Speaker 1: My from the Bloomberg and Directed Brooker Studios. This is
Speaker 1: Bloomberg Daybreak for a Tuesday, August sixteen two coming up.
Speaker 1: The shower stocks begin the day at three month highs apples.
Speaker 1: That's another date for workers to return to the office.
Speaker 1: It's primary day with key racist involving Liz Channion Wyoming
Speaker 1: and Sarah Palin in Alaska. And the d o J
Speaker 1: opposes the release of an affidavit in the search of
Speaker 1: Donald Trump's home. Stabbing issues cause headaches at New York
Speaker 1: City airports. Plus former Trump attorney Rudy Giuliani is the
Speaker 1: target of a criminal pro on Michael barn More, I'm
Speaker 1: trying statshout at sports Rock Night for New York baseball.
Speaker 1: The Yankees were shut out again. The Mets lost in
Speaker 1: Atlanta thirteen to one. That's all s. Trady ahead on
Speaker 1: Bloomberg day Break on Bloomberg eleven three on New York,
Speaker 1: Bloomberg one, Washington, d C. Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixty, San Francisco, Syrius Exam one nineteen and
Speaker 1: around the world down Bloomberg Radio dot Com and via
Speaker 1: the Bloomberg Business app. Good morning, I'm John Tucker and
Speaker 1: I'm Karen Moscow and US dock index futures are lower
Speaker 1: this morning. We're coming up to six oh one on
Speaker 1: Wall Street, and we check the markets every fifteen minutes
Speaker 1: throughout the trading day. On bloomberg S and P Future
Speaker 1: is down about eight points down. Future is down thirty
Speaker 1: four and NASDACK futures down twenty eight. The decks in
Speaker 1: Germany is up six tenths of a percent. Penn your
Speaker 1: treasury down three thirty seconds. You have two point eight
Speaker 1: zero percent. They yield on the two year three point
Speaker 1: two zero percent. Night Max Screwed oil is down about
Speaker 1: half percent, or forty seven cents at eighty eight dollars
Speaker 1: cents a barrel call. Make School down four ten percent
Speaker 1: or seven dollars twenty cents at seventeen ninety ninety announced
Speaker 1: and Bitcoin and this morning is that will change at
Speaker 1: twenty four thousand, eighty dollars. John and Karen, we begin
Speaker 1: today's session with US docks at a three month high.
Speaker 1: The s game for four straight weeks. It's the longest
Speaker 1: winning streak this year. Hex Smith is two investment officer
Speaker 1: at Haverford Trust. Now I think it's anticipating that we
Speaker 1: are beyond peak inflation um and that a lot of factors,
Speaker 1: including the federal reserves policy, is starting to unwind inflation
Speaker 1: and and perhaps perhaps the said might get lucky and
Speaker 1: engineer is somewhat soft landing for a trust. Hank Smith
Speaker 1: says the next batch of retail earnings could be key
Speaker 1: for the markets, and John, we start to hear from
Speaker 1: some of those retailers today right now this morning, home
Speaker 1: Depot reporting second quarter comparable sales that beat analysts estimates.
Speaker 1: Those earnings are just crossing the Bloomberg Walmart reports in
Speaker 1: less than an hour from now, and we get a
Speaker 1: preview from Bloomberg's Jeff Bellinger. The giant retailer issued a
Speaker 1: business update less than a month ago in which it
Speaker 1: lowered its profit outlook, so Bloomberg Intelligence says today's really
Speaker 1: should hold few surprises. Inflation has been a significant headwind
Speaker 1: for Walmart, causing customer mers to spend more on food
Speaker 1: and less on discretionary items. The I says a sales
Speaker 1: event in June may have helped to reduce some inventory,
Speaker 1: but Walmart will likely need further markdowns to move over
Speaker 1: stocks of clothing. Jeff Bullinger bloom Bird day Break. All right,
Speaker 1: thanks Jeff on Wall Street. We're learning what some of
Speaker 1: the world's biggest money managers are doing with their stock portfolios.
Speaker 1: Let's get the latest live from Bloomberg's Nita Young. Good
Speaker 1: morning Nita, Good morning John. During the latest quarter, Stanley
Speaker 1: Drucon Miller's family office offloaded Big Tech, selling its entire
Speaker 1: one million dollar position in Amazon and scaling back as
Speaker 1: steak in Microsoft. Sorel's fund Management boosted its steaks in
Speaker 1: Amazon Salesforce and Alphabet. Berkshire Hathaway eliminated a Verizon steak
Speaker 1: and boosted other bets, including Occidental Petroleum, increasing its investment
Speaker 1: there more than it did in any other firm. But
Speaker 1: Apple remains Berkshire's largest holding, and Michael Berry's Scion Asset
Speaker 1: Management exited all equity positions except one it added, private
Speaker 1: prison operator Geo Group, Scion's only stockholding as of the
Speaker 1: end of June. Live in New York. I'm really need
Speaker 1: a Young. Bloomberg Daybreak, all really need to thank you
Speaker 1: Apple making news this morning. Bloomberg News has learned the
Speaker 1: company has laid off many of its contract based recruiters
Speaker 1: in the past week. It's part of a push to
Speaker 1: rain and the tank giants hiring and spending. And in
Speaker 1: another development, Apple has set a September fifth deadline for
Speaker 1: corporate employees to be in the office at least three
Speaker 1: days a week. COVID spikes disrupted Apple's previous attempts to
Speaker 1: have workers back in the office. And let's turn to
Speaker 1: politics now, where it's primary day in Wyoming and Alaska
Speaker 1: Representative Liz Cheney bracing for a loss, while former vice
Speaker 1: presidential candidate Sarah Palin looks at stage of political comeback
Speaker 1: and Bloomberg's Amy Morris has more from oursroom. In Washington,
Speaker 1: Cheney is all but certain to lose to challenger Harriet Hageman,
Speaker 1: who has former President Trump support and leads by nearly
Speaker 1: thirty percentage points in the polls. Like Cheney, supporters say
Speaker 1: she's already charting a rebound. In Alaska, former Governor Sarah
Speaker 1: Palin is trying for a comeback in the open race
Speaker 1: for the state's sole seat in Congress. Her critics say
Speaker 1: she's been more visible on right wing TV in the
Speaker 1: Lower forty eight than in her own home state, but
Speaker 1: she has Trump's endorsement. Also in Alaska, Senator Lisa Murkowski
Speaker 1: is in a re election fight against Trump supported candidate
Speaker 1: Kelly Shabaka in Washington. I'm maybe Morris Bloomberg Daybreak right, Amy,
Speaker 1: thank you, but we also have news about Donald Trump's
Speaker 1: battle with a Justice to Herman. The d o J
Speaker 1: says it's against the release of an affidavit justifying a
Speaker 1: search warrant for documents that the former president's Florida home.
Speaker 1: The search warrant itself has been released, but the Justice
Speaker 1: Department says the affidavit includes sensitive information about the investigation. St.
Speaker 1: John's University law professor John Barrett says it's a standard
Speaker 1: move by the d o J. It's the details of
Speaker 1: what surveillance information, what inform and information, what prior course
Speaker 1: and dealings led the government to believe that there were
Speaker 1: classified documents in mar Laga, m That's all highly confidential
Speaker 1: and actively part of an investigation. St. John's University law
Speaker 1: professor John Barrett was a guest on Bloomberg's Sound on
Speaker 1: Catch the program weekdays at Philli PM Eastern on Bloomberg
Speaker 1: Radio and Geopolitics. Also in focus this morning, China says
Speaker 1: it's going to fight back against the latest congressional visit
Speaker 1: to Taiwan. Let's get more from Bloomberg's and Baxter. It
Speaker 1: says it will increase patrols both air and see to
Speaker 1: provide a resolute response. In an exclusive interview with Bloomberg
Speaker 1: editor in chief John Mickelswaite, Singapore Deputy Prime Minister Lawrence
Speaker 1: Wang says China and the US mistakenly could sleepwalk into
Speaker 1: a conflict. We are starting to see a series of
Speaker 1: decisions being taken by both countries that will lead us
Speaker 1: into more and more dangerous territory. Wang says neither side
Speaker 1: wants open conflict, but it's very concerned a mistake could
Speaker 1: happen in San Francisco. I'm at Baxter Bloomberg Gay break
Speaker 1: all right, and thank you for watching shares of Home
Speaker 1: Depot this morning up nine tenths of a percent and
Speaker 1: early trading after its earnings crossed the Bloomberg and reported
Speaker 1: second quarter comps, sales that beat analysts estimates, and straight
Speaker 1: to hand your latest local headlines plus the check of sports,
Speaker 1: and this is Bloomberg. Thanks Karen six O seven on
Speaker 1: Wall Street tend to bring in Michael Barr to find
Speaker 1: out what else is going on in New York and
Speaker 1: around the world. Chah, thank you very much, sir. It
Speaker 1: is back to normal this morning. But yesterday travelers that
Speaker 1: New York City area airports were sold by the f
Speaker 1: a A to expect delays because of airline staffing shortages.
Speaker 1: Staffing at a facility that manages the airspace for all
Speaker 1: three major New York airports is said to be the problem.
Speaker 1: The f a A leader tweeted that the problem had
Speaker 1: been solved, but not soon enough for these people. They
Speaker 1: were grounded. Maybe we'll start driving, Maybe that'll be better.
Speaker 1: Maybe we'll see. With the industry struggling with pent up
Speaker 1: demand for travel and a system that's understaff, post COVID airports,
Speaker 1: blame the airlines, and the airlines blame the f a A.
Speaker 1: Prosecutors in Atlanta have told Rudy Giuliani's lawyers that he
Speaker 1: is a target of their criminal investigation in the possible
Speaker 1: illegal attempts by then President Donald Trump and others to
Speaker 1: interfere in the general election in Georgia. Giuliani says, you
Speaker 1: do this to a lawyer, we don't have America anymore.
Speaker 1: Russia and Ukraine blame each other for the renewed shelling
Speaker 1: near a nuclear power plant in western Ukraine. State Department
Speaker 1: spokesperson Ned Price says the US is closely monitoring the
Speaker 1: activity at the plant. We believe that the fighting there
Speaker 1: is dangerous, it's irresponsible, and we do continue to urge
Speaker 1: into all military operations out of near Ukraine facilities in
Speaker 1: the return of full control of those facilities. Ukraine State
Speaker 1: Department spokesperson Ned Price. Ukrainian President voladimir's Lensky renewed his
Speaker 1: call for fresh sanctions against Moscow. The efforts continue to
Speaker 1: bring w n B A star Britney Grinder and fellow
Speaker 1: American detainee Paul Wheeland back from Prussia. Grinder's attorneys have
Speaker 1: filed an appeal who was recently sentenced to nine years
Speaker 1: in prison in Russia. Bill Richardson, who has worked in
Speaker 1: hostage negotiations through his position at the Richardson Center for
Speaker 1: Global Engagement, says he has talked to both sides. It
Speaker 1: basically says the legal process is over except for the appeal,
Speaker 1: and it's reasonable to have this appeal nine years sentence
Speaker 1: in a penal Connolly now there can be negotiations between
Speaker 1: the United States and Russia. Bill Richardson believes Grinder's legal
Speaker 1: team has been effective global news twenty four hours a
Speaker 1: day on air and on Bloomberg Quick Take power by
Speaker 1: more than journalists analysts more than a hundred, twenty countries.
Speaker 1: Michael Barr, this is Bloomberg, John, Michael, thank you. It's
Speaker 1: not sixteen out of Wall Street. Best time for the
Speaker 1: Rubert Sports Up, johns Seth Show. All right, John's more
Speaker 1: than just a little slump down for the Yankees eleven
Speaker 1: and twenty one over their last thirty two games to
Speaker 1: and ten in their last twelve. Shout out four times,
Speaker 1: including Sunday night in Boston and again last night at
Speaker 1: the Stadium Tampa Bay. Who's five pitchers and one four nothing,
Speaker 1: took advantage of an Aaron Hicks misplay and center field
Speaker 1: to score one run, then scored three more with two
Speaker 1: outs of the ninth inning. Things look bleak, and yet
Speaker 1: Aaron Boone. Ever, the optimists, sure there's some good things happening.
Speaker 1: Our starters continue to really throw the ball well. A
Speaker 1: number of guys out of the pen um, you know,
Speaker 1: even though louse struggle tonight, are are throwing the ball. Well. Um,
Speaker 1: we just gotta get some guys on tracked offensively right
Speaker 1: now and and get guys that should be key contributors
Speaker 1: contributing like they're capable of. Hicks has been a real
Speaker 1: problem five for his last fifty three Yanks had one
Speaker 1: scoring is right. Last night, bases loaded fourth inning, Hicks
Speaker 1: hit into an inning ending double play. The Mets was
Speaker 1: lopside and loss of the season thirteen to one. In Atlanta,
Speaker 1: the Braves at three home runs, the top two in
Speaker 1: their order, Ronald Kuna and Dance Preas wants and combined
Speaker 1: for six hits six rb I seventh trade win for
Speaker 1: Atlanta backed within four and a half of the mets
Speaker 1: eighty win of the year for the Dodgers, they won
Speaker 1: thirteen and fourteen. That's after learning the Walker Bueller, who
Speaker 1: was fourth in the Cy Young voting last years, having
Speaker 1: season ending elbow surgery. Texas Rangers fired their manager, Chris Woodward.
Speaker 1: Rangers having a rough year after spending a lot in
Speaker 1: the off season. Tiger Woods will meet today without twenty
Speaker 1: members of the PG eight tour. I pepped off on
Speaker 1: how to make the tour better and fight off the
Speaker 1: challenge from the new Live Tour. Pete Carill has died
Speaker 1: at ninety two. The Hall of fame basketball coach at
Speaker 1: Princeton for twenty nine years. He won thirteen IVY League championships.
Speaker 1: John Stashward, Bloomberg Sports. John, all right, thanks John, hand
Speaker 1: ahead of the cashow on Wall Street. We're looking at
Speaker 1: futures right now, even the red the down, futures down
Speaker 1: thirty two points, spe Mini futures eight point slower. And
Speaker 1: then I say futures right now they are down thirty
Speaker 1: three points. Not make screwed down forty two sons of
Speaker 1: barrel at eighty eight nine. You're listening to Bloomberg Daybreak
Speaker 1: and just ahead, well preview earnings from Walmart breakdown some
Speaker 1: of the other retailers reporting today. We'll speak with John
Speaker 1: Edwards of Bloomberg News. You're listening to Daybreak, markets, headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Bloomberg Business at and at Bloomberg Quick Tape.
Speaker 1: He's a Bloomberg Business lash and I'm Karen Moscow. And
Speaker 1: we continue to watch shares of home Depot this morning.
Speaker 1: They have turned lower, now down one point seven per cent.
Speaker 1: Home Depot reported second quarter comp sales that beat analysts estimates,
Speaker 1: but it did say that Colm sales for the year
Speaker 1: could just meet what analysts are looking for. Futures this
Speaker 1: morning are lower. SMP Future is down about ten points down,
Speaker 1: futures down fifty seven and as day a few years
Speaker 1: down thirty six. The DACKS in Germany is up about
Speaker 1: half percent. Ten year treasury down to thirty seconds yield
Speaker 1: two point seven nine percent yield on a two year
Speaker 1: three point to zero percent. NIMEX screwed oil is down
Speaker 1: six tents percent or fifty five cents at eighty eight
Speaker 1: dollars eighty five cents of Arrol Comic School down four
Speaker 1: tenths per cent or seven dollars sixty cents A seventy announced.
Speaker 1: The euro one point one four zero against the dollar,
Speaker 1: British found one point to zero to three and again
Speaker 1: at one thirty four point one one. And look at
Speaker 1: a bitcoin it is it'll change at twenty four thousand,
Speaker 1: eighty dollars. That's a bloomberg business flash. Now here's Michael
Speaker 1: Barrow with more on what's going on around the world.
Speaker 1: Michael Karen, thank you very much. The Justice Department Center
Speaker 1: opposes the release of an FBI f A David justifying
Speaker 1: to search for and used to remove documents from former
Speaker 1: President Donald Trump's Marrow logo home in Florida. Last week,
Speaker 1: the do o J asked the judge to keep the
Speaker 1: filing sealed due to the investigation that implicates national security.
Speaker 1: It is primary day in Wyoming and Alaska. Republican congress
Speaker 1: Womanalist Cheney is fighting to keep her seat after voting
Speaker 1: to impeach Trump. In baseball, the slumpy Yankees lost with
Speaker 1: the Rays for zip the Braves, oh mind, they put
Speaker 1: a what four and y whipping on the Mets thirteen one.
Speaker 1: The Nationals, Orioles and Giants won the A's lost. Global
Speaker 1: news twenty four hours a day on air and on
Speaker 1: Bloomberg Quick Day bower by more than dred journalists and
Speaker 1: analysts more than a hundred twenty countries. How Michael Barr,
Speaker 1: this is Bloomberg, John, Michael, thank you. It is now
Speaker 1: five six twenty on Walster. We're live from the Bloomberg
Speaker 1: interad to Broker Studios. This is Bloomberg Daybreak. Well, analysts
Speaker 1: are seeking clues about how storing inflation is going to
Speaker 1: impact spending during the rest of the year. Retail earnings
Speaker 1: on Tap we we just got home Depot Walmart is
Speaker 1: going to report fiscals or second quarter results before the
Speaker 1: market opened this morning. And joining us now with everything
Speaker 1: retail is John Edwards, us consumer team leader. Let's start
Speaker 1: off with a place where I've yet to buy a
Speaker 1: two by four that isn't warped. They're still buying at
Speaker 1: home Depot. It looks that way. Yeah, there were some
Speaker 1: concerns that the housing slowdown was going to affect Home
Speaker 1: Depot's results, but it turns out that, you know, they
Speaker 1: beat expectations for the quarter, they reaffirmed their expectations for
Speaker 1: the year, and it seems that home improvement spending is
Speaker 1: still holding up. So it it looks like people are
Speaker 1: countering that home sales slow down by trying to fix
Speaker 1: up their homes to make them more appealing in the
Speaker 1: market that's still out there. Okay, um, let's head to
Speaker 1: uh number one retailer, Walmart, and this is a story
Speaker 1: I would imagine about margins. Are people buying stuff that
Speaker 1: they need or stuff that they don't necessarily need with
Speaker 1: higher margins? Now that yeah, that's exactly it. Walmart issued
Speaker 1: a warning in July late July saying that it's the
Speaker 1: mix of its sales was going to hurt its margins
Speaker 1: because because people were backing away from discretionary purchases of
Speaker 1: higher margin items like electronics and uh, you know, other
Speaker 1: discretionary goods and spending more on food and fuel, which
Speaker 1: have lower margins. So the figure to watch is pent
Speaker 1: that's the current estimate for their gross margin for the
Speaker 1: second quarter, and we'll find out at seven o'clock if
Speaker 1: they hit that. Well at the top line, but people
Speaker 1: are still I mean, sales are actually increasing. Do I
Speaker 1: have that right? That's exactly right. Uh, you know what,
Speaker 1: when they issued that profit warning, they also said that
Speaker 1: their sales would actually be higher than expected. And uh, again,
Speaker 1: the problem is not so much sales overall as the mix.
Speaker 1: So uh, they're selling a lot of groceries, um, you know,
Speaker 1: a lot of fuel at their their gas stations, but
Speaker 1: those items have lower profit margins for them, and so
Speaker 1: that's what's hurting their profits. Do these places have a
Speaker 1: lot of stuff in the warehouses that they got to
Speaker 1: get rid of? Absolutely? Yeah, well they you know, Walmart
Speaker 1: and other retailers tried to stock up a lot, you know,
Speaker 1: during the during the pandemic, the height of the pandemic
Speaker 1: because of those supply chain problems, that we were seeing
Speaker 1: and uh, in some ways they might have been too
Speaker 1: successful at that. You know, they stocked up on a
Speaker 1: lot of things that people were wanting back in the
Speaker 1: height of the the pandemic, and uh, now that people
Speaker 1: have shifted their their spending, uh, they're stuck with a
Speaker 1: lot of goods that they need to move and so
Speaker 1: they've had to uh bring in bigger discounts on those things,
Speaker 1: and that again is hurting margins even more. Uh it's
Speaker 1: back to school. Are they also preparing for um, you know,
Speaker 1: Halloween and Christmas even absolutely? Yeah, yeah they are. They're
Speaker 1: getting ready. You know, Halloween stuff is probably already at
Speaker 1: least in the warehouses, if not starting to hit the shelves,
Speaker 1: and uh yeah, they want to be ready for the
Speaker 1: Christmas season as well. But again, you know, the concern
Speaker 1: right now is not so much being fully stocked. I
Speaker 1: think they feel like they're their shelves will be full enough. Uh,
Speaker 1: it's getting rid of those uh that excess inventory. Okay,
Speaker 1: so that means I can go in and get a
Speaker 1: good discount, right if I want to buy something that
Speaker 1: nobody else wants record that's exactly a yeah, how much
Speaker 1: is that going to impact the margin their their profitability
Speaker 1: going forward. Uh, well, it's it's certainly. Again they issued
Speaker 1: a warning for the full year, so they expect that
Speaker 1: to hurt their profits through the rest of their fiscal year. Uh.
Speaker 1: And we'll see what the recovery is like. And we'll
Speaker 1: we'll also see if they managed to exceed expectations their
Speaker 1: lowered expectations. The way Home Depot managed to beat their estimates.
Speaker 1: As Bell weathers, what does this all tell us the
Speaker 1: bottom line about the American consumer right now? Well, it
Speaker 1: it tells us that, you know, there is actually some
Speaker 1: consumer strength out there. It's it's just you know, a
Speaker 1: matter of you know, we I mean, we see that
Speaker 1: obviously inflation is hitting people and and you know, sort
Speaker 1: of shifting them away again from those sort of discretionary,
Speaker 1: big ticket purchases. But people are still employed, you know,
Speaker 1: unemployment is low and uh so people do have money
Speaker 1: to spend. It's just they're spending it more on essentials
Speaker 1: like like food and uh and fuel. John, a pleasure,
Speaker 1: appreciate it. Thanks for stopping buying this morning. John Edwards,
Speaker 1: the U S Consumer team leader here at Bloomberg. Again,
Speaker 1: we're waiting for Walmart earnings this morning before the opening
Speaker 1: bill on Wall Street. Home Depot did report comparable sales
Speaker 1: for the second quarter that did beat the average analysts estimate.
Speaker 1: Head of the cash open on Wall Street. Looking at
Speaker 1: futures right now, they're in the red. The down futures
Speaker 1: fifty one points lower, smp E many futures there down
Speaker 1: seven points, and then as day futures right now twenty
Speaker 1: four points lower. As far as yields go, the ten
Speaker 1: year yield to seventy nine, the two year at three
Speaker 1: twenty and night nex crew Dow eight two A barrel.
Speaker 1: You're listening the Bloomberg and just a haad top stories.
Speaker 1: You're listening to Bloomberg Daybreak, broadcasting live from the Bloomberg
Speaker 1: Interactive Broker's studio in New York. Bloomberg E Living Freedom
Speaker 1: to Washington, d C, Bloomberg to Boston, Bloomberg one oh
Speaker 1: six one, does San Francisco, Bloomberg nine sixty to the country,
Speaker 1: Sirius xm ch A one nine and around the globe,
Speaker 1: the Bloomberg Business and Bloomberg Radio dot Com. This is
Speaker 1: Bloomberg Daybreak. It's there's thirty on Wall Street. Good Morning,
Speaker 1: I'm John Tucker and I'm Karen Moscow. We are just
Speaker 1: about three hours away from the open of US trading time.
Speaker 1: To the five things that you need to notice start
Speaker 1: your day, Bronzie, you buy Interactive Brokers. Interactive Brokers Global
Speaker 1: Analysts helps you find a global investment opportunity. Should diversify
Speaker 1: your portfolio and discover undervalued companies that may have greater
Speaker 1: growth potential. Try i v k our Global Analysts today
Speaker 1: at ib k R dot com slash g A. First,
Speaker 1: we begin today with stocks at a three month high.
Speaker 1: That's just find concerns over inflation and a potential recession.
Speaker 1: Julie Beale's portfolio manager at Kane Anderson Rudnick. The ways
Speaker 1: that you can kind of stay out of trouble, I
Speaker 1: think is investing in businesses that typically just serve other businesses.
Speaker 1: And I like software because they have high levels of
Speaker 1: recurring revenue and very good profitability. I think that makes
Speaker 1: them more durable. Julie b l with Kane Anderson Rudnick
Speaker 1: says it's crucial for the Fed to reign in inflation
Speaker 1: and to earnings. Now Home Depot reported sales above analysts
Speaker 1: estimates about these stock is down more than one percent
Speaker 1: we'rena hear from retail giant Walmart in about a half
Speaker 1: an hour and Bloomberg's Charlie Pellett as a preview. Analysts
Speaker 1: surveyed by Bloomberg's see Walmart reporting second quarter adjusted earnings
Speaker 1: for share of a dollar sixty three on revenue of
Speaker 1: one hundred fifty one point one billion dollars. Walmart's insights
Speaker 1: into shopper behavior will be under scrutiny, was analystsic clues
Speaker 1: about how soaring inflation will affect spending during the rest
Speaker 1: of the year. The retail giant cut ITTs earnings outlook
Speaker 1: three weeks ago in New York Charlie pet Bloomberg day Break,
Speaker 1: All right, turning, thanks Well this morning, we're learning of
Speaker 1: moves from the world's biggest money managers on Bloombergy's Renny
Speaker 1: to Young joins us Live with more. Good morning Nia,
Speaker 1: Good morning Karen. During the latest quarter, Stanley drugon Miller's
Speaker 1: family office sold its entire one ninety nine million dollar position,
Speaker 1: and Amazon and scaled back at steak in Microsoft Sorol's
Speaker 1: fund management meanwhile boosted it states in Amazon salesforce and
Speaker 1: Alphabet Berkshire Hathaway eliminated a Verizon steak and boosted other bets,
Speaker 1: including Occidental Petroleum and Michael Berry's Scion. Asset Management exited
Speaker 1: all equity positions except private prison operator Geo Group. It's
Speaker 1: only stockholding as at the end of June. Live in
Speaker 1: New York. I'm gonna need a young Bloomberg Daybreak, all right, thanks,
Speaker 1: thanks for NTO. Those are the fine things you need
Speaker 1: to know to start your day. Brought to by it,
Speaker 1: brought you by Interactive Brokers, said ahead of the cash
Speaker 1: open on Wall Street, we have BAL futures down sixty
Speaker 1: two points. That's a decline of two tents of a percent.
Speaker 1: S and P evening futures down to eight that's down
Speaker 1: two tents of a percent. And the NaNs day futures
Speaker 1: right now twenty five points lower, two tenths of a
Speaker 1: percent lower. Just ahead, local stories. You're listening to Bloomberg Daybreak.
Speaker 1: It's not six thirty three on Wall Street. And let's
Speaker 1: bring in Michael barn how to tell us what else
Speaker 1: is going on in New York hand around the world.
Speaker 1: Thank you very much, sir. Things appear to be back
Speaker 1: to normal this morning. After travelers at New York City
Speaker 1: area airports, including JFK, LaGuardia and Newark were told by
Speaker 1: the f a A to expect delays because of airlines
Speaker 1: laughing shortages. Yesterday, this college student Mr Connector from Newark
Speaker 1: to get Syracuse. She told news for she had to
Speaker 1: spend the night at the airport. They only had like
Speaker 1: two hours at this airport and had to change channels
Speaker 1: and the next flight to Circus is in the morning.
Speaker 1: The problem was said to be staffing at a facility
Speaker 1: that manages the airspace for all three major New York airports.
Speaker 1: Rudy Giuliani is a target of the criminal investigation into
Speaker 1: possible illegal attempts by then President Donald Trump and others
Speaker 1: to interfere in the general election in Georgia. Prosecutors informed
Speaker 1: attorneys for the former New York mayor turned Trump defender. Meanwhile,
Speaker 1: Alan Weislberg, the Trump organization's longtime CFO, is said to
Speaker 1: be in Polee talks with state prosecutors to resolve tax
Speaker 1: for all charges. The effort to bring w NBA star
Speaker 1: Britney Grinder and fellow American detainee Paul Wheeland back from
Speaker 1: Russia is ongoing. Grinder is recently sentenced to nine years
Speaker 1: in prison in Russia. Her attorneys have filed an appeal.
Speaker 1: Bill Richardson, who has worked in hostage negotiations through his
Speaker 1: position at the Richardson Center for Global man Engagement, He
Speaker 1: says he has talked to both sides and it's optimistic
Speaker 1: both sides are moving in the right direction because they've
Speaker 1: done it before. Despite the fact that the relationship between
Speaker 1: the United States and Russia is toxic, Bill Richardson believes
Speaker 1: Griner's legal team has been effective. Businessman turned philanthropists Bill
Speaker 1: Gates spoke to South Korean lawmakers and Soul today. Gates
Speaker 1: called for more international efforts to prevent disease outbreaks like
Speaker 1: COVID nineteen, enhancing our global surveillance, having what I call
Speaker 1: a germ team three thousand people to tract things and
Speaker 1: stop outbreaks before they become pandemics. Philanthropist Bill Gates, the
Speaker 1: CDC has published new guidance on their website for Americans
Speaker 1: who have caught monkey poks. Among the new recommendations, the
Speaker 1: CDs e's his people who can isolate in another household
Speaker 1: should take steps to avoid spreading monkey box, like disinfecting
Speaker 1: door knobs and not sharing towns. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: to more than hundred twenty countries. How Michael Barr, this
Speaker 1: is Bloomberg, John, Michael, thank you, And it is now
Speaker 1: six thirty six on Wall Street. Time down for the
Speaker 1: Bloomberg Sports Uptape. Just John, Thanks John. The first place
Speaker 1: Matt's first place Yankees, and yet last night they both
Speaker 1: lost and by a combined score of seventeen to one.
Speaker 1: Mets pitching has been so good eight games in a
Speaker 1: row without allowing more than two runs. Just add back
Speaker 1: to back shutout to the Phillies with the Braves got
Speaker 1: three runs up Carlos Carrasco and then an eight run
Speaker 1: six thenning to win thirteen to one. And since thosing
Speaker 1: four or five at City Field, Braves have won seventh straight.
Speaker 1: They're back to within four and a half of the Mets.
Speaker 1: Three more games remain in this series. The Mets have
Speaker 1: lost in for the Louis Ski or May to a
Speaker 1: growing injury. The Manager's Buck Show, Walt, Let's just play
Speaker 1: without Shore, Yankees playing without Stanton m These guys are
Speaker 1: playing without people. I mean, it is what is Yeah,
Speaker 1: he's stable, so it was so it's Jake de Gram
Speaker 1: so it's uh, you know, Nemo has been down. Heels
Speaker 1: been down, I mean, and this is what it is.
Speaker 1: Yankee injuries have certainly hurt them. D J. Le May
Speaker 1: you're the latest to be out of the lineup. Still,
Speaker 1: it's remarkable how poorly the Yankees have played. That has
Speaker 1: been so good for three months. They've lost ten of
Speaker 1: last twelve. They've been shut out four times. Tampa Bay,
Speaker 1: who had a near perfect game on Sunday from Drew
Speaker 1: Asthmas and last night used five different pictures for nothing,
Speaker 1: went at the stadium a second straight start for Garret
Speaker 1: Cole where he got no run support and those two
Speaker 1: starts only allowed one run, but has no wins to
Speaker 1: show for it. Tampa Bay Bucks have signed veteran defensive
Speaker 1: lineman Carl Nassev. They had him once before. He's the
Speaker 1: one who a year ago, while a member of the Raiders,
Speaker 1: came out as the NFL's first opened the gay player.
Speaker 1: There was a report that Kevin Durant would retire before
Speaker 1: playing the in for the net KD posted on social
Speaker 1: media not true. He has said wants to be traded
Speaker 1: if the nets don't fire. Both coach Steve Nash and
Speaker 1: GM Sean Marks, John Stas Bloomberg Sports John all right, John,
Speaker 1: thanks a lot. It is not six thirty seven on
Speaker 1: Wall Street. Time to look at stocks some of the
Speaker 1: names that are moving in the pre market. And for
Speaker 1: that we are joined by Bloomberg's Tatiana, darry A and Tatiana.
Speaker 1: We had earnings from Home Depot and people are still
Speaker 1: buying two by four as I guess, yes, how deep
Speaker 1: a big mover this morning, down about two point seven
Speaker 1: percent now after earnings and really the details for the
Speaker 1: quarter looked good. Comparable sales growth, net sales EPs all
Speaker 1: beating estimates. But perhaps investors they're disappointed a little bit
Speaker 1: that the company didn't raise its full year guidance. It
Speaker 1: reconfirmed guidance also the twenty three outlook, and that you know,
Speaker 1: particularly those jitters as the slowdown in home sales and
Speaker 1: the broader economies and looming headwind for the entire industry
Speaker 1: and not just Home Depot. But another interesting nugget was
Speaker 1: the company said the average customer ticket was ninety dollars
Speaker 1: in the quarter. That's an increase of nine percent a
Speaker 1: year over year, but it's unclear if this is a
Speaker 1: factor of price increases or if customers are spending more
Speaker 1: because the number of customer transactions fell at three percent.
Speaker 1: So we'll be looking on the call to hear more details.
Speaker 1: But those are the two metrics that analysts and investors
Speaker 1: are looking to see how inflation is impacting shopping behavior.
Speaker 1: And of course this comes ahead of Walmart earnings that
Speaker 1: will tell us a lot more about the health of
Speaker 1: the U S consumer just in a few minutes from now. Okay,
Speaker 1: get back to the office. Let's let's start meeting in person.
Speaker 1: Um pandemic, Darling, Zoom, what's happening there? Yeah, the return
Speaker 1: to office is not very good for Zoom Communications at
Speaker 1: that stock is downe about three percent this morning after
Speaker 1: City downgraded the stock to sell. So this is the
Speaker 1: first actual celerating for the DOC shares you know are
Speaker 1: taking a beating, of course, but they also remain deep
Speaker 1: in the red year to date, and our only training
Speaker 1: at about one fifth of a percent of what they
Speaker 1: were at the height of the pandemic. I mean, the
Speaker 1: crux of the downgrade is the growth issue. Right as
Speaker 1: people are are going back to the office there's growing
Speaker 1: competition from services like Microsoft Teams and other macro related
Speaker 1: pressures that the tech giants have talked about. So all
Speaker 1: these issues you know, are looming over Zoom. They also
Speaker 1: have a phone business that they're trying to ramp up,
Speaker 1: but City is saying that is also, you know, facing
Speaker 1: rising competition and increasing turn rates. So the analysts they
Speaker 1: are not very sure that's gonna make a big difference
Speaker 1: for Zoom. So for now, the stock remains lower in
Speaker 1: the pre market and lower by about thirty eight percent
Speaker 1: here today. Okay, wells waiting for the number one retailer
Speaker 1: Walmart for its earnings. Bloomberg's Tatiana Darry, appreciate it. Thanks
Speaker 1: for joining us looking at stocks as hole right now,
Speaker 1: the future is slightly lower. The smp E many futures
Speaker 1: downline points, NASAIC futures down thirty points, that's down two
Speaker 1: tenths of a percent, and the down futures right now
Speaker 1: are lowered by sixty six points. And you're listening to
Speaker 1: Bloomberg Daybreak and the Bloomberg weather for it today for
Speaker 1: all media Roma just Ron Carolyn Sunshine, the high temperature
Speaker 1: in the mid eighties tonightly partly cloudy six to seventy tomorrow,
Speaker 1: partly the mostly Sunday chance of a few anternet showers,
Speaker 1: the high temperature eight markets, headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg
Speaker 1: Business Out and at Bloomberg Crick Jake, He's a Bloomberg
Speaker 1: Business Flash and I'm Karen Moscow and we are watching.
Speaker 1: Shares of Home Depot down more than two percent this morning.
Speaker 1: It's revenue growth talk estimates despite a slowdown in US
Speaker 1: home sales and the broader economy. Still it maintained its
Speaker 1: guidance for the rest of its fiscal year. Roger Federer
Speaker 1: back footwearmaker on Holding, raised its full year earnings forecast,
Speaker 1: ever seeing a boom in North American sales and reducing
Speaker 1: a dependence on air freight. US Dock Index futures are
Speaker 1: lower this morning, the dollar rising as investors Frederber signs
Speaker 1: of a sharp economic slowdown even as the Federal Reserve
Speaker 1: stays in the path of monetary tightening. We checked the
Speaker 1: markets every fifteen minutes throughout the trading day. On Bloomberg,
Speaker 1: gues and p Future is down about ten points down,
Speaker 1: features down seventy four and as DAG features down twenty
Speaker 1: eight the decks in Germany's up sixtents of a percent.
Speaker 1: Ten year treasury little change yeld two point seven eight percent.
Speaker 1: They yield on the two year three point zero percent.
Speaker 1: NIMEX screwed oil is down one percent and in our
Speaker 1: eighty seven cents now at eighty eight dollars, fifty three
Speaker 1: cents of barrel called makes school there is down four
Speaker 1: tens percent or seven dollars eighty cents at seventy announced.
Speaker 1: The Euro one point one to seven against the dollar,
Speaker 1: British bad one point two zero to one, a n
Speaker 1: month thirty four point one four. Bitcoins down at quarter percent.
Speaker 1: It's a eighteen dollars. That's a Bloomberg business flash. Now
Speaker 1: here's Michael Barr with more on what's going on around
Speaker 1: the world. Darren, thank you very much. The Justice Department
Speaker 1: is opposing calls to unseal the AFA. David's supporting the
Speaker 1: search of former President Trump's Tomorrow Lago home. The o
Speaker 1: J has called a grand jury and has witnesses cooperating
Speaker 1: with its probe focused on the mishandling of those sensitive documents.
Speaker 1: Wyoming Congresswoman Liz Cheney, who is leading in the face
Speaker 1: of the January sixth riot investigation, is fighting to save
Speaker 1: hers seat in the House. Today, voters in Alaska as
Speaker 1: well as Wyoming are weighing in on the direction of
Speaker 1: the GOP primaries. In baseball, the slumping Yankees lost to
Speaker 1: the Rays for ZIP. The Braves pounded the Mets thirteen one.
Speaker 1: The Nationals, Orioles and Giants won the a's lost. Global
Speaker 1: news twenty four hours a day on air and on
Speaker 1: Bloomberg Quick Tank, powered by more than journalists, antialists, more
Speaker 1: than countries. Michael Barb, this is Bloomberg. Hearen all right, Michael,
Speaker 1: thank you. It is six forty nine on Wall Street.
Speaker 1: Return to news now in science and technology with the
Speaker 1: Bloomberg n j i T STEM Report, brought to you
Speaker 1: by New Jersey Institute of Technology. N j i T
Speaker 1: makes industry ready engineers and more than twenty fields. If
Speaker 1: it's engineering, it's at n j i T. Learn more
Speaker 1: at n j I T dot E d U. And
Speaker 1: here's let's making news in science, Technology, engineering, and math.
Speaker 1: The CDC has published new guidance on their website for
Speaker 1: Americans who have caught monkey poks among the new recommendations,
Speaker 1: The CDC says people who can't isolate in another household
Speaker 1: should take steps to avoid spreading monkeypoks, like disinfecting door
Speaker 1: knobs and not sharing towels. The agency also has updated
Speaker 1: their list of animals that can catch the virus to
Speaker 1: include dogs after researchers and France reported evidence suggesting a
Speaker 1: pet dog they're caught the virus after sharing a bed
Speaker 1: with their two infected owners. Apple has said September five
Speaker 1: headline for corporate employees to be in the office at
Speaker 1: least three days a week. The tech giant has been
Speaker 1: working toward getting its employees back in the office since
Speaker 1: at least June, when it first announced the three day policy,
Speaker 1: but COVID flare ups forced the company to push back deadlines,
Speaker 1: leaving workers on a two day a week schedule, and
Speaker 1: a partial victory for billionaire Elon Musk against Twitter, a
Speaker 1: judge in Delaware has ordered Twitter to hanover files from
Speaker 1: its former product head on spam and bot accounts. Musk
Speaker 1: has cited those and his attempt to abandon the forty
Speaker 1: four billion dollar purchase of the company, but Twitter does
Speaker 1: not have to produce documents from most of the employees
Speaker 1: that Musk says are key witnesses. That's the Bloomberg and
Speaker 1: j I T Stem Report. John, all right, thanks Karen.
Speaker 1: We we're live from the Bloomberg Into Act to Brooksis Studios,
Speaker 1: where it is now six fifty one the Wall Street
Speaker 1: Time now to check what's going on in d C.
Speaker 1: And some of the top stories in our nation's capital
Speaker 1: include les Channi's pursuit of Donald Trump sets up a
Speaker 1: likely lost today and a springboard primaries today in Wyoming,
Speaker 1: as well as Alaska Justice Department opposing the release of
Speaker 1: the affidavitt in the search of mar Lago former Mayor
Speaker 1: Rudy Giuliani is told he's a target in the Georgia
Speaker 1: election fraud probe, and the US Congress pushing President Biden
Speaker 1: toward a risky confrontation with China. Let's take a deeper
Speaker 1: diaving in these stories this morning with Bloomberg Radio and
Speaker 1: TV Washington correspondent and Marie Hord during you think that's enough,
Speaker 1: and Marie, let's start with the primaries today. I thought, yeah,
Speaker 1: I always thought it was the case too, But no,
Speaker 1: let's start with Liz Cheney. Is she pretty much toast
Speaker 1: today in her home state. Pretty much. That's all but
Speaker 1: certain that she's going to lose to this challenger, Harriet Hagenman,
Speaker 1: which is completely backed by the former president. I think
Speaker 1: it was the New York Times that ran with the
Speaker 1: headline she's really uh in a face off with Trump,
Speaker 1: not not the actual challenger, because that is why she
Speaker 1: is so far behind in the polls. She has a
Speaker 1: very conservative record when voting, but she obviously was a
Speaker 1: major player when it comes to the January six Select
Speaker 1: Select Committee, very outspoken against President Trump, voted for his impeachment.
Speaker 1: And this is a state where I think we need
Speaker 1: to remember the former president won by seventy so it
Speaker 1: is very difficult for her to now over overcome that.
Speaker 1: So what everyone is talking about in the chatter is
Speaker 1: maybe she launches a presidential bid for and that's where
Speaker 1: maybe her eyes are going. Okay, so she's focused on
Speaker 1: the future. I'm also going to assume that the winner
Speaker 1: of the Democratic primary, if there was such a thing,
Speaker 1: that we're not going to mention them because it doesn't matter.
Speaker 1: I mean, he won seventy of the vote, right, It
Speaker 1: just it doesn't matter. That was ten people, by the way, kidding, um,
Speaker 1: let's move on to the next story. The Justice Department
Speaker 1: with the the Affidavid in the search of former President
Speaker 1: Trump's residents mar A Lago. Now there's the um what
Speaker 1: have they released so far and what's the difference between
Speaker 1: this and the the affidavit. So they released the warrant
Speaker 1: in the list of what was collected, so we know
Speaker 1: that there's been eleven sets of confidential even above confidential documents,
Speaker 1: the affidavid really can show you the road map of
Speaker 1: the investigation, which is why the Justice Department is saying
Speaker 1: they oppose the release of this. They say it's highly
Speaker 1: sensitive about witnesses, including witnesses interviewed by the government, and
Speaker 1: they say there is no alternative to sealing that that
Speaker 1: could ensure the integrity of the government's investigation. So this
Speaker 1: likely sets up the failure of that being released right
Speaker 1: which a conservative group asked for that some media organizations
Speaker 1: are seeking the release for that, But ultimately there is
Speaker 1: still a slim chance because the judge who signed off
Speaker 1: on their search warrant being released, which happened last Friday,
Speaker 1: will ultimately decide if the affidavit should be released or not.
Speaker 1: But the Justice Department is saying, even if we redacted
Speaker 1: some of these very sensitive parts of it. You won't
Speaker 1: even understand what the investigation is because that is how
Speaker 1: critical and sensitive it is. So it looks like it's
Speaker 1: not going to happen, but there is still a chance, right,
Speaker 1: because ultimately it's up to the judge. Yeah, and I
Speaker 1: should also point out sort of parenthetically that anybody whose
Speaker 1: name comes up with respect to this, their picture appears
Speaker 1: on conservative media, the judge um some of the FBI
Speaker 1: agents involved, and then they face death threats or even worse. Right,
Speaker 1: And what we know from Fridays that a bulletin was
Speaker 1: sent out to law enforcement officials to individuals at courts
Speaker 1: saying that there is higher risk now of them being
Speaker 1: targeted because they do see some of the victual that
Speaker 1: is percolating on social media. So that's also probably likely
Speaker 1: part of the concern that the judge would take into account.
Speaker 1: And when he was the U S Attorney for the
Speaker 1: Southern District here in Manhattan, Rudy Giuliani was the crime fighter.
Speaker 1: Now he could be facing possible indictment. He's at least
Speaker 1: a target to tell us more, right, So he's not
Speaker 1: just a witnesses what his attorney said he's now a
Speaker 1: target of this probe. Um, and this has to do
Speaker 1: with his work with the former president. He would lead
Speaker 1: lawyer in then President Trump's attempts to overturn the election.
Speaker 1: And we're all here more on Wednesday tomorrow because that
Speaker 1: is when Mr Rudy Juliana will testify before Grand Jewry
Speaker 1: in Atlanta that is investigating these possible efforts to interfere
Speaker 1: with George's vote. Uh So this is all not going away, right,
Speaker 1: and we're going to hear a lot more about it.
Speaker 1: But this probe that was started in Georgia really came
Speaker 1: in part by a phone call that Trump had made
Speaker 1: to the state's top election official, Brad Rathfinsburger, that he
Speaker 1: needed to find enough votes to flip the count in
Speaker 1: his favor. And that's really what they're after. Um. Can
Speaker 1: we finish up real quick about a minute with with
Speaker 1: confrontation with China as more congressional delegations visit Taiwan, right,
Speaker 1: So Ed Markey finishing up a trip there. He had
Speaker 1: a two day trip Sunday and Monday, and you know
Speaker 1: Congress members go to Taiwan. This has happened before. There's
Speaker 1: a lot of highlight This trip is highlighted because it's
Speaker 1: on the heels of less than two weeks ago. Speaker Pelosi,
Speaker 1: which doesn't always happen to Speaker of the House, hasn't
Speaker 1: happened in a quarter century, made this trip, and obviously
Speaker 1: we all saw it happen with China UH sanctions cutting
Speaker 1: off some talks with the United States, as well as
Speaker 1: these live fire drills. So now there's this weird moment
Speaker 1: between the Biden administration who does not want to get
Speaker 1: into a conflict of China, but at the same time
Speaker 1: Congress is pushing a little much more hawkish legislation. They're
Speaker 1: looking at one UH piece of legislation that they want
Speaker 1: to include in the Taiwan Policy Act and that would
Speaker 1: officially recognize the island as a major non NATO ally
Speaker 1: also give more about five billion dollars defense assistants. This
Speaker 1: will be tricky for the Biden administration. A Marie, We're
Speaker 1: gonna leave it there. Thanks very much, good to talk
Speaker 1: to you as always, and you can read more about
Speaker 1: these stories on Bloomberg dot com with the Bloomberg term
Speaker 1: will reminder, you can follow all the latest on Bloomberg
Speaker 1: Radio and watching a Bloomberg one of five point seven
Speaker 1: FM h D two are Bloomberg Radio and TV Washington
Speaker 1: correspondent and Marie for Dern ahead of the open on
Speaker 1: Wall Street, Well, we're still waiting for earnings this morning
Speaker 1: from the number one retailer Walmart. Down futures right now
Speaker 1: sixty six points lower, SMP EVENI futures, they're down nine points,
Speaker 1: and the Nasdaq futures are twenty four points lower. Just
Speaker 1: to have Bloomberg surveillance or Karen Moscow. I'm John Tucker,
Speaker 1: and you've been listening to Bloomberg Daybreak