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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow.

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Speaker 3: Here are the stories we're following today, big tech earnings.

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Speaker 4: They will once again be the theme for markets this week,

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Speaker 4: and the Nasdaq will be in the spotlight after Friday's

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Speaker 4: nearly two percent surge, and as we hear from two

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Speaker 4: of the biggest tech companies. Bloomberg's John Tucker has a preview.

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Speaker 2: Apple and Amazon are both scheduled or report quarterly results

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Speaker 2: after the closing bill on Thursday. Investors will be watching

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Speaker 2: for more about Apple asking supplies to keep iPhone shipments

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Speaker 2: flat year on year. We're also hearing Apple expects revenue

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Speaker 2: to grow through price hikes for iPhone Pro models. Apple's

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Speaker 2: resilience on Chinese manufacturing also of concern because of souring

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Speaker 2: relations between Washington and Beijing, and investors will likely be

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Speaker 2: interested in anything that Apple says about AI. As for Amazon,

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Speaker 2: Bloomberg Intelligences watch to see if strength in streaming and

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Speaker 2: advertising will be offset by slowing consumer and enterprise spending. Also,

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Speaker 2: anything about online shopping and Amazon's push in the pharmacy

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Speaker 2: and grocery will be of interest. In New York. I'm

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Speaker 2: John Tucker, Bloomberg debreak.

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Speaker 3: All right, John, thanks well. Earnings are also very much

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Speaker 3: in focus overseas, and that has Heinegan investors crying in

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Speaker 3: their beer this morning with the detls from Bloomberg's You

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Speaker 3: and Pots in London.

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Speaker 2: You and good morning, Good.

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Speaker 5: Morning, Karon Nathan. First half operating profits slumping twenty two

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Speaker 5: percent on an adjusted basis. At Heineken, the world's second

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Speaker 5: largest brother, reporting beer volumes dropping more than expected after

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Speaker 5: its biggest price hikes in a decade. This as it

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Speaker 5: struggles to pass on high raw material costs to consumers

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Speaker 5: without driving them to cheaper brands. Hiderking shareholders waking up

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Speaker 5: to a nasty hangover this morning, with shares down as

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Speaker 5: much as six and a half percent. More widely, we're

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Speaker 5: two thirds of the way through European earning season, and

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Speaker 5: according to research from Bloomberg Intelligence, fifty percent of companies

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Speaker 5: have so far beaten consensus. In London, I'm une Pots,

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Speaker 5: Bloomberg daybreak.

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Speaker 4: Okay, ewan, thank you. Staying in Europe, Italy's economy unexpectedly

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Speaker 4: contracted in the second quarters. Domestic product shrank by three

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Speaker 4: tenths of one percent from the previous three months. That's

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Speaker 4: much worse than the zero growth analysts surveyed by Bloomberg

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Speaker 4: had expected.

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Speaker 3: Well Back here in the US, Nathan, the big economic

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Speaker 3: event comes on Friday with the July job support. Meantime,

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Speaker 3: economic heavyweights are weighing in on where US growth growth

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Speaker 3: goes from here. Minneapolis Fed President Neilkashkari says right hikes

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Speaker 3: will probably result in job losses and slower growth, and

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Speaker 3: that makes him optimistic on the fight against inflation.

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Speaker 2: Overall.

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Speaker 6: I think that the inflation outlook is quite positive, that

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Speaker 6: it should be slowly diminishing from here. But again, we've

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Speaker 6: just continued to be surprised by the dynamics of this

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Speaker 6: reopening economy, and so we can't prejudge it. We have

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Speaker 6: to let the data actually guide us.

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Speaker 3: Minneapolis Fed President neilkash Carey made the comments on Face

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Speaker 3: the Nation from CBS Sketch the program every Sunday on

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Speaker 3: Bloomberg Radio Nan Time.

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Speaker 4: In Asia, Karen Central Banking dominated the overnight trading session

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Speaker 4: thanks to a surprise move from the Bank of Japan.

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Speaker 4: The boj has stepped into the bond markets with unscheduled

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Speaker 4: purchases to bring down yields. That's after Japanese yields hit

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Speaker 4: their highest level in nine years. Bloomberg's Paul Dobson says,

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Speaker 4: the bank is clearly sending a message.

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Speaker 7: You know, the BJA is trying to tell us something

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Speaker 7: with this move. And what I think it's trying to

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Speaker 7: tell us is this doesn't want a kind of you know,

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Speaker 7: unseemly dash for the exit here. It doesn't want to

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Speaker 7: see a lot of volatility in the bond market. It

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Speaker 7: doesn't want to see us out one percent yields tomorrow,

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Speaker 7: even though it's said that okay, they can go up

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Speaker 7: towards that level.

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Speaker 4: Bloomberg's Paul Dobson says there is no clarity as to

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Speaker 4: when the bog might intervene again, and the yen has

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Speaker 4: weakened on the news that is currently trading at one

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Speaker 4: forty two point four to three against the dollar.

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Speaker 3: Wellly, economic data from China is also in focus. Nathan

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Speaker 3: economic activity loss more steam in July is manufacturing contracted

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Speaker 3: in the services sector weekend that has traders expecting more

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Speaker 3: stimulus measures from the government. Bloomberg's Rebecca Chewing that Wilkins

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Speaker 3: has more from Hong Kong.

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Speaker 8: Certainly sort of pessimistic tone in terms of the data itself,

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Speaker 8: but that's quite a contrast with what we've seen in

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Speaker 8: the market's response, and market's really betting on the promise

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Speaker 8: of policy support here. We still haven't seen many concrete,

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Speaker 8: tangible moves. But again, in a way, this sort of

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Speaker 8: weak of data that we're seeing coming out of China

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Speaker 8: reinforcing the expectations that policy makers will have to take

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Speaker 8: more comprehensive actions, particularly after we've seen this sort of duvish,

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Speaker 8: this tilt and more duvish tone.

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Speaker 3: Bloomberg's re Becca Chewing Milkins says stocks in China rose

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Speaker 3: more than a half of a percent overnight.

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Speaker 4: In corporate news, Karen Walmart has paid one point four

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Speaker 4: billion dollars to buy Tiger Global Management's remaining stake in

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Speaker 4: Flip cart. The transaction values the Indian e commerce jand

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Speaker 4: at thirty five billion dollars. That's according to a letter

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Speaker 4: sent by Tiger to investors that was obtained by Bloomberg News.

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Speaker 3: Well, we're also keeping an Aya Mattel this morning. Nathan

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Speaker 3: Barbie once again the number one movie in the country,

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Speaker 3: earning another ninety three million dollars in its second weekend.

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Speaker 3: Christopher Nolans Oppenheimer remains in second, earning another forty six

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Speaker 3: point two million.

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Speaker 4: And in political news, Karen Umer President Donald Trumps super

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Speaker 4: pac says it's legal bills are piling up. Bloomberg z

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Speaker 4: Ed Baxter has the story.

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Speaker 9: With a number of charges against Donald Trump and the

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Speaker 9: Maral Logo classified information case growing to forty His fundraising

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Speaker 9: pack Save America is due to announce today it has

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Speaker 9: spent forty point two million dollars on legal costs just

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Speaker 9: in the first half of the year.

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Speaker 10: The group has.

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Speaker 9: Already begun calling back donations it has made to other

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Speaker 9: action committees, and there's concern that this will really dent

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Speaker 9: the spending the group can do to try to get

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Speaker 9: candidates elected in San Francisco. I'm at Baxter Bloomberg Daybreak.

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Speaker 4: Time now to take a look at some of the

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Speaker 4: other stories making news in New York and around the

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Speaker 4: world with Bloomberg's Michael Barr.

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Speaker 11: Good morning, Michael, Good morning, Nathan rip Currents on New

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Speaker 11: York beaches that have claimed the lives of two teenagers

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Speaker 11: in the past week. Off Coney Island, a fifteen year

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Speaker 11: old boy was discovered late Saturday night after getting caught

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Speaker 11: in a current. Thursday, afternoon while playing with his younger

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Speaker 11: brother in an area under red flag warnings. Another massive

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Speaker 11: search at Jacob Rhese Beach in Queens on Friday after

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Speaker 11: a rip current took under a teenage swimmer, identifying a

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Speaker 11: body as nineteen year old Amadu Tim. Hours later, this

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Speaker 11: man spotted the body.

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Speaker 12: Just kept seeing like a little shadow of the water

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Speaker 12: and we got close up with my flash, lay on

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Speaker 12: it and it was him.

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Speaker 11: According to the National Weather Service, rip currents are the

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Speaker 11: third leading cause of weather related deaths. Ukraine is apparently

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Speaker 11: intensifying its drone strikes on Russian soil, hitting targets in Moscow. Meanwhile,

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Speaker 11: Russia backed Ukraine's second largest city, Kerkiev, overnight as heavy

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Speaker 11: battles were reported around a score of locations. Kiev says

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Speaker 11: Ukraine will begin talks with the United States this week

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Speaker 11: about security guarantees the US will make to Ukraine, while

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Speaker 11: its application to NATO remains pending. Former US Ambassador to Ukraine,

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Speaker 11: Stephen Pfeiffer says the Ukraine wants to join NATO because

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Speaker 11: membership comes with military protection.

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Speaker 13: I think there's a belief in Ukraine which is correct

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Speaker 13: that if Ukraine were in fact anchored in NATO, the

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Speaker 13: Russians would not attack, and so we're looking really, I think,

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Speaker 13: beyond this current roar.

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Speaker 11: The chief of staff for Ukraine's president also said officials

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Speaker 11: from a number of countries are preparing to meet in

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Speaker 11: Saudi Arabia to discuss a peace plan for Ukraine that

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Speaker 11: would hinge on the departure of all Russian troops. Senate

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Speaker 11: majority the leader, Chuck Schumer, is urging the House to

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Speaker 11: include the fendof Fentanyl Act and its Defense bill when

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Speaker 11: members return in September, Calling this a breakthrough moment in

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Speaker 11: the Fentanel crisis, The Democrat from New York says the

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Speaker 11: act will dramatically cut the amount of fentanyl coming into

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Speaker 11: the New York area and the rest of the country.

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Speaker 11: The bill would allow.

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Speaker 14: The President to declare a state of emergency and put

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Speaker 14: tough sanctions on China for sending US the precursor chemicals

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Speaker 14: and Mexico for making those chemicals into fentoel.

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Speaker 11: The legislation is part of the bipartisan Defense bill passed

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Speaker 11: by the Senate last week. Global News twenty four hours

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Speaker 11: a day, powered by more than twenty seven hundred journalists

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Speaker 11: nanalysts in over one hundred and twenty countries.

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Speaker 2: I'm Michael Barr.

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Speaker 11: This is Bloomberg, Nathan.

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Speaker 2: Thank you, Michael.

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Speaker 4: Time now for the Bloomberg Sports up Day. Good morning,

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Speaker 4: John stash How.

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Speaker 15: Good morning Nathan. Aaron Judge back playing for the Yankees.

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Speaker 15: Hit a home run Saturday, and yet not in the

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Speaker 15: lineup last night in Baltimore, not even as a DH

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Speaker 15: A lot of people wondering why. As it turned out,

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Speaker 15: hardly mattered, not when Louis Severino's giving up seven runs

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Speaker 15: in the first inning and the Orioles went on to

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Speaker 15: win nine to three, and Severnino, who in his first

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Speaker 15: seven seasons with the Yanks only once had an ERA

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Speaker 15: of more than three and a half, now has an

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Speaker 15: ERA of seven and a half. This was his fourth

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Speaker 15: start where he had allowed at least seven runs. The

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Speaker 15: only good news for the Yankees the Astros, Blue Jays,

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Speaker 15: and Red Sox, who are all ahead of them in

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Speaker 15: the wildcard chase, all also lost. Mets one beat the

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Speaker 15: Nationals at City Field five to two. Career win number

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Speaker 15: two fifty for Justin Verlander, who was then asked about

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Speaker 15: his future in New York in light of the Mets

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Speaker 15: recent trades of Max Scherzer and David Robertson.

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Speaker 12: When you see that happen, you know you can't help

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Speaker 12: but think. You know what's what's in store for next year,

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Speaker 12: and you know we played this game to win. You

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Speaker 12: want to win a championship and you want to you

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Speaker 12: don't have the opportunity to do so, So changed my

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Speaker 12: opinion a little bit.

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Speaker 15: Yeah, Mets GM Billy Effler insists the Mets recent moves

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Speaker 15: are not a fire sales shures are traded to Texas.

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Speaker 15: The Rangers have now also acquired the X Yankee Jordan

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Speaker 15: Montgomery from Saint Louis. Aaron Rodgers coming to the defense

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Speaker 15: of his Jets offensive coreator Nathaniel Hacket the last year

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Speaker 15: as the head coach in Denver, a job that now

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Speaker 15: belongs to Sean Payton, who recently said Hackett last year

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Speaker 15: did the worst coaching job in NFL history. Rodgers, who's

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Speaker 15: close to Hacket for their time in Green Bay, called

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Speaker 15: Peyton insecure. Jets play the Browns Thursday in Canton, Ohio.

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Speaker 15: Zach Wilson will start a quarterback Rodgers as expected, and

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Speaker 15: will not be John Stashellwerd Bloomberg.

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Speaker 10: Sports from Coast to Coast from New York to San Francisco,

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Speaker 10: Boston to Washington, DC, nationwide on Syrias exam, the Bloomberg

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Speaker 10: Business app and Bloomberg dot Com.

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Speaker 2: This is Bloomberg Daybreak.

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Speaker 4: Good morning, I'm Nathan Hager at the start of another

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Speaker 4: very busy week in the markets. We have about a

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Speaker 4: third of S and P five hundred listed companies reporting

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Speaker 4: earnings this week. Apple and Amazon will be the big

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Speaker 4: ones to watch later on in the week. Traders could

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Speaker 4: also be looking for more clues on the policy path

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Speaker 4: with the first of two monthly jobs reports before the

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Speaker 4: fed's next decision in September. Lots to discuss this morning

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Speaker 4: with Dennis Gardman, the former publisher of the Gartman Letter

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Speaker 4: now chairman of the University of acron Endowment Investment Committee.

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Speaker 4: And Dennis is here with us now. Good morning, Thanks

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Speaker 4: for being here. So it has been a tech driven

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Speaker 4: rally that has dominated this year. Ken earnings continue to

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Speaker 4: power stocks hired.

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Speaker 16: Dennis, that's a good question, and it's a question beyond

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Speaker 16: my canaida. At this point, I have been surprised by

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Speaker 16: the strength of the stock market, to be quite honest, shocked,

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Speaker 16: to be even more blunt. It has surprised me beyond belief.

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Speaker 16: The fact that we've got the CNN Fair and Greed

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Speaker 16: Index has gotten to eighty five. That's actually dropped a

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Speaker 16: little bit, but the put call ratio is historically low.

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Speaker 16: The fact that the leading economic indicators have fallen below

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Speaker 16: the coincident indicators. All of these things are indicative of

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Speaker 16: a market that is overbought and do for a substantive slide.

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Speaker 16: But nonetheless the market continues to go higher and earnings

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Speaker 16: continue to beat on most instances. So I'm surprised, I'm shocked,

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Speaker 16: I'm stunned, and I'm wrong. But am I going to

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Speaker 16: go and be a buyer of stocks at this level? No,

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Speaker 16: it's a way beyond anybody's wildless imagination as to where

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Speaker 16: they have war stocks could go, and I will stand

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Speaker 16: on the sidelines and watch from the sidelines.

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Speaker 4: Well, we did get some I guess rationalisation on this

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Speaker 4: rally this morning from Mike Wilson, who's also been pretty bearish,

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Speaker 4: the analyst of Morgan Stanley. He's comparing what we've seen

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Speaker 4: this year to twenty nineteen, calling it policy driven late

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Speaker 4: cycle phenomenon. Could that be a possible justification for you

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Speaker 4: as well?

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Speaker 16: It's very much a justification. Clearly, there has been governmental

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Speaker 16: policies that have been incumbent in the strength of the

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Speaker 16: stock market. But most important, I guess it's the amount

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Speaker 16: of cash that's been sitting upon the s or that

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Speaker 16: was sitting upon the sidelines, a lot of which has

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Speaker 16: been put into the market in the past several weeks,

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Speaker 16: several months. But yeah, it's been policy driven, it's been

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Speaker 16: earnings driven. Man strangely enough, it's been economically driven. The

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Speaker 16: economy has proven to be far more resilient, far stronger

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Speaker 16: than I had thought it would be. But nonetheless, I'll

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Speaker 16: go with history and say that as long as the

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Speaker 16: leading economic indicators continue to fall below the coincidence, as

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Speaker 16: long as the put call ratio continues to be as

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Speaker 16: low as it is, and as long as the CNN

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Speaker 16: and greed index continues to be as high as it is,

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Speaker 16: I'll either stand upon the sidelines or be short. I'm

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Speaker 16: modestly short in my own account, and the objective word

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Speaker 16: here is modestly.

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Speaker 4: How do you expect policy to go at this point

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Speaker 4: when we have seen continued strength in the economic data,

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Speaker 4: and at the same time we continue to hear policy

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Speaker 4: makers like Neil Cashcari just yesterday leaving open the possibility

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Speaker 4: of yet more rate hikes.

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Speaker 16: I've always thought that once we get to five and

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Speaker 16: a quarter five and a half, that would probably be

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Speaker 16: about the end of it. When I first when the

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Speaker 16: FED began the process of raising interest rates almost a

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Speaker 16: year and a half ago, I wrote at that time

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Speaker 16: that what we have to remember is historically the Fed,

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Speaker 16: once they changed policy and move from to a new direction,

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Speaker 16: take rates much farther for a longer period of time

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Speaker 16: than anybody wants to anticipate. When we were at zero,

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Speaker 16: I said, we go to five percent. Who was laughable

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Speaker 16: at the time. Here we are at five and a

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Speaker 16: quarter five and a half. Maybe there's one more tightening

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Speaker 16: to be incumbent in the set of reserve, but I

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Speaker 16: have my doubts as to whether that's likely or not.

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Speaker 16: Time only shall tell. We'll see what happens with the

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Speaker 16: next two employment numbers that are coming out, the first

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Speaker 16: one coming out this week. I haven't done my work

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Speaker 16: yet to figure out what I'm going to anticipate for

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Speaker 16: the non farm payrolls number, but it's probably going to

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Speaker 16: be a high number. There's probably one more, maybe at

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Speaker 16: most two more increases in the overnight said funds rate,

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Speaker 16: But the market is already looking towards the easying monetary policy,

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Speaker 16: and that's not going to happen until very late in

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Speaker 16: twenty twenty four, maybe even twenty twenty five, before the

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Speaker 16: Fed begins the policy of reducing the overnight said funds rate.

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Speaker 4: Got about a minute left here, Dennis. We did get

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Speaker 4: another surprise overnight from the Bank of Japan with this

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Speaker 4: bond buying intervention. Do you see a read through to

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Speaker 4: the US market from what the boj is doing.

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Speaker 16: It's for the first time in a very long period

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Speaker 16: of time that the BOG is actually tightening monetary policy slightly.

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Speaker 16: They're going to be I think the term that mister

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Speaker 16: used was flex They're going to be flexible and allowing

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Speaker 16: rates to go higher. But Japan, being one of the

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Speaker 16: largest buyers of the mess of US debt securities, if

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Speaker 16: they're going to be allowing rates to go hire over there,

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Speaker 16: they're going to be allowing rates to go high over

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Speaker 16: here as money comes out of the United States and

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Speaker 16: moves to Japan at the margin. So it's not supportive

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Speaker 16: of the US bond market.

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