WEBVTT - Bloomberg Daybreak: August 25, 2022 - Hour 1 (Radio) 0:00:00.960 --> 0:00:04.200 Live from the Bloomberg in directive Burger Studios. Is Bloomberg 0:00:04.280 --> 0:00:08.039 day Break for Thursday, August two. Coming up this hour, 0:00:08.320 --> 0:00:12.240 the highly anticipated Jackson Whole Symposium kicks off today. We 0:00:12.280 --> 0:00:15.240 are there with the latest. China takes steps to stimulate 0:00:15.280 --> 0:00:19.080 its economation. Shipmaker and video gives it disappointing sales forecasts. 0:00:19.160 --> 0:00:21.759 I mean the latest reaction to President Biden's planned to 0:00:21.800 --> 0:00:25.240 forgive a portion of student loans held by millions. The 0:00:25.360 --> 0:00:29.480 NYPD has ordered no unnecessary talking among police officers were 0:00:29.520 --> 0:00:32.320 allowing in the streets. Plus the Uvaldi, Texas school police 0:00:32.360 --> 0:00:34.919 chief has been fired. I'm Michael bar Or a hand 0:00:34.960 --> 0:00:37.320 I'm John stash Shower in sports, a long time giant 0:00:37.320 --> 0:00:40.360 back at practice the Mets, but get a homestand against Colorado. 0:00:40.440 --> 0:00:44.919 The Yankees start a road trip in Oakland. That's all 0:00:45.040 --> 0:00:48.800 training ahead on Bloomberg Daybreak on Bloomberg eleven, Free on 0:00:48.880 --> 0:00:53.320 New York, Bloomberg one, Washington, d C, Bloomberg one oh 0:00:53.360 --> 0:00:57.960 six one, Boston, Bloomberg nine sixties and Francisco Sirius x 0:00:58.080 --> 0:01:00.280 M one nine Team and around the world Old on 0:01:00.400 --> 0:01:03.720 Bloomberg Radio dot Com and by the Bloomberg Business app 0:01:07.600 --> 0:01:10.440 Good morning. I'm Nathan Hagar and I'm Karen Moscow and 0:01:10.560 --> 0:01:13.479 US stock index futures are higher this morning. We're coming 0:01:13.560 --> 0:01:15.039 up to five o one on Wall Street, and we 0:01:15.120 --> 0:01:17.680 checked the markets every fifteen minutes throughout the trading day. 0:01:17.760 --> 0:01:20.880 On bloomberg SMP futures up thirty six points this morning, 0:01:20.920 --> 0:01:23.760 DAL futures have two hundred eight and Nazzack futures have 0:01:23.920 --> 0:01:27.000 one hundred thirty. Ten year treasury up five thirty seconds, 0:01:27.040 --> 0:01:29.720 yield three point oh eight percent and a yield on 0:01:29.760 --> 0:01:33.160 the two year three point three five percent. Nathan, Karen, 0:01:33.240 --> 0:01:35.319 it is the event Wall Street has been waiting for 0:01:35.360 --> 0:01:39.320 all week. The Federal Reserves Annual Jackson Hole Economic Symposium 0:01:39.400 --> 0:01:42.720 kicks off today. Bloomberg's Tom Keane is in Jackson Hole 0:01:42.800 --> 0:01:46.880 covering it for us. Nathan and Karen hugely anticipated Jackson Hole. 0:01:46.959 --> 0:01:49.520 Some of them have been really pretty quiet. But we 0:01:49.560 --> 0:01:53.200 look out today and into the chairman speech Friday, and 0:01:53.280 --> 0:01:56.080 we can say this time is different. We've got markets 0:01:56.120 --> 0:01:58.360 on the move, we've got foreign exchange in the move, 0:01:58.760 --> 0:02:02.960 but far more we got this huge transatlantic divide, the 0:02:03.000 --> 0:02:07.080 difference in the economies of Europe and a beleaguer United 0:02:07.200 --> 0:02:11.400 Kingdom and a relatively strong United States. All right, Tom, 0:02:11.400 --> 0:02:13.200 thank you. Please stick with Tom Keene and the rest 0:02:13.280 --> 0:02:15.720 of the Bloomberg team for complete live coverage of the 0:02:15.800 --> 0:02:19.720 Jackson Hole Symposium. Tom, along with Lisa Ramowitz and Jonathan Farroll, 0:02:19.840 --> 0:02:23.000 will have a special edition of Bloomberg Surveillance beginning at 0:02:23.040 --> 0:02:26.600 seven am on both Bloomberg Radio and television. Well, Nathan, 0:02:26.600 --> 0:02:29.160 has Tom mentioned The key event at Jackson Hole takes 0:02:29.160 --> 0:02:32.200 place tomorrow when Fed Jeerman J. Powell delivers a highly 0:02:32.240 --> 0:02:36.560 anticipated speech. Charles Schwam, Chief investment strategist Liza Anne Saunders 0:02:36.800 --> 0:02:39.400 does not think the FED will change course and pivot 0:02:39.440 --> 0:02:43.280 to cutting rates. In my mind, the only condition under 0:02:43.320 --> 0:02:45.799 which the FED would so quickly move to a rate 0:02:45.840 --> 0:02:48.800 cutting mode would not just be a retreat and inflation. 0:02:49.160 --> 0:02:51.400 I think that would damage their credibility if they went 0:02:51.440 --> 0:02:54.440 to rate cutting simply because inflation has started to come down, 0:02:55.080 --> 0:02:58.680 that would only, I think, be preceded by a much 0:02:58.960 --> 0:03:01.840 more significant worse in the economy than what we already 0:03:01.880 --> 0:03:05.360 have here, and or a much more significant ortioning in 0:03:05.440 --> 0:03:08.720 the label market. And Charles Schwab, Chief investment strategist LUs 0:03:08.760 --> 0:03:12.160 Anne Saunders says she could see the FED pivoting to slower, 0:03:12.400 --> 0:03:15.760 slow rate hikes rather than rate cuts. As you mentioned, Karen, 0:03:15.840 --> 0:03:18.640 US futures are higher ahead of Jackson Hole. In Asia, 0:03:18.760 --> 0:03:21.239 stocks rose for the first time in six sessions as 0:03:21.240 --> 0:03:24.320 investors welcome to NEXTRA hundred forty six billion dollars worth 0:03:24.360 --> 0:03:27.640 of pledge stimulus from Chinese authorities. Let's get the recap 0:03:27.680 --> 0:03:31.160 from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good morning, 0:03:31.200 --> 0:03:33.880 Karen and Nathan. The m CI Asia Pacific Index jumped 0:03:33.880 --> 0:03:36.560 the most in two weeks, driven by games across the region, 0:03:36.600 --> 0:03:39.800 including in Japan, China, Hong Kong, and South Korea. Trade 0:03:39.800 --> 0:03:41.920 in Hong Kong was shotted in the morning session due 0:03:41.960 --> 0:03:44.240 to a storm morning, but equities jumped the most in 0:03:44.320 --> 0:03:46.600 two weeks in the afternoon session on the back of 0:03:46.640 --> 0:03:49.840 the China stimulus announcement. The Alsie also roses trade has 0:03:49.880 --> 0:03:52.960 met the stimulus would boost demand for commodities in Singapore. 0:03:53.040 --> 0:03:56.200 Juliette Sally Bloomberg daybreak right. Juliette thanked you a couple 0:03:56.240 --> 0:03:58.000 of stocks you're in the US on the move, and 0:03:58.040 --> 0:04:00.640 the pre market shares of end Video down three first cent. 0:04:00.640 --> 0:04:03.680 The chipmaker gave a disappointing forecast for the current quarter. 0:04:03.800 --> 0:04:06.680 We get the details from Bloomberg's Doug Christner. Just two 0:04:06.720 --> 0:04:09.760 weeks ago, in Video warned sales for its recent quarter 0:04:09.800 --> 0:04:12.880 would come in well below original expectations. A drop in 0:04:12.960 --> 0:04:15.880 demand for PC gaming chips got the blame, along with 0:04:16.279 --> 0:04:19.799 challenging market conditions. Well now, guidance for the current quarters 0:04:19.839 --> 0:04:22.680 suggest the slump is going to last. For Q three, 0:04:22.720 --> 0:04:25.960 revenue will be about five point nine billion dollars, roughly 0:04:26.000 --> 0:04:29.000 a billion below the average analyst estimate, and Video is 0:04:29.040 --> 0:04:33.279 contending with a rapid shift from supply shortages to ballooning 0:04:33.320 --> 0:04:36.680 stockpiles of unsold products in New York. On Doug Christner 0:04:36.680 --> 0:04:39.200 Bloomberg Daybreak, All right, Doug, thanks down the flip side. 0:04:39.200 --> 0:04:43.159 Shares of Snowflake are surging. They're up almost eighteen per cent. 0:04:43.400 --> 0:04:46.000 Let's get the reason live from Bloomberg's or Needy Young. 0:04:46.000 --> 0:04:48.799 Good morning, Grenita, Good morning Nathan. The company which helps 0:04:48.839 --> 0:04:52.760 businesses organized data in the cloud, projected quarterly products sales 0:04:52.800 --> 0:04:56.440 that will top estimates. Snowflake charges customers based on how 0:04:56.520 --> 0:04:59.800 much they use its data storage and analytics products rather 0:05:00.000 --> 0:05:02.920 and charging a flat rate subscription. Now, you may recall 0:05:03.040 --> 0:05:06.800 Snowflake rose to prominence in September with one of the 0:05:06.800 --> 0:05:09.840 biggest U s I p o s for a software company, 0:05:10.160 --> 0:05:12.840 but ever since reaching a record share price of almost 0:05:12.839 --> 0:05:16.320 four and two dollars in November, the stock has tumbled 0:05:16.360 --> 0:05:20.760 six Live in Washington, I'm reading a young Bloomberg Daybreak, 0:05:21.120 --> 0:05:23.039 reny to thank you well. Shares a test slap two 0:05:23.040 --> 0:05:25.000 percent in early trading, and we get the reason why 0:05:25.080 --> 0:05:28.760 from bloombergs Jeff Bellinger. Three for one split of Tesla 0:05:28.839 --> 0:05:32.039 stock went into effect after the markets closed yesterday. The 0:05:32.080 --> 0:05:36.080 split adjusted shares begin trading today. Tesla said when it 0:05:36.160 --> 0:05:38.400 proposed the split that it wanted to be able to 0:05:38.480 --> 0:05:41.960 offer equity options to every employee, but stock in the 0:05:42.000 --> 0:05:45.279 electric vehicle maker will also be more affordable for retail 0:05:45.360 --> 0:05:49.440 investors looking to buy individual shares. Employees who are invested 0:05:49.480 --> 0:05:52.359 in the company stand to benefit if new investors pushed 0:05:52.400 --> 0:05:56.320 the stock higher. Jeff Bellinger, Bloomberg Daybreak, All right, Jeff, thanks, 0:05:56.360 --> 0:05:58.560 let's start to Washington now. Our President Biden's made his 0:05:58.640 --> 0:06:01.760 long awaited announcement on student loan forgiveness. He's canceling ten 0:06:01.800 --> 0:06:03.920 thousand dollars in college debt for Americans who were in 0:06:03.960 --> 0:06:06.599 less than a hundred twenty five thousand, twenty thousand if 0:06:06.640 --> 0:06:08.799 they received a pell grand and he's extending the pause 0:06:08.880 --> 0:06:11.279 on repayments through the end of the year, capping those 0:06:11.320 --> 0:06:14.480 payments at five percent of monthly income. All this meets 0:06:14.560 --> 0:06:17.760 people can start finally crawl off from under that mountain 0:06:17.760 --> 0:06:20.440 of debt again, on top of the rent and the 0:06:20.600 --> 0:06:25.040 utilities by President Biden's movies already adding to concerns about inflation. 0:06:25.160 --> 0:06:28.120 Rick Davis, as a contributor for Bloomberg Politics, it just 0:06:28.160 --> 0:06:31.120 took a year for Biden to pass the Inflation Reduction Act, 0:06:31.160 --> 0:06:34.080 which which reduced the national debt by just under three 0:06:34.120 --> 0:06:37.920 hundred billion dollars. He just added five hundred billion dollars, 0:06:37.960 --> 0:06:42.680 including the extension, maybe even more UH to replace that. 0:06:42.880 --> 0:06:46.440 Bloomberg Politics contributor Rick Davis spoke with our Washington correspondent 0:06:46.520 --> 0:06:48.760 Joe Matthew on Bloomberg Sound On. You can catch the 0:06:48.800 --> 0:06:52.480 program weekdays at five pm Eastern on Bloomberg Radio. And again, 0:06:52.560 --> 0:06:55.560 futures are higher this morning. S and P futures are 0:06:55.640 --> 0:06:58.160 up thirty five points down futures up a hundred nine 0:06:58.360 --> 0:07:02.360 nine and nastagg futures have nine that's up about one percent. 0:07:02.680 --> 0:07:05.440 The decks in Germany is up sixtensive up percent, and 0:07:05.480 --> 0:07:09.480 the tenure treasuries up six thirty seconds three point eight percent. 0:07:09.560 --> 0:07:12.400 They yield on the two year three point three five percent. 0:07:12.720 --> 0:07:15.160 Traight ahead. Relate us to local headlines plus the check 0:07:15.200 --> 0:07:23.600 of sports. And this is Bloomberg I, Karen, thank you. 0:07:23.600 --> 0:07:25.680 It's five oh seven on Wall Street, worth seventy four 0:07:25.720 --> 0:07:28.200 degrees in Central Park. Utson delays getting to the upper 0:07:28.280 --> 0:07:31.600 level of George Washington Bridge from the crossbox in late construction. 0:07:31.920 --> 0:07:34.560 We'll get to the details in traffic first. Michael Barr 0:07:34.680 --> 0:07:36.320 with what else is going on in New York and 0:07:36.440 --> 0:07:38.760 around the world. Good morning, Michael, Good morning Nathan. The 0:07:38.880 --> 0:07:42.720 MTA will hold a meeting today about congestion pricing. The 0:07:42.760 --> 0:07:45.680 public will get a chance to speak about the controversial plan. 0:07:46.040 --> 0:07:49.160 Some drivers could see up to twenty three dollars every 0:07:49.160 --> 0:07:52.400 time they drive into certain parts of Manhattan. The NYPD 0:07:52.720 --> 0:07:55.960 ordered officers to stop unnecessary chatting while on the job. 0:07:56.480 --> 0:07:58.720 The New York Post reports the orders came from a 0:07:58.720 --> 0:08:02.840 department wide memo. Several weeks ago, Mayor Eric Adams was 0:08:02.920 --> 0:08:07.480 recorded criticizing officers were standing around talking while working. Adam 0:08:07.560 --> 0:08:10.640 said they should spread out for better coverage. The school 0:08:10.640 --> 0:08:13.800 district police chief in Evaldi, Texas was fired last night. 0:08:14.120 --> 0:08:17.320 The school board voted unanimously to release police Chief p 0:08:17.440 --> 0:08:21.280 DA Redondo. The motion was introduced by Trustee Laura Perez 0:08:21.400 --> 0:08:25.200 and received unanimous support. Finally, I moved to authorize the 0:08:25.280 --> 0:08:30.000 superintendent to issue written notice to Mr. Rodondo of this 0:08:30.120 --> 0:08:36.319 board action, including filing any needed reports required by the termination. 0:08:36.920 --> 0:08:41.040 Trustee Laura Perez and community members slammed Eredondo for what 0:08:41.120 --> 0:08:44.199 they said was this slow response and all the children 0:08:44.240 --> 0:08:47.040 who died as a result of the mass shooting. The 0:08:47.080 --> 0:08:50.400 widow of the late Kobe Bryant has been awarded sixteen 0:08:50.400 --> 0:08:53.640 million dollars in a lawsuit against Los Angeles County. Vanessa 0:08:53.679 --> 0:08:56.360 Bryant had sued the county after pictures taken by a 0:08:56.440 --> 0:09:00.960 sheriff's deputy and firefighter at the Kobe Bryant helicopter crash 0:09:01.040 --> 0:09:04.040 site was shared with a number of people. The Biden 0:09:04.080 --> 0:09:08.199 administration has one in Idaho judges order ensuring women abortions 0:09:08.200 --> 0:09:12.080 in medical emergencies. More from Bloomberg's and Baxter. The Idaho 0:09:12.160 --> 0:09:14.040 law had to find the right to abortion to a 0:09:14.080 --> 0:09:17.160 woman whose life was in danger. The judge ruled it 0:09:17.200 --> 0:09:19.920 too narrow and then ruled that there would be no 0:09:20.000 --> 0:09:24.960 prosecution of doctors who perform abortions in an emergency. Now, 0:09:25.040 --> 0:09:28.480 just yesterday, a Texas judge ruled the other way. The 0:09:28.559 --> 0:09:32.679 conflicting ruling show the patchwork of abortion laws on the books, 0:09:32.679 --> 0:09:35.640 but it does give the bind administration some precedent to 0:09:35.720 --> 0:09:39.920 continue to pursue cases in San Francisco. I'm at Baxter, 0:09:40.000 --> 0:09:42.880 Bloomberg Gay Break Global News twenty four hours a day 0:09:43.000 --> 0:09:45.559 on air and on Bloomberg Quick Take, powered by more 0:09:45.640 --> 0:09:48.120 than twenty seven hundred journalists and analysts more than a 0:09:48.160 --> 0:09:51.880 hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. 0:09:51.960 --> 0:09:58.640 Thank you, Michael five O nine on Wall Street Time 0:09:58.640 --> 0:10:01.600 for the Bloomberg Sports I've taken ring Johnson Horney Nathan 0:10:01.679 --> 0:10:03.640 Well earned days off for the Mets and the Yankees 0:10:03.679 --> 0:10:06.000 back tonight. Metal of Jacob de Graham on the Mount 0:10:06.040 --> 0:10:08.720 at City Phil against Colorado. Start of a ten game 0:10:08.760 --> 0:10:11.240 Rome stand with the Dodgers in Washington to follow the 0:10:11.320 --> 0:10:14.959 Atlanta Braves one again fourteen to two in Pittsburgh. The 0:10:15.000 --> 0:10:17.040 Braves were only a game and a half behind the Mets. 0:10:17.160 --> 0:10:19.600 Yankees are tonight in Oakland. That's a team that is 0:10:19.640 --> 0:10:21.920 twenty and forty one at home. Yankes have won three 0:10:21.920 --> 0:10:23.959 in a row. While was the same score of four 0:10:24.040 --> 0:10:26.679 to two. The Giants just lost a wide receiver and 0:10:26.800 --> 0:10:29.560 got one back. Colin Johnson look good in the two 0:10:29.640 --> 0:10:31.839 preseason games. He had eleven catchers, but he just tore 0:10:31.880 --> 0:10:35.640 his achilles in practice, just as Sterling Shepherd, entering his 0:10:35.760 --> 0:10:38.440 seventh season with the Giants, made his first appearance at 0:10:38.480 --> 0:10:42.000 practice back from his achilles injury suffered late last season. 0:10:42.040 --> 0:10:45.319 Giants and Jets had their annual preseason games Sunday afternoon, 0:10:45.720 --> 0:10:48.480 had MetLife. NFL Hall of Famer Lynn Dawson has died 0:10:48.520 --> 0:10:51.680 at eight seven, quarterback Kansas City to an upset winning 0:10:51.760 --> 0:10:55.640 Super Bowl four. PGA Tour. Responding to players leaving for 0:10:55.679 --> 0:10:58.560 the new Live Tour with new policies and initiative, more 0:10:58.679 --> 0:11:01.440 bigger events to commit and from top players to play 0:11:01.480 --> 0:11:04.199 in them, and more prize money at those events, the 0:11:04.240 --> 0:11:07.360 commissioners Jay Monahan, this is a remarkable time for the Tour. 0:11:08.200 --> 0:11:11.960 We have and always will be the ultimate platform for 0:11:12.000 --> 0:11:15.000 a player who wants to compete for the trophies and 0:11:15.040 --> 0:11:18.600 the titles that matter most. To now have our top 0:11:18.640 --> 0:11:22.600 players rally around this organization and commit to a portfolio 0:11:22.640 --> 0:11:25.440 of tournaments like never before. No lack of prize money 0:11:25.480 --> 0:11:27.880 on the line this weekend. At the Seasoning Torch Championship 0:11:27.920 --> 0:11:30.360 that teas opt today in Atlanta, the winner wins eighteen 0:11:30.440 --> 0:11:34.320 million dollars. John Staward Bloomberg Sports Nathan, thank you John 0:11:34.400 --> 0:11:37.640 SMP futures are moving on up up thirty three points 0:11:37.720 --> 0:11:39.640 right now. Death Future is up a hundred eighty four 0:11:39.720 --> 0:11:42.839 Nasdack futures on the rise by a hundred twenty points ten. 0:11:42.920 --> 0:11:45.920 Your treasury is up six thirty seconds. The yield close 0:11:46.000 --> 0:11:48.560 to three point zero eight percent. Yield on the two 0:11:48.640 --> 0:11:51.920 year three point three five percent. Some big moves in 0:11:52.120 --> 0:11:56.080 stocks and treasuries ahead of the Jackson Whole Symposium kicking 0:11:56.080 --> 0:11:59.840 off later this morning. We get a preview next with Jennifer, 0:12:00.040 --> 0:12:04.560 the senior economists at BEMO Capital Markets. This is Bloomberg 0:12:07.360 --> 0:12:10.360 flo three oh weather, sunny near ninety today, opper eighties 0:12:10.400 --> 0:12:13.520 tomorrow with a chance for a light day shower, a thunderstorm, sunshine, 0:12:13.520 --> 0:12:15.800 opper eighties for Saturday will be in the mid eighties 0:12:15.840 --> 0:12:22.600 by Sunday. Right now seventy four degrees in Central Park markets. 0:12:22.720 --> 0:12:25.760 Headlines and breaking news twenty four hours a day at 0:12:25.800 --> 0:12:29.199 Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg 0:12:29.280 --> 0:12:38.400 Quick Take. This is a Bloomberg Business lash and I'm Karen. 0:12:38.480 --> 0:12:42.080 Moscow songs are rising as China's massive stimulus and better 0:12:42.120 --> 0:12:45.440 than expected economic data from Germany steady. Some nerves in 0:12:45.440 --> 0:12:48.040 the anxious way for a key speech by Federal Reserve 0:12:48.120 --> 0:12:50.960 Chair your own Powell. Treasury yields in the dollar gage 0:12:51.040 --> 0:12:53.400 or dipping. We checked the markets every fifteen minutes throughout 0:12:53.400 --> 0:12:56.679 the trading day. On Bloomberg, SNP futures up twenty nine 0:12:56.720 --> 0:12:59.400 points down futures have a hundred fifty eight and nasday 0:12:59.480 --> 0:13:02.760 futures have one the decks in Germany's up four tenths 0:13:02.760 --> 0:13:05.320 of upper cent, the ten year treasury up seven thirty seconds. 0:13:05.320 --> 0:13:07.800 He'll three point oh seven percent, yield on the two 0:13:07.880 --> 0:13:11.120 year three point three four percent. Nine max screwed oil 0:13:11.240 --> 0:13:12.920 is up a quarter per cent or twenty six cents, 0:13:12.920 --> 0:13:16.160 and nine fifteen cents of barrel comex called up nine 0:13:16.160 --> 0:13:18.679 tenths per cent or fifteen dollars fifty cents is seventeen 0:13:18.760 --> 0:13:22.400 seventy seven. Announced the euro one point zero zero zero 0:13:22.600 --> 0:13:25.480 nine against the dollar, British pound one five four and 0:13:25.520 --> 0:13:28.400 the yen one thirty six point four two and bitcoin 0:13:28.520 --> 0:13:30.640 this morning lower down a tenth of a percent at 0:13:30.640 --> 0:13:33.920 twenty one thousand, six hundred sixty dollars. That's a Bloomberg 0:13:33.920 --> 0:13:36.400 business flash. Now here's Michael Barr with more on what's 0:13:36.400 --> 0:13:39.200 going on around the world. Muchel, Good morning, Good morning, Karen. 0:13:39.320 --> 0:13:42.840 Reaction to President Biden's announcement of ten thousand dollars in 0:13:42.880 --> 0:13:47.360 student loan forgiveness. Some expected more debt cancelation. Others called 0:13:47.400 --> 0:13:51.200 it another handout adding to the country's deficit woes. Sent 0:13:51.320 --> 0:13:53.400 it to Mitch McConnell called it a slap of the 0:13:53.440 --> 0:13:57.080 face to every family who sacrifice to save for college, 0:13:57.080 --> 0:14:00.600 every graduate who paid their debt. Russian this will strike 0:14:00.679 --> 0:14:03.320 in Ukraine killed at least twenty two people on the 0:14:03.440 --> 0:14:06.240 day that the nation was celebrating thirty one years of 0:14:06.280 --> 0:14:09.680 independence from the old Soviet Union. In baseball, the Red 0:14:09.720 --> 0:14:13.680 Sox and Orioles lost the Nationals, one, the A's beat 0:14:13.720 --> 0:14:16.960 the Marlins in ten innings, three to the Giants lost. 0:14:17.240 --> 0:14:20.000 Global news twenty four hours a day on air and 0:14:20.200 --> 0:14:23.200 on Bloomberg Quick Take, powered by more than twenty seven 0:14:23.280 --> 0:14:25.960 hundred journalists and analysts more than a hundred twenty countries. 0:14:26.240 --> 0:14:29.640 Michael Barrn, This is Bloomberg. Nathan alright, Michael, thank you. 0:14:29.680 --> 0:14:31.840 It is five nineteen on Wall Street Life from the 0:14:31.880 --> 0:14:36.960 Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak on Thursday, August, 0:14:37.640 --> 0:14:41.000 day one of the Jackson Whole Economic Symposium. It is 0:14:41.040 --> 0:14:43.560 finally upon us. It's got a preview now. Jennifer Lee 0:14:43.640 --> 0:14:47.240 joins as senior economist at BMO Capital Markets. Jen it's 0:14:47.280 --> 0:14:49.240 great to speak with you this morning. We've been sort 0:14:49.280 --> 0:14:53.120 of counting down the days until the kickoff of this 0:14:53.320 --> 0:14:56.000 Federal Reserve event. I'm trying to think back to whether 0:14:56.040 --> 0:14:59.360 there's been this much anticipation for a Jackson Hole. Has there? 0:15:00.240 --> 0:15:03.480 I think there is always uh, this this event is 0:15:03.600 --> 0:15:06.520 always highly anticipated to you know that something will happen 0:15:07.160 --> 0:15:10.400 um this year. You know, I think I might be wrong. 0:15:10.440 --> 0:15:12.960 You know I've happened before, but you know, I don't 0:15:13.080 --> 0:15:15.720 know how he can change his tone too much from 0:15:15.720 --> 0:15:18.640 what he has already been saying. Um. You know in 0:15:18.880 --> 0:15:20.880 the past few months. You know, I think there's so 0:15:20.960 --> 0:15:23.160 so much debate right now about how devinsh she could 0:15:23.160 --> 0:15:25.040 possibly be, and at the same time it's also to 0:15:25.040 --> 0:15:26.760 be about how Hawk and she could be. So you know, 0:15:26.800 --> 0:15:29.560 it's it's basically playing both sides right now. I think 0:15:29.600 --> 0:15:33.720 he's going to say, um, say on the Hawk is track. 0:15:33.880 --> 0:15:37.160 I don't know why he would change his tone so quickly. Yes, 0:15:37.200 --> 0:15:41.080 we've had some weaker you know, economic um data, especially 0:15:41.160 --> 0:15:44.000 on the housing front. We finally saw some pullback on 0:15:44.080 --> 0:15:46.440 the headline inflation. But you know it's going to be far, 0:15:46.520 --> 0:15:49.840 far too soon to ring the Dovish spell. Well, what 0:15:50.040 --> 0:15:52.600 do you think the FED needs to see to ring 0:15:52.640 --> 0:15:55.560 that dovish Belgian? I think it has to be a 0:15:55.600 --> 0:15:57.640 few months, at least a few months, you know, like 0:15:57.680 --> 0:16:00.520 the one of the quotes that there is that officials 0:16:00.520 --> 0:16:03.960 have been saying, you know, it's um need more compelling evidence. Um. 0:16:04.040 --> 0:16:07.000 Someone said last week it's way too soon to ring 0:16:07.080 --> 0:16:09.440 the victory bell or to do a victory dance. You know, 0:16:09.480 --> 0:16:11.840 you need to see at least a few months of 0:16:11.920 --> 0:16:15.560 cooler economic or cooler inflation readings for sure, not just 0:16:15.600 --> 0:16:17.800 on the headline, but on and but on the core 0:16:17.840 --> 0:16:20.520 reading as well. You know the fact that energy prices 0:16:20.560 --> 0:16:23.840 have pulled back, you know, um, maybe not this morning, 0:16:23.880 --> 0:16:25.400 but you know we're now we're funning back below a 0:16:25.440 --> 0:16:28.120 hundred dollars. I think it is important that as all 0:16:28.120 --> 0:16:30.640 as they stay down there, that will certainly help. But 0:16:30.760 --> 0:16:33.360 again you're gonna have to see um at least a 0:16:33.360 --> 0:16:37.560 few months at least of cooler cool inflation readings UM 0:16:37.680 --> 0:16:39.360 before and of course, you know, more pulled back on 0:16:39.400 --> 0:16:42.200 the consumer spending front before they can you know, UM 0:16:42.280 --> 0:16:44.480 following breathe a little bit easier and when I say, 0:16:44.560 --> 0:16:47.760 becoming a little bit you know, UM less pulling back, 0:16:47.840 --> 0:16:50.080 you know, instead of doing seventy five basis point rate heights, 0:16:50.360 --> 0:16:53.360 you know, seeing more um UM smaller numbers, like smaller 0:16:53.360 --> 0:16:55.920 increases like fifties. So we're looking for two more rate 0:16:56.000 --> 0:16:58.800 hikes this year, UM sorry, at the next two meetings, 0:16:58.840 --> 0:17:01.520 fifty basis points each and then capping it off with 0:17:01.520 --> 0:17:05.840 a point in December. Since you brought up energy prices, 0:17:05.880 --> 0:17:08.119 that's one of those factors that the FED doesn't have 0:17:08.160 --> 0:17:09.960 a whole lot of control over when it comes to 0:17:10.040 --> 0:17:12.920 raining in inflation. Do you expect any kind of commentary 0:17:13.200 --> 0:17:16.679 on what the FED can do as far as getting 0:17:16.680 --> 0:17:21.960 a handle on inflation outside the core they he's going 0:17:22.000 --> 0:17:23.880 to say that, you know that. You know that volunteer 0:17:23.880 --> 0:17:26.520 policy can only affect the demand side by in terms 0:17:26.560 --> 0:17:29.520 of the energy front, especially given you know what the 0:17:29.680 --> 0:17:33.520 the ongoing um, the battle in you know, in Russia 0:17:33.560 --> 0:17:35.600 and Ukraine. There's not much, as these point out, that 0:17:35.680 --> 0:17:39.040 he can do. But when it does fall, um, it 0:17:39.119 --> 0:17:42.959 does have um reverberating effects I guess on other areas. 0:17:43.080 --> 0:17:46.719 You know, gasoline prices will feel the positive impact from that, 0:17:46.760 --> 0:17:49.439 and that will ultimately help consumer spending as well, So 0:17:49.480 --> 0:17:51.480 that helps saften the blow. So at least, you know, 0:17:51.520 --> 0:17:53.280 we can't have it both ways. We can't say that 0:17:53.359 --> 0:17:55.080 they're going to be pulling back and becoming a little 0:17:55.080 --> 0:17:57.480 bit more dublish. But at the same time worried, worry 0:17:57.520 --> 0:18:00.760 about recession. I mean, he has to um, you know, 0:18:00.800 --> 0:18:03.560 we the fact that energe prices are coming down will 0:18:03.600 --> 0:18:07.320 help again, you know, consumers, consumer pockets, consumers spending, and 0:18:07.359 --> 0:18:09.760 that will helps off of the blow for the economy itself. 0:18:09.760 --> 0:18:12.800 So we won't see that big hard recession that summer 0:18:12.840 --> 0:18:16.399 calling for ahead of the symposium getting under way here, 0:18:16.440 --> 0:18:18.600 we've seen some pretty big moves in the stock and 0:18:18.680 --> 0:18:21.840 particularly the bond markets. How could that potentially affect what 0:18:21.920 --> 0:18:25.120 we here this week? Um, you know this is going 0:18:25.400 --> 0:18:27.280 this is the ongoing of all atility that we continue 0:18:27.280 --> 0:18:29.480 to see when you know, when we see uh, you know, 0:18:29.560 --> 0:18:32.240 weaker weaker data for example from the housing front, stronger 0:18:32.320 --> 0:18:35.320 data from from generable goods orders for example yesterday. So 0:18:35.359 --> 0:18:37.000 I think he's going to sort of look past all 0:18:37.000 --> 0:18:40.080 these wiggles you know, with uh, with with with with 0:18:40.080 --> 0:18:42.760 with both stocks and bonds and continue to focus on 0:18:43.160 --> 0:18:46.480 the funtlemental data and again continue to look for weaker 0:18:46.960 --> 0:18:51.359 or weaker demand and subsequently softer inflation readings. In our 0:18:51.440 --> 0:18:53.520 last thirty seconds here, Jen, just to put you on 0:18:53.560 --> 0:18:55.080 the spot a little bit, how long do you think 0:18:55.080 --> 0:18:57.760 it's gonna take for the FED to get down to 0:18:57.840 --> 0:19:02.080 the two percent inflation target? Oh? That is going to take. 0:19:02.119 --> 0:19:04.240 I think it's going to take some time. Um, you know, 0:19:04.280 --> 0:19:06.639 we still have we're still you know, we we've actually 0:19:06.720 --> 0:19:09.480 been trimming our inflation forecast a little bit over the 0:19:09.480 --> 0:19:11.120 past couple of weeks. It was something we haven't done 0:19:11.280 --> 0:19:13.199 in quite a while, but we're looking for, you know, 0:19:13.240 --> 0:19:18.240 around three ish UM inflation by the end of three 0:19:18.560 --> 0:19:21.680 so probably you know, story before we start seeing um, 0:19:21.840 --> 0:19:24.919 something that's closer to target on the inflation front. Thanks 0:19:24.920 --> 0:19:26.880 for this, Jen, great having you on with us this morning. 0:19:26.960 --> 0:19:30.600 Jennifer Lee, senior economists at BMO Capital Markets. Ahead of 0:19:30.640 --> 0:19:33.919 the Jackson Whole Symposium kicking off later on this morning, 0:19:34.000 --> 0:19:36.439 and of course FED Chairman Pale speech tomorrow at ten 0:19:36.520 --> 0:19:38.800 am Wall Street Time. We're gonna have full coverage of 0:19:38.880 --> 0:19:42.439 Jackson all for you, starting with Bloomberg Surveillance, a special 0:19:42.600 --> 0:19:46.639 edition from Jackson Hole Wyoming with Tom Keene, Jonathan Faroll, 0:19:46.680 --> 0:19:49.160 and Lisa rom Woods, kicking off right here on Bloomberg 0:19:49.240 --> 0:19:52.600 Radio and on Bloomberg Television just after this show at 0:19:52.640 --> 0:19:55.920 seven am Wall Street Time. SFP futures ahead of all 0:19:55.960 --> 0:19:58.439 that up twenty seven point, Staff futures up a hundred 0:19:58.440 --> 0:20:02.280 fifty NASTAC futures are higher by nineties seven points. This 0:20:02.960 --> 0:20:09.040 is Bloomberg Bloomberg eleven three oh weather. Sunny in your 0:20:09.119 --> 0:20:11.720 ninety today, probably mostly sunny tomorrow, with a chance for 0:20:11.800 --> 0:20:14.560 late day shower thunderstorm highs in the upper eighties will 0:20:14.560 --> 0:20:16.760 be in the mid eighties to around ninety all weekend long. 0:20:16.960 --> 0:20:23.639 Right now sevent in Central Park, broadcasting live from the 0:20:23.760 --> 0:20:27.720 Bloomberg Interactive Broker Studio in New York. Bloomberg E Loving 0:20:27.800 --> 0:20:32.360 Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one 0:20:32.400 --> 0:20:35.600 oh six one to San Francisco, Bloomberg nine sixty to 0:20:35.640 --> 0:20:38.719 the Country, Sirius XM to A one nine, and around 0:20:38.760 --> 0:20:42.719 the globe the Bloomberg Business app and Bloomberg Radio dot Com. 0:20:42.720 --> 0:20:51.720 This is Bloomberg Daybreak. It's five thirty on Wall Street. 0:20:51.720 --> 0:20:54.480 Good morning, I'm Nathan Hager and I'm Karen Moscow. We 0:20:54.560 --> 0:20:56.720 are just about four hours away from the open of 0:20:56.800 --> 0:20:58.480 US trading. Let's get you up to date on the 0:20:58.480 --> 0:21:00.359 news you need to know at this shower. It's the 0:21:00.400 --> 0:21:03.440 event Wall Street has been waiting for the Federal Reserves 0:21:03.480 --> 0:21:08.280 Annual Jackson Hole Economic Symposium, kicking off today. Bloomberg's Lisa 0:21:08.280 --> 0:21:11.600 Abramowitz is covering it for us in Jackson Hole. Join 0:21:11.760 --> 0:21:14.960 us at a monumental Jackson Hole Symposium hosted by the 0:21:15.000 --> 0:21:17.440 Kansas City Federal Reserve. This is going to be one 0:21:17.440 --> 0:21:20.760 of the most consequential meetings of FED officials as they 0:21:20.760 --> 0:21:24.480 digest some of the changes facing the economy, facing inflation, 0:21:24.640 --> 0:21:27.439 facing monetary policy as we know it. Some of the 0:21:27.440 --> 0:21:30.840 big questions j Powell will be addressing include where is 0:21:30.880 --> 0:21:33.920