WEBVTT - Bloomberg Daybreak: September 7, 2022 - Hour 1 (Radio) 0:00:01.600 --> 0:00:04.920 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:04.960 --> 0:00:08.760 day Break for Wednesday, September seven. Coming up this hour, 0:00:08.920 --> 0:00:13.080 global stock slump and the dollar strengthen. Says financial conditions tighten. 0:00:13.360 --> 0:00:16.279 UK Prime Minister list Trust starts filling her cabinet and 0:00:16.320 --> 0:00:19.720 takes her first questions from Parliament. Apple prepares to unveil 0:00:19.800 --> 0:00:24.040 its latest iPhone, and California braces for potential blackhouse. Former 0:00:24.079 --> 0:00:27.280 White House strategist Steve Bennett was surrendered at face criminal 0:00:27.360 --> 0:00:30.040 churches in New York and new guidance from the White 0:00:30.040 --> 0:00:34.200 House on COVID vaccines. I'm John Tucker. Those stories straight ahead. 0:00:34.560 --> 0:00:37.280 I'm John stash Our. In sports, the Mets lost in Pittsburgh, 0:00:37.280 --> 0:00:40.480 co Co Golf and Nick Carrios both lost their quarterfinal 0:00:40.520 --> 0:00:45.120 matches last night at the US Open. That's all strain 0:00:45.200 --> 0:00:49.200 ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, 0:00:49.360 --> 0:00:54.040 Bloomberg nine one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.320 --> 0:00:58.960 Bloomberg nine sixties and Francisco Sirius x M one nine team, 0:00:59.000 --> 0:01:01.880 and around the world on Bloomberg Radio dot Com and 0:01:02.040 --> 0:01:09.039 via the Bloomberg Business app Good morning. I'm Nathan Hagar 0:01:09.400 --> 0:01:12.160 and I'm Karen Moscow in US stock index futures on 0:01:12.200 --> 0:01:14.600 the rise this morning. We're coming up to five oh 0:01:14.600 --> 0:01:16.560 one on Wall Street, and we checked the markets every 0:01:16.560 --> 0:01:19.200 fifteen minutes throughout the trading day. On Bloomberg, U S 0:01:19.240 --> 0:01:22.240 and P futures of eight points down, futures have thirty 0:01:22.280 --> 0:01:26.000 six NASDACK futures up thirty seven. The decks in Germany's 0:01:26.040 --> 0:01:28.720 down a tenth of uppercent, CAC in Paris down three 0:01:28.720 --> 0:01:30.600 tenths per cent, and the foot see one d is 0:01:30.640 --> 0:01:33.440 down about eight tenths of upper set ten. Your treasury 0:01:33.480 --> 0:01:35.720 up ten thirty seconds, you know, three point three one 0:01:35.760 --> 0:01:38.160 percent they yield on the two year three point four 0:01:38.240 --> 0:01:41.120 or five percent. Nimex screwed oil is up tenth of 0:01:41.200 --> 0:01:44.199 upper cent or sixteen cents at eighty seven dollars seven 0:01:44.280 --> 0:01:46.600 cents of barrel comex scold up two tenths per cent 0:01:46.720 --> 0:01:50.160 or two dollars seventy cents is seventeen fifteen and ninety announced. 0:01:50.480 --> 0:01:54.720 And the euro point one two against the dollar. Nathan, Karen, thanks, 0:01:54.760 --> 0:01:58.040 Stocks in Europe are falling as the US dollar continues. 0:01:58.120 --> 0:02:01.360 It's strong run. The Bloomberg Dollar Spot index hit another 0:02:01.400 --> 0:02:04.960 record overnight. That's leading to tighter financial conditions weighing on 0:02:05.080 --> 0:02:08.160 risk assets around the world. Janet Movie is head of 0:02:08.160 --> 0:02:12.359 market analysis at Ruined Dolphin. There's just disinflationary impact from 0:02:12.440 --> 0:02:15.480 strong New West older there are other disinflationary impacts for 0:02:15.600 --> 0:02:18.640 some whole low Ecelin prices, So we do think that's 0:02:18.680 --> 0:02:23.040 uh inflation is more likely to peek and slow will 0:02:23.120 --> 0:02:26.440 rapidly compared to the other economies. Janet Movie with Bruined 0:02:26.480 --> 0:02:29.120 Dolphin says she still expects the FED to raise interest 0:02:29.200 --> 0:02:32.520 rates at this month's meeting. Meantime, Nathan gets some inside 0:02:32.520 --> 0:02:34.560 from the Fed with the release of its Beige Book 0:02:34.600 --> 0:02:37.320 today that comes at two pm Wall Street time, a 0:02:37.440 --> 0:02:40.360 day before we hear from Fed share J Powell. He 0:02:40.440 --> 0:02:44.280 speaks at the Cato Institutes Monetary Conference tomorrow to an 0:02:44.280 --> 0:02:46.920 into Bloomberg radio and television for life coverage of his 0:02:47.000 --> 0:02:50.560 comments around nine a m. Eastern. Turning to overseas now, Karen, 0:02:50.600 --> 0:02:53.120 Markets in Europe are feeling the pain of the stronger dollar. 0:02:53.200 --> 0:02:55.800 It comes at a precarious time for the UK. The 0:02:55.840 --> 0:02:58.800 new Prime Minister, Liz Trust is filling her Cabinet and 0:02:58.919 --> 0:03:01.600 is working on solution to address her country's cost of 0:03:01.720 --> 0:03:05.400 living crisis. Bloomberg. Stephen Carroll joins us live from London 0:03:05.440 --> 0:03:08.480 with the latest. Good morning, Stephen, Good morning, Nathan and Karen. 0:03:08.560 --> 0:03:10.880 Liz DROs holding the first meeting of her new cabinet 0:03:11.000 --> 0:03:13.640 as we speak, after a sweeping reshuffle that saw her 0:03:13.680 --> 0:03:17.200 supporters elevated to the top jobs. Quasi quarteng as a 0:03:17.240 --> 0:03:20.760 new Chancellor, while Jacob Riesmock takes over his business Secretary 0:03:21.080 --> 0:03:23.400 Natural Space as the leader of the opposition Labor Party 0:03:23.400 --> 0:03:26.040 in Parliament. Later, as we await details of her package 0:03:26.080 --> 0:03:29.320 to tackle soaring energy costs, people familiar with the plan 0:03:29.400 --> 0:03:31.880 telling Bloomberg that it could see the government spending as 0:03:31.919 --> 0:03:35.440 much as two hundred billion pounds to cap prices, adding 0:03:35.480 --> 0:03:38.840 ten percent to the UK's national debt. Live in London, 0:03:38.880 --> 0:03:41.960 I'm Stephen Carroll, Bloomberg, daybreak. All right, Stephen, thank you. 0:03:42.000 --> 0:03:45.000 While the strong dollar weight on ousets in Asia, over night, 0:03:45.080 --> 0:03:47.800 stocks held it lows from May of twenty well, Asian 0:03:47.800 --> 0:03:51.440 currencies weakened sharply, and Bloomberg. Juliet Sally joins us from 0:03:51.480 --> 0:03:54.600 Singapore with the latest. Good Morning, Juliet Good morning, Nathan 0:03:54.600 --> 0:03:57.880 and Karen. In Japan, the yen sank, with officials warning 0:03:57.920 --> 0:04:01.480 they're concerned about rapid one sided moves. China meanwhile said 0:04:01.480 --> 0:04:04.360 it's you on reference rate with the strongest bias on record, 0:04:04.400 --> 0:04:07.880 a signal of discomfort with the swiming currency. South Korea's 0:04:07.920 --> 0:04:11.720 one was the worst performing Asian currency, prompting speculation of intervention. 0:04:11.880 --> 0:04:15.000 The Kiwi and Singapore dollars fell to two year lows, 0:04:15.040 --> 0:04:17.920 adding to the downbeat sentiment. The latest China data showing 0:04:17.960 --> 0:04:21.080 the nation's export growth slide more than expected in August, 0:04:21.120 --> 0:04:24.440 adding to signs of a flagging world economy. In Singapore, 0:04:24.520 --> 0:04:28.000 Juliette Sally Bloomberg Daybreak a right. Juliette thanks sticking with 0:04:28.080 --> 0:04:30.360 again for a moment. That currency slumped to a level 0:04:30.400 --> 0:04:32.920 that leaves it on track for its worst year on record, 0:04:32.960 --> 0:04:35.880 and that is prompting signals from government officials Japan would 0:04:35.880 --> 0:04:38.920 need to take action if the rapid one sided moves continue. 0:04:39.120 --> 0:04:41.880 Bloomberg Facts reporter Ruth Carson says, at this point we 0:04:41.920 --> 0:04:45.680 could see government intervention. Policymakers haven't changed their language to 0:04:45.720 --> 0:04:49.080 indicate such a move could happen anytime soon, but lookout 0:04:49.160 --> 0:04:52.160 for phrases like we won't rule out any options to 0:04:52.160 --> 0:04:55.839 combat excessive movements, or we're ready to take decisive, bold 0:04:55.880 --> 0:04:59.920 action to counter excessive or speculative moves. Bloomberg's Ruth cars 0:05:00.040 --> 0:05:02.720 And says, the end could get even weaker from here 0:05:02.720 --> 0:05:05.120 and checking it right now, it's weaker by nine tenths 0:05:05.120 --> 0:05:08.599 per cent against the dollar at one point one zero. Well, 0:05:08.680 --> 0:05:11.080 we move on to corporate news now, Nathan, where all 0:05:11.160 --> 0:05:13.360 eyes are on Apple. The tech giant is holding a 0:05:13.440 --> 0:05:16.560 launch event today to unveil the new iPhone fourteen. New 0:05:16.600 --> 0:05:19.680 iPhones traditionally kick off a busy fall products season, which 0:05:19.720 --> 0:05:23.520 also includes new max iPads and Apple Watch models. The 0:05:23.560 --> 0:05:25.719 event kicks off at one pm Wall Street Time, and 0:05:25.760 --> 0:05:28.080 we'll bring you live updates from Cooper Tino throughout the 0:05:28.160 --> 0:05:30.880 day on Bloomberg Radio and television. And we've got more 0:05:30.920 --> 0:05:34.279 earnings on the way today, Karen popular meme Stock Game 0:05:34.400 --> 0:05:37.120 Stop is among companies out with results after the close. 0:05:37.240 --> 0:05:40.640 Bloomberg's Charlie Pellett has a preview. The analysts surveyed by 0:05:40.680 --> 0:05:44.360 Bloomberg see the video game retailer reporting on adjusted earnings 0:05:44.360 --> 0:05:47.520 per share loss of thirty four cents on revenue of 0:05:47.600 --> 0:05:51.000 one point to seven billion dollars. Analysts at Webb Bush 0:05:51.040 --> 0:05:56.000 say game Stop may trail consensus expectations, siting ongoing hardware 0:05:56.040 --> 0:05:59.680 constraints for gaming consoles. Game Stop has been among the 0:05:59.720 --> 0:06:03.000 most popular retail trader favorites this year, but the stock 0:06:03.240 --> 0:06:07.000 for all of two is down thirty two percent. In 0:06:07.120 --> 0:06:10.359 New York, Charlie Pellett Bloomberg day Break, All right, Charlie, 0:06:10.400 --> 0:06:12.160 thanks well. It's shaping up to be another rough day 0:06:12.200 --> 0:06:15.159 in California. The state's electric grid will once again be 0:06:15.240 --> 0:06:18.960 tested after a narrowly avoided blackouts for two consecutive days. 0:06:19.279 --> 0:06:23.520 Blistering temperatures pushed electricity demand to record levels late yesterday 0:06:23.640 --> 0:06:27.800 that prompted California to enact its highest level of energy emergency. 0:06:28.120 --> 0:06:30.880 Much of the state remains under an excessive heat warning. 0:06:31.080 --> 0:06:33.440 Taking a look at oil now, Karen Crude is trading 0:06:33.440 --> 0:06:36.520 lower as the dollar surges. Concerns over global demand are 0:06:36.560 --> 0:06:38.880 also weighing on sentiment. W t I is off to 0:06:38.920 --> 0:06:41.279 a week starts to September, extending a round of three 0:06:41.320 --> 0:06:44.360 monthly losses. That's the worst streak in more than two years. 0:06:44.680 --> 0:06:47.080 Checking prices now, w t I is up a half 0:06:47.120 --> 0:06:49.799 percent at eighty seven dollars twenty nine cents. Of Barrel 0:06:50.040 --> 0:06:53.000 Brent is at ninety three dollars six cents. But we're 0:06:53.000 --> 0:06:56.479 also watching cryptocurrencies this morning, Nathan, Bitcoin flirting with a 0:06:56.520 --> 0:06:58.880 test of this year's lows, following again another sell off 0:06:58.920 --> 0:07:02.960 that's pushed the sector's overall market value below one trillion dollars. 0:07:02.960 --> 0:07:05.640 The largest digital token has shed more than six percent 0:07:05.760 --> 0:07:09.440 so far this week as searching real interest rates cut 0:07:09.480 --> 0:07:13.640 into risk assets. Checking bitcoin right now, it's at eighteen thousand, 0:07:13.720 --> 0:07:17.320 seven hundred and nine dollars. Straight ahead your latest local headlines, 0:07:17.440 --> 0:07:24.600 and this is Bloomberg. Thank you, Karen. Five oh seven 0:07:24.600 --> 0:07:26.920 on Wall Street. We are at sixty six degrees in 0:07:27.000 --> 0:07:29.720 Central Park. Can't get in on the Arizonto Bridge. It's 0:07:29.760 --> 0:07:33.080 closed both ways on the lower deck for construction details 0:07:33.080 --> 0:07:35.920 coming up in traffic. First, John Tucker with what else 0:07:36.000 --> 0:07:37.640 is going on in New York and around the world. 0:07:37.680 --> 0:07:40.240 Good morning, John and Nathan. Former White House strategy of 0:07:40.280 --> 0:07:43.560 Steve Bannett will surrender to face criminal charges in New York. 0:07:43.840 --> 0:07:47.480 Let's get the story from Bloomberg's Jeff Bellinger. Sources tell 0:07:47.520 --> 0:07:50.680 Bloomberg that Bannon has been indicted and will be charged 0:07:50.720 --> 0:07:55.040 by the Manhattan District Attorney's office. Manhattan prosecutors were working 0:07:55.160 --> 0:07:58.440 early last year with New York Attorney General Letitia James, 0:07:58.520 --> 0:08:02.040 New York's top law enforced officer to gather information for 0:08:02.080 --> 0:08:05.360 a probe into weather bannoned defrauded contributors for that We 0:08:05.600 --> 0:08:08.960 build the Wall. Bannon was charged with fraud and federal 0:08:09.040 --> 0:08:12.760 court and over the alleged scheme, leading to a pardon 0:08:12.920 --> 0:08:16.240 hours before Donald Trump left the White House. But Trump 0:08:16.280 --> 0:08:19.280 could not shield his former raid from the state level probe. 0:08:19.680 --> 0:08:23.080 Jeff Bullinger Bloomberg day Break, and we're hearing more surrounding 0:08:23.080 --> 0:08:26.480 the documents discovered at the former president's Florida state The 0:08:26.520 --> 0:08:30.120 Washington Post reports a document the FNBI agencies at mar 0:08:30.240 --> 0:08:35.040 Lago describes a foreign government's military defenses and nuclear capabilities. 0:08:35.440 --> 0:08:38.040 The Post ants some of the seized documents detail top 0:08:38.080 --> 0:08:42.400 secret US operations so closely guarded that many senior national 0:08:42.480 --> 0:08:46.119 security officials are captain the dark about them. A development 0:08:46.200 --> 0:08:48.800 in the probe into the alleged effort by some Trump 0:08:48.880 --> 0:08:53.720 supporters to overturn the twenty election results in Georgia. Investigators 0:08:53.760 --> 0:08:57.720 say video shows a local Republican party leader allegedly allowing 0:08:57.800 --> 0:09:01.280 two men into the Coffee County's election offices the day 0:09:01.360 --> 0:09:04.560 after the January six insurrection. It's also the same day 0:09:04.559 --> 0:09:08.400 authorities say the offices voting machines were breached, and the 0:09:08.400 --> 0:09:12.160 Biden administrations has COVID nineteen vaccines will largely become an 0:09:12.200 --> 0:09:16.559 annual vaccination akin to the flu shot. Dr Is She's jaws, 0:09:16.640 --> 0:09:20.800 the Coronavirus Response Coordinator. We the administration will make sure 0:09:20.880 --> 0:09:24.920 that vaccines are free, that they're widely available, and they 0:09:24.960 --> 0:09:29.440 are easy to access for everybody. The administration urging Americans 0:09:29.480 --> 0:09:32.640 to seek out newly authorized booster shots tailored to fight 0:09:32.720 --> 0:09:36.040 the omicron sub variants that are now dominant. About half 0:09:36.120 --> 0:09:39.559 u S workers could be described as quiet quitters. That's 0:09:39.600 --> 0:09:42.840 according to new research by Gallup. It means they fulfill 0:09:42.880 --> 0:09:46.480 their job description but are psychologically detached from their work. 0:09:46.880 --> 0:09:51.200 According to Gallops survey, some fifty of respondents met the 0:09:51.240 --> 0:09:54.840 definition of quiet quitting. Global News twenty four hours a 0:09:54.880 --> 0:09:57.640 day on Erin on Bloomberg Quicktake power by more than 0:09:58.000 --> 0:10:01.600 seven hundred journalists and analysts in more than one twenty countries. 0:10:01.800 --> 0:10:04.760 I'm John Tucker and this is Bloomberg Nathan, Thank you John. 0:10:09.480 --> 0:10:11.520 Almost five ten on Wall Street time for the Bloomberg 0:10:11.559 --> 0:10:14.280 Sports Updake Morney, John Stanhown and Morning Nathan so much 0:10:14.320 --> 0:10:16.560 with us being the easy part of the Mets schedule. 0:10:16.640 --> 0:10:19.320 Back to back losses though lowly Washington and then an 0:10:19.320 --> 0:10:21.400 eighth to two loss last night in Pittsburgh, and the 0:10:21.440 --> 0:10:23.719 Mets have just their second three game losing figure of 0:10:23.720 --> 0:10:26.520 the season. The other one came back in June. Tiwan 0:10:26.600 --> 0:10:28.719 Walker gave up four runs and five in ins. The 0:10:28.760 --> 0:10:30.480 Pirates put the game away with four runs in the 0:10:30.480 --> 0:10:33.360 eighth day Brandon Nimmo homeward for the Mets. Two teams 0:10:33.360 --> 0:10:36.040 have a double header today to make up Monday's rain out. 0:10:36.040 --> 0:10:38.640 The Yankees and Twins have a twin bill on the 0:10:38.640 --> 0:10:41.280 Bronx to make up last night's rain out. Yanksters put 0:10:41.320 --> 0:10:44.920 Anthony Rizzo on their extremely crowded injured list. That's a 0:10:45.000 --> 0:10:47.800 list with now fifteen names on a Rizzo had missed 0:10:47.840 --> 0:10:51.040 time with a bad back. Now he's suffering from migraine headaches. 0:10:51.240 --> 0:10:53.680 Another late night at the US Open, This one ended 0:10:53.720 --> 0:10:56.280 at one am with Karen Ketch John I've winning the 0:10:56.360 --> 0:11:05.240 fifth set from Nick Kirios. Um the old credit to Karen. 0:11:05.280 --> 0:11:07.600 He just he's a foto. He's in. He's a warrior, 0:11:07.760 --> 0:11:11.680 you know, he's he's authority said it really good today. Um, honestly, 0:11:11.679 --> 0:11:14.120 probably the best server played this tournament, to be honest, 0:11:14.120 --> 0:11:16.120 the way he was hitting his spots under pressure. A 0:11:16.160 --> 0:11:18.600 lot of new names emerging that this year's Open Cat 0:11:18.679 --> 0:11:22.200 Shauno will now play Norway's Casper Rude And unlike the 0:11:22.280 --> 0:11:26.400 semifinal on Friday, the women's winners yesterday as Javier who 0:11:26.440 --> 0:11:29.800 was from Tunisia, and then last night Caroline Garcia took 0:11:29.800 --> 0:11:33.200 out the American teenage You're Coco got w NBA Playoffs 0:11:33.200 --> 0:11:35.920 wins for Connecticut headed to a Game five with Chicago 0:11:35.960 --> 0:11:37.920 and Las Vegas, who reached the finals last night, the 0:11:37.920 --> 0:11:41.559 final game in the long career of Seattle's Suber the 0:11:41.600 --> 0:11:44.120 Long Island native. Chicago Bears announced their attention to move 0:11:44.160 --> 0:11:46.480 to an indoor stadium in the suburbs of them not 0:11:46.559 --> 0:11:50.600 until two thousand thirty four. John Stashower, Bloomberg Sports, thank you, alright, 0:11:50.760 --> 0:11:53.840 I guess there's time, Thank you, John. Sp Futures up 0:11:53.880 --> 0:11:57.360 two points, South Futures up four Nastack futures up nineteen points. 0:11:57.440 --> 0:12:01.160 Dollar strength pervading the market. We speak next with Kid 0:12:01.320 --> 0:12:07.800 Juke's chief effect Strategistics, suck Chen. This is Bloomberg, Bloomberg 0:12:07.800 --> 0:12:10.600 eleven three oh weather scattered showers today, low seventies for highs. 0:12:10.600 --> 0:12:13.360 We'll clear out tomorrow upper seventies and end the week 0:12:13.400 --> 0:12:16.400 with sunshine Friday and a high your eight right now, 0:12:16.400 --> 0:12:23.040 cloudy sixty six degrees in Central Park. It continues markets, 0:12:23.120 --> 0:12:26.200 headlines and breaking news twenty four hours a day at 0:12:26.240 --> 0:12:30.200 Bloomberg dot Com, at Bloomberg Business Atland, at Bloomberg Quick Tape. 0:12:30.760 --> 0:12:40.240 She's a Bloomberg Business flash, but I'm kerin Moscow. Stocks 0:12:40.240 --> 0:12:43.400 and commodities. You're dropping is the prospect of aggressive Federal 0:12:43.400 --> 0:12:46.880 Reserve monetary tightening lifts a dollar gags to another record. Meanwhile, 0:12:46.960 --> 0:12:50.040 US stock index futures are mostly higher. We checked the 0:12:50.040 --> 0:12:53.360 markets every fifteen minutes throughout the trading day on Bloomberg. 0:12:53.440 --> 0:12:55.640 Right now it's in p futures are up about three 0:12:55.640 --> 0:12:59.160 points down. Futures are also well. They're little change now 0:12:59.200 --> 0:13:01.600 nowesday at Future are up twenty four The decks in 0:13:01.640 --> 0:13:04.280 Germany is down four tenths of upper cent. Can your 0:13:04.320 --> 0:13:06.720 treasury up ten thirty seconds, you have three point three 0:13:06.720 --> 0:13:09.439 one percent they yield on the two year three point 0:13:09.440 --> 0:13:12.680 four or five percent. NIMEX screwed oil is up six 0:13:12.720 --> 0:13:15.400 tenths percent of fifty cents at eighty seven dollars, thirty 0:13:15.400 --> 0:13:17.840 six cents of barrel comex gold up two tens per 0:13:17.880 --> 0:13:20.839 cent or three dollars fifty cents. A seventeen sixteen forty 0:13:20.840 --> 0:13:25.160 announced the euro point nine nine oh four against the dollar, 0:13:25.240 --> 0:13:27.719 British found one point one four nine zero and the 0:13:27.880 --> 0:13:31.560 en one four point one zero. Bitcoin this morning lower 0:13:31.600 --> 0:13:34.920 down one percent at eighteen thousand, seven hundred eighty dollars. 0:13:35.240 --> 0:13:38.040 That's a Bloomberg business flash. Now here's John Tucker with 0:13:38.080 --> 0:13:40.760 more on what's going on around the world. John, good morning, 0:13:40.840 --> 0:13:43.640 and good morning, Karen. Former White House strategist Steve Bennet 0:13:43.760 --> 0:13:47.640 will surrender to face criminal charges in New York. California 0:13:47.760 --> 0:13:51.120 narrowly avoided blackouts for a second day, even as dangerous 0:13:51.120 --> 0:13:54.760 temperatures pushed electricity demand to a record in that state. 0:13:55.200 --> 0:13:58.680 And sing Pain will meet his Russian counterpart Vlackimir Putin 0:13:58.760 --> 0:14:02.400 next week. It would mark the Chinese leaders first trip abroad. 0:14:02.760 --> 0:14:05.120 In two and a half years. Sports last ninth, the 0:14:05.160 --> 0:14:08.119 Mets lose to the Pirates, Red Sox lost to the Rays, 0:14:08.120 --> 0:14:11.319 Orioles beat the Blue Jays, Nationals lost to the Cardinals, 0:14:11.520 --> 0:14:13.800 the As fell to the Braves, the Giants lost to 0:14:13.880 --> 0:14:17.480 the Dodgers, and the Yankees game against the Twins rained out. 0:14:17.480 --> 0:14:20.120 They're set to make up that game today. Glomally was 0:14:20.160 --> 0:14:22.440 twenty four hours a day on Aaron on Bloomberg Quicktake. 0:14:22.680 --> 0:14:25.200 We're powered by more than twenty seven hundred journalists and 0:14:25.240 --> 0:14:28.520 analysts and more than one twenty countries. I'm John Tucker. 0:14:28.640 --> 0:14:31.560 The he is Bloomberg. Nathan Okay, John, thank you. It's 0:14:31.560 --> 0:14:34.400 five nineteen on Wall Street Live from the Bloomberg Interactive 0:14:34.400 --> 0:14:37.280 Broker Studios. This is Bloomberg Dave Break on a morning 0:14:37.280 --> 0:14:41.040 where dollar strength seems to be rippling through markets and 0:14:41.440 --> 0:14:44.800 driving risk assets lower. Let's bring in Kit Jukes for 0:14:44.920 --> 0:14:50.240 more on this. Chief FX Strategist Associated General Kit, Good morning. 0:14:50.680 --> 0:14:54.480 It seems like the prospect of higher for longer interest 0:14:54.560 --> 0:14:58.200 rates is really on traders minds right now. Where do 0:14:58.240 --> 0:15:03.160 you see the dollar going? Has King dollars stopped? King dollar? 0:15:03.320 --> 0:15:07.160 Is King dollars wearing? Here's her crown very firmly not 0:15:07.160 --> 0:15:09.760 going anywhere. I don't think this can really stop until 0:15:10.800 --> 0:15:13.240 we get past the worst of the energy crisis, to 0:15:13.240 --> 0:15:15.960 be quite honest, in the sense that, um, you know, 0:15:16.000 --> 0:15:18.400 the I mean, the rate story is part of it, 0:15:18.440 --> 0:15:20.160 but it's all related to the fact that that that 0:15:20.200 --> 0:15:22.600 the terms of trade between most of the world in 0:15:22.640 --> 0:15:24.840 the US, between Europe and the US and Japan and 0:15:24.880 --> 0:15:27.760 the US is so favorable to the to the US 0:15:27.880 --> 0:15:32.000 because it's the country's second biggest energy producer globally, whereas 0:15:32.000 --> 0:15:35.720 we're all we're all trying to wean ourselves off Russian 0:15:35.960 --> 0:15:39.080 energy as fast as we can, and that that contrast 0:15:39.160 --> 0:15:43.480 is just enormous. So as growth slows with inflation in 0:15:43.520 --> 0:15:48.240 Europe and growth just slows in Japan, the US has 0:15:48.280 --> 0:15:50.960 a completely different set of needs in terms of monetary policy, 0:15:51.640 --> 0:15:55.800 because you know, the economic data continually just persists in 0:15:56.000 --> 0:16:00.280 outperforming expectations. So what's your expectation when it comes to 0:16:00.520 --> 0:16:02.520 the ECB. That seems to be in a lot of 0:16:02.520 --> 0:16:06.840 people's minds as well, given the risks around energy with 0:16:06.880 --> 0:16:09.320 the war in Ukraine going on. Is a seventy five 0:16:09.400 --> 0:16:13.000 basis point move from the e c B Uh, sealed 0:16:13.040 --> 0:16:17.480 in here, it's getting more likely. Seems to be it 0:16:17.480 --> 0:16:19.160 seems to be fashionable. I would have thought of that 0:16:19.280 --> 0:16:22.000 sort of lost. That's the most likely outcome. Um, this 0:16:22.040 --> 0:16:26.680 morning's GDP revisions upwards might be just the last little 0:16:26.680 --> 0:16:28.960 bit to sort of, you know, put some dust on 0:16:29.000 --> 0:16:30.840 top of it and make it, make it happen. I 0:16:30.880 --> 0:16:33.600 think it's what they need to do to maintain their credibility, 0:16:33.680 --> 0:16:37.320 is what they the kind of hinting at. Why would 0:16:37.360 --> 0:16:39.440 they back down now? I think so, Yeah, that's probably 0:16:39.440 --> 0:16:43.120 what we'll get. Yeah, you mentioned the revision we got 0:16:43.160 --> 0:16:48.200 from the second quarter GDP in the euro Zone coming 0:16:48.200 --> 0:16:52.000 in a little bit stronger than expected. Uh what does 0:16:52.040 --> 0:16:56.560 that mean for Europe at this point, given that we've 0:16:56.600 --> 0:17:00.600 seen so much weakness in this second half. Yeah, I 0:17:00.640 --> 0:17:02.840 think that's the issue is is you know so, you know, 0:17:02.960 --> 0:17:05.280 so the unro's own economy did better than people thought 0:17:05.800 --> 0:17:10.199 going into an absolutely huge energy crisis. That will that 0:17:10.240 --> 0:17:12.840 will result in in recession at least in Germany and 0:17:13.600 --> 0:17:17.159 UM and significantly slower growth everwhere else. So what difference 0:17:17.160 --> 0:17:19.280 does it make? I don't know. I just think it 0:17:19.280 --> 0:17:21.920 it's enough to convince the CB that they've got room 0:17:22.000 --> 0:17:26.119 to frontload rate hikes as much as possible. Beyond that, 0:17:26.560 --> 0:17:28.640 I don't think it makes a great deal of great 0:17:28.640 --> 0:17:30.359 deal of differences. It doesn't make a great deal of 0:17:30.359 --> 0:17:33.080 difference to the foreign exchange market because um, you know, 0:17:33.200 --> 0:17:36.159 I don't know that will be pricing in higher terminal 0:17:36.320 --> 0:17:39.520 rates from the ECB or expecting anything wonderful after that. 0:17:39.920 --> 0:17:42.520 We we are just we are just going to get 0:17:42.560 --> 0:17:45.719 slower growth in Europe and um, and we'll get slower 0:17:45.720 --> 0:17:48.760 growth faster or slower growth earlier than in the United States, 0:17:48.920 --> 0:17:51.560 as we already had got to get your reaction to 0:17:51.600 --> 0:17:54.080 what's happening in Asia as well. With the end trading 0:17:54.119 --> 0:17:57.560 at a twenty four year low, right now, do you 0:17:57.600 --> 0:18:02.719 see the possibility of intervention? And by the Bank of Japan, uh, 0:18:02.840 --> 0:18:05.000 it must be coming close. I mean the obviously the 0:18:05.040 --> 0:18:07.480 Korean authorities are being much more vocal about the need 0:18:07.520 --> 0:18:09.879 to do it. You know, the one is week, the 0:18:09.920 --> 0:18:12.200 Taiwan dollar is week, the Chinese un week is week, 0:18:12.560 --> 0:18:16.240 the end is week. Um. The Japanese obviously have you know, 0:18:16.760 --> 0:18:19.240 hugely lower interest rates than the US every time US 0:18:19.320 --> 0:18:22.560 yields move higher the end weekends. But but the you know, 0:18:22.840 --> 0:18:27.000 the housing market is sewing precipitously in China and so 0:18:27.160 --> 0:18:29.480 the whole of that region is under pressure. At this 0:18:29.520 --> 0:18:32.840 point in time, I think we will end up seeing intervention. 0:18:33.040 --> 0:18:34.720 The only thing I would I would warn you know, 0:18:34.720 --> 0:18:37.240 the last time we saw Dolly yen this high was 0:18:37.440 --> 0:18:41.359 just before LTCM collapsed and run Russia defaulted and we 0:18:41.359 --> 0:18:43.040 were back at a hundred and turn by the end 0:18:43.040 --> 0:18:46.120 of the year. So um, we were at levels where 0:18:46.320 --> 0:18:50.520 I wouldn't promise that it's going to be stable our 0:18:50.600 --> 0:18:53.439 last minute here you kit, what's the path ahead for 0:18:53.480 --> 0:18:56.160 the pound now with the change in leadership in the UK, 0:18:57.680 --> 0:19:01.159 I study still weak. I still think study probably able 0:19:01.160 --> 0:19:04.240 to be. You know, if anything slightly weaker than the euro. 0:19:04.520 --> 0:19:06.440 The fundamental problem is the same for the UK is 0:19:06.480 --> 0:19:10.239 for Europe dependence on what is now extremely expensive and 0:19:10.480 --> 0:19:14.919 scarce um and energy. If it's a bad winter, sterling 0:19:14.960 --> 0:19:17.160 has got more downside than if it's a good winter. 0:19:17.200 --> 0:19:19.280 If it's a mild winter, we're lucky and we could 0:19:19.320 --> 0:19:20.840 get away with it. But in the short term, as 0:19:20.840 --> 0:19:23.520 we price in the downside risk that we'll end up 0:19:23.520 --> 0:19:27.200 with power outages and things like that, we're pretty much already, 0:19:27.520 --> 0:19:29.119 we could be in recession by the time we do 0:19:29.160 --> 0:19:32.560 the mass backwards later on. We're going to get aggressive 0:19:32.640 --> 0:19:36.040 rate hikes because of the inflation. Uh and and we 0:19:36.119 --> 0:19:38.600 have a we have a balance of payments that's worse 0:19:38.600 --> 0:19:41.760 than anybody else's in the UK, so of the major economies. 0:19:42.200 --> 0:19:43.600 So there's not there's not a lot out of there. 0:19:43.680 --> 0:19:46.040 The only the only piece that you can say it's favorable. 0:19:46.440 --> 0:19:49.760 The sentiment is truly dire, and the letter is very low. 0:19:50.000 --> 0:19:51.800 I still don't think we'll get We'll get the low 0:19:51.880 --> 0:19:54.720 one time, but um, we're not going up any time. 0:19:54.800 --> 0:19:56.879 So thanks for this, kid, good having you on with 0:19:56.920 --> 0:19:59.840 us this morning. Kid Jukes, Chief effects strategist, as so 0:20:00.000 --> 0:20:03.200 State in general. You're listening to Bloomberg Daybreak. Good morning, 0:20:07.440 --> 0:20:10.480 Bloomberg eleven three oh weather. Scattered showers today with highs 0:20:10.480 --> 0:20:12.520 in the low seventies, will clear out tomorrow, get into 0:20:12.560 --> 0:20:16.359 the upper seventies and top out at eighty on Friday 0:20:16.440 --> 0:20:23.160 under sunshine sixty six and cloudy. Right now, broadcasting live 0:20:23.320 --> 0:20:27.280 from the Bloomberg Interactive Broker Studio in New York. Bloomberg 0:20:27.280 --> 0:20:31.360 e Living Free on to Washington, d C. Bloomberg to Boston, 0:20:31.480 --> 0:20:34.920 Bloomberg one O six one to San Francisco, Bloomberg nine 0:20:34.960 --> 0:20:38.040 sixty to the country, Sirius XM Cho one nine team, 0:20:38.160 --> 0:20:41.640 and around the globe, the Bloomberg Business and Bloomberg Radio 0:20:41.760 --> 0:20:51.080 dot Com. This is Bloomberg Daybreak. It's five thirty on 0:20:51.119 --> 0:20:54.200 Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. 0:20:54.280 --> 0:20:56.639 We're just about four hours away from the open of 0:20:56.760 --> 0:20:58.479 US trading. Let's get you have to date on the 0:20:58.480 --> 0:21:00.520 news you need to know at this shower. Stocks in 0:21:00.520 --> 0:21:03.720 Europe are falling as the US dollar continues its strong run. 0:21:04.080 --> 0:21:07.600 The Bloomberg Dollar Spot Index had another record overnight, and 0:21:07.640 --> 0:21:10.679 that's leading to tighter financial conditions that are weighing on 0:21:10.880 --> 0:21:14.159 risk assets around the world. Janet Mooe is head of 0:21:14.200 --> 0:21:18.159 market analysis at Bruin Dolphin. There are increasing signs that 0:21:18.560 --> 0:21:22.000 countries are worried about the dollar strength. I think government 0:21:22.040 --> 0:21:25.600 officials they will have to come together to discuss what 0:21:25.880 --> 0:21:28.280 they may do about it, but maybe they don't actually 0:21:28.320 --> 0:21:31.560 have a lot of solutions. Janet Movie with Bruin Dolphins, 0:21:31.560 --> 0:21:34.680 says the strong dollar could have a disinflationary effect on 0:21:34.720 --> 0:21:37.159 the US economy, but she still expects the FED to 0:21:37.240 --> 0:21:40.080 raise interest rates set September's meeting, and we'll get more 0:21:40.119 --> 0:21:42.119 inside from the Fed today, Karen, with the release of 0:21:42.160 --> 0:21:44.800 the Beige Book. That comes at two pm Wall Street Time, 0:21:44.840 --> 0:21:47.680 a day before we hear from FED chair J Powell. 0:21:47.720 --> 0:21:51.280 He speaks at the Cato Institute's Monetary Conference tomorrow. Tune 0:21:51.320 --> 0:21:53.879 into Bloomberg Radio and Television for live coverage of that 0:21:53.960 --> 0:21:57.240 around nine am Eastern. Well, Nathan, the strong dollar weighed 0:21:57.240 --> 0:22:00.160 on assets in Asia. Overnight stocks held at low's from 0:22:00.200 --> 0:22:04.359 May of twenty well, Asian currencies weekend sharply. We're taking 0:22:04.359 --> 0:22:06.879 a close look at the yen, in particular, it's on 0:22:06.960 --> 0:22:09.960