Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: We begin with major political news this morning, and our
Speaker 3: first stop is Ohio, where voters have rejected him measure
Speaker 3: seen as a test on abortion rights.
Speaker 2: We get the details from Bloomberg zed Baxter.
Speaker 4: The proposition, known as Issue one, would have made it
Speaker 4: harder to pass constitutional changes. It would have mandated a
Speaker 4: supermajority sixty percent, where it is now a simple majority. Now,
Speaker 4: this was put on the ballot in an effort to
Speaker 4: short circuit a proposition on the November ballot to change
Speaker 4: the Constitution to codify abortion rights. Abortion, of course, has
Speaker 4: been a state by state issue since the Supreme Court's
Speaker 4: Roe v. Wade ruling. The vote margin wide the initiative
Speaker 4: failing fifty six to forty three percent. I'm at Baxter
Speaker 4: Bloomberg Daybreak.
Speaker 2: All right, thank you, Ed.
Speaker 5: We also have a new development in the latest criminal
Speaker 5: case against Donald Trump. It is a previous the undisclosed
Speaker 5: memo that prosecutors could use to bolster their argument of
Speaker 5: a conspiracy to overturn the election. Joan Donagher has details
Speaker 5: from our Bloomberg ninety nine to one newsroom in Washington.
Speaker 6: The New York Times says it's obtained a copy of
Speaker 6: the memo dated December sixth, twenty twenty, that first came
Speaker 6: to light in last week's indictment from Special Counsel Jack Smith.
Speaker 6: It outlines a strategy from Trump lawyer Kenneth Cheesebro to
Speaker 6: have pro Trump electors meet in states that Joe Biden
Speaker 6: had won, and portray it as a routine measure to
Speaker 6: ensure the correct electors were counted if courts or legislatures
Speaker 6: determined Trump actually won those states. Cheesebro's memo says the
Speaker 6: Supreme Court would likely reject the strategy in the end,
Speaker 6: but it would achieve two goals, putting attention on claims
Speaker 6: of voter fraud and buying the Trump campaign more time
Speaker 6: to deny Biden electoral votes in court in Washington. I'm
Speaker 6: Joan Donagher, Bloomberg Daybreak.
Speaker 2: Okay, Joan, thank you.
Speaker 3: One other note on the political front, former Arizona Republican
Speaker 3: nominee for governor Carry Lake maybe on the verge of
Speaker 3: running for office again. According to Axius, Lake will spend
Speaker 3: next month interviewing potential staff for a run for the Senate.
Speaker 2: She is then expected to launch that effort in November.
Speaker 5: Meantime, tensions between the US and China remain in focus.
Speaker 5: We're learning Washington as close to unveiling a plan to
Speaker 5: limit investment in China. Sources say the plan could apply
Speaker 5: only to Chinese companies that get at least half of
Speaker 5: their revenue from cutting edge sectors such as quantum computing
Speaker 5: and artificial intelligence. We're told the order will take about
Speaker 5: a year to go into effect. In China's economies and
Speaker 5: focus as well. This morning, amy as prices in the
Speaker 5: country fall into deflation territory. The data showed China's consumer
Speaker 5: and producer prices both posted a year over year decline
Speaker 5: in July. Consumer prices fell three tenths of one percent,
Speaker 5: while producer prices slumped four point four percent. Robin Shing
Speaker 5: is chief China economist at Morgan Stanley China.
Speaker 1: I think deflation for sure. The question is how long, and.
Speaker 2: I think it's up to the policy.
Speaker 7: Mike, Well, we will they react with accordingly to the
Speaker 7: fifth co on mon Crida.
Speaker 3: And Sheng at Morgan Stanley says it's the first time
Speaker 3: in almost three years that both consumer and producer prices
Speaker 3: in China, registered contractions in Europe.
Speaker 5: This morning, we're seeing a rebound from yesterday's losses. Italian
Speaker 5: banks had fallen after word of new tax on profits.
Speaker 5: Now Italy's government is backtracking on part of that plan.
Speaker 5: It says there will be a cap to limit the
Speaker 5: impact for many lenders. That has banks outperforming in Italy,
Speaker 5: with shares climbing as high as five percent this morning.
Speaker 3: Well back here in the US, Amy, there's plenty of
Speaker 3: corporate news to get you caught up on. Let's start
Speaker 3: with we Work. The shares are down seventeen percent in
Speaker 3: early trading. The company is raising doubt about its ability
Speaker 3: to stay in business. We Work is bleeding cash, and
Speaker 3: customers of its office rentals are canceling their memberships in droves.
Speaker 5: And a couple of gaming stocks also on the move.
Speaker 5: Shares of Pen Entertainment are up eleven percent, rival draft
Speaker 5: kings down now more than four percent. That's after ESPN
Speaker 5: signed a partnership for sports betting with Penn. We get
Speaker 5: that story from Bloomberg's Charlie Pellett.
Speaker 1: Penn Well have of a ten year exclusive right to
Speaker 1: use the ESPN bet name for sports betting in the US. Meanwhile,
Speaker 1: Penn says it is selling all of its Barstool Sports
Speaker 1: subsidiary to Dave Portnoy, who founded the sports and pop
Speaker 1: culture media company, in exchange for a non compete and
Speaker 1: other agreements. Penn also has the right to get half
Speaker 1: of the proceeds received by Portnoy in any subsequent sale
Speaker 1: of Barstool in New York. Charlie Pellett Bloomberg Daybreak.
Speaker 5: Thank you, Charlie. And we should note Walt Disney, which
Speaker 5: owns ESPN, reports earnings today and those shares are currently
Speaker 5: up nearly one percent in early trading.
Speaker 2: Wellyby.
Speaker 3: It has been a summer of labor disputes and industries
Speaker 3: from Hollywood to Detroit, and now we're getting a glimpse
Speaker 3: of how contract demands in the auto industry could affect
Speaker 3: corporate earnings. Estimates from the big US car makers show
Speaker 3: a proposed contract with the United Autoworkers Union could wipe
Speaker 3: out their profits. In Bloomberg's Doug Prisner has the story.
Speaker 8: We're told the calculations are based on the uaw's reques
Speaker 8: quest in current negotiations. They include a forty six percent
Speaker 8: wage increase, restoration of traditional pensions, cost of living increases,
Speaker 8: reduction in the work week to thirty two hours from forty,
Speaker 8: and an increase in retiree benefits. It's estimated these demands
Speaker 8: will add more than eighty billion dollars to labor cost
Speaker 8: for each of the big US automakers over the contract's
Speaker 8: four year term. Previously, UAW president Shawn Fain said record
Speaker 8: profits mean record contracts in New York. I'm Doug Kristner,
Speaker 8: Bloomberg Daybreak.
Speaker 5: All right, thank you, Nathan, time NOLVA. Look at some
Speaker 5: of the other stories making news around the world. For that,
Speaker 5: we are joined by Bloomberg's John Tucker.
Speaker 2: Good morning, John and Amy.
Speaker 9: You're here this morning, so we know it's not you.
Speaker 9: What somebody, somebody in Florida what a one point five
Speaker 9: eight billion dollar Mega Million's jackpot last night? And that
Speaker 9: ends a stretch of nearly four months when there was
Speaker 9: no winner. This is the third largest in US history.
Speaker 9: A chance of winning, by the way, was one and
Speaker 9: three hundred and two million. A grocery store at Neptune
Speaker 9: Beach sold that winning ticket. President Joe Biden says he
Speaker 9: plans to travel to Vietnam soon. Let's get that story
Speaker 9: from Bloomberg's Jeff Bellinger.
Speaker 10: Mister Biden did not provide a timeline for the Vietnam visit,
Speaker 10: but other senior administration officials have already visited the country.
Speaker 10: The United States considers Vietnam a key partner in advancing
Speaker 10: a free and open Indo Pacific. The US normalized trade
Speaker 10: relations with Vietnam in two thousand and seven, and those
Speaker 10: links have deepened since former President Donald Trump imposed tariffs
Speaker 10: on China. Vietnam is crucial for the US as it
Speaker 10: seeks to reduce its reliance on a handful of nations
Speaker 10: for the supply of critical technologies, as well as counter
Speaker 10: Chinese influence. Jeff Bellinger, Bloomberg Radio Well.
Speaker 9: Even before they pummeled the East Coast on Monday, thunderstorms
Speaker 9: have demonstrated a vast destructive power in the US. A
Speaker 9: report from insurance giant Swiss Ree says severe thunderstorms of
Speaker 9: the US accounted for nearly seventy percent of all insured
Speaker 9: natural catastrophic losses in the first half of this year.
Speaker 9: Police in Montgomery, Alabama, say at least three white people
Speaker 9: have been charged after a weekend five between a riverboat worker,
Speaker 9: the Harriot and a group of private voters. Montgomery Police
Speaker 9: Chief Darreal Albert says the private boat was illegally docked.
Speaker 11: The captain of the Harriet remained away from the dock
Speaker 11: for nearly forty to forty five minutes as they attempted
Speaker 11: to contact the operators of the private boat via PA system.
Speaker 11: They will only responded to without seen gestures, curse words.
Speaker 1: And taunting.
Speaker 9: Investigators so far have not found any indication this attack
Speaker 9: was racially motivated, and Massachusetts Captinal more Heilly as they
Speaker 9: cleared a state of emergency citing an influx of migrants.
Speaker 9: There are more than twenty thousand people, many of whom
Speaker 9: are migrants, currently living in state shelters, including infants, young children,
Speaker 9: and pregnant women. That's up from around just thirty one
Speaker 9: hundred families a year ago. Global News twenty four hours
Speaker 9: a day, powered by more than twenty seven hundred journalists
Speaker 9: and analysts in more than one hundred and twenty countries.
Speaker 9: I'm John Tucker. This he is Bloomberg. Amy.
Speaker 5: All right, John, thank you Tom now for our Bloomberg
Speaker 5: Sports update, and for that we bring in John stash Hour.
Speaker 12: Aim of the Houston Astros won the World Series last
Speaker 12: year just trying to get back to the postseason this season.
Speaker 12: They've trailed Texas in the AL West most of the season,
Speaker 12: and the Rangers are currently three games ahead, but the
Speaker 12: Astros do have a slim lead for an AL wildcard spot,
Speaker 12: and last night in Baltimore against the Orioles, who have
Speaker 12: the best record in the America League, Houston trailed six
Speaker 12: to three in the nineteen eighty two.
Speaker 10: Two again and Tucker hits it in a year pretty
Speaker 10: eat to right field that sends back with Tenna.
Speaker 5: Appleway looking up stay light out.
Speaker 6: Til Tucker gives the Astros a league with a grand slam.
Speaker 9: Seven to six, Houston.
Speaker 12: One hundred miles per hour from Bautista and more.
Speaker 3: Than that from Tucker to right film.
Speaker 2: Kbnb had the calls.
Speaker 12: The Astros win seven to six Tampa Bay Rays with
Speaker 12: three runs of the eighth inning to beat Saint Louis
Speaker 12: four to two. The Rays have the lead for the
Speaker 12: first day L wildcard spot, but they have suffered a loss.
Speaker 12: Shane McClanahan, likely done for the year with an arm injuries,
Speaker 12: got an eleven to two records, started the season great,
Speaker 12: although he's actually winless in his last six starts. Red
Speaker 12: Sox gave up three home runs, lost in home to
Speaker 12: Kansas City nine to three. It was the SOPs debut
Speaker 12: this season for Trevor's story. Nationals in Philly split a
Speaker 12: doubleheader in Philly.
Speaker 2: Phil's won the opener eight.
Speaker 12: Four, Kyle schwarberhomer twice. NAT scored in the ninth inning,
Speaker 12: whin the nightcap five to four. Giants lost to the
Speaker 12: Angels seven to five. A's lost to Texas six to one.
Speaker 12: John Stash Edward Bloomberg's.
Speaker 13: Fourth from coast to coast, from New York to San Francisco,
Speaker 13: Boston to Washington, DC, nationwide on SIRISXAM, the Bloomberg Business app,
Speaker 13: and Bloomberg dot Com.
Speaker 3: This is Bloomberg Daybreak, Good Morning. I'm Nathan Hager. A
Speaker 3: special election in Ohio and a previously undisclosed memo could
Speaker 3: have major implications on US politics heading into next year. First,
Speaker 3: voters in the key battleground state rejected a ballot measure
Speaker 3: that is seen as a test of abortion rights, and
Speaker 3: the memo reported in The New York Times, may highlight
Speaker 3: special counsel Jack Smith's case that former President Donald Trump's
Speaker 3: bid to overturn his twenty twenty election loss was a
Speaker 3: criminal conspiracy.
Speaker 2: Let's get more on both these stories. This morning.
Speaker 3: We're joined by Greg Valier, chief US policy strategist at
Speaker 3: AGF Investments.
Speaker 2: Greg. Good morning.
Speaker 3: Normally one special election might not get a lot of attention,
Speaker 3: but we know that this one in Ohio is getting
Speaker 3: noticed at the White House this morning. What is the
Speaker 3: impact of Ohio rejecting this effort to raise the bar
Speaker 3: when it comes to amending that state's constitution.
Speaker 14: Well, good morning, Nathan. This is a big deal for
Speaker 14: the Democrats. It makes it, I think even more likely
Speaker 14: that pro reproductive rights candidates will do well. You know,
Speaker 14: there were some other races earlier this year Kansas and
Speaker 14: elsewhere that showed there is strong support for abortion rights. This,
Speaker 14: I think just confirms that.
Speaker 3: Does this then have bigger implications for the race for
Speaker 3: control of Congress next year as opposed to potentially President
Speaker 3: Biden's effort to get re elected in twenty twenty four.
Speaker 14: I do think Democrats next year are well positioned on
Speaker 14: this issue. I mean, there are a lot of other issues,
Speaker 14: the economy being the number one, and of course all
Speaker 14: of the scandals coming out of what happened on January sixth,
Speaker 14: But I do think this is a big deal for
Speaker 14: the Democrats. I think that it shows that the Republicans
Speaker 14: on this issue are not in touch with a public.
Speaker 3: It is interesting to see some of the reporting about
Speaker 3: this ballot measure that a lot of business interests to
Speaker 3: come out in favor of this idea of making it
Speaker 3: more difficult to amend the constitution in Ohio, including that
Speaker 3: state's Chamber of Commerce the National Federation of Independent Business.
Speaker 2: Is there a potential business impact for this measure failing.
Speaker 14: Maybe it could be easier to pass anti business regulations
Speaker 14: a bit, But the big story is abortion.
Speaker 2: Absolutely.
Speaker 3: That does seem to be what the implications are, given
Speaker 3: that a lot of the people who are voted against
Speaker 3: this amendment said that it wouldn't necessarily have even gotten
Speaker 3: on the ballot had not the Supreme Court overturned abortion
Speaker 3: rights last year. So what is the potential read through
Speaker 3: into the presidential race for this over whelming support for
Speaker 3: the idea of abortion rights being codified in state constitutions.
Speaker 14: Well, I think that a lot of Republicans who are
Speaker 14: moderate on this issue are going to have to stay
Speaker 14: that way, and I think that for the Democrats this
Speaker 14: will be interpreted in the next few weeks as a
Speaker 14: significant victory in.
Speaker 2: The time we have left.
Speaker 3: Greg, I want to get your take as well on
Speaker 3: this memo reported in the New York Times that apparently
Speaker 3: hadn't been uncovered by the House January sixth Committee, but
Speaker 3: was part of Special Council Jack Smith's latest indictment pointing.
Speaker 2: To what he calls the fake elector scheme.
Speaker 3: How crucial is this memo as reported do you think
Speaker 3: to a Special Counsel Smith's case.
Speaker 14: Well, we'll see in reading the story in the New
Speaker 14: York Times a few minutes ago, you can make a
Speaker 14: case for a conspiracy that one of these six alleged
Speaker 14: co conspirators had a big role in this. And I
Speaker 14: think if a conspiracy case looks more likely, you have
Speaker 14: to ask the question, could one or two of those
Speaker 14: six cop a plea? Could they seek a plea bargain?
Speaker 14: And I think that's no longer out of the question.
Speaker 2: Who are you looking at specifically that my cop a
Speaker 2: plea here?
Speaker 14: Juliani, I think he'd be high on the list. There
Speaker 14: are others though as well, who know where all the
Speaker 14: bodies were buried? This story in the Times this morning
Speaker 14: is going to have legs. I think it'll be a
Speaker 14: dominant factor for weeks to come as a conspiracy case
Speaker 14: become stronger.
Speaker 3: Does it rise to the level of a smoking gun
Speaker 3: for you? Does it go that far?
Speaker 2: Do you think?
Speaker 12: Yeah?
Speaker 14: I thought that, Nathan, that maybe you would be a
Speaker 14: smoking gun too early to say. I'm sure that Trump
Speaker 14: people are going to say that this is not relevant,
Speaker 14: that it doesn't make any strong case. But you look
Speaker 14: at this. The people who put this fake electric scheme
Speaker 14: together had a plan and they coordinated it, and to me,
Speaker 14: barraseat charge looks a lot more likely.
Speaker 7: This is Bloomberg day Break Today, your morning brief on
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Speaker 2: I'm Nathan Hager.
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