WEBVTT - Bloomberg Daybreak: August 12, 2022 - Hour 1 (Radio) 0:00:01.800 --> 0:00:05.240 By from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:05.320 --> 0:00:08.920 Daybreak for a Friday, August twelve. Coming up this hour. 0:00:09.200 --> 0:00:12.280 Nuclear documents were reportedly at the center of the FBI 0:00:12.360 --> 0:00:15.440 search of Donald Trump's Florida home. Now the former president 0:00:15.480 --> 0:00:17.880 calls for the release of the warrant used in his search. 0:00:18.079 --> 0:00:20.279 Joe Biden is said to be preparing to launch a 0:00:20.360 --> 0:00:23.320 reelection pan and we speak to San Francisco FAG President 0:00:23.400 --> 0:00:26.680 Mary Daily on the Central Banks. Next move, calls resumed 0:00:26.680 --> 0:00:29.480 to get rid of horse drawn carriages in New York City. 0:00:29.640 --> 0:00:32.559 Plus investigators are looking into a man who tried to 0:00:32.600 --> 0:00:36.120 breach in Ohio FBI office. I'm Michael Barr. More ahead, 0:00:36.159 --> 0:00:38.800 I'm John Stashon s Forwards, the Giant One, the preseason 0:00:38.840 --> 0:00:41.519 open right, New England, The Jets, Math and Yankees all 0:00:41.520 --> 0:00:47.320 played tonight. That's all's training ahead on Bloomberg Daybreak on 0:00:47.479 --> 0:00:51.920 Bloomberg eleven three on New York, Bloomberg one, Washington, d C, 0:00:52.400 --> 0:00:56.680 Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, 0:00:57.160 --> 0:01:00.200 Syrius XM one nine team, and around the world on 0:01:00.360 --> 0:01:03.640 Bloomberg Radio dot Com and via the Bloomberg Business Shop. 0:01:07.640 --> 0:01:10.880 Good Friday morning. I'm Nathan Hagar and I'm Karen Moscow 0:01:10.920 --> 0:01:14.039 and US NOCK index futures are moving higher this morning. 0:01:14.040 --> 0:01:16.199 We are coming up to five oh one on Wall Street, 0:01:16.240 --> 0:01:18.480 and we check the markets every fifteen minutes throughout the 0:01:18.480 --> 0:01:21.360 trading day. On Bloomberg S and P Future is up 0:01:21.360 --> 0:01:23.480 twenty two points and Down futures up a hundred and 0:01:23.480 --> 0:01:26.920 fifty four and nastack futures up seventies six. The ten 0:01:27.000 --> 0:01:29.679 year treasury up five thirty seconds, yield two point eight 0:01:29.760 --> 0:01:32.560 six percent, and they yield on the two year three 0:01:32.600 --> 0:01:35.320 point to zero percent. Nathan, all right, Karen, we'll have 0:01:35.360 --> 0:01:37.200 more on the markets in a minute, but first, we 0:01:37.240 --> 0:01:39.800 are learning more this morning about what the FBI was 0:01:39.920 --> 0:01:42.880 lurking for when it executed a search warrant at the 0:01:42.920 --> 0:01:46.560 Florida home of former President Donald Trump. Amy Morris has 0:01:46.600 --> 0:01:51.400 details from our Bloomberg newsroom in Washington. Reportedly, among the 0:01:51.480 --> 0:01:55.720 items classified documents related to nuclear weapons. The Washington Post 0:01:55.720 --> 0:01:59.080 reports it isn't clear if the information involved weapons belonging 0:01:59.120 --> 0:02:01.760 to the United States or some other nation, and we 0:02:01.800 --> 0:02:04.639 don't know yet if those documents were recovered in the search. 0:02:04.840 --> 0:02:08.000 Attorney General Merritt Garland announced the Department of Justice has 0:02:08.000 --> 0:02:10.760 filed a motion to unseal the search warrant and that 0:02:10.880 --> 0:02:14.880 more information is coming. The Department filed the motion to 0:02:14.960 --> 0:02:17.640 make public the warrant and receipt in light of the 0:02:17.680 --> 0:02:22.399 former president's public confirmation of the search, the surrounding circumstances, 0:02:22.919 --> 0:02:26.400 and the substantial public interest in this matter, and the 0:02:26.480 --> 0:02:29.520 judge immediately ordered d o J to consult with Trump's 0:02:29.560 --> 0:02:32.160 legal team and notify the court within twenty four hours 0:02:32.160 --> 0:02:35.160 about whether they would oppose the request laid last night, 0:02:35.240 --> 0:02:38.520 former President Trump said on social media he agreed that 0:02:38.520 --> 0:02:41.200 the search warrant and the list of items taken should 0:02:41.200 --> 0:02:44.600 be made public in Washington. I'm Amy Moore as Bloomberg Daybreak. 0:02:44.680 --> 0:02:46.720 All right, Amy, thank you. We're getting more reaction to 0:02:46.760 --> 0:02:50.720 Attorney General Garland's request to unseat the warrant. Cardozo's School 0:02:50.760 --> 0:02:54.119 of Law professor Jessica Roth says former President Trump could 0:02:54.200 --> 0:02:58.519 release the documents himself. The former president has confirmed publicly 0:02:58.560 --> 0:03:01.800 that a search was executed on his property um us, 0:03:01.960 --> 0:03:05.200 essentially eliminating one of the primary reasons why search warrants 0:03:05.360 --> 0:03:07.760 remain under still at this juncture, which is to protect 0:03:07.800 --> 0:03:11.600 the privacy of those who were searched. And Cardosa Law 0:03:11.600 --> 0:03:14.600 Professor Jessica Robb is a former federal prosecutor in the 0:03:14.639 --> 0:03:16.840 Southern District of New York. She was a guest on 0:03:16.880 --> 0:03:19.959 Bloomberg Sound On heard weekdays at five pm Eastern on 0:03:20.040 --> 0:03:22.960 Bloomberg Radio. Well, one other major political story we're watching 0:03:23.000 --> 0:03:25.720 this morning, Karen Bloomberg News has learned that President Biden 0:03:25.800 --> 0:03:28.080 is preparing to launch his re election campaign in the 0:03:28.120 --> 0:03:31.359 months after November's mid term elections. Those close to the 0:03:31.400 --> 0:03:35.080 president describe him as upbeat about recent legislative, economic, and 0:03:35.120 --> 0:03:38.520 foreign policy victories. The Pole's show most Democrats would rather 0:03:38.560 --> 0:03:41.240 have a candidate other than Biden. But we also have 0:03:41.320 --> 0:03:44.400 new developments this morning on the battle against the pandemic 0:03:44.480 --> 0:03:48.160 Nathan the CDC is loosening guidance for people exposed to 0:03:48.200 --> 0:03:51.400 COVID nineteen and Bloomberg's Sad Baxter has the story this 0:03:51.440 --> 0:03:54.440 is the latest loosening of CDC policies that says there 0:03:54.560 --> 0:03:58.400 is no longer a recommendation to quarantine after exposure and 0:03:58.480 --> 0:04:02.119 says it more closely aligned with what people are doing anyway. 0:04:02.200 --> 0:04:06.400 It says will benefit school classrooms and the children themselves. 0:04:06.840 --> 0:04:09.880 It does say those people should wear masks indoors while 0:04:10.000 --> 0:04:13.720 monitoring for symptoms, and it also says people with COVID 0:04:13.840 --> 0:04:18.559 symptoms should end isolation on the sixth day or later. 0:04:18.920 --> 0:04:21.919 In San Francisco, I'm at Baxter Bloomberg day break, Okay, 0:04:21.920 --> 0:04:24.560 and thank you. Turning to markets now, Futures are moving 0:04:24.600 --> 0:04:26.479 higher as we close out a trading week that's been 0:04:26.560 --> 0:04:29.920 highlighted by inflation data. Stocks have rallied since they're low 0:04:30.000 --> 0:04:32.840 for mid June. The SMP five hundreds now trading near 0:04:32.880 --> 0:04:36.320 a three month high. JP Morgan Chief Global Strategist David 0:04:36.360 --> 0:04:38.960 Kelly says stocks could rebound to record highs in the 0:04:38.960 --> 0:04:41.680 next few years. Look at what the record high would be. 0:04:41.760 --> 0:04:44.159 Look at the percentage gain you're talking about here. So 0:04:44.560 --> 0:04:46.839 if you need to go up, you know, if it 0:04:46.880 --> 0:04:49.080 takes you a year to do that, that's a great game. 0:04:49.120 --> 0:04:51.040 If it takes you two years to do that with dividends, 0:04:51.080 --> 0:04:52.960 that's still a great If it takes you three years, 0:04:53.040 --> 0:04:55.720 you're still making good money. So only in order to 0:04:55.800 --> 0:04:57.839 be a bull on stocks, all you have to believe 0:04:57.920 --> 0:05:00.160 is that you'll get there within say the next three year. 0:05:00.480 --> 0:05:03.440 JP Morgan's David Kelly says he would be fully invested 0:05:03.440 --> 0:05:07.360 in equities right now. Well, Nathan. Despite the cooler inflation 0:05:07.520 --> 0:05:10.640 ratings we've seen this week, the discussion continues on how 0:05:10.680 --> 0:05:14.080 aggressive the FED will be. San Francisco Fed President Mary 0:05:14.160 --> 0:05:17.240 Daily says she is flexible when it comes to future policy. 0:05:17.920 --> 0:05:21.039 I have a baseline case going into September that is 0:05:21.080 --> 0:05:23.919 fifty basis points. That's where I've been since the last meeting. 0:05:24.279 --> 0:05:27.760 But I have an open mind about whether seventy is 0:05:27.800 --> 0:05:29.680 going to be necessary, and a lot of that will 0:05:29.720 --> 0:05:33.440 depend on the labor market, inflation and whether we start 0:05:33.480 --> 0:05:37.360 to uh, we see those things slow enough to say, wow, 0:05:37.440 --> 0:05:40.719 we've got the momentum need. San Francisco Fed President Mary 0:05:40.800 --> 0:05:43.920 Daily made the comments in an interview with Bloomberg's Kathleen Hayes, 0:05:43.960 --> 0:05:46.440 and catch more of that conversation coming up shortly on 0:05:46.480 --> 0:05:49.440 Bloomberg Daybreak Right. In Corporate News this morning, Karen Apple 0:05:49.600 --> 0:05:52.400 is in focus. We're told the company expects to sustain 0:05:52.480 --> 0:05:55.400 iPhone sales this year even as the market slows. More 0:05:55.480 --> 0:05:59.360 from Bloomberg's Charlie Pellett, Apple is asking suppliers to build 0:05:59.400 --> 0:06:02.680 at least as many of its next generation iPhones this 0:06:02.800 --> 0:06:07.760 year's in one, counting on an affluent clientele and dwindling 0:06:07.800 --> 0:06:12.640 competition to whether a global electronics downturn, sources tell Bloomberg, 0:06:12.680 --> 0:06:15.920 but tech Giant is telling its assemblers to make ninety 0:06:16.000 --> 0:06:19.640 million of its newest devices on par with last year, 0:06:19.920 --> 0:06:24.599 despite deteriorating projections for the smartphone market in New York. 0:06:24.720 --> 0:06:28.039 Charlie Pellett Bloomberg Daybreak, All right, Charlie, thanks well. Shares 0:06:28.120 --> 0:06:31.279 of Alumina around the move this morning. The DNA sequencing 0:06:31.320 --> 0:06:34.279 Giant stock is plunging down fifteen and a half percent 0:06:34.320 --> 0:06:37.600 of the pre market, as Bloomberg's Krisner reports, the company 0:06:37.640 --> 0:06:41.279 cut its full year earnings forecast. Illumina blamed the reduction 0:06:41.400 --> 0:06:45.279 on potential penalties in Europe over its acquisition of cancer 0:06:45.360 --> 0:06:48.760 test provider Grail last month. Of two companies were warned 0:06:48.760 --> 0:06:52.200 of hefty fines after EU regulators said the merger was 0:06:52.240 --> 0:06:56.720 implemented before regulators reviewed the deal. Illumina now says adjusted 0:06:56.760 --> 0:06:59.400 earnings will be in the range of two dollar seventy 0:06:59.400 --> 0:07:02.880 five cents at two nineties share. It's earlier forecast was 0:07:02.960 --> 0:07:05.960 between four dollars and four twenty in New York. I'm 0:07:06.000 --> 0:07:09.240 Doug Chrisoner, Bloomberg Daybreak. Okay, Doug, thanks, SMP Future is 0:07:09.320 --> 0:07:11.520 up twenty two points this morning. Dal Future is up 0:07:11.520 --> 0:07:14.800 one fifty five. Nastack Futures are hired by seventy one 0:07:14.840 --> 0:07:17.600 points straight ahead, your latest local headlines and a check 0:07:17.600 --> 0:07:24.120 of sports. This is Bloomberg and it's now five oh 0:07:24.120 --> 0:07:26.280 seven on Wall Street where it's seventy three degrees in 0:07:26.360 --> 0:07:28.640 Central Park. Still got a little road work southbound Van 0:07:28.680 --> 0:07:31.360 Wick between Liberty Avenue and Linded Boulevard, But so far, 0:07:31.480 --> 0:07:34.400 so good on the Friday morning ride. Michael Barr is 0:07:34.480 --> 0:07:36.360 here with more than what's going on in New York 0:07:36.440 --> 0:07:38.920 and around the world. Good morning, Michael, Good morning Nathan. 0:07:38.920 --> 0:07:41.720 Authorities are investigating the motives of a man armed with 0:07:41.760 --> 0:07:44.960 an a R fifteen style weapon who tried to breach 0:07:45.000 --> 0:07:48.880 the FBI Cincinnati office. He fled and was shot and 0:07:49.040 --> 0:07:52.280 died hours later in a rural standoff with law enforcement. 0:07:52.600 --> 0:07:56.920 Ohio State Highway Patrol spokesman Lieutenant Nathan Dennis. Throughout the 0:07:57.080 --> 0:08:03.280 day today, UM law enforcement officers attempted to negotiate with 0:08:03.440 --> 0:08:07.880 the suspect. State Patrol Lieutenant Nathan Dennis. The FBI is 0:08:07.880 --> 0:08:11.280 warning its agents to take extra precautions in an increase 0:08:11.280 --> 0:08:14.880 in social media threats following Monday search at former President 0:08:14.920 --> 0:08:19.600 Trump's home. Investigators are examining whether the suspect, identified as 0:08:19.640 --> 0:08:22.400 forty two year old Ricky Schiffer, may have had ties 0:08:22.480 --> 0:08:26.800 to far right extremist groups. Activists rallied at City Hall 0:08:26.920 --> 0:08:29.280 to demand New York City banned the use of horse 0:08:29.360 --> 0:08:33.680 drawn carriages. After a horse collapsed in Hell's Kitchen Wednesday evening, 0:08:34.080 --> 0:08:36.840 the NYPD used water hoses to try to cool down 0:08:36.840 --> 0:08:40.520 the fourteen year old horse. Demonstrators support a bill the 0:08:40.520 --> 0:08:43.559 New York City Council is currently considering to replace the 0:08:43.640 --> 0:08:47.959 horses with electric carriages. About two hundred potential jurors for 0:08:48.000 --> 0:08:50.320 the trial of a man charged with killing eight people 0:08:50.600 --> 0:08:53.040 on the New York City bike path and the terror 0:08:53.040 --> 0:08:57.080 attack filled out the questionnaires. Eventually, twelve jurors and six 0:08:57.120 --> 0:09:00.520 altenants will be chosen for the October eleventh trial of 0:09:00.640 --> 0:09:05.080 Side Polosipov in Manhattan Federal Court. Cipov was charged in 0:09:05.120 --> 0:09:09.160 the October seventeen attach after prosecutors say he used a 0:09:09.240 --> 0:09:13.040 truck that hit numerous pedestrians along the West Side Highway. 0:09:13.559 --> 0:09:17.440 UK officials say children under nine years of age could 0:09:17.480 --> 0:09:21.160 be eligible for a booster dose to fight polio soon. 0:09:21.720 --> 0:09:24.760 It comes as officials in Rockland County, New York, are 0:09:24.800 --> 0:09:28.600 investigating the country's first polio case identified in decades, leading 0:09:28.600 --> 0:09:31.600 to some concerns that polio could be coming back to 0:09:31.640 --> 0:09:36.280 the US. Dr Amy Errington, who specializes in global biological 0:09:36.280 --> 0:09:39.560 preparedness in Texas, says that while the best protection against 0:09:39.559 --> 0:09:43.719 polio remains childhood vaccination, Americans can take other precautions to 0:09:43.760 --> 0:09:46.680 lower their risk as well. The key to that is really, 0:09:46.880 --> 0:09:51.520 you know, good hand hygiene, being alert, and surveillance, surveillance 0:09:51.559 --> 0:09:53.560 like we've done and like they've done in New York 0:09:53.600 --> 0:09:57.200 to catch this case, but primarily keeping up with your 0:09:57.440 --> 0:10:01.000 your polio boosters and your your vac seen schedule as 0:10:01.000 --> 0:10:03.800 a child. Doctor Arrington Global News twenty four hours a 0:10:03.840 --> 0:10:05.720 day on the ariand on Bloomberg Quick Take Power about 0:10:05.720 --> 0:10:07.599 more than twenty seven hundred journalist analists more than a 0:10:07.640 --> 0:10:10.120 hundred twenty countries and Michael bar this is Bloomberg, Nathan, 0:10:10.200 --> 0:10:16.800 thank you, Michael. Almost five ten on All Street Time 0:10:16.800 --> 0:10:19.360 for the Bloomberg Sports Update, Good Friday morning, John Stas Show, 0:10:19.480 --> 0:10:22.800 Good Morning, Nathan Football's back Giants and Patriots in New England. 0:10:22.800 --> 0:10:25.000 The game had six lead changes and the Giants on 0:10:25.040 --> 0:10:27.040 a Graham Joe field goal is third of the night 0:10:27.080 --> 0:10:30.199 one twenty one. Daniel Jones played the first quarter six 0:10:30.240 --> 0:10:33.280 of ten sixty nine yards and then replaced by Tyrod Taylor, 0:10:33.360 --> 0:10:35.959 and one thing is served and the Giants are much 0:10:36.000 --> 0:10:40.360 improved at backup quarterback. Giants fans, unfortunately remember the teams 0:10:40.360 --> 0:10:44.040 struggles after Jones's injury last season. Taylor has started over 0:10:44.080 --> 0:10:46.280 fifty NFL games. He was thirteen of twenty one with 0:10:46.320 --> 0:10:48.880 a touchdown of Giants had four hundred eighteen yards of 0:10:48.880 --> 0:10:51.319 offense a hundred and seventy seven on the ground. The 0:10:51.800 --> 0:10:53.640 coach is Brian day Ball. He was asked how it 0:10:53.760 --> 0:10:56.160 went on the sideline. The coaches did a weird job 0:10:56.160 --> 0:10:58.360 and we respected. I think like he had his staff 0:10:58.400 --> 0:11:00.640 really organized. Kafka did a really good job. I think 0:11:00.640 --> 0:11:03.280 he communicated well throughout the game. Again, we're not making 0:11:03.320 --> 0:11:06.960 a ton of adjustments here, and um, you know I was. 0:11:07.040 --> 0:11:09.880 I was pleased with that again, pleased with the substitutions. 0:11:10.320 --> 0:11:13.520 I mean, it's our first step, and I'm pleased with 0:11:13.559 --> 0:11:15.840 the way that compete. A Jets played tonight in Philadelphia. 0:11:15.920 --> 0:11:18.520 Just just added a veteran tackle, Dwyane Brown's, a five 0:11:18.559 --> 0:11:21.480 time pro bowler about to turn thirty seven. Jets just 0:11:21.760 --> 0:11:24.040 lost tackle McKay pecked into a season ending knee and 0:11:24.080 --> 0:11:27.280 drink baseball Dyersville, Iowa a great setting for the field 0:11:27.360 --> 0:11:29.840 of Dreams. Game Covers beat the Red sport of two 0:11:29.920 --> 0:11:32.640 Yankees and Red Sox tonight in Boston. The Sox one 0:11:32.720 --> 0:11:35.760 last night, but they're just thirteen and twenty seven their 0:11:35.800 --> 0:11:37.679 last forty games, and the Yanks are only ten and 0:11:37.760 --> 0:11:40.640 eighteen in their last twenty eight. And with Houston's win yesterday, 0:11:41.000 --> 0:11:43.320 Yankees no longer have the best record in the American League. 0:11:43.320 --> 0:11:45.120 They don't have the best record in New York. That 0:11:45.200 --> 0:11:47.800 belongs with the Red Hot Mets, who hosts the Phillies tonight. 0:11:47.880 --> 0:11:50.400 Extras around the Mounta, the NBA announced the entire league 0:11:50.760 --> 0:11:53.240 will retire the number six one by the late bial Russell. 0:11:53.480 --> 0:11:57.160 Johns Dasha were Bloomberg Sports Okay john thanks SMP futures 0:11:57.240 --> 0:12:00.560 Up twenty two points, Sound Futures Up, wanted Stack Futures 0:12:00.559 --> 0:12:07.840 are highed by seventy three points. This is Bloomberg Bloomberg 0:12:07.880 --> 0:12:10.000 eleven three oh weather clouds give way to sunshine today, 0:12:10.080 --> 0:12:12.920 HIGs in the low eighties, upper sixties tonight, low eighties 0:12:12.960 --> 0:12:17.560 again tomorrow and Sunday. What a weekend coming up right 0:12:17.600 --> 0:12:23.800 now seventy three in Central Park markets, headlines and breaking 0:12:23.840 --> 0:12:26.720 news twenty four hours a day at Bloomberg dot com, 0:12:26.880 --> 0:12:31.079 the Bloomberg Business Outland at Bloomberg Quick takes a Bloomberg 0:12:31.160 --> 0:12:40.160 Business Flash, and I'm Karen Moscow. Stocks in US stock 0:12:40.200 --> 0:12:43.200 index futures around the rise this morning as investors assess 0:12:43.240 --> 0:12:45.959 whether signs of cooling inflation will enable to FED to 0:12:46.040 --> 0:12:49.079 pivot to less aggressive interest rate increases. We checked the 0:12:49.120 --> 0:12:52.320 markets every fifteen minutes throughout the trading day. On Bloomberg. 0:12:52.720 --> 0:12:55.720 SNP futures up twenty two points this morning, DAL futures 0:12:55.760 --> 0:12:59.199 up on eight and nastack futures up seventy six. The 0:12:59.320 --> 0:13:02.000 Dacks in jury Many's up half per cent. They can't 0:13:02.000 --> 0:13:04.079 compare us up three tens percent, and the foot see 0:13:04.120 --> 0:13:06.320 one hundred is up about six tenths of upper set 0:13:06.640 --> 0:13:08.880 ten year Treasury up three Third day seconds held two 0:13:08.960 --> 0:13:11.360 point eight seven percent. They yield on the two year 0:13:11.440 --> 0:13:14.600 three point to zero percent. NIMEX screwed oil is done 0:13:14.600 --> 0:13:17.040 about a tenth of a percent now down twelve cents 0:13:17.080 --> 0:13:20.000 and nine dollars twenty two cents of barrel comex school 0:13:20.040 --> 0:13:22.240 down three tents per cent or five dollars eighty cents 0:13:22.280 --> 0:13:25.200 at eighteen o one forty announced the euro one point 0:13:25.240 --> 0:13:27.600 oh two nine seven against the dollar, British pound one 0:13:28.640 --> 0:13:31.400 zero and the end is one thirty three point three zero. 0:13:31.520 --> 0:13:34.079 And looking at a bitcoin this morning, it's down more 0:13:34.120 --> 0:13:37.680 than one percent at twenty three thousand, nine hundred sixty dollars. 0:13:37.960 --> 0:13:40.199 And today we are looking for reports on the import 0:13:40.240 --> 0:13:42.640 price and next at eight thirty Wall Street Time, and 0:13:42.720 --> 0:13:45.640 we get a look at consumer sentiment at ten. That's 0:13:45.640 --> 0:13:48.600 a Bloomberg business flash. Now here's Michael Barr with more 0:13:48.679 --> 0:13:51.080 on what's going on around the world. Muchael, Good morning, 0:13:51.200 --> 0:13:53.719 Good morning, kar and FBI agents were said to be 0:13:53.800 --> 0:13:57.439 looking for classified documents related to nuclear weapons in the 0:13:57.520 --> 0:14:01.720 search of former President Trump's Mara log. Residents of Washington 0:14:01.760 --> 0:14:05.319 Post reports there were major concerns among government officials that 0:14:05.440 --> 0:14:09.319 the information could fall into the wrong hands. Meanwhile, former 0:14:09.440 --> 0:14:12.880 President Trump says he supports the release of documents related 0:14:12.920 --> 0:14:15.959 to the FBI search. Trump made the announcement on his 0:14:16.080 --> 0:14:20.600 social media site Truth Social following a Justice Department request 0:14:20.800 --> 0:14:24.560 and a Florida court to unseal the documents, and Indiana 0:14:24.680 --> 0:14:30.040 family friends and lawmakers remembered Republican Congresswoman Jackie Wullorsky at 0:14:30.080 --> 0:14:33.520 her funeral yesterday. Llorski was killed along with three other 0:14:33.560 --> 0:14:36.960 people and a head on crash near South Bend. Earlier 0:14:37.120 --> 0:14:40.360 this month, in baseball, the Red Sox beat the Orioles 0:14:40.440 --> 0:14:42.960 for three Globally was twenty four hours a day on 0:14:43.080 --> 0:14:46.360 air and on Bloomberg Quick Take, powered by more than journalists, 0:14:46.400 --> 0:14:49.160 analysts and more than one hundred twenty countries. I'm Michael Barb. 0:14:49.240 --> 0:14:51.560 This is Bloomberg. Nathan. Thanks Michael. We're coming up to 0:14:51.640 --> 0:14:54.320 five twenty on Wall Street Live from the Bloomberg Interactive 0:14:54.320 --> 0:14:57.920 Broker Studios. This is Bloomberg Daybreak. I'm Nathan Hagar. Let's 0:14:57.960 --> 0:15:00.040 take a look at FED policy now, San franc This 0:15:00.160 --> 0:15:03.360 girl FED President Mary Daily says the cooler inflation ratings 0:15:03.440 --> 0:15:06.880 for July are welcoming, but the fight against fast price 0:15:06.960 --> 0:15:10.320 growth is far from over. In an interview, with Bloomberg's 0:15:10.360 --> 0:15:14.040 Kathleen Hayes carry On and Heidi Stroud Watts Daily reiterated 0:15:14.080 --> 0:15:16.600 that her base cases for a half percentage point hike 0:15:16.680 --> 0:15:19.000 at the fed's meeting next month. At the same time, 0:15:19.080 --> 0:15:22.600 she has an open mind about another large increase being necessary. 0:15:23.000 --> 0:15:25.880 Let's listen to that conversation. Now, fifty or seventy five 0:15:25.920 --> 0:15:28.640 isn't the qout pivoting. It's not about ending this rate 0:15:28.760 --> 0:15:30.920 high path. So I'm still kind of curious if you 0:15:31.120 --> 0:15:32.880 just were looking at those numbers, what would you say, 0:15:32.920 --> 0:15:35.840 did they support your baseline? For example, so fifty or 0:15:35.880 --> 0:15:39.480 seventy five, Yeah, I think fifty supports the baseline. Think 0:15:39.520 --> 0:15:40.720 of more ready to be at the end. I mean 0:15:40.720 --> 0:15:43.400 the numbers. We just got the numbers. We scott the numbers. 0:15:43.480 --> 0:15:46.359 We just got to say that we have enough uncertainty 0:15:46.440 --> 0:15:49.480 about the path of inflation. It looks a little bit improvement, 0:15:49.560 --> 0:15:50.840 but we don't want to be head faked, so we 0:15:50.880 --> 0:15:52.760 want to wait for the next report. We have a 0:15:52.920 --> 0:15:56.880 reinflation report and unemployment report coming out before the next meeting. 0:15:57.360 --> 0:16:00.440 Really behooves us to stay daya dependent and not call 0:16:00.560 --> 0:16:03.320 it but for today. With those numbers in hand, I 0:16:03.400 --> 0:16:06.400 still think fifty basis points is the case, but I 0:16:06.520 --> 0:16:09.800 am open to seventy the data of all differently. So 0:16:09.880 --> 0:16:11.800 we've got another inflasion report and other jobs we do. 0:16:12.600 --> 0:16:13.920 Now I want to ask you, I want to I 0:16:14.000 --> 0:16:15.720 want to hit some of the big points first. And 0:16:15.840 --> 0:16:18.680 the other one is there's in terms of recession and 0:16:18.760 --> 0:16:22.320 recession risks, there seems to be frequently a sense in 0:16:22.400 --> 0:16:25.120 markets that, oh, once there's signs of a recession, of 0:16:25.200 --> 0:16:27.720 the risk a rising, the FED will pull back. So 0:16:29.680 --> 0:16:33.120 it is the Fed. Are you willing to let those 0:16:33.240 --> 0:16:36.400 risk materialize if you have to to risk a recession, 0:16:36.920 --> 0:16:39.800 if that's what it's in the end takes to get 0:16:39.920 --> 0:16:42.520 the inflasion right down, well, I'd like to start with this. 0:16:42.920 --> 0:16:47.080 We are a long way from evaluating those risks right now. 0:16:47.200 --> 0:16:50.960 Look at the employment report. The people in the labor market, 0:16:51.000 --> 0:16:53.160 whether they're a firm trying to find a worker or 0:16:53.200 --> 0:16:55.480 workers trying to find a job, do not feel like 0:16:55.560 --> 0:16:59.000 it's a recession right now? Jobs are plentiful. The main 0:16:59.240 --> 0:17:01.840 marker for con sumers about a recession is are they 0:17:01.880 --> 0:17:04.159 finding hard time finding jobs? Is it hard to get 0:17:04.200 --> 0:17:06.800 a job and other incomes falling? You really don't see 0:17:06.840 --> 0:17:08.800 that right now, So I don't see the risks of 0:17:09.119 --> 0:17:12.000 inflation as our pre eminent risk. I see the most 0:17:12.080 --> 0:17:16.000 important risk we face in the economy as inflation is 0:17:16.080 --> 0:17:18.000 too high and has been too high for too long, 0:17:18.280 --> 0:17:20.280 and we need to bring that down. So when I'm 0:17:20.320 --> 0:17:23.480 balancing the risks, I'm really balancing how quickly can we 0:17:23.560 --> 0:17:26.920 bring inflation down without tipping the labor market over. And 0:17:27.040 --> 0:17:31.160 that's why fifty basis points make sense to me. Right now, Mary, 0:17:31.320 --> 0:17:35.000 does the stock market bullish is right now? Is that A? 0:17:36.119 --> 0:17:38.680 Is that challenging to the Federal Reserve? And given that, 0:17:38.800 --> 0:17:41.520 of course I could relax financial conditions, which is not 0:17:41.680 --> 0:17:44.440 what the Fed wants to see at this moment. So 0:17:45.040 --> 0:17:47.480 we look at a broad range of financial conditions, and 0:17:47.600 --> 0:17:50.520 the stock market is simply one of them. I'm also 0:17:50.600 --> 0:17:54.159 looking at mortgage interest rates and borrowing rates for businesses 0:17:54.280 --> 0:17:57.040 and consumers for a variety of things, and I really 0:17:57.119 --> 0:18:00.399 do want those to remain tight and tight and heightening 0:18:00.440 --> 0:18:03.600 as we go, because we don't want financial conditions to relax. 0:18:03.840 --> 0:18:05.800 We want them to remain tight so that we can 0:18:05.840 --> 0:18:09.600 continue to bridle the economy. Some want take the accommodation 0:18:09.720 --> 0:18:12.800 out remember, financial conditions have been so loose in part 0:18:12.880 --> 0:18:15.199 because we were adding a lot of accommodation to get 0:18:15.280 --> 0:18:17.680 us through the pandemic. Now we want to pull that back, 0:18:17.960 --> 0:18:20.480 and we want the economy to slow, bring demand and 0:18:20.520 --> 0:18:24.160 supply back in balance, and deliver a sustainable growth path 0:18:24.520 --> 0:18:28.159 that delivers on price stability and full employment. This is achievable, 0:18:28.400 --> 0:18:32.280 but it takes some time to work its way through. Mary, 0:18:32.320 --> 0:18:35.000 It's not the ideal scenario. But would you ultimately be 0:18:35.160 --> 0:18:39.000 comfortable or okay with triggering a recession, even if it's 0:18:39.000 --> 0:18:43.160 a mild one in order to get over inflation? Well, 0:18:43.240 --> 0:18:45.840 let me just say what What is true is that 0:18:46.359 --> 0:18:49.480 I think about what I want to achieve, what Americans 0:18:49.880 --> 0:18:52.680 really are expecting us to achieve, and that is a 0:18:53.160 --> 0:18:58.399 smoother transition that doesn't require a recession, actually delivers on 0:18:58.520 --> 0:19:01.840 a slower economy that is still giving people the jobs 0:19:01.880 --> 0:19:05.240 they need and the price stability they deserve. That's what 0:19:05.320 --> 0:19:09.000 I'm looking for, and that's what I'm focused on. Quick 0:19:09.040 --> 0:19:12.399 final question, sure, is that in a sense of what 0:19:12.480 --> 0:19:14.800 we've been talking about, then, is why it's so important, 0:19:14.920 --> 0:19:16.960 no matter what the cost, no matter how painflu it is. 0:19:17.080 --> 0:19:18.960 In the short term, it's so important for the Federal 0:19:18.960 --> 0:19:23.440 Reserve to get inflation down. So it is essential we 0:19:23.480 --> 0:19:26.120 get inflation down. It is a commitment we have made 0:19:26.200 --> 0:19:29.479 at the Federal Reserve to bring inflation down. People want jobs, 0:19:29.760 --> 0:19:32.639 but they also want low and stable inflation. We have 0:19:32.760 --> 0:19:35.560 to give them both. And that was San Francisco Fed 0:19:35.640 --> 0:19:39.119 President Mary Daily speaking with Bloomberg's Kathleen Heyes, sherry On 0:19:39.320 --> 0:19:41.520 and Heidi Stroud Watts. You can catch more of that 0:19:41.640 --> 0:19:46.399 conversation online at Bloomberg dot com. S ANDP futures up 0:19:46.440 --> 0:19:48.800 twenty one point. Stou futures are hired by a hundred 0:19:48.840 --> 0:19:50.959 forty eight points. Stanti stack futures on the rise by 0:19:51.080 --> 0:19:54.360 seventy five points. The ten year treasury is up three 0:19:54.440 --> 0:19:57.399 thirty seconds, the yield two point eight seven and the 0:19:57.480 --> 0:20:00.159 yield on the two year right now three point two 0:20:00.320 --> 0:20:08.000 zero percent. You're listening to Bloomberg day Break Bloomberg eleven 0:20:08.040 --> 0:20:10.120 three oh weather. Any showers this morning to give way 0:20:10.160 --> 0:20:12.960 to sunshine and low eighties for highs upper sixties. Tonight 0:20:13.240 --> 0:20:15.320 will be in the low eighties, partly the mostly sunny 0:20:15.359 --> 0:20:19.160 tomorrow and Sunday. Right now seventy three degrees in central Park, 0:20:22.080 --> 0:20:26.560 broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.720 --> 0:20:31.320 Bloomberg E Loving Freedom to Washington, d C, Bloomberg to Boston, 0:20:31.480 --> 0:20:35.280 Bloomberg one six one to San Francisco, Bloomberg nine sixty 0:20:35.440 --> 0:20:38.639 to the Country, Sirius XM. Chentle one nine and around 0:20:38.680 --> 0:20:42.200 the globe the Bloomberg Business at and Bloomberg Radio dot Com. 0:20:42.640 --> 0:20:51.600 This is Bloomberg Daybreak. It's five thirty on Wall Street. 0:20:51.640 --> 0:20:54.240 Good morning. I'm Nathan Hager and I'm Kared Mosk. Yeah, 0:20:54.320 --> 0:20:56.720 we are just about four hours away from the open 0:20:56.760 --> 0:20:58.440 of US trading. Let's get you up to date on 0:20:58.480 --> 0:21:00.160 the news. You need to know what this show. Where 0:21:00.240 --> 0:21:03.080 we begin with politics and new details about the FBI 0:21:03.280 --> 0:21:06.200 executing a search warrant at the Florida home of former 0:21:06.320 --> 0:21:10.359 President Trump. According to the Washington Post, classified documents related 0:21:10.400 --> 0:21:13.159 to nuclear weapons were among the items that they were 0:21:13.240 --> 0:21:16.680 searching for. Attorney General Merrick Garland says the Department of 0:21:16.800 --> 0:21:20.080 Justice has filed a motion to unseal the search warrant. 0:21:20.400 --> 0:21:23.720 More information will be made available in the appropriate way 0:21:24.520 --> 0:21:27.840 and at the appropriate time. An Attorney General Garland is 0:21:27.880 --> 0:21:30.720 also defending the integrity of his agents involved in the 0:21:30.800 --> 0:21:34.800 matter and reactions pouring into the Attorney General's short briefing yesterday. 0:21:34.920 --> 0:21:38.080 Karen Cardoza School of Law professor Jessica Roth says it 0:21:38.160 --> 0:21:41.080 makes sense to unseal the warrant in this circumstance. There's 0:21:41.119 --> 0:21:44.320 just an enormous public interest in these events, in part 0:21:44.440 --> 0:21:48.920 because of the former president's statements announcing it and subsequent statements, 0:21:49.320 --> 0:21:51.359 and by the fact that he's the former president of 0:21:51.400 --> 0:21:54.440