Speaker 1: Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg
Speaker 1: day Break for Friday, August nine two. Coming up this hour,
Speaker 1: Beneficials sent mixed signals on September rate heights. A new
Speaker 1: survey finds companies across the country are preparing for layoffs
Speaker 1: at Amazon reportedly scrapping its COVID leave policy. And we
Speaker 1: get more earnings today with John Deere set to record.
Speaker 1: New York City cracks down on the band in outdoor
Speaker 1: dining sheds. Plus the UN calls any military action at
Speaker 1: a Ukrainian nuclear power plants suicide. I'm Michael Blogger. More ahead,
Speaker 1: I'm John stad Shower and sports. The Yankees suffer at
Speaker 1: a one sided loss to the Blue Jays. The Braves
Speaker 1: beat Jacob de gramin the Mets. That's all s training
Speaker 1: ahead on Bloomberg day Break on Bloomberg eleven three on
Speaker 1: New York, Bloomberg on Washington, d C, Bloomberg one oh
Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Syrius x
Speaker 1: M one nineteen and around the world on Bloomberg Radio
Speaker 1: dot Com and via the Bloomberg Business App. Good morning,
Speaker 1: I'm John Tucker and I'm Karen Moscow and US DOT
Speaker 1: Index futures are lower this morning. We're coming up to
Speaker 1: five oh one on Wall Street, and we check the
Speaker 1: markets every fifteen minutes throughout the trading day. On Bloomberg
Speaker 1: right now, SNP futures are down thirty two points, in
Speaker 1: DOWN futures down a hundred ninety four and NASDACK futures
Speaker 1: down one twenty seven. The decks same. Germany is down
Speaker 1: eight tenth seven percent, ten year treasury down eleven thirty seconds,
Speaker 1: YE two point nine and two percent, and they yield
Speaker 1: on the two year three point to four per cent,
Speaker 1: and Nimex Screwed oil is down one three percent, down
Speaker 1: a dollar twenty two at eighty nine dollars twenty eight
Speaker 1: cents of barrel. John and Karen markets this morning. Reacting
Speaker 1: to mix signals from Fed officials. St. Louis FED Governor
Speaker 1: Jim Bullard is leaning hawk ish, urging a seventy bases
Speaker 1: point move in September, while the Kansas City's Esther George
Speaker 1: is sounding more cautious. San Francisco's Mary Daily is open
Speaker 1: to fifty or have any five basis points and many
Speaker 1: Appolis chief Neil Cush Kari says the Central Bank remains
Speaker 1: laser focused on combating inflation. Good question right now is
Speaker 1: can we bring inflation down without triggering a recession? And
Speaker 1: my answer that question is I don't know. Neil cash
Speaker 1: carry making the comments a day after the release of
Speaker 1: July's Fed Minutes, where showed officials wing exactly when to
Speaker 1: slow the pace of rate hikes, lowering inflation and avoiding
Speaker 1: a recession as the best case scenario for the Federal Reserve.
Speaker 1: John with prices already read hot, Former FED Governor Randy
Speaker 1: Krosner said the Central Bank will be lucky to meet
Speaker 1: their inflation target. It's very difficult to know exactly where
Speaker 1: you are because, as I said, the data always coming
Speaker 1: with a lag, and there could be a lot of
Speaker 1: shocks that come in. So I'm sure they're not going
Speaker 1: to get it exactly right. I think if they're going
Speaker 1: to make a mistake, it's going to be on tightening
Speaker 1: a little bit too much. And former Fed Governor Randy
Speaker 1: Krosner made the comments on Bloomberry's Balance of Power. Catch
Speaker 1: the program Weak It is at noon Eastern on Bloomberg
Speaker 1: Radio and Television. Let's look at the action overseas stocks
Speaker 1: in the Asia fell over nine to post a weekly decline.
Speaker 1: China growth concerns continued to weigh on sediment Bloomberge Juliet
Speaker 1: Sally joins us from Singapore with the latest Good morning, Juliet,
Speaker 1: Good morning John and Karena. Jump in Chinese textures and
Speaker 1: energy stocks helped cap deeper losses on the regional benchmark index.
Speaker 1: Nickel stocks in the region rose after Indonesia, the world's
Speaker 1: biggest producer of the commodity, told Bloomberg it plans to
Speaker 1: impose attacks on exports this year. Investors now look ahead
Speaker 1: to the Jackson Wholesomposium and close at a Home are
Speaker 1: likely cut by Chinese lenders to the loan prime rate
Speaker 1: concerns about China's slowing economy sending the MSCI Asia Pacific
Speaker 1: Index down for the week. In Singapore, Juliet Sale Bloomberg daybreak.
Speaker 1: All right, Juliet, thank you. Now taking a look at
Speaker 1: oil prices are slumping this morning. Nix screwed oil is
Speaker 1: down one in a third percent on a dollar twenty
Speaker 1: two with at eighty nine dollars twenty eight cents of
Speaker 1: barrel oil is on track for a weekly loss with
Speaker 1: lingering concerns over an economic slowdown. Crewed has now given
Speaker 1: up all gains that followed Russia's invasion of Ukraine. Most
Speaker 1: actively traded in the pre market this morning, shares of
Speaker 1: bed Bathroom Beyond down forty one cent. This move comes
Speaker 1: after activist investor Ryan Cohen, extended excited, exited his entire
Speaker 1: stake in the company. Cohen pocket at sixty eight million
Speaker 1: dollars in profits after holding Bad Bathroom Beyond shares for
Speaker 1: seven months. It's setting up a repeat of other meme
Speaker 1: stock moments, with the price drop for retail investors who
Speaker 1: relate to the trade being just as dramatic as its ascent.
Speaker 1: But we take a look at the labor market now,
Speaker 1: John A new survey from p w C is painting
Speaker 1: a bleak picture. It says layoffs are in the works
Speaker 1: at half of US companies, and Bloomberg Charlie Pellett has
Speaker 1: that story. Last month, PwC pulled more than seven d
Speaker 1: US executives and board members across a range of industries.
Speaker 1: Half of respondents said they are reducing headcount or plan too,
Speaker 1: and fifty two percent of implemented hiring freeze is more
Speaker 1: than four in ten are rescinding job offers, and a
Speaker 1: similar amount are reducing or eliminating the sign on bonuses
Speaker 1: that have become common to attract talent in a tight
Speaker 1: job market in New York. Charlie Pea Bloomberg Daybreak, Charlie,
Speaker 1: thanks turning to the pandemic. Now we're seeing more signs
Speaker 1: that corporate America is turning away from prior policies. Days
Speaker 1: after the CDC shifted its COVID quarantine guidance, Amazon reportedly
Speaker 1: scrapping its COVID leaf policy. Bloomberus Rinida Young joins US
Speaker 1: Live with that story. Good morning Rnita, Good morning John.
Speaker 1: The two weeks of paid lead for COVID nineteen cases
Speaker 1: that Amazon offered employees is now gone. Amazon is returning
Speaker 1: to standard sick leaf policies beginning today, and an internal
Speaker 1: memo published by Business Insider shows the company is also
Speaker 1: scrapping contact tracing across much of its network of warehouses.
Speaker 1: Now this could affect hundreds of thousands of employees at Amazon.
Speaker 1: It applies to all US employees except for those living
Speaker 1: in California, New York, Colorado, and Philadelphia. Live in New York.
Speaker 1: I'm really need a young Bloomberg, daybreak. I re need
Speaker 1: to thank you all. Earning season is winding down, but
Speaker 1: we get one more report of note this morning. Firming
Speaker 1: machinery maker deer Or publishes results shortly. Bloomberg Intelligence says
Speaker 1: higher production and supply chain easing should support accelerated growth
Speaker 1: the company. And finally, let's talk politics. The legal troubles
Speaker 1: circling former President Trump now. The judge of the Mara
Speaker 1: Longo FBI search warrant hearing is indicating he'd like to
Speaker 1: unseal at least parts of the search warrant at the
Speaker 1: heart of the search. Bloomberg's ad Baxter has details. The
Speaker 1: judges ordered the dj back to court next week with
Speaker 1: suggested redactions. One of the attorneys for media group seeking
Speaker 1: the release of the document, Diana Shulman, says she feels
Speaker 1: good about the hearing. He understands that the public is
Speaker 1: going to likely be entitled to some parts of this
Speaker 1: warrants application and its affidavit. So the next hearing is
Speaker 1: next Thursday, and it seems most likely scenario oh is
Speaker 1: that something will be released in very heavily redacted form
Speaker 1: in San Francisco. I'm at Baxter Bloomberg day Break, All right,
Speaker 1: thanks ahead of the cash showupen on Wall Street. Down
Speaker 1: futures one points, lower HANDSMP Evening futures down thirty two
Speaker 1: and the Nasdack futures down one hundred twenty six points.
Speaker 1: This is Bloomberg Day break That for insis to five
Speaker 1: oh seven on Wall Street. Time to bring in Michael
Speaker 1: Barr with more on what else is going on to
Speaker 1: New York and around the world. John, thank you very much, sir.
Speaker 1: New York City Mayor Eric Adams says, while outdoor dining
Speaker 1: is here to stay in the city, will remove abandoned
Speaker 1: dining sheds. Adams says that abandoned or dangerous outdoor dining
Speaker 1: structures must be torn down quickly. When a dining shed
Speaker 1: is no longer in use, and if it's abandoned, it's
Speaker 1: a safety has it, we have to turn it tear
Speaker 1: it down. It can't be a safe haven for rats,
Speaker 1: it can't be a safe haven for illegal behavior. It
Speaker 1: has to be a place to allow people to enjoy dyning,
Speaker 1: Mayor Anams. The United Nations is urging Russia to stand
Speaker 1: down and not proceed with its mission to carry out
Speaker 1: military action at a nuclear power plant in Ukraine. Secretary
Speaker 1: General Antonio Guterres adjusted any action there would be, in
Speaker 1: his words, suicide policess must be any actions that Mican
Speaker 1: they had safety, r S, unity and Lucian plants, and
Speaker 1: must not be used the spot of any need fed inferation.
Speaker 1: UN Secretary General Guterres repeatedly urged for the plan to
Speaker 1: be demilitarized. A former top executive of the Trump organization
Speaker 1: has pleaded guilty to tax evasion. Alan Weislberg's guilty plea
Speaker 1: as part of a larger deal to testify against former
Speaker 1: President Trump's real estate company. Weislberg will served five months
Speaker 1: in jail and pay nearly two million dollars and taxes,
Speaker 1: penalties and interest. The number of migrants apprehended entering the U.
Speaker 1: S Coad hit a record two million this year, and
Speaker 1: the air release to await processing as Texas government of
Speaker 1: Greg Abbott sending bus loads of them to Washington, d C.
Speaker 1: And New York City. The bus load of migrants is
Speaker 1: expected soon in New York City. Climate change is being
Speaker 1: considered a factor in the recent return of a brain
Speaker 1: eating amba, often found in freshwater sources, that's being linked
Speaker 1: to the death of the child in eastern Nebraska. It
Speaker 1: is the second such probable death in the Midwest this summer,
Speaker 1: with another incident suspected in Missouri last month. In Nebraska,
Speaker 1: Douglas County Health Director Dr Lindsay Hughes and just being
Speaker 1: mindful of your exposure and freshwater sources. We are urging
Speaker 1: the public to simply be aware and to take precautions
Speaker 1: when they are being exposed to any warm freshwater sources
Speaker 1: out in public so lakes, streams, ponds. Dr Hugh says,
Speaker 1: though the illness is rare. Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake power by
Speaker 1: more than seven hundred journalists analysts more than a hundred
Speaker 1: twenty countries. I'm like of bar this is Bloomberg. John
Speaker 1: all right, Michael, thank you, and it brings us to
Speaker 1: five on Wall Street Time down for the Bloomberg Sports
Speaker 1: up tape and good morning John Staff. All right, Good
Speaker 1: morning John. The Medicine Braise just played nine games in
Speaker 1: fifteen days. The Mets one four or five in New York.
Speaker 1: The Braves won three or four in Atlanta. They beat
Speaker 1: Jacob mc graham storing in the seventh in Name for
Speaker 1: a three two victory that gets them back to three
Speaker 1: and a half games behind the Mets in the n
Speaker 1: L as the Yankee lead a l east to helping
Speaker 1: nine games, but at the stadium the night after that
Speaker 1: dramatic en and he went over to Tampa Bay. Toronto
Speaker 1: got the new Yanks starter Frankie Montess with a five
Speaker 1: runs second in name and include a three run homber
Speaker 1: by Vladimir Guerrero Junior. Blue Jays went on to win
Speaker 1: nine to two. George Bringer had four hits with the
Speaker 1: Jays Montes and three starts with the Yanks. Has pitched
Speaker 1: fourteen innings and has allowed fourteen runs. The guy he
Speaker 1: replaced in the Yankee rotation, Jordan Montgomery, now of St. Louis,
Speaker 1: has made three starts with the Cardinals and in seventeen
Speaker 1: meanings he's given up one run. Speaking of the Cardinals,
Speaker 1: they beat Colorado thirteen and nothing. That Finch had grand
Speaker 1: slam for forty two year old Albert Poohle's career home
Speaker 1: run number six ninety. If big NFL story resolution and
Speaker 1: how long does Shawn Watson's suspension will be, NFL wanted
Speaker 1: it longer than the six games originally ruled by an
Speaker 1: arbitrat of the two sides settled on eleven games, a
Speaker 1: record fine of five million. Watson apologized but did not
Speaker 1: admit to committing any sexual in this conduct. I'm moving
Speaker 1: over my cer in my life and I'll continue to
Speaker 1: stand on my innocence. Just because you know, settlements and
Speaker 1: things like that happened, doesn't mean that a person is
Speaker 1: is guency for anything. I feel like person has an
Speaker 1: opportunity to stand on his innocence and proved that, and
Speaker 1: we proved that on the legal side, and we're just
Speaker 1: gonna continue to push forward as an individual as a person.
Speaker 1: Watson's first game with this new team Cleveland will be
Speaker 1: Week thirteen against his old team Houston. John Stash Edward
Speaker 1: Blue Work Sports John, all right, thanks John, ahead of
Speaker 1: the cat show up. All of Walstreet futures in the
Speaker 1: red right now down futures down two hundred eight points,
Speaker 1: the sub me eat many futures thirty four points slower,
Speaker 1: and the NASTAC futures are down one hundred deep points
Speaker 1: almost one percent. You're listening to Bloomberg day Break, and
Speaker 1: just ahead we'll get you set up for the trading day.
Speaker 1: We'll be joined by Kitchuks, the chief fex strategist at
Speaker 1: Society General. You're listening to Bloomberg Markets headlines and breaking
Speaker 1: news twenty four hours a day at Bloomberg dot Com,
Speaker 1: to Bloomberg Business at and at Bloomberg Quicktake, this is
Speaker 1: a Bloomberg Business lash and I'm Karen Moscow. US Knock
Speaker 1: Index futures are falling this morning along with treasuries after
Speaker 1: a chorus of Federal Reserve officials reiterated they're resolved to
Speaker 1: continue rate hikes. We checked the markets every fifteen minutes
Speaker 1: throughout the trading day on Bloomberg s and P futures
Speaker 1: down thirty points this morning. Down features down a hundred
Speaker 1: seventy eight NASDACK futures down a hundred sixteen. The decks
Speaker 1: in Germany's down seven tenths of upper set ten. Your
Speaker 1: treasury down eleven thirty seconds, held two point nine two percent.
Speaker 1: They yield on the two year three point to four
Speaker 1: per cent. N Max Screwed oil is down one per
Speaker 1: cent or ninety one cents at eighty nine dollars, fifty
Speaker 1: nine cents of Arrol Comic School down a quarter per
Speaker 1: cent or four dollars is seventeen sixty seven twenty announced
Speaker 1: the euro one point zero zero eight five against the dollar,
Speaker 1: British found one point eight one and again one thirty
Speaker 1: six point five too. And Bitcoin this morning down more
Speaker 1: than seven percent at twenty one thousand, seven hundred dollars.
Speaker 1: And today we get earnings from during company. And that's
Speaker 1: a Bloomberg business flash. Now here's Michael Barr with more
Speaker 1: and what's going on around the world. Munchacle, Good morning,
Speaker 1: Good morning, Karen. A federal judge has ordered the Justice
Speaker 1: Department to put forward proposed redactions as he committed to
Speaker 1: making public at least part of the affidavit supporting the
Speaker 1: search warrant for former President Trump's estate in Florida. The
Speaker 1: judge gave prosecutors a week to submit a copy of
Speaker 1: the affidavit. After being accused by more than two dozen
Speaker 1: women of sexual misconduct, Evelon Brown's quarterback to Shaun Wants
Speaker 1: it will now serve in eleven games suspension and pay
Speaker 1: a five million dollar fine. In baseball, the Yankees and
Speaker 1: Mets lost the Red Sox, Orioles and Giants also lost
Speaker 1: the Nationals. One Global News twenty four hours a day
Speaker 1: on air and on Bloomberg Quicktake, powered by more than journalists,
Speaker 1: analysts more than a hundred twenty countries. Michael barn this
Speaker 1: is Bloomberg, John Michael, thank you, five twenty on Well Street.
Speaker 1: We are live for the Bloomberg Interact and Brokers Studios.
Speaker 1: This is Bloomberg Daybreak. Well you heard Karen Federal Reserve
Speaker 1: of his was reiterating the resolve to continue rate hikes.
Speaker 1: Traders raising tightening wagers for other major central banks around
Speaker 1: the world. Let's try to get you set up for
Speaker 1: the trading day head. We're joined now by Kitchos, chief
Speaker 1: FIC strategist at sock Chen. Um. I gotta start on
Speaker 1: your home turf kit and uh, I'm waiting for a
Speaker 1: plague locust to hit there in the UK. What's the
Speaker 1: path forward for the Bank of England? And uh, fighting inflation?
Speaker 1: Does it? What cost to the UK economy? I think
Speaker 1: the cost is the cost is likely to be severe
Speaker 1: and the danger of the way that we that we
Speaker 1: pay for our energy bills and so for our electricity,
Speaker 1: which is seaxed on on a rolling basis, means that
Speaker 1: we're going to get a cap on energy bills that
Speaker 1: goes up every few months. And the peak is looking
Speaker 1: higher and higher and so so we probably haven't seen
Speaker 1: peak inflation yet by some distance. And that's that's the
Speaker 1: source of massive concern um to everybody in the UK
Speaker 1: economy because obviously has less money for anything else. Um
Speaker 1: For the Bank of England. I think that they're caught
Speaker 1: really because there's a perfectly good argument that you should
Speaker 1: say that if the economy is heading to a recession,
Speaker 1: why bother they going on raising rates? You know that
Speaker 1: will look after the inflation numbers for you in the
Speaker 1: next twelve months and rate rises now affect the economy
Speaker 1: and twelve to eighteen months time by then it will
Speaker 1: be different. But but that that you know, any backing
Speaker 1: down from the red hikes that are priced in, and
Speaker 1: we've got we've got plenty of radar expressing in the
Speaker 1: coming m and we we look as if we're going
Speaker 1: to get to four before the Federal Reserve does just
Speaker 1: weakens the currency, and small open economy or medium sized
Speaker 1: open economy, the week of the currency, the more important
Speaker 1: inflation there is in random around we go in the circle.
Speaker 1: So we are we are left for a central bank
Speaker 1: with Hobson's choice tighten more than they should too late
Speaker 1: in the cycle, because they have to be seen to
Speaker 1: fight inflation really hard, to maintain their credibility, both in
Speaker 1: the foreign exchange market and frankly in front of the press.
Speaker 1: We all saw yesterday in markets how the Central Bank
Speaker 1: of Turkey cut rates in the face of eight percent inflation,
Speaker 1: and the markets treated their currency accordingly. So it's yeah,
Speaker 1: it's not good. I hope we don't get well that
Speaker 1: that's a I would argue, that's a central bank that's
Speaker 1: not anywhere near independent. Back to the UK though, raising rates,
Speaker 1: the sterling is falling, how much farther can it fall? Um? Look,
Speaker 1: I think anything, I don't. I mean, I don't think
Speaker 1: we'll get down to one tan you know, I don't
Speaker 1: think we're going to go back to the to to
Speaker 1: to the worst kind of of those kinds of levels,
Speaker 1: but um levels of my use. But the but I
Speaker 1: think we'll get you somewhere like one fifteen. Is it's
Speaker 1: quite possible you have to overshoot in this process, you know.
Speaker 1: So so it's whatever I thought before, plus a temporary
Speaker 1: overshoot from which you come back. And one fifteen sounds
Speaker 1: like it sounds like a reasonal level. It will make
Speaker 1: London so cheap for you people, Uh yeah, well, King dollar,
Speaker 1: is that going to get dethroned anytime soon? Doesn't look
Speaker 1: like it does it. It's hard, you know, I mean, firstly,
Speaker 1: because the second most important currency in the world is
Speaker 1: still you know, fighting, it's fight against against natural gas
Speaker 1: prices as a result of what's going on in Ukraine.
Speaker 1: And you know, even even if we get all the
Speaker 1: storage up to sevent full in time for winter in Germany,
Speaker 1: that's still two and a half maybe three months of
Speaker 1: storage if things get worse and Russian gas stops flowing.
Speaker 1: And in the meantime, we've pushed up the global price
Speaker 1: of liquid natural gas really dramatically, So we're getting enough
Speaker 1: gas into get three months of extra extra supplies at
Speaker 1: a big economic cost. And that's that's going to you know,
Speaker 1: either either governments take that on as a huge fiscal
Speaker 1: hit or they parted onto consumers as a massive inflation hit.
Speaker 1: So Europe is Europe is still hurt. Let's pivot to
Speaker 1: the US. Is a string of seemingly weak economic data
Speaker 1: can to encourage anything close to a dovish pit pivot
Speaker 1: from the FED. I think the FED suffers the same
Speaker 1: kind of problem as as you know, it's just a
Speaker 1: lesser degree of this credibility problem. If monetary policy works
Speaker 1: with an eighteen months lead, then frankly, Um, they should
Speaker 1: probably pivot more dovishly. But I don't think they can
Speaker 1: do that until all the measures of core underlying inflay
Speaker 1: sans start to behave and the most important one of
Speaker 1: those this wage growth. They need wage growths to top
Speaker 1: out in a more clear fashion than it is before
Speaker 1: they'll have it. My sense is as soon as the
Speaker 1: market talks about the Fed pivoting Davish Lee, Fed officials
Speaker 1: come out to reinforce their credibility. That's a recipe for
Speaker 1: a smaller version of what we have here, where policy
Speaker 1: ends up being tighter than the economy needs it. The
Speaker 1: hasing marketself is more, the economic slowdown is a little
Speaker 1: deeper than it would be Um, and and then we
Speaker 1: go through that cycle. You know, that's the price for
Speaker 1: but for maintaining central bank credibility these days, Okay, Kit,
Speaker 1: You's always a pleasure a chief Fax strategist as society
Speaker 1: general this morning Sterling one eighteen right now down about
Speaker 1: half a percent. Kit also mentioned the year on bets
Speaker 1: almost a parody. It is down right now, just slightly
Speaker 1: against the U. S. Dollar. You are listening to Bloomberg
Speaker 1: Daybreak and Bloomberg Weather for met round just Robb Carolin,
Speaker 1: mostly sully warmed the hind temperature ninety degrees, partly cloudy
Speaker 1: to light lows in the mid seventies. Tomorrow partly sunny,
Speaker 1: maybe a late day shower by eighty five to ninety degrees.
Speaker 1: Broadcasting live from the Bloomberg Interactive Brokery Studio in New York,
Speaker 1: Bloomberg E Living free on to Washington, d C. Bloomberg
Speaker 1: to Boston, Bloomberg one O six one to San Francisco,
Speaker 1: Bloomberg nine six to the country, Sirius XM Chado one
Speaker 1: nine and around the globe the Bloomberg Business and Bloomberg
Speaker 1: Radio dot Com. This is Bloomberg Daybreak. It's five thirty
Speaker 1: on Wall Street. Good morning. I'm John Tucker and I'm
Speaker 1: Karen Moscow. We are just about four hours away from
Speaker 1: the open of US trading. We get you up to
Speaker 1: date on the news you need to know at this
Speaker 1: shower and you. Futures are lower this morning as traders
Speaker 1: react to mixed signals from the Fed. It's unclear exactly
Speaker 1: how big the Central banks next move will be on
Speaker 1: interest rates. St. Louis Fed Governor James Bullard once as
Speaker 1: seventy five basis point move in September. Kansas City's Enter
Speaker 1: George is more conscious. San Francisco's Mary Daily is open
Speaker 1: to fifty or seventy five basis points, and Minneapolis Fed
Speaker 1: Chief Neil cash Curry warrants a recession could be on
Speaker 1: the horizon as we continue to raise rates, as we
Speaker 1: continue to raise costs, sort of speak of borrowing across
Speaker 1: the economy. It should be putting tapping the brakes on
Speaker 1: the US economy, and that makes it more likely that
Speaker 1: we would end up in a recession. Neil cash Curry
Speaker 1: made the comments a day after the release of July's
Speaker 1: FED minutes, which showed officials weighing exactly when to show
Speaker 1: the pace of too slow rather the pace of rate hikes.
Speaker 1: And looking at the labor market, a new p WC
Speaker 1: survey paints a bleak picture on the future of the
Speaker 1: US labor market. The results showed layoffs or in the
Speaker 1: works at about half of US companies despite a tight
Speaker 1: labor market. The more than seven US executives and board
Speaker 1: members polled said they're reducing headcount or planned to and
Speaker 1: over half implemented hiring freezes. I'll taking a look at
Speaker 1: a major market mover. This morning shares a bad bath
Speaker 1: and Beyond down forty one percent. It follows news that
Speaker 1: activist investor Ryan Cohen exited his entire stake in the company.
Speaker 1: He pocketed sixty eight million dollars in profits from the sale,
Speaker 1: and days after the CDC shifted as COVID quarantine guidance,
Speaker 1: Amazon is reportedly removing it's COVID leave policy. Let's get
Speaker 1: more from Bloomberg's Rinita Young, who joins us Live this morning.
Speaker 1: Good morning, Rinita, Good morning John. Two weeks of paid
Speaker 1: lead for Amazon's COVID nineteen cases that Amazon offered employees
Speaker 1: now gone. Amazon is returning to standard sick leaf policies
Speaker 1: beginning today. An internal memo published by Business Insider shows
Speaker 1: the companies also scrapping contact tracing across much of its
Speaker 1: network of warehouses. This affects all you Amazon employees, except
Speaker 1: for those living in California, New York, Colorado, and Philadelphia.
Speaker 1: Live in New York, I'm gonna need to Young Bloomberg
Speaker 1: day break. All right, thanks for Rena, and today we're
Speaker 1: also going to get earnings from Deer and Company and
Speaker 1: ahead of the cash open on Wall Street. Down futures
Speaker 1: right now one nine point slower. That's down six tenths
Speaker 1: of a percent. Smp E Mini futures they're down thirty two,
Speaker 1: down three quarters of a percent, and the Nanzac futures
Speaker 1: right now one one point slower. That's down nine tenths
Speaker 1: of a percent. You're listening to Bloomberg daybreak and that
Speaker 1: brings us to five thirty three on Wall Street, and
Speaker 1: that is time to bring in Michael Barr with more
Speaker 1: on what else is going on to New York hend
Speaker 1: around the world. John, Thank you very much, sir. New
Speaker 1: York City Mayor Eric Adams says a new multi agency
Speaker 1: enforcement initiative will focus on removing a band and outdoor
Speaker 1: dining sheds. Adam says, though outdoor dining is here to
Speaker 1: stay and New York is love dining out, and we
Speaker 1: need to do it in the right way to make
Speaker 1: sure that is safe, clean, and respectable to our neighbors
Speaker 1: and those who live in the communities where we have
Speaker 1: these structures. Mayor Adams made the announcement in front of
Speaker 1: an unused shed in Midtown before taking a sledge hammer
Speaker 1: to help bring the structure down. European intelligence officials say
Speaker 1: Russia is likely using the Zamparezza nuclear power plant in
Speaker 1: southern Ukraine to shield its troops and equipment, undermining the
Speaker 1: safety of the plant's operations. U N Secretary General Antonio
Speaker 1: Guterres repeatedly urged for the plan to be demilitarized. Potential
Speaker 1: suicide gu terrists spoke in Lviv. The former chief financial
Speaker 1: officer of the Trump organization pleaded guilty to not paying
Speaker 1: taxes on almost two million dollars in compensation in the Manhattan,
Speaker 1: New York Court. Alan Weisselberg could be called to town
Speaker 1: to find against the organization as early as this fall.
Speaker 1: Weiselberg will spend five months at Riker's prison in exchange
Speaker 1: for the plea deal. Monkeypox cases continued to climb in
Speaker 1: the US, now topping fourteen thousand. The White House monkey
Speaker 1: pox Response Team announced an additional one point eight million
Speaker 1: vaccine doses will be available starting early next week. The
Speaker 1: head of the World Health Organization's monkey pox response Dr.
Speaker 1: Rosamund Lewis, said it is not clear why the US
Speaker 1: has so many cases. There are other countries in the
Speaker 1: Americas that are also seeing it steep increases in the
Speaker 1: number of cases. Part of that maybe, of course the
Speaker 1: spread of the virus, so another component maybe, of course
Speaker 1: increasing access to testing. The w h S. Dr Lewis
Speaker 1: says the US accounts were about a third of all
Speaker 1: cases worldwide. Global News twenty four hours a day on
Speaker 1: airand on Bloomberg Quick Take, powered by more than twenty
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Speaker 1: Michael bar this is Bloomberg, John Michael, thank you, and
Speaker 1: it's now five thirty six on Wall Street. That's time
Speaker 1: for the Bluebird Sports Update. Good morning John Stashowerd and
Speaker 1: Morning John. Mets lost those first two games in Atlanta,
Speaker 1: but then had the one to punch on the Mount
Speaker 1: Maxers there one hit start, but a rare Jacob Degram
Speaker 1: lost the Braves, a couple of early runs driven in
Speaker 1: by Dan's by Swanson and Austin Riley, Mark Canna a
Speaker 1: game time to run over fifth any but Atlanta Sporting
Speaker 1: in the seventh off to Gram and one three two
Speaker 1: comes down to two pitches um the one uh Dansby
Speaker 1: just a bad slider over over the middle, and then
Speaker 1: the wonder Riley, So um, you know that's those are
Speaker 1: two mistakes I wish I had back, but you know
Speaker 1: they had the life on it, and uh, you know
Speaker 1: it's frustrating, but that is what it is. Leave the
Speaker 1: Braves mat by three and a half. That start a
Speaker 1: four game weekend series tonight in Philadelphia. Then it's the
Speaker 1: Subway series in the Bronx and Surser and de Gram
Speaker 1: will be the Mets starters. And the Yankees even won
Speaker 1: two games in a row since July at the Stadium,
Speaker 1: all Blue Jays nine to two or five run second
Speaker 1: in hey Off. Frankie Mantas's first home start with the
Speaker 1: Yanks did not go well. The lone Yankee bright spot
Speaker 1: the first two major league hits the rookie as Waldo Cabrera.
Speaker 1: Yanks falled three and a half games behind Houston for
Speaker 1: best records in America. Lady Yastro was just one in
Speaker 1: Chicago to five. Week to the NFL preseason has home
Speaker 1: games for the Giants Sunday again Cincinnati and the Jets
Speaker 1: Monday night versus Atlanta. Tom Brady was not with Tampa
Speaker 1: Bay all week and it's not known when he's going
Speaker 1: to return. Bucks coach Todd Bowle said, we'll see. It's
Speaker 1: not known why Brady left the team, but bol said
Speaker 1: he's not concerned. We do now know when Deshaun Watson
Speaker 1: will started pointing for Cleveland week thirteen against his old
Speaker 1: team Houston. Watson's suspension for sexual misconduct was raised from
Speaker 1: the original six games to a mutually agreed to eleven
Speaker 1: book John stash ellis louverg st John. Alright, thanks, Shaan,
Speaker 1: head of the cast Showpen on Wall Street. We have
Speaker 1: right now the Dell futures downed one hundred eighty three points,
Speaker 1: and right now it is five thirty seven. The odd
Speaker 1: spree Bloomberg radios on the air from San Francisco to
Speaker 1: New York, London to Hong Kong. And let's do our
Speaker 1: tri state business reports, and so that here's Ed Quarry.
Speaker 1: Madison Square Garden Entertainment is thinking about a spinoff of
Speaker 1: its arena and theaters along with its cable networks. The
Speaker 1: businesses include Madison Square Garden, Radio, City Music Hall, The
Speaker 1: Beacon in Chicago theaters. It also includes the MSG and
Speaker 1: MSG plus cable networks. Gateway, a series of tunnel and
Speaker 1: bridge projects to improve connections between New York and New
Speaker 1: Jersey is ramping up hiring in order to gain access
Speaker 1: to billions in funding over the next year. It's required
Speaker 1: to show it has sufficient technical staff and controls in
Speaker 1: place in order to be eligible for its next round
Speaker 1: of federal grants. A person close to the project says
Speaker 1: the hiring could run into the dozens. Suffolk County, New York,
Speaker 1: on Long Island had its General Obligation bond rating raised
Speaker 1: two levels by S and P Global. The move comes
Speaker 1: as federal stimulus cash and higher sales tax collections boost
Speaker 1: its finances. That your Bloomberg Try State Business Report. I'm
Speaker 1: Ed Corey. All right, thanks said. It is now five
Speaker 1: thirty eight on Wall Street. Let's check in now with
Speaker 1: our global news Tune for some of the top stories
Speaker 1: heard on our three hundred affiliate radio stations around the world.
Speaker 1: I'm John Donneger telling ten ten Wins listeners. There's talk
Speaker 1: of spinning off the rockets. I'm Gina Servetti and for
Speaker 1: w b b M in Chicago, I'm reporting that Ribbyan
Speaker 1: plans to stop selling it's less expensive version of its
Speaker 1: electric pickup truck. I'm Jeff Golinger and on wtv N
Speaker 1: in Columbus. I'm reporting that Columbus based Express is expanding
Speaker 1: its spinoff chain of Edit clothing shops. I'm klin Heca
Speaker 1: on BlueBag dab Dish Radio in London. We are reporting
Speaker 1: on record low consumer confidence in Britain and retail sales
Speaker 1: that see shoppers pay more to buy less. I'm ed
Speaker 1: Corey on w w J and Detroit Time reporting GM
Speaker 1: and Ford want to deploy a limited number of self
Speaker 1: driving vehicles without steering wheels or brake pedals. It is
Speaker 1: by thirty Died on Wall Street. The following is an
Speaker 1: editorial from Bloomberg Opinion. This sedatorial was written by the
Speaker 1: Bloomberg Editorial Board. Around the world, delays in visa processing
Speaker 1: are preventing countless foreigners from coming to the US. While
Speaker 1: processing times vary greatly from consulate to consulate, the average
Speaker 1: wait for an appointment to obtain a US visitor visa
Speaker 1: is nearly eight months. These delays hurt the US economy,
Speaker 1: sap investment, and undermine America's image. But unlike more politically
Speaker 1: fraught immigration issues, this problem is eminently fixable. The Biden
Speaker 1: administration should intensify its efforts to speed up the visa
Speaker 1: Processing System. The global competition for investment, talent, and influence
Speaker 1: is only going to grow fiercer in coming years. The
Speaker 1: U S should embrace any measures that help it stay
Speaker 1: in the game. This editorial was written by the Bloomberg
Speaker 1: Editorial Board. For more Bloomberg opinion, please go to Bloomberg
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Speaker 1: is Bloomberg Day Break. A Futures this morning point to
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Speaker 1: After a chorus of Federal Reserve officials readit reiterated their
Speaker 1: resolved to continue rate hikes. We checked the markets every
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Speaker 1: Bloomberg business flash. Now here's Michael Barr with more on
Speaker 1: what's going on around the world. Michael Karen, thank you
Speaker 1: very much. A federal magistrate judge is giving the Justice
Speaker 1: Department one week to propose redactions to the half of David,
Speaker 1: which led to the FBI search of President Trump's home
Speaker 1: in maur Longo. The NFL and the Players Association handed
Speaker 1: down in eleven games is spension to Cleveland Brown's quarterback
Speaker 1: to Shaun Watson, he was accused by more than two
Speaker 1: dozen women of sexual misconduct. In baseball, the Yankees and
Speaker 1: Mets lost the Red Sox, Orioles A's and Giants also
Speaker 1: lost the Nationals one and just not a good measure.
Speaker 1: The Astros put at what four and y whipping on
Speaker 1: the White Sox one. Global news twenty four hours a
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Speaker 1: hundred twenty countries. I'm Michael Barr, and this is Bloomberg,
Speaker 1: John Hose Baseball, nut football and they did play football,
Speaker 1: isn't it? Oh? Okay? It is five forty night on
Speaker 1: Wall Street. We are live in the Bloomberg Interactive Broker studios.
Speaker 1: As time now to take a look at some of
Speaker 1: the latest headlines at a d C. Longtime Trump CFO
Speaker 1: Weislberg pleading guilty to tax fraud and the Trump search
Speaker 1: affidavit could be partly unsealed. At least that's according to
Speaker 1: a federal judge. Let's stick a deeper diving into these stories.
Speaker 1: This morning, we're joined by Bloomberg Washington reporter Jack Fitzpatrick.
Speaker 1: Jack factual me with us this morning. What's the next
Speaker 1: step in uh, this trial in New York where the
Speaker 1: CFO for the Trump organization has pleaded guilty and now
Speaker 1: is headed to Rikers Island. Presumably yes, Uh, he is
Speaker 1: headed to Rikers Island. He took the deal that gives
Speaker 1: him a maximum or I guess the standard of five months,
Speaker 1: but with good behavior that could be a hundred days. Uh.
Speaker 1: That's opposed to he faced as much as fifteen years
Speaker 1: for these The next step is part of this plea
Speaker 1: deal is him testifying against the Trump organization. Uh. That
Speaker 1: that that is part of the agreement. Now that is
Speaker 1: not testifying against the former as it in himself. Um.
Speaker 1: But there clearly is another shoe to drop as it
Speaker 1: pertains to these tax broad charges because he took this
Speaker 1: deal uh pleading guilty. Uh to you know, the the
Speaker 1: the issue is essentially a system of unreported payments giving
Speaker 1: people houses and cars and that kind of thing instead
Speaker 1: of reporting their uh, their taxes there the payments that
Speaker 1: they're supposed to pay taxes on. Uh. So there this
Speaker 1: will become a bit more broad as he potentially implicates
Speaker 1: others in the Trump organization as part of that plea deal,
Speaker 1: the Trump organization, the business potentially could be dissolved at
Speaker 1: some point because of all this. Is that correct? Uh?
Speaker 1: That that is I think not out of uh not
Speaker 1: out of the question. Um hard to say exactly how
Speaker 1: this will affect the organization. I mean, you know, the
Speaker 1: the CFO, the long time CFO is not a small
Speaker 1: bit player. Uh and if he is going to testify
Speaker 1: against uh, the organization more broadly in these tax schemes,
Speaker 1: then it's it's hard to even really place a limit
Speaker 1: on the effect on the organization itself. I think the
Speaker 1: the questions we can't answer right now are who else
Speaker 1: specifically does this lead to? But as it pertains to
Speaker 1: the Trump organization on the whole, it's it's very bad
Speaker 1: news for the CFO to take this deal into plan
Speaker 1: to uh cooperate and provide more information about the extent
Speaker 1: of the the tax fraud charges. Yeah, I've lost count
Speaker 1: the number of people in the orbit of Donald Trump
Speaker 1: who who have gone to jail. At this point, let's
Speaker 1: move on to the the search warrant. There's the warrant itself,
Speaker 1: which we know about, and then the affid David surrounding
Speaker 1: two separate things. But what's happening on that front. Yeah,
Speaker 1: so it looks like at least part of the affidavit
Speaker 1: will end up UH coming to the federal judge in
Speaker 1: this case said he is not inclined to to keep
Speaker 1: that affidavit fully sealed. This would be the justification behind
Speaker 1: getting the search warrant to search marl Lago last week. UH.
Speaker 1: This this is in response to a push by several
Speaker 1: media organizations that want to see it. It is typically
Speaker 1: very unusual for this kind of affidavit to be made public,
Speaker 1: but obviously this is these are unusual circumstances. It's extremely
Speaker 1: high profile, it regards a former president. So the the
Speaker 1: judges said that, you know, a partial revealing of the
Speaker 1: information in this affidavit UH is possible. The question then
Speaker 1: is how much does d o J seek to UH
Speaker 1: to keep secret. And if they try to keep essentially
Speaker 1: the whole thing secret, it may be taken out of
Speaker 1: their hands. The judge could make the final decision on
Speaker 1: how much is released, but for now it's up to
Speaker 1: d o J to make a proposal on how much
Speaker 1: of this they want to redact before presumably at least
Speaker 1: some of this would be made public. I expect we're
Speaker 1: going to hear the phrase heavily redacted the association with this.
Speaker 1: Jack a pleasure. Thanks for being with us this morning,
Speaker 1: Bloomberg's Jack Fitzpatrick, Karen Ry John. Thanks. It's fifty three
Speaker 1: on Wall Street Time. Now for the Bloomberg Law Report,
Speaker 1: we get to the legal stories we're watching this morning.
Speaker 1: From Bloomberg's Jeff Bellinger. The California Supreme Court refused to
Speaker 1: toss a lawsuit against Sony Music over the authenticity of
Speaker 1: songs on a Michael Jackson album that was released after
Speaker 1: the singer's death. John Hancock Insurance will pay twenty six
Speaker 1: million dollars to resolve New York's claims that the company
Speaker 1: terminated long term care policies before policy holders exhausted benefits.
Speaker 1: Miami Marlin's general counsel Ashwin Krishnan is leaving the team
Speaker 1: to become the head of legal at the sports betting
Speaker 1: start up Better Bloomberg Law. Everything you need, all on
Speaker 1: one legal research platform. Including guidance analysis and Bloomberg market intelligence.
Speaker 1: Find out more at Bloomberg Lawn dot com. All right, Jess,
Speaker 1: thank you. Now let's get more on the legal implications
Speaker 1: of Allen Weiselberg's guilt deeply. The Trump Organization's longtime chief
Speaker 1: financial officer pleaded guilty to evading taxes on a free
Speaker 1: apartment and other perks, striking a deal with prosecutors that
Speaker 1: can make him a star witness against the company at
Speaker 1: a trial this fall. But it's part of his agreement.
Speaker 1: The seventy five year old will spend five months behind bars,
Speaker 1: followed by five years of probation, and will pay nearly
Speaker 1: two million dollars in back taxes, penalties and interest. For
Speaker 1: more in the development, June Grosso speaks to Greg Farrell,
Speaker 1: a Bloomberg investigative reporter for our legal enforcement team. Is
Speaker 1: this plea deal Weislberg flipping on Trump? No, not in
Speaker 1: the sense that we understand flipping as being Let's say
Speaker 1: Michael Cohen several years ago, where this Cohen describes he
Speaker 1: decided to plead guilty, and he testified the best of
Speaker 1: his knowledge, including against Trump in the Stormy Daniel's case
Speaker 1: and related cases and eventually has really been aggressive in
Speaker 1: promoting that. Whitelberg's trying to walk a fine line he
Speaker 1: wants to and succeeded in reducing exposure to like five
Speaker 1: months maximum. He's the guys seventy five that matters. I mean,
Speaker 1: he might get, you know, less than that. And he's
Speaker 1: putting guilty to fifteen charges and he'll be required, if called,
Speaker 1: to testify in the rest of the trial against the
Speaker 1: Trump organization to testify about what he did. So it's
Speaker 1: not like ratting out Donald Trump personally saying I was
Speaker 1: in the room with him and did this, but just
Speaker 1: providing testimony that as an official, the guy who actually
Speaker 1: controlled the finances and the payments, etcetera of the company,
Speaker 1: it's going to be very damaging to the organization and
Speaker 1: implicitly to Trump himself. He didn't implicate Trump or his family,
Speaker 1: and he's not going to testify about Trump and his family,
Speaker 1: and he hasn't cooperated with prosecutors in their broader investigation
Speaker 1: into Trump, So why give him a deal? I think
Speaker 1: the prosecutors a must have realized that despite the fact
Speaker 1: that he's facing fifteen years a guy his age on
Speaker 1: something like this where there's not a lot of case
Speaker 1: history is probably not get anywhere near that, and then
Speaker 1: the effort and manpower going into prosecuting him versus the
Speaker 1: value he would have to testify in court about his
Speaker 1: role there, Like public relations wise, it's already a victory,
Speaker 1: you know, because everybody's giving up on Alvin Bragg when
Speaker 1: the investigation of Trump were dead, you know, when those
Speaker 1: two star appointees of Saivance left, and now this is
Speaker 1: very much back in the game. So it's a momentum
Speaker 1: for the d A's office if they want to continue
Speaker 1: pursuing Trump himself. It cuts out a very toilsome part
Speaker 1: of the trial against an individual, and it's much stuffer
Speaker 1: to get a criminal conviction of a guy who's seventy
Speaker 1: five years old, and you've generated some sympathy for him
Speaker 1: that it isn't an organization. People just don't care about
Speaker 1: finding an organization guilty. The organization is not going to jail.
Speaker 1: So there were several upsides, you know, embedded in this
Speaker 1: for the prosecution. And that's Greg Ferrell, the Bloomberg investigative
Speaker 1: reporter for our Legal Enforcement team, speaking with June Grosso.
Speaker 1: Catch more of that interview plus analysis of the latest
Speaker 1: legal news by subscribing to the Bloomberg Law podcast or
Speaker 1: downloading the show at Bloomberg dot com slash podcasts. Attorneys
Speaker 1: can find exceptional legal research and business development tools at
Speaker 1: Bloomberg Law dot com and on the Bloomberg terminal at
Speaker 1: b law. Go and futures this morning, they're lower. S
Speaker 1: and P futures down about thirty two points down. Futures
Speaker 1: are down one eighty four and NASDAG futures down one
Speaker 1: hundred and nineteen. The ten year Treasury down eleven thirty seconds,
Speaker 1: held two point nine percent. Still ahead. On Bloomberg Dave Break,
Speaker 1: we have a check up, the business headlines and all
Speaker 1: the news you need to start your day, and this
Speaker 1: is Bloomberg