WEBVTT - Bloomberg Daybreak: August 29, 2022 - Hour 2 (Radio) 0:00:00.480 --> 0:00:03.160 Live from the Bloomberg and Directive Burger Studios. This is 0:00:03.160 --> 0:00:06.800 Bloomberg day Break for Monday, August twenty nine two. Coming 0:00:06.880 --> 0:00:10.760 up this hour, Hawkish Federal Reserve continues to weigh on markets. 0:00:10.800 --> 0:00:13.240 Global stock start the week at a one month low. 0:00:13.480 --> 0:00:16.440 The yield on two year treasuries hit a fifteen year high. 0:00:16.560 --> 0:00:19.680 Congress ways in with Elizabeth Moren saying the Fed will 0:00:19.720 --> 0:00:22.840 tip the economy into recession. And jobs are in focus 0:00:22.840 --> 0:00:26.040 as Wall Street braces for Friday's payrolls report. NASA's on 0:00:26.160 --> 0:00:29.160 Man Artemis one space capsule is expected to blast off 0:00:29.200 --> 0:00:32.120 to the moon. Plus u N Nuclear Watchdog monitors are 0:00:32.159 --> 0:00:35.320 on their way to Ukraine's power plant. Michael bar More ahead, 0:00:35.479 --> 0:00:37.880 I'm John Stashower and sports The Mets and the Yankees lost. 0:00:37.880 --> 0:00:40.360 The Jets beat the Giants. Rory McIlroy won the golf 0:00:40.440 --> 0:00:45.360 in the US Open begins today. That's all s Trady 0:00:45.400 --> 0:00:49.320 Ahead on Bloomberg Daybreak on Bloomberg Eliving Free on New York, 0:00:49.520 --> 0:00:54.160 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.480 --> 0:00:59.200 Bloomberg nine sixty, San Francisco, Syrius XM one nineteen and 0:00:59.280 --> 0:01:02.040 around the world. Old on Bloomberg Radio dot com and 0:01:02.200 --> 0:01:08.759 via the Bloomberg Business app. Good morning, I'm Nathan Hagar 0:01:09.319 --> 0:01:12.440 and I'm Karen Moscow. US dot Indix futures are lower 0:01:12.520 --> 0:01:14.440 this morning. We are coming up to six oh one 0:01:14.440 --> 0:01:16.440 on Wall Street, and we check the markets every fifteen 0:01:16.440 --> 0:01:19.000 minutes throughout the trading day. On Bloomberg s and P 0:01:19.240 --> 0:01:21.880 futures down about thirty six points this morning. Down features 0:01:21.920 --> 0:01:24.800 down two D fifty three and NASDACK futures down one 0:01:25.240 --> 0:01:28.759 thirties seven. Ten year Treasury down nineteen thirty seconds. Yeld 0:01:28.760 --> 0:01:31.399 three point one one percent, and they yield on the 0:01:31.440 --> 0:01:34.880 two year at three point four or five percent. Nathan, Karen, 0:01:34.920 --> 0:01:37.520 we're still feeling the impact of a hawk is J. Powell. 0:01:37.600 --> 0:01:40.040 This morning, global stocks are at a one month low. 0:01:40.080 --> 0:01:41.760 The last time we saw the yield on the two 0:01:41.880 --> 0:01:45.440 year treasury this level was two thousand seven. This morning 0:01:45.480 --> 0:01:48.360 slump follows the worst day for US stocks since June. 0:01:49.320 --> 0:01:51.880 The major index has all fell at least three percent, 0:01:51.960 --> 0:01:55.360 with the NASTAC plunging almost four percent. The catalyst for 0:01:55.360 --> 0:01:58.400 the sell off Chairman Powell signaling interest rates will stay 0:01:58.480 --> 0:02:01.880 higher for some time. Trina l Senior economist and Moodies 0:02:01.920 --> 0:02:05.360 Analytics says the FED shares comments have broad implications. It 0:02:05.480 --> 0:02:08.000 makes sense to say that US recession odds have also 0:02:08.160 --> 0:02:11.280 increased because that lays a sharp focus on trying to 0:02:11.360 --> 0:02:14.679 bring down inflation is really the priority of the FED 0:02:14.720 --> 0:02:17.080 at this point, and so as a consequence of that, 0:02:17.120 --> 0:02:20.040 I mean, domestic demand just really has to to come down. 0:02:20.200 --> 0:02:22.840 Katrina L with Moody's Analytics says the FED is also 0:02:22.919 --> 0:02:25.760 uncomfortable with the current tightness in the labor market. One 0:02:25.800 --> 0:02:28.720 point to trillion dollars in market value was wiped out 0:02:28.760 --> 0:02:31.640 on Friday. Well, Nathan, A strong message by j. Powell 0:02:31.720 --> 0:02:34.320 and the Fed last week has some on Capitol Hill 0:02:34.400 --> 0:02:37.520 pushing back. Senator Elizabeth Moore and says she's worried the 0:02:37.560 --> 0:02:40.800 central Bank will tip the US economy into recession. Do 0:02:40.840 --> 0:02:45.920 you know what's worth than high prices and a strong economy. 0:02:46.320 --> 0:02:49.800 It is high prices and millions of people out of work. 0:02:50.120 --> 0:02:53.240 I'm very worried that the FED is going to tip 0:02:53.280 --> 0:02:57.360 this economy into recession. Senator Elizabeth Wore Intel CNN she 0:02:57.440 --> 0:03:01.360 does not believe higher interest rates will curb current inflationary pressures. 0:03:01.840 --> 0:03:04.360 J Palen the FED get another key economic reports to 0:03:04.360 --> 0:03:07.359 evaluate this week, Karen. On Friday, we see the August 0:03:07.440 --> 0:03:10.480 jobs report here with the preview is Bloomberg City tell 0:03:10.560 --> 0:03:14.359 Judas economists at US payroll growth moderated after scoring a 0:03:14.440 --> 0:03:17.639 July gain in more than a half million. Technology firms 0:03:17.639 --> 0:03:21.240 have been trimming payrolls and freezing hiring, but job openings 0:03:21.240 --> 0:03:24.760 continue at historic kis. The US unemployment rate is also 0:03:24.800 --> 0:03:27.680 one of the lowest in decades. More numbers. This one's 0:03:27.720 --> 0:03:30.560 conference board. Consumer confidence and dex couldn't prove thanks to 0:03:30.600 --> 0:03:33.680 lower gasoline prices. While I s M data may show 0:03:33.840 --> 0:03:37.960 modest factory gains, they eat Judas Bloomberg Day break, right, Fanny, 0:03:38.000 --> 0:03:39.960 thank you, while the Wall Street sell off is spreading 0:03:39.960 --> 0:03:42.840 overseas this Monday morning, and we begin our team coverage 0:03:42.840 --> 0:03:46.000 at the Bloomberg's Danny Berger, who joins us live from London. Danny, 0:03:46.040 --> 0:03:49.480 good morning, Good morning, Karen. Yeah, European stocks continue to 0:03:49.480 --> 0:03:52.040 be under pressure. Forget another trading day down more than 0:03:52.120 --> 0:03:55.280 one percent, not two dissimilar from what we're seeing from 0:03:55.440 --> 0:03:59.640 US equities. It's just continuing this risk asset pain as 0:03:59.680 --> 0:04:02.240 we just a fetcher j Powell who says that they 0:04:02.280 --> 0:04:05.800 are going to continue to have that restrictive policy stands 0:04:05.800 --> 0:04:09.600 for some time. Perhaps stocks didn't expect that, maybe bonds did. 0:04:09.640 --> 0:04:12.120 Maybe that's why there was less movement on Friday. But 0:04:12.200 --> 0:04:14.920 today we are seeing stocks starting to join that sell off. 0:04:14.960 --> 0:04:17.800 Two year yields those are hired by about seven basis points. 0:04:18.240 --> 0:04:21.640 The hyacinths two thousand seven also under pressure some of 0:04:21.680 --> 0:04:25.120 the currencies, with a very strong dollar Euro dollar that's 0:04:25.160 --> 0:04:27.640 blow parody. The pound that's down half a percent. So 0:04:27.800 --> 0:04:30.840 really that desire for havens means the only thing really 0:04:30.839 --> 0:04:34.120 buying today is the dollar. The one spot perhaps where 0:04:34.160 --> 0:04:37.920 there isn't pain. UK markets. UK stocks are closed, with 0:04:38.040 --> 0:04:41.279 a bank holiday taking place throughout the country today. Live 0:04:41.320 --> 0:04:44.239 in London, I'm Danny Burger, Bloomberg day Break. All right, Danny, 0:04:44.320 --> 0:04:46.960 thank you. Stocks also fell in Asia over night. Japan's 0:04:47.000 --> 0:04:49.160 NIEK led declines with a drop of more than two 0:04:49.160 --> 0:04:51.520 and a half percent. We get the recap from Bloomberg's 0:04:51.560 --> 0:04:54.560 Juliette Sally in Singapore. Good morning, Juliet, Good morning, Nathan 0:04:54.560 --> 0:04:56.520 and Karen. The m s c I Asia Pacific Index 0:04:56.600 --> 0:04:58.840 lumped as much as two point three percent, the most 0:04:58.880 --> 0:05:03.240 since June, with a financials and industrials the worst performing sectors. 0:05:03.440 --> 0:05:06.560 Key equity gauges in Japan and Taiwan led regional losses, 0:05:06.600 --> 0:05:09.480 sliding close to three percent each. The p BOC said 0:05:09.520 --> 0:05:12.040 the on show You unfixed stronger for a fourth session, 0:05:12.360 --> 0:05:14.440 as the off shore slid through six point nine to 0:05:14.440 --> 0:05:16.560 the dollar for the first time in two years, and 0:05:16.640 --> 0:05:19.000 South Korea is one fell the most in eleven weeks 0:05:19.000 --> 0:05:21.599 to hold it its lowest level since April two thousand 0:05:21.680 --> 0:05:25.520 and nine. In Singapore. Juliet Sally Bloomberg daybreak Right, Juliette, 0:05:25.520 --> 0:05:28.400 thank you are staying. In Asia, economists are turning more 0:05:28.480 --> 0:05:32.080 bearish on China. According to Bloomberg's latest quarterly survey, China's 0:05:32.080 --> 0:05:34.160 economy is now projected to grow just three and a 0:05:34.200 --> 0:05:37.120 half percent this year. That's down from a previous forecast 0:05:37.120 --> 0:05:40.600 of three point nine percent. Economists see lingering risks as 0:05:40.600 --> 0:05:44.320 turmoil and China's property marketing COVID outbreaks persist. And one 0:05:44.320 --> 0:05:46.679 other note out of Asia this morning, Karen. Despite China 0:05:46.760 --> 0:05:49.240 and the US reaching a preliminary deal to resolve a 0:05:49.320 --> 0:05:52.680 standoff over audits, Goldman Sex says markets are still pricing 0:05:52.680 --> 0:05:56.160 in a fifty percent chance of Chinese companies being delisted 0:05:56.200 --> 0:05:59.279 from US exchanges. Goldman says the risk of delisting has 0:05:59.320 --> 0:06:01.560 come down, but more still needs to be done as 0:06:01.600 --> 0:06:05.279 execution risk remains. While there is uncertainty about the future 0:06:05.320 --> 0:06:08.520 of Chinese stocks in the US, Nathan meme stocks are 0:06:08.560 --> 0:06:10.960 here to stay, according to our latest survey we get 0:06:10.960 --> 0:06:14.599 the details from Bloomberg's Jeff Bellinger. Wall Street says stocks 0:06:14.640 --> 0:06:18.280 like Game Stop, AMC Entertainment, and bed Beth and Beyond 0:06:18.320 --> 0:06:21.240 are here to stay. Nearly two thirds of the more 0:06:21.279 --> 0:06:24.320 than five hundred respondents in the latest M Live Pulse 0:06:24.360 --> 0:06:27.560 survey expect some version of the meme stock mania to 0:06:27.680 --> 0:06:31.880 stick around. Speculating in meme stocks has been painful this year. 0:06:31.960 --> 0:06:35.400 A basket of thirty seven retail trader favorites tracked by 0:06:35.400 --> 0:06:39.680 Bloomberg is down nearly forty percent in twenty two. The 0:06:39.839 --> 0:06:42.520 M Live Pulse survey found that while the meme stock 0:06:42.560 --> 0:06:46.320 phenomenon is likely to stick around, sixty nine percent said 0:06:46.400 --> 0:06:48.960 it is unlikely to see the trading volumes that did 0:06:49.080 --> 0:06:53.080 during its January twenty twenty one high, nor are such 0:06:53.120 --> 0:06:55.440 stocks seen as a good bet for the remainder of 0:06:55.480 --> 0:06:59.200 the year. Jeff Bellinger Bloomberg daybreak. Thanks Jeff. We're seeing 0:06:59.200 --> 0:07:02.560 bitcoin fall stocks lower this morning, the digital tokens trading 0:07:02.560 --> 0:07:06.520 below twenty thousand as concerns about Fed policy way on sentiment. 0:07:06.600 --> 0:07:10.040 Before this weekend, Bitcoin hadn't been below twenty thousand since July. 0:07:11.000 --> 0:07:14.360 It had even crossed above twenty five thousand earlier this month. 0:07:14.800 --> 0:07:16.840 Straight ahead, we have your latest local headlines and a 0:07:16.920 --> 0:07:24.000 check of sports. This is Bloomberg six o seven on 0:07:24.000 --> 0:07:26.520 Wall Street, seventy five degrees in Central Park. Still got 0:07:26.560 --> 0:07:29.760 that closure on the westbound cross Bronx at White Plains Road. 0:07:29.840 --> 0:07:32.840 Details coming up in traffic. First Michael Barr with what 0:07:32.920 --> 0:07:35.080 else is going on in New York and around the world. Michael, 0:07:35.120 --> 0:07:37.760 thank you very much. Nathan. A few leak interrupted NASA's 0:07:37.880 --> 0:07:41.760 launch countdown for its new Moon rocket early this morning. 0:07:41.840 --> 0:07:44.080 Were you appearing in the same place and saw a 0:07:44.120 --> 0:07:46.440 see pitch during a dress rehearsal back in the spring? 0:07:47.000 --> 0:07:50.840 Launch controllers hold it the tanking operation, which already was 0:07:50.960 --> 0:07:54.760 running an hour late because of thunderstorms off shore, asked 0:07:54.760 --> 0:07:57.840 for the excitement over the mission. Taylor Leonard helped build 0:07:57.920 --> 0:08:00.680 part of the Moon rocket that will eventually of Americans 0:08:00.720 --> 0:08:03.000 back on the Moon. I'm very pumped. So I was 0:08:03.000 --> 0:08:05.040 actually a part of the test team that tested the 0:08:05.080 --> 0:08:07.960 functionality of the rocketed a be on it. So it's 0:08:08.000 --> 0:08:11.760 super exciting. Um like seeing your work right here. You know, 0:08:11.960 --> 0:08:15.720 it's pretty cool, Nassas Taylor Leonard. The plan is for O'rian, 0:08:15.880 --> 0:08:18.400 with three test dummies on board, to loop around the 0:08:18.400 --> 0:08:20.760 Moon and come back to Earth. The head of the 0:08:20.760 --> 0:08:24.360 International Atomic Energy Agency says that the u N Nuclear 0:08:24.400 --> 0:08:27.320 watch dogs long awaited expert mission to the power plan 0:08:27.400 --> 0:08:31.360 in Ukraine is now on its way. Russia and Ukraine 0:08:31.400 --> 0:08:34.240 have traded claims of strikes at or near the plant 0:08:34.280 --> 0:08:38.560 in recent days, intensifying fears that the fighting could cause 0:08:38.640 --> 0:08:42.120 a massive radiation leak. It was a violent weekend in 0:08:42.120 --> 0:08:44.559 New York City after more than a dozen people were shot, 0:08:44.640 --> 0:08:48.040 several fatally. That includes a shooting at the board walk 0:08:48.080 --> 0:08:51.080 on Coney Island that left one person dead and four 0:08:51.120 --> 0:08:54.679 others hurt. Police in Bend, Oregon confirmed three people are 0:08:54.679 --> 0:08:57.320 dead following a shooting at the grocery store. The meal 0:08:57.400 --> 0:09:00.600 shooter killed two people at a Costco. All officers then 0:09:00.760 --> 0:09:04.040 entered the store and found the suspected shooter dead. Bend 0:09:04.160 --> 0:09:07.320 Police chief Mike Rantz says the suspect was armed with 0:09:07.400 --> 0:09:10.280 an a R fifteen style rifle. We have officers from 0:09:10.280 --> 0:09:12.640 every agency in central Oregon, as well as the FBI, 0:09:12.960 --> 0:09:16.400 Ben Fire and Rescue and other agencies on scene and assistant. 0:09:16.440 --> 0:09:19.000 We are very precisive of this home Ben Police Chief 0:09:19.040 --> 0:09:22.080 Mike Krantz, send up a Georgia leader, Chuck Schumer, welcome 0:09:22.120 --> 0:09:25.959 President Joe Biden's federal student Loan Forgiveness Plan. Schumer urged 0:09:26.040 --> 0:09:29.440 loan processors to prepare for a wave of inquiries about 0:09:29.440 --> 0:09:32.920 the program. Fall on all of the loan processors to 0:09:33.000 --> 0:09:35.560 be at the ready for the wave of calls that's 0:09:35.600 --> 0:09:38.760 starting to come in and let students know how they 0:09:38.800 --> 0:09:42.200 apply and what their rights are sending to Schumer of 0:09:42.200 --> 0:09:44.720 New York says, college used to be a ladder up, 0:09:45.120 --> 0:09:47.920 but student dead has become an anchor around the ankles 0:09:48.000 --> 0:09:50.959 of our students. Global News twenty four hours a day 0:09:51.200 --> 0:09:53.600 on air and on Bloomberg Quicktake power by more than 0:09:53.600 --> 0:09:57.160 the journalist and analysts in more than a hundred twenty countries. 0:09:57.160 --> 0:10:04.360 I'm Michael Barr. This is Bloomberg. Nathan. Thanks Michael. Almost 0:10:04.400 --> 0:10:06.360 six cent on Wall Streets. Time for the Bloomberg Sports 0:10:06.400 --> 0:10:08.720 Update with John shot all right, Nathan. When the Yankees 0:10:08.720 --> 0:10:12.000 were slumping, going three and fourteen, they were not hitting, 0:10:12.000 --> 0:10:13.360 and then they won five in a row with those 0:10:13.360 --> 0:10:16.000 offense of woe was resurfaced and open only one hit 0:10:16.120 --> 0:10:19.319 in in eleven Aning lost Saturday, only four singles. Yesterday, 0:10:19.679 --> 0:10:21.760 the A's won four to one. The Yanks visit the 0:10:21.760 --> 0:10:23.960 Angels tonight. Mets man is only three hits, all of 0:10:23.960 --> 0:10:27.199 them singles against air Man Marquez and two relievers. Colorado 0:10:27.280 --> 0:10:29.360 scored in the seventh and he love Max jers or in. 0:10:29.360 --> 0:10:31.920 The Rockies won one nothing the salvage of game in 0:10:31.960 --> 0:10:34.439 the series, Atlanta lost in St. Louis. The Mets remained 0:10:34.440 --> 0:10:37.360 three games ahead. The annual Jets Giants preseason game not 0:10:37.480 --> 0:10:40.440 decide until the final minute of Chris Straveler touchdown passed 0:10:40.440 --> 0:10:43.040 to Calvin Jackson in the thirty one to twenties seven 0:10:43.400 --> 0:10:45.360 victory for the Jets, who went three and oh in 0:10:45.400 --> 0:10:47.240 the preseason Giants for two and one. They did not 0:10:47.320 --> 0:10:50.040 use Daniel Jones. They started Tyrod Taylor and then he 0:10:50.080 --> 0:10:52.880 heard his back. It's not believed to be a serious injury. 0:10:52.920 --> 0:10:55.079 Golf season ended with a Torch Championship in Atlanta and 0:10:55.160 --> 0:10:58.319 a big comeback by Rory McElroy. Back on Thursday, he 0:10:58.600 --> 0:11:01.199 was ten shots behind Scott the Jefe only trailed by 0:11:01.240 --> 0:11:04.240 six when the final round began, mat for Roy one 0:11:04.480 --> 0:11:06.120 by one. I was really giving myself much of a 0:11:06.200 --> 0:11:10.000 John's tin off and the fourth roned. I thought, you know, 0:11:10.200 --> 0:11:12.400 silver lining was I was playing in the last group 0:11:12.440 --> 0:11:14.520 so I could at least keep an eye on what 0:11:14.600 --> 0:11:17.959 he was doing if if things didn't quite work out 0:11:18.040 --> 0:11:20.960 for him, and um, you know, thankfully I was in 0:11:21.000 --> 0:11:23.480 that last group because you know, I was able to 0:11:23.520 --> 0:11:25.920 put some pressure on him early on. Chef we struggled 0:11:25.920 --> 0:11:29.000 with seventy three at Rory's third FedEx Cup title, and 0:11:29.040 --> 0:11:31.920 that comes with the first place prize eighteen billion dollars. 0:11:32.080 --> 0:11:35.600 The US Open Tennis begins today Flushing Meadows. Serena Williams 0:11:35.600 --> 0:11:39.000 plays tennight. Can she beat Donka covinage or will this 0:11:39.120 --> 0:11:41.880 do the final match with Sereno's career, John Stay were 0:11:42.000 --> 0:11:46.480 Bloomberg Sports Okay, John thanks SMP futures down thirty six 0:11:46.559 --> 0:11:50.480 points down, Futures down two D sixty two, NASAC futures 0:11:50.679 --> 0:11:54.200 down A hundred thirty seven points, the tenure Treasury down 0:11:54.200 --> 0:11:57.439 twenty thirty seconds, yield three point one one percent. Yield 0:11:57.480 --> 0:11:59.560 on the two year now close to three point four 0:11:59.720 --> 0:12:07.960 six x per cent. You're listening to Bloomberg Daybreak Bloomberg 0:12:07.960 --> 0:12:10.120 eleven three oh weather morning clouds give way to sunshine 0:12:10.120 --> 0:12:12.520 and upper eighties today, mostly sunny. Tomorrow of the late 0:12:12.559 --> 0:12:15.640 they shower, possible upper eighties. Who has some storms tomorrow night, 0:12:15.679 --> 0:12:18.080 but mostly sunny again Wednesday with hides in the upper 0:12:18.120 --> 0:12:23.720 eighties Right now seventy five degrees. Markets, headlines and breaking 0:12:23.760 --> 0:12:26.640 news twenty four hours a day at Bloomberg dot Com, 0:12:26.760 --> 0:12:30.319 the Bloomberg Business at and at Bloomberg Quick Tape. He's 0:12:30.360 --> 0:12:39.360 a Bloomberg Business Flash and I'm Karen Moscow. Bolt In 0:12:39.400 --> 0:12:41.680 Europe are leading a global sell off that lifted the 0:12:41.679 --> 0:12:44.079 two year treasury yield to levels last scenes in two 0:12:44.160 --> 0:12:47.400 thousands seven, as European central bank policy makers join their 0:12:47.400 --> 0:12:51.480 Federal Reserve counterparts and signaling aggressive tightening songs are sinking 0:12:51.559 --> 0:12:54.319 along with US futures and dollars climbing. We checked the 0:12:54.360 --> 0:12:57.560 markets every fifteen minutes throughout the trading day on Bloomberg 0:12:57.640 --> 0:13:00.360 Right Now, s and p futures are down of out 0:13:00.360 --> 0:13:03.719 thirty nine points down. Futures are down two hundred seventy four, 0:13:03.840 --> 0:13:06.439 nastack futures down one d forty four, and the decks 0:13:06.440 --> 0:13:09.560 in Germany's down one point four percent ten. Your treasury 0:13:09.760 --> 0:13:12.200 is down twenty thirty seconds. You'll three point one one 0:13:12.200 --> 0:13:14.880 percent yield on the two year three point four or 0:13:14.880 --> 0:13:17.800 five percent nine max Screwed oil is up seven tenths 0:13:17.800 --> 0:13:19.800 per cent or sixty six cents, and ninety three dollars 0:13:19.840 --> 0:13:22.240 seventy two cents of arrol comex s go down night 0:13:22.320 --> 0:13:24.960 tenths per cent or fifteen dollars forty cents at seventeen 0:13:25.000 --> 0:13:28.120 thirty four forty announced. The euro is at point nine 0:13:28.200 --> 0:13:30.640 nine six seven against the dollar, British bound one point 0:13:30.640 --> 0:13:33.000 one six eight two, and the yet at one thirty 0:13:33.040 --> 0:13:37.040 eight point five to the Bitcoin this morning is down 0:13:37.120 --> 0:13:39.760 seven tenths of a percent in nineteen thousand, eight hundred 0:13:39.840 --> 0:13:42.800 thirty dollars. That's a bloomberg business flash. Now here's Michael 0:13:42.800 --> 0:13:44.920 Barr with more on what's going on around the world. 0:13:45.000 --> 0:13:47.960 Michael Karen, thank you very much. The Artemis Moon rocket 0:13:48.040 --> 0:13:51.200 launch is open to proceed toward a morning lifts off 0:13:51.200 --> 0:13:54.040 from the Kennedy Space Center in Florida. The goal is 0:13:54.080 --> 0:13:57.000 for the Orion capsule, with three test dummies on board, 0:13:57.000 --> 0:13:59.439 to loop around the Moon and come back to Earth. 0:14:00.080 --> 0:14:02.959 Top intelligence officials are working with the Justice Department to 0:14:03.040 --> 0:14:06.199 conduct a quote risk assessment to see if former President 0:14:06.200 --> 0:14:10.280 Trump's handling of classified documents founded as Mara Lago Home 0:14:10.640 --> 0:14:14.640 compromise national security. In baseball, the Yankees lost to the 0:14:14.679 --> 0:14:18.080 A's for one. The Mats lost along with the Red Sox, 0:14:18.120 --> 0:14:22.119 Orioles and Giants the Nationals one. In the final preseason 0:14:22.240 --> 0:14:26.560 NFL game, the Jets beat the Giants seven. Tennis, the 0:14:26.680 --> 0:14:29.800 US Open begins today. Global News twenty four hours a 0:14:29.880 --> 0:14:32.840 day on air and on Bloomberg Quick Take, powered by 0:14:32.840 --> 0:14:35.560 more than twenty seven under journalist and analysts more than 0:14:35.560 --> 0:14:39.360 a hundred, twenty countries high Michael Barr And this is Bloomberg, Nathan, 0:14:40.320 --> 0:14:43.640 this is the Big Take, the best of Bloomberg's in 0:14:43.720 --> 0:14:46.600 depth original reporting from around the globe. This is a 0:14:46.680 --> 0:14:51.200 really fast moving story that's caused off to outrage among investors. 0:14:51.240 --> 0:14:53.920 This is so fascinating. The market shutdown in a way 0:14:54.000 --> 0:14:57.080 it's never done before. That's gonna have consequences for years 0:14:57.080 --> 0:15:02.560 to come. The Day Take on Bloomberg Rate six twenty 0:15:02.560 --> 0:15:04.960 on Wall Street Live from the Bloomberg Interacted Brooker Studios. 0:15:05.000 --> 0:15:07.520 This is Bloomberg day Break. Good morning. I'm Nathan Hagar 0:15:07.680 --> 0:15:09.920 with a look at our big take this morning on 0:15:10.120 --> 0:15:14.240 central banks around the world showing a determination to fight 0:15:14.320 --> 0:15:17.560 inflation through higher interest rates, even as we're starting to 0:15:17.600 --> 0:15:20.920 see some signs that the price pressures around the world 0:15:20.920 --> 0:15:23.960 are at least beginning to cool off. Joining us now, 0:15:24.000 --> 0:15:26.280 one of the authors of today's Big take, Bloomberg News 0:15:26.360 --> 0:15:30.160 Chief Asia Economics correspondent and the current and a good morning. 0:15:30.160 --> 0:15:32.240 We're seeing a play out in the markets that the 0:15:32.600 --> 0:15:35.680 that they're starting to get the message here from FED 0:15:35.760 --> 0:15:38.960 Chairman Powell and the rest of the central bankers from 0:15:39.040 --> 0:15:42.120 Jackson Hole last week that their fight against inflation is 0:15:42.160 --> 0:15:45.760 far from over. You start from over there. Two things 0:15:45.760 --> 0:15:48.960 are going on here, Nates and economists are looking at 0:15:48.960 --> 0:15:51.440 a turn in commodity markets, and what they're seeing there 0:15:51.560 --> 0:15:55.200 is all the prices obviously coming off, their high prices 0:15:55.200 --> 0:15:58.200 for other key commodities they like weet and copper coming back. 0:15:58.280 --> 0:16:01.400 Food prices in general actually came back a lot over 0:16:01.480 --> 0:16:05.240 July and thinking that there that perhaps the commodity market 0:16:05.280 --> 0:16:08.880 now is signaling maybe a peak in headline inflation. Put 0:16:08.960 --> 0:16:13.200 your point, nobody is expecting that those prices are a 0:16:13.200 --> 0:16:15.400 few people expecting those prices to come back to where 0:16:15.440 --> 0:16:18.840 they would be, say typically around central banks targets of 0:16:18.840 --> 0:16:21.760 two or three percent, any time soon. So it's a 0:16:21.760 --> 0:16:25.480 case of maybe we're seeing a turning point for headline inflation, 0:16:25.760 --> 0:16:28.120 but nobody's nobody is thinking that the global price shock 0:16:28.240 --> 0:16:31.040 is over just yet. And that's why central banks are 0:16:31.040 --> 0:16:32.960 saying what they are saying, which they have to keep 0:16:33.000 --> 0:16:36.360 pushing a boring costs, keep putting a weight on broader 0:16:36.360 --> 0:16:38.240 demanding the economy is try and get in placements back 0:16:38.280 --> 0:16:41.080 to where it should be. So that speaks to the challenge, 0:16:41.120 --> 0:16:44.680 doesn't it that in a large way, central banks don't 0:16:44.760 --> 0:16:47.960 have a whole lot of control about what commodity prices do, 0:16:48.080 --> 0:16:52.800 what supply chains do. No, they don't need when we 0:16:52.840 --> 0:16:56.640 break down this this breakdown is inflation. Let's just say 0:16:56.720 --> 0:16:58.920 that the world is at a turning point for peaking 0:16:58.920 --> 0:17:01.960 headline inflation. Argument take you only have to look around 0:17:01.960 --> 0:17:04.199 the world where you see ongoing pockets of stress and 0:17:04.200 --> 0:17:07.760 for example, Europe's chronic energy crisis. There's no there's no 0:17:07.920 --> 0:17:11.480 let up and energy costs there, and obviously rising interest 0:17:11.520 --> 0:17:13.560 rates can't do any to bring down the cost of 0:17:13.720 --> 0:17:16.000 gas or other sources of energy of both. This is 0:17:16.040 --> 0:17:18.359 what central bankers keep saying. They can't do that, but 0:17:18.440 --> 0:17:21.080 they can try and bring down the rest of demanding 0:17:21.080 --> 0:17:24.240 the broader comming. By doing that, you bring off price pressures, 0:17:24.280 --> 0:17:26.639 you know, across the board, so speak. And that's what 0:17:27.400 --> 0:17:29.040 that's what they're trying to do, and that's what ultimately 0:17:29.040 --> 0:17:30.919 they will get their inflations back down to target. But 0:17:30.960 --> 0:17:34.600 as you say, it is a multilar story. And I 0:17:34.640 --> 0:17:36.720 think one of the other areas that people keeping a 0:17:36.800 --> 0:17:40.160 very close silent what happens in plomate markets around the world, 0:17:40.200 --> 0:17:44.600 probably speaking, jobs markets are holding up their labor shortages 0:17:44.640 --> 0:17:47.000 in several majored lout economies. So I think when you 0:17:47.040 --> 0:17:49.119 see data points such as this week's US jobs that 0:17:49.280 --> 0:17:52.000 on Friday, these are key metrics when it comes to 0:17:52.440 --> 0:17:54.800 how we have a proper turning point in inflation and 0:17:54.840 --> 0:17:57.800 then as such, what will that mean for boring costs 0:17:57.840 --> 0:17:59.720 in a few months from now. Yeah, that was a 0:17:59.720 --> 0:18:03.240 big part of the Chairman Pal's short but sharp message 0:18:03.240 --> 0:18:05.400 at Jackson Hole last week. He did put a lot 0:18:05.440 --> 0:18:08.920 of focus on the labor market. What's the concern among 0:18:09.240 --> 0:18:13.439 the FED officials that we could be in the midst 0:18:13.440 --> 0:18:16.040 of a wage price spiral. That's part of this inflation 0:18:16.119 --> 0:18:20.960 story because because they want to anger inflation expectations, a 0:18:21.040 --> 0:18:23.600 central bankers aren't really fighting the prices that we're paying 0:18:23.600 --> 0:18:26.359 here now today. It's all that medium term expectations and 0:18:26.400 --> 0:18:29.600 a longer term expectations and longer consumers for where prices 0:18:29.600 --> 0:18:31.639 are going in. A big part of that is, of 0:18:31.680 --> 0:18:34.119 course wage demands. And if you get into a cycle 0:18:34.600 --> 0:18:37.320 or wage price spirals, or by every sector and every 0:18:37.320 --> 0:18:39.800 employee in every company to look at the harder wages, 0:18:40.080 --> 0:18:42.960 that's where you starts to see these sties inflations might 0:18:43.040 --> 0:18:46.000 get entrenched, and that's put in the central banquets are 0:18:46.000 --> 0:18:48.880 trying to get ahead of. Now you mentioned the US, 0:18:49.000 --> 0:18:51.560 we will see the job that on Friday. I think 0:18:51.560 --> 0:18:53.600 if that if that comes in on the strong side, 0:18:53.600 --> 0:18:56.199 it will certainly, you know, add the idea that the 0:18:56.240 --> 0:18:57.920 FED is a lot more work to do. But if does, 0:18:58.000 --> 0:19:00.359 if it comes in on the softer side, might be 0:19:00.440 --> 0:19:02.399 more that might be a bigger news story because it 0:19:02.480 --> 0:19:04.960 might suggested a broader economy to come off, which is 0:19:04.960 --> 0:19:07.520 what the decided once. It's not just the US, by 0:19:07.520 --> 0:19:10.040 the way, central bankers around the warlock complaining, but labor 0:19:10.040 --> 0:19:14.399 shortages in New Zealand central banker everything described a chronic 0:19:14.480 --> 0:19:16.840 labor shorlder which which is of course putting up with 0:19:16.960 --> 0:19:20.119 pressure on prices. And as I say above, all of 0:19:20.520 --> 0:19:24.760 central bankers want to keep inflation expectations anchored. Now, thanks 0:19:24.840 --> 0:19:27.520 for this said the great having on with us this morning, 0:19:27.600 --> 0:19:32.040 and the current chief Asia Economics correspondent for Bloomberg News, 0:19:32.080 --> 0:19:34.680 one of the authors of this morning's Bloomberg Big Take 0:19:34.760 --> 0:19:38.720 story breaking inflation fever is no relief for central bank 0:19:38.760 --> 0:19:42.440 ankst You can read more on Bloomberg dot com, Slash 0:19:42.480 --> 0:19:46.639 Big Take or NI Big Take go on the Bloomberg terminal. 0:19:47.160 --> 0:19:50.840 SMP futures showing some banks this morning down thirty six points, 0:19:50.840 --> 0:19:53.880 STOW futures down two hundred sixty two. Nasdaq futures are 0:19:53.880 --> 0:19:57.520 lower by a hundred thirty six points. Two year Treasury 0:19:57.600 --> 0:20:01.840 yield right now three point four five percent of fifteen 0:20:01.960 --> 0:20:08.520 year high. This is Bloomberg. Bloomberg eleventh, three oh weather 0:20:08.600 --> 0:20:11.320 turning mostly sunny today with highs in the upper eighties. 0:20:11.359 --> 0:20:13.679 Chips for a late days shower on an otherwise mostly 0:20:13.720 --> 0:20:16.760 sunny Tuesday. Oper eighties once again will be sunny opper 0:20:16.760 --> 0:20:22.960 eighties for Wednesday. Right now seventy five degrees. Broadcasting live 0:20:23.119 --> 0:20:27.080 from the Bloomberg Interactive Broker's studio in New York. Bloomberg 0:20:27.119 --> 0:20:31.200 E Living freem to Washington, d C, Bloomberg to Boston, 0:20:31.280 --> 0:20:35.040 Bloomberg one oh six one to San Francisco, Bloomberg sixt 0:20:35.240 --> 0:20:38.000 to the Country, Sirius XM to one nine ten, and 0:20:38.119 --> 0:20:41.480 around the globe the Bloomberg Business app and Bloomberg Radio 0:20:41.600 --> 0:20:50.800 dot Com. This is Bloomberg Daybreak. It's six thirty on 0:20:50.840 --> 0:20:54.040 Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. 0:20:54.160 --> 0:20:56.160 We are just about three hours away from the open 0:20:56.200 --> 0:20:58.159 of US trading. Time for the five things that you 0:20:58.200 --> 0:21:00.320 need to notice start your day. Brought to you by 0:21:00.400 --> 0:21:04.840 Interactive Brokers. Interactive Brokers charges margin loan rates from two 0:21:04.840 --> 0:21:07.440 point three percent to three point a three percent. Their 0:21:07.480 --> 0:21:10.439 clients can also earn extra income by lending their fully 0:21:10.480 --> 0:21:13.399 paid shares of stock. Rates subject to change. Learn more 0:21:13.440 --> 0:21:17.120 at ibk R dot com slash compare. At first, we're 0:21:17.160 --> 0:21:19.600