WEBVTT - Bloomberg Daybreak: September 16, 2022 - Hour 2 (Radio) 0:00:02.640 --> 0:00:05.920 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:06.000 --> 0:00:09.920 Daybreak for Friday, September six two. Coming up this hour, 0:00:10.240 --> 0:00:13.800 stock slide yields rise as we close out a tumultuous 0:00:13.800 --> 0:00:17.040 week for the markets. Investors get another key economic report 0:00:17.079 --> 0:00:20.560 before next week's FED decision. Fed X does not deliver 0:00:20.720 --> 0:00:23.799 for investors as shares plunge, and a key ruling in 0:00:23.800 --> 0:00:27.200 the classified documents probe of Donald Trump. New York City 0:00:27.240 --> 0:00:30.520 is nearing its breaking point by migrants sent from Texas. 0:00:30.520 --> 0:00:34.080 Plus preparations continue for Queen Elizabeth's funeral on Monday. I'm 0:00:34.120 --> 0:00:37.040 Michael bar More Ahead, I'm John stash owd Sports, The 0:00:37.080 --> 0:00:40.080 Met's Meat, the Pirates, The Yankees visit Milwaukee Tonight Thursday 0:00:40.120 --> 0:00:43.479 Night Football, the Jeans beat the Charger. That's all straight 0:00:43.520 --> 0:00:47.720 ahead on Bloomberg day Break on Bloomberg eleven, Trio, New York, 0:00:47.880 --> 0:00:53.360 Bloomberg Washington, d C, Bloomberg one six one, Boston, Bloomberg 0:00:53.440 --> 0:00:57.720 nine six, San Francisco, Sirius x M one nineteen and 0:00:57.760 --> 0:01:00.880 around the world on Bloomberg Radio Dot Come and via 0:01:00.960 --> 0:01:09.640 the Bloomberg Business Act. Good morning, I'm Nathan Higer, and 0:01:09.680 --> 0:01:13.040 I'm Karen, Moscow and US Dock Index futures are lower 0:01:13.160 --> 0:01:15.160 this morning. We're coming up to six o one on 0:01:15.200 --> 0:01:17.360 Wall Street, and we check the markets every fifteen minutes 0:01:17.400 --> 0:01:20.919 throughout the trading day. On Bloomberg SMP futures down about 0:01:20.920 --> 0:01:23.800 thirty seven points down, futures down two D fifty two, 0:01:23.800 --> 0:01:27.040 and NASDAG futures down one D thirty seven, and the 0:01:27.120 --> 0:01:30.360 tenure treasury down four thirty seconds, the yield three point 0:01:30.360 --> 0:01:32.880 four six percent. They yield on the two year at 0:01:32.920 --> 0:01:36.720 three point nine zero percent. Nathan Well, Karen, this stock 0:01:36.800 --> 0:01:39.280 slide is deepening as we close out a trading week 0:01:39.319 --> 0:01:42.120 on track to be the worst since June. European equities 0:01:42.120 --> 0:01:44.199 are down for a fourth straight day, so we're stocks 0:01:44.200 --> 0:01:46.720 in Asia. Two year treasury yields are climbing to their 0:01:46.760 --> 0:01:50.040 highest level in fifteen years, deepening a curve inversion that 0:01:50.080 --> 0:01:52.840 is seen as a recession signal. But Brent Shooty, chief 0:01:52.880 --> 0:01:56.040 investment strategist with Northwestern Mutual Things, we may be seeing 0:01:56.040 --> 0:01:59.360 a bottom. Sentiment is already awful. People have sold already 0:01:59.400 --> 0:02:01.520 throwing the fifty present retraction of blows that we had. 0:02:01.560 --> 0:02:03.200 And I think you have the basis to the market 0:02:03.200 --> 0:02:05.000 having put in the bottom. That doesn't mean it won't 0:02:05.000 --> 0:02:06.760 be a grinding back and forth advance, but I don't 0:02:06.800 --> 0:02:09.640 think we're going to go below those tunew French Shooty 0:02:09.639 --> 0:02:12.320 with Northwestern Mutual says stocks usually hit a bottom when 0:02:12.360 --> 0:02:16.960 inflation peaks Well. Nathan Investors get another key economic report 0:02:17.000 --> 0:02:19.840 to digest before we headed to the weekend. At Tenneham 0:02:19.880 --> 0:02:22.680 Wall Street time, we get September sentiment numbers from the 0:02:22.760 --> 0:02:26.240 University of Michigan and Bloomberg's Michael McKee has more The 0:02:26.320 --> 0:02:29.680 sustained slide in gasoline prices should lift the headline sentiment 0:02:29.720 --> 0:02:33.120 index as well as consumers view of current economic conditions. 0:02:33.200 --> 0:02:35.120 The numbers that matter most, however, it will be the 0:02:35.160 --> 0:02:39.400 expected inflation gauges. The Fed wants to ensure expectations stay 0:02:39.440 --> 0:02:43.720 anchored so a wage price spiral doesn't develop. Expected yearhead 0:02:43.720 --> 0:02:47.200 inflation should continue to drop along with gasoline prices. The 0:02:47.280 --> 0:02:49.880 rate was four point eight percent in July. That was 0:02:49.960 --> 0:02:52.760 down from five point two percent in June to the 0:02:52.760 --> 0:02:56.600 lowest in eight months. Michael McKee, Bloomberg Daybreak, All right, Mike, thanks. 0:02:56.600 --> 0:02:58.960 The sentiment report caps off a busy week of data 0:02:59.040 --> 0:03:03.120 highlighted by two days hotter than expected inflation report. Traders 0:03:03.120 --> 0:03:05.480 now turn their attention to next week's FED meeting. The 0:03:05.520 --> 0:03:08.120 debate is whether the Central Bank raises rates by seventy 0:03:08.200 --> 0:03:11.240 five basis points or a full one percent. Lizzie and 0:03:11.240 --> 0:03:14.920 Saunders is chief investment strategist at Charles Schwab, to me, 0:03:15.120 --> 0:03:17.400 the likelihood is more on the seventy five end, just 0:03:17.440 --> 0:03:19.320 because I'm not sure at this stage in the game 0:03:19.440 --> 0:03:22.480 Powell wants to be seen as is putting forth shock 0:03:22.520 --> 0:03:25.960 and aw kind of policy. I think more likely is 0:03:26.360 --> 0:03:29.600 keeping both November and December firmly on the table and 0:03:29.639 --> 0:03:32.880 really pushing back on this notion that even existed a 0:03:32.919 --> 0:03:36.080 month ago that after a September hike, the Fed might 0:03:36.120 --> 0:03:38.320 have the green light to pause when it comes to 0:03:38.320 --> 0:03:41.240 market volatility. Liza and Saunders of Charles Schwab says high 0:03:41.240 --> 0:03:43.560 speed traders may be driving some of the wild swings 0:03:43.600 --> 0:03:46.480 we've seen this week well. In this more axequity action, 0:03:46.600 --> 0:03:49.160 Nathan Shares a fed exor down nineteen and a half 0:03:49.240 --> 0:03:52.400 percent in early trading. The company said preliminary results for 0:03:52.480 --> 0:03:55.480 the quarter fell short of expectations. We get the story 0:03:55.520 --> 0:03:59.120 from Bloomberg. Charlie Pellett, The Courier said adjusted earnings for 0:03:59.160 --> 0:04:02.520 the fiscal first water were three forty four share, well 0:04:02.680 --> 0:04:05.720 short of the five ten average about of analysts. CEO 0:04:05.840 --> 0:04:10.200 Raj Supermannian said in the statement, global volumes declined as 0:04:10.280 --> 0:04:14.200 macro economic trends significantly worsened later in the quarter, both 0:04:14.200 --> 0:04:18.159 internationally and in the US. In addition to withdrawing its 0:04:18.160 --> 0:04:22.840 fiscal three earnings outlook provided in June, FedEx also said 0:04:22.920 --> 0:04:26.679 it expects conditions to worsen in its fiscal second quarter. 0:04:27.240 --> 0:04:30.880 In New York, Charlie Pellett Bloomberg Daybreak. Okay, Charlie, thanks. 0:04:30.880 --> 0:04:33.559 Another stock following this morning is General Electric. Those shares 0:04:33.640 --> 0:04:36.279 down two percent in early trading. G S finance chief 0:04:36.320 --> 0:04:39.640 is warning supply chain challenges away in its third quarter performance. 0:04:40.480 --> 0:04:42.960 The rails are still on the move this morning, Nathan. 0:04:43.000 --> 0:04:46.120 A tentative labor agreement is in place between freight rail 0:04:46.160 --> 0:04:50.040 companies and unions that averts a strike. President Biden reportedly 0:04:50.080 --> 0:04:53.720 told both sides failure was not an option. Bloomberg political 0:04:53.760 --> 0:04:56.880 contributor Rick Davis said, the President deserves the victory lab 0:04:57.120 --> 0:04:59.280 and we had a big run up to this. Everybody 0:04:59.360 --> 0:05:01.720 was looking a lot of concerns about the impact on 0:05:01.760 --> 0:05:04.880 the economy, and the team and the president came through 0:05:05.040 --> 0:05:07.040 and and this is what you wanted to have happened, 0:05:07.080 --> 0:05:10.599 and they deserve a right to celebrate. Great Davis spoke 0:05:10.640 --> 0:05:13.880 with our Washington corresponded Joe Matthew on Bloomberg Sound On. 0:05:14.080 --> 0:05:16.400 Stay tuned for more on the tentative deal when we 0:05:16.440 --> 0:05:19.680 speak live with Labor Secretary Marty Walsh. That's coming up 0:05:19.720 --> 0:05:22.479 on Bloomberg's Balance of Power live at noon Eastern on 0:05:22.520 --> 0:05:26.159 Bloomberg Radio and Television. Staying with politics, Karen, there's news 0:05:26.200 --> 0:05:29.360 on the Justice Department's legal battle with former President Trump. 0:05:29.360 --> 0:05:32.320 A special Master has been named to review documents sees 0:05:32.360 --> 0:05:34.880 from our lago while the judges denied a request from 0:05:34.880 --> 0:05:36.960 the d o J to keep using the documents in 0:05:37.000 --> 0:05:40.440 their probe. Bloomberg's Amy Morris has details from our news 0:05:40.520 --> 0:05:43.400 room in Washington. Both the Justice Department and the Trump 0:05:43.480 --> 0:05:46.800 legal team agreed retired federal Court judge Raymond Deary would 0:05:46.800 --> 0:05:50.000 be a suitable candidate for Special Master, but the government 0:05:50.040 --> 0:05:52.920 won't be allowed to keep using about one hundred documents 0:05:52.960 --> 0:05:56.880 listed as classified until after the special Master reviews all 0:05:57.040 --> 0:06:00.440 eleven thousand documents to determine if any should be withheld 0:06:00.480 --> 0:06:03.400 because of attorney client or executive privilege. D o J 0:06:03.640 --> 0:06:06.599 also asked for a deadline of October seventeenth, but the 0:06:06.640 --> 0:06:10.280 court gave Deary until November thirty to complete his review, 0:06:10.680 --> 0:06:14.200 and the court ordered Trump to cover those costs. In Washington, 0:06:14.279 --> 0:06:17.360 I'm anymore as Bloomberg daybreak right Amy, thank you meantime 0:06:17.360 --> 0:06:20.039 in the Middle East, it's a meeting of two embattled leaders. 0:06:20.120 --> 0:06:23.760 Russian President Vladimir Putin told Chinese leader she Jan Ping 0:06:24.160 --> 0:06:28.720 he understands Beijing's questions and concerns about his invasion of Ukraine. 0:06:29.040 --> 0:06:32.480 Begin More from Bloomberry Stephen Angle in Hong Kong, this 0:06:32.600 --> 0:06:37.000 relationship is not as rosy and positive as it seems 0:06:37.120 --> 0:06:40.720 on the surface. The war does not necessarily play to 0:06:41.120 --> 0:06:44.880 China's needs, and any hope for a quick invasion and 0:06:45.040 --> 0:06:48.719 quick resolution of the Ukraine war is long. In the 0:06:48.839 --> 0:06:50.960 review of Mirror right now, it's been going for more 0:06:51.000 --> 0:06:54.080 than six months, and Bloomberry Stephen Angle says it was 0:06:54.120 --> 0:06:57.200 the first in person talks between presidents Putin and she 0:06:57.520 --> 0:07:00.120 since the start of the war in Ukraine. U S 0:07:00.160 --> 0:07:02.479 and P futures are now down thirty eight points. Stown 0:07:02.480 --> 0:07:05.320 futures down two undred sixty two, NASDAC futures of lower 0:07:05.320 --> 0:07:07.960 by a hundred forty two points. The tenure treasury is 0:07:08.000 --> 0:07:11.680 down five thirty seconds yield three point four six nimex 0:07:11.760 --> 0:07:14.520 crewed down four tenths percent at eighty four dollars seventy 0:07:14.600 --> 0:07:17.200 nine cents of barrel. Straight ahead, local headlines and a 0:07:17.280 --> 0:07:24.080 check of sports. This is Bloomberg six oh seven on 0:07:24.080 --> 0:07:26.400 Wall Street, fifty seven degrees in Central Park. We're still 0:07:26.480 --> 0:07:28.960 dealing with that truck firing the southbound of Jersey Turnpike 0:07:29.000 --> 0:07:32.080 truck lanes. Details coming up in traffic. First Michael Barr 0:07:32.120 --> 0:07:33.720 with what else is going on in New York and 0:07:33.800 --> 0:07:36.240 around the world. Michael, thank you very much. Nathan, New 0:07:36.320 --> 0:07:40.720 York is reassessing the city's right to shelter practice following 0:07:40.760 --> 0:07:43.360 an influx of more than eleven thousand migrants who have 0:07:43.400 --> 0:07:47.200 been bussed from Texas. That's according to Mayor Eric Adams, 0:07:47.240 --> 0:07:50.200 chief concil, who says the city is nearing a breaking 0:07:50.240 --> 0:07:54.800 point with asylum seekers and the homeless. Council Brendan McGuire 0:07:55.000 --> 0:07:58.320 says though the law itself is staying put. Obviously, none 0:07:58.320 --> 0:08:02.480 of those practices developed with anyone contemplating that they were 0:08:02.480 --> 0:08:05.120 going to be over ten thousand individuals bust into New 0:08:05.200 --> 0:08:08.920 York with no connection to New York from from overseas. 0:08:09.640 --> 0:08:12.520 Mayor Adams says the city will not be like those 0:08:12.600 --> 0:08:16.200 municipalities and states that fly people to Massachusetts or put 0:08:16.240 --> 0:08:18.640 people on buses. It doesn't matter if you came here 0:08:18.640 --> 0:08:23.080 on a Mayflower or on a bus at the port authority, 0:08:23.200 --> 0:08:27.240 you deserve the dignity and respect that this city continues 0:08:27.480 --> 0:08:31.280 to show. Mayor Adams and Council McGuire made their comments 0:08:31.280 --> 0:08:35.920 while touring an asylum seeker Resource Navigation center. Ukrainian authorities 0:08:35.920 --> 0:08:39.480 have found a mass burial site near a recaptured northeastern 0:08:39.480 --> 0:08:43.640 city previously occupied by Russian forces. President of Voladimir z 0:08:43.679 --> 0:08:46.840 Lensky announced the discovery and as nightly addressed to the nation. 0:08:47.120 --> 0:08:50.400 The grave was found close to Ilium in the Kharkiv region. 0:08:51.000 --> 0:08:54.440 Rehearsals are underway as hundreds of soldiers and bagpipers are 0:08:54.440 --> 0:08:58.160 practicing for Queen Elizabeth the Second's funeral on Monday. Meanwhile, 0:08:58.200 --> 0:09:00.600 people are being told not to join in the line 0:09:00.840 --> 0:09:03.640 to view the queen's coffin after a surge in numbers. 0:09:03.920 --> 0:09:07.360 British officials said this morning that the organized line was 0:09:07.520 --> 0:09:10.080 at capacity and no one will be allowed to join 0:09:10.160 --> 0:09:12.959 it for at least six hours. Thousands have been awaiting 0:09:13.000 --> 0:09:15.680 hours in long lines to pay their respects to the 0:09:15.760 --> 0:09:19.080 Queen as she lies in state at Westminster Hall, including 0:09:19.120 --> 0:09:21.800 this woman. We were talking before we came, do we 0:09:21.920 --> 0:09:24.880 curn't see? Do we file? But when we insisted that, 0:09:25.120 --> 0:09:27.520 she didn't know what to do, and we both slipped 0:09:27.520 --> 0:09:30.240 to one another and we both just about and then 0:09:30.280 --> 0:09:34.120 it's just that really overwhelming feeling, but you can explain. 0:09:34.760 --> 0:09:37.360 Special coverage of Monday's funeral can be heard live on 0:09:37.360 --> 0:09:40.560 Bloomberg Radio starting at six am Wall Street Time. The 0:09:40.679 --> 0:09:43.120 U S National Hurricane Center is keeping a close eye 0:09:43.120 --> 0:09:46.199 on the newly formed tropical Storm Fiona in the Caribbean. 0:09:46.440 --> 0:09:48.720 Forecasters say it is on track to move through the 0:09:48.760 --> 0:09:52.000 Leland Islands today as it heads toward the Virgin Islands 0:09:52.000 --> 0:09:54.920 and Puerto Rico. Global News twenty four hours a day 0:09:55.000 --> 0:09:57.880 on airand on Bloomberg quick Take, powered by more than 0:09:58.840 --> 0:10:01.199 d journalists and analysts more in a hundred twenty countries. 0:10:01.360 --> 0:10:08.640 I'm Michael bar This is Bloomberg. Nathan, Thanks Michael. Coming 0:10:08.720 --> 0:10:10.360 up to six ten on Wall Street. Time for the 0:10:10.360 --> 0:10:14.200 Bloomberg Sports update. Here's John Stenshower. Thanks Nathan. All around Baseball, 0:10:14.240 --> 0:10:17.280 it was Roberto Clemente Day, nearly fifty years after his 0:10:17.320 --> 0:10:19.240 death in the plane crash. The ceremony took place in 0:10:19.240 --> 0:10:22.120 New York to Tampa. Bay Rays started all Latin players, 0:10:22.120 --> 0:10:24.400 first time that's ever happened in City field. The Mets 0:10:24.440 --> 0:10:27.360 all wore Clemente's number twenty one day beat the Pirates 0:10:27.360 --> 0:10:29.760 Clemente's team seven to one to snap at three game 0:10:29.800 --> 0:10:33.200 moving speak, Daniel Vogelback, who the Mets acquired from Pittsburgh, 0:10:33.240 --> 0:10:35.040 had two hits, three rb i s fifteen twin for 0:10:35.120 --> 0:10:38.480 Carlos Carrasco. The Mets now lead Atlanta by one game. 0:10:38.520 --> 0:10:41.440 The Yankees left Frankie Montas on the Mount tonight in Milwaukee. 0:10:41.520 --> 0:10:43.680 He's made seven starts with the Yanks. He's only one 0:10:44.240 --> 0:10:46.400 once Thursday Night Football kick him off. Week two, the 0:10:46.480 --> 0:10:49.400 Chargers led in Kansas City by ten. The Chiefs stored 0:10:49.440 --> 0:10:52.960 the next twenty, including a ninety nine yard interception returned 0:10:52.960 --> 0:10:55.120 by Jalen Watson with ten and a half minutes ago. 0:10:55.200 --> 0:10:58.440 That's not the tie case won twenty seven twenty four 0:10:58.520 --> 0:11:01.559 costly injury for Seattle of Stars safety Jamal Adams. The 0:11:01.679 --> 0:11:04.760 X yet done for the year torn quad w NBA 0:11:04.840 --> 0:11:07.920 Finals Annecticut Son stayed a lot outscored Las Vegas twenty 0:11:08.000 --> 0:11:09.880 eight to seven and the fourth quarter and one by 0:11:09.920 --> 0:11:12.080 twenty nine, and the Ace is still in the best 0:11:12.080 --> 0:11:15.040 of five series to one. Roger Federer third on the 0:11:15.080 --> 0:11:18.120 list of most Grand Slams one with twenties, been passed 0:11:18.120 --> 0:11:19.959 by both Ralph Nadal and no back joke of it, 0:11:20.120 --> 0:11:23.439 but Federer obviously had a brilliant career, ract number one 0:11:23.480 --> 0:11:26.920 for two hundred and thirty seven consecutive weeks. He's retiring 0:11:27.000 --> 0:11:30.960 at age started. I was a bull kid in my 0:11:31.000 --> 0:11:33.959 hometown of Bosl. I used to watch the players with 0:11:34.040 --> 0:11:36.640 a sense of wonder. They were like giants to me, 0:11:36.840 --> 0:11:39.600 and I began to dream. My dreams led me to 0:11:39.600 --> 0:11:42.560 work harder, and I started to believe in myself. Federal 0:11:42.640 --> 0:11:45.360 play one more event, the Labor Cup in London next week. 0:11:45.880 --> 0:11:49.640 Stature Bloomberg sports okay, John, thank you right now. S 0:11:49.679 --> 0:11:52.320 and P futures are lower by thirty eight points. South 0:11:52.320 --> 0:11:55.480 futures down two to sixty six NASAC futures on the 0:11:55.520 --> 0:11:57.640 decline by a hundred forty three points in the tenure 0:11:57.679 --> 0:12:01.240 treasuries down five thirty seconds, the yield three point four 0:12:01.360 --> 0:12:08.360 seven percent. This is Bloomberg Bloomberg eleven three oh weather 0:12:08.440 --> 0:12:11.600 sunshine today with him for seventies, will hit eighty tomorrow 0:12:11.640 --> 0:12:14.720 under partly mostly sunny sky sunshine for Sunday with some 0:12:14.760 --> 0:12:17.200 afternoon clouds coming in highs in the upper eighties. Right 0:12:17.200 --> 0:12:24.280 now fifty eight in Central Park Markets. Headlines and breaking 0:12:24.320 --> 0:12:27.200 news twenty four hours a day at Bloomberg dot Com, 0:12:27.320 --> 0:12:30.880 the Bloomberg Business at and at Bloomberg Quick Tape. He's 0:12:30.880 --> 0:12:40.000 a Bloomberg Business Flash and I'm Karen Moscow. And equities 0:12:40.000 --> 0:12:43.000 are extending declines, with an index of global stocks on 0:12:43.080 --> 0:12:45.199 track for the worst week since June. Will engage of 0:12:45.240 --> 0:12:47.760 the dollar stores to a fresh record, reflecting vets for 0:12:47.800 --> 0:12:51.440 outsized federal reserved interest rate hikes. US futures are dropping, 0:12:51.480 --> 0:12:53.959 suggesting to sell off that drove the SNP five hundred 0:12:53.960 --> 0:12:56.400 to its lowest clothes in about two months. Yesterday is 0:12:56.440 --> 0:12:59.400 not over yet. We checked the markets every fifteen minutes 0:12:59.440 --> 0:13:01.839 throughout the trail eating day on Bloomberg. As in p 0:13:02.040 --> 0:13:04.560 future is down thirty nine points this morning, down futures 0:13:04.559 --> 0:13:07.080 down two hundred sixty seven and NASDAC futures down one 0:13:07.280 --> 0:13:10.120 d forty seven. The decks in Germany's down one point 0:13:10.160 --> 0:13:12.880 six percent, the ten year treasury down four thirty seconds. 0:13:12.880 --> 0:13:15.520 He'll three point four six percent yield on the two 0:13:15.640 --> 0:13:18.640 year three point eight nine percent. Ninemex s hered oil 0:13:18.760 --> 0:13:20.560 is up tenth of a percent, or nine cents at 0:13:20.559 --> 0:13:23.480 eighty five dollars. Nineteen cents of barrel comes called down 0:13:23.559 --> 0:13:26.880 half percent or nine dollars at sixteen sixty eight thirty announced. 0:13:27.240 --> 0:13:30.200 The euro point seven one against the dollar, British found 0:13:30.240 --> 0:13:32.400 one point one three seven eight, the n one forty 0:13:32.480 --> 0:13:34.800 three point to eight. And look at a bit coin, 0:13:34.880 --> 0:13:38.679 it's down half percent at nineteen thousand, seven hundred fifty dollars. 0:13:38.960 --> 0:13:41.800 That's a Bloomberg business flashdown. Here's Michael Barr with more 0:13:41.880 --> 0:13:44.040 on what's going on around the world. Michael, thank you 0:13:44.120 --> 0:13:47.240 very much. Karen. In the UK, preparations are ongoing for 0:13:47.280 --> 0:13:50.559 the funeral of Queen Elizabeth the second next week. Meanwhile, 0:13:50.600 --> 0:13:52.719 people are being told not to join the line to 0:13:52.840 --> 0:13:56.240 view the queen's golfin after a surge in numbers. British 0:13:56.320 --> 0:13:59.280 officials said this morning that the organized line was at 0:13:59.320 --> 0:14:01.760 capacity and no one will be allowed to join it 0:14:01.800 --> 0:14:04.760 for at least six hours. Coverage of Monday's funeral can 0:14:04.800 --> 0:14:07.439 be heard live on Bloomberg Radio starting at six am 0:14:07.480 --> 0:14:10.800 Wall Street Time. The federal Judge as appointed veteran New 0:14:10.880 --> 0:14:14.120 York jurist Raymond Derry to serve as a special Master 0:14:14.240 --> 0:14:18.120 in the criminal investigation into the presence of classified documents 0:14:18.120 --> 0:14:21.200 at Donald Trump's Florida home. In baseball, the Matt's beat 0:14:21.200 --> 0:14:25.040 the Pirate at seven one. The A's lost. Thursday Night football, 0:14:25.080 --> 0:14:28.920 the Chiefs beat the Chargers. Four Global News twenty four 0:14:28.960 --> 0:14:32.000 hours a day on air and on Bloomberg Quicktake, powered 0:14:32.000 --> 0:14:34.560 by more than twenty seven hundred journalist and analysts more 0:14:34.560 --> 0:14:37.040 than a hundred twenty countries. How Michael Barr and this 0:14:37.320 --> 0:14:40.040 is Bloomberg. Nathan all right, Michael, Thanks at six nineteen 0:14:40.080 --> 0:14:42.880 on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:42.920 --> 0:14:45.480 This is Bloomberg Daybreak. And as we continue the march 0:14:45.800 --> 0:14:48.120 to the next FED decision coming up on Wednesday, we 0:14:48.200 --> 0:14:51.320 keep following the data and we get another read today 0:14:51.360 --> 0:14:55.359 that could tell us more about inflation expectations. Bloomberg Economics 0:14:55.360 --> 0:14:59.040 and Policy correspondent Michael McKee is with us live this 0:14:59.080 --> 0:15:02.920 morning from our Interactive Brokers studios. Mike, there's been so 0:15:03.000 --> 0:15:05.800 much attention, of course, on this week's hotter than expected 0:15:05.840 --> 0:15:10.440 inflation print. How much is University of Michigan sentiment gonna 0:15:10.520 --> 0:15:13.280 matter for this Fed? Well, it's not gonna matter for 0:15:13.320 --> 0:15:17.560 this coming week's FED meeting because the Fed's pretty much 0:15:17.600 --> 0:15:22.720 told us they're gonna do seventy and the surprise factor 0:15:22.960 --> 0:15:27.080 from that June reading at the in the Michigan numbers 0:15:27.120 --> 0:15:28.840 that caused them to go seventy five and the first 0:15:28.840 --> 0:15:32.080 place has gone so um. They're gonna look at it 0:15:32.280 --> 0:15:36.720 and uh, and they'll incorporate it into their thinking. But 0:15:36.760 --> 0:15:39.200 we've already had. The New York Fed does a similar 0:15:39.240 --> 0:15:42.480 survey on expectations with consumers that came out earlier this 0:15:42.520 --> 0:15:46.080 week and showed that consumer expectations for inflation had fallen. 0:15:46.600 --> 0:15:48.880 And that is probably gonna be the case with Michigan 0:15:48.960 --> 0:15:51.680 because gas prices have been falling for two months now, 0:15:52.080 --> 0:15:55.440 and the Michigan survey would have been all but taken 0:15:55.520 --> 0:16:01.120 before the the CPI came out, so, uh, it probably 0:16:01.120 --> 0:16:03.160 isn't going to have as big an effect as it 0:16:03.200 --> 0:16:05.640 had back in June. Part of what I think I 0:16:05.680 --> 0:16:09.360 hear you saying here, Mike, is that because gas prices 0:16:09.360 --> 0:16:13.480 are so much a part of consumer inflation expectations, that 0:16:13.560 --> 0:16:15.800 maybe this doesn't matter as much for the Fed because 0:16:15.800 --> 0:16:21.800 it's focused so much on the inflation factors that are 0:16:21.880 --> 0:16:26.160 more under its control, the core of piece of inflation. Yes, 0:16:26.280 --> 0:16:29.320 the Fed is knows it can't do anything about energy 0:16:29.360 --> 0:16:33.680 prices other than to weaken the overall economy, So people 0:16:33.760 --> 0:16:36.080 drive a little bit less, which is going to be 0:16:36.160 --> 0:16:39.600 a side effect of their raising rates. Uh. The Michigan 0:16:39.640 --> 0:16:45.160 survey is highly responsive to gasoline prices into stock market moves, 0:16:45.200 --> 0:16:49.520 where the Conference Board numbers are much more reactive to 0:16:49.640 --> 0:16:53.240 the state of the labor market. And the economists who 0:16:53.520 --> 0:16:56.840 follow this they know that, so they do a little 0:16:56.840 --> 0:16:59.360 bit of discounting when we get the figures. Now, since 0:16:59.400 --> 0:17:02.480 you mentioned market moves, we're seeing plenty of those this 0:17:02.560 --> 0:17:05.479 morning to the downside, and we saw it again of 0:17:05.520 --> 0:17:09.320 course after we got that cp I read on Tuesday. 0:17:09.440 --> 0:17:12.280 Does that make any difference for the Federal Reserve and 0:17:12.359 --> 0:17:15.639 its decision making to see the expectations in the market. 0:17:16.400 --> 0:17:20.520 I'm already pricing in the possibility of outsized rate moves. 0:17:20.800 --> 0:17:23.720 Does that give the Fed some kind of room to 0:17:24.240 --> 0:17:27.960 consider taking a pause? It would give them room to 0:17:28.000 --> 0:17:32.680 consider taking not a pause, but to go higher if 0:17:32.680 --> 0:17:35.240 they felt they wanted to do a hundred basis points. 0:17:35.280 --> 0:17:37.679 Now most people don't think they're gonna do that. It 0:17:37.720 --> 0:17:41.639 would it would be uncharted territory for the markets, and 0:17:41.680 --> 0:17:44.280 we're not sure how the markets would react. Now. The 0:17:44.359 --> 0:17:48.240 Fed in a sense doesn't care about the stock market 0:17:48.280 --> 0:17:50.760 as long as it's functioning. If you can make a 0:17:50.800 --> 0:17:53.800 trade and you can deliver your securities and you can 0:17:53.840 --> 0:17:56.560 get your money back, then the Fed is fine with that, 0:17:56.720 --> 0:17:59.680 even if the market is going down. If it goes 0:17:59.680 --> 0:18:02.680 down too fast or it starts to seize up, then 0:18:02.920 --> 0:18:05.880 the Fed would have some concerns. But at this point 0:18:05.880 --> 0:18:08.520 everything seems to be working fine. Makes you you've seen 0:18:08.640 --> 0:18:10.080 these numbers, It makes you want to go back to 0:18:10.119 --> 0:18:13.960 bed instead of really work today. But um, it's not 0:18:14.000 --> 0:18:15.840 going to bother the Fed too much, and not that 0:18:15.880 --> 0:18:17.720 it matters since so many of us working from home 0:18:17.800 --> 0:18:20.480 still anyway, But in our last minute, here Mike. I 0:18:20.520 --> 0:18:23.760 wonder if the strong retail sales numbers we got yesterday 0:18:23.880 --> 0:18:26.879 complicates the Fed's mansion, does it. Well, they weren't all 0:18:26.880 --> 0:18:28.960 that strong, because you have to remember they were just 0:18:29.359 --> 0:18:31.720 you have to adjust those for inflation. So a lot 0:18:31.760 --> 0:18:35.200 of the spending that we saw is UH is taken 0:18:35.200 --> 0:18:38.320 away by that. We're buying less stuff, just paying more 0:18:38.320 --> 0:18:41.160 money for it. The question is do we buy are 0:18:41.160 --> 0:18:44.600 we spending more on services? We've seen a switch to 0:18:44.840 --> 0:18:47.520 more service oriented spending, and we did see a big 0:18:47.640 --> 0:18:51.200 rising in bars and restaurants. That's the only services category 0:18:51.200 --> 0:18:53.840 in the retail sales report. So at the end of 0:18:53.840 --> 0:18:56.840 the month we'll get a report that incorporates both goods 0:18:56.880 --> 0:18:59.520 and services and we'll see But at this point that 0:19:01.040 --> 0:19:03.640 the retail sales number sure of tell the Fed we're 0:19:03.640 --> 0:19:07.440 having an effect. We're slowing the economy alright. Bloomberg's Michael 0:19:07.520 --> 0:19:11.080 McKee are economics and policy correspondent. As we UH keep 0:19:11.080 --> 0:19:13.720 a very close eye on the data ahead of that 0:19:13.800 --> 0:19:17.840 Wednesday FED decision. University of Michigan index comes out ten 0:19:17.960 --> 0:19:20.200 am Wall Street Time. One more factor for the FED 0:19:20.280 --> 0:19:26.520 to consider as it looks to UH possibly raised by 0:19:26.640 --> 0:19:30.359 seventy five basis points. Markets holding out the possibility maybe 0:19:30.400 --> 0:19:33.280 a hundred, but as Mike was mentioning, the Fed is 0:19:33.480 --> 0:19:36.720 pretty much telegraphed that seventy five is in the books. 0:19:36.720 --> 0:19:40.240 Here we get that decision. Of course, Wednesday afternoon, we'll 0:19:40.240 --> 0:19:43.960 have full coverage for you here on Bloomberg Radio. SMP 0:19:44.080 --> 0:19:46.760 futures right now down thirty four points, Staff futures down 0:19:46.800 --> 0:19:49.479 two hundred forty, Nasdaq futures are lower by a hundred 0:19:49.480 --> 0:19:52.520 thirty two points, and the tenure Treasury is down three 0:19:52.560 --> 0:19:55.480 thirty seconds. The yield three point four six percent, and 0:19:55.480 --> 0:19:58.080 the yield on the two year right now three point 0:19:58.119 --> 0:20:08.120 eight nine percent. Your list to Bloomberg Daybreak, Bloomberg eleven 0:20:08.200 --> 0:20:10.919 three oh weather, sunshine, highs near eighty today, We'll get 0:20:11.000 --> 0:20:14.040 up to around eighty tomorrow as well, some afternoon clouds 0:20:14.080 --> 0:20:17.000 on an otherwise sunny Sunday with highest close to ninety 0:20:17.160 --> 0:20:26.280 right now fifty eight degrees in Central Park. Broadcasting live 0:20:26.440 --> 0:20:30.399 from the Bloomberg Interactive Broker Studio in New York. Bloomberg 0:20:30.400 --> 0:20:33.800 eloving three on to Washington, d C, Bloomberg nine one 0:20:33.880 --> 0:20:37.119 to Boston, Bloomberg one O six one to San Francisco, 0:20:37.200 --> 0:20:40.640 Bloomberg nine six to the country, Sirius XM chto one 0:20:40.720 --> 0:20:43.840 nineteen and around the globe the Bloomberg Business apt in 0:20:43.920 --> 0:20:53.760 Bloomberg Radio dot com. This is Bloomberg Daybreak. It's six 0:20:53.800 --> 0:20:56.320 thirty on Wall Street. Good morning. I'm Nathan Hagar and 0:20:56.320 --> 0:20:59.200 I'm Karen Moscow. Here just about three hours away from 0:20:59.200 --> 0:21:01.240 the open of US trading. Time for the five things 0:21:01.440 --> 0:21:03.560 you need to know to start your day, Brought to 0:21:03.640 --> 0:21:07.080 you by I v k R Investment Advisors switched to 0:21:07.200 --> 0:21:11.879 Interactive Brokers for lowest cost global trading and turnkey custody solutions, 0:21:11.880 --> 0:21:14.320 no ticket charges and no conflicts of your interests at 0:21:14.320 --> 0:21:16.720 i v k R dot com slash r I A 0:21:17.600 --> 0:21:20.840 up First be A stock slide is deepening as we 0:21:20.880 --> 0:21:23.280 close out one of the worst trading weeks since June. 0:21:23.800 --> 0:21:28.200 SNP futures are lower down thirty five points, and Lisa Ericson, 0:21:28.280 --> 0:21:31.240 had of public markets with US Bank Wealth Management, says 0:21:31.280 --> 0:21:34.440 that choppiness is likely to continue. We've got the stock 0:21:34.480 --> 0:21:36.840 market and what I would call no man's land, and 0:21:36.880 --> 0:21:39.560 it's really because we are in a horse race to 0:21:39.640 --> 0:21:43.320 see how quickly inflation can come down and to what level. 0:21:43.720 --> 0:21:46.360 Lisa Ericson with US Bank says she expects the FED 0:21:46.400 --> 0:21:50.040 to keep tightening until inflation slows. Meantime, we get September 0:21:50.080 --> 0:21:53.040 sentiment numbers from the University of Michigan At ten am 0:21:53.040 --> 0:21:56.040 Wall Street time the inequity markets Karen, fed X is 0:21:56.080 --> 0:21:59.320 on the move lower. The shares are down twenty percent 0:21:59.520 --> 0:22:02.159 after the company announced preliminary results for the court of 0:22:02.160 --> 0:22:06.119