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Speaker 1: Good morning.

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Speaker 2: I'm John Tucker and I'm Karen Moscow.

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Speaker 3: Here are the stories we're following today with Jackson.

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Speaker 1: Hole in the rear View mirror. One constant theme emerged.

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Speaker 1: The world's top central bankers stress the need to keep

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Speaker 1: interest rates high until inflation is contained. Here's FED Shair J. Powell.

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Speaker 4: We are prepared to raise rates further if appropriate, and

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Speaker 4: intend to hold policy at a restrictive level until we

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Speaker 4: are confident that inflation is moving sustainably down toward our objective.

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Speaker 5: Like J.

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Speaker 1: Powell, the European Central Banks Christine Lagard, in an exclusive

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Speaker 1: interview at Bloomberg's Tom Keane, says the goal is to

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Speaker 1: bring inflation back to its goal.

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Speaker 6: It's critically important that inflation expectations remain anchored at two percent.

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Speaker 6: If trade unions and business associations appreciate that in relatively

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Speaker 6: short order inflation will be back to two percent, they

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Speaker 6: will not want to fuel more inflation by having wage

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Speaker 6: or margin increases that would not be consistent with don.

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Speaker 1: Both Christine Legarn's, the ECB and FED make polities policy

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Speaker 1: decisions next month, Well.

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Speaker 3: John, both central banks will have a lot of data

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Speaker 3: to digest before those decisions. The first big one in

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Speaker 3: the US comes on Friday with the youngest jobs report,

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Speaker 3: and we get a preview from Bloomberg's of any down.

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Speaker 7: Judaie US job growth probably slowed in August, says the

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Speaker 7: shutdown at yellow freight lines led to the end of

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Speaker 7: thousands of jobs. At the same time, Bloomberg Economics as

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Speaker 7: temporary job supporting concerts and movies, Taylor, Swift, Barbie and

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Speaker 7: Oppenheimer probably provided a cushion. The report is set for Friday.

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Speaker 7: Also in this week's data agenda, ism figures on American manufacturing,

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Speaker 7: which will probably signal more weakness. Finny Dell Junice, Bloomberg

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Speaker 7: Day Break.

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Speaker 1: All right, thanks Finny. In addition to the jobs report,

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Speaker 1: we get some more earnings this week. That's good a

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Speaker 1: preview from Bloomberg's Charlie Pellett.

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Speaker 8: We will hear from a number of tech companies this

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Speaker 8: week amid a buzz around artificial intelligence and concern about

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Speaker 8: higher interest rates. Diana Almoa is chief investment Officer for

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Speaker 8: long based Strategies at Kirkerswald Asset Management.

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Speaker 9: So I think what's been supporting equities despite the higher

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Speaker 9: rates that we're seeing is actually the earnings I think

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Speaker 9: this last earning season especially surprised. We've seen significant revisions

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Speaker 9: in some of the key sectors that are big components

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Speaker 9: of the indices, such as in the tech sector.

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Speaker 8: Among the tech names reporting this week crowd Strike, Dell Technologies, HP, VMware,

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Speaker 8: and Sales Force in New York Charlie Bloomberg daybreak, All.

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Speaker 3: Right, Charlie, thanks well. In Asia, after initially searching more

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Speaker 3: than five percent, Chinese stocks paired most of their early

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Speaker 3: gains to end the session up just over one percent.

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Speaker 3: Beijing's recent efforts to boost markets are falling flat in

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Speaker 3: the finish of economic worries. Bloomberg's Joanne Wong has more

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Speaker 3: from Hong Kong.

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Speaker 10: China's Ministry of Finance that will have the one tenth

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Speaker 10: of one percent levy as of today. The nation has

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Speaker 10: also pledged to slow the pace of initial public offerings.

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Speaker 10: That's among US lieu of new measures to wool investors

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Speaker 10: back to US flagging equities markets. Regulators have also cut

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Speaker 10: handling fees on stock transactions. They brought up usual fund

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Speaker 10: managers to increase purchases of their own equity funds, and

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Speaker 10: encouraged companies to do more share buybacks.

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Speaker 3: And bloombergs Joanne Wong says Chinese authorities have asked some

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Speaker 3: mutual funds to avoid selling equities on a net basis

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Speaker 3: and more proof.

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Speaker 1: This spring, global investors have little confidence that China will

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Speaker 1: succeed in suring up its financial markets. There's a new

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Speaker 1: poll of investors by Bloomberg. He predicts that mounting economic

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Speaker 1: stress will drive the yuan's offshore exchange rate to historic lows.

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Speaker 1: According to the latest Markets Live pol survey, they one

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Speaker 1: is seen depreciating to seven point six per dollar before

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Speaker 1: the end of the year. That would be about a

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Speaker 1: four percent drop from the current levels.

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Speaker 3: Meanwhile, john US Commerce Secretary Gina Ramando is visiting China.

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Speaker 3: She stressed the importance of stable economic ties between the

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Speaker 3: world's biggest economies.

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Speaker 2: It's a complicated relationship, it's a challenging relationship.

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Speaker 3: We will, of course disagree on certain issues, but I

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Speaker 3: believe that we can make progress.

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Speaker 2: If we are direct, open and practical.

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Speaker 3: And Commerce Secretary Gina Ramando is the fourth high profile

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Speaker 3: US official to visit China in the past three months, and.

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Speaker 1: In corporate in his current Malincrot has gone bankrupt for

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Speaker 1: the second time less than three years Under a proposed

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Speaker 1: restructuring deal, the one hundred and fifty six year old

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Speaker 1: company plans to give opioid victims a final two hundred

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Speaker 1: and fifty million dollar one time payment, a move that

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Speaker 1: would leave them with a billion dollars less than they

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Speaker 1: were promised as last year. Malincrant first went bankrupt in

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Speaker 1: twenty twenty, overwhelmed by costly litigation tied to its role

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Speaker 1: in the opioid.

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Speaker 3: Crisis, and three M has tentatively agreed to pay more

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Speaker 3: than five and a half billion dollars to resolve lawsuits

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Speaker 3: over military ear plugs. We get more from Bloomberg's Doug Krisner.

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Speaker 2: We're told the settlement stems from over three high hundred

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Speaker 2: thousand lawsuits. They claimed the ear plugs were defective over

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Speaker 2: a twelve year period starting in two thousand and three.

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Speaker 2: Current and former service members alleged three M knew it's

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Speaker 2: air plugs were too short to work effectively. The company

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Speaker 2: was also accused of failing to warn the US government

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Speaker 2: or users, and of failing to take steps to fix

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Speaker 2: the product. The sum is about half the roughly ten

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Speaker 2: billion dollars some financial analysts predicted three M could end

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Speaker 2: up paying in New York. I'm Doug Prisoner Bloomberg Daybreak.

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Speaker 1: All right, thanks to Karen five oh seven Wall Street

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Speaker 1: Time down for a look at some of the other

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Speaker 1: stories making news in New York and around the world.

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Speaker 1: And for that we're joined by Bloomberg's Michael Parr. Michael,

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Speaker 1: good morning, Good morning John.

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Speaker 5: Friends and family in Jacksonville, Florida, are greeting as a

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Speaker 5: community after a racially motivated shooting by a white man

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Speaker 5: who killed three black people inside a Dollar General store

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Speaker 5: on Saturday before taking his own life. At a community

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Speaker 5: vigili yesterday, pastors offered prayers for healing to help Jacksonville

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Speaker 5: push past this tragedy. Sheriff TK Waters says, the tragedy

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Speaker 5: will not define Jacksonville.

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Speaker 11: One evil man who decides to take his hateful rhetoric

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Speaker 11: and his hateful thoughts and put those into action. They

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Speaker 11: cannot shake our resolve and we will not allow it

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Speaker 11: to do so.

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Speaker 5: Jacksonville Mayor don A.

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Speaker 10: Degan, the division has to stop, the hate has to stop,

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Speaker 10: the rhetoric has to stop.

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Speaker 5: Florida Governor Und Descant is canceled today at presidential campaign

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Speaker 5: appearances to deal with Jacksonville and prepares for what is

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Speaker 5: expected to be a hurricane to hit the state this week.

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Speaker 5: Tropical Storm at Dahlia is now forecast to become a

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Speaker 5: hurricane by late Tuesday afternoon, possibly hitting Florida's Big Ben

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Speaker 5: region as a category two on Wednesday. Right now, Donnie

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Speaker 5: Alli is near the coast of Cuba on a potential

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Speaker 5: track to come ashore as a hurricane in the southern US.

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Speaker 5: It is more than one hundred miles off the western

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Speaker 5: tip of Cuba, with maximum sustained winds of sixty miles

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Speaker 5: per hour. Governor round DeSantis in Tallahassee is warning people

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Speaker 5: in its path to prepare for power outages and possibly more.

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Speaker 12: We have mobilized eleven hundred National guardsmen and they have

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Speaker 12: at their disposal twenty four hundred high water vehicles as

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Speaker 12: well as twelve aircraft that can be used for rescue

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Speaker 12: and recovery efforts.

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Speaker 5: Governor DeSantis says power companies will start pre staging linemen today.

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Speaker 5: Military investigators are trying to find out what caused an

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Speaker 5: Osprey aircraft to crash on Melville Island in Australia Sunday,

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Speaker 5: killing three Marines five more US troops of the twenty

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Speaker 5: three on board were injured and are hospitalized in serious condition.

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Speaker 5: Dozens of heated demonstrators were in front of Gracie Mansion

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Speaker 5: over the migrant crisis in New York City. Protesters and

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Speaker 5: counter demonstrators clashed. At one point they got physical and

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Speaker 5: the NYPD had to step in to separate both sides.

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Speaker 5: Bus loads of asylum seekers continue to come into the

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Speaker 5: city daily. Mayor Adam says New York has run out

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Speaker 5: of beds and money. Global News twenty four hours a day,

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Speaker 5: powered by more than twenty seven hundred journalist and analyst

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Speaker 5: over one hundred and twenty countries. I'm Michael Barr.

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Speaker 1: This is Bloomberg, John, Michael, thank you, and time down

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Speaker 1: for a Bloomberg Sports update, Tam for the Let's bring

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Speaker 1: in John Stasher.

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Speaker 13: John, Good morning, r Good morning John. It is opening

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Speaker 13: day at the US Open. Plus he met of the

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Speaker 13: women's top seed, eaganstry Untech plays the first match at

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Speaker 13: Ash Stadium, followed by Francis Tafo. He made that great

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Speaker 13: run of the semi finals last year before he fell

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Speaker 13: in five sets to the ventral champ Carlos Alcaraztiapo seated

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Speaker 13: ten fellow American Taylor Fritz seeded ninth. He plays this

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Speaker 13: afternoon at Armstrong Stadium. Novak Djokovic and Coco Goff both

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Speaker 13: played tonight. Golf comes to the Open having won her

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Speaker 13: last two tournaments. Victor Hoblin, the twenty four year old Norwegian,

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Speaker 13: won the Tour Championship in Atlanta, going away by five Johnts.

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Speaker 13: He won the FedEx Cup and the eighteen million dollar

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Speaker 13: Bonus Yankee in Tampa had a four to two lead,

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Speaker 13: then lost to the Rays seven to four. Yanks had

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Speaker 13: three home runs but had only one other hit, and

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Speaker 13: they have now failed to win any of their last

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Speaker 13: ten series. They'll start one tonight in Detroit, the Mets

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Speaker 13: home for Texas. They salvaged one with the Angels at

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Speaker 13: City Field, scored bottom of the ninth to win three

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Speaker 13: to two. The X met Noah Cindergard released by Cleveland.

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Speaker 13: He had earlier been with the Dodgers. He was two

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Speaker 13: and six with a six and a half e ra

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Speaker 13: Hi Drama and williams Ford Pennsylvania finals of the Little

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Speaker 13: League World Series. Curasau tied the game with a grand

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Speaker 13: slam in the fifth innings, so it was five to five.

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Speaker 13: El Segundo California, then up bottom of the sixth.

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Speaker 8: Dozin World Series Chess.

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Speaker 13: Come on ABC. Simone Files won the US Gymnastics Championship

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Speaker 13: for the eighth time. John stash Away, Bloomberg Sports.

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Speaker 5: Host to coast from New York to San Francisco, Boston

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Speaker 5: to Washington, DC, nationwide on Syrias Exam the Bloomberg Business

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Speaker 5: Appen Bloomberg dot Com.

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Speaker 8: This is Bloomberg Daybreak and good morning.

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Speaker 1: I'm John Tucker. Equity futures again edging higher this morning,

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Speaker 1: stocks rose and treasury yields jumped on Friday. That came

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Speaker 1: after FED shair Jerome Palce stuck to the script and

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Speaker 1: is jackson Holes speech saying that the Fed is prepared

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Speaker 1: to raise rates further if appropriate. Right now, let's get

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Speaker 1: you set up for the trading day ahead with economist

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Speaker 1: Dennis Carment Share at the University of Akron Endowment Committee.

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Speaker 1: Always a pleasure. Dennis. Did the meeting of the Central

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Speaker 1: bankers and Jackson Hole in any way alter your outlook

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Speaker 1: for markets?

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Speaker 14: No, not really, John, It was very boring, to be

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Speaker 14: quite honest. And the only comment I would make is

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Speaker 14: that the chairman Todell, rather than saying higher for longer

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Speaker 14: said Hi for longer. No big deal. The fact that

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Speaker 14: we will probably see one last increase in the in

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Speaker 14: the overnight Fed funds rate. Maybe it'll happen at the

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Speaker 14: September meeting. They might take the overnight Fed funds rate

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Speaker 14: another twenty five basis points higher in September. If not September,

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Speaker 14: then November. But I think we're probably done with raising

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Speaker 14: the overnight Fed funds rate. However, it shall be a

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Speaker 14: long period of time before they begin the process of

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Speaker 14: easy monetary policy, at least well into twenty twenty four,

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Speaker 14: maybe into twenty twenty five before we see the Fed

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Speaker 14: changes direction of policy. So it's high for longer, not

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Speaker 14: higher for longer. That's probably the biggest thing that I

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Speaker 14: can say about the the meeting last week in Jackson Hall.

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Speaker 1: Will this rate regime lead to a sell off in stocks?

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Speaker 1: What does it do for the equity markets?

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Speaker 14: I think stocks have been overpriced for six months. It's been,

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Speaker 14: to me an egregiously overpriced stock market. We got the

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Speaker 14: CNN and Fear and Greed Index got to high of

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Speaker 14: eighty five, which is characteristically that's when markets begin to

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Speaker 14: turn down. That's when the public has been too egregiously

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Speaker 14: involved to abundantly long, and that turned lower about five

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Speaker 14: weeks ago. We had technically an unusual circumstance midweek last week,

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Speaker 14: when we opened higher on the on the Nvidia excuse me,

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Speaker 14: on the Nvidia earnings, then you close lower upon the day.

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Speaker 1: Well, let me just just interrupt theres after we got

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Speaker 1: those blowout numbers from in Vidia, there wasn't the rally

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Speaker 1: that some had expected to lift all boats if you would,

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Speaker 1: Does that indicate some degree of fatigue on the part

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Speaker 1: of equity investors?

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Speaker 14: Exactly, That's exactly what happened. The fact that you had

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Speaker 14: blowout earnings, you open the market demonstrably higher and close

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Speaker 14: lower upon the day. That's a very rare circumstance called

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Speaker 14: an outside reversal day. I tend to pay attention to

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Speaker 14: a few technical circumstances other than the reversal days. They're

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Speaker 14: very rare, they're very meaningful, they're very telling, and they

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Speaker 14: happened very infrequently, and when they do, you should pay

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Speaker 14: attention to them. The other thing that I find interesting

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Speaker 14: is that we tend to go down on big volume

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Speaker 14: and up on lighter volume, which is also indicative of

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Speaker 14: a market that's over extended to the upside and do

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Speaker 14: for correction. So I'm in this school of thought that

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Speaker 14: thinks that stock prices are going to go at least

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Speaker 14: five to ten percent lower from recent highs, maybe even

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Speaker 14: a bit lower than that, over the next three to

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Speaker 14: four to five to six months.

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Speaker 1: What is your cash position right now? For the University

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Speaker 1: of acron endowment.

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Speaker 14: We raised about a year and a half ago. We

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Speaker 14: raised one year's worth of spending, took it out of

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Speaker 14: the stock market, which is about eight percent of our portfolio,

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Speaker 14: which turned out to be a very wise, and let's

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Speaker 14: be blunting, a lucky decision, because we sold the market

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Speaker 14: two days from the highs, which is nothing other than

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Speaker 14: unintended and glamorous luck. But we got very fortunate, and

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Speaker 14: we're continuing to hold that two years worth of spending

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Speaker 14: on the sidelines. As an endowment, we have to a

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Speaker 14: certain amount of an abundant amount of position in the

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Speaker 14: stock market, but to reduce it by two years worth

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Speaker 14: of spending is by most standards, a very aggressive position.

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Speaker 14: So we're comfortable with that position, and we're holding a

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Speaker 14: fair amount of cash, a lot of two year notes,

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Speaker 14: a lot of tips in a reduced amount of equities.

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Speaker 14: But that's been the year and a half to two

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Speaker 14: years that we've made that decision.

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Speaker 1: To return to monetary policy. For a moment, the two

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Speaker 1: percent target, that almost sounds like somebody found that on

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Speaker 1: their secret decoder ring. Where does that come from? Does

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Speaker 1: that change?

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Speaker 14: I think it doesn't change. I think that mister Powers

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Speaker 14: made it abundantly clear that it's going to be two percent,

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Speaker 14: and he's going to have to hit the two percent number.

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Speaker 14: Not two point nine, not two point eight, not two

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Speaker 14: point seven, but two point zero. It's going to be

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Speaker 14: a long period of time before we get there. We

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Speaker 14: see commodity prices have been under some pressure. We prices,

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Speaker 14: corn prices, soybean prices have been under pressure. Cotton prices

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Speaker 14: have been under pressure. About the only area the commodity

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Speaker 14: markets that have been to the upside in recent months

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Speaker 14: have been crude oil prices, which the public pays a

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Speaker 14: great good deal of attention to. But the inflationary numbers

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Speaker 14: have been demonstrably less than people had anticipated, demosterly less

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Speaker 14: than the market had thought likely. And two percent inflation

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Speaker 14: is the target. They're going to get there. It's just

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Speaker 14: a matter of time.

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