WEBVTT - Bloomberg Daybreak: August 9, 2022 - Hour 2 (Radio) 0:00:01.560 --> 0:00:05.080 By from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:00:05.160 --> 0:00:08.920 Daybreak for Tuesday, August nine, two. Coming up this hour, 0:00:09.119 --> 0:00:12.760 Federal agents raid former President Trump's residents at mar Longo. 0:00:13.080 --> 0:00:16.000 It's part of an investigation into whether he took classified 0:00:16.040 --> 0:00:19.600 documents from the White House. Bloomberg Team coverage straight ahead 0:00:19.760 --> 0:00:22.760 plus find ut which drugmaker lost more than a quarter 0:00:22.800 --> 0:00:25.520 of its value after week ear names con ed is 0:00:25.600 --> 0:00:28.560 asking Brooklyn and Queen's to reduce power amid high heat. 0:00:28.800 --> 0:00:32.240 Plus President Biden Vale's FEMA money for flood ravage residents 0:00:32.240 --> 0:00:36.240 in Kentucky. Michael Blarmer, More ahead, I'm John Stash Howard Sports. 0:00:36.240 --> 0:00:38.720 The Mets made at thirteen the last fifteen. They beat 0:00:38.720 --> 0:00:41.160 the Reds the Yankees into the five game losing street 0:00:41.280 --> 0:00:47.320 in Seattle. That's all straded ahead on Bloomberg Daybreak on 0:00:47.440 --> 0:00:51.920 Bloomberg eleven Free on New York, Bloomberg one, Washington, d C, 0:00:52.400 --> 0:00:55.960 Bloomberg one oh six one, Boston, Bloomberg nine sixties and 0:00:56.080 --> 0:01:00.200 Francisco Sirius XM one nineteen and around the world on 0:01:00.360 --> 0:01:07.880 Bloomberg Radio dot Com. I'm the Bloomberg Business app. Good Morning, 0:01:07.920 --> 0:01:11.160 I'm John Tucker. I'm Nathan Hagar. Futures are treading water 0:01:11.240 --> 0:01:12.959 this morning. We're coming up to six o one on 0:01:12.959 --> 0:01:15.200 Wall Street, and we checked the markets every fifteen minutes 0:01:15.240 --> 0:01:17.960 during the trading day. On Bloomberg, sp futures are up 0:01:18.000 --> 0:01:20.640 two points down, futures up forty six. Dance deck futures 0:01:20.640 --> 0:01:24.120 are lower by fifteen points. The tenure Treasury is down 0:01:24.160 --> 0:01:26.720 eight thirty seconds. The yield two point seven eight percent 0:01:26.800 --> 0:01:29.080 yield on the two year three point to one percent. 0:01:29.600 --> 0:01:33.039 NIMEX screwed is down eight tenths percent, down seventy cents 0:01:33.040 --> 0:01:36.240 at ninety six cents of barrel Comics gold is little changed, 0:01:36.280 --> 0:01:38.560 up at ollar seventy at eighteen o six ninety announced, 0:01:38.640 --> 0:01:40.959 the euro one point zero to three eight against the dollar, 0:01:41.280 --> 0:01:43.480 British pound one point two one two four, and the 0:01:43.560 --> 0:01:46.240 yen is at one thirty four point seven eight, John 0:01:46.400 --> 0:01:48.120 and Nathan. We're gonna have more on the markets in 0:01:48.160 --> 0:01:52.040 a minute, but first the bombshell overnight in the US politics, 0:01:52.280 --> 0:01:55.840 the MPI rating Donald Trump's Mara logo resort in Florida. 0:01:56.160 --> 0:01:58.680 We begin our team coverage with Amy Morris from our 0:01:58.720 --> 0:02:03.920 Bloomberg newsroom in Washington. The focus is unclassified documents the 0:02:03.920 --> 0:02:06.440 former president might have taken tomorrow lago from the White 0:02:06.440 --> 0:02:09.680 House when he left office. Trump's son Eric Trump told 0:02:09.720 --> 0:02:13.079 Fox News his father is being unfairly targeted. They don't 0:02:13.120 --> 0:02:17.040 want Aunald Trump to run and win again. In The 0:02:17.120 --> 0:02:19.400 raid began in the morning and lasted until six in 0:02:19.440 --> 0:02:21.840 the evening. Trump was in New York City at the 0:02:21.880 --> 0:02:25.600 time and released a statement calling the raid prosecutorial misconduct. 0:02:25.800 --> 0:02:29.640 House Minority Leader Kevin McCarthy tweeted that Republicans will conduct 0:02:29.680 --> 0:02:32.959 immediate oversight of the Justice Department if they take control 0:02:32.960 --> 0:02:35.800 of the House in November. In Washington, I'm Ammy Morris 0:02:35.840 --> 0:02:39.440 Bloomberg Daybreak. Heren reaction is pouring in this morning to 0:02:39.480 --> 0:02:42.000 the news and we continue our team coverage with Bloomberg 0:02:42.040 --> 0:02:46.760 Politics contributor Jeanie Schanzano. In this case, for a probable cause, 0:02:46.840 --> 0:02:50.000 they have to believe that crime was committed. A federal 0:02:50.080 --> 0:02:53.120 judge had to sign off on a warrant believing a 0:02:53.280 --> 0:02:56.360 crime was committed. And you have to imagine when in 0:02:56.400 --> 0:02:59.240 the balls the former president, what we're thinking about is 0:02:59.280 --> 0:03:03.600 even higher bar. In other words, the crime was committed repeatedly. 0:03:03.720 --> 0:03:08.720 It may have included classified material. Bloomberg contributor Jeanie Schanzano 0:03:08.840 --> 0:03:12.240 calls this a major development. Donald Trump says FBI agents 0:03:12.280 --> 0:03:15.320 even broke into his safe. Sources tell us the location, 0:03:15.440 --> 0:03:18.400 even the existence of the safe or closely guarded secrets 0:03:18.440 --> 0:03:20.839 for the former resident, and the search comes as Mr 0:03:20.840 --> 0:03:23.400 Trump Preparis and other bid for the White House, and 0:03:23.560 --> 0:03:27.360 as the January six committee also probes his actions. Robert 0:03:27.360 --> 0:03:30.440 Min's a partner, Ed mcarter and English goals the investigation 0:03:30.560 --> 0:03:35.920 shocking and unprecedented. The search warrant is really the nuclear 0:03:35.960 --> 0:03:40.200 bomb in the arsenal of prosecutors because it is so intrusive. 0:03:40.560 --> 0:03:42.920 It is not simply serving a subpoena and going through 0:03:42.960 --> 0:03:46.800 attorneys and producing records, literally showing up on your doorstep 0:03:47.240 --> 0:03:51.000 with a phalanx of federal agents who wi allow spend 0:03:51.360 --> 0:03:54.720 four or five hours going through your house. Robert minces 0:03:54.760 --> 0:03:57.920 Attorney General Merrick Garland was likely needed to sign off 0:03:57.920 --> 0:04:00.320 on the rate. More of this developing story around the 0:04:00.360 --> 0:04:04.120 morning here on Bloomberg Radio, including analysis from Brown University's 0:04:04.280 --> 0:04:08.080 When They Schiller Washington corresponded, Joe Matthew, all right, let's 0:04:08.080 --> 0:04:11.000 turn back to markets now, John us futures are mixed 0:04:11.040 --> 0:04:13.760 after yesterday's up and down day on Wall Street. At 0:04:13.760 --> 0:04:16.760 one point, the SMP five was up one percent before 0:04:16.839 --> 0:04:20.320 pulled back on shipmaker and videos revenue miss that the 0:04:20.360 --> 0:04:24.480 index closed little changed. David Deet's senior portfolio strategist at 0:04:24.480 --> 0:04:28.239 pe Pack Private Wealth, says everyone's waiting for tomorrow's inflation print. 0:04:28.440 --> 0:04:31.920 All eyes are gonna be on Wednesday's inflation report. If 0:04:31.960 --> 0:04:35.600 that's hot of it expected, expect to pull back, particularly 0:04:35.680 --> 0:04:39.560 monks on those megacap tech socks, and maybe a rotation 0:04:39.640 --> 0:04:42.479 back into some of those materials energy names which have 0:04:42.600 --> 0:04:45.880 not participated as much in July. Ppack Private Wealth David 0:04:45.920 --> 0:04:48.480 Diet says investors are concerned the Fed will continue to 0:04:48.600 --> 0:04:51.800 raise rates after last Friday's strong jobs report and this 0:04:51.920 --> 0:04:56.480 morning session shares of Novavax down. That's after the drug 0:04:56.520 --> 0:04:59.919 makers slashed to its revenue forecast. The story from Bloomberg's 0:05:00.040 --> 0:05:04.280 Charlie Pellett It's COVID nineteen vaccine, which already trailed competitors 0:05:04.279 --> 0:05:08.159 getting to market, failed to live up to expectations. Novavacs 0:05:08.240 --> 0:05:11.320 received about one point six billion dollars from the US 0:05:11.400 --> 0:05:16.000 government to develop its vaccine through the Operation Warp Speed program. 0:05:16.320 --> 0:05:20.440 The immunization uses a protein based technology that's similar to 0:05:20.480 --> 0:05:24.600 classic shots. Company officials had anticipated that the vaccine might 0:05:24.640 --> 0:05:27.480 appeal to those who have been hesitant to take shots 0:05:27.520 --> 0:05:31.360 made with newer technologies, but demand has not appeared strong 0:05:31.480 --> 0:05:35.080 so far. In New York, Charlie Pellett Bloomberg Day Break, 0:05:35.120 --> 0:05:37.880 Thanks Charlie. As corporate earnings come in mixed, the debate 0:05:37.920 --> 0:05:41.039 over whether we're in a recession continues. Bloomberg's Rnita Young 0:05:41.120 --> 0:05:43.279 joins US Live with the latest call. Good morning, Rinita, 0:05:43.360 --> 0:05:47.200 Good morning Nathan. Our Investment Management CEO caafy Wood is 0:05:47.240 --> 0:05:50.800 the latest to declare US recession. She says that the 0:05:50.800 --> 0:05:54.080 Fed will have to start loosening its policy sometime next year. 0:05:54.400 --> 0:05:57.599 We believe we're in a recession. Two consecutive quarters of 0:05:57.680 --> 0:06:01.000 real g D key declines is is the beginning of 0:06:01.000 --> 0:06:06.800 that definition. Three consecutive months of declines in meeting indicators, 0:06:07.080 --> 0:06:10.400 which we have now would suggest the same. Kathe Wood 0:06:10.480 --> 0:06:13.279 says she believes the economy will be coming out of 0:06:13.279 --> 0:06:16.360 a recession next year. She plans to keep her firm 0:06:16.480 --> 0:06:20.680 fully invested throughout the downturn in so called innovation companies 0:06:20.839 --> 0:06:24.760 which typically thrived during difficult times. Live in New York. 0:06:24.800 --> 0:06:27.960 I'm Nita Young Blueberg Daybreak. Thanks for Nita, and finally 0:06:28.080 --> 0:06:31.000 some news from Boeing this morning. The company you sent 0:06:31.040 --> 0:06:34.400 to resume deliveries of its seven eight seven Dreamliner as 0:06:34.440 --> 0:06:37.680 soon as tomorrow. That's almost two years after they were 0:06:37.760 --> 0:06:42.080 disrupted by manufacturing flaws. The FAA says Boeing has made 0:06:42.080 --> 0:06:46.000 the necessary changes to ensure the plane now meets certification standards. 0:06:46.040 --> 0:06:48.080 So I've got one more story for you, John. Micron 0:06:48.120 --> 0:06:51.920 Technology says it will use anticipated government grants and credits 0:06:51.920 --> 0:06:54.400 to help it invest forty billion dollars by the end 0:06:54.440 --> 0:06:58.560 of the decade to build out US semiconductor manufacturing capacity. 0:06:58.920 --> 0:07:03.080 Company expects to be into produced chips after says it 0:07:03.080 --> 0:07:06.440 will create as many as forty thousand jobs. Micron says 0:07:06.480 --> 0:07:08.880 the investments being funded with subsidies that thinks it will 0:07:08.880 --> 0:07:11.520 be awarded from the Chips in Science Act that just 0:07:11.640 --> 0:07:14.840 passed on Capitol Hill. Straight ahead, we have your latest 0:07:14.840 --> 0:07:18.240 of local headlines, plus a check of sports. You're listening 0:07:18.280 --> 0:07:25.280 to Bloomberg day Break. Thanks Nathans so seven on Wall 0:07:25.280 --> 0:07:27.640 Street Games. Time to bring in Michael bar to find 0:07:27.680 --> 0:07:29.640 out what else is going on in New York and 0:07:30.280 --> 0:07:33.200 around the world. John, Thank you, sir. The bad news 0:07:33.320 --> 0:07:36.480 the heat wave continues in the Tri State area. The 0:07:36.480 --> 0:07:39.920 good news it ends tonight. Bloomberg Meeting Religios. Rob Caroline 0:07:40.000 --> 0:07:42.360 has the latest. Good morning, Michael. We have a heat 0:07:42.360 --> 0:07:44.560 advisory and effect for the Tri State area until eight 0:07:44.600 --> 0:07:47.480 p m. This evening. The heat advisory though the last 0:07:47.480 --> 0:07:49.400 one of the week. It looks like temperatures are gonna 0:07:49.400 --> 0:07:50.880 cool off quite a bit as we head through the 0:07:50.920 --> 0:07:53.880 remainder of the week. Today we're up around ninety five. Tomorrow, 0:07:53.920 --> 0:07:56.520 it's eighty five and eighty five again on Thursday, then 0:07:56.600 --> 0:07:59.520 only eight five on Friday with much less humidity. So 0:07:59.760 --> 0:08:02.440 we're definitely gonna be breaking the heat wave. Michael, thanks 0:08:02.440 --> 0:08:05.240 for Rob Khan. Ed is asking residents in parts of 0:08:05.320 --> 0:08:08.240 Brooklyn and Queens to curb their energy use as high 0:08:08.320 --> 0:08:11.760 heat sears New York City. The utility asked homes and 0:08:11.880 --> 0:08:15.320 businesses and the affected areas to refrain from using power 0:08:15.480 --> 0:08:20.400 hungry appliances, including washers, dryers, and microwaves until the crew 0:08:20.520 --> 0:08:24.480 completes repairs. It also requested that residents only used one 0:08:24.520 --> 0:08:28.400 air conditioner President Biden extended help and the FEMA check 0:08:28.480 --> 0:08:32.080 book to flood soaked eastern Kentucky as he visited storm 0:08:32.280 --> 0:08:35.960 damaged areas. The President toured the water demolished neighborhoods, where 0:08:36.000 --> 0:08:40.240 he immediately issued federal disaster declarations so they could rebuild 0:08:40.240 --> 0:08:43.960 from last week's deadly storms. After meeting with families impacted 0:08:43.960 --> 0:08:46.840 by the flooding and the town of Lost Creek, President 0:08:46.880 --> 0:08:49.600 Biden says he will be back to help them rebuild 0:08:49.600 --> 0:08:53.160 from the flooding. All Americans, everybody has an obligation to help. 0:08:53.800 --> 0:08:57.160 We have the capacity to do this. It's not like 0:08:57.200 --> 0:09:01.040 it's beyond our control. The President also each unity in 0:09:01.200 --> 0:09:04.520 the response to the disaster. The Pentagon says it believe 0:09:04.679 --> 0:09:07.720 that as many as eighty thousand Russian troops have been 0:09:07.800 --> 0:09:11.040 killed or wounded and under six months of fighting in Ukraine. 0:09:11.559 --> 0:09:15.960 Under Secretary of Defense for Policy, Colin cull says it 0:09:16.040 --> 0:09:19.640 is pretty remarkable considering that the Russians have achieved none 0:09:19.760 --> 0:09:22.480 of Vladimir Putin's objectives at the beginning of the war. 0:09:23.000 --> 0:09:26.680 China has extended military drills near Taiwan's airspace and sees 0:09:26.760 --> 0:09:31.120 today Taiwan says China using war drills are planning a 0:09:31.160 --> 0:09:35.680 future invasion. Beloved actress and singer Olivia Newton John has died. 0:09:40.040 --> 0:09:42.440 She was famous for hits like physical and You're the 0:09:42.440 --> 0:09:44.880 One that I Want from her breakout role in Greece. 0:09:44.920 --> 0:09:48.240 Olivia Newton John was seventy three Global News twenty four 0:09:48.320 --> 0:09:51.600 hours a day on air and on Bloomberg Quicktech, powered 0:09:51.600 --> 0:09:54.160 by more than twenty seven hundred journalists analysts more than 0:09:54.160 --> 0:09:57.440 a twenty countries. Michael bar this is Bloomberg, John, Michael, 0:09:57.480 --> 0:10:04.400 thank you, and now sixteen on Wall Street. That's time 0:10:04.440 --> 0:10:07.600 for the Blueberg Sports Update. Here's John Star. Thanks Jo. 0:10:07.679 --> 0:10:09.880 When the Yankees were flying high first half of the season, 0:10:09.880 --> 0:10:12.520 they were relatively healthy nuts no longer than King, John 0:10:12.559 --> 0:10:14.760 Carlos Stantons on the injur list, it was police Steve Areno, 0:10:15.160 --> 0:10:17.680 Michael King done for the year. And last night in Seattle, 0:10:17.760 --> 0:10:20.640 Matt Carpenter foul the ball off his foot. It's a 0:10:20.720 --> 0:10:24.680 fracture that might end what's been a remarkable season for Carpenter. 0:10:24.720 --> 0:10:26.840 He had hit only seven home runs over his previous 0:10:26.840 --> 0:10:29.720 two seasons. Join the Yankees in late May. His slugging 0:10:29.760 --> 0:10:32.439 percentage since then is the best of the Major Leagues 0:10:32.559 --> 0:10:35.280 Yankees beat the Mariners nine to four in five games. 0:10:35.280 --> 0:10:38.000 Wasn't treat Josh Donaldson with his best game as a 0:10:38.080 --> 0:10:40.320 Yank two doubles, a home run, drove in three. So 0:10:40.440 --> 0:10:43.560 did Andrew been Intende Aaron Judge with home run number 0:10:43.600 --> 0:10:46.480 forty four and Jamison t Young won seven ins, allowed 0:10:46.520 --> 0:10:48.920 only three hits. City Field Mets beat the Red So 0:10:49.120 --> 0:10:52.360 that's thirteen the last fifteen to run homer in the 0:10:52.400 --> 0:10:55.360 first by Starling Marte. Mets put it away in the 0:10:55.440 --> 0:10:59.200 eighth pitch. Swere gonna drive eight two right back those 0:10:59.240 --> 0:11:02.880 at Kino under the track, here the fence reachers up here, Kata. 0:11:03.080 --> 0:11:06.199 It bounces office clove. If the score from second is 0:11:06.280 --> 0:11:09.839 Kata comes back. Deal around thirty hard take it for thirty. 0:11:09.880 --> 0:11:12.720 Stake one piece in with a triple. And that's how 0:11:12.800 --> 0:11:15.079 a five to one lad. That was the final w 0:11:15.320 --> 0:11:18.679 CBS to call the Dole make win triple. Chris Bassett 0:11:18.679 --> 0:11:20.880 worked eight innes, did not allow and Earn Roy Met's 0:11:20.960 --> 0:11:23.800 now lead the Braves by seven. A key Jet has 0:11:23.840 --> 0:11:26.920 suffered an injury at training camps. Apple McKay Beckton heard 0:11:26.960 --> 0:11:29.160 his knee, same one that kept him out last season. 0:11:29.240 --> 0:11:30.760 He had an m R I further test. Today an 0:11:30.800 --> 0:11:33.760 eventful day of the Giants. Several fights broke out that 0:11:33.920 --> 0:11:37.200 does sometimes happen the training camp. Linebacker Take Crowder, center 0:11:37.280 --> 0:11:40.360 John felice Fiano among those involved. Giants other preseason opener 0:11:40.400 --> 0:11:43.720 Thursday at New England, John Dash with Bloomberg Sports done 0:11:43.800 --> 0:11:46.559 all right, thanks John, And right now as we look 0:11:46.600 --> 0:11:49.960 at markets, they've turned mixed. The futures market down. Futures 0:11:50.080 --> 0:11:52.959 right now are eighteen points, sire s and p E 0:11:53.080 --> 0:11:57.120 many futures down just three points, and the Dansaic futures 0:11:57.240 --> 0:12:00.880 are lower by thirty eight points. Two year yield at 0:12:00.920 --> 0:12:04.160 three twenty one, the tenure right now at two seventy eight. 0:12:04.360 --> 0:12:08.319 Mr is Bloomberg I. Just ahead, we will speak with 0:12:08.360 --> 0:12:11.160 Wendy Schiller, directman of the director of the Talmut Center 0:12:11.240 --> 0:12:16.120 for American Politics and Policy at Brown University, Analysis and Perspective. 0:12:16.640 --> 0:12:23.199 After the FBI executes a Trump search warrant, markets headlines 0:12:23.280 --> 0:12:26.240 and breaking news twenty four hours a day at Bloomberg 0:12:26.320 --> 0:12:29.720 dot Com, the Bloomberg Business app, and at Bloomberg Quick Tape. 0:12:30.240 --> 0:12:39.200 He's a Bloomberg Business lash, Nathan Hagar. Futures are mixed. 0:12:39.240 --> 0:12:42.400 This morning, SMP futures down five point, staff futures up 0:12:42.440 --> 0:12:45.920 four NASTAC futures moving lower now down fifty seven points 0:12:45.920 --> 0:12:47.959 to drop a four tenths per cent. The ten year 0:12:48.000 --> 0:12:50.560 treasuries down nine thirty seconds, the yield two point seven 0:12:50.679 --> 0:12:53.760 nine percent, yield on the two year three point two percent. 0:12:54.120 --> 0:12:56.880 Nimex screwed is down to tenth percent, down fifteen cents 0:12:57.000 --> 0:12:59.760 ninety dollar sixty cents of barrel comex scold up two 0:12:59.800 --> 0:13:02.160 ten for center three dollars twenty cents at eighteen eight 0:13:02.240 --> 0:13:04.880 thirty announced. The Euro one point zero two three five 0:13:04.920 --> 0:13:07.000 against the dollar, the en one thirty four point eight 0:13:07.080 --> 0:13:10.400 zero Bitcoin down two point six percent at twenty three thousand, 0:13:10.440 --> 0:13:13.040 four hundred dollars. That's a Bloomberg business flash. And now 0:13:13.120 --> 0:13:15.120 here's Michael Bart with more on what's going on around 0:13:15.160 --> 0:13:17.280 the world. Mike, call Nathan, thank you very much. The 0:13:17.400 --> 0:13:20.800 FBI has searched former President Donald Trump's and Mara Lago 0:13:20.960 --> 0:13:23.880 estate as part of an investigation into whether he took 0:13:23.960 --> 0:13:27.040 classified records from the White Owls to his Florida residents. 0:13:27.400 --> 0:13:29.679 Trump says agents opened up a safe at his home 0:13:29.800 --> 0:13:33.559 and describes their work as an unannounced raid. Will have 0:13:33.720 --> 0:13:36.920 more on this story straight ahead. Teachers and staff returned 0:13:36.960 --> 0:13:39.480 to work today at public schools in Yuvaldi, Texas. It 0:13:39.559 --> 0:13:42.520 follows the deadly mass shooting in May at rob Elementary School. 0:13:42.920 --> 0:13:46.160 In baseball, the Yankees beat the Mariners nine four, the 0:13:46.280 --> 0:13:50.080 Mets beat the Reds five one, the Nationals and A's lost. 0:13:50.400 --> 0:13:53.840 The Orioles and Giants won Global News twenty four hours 0:13:53.880 --> 0:13:57.120 a day on air and on Bloomberg Quicktake, powered by 0:13:57.160 --> 0:13:59.600 more than twenty seven hundred journalist and analysts more than 0:13:59.600 --> 0:14:03.880 a hundred twenty countries. Michael Barr and this is Bloomberg, John, Michael, 0:14:03.920 --> 0:14:06.400 thank you six nineteen Walster. We are lion from the 0:14:06.400 --> 0:14:10.439 Bloomberg into Anto Broker Studios. This is Bloomberg Daybreak. As 0:14:10.480 --> 0:14:14.720 Michael mentioned, stunning development of a younggoing legal battles evolving 0:14:14.800 --> 0:14:18.319 former President Donald Trump a search warrant executed at the 0:14:18.360 --> 0:14:20.880 home of the former president with some perspective this morning, 0:14:20.920 --> 0:14:24.320 Wendy Shoulder, director of the Talvin Center for American Politics 0:14:24.680 --> 0:14:29.040 and Policy at Brown University, if I'm not mistaken, first 0:14:29.120 --> 0:14:32.320 time zever happened to a former president where a search 0:14:32.400 --> 0:14:36.600 warrant was executed at the home of a former president. Wendy, 0:14:36.840 --> 0:14:40.520 your initial reaction, well, I mean, there's so many things 0:14:40.600 --> 0:14:44.320 to think about here. I think that clearly things are 0:14:44.440 --> 0:14:47.760 ramping up to figure out whether a case can be 0:14:47.920 --> 0:14:51.680 made against Donald Trump either for this, which is most 0:14:51.720 --> 0:14:53.840 of them, I say, an interfraction, but it's actually a 0:14:53.920 --> 0:14:59.360 criminal offense to remove classified documents from the government and 0:15:00.000 --> 0:15:02.680 particularly president. Everything has to go to the archives or 0:15:02.760 --> 0:15:05.760 be clear through the archives. But also the January six 0:15:05.920 --> 0:15:09.360 Committee continues its work on what his behavior was on 0:15:09.520 --> 0:15:14.239 January six and whether he actively participated in essentially insurrection. 0:15:14.680 --> 0:15:17.040 So there's a two sort of two fronts here. Plus 0:15:17.200 --> 0:15:19.880 he's got you know, a criminal investigation uh in New 0:15:19.920 --> 0:15:23.640 York State, So there's a lot going on. Politically, this 0:15:23.800 --> 0:15:27.480 helps the Republicans mobilized voters for mid term two. Particularly 0:15:27.480 --> 0:15:30.320 they're very very strong Trump supporting base. He's got a 0:15:30.360 --> 0:15:32.920 lot of people running for office across the country that 0:15:33.080 --> 0:15:35.680 he supported that won their primaries and not you know, 0:15:35.760 --> 0:15:39.160 governor of pet Venue who's actually testifying before January six 0:15:39.320 --> 0:15:42.320 here in today, Mostriano. So this can have a big 0:15:42.480 --> 0:15:44.720 effect as the FBI we know in the last couple 0:15:44.720 --> 0:15:48.200 of years, has had on elections, Uh, mid term, short term, 0:15:48.400 --> 0:15:51.640 good for the Republicans, um long term for Trump. For 0:15:51.760 --> 0:15:54.360 twenty four you gotta say it leans towards the bad 0:15:54.440 --> 0:15:56.760 for Trump and good for people like LANDA. Santis or 0:15:56.840 --> 0:15:58.920 Christine Ome or Kim Reynolds, any of the other people 0:15:58.960 --> 0:16:01.000 who might be thinking about running. So why has this 0:16:01.080 --> 0:16:05.080 been why can this be used this political opportunity for Republicans? 0:16:05.200 --> 0:16:07.640 Can you dive a little deeper? Yes, I mean it's 0:16:08.560 --> 0:16:10.680 a it's a it's a potential Della store. But you 0:16:10.720 --> 0:16:13.280 gotta lean towards the positive here in terms of mobilizing 0:16:13.600 --> 0:16:15.960 voters for the mid term, Republicans tend to get out 0:16:16.080 --> 0:16:20.080 mid terms up until twenty eighteen, more more consistently than Democrats. 0:16:20.400 --> 0:16:22.800 Their bases riled up. They've got an opposite party president. 0:16:22.840 --> 0:16:25.760 I mean, all all things count towards Republicans getting out 0:16:25.760 --> 0:16:28.400 the door who want change in the government. Now, the 0:16:28.520 --> 0:16:30.800 Trump supporters who mayor men not have gotten out, for 0:16:30.840 --> 0:16:33.560 all the Republicans across the country, they'll get out because 0:16:33.640 --> 0:16:36.760 already Kevin McCarthy is promising if the Speaker, he'll investigate 0:16:36.800 --> 0:16:39.800 the Justice Department. So the stakes really just went up. 0:16:39.920 --> 0:16:41.920 I think for the stability of government. And it's really 0:16:41.960 --> 0:16:44.720 extraordinary to think about, as you say, the impact of 0:16:44.760 --> 0:16:48.120 a former president on the subsequent midterm elections of a 0:16:48.200 --> 0:16:51.840 new president. This we haven't really seen. I mean, Clinton 0:16:51.880 --> 0:16:54.560 had reverb because of Monica Lewinsky going into two thousand's, 0:16:54.560 --> 0:16:57.440 but then they were September eleven, that tragedy and the wars, 0:16:57.760 --> 0:17:00.520 so things, you know, the subject changed. But now you 0:17:00.600 --> 0:17:02.480 know this is still going to be about Donald Trump 0:17:02.720 --> 0:17:06.119 two years later, about Donald Trump, and that's extraordinary. What 0:17:06.560 --> 0:17:10.160 will be behind his decision whether or not to run 0:17:10.280 --> 0:17:16.720 for president for Will they be legal reasons or political reasons? Well, 0:17:16.800 --> 0:17:19.840 there's also financial reasons. He's raising a lot of money, 0:17:19.960 --> 0:17:23.000 which pays for some portion of his expenses because as 0:17:23.040 --> 0:17:25.400 long as he's campaigning and out there involved in politics, 0:17:25.800 --> 0:17:28.399 you know, um, the FBC has to decide about this. 0:17:28.560 --> 0:17:30.240 But he can use a lot of that money to 0:17:30.359 --> 0:17:33.440 support what he's doing. Uh, So you know that that 0:17:33.640 --> 0:17:36.120 helps him, uh and it keeps him out of jail 0:17:36.160 --> 0:17:39.760 if he actually wins. The question is will this become 0:17:40.040 --> 0:17:44.159 Trump fatigued for key Republican suburban voters across the country. 0:17:44.359 --> 0:17:46.560 If the Republicans will like too much on Trump going 0:17:46.600 --> 0:17:50.359 into midwo and you've got also the question of abortion, 0:17:50.560 --> 0:17:53.359 gun violence, all the other things. In dolation guest prices, 0:17:53.600 --> 0:17:56.240 will voters decide they want over to focus on those 0:17:56.320 --> 0:17:59.520 things quality of life matters, not Donald Trump. And if 0:17:59.680 --> 0:18:02.840 enough of Bourbon voters do that, that could basically keep 0:18:02.880 --> 0:18:06.120 the Senate from going totally Republican or keep it sort 0:18:06.160 --> 0:18:07.960 of in that tide state that it's it. So I 0:18:08.000 --> 0:18:10.159 think the House, I think this will help the Hops 0:18:10.200 --> 0:18:12.320 quite a bit, But for the Senate, it's unclear voters 0:18:12.359 --> 0:18:14.280 really want to hear Aboutald Trump for the next couple 0:18:14.280 --> 0:18:18.040 of months, either way negatively or positively. Could he he 0:18:18.160 --> 0:18:22.840 could be legally disqualified from running for president as well. Well, 0:18:22.880 --> 0:18:25.159 I don't think anything will stop him from running. Honestly, 0:18:25.200 --> 0:18:28.120 even if they say you can't win, he'll say, well, 0:18:28.200 --> 0:18:30.840 elect me, will change the law. Elect Republicans, they'll change 0:18:30.880 --> 0:18:33.399 the law. Give him the Congress and they'll change the law. 0:18:33.440 --> 0:18:34.920 I mean, that could be the next step for Trump 0:18:35.000 --> 0:18:37.720 to ramp up his sort of hold on the Republican Party. 0:18:38.080 --> 0:18:40.200 You can't just say you're gonna investigate Mark Rlan. You 0:18:40.280 --> 0:18:42.520 have to actually promise to change the law. And that 0:18:42.560 --> 0:18:45.040 Biden won't sign that, but he can make members of 0:18:45.119 --> 0:18:47.240 converence go on the record saying we're going to change 0:18:47.240 --> 0:18:49.480 the law so former presidents can do whatever they want. 0:18:50.000 --> 0:18:52.280 That's the kind of thing that will start to scare 0:18:52.520 --> 0:18:57.119 key suburban constituencies, particularly Independence and some Republicans about the 0:18:57.240 --> 0:19:00.720 prospect of a Republican control of the House and send 0:19:00.800 --> 0:19:04.360 it together so you know, down fire President, hold the line. 0:19:04.400 --> 0:19:07.679 But come twenty four, I don't think this overall benefits 0:19:07.960 --> 0:19:10.600 the Republican party. We saw it happen in twenty Trump 0:19:10.720 --> 0:19:14.879 lost a lot of people defected from Trump. So this 0:19:15.040 --> 0:19:17.879 is a very risky proposition for the Republicans, but I 0:19:17.960 --> 0:19:21.639 think more so for twenty four than when they always 0:19:21.680 --> 0:19:24.919 a pleasure appreciated Professor Wendy Shilder, director of the Talvin 0:19:25.000 --> 0:19:30.200 Center for American Politics and Policy at Brown University. And 0:19:30.359 --> 0:19:32.280 as we look at the markets ahead of the cash 0:19:32.320 --> 0:19:35.840 open on Wall Street futures pairing some of the earlier gains. 0:19:35.840 --> 0:19:37.680 In fact, we have a term mixed right now, the 0:19:37.720 --> 0:19:41.880 down futures of just five points right now, the smp 0:19:42.000 --> 0:19:46.280 E mini futures, they've gone down down six points right now, 0:19:46.359 --> 0:19:50.119 down about two tens percent. And the Nassat futures sixty 0:19:50.200 --> 0:19:53.840 four points lower. That is down half of percent. The 0:19:54.200 --> 0:19:56.640 tenure yield to seventy nine. Right now the two year 0:19:56.920 --> 0:20:01.240 at three negative forty three bases point in version of 0:20:01.280 --> 0:20:08.879 the curve. There, you're listening to Bloomberg and still ahead. 0:20:09.000 --> 0:20:12.440 We'll continue with our top story that's stunning development of 0:20:12.520 --> 0:20:16.440 the ongoing legal battles involving former President Trump. Will check 0:20:16.520 --> 0:20:24.600 in with Bloomberg's Joe Matthew, broadcasting live from the Bloomberg 0:20:24.680 --> 0:20:28.399 Interacted Broker's studio in New York. Bloomberg E Living Freedom 0:20:28.520 --> 0:20:32.680 to Washington, d C. Bloomberg to Boston, Bloomberg one O 0:20:32.880 --> 0:20:36.320 six one does San Francisco, Bloomberg nine six to the country, 0:20:36.440 --> 0:20:39.439 Sirius XM two, the one nine T and around the globe, 0:20:39.560 --> 0:20:43.000 the Bloomberg Business at and Bloomberg Radio dot Com. This 0:20:43.480 --> 0:20:54.520 is Bloomberg Daybreak. He's six thirty on Wall Street. Good morning. 0:20:54.520 --> 0:20:57.160 I'm John Tucker. I'm Nathan Hager. We're about three hours 0:20:57.200 --> 0:20:59.080 away from the open of US trading. Time for the 0:20:59.119 --> 0:21:01.080 five things you need to know to start your day. 0:21:01.119 --> 0:21:03.920 Brought to you by Interactive Brokers Charging margin loan rates 0:21:03.960 --> 0:21:06.840 from two point three to three point. Their clients can 0:21:06.840 --> 0:21:09.440 also an extra income by lending their fully paid shares 0:21:09.480 --> 0:21:12.520 of stock great subject to change. Learn more at ibkr 0:21:12.640 --> 0:21:16.320 dot com slash compare First. Former President Donald Trump says 0:21:16.400 --> 0:21:19.359 federal agents rated his residents at Mara Lago. It's part 0:21:19.400 --> 0:21:22.280 of an investigation into whether he took classified documents from 0:21:22.280 --> 0:21:25.040 the White House. We get analysis from Robert Mints, a 0:21:25.119 --> 0:21:29.520 partner ed m. Carter in English. It's absolutely shocking and 0:21:29.760 --> 0:21:35.919 completely unprecedented. This would require approval from the highest levels 0:21:36.240 --> 0:21:39.920 of the Department of Justice. Merrick Garland, the Attorney General himself, 0:21:40.480 --> 0:21:43.080 would certainly have had to have been a part of 0:21:43.160 --> 0:21:46.480 this decision, and I've signed off on this before going 0:21:46.560 --> 0:21:49.480 to a federal judge. Attorney Robert Mint says the search 0:21:49.560 --> 0:21:53.119 warrant is quoth a nuclear bomb and the arsenal of prosecutors. 0:21:53.480 --> 0:21:56.080 The search stems from a National Archives request about the 0:21:56.119 --> 0:21:59.600 transfer of president of documents to Mara Lango. We get 0:21:59.640 --> 0:22:03.639 more for Bloomberg political contributor and former GOP strategist Rick Davis. 0:22:04.119 --> 0:22:08.560 There is a penalty associated with violating this provision. It 0:22:08.680 --> 0:22:13.119 says that if you're convicted of violating this rule of 0:22:13.240 --> 0:22:16.879 holding these documents, especially top secret documents. You'll forfeit your 0:22:16.960 --> 0:22:20.280 office and be disqualified from holding any other office under 0:22:20.320 --> 0:22:23.639 the United States. Rick Davis says this investigation answer the 0:22:23.680 --> 0:22:27.200 former president's legal problems, which include a separate grand jury 0:22:27.280 --> 0:22:31.800 proben efforts to overturn the twenty twenty election. Donald Trump, meantime, 0:22:31.800 --> 0:22:34.879 says he's being targeted to derail another run for the 0:22:34.920 --> 0:22:37.040 White House. Sam We'll have more on this developing story 0:22:37.080 --> 0:22:39.560