WEBVTT - Bloomberg Daybreak: September 8, 2022 - Hour 2 (Radio) 0:00:01.680 --> 0:00:05.320 Live from the Bloomberg Interactive Burger Studios is Bloomberg Day 0:00:05.440 --> 0:00:08.879 Right for Thursday, September eight two. Coming up this hour, 0:00:09.200 --> 0:00:12.000 market Space for a rate hike from the European Central 0:00:12.000 --> 0:00:14.960 Bank and fresh remarks from J. Powell. The US holds 0:00:14.960 --> 0:00:17.680 stocks with Asian nations in a move to counter China, 0:00:17.880 --> 0:00:21.240 plus concerns over lockdowns in China and growing tensions with 0:00:21.400 --> 0:00:24.720 Taiwan and Japanese officials meet to way what's next for 0:00:24.840 --> 0:00:27.720 the yen. New York lifts the state mass man date 0:00:27.800 --> 0:00:31.040 for public transit and yellow calms in the city appear 0:00:31.160 --> 0:00:34.720 on the Uber Ramp. I'm John Tucker, Those stories straight ahead. 0:00:35.080 --> 0:00:37.400 I'm John Stashour and sports the Mets and Yankees with 0:00:37.479 --> 0:00:40.760 doubleheaders swaves another late night at the US Open. They're 0:00:40.800 --> 0:00:45.720 down to the final four. That's all trendy ahead on 0:00:45.840 --> 0:00:49.200 Bloomberg Day Break on Bloomberg Eliving Free on New York, 0:00:49.400 --> 0:00:54.080 Bloomberg one, Washington, d C, Bloomberg one, THO six one, Boston, 0:00:54.360 --> 0:00:58.520 Bloomberg nine sixties and Francisco syrius x M one nine 0:00:58.520 --> 0:01:01.639 Team and around the world on Bloomberg Radio dot com 0:01:01.880 --> 0:01:08.399 and via the Bloomberg Business app. Good Morning, I'm Nathan 0:01:08.480 --> 0:01:11.679 Higer and I'm Karen Moscow, US dot in next. Futures 0:01:11.720 --> 0:01:14.120 are little change this morning. We are coming up to 0:01:14.160 --> 0:01:15.800 six o one on Wall Street. I mean checked the 0:01:15.800 --> 0:01:19.520 markets every fifteen minutes throughout the trading day. On Bloomberg again, 0:01:19.600 --> 0:01:22.280 futures are a little change. The decks in Germany is 0:01:22.360 --> 0:01:25.040 down about a tenth of uppercent ten year treasury up 0:01:25.080 --> 0:01:27.760 seven thirty seconds. You have three point to three percent 0:01:27.840 --> 0:01:30.080 and a yield on the two year three point four 0:01:30.200 --> 0:01:33.200 three percent. And I'm ex screwed. Oil is down half 0:01:33.200 --> 0:01:36.559 percent and eighty one dollar fifty three cents a barrel. Nathan, Karen. 0:01:36.600 --> 0:01:39.240 We begin overseas this morning. The European Central Bank is 0:01:39.240 --> 0:01:42.080 getting ready for its first monetary policy meeting since July, 0:01:42.200 --> 0:01:45.320 and economists expect the ECB to deliver a rate hike 0:01:45.440 --> 0:01:49.080 as high as seventy five basis points Bloomberg. Stephen Carroll 0:01:49.200 --> 0:01:51.880 joins us with more from London. Good morning, Stephen, Good 0:01:51.880 --> 0:01:54.840 morning Nathan and Karen. Yes, fifty or seventy five basis 0:01:54.920 --> 0:01:56.840 points not seen as the choice on the table for 0:01:56.920 --> 0:02:01.160 the ECB. Markets leaning towards a jumbo. If confirmed, it 0:02:01.160 --> 0:02:03.680 will be the first seventy five basis point increase for 0:02:03.720 --> 0:02:07.360 the bank since nine Back then, euro notes and coins 0:02:07.360 --> 0:02:10.560 weren't even in circulation. Policymakers want to get a grip 0:02:10.600 --> 0:02:13.520 on inflation that's running at a record nine point one percent. 0:02:13.720 --> 0:02:16.600 At to that rising fears of a recession A week 0:02:16.680 --> 0:02:19.120 you're out trading below parity with the dollar, adding to 0:02:19.160 --> 0:02:22.520 those woes as European countries pay more for imported oil 0:02:22.560 --> 0:02:27.440 and gas that's priced in dollars. I'm Stephen Carroll, Bloomberg Daybreak, right, Stephen, 0:02:27.440 --> 0:02:29.600 thank you. Back here in the US will be watching 0:02:29.720 --> 0:02:32.639 comments from Federal Reserve chair j. Powell is scheduled to 0:02:32.680 --> 0:02:35.000 take part in a moderated discussion hosted a bout the 0:02:35.040 --> 0:02:37.919 Cato Institute this morning. Stick with us for live coverage 0:02:37.919 --> 0:02:40.480 of his remarks starting around nine am Wall Street Time 0:02:40.520 --> 0:02:43.760 on Bloomberg Radio and television. Markets will be following those 0:02:43.760 --> 0:02:46.280 remarks closely here and After the release of the Fed's 0:02:46.320 --> 0:02:49.840 Beige Book yesterday, the Regional Survey indicated week prospects for 0:02:49.960 --> 0:02:53.400 economic expansion. Ryan Lamendez, advisor to the board of directors 0:02:53.400 --> 0:02:55.920 at the Currency Capital He says markets are pricing in 0:02:56.040 --> 0:02:59.120 interest rate hikes but may not be taking quantitative tiightening 0:02:59.160 --> 0:03:02.880 into account. Aggressive CUTI is actually doing what they say 0:03:02.919 --> 0:03:05.639 they were going to do, which is reduced their balance 0:03:05.680 --> 0:03:08.640 sheets by forty seven billion dollars a month or double that, 0:03:08.960 --> 0:03:11.720 and they have not done so. So Yes, risky assets 0:03:11.760 --> 0:03:14.400 are not pricing this because the Fed has showed that 0:03:14.440 --> 0:03:17.000 it is not doing it, and maybe we'll not do 0:03:17.040 --> 0:03:22.000 it more aggressive. Given the geopolitics, this might create not 0:03:22.080 --> 0:03:24.760 a hard landing but an actual crash. Ryan Lamand with 0:03:24.840 --> 0:03:28.079 SECURENCY capital, says investors should tread carefully as the FED 0:03:28.120 --> 0:03:31.840 reduces its balance sheet. Meantime, Nathan Goldman SAX is lifting 0:03:31.880 --> 0:03:34.519 its forecast for the pace of interest rate hikes. The 0:03:34.560 --> 0:03:36.720 bank now expects the Fed to hike by seventy five 0:03:36.760 --> 0:03:39.680 basis points this month and fifty basis points in November. 0:03:39.920 --> 0:03:42.880 The bank is also forecasting a twenty five basis point 0:03:42.960 --> 0:03:45.360 move in December. All right, let's turn to the market 0:03:45.400 --> 0:03:48.640 action now beginning in Asia. Stocks in the region rebounded 0:03:48.680 --> 0:03:52.520 from two year lows. Overnight bonds climbed after Australia's central 0:03:52.520 --> 0:03:55.320 banks signal the potential and two big interest rate hike 0:03:55.400 --> 0:03:58.120 Sploomberg's Juliette Sally joins US with the details from Singapore. 0:03:58.160 --> 0:04:00.440 Good morning, Juliette, Good morning Nathan and car. The regional 0:04:00.480 --> 0:04:03.040 index rose around one percent, led by games in Japan 0:04:03.120 --> 0:04:05.760 and Australia. All these stokes were bid along with bones 0:04:05.800 --> 0:04:08.200 after a b A. Governor Low indicated the case for 0:04:08.360 --> 0:04:12.240 slower monetary tightening is getting stronger as borrowing costs climbed. 0:04:12.360 --> 0:04:14.880 The AUSSI was the weakest G ten performer, and the 0:04:14.920 --> 0:04:17.839 off sho Uan remained under pressure despite the PBOC setting 0:04:17.880 --> 0:04:20.480 US stronger than expect could fix for a twelfth day 0:04:20.520 --> 0:04:23.960 in Singapore. Juliette Sally Bloomberg. Daybreak right, Julia, thank you 0:04:24.000 --> 0:04:26.159 all for keeping an eye on the yen this morning. 0:04:26.320 --> 0:04:29.600 It had biggest swings overnight weaker and then stronger, now 0:04:29.640 --> 0:04:32.200 weaker again. There are a poor set. Officials in Japan 0:04:32.240 --> 0:04:34.520 are meeting for the first times in June to discuss 0:04:34.560 --> 0:04:37.640 the situation. Checking the yen right now it's at one 0:04:37.760 --> 0:04:41.200 forty three point eight seven against the dollar. Staying overseas carent. 0:04:41.240 --> 0:04:43.800 We have a big move in geopolitics. The US is 0:04:43.839 --> 0:04:47.440 warning about Chinese threats to Taiwan. White House National Security 0:04:47.440 --> 0:04:50.039 Advisor Jake Sullivan says the US is working to alter 0:04:50.160 --> 0:04:52.599 policy toward the island in light of threats from Beijing. 0:04:52.920 --> 0:04:56.640 I think it remains a distinct threat that there could 0:04:56.680 --> 0:05:01.200 be a military contingency around Taiwan and UH. The People's 0:05:01.240 --> 0:05:04.120 Republic of China has actually stated his official policy that 0:05:04.200 --> 0:05:07.719 it is not taking the invasion of Taiwan off the table, 0:05:07.800 --> 0:05:11.039 that that remains one of the potential options for the 0:05:11.080 --> 0:05:14.640 reunification of Taiwan. National Security Advisor Jake Sullivan spoke on 0:05:14.680 --> 0:05:17.840 the David Rubinstein Show Peer to Peer Conversations. Catch the 0:05:17.880 --> 0:05:20.560 program later this month on Bloomberg Television. It's coming up 0:05:20.600 --> 0:05:24.200 September twenty one at nine pm Eastern meantime. Nathan the 0:05:24.320 --> 0:05:27.560 US is also taking aim at China on the economic front. 0:05:27.600 --> 0:05:29.880 The White House is hosting the first gathering of Asian 0:05:29.960 --> 0:05:33.640 nations over an economic agreement that aims to counter Beijing's 0:05:33.800 --> 0:05:36.919 rising influence in the region. It comes as Chinese President 0:05:36.920 --> 0:05:40.160 Sheijin Ping prepares to meet Russian President Vladimir Putin in 0:05:40.240 --> 0:05:44.560 person for the first time since Moscow invaded Ukraine. Bloomberg, 0:05:44.560 --> 0:05:48.839 Stephen Angle and Hong Kong states the agreement is unusually structured. 0:05:49.160 --> 0:05:52.599 It's a non traditional trade agreement that the United States 0:05:52.600 --> 0:05:55.320 and the Biden administration has come up with and has 0:05:55.400 --> 0:05:59.200 brought in a thirteen other countries in the Asia Pacific, 0:05:59.320 --> 0:06:01.080 and they're going to be meeting in Los Angeles in 0:06:01.120 --> 0:06:03.359 the inaugural meeting. It's gonna be a couple of days. 0:06:03.720 --> 0:06:07.320 It's not really a traditional ft A free trade agreement. 0:06:07.360 --> 0:06:10.840 It is not like TPP, it's not really aimed at 0:06:10.960 --> 0:06:14.040 cutting tariff and Bloomberry Stephen Angles says. Critics of the 0:06:14.080 --> 0:06:17.240 agreement argue it's too vague and want more details. All 0:06:17.240 --> 0:06:19.080 the while, in China, care in the city of cheng 0:06:19.160 --> 0:06:22.040 Do is extending a week long lockdown in most areas 0:06:22.080 --> 0:06:24.840 after an increase in COVID cases. Chengg Do is home 0:06:24.880 --> 0:06:27.599 to twenty one million people. It's the biggest city to 0:06:27.640 --> 0:06:31.400 shut since Shanghai's two months lockdown earlier this year. Authorities 0:06:31.440 --> 0:06:34.440 will continue mass testing and are pledging to eliminate community 0:06:34.520 --> 0:06:37.520 spread of the virus within a week. And finally, Nathan 0:06:37.640 --> 0:06:40.520 Let's talk, oil crudis some to an eight month low 0:06:40.560 --> 0:06:43.760 as investors assess global demand amid China lockdowns. At an 0:06:43.800 --> 0:06:47.360 economic slowdown, West Texas intermediate push back toward eighty three 0:06:47.360 --> 0:06:50.440 dollars a barrel after collapsing by almost six percent on Wednesday, 0:06:50.680 --> 0:06:54.159 the biggest laws since mid July. Checking prices right now 0:06:54.279 --> 0:06:56.559 not next screwed oils down half per cent or forty 0:06:56.760 --> 0:06:59.640 cents at eighty one dollars, fifty cents of barrel. Brent 0:06:59.839 --> 0:07:03.640 is down four ten percent at eighty seven dollars six since. 0:07:03.960 --> 0:07:08.360 Futures again, well, they're starting to show some declines here. 0:07:08.480 --> 0:07:11.680 S and P futures down around three points now, futures 0:07:11.720 --> 0:07:14.880 down nineteen, NASA futures down eleven. Straight ahead your latest 0:07:14.960 --> 0:07:23.360 level headlines plus the check of sports, and this is Bloomberg, right, Karen, 0:07:23.400 --> 0:07:25.480 thank you. Six o seven on Wall Street, sixty five 0:07:25.520 --> 0:07:28.520 degrees in Central park westbound l as jammed between the 0:07:28.520 --> 0:07:30.960 Grand Central park Ley and wood Haven Boulevard. Will tell 0:07:30.960 --> 0:07:33.400 you more in traffic shortly first, John Tucker's here with 0:07:33.440 --> 0:07:35.000 more on what else is going on in New York 0:07:35.040 --> 0:07:38.120 and around the world. John Nathan Governor Kafy Hoco has 0:07:38.160 --> 0:07:41.720 lifted the state's master requirement for public transit. It removes 0:07:41.800 --> 0:07:44.680 one of the last remaining government mandates of the pandemic. 0:07:45.000 --> 0:07:48.760 We're watching global trends, We're watching for variance We're watching 0:07:48.760 --> 0:07:51.240 for any updates and vaccines, but we do believe that 0:07:51.240 --> 0:07:53.920 we're in a good place right now, especially if New 0:07:53.960 --> 0:07:57.960 Yorkers take advantage of this booster focal making the announcement 0:07:58.000 --> 0:08:01.880 before receiving the Omacronspacis think booster mass will still be 0:08:01.960 --> 0:08:06.400 mandatory in healthcare settings and at adult care facilities. Uber 0:08:06.440 --> 0:08:09.680 will begin rolling out yellow taxi rides in New York. 0:08:09.840 --> 0:08:13.040 More in this report from bloombergs Jeff Bellinger, it's a 0:08:13.120 --> 0:08:15.920 long away to deffort to help these a driver shortage 0:08:15.920 --> 0:08:19.679 and pressure on fairs. The Big Apple's iconic yellow cabs 0:08:19.680 --> 0:08:22.480 have started to appear on the ride hailing platform for 0:08:22.520 --> 0:08:26.160 a randomized majority of active New York City riders, allowing 0:08:26.200 --> 0:08:29.080 them to book trips and taxis through the Uber app. 0:08:29.440 --> 0:08:32.520 Under an agreement, Uber customers can hail a taxi at 0:08:32.520 --> 0:08:35.280 the same price as an Uber X, and they'll see 0:08:35.280 --> 0:08:39.200 the fair upfront before requesting a trip. Driver's earnings will 0:08:39.240 --> 0:08:42.320 initially be based on the City Taxi and Limousine Commission 0:08:42.400 --> 0:08:45.520 mandated rates, which are close to thirty two dollars an hour. 0:08:45.960 --> 0:08:49.920 Jeff Bellinger, Bloomberg day Break. Abortion remains legal in Michigan. 0:08:49.960 --> 0:08:53.120 After a judge permanently blocked enforcement of a ninety one 0:08:53.160 --> 0:08:56.080 year old band that could have become law. It followed 0:08:56.120 --> 0:08:59.360 the U. S. Supreme Court's decision to overturn Roll versus Wade. 0:08:59.640 --> 0:09:01.959 The band, which was opposed to a separate law super 0:09:02.120 --> 0:09:06.559 Governagretchen Witmer, was on hold after a temporary ruling. President 0:09:06.559 --> 0:09:08.800 Biden will host a call with allies today about the 0:09:08.840 --> 0:09:12.760 next steps in support of Ukraine against Russian invasion and meantime, 0:09:12.800 --> 0:09:16.200 the Pentagon and send Ukraine it's most accurate artillery show 0:09:16.240 --> 0:09:20.040 the GPS guided Excalibur, a satellite guided weapon that can 0:09:20.160 --> 0:09:22.880 hit within seven ft of its target. The ex Caliber 0:09:23.080 --> 0:09:25.400 was first used in Iraq in two thousand and seven 0:09:25.760 --> 0:09:29.040 in the high profile killing of an Alcada leader. In 0:09:29.160 --> 0:09:33.240 California's power grid once again didn't break despite being stretched 0:09:33.280 --> 0:09:36.320 to the limit as the punishing heatwave there continues to 0:09:36.360 --> 0:09:39.720 test the state's ability to keep the lights on. Today 0:09:39.840 --> 0:09:42.880 promises to be another ten standoff. We at demand forecast 0:09:42.960 --> 0:09:46.920 near a record high in the California Independent System Operator 0:09:47.160 --> 0:09:51.520 already declaring an emergency. Watch Global News twenty four hours 0:09:51.520 --> 0:09:54.000 a day on irand on Bloomberg Quicktake. We're powered by 0:09:54.040 --> 0:09:56.640 more than seven hundred journalists and analysts in more than 0:09:56.720 --> 0:10:01.200 one countries on John Tucker and as bloom Nathan all Right, John, 0:10:01.240 --> 0:10:07.880 thanks coming up to six ten on Wall Street, John 0:10:07.880 --> 0:10:11.080 Staninshower's got the Bloomberg Sports Nathan Let's play two. Mets 0:10:11.080 --> 0:10:13.520 and Yankees both made up rainouts with doubleheaders, and both 0:10:13.559 --> 0:10:15.959 had swaves. Both had their aces on the mound for 0:10:16.000 --> 0:10:18.600 the night kept provided them with plenty of offense. That's 0:10:18.600 --> 0:10:20.920 not normally the case when Jacob de Grand pitches, but 0:10:21.040 --> 0:10:23.880 de Gram and the Mets beat the Pirates, tending up 0:10:24.040 --> 0:10:26.040 in after the Mets took the opener five to one 0:10:26.080 --> 0:10:28.280 at the Stadium, Garrett Cole on the mound of the 0:10:28.320 --> 0:10:31.160 second game, he struck out fourteen. Yanks beat the Twins 0:10:31.520 --> 0:10:34.320 seven to one. Isaiah Connord for Leffer with a grand slam. 0:10:34.360 --> 0:10:37.679 The opener included yet another home run behind you know 0:10:37.840 --> 0:10:40.800 who that you won swinging on hit in there in 0:10:40.800 --> 0:10:43.200 a deep Linton. That fall is high cut us far 0:10:43.600 --> 0:10:51.200 that up. God, It's amazing and I mean that absolutely. 0:10:51.760 --> 0:10:54.320 He's done it again. How does he do it? John 0:10:54.320 --> 0:10:57.040 Sterling w f A n SO now fifty five home 0:10:57.160 --> 0:10:59.440 runs for Aaron Judge the Yanks won five to four 0:10:59.440 --> 0:11:03.000 when they scored twice in the twelfth inning. Another incredibly 0:11:03.160 --> 0:11:06.320 late night slash early morning at the US Open. Forty 0:11:06.320 --> 0:11:09.440 eight hours after Carlos Alcarez one his fourth round matchup 0:11:09.480 --> 0:11:13.800 to three am, Alcarez was back finishing his quarterfinal victory 0:11:13.800 --> 0:11:17.480 over Yannick Center at two fifty am. The match went 0:11:17.559 --> 0:11:20.880 five hours fifteen minutes. Alcarez faced a match point in 0:11:20.880 --> 0:11:23.760 the fourth set. He's into the semis to play. Francis 0:11:23.760 --> 0:11:27.040 Tiafo's doing things no American man has done since Andy Roddick. 0:11:27.080 --> 0:11:29.800 Tiafo first for the US to be a Grand Slam 0:11:29.840 --> 0:11:32.440 semifinalists its two thousand nine, first to do it at 0:11:32.480 --> 0:11:34.720 the Open since oh six, and Tiafa is the first 0:11:35.000 --> 0:11:39.920 African American Men's Open semifinalists since Arthur Ash fifty years ago. 0:11:39.960 --> 0:11:43.240 They'll play the women's semifinals at Arthur Ash Stadium tonight. 0:11:43.559 --> 0:11:46.880 John stash Award Bloomberg Sports. Nathan thinks, John right now, 0:11:47.080 --> 0:11:50.640 S and P futures are moving, uh well, not really 0:11:50.640 --> 0:11:53.040 moving at all. They're little changed to the downside. Dal 0:11:53.120 --> 0:11:56.880 futures are up to Nastack futures are down two points 0:11:56.920 --> 0:12:01.160 so futures contracts pretty much. It will changed across the 0:12:01.200 --> 0:12:07.760 board ahead of an ECB decision. This is Bloomberg Bloomberg eleventh, 0:12:07.760 --> 0:12:10.719 three oh weather mostly sunny, high your eighty today will 0:12:10.760 --> 0:12:14.040 be in the low eighties in the sunshine. Tomorrow Saturday sunny, 0:12:14.040 --> 0:12:16.360 low eighties. Will call it partly sunny in low eighties 0:12:16.480 --> 0:12:22.440 on Sunday. Right now sixty five in Central Park Markets, 0:12:22.520 --> 0:12:25.600 headlines and breaking news twenty four hours a day at 0:12:25.640 --> 0:12:29.600 Bloomberg dot Com, the Bloomberg Business Outland. At Bloomberg Quick Tape, 0:12:30.160 --> 0:12:39.079 He's a Bloomberg Business flash and I'm Karen Moscow and 0:12:39.160 --> 0:12:42.400 European stocks and impairing early gains his investors brace for 0:12:42.440 --> 0:12:46.360 potential unprecedented monetary policy tening by the region's central Bank 0:12:46.440 --> 0:12:50.040 later today and new west Dock Index futures. They're little changed. 0:12:50.160 --> 0:12:52.400 We checked the markets every fifteen minutes throughout the trading 0:12:52.480 --> 0:12:55.319 day on Bloomberg again. Futures that will change this morning. 0:12:55.320 --> 0:12:57.480 The DECKS in Germany is down about three tenths of 0:12:57.600 --> 0:13:00.160 upper sent CAC in Paris is up three towns of 0:13:00.360 --> 0:13:02.320 percent of the foot see one hundred up two tenths 0:13:02.360 --> 0:13:05.240 of a percent. Ten year Treasury up six thirty seconds. 0:13:05.280 --> 0:13:07.160 You have three point to four percent. The yield on 0:13:07.240 --> 0:13:10.199 the two year three point for three percent. Nine X 0:13:10.240 --> 0:13:12.680 screwed oils down half percent or forty three cents at 0:13:12.720 --> 0:13:15.480 eighty one dollars fifty one cents, and barrel comics gold 0:13:15.559 --> 0:13:17.599 up two tens percent or three dollars ten cents is 0:13:17.679 --> 0:13:21.240 seventeen thirty ninety announced. The euro one point is zero 0:13:21.360 --> 0:13:24.000 zero zero two against the dollar British bound one point 0:13:24.000 --> 0:13:26.640 one four nine four and the yen one three point 0:13:26.640 --> 0:13:30.000 eight nine. And bitcoin this morning is down half percent 0:13:30.040 --> 0:13:33.280 in nineteen thousand, two hundred ninety dollars as a Bloomberg 0:13:33.280 --> 0:13:35.720 business flash. Now here's John Tucker with more on what's 0:13:35.760 --> 0:13:38.040 going on around the world. John you, good morning, Karen. 0:13:38.080 --> 0:13:40.880 Police at Memphis have arrested a nineteen year old and 0:13:40.960 --> 0:13:43.280 if four people were killed three others wounded in a 0:13:43.400 --> 0:13:47.679 random shooting spree that was live streamed on Facebook. President 0:13:47.760 --> 0:13:50.120 Biden holding back on a decision to scrap at a 0:13:50.200 --> 0:13:54.760 trump erad tariffs on China imports, the pentagoncent Ukraine. It's 0:13:54.840 --> 0:13:59.160 most accurate artillery shell. Sports Yankees beat the Twins in 0:13:59.320 --> 0:14:02.440 both games, so they're doublehead or the Men's also winners, 0:14:02.480 --> 0:14:05.960 beating the Pirates in both games of their doubleheader, as 0:14:06.040 --> 0:14:09.240 lose to the Braves, Giants lose to the Dodgers, the 0:14:09.280 --> 0:14:11.800 Red Sox lost to the Rays, the Orioles lost to 0:14:11.840 --> 0:14:14.880 the Blue Jays, the Nationals lost to the Cardinals, and 0:14:15.000 --> 0:14:18.120 the NFL season kicks off tonight. Global News twenty four 0:14:18.160 --> 0:14:21.960 hours a day on Bloomberg and on Bloomberg Quicktake power 0:14:21.960 --> 0:14:24.480 by more than twenty seven hundred journalists and analysts and 0:14:24.600 --> 0:14:27.520 more than one hundred twenty countries. I'm John Soccer. These 0:14:27.680 --> 0:14:29.840 is Bloomberg. Nathan. All right, John, Thanks, We've got some 0:14:29.920 --> 0:14:33.200 breaking headlines just crossing the Bloomberg terminal. We've just learned 0:14:33.240 --> 0:14:36.880 Secretary of State Anthony B. Lincoln is in Kiev on 0:14:36.920 --> 0:14:41.080 an unannounced visit. This comes just moments after the Secretary 0:14:41.080 --> 0:14:44.960 of State announced two billion dollars in new US military 0:14:45.000 --> 0:14:49.680 aid for Europe will continue following these breaking developments. Bring 0:14:49.720 --> 0:14:52.680 you more as we learn it right here on Bloomberg Radio. 0:14:52.760 --> 0:14:55.440 In the meantime, we are live from the Bloomberg Interactive 0:14:55.480 --> 0:14:58.480 Broker Studios, and you are listening to Bloomberg day Break 0:14:58.520 --> 0:15:02.720 as we count down to an ECB decision. We're joined 0:15:02.720 --> 0:15:06.960 by Bloomberg opinion columnist Marcus Ashworth as we await eight 0:15:07.040 --> 0:15:11.480 fifteen Wall Street time for the policy rate decision from 0:15:11.560 --> 0:15:17.080 the central bankers in Europe. Marcus, good morning. It feels 0:15:17.080 --> 0:15:19.720 like deja vaux. We're thinking about whether it's going to 0:15:19.800 --> 0:15:22.720 be fifty basis points or seventy five basis points. Isn't 0:15:22.720 --> 0:15:24.360 that what we did with the FED just one or 0:15:24.360 --> 0:15:27.280 two ago. Yeah, and we're thinking about the same thing 0:15:27.720 --> 0:15:29.440 the Bank of England as well. It seems to all 0:15:29.480 --> 0:15:32.640 the rage that's seventy five basis point to move the difference. 0:15:34.160 --> 0:15:36.360 It makes some sense in the concepts that you've got 0:15:36.400 --> 0:15:39.320 a very straw economy and you look, you know, the 0:15:39.320 --> 0:15:41.960 FEDS are a very clear mission and being reinforced by 0:15:42.080 --> 0:15:45.120 Jackson Hole. An address from from j. Powe which is 0:15:45.600 --> 0:15:49.520 I'm remittingly hawk ish. Um, so it's dragging the rest 0:15:49.520 --> 0:15:51.800 of the crowd along with it, and I think ec 0:15:52.000 --> 0:15:56.240 being very careful. Um that merely going on with seventy 0:15:56.240 --> 0:15:59.040 five basis point right height, which is now become the 0:15:59.040 --> 0:16:03.120 common accepted moved today. Only six out of twenty six 0:16:03.200 --> 0:16:05.320 or hour a minute is members of the government Council 0:16:05.320 --> 0:16:08.320 have sort of expressed the sort of hawkish view but 0:16:08.520 --> 0:16:11.120 for whatever reason, and we've learned to read these sort 0:16:11.120 --> 0:16:15.480 of smoke signals from the other press a little bit 0:16:15.520 --> 0:16:18.680 more seriously, as as clearly in July they were last 0:16:18.720 --> 0:16:21.520 minute decided on a fifty rather twenty five, and now 0:16:21.600 --> 0:16:24.320 it seems to be rather than a fifty, it's going 0:16:24.360 --> 0:16:27.480 to be a seventy five today. Well, you know, it 0:16:27.560 --> 0:16:29.760 would be careful. The economy is is very weak. You know, 0:16:30.440 --> 0:16:34.280 Russia's shut down the North String pipeline and to do 0:16:35.800 --> 0:16:38.000 open heart surgery on the on the European economy after 0:16:38.080 --> 0:16:40.600 such a terrible time through the pandemic, it's never really recovered. 0:16:41.480 --> 0:16:45.000 It is brave, very great. So is there a possibility 0:16:45.040 --> 0:16:47.520 then that we could see less than a seventy five 0:16:47.560 --> 0:16:51.720 basis point we have given, as you mentioned, the serious 0:16:52.040 --> 0:16:56.880 energy crisis that's facing the Eurozone and potentially the idea 0:16:56.960 --> 0:16:59.320 that the ECB might not necessarily have the tools to 0:16:59.360 --> 0:17:03.440 tackle that of inflation. Well, indeed, it's the this is 0:17:04.040 --> 0:17:07.199 exhaustists outside you know, energy inforsation was they've got no 0:17:07.240 --> 0:17:10.560 real control over um. Well, obviously they're worrying about second 0:17:10.640 --> 0:17:13.480 round of effects and that's why the core rates up 0:17:13.520 --> 0:17:16.040 at four point three is is probably what's driving there 0:17:16.119 --> 0:17:19.639 the scares attitude to this. It's very much driven by Germany, 0:17:19.640 --> 0:17:23.959 which really has a pathological hatred of inflation. Nonetheless, the 0:17:24.000 --> 0:17:26.800 rest of the of the euroserve, particularly countries like Italy, 0:17:27.160 --> 0:17:30.240 you know, really struggling here UM and they're funding is 0:17:30.720 --> 0:17:33.640 a question when it goes above four percent. The last 0:17:33.640 --> 0:17:36.960 time around this is when they ACB had an emergency meeting. 0:17:37.400 --> 0:17:40.200 We're not far away from that level now, so I'm 0:17:40.200 --> 0:17:42.080 not quite sure why the mood has changed suddenly they 0:17:42.080 --> 0:17:44.720 think they can do seventy five from for sure. The 0:17:44.760 --> 0:17:47.960 chief Economists Philip Lane has intimated that he would much 0:17:47.960 --> 0:17:51.800 prefer fifty UM, and I think Regard has sort of 0:17:51.880 --> 0:17:53.880 hinted along the same mind as well, that the risk 0:17:53.920 --> 0:17:56.040 here is if if seventy five is forced on them, 0:17:56.440 --> 0:17:59.120 then they are perhaps having lost control and it's never 0:17:59.119 --> 0:18:02.000 a good look for a central ranks, so a tricky one. 0:18:02.040 --> 0:18:04.320 I hope fifty prevails just for the sanity. Doesn't mean 0:18:04.320 --> 0:18:06.600 they can't be fifty again the next meeting. It's just 0:18:07.200 --> 0:18:11.240 I think shocking an economy which has had eight years 0:18:11.280 --> 0:18:14.280 of negative rates straight up with big semi five basis 0:18:14.320 --> 0:18:17.240 point heights out of zero where they currently are. It 0:18:17.280 --> 0:18:19.000 could be a little bit too much as particularly as 0:18:19.000 --> 0:18:20.879 there's other other factors in I want to get too 0:18:20.920 --> 0:18:23.680 excited about QT happening in Europe, but it's going to 0:18:23.760 --> 0:18:25.040 be on the agenda by the end of the year 0:18:25.080 --> 0:18:27.400 for sure. And they're also they're gonna have to take 0:18:27.400 --> 0:18:29.879 my whole bunch of very very credible generous bank lending 0:18:29.920 --> 0:18:32.120 that they've they've done throughout the whole pandemic as well. 0:18:32.200 --> 0:18:34.720 So if they do all these things at once, it 0:18:34.760 --> 0:18:37.520 may be too much. Final companacial conditions might tighten to 0:18:37.320 --> 0:18:39.679 a credit crunch standard. Yeah, I want to focus on 0:18:39.680 --> 0:18:43.840 our last minute here, Marcus on the balance sheet, the 0:18:43.880 --> 0:18:47.639 look the access liquidity in the commercial banks and the 0:18:47.720 --> 0:18:49.399 bond holdings in the ECB. Do you think we're going 0:18:49.440 --> 0:18:52.160 to get more clarity from President Leguard on the direction 0:18:52.400 --> 0:18:55.320 for the balance sheet and the ECB. Well, I think 0:18:55.359 --> 0:18:58.159 she's going to try and damp that straight down. So 0:18:58.200 --> 0:19:01.160 they have nine trillion balance sheet about five children, which 0:19:01.240 --> 0:19:05.400 is in quantitily easy. Different sets of it is UM, 0:19:05.440 --> 0:19:08.000 and I think there is talk possibly they may join 0:19:08.400 --> 0:19:11.280 UM all the Central banks by letting it passively, as in, 0:19:11.320 --> 0:19:13.760 when maturities come, let it roll off that way. But 0:19:13.840 --> 0:19:15.879 I don't think that's this year's business. Let's certainly I 0:19:15.880 --> 0:19:18.440 think Legard will want to try and push that question away. 0:19:18.600 --> 0:19:21.720 She can, she will, I think regards of that the 0:19:21.760 --> 0:19:25.600 TELTRA that targeted along term refound refinancing operations, they need 0:19:25.640 --> 0:19:27.840 to probably right in that some of that findest minus 0:19:27.880 --> 0:19:29.919 will present a little bit too generous if you've got 0:19:29.960 --> 0:19:32.640 base rates now. But okay, up sade zero point seven five. 0:19:33.040 --> 0:19:35.520 I'll be listening for those comments from President Leguard eight 0:19:36.359 --> 0:19:39.199 Wall Street time after the decision from the ECB that 0:19:39.280 --> 0:19:42.000 comes down at eight fifteen. Of course, we will have 0:19:42.119 --> 0:19:45.560 full coverage for you here on Bloomberg Radio. Bloomberg Opinion 0:19:45.560 --> 0:19:49.120 columnist Marcus Ashworth, thanks for joining us ahead of all that, 0:19:49.480 --> 0:19:52.440 really appreciate it. Looking ahead to the market open here 0:19:52.480 --> 0:19:56.760 on Wall Street, futures little changed, no change the SMP 0:19:56.920 --> 0:19:59.920 futures right now down futures and nasty futures both up 0:20:00.560 --> 0:20:08.080 two points. You're listening to Bloomberg Daybreak Bloomberg eleven three 0:20:08.119 --> 0:20:10.280 oh weather mostly sunny with a high. Your eighty today 0:20:10.359 --> 0:20:14.400 will be in the low eighties. Tomorrow, Saturday and Sunday. 0:20:14.880 --> 0:20:18.240 Nice weekend shaping up right now sixty in Central Park, 0:20:25.160 --> 0:20:29.680 Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:29.800 --> 0:20:33.600 Bloomberg E Living fre to Washington, d C, Bloomberg On 0:20:33.840 --> 0:20:37.080 to Boston, Bloomberg one O six one to San Francisco, 0:20:37.160 --> 0:20:40.399 Bloomberg nine sixty to the country Sirius XM Chad A 0:20:40.480 --> 0:20:43.400 one nine team, and around the globe the Bloomberg Business 0:20:43.400 --> 0:20:48.119 apt and Bloomberg Radio dot Com. This is Bloomberg Daybreak 0:20:53.160 --> 0:20:55.879 six thirty on Wall Street. Good morning, I'm Nathan Hagar 0:20:56.160 --> 0:20:58.920 and I'm Karen Moscow. We're just about three hours away 0:20:58.960 --> 0:21:00.920 from the open of US aiding. Time for the fine 0:21:01.000 --> 0:21:03.040 things that you need to notice. Start your day. Brought 0:21:03.160 --> 0:21:07.120 to you by Interactive Brokers, Interactive Brokers, Simple, i VK 0:21:07.240 --> 0:21:10.040 are Global Trader app, deposit in your local currency and 0:21:10.080 --> 0:21:13.240 trade stocks in the US, Europe and Asia. Start your 0:21:13.240 --> 0:21:17.480 free trial and ibkr dot com slash Global Trader at First. 0:21:17.480 --> 0:21:20.200 The European Central Bank is expected to raise interest rates 0:21:20.200 --> 0:21:24.080 at its first monetary policy meeting since July. Bloombergs Maria 0:21:24.119 --> 0:21:27.520 today O says it's still unclear if they'll hike seventy 0:21:27.560 --> 0:21:30.320 five basis points or fifty. When you look at the 0:21:30.359 --> 0:21:33.280 seventy five basis points Camp, what they argue is there 0:21:33.400 --> 0:21:35.439 is a window now to hike, and you should do 0:21:35.520 --> 0:21:39.000 it quickly, decisively, and take swift action. This is now 0:21:39.000 --> 0:21:42.000 about the credibility of the institution. On the flip side, 0:21:42.040 --> 0:21:44.840 when you look at the fifty basis points at Camp here, 0:21:44.840 --> 0:21:47.080 what they argue is that you could find yourself in 0:21:47.080 --> 0:21:50.440 a situation where you're hiking aggressively at the same time 0:21:50.480 --> 0:21:54.359