Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow.
Speaker 3: Here are the stories we're following today, big tech earnings.
Speaker 4: They will once again be the theme for markets this week,
Speaker 4: and the Nasdaq will be in the spotlight after Friday's
Speaker 4: nearly two percent surge, and as we hear from two
Speaker 4: of the biggest tech companies. Bloomberg's John Tucker has a preview.
Speaker 2: Apple and Amazon are both scheduled or report quarterly results
Speaker 2: after the closing bill on Thursday. Investors will be watching
Speaker 2: for more about Apple asking supplies to keep iPhone shipments
Speaker 2: flat year on year. We're also hearing Apple expects revenue
Speaker 2: to grow through price hikes for iPhone Pro models. Apple's
Speaker 2: resilience on Chinese manufacturing also of concern because of souring
Speaker 2: relations between Washington and Beijing, and investors will likely be
Speaker 2: interested in anything that Apple says about AI. As for Amazon,
Speaker 2: Bloomberg Intelligences watch to see if strength in streaming and
Speaker 2: advertising will be offset by slowing consumer and enterprise spending. Also,
Speaker 2: anything about online shopping and Amazon's push in the pharmacy
Speaker 2: and grocery will be of interest. In New York. I'm
Speaker 2: John Tucker, Bloomberg debreak.
Speaker 3: All right, John, thanks well. Earnings are also very much
Speaker 3: in focus overseas, and that has Heinegan investors crying in
Speaker 3: their beer this morning with the detls from Bloomberg's You
Speaker 3: and Pots in London.
Speaker 2: You and good morning, Good.
Speaker 5: Morning, Karon Nathan. First half operating profits slumping twenty two
Speaker 5: percent on an adjusted basis. At Heineken, the world's second
Speaker 5: largest brother, reporting beer volumes dropping more than expected after
Speaker 5: its biggest price hikes in a decade. This as it
Speaker 5: struggles to pass on high raw material costs to consumers
Speaker 5: without driving them to cheaper brands. Hiderking shareholders waking up
Speaker 5: to a nasty hangover this morning, with shares down as
Speaker 5: much as six and a half percent. More widely, we're
Speaker 5: two thirds of the way through European earning season, and
Speaker 5: according to research from Bloomberg Intelligence, fifty percent of companies
Speaker 5: have so far beaten consensus. In London, I'm une Pots,
Speaker 5: Bloomberg daybreak.
Speaker 4: Okay, ewan, thank you. Staying in Europe, Italy's economy unexpectedly
Speaker 4: contracted in the second quarters. Domestic product shrank by three
Speaker 4: tenths of one percent from the previous three months. That's
Speaker 4: much worse than the zero growth analysts surveyed by Bloomberg
Speaker 4: had expected.
Speaker 3: Well Back here in the US, Nathan, the big economic
Speaker 3: event comes on Friday with the July job support. Meantime,
Speaker 3: economic heavyweights are weighing in on where US growth growth
Speaker 3: goes from here. Minneapolis Fed President Neilkashkari says right hikes
Speaker 3: will probably result in job losses and slower growth, and
Speaker 3: that makes him optimistic on the fight against inflation.
Speaker 2: Overall.
Speaker 6: I think that the inflation outlook is quite positive, that
Speaker 6: it should be slowly diminishing from here. But again, we've
Speaker 6: just continued to be surprised by the dynamics of this
Speaker 6: reopening economy, and so we can't prejudge it. We have
Speaker 6: to let the data actually guide us.
Speaker 3: Minneapolis Fed President neilkash Carey made the comments on Face
Speaker 3: the Nation from CBS Sketch the program every Sunday on
Speaker 3: Bloomberg Radio Nan Time.
Speaker 4: In Asia, Karen Central Banking dominated the overnight trading session
Speaker 4: thanks to a surprise move from the Bank of Japan.
Speaker 4: The boj has stepped into the bond markets with unscheduled
Speaker 4: purchases to bring down yields. That's after Japanese yields hit
Speaker 4: their highest level in nine years. Bloomberg's Paul Dobson says,
Speaker 4: the bank is clearly sending a message.
Speaker 7: You know, the BJA is trying to tell us something
Speaker 7: with this move. And what I think it's trying to
Speaker 7: tell us is this doesn't want a kind of you know,
Speaker 7: unseemly dash for the exit here. It doesn't want to
Speaker 7: see a lot of volatility in the bond market. It
Speaker 7: doesn't want to see us out one percent yields tomorrow,
Speaker 7: even though it's said that okay, they can go up
Speaker 7: towards that level.
Speaker 4: Bloomberg's Paul Dobson says there is no clarity as to
Speaker 4: when the bog might intervene again, and the yen has
Speaker 4: weakened on the news that is currently trading at one
Speaker 4: forty two point four to three against the dollar.
Speaker 3: Wellly, economic data from China is also in focus. Nathan
Speaker 3: economic activity loss more steam in July is manufacturing contracted
Speaker 3: in the services sector weekend that has traders expecting more
Speaker 3: stimulus measures from the government. Bloomberg's Rebecca Chewing that Wilkins
Speaker 3: has more from Hong Kong.
Speaker 8: Certainly sort of pessimistic tone in terms of the data itself,
Speaker 8: but that's quite a contrast with what we've seen in
Speaker 8: the market's response, and market's really betting on the promise
Speaker 8: of policy support here. We still haven't seen many concrete,
Speaker 8: tangible moves. But again, in a way, this sort of
Speaker 8: weak of data that we're seeing coming out of China
Speaker 8: reinforcing the expectations that policy makers will have to take
Speaker 8: more comprehensive actions, particularly after we've seen this sort of duvish,
Speaker 8: this tilt and more duvish tone.
Speaker 3: Bloomberg's re Becca Chewing Milkins says stocks in China rose
Speaker 3: more than a half of a percent overnight.
Speaker 4: In corporate news, Karen Walmart has paid one point four
Speaker 4: billion dollars to buy Tiger Global Management's remaining stake in
Speaker 4: Flip cart. The transaction values the Indian e commerce jand
Speaker 4: at thirty five billion dollars. That's according to a letter
Speaker 4: sent by Tiger to investors that was obtained by Bloomberg News.
Speaker 3: Well, we're also keeping an Aya Mattel this morning. Nathan
Speaker 3: Barbie once again the number one movie in the country,
Speaker 3: earning another ninety three million dollars in its second weekend.
Speaker 3: Christopher Nolans Oppenheimer remains in second, earning another forty six
Speaker 3: point two million.
Speaker 4: And in political news, Karen Umer President Donald Trumps super
Speaker 4: pac says it's legal bills are piling up. Bloomberg z
Speaker 4: Ed Baxter has the story.
Speaker 9: With a number of charges against Donald Trump and the
Speaker 9: Maral Logo classified information case growing to forty His fundraising
Speaker 9: pack Save America is due to announce today it has
Speaker 9: spent forty point two million dollars on legal costs just
Speaker 9: in the first half of the year.
Speaker 10: The group has.
Speaker 9: Already begun calling back donations it has made to other
Speaker 9: action committees, and there's concern that this will really dent
Speaker 9: the spending the group can do to try to get
Speaker 9: candidates elected in San Francisco. I'm at Baxter Bloomberg Daybreak.
Speaker 4: Time now to take a look at some of the
Speaker 4: other stories making news in New York and around the
Speaker 4: world with Bloomberg's Michael Barr.
Speaker 11: Good morning, Michael, Good morning, Nathan rip Currents on New
Speaker 11: York beaches that have claimed the lives of two teenagers
Speaker 11: in the past week. Off Coney Island, a fifteen year
Speaker 11: old boy was discovered late Saturday night after getting caught
Speaker 11: in a current. Thursday, afternoon while playing with his younger
Speaker 11: brother in an area under red flag warnings. Another massive
Speaker 11: search at Jacob Rhese Beach in Queens on Friday after
Speaker 11: a rip current took under a teenage swimmer, identifying a
Speaker 11: body as nineteen year old Amadu Tim. Hours later, this
Speaker 11: man spotted the body.
Speaker 12: Just kept seeing like a little shadow of the water
Speaker 12: and we got close up with my flash, lay on
Speaker 12: it and it was him.
Speaker 11: According to the National Weather Service, rip currents are the
Speaker 11: third leading cause of weather related deaths. Ukraine is apparently
Speaker 11: intensifying its drone strikes on Russian soil, hitting targets in Moscow. Meanwhile,
Speaker 11: Russia backed Ukraine's second largest city, Kerkiev, overnight as heavy
Speaker 11: battles were reported around a score of locations. Kiev says
Speaker 11: Ukraine will begin talks with the United States this week
Speaker 11: about security guarantees the US will make to Ukraine, while
Speaker 11: its application to NATO remains pending. Former US Ambassador to Ukraine,
Speaker 11: Stephen Pfeiffer says the Ukraine wants to join NATO because
Speaker 11: membership comes with military protection.
Speaker 13: I think there's a belief in Ukraine which is correct
Speaker 13: that if Ukraine were in fact anchored in NATO, the
Speaker 13: Russians would not attack, and so we're looking really, I think,
Speaker 13: beyond this current roar.
Speaker 11: The chief of staff for Ukraine's president also said officials
Speaker 11: from a number of countries are preparing to meet in
Speaker 11: Saudi Arabia to discuss a peace plan for Ukraine that
Speaker 11: would hinge on the departure of all Russian troops. Senate
Speaker 11: majority the leader, Chuck Schumer, is urging the House to
Speaker 11: include the fendof Fentanyl Act and its Defense bill when
Speaker 11: members return in September, Calling this a breakthrough moment in
Speaker 11: the Fentanel crisis, The Democrat from New York says the
Speaker 11: act will dramatically cut the amount of fentanyl coming into
Speaker 11: the New York area and the rest of the country.
Speaker 11: The bill would allow.
Speaker 14: The President to declare a state of emergency and put
Speaker 14: tough sanctions on China for sending US the precursor chemicals
Speaker 14: and Mexico for making those chemicals into fentoel.
Speaker 11: The legislation is part of the bipartisan Defense bill passed
Speaker 11: by the Senate last week. Global News twenty four hours
Speaker 11: a day, powered by more than twenty seven hundred journalists
Speaker 11: nanalysts in over one hundred and twenty countries.
Speaker 2: I'm Michael Barr.
Speaker 11: This is Bloomberg, Nathan.
Speaker 2: Thank you, Michael.
Speaker 4: Time now for the Bloomberg Sports up Day. Good morning,
Speaker 4: John stash How.
Speaker 15: Good morning Nathan. Aaron Judge back playing for the Yankees.
Speaker 15: Hit a home run Saturday, and yet not in the
Speaker 15: lineup last night in Baltimore, not even as a DH
Speaker 15: A lot of people wondering why. As it turned out,
Speaker 15: hardly mattered, not when Louis Severino's giving up seven runs
Speaker 15: in the first inning and the Orioles went on to
Speaker 15: win nine to three, and Severnino, who in his first
Speaker 15: seven seasons with the Yanks only once had an ERA
Speaker 15: of more than three and a half, now has an
Speaker 15: ERA of seven and a half. This was his fourth
Speaker 15: start where he had allowed at least seven runs. The
Speaker 15: only good news for the Yankees the Astros, Blue Jays,
Speaker 15: and Red Sox, who are all ahead of them in
Speaker 15: the wildcard chase, all also lost. Mets one beat the
Speaker 15: Nationals at City Field five to two. Career win number
Speaker 15: two fifty for Justin Verlander, who was then asked about
Speaker 15: his future in New York in light of the Mets
Speaker 15: recent trades of Max Scherzer and David Robertson.
Speaker 12: When you see that happen, you know you can't help
Speaker 12: but think. You know what's what's in store for next year,
Speaker 12: and you know we played this game to win. You
Speaker 12: want to win a championship and you want to you
Speaker 12: don't have the opportunity to do so, So changed my
Speaker 12: opinion a little bit.
Speaker 15: Yeah, Mets GM Billy Effler insists the Mets recent moves
Speaker 15: are not a fire sales shures are traded to Texas.
Speaker 15: The Rangers have now also acquired the X Yankee Jordan
Speaker 15: Montgomery from Saint Louis. Aaron Rodgers coming to the defense
Speaker 15: of his Jets offensive coreator Nathaniel Hacket the last year
Speaker 15: as the head coach in Denver, a job that now
Speaker 15: belongs to Sean Payton, who recently said Hackett last year
Speaker 15: did the worst coaching job in NFL history. Rodgers, who's
Speaker 15: close to Hacket for their time in Green Bay, called
Speaker 15: Peyton insecure. Jets play the Browns Thursday in Canton, Ohio.
Speaker 15: Zach Wilson will start a quarterback Rodgers as expected, and
Speaker 15: will not be John Stashellwerd Bloomberg.
Speaker 10: Sports from Coast to Coast from New York to San Francisco,
Speaker 10: Boston to Washington, DC, nationwide on Syrias exam, the Bloomberg
Speaker 10: Business app and Bloomberg dot Com.
Speaker 2: This is Bloomberg Daybreak.
Speaker 4: Good morning, I'm Nathan Hager at the start of another
Speaker 4: very busy week in the markets. We have about a
Speaker 4: third of S and P five hundred listed companies reporting
Speaker 4: earnings this week. Apple and Amazon will be the big
Speaker 4: ones to watch later on in the week. Traders could
Speaker 4: also be looking for more clues on the policy path
Speaker 4: with the first of two monthly jobs reports before the
Speaker 4: fed's next decision in September. Lots to discuss this morning
Speaker 4: with Dennis Gardman, the former publisher of the Gartman Letter
Speaker 4: now chairman of the University of acron Endowment Investment Committee.
Speaker 4: And Dennis is here with us now. Good morning, Thanks
Speaker 4: for being here. So it has been a tech driven
Speaker 4: rally that has dominated this year. Ken earnings continue to
Speaker 4: power stocks hired.
Speaker 16: Dennis, that's a good question, and it's a question beyond
Speaker 16: my canaida. At this point, I have been surprised by
Speaker 16: the strength of the stock market, to be quite honest, shocked,
Speaker 16: to be even more blunt. It has surprised me beyond belief.
Speaker 16: The fact that we've got the CNN Fair and Greed
Speaker 16: Index has gotten to eighty five. That's actually dropped a
Speaker 16: little bit, but the put call ratio is historically low.
Speaker 16: The fact that the leading economic indicators have fallen below
Speaker 16: the coincident indicators. All of these things are indicative of
Speaker 16: a market that is overbought and do for a substantive slide.
Speaker 16: But nonetheless the market continues to go higher and earnings
Speaker 16: continue to beat on most instances. So I'm surprised, I'm shocked,
Speaker 16: I'm stunned, and I'm wrong. But am I going to
Speaker 16: go and be a buyer of stocks at this level? No,
Speaker 16: it's a way beyond anybody's wildless imagination as to where
Speaker 16: they have war stocks could go, and I will stand
Speaker 16: on the sidelines and watch from the sidelines.
Speaker 4: Well, we did get some I guess rationalisation on this
Speaker 4: rally this morning from Mike Wilson, who's also been pretty bearish,
Speaker 4: the analyst of Morgan Stanley. He's comparing what we've seen
Speaker 4: this year to twenty nineteen, calling it policy driven late
Speaker 4: cycle phenomenon. Could that be a possible justification for you
Speaker 4: as well?
Speaker 16: It's very much a justification. Clearly, there has been governmental
Speaker 16: policies that have been incumbent in the strength of the
Speaker 16: stock market. But most important, I guess it's the amount
Speaker 16: of cash that's been sitting upon the s or that
Speaker 16: was sitting upon the sidelines, a lot of which has
Speaker 16: been put into the market in the past several weeks,
Speaker 16: several months. But yeah, it's been policy driven, it's been
Speaker 16: earnings driven. Man strangely enough, it's been economically driven. The
Speaker 16: economy has proven to be far more resilient, far stronger
Speaker 16: than I had thought it would be. But nonetheless, I'll
Speaker 16: go with history and say that as long as the
Speaker 16: leading economic indicators continue to fall below the coincidence, as
Speaker 16: long as the put call ratio continues to be as
Speaker 16: low as it is, and as long as the CNN
Speaker 16: and greed index continues to be as high as it is,
Speaker 16: I'll either stand upon the sidelines or be short. I'm
Speaker 16: modestly short in my own account, and the objective word
Speaker 16: here is modestly.
Speaker 4: How do you expect policy to go at this point
Speaker 4: when we have seen continued strength in the economic data,
Speaker 4: and at the same time we continue to hear policy
Speaker 4: makers like Neil Cashcari just yesterday leaving open the possibility
Speaker 4: of yet more rate hikes.
Speaker 16: I've always thought that once we get to five and
Speaker 16: a quarter five and a half, that would probably be
Speaker 16: about the end of it. When I first when the
Speaker 16: FED began the process of raising interest rates almost a
Speaker 16: year and a half ago, I wrote at that time
Speaker 16: that what we have to remember is historically the Fed,
Speaker 16: once they changed policy and move from to a new direction,
Speaker 16: take rates much farther for a longer period of time
Speaker 16: than anybody wants to anticipate. When we were at zero,
Speaker 16: I said, we go to five percent. Who was laughable
Speaker 16: at the time. Here we are at five and a
Speaker 16: quarter five and a half. Maybe there's one more tightening
Speaker 16: to be incumbent in the set of reserve, but I
Speaker 16: have my doubts as to whether that's likely or not.
Speaker 16: Time only shall tell. We'll see what happens with the
Speaker 16: next two employment numbers that are coming out, the first
Speaker 16: one coming out this week. I haven't done my work
Speaker 16: yet to figure out what I'm going to anticipate for
Speaker 16: the non farm payrolls number, but it's probably going to
Speaker 16: be a high number. There's probably one more, maybe at
Speaker 16: most two more increases in the overnight said funds rate,
Speaker 16: But the market is already looking towards the easying monetary policy,
Speaker 16: and that's not going to happen until very late in
Speaker 16: twenty twenty four, maybe even twenty twenty five, before the
Speaker 16: Fed begins the policy of reducing the overnight said funds rate.
Speaker 4: Got about a minute left here, Dennis. We did get
Speaker 4: another surprise overnight from the Bank of Japan with this
Speaker 4: bond buying intervention. Do you see a read through to
Speaker 4: the US market from what the boj is doing.
Speaker 16: It's for the first time in a very long period
Speaker 16: of time that the BOG is actually tightening monetary policy slightly.
Speaker 16: They're going to be I think the term that mister
Speaker 16: used was flex They're going to be flexible and allowing
Speaker 16: rates to go higher. But Japan, being one of the
Speaker 16: largest buyers of the mess of US debt securities, if
Speaker 16: they're going to be allowing rates to go hire over there,
Speaker 16: they're going to be allowing rates to go high over
Speaker 16: here as money comes out of the United States and
Speaker 16: moves to Japan at the margin. So it's not supportive
Speaker 16: of the US bond market.
Speaker 1: This is Bloomberg Daybreak today. Your morning brief on the
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