WEBVTT - Bloomberg Daybreak: August 1, 2022 - Hour 1 (Radio) 0:00:02.360 --> 0:00:05.640 Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:05.720 --> 0:00:09.520 Day Bright for a Monday, August one. Coming up this shower, 0:00:09.800 --> 0:00:12.320 Traders begin a new month with a slew of earnings 0:00:12.320 --> 0:00:15.000 in focus. One Fed president said there's a long way 0:00:15.000 --> 0:00:18.080 to go to hit two percent inflation. Concern in China 0:00:18.120 --> 0:00:21.400 grows amid worse than expected economic data, and Senator Joe 0:00:21.440 --> 0:00:24.160 Manchin makes his pitch in favor of the climate tax 0:00:24.239 --> 0:00:27.200 film speeding cameras in New York City to gain operating 0:00:27.240 --> 0:00:30.880 two seven starting today blast the death toll rises from 0:00:30.960 --> 0:00:34.160 last week's flooding in Kentucky. I'm Michael barn a half, 0:00:34.320 --> 0:00:36.760 I'm John Stashower and fourth sixth straight win for the Mets. 0:00:36.840 --> 0:00:39.680 The Yankees lost to the ninth inning and widespread reaction 0:00:39.760 --> 0:00:44.440 of the passing of the NBA legend Bill Russell. That's 0:00:44.479 --> 0:00:48.000 all straight ahead on Bloomberg Day Break on Bloomberg eleven 0:00:48.120 --> 0:00:52.400 three on New York, Bloomberg one, Washington, d C, Bloomberg 0:00:52.400 --> 0:00:56.800 one six one, Boston, Bloomberg nine sixties, San Francisco, Syrius 0:00:56.920 --> 0:00:59.880 x M one nineteen and around the world on Bloomberg 0:01:00.040 --> 0:01:07.800 Video dot Com and via the Bloomberg Business app. Good morning. 0:01:07.840 --> 0:01:10.800 I'm Nathan Hager and I'm Karen Moscow and US DOT 0:01:10.840 --> 0:01:13.600 Index futures are lower this morning. We are coming up 0:01:13.600 --> 0:01:15.320 de Figo one on Wall Street, and we checked the 0:01:15.360 --> 0:01:18.480 markets every fifteen minutes throughout the trading day on Bloomberg 0:01:18.600 --> 0:01:21.959 S and P futures down fifteen points down, futures down 0:01:21.959 --> 0:01:25.240 seventy nine at ASDAG futures down fifty one. Ten year 0:01:25.319 --> 0:01:28.880 treasury down five thirty seconds, yield two point six six percent, 0:01:29.200 --> 0:01:31.440 and a yield on the two year two point nine 0:01:31.440 --> 0:01:34.559 one percent. Nine X screwed oil is down two point 0:01:34.640 --> 0:01:37.360 two percent, down two dollars seventeen cents at ninety six 0:01:38.440 --> 0:01:41.280 cents of barrel, Nathan. Well, as you mentioned, Karen, futures 0:01:41.280 --> 0:01:43.319 are on the decline this morning as we kick off 0:01:43.360 --> 0:01:46.959 a new month, looking ahead to Friday's jobs report, and 0:01:47.000 --> 0:01:49.960 the debate continues on the health of the US economy. 0:01:50.360 --> 0:01:54.200 Regid Atlantic Capital Chief investment Officer Andy Kapern says the 0:01:54.320 --> 0:01:57.320 environment is uncertain, but he is still sticking with value. 0:01:58.040 --> 0:02:00.080 You should continue to stick with what is we're for 0:02:00.200 --> 0:02:02.600 you so far this year, and that is precisely thinking 0:02:02.680 --> 0:02:05.440 with value, which is heavy on energy, heavy on materials 0:02:05.440 --> 0:02:09.880 and industrials. The underlying price of those commodities, they're fundamentally undersupplied. 0:02:10.000 --> 0:02:12.960 Andy Kapin with Region Atlantic Capital says focusing on value 0:02:12.960 --> 0:02:16.680 and quality can still generate returns in a volatile market. Hello. 0:02:16.680 --> 0:02:19.760 Over the weekend, Nathan, we got more comments on FED policy. 0:02:19.800 --> 0:02:22.919 Minneapolis Fed President Neil cash Cary said he's not worried 0:02:22.960 --> 0:02:25.639 about whether the US is in a technical recession. He 0:02:25.720 --> 0:02:28.920 said the central bank is focused squarely on inflation. We're 0:02:28.960 --> 0:02:31.600 gonna do everything we can to try to avoid a recession, 0:02:31.880 --> 0:02:34.440 but we are committed to bringing inflation down and we're 0:02:34.440 --> 0:02:36.160 going to do what we need to do, and we 0:02:36.200 --> 0:02:38.920 are a long way away from achieving an economy that 0:02:39.040 --> 0:02:41.080 is back at two percent inflation, and that's where we 0:02:41.120 --> 0:02:43.600 need to get to. Neil cash Cary said he does 0:02:43.600 --> 0:02:46.560 not see evidence of a US wage price spiral. He 0:02:46.600 --> 0:02:49.320 made the comments on CBSS Face the Nation heard some 0:02:49.440 --> 0:02:52.000 days on Bloomberg Radio. Well, stocks are coming off a 0:02:52.040 --> 0:02:55.119 banner month, Karen, but that trend may not continue. That's 0:02:55.120 --> 0:02:58.080 according to two high profile analysts. Let's get more in 0:02:58.120 --> 0:03:00.600 this live report from Bloomberg's John Tuck. Good morning, John, 0:03:00.680 --> 0:03:03.959 Good morning, Nathan. Earnings results are holding up better than feared. 0:03:04.040 --> 0:03:06.880 Of the fifty of the SMP five hundred companies that 0:03:06.880 --> 0:03:10.799 have reported more than half of beaten estimates. Still, Goldman 0:03:10.880 --> 0:03:13.680 Sacks strategist David Constance is the rate of earning speeds 0:03:13.760 --> 0:03:17.320 is trailing the average pace set in the last five quarters, 0:03:17.600 --> 0:03:20.880 and Morgan Stanley's Mike Wilson says the rebounded stocks likely 0:03:20.919 --> 0:03:23.840 to be short lived as estimates are cut further and 0:03:23.880 --> 0:03:27.240 the economy heads into contraction. And a note this morning, 0:03:27.240 --> 0:03:29.720 Wilson also says the bomb market is assuming the Fed 0:03:29.760 --> 0:03:32.880 will get inflation under control, which is good for fixed 0:03:32.919 --> 0:03:36.240 income but not stocks. Live in New York. I'm John Tucker, 0:03:36.240 --> 0:03:38.800 Bloomberg Daybreak. All right, John, thank you all. Another big 0:03:38.800 --> 0:03:41.760 week on Wall Street with economic data and earning set 0:03:41.800 --> 0:03:43.960 to be the main drivers again. And we get more 0:03:44.000 --> 0:03:47.480 from Bloomberg's Charlie Pillett. While investors keep an eye on 0:03:47.560 --> 0:03:51.200 the economic data, including a Job's report, they're also focused 0:03:51.200 --> 0:03:54.920 on what corporations are saying about the second half. Solita 0:03:55.000 --> 0:03:58.640 Marcelli is chief investment officer for the America's at UBS 0:03:58.720 --> 0:04:01.920 Global Wealth Management. This earning season, we heard a lot 0:04:01.960 --> 0:04:04.840 of talk of recession, but we haven't seen any indication. 0:04:05.040 --> 0:04:07.800 And the results Lots of earnings this week across a 0:04:07.920 --> 0:04:11.120 broad swath of industries. Amongst some of the names A 0:04:11.320 --> 0:04:16.920 M D, Airbnb, Caterpillar, Lift, Uber, Marriott, Occidental, Petroleum, Starbucks, 0:04:16.960 --> 0:04:20.440 and Young Brands in New York. Charlie Pellett bloom Bird 0:04:20.520 --> 0:04:23.839 Day Break, Charlie, Thank you. US shale drillers are expected 0:04:23.880 --> 0:04:26.680 to post record profits this week, and after a decade 0:04:26.680 --> 0:04:30.520 of steep losses, looks like shale is finally blossoming. Bloomberg's 0:04:30.520 --> 0:04:32.800 Grinita Young joins US Live with that Good morning, Grinina, 0:04:32.880 --> 0:04:36.080 Good morning Nathan. Estimate is compiled by Bloomberg Show. The 0:04:36.120 --> 0:04:40.640 top twenty eight publicly traded US independent oil producers generated 0:04:40.640 --> 0:04:43.840 twenty five point five billion dollars in free cash flow 0:04:43.880 --> 0:04:46.200 in the second quarter. That's about a quarter of what 0:04:46.320 --> 0:04:51.200 they lost over the past decade. Fracking revolutionized global energy 0:04:51.200 --> 0:04:55.280 markets by enabling American drillers to harvest shale resources that 0:04:55.360 --> 0:04:58.800 had previously been untouchable. In just over ten years, the 0:04:58.920 --> 0:05:01.839 US went from a de climbing crude producer to the 0:05:01.880 --> 0:05:06.320 world's dominant oil and gas source. But at an astronomical cost. 0:05:06.640 --> 0:05:09.520 The twenty eight companies lost about a hundred fifteen billion 0:05:09.600 --> 0:05:13.120 dollars in the decade leading up to the COVID nineteen pandemic. 0:05:13.600 --> 0:05:16.279 Live in New York. I'm really need a Young Bloomberg daybreak, 0:05:16.480 --> 0:05:18.880 all right, we need a thank you about turning overseas now. 0:05:19.080 --> 0:05:22.920 HSBC shares are up five point eight percent in London 0:05:23.000 --> 0:05:24.960 after the bank turned at US strong earning sir for 0:05:25.080 --> 0:05:28.400 it IP profit estimates, bound to restore quarterly dividends, and 0:05:28.480 --> 0:05:31.839 fended off a call to split up. HSBC CFO You 0:05:31.960 --> 0:05:35.360 and Stevenson spoke to Bloomberg from Hong Kong, rising rights 0:05:35.440 --> 0:05:38.840 is certainly beneficial to us. Interesting come was up twenty 0:05:39.279 --> 0:05:41.560 Q two on G two. Revenues were up twelve for 0:05:41.640 --> 0:05:44.360 sant overall, we also kept cost flat, so we had 0:05:44.360 --> 0:05:47.320 an enormous amount of operating leverage. We also had a 0:05:47.400 --> 0:05:49.919 one off tax benefit too, so we're very pleased with 0:05:49.960 --> 0:05:53.920 these results. Chief financial Officer You and Stevenson says HSBC 0:05:54.440 --> 0:05:57.600 is paying close attention to its China real estate exposure. 0:05:57.800 --> 0:05:59.960 Let's say the Europe now, Karen, where the economic folk 0:06:00.040 --> 0:06:02.080 us this week is on the Bank of England Bloomberg 0:06:02.120 --> 0:06:05.720 Daybreak europpost. Stephen Carroll joins us live from London with details. 0:06:05.720 --> 0:06:08.400 Good morning, Stephen, Good morning Nathan and Karen. The Bank 0:06:08.400 --> 0:06:10.920 of England was the first of the major central banks 0:06:10.920 --> 0:06:13.839 to high crates after the pandemic, but now it's playing 0:06:13.960 --> 0:06:17.080 catch up. Governor Andrew Bailey has promised to act forcefully 0:06:17.120 --> 0:06:19.560 to tackle inflation that's running at a forty year high 0:06:19.600 --> 0:06:22.760 in the UK. Markets now see a seventy chance of 0:06:22.760 --> 0:06:25.400 a fifty basis point hike on Thursday. That would be 0:06:25.440 --> 0:06:28.720 the largest by the Bank in twenty seven years. This 0:06:28.880 --> 0:06:32.240 as it's warning that inflation cut it eleven percent this year. 0:06:32.560 --> 0:06:35.800 Live in London, I'm Stephen Carroll, Bloomberg Daybreak, Right, Stephen, 0:06:35.839 --> 0:06:37.719 Thank you all. Beck you're in the US. We're focused 0:06:37.720 --> 0:06:40.359 on politics. After doing a one A D on supporting 0:06:40.400 --> 0:06:43.479 a climate text bill last week, Senator Joe Manchin is 0:06:43.520 --> 0:06:47.159 now out pitching the measure, Bloomberg said, Baxter has that story. 0:06:47.440 --> 0:06:50.400 Senator Mansion says it all just makes sense. We've taken 0:06:50.440 --> 0:06:53.479 three point five troyon of spending down to four million 0:06:53.520 --> 0:06:57.320 of investing without raising any taxes whatsoever. And he says 0:06:57.360 --> 0:07:00.040 he doesn't know now what all the dramas about, and 0:07:00.160 --> 0:07:01.680 know if we could get a deal. I did not 0:07:01.760 --> 0:07:03.560 know if we could come to an agreement, So why 0:07:03.560 --> 0:07:05.880 would I put people through this all this drama? And 0:07:05.880 --> 0:07:08.880 he's also making a public pitch to get Senator Kirsten's 0:07:08.880 --> 0:07:12.680 cinema on board. The vote expected this week in San Francisco. 0:07:12.760 --> 0:07:15.600 I'm at Baxter Bloomberg daybreak. All right, ed, thanks straight ahead, 0:07:15.600 --> 0:07:18.320 your latest local headlines and the check of sports. This 0:07:18.680 --> 0:07:24.720 is Bloomberg and it's not five oh seven on Wall Street, 0:07:24.800 --> 0:07:28.200 sixty nine degrees in Central Park. Got slippery roads this morning, 0:07:28.400 --> 0:07:31.200 already an accident on the Connecticut Turnpike southbound your eggs 0:07:31.200 --> 0:07:34.080 at eighteen. We'll get to the details in traffic shortly, 0:07:34.080 --> 0:07:37.240 but first Michael Barr with another reason why you might 0:07:37.240 --> 0:07:39.280 want to take it easy on the roads this morning. 0:07:39.280 --> 0:07:43.120 Good morning, Michael, Good morning, Nathan Smile. You're on traffic camera. 0:07:43.360 --> 0:07:47.120 Starting today, about two thousand speed cameras begin running twenty 0:07:47.120 --> 0:07:49.880 four hours a day every day across New York City. 0:07:50.120 --> 0:07:52.200 If you crossed speeding by the camera, you'll get a 0:07:52.240 --> 0:07:55.400 fifty dollar fine in the mail. However, experts say it 0:07:55.600 --> 0:07:59.640 usually will not result with points on your license. Kentucky 0:07:59.680 --> 0:08:03.040 Governor Andy Bisher says housing, water, and cell phone service 0:08:03.280 --> 0:08:06.480 are among the priorities the state is focused on bringing 0:08:06.520 --> 0:08:09.679 back to people who have lost everything in last week's 0:08:09.680 --> 0:08:14.640 deadly flooding in eastern Kentucky. Are confirmed count of Kentuckians 0:08:14.680 --> 0:08:18.200 we've lost is now reached twenty eight and we expect 0:08:18.240 --> 0:08:22.120 that there will be more and that that number will grow. 0:08:22.360 --> 0:08:25.560 Governor Bisher says about a hundred travel trailers are coming 0:08:25.600 --> 0:08:28.480 in to help people displaced by the disaster in Perry, 0:08:28.760 --> 0:08:32.439 Elector and Not counties. There are stepped up efforts to 0:08:32.520 --> 0:08:34.840 slow the spread of the monkeypox virus in the US 0:08:34.920 --> 0:08:38.319 to spite rise in case numbers and limited vaccine supplies. 0:08:38.720 --> 0:08:41.400 The first known depths from the global outbreak have been 0:08:41.520 --> 0:08:44.880 reported in Europe and Brazil over the weekend. There are 0:08:44.920 --> 0:08:48.480 now more than five thousand confirmed cases of monkeypox across 0:08:48.520 --> 0:08:52.760 the US. Officials say cases are concentrated among men who 0:08:52.880 --> 0:08:56.320 have sex with other men, but because monkeypox is spread 0:08:56.320 --> 0:08:59.920 by skin to skin contact, Dr Alock Patel says an 0:09:00.080 --> 0:09:02.600 one could catch it individuals who are in an at 0:09:02.679 --> 0:09:05.679 risk community. We'll have come in contact with others who 0:09:05.720 --> 0:09:08.280 have symptoms of monkey pots are encouraged to go get 0:09:08.320 --> 0:09:11.760 a vaccine, but right now we're seeing long lines in 0:09:11.880 --> 0:09:14.840 order to get the vaccine. Dr Pertell spoke to ABC. 0:09:15.240 --> 0:09:17.880 It comes as the New York City Health Department declared 0:09:17.960 --> 0:09:21.120 monkey potts at public health emergency over the weekend. Earlier, 0:09:21.160 --> 0:09:24.320 New York Governor Kathy hulk Will declared a disaster emergency 0:09:24.320 --> 0:09:27.679 in the state. We've lost some greats. NBA fans are 0:09:27.720 --> 0:09:30.559 remembering Celtics legend Bill Russell, who died at eighty eight. 0:09:30.559 --> 0:09:34.160 More in sports shortly star track actress Michelle Nichols, who 0:09:34.200 --> 0:09:37.360 broke ground for blacks playing Lieutenant O'Hara, has died at 0:09:37.400 --> 0:09:40.080 age eighty nine. And Pat Carroll, the voice of Ursula 0:09:40.240 --> 0:09:43.640 in the Disney classic The Little Mermaid, has died at 0:09:43.720 --> 0:09:47.480 age nine. Global News twenty four hours a day on 0:09:47.600 --> 0:09:50.280 air and on Bloomberg Quick Take, powered by more than 0:09:50.360 --> 0:09:52.880 twenty seven hundred journalists and analysts more than a hundred 0:09:52.920 --> 0:09:56.160 twenty countries. I'm Michael bar this is Bloomberg. Nathan Greats 0:09:56.200 --> 0:09:59.200 just scratches the surface and all three of them. Thank you, Michael. 0:10:03.880 --> 0:10:05.800 Coming up to five ten on Wall Street, time for 0:10:05.920 --> 0:10:08.840 the Bloomberg Sports Uptake and Morning Johns. Alright, your morning, 0:10:08.920 --> 0:10:11.000 Nathan and his regious heard of course NBA legend Bill 0:10:11.080 --> 0:10:13.080 Russell dying yesterday at his home at the age of 0:10:13.080 --> 0:10:15.559 eighty eight. And you can argue where Russell ranks among 0:10:15.600 --> 0:10:18.280 the greatest players in NBA history. Certainly in the conversation 0:10:18.360 --> 0:10:21.559 from a defensive standpoint, he may well have been the best. 0:10:21.600 --> 0:10:24.640 As a rebounder, he averaged twenty three rebounds a game, 0:10:24.720 --> 0:10:27.640 he once had fifty one. And what is not up 0:10:27.679 --> 0:10:30.360 for debate is it was the greatest winner in league history. 0:10:30.400 --> 0:10:33.439 Russell won eleven championships in thirteen years with the Celtics, 0:10:33.720 --> 0:10:35.920 eight in a row. In the last two. He not 0:10:36.000 --> 0:10:37.800 only played, he was the head coach. He played in 0:10:37.880 --> 0:10:41.280 ten game seven's. He won all ten during his career 0:10:41.360 --> 0:10:45.400 and after Russell, often a voice against racial and social injustice, 0:10:45.440 --> 0:10:48.240 Billie Jane King called him a once in a generation 0:10:48.360 --> 0:10:52.160 activist athlete. Barack Obama statement yesterday read as tall as 0:10:52.240 --> 0:10:56.120 Russell stood, his legacy as a player in person rises higher. 0:10:56.559 --> 0:10:59.160 At stadium, Yankees trailed the Royals for nothing, then led 0:10:59.240 --> 0:11:01.360 six four after a d J le Mayhew two run 0:11:01.440 --> 0:11:04.200 homer and Anthony Rizzo three runs Chavo with two outs 0:11:04.240 --> 0:11:06.640 in the ninth, the three run homer by Kansas City 0:11:06.679 --> 0:11:10.080 Salvador Pereza play Homes, who had not given up a 0:11:10.120 --> 0:11:12.000 homer all year. The Royals beat the Yanks eight to 0:11:12.080 --> 0:11:15.280 six in Miami season nine nineteen hits for the Mets, 0:11:15.360 --> 0:11:18.120 three each for Jeff McNeil, Marc Canne, Francince Gilden Door 0:11:18.520 --> 0:11:20.960 a nine to three route. So after a two game 0:11:21.000 --> 0:11:23.800 swee for the Yankees, a three game swee with the Marlins, 0:11:23.960 --> 0:11:26.360 Mets manager was Buck show Walter, how hard it is 0:11:26.400 --> 0:11:28.720 to win three games in a row on the road 0:11:28.760 --> 0:11:32.120 and Slaine Ballpark in the Major League. That's suppressive. Our 0:11:32.160 --> 0:11:34.800 guys came out without talk with intensity. You need to 0:11:35.320 --> 0:11:39.199 facing a Lopez, Uh, you know it's you know, he 0:11:39.280 --> 0:11:41.320 faces some good pitching here. I'm speaking a good pitching 0:11:41.400 --> 0:11:44.240 metser in Washington, Max schers Or tonight against his old team, 0:11:44.240 --> 0:11:47.640 and then tomorrow the season's debut of Jacob deGrom, John 0:11:47.640 --> 0:11:51.400 Stashower Bloomberg Sports, Nathan Alright, John thanks SMP futures down 0:11:51.440 --> 0:11:54.800 thirteen points, Staff features down sixty four, Nastack Futures down 0:11:55.040 --> 0:11:57.640 forty four points, ahead of the start of a new 0:11:57.679 --> 0:12:00.640 trading month, we bring in Dennis Carr, been the former 0:12:00.640 --> 0:12:07.640 publisher of the Gartment letter. Next, this is Bloomberg Bloomberg 0:12:07.679 --> 0:12:10.559 eleven three oh weather mostly cloudy today with highs and 0:12:10.640 --> 0:12:13.160 your eighty degrees will bring back the chance of showers 0:12:13.160 --> 0:12:15.960 and storms tomorrow with a high near ninety, sunny and 0:12:16.040 --> 0:12:18.920 hot ninety for Wednesday. Right now sixty nine in Central 0:12:18.960 --> 0:12:25.079 Park Markets, headlines and breaking news twenty four hours a 0:12:25.160 --> 0:12:28.200 day at Bloomberg dot com. The Bloomberg Business at and 0:12:28.360 --> 0:12:37.800 at Bloomberg Quick Tape is a Bloomberg Business lash and 0:12:37.840 --> 0:12:41.480 I'm Karen Moscow and Europeans stocks are taking higher as 0:12:41.520 --> 0:12:45.240 corporate earnings continue to deliver upside surprises. Will investor's assess 0:12:45.320 --> 0:12:47.880 or marks from central bankers at higher interest rates you're 0:12:47.920 --> 0:12:52.040 needed to bring inflation under control. Futures are lower. Last week. 0:12:52.160 --> 0:12:54.240 What's the best for the US stock market in more 0:12:54.240 --> 0:12:56.560 than two years. It is the first trading day of 0:12:56.559 --> 0:12:59.240 the month. Last month, the S and P five gained 0:12:59.440 --> 0:13:03.120 about nine point two percent, growth stocks beating value stocks. 0:13:03.120 --> 0:13:05.480 There We check the markets every fifteen minutes throughout the 0:13:05.480 --> 0:13:07.880 trading day on Bloomberg Right now S and P futures 0:13:07.920 --> 0:13:10.360 down about twelve points and down futures down fifty six. 0:13:10.640 --> 0:13:13.480 NASDACK futures down thirty nine. The decks in Germany is 0:13:13.520 --> 0:13:15.839 at a third of a percent. Ten year treasury down 0:13:15.880 --> 0:13:18.280 five thirday seconds, yield two point six six percent. The 0:13:18.360 --> 0:13:21.280 yield on the two year two point nine percent. Nim 0:13:21.320 --> 0:13:24.959 excrude oil is down two percent, down two dollars one 0:13:25.000 --> 0:13:27.640 cent and ninety six dollars sixty one cents a barrel. 0:13:27.720 --> 0:13:32.199 Comics called middle Change is eighty announce the Euro one 0:13:32.200 --> 0:13:34.800 point two five four against the dollar, British pound one 0:13:34.800 --> 0:13:37.560 point two to three eight and the end one thirty 0:13:37.600 --> 0:13:41.040 two point three nine. And looking at bitcoin, it's down 0:13:41.120 --> 0:13:44.800 two percent. It's at twenty three thousand, three hundred twenty dollars. 0:13:44.920 --> 0:13:48.320 That's a bloomberg business flash. Now here's Michael Varr with 0:13:48.400 --> 0:13:50.839 Moore on what's going on around the world. Uncael, good morning, 0:13:50.880 --> 0:13:53.960 good morning here in the first ship carrying Ukrainian grain 0:13:54.040 --> 0:13:57.160 has said all from the port of Odessa. The park 0:13:57.280 --> 0:14:00.760 departure of the ship laden with corn follows an internationally 0:14:00.800 --> 0:14:04.040 broker deal to ease of growing hunger crisis, and Rick 0:14:04.040 --> 0:14:07.640 Stenson took home four million dollars from winning the controversial 0:14:07.800 --> 0:14:12.280 Live Golf's Bedminster Invitational. The Saudi Arabian funded league has 0:14:12.360 --> 0:14:17.040 drawn criticism. Tickets at former President Trump's Bedminster course we're 0:14:17.080 --> 0:14:19.760 being sold for as little as a dollar among like crowds. 0:14:20.160 --> 0:14:22.880 In baseball, the Yankees lost to the Royals eight six. 0:14:23.120 --> 0:14:25.800 The Mats won their sixth right beating the Marlins. The 0:14:25.800 --> 0:14:29.080 Red Sox down the Brewers, the Cardinals shut out the Nationals. 0:14:29.520 --> 0:14:32.280 The Reds beat the Orioles, the White Sox beat the A's, 0:14:32.360 --> 0:14:35.360 the Giants down the Cubs. Bill Russell, who was the 0:14:35.360 --> 0:14:39.040 cornerstone of the Boston Celtics basketball dynasty in the fifties 0:14:39.040 --> 0:14:42.280 and sixties, has died. He was eight global news twenty 0:14:42.280 --> 0:14:45.120 four hours a day on air and on Bloomberg Quick Take, 0:14:45.360 --> 0:14:48.440 powered by more than seven hundred journalists and analysts more 0:14:48.440 --> 0:14:52.800 than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Michael, 0:14:52.840 --> 0:14:54.960 thank you. It's almost five twenty on Wall Street Life 0:14:54.960 --> 0:14:58.160 from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, 0:14:58.200 --> 0:15:00.360 and as we kick off this new trading month, we 0:15:00.440 --> 0:15:03.080 are very pleased to be joined this morning by Dennis Gartman, 0:15:03.400 --> 0:15:06.360 chairman of the University of Akron Endowment Investment Committee, of 0:15:06.400 --> 0:15:09.080 course former publisher of the Gartment Letter. Always great to 0:15:09.080 --> 0:15:11.200 speak with you, Dennis, And as we heard from Karen 0:15:11.200 --> 0:15:14.280 Moscow just a moment ago, we are coming off the 0:15:14.320 --> 0:15:16.560 best month for U S stocks in about a year 0:15:16.560 --> 0:15:19.080 and a half. Here where do you see the momentum 0:15:19.280 --> 0:15:23.760 for risk assets as we head into August? Well, May 0:15:23.840 --> 0:15:26.280 than I've embarrassed since the January five this year, and 0:15:26.320 --> 0:15:29.160 as the chairman of the University of Ackman's Endowment, I 0:15:29.200 --> 0:15:31.920 got the endowment to move about twelve of our portfolio 0:15:32.000 --> 0:15:36.560 out of stocks and thus far than fortunately correct. But 0:15:36.640 --> 0:15:38.840 I have to admit something that seems to be changing 0:15:38.880 --> 0:15:42.120 psychologically in the market. I had been paying attention to 0:15:42.160 --> 0:15:44.200 the fact of the late last year and through most 0:15:44.200 --> 0:15:46.520 of this year that the rallies have occurred on the 0:15:46.920 --> 0:15:49.560 on declining volume and the breaks had come in on 0:15:50.040 --> 0:15:53.520 increasing volume. And as a technician, first of all, technicals 0:15:53.520 --> 0:15:56.440 always tend to leave the fundamentals in stock markets. They 0:15:56.480 --> 0:15:58.960 tend to leave the psychology in the stock market. And 0:15:59.000 --> 0:16:01.360 the fact that Marcus would going down on big volume 0:16:01.400 --> 0:16:04.520 and rising on lesser volume was bearish, but in the 0:16:04.520 --> 0:16:06.160 course of the past month and a half or so, 0:16:06.600 --> 0:16:09.600 we've actually begun to see that shift. So I've changed 0:16:09.640 --> 0:16:13.160 my my perspective from being overtly barished being at least 0:16:13.160 --> 0:16:15.840 neutral in the stock market. I must admit I was 0:16:15.920 --> 0:16:18.080 rather surprised by a nine percent gain in in in 0:16:18.160 --> 0:16:20.720 growth stocks last month, and I was a little surprised 0:16:20.720 --> 0:16:25.640 to see growth stocks advanced demonstrably stronger than the value stocks. 0:16:26.160 --> 0:16:28.880 So I have to admit that I'm I'm changing my 0:16:28.880 --> 0:16:32.000 my my terminology and my investment philosophy from being overly 0:16:32.040 --> 0:16:34.720 barished to being at least neutral. We're a little over 0:16:34.760 --> 0:16:36.880 bought in the short term. We may have a little 0:16:36.880 --> 0:16:38.480 bit of a correction, but today is the first day 0:16:38.480 --> 0:16:40.360 of the month, and we're probably gonna see the stock 0:16:40.400 --> 0:16:43.080 market trade higher today just because the first and second 0:16:43.160 --> 0:16:45.720 days of the month always see inflows of capital into 0:16:45.720 --> 0:16:49.920 retirement accounts. So we're in go ahead. What are the 0:16:49.960 --> 0:16:52.600 technicals you're looking at that it made you change your view, Dennis. 0:16:53.240 --> 0:16:55.720 The fact that we're going up now, at least in 0:16:55.760 --> 0:16:57.480 the past month and a month or so, we're going 0:16:57.600 --> 0:16:59.920 up on better volume and going down on lesser all 0:17:00.080 --> 0:17:03.080 which is a change in attitude and changing in philosophy, 0:17:03.080 --> 0:17:05.840 a change in style and changing demeanor. So that's the 0:17:05.880 --> 0:17:08.399 first thing I watch volume more than anything else. In 0:17:08.520 --> 0:17:10.320 the volume seems to be coming in on the upside. 0:17:10.720 --> 0:17:14.199 That's a good sign in terms of FED policy. Do 0:17:14.240 --> 0:17:16.320 you think that momentum can continue if we have if 0:17:16.320 --> 0:17:19.440 we see a tighter FED. We did hear from a 0:17:19.560 --> 0:17:23.240 number of FED policymakers saying that they've got a long 0:17:23.280 --> 0:17:25.520 ways to go before they can reach that two percent 0:17:25.520 --> 0:17:28.520 inflation target, and I could potentially mean yet more rate hikes. 0:17:29.200 --> 0:17:31.120 There's no question there'll be more rate hikes, at least 0:17:31.119 --> 0:17:33.639 seventy five basis points in September and maybe fifty basis 0:17:33.640 --> 0:17:36.320 points in the November meeting. No question they have to 0:17:36.400 --> 0:17:37.919 they have to follow through and what they said they 0:17:37.920 --> 0:17:41.480 were going to do in order to regain credibility, which 0:17:41.520 --> 0:17:44.560 they've lost with the idea of transitory inflation that was 0:17:44.600 --> 0:17:46.800 incumbent in their in their commentaries for the course of 0:17:46.800 --> 0:17:49.280 the past year or so. So there's no question rates 0:17:49.280 --> 0:17:51.679 are gonna go higher. But Marcuston Marcus have gone up 0:17:51.680 --> 0:17:54.640 on higher rates in the past, and and the races 0:17:54.680 --> 0:17:58.080 have tended to be a lagging indicator. So the fact 0:17:58.119 --> 0:18:00.080 that the FED is going to continue to tie and 0:18:00.600 --> 0:18:03.840 take nine billion dollars per month out of its basic 0:18:03.960 --> 0:18:07.119 out of its assets it's balance sheet tells you that 0:18:07.160 --> 0:18:10.240 the fuel that had supplied the stock market is being 0:18:10.240 --> 0:18:13.680 taken away. But that's already understood and has been well 0:18:13.760 --> 0:18:15.639 stated by the Fed. So rates are gonna go higher, 0:18:15.640 --> 0:18:19.439 no question. It's just amoutter of time. Seventy five basis 0:18:19.440 --> 0:18:22.920 points in September and another fifty basis points in November. 0:18:23.160 --> 0:18:26.000 We'll see what happens after that. What's your outlook on earnings? 0:18:26.000 --> 0:18:29.560 In our last minute here? Can companies continue to power 0:18:29.640 --> 0:18:33.760 through the headwinds that that have been out there? The 0:18:33.800 --> 0:18:36.480 manufacturing industries can? Banks will have a hard time to 0:18:36.560 --> 0:18:38.600 inverted eel curve, And the eel curve is now inverted 0:18:38.640 --> 0:18:40.520 and probably going to get more inverted before the end 0:18:40.520 --> 0:18:42.720 of the year. Bank arning has made the under pressure, 0:18:42.760 --> 0:18:45.320 but manufacturing earnings going to probably continue to do quite well, 0:18:45.359 --> 0:18:49.560 to be quite honest. Dennis Gartman, former publisher of the 0:18:49.560 --> 0:18:52.000 Gartment Letter, now the chairman of the University of Akron 0:18:52.119 --> 0:18:55.600 Endowment Investment Committee, with us this morning as we get 0:18:55.680 --> 0:18:58.520 ready to kick off this new trading month of August, 0:18:58.520 --> 0:19:03.200 shifting his perspective going neutral on stocks now, Dennis, as always, 0:19:03.240 --> 0:19:05.399 thanks for your time, really appreciate it. Looking ahead to 0:19:05.440 --> 0:19:07.879 the market open this morning, we have futures moving a 0:19:07.960 --> 0:19:11.680 touch lower. SMP futures right now down eleven points down, 0:19:11.720 --> 0:19:15.359 futures down fifty two. NASDAC futures are lower by thirty 0:19:15.400 --> 0:19:18.600 six points. Germany's decks the CAC in Paris both higher 0:19:18.720 --> 0:19:21.400 by three tents of one percent. Ten Your treasury right 0:19:21.400 --> 0:19:24.200 now down five thirty seconds. The yield two point six 0:19:24.240 --> 0:19:26.399 six percent on the tenure note and the yield on 0:19:26.440 --> 0:19:29.760 the two year right now UH two point nine one percent. 0:19:30.280 --> 0:19:32.760 Nimex screwed moving lower by one point nine percent, down 0:19:32.760 --> 0:19:35.680 to dollar ninety six dollars seventy one cents a barrel. 0:19:35.720 --> 0:19:40.680 Comix Gold little changed up ten cents at nine announce UH. 0:19:40.720 --> 0:19:42.920 The euro right now one point zero two five five 0:19:42.960 --> 0:19:45.600 against the dollar, British pound one point two to three nine, 0:19:45.680 --> 0:19:48.520 the yen is at one thirty two point three three, 0:19:48.560 --> 0:19:51.560 and Bitcoin down one point nine percent on the session 0:19:51.560 --> 0:19:55.320 at twenty three thousand, three hundred dollars just to head. 0:19:55.359 --> 0:19:57.840 More on recession risk in this market and is boom 0:19:57.880 --> 0:20:00.800 time back in the shail patch. That's your top stories 0:20:00.800 --> 0:20:07.840 of the morning. Just ahead on Bloomberg Daybreak, Bloomberg eleven 0:20:07.920 --> 0:20:10.400 three oh weather morning showers and turning mostly cloudy today 0:20:10.400 --> 0:20:12.520 with the high your eighty degrees will be near ninety 0:20:12.640 --> 0:20:16.080 tomorrow with the chance for an afternoon shower, thundershower, sunny 0:20:16.080 --> 0:20:18.800 and hot Wednesday high near ninety right now sixty nine 0:20:18.840 --> 0:20:26.000 in Central Park. Broadcasting live from the Bloomberg Interactive Broker's 0:20:26.000 --> 0:20:29.440 studio in New York, Bloomberg E living free to Washington, 0:20:29.480 --> 0:20:32.920 d C, Bloomberg nine one to Boston, Bloomberg one O 0:20:33.160 --> 0:20:36.640 six one to San Francisco, Bloomberg nine sixty to the country, 0:20:36.720 --> 0:20:39.359 Sirius XM to the one nine team, and around the 0:20:39.359 --> 0:20:43.199 globe the Bloomberg Business app in Bloomberg Radio dot Com. 0:20:43.240 --> 0:20:52.359 This is Bloomberg Daybreak. It's five thirty on Wall Street. 0:20:52.359 --> 0:20:55.159 Good morning. I'm Nathan Hagar and I'm Karen Moscow. We 0:20:55.200 --> 0:20:57.560 are just about four hours away from the open of 0:20:57.680 --> 0:20:59.439 US trading. Let's get you up to date on the 0:20:59.440 --> 0:21:01.920 news you need to know at this hour. US futures 0:21:01.960 --> 0:21:04.639 are lower this morning as we kick off a new month. 0:21:04.920 --> 0:21:08.320 Looking ahead to Friday's jobs report, to Bay continues on 0:21:08.359 --> 0:21:11.920 the health of the US economy. Region Atlantic Capital chief 0:21:11.960 --> 0:21:15.240