Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Good morning, I'm Nathan Hager.
Speaker 1: And I'm Karen Moscow. Here are the stories we're following today, Karen.
Speaker 3: Stocks are continuing their recovery from Monday's massive selloff, with
Speaker 3: futures higher following yesterday's one percent gain for the S
Speaker 3: and P five hundred. All major groups in the index
Speaker 3: rows still. Stefold chief economist Lindsay PEGSA says there is
Speaker 3: major concern about the health of the US economy.
Speaker 4: Well, I think the risk of recession is still very real.
Speaker 4: I would put it in double digit territory, around twenty
Speaker 4: five to thirty percent when we look out to twenty
Speaker 4: twenty five and beyond. But my bigger concern is not
Speaker 4: that the US economy falls into negative territory or an
Speaker 4: outright recession, but the notion that we allow the economy
Speaker 4: to slow but the FED continues to tolerate above target inflation.
Speaker 3: Steve Fold, chief economists Lindsay Pegs and traders are moderating
Speaker 3: expectations of deep FED rate cuts this year, SWAP's point
Speaker 3: to around one hundred and five basis points of easing.
Speaker 3: That compares to as much as one hundred and fifty
Speaker 3: basis points on Monday.
Speaker 1: Well Nathan Goldman Sachs CEO David Solomon says market should
Speaker 1: not count on the FED stepping in with an emergency
Speaker 1: right cut. In an upcoming episode of the David Rubinstein
Speaker 1: Show peer to peer Conversation, Solomon said he doubts the
Speaker 1: Fed would act before September.
Speaker 5: The market expectation is certainly for cuts in the fall.
Speaker 5: I've been more cautious around inter straight cuts all year.
Speaker 5: As you remember, the market expectation early in the year
Speaker 5: was for six of seven cuts based on the economic
Speaker 5: data we're seen now in the messaging from the Fed.
Speaker 5: You know, I think it's likely that we'll see a
Speaker 5: cut or two in the fall, but I think you've
Speaker 5: still got to wait and see as things unfold.
Speaker 1: And Goldman Sachs CEO David Solomon added the stock market
Speaker 1: correction might be healthy, and he forecasts more volatility to come.
Speaker 6: In Asia.
Speaker 3: Karen, Japanese stocks rose more than one percent. A Bank
Speaker 3: of Japan officials sent a strong duffish signal by pledging
Speaker 3: to refrain from hiking interest rates when markets are unstable.
Speaker 3: Those words follow major moves in the end in record
Speaker 3: breaking swings in Japanese stocks following last week's rate hike.
Speaker 3: Nimura's executive officer and head of wholesale, Christopher Wilcox, defended
Speaker 3: the BOJ.
Speaker 7: I would say that the BOJ has been completely vindicated.
Speaker 7: They always knew that this unwind was going to be
Speaker 7: very difficult. That's why they've been so slow and so cautious.
Speaker 7: And yes, that puts some pressure on the end for
Speaker 7: a little while. And think about the carry trade. The
Speaker 7: point of the carry trade is that if they didn't
Speaker 7: start to move, the carry trade would only have got bigger.
Speaker 7: The end disruption of the unwinding of the carry trade
Speaker 7: would have been even bigger. So I think the BOJ
Speaker 7: is playing it extremely smartly.
Speaker 3: Namura' Christopher Wilcock says the three day meltdown in Japan's
Speaker 3: stocks adds up to one point one trillion dollars wiped out.
Speaker 3: That is the equivalent of Sweden's entire stock market.
Speaker 1: Well, Nathan, we'll have more on the markets than just
Speaker 1: a moment. But now let's get to the latest in
Speaker 1: the presidential race. Democratic nominee Kamala Harris has introduced her
Speaker 1: new running made Minnesota Governor Tim Waaltz set a rally
Speaker 1: in a swing state Pennsylvania. A leader who will.
Speaker 8: Help unite our nation and move us.
Speaker 1: Forward, a fighter for the middle class, and Governor Waltz
Speaker 1: came out fighting against former President Donald Trump.
Speaker 9: He froze in the face of the COVID crisis.
Speaker 10: He drove our economy into the ground. And make no mistake,
Speaker 10: violent crime was up under Donald Trump.
Speaker 11: That's not even counting the crimes he committed.
Speaker 3: Governor Waltz is a favorite of progressives and organized labor,
Speaker 3: but former Democratic National Committee CEO Amy Dacy says the
Speaker 3: party is rallying behind him.
Speaker 12: You saw a sense of energy and optimism that you
Speaker 12: haven't seen you for a while with the Democratic ticket.
Speaker 12: If you're going to advise them, is that keep thought, authenticity,
Speaker 12: listen as well as speak. Make sure that you're out
Speaker 12: there and understanding people's pain.
Speaker 3: Former DNC chief Amy Dacy notes both progressive Alexandria Casio
Speaker 3: Cortez and centrist Joe Manchin are backing Waltz. The Harris
Speaker 3: campaign says it raised twenty million dollars after she announced
Speaker 3: her running mate, and a new poll from NPR PBS
Speaker 3: News in Merist College now has Harris leading Trump nationally
Speaker 3: fifty one percent to forty eight percent.
Speaker 8: Well.
Speaker 1: One other political note this morning, Nathan Corey Bush lost
Speaker 1: a bitter primary battle for their shrinking this squad of
Speaker 1: House progressives. The Missouri Democrat is an outspoken critic of
Speaker 1: Israel's handling of the war in Gaza. She lost to
Speaker 1: Saint Louis County prosecuting attorney Wesley Bell. According to the
Speaker 1: Associated Press, with ninety four percent of votes counted, Bell
Speaker 1: had fifty one percent support, compare with about forty six
Speaker 1: percent for Bush.
Speaker 3: All right, let's return to markets now, Karen, where shares
Speaker 3: of the maker of a blockbuster weight loss drug are
Speaker 3: slimming down and trading Novan Nordisk is down more than
Speaker 3: three percent. For more, Let's go to Europe and check
Speaker 3: in with Bloomberg's ew and Potts in London.
Speaker 13: Ewan, Nathan, and Karen. It's Europe's most valuable company. But
Speaker 13: Novo Nordisk has disappointed investors this morning. Revenue from weight
Speaker 13: loss treatment week of He's being hit by high unexpected
Speaker 13: price concessions in the US, It's most important market. Novo
Speaker 13: called it a one off factor, but the size of
Speaker 13: the shortfall is raising concerns among investors about growing competition
Speaker 13: from American rival Eli Lilly. The market for BST drugs
Speaker 13: is expected to reach one hundred and thirty billion dollars
Speaker 13: by the end of the decade, but it's clear nov
Speaker 13: Nordisk willing to fight for market share. In London, I'm
Speaker 13: youn pots Bloomberg Radio, all right, ew.
Speaker 1: And thank you well. Here in the US, Airbnb investors
Speaker 1: are checking out this morning. Shares are down about sixteen percent.
Speaker 1: The company gave a disappointing outlook for a third consecutive quarter.
Speaker 1: It's also a warning of slowing demand from US vacationers,
Speaker 1: assigned that travel momentum is tapering off despite the peak
Speaker 1: summer season and.
Speaker 3: Karen Shares of super Micro Computer are down more than
Speaker 3: twelve percent. That company reported quarterly revenue and profit that
Speaker 3: miss analyst estimates. We get the numbers from Bloomberg's Charlie Pellett.
Speaker 6: It outweighs an annual sales outlook that was billions above
Speaker 6: Wall Street projections, profit excluding some items six twenty five
Speaker 6: a share short of super Micro's previous forecast, and the
Speaker 6: eight dollars twenty five cent average analysts estimate a jump
Speaker 6: in demand for the equipment that powers artificial intelligence training
Speaker 6: and applications has helped drive sales at super Micro, which
Speaker 6: makes data center servers in New York. Charlie Pellett Bloomberg.
Speaker 1: Radio Right, Charlie, thank you. On the flip side, shares
Speaker 1: of Luman Technologies are searing more than forty two percent.
Speaker 1: The company, which provides fiber networks for artificial intelligence data processing,
Speaker 1: says a surge in demand is leading to a surge
Speaker 1: in sales. Luhmann also boosted its full year free cash
Speaker 1: flow forecast a one to one point two billion dollars.
Speaker 1: It previously saw one hundred to three hundred million. Time
Speaker 1: to off for a look at some of the other
Speaker 1: stories making news in New York and around the world,
Speaker 1: and for that we're joined by Bloomberg's John Tucker, John,
Speaker 1: good Morning.
Speaker 14: And Karen. A floodwatch has now been lifted for the
Speaker 14: city after as much as five inches of rain in
Speaker 14: just several hours. Le Mini streets, homes and businesses in
Speaker 14: the Tri State inundated last night at cold front triggered
Speaker 14: severe storms. New York City officials for the first time,
Speaker 14: we're using a drone to transmit emergency weather alerts to
Speaker 14: residents were Bloomberg meteorologist Rob Carolyn tells us, we'll get
Speaker 14: just a temporary break.
Speaker 9: Well, we saw anywhere from an inch and a half
Speaker 9: of rain over portions of the city to as much
Speaker 9: as five inches in parts of Connecticut and New Jersey.
Speaker 9: The good news is that system is pulling out this morning.
Speaker 9: Rain moves out of the region very early on and
Speaker 9: we'll see drier conditions. Unfortunately, though, Oyster from Debbie's going
Speaker 9: to bring rain back into the tri state area later tonight,
Speaker 9: and we'll see it again tomorrow and into Friday.
Speaker 14: John the New York Posts a handful of people had
Speaker 14: to be rescued from their cars at Aarhizi water trapped
Speaker 14: them on the Henry Hudson Parkway and the major Diggon Expressway.
Speaker 14: Hamas is named the alleged mastermind of the group's October
Speaker 14: seven attack on Israel. As its new political leader. He
Speaker 14: succeeds a key mediator who's assassination last week has set
Speaker 14: back to cease fire talks. New York state voters support
Speaker 14: banning smartphones and classrooms by a wide margin. More from Bloomberg'
Speaker 14: Jeff Bellinger.
Speaker 10: According to a poll from Siena College. Voters back a
Speaker 10: school smartphone ban by sixty percent to thirty two percent.
Speaker 10: There is growing nationwide concern that the devices distract from learning.
Speaker 10: New York City School's Chancellor David Banks said heat plans
Speaker 10: and across the board ban on mobile phones. Governor Kathy
Speaker 10: Hockel said she intends to propose a state wide ban
Speaker 10: in schools during the twenty twenty five legislative session. Some
Speaker 10: New York schools that already have bans in place have
Speaker 10: seen positive results, including increased grades. Jeff Bellinger, Bloomberg Radio.
Speaker 14: Global News twenty four hours a day and whatever he
Speaker 14: wanted with Bloomberg News Now, I'm John Tucker. Yeah, this
Speaker 14: is Bloomberg Nathan and Karen.
Speaker 1: All right, John, thank you time now for the Bloomberg
Speaker 1: Sports Update with John Stafshawer. John, good morning, Good.
Speaker 11: Morning, Karen. The Mets signed a couple of the free
Speaker 11: agents starting pitchers and the offseason Sean and I has
Speaker 11: been really good. Luis Severino the x Yankee, not so
Speaker 11: much specially lately. Sevarinos Era in July was near six.
Speaker 11: First start of August, took the loss in Denver. The
Speaker 11: Rockies won six to three. Yankees reigned out at the
Speaker 11: stadium straight double letter with the Angels today starting at
Speaker 11: four when Baltimore lost in Toronto, had put the Yanks
Speaker 11: into sole possession of first by a half game, though
Speaker 11: White Sox had not one of James since July tenth.
Speaker 11: The twenty one game losing streak ended in Oakland. Chicago
Speaker 11: won five to one, raising its season record to twenty
Speaker 11: eight and eighty eight. Houston Astros got a no hitter
Speaker 11: early this season from Renel Blanco. They got one last
Speaker 11: season from Fraanburg Valdez. Valdez in Texas was one out
Speaker 11: from another no hitter the Rangers. Kyle Seger broke it
Speaker 11: up for the home three gold medals won by US athletes.
Speaker 11: A neat Elore only twenty years old, she's the youngest
Speaker 11: American to win Golden Women's wrestling. She outscored her opponents
Speaker 11: by a combined thirty four to two. Track and field
Speaker 11: Cole Hawker upset win in the fifteen hundred meters. Gabby
Speaker 11: Thomas took the two hundred. She had competed in Tokyo
Speaker 11: when there were no fans, not the case in Paris.
Speaker 8: There is nothing like walking into a stadium of eighty
Speaker 8: thousand people and they're screaming and they're right on top
Speaker 8: of you. That is a lot of pressure to put
Speaker 8: on someone and a lot of pressure for us to
Speaker 8: kind of deal with. So it was definitely very different.
Speaker 8: But it's also it made it a lot more special
Speaker 8: when I crossed the line as a champion because I
Speaker 8: got to share that experience with everyone. I got to
Speaker 8: hear the crowd roar.
Speaker 11: Men's basketball easy quarterfinal route went over Brazil one twenty
Speaker 11: two to eighty seven. Next up Serbia tomorrow in the semifinals.
Speaker 11: Next up for the US women's soccer gold medal Games
Speaker 11: senturdaygainst Brazil and both the quarterfinals and the semis against Germany.
Speaker 11: The US won one nil time, scoring the only goal
Speaker 11: in extra time. John stash Allett, Bloomberg Sports.
Speaker 10: County, Nape Coast to Coast on Bloomberg Radio, nationwide on
Speaker 10: Sirius XM, and around the world on Bloomberg dot Com
Speaker 10: and the Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan Hager.
Speaker 10: Vice President.
Speaker 3: Kamala Harris is kicking off a crucial stage of her
Speaker 3: presidential campaign with her new running mate in tow and Minnesota.
Speaker 3: Governor Tim Waltz is already coming out swinging against Republicans
Speaker 3: Donald Trump and Jade Vance and his first appearance as
Speaker 3: running mate in Philadelphia. Joining us now is Tina Fordham,
Speaker 3: founder and geopolitical strategist at Fordham Global Foresight. Tina, it's
Speaker 3: great to speak with you again. This morning. Vice President
Speaker 3: Harris introduced Governor Waltz as a fighter for the middle class.
Speaker 3: Of course, he's been credited with coining the term weird
Speaker 3: that seems to be resonating among Democrats when it comes
Speaker 3: to messaging against the Republican ticket. What's your reaction to
Speaker 3: his introduction out to a national audience.
Speaker 15: You know, it was fascinating to watch the scenes at
Speaker 15: the rally in Philadelphia. There was a lot of energy,
Speaker 15: there was a very very interesting, i think, very positive
Speaker 15: chemistry between Harris and Waltz. And you know, like a
Speaker 15: lot of people, I didn't know much about him until
Speaker 15: his name got on the short list, but he's got
Speaker 15: an interesting story. But more than anything, his way of
Speaker 15: framing the issues I think is really landing. The weird
Speaker 15: idea is just one of those mechanisms. But also his
Speaker 15: plain spokenness is.
Speaker 3: That going to be enough, the weird messaging to go
Speaker 3: after Trump and the Republicans.
Speaker 15: You know, speaking from a political science point of view,
Speaker 15: it can be a very effective tool for marginalizing your opponent.
Speaker 15: You know, there are those who would say that using
Speaker 15: humor or satire is childish. I don't agree. And also
Speaker 15: it works a lot better than Biden's apocalyptic rhetoric, which
Speaker 15: really didn't move people well.
Speaker 3: As a governor, as a former congressman, he does have
Speaker 3: a record. He supported free school meals, paid family leave
Speaker 3: as governor Pennsylvania. He has kind of a nuanced stance
Speaker 3: when it comes to China. He's got a long history
Speaker 3: as a former teacher. There could those be vulnerabilities for
Speaker 3: Governor Waltz anything.
Speaker 15: It can be a vulnerability in this day and age
Speaker 15: where you know, people can dredge up something that was
Speaker 15: said decades ago. He's he's a vice president, he's not
Speaker 15: running as a president. He's not there to bring foreign
Speaker 15: policy cred to the ticket. This is a very unusual race.
Speaker 15: It doesn't necessarily need to be said. They're starting late
Speaker 15: in the game, and I think what Waltz brings to
Speaker 15: the ticket is a lot of energy. You know, his
Speaker 15: kind of football coach approached to going on offense. And
Speaker 15: let's see how it resonates with voters. They if they
Speaker 15: want to be part of this, And it's also a
Speaker 15: generational changing of the guard. You know, they're both sixty,
Speaker 15: which is young in this race as it has been
Speaker 15: so far.
Speaker 3: Yeah, interesting to think of sixty as young now considering
Speaker 3: where presidential races have been in the past, other than
Speaker 3: Trump and Biden, I suppose, But of course Governor Waltz
Speaker 3: has already come out as a favorite of progressives and
Speaker 3: blue collar workers. Was Vice President Harris really at risk
Speaker 3: of losing that part of the Biden coalition without bringing
Speaker 3: in someone like Waltz? Did she miss an opportunity? Why
Speaker 3: not picking someone with more centrist appeal like Josh Shapiro
Speaker 3: or Mark Kelly.
Speaker 15: I mean, if you look at the data the Electoral College,
Speaker 15: you know, power of a vice presidential candidate hasn't amounted
Speaker 15: to much since you know, probably Al Gore and the
Speaker 15: state of Tennessee. And so we're talking about about point
Speaker 15: oh four percent. And what's more, this whole political beauty
Speaker 15: pageant that the Democrats have been through have really put
Speaker 15: people like Josh Shapiro, obviously, Pete Buddhajetz who already was
Speaker 15: in the cabinet, Kelly and others much more prominently. So
Speaker 15: there's a sense that, you know, there's a lot of
Speaker 15: talent on the Democratic side to be mobilized for this.
Speaker 15: I don't think that the fact that Josh Shapiro isn't
Speaker 15: on the ticket means that Harris is less likely to
Speaker 15: get Pennsylvania. The other thing that's interesting about Waltz, of
Speaker 15: course it's less quantitative, is that he has one in
Speaker 15: in red districts and in formerly red state. So that
Speaker 15: is powerful too when it comes to the idea of persuasion,
Speaker 15: and that's what the Harris Waltz ticket has to do
Speaker 15: fast to not only rebuild, you know, as much of
Speaker 15: the and maybe even the Obama coalition, but to persuade
Speaker 15: the disgruntled, independence and undecided.
Speaker 2: This is Bloomberg day Break Today, your morning brief on
Speaker 2: the stories making news from Wall Street to Washington and beyond.
Speaker 1: Look for us on your podcast feed at six am
Speaker 1: Eastern each morning on Apple, Spotify, and anywhere else you
Speaker 1: get your podcasts.
Speaker 2: You can also listen live each morning starting at five
Speaker 2: am Wall Street Time on Bloomberg eleven three to zero
Speaker 2: in New York, Bloomberg ninety nine to one in Washington,
Speaker 2: Bloomberg one oh six' one in Boston, and Bloomberg ninety
Speaker 2: sixty in San Francisco.
Speaker 1: Our flagship New York station is also available on your
Speaker 1: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.
Speaker 2: Listen coast to coast on the Bloomberg Business app, SERIUSXM,
Speaker 2: the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.
Speaker 1: And I'm Karen Moscow. Join us again tomorrow morning for
Speaker 1: all the news you need to start your day right
Speaker 1: here on Bloomberg day Break