Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is is Bloomberg
Speaker 1: Day Bright for Wednesday, September two. Coming up this sour
Speaker 1: evacuations are underway and theme parks are shutting their doors
Speaker 1: as hurricaney and aims at Florida. Global stocks are heading
Speaker 1: for the lowest level in almost two years. Ten year
Speaker 1: treasury yields breached four percent, and the dollar rises after
Speaker 1: the White House tops down the prospect of a currency agreement,
Speaker 1: mixed reaction to the so called tent City for migrants
Speaker 1: and the Bronx plus Ukrainian President Zelenski dismisses the Krumlin
Speaker 1: run referendum as a farce. I'm Michael blar more a hand,
Speaker 1: I'm John Stash Edwards, the Yankees one ofto and clips
Speaker 1: the Al East. The Met's lost in an outide for
Speaker 1: first with Atlanta. That's all Strady Ahead on Bloomberg Day
Speaker 1: Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one O six one, Boston, Bloomberg nine sixties,
Speaker 1: San Francisco, Sirius x M one nine Team and around
Speaker 1: the World Old on Bloomberg Radio dot Com and via
Speaker 1: the Bloomberg Business app. Good morning, I'm Nathan Hagar and
Speaker 1: I'm Karen Moscow. US stock index futures are lower this morning,
Speaker 1: and we are coming up to five out one on
Speaker 1: Wall Street, and we checked the markets every fifteen minutes
Speaker 1: throughout the trading day on Bloomberg. SNP futures down twenty five,
Speaker 1: boys at own futures down a hundred forty nine, nasdack
Speaker 1: futures down a hundred twenty two, and the tenure treasury
Speaker 1: down ten thirty seconds. You know, three point nine eight percent.
Speaker 1: They yield on the two year four point to three percent. Nathan, Karen.
Speaker 1: We'll have much more on the market turmoil in just
Speaker 1: a minute, but first you want to bring you up
Speaker 1: to date on Hurricane Ian. It has just been upgraded
Speaker 1: to a dangerous category four storm with top winds at
Speaker 1: a hundred forty min taking him at Florida's Gulf coast.
Speaker 1: Bloomberg Meteorologist Rob Carroll and joins US now with the
Speaker 1: latest on the track of the storm. Good morning, Rob,
Speaker 1: Nathan and Karen. Hurricane Ian continues to move north northeast
Speaker 1: and around ten miles an hour this morning. Is a
Speaker 1: dangerous hurricane. The winds in excess of a hundred and
Speaker 1: twenty miles an hour. We were seeing wind gus over
Speaker 1: sixty miles an hour earlier this morning in Key West.
Speaker 1: The store will make landfall later today somewhere north of
Speaker 1: Fort Myers, who as far north as Tampa, and then
Speaker 1: it will start to move inland. We're expecting the hurricane
Speaker 1: force winds to extend out at least forty five miles
Speaker 1: from the center of circulation, so there's gonna be a
Speaker 1: lot of damage across that portion of West Florida between
Speaker 1: Fort Myers and the Tampa area. Storm surge is probably
Speaker 1: going to be an excess of ten feet. We'll see
Speaker 1: wind us over a hundred and twenty five miles an hour,
Speaker 1: and along the path of the storm, anywhere from five
Speaker 1: to ten inches of rain is likely to fall over
Speaker 1: the course of the next forty eight hours. Nathan and
Speaker 1: Karen alright, Rob, thank you, of course. He'll be checking
Speaker 1: in with Bloomberg meteorologist robbed Caroline throughout the morning, well
Speaker 1: ahead of the store, and Disney SeaWorld and Universal Orlando
Speaker 1: have shut their Florida theme parks through at least tomorrow.
Speaker 1: Tampa's main airport closed up yesterday. Orlando plans to do
Speaker 1: the same later this morning. Governor Rhonda Santis says about
Speaker 1: two and a half million Floridians need to get out
Speaker 1: of harm's way. If you are in an evacuation zone,
Speaker 1: particularly in those southwest Florida counties. Uh, you know your
Speaker 1: time to evacuate is coming to an end. Uh. You
Speaker 1: need to evacuate now. Governor around to Santas spoke with
Speaker 1: the President Biden last night. The President says FEMA has
Speaker 1: deployed seven hundred people to Florida and up to seven
Speaker 1: thousand members of the National Guard are being activated. The
Speaker 1: storm has also forced the House January six Committee to
Speaker 1: postpone its latest public hearing this afternoon. No new date
Speaker 1: has been set. All right, Karen, Let's get back to
Speaker 1: the markets now. The equity sell off continues this morning.
Speaker 1: Global stocks are heading for their lowest level in almost
Speaker 1: two years. The yield on tenure treasuries breached four percent
Speaker 1: for the first time since two thousand eight, and the
Speaker 1: dollar is soaring After the White House talked down the
Speaker 1: prospect of a currency agreement to weaken the green back.
Speaker 1: White House National Economic Council Director Briand says he does
Speaker 1: not expect another five type deal among major economies to
Speaker 1: counter dollar strength. Do you see any possibility of a
Speaker 1: global cord to kind of adjust uh currency values the
Speaker 1: way there was with the Plaza qarders. That's just not
Speaker 1: something you're focused on. I don't anticipate that. That's UH.
Speaker 1: That that's that, that's where we're headed. White House National
Speaker 1: Economic Council Director Brian d spoke there with David Rubinstein
Speaker 1: on peer to peer conversations on Bloomberg Television. Well Naked.
Speaker 1: An aggressive FED has also a few of the dollars rally.
Speaker 1: A chorus of central bankers is doubling down in the
Speaker 1: need to keep raising rates in the face of inflation.
Speaker 1: San Francisco FED President Mary Daley says the hikes could
Speaker 1: have an impact on the labor market gap. To balance
Speaker 1: that off with our dual mandate with full employment and
Speaker 1: trying to navigate that to bring inflation down while we
Speaker 1: do so as gently as possible, not to tip unnecessarily
Speaker 1: the economy into a downturn that actually influences the full
Speaker 1: employment part of our mandate is a struggle in San Francisco.
Speaker 1: FED President Mary Daily is currently not a voting member
Speaker 1: on the f O m C well the dollars. Recent
Speaker 1: gains against the euro and the pound accelerated after the
Speaker 1: UK announced massive tax cuts last week. Bank of England
Speaker 1: chief economist Hugh Phill says a significant monetary policy response
Speaker 1: is needed in a context where there is a rebalancing
Speaker 1: of the macro policy environment and an anticipation of loose,
Speaker 1: looser fiscal policy. I think it's hard not to draw
Speaker 1: the conclusion that all this will require a significant monetary
Speaker 1: policy response. Bo e's chief economist hub Phill says the
Speaker 1: best time to act is at the institution's next meeting
Speaker 1: in November. Meanwhile, Nathan, global criticism of the UK's fiscal
Speaker 1: plan is growing this morning, and let's go to London
Speaker 1: and get the details from Bloomberg's un parts. Good morning U,
Speaker 1: and good morning Nathan and Karen. The i m F
Speaker 1: has delivered a stinging rebuke of the UK's new unfunded
Speaker 1: tax plans. The International Monetary Funds says the government's package
Speaker 1: of tax cuts, the biggest in fifty years, are excessive
Speaker 1: and in need of revision. It says physical policy should
Speaker 1: not work across purposes with monetary to see Charles Laquasi
Speaker 1: Quos meets with top Bullstreet bankers in London. Later today,
Speaker 1: Hill sets up by his UK gowth plan is still
Speaker 1: the right thing to do in London, Amun puts splin
Speaker 1: Bok day break, Are you and thanks? Back in the US,
Speaker 1: the White House may be getting ready to shake up
Speaker 1: its economic team. According to Axios, officials are preparing for
Speaker 1: Treasury Secretary Janet Yelling to depart after the midterms. A
Speaker 1: White House spokesperson says the Secretary does not plan to leave,
Speaker 1: and top economic advisor Brian Deese also says he has
Speaker 1: no plans to depart either. Melon Capitol Hill Nathan House
Speaker 1: Democrats have released a bill that would restrict stock ownership
Speaker 1: for high ranking government officials that includes members of Congress,
Speaker 1: the president, vice president, Supreme Court justices, and their spouses
Speaker 1: and dependent children. It covers commodities, futures, cryptocurrency, or other
Speaker 1: digital assets. Public officials would have to put them in
Speaker 1: a blind trust or divest their whol things. And we're
Speaker 1: watching shares of Biogen this morning. They are soaring up
Speaker 1: forty six percent in the pre market. Biogen and its partner,
Speaker 1: as I say, they're drugs significantly slow to Alzheimer's disease.
Speaker 1: That would make it the first medicine to blunt progression
Speaker 1: of the most common dementia in a definitive, large scale trial.
Speaker 1: Bloomber day Break is brought to you by se I
Speaker 1: Imagine your asset management firms. Operational infrastructure is a competitive
Speaker 1: advantage that see I show you how at se I
Speaker 1: c dot com slash I m s. This is Bloomberg.
Speaker 1: Thank you, Karen. It's five oh seven on wall Stream.
Speaker 1: We got an accident on the South New York State
Speaker 1: through a It's close to the tapan Zee Bridge and
Speaker 1: it's fifty four degrees in Central Park. Michael Barr has
Speaker 1: more on what's going on in New York and around
Speaker 1: the world. Good morning, Michael, Good morning Nathan. This controversy
Speaker 1: over a temporary humanitarian relief center being built in the
Speaker 1: Bronx as more immigrants arrived from Texas. The so called
Speaker 1: Tent City and Orchard Beach will be heated and can
Speaker 1: house up to a thousand migrants. Mayor Eric Adams says
Speaker 1: the tents are supposed to be a temporary stopped from migrants.
Speaker 1: Says they get on their feet. We want to make
Speaker 1: sure that we bring people into a safe, clean environment
Speaker 1: as we process them for a few days to figure
Speaker 1: out their knees and move them to the right location.
Speaker 1: But immigrant rights advocates say this is a terrible location,
Speaker 1: far from mass transit or other services the migrants might need,
Speaker 1: and some residents say they are fearful. New York Mayor
Speaker 1: Eric Adams talked about his return from Puerto Rico and
Speaker 1: the Dominican Republic and the aftermath of Hurricane Fiona. New
Speaker 1: York lawmakers are calling for more federal aid to help
Speaker 1: with recovery for the island. New York City Council Member
Speaker 1: Oswald pholice, what's happening in Puerto Rico and the Dominican
Speaker 1: Republic is extremely sad. It's a horrible tragedy. These are
Speaker 1: communities that have worked for everything that they have, those
Speaker 1: small businesses, those homes, they have worked for it. Council
Speaker 1: Member Police says the City of New York will be
Speaker 1: with Puerto Rico and the Dominican Republic every step of
Speaker 1: the way. Moscow backed officials declared that all four occupied
Speaker 1: regions in Ukraine voted in favor of joining Russia. Ussia
Speaker 1: conducted what Ukrainian leader Voladimir Zelenski called a sham referendum.
Speaker 1: US Ambassador Linda Thomas Greenfield the United States will never
Speaker 1: recognize any territory Russia attempts to seize are allegedly annex
Speaker 1: as anything other than part of Ukraine. Ambassador Thomas Greenfield
Speaker 1: the US will allow a limited number of refugees in three.
Speaker 1: President Biden said he would welcome up to a hundred
Speaker 1: twenty five thousand refugees this year and will let in
Speaker 1: the same number in the next one of the January
Speaker 1: sixth rioters who attack police officer Michael Phone has been
Speaker 1: sentenced more than seven years in prison. Kyle Young a
Speaker 1: Vama began crying and begging for forgiveness during his sentencing.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred
Speaker 1: journalists and analysts in more than a hundred twenty countries.
Speaker 1: How Michael Barr and this is Bloomberg, Nathan, Thank you,
Speaker 1: Michael five O nine on Street Time for the Blueberg
Speaker 1: Sports Update. Good Morning, John stenshow in Morning Night. Then
Speaker 1: the Yankees open last night's celebration in Toronto not the
Speaker 1: only one they'll have. They beat the Blue Jays five
Speaker 1: to two. Is Labor Torres at three hit three RBIs,
Speaker 1: and Jamison ti Own pitched into the eighth inning, got
Speaker 1: his team leading fourteenth win for Aaron Judge, a line
Speaker 1: out in the first inning, then four straight walks. So again,
Speaker 1: no home run numbers sixty one, but a division title
Speaker 1: for the Yanks there twenty, and they take advantage of
Speaker 1: the new format where the top two teams get a
Speaker 1: first round by into the division series. So in the
Speaker 1: a L, that's the Yanks and Astros. In the NL,
Speaker 1: the Dodgers will be joined by whoever wins the NL East.
Speaker 1: And right now that's a flat footed tie between the
Speaker 1: Mets and Bray's Atlanta one eight two at Washington. The
Speaker 1: Mets lost at City Field in Miami, six to four.
Speaker 1: Carlos Carrasco lasted just three innings, gave up four runs,
Speaker 1: Trevor Williams allowed two more, peele Lonzo and defeat a
Speaker 1: three run homer is forty. He leads the majors with
Speaker 1: a hundred and thirty one rb I seven games ago,
Speaker 1: including three this weekend in Atlanta. If the two teams
Speaker 1: finished in a tie, it's the Mets who will almost
Speaker 1: certainly won the tie break. For the only way Atlanta
Speaker 1: wins the season series is if they sweep this weekend,
Speaker 1: and if they do, it's unlikely the two teams will
Speaker 1: finished tie. The Giants made official the knee injury suffered
Speaker 1: by Sterling Shepard Monday night is a season and being
Speaker 1: torn intl all as well in Brooklyn after at Turtlene
Speaker 1: off season where Kevin Rant demand of the Nets trader
Speaker 1: unless they fire coach neednt knowing Kevin, as long as
Speaker 1: I haven't didn't really bother me the way, maybe everyone
Speaker 1: would think, you know, that's a part of being competitors.
Speaker 1: I wasn't like um overly surprised, and I wasn't even
Speaker 1: said the next are like a family, and all families
Speaker 1: have issues, John Stature, that were Bloomberg Sports all right, John,
Speaker 1: thanks SMP futures right now down thirty five points, Sound
Speaker 1: Futures down two and at thirty three. Nastack futures leading
Speaker 1: the declines this morning, down one or a hundred forty
Speaker 1: nine points. Tenure Treasury down fourteen thirty seconds. The yield
Speaker 1: back at four percent yield on the two year four
Speaker 1: to five. As we continue to track Category four Hurricane
Speaker 1: Ian taking aim at Fars Gulf Coast. We check in
Speaker 1: next with Bloomberg senior insurance analist, Matthew Palazola Bloomberg eleven
Speaker 1: three oh weather sunny today in New York I near
Speaker 1: seventy degrees up for sixties tomorrow and Friday. Right now,
Speaker 1: it's fifty four under a clear sky in Central Park.
Speaker 1: Good morning, markets, headlines and breaking news twenty four hours
Speaker 1: a day at Bloomberg dot Com, the Bloomberg Business at
Speaker 1: and at Bloomberg Quick Tape. This is a Bloomberg Business
Speaker 1: Flash and I'm Karen Moscow. The dollars soaring into another
Speaker 1: record after the White House talked down the prospect of
Speaker 1: weakening the currency, the continuing global bond route, pushing ten
Speaker 1: year treasury yields to the highest and S two thousand
Speaker 1: eight and UK thirty year yields to the highest. Since
Speaker 1: we checked the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg, and futures are lower. SNP futures down
Speaker 1: forty two points down, futures down two hundred seventy four,
Speaker 1: nasdack futures down one hundred seventy seven. The decks in
Speaker 1: Germany is down two point one percent ten Your treasury
Speaker 1: down fourteen thirty seconds yield four percent. The yield on
Speaker 1: the two year four point to five percent. Nine X
Speaker 1: Screwed oil is down to ten percent or thirteen cents
Speaker 1: and seventy eight dollars thirty eight cents of barrel comes
Speaker 1: goal down seven tenths per cent or ten dollars seventy
Speaker 1: cents at sixteen twenty five fifty announce. The euro is
Speaker 1: at point nine five four two against the dollar British
Speaker 1: found one point oh six seven zero and the yen
Speaker 1: four point seven nine. Looking at bitcoin, it's down two
Speaker 1: and a half percent at eighteen thousand, five hundred eighty dollars.
Speaker 1: That's a bloomberg business flash. Now here's Michael Barr with
Speaker 1: more on what's going on around the world. Michael, thank
Speaker 1: you very much. Timer and hurricane and it's churning in
Speaker 1: the Gulf of Mexico and is about seventy five miles
Speaker 1: from Naples, Florida. The National Hurricane Center says e n
Speaker 1: has strengthened to a category four storm. Thousands of nights
Speaker 1: have been canceled At the United Nations stop diplomats are
Speaker 1: dismissing the results of staged referendums in Russia's occupied areas
Speaker 1: of Ukraine. Some Ukrainians say they were forced to vote
Speaker 1: at gunpoint. In baseball, the Yankees clinched the A L East,
Speaker 1: beating the Blue Jay's five to Aaron Judge was walked
Speaker 1: four times and remains at sixty home runs, one shy
Speaker 1: of Rojermari's one a L record. The Mats lost, the
Speaker 1: Red Sox down, the Orioles thirteen nine, the Nationals and
Speaker 1: A's lost. The Giants won Global news twenty four hours
Speaker 1: a day on air and on Bloomberg Quick Take, powered
Speaker 1: by more than twenty seven hundred journalists and analysts and
Speaker 1: more than a hundred twenty countries. Michael Barr and this
Speaker 1: is Bloomberg. Nathan all right, Michael, thank you. It's five
Speaker 1: nineteen on Wall Street Life from the Bloomberg Interactive Brokers Studios.
Speaker 1: This is Bloomberg Daybreak. Also want to pass along some
Speaker 1: headlines crossing the Bloomberg terminal from Japan and South Korea
Speaker 1: saying that North Korea has apparently fired an unidentified ballistic
Speaker 1: missile towards the East Sea off the Korean peninsula. Will
Speaker 1: can can you monitoring those developments for you. Let you
Speaker 1: know any further details as soon as we get them.
Speaker 1: In the meantime, we do want to keep our focus
Speaker 1: on hurricane in taking aim at the Florida Gulf Coast.
Speaker 1: Joining us now is Matthew Palazzola. He's a senior insurance
Speaker 1: analyst for Bloomberg Intelligence, and we bring him on this
Speaker 1: morning because this storm is shaping up to be one
Speaker 1: of the costliest potentially in US history. Particularly we're talking
Speaker 1: about a Category four storm. If it keeps up that
Speaker 1: strength and takes him at a center of population, we're
Speaker 1: talking serious potential damages here. Matthew. Yeah. So you know,
Speaker 1: there's there's a slight bit of good news just this morning.
Speaker 1: There's the five am forecast from the National Hurricane Center.
Speaker 1: And if we're talking you know, this is certainly going
Speaker 1: to be a large event, but if we're talking dollar
Speaker 1: value property damage, it looks like the path is shifted
Speaker 1: even further south. So the worst case scenario was a
Speaker 1: direct hit on Tampa Bay from a property much point
Speaker 1: of view, and it looks like at least, you know,
Speaker 1: as of five am this morning, we might avoid that
Speaker 1: worst case scenario people were talking about in the industry. Uh,
Speaker 1: property values and damages in the hundred billion dollar range
Speaker 1: in a in a worst case scenario. But it looks
Speaker 1: like we're actually going to avoid that, all right, So
Speaker 1: what's the base case scenario? Based on the forecast that
Speaker 1: we're getting now the current track of the storm. Are
Speaker 1: we still expecting that it could touchdown make landfall on
Speaker 1: the Gulf coast to Florida as a category for I
Speaker 1: think these storms usually weekend kind of right before they
Speaker 1: get there. But it still looks like the forecast is
Speaker 1: a category three or four as it makes landfall um
Speaker 1: south of Tampa. So yes, definitely going to make landfall there. Um.
Speaker 1: What we try to do is insurance analysts is look
Speaker 1: at analog storm, So what what storms took a similar path?
Speaker 1: How much do they cost insurance companies? Uh, what I'm
Speaker 1: looking now is two thousand four Hurricane Charlie, which took
Speaker 1: a pretty similar path. It was a category four when
Speaker 1: it made landfall. It was actually a little further south
Speaker 1: at that time. It costs insures eleven billion dollars um.
Speaker 1: There's estimates out there from insurance brokers that say similar
Speaker 1: events could be in the fifteen to thirty five billion
Speaker 1: dollar range. Now, that's that's the kind of level that
Speaker 1: the insurance industry in Florida can handle, isn't it. I
Speaker 1: mean it's not like hurricanes or anything new for the
Speaker 1: Sunshine Stain certainly not. So. These are companies. This is
Speaker 1: their bread and butter um. I would say at the
Speaker 1: high end of that, the thirty five billion dollar lock. Uh.
Speaker 1: The California market is made up of mutual players like
Speaker 1: State Farm, It's made up of a state fund which
Speaker 1: is essentially funded by the taxpayers, and then you have
Speaker 1: large national players and small regional players. At the thirty
Speaker 1: five billion dollar are lost. The small regional players could
Speaker 1: be in trouble, but the large companies that I cover,
Speaker 1: like All State, chub Progressive, this is not going to
Speaker 1: be a small thing for them, but a very manageable
Speaker 1: ef that even at the high end. You got about
Speaker 1: a minute left here, Matthew. How long of a recovery
Speaker 1: could we be looking at from this? And talk a
Speaker 1: little bit more about the reinsurance market, because they've been
Speaker 1: having some struggles in Florida, haven't they. Yeah, there's been
Speaker 1: a significant problem in Florida with being able to obtain reinsurance,
Speaker 1: which is insurance for insurance companies. So the smaller companies
Speaker 1: that I talked about have not been able to get
Speaker 1: affordable reinsurance and some of them have actually gone insolvent
Speaker 1: or left the state. And what this has done is
Speaker 1: caused problems for homeowners in the States, so they can't
Speaker 1: even get insurance if their insurance company can't get reinsurance. UM.
Speaker 1: As far as the recovery, you know, the insurers are
Speaker 1: on the ground almost immediately right away trying to work
Speaker 1: with people like this is a home business, is a
Speaker 1: short tail business. Insurers are are complaying out pretty soon.
Speaker 1: So you know, I, without seeing where it's hitting and
Speaker 1: how strong, I can't really talk too much about the recovery,
Speaker 1: but you know, certainly going to be a big event. Yeah,
Speaker 1: we're going to continue monitoring it, of course. Matthew Palazola,
Speaker 1: thanks again for being with us necessarily morning hour. Matthew
Speaker 1: Palazola as a senior insurance analyst for Bloomberg Intelligence who
Speaker 1: will be very busy for the next several days here
Speaker 1: with Hurricane Ian now a dangerous category four store maximum
Speaker 1: wins a hundred forty miles an hour according to the
Speaker 1: National Hurricane Center Last Check Center about seventy five miles
Speaker 1: away from Naples, Florida, and it is currently on track
Speaker 1: to come ashore on the Florida Gulf Coast near the
Speaker 1: Tampa Bay area sometime late today. Looking at the market's
Speaker 1: futures are selling off. S and P futures down forty
Speaker 1: four points, Dow futures down two NASDAC futures down a
Speaker 1: hundred seventy eight points. This is Bloomberg Bloomberg eleven three
Speaker 1: oh weather for the city. Nice for the rest of
Speaker 1: the week. Sunshine near seventy today, will be in the
Speaker 1: upper sixties of sunny skies tomorrow and Friday. Right now
Speaker 1: fifty four in Central Park, broadcasting live from the Bloomberg
Speaker 1: Interactive Brook Studio in New York. Bloomberg E living freed
Speaker 1: to Washington, d C, Bloomberg N one to Boston, Bloomberg
Speaker 1: one O six one does San Francisco, Bloomberg sixt to
Speaker 1: the country, Sirius XM chant A one nine te and
Speaker 1: around the globe the Bloomberg Business app in Bloomberg Radio
Speaker 1: dot Com. This is Bloomberg Daybreak and it's five thirty
Speaker 1: on Wall Street. Good morning. I'm Nathan Hager, and I'm
Speaker 1: Karen Moscow. We are just about four hours away from
Speaker 1: the open of US trading. Let's get you up to
Speaker 1: date in the news. You need to know what the shower.
Speaker 1: Hurricane Ian is now a dangerous Category four storm taking
Speaker 1: aim at Florida's Gulf coast and threatening to do serious damage.
Speaker 1: Bloomberg meteorologists Robbed Caroline is tracking the storm. Rob Karen
Speaker 1: and Nathan. The eye of the hurricane very apparent on
Speaker 1: the radar out of the Key West area. We can
Speaker 1: see it working its way north northeast. It's paralleling the
Speaker 1: coast of western Florida. At some point today it will
Speaker 1: turn more towards the northeast and that allow it across
Speaker 1: the coast somewhere north of Fort Myers to as far
Speaker 1: north as about Tampa. Looks like the storm surge is
Speaker 1: going to be in excess of ten feet. Will be
Speaker 1: seeing wind gusts probably over a hundred and twenty five
Speaker 1: miles now with the storm, and excessive rain of five
Speaker 1: to ten inches along the path over the next twenty
Speaker 1: four hours. Karen and Nathan. Okay, Rob, Thanks, We're gonna
Speaker 1: be checking back with you throughout the morning. Ahead of
Speaker 1: the storm, thousands of flights have been canceled. Disney SeaWorld
Speaker 1: and Universal Orlando are all shutting their theme parks through
Speaker 1: at least tomorrow, and Florida Governor round the Santas is
Speaker 1: activating five thousand members of the National Guard. Another two
Speaker 1: thousand are coming in from out of state Nate Now
Speaker 1: to the turbulent markets, the dollar is trading at a
Speaker 1: record after the White House talked down the prospect of
Speaker 1: weakening the currency. The on shore you want has fallen
Speaker 1: to the weakest level against the dollars since the financial
Speaker 1: crisis in two thousand and eight, and the global bond
Speaker 1: route continues as a tenure. Treasury yields touched the highest
Speaker 1: level since two thousand and eight. A slew of hawkish
Speaker 1: Federal Reserve speakers, including Minneapolis Fed President Neil cash cry
Speaker 1: are stoking fears about the economicccount. Look, we are moving very,
Speaker 1: very aggressively. There's a lot of tightening in the pipeline.
Speaker 1: We are committed to restoring price stability, but we're also
Speaker 1: we also recognize, given these lags, there is the risk
Speaker 1: of overdoing it. Minneapolis Fed President Neil cash Cary said
Speaker 1: the Fed is united and getting inflation back to two
Speaker 1: in Europe, hearing a stinging rebuke of the UK's new
Speaker 1: unfunded tax cuts, the International Monetary Fund calls an excessive
Speaker 1: and in need of revision. And in corporate news, Nathan
Speaker 1: Bloomberg News has learned that Apple is back off plans
Speaker 1: to increase production of its new iPhones this year. The
Speaker 1: company had expected to serve gin demand, but that hasn't happened.
Speaker 1: Apple aimed to produce ninety million handsets in the second
Speaker 1: half of the year, roughly the same level as last year,
Speaker 1: and futures this morning are lower. SNP Future is down
Speaker 1: forty one points down, futures down two hundred seventy one
Speaker 1: and NASDACK futures down one hundred seventy four ten. Your
Speaker 1: treasury down twelve thirty seconds, you'll three point nine they
Speaker 1: yield on the two year four point to four percent,
Speaker 1: and NIMEX screwed oil is down a quarter percent. And
Speaker 1: as straight ahead, we have your latest local headlines plus
Speaker 1: a check of sports. And this is Bloomberg. Thank you Caring.
Speaker 1: It's five thirty three and Wall Street fifty four degrees
Speaker 1: in Central Park at that accident on the South and
Speaker 1: New York State thru Way near the Cuomos Happenzee Bridge.
Speaker 1: More coming up in traffic. First Michael Barr with what
Speaker 1: else is going on in New York and around the world.
Speaker 1: Michael Nathan, thank you very much. There's sharp debate as
Speaker 1: New York City officials say a humanitarian relief center will
Speaker 1: be built in the Bronx as more immigrants arrived from Texas.
Speaker 1: It's being built in the Orchard Beach, but some Africans
Speaker 1: say the shelters location could create issues. This Orchard Beach
Speaker 1: resident had some words for the city. If you want
Speaker 1: to put something in our community, you need permission from us.
Speaker 1: The so called ten city being built will be heated
Speaker 1: and can house up to a thousand migrants. New York
Speaker 1: Mayor Eric Adams discussed his trip to Puerto Rico and
Speaker 1: the Dominican Republic ravaged by Hurricane Fiona. Adams says Puerto
Speaker 1: Rico has a significant population in the city, and what
Speaker 1: affects Puerto Rico affects New York. This is the international city.
Speaker 1: This is America's city. People like it or not, this
Speaker 1: is America's city. What we do is going to impact
Speaker 1: what happens across the globe and how people are going
Speaker 1: to perceive us across the across the globe. Mayor Adams
Speaker 1: says about half of the people in Puerto Rico are
Speaker 1: still without power and fresh water. Russian leaders declared victory
Speaker 1: in a series of u N condemned referendums as the
Speaker 1: Crumblin moved to annex a large chunk of occupied Ukrainian territory. Meanwhile,
Speaker 1: the White House says Russian men fleeing the military draft
Speaker 1: are welcome to apply for asylum in the US Press
Speaker 1: Secretary Kerin Jean Pierre, we are seeing protests in the
Speaker 1: streets of Russia. We are seeing people sign petitions, and
Speaker 1: I think the message that they're sending to us very
Speaker 1: clearly is that this war that Putin started, this war
Speaker 1: that was started by the Kremlin, is unpopular. White House
Speaker 1: spokesperson Karaine Jean Pierre. A January six rioter who attacked
Speaker 1: the police officer, was sentenced to eighty six months in prison.
Speaker 1: Kyle Young, who is thirty eight, was captured on the
Speaker 1: body cam a former DC police officer, Michael Phone, as
Speaker 1: the violent mob pushed towards him. Young and Court broke
Speaker 1: down in tears and begged for forgiveness. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: and more than a hundred twenty countries. Michael Barrn, this
Speaker 1: is Bloomberg, Nathan. Thanks Michael on Wall Street. John Stashower
Speaker 1: has a Bloomberg Sports Sunday. All right, Nathan. Mets and
Speaker 1: Yankees both heading to the MLB postseason. The Yanks as
Speaker 1: a division Champa. Will the Mets win the NL East?
Speaker 1: It's the only division still up for grabs. The Cardinals
Speaker 1: last night clints the NL Central. The Mets lost at
Speaker 1: home to Miami six to four, a pet Alonzo three
Speaker 1: run homer is forty if not enough to overcome a
Speaker 1: rough start by Carlos Carrasco Atlanta one eighth to two
Speaker 1: at Washington. The Mets and Braves have identical records now
Speaker 1: of nineties seven and fifty eight, seven games to go,
Speaker 1: and including the three game series this weekend in Atlanta.
Speaker 1: The Yankee Division clinching win was five to two at Toronto.
Speaker 1: The Red Hunt labor Torres with three hits, three RBIs
Speaker 1: to back the pitching of Jamison Tyon. He served up
Speaker 1: a leadoff homer to George Springer, but dominated after that.
Speaker 1: Aaron Judge had only one official at bat, he walked
Speaker 1: four times, refuses to chase bad pitches even as he
Speaker 1: tries to tie Roger Marris's home run record. Now seven
Speaker 1: games without a homer. Judge still stuck on sixty, but
Speaker 1: in a good mood as he was sprayed with champagne.
Speaker 1: What are yours so far? Um, We're definitely not done,
Speaker 1: but this is a great first step in to you know,
Speaker 1: don't go you know, got out there and winning a
Speaker 1: World Series and don't get a chance of you know,
Speaker 1: clinching them into this room. Guy. Uh, there's definitely something
Speaker 1: special Jets. Last night on the Yes Network, Sterling Shepherd's
Speaker 1: season is indeed over a freak knee and dream Monday Night,
Speaker 1: have the MetLife Turk where he was simply wanting a
Speaker 1: pass pattern comes just as Shepherd made it back him
Speaker 1: last year's Achilles injury. He was the Giants top receiver.
Speaker 1: They were counting on Kenny Galladay, a high price free
Speaker 1: agent and first round draft pick, and Darius Tony, but
Speaker 1: so far those two had combined probably two catchers. John statually,
Speaker 1: we're Bloomberg Sport Snapen. All right, John, thank you. It's
Speaker 1: five thirty seven on Wall Street, time for the Tri
Speaker 1: State Business Report with Bloomberg's Ed Corey. After surging in
Speaker 1: the week following Labor Day, office occupancy dipped a bit
Speaker 1: of New York last week. New York offices were forty
Speaker 1: six percent fool for the weekended nuberwenty one, according to
Speaker 1: Castle Systems. That's down slightly from close to forty seven
Speaker 1: percent the previous week. The trend was the same across
Speaker 1: the country. Manhattan based law firm Epstein, Becker and Green
Speaker 1: is suing former client Princeton Holdings. It claims Princeton failed
Speaker 1: to pay an early nine hundred thousand dollar bill. In
Speaker 1: the lawsuit, Epstein claims Princeton CEO Don Williams hired the
Speaker 1: firm in March two thousand twenty for work on various
Speaker 1: corporate transactional matters. Governor Phil Murphy says New Jersey will
Speaker 1: spend forty nine million dollars to renovate the new Brunswick
Speaker 1: train station. Murphy says the new funding will be used
Speaker 1: to extend and replace passenger platforms and revamp elevators and escalators.
Speaker 1: That's your Bloomberg trying state business report. I'm in Corey.
Speaker 1: Thanks on Wall Street. Bloomberg Radio is on the air
Speaker 1: from San Francisco to New York, London to Hong Kong.
Speaker 1: Let's check in with our global news team for some
Speaker 1: of the top stories heard on our three hundred affiliate
Speaker 1: radio stations around the world. I'm Steve Potasc on w
Speaker 1: f L A, Tampa Bay. We're talking about the surge
Speaker 1: in private jet flights out of Florida ahead of Hurricane.
Speaker 1: I'm Corney's Nahoe on ktr H in Houston. Shall me
Speaker 1: build two plants to produce sustainable aviation fuel. I'm Caroline
Speaker 1: had Combloomberg d D Dishradio in London. We're reporting on
Speaker 1: the I M s telling the UK to v think
Speaker 1: it's tax cup plans as the thirty year guilt yields
Speaker 1: it's the highest since I'm Ed Gory on w w
Speaker 1: J in Detroit. I'm reporting Southfield's Jack's car Wash is
Speaker 1: looking to expand. Those are some of the stories are
Speaker 1: twenty hundred Bloomberg journalists and analysts working on this morning
Speaker 1: around the world. It's five thirty nine on Wall Street.
Speaker 1: The following is an editorial from Bloomberg Opinion. This editorial
Speaker 1: was written by the Bloomberg Editorial Board. Amid the stir
Speaker 1: caused by President Biden's plan to cancel student loan debts,
Speaker 1: too little attention has been paid to another far reaching reform,
Speaker 1: the administration's change to a lending program known as income
Speaker 1: driven Repayment. If widely applied, Biden's proposal would incentivize students
Speaker 1: to take out bigger loans and increase overall student loan debt. Worse,
Speaker 1: it would only encourage colleges to continue raising tuition. It
Speaker 1: would be better for the government to expand targeted aid
Speaker 1: through federal pell grants, which would limit the amount that
Speaker 1: poor students have to borrow in the first place. Reducing
Speaker 1: the cost of higher education, particularly for low income students,
Speaker 1: is a goal worth pursuing, but this plan is the
Speaker 1: wrong way to go about it. This editorial was written
Speaker 1: by the Bloomberg Editorial Board. For more Bloomberg opinion, please
Speaker 1: go to Bloomberg dot com, slash Opinion or O P
Speaker 1: I N go on the Bloomberg terminal. This has been
Speaker 1: Bloomberg Opinion. Listen for Bloomberg Opinion editorials every weekday. At
Speaker 1: this time terminal. Customers can read more at O P
Speaker 1: I n go. As the sell off continues around the world,
Speaker 1: SMP futures or down forty two points now futures down
Speaker 1: to it at seven, the Nasdaq futures down a hundred
Speaker 1: seventy five points. The tenure Treasury is down eleven thirty seconds.
Speaker 1: The yield just back below four percent at three ninety nine.
Speaker 1: Yield on the two year four point to three, the
Speaker 1: euro at point nine five five seven against the dollar.
Speaker 1: Matt Mayleie of Miller Tabac joins us. Next. This is
Speaker 1: Bloomberg Bloomberg eleven three oh weather sunny with a high
Speaker 1: near seventy today, will be in the upper sixties tomorrow
Speaker 1: and Friday, with sunshine expected through the rest of the week.
Speaker 1: Right now fifty four and clear in Central Park Markets.
Speaker 1: Headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg
Speaker 1: tricktakee He's a Bloomberg Business lash and I'm Karen Moscow.
Speaker 1: The dollar staring into another record after the White House
Speaker 1: talked down the prospect of weakening the currency and it
Speaker 1: containing global bond route, pushing ten year treasury yields to
Speaker 1: the highest its two thousand eight and UK thirty year
Speaker 1: yields to the highest since nineteen and ninety eight. Check
Speaker 1: the markets every fifteen minutes throughout the trading day on
Speaker 1: Bloomberg Guess and p future is down thirty nine points down,
Speaker 1: futures down two hundred forty seven and Nasdaq futures down
Speaker 1: one hundred sixty seven. The decks in Germany's down one
Speaker 1: point nine percent, ten year treasury down twelve thirty seconds.
Speaker 1: You'll three point nine nine percent. They yield on the
Speaker 1: two year four point two three percent. Nine Max screwed
Speaker 1: oils down at thirty percent or twenty seven cents at
Speaker 1: seventy eight dollars, twenty five cents a barrel co makes
Speaker 1: goal down sixtents percent or ten dollars ten cents at
Speaker 1: sixteen twenty six and ounce. The euro is at point
Speaker 1: nine five six zero against the dollar, British found one
Speaker 1: point oh six nine four and the end one four
Speaker 1: point six eight. Bitcoin down two point two percent at
Speaker 1: eighteen thousand, six hundred and sixty dollars. As a Bloomberg
Speaker 1: Business flash, now here's Michael Barr with Moore on what's
Speaker 1: going on around the world. Michael Karen, thank you very much.
Speaker 1: Hurricane in is now a category four storm as it's
Speaker 1: ends toward Florida, ME and it's about seventy five miles
Speaker 1: from Naples. Storm knocked out power to the entire island
Speaker 1: of Cuba. North Korea fire do ballistic missile off its
Speaker 1: eastern coast today. A statement from South Korea's Joint Chief
Speaker 1: of Staff comes a day before US Vice President Kamala
Speaker 1: Harris is set to visit the de militarized zone dividing
Speaker 1: the nation's In baseball, the Yankees clinched the a L East,
Speaker 1: beating the Blue Jays five to Aaron Judge was walked
Speaker 1: four times and remains at sixty home runs one shy
Speaker 1: of Rojamaris sixty one, a L record. The Mats lost,
Speaker 1: the rat Sox down, the Orioles thirteen nine, the Nationals
Speaker 1: and A's lost the Giants. One. Global news twenty four
Speaker 1: hours a day on air end on Bloomberg Quicktake power
Speaker 1: by more than twenty seven hundred journalists and analysts and
Speaker 1: more than a hundred twenty countries. Michael bar And this
Speaker 1: is Bloomberg, Nathan. Thanks Michael. It's five forty nine on
Speaker 1: Wall Street Life from the Bloomberg Interactive Broker Studios. This
Speaker 1: is Bloomberg Daybreak and Matt Mayley joins US now chief
Speaker 1: market strategist at Miller Taya, Matt, I want to get
Speaker 1: your thoughts on this market sell off. But first, we've
Speaker 1: got a storm headed Florida's way. What kind of economic
Speaker 1: damage could we see from hurricanean Well, one of the things, uh,
Speaker 1: that we have to worry about, Nathan. Of course, it's
Speaker 1: all the damage that that will be done. And you know,
Speaker 1: we obviously are our thoughts and prayers are with everybody
Speaker 1: in Florida. Um. And and it's kind of funny because
Speaker 1: I've been somebody who's been, you know, worried about the
Speaker 1: economy for quite some time, saying that we were very
Speaker 1: likely headed to recession. I was talking about that, you know,
Speaker 1: in the winter and spring. However, this thing is it's
Speaker 1: funny because even though the people are talking about demand destruction,
Speaker 1: it will you know, cause even more demand destruction. Uh.
Speaker 1: They have to rebuild. I mean, these hurricanes both through
Speaker 1: rather quickly, uh, and it can cause all sorts of devastation,
Speaker 1: but the rebuilding usually actually helps the economy at least
Speaker 1: in the local economy, and of course Governor De Santis
Speaker 1: is very much eyeing a run for the for the presidency,
Speaker 1: so he knows all eyes are gonna be how and
Speaker 1: how he reacts to this, and he's gonna want to
Speaker 1: be able to turn things around as quickly as possible.
Speaker 1: So I actually think this is gonna be something that's
Speaker 1: be slightly bullish for the economy at least for over
Speaker 1: a near term basis, and something that's gonna be a serious,
Speaker 1: serious problem. So I guess I'm usually a contrary, and
Speaker 1: I'm a little bit of a contrarian here too. Yeah.
Speaker 1: I wonder whether just sort of looking under the hood
Speaker 1: on a sector basis, whether you're thinking what like construction
Speaker 1: stocks might do well after this exactly you know somebody
Speaker 1: like home Depot Lows. These these are types of of
Speaker 1: of of companies of that should do you actually did
Speaker 1: should do quite well. And you look at both of
Speaker 1: those stocks company home people on Lows, I mean they're
Speaker 1: flat on their back though they're oversold on a technical basis,
Speaker 1: and they look quite enticing here. So these you can
Speaker 1: see a surprising rally in some of these names. What
Speaker 1: about more broadly, are you are you looking at the
Speaker 1: bottom for this market overall. I mean we're looking at
Speaker 1: futures well below one percent and adding to the loss
Speaker 1: as we've seen over the last several sessions. Yeah, I mean,
Speaker 1: the one thing we have to worry about. I mean again,
Speaker 1: I've I've been negative all all year long. I mean
Speaker 1: I I starting in December, I was telling people to
Speaker 1: raise cash and yet over and during the summer, during
Speaker 1: the during the rally, I said it was a you know,
Speaker 1: it was a bear market rally, and said raise cash
Speaker 1: there too. The one thing that we worry about that,
Speaker 1: you know, And I do think that that we will
Speaker 1: eventually get down to the three thousand, probably three thousand,
Speaker 1: certainly three thousand again, something I've been saying all year,
Speaker 1: but uh, we should see, if not at some point soon.
Speaker 1: The one thing I'm concerned about, of course, is we
Speaker 1: need people say we need this people wash out trade
Speaker 1: or we get some sort of a blow up with
Speaker 1: a hedge fund blowing up or something like that. But
Speaker 1: the market is is really starting to get quite oversold.
Speaker 1: And it's not just the stock market. The bomb market
Speaker 1: is very very oversold, and the dollar is just the
Speaker 1: oppos getting extremely overbought. And the sentiment and all those things.
Speaker 1: The sentiment for the bomb market and the stock market
Speaker 1: are very very low. People are very bearish and very
Speaker 1: very bullish on the dollar. These are the types of
Speaker 1: things that usually, uh create at least short term release defense.
Speaker 1: So I look for a rally at some point soon
Speaker 1: in the bond market, in the stock market, you know,
Speaker 1: the bond market. A rally would mean that race, of
Speaker 1: course would come down and the dollar calling back. I
Speaker 1: think it's gonna surprise some people. Uh, but there's just
Speaker 1: everybody is on one side of the boat right now,
Speaker 1: and uh, we're getting ripe for for at least a
Speaker 1: relatively sharp even if it's even if it's a relatively
Speaker 1: short term bounce. So are you saying fight the Fed, Matt?
Speaker 1: I mean you hear from Fed officials. They're really doubling
Speaker 1: down on the idea that if not rates going up
Speaker 1: even further, that at least they're going to have to
Speaker 1: stay high for quite some time to get a handle
Speaker 1: on inflation. No I I I I don't want to
Speaker 1: stay fight the Fed. The two things on this number one,
Speaker 1: and I've been saying saying that, oh you're long, don't
Speaker 1: fight the Fed. Don't fight the FED. Why people keep
Speaker 1: fighting the Fed? Um, But I just so it's really
Speaker 1: just more of a short term a rally and in
Speaker 1: others I wouldn't be shorting the rally. Here, I wouldn't
Speaker 1: be buying the dollar here, I wouldn't be shorting the
Speaker 1: bond market here. I just think that that although we
Speaker 1: could get one big wash out here in the next
Speaker 1: few days, I think we're gonna see a bounce that
Speaker 1: lasts for for a week or two or maybe even three.
Speaker 1: But but but that will probably another opportunity to to
Speaker 1: uh to to take you know, race race some cash.
Speaker 1: But one thing I will say though about the FED
Speaker 1: is that you know, definitely don't fight the FED. But
Speaker 1: they are getting there's a few of them getting a
Speaker 1: little bit less hawkish. I mean we saw that yesterday
Speaker 1: with Evans and last night uh Sanrcisco president Daily saying
Speaker 1: she's saying that, you know, we don't want to push
Speaker 1: it into recession. So there, you know, sometimes they're a
Speaker 1: little market markets, uh market dependent when it comes on
Speaker 1: when it comes to the rhetoric, and some of them
Speaker 1: are starting to ease off a little bit, so that
Speaker 1: could give the market a little bit of relief at
Speaker 1: some point soon as well. So it's just thirty seconds
Speaker 1: left here. Matter. Are you looking for a FED pivot
Speaker 1: to slower rates sometime this year? Definitely not. I think
Speaker 1: anything we're saying now is just trying to calm things down.
Speaker 1: They don't want the market to go straight night and
Speaker 1: down on the straight line, but I would. I do
Speaker 1: not see them pivoting at all. I think that if
Speaker 1: we do get the bounce, and I'm talking about, it
Speaker 1: will be another opportunity to raise cash. I think the
Speaker 1: sp is headed, We're gonna we're headed towards three thousand
Speaker 1: or very close to that level. So I do not
Speaker 1: see a pivot at all. And again, the SMP closed
Speaker 1: yesterday thirty six forty seven. Thanks for this as always, Matt,
Speaker 1: good speaking with you. Matt Maylee, Chief market strategist at
Speaker 1: Miller tay Back, Karen A. Ry Nathan, thank you. It
Speaker 1: is five fifty four on Wall Street. Let's get to
Speaker 1: a legal story where watching this morning while the Justice
Speaker 1: Department is taking American Airlines in Jet Blue Airways to
Speaker 1: court challenging their partnership, which allows the airlines to share
Speaker 1: flights and customers. The d o J is under pressure
Speaker 1: to have something to show for its trust busting efforts
Speaker 1: after the collapse last week of two of its cases,
Speaker 1: one targeting United Health Groups seven point eight billion dollar
Speaker 1: acquisition of Change Healthcare and a second between two of
Speaker 1: the US's largest sugar refiners for more Bloomberg's doing. Grosso
Speaker 1: speaks to Bloomberg Intelligence senior litigation analyst Jennifer Ree. Did
Speaker 1: anything stand out to you in the opening statements? You know?
Speaker 1: I think what stands out to me in the opening
Speaker 1: statements is just how they're really incompletely and totally opposite ends.
Speaker 1: I mean, to hear the Department of Justice attorney, this
Speaker 1: is absolutely the worst possible thing that could happen. It's
Speaker 1: going to cost millions of dollars. It's a consolidation. It's
Speaker 1: essentially a merger of two airlines in an industry where
Speaker 1: we have terrible trouble now, too much consolidation already, far
Speaker 1: too concentrated, passengers that are treated horribly, fares that are
Speaker 1: going up, and this is only going to contribute to that.
Speaker 1: And then to hear the other side, it's wildly pro competitive.
Speaker 1: If it's going to be fantastic, we're going to be
Speaker 1: able to compete much better against Delta and United. It's
Speaker 1: going to cause everybody to compete. And then the Department
Speaker 1: of Justice attorney has to ask, American is the biggest
Speaker 1: airline in the United States, possibly in the world, So
Speaker 1: why does it need Jet Blue in order to compete
Speaker 1: against Delta and United? And I think, you know, there's
Speaker 1: a really good point there, but they're they're just really
Speaker 1: why at opposite ends of what the impact of this
Speaker 1: alliance is. American and Jet Blue have a year and
Speaker 1: a half of records to show what's happened so far,
Speaker 1: even though they knew that they were under the microscope.
Speaker 1: But the Justice Department is just going to have theory,
Speaker 1: that's right, And that's absolutely the difficulty of it. Now
Speaker 1: in every merger case, all they really have is theory.
Speaker 1: Here to some extent, they have a presumption of potential
Speaker 1: anti competitive effects because if you just purely look at
Speaker 1: market shares and an airline deal, you know, the way
Speaker 1: they look at them are the different numbers of airlines
Speaker 1: and their share in city of the city. So you
Speaker 1: look at a route, let's say it's New York to Miami, Florida.
Speaker 1: You look at that route, you look at the competition
Speaker 1: in the route, and that's how you basically look at
Speaker 1: market shares. So there's this big table and long list
Speaker 1: of market shares, and under the merger guidelines at the
Speaker 1: Department of Justice uses you can do some basic maths
Speaker 1: and the judges use those guidelines and they follow those guidelines.
Speaker 1: So the DJ has I would say, just a tinge
Speaker 1: more than just theory going in, because they do have
Speaker 1: some market shares that show that these are concentrated markets
Speaker 1: that of course will rely on or depend on whether
Speaker 1: the judge actually views this as a merger or not.
Speaker 1: And as Bloomberg Intelligence Senior litigation analyst Jennifer Rees speaking
Speaker 1: with Bloomberg June Grasso. Catch more of that interview plus
Speaker 1: analysis of the latest legal news by listening to the
Speaker 1: Bloomberg Law Show at ten pm Eastern Time or subscribing
Speaker 1: to the Bloomberg Law Podcast, and attorneys can find exceptional
Speaker 1: legal research and business development tools at Bloomberg Law dot com.
Speaker 1: Futures this morning moving lower, SMP futures down forty four points,
Speaker 1: now futures down two hundred eighty two, nasday futures down
Speaker 1: one eighty three and still ahead. On Bloomberg Day Break,
Speaker 1: I check on the business headlines and all the news
Speaker 1: you need to start your day. This is Bloomberg.