Speaker 1: Nathan. Thanks five o seven on Walls Free Time to
Speaker 1: bring in Michael Barne out with more on what else
Speaker 1: is going on in New York and around the world. John,
Speaker 1: thank you very much, sir. The bad news the heat
Speaker 1: wave continues in the Tri State area. The good news
Speaker 1: it ends tonight. Bloomberg meteorologist Rob Caroline has the latest.
Speaker 1: Good morning, Michael, we have a heated vistory and effect
Speaker 1: for the Tri State area until eight pm this evening.
Speaker 1: Heat advised me though the last one of the week.
Speaker 1: It looks like temperatures are gonna cool off quite a
Speaker 1: bit as we head to the remainder of the week.
Speaker 1: Today we're up around ninety five Tomorrow, it's eighty five
Speaker 1: and eighty five again on Thursday, than only five on Friday,
Speaker 1: with much less humidity, so we're definitely gonna be breaking
Speaker 1: the heat wave, Michael. Thanks for Rob. Con Ed is
Speaker 1: asking residents and parts of Brooklyn and Queens to curb
Speaker 1: their energy use as high heats herees New York City.
Speaker 1: The utility asked homes and businesses and the affected areas
Speaker 1: to refrain from using power hungry appliances, including washers, dryers,
Speaker 1: and microwaves until the crew completes repair airs, and also
Speaker 1: requested that presidents only use one air conditioner. President Biden
Speaker 1: extended help and the FEMA check book to flood soaked
Speaker 1: eastern Kentucky as he visited storm damaged areas. The president
Speaker 1: toward water demolished neighborhoods, where he immediately issued federal disaster
Speaker 1: declarations so they could rebuild from last week's deadly storms.
Speaker 1: After meeting with families impacted by the flooding in the
Speaker 1: town of Lost Creek, President Biden says he will be
Speaker 1: back to help them rebuild from the flooding. All Americans,
Speaker 1: everybody has an obligation to help. We have the capacity
Speaker 1: to do this. It's not like it's beyond our control.
Speaker 1: The President also preaching unity in the response to the disaster.
Speaker 1: The Pentagon says it believed that as many as eighty
Speaker 1: thousand Russian troops have been killed or wounded and under
Speaker 1: six months of fighting in Ukraine. Under Secretary of Defense
Speaker 1: from Policy Colin cull says, it's pretty remarkable considering that
Speaker 1: the Russians have achieved none of Vladimir Putin's objectives at
Speaker 1: the getting of the war. China has extended military drills
Speaker 1: near Taiwan's airspace and sees today Taiwan says China is
Speaker 1: using war drills to plan a future invasion. Beloved actress
Speaker 1: and singer Olivia Newton John has died. She was famous
Speaker 1: for her hits like letting Me Be There, Physical and
Speaker 1: her breakout role in Greece. Olivia Newton John was seventy
Speaker 1: three Global News twenty four hours a day on air
Speaker 1: and on Bloomberg Quicktake, powered by more than twenty seven
Speaker 1: hundred journalists and analysts more than a hundred twenty countries.
Speaker 1: Michael barn this is Bloomberg, John Michael, thank you, guys.
Speaker 1: I'll find Tanda all wall Street. That's time for the
Speaker 1: Bloomberg Sports Update. And good morning, John Stash all Right,
Speaker 1: good morning, John Tucker. When the Yankees were flying high
Speaker 1: first half of the season, they were relatively healthy. That's
Speaker 1: no longer the case, John Carla Stanton on the injured list,
Speaker 1: those Luis sevareno, Michael King done for the year. And
Speaker 1: last night in Seattle, Matt kar Finger foul the ball
Speaker 1: off his foot. It's a fracture that might end what's
Speaker 1: been a remarkable season for Carpenter. He had hit only
Speaker 1: seven home runs over his previous two seasons. He joined
Speaker 1: the Yankees in late May. His slugging percentage since then
Speaker 1: is the best of the major leagues. Yankee beat the
Speaker 1: Mariners nine to four to end a five game loving three.
Speaker 1: Josh Donaldson was his best game of the season. Two doubles,
Speaker 1: a home run. He drove in three, so did Andrew
Speaker 1: Benn and Tendie, who had struggled since his acquisition. Jamison
Speaker 1: Tyn won seventens, allowed only three hits. He's now eleven
Speaker 1: and two. And City Field Mets beat the Reds. They
Speaker 1: made a thirteen of their last fifteen to run homer
Speaker 1: in the first anybody Darling Marte and the Mets put
Speaker 1: it away in the eighth. The pitch sw'ar gonna drive
Speaker 1: deep too, right back those at Kino under the track
Speaker 1: here the fence reaches up. If bounces off his glove.
Speaker 1: If the score from seconders tata here comes big deal
Speaker 1: around third to score take it for third. A stink.
Speaker 1: He's in with a triple. And that's how a five
Speaker 1: to work play. And that was the final w CBS
Speaker 1: to call the Tyler nake from triple. Chris Bassett worked
Speaker 1: eight in did not allow an earned run. The Let's
Speaker 1: now lead the Braves by seven games. That key Jet
Speaker 1: has suffered an injury training game Tapla McKay Beckton heard
Speaker 1: his knee, same one that kept him out last season.
Speaker 1: He had an m R I now headed for further tests.
Speaker 1: An eventful day for the Giants. Several fights broke out
Speaker 1: that does sometimes happen at training camp. Linebacker Take Crowder
Speaker 1: and center John Feliciano among those involved. Giants have their
Speaker 1: preseason opener Thursday at New England. John stashually went Bloomberg
Speaker 1: spots John, all right, thanks John, and just the cash
Speaker 1: open Wall Street. Down futures right now, they're up sixty
Speaker 1: seven points. He has to be evening futures up about
Speaker 1: eight points and an asset features twelve points higher. And
Speaker 1: as we look at the two year yield three twenty one,
Speaker 1: the ten year to seventy eight, this is Bloomberg. Dame
Speaker 1: Brad just a Hand will speak with Wendy Schiller to
Speaker 1: enter the Talment Center for American Politics and Policy at
Speaker 1: Around University for analysis and perspective on the FBI raid
Speaker 1: At the former President's Maral longer was State Markets, headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com, The Bloomberg Business at and at Bloomberg Quicktake,
Speaker 1: She's a Bloomberg Business Flash, Nathan Hagar. Futures are holding
Speaker 1: steady this morning. The dollar is slipping as investors bet
Speaker 1: strong earnings can continue despite recent disappointments. We check the
Speaker 1: markets every fifteen minutes during the trading day on Bloomberg.
Speaker 1: SMP futures right now have seven points. Stout futures are
Speaker 1: hired by sixty nine NASDAC futures, a gain of eleven points.
Speaker 1: The tenure Treasury is down seven thirty seconds. The yield
Speaker 1: two point seven eight percent. Yield on the two year
Speaker 1: is three point to one percent. Nimex Screwed is down
Speaker 1: one point two percent, down a dollar eleven at eighty
Speaker 1: nine dollar sixty five cents. A barrel. Comic Gold is
Speaker 1: up one tenth percent or two dollars fifty cents at
Speaker 1: eighteen o seven seventy an ounce. The euro one point
Speaker 1: zero two four five against the dollar. The en is
Speaker 1: at one thirty four point nine zero. That's a Bloomberg
Speaker 1: is this flash? Now? Here's Michael Barr with more on
Speaker 1: what's going on around the Girl Up the morning, Michael,
Speaker 1: Good morning, Nathan. The FBI has searched former President Donald
Speaker 1: Trump's from Mamara Lago with State as part of an
Speaker 1: investigation into whether he took classified records from the White
Speaker 1: House to his Florida residents. Trump says agents opened up
Speaker 1: a safe at his home and describes their work as
Speaker 1: an unannounced raid that he likened to prosecutorial misconduct. Will
Speaker 1: have more on this straight Ahead. Teachers and staff returned
Speaker 1: to work today at public schools in Yuvoldi, Texas. It
Speaker 1: follows the deadly mass shooting in May at rob Elementary School.
Speaker 1: In baseball, the Yankees beat the Mariners nine four, The
Speaker 1: Mets beat the Reds five one, the Nationals and A's lost.
Speaker 1: The Orioles and Giants won Global news twenty four hours
Speaker 1: a day on air and on Bloomberg Quick Take, powered
Speaker 1: by more than twenty seven hundred journalists and analysts and
Speaker 1: more than a hundred twenty countries. Michael Barr and this
Speaker 1: is Bloomberg, John and Michael, thank you, five nineteen at
Speaker 1: Wall Street. We are in live from the Bloomberg into
Speaker 1: Anto Broker Studios. This is Bloomberg Daybreak. As Michael mentioned,
Speaker 1: stunning development and the ongoing legal battles involving former President Trump.
Speaker 1: For the first time in history, a search warrant executed
Speaker 1: at the home of a former president, and let's find
Speaker 1: out more this morning, joined by Joe Matthew, the host
Speaker 1: of Bloomberg's Sound On. Joe, thanks for me with us.
Speaker 1: There are a couple of ways that the law enforcement
Speaker 1: can get stuff that they want, either through a subpoena
Speaker 1: or a search warrant, and the distinction is important here,
Speaker 1: Well it is, and this is you know, we want
Speaker 1: to be careful here in the way we're framing this.
Speaker 1: People are using the word raid because that's what Donald
Speaker 1: Trump called it in his statement to the media last night.
Speaker 1: This was a search warrant facilitated by the Secret Service,
Speaker 1: So I just want to be clear. They weren't knocking
Speaker 1: down doors, there were no battering rams. People were not
Speaker 1: taken into custody. And this brings us back to January
Speaker 1: when the National Archives first went in to retrieve fifteen
Speaker 1: boxes at that point of documents and items from our
Speaker 1: a lago that should have been turned over when Trump
Speaker 1: left the White House. At that time, they said they
Speaker 1: were continuing to search for additional records, and they have
Speaker 1: been asking the Trump former White House, the former administration
Speaker 1: to hand these over ever since. So what we saw yesterday,
Speaker 1: just to be clear, was was a very deliberate search
Speaker 1: facilitated by the Secret Service, approved by a judge. And
Speaker 1: you cannot get a search warrant like this unless you
Speaker 1: not only make the case of probable cause, but you
Speaker 1: also have to be specific about what you are looking for. Now,
Speaker 1: granted they took a lot of boxes out of there,
Speaker 1: they got into the safe, they could be looking for
Speaker 1: as little as one document, as far as we know,
Speaker 1: if it is top secret, that's all it would take
Speaker 1: to trigger that search yesterday. Is it implicit that not
Speaker 1: going the root of a subpoena, they thought that they
Speaker 1: wouldn't get it. Otherwise that's possible. We don't know this.
Speaker 1: We have to remember, of course, that there have been
Speaker 1: a lot of reports about Donald Trump disposing of documents,
Speaker 1: tearing them up, flushing them down the toilet, and in fact,
Speaker 1: some of the documents that were provided to the National
Speaker 1: Archives at the beginning of the year, as I mentioned
Speaker 1: in January uh in fact had been taped back together,
Speaker 1: they were torn up, thrown away, and they had to
Speaker 1: be reconstructed at the White House. All of that violates
Speaker 1: the Presidential Records Act. Do we know what the documents
Speaker 1: they were looking for possibly relate to? We We really don't.
Speaker 1: And this is where it gets interesting here, Like, look,
Speaker 1: just about every administration people should also understand this have
Speaker 1: had some violation of the Presidential Records Act. The Washington
Speaker 1: Post reminds us this morning, Bill and Hillary Clinton had
Speaker 1: to return twenty eight thousand dollars in furnishings that they
Speaker 1: said we're gifts were actually property of the White House.
Speaker 1: We've just never seen anything on this scale. So it
Speaker 1: does imply that this is important. This is a top
Speaker 1: secret memo, It could be a series of documents, and
Speaker 1: it also John could be tied potentially to the Department
Speaker 1: of Justices January six investigation. That remains completely unclear to us.
Speaker 1: And we have to be honest about how little we know. Okay,
Speaker 1: so what is the former president and what are his
Speaker 1: supporters saying at this point? Well, it's know it's a
Speaker 1: doom scroll. This morning on Twitter, Kevin McCarthy was quick
Speaker 1: to tweet, this is the Minority leader that he promises
Speaker 1: an investigation into this. He will be specifically investigating Merrick Garland.
Speaker 1: He tweeted to him, he said, put the date on
Speaker 1: your calendar, assuming that he becomes speaker after the mid terms.
Speaker 1: New oversight to the FBI Marjorie Taylor Green among others. Uh,
Speaker 1: in Trump's uh ecosphere, if you will, are calling for
Speaker 1: defunding the FBI, not unlike defund the police. Now this
Speaker 1: is the new defund the FBI. Uh. Matt Gates, another
Speaker 1: Trump supporter congressman, refers to January six as the FED surrection.
Speaker 1: So this really reinforces this allergy that Trump supporters have
Speaker 1: to federal law enforcement. Well, can the former president metaphorically
Speaker 1: set fire to the Justice Department with his supporters to
Speaker 1: evade responsibility? Could I ask the question again, could he
Speaker 1: do what? Could he metaphorically set fire to the Justice
Speaker 1: Department at this point? Well, if he got reelected, I suppose,
Speaker 1: but I'm not sure. If you mean Donald Trump, I'm
Speaker 1: not sure what's way he would have over the Justice
Speaker 1: Department right now. If Republicans take the majority in the House,
Speaker 1: you're gonna see a lot of hearings. But that does
Speaker 1: not necessarily do anything to change the case for Donald Trump.
Speaker 1: And what does it do to change the case, possibly
Speaker 1: for the general election. That's a great question, and it's
Speaker 1: pretty difficult to roll out more than two years at
Speaker 1: the moment. Here. I would remind you, though, that Christopher Ray,
Speaker 1: the FBI director, was selected by President Trump after he
Speaker 1: fired Director Comey. And uh, although you would not necessarily expect,
Speaker 1: you know, such a bold move a hundred days before
Speaker 1: the midterm elections for violating the Presidential Records Act, never
Speaker 1: mind the elections. All right, Joe, thanks very much. Well,
Speaker 1: before you go, what do we look for next? Well, gosh,
Speaker 1: that's a great question. Look, Donald Trump would also it
Speaker 1: strikes me have a copy of that warrant. I think
Speaker 1: that we will. We will have to learn at some
Speaker 1: point what it is they were looking for. But knowing
Speaker 1: that they have laptops, hard drives, documents, and so fourth,
Speaker 1: there's gonna be weeks, if not months of downloading and
Speaker 1: ingesting data, could be some time before we understand, unless,
Speaker 1: of course, the FBI is a little leaky, and then
Speaker 1: we might know as soon as today. Joe, always a pleasure,
Speaker 1: appreciate it, Joe Matthew host a Bloomberg Sound Dot. As
Speaker 1: we look at markets right now ahead of the cash
Speaker 1: open on Wall Street. The futures indicate the higher open
Speaker 1: the dowl right now Dale futures of sixty one points,
Speaker 1: that's a rise of two tents of a percent. Smp
Speaker 1: E many futures there are up six points, that's up
Speaker 1: to tens of a percent. And the tech heavy nazac
Speaker 1: E many futures right now four points higher. And as
Speaker 1: we look at treasuries, the two year you have three,
Speaker 1: twenty two, the ten year year to seventy eight. You
Speaker 1: are listening to Bloomberg Daybreak. Day Break brought to you
Speaker 1: by Pepack Private Wealth Management. Pepack Private Wealth Management knows
Speaker 1: that a portfoligo is more than a collection of assets.
Speaker 1: It's a path to your future. Because the Pepack Private
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Speaker 1: to Washington, d C. Bloomberg to Boston, Bloomberg one O
Speaker 1: six one to San Francisco, Bloomberg No. Sixt to the Country,
Speaker 1: Sirius XM Chado one nine team and around the globe,
Speaker 1: the Bloomberg Business app and Bloomberg Radio dot Com. This
Speaker 1: is Bloomberg Daybreak. He has five thirty on Wall Street.
Speaker 1: Good morning, I'm John Tucker and I'm Nathan Hagar. We
Speaker 1: are about four hours away from the open of US trading.
Speaker 1: Let's get you have the data on the news you
Speaker 1: need to know at this hour. Beginning with a stunning
Speaker 1: political development overnight, former President Donald Trump says federal agents
Speaker 1: rated his residence at Mara Lango. It's part of an
Speaker 1: investigation into whether the former president took classified documents from
Speaker 1: the White House. We get analysis from Robert Mints, partner
Speaker 1: at mcarter and English. It's absolutely shocking and completely unprecedented.
Speaker 1: This to require approval from the highest levels of the
Speaker 1: Department of Justice. Merrick Garland, the Attorney General himself, would
Speaker 1: certainly have had to have been a part of this decision,
Speaker 1: and I've signed off on this before going to a
Speaker 1: federal judge. Attorney Robert Mint says the search warrant has
Speaker 1: quote the nuclear bomb in the arsenal of prosecutors. The
Speaker 1: search stems from a National Archives request about the transfer
Speaker 1: of presidential documents tomorrow lago and we get more from
Speaker 1: Bloomberg political contributor former GOP strategist Rick Davis. There is
Speaker 1: a penalty associated with violating this provision. It says that
Speaker 1: if you're convicted of violating this rule of holding these documents,
Speaker 1: especially top secret documents, you'll forfeit your office and be
Speaker 1: disqualified from holding any other office under the United States.
Speaker 1: Rick Davis sends this investigation adds to the former president's
Speaker 1: legal worries, which include a separate grand jury probb efforts
Speaker 1: to overturn the twenty election. Donald Trump anytimes says he's
Speaker 1: being targeted to a rail another run for the White House.
Speaker 1: More on this developing story throughout the morning here on
Speaker 1: Bloomberg Radio. But first, let's turn to the markets for
Speaker 1: a moment. Right now, we have futures. They are mixed,
Speaker 1: amptery yesterday's session. What saw on the SMP five punder
Speaker 1: give up a one percent game to close little change.
Speaker 1: Treasury yields are higher, Stocks in Europe and Asia are mixed,
Speaker 1: and the dollar weakening this morning. Shares of Novovas genre
Speaker 1: down about thirty percent in early trading. That's after the
Speaker 1: drugmaker slashed its revenue forecast. Bloomberg's Ornita Young joins its
Speaker 1: live with the details. Good morning, Grenita, Good morning, Nathan.
Speaker 1: Novavax expects sales this year to be between two billion
Speaker 1: and two point three billion dollars. That's about half of
Speaker 1: the earlier estimate of four billion to five billion dollars
Speaker 1: for the year. And it's all because it's COVID nineteen vaccine,
Speaker 1: which already trailed competitors getting to market, failed to live
Speaker 1: up to expectations. Demand for its vaccine fell both in
Speaker 1: the US and globally. Novovax also reports second quarter losses
Speaker 1: wider than analyst xtations. Live in New York, I'm gonna
Speaker 1: need a young Bloomberg daybreak. We need to thank you.
Speaker 1: Futures are mixed this morning, SMP futures up three point,
Speaker 1: staff futures of forty seven, nastack futures down five points.
Speaker 1: Local headlines in a check of sports. Next, this is Bloomberg, alright,
Speaker 1: Thanks on Wall Street. Time to bring in Michael Barr
Speaker 1: with Moore of what else is going on in New
Speaker 1: York and around the world, John, thank you very much.
Speaker 1: Sarah Khan ed as asking residents and parts of Brooklyn
Speaker 1: and Queens to curb their energy use as high heat
Speaker 1: sears New York City. The utility reduced voltage by eight
Speaker 1: percent protect equipment while crews make unspecified repairs and several
Speaker 1: communities that are home to about a d nine thousand customers.
Speaker 1: A heat advisory is in place for the area until
Speaker 1: eight pm tonight. President Biden and First Lady Jill Biden
Speaker 1: toured the devastation in eastern Kentucky where these thirty seven
Speaker 1: people were killed during the flooding last week. After a
Speaker 1: meeting with families impacted by the flooding and the town
Speaker 1: of Lost Creek. President Biden vows to support Kentucky however
Speaker 1: long it takes to recover from the flooding. I don't
Speaker 1: want any Kentucky and telling me you don't. You don't
Speaker 1: have to do this for me. Oh yeah, we do.
Speaker 1: You're an American citizen. We never give up. We never stopped,
Speaker 1: We never bow, we never bent. We just go forward.
Speaker 1: And that's what we're going to do here. The President
Speaker 1: is sending FEMA money for people to help rebuild. China
Speaker 1: has extended a schedule of military drills around Taiwan. Bloomberg
Speaker 1: has had backs to reports the US is, saying Beijing
Speaker 1: needs to be careful. President Joe Biden says he is
Speaker 1: not worried, but is concerned, while spokesman Karine Jean Pierre
Speaker 1: says they can't continue the way they are. They are
Speaker 1: provocative and irresponsible and raise the risk of miscalculation, and
Speaker 1: Under Secretary of Defense for Policy Call and Calls says,
Speaker 1: the US is not going to pull back. What's important
Speaker 1: for US right now um is to make sure that
Speaker 1: Beijing understands that our forces in the region will continue
Speaker 1: to operate. Also as China should be very careful to
Speaker 1: protect against any miscalculations. In San Francisco, I'm at Baxter,
Speaker 1: Bloomberg Gay Break, voters would choose a Republican nominee for
Speaker 1: Wisconsin governor today. Tim Michael's, backed by former President Trump,
Speaker 1: is up against former Lieutenant Governor Rebecca Cleefish, backed by
Speaker 1: former Vice President Mike Pence. The winner faces Democratic Governor
Speaker 1: Tony Evers. Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quicktake, powered by more than twenty
Speaker 1: seven hundred journalist and analyst more than a hundred twenty countries.
Speaker 1: I'm Michael bar This is Bloomberg, John Michael, Thank you
Speaker 1: on Wall Street. That's time for the Bloomberg Sports Update.
Speaker 1: Good morning, John Stann Show. All right, John, much needed
Speaker 1: win for the Yankees They've just gotten swept in St.
Speaker 1: Louis had lost five and a row only nine wins
Speaker 1: in twenty five games. They won in Seattle nine to four.
Speaker 1: Josh Donaldson had a big game for it, two doubles,
Speaker 1: a home run, drove in three, and Aaron Judge Homer
Speaker 1: to the ninth. That's number forty four. Jamison tyone went
Speaker 1: to eleven and two. But the win is costly. Matt
Speaker 1: Carpenter broke his left foot fouling a pitch off. It's
Speaker 1: obviously not ideal. I mean, you know, treaty pretty disappointing,
Speaker 1: but uh, you know, I've my mindset is that this
Speaker 1: won't be the end for me here this year. I mean,
Speaker 1: I'm hopeful that I can come back and contribute, and
Speaker 1: you know I haven't don't have a timeline yet, but
Speaker 1: I'm hopeful for the best. Carpenter has been amazing since
Speaker 1: his debut in late May, batting over three hundred fifteen
Speaker 1: home runs. Speaking of amazing, Mets minute thirteen oh last
Speaker 1: fifteen at City Field five one over Cincinnati before the
Speaker 1: Reds got him out. That's led to nothing on the
Speaker 1: Starley Marte Homer, Chris Bassett sharp and Eightian ings of
Speaker 1: the Mets now leave the NL East by seven. At
Speaker 1: Jets training camp, tackle McKay Beckton reinjrew the knee that
Speaker 1: kept him that most of last season. Several reports that
Speaker 1: Kevin Durant met with Josiah and told the Nets owner
Speaker 1: either trade may or fire coach Steve Nash and general
Speaker 1: manager Shawn Marks, and SI has already said he's not
Speaker 1: firing them, so the trade talks continue. With Boston, Miami
Speaker 1: and Toronto scene is the most likely destinations for Durant,
Speaker 1: who has yet to start the four year, near two
Speaker 1: hundred million dollar contract he agreed to a year ago.
Speaker 1: It's not known why he wants Nash out. The feeling
Speaker 1: had always been that Katie was the one who wanted
Speaker 1: the Nets to hire him. John Stash a Bloomberg Sports
Speaker 1: John all right, John, thanks very less. He's five thirty
Speaker 1: seven old Wall Street. Time Now for the Dry and
Speaker 1: State Business Report. Here's Ed Corey. New York City's hotel
Speaker 1: industry is starting to come back from the dark days
Speaker 1: of the pandemic. Hotel occupancy tax revenue more than quadrupled
Speaker 1: to one forty million dollars from the second quarters of
Speaker 1: twenty one. Second quarter of two total near levels seen
Speaker 1: in the second quarter of two thousand nineteen, riders are
Speaker 1: not returning to New York City subways and enough numbers
Speaker 1: to stop a worsening cash crisis. Officials from the mt
Speaker 1: A planned to sit down with lawmakers and labor groups
Speaker 1: to begin negotiations on new sources of funding and cost cutting.
Speaker 1: They say it's too early to talk about specific options.
Speaker 1: In New Jersey, the governor has signed a law prohibiting
Speaker 1: tax preparers from engaging in certain practices involving refund anticipation
Speaker 1: checks and loans. It includes prohibiting preparers from requiring clients
Speaker 1: to enter into a refund anticipation check agreement to complete
Speaker 1: a tax return. At your Bloomberg Tri State Business Report,
Speaker 1: I'm Ed Corey, Thanks, said five thirty eight on Wall Street.
Speaker 1: Bloomberg Radios on the year from San Francisco to New York,
Speaker 1: London to Hong Kong, and let's check in now with
Speaker 1: their global news team for some of the top stories
Speaker 1: heard on our three hundred affiliate of radio stations around
Speaker 1: the world. I'm Steve Potaskan on k X in Los Angeles.
Speaker 1: We're talking about the co founder of Whole Foods starting
Speaker 1: a chain of vegetarian restaurants and a wellness centers, first
Speaker 1: in southern California. Um corneys ho on ktr H in Houston.
Speaker 1: Whole Foods co founder John Mackie is planning to open
Speaker 1: a chain of plant based restaurants and wellness centers and
Speaker 1: Gina Servetti and for Double Dum in Chicago. I'm reporting
Speaker 1: that new deliveries of Boeing seven Dreamliner are finally set
Speaker 1: to take off again. I'm Stephen Carol and Bloomberg d
Speaker 1: a BJ to the radio in London. We've been reporting
Speaker 1: on British retail sales rising in July, driven by higher prices.
Speaker 1: Hadds hot Weather. I'm at Corey on w T A
Speaker 1: M in Cleveland. I'm reporting Amazon has opened its Brooklyn,
Speaker 1: Ohio delivery center. It's five thirty nine on Wall Street.
Speaker 1: The following is an editorial from Bloomberg Opinion. This editorial
Speaker 1: was written by the Bloomberg Editorial Board. The Bank of
Speaker 1: England as startled analysts last week with its unexpectedly bleak
Speaker 1: assessment of the UK's medium term prospects. Its main projection
Speaker 1: shows a shallow but protracted recession with essentially no growth
Speaker 1: in output over the next three years and inflation peaking
Speaker 1: at more than thirteen percent before the end of twenty two.
Speaker 1: Officials rightly emph the size the uncertainty attached to such projections.
Speaker 1: Yet when all is said and done, one thing stands out.
Speaker 1: With Britain politically paralyzed and still awaiting the appointment of
Speaker 1: its next prime minister. This could hardly have come at
Speaker 1: a worse time. In recent weeks, the Tories contenders to
Speaker 1: lead the country have been mostly debating their rival brands
Speaker 1: of conservatism. But the UK's looming economic challenges demand practical solutions.
Speaker 1: Whichever candidate prevails in September will need to start delivering them.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash
Speaker 1: Opinion or O P I N go on the Bloomberg Terminal.
Speaker 1: This has been Bloomberg Opinion and Bloomberg Opinion editorials can
Speaker 1: be heard every week day at this time at terminal. Customers,
Speaker 1: he can read more at OP I n go. This
Speaker 1: is avery. They are futures. This morning turn mixed the
Speaker 1: down futures of SMP futures of three futures right now
Speaker 1: down seven points just ahead. Dan Morris from the begin
Speaker 1: peint parrat Ball, Markets, headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business
Speaker 1: apt and at Bloomberg Quick Tape. This He's a Bloomberg
Speaker 1: Business Flash. I'm Nathan Hagar. Futures are holding steady this morning.
Speaker 1: The dollar is slipping. His investors at a strong earnings
Speaker 1: performance can continue despite recent disappointments. European stocks are falling
Speaker 1: this morning. We check the markets every fifteen minutes during
Speaker 1: the trading day. On Bloomberg SMP futures are up five
Speaker 1: points down, futures up fifty nine. Nastack futures are lower
Speaker 1: by two points. The decks in Germany's down six tenths
Speaker 1: per cent. The cat in Paris is lower by two
Speaker 1: tenths of one per cent. The tenure Treasury is down
Speaker 1: eight thirty seconds. The yield two points set an eight
Speaker 1: percent yield on the two year three point to two percent.
Speaker 1: Nim X screwed is down eight tenths per cent, or
Speaker 1: seventy seven cents. At barrel comex sold little changed that
Speaker 1: thirty cents eighteen o five forty announced the euro one
Speaker 1: point zero to three against the dollar, the pound one
Speaker 1: point two one two two. The end is at one
Speaker 1: thirty four point nine zero a bitcoin down two percent,
Speaker 1: tree thousand, six hundred dollars. That's a Bloomberg Business Flash.
Speaker 1: Now here's Michael Varr with on what's going on around
Speaker 1: the world. Michael Nathan, thank you very much, and explosive development.
Speaker 1: Federal investigators searched the Florida residents of Donald Trump as
Speaker 1: part of an investigation and to whether he took classified
Speaker 1: documents from the White House when he left office. Trump
Speaker 1: was in New York City at the time at the search.
Speaker 1: More on this story straight ahead. The US announced four
Speaker 1: point five billion dollars in additional direct budgetary support to Ukraine.
Speaker 1: You will also add one billion dollars more in military
Speaker 1: aid drawn from existing Pentagon inventory. In baseball, the Yankees
Speaker 1: beat the Mariners nine four, the Mets beat the Reds
Speaker 1: five one, The Nationals and A's lost. The Orioles and
Speaker 1: Giants won Global news twenty four hours a day on
Speaker 1: air and on Bloomberg Quicktake, powered by more than twenty
Speaker 1: seven hundred journalists antilists. More than a hundred twenty countries.
Speaker 1: Michael barn this is Bloomberg. Nathan. Okay, Michael, thank you.
Speaker 1: We're coming up to five forty nine on Wall Street
Speaker 1: Line from the Bloomberg Interactive Burger Studios. This is Bloomberg
Speaker 1: Day Break time now for our daily Bloomberg Law Brief,
Speaker 1: exploring legal issues in the news, and today we are
Speaker 1: looking at the FBI search of former President Donald Trump's
Speaker 1: Marrow Lago residents. Agents come through his Florida home as
Speaker 1: part of an investigation into whether he took classified documents
Speaker 1: from the White House. For more on the legal and
Speaker 1: political implications, Bloomberg's June Grosso speaks with Robert Mints, partner
Speaker 1: at McCarter in English, and Bloomberg political contributor Jeanie Schanzano.
Speaker 1: Let's listen in. People have criticized Merrick Garland, the Attorney General,
Speaker 1: for going too slow on this investigation. He keeps saying
Speaker 1: that no one is above the law. Is this a
Speaker 1: signal I think there's no turning back from this that
Speaker 1: the gloves are off? Oh? Yes, this really raises the
Speaker 1: bar for federal prosecutors, which is about to suggest that
Speaker 1: every time a search warrant is executed that there will
Speaker 1: necessarily be federal charges brought down the road. Remember that
Speaker 1: this only means that there was probable cause of a
Speaker 1: violation of federal law at a particular location. But probable
Speaker 1: cause is a long way from beyond a reasonable doubt,
Speaker 1: which is what prosecutors would have to satisfy in order
Speaker 1: to charge the former president or frankly, anybody else with
Speaker 1: a crime based upon this evidence. So it's a tool
Speaker 1: that prosecutors used to gather evidence. But on the other hand,
Speaker 1: it is the most intrusive and heavy handed tool that
Speaker 1: prosecutors have in order to gather evidence. And again, it's
Speaker 1: not something that a judge will sign off on lightly.
Speaker 1: He or she would have to be satisfied that not
Speaker 1: only the evidence was there, but there was some basis
Speaker 1: to a too that a less intrusive means such as
Speaker 1: as Satina, would not give the prosecutors the evidence they
Speaker 1: are seeking. Jenny, I'm wondering, looking at the statement that
Speaker 1: Trump has written, does he see this as a political
Speaker 1: opportunity He does? I mean, I think this is part
Speaker 1: of the sunny aspect of this is that this information
Speaker 1: was released by Donald Trump via his pack and much
Speaker 1: of what we're hearing, and we have heard for some
Speaker 1: time is that if he decided to announce early that
Speaker 1: he was going to run for the presidency in four
Speaker 1: it was likely going to be for legal reasons and
Speaker 1: not necessarily for political reasons. And you know, another aspect
Speaker 1: of this, and again this is so early, we have
Speaker 1: to be very careful here, is that if there was
Speaker 1: a conviction as it pertained to what we think that
Speaker 1: they are looking into regarding these records, the person who
Speaker 1: was charged and if that was Donald Trump at the
Speaker 1: big if would not be able to run for office
Speaker 1: in the future. So that's another really really important aspect
Speaker 1: of this story. And again I don't want to get
Speaker 1: too far afield because of course we're still very early
Speaker 1: and don't have a lot of information as to exactly
Speaker 1: what they were looking for, and even if it pertained
Speaker 1: to the president, if there was going to be, you know,
Speaker 1: anything pertaining to him. But that's another aspect of this
Speaker 1: record sort of charging. And that was Bloomberg political contributor
Speaker 1: Jeanie Schanzano and McCarter and English partner Robert men speaking
Speaker 1: with Bloomberg's June Gross catch More plus analysis of the
Speaker 1: latest legal news by subscribing to the Bloomberg Law podcast
Speaker 1: or downloading the show at Bloomberg dot com, Slash podcasts,
Speaker 1: and attorneys can find exceptional legal research and business development
Speaker 1: tools at Bloomberg Law dot com and on the Bloomberg
Speaker 1: terminal at b Law. Go John, all right, Nathan, thanks
Speaker 1: very much. It is five fifty two on Wall Street.
Speaker 1: Let's shift our focus now to the markets futures. They
Speaker 1: have turned mixed, too little change as traders to wait
Speaker 1: Wednesday's inflation report, trying to gauge the path of the
Speaker 1: federal reserve tightening ahead. Well, let's get you set up
Speaker 1: this morning for the trading day ahead with Daniel Morris,
Speaker 1: the chief market strategist at PMB Paraba. Good to talk
Speaker 1: to you. Thanks for me with US. Rate expectations have jumped,
Speaker 1: so why hasn't it resulted in the reversal inequities. Yeah,
Speaker 1: that's what's interesting about what occurred so far. Certainly in
Speaker 1: contrast to the pattern that we had at the beginning
Speaker 1: of the year. Then the story was higher than expected inflation,
Speaker 1: higher levels of FED fund raids, and then certainly a
Speaker 1: compression in the multiples, notably for gross stalks. That's not
Speaker 1: happening yet, but it seems to me still the clearest
Speaker 1: risk out there. You know, it'd be great if we
Speaker 1: got a pleasant inflation surprise on Wednesday, that the numbers
Speaker 1: came in lower than expectations. That hasn't happened in a
Speaker 1: very long time. But barring that, even if they come
Speaker 1: in as expected, that number is still pretty high. It's
Speaker 1: going to be over six percent for core uh core
Speaker 1: inflation core CPI, which then suggests the Fed has got
Speaker 1: to do more, and they've been signaling that anyway, and
Speaker 1: the markets generally just seemed to ignore that. But that's
Speaker 1: the key risk, and at the end of the day,
Speaker 1: it's how much companies are making. As far as the
Speaker 1: earnings analysis goes, it has not been a bad earning season.
Speaker 1: What is your take, Well, it wasn't certainly not a
Speaker 1: great season, but there were so many worries coming in.
Speaker 1: You know, certainly a lot of people anticipating bigger margin
Speaker 1: squeezes given how high inflation has been and all of
Speaker 1: the problems. We know that you have still supply chains
Speaker 1: and labor, but earnings, you know, still being expectations just
Speaker 1: a parenthesis, though they were even better in Europe, and
Speaker 1: that doesn't happen very often. So when a highlight the
Speaker 1: fact that European corporates again even with the bigger head
Speaker 1: winds arguably that they face, also did much better than expected.
Speaker 1: And I think that's what supporting the markets now despite
Speaker 1: the rate rise. It's just we'll see how long that
Speaker 1: after effect from a good earning season last. When we're
Speaker 1: gonna have otherwise what we think is going to be
Speaker 1: kind of persistently rising expectations for policy rates, and expectations
Speaker 1: for policy rate will also drive the dollar presumably higher
Speaker 1: because it is about rate differentials. And what does that
Speaker 1: do to the multinationals in the US. Does it mean
Speaker 1: you favor more domestically oriented stocks. I mean that makes sense,
Speaker 1: and I think it is also part of the explanation
Speaker 1: for how well European companies did because with the week hero,
Speaker 1: you know, certainly being able to export at better prices.
Speaker 1: But then for US companies, it would argue for an
Speaker 1: orientation towards domestic oriented perhaps small cap stocks, uh that
Speaker 1: they're not going to be facing that currency headwind. Okay,
Speaker 1: the c P I tomorrow, what is that going to
Speaker 1: signal as to where the FED has to go? Are
Speaker 1: we anywhere near peak inflation in the United States, Well,
Speaker 1: we should be, but we also need to be careful
Speaker 1: about focusing too much on the current monthly invation. I mean,
Speaker 1: don't forget that monetary policy works with the twelve eighteen
Speaker 1: month last. So what the head's already done, We're really
Speaker 1: not going to see the full effect of that for
Speaker 1: probably a year. So if and we don't think the
Speaker 1: head is doing this, but we also don't want to
Speaker 1: think that, you know, depending on the number we get
Speaker 1: this month, that that should lead to a big change
Speaker 1: in the policy. They've got to calibrate what they're doing
Speaker 1: now and they affected that on inflation and a year
Speaker 1: from now, and you know, just to acknowledge the challenges
Speaker 1: that they face. That's not an easy thing to do.
Speaker 1: Is there a pivot to head for starts that you
Speaker 1: see what You've got to mention at some point, given
Speaker 1: how far we think rates are going to continue to
Speaker 1: go up, you know, the whole point to that is
Speaker 1: to slow growth, because that's really the only way that
Speaker 1: they're going to be able to get inflation back down
Speaker 1: to target. You know, some of these transitory factors really
Speaker 1: should prove to be transitory, but there's still well, there
Speaker 1: is now a lot of entrenched inflation. The only way
Speaker 1: to get that down, particularly wage growth, is through slower growth,
Speaker 1: and that's got to hit profits at some point. So
Speaker 1: it's just when is the market going to start paying
Speaker 1: attention to that is really going to be the heat
Speaker 1: question in terms of performance over arguably the next year.
Speaker 1: Are there alternatives first stocks at this point? Well, yeah,
Speaker 1: that's a good alternatives that worked well exactly. Yeah, alternatives,
Speaker 1: whether they're going to go up or down? As the question, uh,
Speaker 1: you know, we're still we're actually more short duration than
Speaker 1: we were, so certainly don't see treasuries uh as as
Speaker 1: an opportunity. Uh you know, basically in terms of our
Speaker 1: equity allocations are actually outside the US. On one hand,
Speaker 1: the opportunities outside the US that this is the market
Speaker 1: where you're going to have the biggest increase in rates,
Speaker 1: you probably want to live for markets where you don't
Speaker 1: have such big increases in rates are overweights, are U T. E.
Speaker 1: M A Your China specifically in Japan. We also like
Speaker 1: Eurozone investment grade credit where you've got pretty good valuations,
Speaker 1: are high spreads relative to the risk. But you're right,
Speaker 1: it is selective at this point, perhaps having to wait
Speaker 1: for a better entry in the months ahead. Dan always
Speaker 1: a pleasure appreciated Daniel Moore's chief Market Strategies to be
Speaker 1: a be paraba with us this morning as we look
Speaker 1: ahead to the market open this morning. Futures Indicata mixed
Speaker 1: open down futures right now there are thirty eight points
Speaker 1: arisive about a tenth of a percent. The SMP Emitate
Speaker 1: futures up only a point, and the tech heavy NANCA
Speaker 1: futures right now they are down nineteen points. That's down
Speaker 1: two tenths of a percent. Ten Ure yield to seventy
Speaker 1: eight or two year at one. You're listening to Boomberg
Speaker 1: Daybreak