Speaker 1: Live from the Bloomberg Interacted Burgers Studios. This is Bloomberg
Speaker 1: day Break for Thursday, August eleven. 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 eats prophet estimates that
Speaker 1: it announces a price hite 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 Michael Blair more ahead, I'm John stash Our.
Speaker 1: In sports, another win for the red hot Mets. The
Speaker 1: Yankees lost in Seattle. The Giants had their preseason opener
Speaker 1: tonight at New England. That's all s. Trady 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 Syrius x AM one nineteen
Speaker 1: and around the world on Bloomberg Radio Dot. Carmen By
Speaker 1: the Bloomberg Business app. Good morning, I'm Nathan Hager and
Speaker 1: I'm Karen Moscow and US Dock index futures are on
Speaker 1: the rise this morning. We are coming up to five
Speaker 1: oh one on Wall Street, and we check the markets
Speaker 1: every fifteen minutes throughout the trading day. On Bloomberg. S
Speaker 1: and P futures up nine voice this morning. Down futures
Speaker 1: up one hundred four and nasday features are up nineteen
Speaker 1: and the tenure treasury up one thirty second. You have
Speaker 1: two point seven seven percent. They yield on the two
Speaker 1: year three point one seven percent. Nathan, all right, Karen. Thanks.
Speaker 1: This rise in futures this morning is building on yesterday's
Speaker 1: powerful rally. The S and P five hundred closed at
Speaker 1: a three month high, while the Nasdaq one hundred is
Speaker 1: now up more than twenty percent from its June bottom,
Speaker 1: all fueled by softer than expected inflation data. Alan Lands,
Speaker 1: director of research at Lands Global, This skeptical, all of
Speaker 1: a sudden, now should one CPI report, and now inflation
Speaker 1: is is calm and taking care of etcetera. So for
Speaker 1: some reason, investors, you know, memes stop sucks her back,
Speaker 1: and you know it's just it's just a total exaggeration now,
Speaker 1: and Land says he still remains cautious. He was a
Speaker 1: guest on Bloomberg Business Week her weekday afternoons on Bloomberg
Speaker 1: Radio and streaming live on YouTube on Nathan, the Wall
Speaker 1: Street rally is now spilled overseas. Stocks in Hong Kong
Speaker 1: and China surged more than two percent overnight, and we
Speaker 1: get the recount from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette,
Speaker 1: Good morning, Nathan, and Karen Tex shares bird gains in
Speaker 1: the regional index excluding Japan, which was closed for a holiday.
Speaker 1: China's bullis has advanced even as investors digested a warning
Speaker 1: from the PBOC about inflation threats and a pledge to
Speaker 1: avoid massive stimulus. South Korea has one gained as much
Speaker 1: as one percent against the dollar as the nation's trade
Speaker 1: deficit one and while the Singapore dollar retreated as the
Speaker 1: Ministry of Trade and Industry lowered its twenty twenty two
Speaker 1: growth forecast following a contraction in the economy in the
Speaker 1: second quarter. In Singapore, Juliette Sally Bloomberg Daybreak, all right,
Speaker 1: lead thanks all. Softening inflation data may be exciting markets,
Speaker 1: but it's not changing minds at the FED. Let's get
Speaker 1: that story live from Bloomberg's John Tucker, John and Nathan
Speaker 1: Minneapolis FED President Neil cash car he wants the benchmark
Speaker 1: insist rate at three point nine percent by the end
Speaker 1: of this year and four point four percent by the
Speaker 1: end of three The idea that we're going to start
Speaker 1: cutting rates early next year when inflation is very likely
Speaker 1: going to be well, well, well in excess of our target,
Speaker 1: I just think it's not realistic, carries. Counterpart Charles Evans
Speaker 1: of Chicago welcome the lower CPI print, but says the
Speaker 1: inflation remains unacceptably high. He wants to continue raising rates
Speaker 1: into next year. I think it'll be three and three
Speaker 1: quarters to four percent, So sort of a four percent
Speaker 1: top funds rate at the end of next year is
Speaker 1: what I'm thinking about. Mary Daily, also adding to that call,
Speaker 1: the San Francisco FED president tells the Financial Times it's
Speaker 1: far too early to declare victory over the inflation. She's
Speaker 1: not ruling out a third consecutive seventy basis point increase.
Speaker 1: In September Live in New York, I'm John Tucker, Bloomberg
Speaker 1: Daybreak all right, John, thanks for that. Sentiment from FED
Speaker 1: officials was being echoed by the US Commerce Secretary Jenna
Speaker 1: Romando spoke of the Bloomberg's David Weston it is good news,
Speaker 1: although I do think we have to be cautious. A
Speaker 1: big reason for the good news gas prices are leveling off,
Speaker 1: and that's certainly helpful to consumers. But as you point out,
Speaker 1: there are other issues wait like in housing, that we
Speaker 1: have to still keep our eye on the ball. As
Speaker 1: we've set all along, there's no silver bullet here. Commerce
Speaker 1: Secretary Jenna A. Mondo mentioned falling gasoline prices, and we
Speaker 1: have more news on that front this morning. Triple A
Speaker 1: is reporting that the average price of gas in the
Speaker 1: US has now fallen below four dollars a gallon, and
Speaker 1: we'll get another read on US inflation this morning, Karen.
Speaker 1: Economists predict July's producer price index rose ten point four
Speaker 1: percent on a year over year basis. That's less than
Speaker 1: June's historic eleven percent increase. Bloomberg's Viny Delle Judas had
Speaker 1: more gasoline prices could be the theme of today's report.
Speaker 1: Following gasoline prices they've been slashing around for two months
Speaker 1: and encountered for almost all of June's in grease and
Speaker 1: US wholesale prices outside of fuel, Bloomberg Economics as costs
Speaker 1: remain 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, Benney, Deryl Judae,
Speaker 1: Bloomberg Deprit All right, Thenny, thank you all. Back now
Speaker 1: to the equity market. Shares of Disney Or up almost
Speaker 1: seven and a half percent in early trading. The media
Speaker 1: giants third quarter results beat estimates for sales, profit and
Speaker 1: subscriber growth. It's also raising the price of its flagship
Speaker 1: at Disney Plus streaming service by thirty eight percent. Begin
Speaker 1: more from Bloomberg's Lucas Shaw. The thing that really Disney
Speaker 1: announced today is not only stronger growth than anybody expected
Speaker 1: in streaming, which kind of bucks the trend we saw
Speaker 1: everywhere else, whether its Netflix, HBO, Max, Paramount, UH Peacock,
Speaker 1: but but perhaps most importantly that it's raising prices across
Speaker 1: the board for all of its services. And it feels
Speaker 1: like it's now, you know, established itself enough with the
Speaker 1: customers that it is able to do that and Bloomberg's
Speaker 1: Look at Shaw says Disney will introduce an AD supported
Speaker 1: version of its flagship streaming service and raise the price
Speaker 1: of the AD free option to eleven dollars a month.
Speaker 1: It's not just Disney on the move. This morning, shares
Speaker 1: of so No Nos are down twenty percent in early trading.
Speaker 1: Let's get the details on that life from Bloomberg's Ornia Young.
Speaker 1: Good morning, Ronina, 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 pressuring consumer sentiment. As a result,
Speaker 1: the company extended its timeline to achieve its previously issue
Speaker 1: targets to beyond fiscal year four. Sons also says CFO
Speaker 1: Brittany Bagley is stepping down to pursue another opportunity and
Speaker 1: names Eddie Lazarus in term CFO live in New York.
Speaker 1: I'm gonned a Young Bloomberg daybreak, All right, we needed
Speaker 1: thanks well. Shares a bumble are also following this morning.
Speaker 1: They're down more than seven per cent, and that's after
Speaker 1: the online dating company trimmed its revenue forecast for the year.
Speaker 1: Futures this morning on the rise, S and P futures
Speaker 1: up nine points and straight to hand, your latest local headlines,
Speaker 1: plus the check of sports. And this is Bloomberg. All right, Karen,
Speaker 1: thank you. This five oh seven on Wall Street, Words,
Speaker 1: seventy six degrees in Central Park and dealing with an
Speaker 1: accident South and New York State through a exit twelve.
Speaker 1: Details coming up in traffic. First, Michael Barr with more
Speaker 1: on what's going on in New York and around the world,
Speaker 1: including the ongoing spat between the mayor and the Texas governor. Michael, Yes,
Speaker 1: you are correct, Nathan. Another bus load of migrants have
Speaker 1: been 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 one hundred migrants arrived in
Speaker 1: New York City from Texas. New York Mayor Eric Adams
Speaker 1: says he might send a bus load of New Yorkers
Speaker 1: to Texas to help Democratic gubernatorial candidate better Or Rourke
Speaker 1: ounced Abbott from office. Abbott responded on Fox go ahead, Mayor,
Speaker 1: make my day. However, the mayor shot back on CBS two.
Speaker 1: I know he thinks he's Clint Eastwood, but he's not.
Speaker 1: He is a anti American governant. Mayor Adam says there's
Speaker 1: nothing successful about treating people with this lack of dignity.
Speaker 1: Donald Trump says he invoked the Fifth Amendment and wouldn't
Speaker 1: answer questions under oath in the long running New York
Speaker 1: civil investigation into his business dealings. Trump was at New
Speaker 1: York Attorney General Letitia James's office yesterday. He sent out
Speaker 1: a statement saying he declined to answer the questions under
Speaker 1: the rights and privileges afforded to every citizen under the
Speaker 1: United States Constitution. And Randy and Official is at large
Speaker 1: one and for the plot to allegedly assassinate former National
Speaker 1: Security Advisor John Bolton. Bolton says Iran cannot be trusted,
Speaker 1: especially when it comes to the nuclear arms deal. I
Speaker 1: think it's a totally untrustworthy government. I think there is
Speaker 1: no possibility they will comply with commitments that they make.
Speaker 1: They are enemies of America. They hate US as the
Speaker 1: great Satan, as they hate Israel as the little Satan.
Speaker 1: The Department of Justice says forty five year old Iranian
Speaker 1: operative Shahram Borsafi offered three hundred thousand dollars to assassinate
Speaker 1: former National Security Advisor Bolton and retaliation for the killing
Speaker 1: of a top Iranian general in Kim John UN's sister
Speaker 1: revealed that North Korean leader Kim joan un suffered from
Speaker 1: a high fever and was seriously ill during a recent
Speaker 1: covid U break. She vowed to eradicate South Korean authorities
Speaker 1: if they continued to tolerate propaganda leaflets the regime blames
Speaker 1: for spreading the virus. Global News twenty four hours a
Speaker 1: day on airand on Bloomberg Quick powered by more than
Speaker 1: twenty seven hundred journalist and analysts more than a hundred
Speaker 1: twenty countries. On Michael bar this is Bloomberg, Nathan, Thank you, Michael.
Speaker 1: Coming up to five cent on Wall Street. Time for
Speaker 1: the Bloomberg Sports Up. Thanko morning, John Stash alright, your morning, Nathan.
Speaker 1: That's still on fire. Another easy win. They led the
Speaker 1: Red six ductor in the third and Tham they won
Speaker 1: ten to two. They've won six in a row and
Speaker 1: the last five they've only allowed a total of nine runs.
Speaker 1: They've won fifteen of their last seventeen. All but two
Speaker 1: of those fifteen wins have been by three runs or more.
Speaker 1: The schedule does get tough for Phillies. Come into City
Speaker 1: Field tomorrow. The Phills rally to win last night. They've
Speaker 1: won seven in a row, twelve of thirteen. Mets then
Speaker 1: go to Atlanta for four games. The Braves won in Boston,
Speaker 1: still thrill the Mets by seven. After that series, the
Speaker 1: Mets go to Philly for four. The Yankees off tonight
Speaker 1: and then in Boston. They'll try to salvage something out
Speaker 1: of this road trip that's been so far a disaster.
Speaker 1: Swept in St. Louis and in Seattle they win nineteen
Speaker 1: innings without a run. Came alive in the seventh home
Speaker 1: runs by Kyle Agashioka and Aaron's judge hit number forty five,
Speaker 1: but Seattle came right back the bottom of the seventies.
Speaker 1: That ball is going back up. Carlos Santana a four
Speaker 1: three league. Carlos breaks it over for seventeen with whole
Speaker 1: number eleven and the Mariners. They happen en up here.
Speaker 1: T Mobile Parks I wrote the call. The homer came
Speaker 1: off Alberta Brios for three of the final the Yankster
Speaker 1: ten and eighteen their last twenty eight games in Dyersville, Iowa.
Speaker 1: Tonight Field of Dreams game, the one the Yankees played
Speaker 1: in last year. Tonight it's the Cubs and Reds. Also
Speaker 1: tonight the Giants preseason opener at New England and the
Speaker 1: new coaching staff and only three preseason games now new
Speaker 1: coach Briant Dable wants to play. His daughters Daniel Jones,
Speaker 1: say Kwan Barkley expected to play in the early going.
Speaker 1: John Stash warning Bloomberg Sports, Nathan Okay, John, thank you.
Speaker 1: SMP futures right now up seven points, South futures up
Speaker 1: ninety six. Insect futures are highed by eleven points ten.
Speaker 1: Your treasuries up on thirty second, the yield two point
Speaker 1: seven seven per cent. This is Bloomberg Bloomberg eleventh three
Speaker 1: oh weather. Chance for a shower this morning, otherwise becoming
Speaker 1: partly sunny with high near eighty five degrees, low eighties,
Speaker 1: mostly sunny Tomorrow, sunshine high near eighty on Saturday, right
Speaker 1: now seventy six in Central Park markets, headlines and breaking
Speaker 1: news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business at and at Bloomberg Quick Tape. This
Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow. And
Speaker 1: stocks are trimming a rally spurred by software than expected
Speaker 1: US inflation data as investors, I guess comments from Federal
Speaker 1: Reserve officials who remain resolute on the need for further
Speaker 1: interest rate hikes. We check the markets every fifteen minutes
Speaker 1: throughout the trading day on Bloomberg and right now westn
Speaker 1: P futures they're up nine points down futures of nineties
Speaker 1: seven and nowsday futures of twenty one. The Dacks in
Speaker 1: Germany is down about two tenths of upper cent ten
Speaker 1: year treasury up one thirty second deal two point seven
Speaker 1: six percent yield on the two year three point one
Speaker 1: seven percent. Nine X. Screwed oil is up about nine
Speaker 1: tenths per cent, up eighty two cents and ninety two
Speaker 1: seventy four cents of barrel. Comic Schold is down half percent,
Speaker 1: or eight dollars eighty cents at eight ten o four
Speaker 1: and ninety announce the Euro one point oh three to
Speaker 1: eight against the dollar, British pound one point two to
Speaker 1: two zero, the yen is at one thirty two point
Speaker 1: six four and look at it, big coin, It's up
Speaker 1: two and a half percent to twenty four thousand, five
Speaker 1: hundred dollars. And today we are watching for the weekly
Speaker 1: report on initial jobless claims at a thirty Wall Street time,
Speaker 1: along with the Producer Price Index as a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with Moore on what's going on
Speaker 1: around the world. Michael, good morning, Good morning Karen. Former
Speaker 1: President Trump appeared before New York's Attorney General Force Warren
Speaker 1: deposition as part of a civil investigation into his family
Speaker 1: real estate business. Trump sided the fifth, declining to answer
Speaker 1: any questions. North Korean to Kim John Un declared victory
Speaker 1: over COVID nineteen at a national meeting his sister, and
Speaker 1: an especially combative speech said Kim had suffered a fever
Speaker 1: himself and laid dubious blame against South Korea, vowing deadly retaliation.
Speaker 1: In baseball, the Yankees lost to the Mariners for three.
Speaker 1: The Mets beat the Reds ten to the Red Sox, Nationals,
Speaker 1: Hayes and giants all lost. Global news 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 are more
Speaker 1: than a hundred twenty countries. I'm Michael Barr, and this
Speaker 1: is Bloomberg. Nathan him Michael, thank you. It's five nineteen
Speaker 1: on Wall Street Live from the Bloomberg Interactive Brokers studios.
Speaker 1: This is Bloomberg a daybreak. Let's get right into this
Speaker 1: market this morning. We're joined down by St. Dwack, chief
Speaker 1: investment officer at Flow Bank ste It's great to speak
Speaker 1: with you this morning. I'd love to get your take
Speaker 1: on the rally off the back of yesterday's cooling consumer
Speaker 1: price print. Well, good morning. You know, I think we've
Speaker 1: had upside surprises for the last few months, and then
Speaker 1: we had that big upside surprise and the non farm payrolls,
Speaker 1: so to finally get an indicator that this inflation is
Speaker 1: on its way. We've had a number of other smaller
Speaker 1: indicators with the i M prices paid and then the
Speaker 1: price index and the p M I S, so we're
Speaker 1: starting to get those signals, but we needed one sort
Speaker 1: of official data point to come in lower and to
Speaker 1: come in lower than expectations, both on the headline and
Speaker 1: on core. So it is something of a relief for markets,
Speaker 1: even if the FED is still saying that they're going
Speaker 1: to keep hiking. I don't think the market saying we're
Speaker 1: at the end. I think they're saying, we might not
Speaker 1: need seventy five basis points at the next few meetings,
Speaker 1: and we're going to give it a little time to see.
Speaker 1: We have six weeks till the next FED meeting. We're
Speaker 1: gonna start to see some of those first hikes filter
Speaker 1: through into the economy as well. Well, what do you
Speaker 1: think there's going to be needed? As you mentioned, a
Speaker 1: lot of FED speakers are saying they're not done yet.
Speaker 1: It's sounds like even some of the what people used
Speaker 1: to be doves like Neil cash Cary are still keeping
Speaker 1: seventy five basis points on the table in the next meeting.
Speaker 1: I think they don't want to, you know, say there
Speaker 1: they've they've got that inflation is beaten too soon, and
Speaker 1: they certainly don't want inflation and expectations to become an
Speaker 1: anchored again or to start lifting because the FED is
Speaker 1: lifting its foot off the pedals, so they're gonna keep
Speaker 1: talking hawk ish. Um we again, we have six weeks
Speaker 1: till the next said meeting. It feels more probably like
Speaker 1: we should get fifty basis points, and that will depend
Speaker 1: on the non farm payrolls and the next inflation number,
Speaker 1: and then maybe a couple more basis points. But I'm
Speaker 1: not sure we're going to get those outside rate hikes anymore.
Speaker 1: In terms of the rally that we saw yesterday, do
Speaker 1: you see this as the start of a new bull
Speaker 1: market or is it just a bear market bounce? It's
Speaker 1: always difficult to judge that. It does feel like we've
Speaker 1: we've passed some of those resistance levels and that June
Speaker 1: should prove to be the lows. Now. I don't think
Speaker 1: yesterday is going to be the you know, the start
Speaker 1: of the next straight line up. We're probably going to
Speaker 1: have some kind of headline that scares us a little more.
Speaker 1: Jackson Hole I think will prove to be something of
Speaker 1: a non event. But I don't think we get any
Speaker 1: change of tone from the Fed then, so we have
Speaker 1: to wait a little more for those those headlines. Make
Speaker 1: sure we don't get another few more big scares from
Speaker 1: some of those those chip companies or from the retailers
Speaker 1: that are coming up in the next couple of weeks.
Speaker 1: So I think bumpy ride, but it's starting to feel
Speaker 1: more like the June was the bottom. How bumpy do
Speaker 1: you think? I mean, it seems like we've seen some
Speaker 1: pretty strong moves one way or the other, depending on
Speaker 1: what kind of headlines we get from the data. We're
Speaker 1: definitely getting big knee jerk reactions. And let's not forget
Speaker 1: that we're in August, so volumes are always lower. We're
Speaker 1: geting sort of fewer data points, uh for now, at least,
Speaker 1: especially because the bulk of the earning season is behind us.
Speaker 1: Um it can move, you know, a couple of percentage
Speaker 1: points in either direction on a given day. We had
Speaker 1: a big bounce in July, so a little bit of
Speaker 1: consolidation now makes sense. But I think as we move
Speaker 1: into September and the end of the year, the direction
Speaker 1: should be upward, just to keep it on the idea
Speaker 1: of a medium term outlook here in our last minute
Speaker 1: as the If the FED does stay aggressive and keeps
Speaker 1: with the talk that they've been putting out there, what
Speaker 1: is the market impact? Can stocks continue to power through
Speaker 1: on earnings. That's going to be a big question, and
Speaker 1: it will depend how much or how aggressive the Fed
Speaker 1: wants to continue to be. We we've seen a peek
Speaker 1: at around three point six three point seven of a
Speaker 1: terminal rate expectations from the market, So if we go
Speaker 1: back towards that from where we are today, I don't
Speaker 1: think it's that big of a move. Um So I
Speaker 1: think markets can weather it. But would you have short
Speaker 1: term corrections or we'd have a little more of those
Speaker 1: growth fears coming back because we're really gone between inflation
Speaker 1: and growth fears back and forth. I think that can
Speaker 1: last a little bit longer. Really great to get your thoughts,
Speaker 1: ste thanks again for being with us. S D. Dwack,
Speaker 1: chief investment Officer at Flow Bank. Right now, after yesterday's rally,
Speaker 1: SMP futures are pointing a little bit higher, up eight points,
Speaker 1: Stal futures up, NASDAC futures pairing some of their gains
Speaker 1: are up twenty points UH. The tech heavy NASDAC had
Speaker 1: led the rally UH that we saw yesterday off the
Speaker 1: back of July c p I tenure Treasury right now
Speaker 1: is up one thirty second. The yield two point seven
Speaker 1: six percent yield on the two year three point one
Speaker 1: seven percent, nim X s crewde is higher up nine
Speaker 1: cents percent of seventy nine cents, ninety two dollars seventy
Speaker 1: two cents a barrel, and Comics goal down a half percent,
Speaker 1: down eight dollars fifty cents. At eighteen oh five twenty
Speaker 1: announce Stay with us. You're listening to Bloomberg Day Right
Speaker 1: Bloomberg eleven three oh weather. We could see a shower
Speaker 1: this morning. Otherwise partly sunny, mid eighties for highs low
Speaker 1: eighties to end the week, Tomorrow, sunshine eighty for Saturday.
Speaker 1: Right now seventy six 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 O six one to San Francisco, Bloomberg nine six
Speaker 1: to the country, Sirius XM to one, and around the
Speaker 1: globe the Bloomberg Business and Bloomberg Radio dot Com. This
Speaker 1: is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning.
Speaker 1: I'm Nathan Hagar and I'm Karen Moscow. We're just about
Speaker 1: four hours away. From the open of US trading. Let's
Speaker 1: get you up to date on the news you need
Speaker 1: to know. At this shower, US Future is adding to
Speaker 1: yesterday's rally. I do present search in the S and
Speaker 1: P five hundred was fueled by softer than expected inflation data,
Speaker 1: and Stacey m Rosso, chief investment strategist at Capital, says
Speaker 1: it might be time to add equity exposure. The time
Speaker 1: to do this was not in February and retrospect, when
Speaker 1: we still had three hundred basis points or more of
Speaker 1: rate hikes to go. But if we have seventy five
Speaker 1: or a hundred, that should not pressure the multiples as
Speaker 1: much anymore. So I would be selectively looking to add
Speaker 1: to some of the thematic stocks, to high growth stocks
Speaker 1: that have not worked in the last six months. My
Speaker 1: capitals and a Statia Murosso's as positioning will be important
Speaker 1: for buyers and current market conditions well. Softening inflation data
Speaker 1: makes site markets, Karen, but it's not changing minds at
Speaker 1: the FED. Bloomberg's John Tucker joins US Live at that story.
Speaker 1: John Minip was FED President Neil cosh Car says the
Speaker 1: idea that FED is going to start cutting rates early
Speaker 1: next year is unrealistic. I think much more likely scenario
Speaker 1: if we will raise rates to some point and then
Speaker 1: we will sit there until you get convinced that inflation
Speaker 1: is well on its way back down to two. At
Speaker 1: the separate events, Chicago Fed President Charles Evans that inflation
Speaker 1: remains unacceptably high. He expects the Central Bank to be
Speaker 1: increasing rates into next year, and San Francisco president Mary
Speaker 1: Daily didn't rule out at third consecutive bases point the
Speaker 1: increase in September. Daily, by the way, it's going to
Speaker 1: be on Bloomberg Radio and TV tonight at seven thirty
Speaker 1: Eastern live in New York on John Tucker Bloomberg Daybreak.
Speaker 1: All right, John, thank you well. We get more inflation
Speaker 1: data today with the producer price ind Actually at eight
Speaker 1: thirty am Wall Street time. We're also seeing pressure ease
Speaker 1: at the pump. Triple A reports the average price of
Speaker 1: gas in the US has fallen below four dollars a
Speaker 1: Gallon the Corporate News Now, Karen Shares of Disney or
Speaker 1: up after it beat third quarter estimates and announced it's
Speaker 1: introducing an ad supported version of its flagship streaming service,
Speaker 1: Disney Plus. There will also be a price increase if
Speaker 1: you don't want ads. Disney shares up almost seven and
Speaker 1: a half percent. All shares A Sons also moving this morning,
Speaker 1: Nathan down more than twenty percent. I'm Bloomberg's real need
Speaker 1: a young joins us live with that story. Ready to
Speaker 1: good morning, Good morning, Karen. Audio products maker so NOS
Speaker 1: cut its annual revenue view. Company executives are signing a
Speaker 1: more challenging macroeconomic backdrop, and as a result, the company
Speaker 1: extended its timeline to achieve its previously issued targets to
Speaker 1: beyond fiscal year four. SOS is also undergoing a leadership change,
Speaker 1: with its CFO stepping down to pursue another opportunity. Live
Speaker 1: in New York, I'm really need a young Bloomberg day
Speaker 1: break all. I ready to thank you and your latest
Speaker 1: local headlines plus a check of sports, all straight ahead.
Speaker 1: This is Bloomberg. Thanks on Wall Street seventy five degrees.
Speaker 1: Still dealing with the accident south on New York State
Speaker 1: three w Eggs at twelve. Michael Barr has more on
Speaker 1: what's 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 slow to migrants arrived in New York City from Texas.
Speaker 1: Abbott says it's a message to the Biden of and
Speaker 1: illustration and the city's leaders about stopping the flow of
Speaker 1: migrants at the border. Mayor Adams responded, there's nothing successfulful
Speaker 1: about treating people with his lack of dignity. Along with
Speaker 1: 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 would not answer questions under oath in the long
Speaker 1: running New York civil investigation into his business dealings. Trump
Speaker 1: was at New York Attorney General Letitia James's office. 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 U S Constitution. FBI Director Christopher Ray says
Speaker 1: he could not talk about FBI agents searching my a 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 and dangerous. FBI
Speaker 1: Director Christopher Ray spoke from his field office in Omaha, Nebraska.
Speaker 1: The Justice Department has charged a member of Iran's Revolutionary
Speaker 1: Guard Corps with planning to assassinate John Bolton, Donald Trump's
Speaker 1: former national security adviser. The alleged plot against Bolton was
Speaker 1: likely revenge for the killing of a top Iranian general.
Speaker 1: Win Trump was president Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty seven hundred journalist and analyst in more than
Speaker 1: a hundred twenty countries. I'm Michael Barr, and this is Bloomberg.
Speaker 1: Nathan Okay, Michael, Thanks by thirty five on Wall Street.
Speaker 1: John Stashire has a Bloomberg Sports Sunday Right. Nathan Mets
Speaker 1: made it six in a row, fifteen of the last seven.
Speaker 1: Team Meat the Reds easily ten to two. Francisco Indoor
Speaker 1: had another big day. He's already tied Jose Reys his
Speaker 1: record for most RBIs in a season by a mex shortstop.
Speaker 1: Mets move thirty four games over five hundred, the Dodgers
Speaker 1: the only MLB team of a better record. After a
Speaker 1: day off, the Mets will now take on the Phillies
Speaker 1: with the one to punch. Max Scherzer starts tomorrow. Jacob
Speaker 1: mcrom Saturday. Yankees sleeping in Seattle, nineteen straight hittings without
Speaker 1: a run. Finally in the seventh home runs by Kyle
Speaker 1: he gosh Yoka and Aaron Judge of this forty five,
Speaker 1: but Carlos Santana homer off Albert Debreo bottom of the seventh.
Speaker 1: Amritors won for three Yanks, wasting a good outing by
Speaker 1: Nestor Cortez. He had a no hitter going in the
Speaker 1: sixth and the Yanks just one in five on this
Speaker 1: road trip, then now takes them to Boston starting tomorrow.
Speaker 1: The Giants tonight hit New England the preseason opener. Because
Speaker 1: Brian dave Ball asked about using his starters, at least
Speaker 1: in the early going, some guys have played a lot
Speaker 1: of football, some have played less. Everybody's in new systems
Speaker 1: here with our him on offense or 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 reps
Speaker 1: all at one time. New England assistant. The Jets have
Speaker 1: their preseason opener tomorrow night in Philadelphia and also tomorrow
Speaker 1: Cleveland at Jacksonville, and Deshaun Watson expected to play for
Speaker 1: the Browns, his new team, even though he'll be suspended
Speaker 1: for the start of the regular season. Tennis in Toronto,
Speaker 1: Serena Williams lost. She's gonna play the tournament in Cincinnati
Speaker 1: and then come to New York for apparently her swan
Speaker 1: song at the US Open. John Stashward Bloomberg Sports than
Speaker 1: all right, thank you, John. It's almost five thirty seven
Speaker 1: on Wall Street. Time for the Tri State Business Report.
Speaker 1: Here's Bloomberg's ed Corey In New York City, the m
Speaker 1: t A is one step closer to rolling out a
Speaker 1: congestion pricing plan. It would charge some motorists as much
Speaker 1: as twenty three bucks to enter Manhattan Central Business District.
Speaker 1: The tolling scenarios for a plan of first for US
Speaker 1: City were outlined in an environmental assessment report released Wednesday.
Speaker 1: Gasolene inventories in the Central Atlantic, which includes New York
Speaker 1: Harbor home to NIMES, physical deliveries have following to their
Speaker 1: lowest absolute level since November twelve. Aside from that year,
Speaker 1: Central Atlantic stockpiles are at their lowest seasonal level ever
Speaker 1: since record keeping began. In a popular in New York
Speaker 1: City based ice cream chain is coming to d C.
Speaker 1: Van lew And Ice Cream says it plans at least
Speaker 1: two locations there, a little more than two and a
Speaker 1: half years after the Brooklyn based business retained advisers to
Speaker 1: begin a national expansion. As your Bloomberg Trying State Business Report,
Speaker 1: I'm Ed Corey. Thanks said, It's almost five thirty eight
Speaker 1: on Wall Street. Bloomberg Radio is on the air from
Speaker 1: San Francisco to New York, London to Hong Kong. Let's
Speaker 1: check in with our global news team for some of
Speaker 1: the top stories heard on our three hundred affiliate radio
Speaker 1: stations around the world. I'm Steve Potis chen Chen Wins
Speaker 1: in New York. We're talking about another record high for
Speaker 1: average Manhattan's Department rent on k r H in Houston,
Speaker 1: the price at the pump Nationally, it's now below four
Speaker 1: bucks a gallon. I'm Gina Servetti and for w c
Speaker 1: CEO in Minneapolis, I'm reporting that Cargill said annual revenues
Speaker 1: surge twenty three percent to a record one hundred sixty
Speaker 1: five billion in its latest fiscal year. Hanley's Matteo and
Speaker 1: I'm w Beazy in Boston. I'll be reporting on why
Speaker 1: You're Disney BLUs subscription is about to get more expensive.
Speaker 1: I'm Stephen Carroll on Bloomberg DAB Digital Radio in London.
Speaker 1: We've been speaking to the UK's biggest water supplier about
Speaker 1: how it plans to cope as the country heads into
Speaker 1: another heat wave. Mid Chloring on w w J in Detroit.
Speaker 1: I'm reporting a Michigan distillery is closing its third northern
Speaker 1: Michigan location in the pan year. And those are some
Speaker 1: of the stories are twenty seven hundred Bloomberg journalists and
Speaker 1: analysts are working on this morning around the world. It's
Speaker 1: five thirty nine on Wall Street. The following is an
Speaker 1: editorial from Bloomberg Opinion. This editorial was written by the
Speaker 1: Bloomberg Editorial Board. More than eight hundred thousand Americans suffer
Speaker 1: from end stage renal disease Without dialysis or a kidney transplant.
Speaker 1: The condition is fatal, but paying for treatment costs the
Speaker 1: government more than fifty billion dollars a year, in large
Speaker 1: part due to policy decisions and concentration in the dialysis industry.
Speaker 1: A recent Supreme Court decision risks driving the price even higher.
Speaker 1: Congress should take steps to control costs, support innovation, and
Speaker 1: promote competition among dialysis providers. Expanding efforts to improve the
Speaker 1: supply of kidneys donated for transplant would be valuable as well.
Speaker 1: The wide availability of dialysis has provided life saving treatments
Speaker 1: to countless Americans, but at considerable public expense. Making the
Speaker 1: industry more competitive would benefit patients and taxpayers alike. This
Speaker 1: editorial was written by the Bloomberg Editorial Board. For more
Speaker 1: Bloomberg opinion, please go Tooomberg dot com, slash opinion or
Speaker 1: O P I n go on the Bloomberg terminal. These
Speaker 1: has been Bloomberg Opinion. You can hear Bloomberg opinion editorials
Speaker 1: every weekday. At this time, terminal customers can read more
Speaker 1: at O P I n go. Futures moving higher this
Speaker 1: Thursday morning, You're listening to Bloomberg Daybreak Bloomberg eleven three
Speaker 1: oh weather partly sunny, but I can't roll out a
Speaker 1: shower this morning. We'll get up to your eighty five
Speaker 1: degrees sunshine, low eighties tomorrow, sunny near eighty on Saturday.
Speaker 1: Right now seventy five in Central Park markets. Headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot com,
Speaker 1: the Bloomberg Business at and at Bloomberg Dictape's a Bloomberg
Speaker 1: Business Flash, and I'm kar in Moscow. U stock Index
Speaker 1: futures on the rise this morning after the S and
Speaker 1: P five hundred hit a three month high, which the
Speaker 1: markets every fifteen minutes throughout the trading day on Bloomberg.
Speaker 1: U S and P future is up fifteen points down.
Speaker 1: Futures have a hundred thirty seven nash DAG futures up
Speaker 1: forty six and the decks in Germany is that will changed.
Speaker 1: And your treasury up to thirty seconds held two point
Speaker 1: seven six percent yield on the two year three point
Speaker 1: one seven percent. NIMEX screwed oil up one point one
Speaker 1: percent of ninety eight cents and ninety two dollars eighty
Speaker 1: nine cents of barrel. Comex schooled on a half percent
Speaker 1: or nine dollars twenty cents at eighteen o four fifty
Speaker 1: an ounce, the Euro one point oh three three five
Speaker 1: against the dollar British found one point to two zero,
Speaker 1: the yen one thirty two point six one, and Bitcoin
Speaker 1: this morning up two and a half percent at twenty
Speaker 1: four thousand, five d twenty five dollars. That's a Bloomberg
Speaker 1: business flash. Now here's Michael Barr with more on what's
Speaker 1: going on around the world. Muchael Karen, thank you very much.
Speaker 1: Jim jan un sister revealed that the North Korean leaders
Speaker 1: suffered from a high fever during a recent COVID outbreak.
Speaker 1: She vowed to eradicate South Korean authorities if they continued
Speaker 1: to drop propaganda leaflets the regime blames for spreading the virus.
Speaker 1: Ukrainian officials says the attack on a Russian air base
Speaker 1: and occupied Crimea was the work of Ukrainian special forces.
Speaker 1: The Washington Post reports the Ukrainian Air Force said that
Speaker 1: nine Russian military planes were destroyed at the base. In baseball,
Speaker 1: the Yankees lost to the Mariners four three. The Mets
Speaker 1: beat the Reds tend to the Red SOX, Nationals, A's
Speaker 1: and giants all lost. Global news twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty seven hundred journalist and analysts more than a
Speaker 1: dred twenty countries. Michael barn this is Bloomberg. Nathan Okay, Michael,
Speaker 1: thank you are close to five forty nine on Wall
Speaker 1: Street Live from the Bloomberg Interactive Broker Studios. This is
Speaker 1: a Bloomberg daybreak, and we continue to watch shares of
Speaker 1: Walt Disney in the pre market. They're up nearly eight percent,
Speaker 1: adding to yesterday's UH post market gains following better than
Speaker 1: expected sales, profit and subscriber growth for the Disney Street lineup,
Speaker 1: and now the entertainment giants coming out with a plan
Speaker 1: to charge those subscribers even more at the end of
Speaker 1: the year. Let's get more on these Disney earnings. Can
Speaker 1: the owners with us this morning? Director of Equity Research
Speaker 1: at c f R A Ken, Good morning. So I
Speaker 1: guess the plan is if you want to pay what
Speaker 1: you are paying now, you're going to have to deal
Speaker 1: with ads? Is that just the way now? In streaming? Well,
Speaker 1: there's UH, but you know Disney offers something for everyone,
Speaker 1: But they raised prices for the free Disney Plus thirty
Speaker 1: eight percent, and also for the Precious Life Sports ESPN
Speaker 1: Plus they raised that as well. So I think Disney
Speaker 1: and its competitors are just getting their footing in terms
Speaker 1: of what do they want to offer, how much can
Speaker 1: they charge? And what we really didn't see is how
Speaker 1: much monthly turned there is in this new part of
Speaker 1: media call streaming. And I think it was interesting to
Speaker 1: me that was that Disney says that it has basically
Speaker 1: a little bit more subscribers than Netflix, but it didn't
Speaker 1: really parse out whether those subscribers are all Disney Plus
Speaker 1: or whether some people might be getting more than one service.
Speaker 1: How do you read that? Um So Disney, it's very diverse,
Speaker 1: and about the subscribers pay going forward only a dollar
Speaker 1: twenty a month, and that's Disney Plus hot Star in India,
Speaker 1: So not every subscriber is the same uh for their
Speaker 1: Disney Plus for North America and also for the rest
Speaker 1: of the world. They still expect growth, but they ratcheted
Speaker 1: down their target to two fifteen the two thirty million
Speaker 1: by twenty four. I'm not sure investors care about the
Speaker 1: total subscriber account as to whether you can make money
Speaker 1: and keep this as a stable business with recurring revenue,
Speaker 1: and that's a narrative probably as we go into what
Speaker 1: do investors care about? Do you think does this sort
Speaker 1: of change the subscriber growth story after some of the
Speaker 1: lackluster growth numbers that we've seen over the last couple
Speaker 1: of quarters from Netflix. I think it is, And coming
Speaker 1: out of the earning seasons and media companies, we found
Speaker 1: that if you're also on the creation side of programming
Speaker 1: and producing movies, you're going to put them in the
Speaker 1: theaters first and then put them in the premium higher plans,
Speaker 1: the ad free streaming plans first. Unlike Netflix, it's just
Speaker 1: good business because the duration of getting more banks for
Speaker 1: your buckets there, and I think that's a lesson learned
Speaker 1: and streaming. You know, it's still something that's evolving, but
Speaker 1: the traditional linear networks, broadcasts and pay TV are still
Speaker 1: paying the rent for these companies um and for Disney
Speaker 1: of course, not that we should ignore it. The Parks
Speaker 1: was a blowout quarter, but it's likely that recession in
Speaker 1: three could put a damper and Parks attendant. As you say,
Speaker 1: it does seem like that Disney does have that sort
Speaker 1: of diversified base that it can build from, unlike some
Speaker 1: of the other mainly streaming players here. But on our
Speaker 1: last minute here, do you think Disney is making a
Speaker 1: play to be the streaming leader? Now? I mean, as
Speaker 1: you mentioned, it's got quite the content library. It's not
Speaker 1: a total substitution from the other distributions that they have,
Speaker 1: and I'm not sure it's something you want to stout
Speaker 1: the most that you're a streaming leader simply because it's
Speaker 1: going to be a very high turned business and one
Speaker 1: that everyone is still trying to figure out. Disney is
Speaker 1: Disney because of its blockbuster movies, um, it's ESPN Sports,
Speaker 1: and also it's networks like ABC. You know, so it's
Speaker 1: a leader because it has just a great portfolio of
Speaker 1: media assets. Thanks Ken, good having you on with us
Speaker 1: this morning. Ken ley On, director of Equity Research at
Speaker 1: c f R A. Karen Nathan, Thank you. It is
Speaker 1: five fifty three on Wall Street. It's time for the
Speaker 1: Bloomberg Law Report. Let's get to the legal stories we
Speaker 1: are watching this morning from Bloomberg Jeff Billinger. Sources say
Speaker 1: the Federal Trade Commission is set to take its first
Speaker 1: step toward consumer data protection rules that would govern businesses
Speaker 1: like alphabet meta platforms. Oprah Winfrey's company is suing to
Speaker 1: college professors over the title of a podcast. The professors
Speaker 1: say they're fans of Winfrey and they call their podcast
Speaker 1: Oprah Demis. Hooters of America has hired a Lisa Pittman Cleek,
Speaker 1: a labor and entertainment lawyer, as its new chief legal officer.
Speaker 1: Bloomberg Law everything you need, all on one legal research platform,
Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more
Speaker 1: at Bloomberg Law dot com. All right, Jeff, thank you.
Speaker 1: Now another legal story we're watching. Former President Donald Trump
Speaker 1: is now suggesting the FBI planted evidence when agents searched
Speaker 1: as Mara Lago home, while other Republicans are demanding a
Speaker 1: full accounting from the Justice Department about why the search
Speaker 1: warrant was carried out. Not much is known about what
Speaker 1: evidence was gathered in the unprecedented search, which was part
Speaker 1: of an investigation into whether Trump and properly took documents
Speaker 1: from the White House, But the critical question appears to
Speaker 1: be whether classified documents were seized. For more of Bloomberg
Speaker 1: student Grosso's feased, a national security law expert Brad Moss,
Speaker 1: a partner at Mark Zaide. Brad tell us a little
Speaker 1: about the Presidential Records Act. The Presidential Records Act, which
Speaker 1: was created in the aftermath of Watergate, provides the outline
Speaker 1: the mechanism by which presidential records, everything created during the
Speaker 1: course of any president's tenure, are documented, logs, stored, and
Speaker 1: ultimately released to the public over of course of time.
Speaker 1: But it's the property of the National Archives. What the
Speaker 1: Presidential Records Acts made clear, and this was fight that
Speaker 1: Congress had with Richard Nixon during Watergate, was that a
Speaker 1: president's records are not his, they are the public's record.
Speaker 1: So Rett. Earlier this year, the National Archives retrieved fifteen
Speaker 1: boxes of documents from Moral Lago and it was reported
Speaker 1: that they contained classified documents. So how serious is it
Speaker 1: if the FBI finds more classified documents in this latest search.
Speaker 1: Very serious. And so here's how this works is a
Speaker 1: lot of people are getting confused because when Donald Trump
Speaker 1: was president, there's a lot of things he could do
Speaker 1: with classified information you can't do as a private citizen.
Speaker 1: The moment Joe Biden took the oath of office and
Speaker 1: became the next president, Donald Trump's authority to classify or
Speaker 1: declassified information was gone. Any document that was still labeled
Speaker 1: as classified and had not been properly declassified in accordance
Speaker 1: with procedure and protocol had to still be treated as classified,
Speaker 1: had to be still be maintained in classified spaces, secured
Speaker 1: and classified containers. When Donald Trump took all these boxes
Speaker 1: to Marra Lago haphazardly didn't ensure that class of information
Speaker 1: was removed from them. He took classified documents out of
Speaker 1: a secure space at the White House and put it
Speaker 1: in an unsecure space at Mara Lago and it's sat
Speaker 1: there for months. That is a violation of multiple different
Speaker 1: provisions of the Espionage Act. That is a very serious
Speaker 1: threat to Donald Trump right now. And what the FBI
Speaker 1: is most likely looking into is one, if there's any
Speaker 1: information left and to how it was held and how
Speaker 1: it was ever brought to Morrow Lago in the first place.
Speaker 1: So then this is not just a record keeping problem.
Speaker 1: It's criminal charges, yes. And I have no reason to
Speaker 1: believe necessarily that there will be a Presidential Records Act
Speaker 1: type criminal charge, even if they could find a way
Speaker 1: to make that, because that sectually doesn't definitely have a
Speaker 1: criminal provisions that would not imagine a criminal charge based
Speaker 1: off simply the issue of documents. If all the documents
Speaker 1: have been unclassified, there'd be no criminal issues. In my view,
Speaker 1: this is a problem for Donald Trump because they found
Speaker 1: classified documents at Mara Lago. He was no longer authorized
Speaker 1: to have them there. They had not been properly transported
Speaker 1: or stored. That is his problem. And as Brad Morris Moss,
Speaker 1: a partner at Mark Zad, speaking at the Bloomberg Student Grosso,
Speaker 1: catch more in that interview plus analysis of the latest
Speaker 1: legal news by subscribing to the Bloomberg Law Podcast or
Speaker 1: downloading this show at Bloomberg dot com Slash podcast. Attorneys
Speaker 1: can find exceptional legal research and business development tools at
Speaker 1: Bloomberg Law dot com and on the Bloomberg terminal at
Speaker 1: b Law go. SMP future is moving higher up fourteen
Speaker 1: points down. Futures have one D thirty two and nasday
Speaker 1: futures of thirty nine. Still ahead of Bloomberg daybreak and
Speaker 1: check on the business headlines and all the news you
Speaker 1: need to start your day. This as Bloomberg