WEBVTT - Bloomberg Daybreak: August 24, 2022 - Hour 2 (Radio) 0:00:01.960 --> 0:00:05.440 From the Bloomberg Interactive Brooker Studios. This is Bloomberg Daybreak 0:00:05.480 --> 0:00:09.840 for Wednesday, August two. Coming up this hour, key primary 0:00:09.920 --> 0:00:13.480 results across the country. Jerry Nadler beats Carolyn Maloney in 0:00:13.520 --> 0:00:16.680 New York and Florida. Charlie christ will challenge incumbent Governor 0:00:16.800 --> 0:00:20.040 Rhonda Santis. A top FED official calls for higher rates 0:00:20.040 --> 0:00:22.720 on the eve of the Jackson Holts imposeum, and millions 0:00:22.720 --> 0:00:26.479 of Americans await President Biden's decision on student loans. It 0:00:26.560 --> 0:00:29.800 has been six months since Russia invaded Ukraine. Plus guilty 0:00:29.920 --> 0:00:32.880 verdicts for two men accused of trying to kidnap Michigan's governor. 0:00:33.120 --> 0:00:36.280 I'm Michael Barr more ahead, I'm John Stas showerd sports 0:00:36.280 --> 0:00:38.640 a second straight Yankee Ford to two win over the 0:00:38.680 --> 0:00:41.320 Mets of the Subway series. Kevin Durant is staying with 0:00:41.400 --> 0:00:46.480 the Brooklyn Net. That's all s traded head on Bloomberg 0:00:46.520 --> 0:00:49.320 day Break on Bloomberg. He live in Free on New York, 0:00:49.520 --> 0:00:54.200 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.480 --> 0:00:59.200 Bloomberg nine sixties and Francisco Sirius XM one nineteen and 0:00:59.280 --> 0:01:02.080 around the world Old on Bloomberg Radio dot Com and 0:01:02.120 --> 0:01:08.760 buy the Bloomberg Business app. Good morning, I'm Nathan Hager 0:01:09.240 --> 0:01:12.880 and I'm Karen Moscow. US Nock Index futures are little 0:01:12.959 --> 0:01:15.120 changed to lower this morning. We're coming up to six 0:01:15.120 --> 0:01:16.679 o one on Wall Street, and we check the market 0:01:16.680 --> 0:01:20.160 server fifteen minutes throughout the trading day on Bloomberg SPA. 0:01:20.200 --> 0:01:23.200 NOASDAG futures are little change. Down, futures down three D 0:01:23.280 --> 0:01:25.560 two and the ten year treasury little change. You'll three 0:01:25.560 --> 0:01:28.640 point oh four percent, Nathan. Okay, Karen. We'll have more 0:01:28.640 --> 0:01:30.200 on the markets in just a minute, but we want 0:01:30.200 --> 0:01:32.600 to get you caught first on some key primary results 0:01:32.640 --> 0:01:35.640 across the country. Our team coverage begins in New York 0:01:35.680 --> 0:01:38.720 with Bloomberg's Michael Bark. Good morning, Michael, Good morning Nathan. 0:01:38.760 --> 0:01:42.560 In New York's key Congressional twelve district, Representative Jerry Nadler 0:01:42.640 --> 0:01:47.119 be Democratic Committee Chair Carolyn Maloney five to four percent, 0:01:47.480 --> 0:01:50.400 the two long time allies became opponents this year due 0:01:50.480 --> 0:01:54.840 to redistricting. Maloney spoke during your concession speech, I'm really 0:01:54.920 --> 0:01:58.520 sad that we no longer have a woman representing Manhattan 0:01:58.720 --> 0:02:02.680 in Congress. Last night. Nadler, thank Maloney, and I will 0:02:02.720 --> 0:02:05.680 return to Congress with a mandate to fight for the 0:02:06.920 --> 0:02:10.120 causes so many of us know to be right. Nadler 0:02:10.160 --> 0:02:14.960 would face Republican Mike Zimbluskas In another key congressional race, 0:02:15.080 --> 0:02:19.120 Daniel Goldman one in the tenth district over a fellow Democrat. 0:02:19.280 --> 0:02:24.680 You line knew six to Goldman faces Republican Benny Hampden 0:02:24.800 --> 0:02:28.359 in November. In the seventeenth district, Sean Patrick Maloney, chair 0:02:28.400 --> 0:02:31.880 of the House Democrats campaign ARM one with sixty seven percent. 0:02:31.960 --> 0:02:35.720 He will face Republican Michael Lawler, who got seventy six percent, 0:02:36.000 --> 0:02:38.680 and a special election in the nineteenth district to replace 0:02:38.800 --> 0:02:43.680 Democrat Antonio Delgado, who became New York's Lieutenant governor. Democrat 0:02:43.800 --> 0:02:48.080 Pat Ryan with beat Republican Mark Mulinaro, who got forty 0:02:48.120 --> 0:02:50.680 eight percent. The race was seen as a Lipnus test 0:02:50.720 --> 0:02:54.280 after the Supreme Court overturned abortion rights. More on other 0:02:54.320 --> 0:02:56.920 New York races later. I'm Michael Barr now over to 0:02:56.960 --> 0:03:00.600 Bloomberg's Amy Morris with key results in Florida, Amy, thank you, Michael. 0:03:00.720 --> 0:03:04.560 Representative Charlie Chris has won the Democratic nomination for governor 0:03:04.560 --> 0:03:07.840 of Florida, beating out the state agriculture commissioner and more 0:03:07.919 --> 0:03:11.840 progressive Nikki Freed with nearly sixty of the vote. Chris, 0:03:12.000 --> 0:03:16.240 a former Republican governor himself, will challenge Republican incumbent Ron 0:03:16.320 --> 0:03:19.560 De Santis. If we work together stand up to this bully, 0:03:19.639 --> 0:03:25.040 we will defeat him in November. Meanwhile, val Demings won 0:03:25.040 --> 0:03:27.839 the Democratic primary four Senate with more than eighty four 0:03:27.880 --> 0:03:30.760 percent of the vote, and she will challenge Republican Incoments 0:03:30.840 --> 0:03:34.400 editor Marco Rubio in Florida. In Washington, I'm Mammy Morris 0:03:34.440 --> 0:03:37.760 Bloomberg Daybreak, Amy, thank you. But one other state held 0:03:37.800 --> 0:03:41.880 election yesterday in Oklahoma, trump back Congressman Mark Wayne Mullin 0:03:42.000 --> 0:03:45.600 defeated former Statehouse Speaker T. W. Shannon in a special 0:03:45.680 --> 0:03:48.600 runoff of the Senate seat now held by retiring Republican 0:03:48.760 --> 0:03:52.680 Jim Einhoff. Mullin will face former Democratic Congressman Kendra Horne 0:03:52.760 --> 0:03:55.080 in November. And we'll have much more in the primaries 0:03:55.080 --> 0:03:57.760 throughout the morning. Karen, But another story we're following today, 0:03:57.840 --> 0:04:01.240 President Biden is expected to make his long awaited announcement 0:04:01.320 --> 0:04:04.160 on student debt relief. We get the latest from Bloomberg's 0:04:04.240 --> 0:04:06.720 and Baxter. It has been something the President has been 0:04:06.720 --> 0:04:09.200 planning for quite a while now, and the White House 0:04:09.280 --> 0:04:11.480 is keeping the cars very close to the vest. The 0:04:11.560 --> 0:04:14.360 President has been grappling with targeted relief while at the 0:04:14.400 --> 0:04:18.600 same time counteracting any fallout such as contributing to inflation. 0:04:19.040 --> 0:04:23.719 Now advocates and allies expect expect a pause on loans 0:04:23.720 --> 0:04:25.840 for an additional four months through the end of the year, 0:04:26.240 --> 0:04:29.560 as well as some form of partial forgiveness. We should 0:04:29.600 --> 0:04:33.560 know today in San Francisco. I'm at Baxter Bloomberg Daybreak, right, 0:04:33.600 --> 0:04:35.400 and thank you. Now turn our attention to the Federal 0:04:35.400 --> 0:04:38.919 Reserves Annual Jackson Hole Economics Emposium. It starts tomorrow and 0:04:38.920 --> 0:04:42.040 culminates with a speech from j Powell on Friday. Drew Mattis, 0:04:42.080 --> 0:04:45.760 chief market strategistic MetLife Investment Management, tells us, but he 0:04:45.839 --> 0:04:48.520 expects from the FED chair, It's a simple message. Rates 0:04:48.560 --> 0:04:50.800 are going to continue to move higher because inflation is 0:04:50.800 --> 0:04:52.560 still above where the Fed would like to see it. 0:04:52.800 --> 0:04:54.680 Um you know, in terms of how the market's going 0:04:54.720 --> 0:04:56.920 to take that, you know, I think the market is 0:04:56.960 --> 0:05:00.000 pretty well expecting that. And the real question everyone's asked 0:05:00.160 --> 0:05:02.080 now it's kind of you know, how much negative news 0:05:02.160 --> 0:05:03.840 is the Fed need to see it before it changes 0:05:03.839 --> 0:05:07.360 that tune and MetLife Investment Management Dramatis says there's an 0:05:07.360 --> 0:05:10.120 increasing likelihood of recession, even if it's not showing up 0:05:10.160 --> 0:05:13.160 in the labor market yet. Well. Meanwhile, Karen, Minneapolis Fed 0:05:13.200 --> 0:05:15.760 President Neil cash Cary says, it's very clear the central 0:05:15.760 --> 0:05:19.760 Bank needs to tighten monetary policy with inflation this high. 0:05:19.839 --> 0:05:22.240 I'm for me, I'm in the mode of we need 0:05:22.240 --> 0:05:25.800 to air on making sure we're getting inflation down and 0:05:25.920 --> 0:05:31.200 only relax when we see compelling evidence that inflation is 0:05:31.240 --> 0:05:34.040 well on its way back down to two Minneapolis Fed 0:05:34.080 --> 0:05:37.320 President Neil cash Cary. Please stick with Bloomberg for complete 0:05:37.320 --> 0:05:40.400 live coverage of the Jackson Hoole Symposium. Bloomberg Surveillance will 0:05:40.440 --> 0:05:43.320 be there starting tomorrow with Tom Keene, Lisa A. Brahmowitz, 0:05:43.360 --> 0:05:46.200 and Jonathan Farroll. So we turned to corporate news now, Nathan, 0:05:46.279 --> 0:05:49.440 we're continuing to see major retailers struggle. Shares a north 0:05:49.480 --> 0:05:52.920 Strom down fourteen percent following its latest earnings report, and 0:05:53.040 --> 0:05:55.320 we get more live from Bloomberg's Red Need a Young. 0:05:55.360 --> 0:05:58.560 Good Morning, Ready Down, Good morning, Karen, investors initially saw 0:05:58.640 --> 0:06:02.599 Nordstrom as insulted by its affluent customer base, but its 0:06:02.600 --> 0:06:06.120 outlook tells a different story. As the retailer's rack business 0:06:06.160 --> 0:06:10.200 slows on consumer demand and inventory build up, the department 0:06:10.240 --> 0:06:13.760 store operator is lowering its full year forecast just three 0:06:13.760 --> 0:06:17.760 months after raising its outlook earlier. This week, Macy's also 0:06:17.800 --> 0:06:21.040 cut its full year forecast, and now both retailers are 0:06:21.080 --> 0:06:24.960 moving aggressively to clear out inventory. Other high end US 0:06:25.000 --> 0:06:28.000 consumer companies such as Ralph Laurenda and as They Lauder, 0:06:28.200 --> 0:06:31.880 have also trimmed forecasts. Live in New York, I'm remed 0:06:31.920 --> 0:06:34.840 a young Bloomberg Daybreak Reneda thanks on the flip side. 0:06:34.839 --> 0:06:37.320 Shares of bed, Bath and Beyond her up almost fifteen 0:06:37.400 --> 0:06:40.000 percent in early trading. The Wall Street journals reporting the 0:06:40.040 --> 0:06:43.240 home goods retailers selected a lender to provide financing as 0:06:43.240 --> 0:06:46.359 it seeks to boost liquidity and pair down debt. And finally, 0:06:46.440 --> 0:06:49.760 Nathan Tributes are still pouring in this morning for Julian Robertson, 0:06:49.839 --> 0:06:52.479 the billionaire founder of Tiger Management, who has dined at 0:06:52.520 --> 0:06:54.680 the age of nine day, Robertson became one of his 0:06:54.760 --> 0:06:58.120 generation's most successful hench fund managers and a mentor to 0:06:58.240 --> 0:07:01.320 a wave of investors known as Tai Your Cubs. Robertsons 0:07:01.360 --> 0:07:04.240 started Tiger Management in nineteen eighty with just under nine 0:07:04.279 --> 0:07:07.680 million dollars. By the late nineties, his funds had twenty 0:07:07.720 --> 0:07:13.200 two billion dollars in assets and annual returns averaging thirty again. 0:07:13.320 --> 0:07:15.840 Futures this morning are a little change straight. I had 0:07:15.880 --> 0:07:18.440 your latest local headlines plus a check of sports. This 0:07:18.560 --> 0:07:24.400 is Bloomberg. Thank you. Here in the six o seven 0:07:24.400 --> 0:07:26.840 on Wall Street where at seventy one degrees in Central Park. 0:07:26.880 --> 0:07:29.360 We've got a downtree in Yonker's North found Sawmill and 0:07:29.440 --> 0:07:32.000 McClean Avenue. Will tell you more in traffic First, Michael 0:07:32.000 --> 0:07:35.800 Barr's got more primary results. Good morning, Michael, Good morning, Nathan. 0:07:35.880 --> 0:07:39.640 As mentioned, redistricting led to Jerry Nadler beating longtime ally 0:07:39.800 --> 0:07:44.840 Carolyn Maloney in New York's most watch congressional Democratic primary race. 0:07:45.160 --> 0:07:49.320 Bloomberg National political correspondent Gregor recording, there are in every 0:07:49.400 --> 0:07:53.600 after every redistricting cycle, after the maps get redrawn every decade, 0:07:53.800 --> 0:07:57.000 there are a number of these incumbent versus incumbent matchups, 0:07:57.000 --> 0:08:00.600 but I can't remember any ever that had been as 0:08:00.680 --> 0:08:04.560 big as this one In other contests. In a Republican 0:08:04.680 --> 0:08:08.680 race in Western New York to replace GUP Representative Chris Jacobs, 0:08:08.800 --> 0:08:12.040 Nick Langworthy won the primary in New York's re drawn 0:08:12.120 --> 0:08:16.240 twenty third district. Langworthy, new York's Republican Party chair, beat 0:08:16.240 --> 0:08:23.080 Buffalo businessman Carl Palladinot eight percent. Palladino has said controversial comments, 0:08:23.080 --> 0:08:25.520 including that Adolf Hitler was the kind of leader we 0:08:25.560 --> 0:08:29.640 need today because of visibility to rally crowds. Jacobs decided 0:08:29.640 --> 0:08:32.360 not to seek another term after backlash from his own 0:08:32.400 --> 0:08:35.680 party for voicing support for an assault weapons ban following 0:08:35.679 --> 0:08:38.480 a racist mass shooting in his hometown of Buffalo and 0:08:38.559 --> 0:08:43.079 May In Western New York, Republican Joe Simpolinski beat Democrat 0:08:43.360 --> 0:08:46.600 Max Delapia to serve out the rest of the year. 0:08:46.720 --> 0:08:50.080 In New York's twenty three district fifty three to forty 0:08:50.200 --> 0:08:54.199 seven percent is to replace GOP representative Tom Reid, resigned 0:08:54.400 --> 0:08:57.400 after he was accused of sexual misconduct. It has been 0:08:57.480 --> 0:09:00.960 six months since the Russian invasion began in Ukrain. Yesterday, 0:09:01.040 --> 0:09:03.960 Russia called for an emergency meeting of the UN Security Council, 0:09:04.280 --> 0:09:08.360 voicing concerns over the situation at Ukraine's occupied nuclear power plant. 0:09:08.640 --> 0:09:11.160 There are major worries that a nuclear disaster could take 0:09:11.160 --> 0:09:14.240 place due to the fighting you went under Secretary Rosemary 0:09:14.280 --> 0:09:18.800 to Carlo. To paraphrase the Secretary General's blunt warning, any 0:09:18.840 --> 0:09:24.800 potential damage to Zapparsia is suicidal. The uns Rosemary to Carlo. 0:09:25.240 --> 0:09:28.000 A jury returned guilty verdicts for two men accused of 0:09:28.000 --> 0:09:30.520 trying to carry out a kidnapping plot against Michigan Governor 0:09:30.559 --> 0:09:33.600 Gretchen Whitmer. Jury and Grand Rapids handed down the verdicts 0:09:33.600 --> 0:09:36.680 against Adam Fox and Barry Croft Jr. U S Attorney 0:09:36.720 --> 0:09:40.160 Andrew Burch. No public officials should have to contend with 0:09:40.160 --> 0:09:44.400 what Governor Whitmer contended with here all over elected officials, 0:09:45.040 --> 0:09:47.680 every one deserves to be able to live in safety, 0:09:47.760 --> 0:09:51.240 not of fear. US Attorney Andrew Burge. Global News twenty 0:09:51.280 --> 0:09:53.880 four hours a day on here and on Bloomberg Quick Take, 0:09:53.880 --> 0:09:56.840 powered by more than twenty seven hundred journalists and analysts 0:09:56.840 --> 0:09:58.839 in more than a hundred twenty countries. And Michael bar 0:09:58.960 --> 0:10:07.160 and this is Bloomberg. Nathan, appreciate it, Michael, And now 0:10:07.200 --> 0:10:09.160 it's almost six ten on Wall Street Time and checking 0:10:09.200 --> 0:10:12.040 with John stash Are for the Bloomberg Sports Upday. All right, Nathan, 0:10:12.080 --> 0:10:15.199 The Yankees went into Sunday's game just four and fourteen 0:10:15.200 --> 0:10:17.199 in August, no team in baseball had a worst record. 0:10:17.240 --> 0:10:20.160 They have, apparently right in the Ship beat the Blue 0:10:20.200 --> 0:10:22.760 Jay Sunday beat the Mets. Monday, Aaron Judge at the 0:10:22.800 --> 0:10:26.880 home run and last night at the stadium, that is hot. 0:10:27.360 --> 0:10:33.280 Let us far got oh what a judge and flo 0:10:34.440 --> 0:10:38.120 it went over the grab stand and way up in 0:10:38.200 --> 0:10:45.280 the bleachers. All right, there comes the judg forty eight times. 0:10:45.320 --> 0:10:46.760 And how we've heard that on w f A and 0:10:46.840 --> 0:10:48.960 Yanks led tune nothing Mets time the game. Yanks went 0:10:49.000 --> 0:10:52.160 back ahead seventh inning. They won four to two Saint scores. Monday, 0:10:52.480 --> 0:10:54.640 thanks held on in the ninth as the Mets had 0:10:54.679 --> 0:10:57.360 the bases loaded. Both teams off tonight thanks to Marrow 0:10:57.360 --> 0:10:58.920 were in the West Coast trip in Oakland. The Mets 0:10:58.920 --> 0:11:01.160 will start a ten game home stand. They'll play Colorado 0:11:01.200 --> 0:11:04.080 the Atlanta Braves one again. Last night they've won thirteen 0:11:04.080 --> 0:11:06.840 and fifteen early two games behind the met But Kevina 0:11:06.920 --> 0:11:09.520 rant saga is over? Or is it? The Nets announced 0:11:09.559 --> 0:11:11.679 KD has let go of his trade demands. So he's 0:11:11.720 --> 0:11:13.880 staying and Brooke then, but how about play out with 0:11:14.000 --> 0:11:16.160 his coach Steve Nash the rant A set. He was 0:11:16.200 --> 0:11:18.840 willing to stay only if the Nets, Spider Nat and 0:11:18.960 --> 0:11:21.120 the John manager Sean Marks, which the Nets that they 0:11:21.120 --> 0:11:23.319 would not do season over for the liberty loss of 0:11:23.360 --> 0:11:25.440 the site of Game three of the w NBA playoffs 0:11:25.440 --> 0:11:29.400 with Chicago, John sta worth Burg sports all right, John, 0:11:29.480 --> 0:11:32.600 thank you. SMP futures down down one point to future 0:11:32.679 --> 0:11:36.000 is down twenty two, nastack futures down four points. A 0:11:36.000 --> 0:11:38.480 little changed across the board. The tenure treasury is up 0:11:38.520 --> 0:11:41.520 to thirty seconds, the yield three point zero three percent 0:11:41.880 --> 0:11:45.200 yield on the two year three to nine Nimex crude 0:11:45.600 --> 0:11:48.520 still higher, up one percent, ninety three cents to ninety 0:11:48.559 --> 0:11:51.920 four dollar sixty nine cents of barrel Comx gold little change, 0:11:51.960 --> 0:11:54.800 down thirty cents to seventeen sixty nine announced. The euro 0:11:55.720 --> 0:11:59.240 just below parody against the dollar four. We'll get more 0:11:59.280 --> 0:12:02.400 on these markets next with liz An Saunders of Charles Schwab. 0:12:02.559 --> 0:12:09.160 This is Bloomberg Bloomberg eleven three oh weather, sunshine and 0:12:09.320 --> 0:12:11.880 highs in the upper eighties today sunny, very warm tomorrow. 0:12:11.880 --> 0:12:14.880 The Higher nine mostly sunny Friday, but could see a 0:12:14.960 --> 0:12:17.319 late day shower a storm with a high near ninety degrees. 0:12:17.400 --> 0:12:23.400 Right now seventy one in Central Park Markets. Headlines and 0:12:23.520 --> 0:12:26.800 breaking news twenty four hours a day at Bloomberg dot Com, 0:12:26.920 --> 0:12:30.439 the Bloomberg Business Outland at Bloomberg Quick Tape. This is 0:12:30.480 --> 0:12:39.480 a Bloomberg business flash and I'm Karen Moscow and US 0:12:39.520 --> 0:12:42.400 stock index futures have been struggling for direction this morning 0:12:42.400 --> 0:12:44.920 as investors I guess the latest hankish noises from the 0:12:44.960 --> 0:12:48.200 Federal Reserve and mounting signs of a global economic slowdown. 0:12:48.480 --> 0:12:50.880 We checked the markets every fifteen minutes throughout the trading 0:12:50.960 --> 0:12:54.280 day on Bloomberg and again futures little change. The decks 0:12:54.320 --> 0:12:57.040 in Germany's down about two chants of upper sent ten. 0:12:57.120 --> 0:12:59.679 Your treasury up to thirty seconds here three point oh 0:12:59.720 --> 0:13:01.800 three set the yield on a two year three point 0:13:02.080 --> 0:13:05.320 nine percent. My nex Scrude oil is up seven tenths 0:13:05.360 --> 0:13:08.480 per center, sixty six cents and ninety cents of barrel 0:13:08.760 --> 0:13:11.520 comics gold is it will change At seventeen sixty one 0:13:11.559 --> 0:13:14.760 fifty announced the euro point nine nine four six against 0:13:14.760 --> 0:13:17.120 the dollar British found one point one seven nine two 0:13:17.160 --> 0:13:19.880 and the end one six point four one. Look at 0:13:19.880 --> 0:13:22.280 a bitcoin, it's down about seven tenths percent at twenty 0:13:22.320 --> 0:13:25.400 one thousand, three hundred dollars as a Bloomberg business flash. 0:13:25.400 --> 0:13:27.480 Now here's Michael Barr with Moore on what's going on 0:13:27.600 --> 0:13:30.480 around the world. Michael, thank you very much. Jaren. US 0:13:30.559 --> 0:13:34.040 Representative Charlie Chris has won the Democratic nomination for governor 0:13:34.080 --> 0:13:38.200 in Florida, putting him in position to challenge Republican incumbent 0:13:38.280 --> 0:13:41.880 governor around Descentis This fall, Chris defeated Nicki three, the 0:13:42.000 --> 0:13:47.280 state agriculture commissioner, to thirty five percent. In New York's 0:13:47.320 --> 0:13:52.400 congressional primaries, redistricting led to Representative Jerry Nadler beating another 0:13:52.440 --> 0:13:57.360 powerful Democratic Committee Chair, Caroline Maloney fifty five to in 0:13:57.440 --> 0:13:59.920 a litmus test of the overturning of Roe V. Wade. 0:14:00.040 --> 0:14:03.440 Mccrat Pat Ryan won a special election in the nineteenth 0:14:03.559 --> 0:14:07.320 district to replace Democrat Antonio Delgado, who became New York's 0:14:07.360 --> 0:14:12.000 Lieutenant Governor. Ryan with fifty beat Republican Mark Molinaro, who 0:14:12.000 --> 0:14:15.520 got eight percent. In baseball, the Yankees beat the Mats 0:14:15.559 --> 0:14:18.439 four two for two games, sweep with Series Red Sox Nationals, 0:14:18.440 --> 0:14:22.440 and he's lost the Orioles and Giants. One Global News 0:14:22.440 --> 0:14:25.560 twenty four hours a day on here and on Bloomberg Quicktake, 0:14:25.760 --> 0:14:28.800 powered by more than journalist and analysts more than a 0:14:28.880 --> 0:14:31.680 hundred twenty countries, by Michael bar This is Bloomberg. Nathan 0:14:31.760 --> 0:14:33.840 all right, Michael, thank you. In his six nineteen on 0:14:33.840 --> 0:14:37.400 Wall Street Live from the Bloomberg Interactive Broker Studios. This 0:14:37.520 --> 0:14:40.280 is Bloomberg Daybreak, and we're very pleased to be joined 0:14:40.280 --> 0:14:44.360 now by liz Anne Saunders, chief investment strategist at Charles Schwab, 0:14:44.440 --> 0:14:47.280 on a morning where investors have a lot to mull over. 0:14:47.480 --> 0:14:52.200 Liz Anne, good morning, signs of deterioration in the economy 0:14:52.440 --> 0:14:56.200 and a lot more hawkish talk ahead of Jackson Hall. 0:14:56.840 --> 0:15:00.760 How do you advise your clients through all that? Well, 0:15:00.800 --> 0:15:03.960 the economic data has been for the most part abysmal. 0:15:04.400 --> 0:15:07.400 The regional set surveys yes and peoplocal p M I 0:15:07.560 --> 0:15:10.240 yesterday has probably a lot of people on pins and 0:15:10.280 --> 0:15:13.200 needles regarding the I s M. Your five months in 0:15:13.200 --> 0:15:16.120 a row down in the l E I. I think 0:15:16.160 --> 0:15:19.960 that that does somewhat firmly excuse me a point to recession, 0:15:20.680 --> 0:15:24.080 but at this point I think recession or no recession 0:15:24.320 --> 0:15:28.000 is more of an academic debate. But there's no question 0:15:28.040 --> 0:15:30.680 that the economy has slowed. It's possible it could be 0:15:30.840 --> 0:15:35.360 rolling recessions across different segments of the economy at different times. 0:15:35.400 --> 0:15:39.080 But with the market having UH at least some case 0:15:39.120 --> 0:15:42.080 of the S and P tried to to broach its 0:15:42.360 --> 0:15:45.680 tunter day moving average. That failed, so some technicians saw 0:15:45.720 --> 0:15:48.400 that as a sign some measures a sentiment it gotten 0:15:48.400 --> 0:15:51.520 a little bit fraughty. So we've been saying, is first 0:15:51.520 --> 0:15:56.040 of all, maintain your discipline. We were suggesting definitely fade 0:15:56.160 --> 0:15:59.720 the lower quality areas that had rallied things like the 0:16:00.120 --> 0:16:04.720 stocks down the profitability spectrum into no profitability, but lean 0:16:04.840 --> 0:16:09.240 into the higher quality areas. So that's the approach we've 0:16:09.280 --> 0:16:11.320 been taking, at least for stock pickers, is to be 0:16:11.400 --> 0:16:14.720 very quality oriented. In terms of quality, does that mean 0:16:14.800 --> 0:16:17.920 things like megacap tech. We've seen a lot more of 0:16:17.960 --> 0:16:21.400 a focus there, particularly among hedge funds according to some 0:16:21.440 --> 0:16:24.840 analysts that that they're getting a lot more of a 0:16:24.880 --> 0:16:29.560 second look well megacap tech, that that's a descriptor for 0:16:29.640 --> 0:16:35.280 a group of large cap stocks. It doesn't automatically suggest quality. 0:16:35.360 --> 0:16:37.640 So even if you look at at what I often 0:16:37.680 --> 0:16:39.720 call the Super seven, and I post a chart on 0:16:39.760 --> 0:16:42.520 this couple of times a week on on Twitter, the 0:16:42.600 --> 0:16:46.360 Big seven names wide wide divergence in terms of how 0:16:46.360 --> 0:16:48.680 they've been performing over the past year or so, in 0:16:48.720 --> 0:16:51.760 particular during this latest rally. And if you were to 0:16:51.880 --> 0:16:56.040 screen on a number of different factors around profitability or 0:16:56.240 --> 0:17:00.400 balance sheet or free cash flow, you would see a 0:17:00.520 --> 0:17:03.960 big difference. So that that's the point about being factor based, 0:17:03.960 --> 0:17:07.520 as you're actually looking for certain characteristics as opposed to 0:17:08.080 --> 0:17:12.359 monolithically choosing either at the sector level or even a 0:17:12.720 --> 0:17:15.800 segment within a sector. I think this is the time 0:17:15.840 --> 0:17:19.560 you have to be discerning company by company, not be 0:17:20.040 --> 0:17:25.680 narrative based in terms of investing monolithically. Given the deterioration 0:17:25.720 --> 0:17:30.520 we've seen in the data, does Chairman Powell continue with 0:17:30.600 --> 0:17:34.520 a hawkish tone in Jackson Hole on Friday? Well if 0:17:34.880 --> 0:17:37.679 I don't know, honestly, but that's certainly what everybody's going 0:17:37.720 --> 0:17:40.480 to be watching for it. I'd also be looking to 0:17:40.520 --> 0:17:43.480 see whether he pushes back on the recent loosening of 0:17:43.520 --> 0:17:46.520 financial conditions, and they've started to tighten a little bit 0:17:47.440 --> 0:17:50.880 very recently, but you would seem that loosening in financial conditions. 0:17:50.920 --> 0:17:53.840 I would expect him maybe to at least subtly push 0:17:53.920 --> 0:17:56.600 back on this notion of a of a pivot, that 0:17:56.760 --> 0:18:00.399 that's less in the current narrative right now than it 0:18:00.560 --> 0:18:04.520 was a few weeks ago. But I always found the 0:18:04.800 --> 0:18:08.040 pivot argument to be odd in the sense that a 0:18:08.200 --> 0:18:11.720 pivot to the extent, you know, a FED watcher or 0:18:11.760 --> 0:18:15.480 market participant was viewing pivot as going from rate hikes 0:18:15.520 --> 0:18:19.680 to rate cuts. In my mind, the only condition under 0:18:19.680 --> 0:18:22.200 which the FED would so quickly move to a rate 0:18:22.240 --> 0:18:25.200 cutting mode would not just be a retreat and inflation. 0:18:25.560 --> 0:18:27.760 I think that would damage their credibility. If they went 0:18:27.800 --> 0:18:30.840 to rate cutting simply because inflation has started to come down, 0:18:31.440 --> 0:18:35.080 that would only, I think, be preceded by a much 0:18:35.359 --> 0:18:38.240 more significant worsening in the economy than what we already 0:18:38.240 --> 0:18:41.760 have here, and or a much more significant worsening in 0:18:41.800 --> 0:18:45.880 the labor market. So a pause at some point as possible, 0:18:45.880 --> 0:18:48.199 but a pivot toor rate cuts that's a that's a 0:18:48.240 --> 0:18:52.639 pretty dower economic backdrop in our view. Only about thirty 0:18:52.640 --> 0:18:54.479 seconds left here Louisianne. But what do you think the 0:18:54.480 --> 0:18:59.920 Fed needs to see to move toward that potential pause. Well, 0:19:00.080 --> 0:19:03.160 they have said they want to see a series of 0:19:03.240 --> 0:19:06.800 lower um inflation readings, and we have another CPI between 0:19:06.840 --> 0:19:09.200 now and the f MC meeting. Mester has called it 0:19:09.400 --> 0:19:12.639 several months um. But I also think it would have 0:19:12.720 --> 0:19:15.400 to be some deterioration in the labor market so that 0:19:15.600 --> 0:19:18.520 their dual mandate we're both in the spotlight, not just 0:19:18.600 --> 0:19:22.200 the inflation mandate, which is the current set of circumstances. 0:19:22.680 --> 0:19:25.080 Thanks so much. Listen again, great having on with us 0:19:25.119 --> 0:19:29.480 this morning. Liz Anne Saunders, chief investment strategist at Charles Schwab. 0:19:29.880 --> 0:19:32.840 Stay with Bloomberg Radio. Full coverage of Jackson Hole with 0:19:32.840 --> 0:19:35.800 Bloomberg Surveillance. They're going to be there tomorrow morning when 0:19:35.800 --> 0:19:38.560 the symposium kicks off, and of course Chairman poll speech 0:19:38.680 --> 0:19:41.959 Friday ten am Wall Street Time. Keep it right here 0:19:41.960 --> 0:19:44.720 on Bloomberg Radio. We'll have it covered all for you 0:19:44.880 --> 0:19:47.800 right here. SMP future is now little change, so are 0:19:47.840 --> 0:19:51.119 down futures and naz Dak futures. Ten. Your treasury is 0:19:51.200 --> 0:19:53.880 up one thirty second. The yield three point zero four 0:19:53.960 --> 0:19:56.600 percent yield on the two year three point to nine 0:19:57.720 --> 0:20:00.600 check bitcoin, why not down a half percent? One thousand 0:20:00.600 --> 0:20:08.399 faded sixty dollars. This is Bloomberg. Bloomberg eleven three oh 0:20:08.400 --> 0:20:12.159 weather sunshine oper eighties today, sunny Tomorrow, near ninety mostly 0:20:12.240 --> 0:20:14.280 sunny Friday, but could see a late day shower of 0:20:14.320 --> 0:20:18.080 thunderstorm Friday. Shigh your ninety degrees right now, seventy one 0:20:18.119 --> 0:20:25.479 in Central Park, Broadcasting live from the Bloomberg Interactive Broker 0:20:25.600 --> 0:20:29.000 Studio in New York. Bloomberg e living freedon to Washington, 0:20:29.080 --> 0:20:32.600 d C, Bloomberg nine one to Boston, Bloomberg one oh 0:20:32.720 --> 0:20:36.199 six one to San Francisco, Bloomberg nine sixty to the country, 0:20:36.320 --> 0:20:39.520 Sirius XM Chadle one nine and around the globe the 0:20:39.520 --> 0:20:45.600 Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak, 0:20:50.480 --> 0:20:52.840 six thirty on Wall Street. Good morning, I'm Nathan Hacker 0:20:53.080 --> 0:20:55.200 and I'm Karen Mousk. Yeah, we are just about three 0:20:55.200 --> 0:20:57.480 hours away from the open of US trading. Time for 0:20:57.520 --> 0:20:59.640 the five things that you need to notice start your day. 0:20:59.680 --> 0:21:03.600 Bron to you by Interactive Brokers. Interactive Brokers charges Martin 0:21:03.680 --> 0:21:06.000 loan race from two point three percent to three point 0:21:06.160 --> 0:21:09.000 three percent. Their clients can also earn extra income by 0:21:09.040 --> 0:21:11.880 letting their fully paid shares of stock rate subject to change. 0:21:12.000 --> 0:21:15.359 Learn more at ibk r dot com slash compare. First, 0:21:15.359 --> 0:21:17.560 a couple of key primary results from last night in 0:21:17.600 --> 0:21:20.720 New York. Representative Jerry Nadler one New York's congressional twelth 0:21:20.720 --> 0:21:24.520 and district. Over Ally, Caroline Maloney and Charlie christ will 0:21:24.560 --> 0:21:28.400 face Rhonda Santis in November after securing Florida's Democratic nomination 0:21:28.440 --> 0:21:30.679 for governor. Now, we'll bring you more primary results than 0:21:30.720 --> 0:21:32.399 a couple of minutes, Karen. But let's turn now to 0:21:32.440 --> 0:21:36.119 the Fed's annual Jackson Whole Economic Symposium. It starts tomorrow 0:21:36.359 --> 0:21:38.840 and culminates with the speech from j Powell on Friday. 0:21:39.040 --> 0:21:41.760 Cities Mohammed Appabi tells us what he expects from the 0:21:41.760 --> 0:21:45.280 FED chair. I think we're expecting something to bekish. Clearly, 0:21:45.680 --> 0:21:48.040 what the Fed is telling us is very different to 0:21:48.040 --> 0:21:50.600 what market is expecting. And you know, the market is 0:21:50.640 --> 0:21:53.199 saying rate cuts in twenty three and the FED is 0:21:53.240 --> 0:21:56.320 saying not yet. The City's Mohammed Appabie says he's not 0:21:56.320 --> 0:21:58.480 sure if we'll learn anything new from Powell this week, 0:21:58.760 --> 0:22:01.840 well ahead of Jackson Hole Nathan. Minneapolis Fed President Neil 0:22:01.880 --> 0:22:05.000 cash Cary is continuing as hawkish pivots, saying the Central 0:22:05.000 --> 0:22:10.359 Bank should tighten monetary policy. What inflation is or nine. 0:22:11.320 --> 0:22:15.560 We run the risk of un anchoring inflation expectations and 0:22:16.240 --> 0:22:18.840 leading to very bad outcomes that would cause us to 0:22:18.920 --> 0:22:21.840 have to be very aggressive vulcar esque to then re 0:22:21.920 --> 0:22:25.600 anchor them. We definitely want to avoid allowing that situation 0:22:25.720 --> 0:22:28.760 to develop. Minneapolis Fed President Ail cash Cary said the 0:22:28.840 --> 0:22:31.960 Fed must reduced inflation at two percent. Please stick with 0:22:32.000 --> 0:22:34.240 Bloomberg this week for a live coverage of the Jackson 0:22:34.280 --> 0:22:37.720 Hole Symposium. Bloomberg Surveillance will be there beginning on Thursday, 0:22:37.840 --> 0:22:40.159 and the corporate news down Karen Shares of Nordstrom are 0:22:40.200 --> 0:22:43.280 down nearly fourteen percent following its latest earnings report. In 0:22:43.280 --> 0:22:47.080 Bloomberg's Rnita Young has more live Ranita Nathan. Investors initially 0:22:47.119 --> 0:22:51.000 saw Nordstrom mass insulated by its affluent consumer base, but 0:22:51.080 --> 0:22:54.120 its outlook took a different story. As the retailer's rack 0:22:54.240 --> 0:22:57.679 business slows on lower demand and inventory build up. The 0:22:57.720 --> 0:23:01.000