 --> 0:02:02.800 US arts Californians. However, not everyone is on board with 0:02:02.840 --> 0:02:06.200 the change. Tom Becker says he downs electric vehicles will 0:02:06.240 --> 0:02:10.000 be reliable enough. Even by that time. Battery failures and 0:02:10.080 --> 0:02:14.120 electric vehicles are very common, and guess what these people 0:02:14.160 --> 0:02:16.440 are not going to honor their battery warranties. They don't 0:02:16.480 --> 0:02:19.560 honor him. Now you can have a battery failure in 0:02:19.600 --> 0:02:25.320 these electric vehicles that will cost dollars. Tom Becker was 0:02:25.360 --> 0:02:28.200 among those who spoke at the hearing Global News twenty 0:02:28.240 --> 0:02:30.959 four hours a day on air and on Bloomberg Quick Take, 0:02:31.040 --> 0:02:34.040 powered by more than twenty seven hundred journalists an analists, 0:02:34.120 --> 0:02:36.760 more than a hundred twenty countries. Michael Barr and this 0:02:36.880 --> 0:02:44.000 is Bloomberg. Nathan, all right, Michael, thank you. Coming up 0:02:44.040 --> 0:02:45.960 to five ten on Wall Street time for the Bloomberg 0:02:46.000 --> 0:02:48.799 Sports Update. Good morning, John Stenshower, Good morning, Nathan. Good 0:02:48.800 --> 0:02:51.400 started to the Yankees ten game road trip there in Oakland. 0:02:51.440 --> 0:02:54.040 That the team that's twenty and forty two at home, 0:02:54.080 --> 0:02:56.400 and the Yanks teet off on the age twenty hits. 0:02:56.440 --> 0:02:58.400 They were up ten nothing in the fourth in in 0:02:58.440 --> 0:03:01.320 the final thirteen to four, three hits for the red 0:03:01.320 --> 0:03:03.840 hot Andrew ben and ten d three for Josh Donaldson, 0:03:03.919 --> 0:03:07.160 three hits, three rbies for rookie Oswaldo Cabrera, plenty of 0:03:07.240 --> 0:03:10.440 run support for Jamison Town to get his team leading twelve. 0:03:10.520 --> 0:03:14.120 When Garrett Cole starts tonight, Esther Cortez was to start tomorrow, 0:03:14.400 --> 0:03:16.079 but he was placed on the injured list with a 0:03:16.200 --> 0:03:18.880 strained groin, not believed to be a serious injury. Done. 0:03:18.919 --> 0:03:21.440 Carlo Stanton came off the i L. He was back 0:03:21.440 --> 0:03:23.520 in the Yankee line up last night. As for the Mets, 0:03:23.880 --> 0:03:25.960 Jacob Gram a lot of times with his career, has 0:03:26.000 --> 0:03:28.639 gotten no run support. He doesn't need a lot. He 0:03:28.760 --> 0:03:31.760 got all he needed with one swing of the bat. 0:03:31.919 --> 0:03:34.640 Basketball hit high in the air, deep to left field. 0:03:34.800 --> 0:03:37.920 Forget about it that way at it here fu the 0:03:38.000 --> 0:03:42.600 facing of the second deck. Need Alonso demolishes a two 0:03:42.680 --> 0:03:46.080 run homer in the Mets ll lead three nothing in 0:03:46.200 --> 0:03:49.320 the bottom of the third CBS thirty first on run 0:03:49.360 --> 0:03:51.560 for Alonso. He's got a hundred and four RBIs that 0:03:51.640 --> 0:03:53.600 Mets beat the Rockies three. The one is the grom 0:03:53.640 --> 0:03:56.160 one six sittings gave up to three hits struck at nine. 0:03:56.560 --> 0:03:59.280 Mets now with a two game lead on Atlanta the 0:03:59.360 --> 0:04:02.560 US Open against Monday. It's all about Serena Williams and 0:04:02.720 --> 0:04:05.640 she learned her first round opponent in this her career 0:04:05.720 --> 0:04:09.400 ending tournament, will be Donka Convintage from Montenegro, rank edioth 0:04:09.440 --> 0:04:13.320 in the world. Meanwhile, the unvaccinated. Novak Djokovic made it official. 0:04:13.400 --> 0:04:15.880 He's not playing, not allowed to fly into the US 0:04:16.120 --> 0:04:19.240 towards Yapagehip Golf in Atlanta. Sixty five for world number 0:04:19.240 --> 0:04:22.200 one Scottie Scheffler. He's got a five shot lead. John Stash, 0:04:22.320 --> 0:04:25.520 Edward Bloomberg Sports, Nathan, thank you, John SMP futures down 0:04:25.600 --> 0:04:28.720 down thirteen point, Staff features down sixty seven, Nastack futures 0:04:28.760 --> 0:04:32.840 down fifty nine points. The tenure treasuries down fourteen thirty seconds, 0:04:32.880 --> 0:04:35.760 the old three point zero seven percent. Ahead of Chairman 0:04:35.800 --> 0:04:39.880 Powell's keynote at the Jackson Hole Economic Symposium, what will 0:04:39.960 --> 0:04:42.839 he say? We check in next with Sarah House of 0:04:42.880 --> 0:04:48.640 Wells Fargo. This is Bloomberg Bloomberg eleven three oh weather 0:04:48.680 --> 0:04:51.400 partly Sunday today, maybe some showers and storms this afternoon 0:04:51.400 --> 0:04:53.599 with a Higheer ninety degrees. Oper eight is a mix 0:04:53.640 --> 0:04:57.320 of sun clouds tomorrow Oper eighties sunshine for Sunday right 0:04:57.320 --> 0:05:03.680 now seventy six in Central Park Markets, headlines and breaking 0:05:03.680 --> 0:05:06.600 news twenty four hours a day at Bloomberg dot Com, 0:05:06.720 --> 0:05:10.240 the Bloomberg Business Outland at Bloomberg Quick Tape. This is 0:05:10.279 --> 0:05:19.279 a Bloomberg Business lash and I'm Karen Moscow. You watch 0:05:19.320 --> 0:05:22.640 Dock Index futures are slipping this morning. The dollar is 0:05:22.720 --> 0:05:25.440 climbing as a chorus of Federal Reserve hawks prepare the 0:05:25.480 --> 0:05:28.640 ground for a much anticipated speech by Chair Jerome Powell 0:05:29.000 --> 0:05:31.960 that's set to shape views on the pace of monetary tightening. 0:05:32.160 --> 0:05:34.440 We checked the markets every fifteen minutes throughout the trading 0:05:34.520 --> 0:05:37.039 day on bloomberg S and p futures are done about 0:05:37.080 --> 0:05:39.920 fourteen points this morning. Down futures down sixty eight and 0:05:40.040 --> 0:05:43.000 NAS deck futures down sixty. The decks in Germany's down 0:05:43.040 --> 0:05:45.679 a tenth of upper sent ten. Your treasury down twelve 0:05:45.680 --> 0:05:48.560 thirty seconds. You'll three point oh seven percent. They yield 0:05:48.560 --> 0:05:51.240 on the two year three point three eight percent. Nin 0:05:51.360 --> 0:05:53.800 Max Screwed oil is up six tents percent or fifty 0:05:53.800 --> 0:05:56.159 eight cents at ninety three dollars ten cents of barrel 0:05:56.440 --> 0:05:58.960 comex School done about half percent or eight dollars at 0:05:59.000 --> 0:06:02.440 seventeen sixty three forty announced. The euro is at point 0:06:03.520 --> 0:06:06.000 against the dollar. British found one point one eight one 0:06:06.120 --> 0:06:09.039 nine and again one thirty six point eight six and 0:06:09.080 --> 0:06:14.120 Bitcoin this morning it's down one per cent at thirty dollars. 0:06:14.360 --> 0:06:16.919 That's a Bloomberg business flash. Now here's Michael Barr with 0:06:17.040 --> 0:06:19.599 more on what's going on around the world. Michael, good Morning, 0:06:19.680 --> 0:06:22.920 Good Morning, Karen. A federal judge says the Justice Department 0:06:22.960 --> 0:06:26.599 has until noon to release an affidavit used to justify 0:06:26.680 --> 0:06:30.640 the FBI search of former President Trump's Florida home. The 0:06:30.760 --> 0:06:35.160 judge says he's accepted the Justice Department's redactions and reasons 0:06:35.160 --> 0:06:39.720 for blacking out information about witnesses, agents, and uncharged parties 0:06:39.720 --> 0:06:43.120 in the document. A major nuclear power plant in Ukraine 0:06:43.160 --> 0:06:47.480 was temporarily cut off from the electricity grid. The Zaporiza 0:06:47.800 --> 0:06:51.520 nuclear plant, occupied by the Russians went offline, causing a 0:06:51.560 --> 0:06:54.120 blackout in the region and has caused more fears of 0:06:54.160 --> 0:06:57.520 a nuclear disaster. In baseball, the Yankees beat the A's 0:06:57.640 --> 0:07:00.560 thirteen four, The Mets beat the Rockies three one. The 0:07:00.600 --> 0:07:04.840 Red Sox lost the Orioles one. Thursday Night NFL preseason action. 0:07:04.920 --> 0:07:08.039 The fort Is lost with the Texans seventeen. ZIP Global 0:07:08.040 --> 0:07:11.000 News twenty four hours a day on airrand on Bloomberg 0:07:11.080 --> 0:07:14.400 Quick Take power by more than seven hundred journalists analysts 0:07:14.440 --> 0:07:17.080 more than a hundred twenty countries, Michael bar This is 0:07:17.120 --> 0:07:19.320 Bloomberg Nathan Michael, thank you. We are live from the 0:07:19.320 --> 0:07:22.720 Bloomberg Interactive Broker Studios where it is five nineteen on 0:07:22.880 --> 0:07:25.800 Wall Street, which puts us four hours in forty one 0:07:25.840 --> 0:07:30.000 minutes away from Chairman Jerome Powell's speech at the annual 0:07:30.120 --> 0:07:33.320 Jackson Hole Economic Symposium. Let's get you set four it 0:07:33.440 --> 0:07:37.520 this morning. Wells Fargo Senior economist Sarah House joins us 0:07:37.560 --> 0:07:40.760 ahead of the keynote address. Sarah, what do you think 0:07:40.800 --> 0:07:45.680 Sherman Powell will say? What do you think he should say? Well, 0:07:45.720 --> 0:07:49.800 I think what we see is overall that reeration of 0:07:49.960 --> 0:07:59.200 the sell bringing baking back downs. I think we're gonna 0:07:59.200 --> 0:08:02.680 try to establish your line here, Sarah, there is a 0:08:02.720 --> 0:08:07.120 lot of static. Maybe joining us from Jackson Hole will 0:08:07.160 --> 0:08:09.440 try to clear that up with her this morning as 0:08:09.440 --> 0:08:12.720 we uh take a look at the markets ahead of 0:08:12.760 --> 0:08:16.280 the speech. Futures appointing to a little bit of losses 0:08:16.320 --> 0:08:19.760 here with SMP futures down thirteen points, Nasdaq futures leading 0:08:19.760 --> 0:08:23.119 the declines. We've had seen a lot of volatility, of course, 0:08:23.160 --> 0:08:26.360 all week long ahead of Chairman Powell's addressed. NASTAC futures 0:08:26.400 --> 0:08:28.920 right now are down about a half percent or sixty 0:08:28.960 --> 0:08:32.080 three points. Lots of movement in the bond space as well. 0:08:32.120 --> 0:08:35.520 We've got the tenure treasury right now down thirteen thirty 0:08:35.559 --> 0:08:38.800 seconds for yield of three point zero seven percent, kneeled 0:08:38.840 --> 0:08:41.000 on the two year three point three eight percent. A 0:08:41.040 --> 0:08:44.760 lot of Treasury watchers are looking for even more volatility 0:08:44.800 --> 0:08:47.760 coming off of Chairman Powell's speech later on this morning, 0:08:47.760 --> 0:08:50.520 and as we look ahead to more economic data ahead 0:08:50.520 --> 0:08:54.280 of the f O m c uh next meeting at 0:08:54.320 --> 0:08:56.760 the end of next month. Sair House is back with 0:08:56.840 --> 0:08:59.000 us this morning. Hope your line sounding a little bit 0:08:59.040 --> 0:09:01.520 better this morning, to make sure, Sarah that we get 0:09:01.559 --> 0:09:05.040 clarity on whether you think Chairman Powell is going to 0:09:05.120 --> 0:09:08.520 deliver clarity later this morning. I think he's going to 0:09:08.640 --> 0:09:12.280 keep his options open and suggest that the Fed does 0:09:12.360 --> 0:09:15.480 remain nimble and we'll be reacting to the data. So 0:09:15.520 --> 0:09:17.440 I don't think we're going to get any strong hints 0:09:17.440 --> 0:09:21.079 about fifty or seventy five at the upcoming September meeting. 0:09:21.720 --> 0:09:24.640 The Committee agrees that rates need to go higher, but 0:09:24.800 --> 0:09:28.920 I think they're they're trying to acknowledge the fact that 0:09:28.960 --> 0:09:30.920 we are beginning to see growth cool. There are some 0:09:31.040 --> 0:09:34.960 at least tentative signs of inflation beginning to ease, but 0:09:35.200 --> 0:09:38.040 there's still so much uncertainty about the path ahead, and 0:09:38.080 --> 0:09:40.000 so I think they're going to suggest that they will 0:09:40.360 --> 0:09:43.280 will do what is necessary to bring down inflation. Is 0:09:43.320 --> 0:09:45.840 that what you've been hearing from, Sorry, Sarah, is that 0:09:45.840 --> 0:09:47.560 what you've been hearing from some of the other FED 0:09:47.640 --> 0:09:50.920 speakers that we've gotten to hear from ahead of Chairman 0:09:50.960 --> 0:09:55.040 Powell's speech this morning. A lot of hawkish talk ahead 0:09:55.160 --> 0:09:59.440 of this much watched address later today, a lot of 0:09:59.440 --> 0:10:03.400 pokished hawk when it relates to bringing down inflation. So 0:10:03.800 --> 0:10:07.000 you did have Bullard out yesterday reiterating that he's in 0:10:07.040 --> 0:10:09.840 favor of front loading, thinks we need to get rates 0:10:09.920 --> 0:10:13.360 up to a range of three seventy five or by 0:10:13.360 --> 0:10:16.480 by the end of this year. So I think so, 0:10:16.520 --> 0:10:18.599 I think we're seeing that from from some of the 0:10:18.679 --> 0:10:21.240 said speakers, but those tended lean a little bit more 0:10:21.280 --> 0:10:24.679 hawkish than than Pow has I think, in some ways 0:10:24.760 --> 0:10:26.800 is a little bit more hesitant. We saw that in 0:10:26.840 --> 0:10:29.880 the press conference coming out of the July meeting, where 0:10:30.240 --> 0:10:32.160 he was flagging the fact that we haven't seen the 0:10:32.200 --> 0:10:35.560 full effects of tightening to date, and so I think 0:10:35.600 --> 0:10:38.280 there there could be perhaps a little bit more of 0:10:38.040 --> 0:10:40.840 a of a balanced tone or some some hints of 0:10:41.000 --> 0:10:43.920 hesitation with within his speech, relatives to what we've seen 0:10:43.960 --> 0:10:48.440 from some of the more hawkish members speaking before. Before today, 0:10:48.559 --> 0:10:50.960 obviously there's been a lot of attention on core PC 0:10:51.400 --> 0:10:54.560 as a data point for Powell and company to look 0:10:54.600 --> 0:10:57.400 at when it comes to whether they're winning the inflation fight. 0:10:57.520 --> 0:11:01.160 What other data points do you think the central banks 0:11:01.160 --> 0:11:03.960 should be looking at? So I think right now are 0:11:04.000 --> 0:11:06.320 really important. One is what we're seeing in terms of 0:11:06.320 --> 0:11:09.240 wages and labor costs. So we had another really strong 0:11:09.280 --> 0:11:14.120 e c I last quarter. Average early wages also re accelerating, 0:11:14.240 --> 0:11:17.959 So we'll get another look at that next Friday with 0:11:17.960 --> 0:11:20.240 with the jobs report, and I think that's really important. 0:11:20.240 --> 0:11:23.839 Where we're certainly seeing some easy pressures in inflation coming 0:11:23.880 --> 0:11:27.920 from supply chain shipping costs going down, supplier delivery time easy, 0:11:28.400 --> 0:11:30.960 but we haven't seen that from the labor market, and 0:11:31.000 --> 0:11:34.040 so we're seeing labor costs still running out a pace 0:11:34.600 --> 0:11:39.120 well above two inflation consistent levels. And this is the 0:11:39.240 --> 0:11:41.800 area of inflation that is well within the Fed's remit 0:11:41.920 --> 0:11:44.000 so I think there's there's still a lot of concern 0:11:44.040 --> 0:11:47.480 out there over how quickly inflation might cool and how 0:11:47.559 --> 0:11:49.560 easily it might get back to two percent. It's not 0:11:49.600 --> 0:11:51.480 going to be an easy path ahead, even with the 0:11:51.480 --> 0:11:54.680 titan that we've seen today. Again, Sarah, thanks for being 0:11:54.679 --> 0:11:56.640 with us this morning. Glad we got you back on 0:11:56.679 --> 0:11:59.840 with a clearer line there. That's Sarah house Wells Farges 0:12:00.120 --> 0:12:05.120 senior economists. As we get set four Chairman Powell's address 0:12:05.400 --> 0:12:08.960 later on this morning ten am Wall Street time. Of course, 0:12:08.960 --> 0:12:10.959 we'll be hearing from a lot of head speakers ahead 0:12:11.000 --> 0:12:12.720 of that as well. So you want to stay with 0:12:12.800 --> 0:12:16.240 Bloomberg Radio for our complete coverage of the Jackson Hole 0:12:16.320 --> 0:12:20.200 Economic Symposium. It continues this morning on a special edition 0:12:20.240 --> 0:12:23.600 of Bloomberg Surveillance Live from Jackson Hole with Tom Keene, 0:12:23.679 --> 0:12:26.240 Jonathan Farrell, and Lisa Brahmoy. It's up begins at seven 0:12:26.240 --> 0:12:30.240 am Wall Street time. Ahead of the remarks from Chairman Powell, 0:12:30.559 --> 0:12:33.840 will bring to you live at ten s ANDP Futures 0:12:33.880 --> 0:12:36.760 down fourteen points now down, Futures down seventy one. Nasdaq 0:12:36.800 --> 0:12:41.080 Future is lower by sixty two points. You are listening 0:12:41.120 --> 0:12:49.160 to Bloomberg Daybreak Bloomberg eleven three oh Weather partly sunny, 0:12:49.320 --> 0:12:51.800 some showers and storms developing this afternoon with highs in 0:12:51.800 --> 0:12:54.120 the upper eighties, mix of sun and clouds. Tomorrow upper 0:12:54.160 --> 0:12:57.040 eighties will be in the upper eighties with sunshine on Sunday. 0:12:57.160 --> 0:13:03.679 Right now seventies six in Central Park. My from the 0:13:03.720 --> 0:13:06.960 Bloomberg into Ramptor Berger Studios. This is Bloomberg day Break 0:13:06.960 --> 0:13:10.400 for Friday, August twenty six two. Coming up this hour. 0:13:10.720 --> 0:13:13.720 FED officials take a hawkish stance ahead of j Powell's 0:13:13.800 --> 0:13:16.600 Jackson Whole speech. A judge orders Twitter to hand more 0:13:16.679 --> 0:13:20.000 data to Elon Musk. Guess their legal battle continues. Dell 0:13:20.120 --> 0:13:23.800 and salesforce slide as more tech companies report tighter times ahead. 0:13:24.080 --> 0:13:27.520 The first MTA hearing on congestion pricing in Manhattan is 0:13:27.520 --> 0:13:30.120 in the books. Plus we should see soon and redacted 0:13:30.160 --> 0:13:33.760 AFFI David Search Trump's mora lago with State. I'm Michael Barr. 0:13:33.800 --> 0:13:36.640 More ahead, I'm stash in sports. Twenty hits for the 0:13:36.720 --> 0:13:39.559 Yankees and easy win at Oakland. Jake Graham pitched the 0:13:39.600 --> 0:13:45.880 Mets to victory over Colorado. That's all stread ahead on 0:13:45.960 --> 0:13:49.200 Bloomberg day Break on Bloomberg eleven Tree, on New York, 0:13:49.320 --> 0:13:53.880 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:13:54.000 --> 0:13:58.280 Bloomberg nine sixties, San Francisco, Syrius x M one nineteen 0:13:58.440 --> 0:14:01.199 and around the world on blue Berg Radio dot com 0:14:01.280 --> 0:14:09.000 and via the Bloomberg Business Actor. And Good Friday morning. 0:14:09.040 --> 0:14:12.320 I'm Nathan Hager and I'm Karen Moscow US not index 0:14:12.400 --> 0:14:15.120 futures are lower this morning. We are coming up to 0:14:15.240 --> 0:14:17.000 five oh one on Wall Street, and we check the 0:14:17.040 --> 0:14:20.160 markets every fifteen minutes throughout the trading day. On Bloomberg 0:14:20.560 --> 0:14:24.360 SMP futures are down thirteen points down, futures down sixty nine, 0:14:24.400 --> 0:14:27.600 and NASDACK futures down fifty nine. The decks in Germany 0:14:27.680 --> 0:14:29.840 is that will change the ten year treasury down twelve 0:14:29.840 --> 0:14:32.680 thirty seconds. He'll three point oh seven percent and the 0:14:32.800 --> 0:14:36.360 yield on the two year three point three seven percent. Nathan, Karen, 0:14:36.440 --> 0:14:38.720 it is the event Wall Street and global markets have 0:14:38.760 --> 0:14:42.160 been waiting for all week long. Federal Reserve Chairman Jerome 0:14:42.200 --> 0:14:45.520 Powell delivers the speech at the Jackson Hole Economic Symposium 0:14:45.560 --> 0:14:49.480 at ten am Wall Street time today. Bloomberg's Tom Keene 0:14:49.560 --> 0:14:52.360 is covering the event for us. Good morning, Tom, Karen 0:14:52.360 --> 0:14:54.760 and Nathan. Of course, all eyes on Chairman Paul. This 0:14:54.800 --> 0:14:58.000 will be a different speech, widely anticipated they all are. 0:14:58.480 --> 0:15:01.400 But what's different this time is the stakes on interest 0:15:01.480 --> 0:15:05.360 rate policy. What's widely understood is it's not just the speech, 0:15:05.400 --> 0:15:08.000 it's a few and key reports that we're gonna see 0:15:08.040 --> 0:15:11.600 into September and that important FED meaning. So it's not 0:15:11.680 --> 0:15:14.800 just the speech, it's the data reports, but it's also 0:15:14.880 --> 0:15:17.680 the news around the world, the idea of what's going 0:15:17.720 --> 0:15:20.520 on in Europe and China flat on their back. All 0:15:20.560 --> 0:15:23.880 around the world will be watching Chairman Paul this morning 0:15:24.040 --> 0:15:26.040 certainly will be Thank you for that, Tom, and please 0:15:26.040 --> 0:15:28.680 follow Bloomberg Radio and television all morning long for the 0:15:28.760 --> 0:15:31.680 latest from Jackson Hole. Are on site coverage to the 0:15:31.760 --> 0:15:34.840 kickoff of Powell speech begins at seven am with a 0:15:34.880 --> 0:15:38.640 special edition of Bloomberg Surveillance with Tom Keene, Lisa A. Bramowitz, 0:15:38.680 --> 0:15:41.760 and Jonathan faroh Well. Nathan Central Banker is stressed the 0:15:41.840 --> 0:15:44.880 need to keep raising interest rates at Jackson Hall, St. Louis. 0:15:44.880 --> 0:15:48.160 FED chief James Bullard said officials should lift their policy 0:15:48.200 --> 0:15:51.240 benchmark to a three point seven five percent to four 0:15:51.280 --> 0:15:55.160 percent range by year end. Philadelphia Fed President Patrick Harker 0:15:55.200 --> 0:15:59.480 and Atlanta FED President Raphael Bostick also called for continued hikes. 0:15:59.760 --> 0:16:02.320 Can To City Fed President Es your George shared her 0:16:02.400 --> 0:16:06.320 view on Bloomberg Television. Very important that we are clear 0:16:06.360 --> 0:16:09.400 in our communication about the destination we're headed. And I 0:16:09.400 --> 0:16:12.400 think that destination is important, which is we have to 0:16:12.400 --> 0:16:15.560 get interest rates higher to slow down demand and bring 0:16:15.600 --> 0:16:18.840 inflation back to our target. Kansas City Fed President Es 0:16:18.880 --> 0:16:21.320 Your George also said there was more room to go 0:16:21.520 --> 0:16:24.920 and asked how high the Fed should push borrowing costs. Well, Karen, 0:16:24.960 --> 0:16:27.040 Markets will be looking for any sort of signals Pal 0:16:27.120 --> 0:16:28.960 might give when it comes to rate hikes. In his 0:16:29.000 --> 0:16:32.440 speech at ten am, BEMO Capital Market senior economist Jennifer 0:16:32.520 --> 0:16:34.800 Lee does not think the FED share will change his 0:16:34.880 --> 0:16:37.840 recent guidance. I think he's going to stay on the 0:16:37.880 --> 0:16:40.600 hawkers truck. I don't know why he would change his 0:16:40.640 --> 0:16:43.600 tone so quickly. Yes, we've had some weaker, you know, 0:16:43.640 --> 0:16:46.560 economic data, especially on the housing front. We finally saw 0:16:46.640 --> 0:16:49.320 some pullback on the headline inflation. But you know it's 0:16:49.320 --> 0:16:51.920 gonna be far, far too soon to bring the dovish bell. 0:16:52.120 --> 0:16:55.080 Bemo Capital Market Senior economist Jennifer Lee says the next 0:16:55.120 --> 0:16:57.280 major event for the Fed to watch is the CPI 0:16:57.400 --> 0:17:01.360 report in three weeks. Nathan just as Well speech begins, 0:17:01.480 --> 0:17:04.959 we'll get a key economic report, and Bloomberg'svinnidale Judais has 0:17:05.000 --> 0:17:08.600 the details. In early August, the university did for Michigan's 0:17:08.600 --> 0:17:11.920 consumer sentiment index hovard new a record low, and today's 0:17:11.960 --> 0:17:14.960 figures on late August aren't expected to be much better 0:17:15.080 --> 0:17:19.159 Bloomberg Economics, as Americans recognized, there will be challenging months 0:17:19.200 --> 0:17:22.840 just ahead, even with today's rising wages and low unemployment. 0:17:23.000 --> 0:17:26.520 Also on today's data calendar, government figures on July consumer 0:17:26.600 --> 0:17:29.280 spending and it could be tempid with inflation running hot. 0:17:29.359 --> 0:17:32.159 Then he dealt Judais Bloomberg dey break Okayvinny, thank you. 0:17:32.240 --> 0:17:35.080 Overseas stocks in Asia rows helped by the tech sector 0:17:35.119 --> 0:17:38.360 after talks between Beijing and Washington to avoid the delisting 0:17:38.400 --> 0:17:40.680 of companies in New York was said to show signs 0:17:40.680 --> 0:17:44.360 of progress well the geo politics Now, Nathan Tennessee Senator 0:17:44.400 --> 0:17:47.280 Marsha Blackburn is in Taiwan, the third visit by an 0:17:47.320 --> 0:17:51.040 American dignitary this month. Senator Blackburn held several meetings there, 0:17:51.040 --> 0:17:56.240 including with Taiwan's president, the opportunity to talk with her 0:17:56.840 --> 0:18:02.320 that hopes, dream plans, and approaches for Taiwan, and how 0:18:02.400 --> 0:18:07.760 they recame their independent. Tennessee Senator Marsha Blackburn says the 0:18:07.840 --> 0:18:11.480 US will continue to support Taiwan's independence. Back at Homecaen, 0:18:11.520 --> 0:18:14.920 President Biden campaign for Democrats in Maryland yesterday ahead of 0:18:14.960 --> 0:18:17.879 November's mid terms. The President aimed his attacks on former 0:18:17.880 --> 0:18:22.520 President Trump and what he called ultra mega Republicans. Republicans 0:18:22.520 --> 0:18:25.560 don't just threaten our personal rights and economic security, they're 0:18:25.560 --> 0:18:28.840 a threat to our very democracy. They refused to accept 0:18:28.840 --> 0:18:32.520 the will of the people. They embrace, embrace political violence. 0:18:32.640 --> 0:18:35.560 President Biden also said the so called mega philosophy is 0:18:35.760 --> 0:18:39.480 semi fascism. On the Corporate news Now Nathan, a couple 0:18:39.520 --> 0:18:42.280 of tech companies released a bleak economic data and fell 0:18:42.359 --> 0:18:45.840 at the close yesterday. Dell Technologies gave our revenue forecast 0:18:45.920 --> 0:18:48.880 I fell short of estimates, and Salesforce also slipped after 0:18:48.920 --> 0:18:52.320 its quarterly revenue fell short of analysts estimates. Dell shares 0:18:52.320 --> 0:18:54.560 are lower this morning, down four point two per cent, 0:18:55.160 --> 0:18:58.159 to Twitter Now Karen and its ongoing battle with Elon Musk. 0:18:58.200 --> 0:19:00.680 A judge has ordered the social media giant to hand 0:19:00.720 --> 0:19:04.680 over info. Delaware Chancery Court Judge Kathleen McCormick rolled the 0:19:04.680 --> 0:19:07.720 Twitter has to turn over information about nine thousand accounts 0:19:07.720 --> 0:19:10.520 that surveyed last year. She wants the company to identify 0:19:10.600 --> 0:19:14.240 which had human beings attached to them. McCormick says Twitter 0:19:14.320 --> 0:19:17.080 also must produce documents sufficient to show how those nine 0:19:17.080 --> 0:19:20.080 thousand accounts were selected for review. At a hearing this week, 0:19:20.160 --> 0:19:24.359 must lawyers accused their Twitter counterparts of stonewalling on Bot's information. 0:19:24.680 --> 0:19:27.680 Musk thinks that gives him reason to exit his bid 0:19:27.760 --> 0:19:31.000 for the platform. And another quick corporate note here, Nathan 0:19:31.000 --> 0:19:35.920 pharmaceutical giant Mark's pursuit to buy cancer drugmaker Sigen has stalled, 0:19:36.000 --> 0:19:38.800 threatening Murk's biggest deal in more than a decade. The 0:19:38.840 --> 0:19:41.720 companies have reportedly failed to agree on a price to 0:19:41.800 --> 0:19:47.040 this point. And futures Yeah, well check markets now, Karen, 0:19:47.200 --> 0:19:51.240 ahead of the uh uh, the much watched speech coming 0:19:51.280 --> 0:19:53.680 up from Fed chair Palace and p futures right now 0:19:53.680 --> 0:19:57.400 are down fourteen points now, futures down seventy eight. NASDAC 0:19:57.440 --> 0:20:00.000 futures are lower by sixty one points the tenure treasure. 0:20:00.000 --> 0:20:02.640 He's down fourteen thirty seconds for yield of three point 0:20:02.760 --> 0:20:05.600 zero seven percent. Name x Screws hired by six tenths 0:20:05.600 --> 0:20:08.520 per cent to ninety three dollars eleven cents of barrel, 0:20:08.840 --> 0:20:12.920 and the euro right now zero point nine four against 0:20:12.920 --> 0:20:16.159 the dollar. Straight ahead, we'll have your latest local headlines 0:20:16.240 --> 0:20:20.120 and a check of sports. You are listening to Bloomberg Daybreak, 0:20:22.600 --> 0:20:27.120 broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:27.240 --> 0:20:31.159 Bloomberg Living free to Washington, d C, Bloomberg N one 0:20:31.320 --> 0:20:34.560 to Boston, Bloomberg one O six one to San Francisco, 0:20:34.640 --> 0:20:38.080 Bloomberg NUN sixteen to the country Sirius XM Chado one 0:20:38.119 --> 0:20:41.240 nineteen and around the globe to Bloomberg Business app in 0:20:41.320 --> 0:20:51.080 Bloomberg Radio dot Com. This is Bloomberg Daybreak. It is 0:20:51.160 --> 0:20:53.600 five thirty on Wall Street. Good morning. I'm Nathan Hager 0:20:53.880 --> 0:20:56.639 and I'm Karen Moscow. We are just about four hours 0:20:56.720 --> 0:20:58.879 away from the open of US trading. Let's get you 0:20:58.880 --> 0:21:00.119 have to date on the news you need to know 0:21:00.200 --> 0:21:02.600 at this hour. We begin with the Federal Reserve Chair J. 0:21:02.720 --> 0:21:07.359 Powell's address at the Jackson Hole Economic Symposium this morning. 0:21:07.440 --> 0:21:10.680 Several FED speakers have discussed monetary policy at Jackson Hole. 0:21:10.960 --> 0:21:14.520 Kansas City Fan President Esther George told Bloomberg Television that 0:21:14.680 --> 0:21:17.800 once rates get higher, they may have to stay there 0:21:17.880 --> 0:21:21.400 for a while. We have more room to go, that 0:21:21.600 --> 0:21:23.920 we would bring those rates down quickly, and I've seen 0:21:23.960 --> 0:21:26.280 that in some of the forecasts. Seems a bit remarkable 0:21:26.320 --> 0:21:28.679 to me. I think we will have to hold and 0:21:28.800 --> 0:21:31.840 Kansas City Fed President Esther George also said there was 0:21:31.880 --> 0:21:33.920 more room to go and asked how high the FED 0:21:33.960 --> 0:21:37.120 should push borrowing costs. Please follow Bloomberg Radio and Television 0:21:37.160 --> 0:21:39.880 all morning long for the latest from Jackson Hole. Are 0:21:40.000 --> 0:21:42.880 on site. Coverage begins at seven am Wall Street Time 0:21:42.920 --> 0:21:47.119 with a special edition of Bloomberg Surveillance to Politics Now, Karen. 0:21:47.160 --> 0:21:50.399 President Biden campaign for Democrats in Maryland yesterday ahead of 0:21:50.440 --> 0:21:52.920 November's mid terms, and he aimed as attacks on former 0:21:52.960 --> 0:21:56.600 President Donald Trump and what he called ultra mega Republicans. 0:21:57.080 --> 0:22:00.720 We must be stronger, more determined, and more minute to 0:22:00.960 --> 0:22:05.640 saving America. Then the magar Republics are destroyed America. President 0:22:05.720 --> 0:22:08.119 by And also said the so called mega philosophy is 0:22:08.320 --> 0:22:14.080 semi fascism. Meanwhile, Nathan overseas Tennessee Senator Marsha blackburnes in Taiwan, 0:22:14.200 --> 0:22:17.240 the third visit by an American dignitary this month. Senator 0:22:17.280 --> 0:22:20.120 Blackburn met with Taiwan's president and said the US will 0:22:20.160 --> 0:22:23.920 continue to support Taiwan's independence. To Corporate News Now, Karen 0:22:23.960 --> 0:22:27.280 and to Twitter with developments in its battle with Elon Musk, 0:22:27.359 --> 0:22:30.800