WEBVTT - Bloomberg Daybreak: August 22, 2022 - Hour 2 (Radio) 0:00:01.680 --> 0:00:05.039 Live from the Bloomberg Interactive Burgers studios. This is is Bloomberg 0:00:05.160 --> 0:00:08.440 day Break for a Monday, August twenty second two Coming 0:00:08.520 --> 0:00:11.239 up this hour, stock futures fall ahead of the key 0:00:11.320 --> 0:00:14.840 FED symposium in Jackson Hole. Can your treasury yields approach 0:00:14.880 --> 0:00:17.480 three percent? As traitors bet? J Powell and the Fed 0:00:17.560 --> 0:00:20.959 will continue their hawkish stance, and President Biden speaks with 0:00:21.000 --> 0:00:24.640 European leaders about reviving a nuclear deal with Iran. New 0:00:24.720 --> 0:00:27.360 York City confirms a case of monkey box and someone 0:00:27.480 --> 0:00:30.080 under the age of eighteen plus a car bomb has 0:00:30.160 --> 0:00:32.920 killed the daughter of a prominent ally of Vladimir Putin. 0:00:33.159 --> 0:00:35.960 Michael larn More ahead, I'm John stas Shower and swards. 0:00:36.000 --> 0:00:38.479 An amazing win for the met a much needed one 0:00:38.520 --> 0:00:41.040 for the Yankees. The Subway series begins tonight. The Giants 0:00:41.040 --> 0:00:46.440 won their preseason game. That's all trading ahead on Bloomberg 0:00:46.479 --> 0:00:51.560 Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington, 0:00:51.680 --> 0:00:55.280 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.320 --> 0:00:59.640 sixties and Francisco Sirius XM one nineteen and around the 0:00:59.680 --> 0:01:03.360 world on Bloomberg Radio dot Com and Yo Bloomberg Business. 0:01:07.400 --> 0:01:10.240 Good morning. I'm Nathan Hagar and I'm Karen Moscow. U 0:01:10.360 --> 0:01:13.160 Stock index futures are falling this morning. We're coming up 0:01:13.200 --> 0:01:14.840 to six oh one on Wall Street. I mean check 0:01:14.880 --> 0:01:17.839 the markets every fifteen minutes throughout the trading day. On Bloomberg, 0:01:17.840 --> 0:01:20.600 I guess and P futures down forty nine points down, 0:01:20.640 --> 0:01:23.120 futures down three hundred seven, NAZ day futures down a 0:01:23.240 --> 0:01:26.759 hundred can attend. Your treasury is of three thirties seconds 0:01:26.800 --> 0:01:29.039 held two point nine six percent. They yield on the 0:01:29.080 --> 0:01:32.280 two year three point to seven percent, and I'm ex screwed. 0:01:32.319 --> 0:01:35.000 Oil is down nine tenths of a percent, Nathan, Karen, 0:01:35.040 --> 0:01:37.600 it's all about the Fed this week. The annual Jackson 0:01:37.640 --> 0:01:41.080 Hole Symposium begins Thursday, and FED Chair J Powell may 0:01:41.160 --> 0:01:44.280 use his speech on Friday to push back on speculation 0:01:44.319 --> 0:01:48.040 that interest rates will fall in benchmark ten. Your treasury 0:01:48.120 --> 0:01:50.400 yields came within a whisker of three percent, with traders 0:01:50.440 --> 0:01:53.480 betting the policymakers will double down on their hawkey Is stance. 0:01:53.760 --> 0:01:57.280 Sylvia Jablonski is co founder of Defiant CTFs. You know 0:01:57.320 --> 0:02:00.360 what I would expect is that you know kind followus 0:02:00.360 --> 0:02:02.840 to what he's sort of been doing before, and you know, 0:02:02.880 --> 0:02:05.000 we'll probably hang on every word and try to determine 0:02:05.000 --> 0:02:06.800 whether or not we thought he was he was devilish 0:02:06.880 --> 0:02:09.080 or whether he was he was hawkish. But you know, 0:02:09.400 --> 0:02:12.120 the message we've been getting is very much it depends 0:02:12.160 --> 0:02:15.360 on the data to find ZTF Silviage Oblonski does not 0:02:15.440 --> 0:02:17.520 think the market will give a clear cut message from 0:02:17.520 --> 0:02:20.000 the Fed. We of course, will have complete coverage of 0:02:20.040 --> 0:02:23.200 the Jackson Hole Symposium. Bloomberg Surveillance will be their live 0:02:23.280 --> 0:02:27.280 beginning Thursday with Tom Keene, Lisa Bramwo Woods, and Jonathan Farrell. 0:02:27.560 --> 0:02:29.800 Well Nathan, the Fed is still on a collision course 0:02:29.800 --> 0:02:32.400 with financial markets. According to the latest m l i 0:02:32.480 --> 0:02:35.280 V Pulse survey, stocks and bonds are set to tumble 0:02:35.400 --> 0:02:38.720 once more, even though inflation is likely piked. Eighty four 0:02:38.800 --> 0:02:41.120 percent of respondence in the survey say it may take 0:02:41.200 --> 0:02:43.480 two years or longer for the Fed to bring inflation 0:02:43.560 --> 0:02:46.200 down to its official long term target of two percent. 0:02:46.520 --> 0:02:48.639 Well Wall Street's focus will be on the Fed this week, 0:02:48.680 --> 0:02:50.640 kar and we'll still get a number of earnings reports 0:02:50.639 --> 0:02:53.120 from tech companies, and we get a preview from Bloomberg's 0:02:53.160 --> 0:02:56.960 Charlie Pellett. Those tech names this week will include Autodesk, 0:02:57.200 --> 0:03:00.480 dell Into its sales for Snowflake and v M. Where 0:03:00.760 --> 0:03:04.160 questions abound about the outlook for corporate earnings given Federal 0:03:04.200 --> 0:03:08.360 Reserve efforts to quell inflation with higher interest rates. Alan 0:03:08.480 --> 0:03:12.320 Zaffron Is co CEO at I e Q capital earnings 0:03:12.360 --> 0:03:15.160 aren't as bad as people fear. Inflation is starting to 0:03:15.200 --> 0:03:19.320 come down. You have a remarkably over sold short term 0:03:19.480 --> 0:03:23.560 technical condition and if you do read the chartists and 0:03:23.680 --> 0:03:26.600 technical analysts are up there, they'll tell you that the 0:03:26.680 --> 0:03:30.480 set up right now is for a continuation of this rally. 0:03:30.639 --> 0:03:34.320 Also reporting this week, Dollar General, Dollar Tree, and Zoom 0:03:34.480 --> 0:03:39.480 Video Communications in New York, Charlie Bloomberg Daybreak, Rich Earlie 0:03:39.480 --> 0:03:42.920 Thanks in Asia, Chinese banks have cut their loan prime rates, 0:03:42.920 --> 0:03:46.240 and Bloomberry Daybreak Asia anchor Brian Curtis as Moore from 0:03:46.240 --> 0:03:48.960 Hong Kong. The one year rate was lower just five 0:03:49.000 --> 0:03:51.960 basis points to three point six five percent. The five 0:03:52.040 --> 0:03:55.400 year rate, a reference for mortgages, was cut fifteen basis 0:03:55.440 --> 0:03:58.360 points to four point three percent. The rate cuts following 0:03:58.360 --> 0:04:01.120 news on Friday of additional five nancing to prop up 0:04:01.160 --> 0:04:05.080 the real estate sector. Chinese developer stocks jumped in Hong Kong. 0:04:05.440 --> 0:04:08.040 It comes as the economy faces pressure on a number 0:04:08.080 --> 0:04:11.640 of fronts. In the maintime, authorities have extended power cuts 0:04:11.680 --> 0:04:16.200 in Sichuan Province. They've activated the highest emergency response in 0:04:16.279 --> 0:04:19.719 Hong Kong. Brian Curtis Sloomberg Gabrie Brian thanks oils following 0:04:19.760 --> 0:04:22.440 this morning, down nine tenths per cent or seventy seven 0:04:22.480 --> 0:04:25.240 cents to ninety dollars of Barrel West Texas Intermediate as 0:04:25.279 --> 0:04:28.400 negotiations move forward to revive a nuclear deal with Iran. 0:04:28.520 --> 0:04:32.120 Details from Ami Morris in our Bloomberg newsroom. In Washington, 0:04:32.400 --> 0:04:35.159 President Biden spoke with leaders from Germany, France, and the 0:04:35.279 --> 0:04:38.640 UK for of the original signatories of the Iran nuclear deal, 0:04:38.680 --> 0:04:43.360 which also include Russia and China. The four discussed ongoing negotiations. 0:04:43.440 --> 0:04:47.120 Iran has released its response to the latest framework earlier 0:04:47.160 --> 0:04:49.480 this month, and the US has state type lift on 0:04:49.560 --> 0:04:52.840 its position. The e U took it as constructive. One 0:04:52.920 --> 0:04:56.760 advisor to Iran's nuclear negotiating team says to Iran, once 0:04:56.839 --> 0:05:00.560 the US penalized if it backs out again. In Washington, 0:05:00.640 --> 0:05:03.400 I'm anymore. As Bloomberg Daybreak, right, Amy, thank you all. 0:05:03.440 --> 0:05:06.120 Back in East Asia, the US and South Korea are 0:05:06.160 --> 0:05:09.120 planning their biggest drill since North Korean leader Kim Jong 0:05:09.200 --> 0:05:12.159 UN's summit with then President Donald Trump, and Bloomberg said 0:05:12.200 --> 0:05:15.400 Baxter has that story, the biggest in about five years 0:05:15.440 --> 0:05:18.360 because the Trump Kim summit apparently did not work and 0:05:18.520 --> 0:05:21.480 enticing Kim John n to cut back on his nuclear programs. 0:05:21.880 --> 0:05:25.360 The drills are called Bulchief Freedom Shield and are expected 0:05:25.400 --> 0:05:29.120 to involve thousands of military personnel. The US and South 0:05:29.200 --> 0:05:33.279 Korea say they're defensive in nature and will coordinate forces 0:05:33.320 --> 0:05:37.200 to respond to the possible invasion by North Korea. An 0:05:37.240 --> 0:05:41.560 angry response from the Kim regime is expected. In San Francisco, 0:05:41.600 --> 0:05:44.640 I'm at Baxter, Bloomberg Daybreak, Thanks turning to corporate news 0:05:44.640 --> 0:05:47.760 to takeover. Battle for Signify Health is heating up. In Bloomberg, 0:05:47.800 --> 0:05:50.880 Grunita Young has that storyline, Good morning Granita, good morning Nathin. 0:05:51.000 --> 0:05:55.040 Sources say Amazon dot Com, United Health, CVS Health, and 0:05:55.200 --> 0:05:58.839 option care Health are all buying to acquire signify Health. 0:05:59.200 --> 0:06:02.360 United healthsmitted the highest bid at more than thirty dollars 0:06:02.360 --> 0:06:06.280 a share, while Amazon's offer is close behind. Signify closed 0:06:06.320 --> 0:06:09.560 above twenty one dollars on Friday, which values the company 0:06:09.600 --> 0:06:12.599 at nearly five billion dollars. Now, none of the plans 0:06:12.600 --> 0:06:16.200 are finalized yet, and the bidders plans could still change. 0:06:16.560 --> 0:06:21.279 Signify could also always opt to remain independent. Sources still 0:06:21.279 --> 0:06:24.680 Bloomberg That signifies holding a board meeting today to discuss 0:06:24.720 --> 0:06:27.160 the bids. Live in New York. I'm gonna need a 0:06:27.200 --> 0:06:29.880 young Bloomberg daybreak. Need to thank you. Get ready to 0:06:29.880 --> 0:06:33.200 pay more for Tesla's self driving system. CEO Elon Musk 0:06:33.200 --> 0:06:36.120 tweeted the price will rise three thousand dollars to fifteen 0:06:36.160 --> 0:06:38.960 thousand in North America. The increased will take effect on 0:06:38.960 --> 0:06:41.960 September five. It's his second price hyc for Tesla's self 0:06:42.080 --> 0:06:44.479 driving this year. And finally, Karen, it was tough for 0:06:44.520 --> 0:06:47.000 some Game of Thrones fans to enter the House of 0:06:47.000 --> 0:06:51.359 the Dragon through HBO Max. The Fantasy Prequels debut episode 0:06:51.760 --> 0:06:55.200 overwhelmed the streaming service last night. More than three thousand 0:06:55.200 --> 0:06:58.279 outages were reported on down detector as of nine pm 0:06:58.279 --> 0:07:02.440 Eastern time. HBO's parent company, Warner Brothers Discovery says some 0:07:02.560 --> 0:07:06.200 viewers had trouble connecting to HBO Max through Amazon Fire 0:07:06.279 --> 0:07:10.240 TV devices. SFP futures are down forty eight points right now, 0:07:10.240 --> 0:07:12.800 down futures down there and at thirteen nastack futures are 0:07:12.800 --> 0:07:15.600 lower by one d eighty nine points. Straight ahead, your 0:07:15.640 --> 0:07:19.960 latest local headlines and a check of sports. This is Bloomberg. 0:07:22.880 --> 0:07:25.080 It's how six oh seven on Wall Street still seventy 0:07:25.120 --> 0:07:27.040 three degrees in Central Park. Is still dealing with that 0:07:27.120 --> 0:07:30.239 accident westbound or southbound west Side Highway at a hundred 0:07:30.280 --> 0:07:32.680 fifty eight. Michael Bars here with Morrow. What's going on 0:07:32.680 --> 0:07:34.480 in New York and around the world. Michael, thank you 0:07:34.600 --> 0:07:37.120 very much, Nathan, New York has its first confirmed case 0:07:37.160 --> 0:07:41.520 of monkeypox in someone under the age of eighteen. Officials 0:07:41.560 --> 0:07:43.960 from the New York Department of Health say the virus 0:07:44.080 --> 0:07:47.400 was detected in a child or teenager living outside of 0:07:47.440 --> 0:07:50.880 New York City. The virus is primarily spread through skin 0:07:51.040 --> 0:07:55.480 to skin contact, and the majority of cases have affected 0:07:55.520 --> 0:07:58.480 gay men, but it also has been detected and two 0:07:58.480 --> 0:08:02.320 women outside New York's city and sixteen women living in 0:08:02.360 --> 0:08:05.559 the city. With this new school year about to begin, 0:08:05.720 --> 0:08:09.680 New York City schools say they have not yet received 0:08:09.720 --> 0:08:13.640 any official guidance about monkey pocks. Meanwhile, starting today, an 0:08:13.640 --> 0:08:17.440 additional three D sixty thousand vials a monkeypox vaccine will 0:08:17.480 --> 0:08:21.600 be available nationwide. That's potentially enough vaccine for one point 0:08:21.600 --> 0:08:25.280 eight million shots in arms. Using the Biden administration's new 0:08:25.320 --> 0:08:29.920 approach to stretch limited supplies. In Kansas City, Missouri, health 0:08:29.960 --> 0:08:34.080 official Scott Clarty is addressing privacy concerns. The city now 0:08:34.160 --> 0:08:36.640 has an online survey to help identify people who may 0:08:36.720 --> 0:08:39.959 qualify for the vaccine. If you're concerned that you may 0:08:40.000 --> 0:08:44.240 have been exposed to to to monkey poks, get online 0:08:44.440 --> 0:08:48.320 fill out that form. Health official Scott Clarty says, according 0:08:48.360 --> 0:08:52.800 to data, there are more than fourteen thousand monkeypox cases nationwide. 0:08:53.160 --> 0:08:56.640 Republican Congresswoman Liz Cheney says that are focused now is 0:08:56.720 --> 0:09:00.600 keeping former President Trump out of the White House. Following 0:09:00.600 --> 0:09:04.040 her election loss, Cheney said that President Joe Biden phoned 0:09:04.080 --> 0:09:06.680 her and they had a very good talk. Cheney spoke 0:09:06.720 --> 0:09:09.600 to ABC just days after a primary loss in Wyoming. 0:09:09.960 --> 0:09:14.080 No regrets, UM, you know, I I feel I feel 0:09:14.120 --> 0:09:17.280 sad about where my party is. I feel sad about 0:09:17.320 --> 0:09:20.360 the way that UM too many of my colleagues have 0:09:20.440 --> 0:09:23.720 responded to what I think is a great moral test 0:09:23.840 --> 0:09:27.600 and challenge of our time. Liz Cheney spoke on ABC's 0:09:27.679 --> 0:09:31.000 This Week, which can be heard Sundays on Bloomberg. Ukrainian 0:09:31.000 --> 0:09:34.160 officials are denying Russian allegations that they were behind the 0:09:34.200 --> 0:09:37.040 car bomb attack that killed the daughter of a prominent 0:09:37.080 --> 0:09:41.280 Vladimir Putin ally in Russia. Daria Dugina, the daughter of 0:09:41.320 --> 0:09:44.360 a staunch supporter of the war, killed by a car 0:09:44.400 --> 0:09:48.920 bomb near Moscow her father Alexander Duggan and ultra nationalists, 0:09:49.000 --> 0:09:52.360 has been called Putin's Brain. Global News twenty four hours 0:09:52.400 --> 0:09:55.520 a day on air and on Bloomberg Quick Take, powered 0:09:55.520 --> 0:09:58.040 by more than twenty seven hundred journalists and analysts more 0:09:58.040 --> 0:10:00.880 than twenty countries. I'm Michael barn The is Bloomberg, Nathan 0:10:00.960 --> 0:10:07.720 Michael's thank you. Come up to six ten on Wall 0:10:07.760 --> 0:10:09.959 Street Time for the Bloomberg Sports Up David John Stash 0:10:10.160 --> 0:10:12.839 all Right, Nathan Subway series tonight. Mets won both games 0:10:12.920 --> 0:10:14.719 last month at City Field. Now they played two in 0:10:14.760 --> 0:10:16.920 the Bronx. No question who the hotter team is. The 0:10:16.960 --> 0:10:20.000 Yankees did win yesterday, but it was just their fifth 0:10:20.000 --> 0:10:21.439 win in the month of all this while the Mets, 0:10:21.480 --> 0:10:24.040 who did lose three of four in Atlanta, one three 0:10:24.040 --> 0:10:27.040 of four in Philadelphia and yesterday's win amazing. They had 0:10:27.080 --> 0:10:29.760 to start a rookie Jose Buddha. He served up two 0:10:30.200 --> 0:10:32.439 three run homers to the Phillies Alley Bone on the 0:10:32.480 --> 0:10:35.160 Mets trail port nothing later seven to four, Mark Canna 0:10:35.520 --> 0:10:38.360 to the rescue, gain time three one homer, seventh and 0:10:38.480 --> 0:10:40.480 and then Canna came up with a night with the 0:10:40.559 --> 0:10:44.800 Mets trailing by Iran Robertson delivers Swingingna tried will hit 0:10:44.880 --> 0:10:49.880 to left docs gay Tom che God, do you believe this? 0:10:51.200 --> 0:10:54.360 Don it again? They take the lead. Mark Canna with 0:10:54.480 --> 0:10:57.960 his arms raised over his head between first and second 0:10:58.160 --> 0:11:00.520 as he roused the face, then received BS to call 0:11:00.559 --> 0:11:03.560 them that's one. Ten to nine. Yankees finally beat Toronto 0:11:03.640 --> 0:11:05.840 with the stadium four to two to avoid the Blue 0:11:05.920 --> 0:11:09.400 Jays four games. Finally, clutch head. It came from Andrew 0:11:09.440 --> 0:11:11.800 Benn and Tendy, who's been quiet since the arrival from 0:11:11.840 --> 0:11:14.760 Kansas City. His first Yankee home run game winning two 0:11:14.840 --> 0:11:17.280 run shot seven that in the win to Lou Trevino 0:11:17.720 --> 0:11:19.880 and other recent pick up. He got the last seven 0:11:19.920 --> 0:11:23.760 outs the subway series pitching matchups favor the Mets, Max Scherzer, 0:11:23.840 --> 0:11:25.760 Jos Tonight and Jake could be grown Tomorrow. I met 0:11:25.840 --> 0:11:28.720 Life the Giants third string quarterback Davis Webb rally Big 0:11:28.760 --> 0:11:33.079 Blue two preseason win over Cincinnati's Web through two fourth 0:11:33.160 --> 0:11:36.240 quarter touchdown passes, met Life Tonight Jets in the Atlanta Falcons. 0:11:36.520 --> 0:11:39.240 Patrick Cantley won the golf in Delaware for the second 0:11:39.280 --> 0:11:43.520 straight year. John Stashytward Bloomberg Sports Nathome okay, John, thank you. 0:11:43.840 --> 0:11:46.400 SMP future is now down forty five point. Staff futures 0:11:46.440 --> 0:11:48.480 down two D ninety one. Nest A features are lower 0:11:48.520 --> 0:11:51.240 by a hundred seventy nine points. Send your treasuries up 0:11:51.280 --> 0:11:54.160 one thirty second. The yield two point nine six six 0:11:54.520 --> 0:11:59.280 per cent. We preview Jackson Hole next with Bloomberg Global Economics, 0:11:59.360 --> 0:12:07.959 corresponding Michael McKee. Stay with us. This is Bloomberg Bloomberg 0:12:07.960 --> 0:12:10.320 eleventh three. Weather. Lots of clouds today, some scattered showers, 0:12:10.400 --> 0:12:13.560 thunderstorms behind your seventy five partly sunny, Maybe a few 0:12:13.600 --> 0:12:16.760 scattered showers tomorrow. Pin your eighty five degrees sunny in 0:12:16.760 --> 0:12:22.480 your ninety Wednesday right now, seventy three in Central Park markets, 0:12:22.640 --> 0:12:25.679 headlines and breaking news twenty four hours a day at 0:12:25.720 --> 0:12:29.119 Bloomberg dot Com, The Bloomberg Business at and at Bloomberg 0:12:29.200 --> 0:12:38.240 Quick Tape. This is a Bloomberg Business Flash and I'm 0:12:38.320 --> 0:12:41.599 Karen Moscow. Stocks in Europe are rich treating along with 0:12:41.720 --> 0:12:44.920 US stok indext futures futures as the federal reserves commitment 0:12:44.960 --> 0:12:47.360 to tighter monetary settings and worries about the effect on 0:12:47.440 --> 0:12:50.520 economic growth way on investors sentiment. We checked the markets 0:12:50.559 --> 0:12:53.520 every fifteen minutes throughout the trading day on Bloomberg S 0:12:53.559 --> 0:12:56.200 and P futures down to forty six points down, futures 0:12:56.240 --> 0:12:59.200 down to utter and nastday futures down a hundred eighty. 0:12:59.480 --> 0:13:01.280 The decks in Germany is down about one and a 0:13:01.360 --> 0:13:04.160 half percent. Ten year treasury up one thirty second yeld 0:13:04.160 --> 0:13:06.640 two point nine six percent. They yield on the two 0:13:06.760 --> 0:13:09.960 year three point to eight percent. Nine Max fruit oil 0:13:10.080 --> 0:13:12.240 is down about seven tenths per cent or sixty one 0:13:12.280 --> 0:13:15.520 cents at ninety dollar sixteen cents a barrel. Comex gold 0:13:15.600 --> 0:13:17.920 is down eight tenths percent or fourteen dollars twenty cents 0:13:17.920 --> 0:13:21.400 at seventeen forty eight sixty announce. The Euro is at 0:13:21.440 --> 0:13:24.240 one point zero zero one two against the dollar, the 0:13:24.320 --> 0:13:27.840 yen one six point nine zero, and Bitcoin this morning 0:13:27.960 --> 0:13:30.240 is down about one and a half percent at twenty 0:13:30.320 --> 0:13:33.600 one thousand, one hundred fifty dollars. Game Stop and bed 0:13:33.679 --> 0:13:36.000 Bath and Beyond are leading to clients and meme stocks 0:13:36.040 --> 0:13:39.480 This morning has the latest frenzy and the shares loses esteem. 0:13:39.559 --> 0:13:41.240 Bed Bath and Beyond is down eight and a half 0:13:41.280 --> 0:13:45.440 percent right now. We're also watching AMC Entertainment down thirty 0:13:45.520 --> 0:13:48.280 four percent ahead of the debut of its new class 0:13:48.360 --> 0:13:50.839 of shares and as a Bloomberg business flash. Now here's 0:13:50.880 --> 0:13:53.160 Michael Barr with more on what's going on around the world. 0:13:53.280 --> 0:13:56.520 Michael Karen, thank you very much. The White House, who 0:13:56.559 --> 0:13:59.640 is saying During a joint phone call, the leaders of 0:13:59.760 --> 0:14:03.720 the s UK, France and Germany discussed how to revive 0:14:03.800 --> 0:14:07.880 the around nuclear deal. Previously, tehron had curbed it's nuclear 0:14:07.960 --> 0:14:12.280 program exchange for relief from economic sensions. Ukrainian officials are 0:14:12.280 --> 0:14:14.760 the nying Russian allegations that they were behind the car 0:14:14.880 --> 0:14:18.600 bomb attack that killed the daughter of a prominent Vladimir Putinella. 0:14:19.080 --> 0:14:21.440 In baseball, the Yankees beat the Blue Jays four to 0:14:21.640 --> 0:14:24.560 the Mets beat the Phillies ten nine, The Orioles beat 0:14:24.560 --> 0:14:28.000 the Red Sox five three, The Nationals lost, The A's 0:14:28.080 --> 0:14:32.320 beat the Mariners five three, the Giants one NFL preseason yesterday, 0:14:32.400 --> 0:14:36.360 the Giants and Ravens one. In golf, Patrick Kentley wins 0:14:36.400 --> 0:14:39.560 the BMW Championship. Global News twenty four hours a day 0:14:39.600 --> 0:14:42.200 on air and on Bloomberg Quickday, powered by more than 0:14:42.280 --> 0:14:45.480 twenty seven hundred journalists analysts more than a hundred twenty countries. 0:14:45.640 --> 0:14:49.080 I'm Michael Barr, and this is Bloomberg. Nathan. Okay, Michael, 0:14:49.120 --> 0:14:50.920 thank you. We're coming up to six twenty on Wall 0:14:50.960 --> 0:14:53.840 Street line from the Bloomberg Interactive Broker Studios. This is 0:14:53.960 --> 0:14:56.240 Bloomberg Day Break. Let's get more now and what we 0:14:56.280 --> 0:14:59.360 could expect from this week's Jackson Hole Symposium and that 0:14:59.560 --> 0:15:03.840 speech from fed jaired FED chair j Powe. Bloomberg Economics 0:15:03.880 --> 0:15:07.400 correspondent Michael McKee joins me now and um, Mike, I 0:15:07.440 --> 0:15:09.720 don't know if we can say that we're seeing a 0:15:09.840 --> 0:15:13.120 reset in market expectations of what the Fed could do 0:15:13.280 --> 0:15:17.640 with interest rates, given where futures are going lower this morning, 0:15:17.760 --> 0:15:20.840 But is that what we could expect from Chairman Powell, 0:15:20.880 --> 0:15:25.760 a reset of market expectations. I think the uh, the 0:15:25.920 --> 0:15:28.640 markets are hoping he will tell them something that can 0:15:29.240 --> 0:15:32.560 help them to figure out where we're going and how 0:15:32.640 --> 0:15:35.320 fast we're going to get there and therefore position for 0:15:35.840 --> 0:15:37.360 But I'm not sure they're going to get what they're 0:15:37.400 --> 0:15:39.920 looking for because it may be hard for Powell to 0:15:40.040 --> 0:15:43.800 even figure that out. I think what the what we'll 0:15:43.840 --> 0:15:45.760 see is a lot of volatility this week is trying 0:15:45.760 --> 0:15:49.440 to people try to read into various economic indicators whether 0:15:49.520 --> 0:15:52.640 there's good news or bad news coming. But Paula's position 0:15:52.760 --> 0:15:55.840 hasn't changed a whole lot, and nor has the Feds. 0:15:55.880 --> 0:15:58.360 They believe they're going to have to keep raising rates 0:15:58.440 --> 0:16:00.680 to a certain point and stay air for a while, 0:16:00.760 --> 0:16:03.120 where the market thinks that they'll raise rates a little 0:16:03.160 --> 0:16:06.360 more and start cutting again. So that's the message he'll 0:16:06.400 --> 0:16:10.080 deliver out. Uh. Larry Summers out this last Friday on 0:16:10.280 --> 0:16:13.000 Wall Street Week with David Weston, saying that the Fed 0:16:13.160 --> 0:16:15.880 should be honest and say, look, we're going to create 0:16:15.920 --> 0:16:18.760 a recession. I'm not sure paul is going to go 0:16:18.920 --> 0:16:21.800 that far. Yeah, I mean, we wouldn't. I mean, has 0:16:21.880 --> 0:16:24.720 there ever been a time where a federal Reserve has 0:16:24.760 --> 0:16:29.840 said that they expect and resentsially. Has that happened in history? No, 0:16:30.160 --> 0:16:32.800 And I've I've liken this to like a football game 0:16:32.840 --> 0:16:34.560 where the coach comes out at the beginning of the 0:16:34.600 --> 0:16:36.440 game and says, we're gonna get killed today. We're really 0:16:36.480 --> 0:16:39.360 gonna lose by a lot. That's not gonna happen. Um, 0:16:39.720 --> 0:16:44.280 but Paul may, uh if if if he wants to 0:16:44.440 --> 0:16:47.320 send that kind of a message, he may dance around 0:16:47.360 --> 0:16:50.400 it by saying things like, um, you know, there's there's 0:16:50.400 --> 0:16:53.960 going to be pain involved. We know that. And we've 0:16:54.040 --> 0:16:58.840 seen some I guess gaming out of how long it's 0:16:58.880 --> 0:17:01.480 going to take for the FED to get to its 0:17:01.720 --> 0:17:05.280 too percent inflation target. We've got that m Live Pulse 0:17:05.359 --> 0:17:07.399 survey out this morning that says it could take a 0:17:07.480 --> 0:17:11.800 couple of years for inflation to get back to target. 0:17:11.960 --> 0:17:14.400 I mean, is is there anything that markets could get 0:17:14.840 --> 0:17:18.720 from the chairman on that score? How long they expect 0:17:18.800 --> 0:17:23.120 the fight's gonna take. They've said it's likely to take 0:17:23.200 --> 0:17:26.960 a couple of years. They're there. Economic projections released in 0:17:27.080 --> 0:17:31.199 June don't have us getting back till about two five. Now, 0:17:31.640 --> 0:17:36.160 the question is, uh, does anybody really have a good 0:17:36.400 --> 0:17:38.560 idea how how long it's going to take, because this 0:17:38.680 --> 0:17:44.280 is such an unusual UH inflationary trend, driven in large 0:17:44.359 --> 0:17:48.320 part by coming out of the pandemic and then the war, 0:17:48.760 --> 0:17:50.359 and we don't know what's going to happen with that 0:17:50.480 --> 0:17:53.240 war in Ukraine. We don't know whether energy prices are 0:17:53.280 --> 0:17:55.680 going to shoot up again, which would just make it 0:17:55.800 --> 0:17:59.320 all the harder. We are seeing signs and use cars 0:17:59.480 --> 0:18:02.520 and airfares and things like that that some of the 0:18:02.600 --> 0:18:05.399 things that the Fed expected to be transitory were the 0:18:05.520 --> 0:18:08.880 period was longer, but they are starting to go down. 0:18:09.520 --> 0:18:12.199 So it's kind of hard for people to estimate how 0:18:12.280 --> 0:18:15.440 long it's going to take and have a good UH 0:18:15.800 --> 0:18:19.840 handle on that, which probably argues that J. Powell is 0:18:19.920 --> 0:18:22.879 not going to give us a specific timeline other than 0:18:22.960 --> 0:18:25.320 to say it will take a while. Since I think 0:18:25.400 --> 0:18:27.520 I heard you bring up the T word again, Mike, 0:18:28.040 --> 0:18:32.879 how much UH stock should markets take in what Powell 0:18:33.040 --> 0:18:36.320 does say this week, given that when they held the 0:18:36.359 --> 0:18:40.560 symposium last year, he brought out the word transitory and 0:18:40.640 --> 0:18:42.879 he's now admitted that that turned out wrong. Got about 0:18:42.960 --> 0:18:44.840 thirty seconds. Yeah, there are some people who think that 0:18:44.960 --> 0:18:47.200 he's going to have a bit of a credibility problem. 0:18:47.320 --> 0:18:50.200 I think people can take his words at face value. 0:18:50.680 --> 0:18:52.560 The only thing is is, UH, We're going to have 0:18:52.600 --> 0:18:55.600 a jobs report and a CPI report before the next 0:18:55.640 --> 0:18:58.320 FIT meeting on September twenty one, and those will have 0:18:58.840 --> 0:19:01.120 a major impact on what the FED does that day. 0:19:01.160 --> 0:19:03.760 So I don't think you can leave jackson Hole saying 0:19:03.800 --> 0:19:06.640 the fan is gonna do x ro y um September 0:19:06.720 --> 0:19:09.520 twenty one. But I have an idea of the general trend, 0:19:10.000 --> 0:19:13.080 and that sounds like that could be the message that 0:19:13.200 --> 0:19:16.720 he sends that they just don't know where things could go, 0:19:16.920 --> 0:19:20.360 given that there is so much more data between jackson 0:19:20.440 --> 0:19:23.439 Hole and the next step MC meeting. Thanks for this, Mike, 0:19:23.480 --> 0:19:26.760 great as always having on with us Bloomberg Economics correspondent 0:19:26.840 --> 0:19:30.520 Michael McKee, And of course we will have full jackson 0:19:30.640 --> 0:19:33.440 Hole coverage for you right here on Bloomberg Radio and 0:19:33.440 --> 0:19:36.960 Bloomberg Television. Bloomberg Surveillance is going to be there starting 0:19:37.600 --> 0:19:41.200 when the symposium kicks off on Thursday. Tom to Keene, 0:19:41.280 --> 0:19:44.160 Jonathan Farrell, Liso, Bronwood's taking you all the way through 0:19:44.760 --> 0:19:48.440 uh FED share Powell's speech coming up on Friday. The 0:19:49.320 --> 0:19:52.840 Capra of Jackson Hole looking ahead to the market open 0:19:52.920 --> 0:19:55.920 this morning. SMP futures are down forty six points, STAW 0:19:56.000 --> 0:19:58.560 futures down two hundred ninety four, and NASTAC futures are 0:19:58.600 --> 0:20:03.200 lowered by one two points. You're listening to Bloomberg Daybreak 0:20:07.320 --> 0:20:09.960 Bloomberg eleven three oh weather clouds, some scattered showers and 0:20:10.000 --> 0:20:12.399 thunderstorms high your seventy five Today, we'll get into the 0:20:12.400 --> 0:20:15.399 mid eighties Tomorrow partly sunny with a few scattered showers 0:20:15.440 --> 0:20:19.200 and thundershowers. Wednesday sunshine behind your ninety right now seventy 0:20:19.240 --> 0:20:25.919 three degrees. Broadcasting live from the Bloomberg Interactive Broker's studio 0:20:26.080 --> 0:20:29.240 in New York, Bloomberg in Freedom to Washington, d C. 0:20:29.440 --> 0:20:32.880 Bloomberg ninety nine one to Boston, Bloomberg one on six 0:20:32.960 --> 0:20:36.159 one to San Francisco, Bloomberg nine six to the country 0:20:36.280 --> 0:20:39.280 Sirius XM Chado one nine team, and around the globe 0:20:39.359 --> 0:20:42.320 to the Bloomberg Business app in Bloomberg Radio dot com. 0:20:42.800 --> 0:20:52.040 This is Bloomberg Daybreak six thirty on Wall Street. Good morning. 0:20:52.080 --> 0:20:55.240 I'm Nathan Hagar and I'm Karen Mosca. We're just about 0:20:55.280 --> 0:20:57.720 three hours away from the open of US trading. Time 0:20:57.760 --> 0:20:59.920 for the five things you need to notice start your day, 0:21:00.040 --> 0:21:03.280 Brought to you by I d k R Investment Advisers 0:21:03.320 --> 0:21:06.399 switched to interacted brokers for lowest cost global trading and 0:21:06.480 --> 0:21:10.200 turnkey custody solutions, no ticket charges and no conflicts of 0:21:10.240 --> 0:21:12.879 your interests at i vkr dot com slash r I 0:21:13.240 --> 0:21:17.800 at first the Annual Jackson Hole Symposium against Thursday, and 0:21:17.840 --> 0:21:20.159 we'll hear from Federal Reserve Chair j Powell and a 0:21:20.240 --> 0:21:23.920 speech Friday. Bloomberry's Viney Down. Judas has a preview the 0:21:24.000 --> 0:21:27.480 FED chairs battling inflation after the central bank fumbled at 0:21:27.560 --> 0:21:30.359 the onset of the worst price surge in decades. Bloombrig 0:21:30.400 --> 0:21:33.919 Economics as Powell attempt to steady the message on interest 0:21:34.040 --> 0:21:37.240 rates in his talk at Jackson Hall and dissuade Wall 0:21:37.320 --> 0:21:39.840 Street that the Fed is made a devilish pivot by 0:21:39.920 --> 0:21:42.320 signaling the Central Bank is far from done in this 0:21:42.520 --> 0:21:45.560 year's tightening campaign. So far, the Feed is lifted its 0:21:45.600 --> 0:21:48.560 benchmark rate from near zero to two point five percent. 0:21:49.560 --> 0:21:51.840 Judais Bloomberg day break. All right, Vinny, thanks, so we'll 0:21:51.840 --> 0:21:55.200 have complete cabage at the Jackson Hole Symposium Bloomberg surveillance 0:21:55.280 --> 0:21:58.080 will be their live overseas careen Chinese banks to cut 0:21:58.119 --> 0:22:00.480 their loan prime rates as Beijing pledge is to offer 0:22:00.520 --> 0:22:03.920 developers more financing. Hi Chen is head of investment strategy 0:22:03.960 --> 0:22:06.440 at High Tong International. I think we already reached a 0:22:06.480 --> 0:22:08.399 point that a central government really need to step in 0:22:08.600 --> 0:22:10.680 and announcement over the week on the pottest banks, this 0:22:10.720 --> 0:22:12.879