WEBVTT - Bloomberg Daybreak: August 4, 2022 - Hour 2 (Radio) 0:00:01.560 --> 0:00:04.880 Live from the Bloomberg Interacted Berger Studios. This is Bloomberg, 0:00:04.960 --> 0:00:08.280 gave Break for a Thursday, August four, It's two coming up. 0:00:08.280 --> 0:00:11.080 The shower stocks entered the day near a two month high. 0:00:11.160 --> 0:00:13.440 The Bank of England forecast to raise rates by the 0:00:13.560 --> 0:00:15.760 most in more than a quarter of a century. The 0:00:15.840 --> 0:00:19.599 Senate overwhelmingly approached the addition of Finland and Sweden to NATO. 0:00:19.800 --> 0:00:23.239 Tesla holds a key shareholder meeting, and Walmart is the 0:00:23.320 --> 0:00:26.720 latest company to cut jobs. New York Mayor Adams freeze 0:00:26.760 --> 0:00:29.880 up a hundred million dollars for city schools. Plus the 0:00:29.960 --> 0:00:33.520 jury is deliberating the Alex Jones defamation case on Michael 0:00:33.560 --> 0:00:36.320 Bloomer or Ahead, I'm down stair, Shower and sports. Garrett 0:00:36.320 --> 0:00:38.400 Cole ropped up at the Yankee lost in Seattle. The 0:00:38.520 --> 0:00:40.640 Mets wan easily. They start a big series with it 0:00:40.760 --> 0:00:47.280 went tonight. That's all s tradyhead on Bloomberg, Daybreak on 0:00:47.400 --> 0:00:51.520 Bloomberg eleven, Free on New York, Bloomberg nine one, Washington 0:00:51.640 --> 0:00:55.280 d C Bloomberg one oh six one, Boston Bloomberg nine 0:00:55.320 --> 0:00:59.960 sixties and Francisco Sirius XAM one nineteen and around the world. 0:01:00.320 --> 0:01:03.600 Bloomberg Radio dot com and via the Bloomberg Business app. 0:01:07.480 --> 0:01:10.520 Good morning, I'm Nathan Hagar and I'm Karen Moscow and 0:01:10.640 --> 0:01:13.319 US futures are higher this morning. We're coming up to 0:01:13.319 --> 0:01:15.039 six o one on Wall Street. Have we checked the 0:01:15.040 --> 0:01:18.199 markets every fifteen minutes throughout the trading day on Bloomberg 0:01:18.280 --> 0:01:21.560 right now, WESTNP futures they're up about seven points down, 0:01:21.560 --> 0:01:24.479 futures up thirty one, and NASDAG futures up twenty six. 0:01:24.760 --> 0:01:27.600 The decks in Germany is up one percent. Tend your 0:01:27.640 --> 0:01:30.280 treasury down six thirties seconds. You on two point seven 0:01:30.319 --> 0:01:32.640 two percent, and they yield on the two year three 0:01:32.680 --> 0:01:36.480 point oh nine percent. Nathan Karen the SNP interns today's 0:01:36.520 --> 0:01:39.600 session near a two month high. The tech heavy NASDAC 0:01:39.680 --> 0:01:43.120 one indexes at its highest levels since early May. Corporate 0:01:43.120 --> 0:01:46.120 earnings and healthy economic data are helping to lift sentiment. 0:01:46.280 --> 0:01:48.960 We get more from Northern Trust Bank Chief investment Officer 0:01:49.040 --> 0:01:52.400 Katie Nixon. I think we came into this really with 0:01:52.600 --> 0:01:56.480 with such low sentiment, with such a negative positioning, that 0:01:56.520 --> 0:01:58.480 we were due for a nice bounce like we've seen 0:01:58.560 --> 0:02:00.720 last week and sorted into this week. But is it 0:02:00.840 --> 0:02:03.640 sustainable in the phase of a FED that appears to 0:02:03.680 --> 0:02:07.000 be hell bent on not stopping not stopping. Katie Nixon 0:02:07.040 --> 0:02:09.080 the Northern Trust says the FED may have to reverse 0:02:09.160 --> 0:02:13.520 course sooner than expected. That's because she says inflation is slowing. Meantime, 0:02:13.600 --> 0:02:17.239 Nathan the FED continues to talk tough on inflation. Minneapolis 0:02:17.280 --> 0:02:20.160 Spent President Deal cash Curry is the latest to say 0:02:20.200 --> 0:02:24.239 it's the top priority. We are laser focused on getting 0:02:24.240 --> 0:02:28.120 inflation down and um, you know, whether we are technically 0:02:28.120 --> 0:02:30.960 in recession right now or not, it doesn't change my 0:02:30.960 --> 0:02:34.040 analysis and focus on inflation and where inflation is likely 0:02:34.040 --> 0:02:36.400 going and that is going to be. That to me 0:02:36.520 --> 0:02:38.200 is what we have. My opinion is what we have 0:02:38.240 --> 0:02:40.960 to focus on right now. Neil cash car Is has 0:02:41.000 --> 0:02:44.200 a FED rate cut next year is quote a very 0:02:44.320 --> 0:02:48.680 unlikely scenario. Well. Monetary policies also in focus overseas, Karen Is. 0:02:48.680 --> 0:02:51.280 The Bank of England gets set to hike interest rates. 0:02:51.280 --> 0:02:53.440 In just about one hour, we get a preview from 0:02:53.440 --> 0:02:57.400 Bloomberg's Lizzie Burden in London. I'm England rate rise today 0:02:57.639 --> 0:03:00.760 is all but a done deal. The debate surrounds whether 0:03:00.800 --> 0:03:04.720 the UK Central Bank will is Bloomberg Economics expect hike 0:03:04.800 --> 0:03:06.959 by a half point for the first time in its 0:03:06.960 --> 0:03:11.200 independent history. The decision comes against the backdrop of inflation 0:03:11.280 --> 0:03:14.040 that's not only it's a new forty year high, but 0:03:14.160 --> 0:03:17.720 headed toward double digits in the fall. Officials are also 0:03:17.800 --> 0:03:22.760 expected to provide more detail on active quantitative tightening. In London. 0:03:22.840 --> 0:03:26.000 I'm Lizzie Burden Bloomberg daybreak. All right, Lessie, thank you all. 0:03:26.080 --> 0:03:29.160 Turning to politics. Now, Finland and Sweden are getting a 0:03:29.160 --> 0:03:31.760 boost in their bid to join NATO. The US Senate 0:03:31.800 --> 0:03:35.080 has now ratified their membership and the alliance, and Bloomberg said, 0:03:35.120 --> 0:03:38.600 Bachelor has the story. The intention is to bolster NATO 0:03:38.680 --> 0:03:42.040 after the Russian invasion of Ukraine. The vote pretty amazing 0:03:42.080 --> 0:03:43.880 in a body that hasn't been able to agree on 0:03:44.000 --> 0:03:48.400 much of anything. The vote to one far exceeding the 0:03:48.440 --> 0:03:53.280 two thirds majority required. Now Finland will join Estonia, Latvia, 0:03:53.400 --> 0:03:56.520 Lithuania in Poland, as NATO country is a share a 0:03:56.600 --> 0:03:59.640 land border with Russia. Turkey has been on and off 0:03:59.720 --> 0:04:03.200 of the idea and could still try to block the move. 0:04:03.640 --> 0:04:08.320 Majority leader Chuck Schumer says Putin has strengthened NATO. In 0:04:08.400 --> 0:04:11.440 San Francisco, I'm at Baxter Bloomberg Daybreak. All right, and thanks. 0:04:11.520 --> 0:04:14.360 Let's turn to corporate news now, where Tesla is in focus. 0:04:14.400 --> 0:04:18.080 The electric car maker holds its highly anticipated shareholder meeting today. 0:04:18.120 --> 0:04:21.200 We get a preview from Bloomberg's Tom Busby. The automaker 0:04:21.240 --> 0:04:24.760 calls it's annual shareholders meeting a cyber roundup, and this 0:04:24.880 --> 0:04:27.359 year the biggest item on the roundup agenda is the 0:04:27.400 --> 0:04:30.359 proposed three for one stock split, which would be the 0:04:30.400 --> 0:04:32.839 second one and as many years for Tesla after a 0:04:32.880 --> 0:04:35.640 five for one split in August of twenty Now. The 0:04:35.680 --> 0:04:37.960 idea is to make shares, which will begin the trading 0:04:38.040 --> 0:04:42.120 day just above nine twenty two dollars apiece, more affordable 0:04:42.160 --> 0:04:46.520 to small dollar retail investors and retail options traders, not 0:04:46.680 --> 0:04:51.680 just institutional investors. Tom Busby, Bloomberg Daybreak Rank Tom. Thank you. 0:04:51.760 --> 0:04:55.840 Elsewhere on Wall Street today, the wave of corporate downsizing continues. 0:04:55.920 --> 0:04:58.800 There's where now that Walmart is getting about two hundred 0:04:58.880 --> 0:05:02.200 corporate jobs, and get the details from Bloomberg's Charlie Pellett. 0:05:02.600 --> 0:05:05.800 The retail giant who is contending with rising costs, blow 0:05:05.880 --> 0:05:10.240 to inventories and weakening demand for general merchandise. Sources say 0:05:10.279 --> 0:05:12.960 the company will also be adding an unspecified number of 0:05:13.040 --> 0:05:16.240 jobs in areas such as e commerce, health and wellness, 0:05:16.320 --> 0:05:20.200 supply chain, and ad sales. Walmart is tightening its belt 0:05:20.200 --> 0:05:23.560 a week after slashing its annual profit forecast for the 0:05:23.760 --> 0:05:27.560 second time in less than three months. American consumers are 0:05:27.600 --> 0:05:31.720 buying less clothing and durable goods as storing inflation raises 0:05:31.760 --> 0:05:35.280 the cost of food and basic items in New York. 0:05:35.400 --> 0:05:38.480 Charlie Pellock, Bloomberg Daybreak, Thanks Charlie, coming up today. The 0:05:38.520 --> 0:05:42.840 earning spread continues fifty. Company's report, including Lift on the 0:05:42.880 --> 0:05:46.240 heels of ubers better than expected results, but Lift is 0:05:46.279 --> 0:05:51.200 not Uber. Bloomberg's Jeff Fellinger explains Lift executives may lower 0:05:51.279 --> 0:05:56.040 the company's full year guidance during their conference call Bloomberg Intelligence, 0:05:56.120 --> 0:05:59.920 as censor tower data indicate competition with Uber has been fear. 0:06:00.520 --> 0:06:04.040 Downloads of the Lift app decline year over year, and 0:06:04.080 --> 0:06:07.240 the increase in the number of monthly active users paled 0:06:07.320 --> 0:06:11.039 in comparison with Uber. B I speculates Lift may seek 0:06:11.160 --> 0:06:15.160 partnership similar to Amazon grub Hub to increase trip frequency. 0:06:15.640 --> 0:06:19.360 Jeff Bollinger, Bloomberg Daybreak, All Right, Jeff, Thank you. While 0:06:19.400 --> 0:06:21.760 we are seeing some stocks on the move this morning 0:06:21.800 --> 0:06:24.440 following earning, so we get the latest live with Bloomberg's 0:06:24.480 --> 0:06:27.960 John Tucker, John and Karen. Earnings from guidance from Chlorox 0:06:28.040 --> 0:06:31.200 fell well short of analysts estimates. Shares were down six 0:06:31.279 --> 0:06:34.320 percent after the company gave weaker than I expended guidance 0:06:34.320 --> 0:06:38.560 for fiscal year three. Shares of the mobile games company 0:06:38.680 --> 0:06:41.960 Skills tumbling at the pre market there down with eleven percent. 0:06:42.279 --> 0:06:45.279 They cut their full year guidance for revenue, and shares 0:06:45.320 --> 0:06:49.200 of Lucid sinking twelve percent after the luxury electric vehicles 0:06:49.240 --> 0:06:52.680 startup cut in half this year's production target. Lucid has 0:06:52.680 --> 0:06:56.279 been feeling with supply chain stags and resulting production hiccups 0:06:56.520 --> 0:06:59.760 Live of New York. I'm John Tucker, Bloomberg Daybreak. All right, John, 0:07:00.200 --> 0:07:02.400 Futures are getting some traction at the moment. S and 0:07:02.440 --> 0:07:04.960 P futures right now have ten points. Stout futures up 0:07:05.000 --> 0:07:08.400 forty seven. Nasdaq futures are gaining fifty points. The tenure 0:07:08.440 --> 0:07:12.040 treasury is down six thirty seconds. The yield two point 0:07:12.080 --> 0:07:14.560 seven to yield on the two year three point one 0:07:14.640 --> 0:07:17.320 zero straight ahead. Your latest local headlines in the check 0:07:17.360 --> 0:07:24.400 of Sports. This is Bloomberg. Sus SO seven on Wall 0:07:24.440 --> 0:07:27.120 Street were at seventy eight degrees in Central Park, getting 0:07:27.160 --> 0:07:29.760 ready for the heat advisory to kick in later this morning. 0:07:29.960 --> 0:07:31.880 Michael Barr has more on what's going on in New 0:07:31.960 --> 0:07:34.600 York and around the world. Good morning, Michael, Good morning, Nathan. 0:07:34.720 --> 0:07:38.120 China says it has conducted precision missile strikes and the 0:07:38.160 --> 0:07:42.360 Taiwan Straight as part of military exercises surrounding the island. 0:07:42.680 --> 0:07:46.040 China test fired eleven missiles into the seat. The drills 0:07:46.080 --> 0:07:48.160 were prompted by a visit to the island by House 0:07:48.200 --> 0:07:52.120 speaker Nancy Pelosi this week. Beijing earlier warned airlines to 0:07:52.160 --> 0:07:56.440 avoid danger zones around Taiwan. As you mentioned, Nathan, it's 0:07:56.480 --> 0:07:58.320 going to be a hot one in the New York area, 0:07:58.400 --> 0:08:02.119 Bloomberg needed religious. Rob Rreland has the latest. Good morning, Michael. 0:08:02.160 --> 0:08:03.920 The Bermiera High is going to set the Tri state 0:08:03.920 --> 0:08:06.040 area up for some warm weather over the course of 0:08:06.080 --> 0:08:08.040 the next several days. In fact that it's looking like 0:08:08.080 --> 0:08:09.600 the first half of August is going to be on 0:08:09.640 --> 0:08:12.400 the warm side. Today the city and the surrounding areas 0:08:12.400 --> 0:08:14.600 close to nine, but it feels more like a hundred 0:08:14.640 --> 0:08:16.520 with the committee, and that's why that heat advisories and 0:08:16.600 --> 0:08:19.600 effect when the nineties again tomorrow close to NIGHTTI, Saturday, 0:08:19.640 --> 0:08:23.080 and Sunday, Michael rob thanks. New York City Mayor Eric 0:08:23.080 --> 0:08:27.200 Adams pushed back against criticism that is continual focus on 0:08:27.320 --> 0:08:31.200 crime at press conferences is feeding into an overblown narrative 0:08:31.280 --> 0:08:34.760 that the city is unsafe. Incidents of violent crime remain 0:08:34.840 --> 0:08:37.640 at historic lows in the city, but seventy percent of 0:08:37.679 --> 0:08:40.560 New Yorkers said crime was a very serious problem in 0:08:40.559 --> 0:08:45.080 a February poll. Adams spoke to reporters yesterday. The numbers 0:08:45.120 --> 0:08:49.800 continue to twin in the wrong direction, continue to show 0:08:49.880 --> 0:08:53.160 that these repeated offenders are coming out. It would be 0:08:53.200 --> 0:08:57.559 irresponsible of me to ignore what is happening right now 0:08:57.640 --> 0:09:01.319 on our streets every day, every day was seeing this 0:09:01.800 --> 0:09:06.440 dangerous people repeatedly committed these actions. Meanwhile, Mayor Adams is 0:09:06.480 --> 0:09:09.760 freeing up one hundred million dollars in federal stimulus money 0:09:09.800 --> 0:09:13.240 for New York schools. It comes after an outcry among 0:09:13.320 --> 0:09:16.720 parents and some educators over the city's planned gout hundreds 0:09:16.760 --> 0:09:19.320 of millions of dollars in funding for schools in the 0:09:19.320 --> 0:09:23.320 current fiscal year. Conspiracy theorist Alex Jones says he was 0:09:23.400 --> 0:09:29.640 irresponsible to declare the Sandy Hook Elementary School massacre hoaxcent 0:09:29.760 --> 0:09:32.800 real as a sub regular stay and as I said 0:09:32.840 --> 0:09:38.280 here real Jerry in Austin, Texas began deliberating on how 0:09:38.360 --> 0:09:40.880 much the Info Wars host owes the parents of one 0:09:40.920 --> 0:09:44.840 of the children killed in the attack, and Newtown, Connecticut 0:09:44.960 --> 0:09:48.079 testimony wrapped up after a bombshell from the plaintiffs lawyer 0:09:48.120 --> 0:09:51.920 revealed that Jones's lawyers mistakenly handed over two years of 0:09:52.000 --> 0:09:55.960 text messages from Jones's phone. Global News twenty four hours 0:09:55.960 --> 0:09:58.840 a day on air and on Bloomberg Quick Tank, powered 0:09:58.840 --> 0:10:01.520 by more than one hundred journalists and analyist and more 0:10:01.520 --> 0:10:04.440 than a hundred twenty countries. Michael bar this is Bloomberg. 0:10:04.840 --> 0:10:11.360 Thank you, Michael. It's almost six cent of all street 0:10:11.400 --> 0:10:14.240 time for the Bloomberg Sports update. Here's John Shower. All right. 0:10:14.320 --> 0:10:16.880 Nathan and Mets added some players before the trade deadline. 0:10:16.880 --> 0:10:19.680 Maybe not big names, although their new left handed hitting 0:10:19.800 --> 0:10:23.079 d h is certainly a big guy. Daniel Vogelback generously 0:10:23.160 --> 0:10:25.520 listed a two hundred and seventy pounds. He came up 0:10:25.520 --> 0:10:27.240 from the fifth in end and Washington two on the 0:10:27.280 --> 0:10:29.480 way from Williams and boge Back gets one of the 0:10:29.520 --> 0:10:31.360 area along the right field line back to where the 0:10:31.440 --> 0:10:36.240 cornerback goes. Colosio said, it's out of here a crans 0:10:36.280 --> 0:10:40.599 swam for Daniel foco Back. His first home was a 0:10:40.720 --> 0:10:43.760 met at his scores four and had to call on 0:10:43.960 --> 0:10:46.079 s n Y. Mets took a nine nothing lead to 0:10:46.120 --> 0:10:48.800 the ninth inning. Another new Mets reliever, Michael Gibbons, he 0:10:48.840 --> 0:10:51.319 made his Mets debut. It did not go well, got 0:10:51.440 --> 0:10:53.840 just two outs, gave up five runs, but the metstreet 0:10:53.840 --> 0:10:55.640 the Nationals nine to five. They've won eight of the 0:10:55.720 --> 0:10:59.360 last nine Atlanta loss, which means the Big Mets Braves 0:10:59.480 --> 0:11:02.280 five game series that begins Senetta City Field starts with 0:11:02.320 --> 0:11:04.760 the Mets three and a half games ahead. At the 0:11:04.840 --> 0:11:07.640 Stadium Seattle bet Yankee seven to three, did almost all 0:11:07.679 --> 0:11:10.040 the damage top of the first, sitting six runs on 0:11:10.200 --> 0:11:13.199 three Mariners home runs off Garrett Cole, the second time 0:11:13.280 --> 0:11:16.000 this season he has served up three homers in the 0:11:16.080 --> 0:11:19.040 first so Seattle just the fourth opposing team to win 0:11:19.120 --> 0:11:21.480 a series in the Bronx and what could hardly be 0:11:21.559 --> 0:11:24.319 called a surprise the NFL will appeal the ruling on 0:11:24.400 --> 0:11:28.920 the Deshaun Watson suspension for sexual misconduct. The independent arbitrator 0:11:28.960 --> 0:11:31.360 called for it to be six games, but the appeal process, 0:11:31.640 --> 0:11:34.120 as agreed to by both sides of the labor deal, 0:11:34.520 --> 0:11:36.800 calls for the Commissioner or at least somewhat designated by 0:11:36.920 --> 0:11:39.200 Roger Goodell, to be the one to rule on the appeal, 0:11:39.280 --> 0:11:42.040 So the NFL is appealing basically to themselves. They would 0:11:42.080 --> 0:11:44.079 then be allowed to make the suspension longer. The Players 0:11:44.120 --> 0:11:48.040 Association may then follow with a lawsuit. John Stashanward, Bloomberg Sports. 0:11:48.440 --> 0:11:51.040 Thank you, John. This red headline just across the Bloomberg terminal. 0:11:51.080 --> 0:11:55.000 Credit Swiss Group executives are reportedly discussing cutting thousands of 0:11:55.120 --> 0:11:58.120 jobs around the world as the struggling European lender tries 0:11:58.200 --> 0:12:01.720 to slash its overall cost base by an additional billion dollars. 0:12:02.120 --> 0:12:08.319 You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather. Yeah, 0:12:08.320 --> 0:12:11.160 it's gonna be hot in mid nineties today and tomorrow. 0:12:11.240 --> 0:12:13.720 The heat advisory kicks into eleven a m. Last till 0:12:13.880 --> 0:12:16.240 eight pm Friday, will be back in the uper eighties 0:12:16.280 --> 0:12:22.440 by Saturday. Right now seventy eight in Central Park markets. 0:12:22.559 --> 0:12:25.600 Headlines and breaking news twenty four hours a day at 0:12:25.640 --> 0:12:29.040 Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg 0:12:29.120 --> 0:12:39.000 Quick Tape He's a Bloomberg Business lash and I'm Karen Moscow. 0:12:39.160 --> 0:12:42.240 And stocks are nudging higher as investors assess the corporate 0:12:42.360 --> 0:12:45.400 profit outlook well waiters on further Federal reserve interest rate 0:12:45.480 --> 0:12:48.280 hikes lift treasury yields. We checked the markets every fifteen 0:12:48.320 --> 0:12:51.120 minutes throughout the trading day on Bloomberg Guess and p 0:12:51.320 --> 0:12:54.280 future is up twelve points now, futures of seventy NASDAG 0:12:54.320 --> 0:12:56.800 futures up sixty the decks in Germany's at one point 0:12:56.880 --> 0:12:59.920 three and the tend your Treasury down six thirty second 0:13:00.000 --> 0:13:02.640 tield two point seven two percent yield on the two 0:13:02.720 --> 0:13:05.920 year three point one zero percent. Nine excrude oils up 0:13:05.960 --> 0:13:08.280 one point one percent or ninety eight cents and ninety 0:13:08.320 --> 0:13:10.880 one dollar sixty three cents of barrel called max Schold 0:13:10.920 --> 0:13:13.240 at one point one percent or eighteen dollars ninety cents. 0:13:13.400 --> 0:13:18.120 Sevnnounced the euro one pot one nine one against the dollar. 0:13:18.200 --> 0:13:20.880 British found one point one eight six c one thirty 0:13:20.960 --> 0:13:23.960 four point one four and bitcoin down one point seven 0:13:24.000 --> 0:13:27.240 percent at twenty two thousand, nine hundred twenty dollars, and 0:13:27.400 --> 0:13:31.359 Credit Swiss Group executives discussing cutting thousands of jobs globally. 0:13:31.520 --> 0:13:34.080 This is a struggling European lenders seeks to slash its 0:13:34.160 --> 0:13:37.760 overall cost base by an additional one billion dollars. And 0:13:37.800 --> 0:13:39.839 today we also are watching for the weekly report on 0:13:39.880 --> 0:13:42.400 initial jobless claims at an eight thirty Wall Street time, 0:13:42.800 --> 0:13:45.400 along with the trade balance. And that's a Bloomberg business flash. 0:13:45.480 --> 0:13:47.559 Now here Smuggle Barro with more on what's going on 0:13:47.679 --> 0:13:50.160 around the world. Michael Karen, thank you very much. Today 0:13:50.280 --> 0:13:53.920 China fired eleven missiles into the c surrounding Taiwan. It 0:13:54.040 --> 0:13:56.559 is in response to a visit by US how Speaker 0:13:56.640 --> 0:13:59.959 Nancy Pelosi to the island Beijing claims as its own 0:14:00.000 --> 0:14:04.200 in territory. The Senate ratified adding Sweden and Finland to NATO, 0:14:04.360 --> 0:14:07.960 a move intended to bolster the military alliance after Russia's 0:14:07.960 --> 0:14:11.319 invasion of Ukraine. Closing arguments in w n B A 0:14:11.520 --> 0:14:15.240 star Brittney Grinder's cannabis possession case in Russia are set 0:14:15.360 --> 0:14:19.000 for today. In baseball, the Mamaters beat the Yankees seven three, 0:14:19.280 --> 0:14:22.200 The Mats beat the Nationals nine five, The Red Sox 0:14:22.280 --> 0:14:27.080 and Giants lost the Orioles and A's one Global News 0:14:27.160 --> 0:14:30.200 twenty four hours a day on air and on Bloomberg Quicktake, 0:14:30.400 --> 0:14:34.280 powered by more than journalist and analysts more than twenty countries. 0:14:34.640 --> 0:14:40.120 Michael barn this is Bloomberg, Bloomberg Opinion, informed perspectives and 0:14:40.360 --> 0:14:44.920 expert data driven commentary on breaking news, life and the 0:14:44.960 --> 0:14:48.360 Bloomberg Interacted Blocus Studios. This is Bloomberg Daybreak. We are 0:14:48.440 --> 0:14:51.880 coming up to six twenty on Wall Street and Bloomberg Opinion. 0:14:51.960 --> 0:14:55.040 Calumnist Marcus Ashworth joins us ahead of the Bank of 0:14:55.120 --> 0:14:59.680 England decision, now just about forty minutes away. Marcus, I 0:14:59.800 --> 0:15:01.880 love of the headline on your piece ahead of this 0:15:02.040 --> 0:15:04.280 policy meeting. The Bank of England needs a big bac 0:15:04.320 --> 0:15:07.520 and fries. Do you think policymakers have gotten the message 0:15:07.600 --> 0:15:11.680 from the rising fast food menu? Marcus? It never accused 0:15:11.720 --> 0:15:15.680 me of click baker, but I mean the point is 0:15:15.760 --> 0:15:17.640 is that they've upped the price of a burger here 0:15:17.720 --> 0:15:22.120 or cheeseburger by and though inflation will probably drop back 0:15:22.160 --> 0:15:25.080 a bit next year or whatever, the chances of a 0:15:25.160 --> 0:15:29.800 burger going back to below a pound, it's never gonna happen. 0:15:29.840 --> 0:15:33.120 We've that's gone forever, and that's the point that inflation 0:15:33.280 --> 0:15:38.200 is embedding and expectations are rising um just as time 0:15:38.280 --> 0:15:40.560 goes by and the feet through and energy prices comes 0:15:40.600 --> 0:15:43.480 into things like food and then obviously wages. So yes, 0:15:43.560 --> 0:15:45.640 the Bank of Things should raise fifty basis points. They 0:15:45.640 --> 0:15:48.560 would be very surprised if it doesn't, but I have 0:15:48.720 --> 0:15:52.320 some very good excuses if and that would be very 0:15:52.360 --> 0:15:54.160 worried because it would have to be predicated on some 0:15:54.320 --> 0:15:57.760 very poor forward economic forecast, which I don't think will happen. 0:15:57.840 --> 0:16:00.080 But that's why I think fifties pretty much now on 0:16:00.600 --> 0:16:02.040 and it will be good to see them. This would 0:16:02.040 --> 0:16:04.040 be the biggest move they've done for twenty seven years, 0:16:04.480 --> 0:16:07.680 but obviously follows the more aggressive even FED and even 0:16:07.720 --> 0:16:11.400 though surprisingly aggressive European Central Bank just a week or 0:16:11.440 --> 0:16:13.560 so ago. So it's it's the finowing in line with 0:16:13.560 --> 0:16:18.040 everyone else. Does the BOE stick with a fifty basis 0:16:18.120 --> 0:16:20.560 points going forward or is this just the one and done? 0:16:20.600 --> 0:16:22.840 Do you think I think it's well, it's a one 0:16:22.880 --> 0:16:24.920 and go down back to the normal twenty five. I 0:16:24.960 --> 0:16:26.760 think we'll probably get two or three more of them 0:16:26.920 --> 0:16:29.240 the rest of this year, get over two percent, maybe 0:16:29.240 --> 0:16:32.000 two and a quarter somewhere around there, and then probably pause. 0:16:32.080 --> 0:16:35.920 They're also starting quantitative tightening. We think we'll get some 0:16:36.000 --> 0:16:39.240 details on that today and the final decision we men 0:16:39.280 --> 0:16:41.880 in September, but it will be a gradual one. But 0:16:41.960 --> 0:16:44.480 they're gonna you know, I think the fifty base point 0:16:44.560 --> 0:16:47.520 needs to be done um now, but I think they'll 0:16:47.600 --> 0:16:50.520 probably hold back and do twenty fives now. And the 0:16:50.640 --> 0:16:52.480 only riter to that if we do get a very 0:16:52.560 --> 0:16:56.280 aggressive fiscal passage package for the next Conservative five minister, 0:16:56.880 --> 0:16:59.200 then maybe they feel they need to counter right that 0:16:59.280 --> 0:17:01.840 and there might be another fifty. But it's yeah, we 0:17:01.880 --> 0:17:03.400 think we're gonna get to about two and a quarter 0:17:03.440 --> 0:17:07.679 two and a half terminal rates um, so midway between 0:17:07.760 --> 0:17:09.320 what the FED and and and the u CV are 0:17:09.359 --> 0:17:11.840 going to do. It's tighter policy going to be enough 0:17:11.920 --> 0:17:14.320 to reign in the kind of inflation we are seeing 0:17:14.480 --> 0:17:16.800 in the UK where you're dealing with a cost of 0:17:16.880 --> 0:17:19.800 living crisis, and of course there's probably a lot of 0:17:19.840 --> 0:17:23.399 the same dynamics that continental Europe is dealing with with 0:17:23.560 --> 0:17:27.440 the war in Ukraine affecting energy prices. Well, we're caught 0:17:27.480 --> 0:17:30.040 in the trap between the pressures of Europe and then 0:17:30.080 --> 0:17:32.600 then the pressures similar as the US has on a 0:17:32.680 --> 0:17:34.600 very tight labor market. So it makes a little bit 0:17:34.800 --> 0:17:37.000 something a little bit more cute. But the good news 0:17:37.040 --> 0:17:39.840 about the UK economy, very much like the U S economy, 0:17:39.880 --> 0:17:43.120 has got very strong banking system, big savings in both 0:17:43.160 --> 0:17:46.600 household and corporates, and that very low unemployment is you know, 0:17:46.720 --> 0:17:48.720 is a good place to start a down to and from, 0:17:48.800 --> 0:17:50.320 if you know what I mean in the sense, I 0:17:50.359 --> 0:17:54.240 don't think it would be a very deep or nasty procession. 0:17:54.320 --> 0:17:57.399 If even there is one, I think will bumble along 0:17:58.119 --> 0:18:01.960 around zero growth for for the next courses. An inflation 0:18:02.000 --> 0:18:05.280 will come down almost of its own accord, and I 0:18:05.359 --> 0:18:06.960 don't think there's much the bank and you can do 0:18:07.000 --> 0:18:09.320 about it. They've got to act to try and come 0:18:09.400 --> 0:18:12.560 some of those inflactional explanations feems of labor uh, you know, 0:18:12.600 --> 0:18:16.400 wage rises. But the reality is this is external influences 0:18:16.520 --> 0:18:18.840 energy and they've got very little control over it. How 0:18:18.960 --> 0:18:21.199 much of an external influences politics here is there are 0:18:21.200 --> 0:18:23.439 a feeling that the VOE needs to get aggressive now 0:18:23.560 --> 0:18:28.679 before there's the leadership change in September. No ish, I mean, 0:18:28.720 --> 0:18:31.680 obviously I don't think they can act on that in 0:18:31.760 --> 0:18:34.360 the sense that they really can't. All their economic forecasts, 0:18:34.400 --> 0:18:37.159 of course, all rubbish because they're all going to be 0:18:37.280 --> 0:18:39.840 changed when the government does do another big fiscal stimulus. 0:18:40.280 --> 0:18:42.680 So a lot of these economic forecasts you're seen out 0:18:42.840 --> 0:18:45.440 on the UK at the moments are just simply wrong, 0:18:45.520 --> 0:18:47.920 and then everyone knows they're wrong because you can't plug 0:18:48.000 --> 0:18:49.880 in something you don't know which is going to happen 0:18:50.000 --> 0:18:53.840 very soon and another big fiscal stimulus. Nonetheless, I think 0:18:53.880 --> 0:18:55.400 the Bank of England will you know, if it comes 0:18:55.400 --> 0:18:57.960 between doing zero or twenty five or whatever it may 0:18:58.000 --> 0:18:59.959 be in the future, and they think the fiscals can 0:19:00.040 --> 0:19:03.159 sisto strong, they're gonna courtion. The good mute is the 0:19:03.280 --> 0:19:06.280 government has saved them to be blamed for recession by 0:19:06.320 --> 0:19:08.840 stepping in on the fiscal side, which means the Manet 0:19:08.880 --> 0:19:10.400 you can get on and do what it should be doing, 0:19:10.760 --> 0:19:13.480 which is on monegy policy, which is calming inflation. They 0:19:13.480 --> 0:19:15.040 should have done an age ago, but at least they're 0:19:15.040 --> 0:19:17.440 getting on that now and they will get on with it. 0:19:17.560 --> 0:19:19.760 One way or the other in about thirty six minutes 0:19:19.760 --> 0:19:21.760 when we get that decision from the b O E. 0:19:21.920 --> 0:19:24.879 Marcus Ashworth, Bloomberg Opinion columnist, thanks for being with us 0:19:25.320 --> 0:19:29.880 ahead of that decision. Get more Bloomberg Opinion Bloomberg dot 0:19:29.960 --> 0:19:33.600 Com Slash Opinion O P I N go on the 0:19:33.640 --> 0:19:36.440 Bloomberg terminal, where you can get even more great headlines 0:19:36.480 --> 0:19:40.720 about Big Max and fries. SFP futures up thirteen points, 0:19:40.720 --> 0:19:44.359 staff futures up seventy two, NASTAC futures up sixty two points. 0:19:44.440 --> 0:19:47.680 So adding to games as we get closer to the 0:19:47.760 --> 0:19:50.880 market open on Wall Street. Ten year treasuries down five 0:19:50.960 --> 0:19:53.840 thirty seconds, the yield two point seven to per cent, 0:19:54.119 --> 0:19:57.920 just ahead the Feds still talking tough on inflation and credit. 0:19:58.000 --> 0:20:01.200 Sweez looking at it's sweeping, John Cuts. Five things you 0:20:01.320 --> 0:20:03.200 need to know to start your day. Coming up on 0:20:03.240 --> 0:20:09.520 Bloomberg day Break Bloomberg eleven three oh Weather heat Advisory 0:20:09.600 --> 0:20:12.119 kicks in at eleven am last till eight p m 0:20:12.359 --> 0:20:16.080 Friday today tomorrow. In your ninety five degrees will be 0:20:16.160 --> 0:20:18.760 in the oper eighties by Saturday. Right now, seventy eight 0:20:18.880 --> 0:20:25.240 in Central Park, broadcasting live from the Bloomberg Interactive Broker 0:20:25.359 --> 0:20:28.760 Studio in New York, Bloomberg E living three on to Washington, 0:20:28.880 --> 0:20:32.680 d C, Bloomberg on to Boston, Bloomberg one O six 0:20:32.800 --> 0:20:35.959 one to San Francisco, Bloomberg nine sixty to the Country, 0:20:36.080 --> 0:20:39.080 Sirius XM Chandel one nine tea and around the globe 0:20:39.160 --> 0:20:43.159 the Bloomberg Business and Bloomberg Radio dot com. This is 0:20:43.200 --> 0:20:51.920 Bloomberg Day Break six thirty on Wall Street. Good morning, 0:20:52.040 --> 0:20:54.840 I'm Nathan Hagar and I'm Karen Moscow. He are just 0:20:54.960 --> 0:20:57.919 about three hours away from the open of US trading 0:20:58.000 --> 0:21:00.280 time for the five things you need to notice start 0:21:00.359 --> 0:21:04.240 your day. Brought to you by Interactive Brokers. Interactive Brokers 0:21:04.359 --> 0:21:07.000 charges Martin loan rates from two point eight three percent 0:21:07.280 --> 0:21:09.800 to three point eight three percent. Their clients can also 0:21:09.840 --> 0:21:12.440 are an extra income by lending their fully paid shares 0:21:12.480 --> 0:21:15.160 of stock rate subject to change. Learn more at ib 0:21:15.280 --> 0:21:18.399 k R dot com. Slash compair first. The S and 0:21:18.480 --> 0:21:21.400 P five hundred enters this session near a two month high. 0:21:21.560 --> 0:21:24.359 The tech heavy Nasdaq one hundred indexes at its highest 0:21:24.440 --> 0:21:28.119 level since early May. Corporate earnings and healthy economic data 0:21:28.400 --> 0:21:32.080 has helped to lift sentiment, but Alifa Doria Walla, managing 0:21:32.160 --> 0:21:35.440 director at Rock Creek, says she's still proceeding with caution. 0:21:36.000 --> 0:21:38.920 There could be another severe downturn, another leg to go 0:21:39.080 --> 0:21:40.440 in the S and P, and a lot of that 0:21:40.600 --> 0:21:42.760 is some of the big tech companies that could continue 0:21:42.800 --> 0:21:44.520 to get hard because of the strong dollar and what 0:21:44.640 --> 0:21:46.680 will happen to earnings in the coming orders if that 0:21:46.760 --> 0:21:50.520