Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today, Dared.
Speaker 2: We begin with the rebound in markets, and we're joined
Speaker 2: by Bloomberg's Critty goup to quite the bounce back in
Speaker 2: Asia overnight.
Speaker 3: Critty a massive bounce back go start on the Japanese
Speaker 3: stock market. There the top x a wopping nine point
Speaker 3: three percent to do even better than ni K two
Speaker 3: to twenty five, closing over ten percent hired. This of
Speaker 3: course compared to the twelve percent drop yesterday, So in
Speaker 3: about twenty four hours, in two sessions time, you did
Speaker 3: not see a complete pairing back of the losses, but
Speaker 3: pretty close, some pretty good volatility that is likely to
Speaker 3: sustain throughout the week. You're also going to see a
Speaker 3: similar story, Nathan, over in the South Korea index member
Speaker 3: chips is still very much the story. So any index
Speaker 3: with exposure there was saking a lot of the extra turmoil.
Speaker 3: Today they are seeing extra gain. So the COSTPI over
Speaker 3: in South Korea hired by three point three percent, COSDAK
Speaker 3: closing up over six percent.
Speaker 2: And what are we seeing as far as European trading
Speaker 2: goes critty, so.
Speaker 3: A little bit of a mixed picture when it comes
Speaker 3: to Europe. You would think some of the positivity would
Speaker 3: kind of feed on over and it's doing the exact opposite. Actually,
Speaker 3: So when you do look at say the Eurostock fifty,
Speaker 3: it's actually down by two tens of one percent. You're
Speaker 3: not seeing that same optimism. To be fair, you also
Speaker 3: didn't see that same drop to that extent yesterday, but
Speaker 3: still a two percent drop yesterday. About on average across
Speaker 3: from the indexes today you are seeing most of these
Speaker 3: indexes about flat. The French index, however, down about half percent,
Speaker 3: taking the biggest hit off all the major indices.
Speaker 1: All right, Bloomberry's Cretti, Gupta and Credie will be checking
Speaker 1: in with you throughout the morning, of course. And as
Speaker 1: we said earlier, we are seeing a bit of a
Speaker 1: bounce back in US futures following yesterday's sell off. The
Speaker 1: SNP five hundred lost three percent, extending a tumble from
Speaker 1: its peak to eight and a half percent. The tech
Speaker 1: heavy Nasdaq one hundred also lost three percent. It is
Speaker 1: now after its worst start to a month since two
Speaker 1: thousand and eight. Lindsay Rosner is head of a multi
Speaker 1: sector investing at Goldman's Sacces asset manage.
Speaker 4: The market is getting into a healthier zone and markets
Speaker 4: don't move, even though I think we've been pretty used
Speaker 4: to it recently in a straight lineup. We have to
Speaker 4: understand that these kind of drawdowns and replacements happen, and
Speaker 4: this is why from an active management seat where we are,
Speaker 4: we want to have the steady hands in the market
Speaker 4: to add where it makes.
Speaker 1: Sense, golmans I said. Management s Lindsay Rosner. Wall Street's
Speaker 1: fear gauge, the VIS was above sixty five at one
Speaker 1: point yesterday. Today it's recouping and is around thirty three.
Speaker 2: Karen is. Speculation grows on whether the Federal Reserve will
Speaker 2: cut rates ahead of its September meeting. Some are throwing
Speaker 2: cold water on the idea, including Bloomberg opinion contributor Mohammad
Speaker 2: al Aarian.
Speaker 5: I am of the view.
Speaker 6: That this will We will look back on this and
Speaker 6: say it was an overreaction in certain parts of the
Speaker 6: markets and the market got carried away by demanding into
Speaker 6: meeting cuts, by demanding seventy five basis points in September.
Speaker 2: It's not going to happen. That's Bloomberg opinion columnist muhammadel Arian.
Speaker 1: Nathan FED officials are also dousing hopes of a rate
Speaker 1: cut before September. San Francisco FED president Mary Daily is
Speaker 1: indicating that cuts should begin in coming quarters.
Speaker 7: You know, from my mind, we've now confirmed that the
Speaker 7: labor market is slowing, and it's extremely important that we
Speaker 7: not let it slow so much that it tips the
Speaker 7: that tips itself into a downturn.
Speaker 1: San Francisco FED president Mary Daily added she still sees
Speaker 1: the labor market as reasonably solid, as most employers are
Speaker 1: not cutting jobs.
Speaker 8: Well, Karen.
Speaker 2: One of the hardest hit tech stocks during the recent
Speaker 2: sell off was in Vidia. It is down about twenty
Speaker 2: five percent from its recent high, and we've learned in
Speaker 2: Vidia CEO Jensen Wang has been unloading shares. He sold
Speaker 2: nearly three hundred and twenty three million dollars worth in July.
Speaker 2: Combined with shares sold in June, Jensen Wang is unwound
Speaker 2: almost a half billion dollars in his in Vidia steak
Speaker 2: since the stock hit its peak amid the AI fueled rally.
Speaker 1: Nathan investor Kathy Wood is defending her sale of Nvidia
Speaker 1: shares before the company's huge rally, we cut up with
Speaker 1: the Arc Investment ceo.
Speaker 9: We wrote it up one hundredfold. Would we have liked
Speaker 9: another triple? Sure, But here is the most important question
Speaker 9: for Nvidia to be. To deserve where it is right
Speaker 9: now from a valuation point of view, other companies out
Speaker 9: there must be having phenomenal results.
Speaker 1: Our investment CEO Kapy Wood made the comments on the
Speaker 1: Bloomberg Tiger Money podcast.
Speaker 2: Now, Karen's the latest on the presidential race. It is
Speaker 2: officially a race now. Vice President Kamala Harris has clinched
Speaker 2: the Democratic nomination for president. We get the very latest
Speaker 2: from Bloomberg Steve Potisk in Washington.
Speaker 8: The virtual roll call vote wrapped up last night and
Speaker 8: the Democratic National Committee says the Vice president won ninety
Speaker 8: nine percent of the delegates votes. The process was a formality.
Speaker 8: No one else was on the ballot. Now the question
Speaker 8: is who will join Harris on the ticket. She's expected
Speaker 8: to announce her running mate today. Over the weekend, she
Speaker 8: met with at least three contenders, Mark Kelly of Arizona,
Speaker 8: Pennsylvania's Josh Shapiro, and Tim Walls from Minnesota. Harris is
Speaker 8: kicking off a seven battleground state tour this afternoon in
Speaker 8: Shapiro's home state in Philadelphia. She'll formerly accept the nomination
Speaker 8: later this month at the Democratic National Convention in Washington.
Speaker 8: Steve Potisk Bloomberg Radio.
Speaker 1: All right, Steve, thanks well. Back in Washington. It's going
Speaker 1: to be a very long couple of days for Boeing.
Speaker 1: The planemaker is facing its most extensive hearing yet into
Speaker 1: the fuselage blowout back in January that exposed multiple quality
Speaker 1: lapses at its factories. The National Transportation Safety Board is
Speaker 1: spreading the questioning over twenty hours today and tomorrow since
Speaker 1: the accident. Boeing is named a new CEO, has agreed
Speaker 1: to buy back its supplier, Spirit Aerosystems, and it's pleaded
Speaker 1: guilty to a conspiracy charge from two previous seven thirty
Speaker 1: seven MAX crashes in Karen.
Speaker 2: Illegal loss for Alphabet. This morning, a federal judge has
Speaker 2: ruled Google illegally monopolized the search market through exclusive deals.
Speaker 2: Google made twenty six billion dollars in payments to be
Speaker 2: the default search engine on smartphones and web browsers. The
Speaker 2: judge ruled those payments effectively blocked any other competitor from
Speaker 2: succeeding in the search market. This is the government's first
Speaker 2: major antitrust victory against a tech giant in more than
Speaker 2: two decades.
Speaker 1: And it's time now for a look at some of
Speaker 1: the other stories making news in New York and around
Speaker 1: the world. And for that we're joined by Bloomberg's John Tucker. John,
Speaker 1: Good morning, and good morning, Karen.
Speaker 5: Debbie is now a killer downgraded from hurricane to tropical storm.
Speaker 5: It damaged homes of businesses, sent floodwaters rising across sweeping
Speaker 5: power outages across Florida and Georgia. It led to several
Speaker 5: fatalities in Georgia. The mayor of Savannah issue to curfew.
Speaker 3: It's going to catch a whole lot of people by surprise.
Speaker 5: Bloomberg meteorologist Rob Carolyn is tracking the storm.
Speaker 10: John Trockle, Storm Debbie is located on the coast of
Speaker 10: Georgia this morning, and this system is going to be
Speaker 10: responsible for some very heavy rainfall over the Eastern Carolinas
Speaker 10: in Georgia over the next several days. Some places are
Speaker 10: going to receive an excessive two feet of rain from
Speaker 10: this system.
Speaker 5: Bloomberg Meteorologist Rob Carolyn. Several US personnel were injured in
Speaker 5: a suspected rocket attack at a military base in Iraq.
Speaker 5: The attack comes its Tensions across the Mideast are spiking
Speaker 5: following the killings last week of a senior hensbela commander
Speaker 5: at Lebanon and Hamas's top political leader in Iran. The
Speaker 5: US and its allies are working to head off a
Speaker 5: wider conflict. On Bloomberg's Nancy Allons is more from.
Speaker 11: Washington, Secretary of State Anthony Lincoln says he's been speaking
Speaker 11: with leaders from Cutter and Egypt, the two countries who've
Speaker 11: been helping lead negotiations for a ceasefire.
Speaker 10: It is a critical moment. We are engaged in intense
Speaker 10: diplomacy pretty much round the clock with a very simple message.
Speaker 11: All parties must refrain from escalation. Iran has said it
Speaker 11: wants to avoid an all out war, but to create
Speaker 11: deterrence against Israel. Israel says its forces are on a
Speaker 11: hair trigger alert to carry out defensive and offensive missions.
Speaker 11: In Washington, Nancy Lyons Bloomberg Radio.
Speaker 5: Most New York City restaurants taking part in the city's
Speaker 5: pandemic here outdoor dining program haven't sought permits to make
Speaker 5: their sheds permanent, meaning they'll have to be dismantled. The
Speaker 5: critics called the outdoor structure's eye sores that attracted rats
Speaker 5: and took up parking spaces, while proponents say they inject
Speaker 5: life into the urban landscape. Michigan voters today will decide
Speaker 5: which Republicated Democratic candidates will compete in November for the
Speaker 5: state's highly coveted open US Senate seat. In addition to
Speaker 5: several of the nation's most competitive US House races, many
Speaker 5: Democrats have coalesced around REPRESENTATIVELYSSA slot Giny, and the Senate race,
Speaker 5: while Republicans have united behind former Congressman Mike Rodgers, who
Speaker 5: received an endorsement from Donald Trump earlier this year. Both
Speaker 5: candidates vying for the seat left open by longtime Democratic
Speaker 5: Senator Debbie Stabenhaw's retirement, but they must first defeat underdog challengers.
Speaker 5: In today's voting, Global News twenty four hours a day
Speaker 5: and whatever you wanted with Bloomberg News Now, I'm John Tucker.
Speaker 5: This is Bloomberg, Nathan and Karen.
Speaker 1: All right, John, thank you any time now for the
Speaker 1: Bloomberg Scores update with John Stashauer.
Speaker 2: John, Good morning, Yah morning.
Speaker 4: Karen.
Speaker 12: Was already going to be a long road trip for
Speaker 12: the Mets, with games in Anaheim, Denver, Cy, Adam. Then
Speaker 12: they had a rainout in Saint Louis. Had to make
Speaker 12: it up yesterday. They stopped in, got great pitching from
Speaker 12: Sean Menia, broke the game open in the fifth inning.
Speaker 5: Is one two line down the right field lie.
Speaker 8: That's a face hit by Taylor.
Speaker 2: Going into the corner.
Speaker 12: Alvarez is in, Peter is in never getting waved around
Speaker 12: toward the plate.
Speaker 2: The throat of the plate is not in time.
Speaker 12: Three run doubled all right for Tyrone Taylor WCBS. The
Speaker 12: Met's won six to nothing. What a free age and
Speaker 12: signing man I has been his last two starts. He's
Speaker 12: pitched fourteen scoreless innings, allowing only eight hits with one
Speaker 12: walk twenty one strikeaffs. Yankees were off home tonight for
Speaker 12: the Angels. Yanks tied for first with Baltimore Red Sox
Speaker 12: eighteen hits, one, nine to five at Kansas City. The
Speaker 12: Giants got to five hundred with a four to one
Speaker 12: win in Washington. Then there are the White Sox, a
Speaker 12: model of consistency. They just keep losing five to one
Speaker 12: in Oakland, the thirty second time this season. Chicago has
Speaker 12: failed to score even two onns in a game. Losing
Speaker 12: streak is at twenty one, going back to July tenth.
Speaker 12: It's tied to the longest skid in modern American League history.
Speaker 12: The Major League record is twenty three. Two gold medals
Speaker 12: for the US gives them twenty one, tied with China,
Speaker 12: US way ahead and overall medals won. Valerie Allman won
Speaker 12: the women's discus, just as she did three years ago,
Speaker 12: and Caroline Marks one gold in the surfing that's taking
Speaker 12: place in Tahiti. In Paris today, h's the US and
Speaker 12: Brazil men's basketball quarterfinals. US takes on Germany in the
Speaker 12: women's soccer. That means the men's soccer gold medal game
Speaker 12: will be Friday, Spain against France. Post Nation won at
Speaker 12: semifinal game with Egypt and extra time, so were world
Speaker 12: champion Chiefs have woped up in all pro kicker Harrison
Speaker 12: Bucker will make six and a half million a year.
Speaker 12: Bucker this past spring made news with a controversial commencement
Speaker 12: speech johns Dashawa Bloomberg Sports carry.
Speaker 13: Maybe coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 13: and around the world. On Bloomberg dot Com and the
Speaker 13: Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm
Speaker 13: Nathan Hager. It's a better morning.
Speaker 2: Some calm may be settling back into the market after
Speaker 2: yesterday's plunge for stocks around the world. A whole host
Speaker 2: of factors came together to send investors fleeing to safety.
Speaker 2: This morning, we are seeing a bit of recovery. But
Speaker 2: is this a calm before another storm joining us now?
Speaker 2: Janet Mooey, head of Market analysis at RBC, brewin Dolphin, Janet,
Speaker 2: good morning is the worst over?
Speaker 9: Hi?
Speaker 14: I'm Money and Nathan, thanks for having me well. It
Speaker 14: is hard to say, to be honest, I think the
Speaker 14: market narrative has shifted from focus on inflation to concern
Speaker 14: on growth. So unless we have the clarity on the
Speaker 14: growth side of things, I don't think we can be
Speaker 14: sure or you know, when is this end or volatility? Physically,
Speaker 14: we still have geopolitical atention and of course the US
Speaker 14: election where the race is pretty tight at the moment. Though,
Speaker 14: I having said that, we do feel that valuations have
Speaker 14: become more attractive, so certainly paving the way for a
Speaker 14: better entry point for investors.
Speaker 2: More attractive valuations. Where specifically, where are you advising clients
Speaker 2: to buy in at this point?
Speaker 14: Yeah, so currently we are not, you know, exactly advising
Speaker 14: clients to buy in at this particular point. But overall,
Speaker 14: our portfolio strategy has been overweighted in US and also
Speaker 14: with favor semiconductor stocks. Now those areas of the market
Speaker 14: has obviously seen a correction and particularly some of those
Speaker 14: semiconductor stocks have slummed. I think irrespective of fundamentals, it's
Speaker 14: more sentiment and position drivening. So we feel that that
Speaker 14: could open up opportunities because we still view those sectors
Speaker 14: as you know, very good long term prospects.
Speaker 2: Are you looking for the market to test further lows?
Speaker 2: What other catalysts should we be looking at in terms
Speaker 2: of where this volatility could go from here?
Speaker 14: I think there is a real possibility. So our base
Speaker 14: case is still a stock blending even though that recession
Speaker 14: risk admittedly has risen. I think the key risk here
Speaker 14: is I think it's oil prices. We have seen actually
Speaker 14: all prices falling because of those recession risks, But don't
Speaker 14: forget we still have geopolitical rests on the background. The
Speaker 14: tension between Israel and Iran is still high, so if
Speaker 14: our prices rise from here, that could be a pretty
Speaker 14: bad scenario for market is because that would mean staculation.
Speaker 2: Does your soft landing thesis rely on the FED delivering
Speaker 2: more aggressive rate cuts than it's been telegraphing.
Speaker 14: I think yes at this stage it does. So I
Speaker 14: think if the fat were to cut a couple of
Speaker 14: times this year and more next year, I think we
Speaker 14: are we have the pathway to avoid our recessions. So yes,
Speaker 14: it is conditioned on the fat cutting, and the fact
Speaker 14: is we're I think the thing is the fat does
Speaker 14: have the leeway to cut. I think that's pretty clear
Speaker 14: because first of all, the rates are at five and
Speaker 14: a half percent and inflation is heading in the right direction.
Speaker 14: I think those are the very important assumption in inflation reaccelerates,
Speaker 14: which is not what we're expecting, by the way, I
Speaker 14: think that would be more difficult.
Speaker 2: Backdrop, Does the FED need to cut before September? I
Speaker 2: know a number of FED officials have been pushing back
Speaker 2: at that idea, But is that something that the FED
Speaker 2: needs to consider?
Speaker 14: I think it could be risky mode. Actually, I think
Speaker 14: so far, as you mentioned at the beginning, we're actually
Speaker 14: having a bit of a normality, and I think it's
Speaker 14: a bit it's a bit of a best signaling. If
Speaker 14: they were to cut in between meetings, it shows a
Speaker 14: bit of desperation in my view, and I think, you know,
Speaker 14: we have just we just need to wait one month's time.
Speaker 14: I think nothing major is likely to happen in between.
Speaker 14: We I like to get some more economic data that
Speaker 14: could induce the polity, but I think it's worked out
Speaker 14: to wait until September eighteen.
Speaker 2: This is Bloomberg day Break Today, your morning brief on
Speaker 2: the stories making news from Wall Street to Washington and beyond.
Speaker 1: Look for us on your podcast feed at six am
Speaker 1: Eastern each morning, on Apple, Spotify, and anywhere else you
Speaker 1: get your podcasts.
Speaker 2: You can also listen live each morning starting at five
Speaker 2: am Wall Street Time on Bloomberg eleven three to zero
Speaker 2: in New York, Bloomberg ninety nine to one in Washington,
Speaker 2: Bloomberg one six to one in Boston, and Bloomberg nine
Speaker 2: sixty in San Francisco.
Speaker 1: Our flagship New York station is also available on your
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 2: Plus listen coast to coast on the Bloomberg Business app, SERIUSXM,
Speaker 2: the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan
Speaker 2: Hager and I'm Karen Moscow.
Speaker 1: Join us again tomorrow morning for all the news you
Speaker 1: need to start your day right here on Bloomberg Daybreak