WEBVTT - Bloomberg Daybreak: September 6, 2022 - Hour 1 (Radio) 0:00:02.800 --> 0:00:06.160 Live from the Bloomberg Interacted Burger Studios. This is Bloomberg 0:00:06.240 --> 0:00:10.880 day Break for Tuesday, September six two. Coming up this hour. Incoming, 0:00:10.960 --> 0:00:14.160 UK Prime Minister Liz trust is finalizing plants to lower 0:00:14.280 --> 0:00:18.240 energy bills for businesses and households. California's power grade faces 0:00:18.239 --> 0:00:20.959 a major test as a heatwave hits the state, and 0:00:21.120 --> 0:00:24.480 a legal victory for Donald Trump involving documents ceased from 0:00:24.480 --> 0:00:27.520 his Florida home. There are dangerous levels of arsenake in 0:00:27.560 --> 0:00:30.720 the taft water in the Manhattan Complex, BLUs Canadian police 0:00:30.720 --> 0:00:32.960 search for a suspect, and the stabbing deaths of ten 0:00:33.000 --> 0:00:36.159 people by Michael Blong. More Ahead, I'm John Stage and 0:00:36.200 --> 0:00:38.800 sports another errand judge on running the Yankees, went over 0:00:38.840 --> 0:00:43.280 the Twins, Rappier, the daw upset the US. That's all 0:00:43.320 --> 0:00:47.320 straight ahead on Bloomberg day Break on Bloomberg eleven, Freo 0:00:47.440 --> 0:00:51.760 New York, Bloomberg one, Washington, d C, Bloomberg one O 0:00:51.880 --> 0:00:56.560 six one, Boston, Bloomberg nine sixty, Francisco, Sirius x M 0:00:56.680 --> 0:01:00.000 one nine Team, and around the world on Bloomberg Radio 0:01:00.040 --> 0:01:08.000 dot Com and via the Bloomberg Business Act. Good Morning, 0:01:08.000 --> 0:01:12.039 I'm Nathan Hagar and I'm Karen. Moscow and US futures 0:01:12.040 --> 0:01:14.880 are higher this morning. Air Comar coming up to five 0:01:14.920 --> 0:01:16.480 o one on Wall Street, and we checked the markets 0:01:16.520 --> 0:01:19.200 every fifteen minutes throughout the trading day. On bloomberg S 0:01:19.240 --> 0:01:22.200 and P futures of twenty four points down, futures up 0:01:22.240 --> 0:01:25.440 one hundred sixty seven and nasday futures have one hundred one. 0:01:25.800 --> 0:01:28.400 The decks in Germany's up four tenths of upper set 0:01:28.600 --> 0:01:31.520 ten year treasury down seventeen thirty seconds. You have three 0:01:31.560 --> 0:01:33.760 point to five percent and the yield on the two 0:01:33.840 --> 0:01:37.080 year three point four six percent. Nine x Scrude oil 0:01:37.200 --> 0:01:39.120 is up one point two percent of a dollar four 0:01:39.160 --> 0:01:42.240 at eighty seven dollars ninety two cents, and barrel bitcoin 0:01:42.400 --> 0:01:46.039 is at twenty thousand dollars, up one point four percent. Nathan, 0:01:46.200 --> 0:01:48.560 Thanks Karen. We begin this morning with a changing of 0:01:48.560 --> 0:01:52.240 the guard in the UK. Outgoing Prime Minister Boris Johnson 0:01:52.280 --> 0:01:55.360 has delivered his final speech as his country's leader before 0:01:55.360 --> 0:01:58.240 he hands over the reins to his successor, Liz Trust. 0:01:58.600 --> 0:02:00.800 Let's go live to London get the very latest from 0:02:00.840 --> 0:02:03.960 Bloomberg's You and Parts. Good morning You, and good morning Nathan, 0:02:04.000 --> 0:02:06.680 and Karen. This is it, folks, The words of Boris 0:02:06.720 --> 0:02:09.560 Johnson outside Number ten, Downing Streets as he made his 0:02:09.600 --> 0:02:12.240 final speech as the British Prime Minister, a job he 0:02:12.320 --> 0:02:14.959 was forced to quit after pressure from his own Conservative 0:02:15.000 --> 0:02:18.919 Party colleagues. He pledged full support for his successor. This 0:02:18.960 --> 0:02:21.680 is a tough time for families up and down the country. 0:02:22.000 --> 0:02:23.560 We can and we will get through it, and we 0:02:23.560 --> 0:02:26.720 will come out stronger the other side. But I say 0:02:26.800 --> 0:02:32.080 to my fellow Conservatives, it's time for politics to be over, folks. 0:02:32.400 --> 0:02:36.120 It's time for us all to get behind Liz trust Well, 0:02:36.120 --> 0:02:38.760 the UK's new leader. Liz trust will formally become Prime 0:02:38.800 --> 0:02:42.120 Minister after meeting the Queen later today at her castle 0:02:42.240 --> 0:02:46.040 in Scotland and a bloomberg scoop on her first announcements 0:02:46.200 --> 0:02:49.520 a massive package of support for household energy bills, which 0:02:49.520 --> 0:02:52.680 are expected to be three times higher than last winter. 0:02:53.040 --> 0:02:55.120 We understand the bill for the policy could come in 0:02:55.160 --> 0:02:58.280 at as much as one hundred and fifty billion dollars 0:02:58.480 --> 0:03:01.080 in London, I'm you and part splin by daybreak, all 0:03:01.160 --> 0:03:02.520 right you and thank you all back here in the 0:03:02.600 --> 0:03:05.720 U S and major development in the Justice Department's investigation 0:03:05.800 --> 0:03:09.320 and to classified documents at Donald Trump's Florida home. A 0:03:09.360 --> 0:03:12.160 federal judge is granted the former president's request for a 0:03:12.320 --> 0:03:16.120 third party, known as a special Master, to review the records. 0:03:16.360 --> 0:03:19.480 Former Assistant U S Attorney Jeff Robbins says this means 0:03:19.480 --> 0:03:23.239 a significant delay for the DJ's investigation. By appointing a 0:03:23.320 --> 0:03:27.000 special master who can take weeks, months, who knows how 0:03:27.040 --> 0:03:30.960 long to review all eleven thousand or so items that 0:03:31.000 --> 0:03:34.800 were seized and make determinations on attorney client privilege and 0:03:34.800 --> 0:03:38.040 and here's a surprise, executive privilege. This is going to 0:03:38.200 --> 0:03:42.000 stop the Department of Justice in its tracks. Former federal 0:03:42.000 --> 0:03:44.480 prosecutor Jeff Robbins says that judge in the case was 0:03:44.520 --> 0:03:47.520 appointed by former President Trump in the final months of 0:03:47.600 --> 0:03:50.640 his administration. Karen, A major test is coming today for 0:03:50.680 --> 0:03:53.520 the energy grid in the country's most populous state. Power 0:03:53.600 --> 0:03:56.680 demand in California has hit a five year high, with 0:03:56.760 --> 0:03:59.480 much of the state under an excessive heat warning. Now 0:03:59.520 --> 0:04:02.240 as busy this is in schools reopen, that demand could 0:04:02.280 --> 0:04:05.480 reach an all time high. Alice Reynolds, as president of 0:04:05.560 --> 0:04:09.640 the California Public Utilities Commission, we're entering the heart of 0:04:09.680 --> 0:04:12.560 this heat event, and it is expected to last longer 0:04:12.560 --> 0:04:17.479 and reach higher temperatures than previously anticipated. California Utilities President 0:04:17.520 --> 0:04:21.040 Dallas Reynolds says the state narrowly avoided rolling blackouts yesterday, 0:04:21.080 --> 0:04:24.680 but temperatures could hit one hundred fifteen degrees in some 0:04:24.760 --> 0:04:28.200 parts of the state today. Well. Turning to the economy now, Nathan, 0:04:28.240 --> 0:04:30.920 the Federal Reserves Beige Book take center stage on this 0:04:30.920 --> 0:04:33.600 week's economic agenda, and we get more from Bloomberg's Viny 0:04:33.640 --> 0:04:37.039 Dell Judas. The FEDS Regional Survey the Beige Book is 0:04:37.080 --> 0:04:41.400 set for Wednesday, will help illustrate inflation's impact and American businesses. 0:04:41.760 --> 0:04:45.000 We know already wage growth moderated in August, evidence this 0:04:45.160 --> 0:04:48.680 year's FED rate ikes could be tempering inflation. Another report 0:04:48.720 --> 0:04:50.920 to keep an eye on this Today's I s M 0:04:51.040 --> 0:04:54.159 Service Industry Index in July at rose for the first 0:04:54.160 --> 0:04:56.839 time since March, recovering from a two year low in June. 0:04:57.160 --> 0:05:01.000 Jarobolos claims data Thursday should signal a po outlook and 0:05:02.040 --> 0:05:05.040 Bloomberg daybreak All right, Vinny, thank you. Wall Street returns 0:05:05.080 --> 0:05:07.520 from a holiday short and trading week and traders will 0:05:07.560 --> 0:05:10.200 get back to their desks amid questions about the economic 0:05:10.240 --> 0:05:13.720 outlook and what it means for corporate earnings. Bloomberg's Charlie 0:05:13.760 --> 0:05:17.560 Pellet has more September is historically a rocky month for 0:05:17.680 --> 0:05:20.640 US equity markets. Over the past twenty five years, the 0:05:20.839 --> 0:05:23.760 S and P five INDECKS has seen average declines of 0:05:24.160 --> 0:05:27.720 seven tenths of one percent. Concerned that rising rates will 0:05:27.800 --> 0:05:31.160 hurt growth has been weighing on corporate earnings. Lisa Erickson 0:05:31.200 --> 0:05:34.520 has head of Traditional Investments at US Bank Wealth Management. 0:05:34.640 --> 0:05:36.440 We do think it's going to be key to see 0:05:36.440 --> 0:05:38.560 how earnings evolved in the second half of the year. 0:05:38.880 --> 0:05:41.320 Our base case is that we are going to see 0:05:41.360 --> 0:05:44.480 continued to learn growth, not necessarily a full on route, 0:05:44.800 --> 0:05:47.520 but again there are risks to the earnings front. Among 0:05:47.560 --> 0:05:52.040 this week's earnings reports, the supermarket chain Kroger in New York. 0:05:52.120 --> 0:05:55.599 Charlie Pellett Bloomberg Daybreak, Charlie, thank you, We've a deal 0:05:55.640 --> 0:05:58.159 to tell you about. CDs Health has reached an agreement 0:05:58.200 --> 0:06:00.679 to buy home health and Technology sir as his provider, 0:06:00.800 --> 0:06:04.640 Signify Health. The price tag about eight billion dollars. CBS 0:06:04.680 --> 0:06:07.719 emerged as the winning bidder over potential suitors that Bloomberg 0:06:07.800 --> 0:06:11.920 News previously reported had included United Health Group, Option Care 0:06:12.040 --> 0:06:16.159 Health and Amazon shares of Digital World acquisition Karender down 0:06:16.200 --> 0:06:19.800 eighteen percent in early trading. Reuter says the blank Check 0:06:19.839 --> 0:06:22.840 acquisition from the plans to merge with former President Trump's 0:06:22.839 --> 0:06:26.200 social media group has failed to secure enough shareholder support 0:06:26.240 --> 0:06:28.960 for a one year extension to complete the deal, and 0:06:29.040 --> 0:06:31.400 shares a bed Bath and Beyond also lower, down about 0:06:31.440 --> 0:06:35.360 sixteen percent. This follows the apparent suicide of chief financial 0:06:35.400 --> 0:06:38.479 officer GUSTAVO. Arnell, who fell to his death from a 0:06:38.480 --> 0:06:41.479 New York City building on Friday. Arnal was one of 0:06:41.600 --> 0:06:44.839 several parties, including bed Bath and Beyond, named in a 0:06:44.960 --> 0:06:48.599 civil class action securities fraud suit filed last month and 0:06:48.800 --> 0:06:52.160 Europe Today Karen Luftansa says it's preparing an improved offer 0:06:52.200 --> 0:06:54.960 to pilots, threatening the stage a two day strike starting 0:06:54.960 --> 0:06:57.680 at midnight. Fresh strikes would add to the about eight 0:06:57.720 --> 0:07:00.960 thousand flights left Hans has already canceled during the lucrative 0:07:01.000 --> 0:07:04.960 summer travel season. Nathan futures are higher, with SNP futures 0:07:05.000 --> 0:07:07.800 of nineteen points down features of a hundred thirty six 0:07:07.839 --> 0:07:11.120 and nasdack futures of eighty three to tenure Treasury down 0:07:11.160 --> 0:07:14.679 sixteen thirty seconds. He had three point to five percent straight. 0:07:14.680 --> 0:07:17.520 I had your latest local headlines, plus a check of sports, 0:07:17.560 --> 0:07:24.240 and this is Bloomberg alright. Thanks hearing. It's five oh 0:07:24.280 --> 0:07:26.920 seven on Wall Street, Worth seventy three degrees in Central Park. 0:07:26.960 --> 0:07:29.840 We have an accident investigation. It's got the southbound New 0:07:29.920 --> 0:07:33.520 York State Thruway shut down at exit sixteen. Details coming 0:07:33.600 --> 0:07:36.120 up in traffic. First, Michael Barr with what else is 0:07:36.160 --> 0:07:38.480 going on in New York and around the world. Good morning, Michael, 0:07:38.520 --> 0:07:42.160 Good morning Nathan. New York's MTA is taking precautions for 0:07:42.360 --> 0:07:45.000 flooding from heavy brain. The New York City Office of 0:07:45.040 --> 0:07:48.720 Emergency Management issue to travel advisory through today due to 0:07:48.760 --> 0:07:51.920 the weather. The MTA has been sending cruise to clear 0:07:52.000 --> 0:07:55.560 drains and prepare equipment for any flooding. A federal monitor 0:07:55.640 --> 0:07:58.280 has told New York City to keep all documents related 0:07:58.320 --> 0:08:01.800 to his investigation into dangerous levels of our senic in 0:08:01.880 --> 0:08:04.680 the tap water at one of the city's largest public 0:08:04.720 --> 0:08:08.800 housing complexes. Thousands of tenants at the jacob Reeese Houses 0:08:08.840 --> 0:08:12.640 in Manhattan were forced to use water bottles and portable 0:08:12.720 --> 0:08:15.760 water stations after being told not to drink or cook 0:08:15.880 --> 0:08:18.600 with the water from their taps, Residents say the water 0:08:18.680 --> 0:08:21.880 is often cloudy with a metallic taste. Many residents believe 0:08:22.000 --> 0:08:25.360 Nitsya endangered them by not acknowledging the problem right away. 0:08:25.840 --> 0:08:30.160 Nightsie spokesperson Daniel Greene says the community will be kept informed. 0:08:30.680 --> 0:08:34.200 Our residents deserve to know about the hazards and the 0:08:34.240 --> 0:08:35.920 risk that they face at their in their in their 0:08:35.960 --> 0:08:38.040 in their apartments, and we want to make sure that 0:08:38.080 --> 0:08:40.160 they feel safe and at home like any any resident 0:08:40.240 --> 0:08:44.040 in New York. Nightshe spokesperson Daniel green Canadian police are 0:08:44.080 --> 0:08:46.720 hunting for the remaining suspect and the stabbing deaths of 0:08:46.760 --> 0:08:50.400 ten people in an Indigenous community and nearby town in 0:08:50.440 --> 0:08:55.079 the province of Saskatchewan. Canadian Prime Minister Justin Trudeau yesterday's 0:08:55.120 --> 0:09:00.400 attacks in Saskatchewan are shocking and heartbreaking. My thoughts and 0:09:00.520 --> 0:09:03.400 the thoughts of all Canadians are with those who have 0:09:03.520 --> 0:09:08.199 lost loved ones. Prime Minister Trueme. Authorities say Miles Sanderson 0:09:08.280 --> 0:09:11.160 is still on the loose. His brother, Damian Sanderson, was 0:09:11.200 --> 0:09:14.600 found dead near the stabbing sites. Authorities say the injuries 0:09:14.600 --> 0:09:18.400 were not self inflicted. Officials in Europe are using Russia 0:09:18.920 --> 0:09:22.480 weaponizing fuel after Russia cut off a major pipeline, saying 0:09:22.480 --> 0:09:25.160 it won't be turned back on until sanctions over its 0:09:25.160 --> 0:09:28.640 war in Ukraine are lifted. This comes as fighting threatens 0:09:28.720 --> 0:09:32.320 Europe's largest nuclear plant, which is in Ukraine. Meanwhile, President 0:09:32.360 --> 0:09:35.439 Voladimir Zelenski indicates that he is not interested in negotiating 0:09:35.480 --> 0:09:39.439 with Russia, saying that he quote cannot discuss anything with terrorists. 0:09:39.679 --> 0:09:44.040 There shouldn't be any military personnel, there shouldn't be any 0:09:44.120 --> 0:09:48.680 military equipment on the territory, and there shouldn't be the 0:09:48.760 --> 0:09:52.320 workers of nuclear pa plant who are surrounded by people 0:09:52.760 --> 0:09:56.560 was firearms. President Zelinski, through a translator, spoke with ABC 0:09:56.800 --> 0:09:58.920 Global News twenty four hours a day on air and 0:09:59.040 --> 0:10:01.800 on Bloomberg Quick To powered by more than twenty seven 0:10:01.840 --> 0:10:04.280 hundred journalist fatalists more than a hundred twenty countries. I'm 0:10:04.280 --> 0:10:11.560 Michael Bard. This is Bloomberg Naked. Thank you, Michael. Coming 0:10:11.640 --> 0:10:13.240 up to five ten on Wall Street time for the 0:10:13.240 --> 0:10:16.280 Bloomberg Sports Update. Good morning, John Stas, Good morning Nathan. 0:10:16.360 --> 0:10:18.880 A wild holiday weekend at the US Open that it 0:10:18.960 --> 0:10:21.920 didn't end until about two and a half hours ago 0:10:22.160 --> 0:10:26.880 to twenty three am is when Carlos Alcarez finished a 0:10:27.040 --> 0:10:29.840 five set, nearly four hour victory over maur Inschillas, which 0:10:29.840 --> 0:10:31.760 means there are eight men left and none have won 0:10:31.800 --> 0:10:33.840 a Grand Slam tournament. When the third time that's happened 0:10:33.840 --> 0:10:36.960 in any Slam since the Open Air began nineteen sixty eight, 0:10:36.960 --> 0:10:38.520 the top two seeds lost in the span of less 0:10:38.559 --> 0:10:40.560 than twenty four hours. First it was de Bennie Chimp, 0:10:40.760 --> 0:10:43.440 Danil Medvedev fall into Nick Curriels, and yesterday rapped fire 0:10:43.480 --> 0:10:45.640 on the Dal who had not lost a Grand Slam 0:10:45.720 --> 0:10:49.440 match to an American since two thousand five, upset by 0:10:49.480 --> 0:11:00.440 the twenty four year old from the DC area, Francis Tifo. Yeah, 0:11:00.440 --> 0:11:02.520 I get something. Came out there, just believe I can 0:11:02.559 --> 0:11:11.160 do it some years and different personnel. I went out there. 0:11:13.160 --> 0:11:15.840 Kurios and Cocoa golfall play their quarter fine matches tonight 0:11:15.840 --> 0:11:18.320 at the stadium. A couple of unlikely Yankee home runs 0:11:18.360 --> 0:11:22.439 Isaiah kinder Philippa just a second of the season, Marwin Gonzalez, 0:11:22.480 --> 0:11:25.040 who hadn't had a hit of any kind in two months, 0:11:25.080 --> 0:11:27.000 and by the way, another erran Judge home run is 0:11:27.040 --> 0:11:29.840 fifty four. Yankees fight to twins five to two. Judges 0:11:29.880 --> 0:11:31.959 at twenty three, more home runs in anyone else in 0:11:32.040 --> 0:11:34.720 the American League. Mets Rainedown in Pittsburgh played tonight that 0:11:34.760 --> 0:11:37.640 has split doubleheader tomorrow. Jets co drops Sala has left 0:11:37.640 --> 0:11:40.000 the door open for quarterback Zack Wilson to perhaps play 0:11:40.600 --> 0:11:43.280 Sunday season opener against Baltimore. He could be back earlier 0:11:43.280 --> 0:11:46.839 than expected from the surgery. John Stash, We're Bloomberg Sports, Nathan, 0:11:47.000 --> 0:11:50.080 thank you, John SMP futures right now up sixteen points down, 0:11:50.080 --> 0:11:52.800 futures up a hundred nineteen. Neste futures are higher by 0:11:52.960 --> 0:11:56.880 seventy two points. The tigure treasury is down sixteen thirty seconds, 0:11:56.880 --> 0:12:01.480 the yield three point to five. Astina Hooper, chief global 0:12:01.480 --> 0:12:08.000 markets strategist that invest Go joins US next Bloomberg eleven 0:12:08.040 --> 0:12:09.680 three oh Weather. We got a flood watch and effect 0:12:09.720 --> 0:12:12.080 till five this afternoon, with heavy rain at times today, 0:12:12.160 --> 0:12:15.439 going up to near seventy five degrees, low seventies, mostly 0:12:15.440 --> 0:12:18.440 cloudy tomorrow, clearing a high near eighty on Thursday. Right 0:12:18.480 --> 0:12:25.120 now seventy three Markets headlines and breaking news twenty four 0:12:25.120 --> 0:12:28.160 hours a day at Bloomberg dot Com, the Bloomberg Business 0:12:28.200 --> 0:12:31.359 at and at Bloomberg Quick Take, this is a Bloomberg 0:12:31.480 --> 0:12:41.080 business clash and I'm kerin Moscow. European stocks edging higher 0:12:41.160 --> 0:12:44.240 as investors assessed responses by leaders to the region's who 0:12:44.240 --> 0:12:47.560 growing energy crisis ahead of the European Central Banks policy 0:12:47.600 --> 0:12:51.080 meeting later this week. US stock index futures, meanwhile, are 0:12:51.120 --> 0:12:53.160 on the rise, and we check the markets every fifteen 0:12:53.200 --> 0:12:55.959 minutes throughout the trading day on Bloomberg Guess and P 0:12:56.160 --> 0:12:58.640 futures are up nineteen points now, futures of A hundred 0:12:58.679 --> 0:13:01.240 twenty nine and NASDAG future US up seventy eight. The 0:13:01.360 --> 0:13:04.480 decks in Germany is of a quarter percent. Ten year 0:13:04.559 --> 0:13:07.079 treasury down sixteen thirty seconds. You have three point to 0:13:07.200 --> 0:13:09.520 five percent they yield on the two year three point 0:13:09.520 --> 0:13:12.480 four five percent. Nimex screwed oil is up two ten 0:13:12.640 --> 0:13:15.040 percent or twenty cents at eighty seven dollars eight cents 0:13:15.040 --> 0:13:18.000 in barrel Co mex School little change at seventeen twenty 0:13:18.280 --> 0:13:21.319 forty announced. The euro is at point nine four two 0:13:21.360 --> 0:13:23.760 against the dollar, British found one point one five six 0:13:23.880 --> 0:13:26.719 four and the yen one one point seven nine. Look 0:13:26.760 --> 0:13:29.040 at a bitcoin this morning at one point two percent 0:13:29.160 --> 0:13:32.480 at nineteen thousand, nine hundred seventy dollars, and that's a 0:13:32.480 --> 0:13:35.240 Bloomberg business flash. Now here's Michael Barr with more on 0:13:35.280 --> 0:13:37.920 what's going on around the world. Michael, good morning, Good morning, 0:13:37.960 --> 0:13:41.040 Karen UK. Prime Minister Boris Johnson has left his Downing 0:13:41.120 --> 0:13:44.040 Street office for the last time as he heads to 0:13:44.080 --> 0:13:47.800 Scotland to formally offer his resignation to Queen Elizabeth the Second. 0:13:48.240 --> 0:13:52.120 The British leader meets with Queen and her balmoral state 0:13:52.200 --> 0:13:55.280 to begin to transfer of power to live trusts. The 0:13:55.360 --> 0:13:58.840 Federal Judge has granted a request by former President Donald 0:13:58.840 --> 0:14:02.560 Trump's legal team to appoint a special master to review 0:14:02.640 --> 0:14:05.560 documents sees by the FBI during a search of his 0:14:05.600 --> 0:14:09.000 Florida home last month. At the US Open, Raphael Nadal 0:14:09.120 --> 0:14:12.800 was knocked out by Francis Tfo. In baseball, the Yankees 0:14:12.840 --> 0:14:16.079 beat the Twins five to Aaron Judge it is home 0:14:16.160 --> 0:14:19.560 run Mets game postpone. The Red Sox lost the Nationals 0:14:19.560 --> 0:14:22.920 and Giants won. The Orioles lost both games of a 0:14:22.960 --> 0:14:25.760 double header with the Blue Jays. Global News twenty four 0:14:25.800 --> 0:14:29.040 hours a day on air and on Bloomberg Quicktake, powered 0:14:29.040 --> 0:14:32.280 by more than journalists and analysts more than a hundred 0:14:32.320 --> 0:14:36.560 twenty countries. I'm Michael barn This is Bloomberg, Nathan Okay, Michael. Thanks, 0:14:36.600 --> 0:14:39.320 It's five nineteen on Wall Street Live from the Bloomberg 0:14:39.360 --> 0:14:43.400 Interactive Broker Studios. This is Bloomberg Daybreak. And here to 0:14:43.440 --> 0:14:46.080 help get us set for the holiday shortened trading week 0:14:46.400 --> 0:14:49.800 is Christina Hooper, chief Global market strategist at in Fesco. 0:14:49.880 --> 0:14:52.120 Good morning, Christina, Thanks so much for joining us as 0:14:52.120 --> 0:14:57.040 we watch futures rise a bit after three straight weeks 0:14:57.040 --> 0:15:00.600 of losses for US stocks. Where do you see the 0:15:00.600 --> 0:15:04.800 trajectory at this point? Well, I think the trajectory is 0:15:04.840 --> 0:15:08.640 going to be volatility. Now, we could see some volatility up, 0:15:08.680 --> 0:15:11.720 although I think there's going to be a tug downward 0:15:12.360 --> 0:15:15.960 in the near term, just because there's so much uncertainty 0:15:16.040 --> 0:15:20.480 and hesitancy, particularly in the US markets, around the Fed's decision. 0:15:20.760 --> 0:15:23.480 Now it's a few weeks away, but we're likely to 0:15:23.520 --> 0:15:27.520 get hawkish commentary from f o MC members between now 0:15:27.560 --> 0:15:31.320 and then, which I think should should um play some 0:15:31.480 --> 0:15:36.320 downward pressure on stocks in incoming days. So it sounds 0:15:36.400 --> 0:15:40.320 like you're putting a lot of attention on the flood 0:15:40.480 --> 0:15:42.960 of Fed speak we're going to get this week before 0:15:43.080 --> 0:15:47.520 we get that CPI print next week. Yes, and I 0:15:47.720 --> 0:15:50.320 think we're going to hear an ongoing drum beat of 0:15:50.320 --> 0:15:54.760 of more hawkish rhetoric UH just over the next several weeks. 0:15:55.600 --> 0:15:58.760 So what does that mean in terms of the decision? 0:15:58.920 --> 0:16:02.000 What is the Fed to be looking at given the 0:16:02.240 --> 0:16:07.840 strong labor report we got last week, expectations potentially for 0:16:07.880 --> 0:16:10.480 a peek in inflation. Is that what you're looking for 0:16:10.520 --> 0:16:15.200 from the CPI next week? Definitely? But also keep in 0:16:15.280 --> 0:16:19.680 mind that an important consideration for the Fed is inflation expectations. UM. 0:16:19.680 --> 0:16:23.480 We got a good final August print from University of 0:16:23.560 --> 0:16:28.560 Michigan UH five year ahead inflation expectations continue to have 0:16:28.640 --> 0:16:31.240 a two handle, which I think is very very important. 0:16:31.240 --> 0:16:32.800 So I think they're going to be paying attention to 0:16:32.880 --> 0:16:36.120 expectations as well as what we're seeing in terms of 0:16:36.120 --> 0:16:41.200 the inflation data. What's the bigger concern for corporates right now? 0:16:41.480 --> 0:16:44.960 Is it the risk of tighter FED policy and inflation 0:16:45.160 --> 0:16:47.360 or is it earnings? We just got a no doubt 0:16:47.400 --> 0:16:51.520 from Mike Wilson over at Morgan Stanley and notable bear 0:16:51.840 --> 0:16:56.520 on stocks cutting his forecast for earnings growth even further 0:16:56.640 --> 0:17:00.120 next year. So I mean I think they need to 0:17:00.240 --> 0:17:04.680 concern is of course the sied. But yes, earnings are 0:17:04.720 --> 0:17:07.320 a concern as well and are going to come into 0:17:07.400 --> 0:17:14.040 focus as as we move into the next earnings reporting period. 0:17:14.520 --> 0:17:18.400 This is UM for you know, this is the other 0:17:18.520 --> 0:17:22.240 shoe that everyone is waiting to drop. And clearly we're 0:17:22.240 --> 0:17:26.440 going to see some some significant UH downward revisions to 0:17:26.560 --> 0:17:30.800 earnings forecasts for at least some stocks and UH AND 0:17:31.200 --> 0:17:35.119 that is is a concern that is is weighing on 0:17:35.680 --> 0:17:39.320 investors minds and certainly markets. Are there certain sectors or 0:17:39.359 --> 0:17:45.200 styles that are better insulated from earnings erosion than others, Well, 0:17:45.320 --> 0:17:50.159 certainly those companies UH and and some industries have have 0:17:50.320 --> 0:17:54.040 proven to be better at this than others in recent 0:17:54.400 --> 0:17:58.919 UH in recent months UM, some industries are better able 0:17:58.960 --> 0:18:02.200 to defend more margins, are better able to pass UM 0:18:02.400 --> 0:18:07.320 costs two consumers, and of course some industries, some sub 0:18:07.359 --> 0:18:11.240 segments of industries are are getting hit harder. UM. For example, 0:18:11.280 --> 0:18:13.800 if we look at the retail space, what we've seen 0:18:14.280 --> 0:18:15.840 is that it's been a sort of a tale of 0:18:15.840 --> 0:18:19.880 two consumers where higher end consumers have not been as 0:18:19.960 --> 0:18:25.520 impacted UM by inflationary pressures as lower income households, and 0:18:25.560 --> 0:18:29.000 that has played out. Got about a minute left here, Christina. 0:18:29.040 --> 0:18:31.760 We've got a change of the guard in the UK, 0:18:32.000 --> 0:18:35.240 List Trust taking over for Boris Johnson, with the country 0:18:35.280 --> 0:18:37.679 still under a cost of living crisis. What does the 0:18:37.800 --> 0:18:42.359 change in leadership mean for the investment landscape in the UK? Well, 0:18:42.359 --> 0:18:45.520 I think it presents some level of uncertainty and we've 0:18:45.600 --> 0:18:50.200 seen that. We've seen that in Sterling UM, which has 0:18:50.400 --> 0:18:55.320 has moved down relative to US dollar UM. But you know, 0:18:55.400 --> 0:19:00.560 hopefully there is more clarity as the Trust government UM 0:19:00.760 --> 0:19:03.800 starts to to share and Liz Trust starts to to 0:19:03.920 --> 0:19:07.639 share her views and our policies UM. But it has 0:19:07.760 --> 0:19:11.240 shifted a bit and and that has created some uncertainty 0:19:11.880 --> 0:19:16.320 in recent weeks. So I would expect that greater clarity 0:19:16.400 --> 0:19:20.000 to to hopefully put some upward pressure on Sterling. Thanks 0:19:20.000 --> 0:19:22.720 so much, Christina, great having on with us as always. 0:19:22.800 --> 0:19:26.879 Christina Hooper is the chief Global market strategist at investco 0:19:27.040 --> 0:19:29.560 with us this morning as we watch futures move higher. 0:19:29.800 --> 0:19:32.080 SMP futures right now up twenty points. That's a gain 0:19:32.080 --> 0:19:34.680 of a half percent. DAL futures up a hundred forty 0:19:34.720 --> 0:19:37.399 seven points and NASTAC futures are leading the gains right 0:19:37.440 --> 0:19:40.000 now of eighty six points for a gain of seven 0:19:40.000 --> 0:19:42.320 tenths of one percent. The ten year treasury right now 0:19:42.320 --> 0:19:46.000 down sixteen thirty seconds, the yield three point to five percent, 0:19:46.119 --> 0:19:48.760 and the yield on the two year three point four 0:19:48.960 --> 0:19:54.080 five Just ahead, U came incoming Prime Minister Liz Trust's 0:19:54.119 --> 0:19:59.320 plans to address her country's energy crisis, and a special 0:19:59.320 --> 0:20:07.920 master of pointed for Marlago. This is Bloomberg. Bloomberg eleven 0:20:07.960 --> 0:20:09.800 three oh Weather. We got a flood watch till five 0:20:09.840 --> 0:20:12.119 this afternoon, with heavy rain at times, going up to 0:20:12.160 --> 0:20:15.840 near seventy five degrees today, low seventies, mostly cloudy tomorrow, 0:20:15.880 --> 0:20:18.640 clearing a high near eighty on Thursday. Right now seventy 0:20:18.640 --> 0:20:26.280 three degrees. Broadcasting live from the Bloomberg Interacted Broker Studio 0:20:26.400 --> 0:20:29.280 in New York. Bloomberg E living in Freedom to Washington, 0:20:29.359 --> 0:20:33.639 d C. Bloomberg to Boston, Bloomberg one six one to 0:20:33.680 --> 0:20:37.760 San Francisco, Bloomberg sixteen to the country Sirius XM Chado 0:20:37.840 --> 0:20:41.000 one nineteen and around the globe the Bloomberg Business app 0:20:41.119 --> 0:20:50.920 and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's 0:20:50.920 --> 0:20:53.119 five thirty on Wall Street. Good morning. I'm Nathan Hager 0:20:53.359 --> 0:20:56.280 and I'm Karen Moscow. We're just about four hours away 0:20:56.280 --> 0:20:58.280 from the open of US trading. Let's get you up 0:20:58.280 --> 0:20:59.680 to day on the news you need to know at 0:20:59.680 --> 0:21:01.879 this show hour, we begin with it Changing of the 0:21:01.960 --> 0:21:05.399 Guard in the UK, outgoing Prime Minister Boris Johnson delivered 0:21:05.440 --> 0:21:08.919 his final speech before handing over to successor List Trust. 0:21:09.359 --> 0:21:13.760 Johnson leaves behind surging inflation, a potential recession, and an 0:21:13.840 --> 0:21:19.320 energy crisis. We have and will continue to have that 0:21:19.480 --> 0:21:23.119 economic strength to give people the cash they need to 0:21:23.200 --> 0:21:27.400 get through this energy crisis that has been caused by 0:21:27.480 --> 0:21:33.320 Putin's vicious war. And I know it lives. Truss and 0:21:33.560 --> 0:21:37.600 this compassionate Conservative government will do everything we can to 0:21:37.600 --> 0:21:41.119 get people through this crisis. Prime Minister Boris Johnson spoke 0:21:41.119 --> 0:21:44.240 from ten Downing Street today. Sources tell us List Trust 0:21:44.280 --> 0:21:47.640 has drafted a plan worth one hundred thirty billion pounds 0:21:47.920 --> 0:21:50.960 to avert a massive spike in energy bills. Well back 0:21:50.960 --> 0:21:52.919 here in the US, care and a federal judge has 0:21:52.920 --> 0:21:55.880 granted former President Trump's request for a third party known 0:21:55.920 --> 0:21:58.240 as a special Master to review record sees by the 0:21:58.320 --> 0:22:01.320 FBI at his Moral Logo home. Former Assistant U S 0:22:01.359 --> 0:22:04.439 Attorney Jeff Robins says, this means a significant delay for 0:22:04.480 --> 0:22:08.520 the d j's investigation. That special master, that individual is 0:22:08.560 --> 0:22:11.040 going to have to take a very long time reviewing 0:22:11.119 --> 0:22:14.320 documents and essentially doing what the Department of Justice has 0:22:14.400 --> 0:22:18.080 already done making its own report to the federal court. 0:22:18.280 --> 0:22:21.040 And then we may be in a Dickenzie and kind 0:22:21.040 --> 0:22:24.400 of a situation where litigation is spawned, which will keep 0:22:24.440 --> 0:22:28.200 this investigation on ice. Former federal prosecutor Jeff Robin says 0:22:28.240 --> 0:22:31.119 the judge in the case was appointed by former President Trump. 0:22:31.400 --> 0:22:33.679 Well to the economy now, Nathan, where we're watching a 0:22:33.720 --> 0:22:36.280 few economic ratings this week, including the I s M 0:22:36.400 --> 0:22:39.840 Service Industry Index today, the BEJE book tomorrow, and job 0:22:39.920 --> 0:22:42.840 dis claims Thursday. There's also the promise of more corporate 0:22:42.840 --> 0:22:45.679 earnings with Kroger reporting later this week. Now to a 0:22:45.720 --> 0:22:48.719 major acquisition here and CVS Health has reached an agreement 0:22:48.760 --> 0:22:51.840 to buy home health and technology services providers Signify Help 0:22:51.920 --> 0:22:55.920 for approximately eight billion dollars. CVS emerged as the winning 0:22:55.920 --> 0:22:59.120 bidder over other suitors, including United Health Group and Amazon. 0:22:59.640 --> 0:23:01.719 And I mean your chast is coming today for the 0:23:01.840 --> 0:23:05.160 energy grid in California. This needs under an excessive heat 0:23:05.200 --> 0:23:08.199 warning that's driving electricity used to its highest level in 0:23:08.280 --> 0:23:12.320 five years. Is a narrowly avoided rolling blackouts yesterday, but 0:23:12.440 --> 0:23:15.399 power demand could reach an all time high today with 0:23:15.480 --> 0:23:19.680 businesses and schools reopening, and futures this morning are higher. 0:23:19.840 --> 0:23:22.879