Speaker 1: Life from the Bloomberg interacted Berger's studios. This is Bloomberg
Speaker 1: day Break for Thursday, August eleven two. Coming up this hour,
Speaker 1: US futures look to add to yesterday's rally. Softening inflation
Speaker 1: isn't swaying FETE officials when it comes to policy. Gas
Speaker 1: prices continue to fall, dipping below four dollars a gallon,
Speaker 1: and Disney shares search as it beats prophet estimates that
Speaker 1: it announces a price fight for streaming. New York Mayor
Speaker 1: Adams and Texas Governor Rabbit continue to spa over bus
Speaker 1: loads of migrants to the city. Plus former President Trump
Speaker 1: leads the fifth I'm Michael Blaher. More ahead, I'm John
Speaker 1: stash Our. In sports, another win for the red hot Mets.
Speaker 1: The Yankees lost in Seattle. The Giants that their preseason
Speaker 1: opener tonight at New England. That's all's turning ahead on
Speaker 1: Bloomberg day Break on Bloomberg eleven, Free on New York,
Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco Sirius XAM one nine team,
Speaker 1: and around the world. The Bloomberg Radio Dot com and
Speaker 1: via the Bloomberg Business app. Think good morning, I'm Nathan
Speaker 1: Higger and I'm Karen Moscow. When US Dock Index futures
Speaker 1: are on the rise this morning. We are coming up
Speaker 1: to six o one on Wall Street, and we check
Speaker 1: the markets every fifteen minutes throughout the trading day. On
Speaker 1: Bloomberg S and P Future is up about thirteen points now,
Speaker 1: Futures up one twenty five and NASDAG future is up
Speaker 1: thirty three. Ten year treasury up to thirty seconds here
Speaker 1: two point seven six percent, and they yield on the
Speaker 1: two year three point one seven percent. Nathan, Well, Karen.
Speaker 1: The rise in futures this morning builds on yesterday's powerful rally.
Speaker 1: The SMP five hundred closed at a three month high,
Speaker 1: while the Nasdaq one hundreds up more than twenty percent
Speaker 1: now from its June bottom. It was all fueled by
Speaker 1: softer than expected inflation data. Alan Lands, director of research
Speaker 1: at Lands Global, is skeptical all of a sudden. Now
Speaker 1: one CPI report and now you know, inflation is is
Speaker 1: calm and taking care of et cetera. So for some reason, investor,
Speaker 1: you know, ream stop sucks back, and you know it's
Speaker 1: just it's just a total exaggeration. Alan Land says he
Speaker 1: remains conscious. He was a guest on Bloomberg Business Week,
Speaker 1: herd Weekday afternoons on Bloomberg Radio and streaming live on YouTube. Well, Nathan,
Speaker 1: the Wall Street rally is now spilled overseas. Stocks in
Speaker 1: Hong Kong and China search more than two percent overnight,
Speaker 1: and we get the recount from Bloomberg's Juliette Sally and Singapore.
Speaker 1: Good Morning, Juliette, Good morning, Nathan, and Karen Tex sches
Speaker 1: Bird gains in the regional index excluding Japan, which was
Speaker 1: closed for a holiday. China's bulls has advanced even as
Speaker 1: investors digested a warning from the PBOC about inflation threats
Speaker 1: and a pledge to avoid massive stimulus. South Korea has
Speaker 1: one gained as much as one percent against the dollar
Speaker 1: as the nation's trade deficit wide and while the Singapore
Speaker 1: dollar retreated as the Ministry of Trade and Industry lowered
Speaker 1: its twenty twenty two growth forecast following a contraction in
Speaker 1: the economy in the second quarter. In Singapore. Juliette Sally
Speaker 1: Bloomberg Daybreak, All Right, juliet thanks softening inflation data, Maybe
Speaker 1: exit adding markets but it's not changing minds at the FED.
Speaker 1: Let's get that story live with Bloomberg's John Tucker John Nathan.
Speaker 1: Minneapolis Fed President Neil Cash car he wants the benchmark
Speaker 1: into his rate at three point nine percent by the
Speaker 1: end of this year and at four point four percent
Speaker 1: by the end of twenty three. The idea that we're
Speaker 1: going to start cutting rates early next year when inflation
Speaker 1: is very likely going to be well, well, well in
Speaker 1: excess of our target, I just think it's not realistic, carries.
Speaker 1: Counterpart Charles Evans of Chicago welcome the lower CPI print,
Speaker 1: but says inflation remains unacceptably high and he wants to
Speaker 1: continue raising rates until next year. I think it'll be
Speaker 1: three and three quarters to four percent, So sort of
Speaker 1: a four percent top funds rate at the end of
Speaker 1: next year is what I'm thinking about. Mary Daly, also
Speaker 1: adding to that call, the San Francisco FED president tells
Speaker 1: the Financial Times it's far too early to declare victory
Speaker 1: over inflation. She's not ruling out a third consecutive bases
Speaker 1: point increase in September. Daily, by the way, is going
Speaker 1: to be on Bloomberg Radio and TV tonight at seven
Speaker 1: thirty Eastern Live in New York. I'm John Tucker, Bloomberg debreak.
Speaker 1: All right, John, thank you well. That sentiment from FED
Speaker 1: officials as being echoed by the U S. Commerce Secretary
Speaker 1: Gina Ramando spoke at the Bloomberg's David weston it is
Speaker 1: good news, although I do think we have to be cautious.
Speaker 1: A big reason for the good news gas prices are
Speaker 1: leveling off, and that's certainly helpful to consumers. But as
Speaker 1: you point out, there are other issues wait, like in housing,
Speaker 1: that we have to still keep our eye on the ball.
Speaker 1: As we've set all along, there's no silver bullet here.
Speaker 1: Commerce Secretary Jenna Ramando mentioned falling gasoline prices, and we
Speaker 1: have more news on that front this morning. Triple A
Speaker 1: reporting the average price of gash in the US has
Speaker 1: now fallen below four dollars a gallon, and we get
Speaker 1: another reading on US inflation this morning. Karen. Economists predict
Speaker 1: July's producer price index rose ten point four percent on
Speaker 1: a year over year basis. That would be less than
Speaker 1: June's historic eleven percent increase. Bloomberg's Viny Del Judai says
Speaker 1: more gasoline prices could be the theme of today's report
Speaker 1: falling gasoline prices. They've been slashing around for two months
Speaker 1: and accounted for almost all of June's and greasing US
Speaker 1: wholesale prices outside of fuel Bloomberg Economics as costs from
Speaker 1: Ain elevated, though the peak is probably behind us. We
Speaker 1: saw a similar pattern and Wednesday's data on July consumer prices.
Speaker 1: But there's a long way to go. Finney, Carl Judaic,
Speaker 1: Bloomberg debreak. All right, Finney, thank you. All Back now
Speaker 1: to the equity market. Shares of Disney up more than
Speaker 1: eight percent in early trading. The media giants third quarter
Speaker 1: results beat estimates for sales, profit and subscriber growth. It's
Speaker 1: also raising the price of its flagship and Disney Plus
Speaker 1: streaming service by thirty eight percent. Beget more from Bloomberg's
Speaker 1: Lucas Shaw. The thing that really Disney announced today is
Speaker 1: not only stronger growth than anybody expected in streaming, which
Speaker 1: kind of bucks the trend we saw everywhere else, whether
Speaker 1: it was Netflix, HBO, Max, Paramount, UH Peacock, but but
Speaker 1: perhaps most importantly, that it's raising prices across the board
Speaker 1: for all of its services, and it feels like it's
Speaker 1: now you know, established itself enough with the customers that's
Speaker 1: able to do that, and Bloomberry so Luke as Shaw says,
Speaker 1: Disney will introduce an and supported version of its flagship
Speaker 1: streaming service and raise the price of the ant free
Speaker 1: option to eleven dollars a month. Well, it's not just
Speaker 1: Disney on the move. This morning, Karen Shares of son
Speaker 1: Nos are plunging down nearly twenty percent in early training.
Speaker 1: Let's get the details live with Bloomberg. Tre need a Young,
Speaker 1: Good morning Grenita, Good morning Nathan. Audio products maker son
Speaker 1: Nos cut its annual revenue view. Company executives are citing
Speaker 1: a more challenging macroeconomic backdrop against an appreciating dollar and
Speaker 1: high inflation, and that's all pressure and consumer sentiment. As
Speaker 1: a result, the company extended its timeline to achieve its
Speaker 1: previously issue targets to beyond fiscal year four. Sons is
Speaker 1: also saying CFO Brittany Badgeley is stepping down to pursue
Speaker 1: another opportunity and names Eddie Lazarus in term CFO Live
Speaker 1: in New York. I'm reneed a Young Bloomberg Daybreak, I
Speaker 1: reneed a thanks Well, Shares a bumble are also following
Speaker 1: this morning, they're down more than seven percent. That's after
Speaker 1: the online dating app company trimmed its revenue forecast for
Speaker 1: the year. Again, futures this morning are on the rise.
Speaker 1: Straight ahead, we have your latest local headlines, plus a
Speaker 1: check of sports. And this is Bloomberg. Thank You're caring.
Speaker 1: At six oh seven on Wall Street, seventy five degrees
Speaker 1: in Central Park. I got an accident in New York
Speaker 1: eastbound Root two at Freeland, His and Avenue. Michael Barr
Speaker 1: is here with more on what's going on in New
Speaker 1: York and around the world, including the latest on the
Speaker 1: migrant influx. Michael, yes here. Another bus load of migrants
Speaker 1: seven shipped to New York City by Texas Governor Greg
Speaker 1: Abbott as a political message to the Biden administration and
Speaker 1: the city's leaders. Other bus loads to so called sanctuary
Speaker 1: cities have been sent to Washington. It is fueling a
Speaker 1: political battle between the Republican governor and the Democratic mayors
Speaker 1: in the cities. Yesterday, nearly a hundred migrants arrived in
Speaker 1: New York City from Texas. New York Mayor Eric Adam
Speaker 1: says he might send the bus load of New Yorkers
Speaker 1: to Texas to help Democratic gubernatorial candidate Beto O'Rourke ou
Speaker 1: Abbott from office. Abbott responded on Fox, go ahead, mayor,
Speaker 1: make my day. However, the mayor is shot back on
Speaker 1: CBS two. I know he thinks he's Clint Eastwood, but
Speaker 1: he's not. He is a anti American governant. Mayor Adam
Speaker 1: says there's nothing successful about treating people with this lack
Speaker 1: of dignity. Donald Trump says he invoked the Fifth Amendment
Speaker 1: and wouldn't answer questions under oath in the long running
Speaker 1: New York civil investigation into his business dealings. Trump was
Speaker 1: at New York Attorney General Letitia James's office yesterday. He
Speaker 1: sent out a statement saying he declined to answer the
Speaker 1: questions under the rights and privileges afforded to every citizen
Speaker 1: under the United States Constitution. And the Randy and official
Speaker 1: has had large one and for the plot to allegedly
Speaker 1: assassinate former National Security advisor John Bolton. Bolton says Iran
Speaker 1: cannot be trusted, especially when it comes to the nuclear
Speaker 1: arms deal. I think it's a totally untrustworthy government. I
Speaker 1: think there is no possibility they will comply with commitments
Speaker 1: that they make they are enemies of America. They hate
Speaker 1: US as the Great Satan, as they hate Israel as
Speaker 1: the little Satan. The Department of Justice has forty five
Speaker 1: year old Iranian operative Shahram por Safi offered three hundred
Speaker 1: thousand dollars to assassinate former National Security Advisor Bolton in
Speaker 1: retaliation for the killing of a top Iranian general in
Speaker 1: Kim Joanne's sister revealed that the North Korean leader suffered
Speaker 1: from a high fever and was seriously ill during a
Speaker 1: recent COVID outbreak. She valed to eradicate South Korean authorities
Speaker 1: if they continue to tolerate propaganda leaflets the regime blames
Speaker 1: for spreading the virus. Global News twenty more hours a
Speaker 1: day on air and on Bloomberg Quick Take, powered by
Speaker 1: more than twenty d journalists and analysts or more than
Speaker 1: twenty countries. Michael Barr and this is Bloomberg. Nathan, Okay, Michael,
Speaker 1: Almost six ten on Wall Street. Time for the Bloomberg
Speaker 1: Sports Update. Here's John Stannshower. All right, Nathan, the Mets
Speaker 1: still on fire. Another easy way, and they led the
Speaker 1: Red six to nothing in the third inning. They won
Speaker 1: ten to two. They've won six in a row and
Speaker 1: the last five and went allowed a total of nine runs.
Speaker 1: They've won fifteen of their last seventeen, and all but
Speaker 1: two of those fifteen wins have been by three wines
Speaker 1: or more. The schedule does get tough for Phillies are hot.
Speaker 1: They come to City Field tomorrow. They rallied to win
Speaker 1: last night. The Fields have won seven a row twelve
Speaker 1: of thirteen. Mets then go to Atlanta for four games.
Speaker 1: The Braves won in Boston, they still filled the Mets
Speaker 1: by seven. After that series, the Mets will go to
Speaker 1: Philly for four. Yankees off tonight and then in Boston
Speaker 1: They'll try to salvage something out of this road chip
Speaker 1: that for the disaster so far. Swept in St. Louis.
Speaker 1: In Seattle, they went nineteen innings without a run. Did
Speaker 1: come alive in the seventh with home runs by Kyla
Speaker 1: Gashioka Aaron Judge at his forty fifth of the year,
Speaker 1: but Seattle came right back bottom of the seven drives
Speaker 1: one right field. That ball is going Carlos Santana, a
Speaker 1: four three league. Carlos breaks it over for seven. Sea
Speaker 1: was whole non numbery eleven and the Mariners and they
Speaker 1: chopping it up here the T Mobile Park. At four
Speaker 1: three of the final Cairo the call home one came
Speaker 1: off Alberta Breo after Nestor Cortez had pitched very well.
Speaker 1: He had a no hitter in the sixth. The Yanks
Speaker 1: just ten and eighteen or last twenty eight games. Dyersville, Iowa.
Speaker 1: Tonight the Field of Dreams game that the Yanks played
Speaker 1: in last year. It's that comes and the Reds Also
Speaker 1: tonight the Giants preseason opener at New England. With a
Speaker 1: new coaching staff and only three preseason games now, new
Speaker 1: coach Brian Table wants to play his starters at least
Speaker 1: in the year over the going John's Dash Award Bloembrook
Speaker 1: Sports Nathan all Right, John, thank you. SMP futures up
Speaker 1: eleven points, Staff futures up a hundred twenty four Danastack
Speaker 1: futures higher by twenty one points. The tenure treasury is
Speaker 1: up to thirty seconds. The yield two point seven six percent.
Speaker 1: This is Bloomberg Bloomberg eleven three oh weather. It will
Speaker 1: turn partly sunny this afternoon with highs near eighty five degrees.
Speaker 1: Mostly sunny, low eighties to end the week. Sunshine Saturday
Speaker 1: R eight right now seventy five and cloudy in Central Park.
Speaker 1: Markets headlines and breaking news twenty four hours a day
Speaker 1: at Bloomberg dot Com, the Bloomberg Business Atland at Bloomberg Quicktake,
Speaker 1: This is a Bloomberg Business flash and I'm Karen Moscow.
Speaker 1: US dot Index futures are on the rise this morning
Speaker 1: after the SNP five hundred hit a three month high.
Speaker 1: We checked the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg. SNP futures up about ten points down,
Speaker 1: futures of A hundred fifteen and nastack future is up
Speaker 1: fifteen The decks in Germany's down at tenth of upper cent.
Speaker 1: Ten year Treasury up three thirty seconds, Yell two point
Speaker 1: seven six percent yield on a two year three point
Speaker 1: one six percent. Nimex Screwede oil is up one cent
Speaker 1: or ninety one cent at ninety two dollars eighty five
Speaker 1: cents of Barrel Comics golled down four ten percent or
Speaker 1: seven dollars ten cents at eighteen o six sixty ounce.
Speaker 1: The euro one point oh three four zero against the dollar.
Speaker 1: British found one point to two one six the yen
Speaker 1: one thirty two point five eight. And look at a
Speaker 1: bitcoin this morning at two point one percent at twenty
Speaker 1: four thousand, four hundred twenty dollars. That's a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with more unless going on around
Speaker 1: the world. Michael Karen, thank you very much. Former President
Speaker 1: Trump appeared before New York's Attorney General force warned deposition
Speaker 1: as part of a civil investigation into his family real
Speaker 1: estate business. Trump signed at the fifth declining to answer
Speaker 1: any questions. US gas prices have dipped under four dollars
Speaker 1: a gallon for the first time in more than five months.
Speaker 1: Triple A says the national average is three nine nine
Speaker 1: for a gallon of regular. In baseball, the Yankees lost
Speaker 1: to the marineris for three. The Mets beat the Reds
Speaker 1: tend to the Red Sox, Nationals, A's and Giants all lost.
Speaker 1: Global news twenty four hours a day on here and
Speaker 1: on Bloomberg Quick Take, powered by more than twenties seven
Speaker 1: hundred journalists and analysts, are more than a hundred twenty countries.
Speaker 1: I'm Michael Barr, and this is Bloomberg. Nathan all right, Michael.
Speaker 1: Thanks At six nineteen on Wall Street Live from the
Speaker 1: Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and that
Speaker 1: news we got this morning about gas prices falling finally
Speaker 1: below four dollars AGA and sets us up quite nicely
Speaker 1: for the conversation we've got teed up right now with
Speaker 1: Bloomberg Economics correspondent Michael McKee to talk about what else inflation? Mike,
Speaker 1: good morning. Uh, food and gas. Obviously, that's what a
Speaker 1: lot of consumers care about, you and me. But the
Speaker 1: Fed is looking past that, and it looks like the
Speaker 1: market's kind of looking past the Fed. Yeah, it's a
Speaker 1: little bit odd that the market ure in disagreement with
Speaker 1: the Fed about two thousand twenty three. Mary Daily, the
Speaker 1: San Francisco Fed Bank President, makes marks yesterday to the
Speaker 1: Financial Times to that effect that she doesn't see any
Speaker 1: reason why you would be thinking you'd cut rates uh
Speaker 1: next year, given that the inflation fight is far from one.
Speaker 1: All of the FEDE officials who spoke yesterday pointed out that, yes,
Speaker 1: we had a software than expected CPI report, but the
Speaker 1: year over year levels still eight and a half percent. Yeah,
Speaker 1: we're gonna hear more from San Francisco Fed President Mary
Speaker 1: Daily is gonna be on with Kathleen Hayes later on
Speaker 1: this evening, seven thirty Wall Street Time here on Bloomberg Radio.
Speaker 1: What more, Mike, do you want to hear from FEDE officials.
Speaker 1: It seems like there's been h tell me if I'm wrong,
Speaker 1: a pretty fair amount of unanimity when it comes to
Speaker 1: staying aggressive keeping the fight up against inflation with aggressive
Speaker 1: rate hikes. Yeah, there's a general agreement that their work
Speaker 1: is not done, that rates need to go higher. We're
Speaker 1: in the range of two and a quarter to two
Speaker 1: and a half percent right now, and pretty much all
Speaker 1: of them are aiming to get to between three and
Speaker 1: three and a half percent by the end of the year,
Speaker 1: so another hundred basis points. And then there's a bit
Speaker 1: of a division about how far you go beyond that.
Speaker 1: There seems to be a general feeling that once you
Speaker 1: get to three and a half, you can see what
Speaker 1: the data are telling you about inflation and about jobs,
Speaker 1: because of course they're they're keeping an eye on that
Speaker 1: as well. Uh, some like Neil cash Cary think they
Speaker 1: need to go as high as four and a half. So, uh,
Speaker 1: we'll have to wait and see where the terminal rate
Speaker 1: turns out to be. But they've all made it clear
Speaker 1: that where we are now is not where we need
Speaker 1: to be. Yeah, there's a delicate balance, isn't there while
Speaker 1: they fight inflation while still trying to preserve I guess
Speaker 1: the strong jobs numbers that we've seen the labor market
Speaker 1: continues to thrive despite the more aggressive moves we've seen
Speaker 1: from the Fed and the more aggressive talk. It's your
Speaker 1: surprised everybody with the July numbers earlier this month, and
Speaker 1: the question is can that continue a lot of job openings,
Speaker 1: but then you have the matching problem with the jobs
Speaker 1: that are open suitable for the kind of workers who
Speaker 1: are looking for jobs. We'll find that out as time
Speaker 1: goes on. But with unemployment falling to three and a
Speaker 1: half percent, even as inflation comes down, that's the best
Speaker 1: of all worlds for the FED. Does that make the
Speaker 1: job tougher for the Fed to pull off the soft
Speaker 1: landing that everybody's looking for when we have this kind
Speaker 1: of strengthen the job market, It could work both ways.
Speaker 1: In a sense, the FED is happy because unemployment is
Speaker 1: so low that the labor market can absorb a little
Speaker 1: bit higher unemployment and a little bit less demand out there.
Speaker 1: But if we keep going the way we're going and
Speaker 1: unemployment stays low and companies can't find workers, that creates
Speaker 1: more wage pressure. So if unemployment is not going up,
Speaker 1: you have to assume that wages are still rising, and
Speaker 1: that creates inflation pressure on its own. Expecting that we're
Speaker 1: going to get a little bit more clarity on the
Speaker 1: inflation picture later this morning when producer prices come out,
Speaker 1: because like you and many others have rightly noted, there's
Speaker 1: a lot of data between now and the next meeting,
Speaker 1: much less between now and Jackson Hole. Yeah, in terms
Speaker 1: of the p p I this morning, and it'll be
Speaker 1: its own discrete indicator. It tells us what companies are
Speaker 1: receiving for their goods and services uh. And and that
Speaker 1: includes services, which is an important component of of all
Speaker 1: of this, and whether or not they are slowing the
Speaker 1: pace of rate hikes uh and not rate hikes, I'm sorry,
Speaker 1: price hikes. And so that's gonna be an interesting data
Speaker 1: point for the FED to see. But because companies absorb
Speaker 1: a lot of their costs in their margins, this isn't
Speaker 1: going to tell us specifically what's going to happen to
Speaker 1: inflation going forward, but it is a data point along
Speaker 1: that road. Uh, you're absolutely right. Though. We have another
Speaker 1: CPI report, we have another jobs report, we have a
Speaker 1: retail el sales report coming up next week. All of
Speaker 1: those will feed into FED thinking. So if you asked
Speaker 1: if ed official what they were going to do at
Speaker 1: the next meeting, they would tell you probably raise rates.
Speaker 1: But by how much that's an open question. And you
Speaker 1: have to think that all that data is going to
Speaker 1: feed into market volatility as well. Thanks for this, Mike,
Speaker 1: great having on with us this morning, Bloomberg Economics correspondent
Speaker 1: Michael McKee, As we await those producer prices doout eight
Speaker 1: thirty Wall Street Time. And again another reminder, we'll be
Speaker 1: speaking live with San Francisco FED President Mary Daily seven
Speaker 1: thirty Wall Street Time this evening. Catch that conversation on
Speaker 1: Bloomberg Radio and on Bloomberg Television. Ahead of all that,
Speaker 1: futures still moving higher. SMP futures up ten points, some
Speaker 1: modest gains. STAL futures up a D eighteen. Nasdaq future
Speaker 1: is highed by eighteen points, but building off the rally
Speaker 1: that we saw yesterday off the back of consumer prices. Uh.
Speaker 1: The tenure Treasury right now up four thirty seconds. The
Speaker 1: yield two point seven six yield on the two year
Speaker 1: three point one six percent Your list snake. It's a
Speaker 1: Bloomberg Daybreak Bloomberg eleven three oh weather partly Sunday today,
Speaker 1: mid eighties for an afternoon high low eighties, mostly sunny
Speaker 1: tomorrow for Friday sunshine Saturday high near eighty right now
Speaker 1: seventy five and cloudy in Central Park. Broadcasting live from
Speaker 1: the Bloomberg Interactive Broker Studio in New York, Bloomberg e
Speaker 1: Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg
Speaker 1: one oh six one to San Francisco, Bloomberg sixty to
Speaker 1: the country, Sirius XM chandle one nine team and around
Speaker 1: the globe the Bloomberg Business apt in Bloomberg Radio dot Com.
Speaker 1: This is Bloomberg Daybreak. It's six thirty on Wall Street.
Speaker 1: Good morning. I'm Nathan Hagger and I'm Karen Moscow. We're
Speaker 1: just about three hours away from the open of US trading.
Speaker 1: It's time for the five things you need to notice
Speaker 1: start your day. Brought to you by Interactive Brokers. Interactive
Speaker 1: Brokers charges margin loan rates from two point three percent
Speaker 1: to three point three percent. Their clients can also are
Speaker 1: an extra income by lending their fully paid shares of
Speaker 1: stock rate subject to change. Learn more at i dk
Speaker 1: R dot com. Slash compare First US Future is adding
Speaker 1: to yesterday's rally if you'd by softer than expected inflation
Speaker 1: data and a Stajamroso, chief investment strategist and I Capital
Speaker 1: says it might be time to add equity exposure. The
Speaker 1: time to do this was not in February and retrospect
Speaker 1: when we still had three hundred basis points or more
Speaker 1: of rate hikes to go. But if we have seventy
Speaker 1: five or a hundred, that should not pressure the multiples
Speaker 1: as much anymore. So I would be selectively looking to
Speaker 1: add to some of the thematic stocks, to high growth
Speaker 1: stocks that have not worked in the last six months.
Speaker 1: High Capital Center Stagia Muroso says positioning will be important
Speaker 1: for buyers and current market conditions. Really. Softening inflation data
Speaker 1: maybe exciting market scaren, but it's not changing minds. At
Speaker 1: the FED. We get that storyline from Bloomberg's John Talk
Speaker 1: here John Nathan. Minneapolis FED President Neil kesh Carry says
Speaker 1: the idea of the FEDS going to start cutting rates
Speaker 1: early next year is unrealistic. I think much more likely
Speaker 1: scenario if we will raise rates to some point and
Speaker 1: then we will sit there until we get convinced that
Speaker 1: inflation is well on its way back down to two.
Speaker 1: At a separate event, the Chicago Fed President Charles Heavans
Speaker 1: said inflation remains unacceptably high. He expects the Central Bank
Speaker 1: to be increasing rates into next year. San Francisco president
Speaker 1: Mary Daily didn't rule out a third consecutive seventy five
Speaker 1: basis point increase in September. Daily. By the way, It's
Speaker 1: gonna be on Bloomberg Radio and TV tonight at seven
Speaker 1: thirty Eastern live in New York on John Tucker Bloomberg Daybreak.
Speaker 1: All right, John, thank you, you get more inflation data
Speaker 1: today with the producer price indext you out at eight
Speaker 1: thirty am, Wall Street Time, all right to Corverate News Now, Karen.
Speaker 1: Shares of Disney or higher after beat third quarter estimates,
Speaker 1: and shares of son Nos are also moving this morning
Speaker 1: in the other direction, down now twenty percent. Bloomberg's You
Speaker 1: Need a Young joins us live with that Ranita. Good morning,
Speaker 1: Nathan Audio products makers. Still those cut its annual revenue view.
Speaker 1: Company executives are citing a more challenging macroeconomic backdrop. As
Speaker 1: a result, the company extended its timeline to achieve its
Speaker 1: previously issued targets to beyond fiscal years. Is also undergoing
Speaker 1: a leadership change, with its CFO stepping down to pursue
Speaker 1: another opportunity. Live in New York. I'm really need a
Speaker 1: young Bloomberg day break. All right, we need to thank you.
Speaker 1: That's the five things that you need to notice start
Speaker 1: your day, Brought to you by Interactive Brokers and straight
Speaker 1: to hand your latest local headlines plus a check of sports.
Speaker 1: This is Bloomberg, all right, thank you. Karen six Wall Street,
Speaker 1: seventy degrees in Central Park. Still got that accident new Ark.
Speaker 1: He's found twenty two at Freeland Haisen Avenue. More coming
Speaker 1: up in traffic. First, Michael Barr with what else is
Speaker 1: going on in New York and around the world. Michael Nathan,
Speaker 1: thank you very much. The spat continues between New York
Speaker 1: Mayor Eric Adams and Texas Governor Greg Abbott. Yesterday, another
Speaker 1: bus load of about a hundred migrants arrived in New
Speaker 1: York City from Texas. Abbott says it's a message to
Speaker 1: the Biden administration and the city's leaders about the flow
Speaker 1: of migrants at the border. Mayor Adams responded, there's nothing
Speaker 1: successful about treating people with his lack of dignity. Along
Speaker 1: with Mayor Adams, City Abbot is also sending migrants to Washington,
Speaker 1: d C. Mayor Muriel Bowser, we have a growing humanitarian
Speaker 1: crisis that we expect that the federal government expects is
Speaker 1: going to only worsen. Washington d C. Mayor Muriel Bowser.
Speaker 1: More than a hundred sixty five buses have left Texas
Speaker 1: since April. Donald Trump says he invoked the Fifth Amendment
Speaker 1: and wouldn't answer questions under oath in the long running
Speaker 1: New York civil investigation into his business dealings. Trump was
Speaker 1: at New York Attorney General Letitia James's office. He sent
Speaker 1: out a statement saying he declined to answer the questions
Speaker 1: under the rights and privileges afforded to every citizen under
Speaker 1: the U s Constitution. FBI to Director Christopher Ray says
Speaker 1: he could not talk about FBI agents searching Mara Lago,
Speaker 1: the home of former President Trump. Ray did say that
Speaker 1: he is concerned about the threats to law enforcement that
Speaker 1: have been voiced since then. Any threats made against law enforcement,
Speaker 1: including the men and women of the FBI, as with
Speaker 1: any law enforcement agency, are are deplorable, endangerous. FBI Director
Speaker 1: Christopher Ray spoke from his field office in Omaha, Nebraska.
Speaker 1: The Justice Department has charged a member of a Rounds
Speaker 1: Revolutionary Guard Core with planning to assassinate John Bolton, Donald
Speaker 1: Trump's former national security advisor. The criminal complaint is against
Speaker 1: forty five year old Sharam por Safi, who remains at
Speaker 1: large abroad. Bolton says threats like these from Iran are
Speaker 1: par for the chorus for Americans to me the the
Speaker 1: Iranian nuclear weapons program and its support for this kind
Speaker 1: of terrorism are two sides of the same coin. This
Speaker 1: is the real picture of the regime in Tehran. This
Speaker 1: is what it does. It threatens to kill him Americans.
Speaker 1: The alleged plot against former National security advisor Bolton was
Speaker 1: likely revenge for the killing of a top Iranian general
Speaker 1: when Trump was president. Global who was twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered by
Speaker 1: more than twenty seven hundred journalists and analysts, more than
Speaker 1: a hundred, twenty countries. Michael Barron, this is Bloomberg, Nathan Michael,
Speaker 1: thanks almost six thirty six on Wall Street. John Sanshare
Speaker 1: has a Bloomberg Sports Up day and Yank Day there
Speaker 1: and Meti made six in a row fifteen of the
Speaker 1: last seventeen meet the Reds easily ten to two. Francisco
Speaker 1: Lindoor had another big game. He's already tied Jose Yas's
Speaker 1: record for most r b I s in a season
Speaker 1: by a Mets sorts stop. The Mets move thirty four
Speaker 1: games over five hundred. The Dodgers the only MLB team
Speaker 1: of the FEDA record. Dodgers last night won their tenth
Speaker 1: in a row. They won on a pinch hit, three
Speaker 1: run homer by Joey Gallo when they just got from
Speaker 1: the Yankees. Nike's in Seattle went nineteen straight innings without
Speaker 1: a run, finally in the seventh home runs by gosh
Speaker 1: Yoka and Aaron Judge at his forty five, but Carlos
Speaker 1: Santana home at bottom of the seventh. The Mariners won
Speaker 1: four to three, Yanks, wasting good outing by Nestor Cortez.
Speaker 1: He had a no hitter going in the sixth Yanks
Speaker 1: just one in five on this road trip and now
Speaker 1: takes them to Boston starting tomorrow. The Giants tonight Playette
Speaker 1: New England the preseason opening incase, Brian gay Ball asked
Speaker 1: about using his starter. Some guys have played a lot
Speaker 1: of football, some have played less. Everybody's in new systems
Speaker 1: here with with our system on offense, our system on defense.
Speaker 1: The kicking game is similar. But I think that's important
Speaker 1: for you know, to play football, to have live reptions.
Speaker 1: They've all at one time New England assistant as Giants coach.
Speaker 1: Of course, from plays Joe Judge. He'll be on the
Speaker 1: other sideline tonight. He's not the Patriots quarterback coach. Jets
Speaker 1: have their preseason opener tomorrow night in Philadelphi and also
Speaker 1: tomorrow Cleveland at Jacksonville. Shaun Watson expected to play for
Speaker 1: the Browns, even though he'll be suspended for the start
Speaker 1: of the regular season. Tennis in Toronto, Serena Williams loss,
Speaker 1: He's gonna play the tournament in Cincinnati, then come to
Speaker 1: New York where apparently her swan song us John actually
Speaker 1: at Bloomberg Sports our end of an era. Alright, thank
Speaker 1: you John. At six thirty seven on Wall Street. Time
Speaker 1: to take a look at stocks, some of the names
Speaker 1: moving in the pre market with Bloomberg's Laura, right, Laura,
Speaker 1: of course, the big corporate story this morning, Disney's earnings beat.
Speaker 1: We gotta dust stuff those happiest place on Earth metaphors again,
Speaker 1: we ready do. We're in a whole new world of
Speaker 1: streaming to set Yes, Disney of eight nearly eight and
Speaker 1: a half percent in pre market trading, and look, total
Speaker 1: subscribers across all of Disney streaming platforms that include Disney Plus,
Speaker 1: ESPN Plus and Hulu is now two hundred and twenty
Speaker 1: one million. That is fractionally higher than its main competitor Netflix.
Speaker 1: And those games really came from the strength of the
Speaker 1: Disney Plus platform, which itself added over fourteen million subscribers
Speaker 1: for the quarter, ahead of the Street's projections. But the
Speaker 1: losses are still heavy. At the direct to consume a
Speaker 1: business it law over a billion dollars. Disney have a
Speaker 1: solution though, They're going to introduce ads automatically on the
Speaker 1: Disney Plus flagship service and with their Disney Bundle. And
Speaker 1: if you want to avoid those adverts, you have to
Speaker 1: pay a little bit more. Three dollars extra a month
Speaker 1: on Disney Plus and two dollars extra a month for
Speaker 1: the Disney Bundle, So passing on that pursuit of growth
Speaker 1: cost to customers. We saw some strength on the Disney
Speaker 1: park side as well. And I see you're keeping an
Speaker 1: eye on another travel name this morning. Yeah, the Cassa.
Speaker 1: So this is a name that was new to me.
Speaker 1: It has a market cap of around a billion dollars,
Speaker 1: up eighteen percent ahead of the US bell. It's a
Speaker 1: holiday rental company. The loss was much worse than feared here.
Speaker 1: It was a loss of two million dollars for the quarter,
Speaker 1: compared to the average analyst estimate of a loss of
Speaker 1: seventeen million dollars. Now, the company has raised its four
Speaker 1: year guidance. That's off the back of strong demand. We've
Speaker 1: seen insatiable appetite to travel from customers. An analyst at
Speaker 1: jpmore going to say, look, the trends remained solid and
Speaker 1: the company may break even ahead of target potentially the
Speaker 1: end of this year. Now we have another big move
Speaker 1: on the downside this morning after a completely different earning story. Yes,
Speaker 1: down nearly. So this is the audio products maker known
Speaker 1: for its premium home speaker Systems. I'm familiar with this
Speaker 1: company because my dad is obsessed with his installed speaker system.
Speaker 1: Every time my parents have a dinner party, he's putting
Speaker 1: his bespoke playlist on to impress the guests. But here
Speaker 1: the downside was looked strong dollar making exports more expensive,
Speaker 1: and inflation pressuring consumer sentiment. Now is these pre market
Speaker 1: losses hold Sons will face its biggest drop in value
Speaker 1: in nearly four years. Analyst that stepl They admit these
Speaker 1: macro headwinds impacting consumer demand were far worse than they
Speaker 1: had originally expected, so not good news ahead of the
Speaker 1: open force on lull. My dad, Yeah, he's got to
Speaker 1: get more speakers around his room. Thanks Flaura, Thanks for this.
Speaker 1: Laura Right of Bloomberg News. With us checking out, the
Speaker 1: pre market futures are moving higher. SMP futures up eleven points,
Speaker 1: Staff futures up twenty nine Nasdaq futures higher by twenty
Speaker 1: two points. This is Bloomberg Bloomberg eleven three oh Weather
Speaker 1: partly sunny, mid eighties today, low eighties, mostly sunny Tomorrow,
Speaker 1: sunshine Saturday with a high near eighties, low eighties, mostly
Speaker 1: sunny by Sunday. Right now seventy five in Central Park Markets,
Speaker 1: Headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quicktake,
Speaker 1: He's a Bloomberg Business Flash and I'm Karen Moscow. And
Speaker 1: Futures on the rise this morning. Let's go to the
Speaker 1: first word breaking news dance for today's morning call here
Speaker 1: as Tatiana Daria Tantiana, good morning, Good morning, Karen. Futures
Speaker 1: are higher, like you said, with a doubt leading the way.
Speaker 1: Those contracts up about one thirty four points, s and
Speaker 1: ps up twelve and nazjac app treasuries are also higher.
Speaker 1: The tenure Yale down about a basis point to two
Speaker 1: spot seventy six percent, Oil is up one and Bitcoin
Speaker 1: is training above twenty four thousand. On the economic front today,
Speaker 1: jobless claims and p p I data at eight thirty.
Speaker 1: In early trading this morning, crypto stocks are higher. Marathon, Digital, Riot, Blockchain,
Speaker 1: and coin based Among the names regarding learnings, Disney app
Speaker 1: eight percent after reporting better than expected subscribers figures for
Speaker 1: Disney Plus and raised the price on the streaming service
Speaker 1: by thirty eight percent. And dating at Bumble and Theme
Speaker 1: Park operators six flags, both down sharply after their numbers.
Speaker 1: In other news, Morgan Stanley cut its PC shipment estimates
Speaker 1: for the year, saying demand for the personal computers is
Speaker 1: weakening and wrapping things up here, first solo was Race
Speaker 1: to Overweight at Key Bank. Live from the First and
Speaker 1: Breaking News Desk. I'm Tatiana, Darya Karen Hery, Tatiana, thank you,
Speaker 1: and here live breaking news of your Bloomberg type squawk
Speaker 1: on your terminal scue. You a w K and that's
Speaker 1: a Bloomberg business flash. Now here's Michael Barrow with Moore
Speaker 1: on what's going on around the world. Uncle Karen, thank
Speaker 1: you very much. Former President Donald Trump declined to answer
Speaker 1: questions related to business dealings in a scheduled deposition with
Speaker 1: New York State prosecutors. Trump invoked his Fifth Amendment rights
Speaker 1: against self incrimination. The Justice Department has charged a member
Speaker 1: of around Revolutionary Guard Corps with planning to assassinate John Bolton,
Speaker 1: donald Trump's former national security advisor. Three people were killed
Speaker 1: when a house exploded in Evansville, Indiana. Almost forty other
Speaker 1: homes were damaged in the blast. In baseball, the Yankees
Speaker 1: lost to the Mariners, for three The Mets beat the
Speaker 1: Reds tend to the Red Sox, Nationals, A's and Giants
Speaker 1: all lost. Global news twenty four hours a day on
Speaker 1: air and on Bloomberg Quick Tank, powered by more than
Speaker 1: journalists and analysts more than twenty countries. I'm Michael Barren.
Speaker 1: This is Bloomberg, Karen Harry, Michael, thank you. It is
Speaker 1: sixty nine on Wall Street. We turned to news and
Speaker 1: science and technology now with the Bloomberg n j I
Speaker 1: T STEM Report. It has brought to you by New
Speaker 1: Jersey Institute of Technology, ranked a top fifty national public
Speaker 1: university by US News and World Report and at top
Speaker 1: ten in the nation for engineering by money dot Com.
Speaker 1: Learned more at nj I T dot Edu and here's
Speaker 1: just making news and science, technology, engineering and math. Gas
Speaker 1: price is dipping to just under the four dollar mark
Speaker 1: for the first time in more than five months, triple
Speaker 1: Asia's The national average for a gallon of regular is
Speaker 1: three dollars ninety nine cents. Prices have dropped fifteen cents
Speaker 1: in the past weekend sixty eight cents in the last month.
Speaker 1: COVID cases in China are at a three month high.
Speaker 1: Almost half of the nearly two thousand infections came from
Speaker 1: Haynan Island, where tourists had thronged in search of rest.
Speaker 1: Spite the fast growing infection rate cast down in a
Speaker 1: and government school of achieving zero community transmission by tomorrow,
Speaker 1: and Apple stepping up it's spending on original podcast Its
Speaker 1: signed an agreement with a Pulitzer Prize winning studio, and
Speaker 1: it's holding talks with other companies about additional deals. The
Speaker 1: iPhone maker is looking to add original content to its
Speaker 1: podcast app that it hops could eventually turn into shows
Speaker 1: on its Apple TV Plus service. Sources say the deal
Speaker 1: in agreement with Futuro Studios, the maker of the criminal
Speaker 1: justice series Swave, will fund development and production of podcasts
Speaker 1: and as a Bloomberg and j I t Stem report, Nathan,
Speaker 1: all right, Karen, thank you. We are live from the
Speaker 1: Bloomberg Interactive Brokers Studios, where it's just about six fifty
Speaker 1: one on Wall Street Time Now to check what's going
Speaker 1: on in d C. Some of the top stories in
Speaker 1: our nation's capital include former President Trump leading the fifth
Speaker 1: with New York's Attorney General, Republicans vowing revenge for Trump
Speaker 1: probes if they take over Congress, Trump campaign staffer is
Speaker 1: released from nondisclosure agreements, and Speaker Pelosi warning against China
Speaker 1: establishing a new normal in Taiwan. Let's get more on
Speaker 1: all these stories now with Bloomberg. Government congressional reporter Jack Fitzpatrick.
Speaker 1: Quite the breaking news yesterday, Jack, the former president invoking
Speaker 1: the Fifth Amendment something that he said in the past,
Speaker 1: means you're guilty. Yes, uh. For one, that there's a
Speaker 1: bit of hypocrisy. This is the kind of thing that
Speaker 1: doesn't play very well, uh for former President Trump on
Speaker 1: the campaign trail if he were going to campaign. Also,
Speaker 1: it can matter in this case if they're going to
Speaker 1: bring a lawsuit. In a civil lawsuit, jurors are allowed
Speaker 1: to draw a negative inference about people pleading the Fifth
Speaker 1: whereas in a criminal suit they would be directed not
Speaker 1: to take that into consideration. So it's not a great
Speaker 1: a great sign for President former President Trump. We still
Speaker 1: don't know if they're going to bring the case and
Speaker 1: what's gonna happen next on the New York Attorney General side.
Speaker 1: But yes, the the sort of imagery of it, as
Speaker 1: well as any potential legal repercussions are not really a
Speaker 1: positive thing for Trump. Does it change things Jack. For
Speaker 1: Republicans who up to now have been really rallying around
Speaker 1: the president, particularly after the FBI search of his home
Speaker 1: in mar Lago, Florida, it seems like they've really been
Speaker 1: circling the wagons, showing support for the former president against
Speaker 1: federal government that they say is overreaching. Yeah, it does
Speaker 1: not seem that that has changed. Uh. You know, maybe
Speaker 1: there will be a little bit more of a reaction
Speaker 1: to Trump leading the fifth and this separate issue, the
Speaker 1: civil case. But there was quite an outpouring of support
Speaker 1: from high profile Republicans, uh following the FBI raid. You know,
Speaker 1: Kevin McCarthy tweeting at Merritt Garland saying preserved documents and
Speaker 1: clear your calendar. Some very clear implications that if Republicans
Speaker 1: managed to win the House and or the Senate, UH,
Speaker 1: their oversight duties and their control of the probably House
Speaker 1: Oversight Committee and the judiciary committees in the House and
Speaker 1: Senate would focus on investigating this kind of thing. If
Speaker 1: there's not a clear answer by the d o J uh.
Speaker 1: So the pressure is definitely on the Department of Justice.
Speaker 1: And it does seem that high profile, important Republicans on
Speaker 1: Capitol Hill are very much sticking by former President Trump.
Speaker 1: Does this turn into something that could galvanize voters heading
Speaker 1: into the general election in November? Is this something that
Speaker 1: energizes more than the GOP base? The idea of showing
Speaker 1: support for the former president by casting a vote for
Speaker 1: Republicans in Congress. It clearly seems to energize the base.
Speaker 1: But is this the kind of thing that uh that
Speaker 1: gets independence or or people who may not be that
Speaker 1: motivated going. It's a bit inside baseball, uh to get
Speaker 1: into these, you know, it's it's a ray on his home.
Speaker 1: We still don't know exactly what information is going to
Speaker 1: come out from the FBI and when they're going to
Speaker 1: provide more information. Uh, So between now and November, it's
Speaker 1: a bit hard to say how this plays into the
Speaker 1: mid terms, how it might play into But yes, clearly,
Speaker 1: people who were with Trump all along are are very
Speaker 1: very animated about this. It does seem as though Democrats,
Speaker 1: particularly of President Biden, are starting to feel like maybe
Speaker 1: the economy is something they can run on now, particularly
Speaker 1: after the consumer price index came in a little bit
Speaker 1: cooler than expected. Yeah, I don't know if they're going
Speaker 1: to be running on the economy wholeheartedly. But you know,
Speaker 1: I think cautious optimism is essentially the response by the
Speaker 1: Biden administration. They've said that this is good news. It's
Speaker 1: essentially a month pause in the increase in prices from
Speaker 1: June to July. But obviously, you know, you look at
Speaker 1: the year over year number in July and that was
Speaker 1: an eight and a half percent increase. So this is
Speaker 1: also something that Republicans are campaigning on. They're still saying
Speaker 1: the overall these numbers have been very bad, Uh, in
Speaker 1: the in the longer run over the last year plus. Uh,
Speaker 1: It's it ties in well though with the progress on
Speaker 1: this major tax and energy and prescription drug pricing bill
Speaker 1: that the House wants to pass on Friday. Uh. You know,
Speaker 1: there there's been some good news for Biden after a
Speaker 1: really rough stretch and for for Democrats running for re
Speaker 1: election in the mid terms. I wouldn't say they're feeling
Speaker 1: great about the state of the economy and how it
Speaker 1: has reflected on them, but a lot better than you know,
Speaker 1: maybe a couple of months ago. Yeah, I'm sure the
Speaker 1: President is hoping that that Inflation Reduction Act is going
Speaker 1: to be sort of the capper on a string of
Speaker 1: bills that he's managed to be able to sign. Over
Speaker 1: the last few days, there's been quite a number of
Speaker 1: legislative progress moving forward for the president here. Is it
Speaker 1: having any impact though on his approval ratings? Uh, it's
Speaker 1: not as if his approval rating has turned around entirely.
Speaker 1: We've seen a little bit of an uptick, but he
Speaker 1: was that's in the context of him being way down
Speaker 1: in the the low forties and many polls and uh,
Speaker 1: in the percentage of his approval rating. It's not the
Speaker 1: kind of thing that changes Biden into a major strength
Speaker 1: for vulnerable Democrats running for re election. You know, it
Speaker 1: doesn't necessarily have been changing. You know, for example, you
Speaker 1: saw when there was progress made on this Inflation Reduction Act,
Speaker 1: you saw someone like Dean Phillips in Minnesota say that
Speaker 1: he doesn't think that President Biden should run for reelection. Uh.
Speaker 1: There there's still some wariness about exactly where Democrats stand
Speaker 1: heading into the mid terms. Uh. And yes, there's a
Speaker 1: bit of momentum for their legislative accomplishments now, but does
Speaker 1: does that turn the economy around by November? Probably not.
Speaker 1: It's more long term issues they're having some six us
Speaker 1: with Okay, Jack. Thanks for this, as always, Bloomberg Government
Speaker 1: Congressional Reporter Jack Fitzpatrick, and you can read more about
Speaker 1: these stories on Bloomberg dot com or on the Bloomberg terminal.
Speaker 1: Follow all the latest on Bloomberg Radio in Washington. Bloomberg
Speaker 1: one and one oh five point seven FM, h D
Speaker 1: two SMP futures right now, they're up thirteen points. Staff
Speaker 1: futures up a hundred thirty seven. NASTAC futures are higher
Speaker 1: by twenty seven points. The tenure treasury is up to
Speaker 1: thirty seconds. The yield two point seven six percent yield
Speaker 1: on the two year three point one seven percent, nime
Speaker 1: X screws up nine tenths per cent, up eighty cents
Speaker 1: ninety two. All the seventy three cents of barrel comes
Speaker 1: golled down four tenths per cent, or seven dollars fifty
Speaker 1: cents At eighteen oh six twenty announce Bloomberg Surveillance is
Speaker 1: up next for Karen Moscow. I'm Nathan Hagar, and this
Speaker 1: is Bloomberg