WEBVTT - Bloomberg Daybreak: August 11, 2022 - Hour 1 (Radio) 0:00:01.240 --> 0:00:04.760 Live from the Bloomberg Interacted Burgers Studios. This is Bloomberg 0:00:04.800 --> 0:00:08.680 day Break for Thursday, August eleven. Coming up this hour, 0:00:09.039 --> 0:00:12.680 US futures look to add to yesterday's rally. Softening inflation 0:00:12.800 --> 0:00:15.760 isn't swaying FETE officials when it comes to policy. Gas 0:00:15.800 --> 0:00:18.800 prices continue to fall, dipping below four dollars a gallon, 0:00:18.920 --> 0:00:21.599 and Disney shares search as it eats prophet estimates that 0:00:21.680 --> 0:00:24.640 it announces a price hite for streaming. New York Mayor 0:00:24.680 --> 0:00:28.240 Adams and Texas Governor Rabbit continue to spa over bus 0:00:28.280 --> 0:00:31.600 loads of migrants to the city. Plus former President Trump 0:00:31.680 --> 0:00:35.400 leads the fifth Michael Blair more ahead, I'm John stash Our. 0:00:35.440 --> 0:00:37.400 In sports, another win for the red hot Mets. The 0:00:37.479 --> 0:00:40.760 Yankees lost in Seattle. The Giants had their preseason opener 0:00:40.800 --> 0:00:45.720 tonight at New England. That's all s. Trady Ahead on 0:00:45.840 --> 0:00:49.240 Bloomberg day Break on Bloomberg eleven, Free on New York, 0:00:49.440 --> 0:00:54.080 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.360 --> 0:00:58.800 Bloomberg nine sixties and Francisco Syrius x AM one nineteen 0:00:59.040 --> 0:01:02.200 and around the world on Bloomberg Radio Dot. Carmen By 0:01:02.360 --> 0:01:09.240 the Bloomberg Business app. Good morning, I'm Nathan Hager and 0:01:09.319 --> 0:01:12.240 I'm Karen Moscow and US Dock index futures are on 0:01:12.280 --> 0:01:14.440 the rise this morning. We are coming up to five 0:01:14.480 --> 0:01:16.199 oh one on Wall Street, and we check the markets 0:01:16.200 --> 0:01:19.160 every fifteen minutes throughout the trading day. On Bloomberg. S 0:01:19.200 --> 0:01:22.440 and P futures up nine voice this morning. Down futures 0:01:22.480 --> 0:01:25.480 up one hundred four and nasday features are up nineteen 0:01:25.800 --> 0:01:28.120 and the tenure treasury up one thirty second. You have 0:01:28.200 --> 0:01:30.960 two point seven seven percent. They yield on the two 0:01:31.040 --> 0:01:34.920 year three point one seven percent. Nathan, all right, Karen. Thanks. 0:01:35.000 --> 0:01:37.920 This rise in futures this morning is building on yesterday's 0:01:37.959 --> 0:01:40.800 powerful rally. The S and P five hundred closed at 0:01:40.800 --> 0:01:43.480 a three month high, while the Nasdaq one hundred is 0:01:43.520 --> 0:01:46.360 now up more than twenty percent from its June bottom, 0:01:46.440 --> 0:01:50.120 all fueled by softer than expected inflation data. Alan Lands, 0:01:50.120 --> 0:01:53.360 director of research at Lands Global, This skeptical, all of 0:01:53.440 --> 0:01:57.640 a sudden, now should one CPI report, and now inflation 0:01:57.760 --> 0:02:01.000 is is calm and taking care of etcetera. So for 0:02:01.000 --> 0:02:04.800 some reason, investors, you know, memes stop sucks her back, 0:02:04.960 --> 0:02:10.639 and you know it's just it's just a total exaggeration now, 0:02:10.680 --> 0:02:12.920 and Land says he still remains cautious. He was a 0:02:12.919 --> 0:02:16.240 guest on Bloomberg Business Week her weekday afternoons on Bloomberg 0:02:16.320 --> 0:02:19.440 Radio and streaming live on YouTube on Nathan, the Wall 0:02:19.480 --> 0:02:22.600 Street rally is now spilled overseas. Stocks in Hong Kong 0:02:22.639 --> 0:02:25.280 and China surged more than two percent overnight, and we 0:02:25.320 --> 0:02:29.239 get the recount from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, 0:02:29.280 --> 0:02:31.600 Good morning, Nathan, and Karen Tex shares bird gains in 0:02:31.600 --> 0:02:34.639 the regional index excluding Japan, which was closed for a holiday. 0:02:34.919 --> 0:02:38.280 China's bullis has advanced even as investors digested a warning 0:02:38.360 --> 0:02:41.280 from the PBOC about inflation threats and a pledge to 0:02:41.320 --> 0:02:44.560 avoid massive stimulus. South Korea has one gained as much 0:02:44.560 --> 0:02:47.040 as one percent against the dollar as the nation's trade 0:02:47.080 --> 0:02:49.960 deficit one and while the Singapore dollar retreated as the 0:02:49.960 --> 0:02:52.839 Ministry of Trade and Industry lowered its twenty twenty two 0:02:52.840 --> 0:02:55.880 growth forecast following a contraction in the economy in the 0:02:55.919 --> 0:02:59.800 second quarter. In Singapore, Juliette Sally Bloomberg Daybreak, all right, 0:03:00.080 --> 0:03:03.120 lead thanks all. Softening inflation data may be exciting markets, 0:03:03.120 --> 0:03:05.919 but it's not changing minds at the FED. Let's get 0:03:05.960 --> 0:03:09.080 that story live from Bloomberg's John Tucker, John and Nathan 0:03:09.080 --> 0:03:12.040 Minneapolis FED President Neil cash car he wants the benchmark 0:03:12.120 --> 0:03:14.800 insist rate at three point nine percent by the end 0:03:14.840 --> 0:03:17.480 of this year and four point four percent by the 0:03:17.600 --> 0:03:21.040 end of three The idea that we're going to start 0:03:21.040 --> 0:03:24.960 cutting rates early next year when inflation is very likely 0:03:25.000 --> 0:03:27.640 going to be well, well, well in excess of our target, 0:03:27.840 --> 0:03:31.480 I just think it's not realistic, carries. Counterpart Charles Evans 0:03:31.480 --> 0:03:34.800 of Chicago welcome the lower CPI print, but says the 0:03:34.840 --> 0:03:39.560 inflation remains unacceptably high. He wants to continue raising rates 0:03:39.600 --> 0:03:42.280 into next year. I think it'll be three and three 0:03:42.320 --> 0:03:44.760 quarters to four percent, So sort of a four percent 0:03:44.920 --> 0:03:47.680 top funds rate at the end of next year is 0:03:47.720 --> 0:03:50.640 what I'm thinking about. Mary Daily, also adding to that call, 0:03:50.720 --> 0:03:53.880 the San Francisco FED president tells the Financial Times it's 0:03:53.960 --> 0:03:57.560 far too early to declare victory over the inflation. She's 0:03:57.600 --> 0:04:01.240 not ruling out a third consecutive seventy basis point increase. 0:04:01.320 --> 0:04:04.240 In September Live in New York, I'm John Tucker, Bloomberg 0:04:04.320 --> 0:04:06.839 Daybreak all right, John, thanks for that. Sentiment from FED 0:04:06.880 --> 0:04:10.000 officials was being echoed by the US Commerce Secretary Jenna 0:04:10.080 --> 0:04:13.400 Romando spoke of the Bloomberg's David Weston it is good news, 0:04:13.400 --> 0:04:16.400 although I do think we have to be cautious. A 0:04:16.480 --> 0:04:20.440 big reason for the good news gas prices are leveling off, 0:04:21.120 --> 0:04:25.120 and that's certainly helpful to consumers. But as you point out, 0:04:25.680 --> 0:04:28.240 there are other issues wait like in housing, that we 0:04:28.279 --> 0:04:30.960 have to still keep our eye on the ball. As 0:04:31.000 --> 0:04:34.040 we've set all along, there's no silver bullet here. Commerce 0:04:34.040 --> 0:04:38.000 Secretary Jenna A. Mondo mentioned falling gasoline prices, and we 0:04:38.120 --> 0:04:40.599 have more news on that front this morning. Triple A 0:04:40.680 --> 0:04:42.680 is reporting that the average price of gas in the 0:04:42.760 --> 0:04:45.960 US has now fallen below four dollars a gallon, and 0:04:46.000 --> 0:04:48.679 we'll get another read on US inflation this morning, Karen. 0:04:48.720 --> 0:04:53.120 Economists predict July's producer price index rose ten point four 0:04:53.160 --> 0:04:55.880 percent on a year over year basis. That's less than 0:04:56.000 --> 0:04:59.960 June's historic eleven percent increase. Bloomberg's Viny Delle Judas had 0:05:00.080 --> 0:05:03.320 more gasoline prices could be the theme of today's report. 0:05:03.440 --> 0:05:07.120 Following gasoline prices they've been slashing around for two months 0:05:07.160 --> 0:05:09.640 and encountered for almost all of June's in grease and 0:05:09.760 --> 0:05:13.800 US wholesale prices outside of fuel, Bloomberg Economics as costs 0:05:13.839 --> 0:05:17.279 remain elevated, though the peak is probably behind us. We 0:05:17.360 --> 0:05:21.280 saw a similar pattern and Wednesday's data on July consumer prices. 0:05:21.520 --> 0:05:24.359 But there's a long way to go, Benney, Deryl Judae, 0:05:24.440 --> 0:05:26.920 Bloomberg Deprit All right, Thenny, thank you all. Back now 0:05:26.960 --> 0:05:29.599 to the equity market. Shares of Disney Or up almost 0:05:29.640 --> 0:05:32.279 seven and a half percent in early trading. The media 0:05:32.360 --> 0:05:35.719 giants third quarter results beat estimates for sales, profit and 0:05:35.760 --> 0:05:39.400 subscriber growth. It's also raising the price of its flagship 0:05:39.400 --> 0:05:42.880 at Disney Plus streaming service by thirty eight percent. Begin 0:05:42.920 --> 0:05:46.440 more from Bloomberg's Lucas Shaw. The thing that really Disney 0:05:46.440 --> 0:05:49.720 announced today is not only stronger growth than anybody expected 0:05:50.000 --> 0:05:51.960 in streaming, which kind of bucks the trend we saw 0:05:52.000 --> 0:05:56.080 everywhere else, whether its Netflix, HBO, Max, Paramount, UH Peacock, 0:05:56.279 --> 0:05:59.239 but but perhaps most importantly that it's raising prices across 0:05:59.279 --> 0:06:01.800 the board for all of its services. And it feels 0:06:01.839 --> 0:06:04.480 like it's now, you know, established itself enough with the 0:06:04.480 --> 0:06:06.880 customers that it is able to do that and Bloomberg's 0:06:06.880 --> 0:06:10.039 Look at Shaw says Disney will introduce an AD supported 0:06:10.120 --> 0:06:13.200 version of its flagship streaming service and raise the price 0:06:13.240 --> 0:06:15.760 of the AD free option to eleven dollars a month. 0:06:16.160 --> 0:06:18.240 It's not just Disney on the move. This morning, shares 0:06:18.320 --> 0:06:22.120 of so No Nos are down twenty percent in early trading. 0:06:22.200 --> 0:06:24.880 Let's get the details on that life from Bloomberg's Ornia Young. 0:06:24.920 --> 0:06:28.200 Good morning, Ronina, Good morning, Nathan. Audio products maker son 0:06:28.240 --> 0:06:32.120 Nos cut its annual revenue view. Company executives are citing 0:06:32.120 --> 0:06:36.880 a more challenging macroeconomic backdrop against an appreciating dollar and 0:06:36.960 --> 0:06:41.599 high inflation, and that's all pressuring consumer sentiment. As a result, 0:06:41.640 --> 0:06:45.120 the company extended its timeline to achieve its previously issue 0:06:45.200 --> 0:06:50.440 targets to beyond fiscal year four. Sons also says CFO 0:06:50.560 --> 0:06:54.440 Brittany Bagley is stepping down to pursue another opportunity and 0:06:54.560 --> 0:06:58.160 names Eddie Lazarus in term CFO live in New York. 0:06:58.160 --> 0:07:00.640 I'm gonned a Young Bloomberg daybreak, All right, we needed 0:07:00.720 --> 0:07:03.440 thanks well. Shares a bumble are also following this morning. 0:07:03.440 --> 0:07:05.600 They're down more than seven per cent, and that's after 0:07:05.600 --> 0:07:09.360 the online dating company trimmed its revenue forecast for the year. 0:07:09.760 --> 0:07:12.400 Futures this morning on the rise, S and P futures 0:07:12.440 --> 0:07:15.280 up nine points and straight to hand, your latest local headlines, 0:07:15.360 --> 0:07:23.520 plus the check of sports. And this is Bloomberg. All right, Karen, 0:07:23.520 --> 0:07:25.400 thank you. This five oh seven on Wall Street, Words, 0:07:25.440 --> 0:07:27.960 seventy six degrees in Central Park and dealing with an 0:07:27.960 --> 0:07:30.320 accident South and New York State through a exit twelve. 0:07:30.360 --> 0:07:33.920 Details coming up in traffic. First, Michael Barr with more 0:07:33.920 --> 0:07:36.320 on what's going on in New York and around the world, 0:07:36.400 --> 0:07:41.160 including the ongoing spat between the mayor and the Texas governor. Michael, Yes, 0:07:41.280 --> 0:07:44.120 you are correct, Nathan. Another bus load of migrants have 0:07:44.200 --> 0:07:46.800 been shipped to New York City by Texas Governor Greg 0:07:46.840 --> 0:07:50.240 Abbott as a political message to the Biden administration and 0:07:50.440 --> 0:07:54.480 the city's leaders. Other bus loads to so called sanctuary 0:07:54.600 --> 0:07:57.560 cities have been sent to Washington. It is fueling a 0:07:57.560 --> 0:08:01.080 political battle between the Republican governor and the Democratic mayors 0:08:01.120 --> 0:08:04.560 in the cities. Yesterday, nearly one hundred migrants arrived in 0:08:04.680 --> 0:08:08.040 New York City from Texas. New York Mayor Eric Adams 0:08:08.040 --> 0:08:10.480 says he might send a bus load of New Yorkers 0:08:10.480 --> 0:08:14.560 to Texas to help Democratic gubernatorial candidate better Or Rourke 0:08:14.800 --> 0:08:18.960 ounced Abbott from office. Abbott responded on Fox go ahead, Mayor, 0:08:19.440 --> 0:08:22.680 make my day. However, the mayor shot back on CBS two. 0:08:23.200 --> 0:08:27.440 I know he thinks he's Clint Eastwood, but he's not. 0:08:28.520 --> 0:08:34.160 He is a anti American governant. Mayor Adam says there's 0:08:34.200 --> 0:08:37.480 nothing successful about treating people with this lack of dignity. 0:08:37.920 --> 0:08:40.880 Donald Trump says he invoked the Fifth Amendment and wouldn't 0:08:40.920 --> 0:08:43.840 answer questions under oath in the long running New York 0:08:43.920 --> 0:08:47.720 civil investigation into his business dealings. Trump was at New 0:08:47.800 --> 0:08:51.679 York Attorney General Letitia James's office yesterday. He sent out 0:08:51.679 --> 0:08:54.079 a statement saying he declined to answer the questions under 0:08:54.120 --> 0:08:57.240 the rights and privileges afforded to every citizen under the 0:08:57.360 --> 0:09:01.160 United States Constitution. And Randy and Official is at large 0:09:01.160 --> 0:09:04.320 one and for the plot to allegedly assassinate former National 0:09:04.400 --> 0:09:08.400 Security Advisor John Bolton. Bolton says Iran cannot be trusted, 0:09:08.520 --> 0:09:11.920 especially when it comes to the nuclear arms deal. I 0:09:11.960 --> 0:09:15.080 think it's a totally untrustworthy government. I think there is 0:09:15.160 --> 0:09:19.000 no possibility they will comply with commitments that they make. 0:09:19.360 --> 0:09:22.160 They are enemies of America. They hate US as the 0:09:22.240 --> 0:09:25.520 great Satan, as they hate Israel as the little Satan. 0:09:26.000 --> 0:09:28.720 The Department of Justice says forty five year old Iranian 0:09:28.760 --> 0:09:33.079 operative Shahram Borsafi offered three hundred thousand dollars to assassinate 0:09:33.120 --> 0:09:36.839 former National Security Advisor Bolton and retaliation for the killing 0:09:36.880 --> 0:09:40.240 of a top Iranian general in Kim John UN's sister 0:09:40.320 --> 0:09:44.080 revealed that North Korean leader Kim joan un suffered from 0:09:44.080 --> 0:09:47.439 a high fever and was seriously ill during a recent 0:09:47.480 --> 0:09:51.319 covid U break. She vowed to eradicate South Korean authorities 0:09:51.320 --> 0:09:55.079 if they continued to tolerate propaganda leaflets the regime blames 0:09:55.080 --> 0:09:58.080 for spreading the virus. Global News twenty four hours a 0:09:58.160 --> 0:10:01.240 day on airand on Bloomberg Quick powered by more than 0:10:01.320 --> 0:10:03.640 twenty seven hundred journalist and analysts more than a hundred 0:10:03.640 --> 0:10:06.440 twenty countries. On Michael bar this is Bloomberg, Nathan, Thank you, Michael. 0:10:11.280 --> 0:10:13.199 Coming up to five cent on Wall Street. Time for 0:10:13.200 --> 0:10:16.319 the Bloomberg Sports Up. Thanko morning, John Stash alright, your morning, Nathan. 0:10:16.320 --> 0:10:18.800 That's still on fire. Another easy win. They led the 0:10:18.840 --> 0:10:20.520 Red six ductor in the third and Tham they won 0:10:20.600 --> 0:10:22.439 ten to two. They've won six in a row and 0:10:22.480 --> 0:10:25.319 the last five they've only allowed a total of nine runs. 0:10:25.320 --> 0:10:28.280 They've won fifteen of their last seventeen. All but two 0:10:28.280 --> 0:10:30.880 of those fifteen wins have been by three runs or more. 0:10:31.200 --> 0:10:33.760 The schedule does get tough for Phillies. Come into City 0:10:33.760 --> 0:10:35.800 Field tomorrow. The Phills rally to win last night. They've 0:10:35.840 --> 0:10:38.679 won seven in a row, twelve of thirteen. Mets then 0:10:38.760 --> 0:10:41.720 go to Atlanta for four games. The Braves won in Boston, 0:10:42.120 --> 0:10:44.360 still thrill the Mets by seven. After that series, the 0:10:44.400 --> 0:10:46.760 Mets go to Philly for four. The Yankees off tonight 0:10:46.800 --> 0:10:49.640 and then in Boston. They'll try to salvage something out 0:10:49.679 --> 0:10:52.079 of this road trip that's been so far a disaster. 0:10:52.280 --> 0:10:54.960 Swept in St. Louis and in Seattle they win nineteen 0:10:54.960 --> 0:10:57.880 innings without a run. Came alive in the seventh home 0:10:57.960 --> 0:11:01.320 runs by Kyle Agashioka and Aaron's judge hit number forty five, 0:11:01.640 --> 0:11:04.439 but Seattle came right back the bottom of the seventies. 0:11:06.000 --> 0:11:15.400 That ball is going back up. Carlos Santana a four 0:11:15.640 --> 0:11:19.880 three league. Carlos breaks it over for seventeen with whole 0:11:20.240 --> 0:11:24.560 number eleven and the Mariners. They happen en up here. 0:11:24.880 --> 0:11:27.319 T Mobile Parks I wrote the call. The homer came 0:11:27.360 --> 0:11:30.040 off Alberta Brios for three of the final the Yankster 0:11:30.200 --> 0:11:33.400 ten and eighteen their last twenty eight games in Dyersville, Iowa. 0:11:33.480 --> 0:11:36.240 Tonight Field of Dreams game, the one the Yankees played 0:11:36.280 --> 0:11:38.120 in last year. Tonight it's the Cubs and Reds. Also 0:11:38.160 --> 0:11:41.120 tonight the Giants preseason opener at New England and the 0:11:41.200 --> 0:11:43.880 new coaching staff and only three preseason games now new 0:11:43.920 --> 0:11:47.040 coach Briant Dable wants to play. His daughters Daniel Jones, 0:11:47.040 --> 0:11:49.280 say Kwan Barkley expected to play in the early going. 0:11:49.600 --> 0:11:52.680 John Stash warning Bloomberg Sports, Nathan Okay, John, thank you. 0:11:52.840 --> 0:11:55.440 SMP futures right now up seven points, South futures up 0:11:55.520 --> 0:11:58.959 ninety six. Insect futures are highed by eleven points ten. 0:11:59.040 --> 0:12:01.360 Your treasuries up on thirty second, the yield two point 0:12:01.440 --> 0:12:08.480 seven seven per cent. This is Bloomberg Bloomberg eleventh three 0:12:08.480 --> 0:12:10.760 oh weather. Chance for a shower this morning, otherwise becoming 0:12:10.800 --> 0:12:13.880 partly sunny with high near eighty five degrees, low eighties, 0:12:13.960 --> 0:12:17.920 mostly sunny Tomorrow, sunshine high near eighty on Saturday, right 0:12:17.960 --> 0:12:23.840 now seventy six in Central Park markets, headlines and breaking 0:12:23.880 --> 0:12:26.800 news twenty four hours a day at Bloomberg dot Com, 0:12:26.880 --> 0:12:29.959 the Bloomberg Business at and at Bloomberg Quick Tape. This 0:12:30.400 --> 0:12:39.360 is a Bloomberg Business Flash and I'm Karen Moscow. And 0:12:39.440 --> 0:12:42.320 stocks are trimming a rally spurred by software than expected 0:12:42.400 --> 0:12:45.720 US inflation data as investors, I guess comments from Federal 0:12:45.760 --> 0:12:48.679 Reserve officials who remain resolute on the need for further 0:12:48.760 --> 0:12:51.120 interest rate hikes. We check the markets every fifteen minutes 0:12:51.160 --> 0:12:53.880 throughout the trading day on Bloomberg and right now westn 0:12:53.880 --> 0:12:57.080 P futures they're up nine points down futures of nineties 0:12:57.120 --> 0:13:00.080 seven and nowsday futures of twenty one. The Dacks in 0:13:00.160 --> 0:13:03.000 Germany is down about two tenths of upper cent ten 0:13:03.080 --> 0:13:05.600 year treasury up one thirty second deal two point seven 0:13:05.679 --> 0:13:08.600 six percent yield on the two year three point one 0:13:08.720 --> 0:13:11.880 seven percent. Nine X. Screwed oil is up about nine 0:13:11.920 --> 0:13:14.040 tenths per cent, up eighty two cents and ninety two 0:13:14.360 --> 0:13:17.640 seventy four cents of barrel. Comic Schold is down half percent, 0:13:17.720 --> 0:13:19.679 or eight dollars eighty cents at eight ten o four 0:13:19.720 --> 0:13:22.599 and ninety announce the Euro one point oh three to 0:13:22.840 --> 0:13:25.120 eight against the dollar, British pound one point two to 0:13:25.320 --> 0:13:28.040 two zero, the yen is at one thirty two point 0:13:28.120 --> 0:13:30.160 six four and look at it, big coin, It's up 0:13:30.160 --> 0:13:32.440 two and a half percent to twenty four thousand, five 0:13:32.520 --> 0:13:35.200 hundred dollars. And today we are watching for the weekly 0:13:35.240 --> 0:13:38.400 report on initial jobless claims at a thirty Wall Street time, 0:13:38.440 --> 0:13:41.880 along with the Producer Price Index as a Bloomberg business flash. 0:13:41.880 --> 0:13:44.240 Now here's Michael Barr with Moore on what's going on 0:13:44.280 --> 0:13:47.199 around the world. Michael, good morning, Good morning Karen. Former 0:13:47.240 --> 0:13:50.839 President Trump appeared before New York's Attorney General Force Warren 0:13:50.880 --> 0:13:54.480 deposition as part of a civil investigation into his family 0:13:54.640 --> 0:13:58.080 real estate business. Trump sided the fifth, declining to answer 0:13:58.080 --> 0:14:01.679 any questions. North Korean to Kim John Un declared victory 0:14:01.800 --> 0:14:05.560 over COVID nineteen at a national meeting his sister, and 0:14:05.640 --> 0:14:09.520 an especially combative speech said Kim had suffered a fever 0:14:09.640 --> 0:14:14.760 himself and laid dubious blame against South Korea, vowing deadly retaliation. 0:14:15.320 --> 0:14:18.280 In baseball, the Yankees lost to the Mariners for three. 0:14:18.480 --> 0:14:22.520 The Mets beat the Reds ten to the Red Sox, Nationals, 0:14:22.560 --> 0:14:26.200 Hayes and giants all lost. Global news twenty four hours 0:14:26.200 --> 0:14:29.400 a day on air and on Bloomberg Quicktake, powered by 0:14:29.440 --> 0:14:32.160 more than twenty seven hundred journalists and analysts are more 0:14:32.160 --> 0:14:34.760 than a hundred twenty countries. I'm Michael Barr, and this 0:14:35.040 --> 0:14:38.000 is Bloomberg. Nathan him Michael, thank you. It's five nineteen 0:14:38.040 --> 0:14:41.320 on Wall Street Live from the Bloomberg Interactive Brokers studios. 0:14:41.360 --> 0:14:44.080 This is Bloomberg a daybreak. Let's get right into this 0:14:44.200 --> 0:14:47.000 market this morning. We're joined down by St. Dwack, chief 0:14:47.040 --> 0:14:50.200 investment officer at Flow Bank ste It's great to speak 0:14:50.200 --> 0:14:52.200 with you this morning. I'd love to get your take 0:14:52.280 --> 0:14:55.600 on the rally off the back of yesterday's cooling consumer 0:14:55.640 --> 0:15:00.600 price print. Well, good morning. You know, I think we've 0:15:00.640 --> 0:15:04.000 had upside surprises for the last few months, and then 0:15:04.040 --> 0:15:06.880 we had that big upside surprise and the non farm payrolls, 0:15:07.120 --> 0:15:12.000 so to finally get an indicator that this inflation is 0:15:12.320 --> 0:15:15.320 on its way. We've had a number of other smaller 0:15:15.360 --> 0:15:18.480 indicators with the i M prices paid and then the 0:15:18.520 --> 0:15:21.480 price index and the p M I S, so we're 0:15:21.480 --> 0:15:24.400 starting to get those signals, but we needed one sort 0:15:24.440 --> 0:15:27.440 of official data point to come in lower and to 0:15:27.480 --> 0:15:30.160 come in lower than expectations, both on the headline and 0:15:30.280 --> 0:15:33.600 on core. So it is something of a relief for markets, 0:15:34.240 --> 0:15:36.200 even if the FED is still saying that they're going 0:15:36.240 --> 0:15:39.040 to keep hiking. I don't think the market saying we're 0:15:39.040 --> 0:15:41.440 at the end. I think they're saying, we might not 0:15:41.560 --> 0:15:45.080 need seventy five basis points at the next few meetings, 0:15:45.560 --> 0:15:48.160 and we're going to give it a little time to see. 0:15:48.760 --> 0:15:50.640 We have six weeks till the next FED meeting. We're 0:15:50.640 --> 0:15:52.520 gonna start to see some of those first hikes filter 0:15:52.600 --> 0:15:55.160 through into the economy as well. Well, what do you 0:15:55.200 --> 0:15:57.280 think there's going to be needed? As you mentioned, a 0:15:57.320 --> 0:15:59.680 lot of FED speakers are saying they're not done yet. 0:15:59.760 --> 0:16:03.400 It's sounds like even some of the what people used 0:16:03.400 --> 0:16:06.120 to be doves like Neil cash Cary are still keeping 0:16:06.200 --> 0:16:08.720 seventy five basis points on the table in the next meeting. 0:16:10.480 --> 0:16:12.960 I think they don't want to, you know, say there 0:16:13.000 --> 0:16:16.680 they've they've got that inflation is beaten too soon, and 0:16:16.720 --> 0:16:20.200 they certainly don't want inflation and expectations to become an 0:16:20.240 --> 0:16:23.720 anchored again or to start lifting because the FED is 0:16:23.720 --> 0:16:25.800 lifting its foot off the pedals, so they're gonna keep 0:16:25.840 --> 0:16:29.160 talking hawk ish. Um we again, we have six weeks 0:16:29.160 --> 0:16:31.680 till the next said meeting. It feels more probably like 0:16:31.720 --> 0:16:34.360 we should get fifty basis points, and that will depend 0:16:34.400 --> 0:16:36.880 on the non farm payrolls and the next inflation number, 0:16:37.320 --> 0:16:40.520 and then maybe a couple more basis points. But I'm 0:16:40.560 --> 0:16:43.920 not sure we're going to get those outside rate hikes anymore. 0:16:45.080 --> 0:16:48.000 In terms of the rally that we saw yesterday, do 0:16:48.120 --> 0:16:50.920 you see this as the start of a new bull 0:16:50.960 --> 0:16:55.120 market or is it just a bear market bounce? It's 0:16:55.120 --> 0:16:58.320 always difficult to judge that. It does feel like we've 0:16:58.480 --> 0:17:02.840 we've passed some of those resistance levels and that June 0:17:02.960 --> 0:17:06.200 should prove to be the lows. Now. I don't think 0:17:06.280 --> 0:17:09.119 yesterday is going to be the you know, the start 0:17:09.200 --> 0:17:12.040 of the next straight line up. We're probably going to 0:17:12.119 --> 0:17:14.560 have some kind of headline that scares us a little more. 0:17:15.440 --> 0:17:17.560 Jackson Hole I think will prove to be something of 0:17:17.600 --> 0:17:19.680 a non event. But I don't think we get any 0:17:19.760 --> 0:17:22.320 change of tone from the Fed then, so we have 0:17:22.400 --> 0:17:25.160 to wait a little more for those those headlines. Make 0:17:25.160 --> 0:17:28.200 sure we don't get another few more big scares from 0:17:28.240 --> 0:17:32.000 some of those those chip companies or from the retailers 0:17:32.040 --> 0:17:33.959 that are coming up in the next couple of weeks. 0:17:34.720 --> 0:17:38.600 So I think bumpy ride, but it's starting to feel 0:17:39.600 --> 0:17:43.159 more like the June was the bottom. How bumpy do 0:17:43.200 --> 0:17:45.080 you think? I mean, it seems like we've seen some 0:17:45.160 --> 0:17:48.280 pretty strong moves one way or the other, depending on 0:17:48.440 --> 0:17:52.200 what kind of headlines we get from the data. We're 0:17:52.240 --> 0:17:55.879 definitely getting big knee jerk reactions. And let's not forget 0:17:55.920 --> 0:17:59.720 that we're in August, so volumes are always lower. We're 0:17:59.760 --> 0:18:05.280 geting sort of fewer data points, uh for now, at least, 0:18:05.359 --> 0:18:08.760 especially because the bulk of the earning season is behind us. 0:18:09.240 --> 0:18:13.000 Um it can move, you know, a couple of percentage 0:18:13.000 --> 0:18:16.080 points in either direction on a given day. We had 0:18:16.119 --> 0:18:18.280 a big bounce in July, so a little bit of 0:18:18.280 --> 0:18:21.480 consolidation now makes sense. But I think as we move 0:18:21.560 --> 0:18:24.440 into September and the end of the year, the direction 0:18:24.520 --> 0:18:27.520 should be upward, just to keep it on the idea 0:18:27.560 --> 0:18:30.320 of a medium term outlook here in our last minute 0:18:30.400 --> 0:18:33.720 as the If the FED does stay aggressive and keeps 0:18:33.760 --> 0:18:35.560 with the talk that they've been putting out there, what 0:18:35.800 --> 0:18:38.920 is the market impact? Can stocks continue to power through 0:18:38.920 --> 0:18:42.719 on earnings. That's going to be a big question, and 0:18:42.760 --> 0:18:45.920 it will depend how much or how aggressive the Fed 0:18:46.000 --> 0:18:49.200 wants to continue to be. We we've seen a peek 0:18:49.240 --> 0:18:51.879 at around three point six three point seven of a 0:18:52.000 --> 0:18:55.560 terminal rate expectations from the market, So if we go 0:18:55.640 --> 0:18:58.480 back towards that from where we are today, I don't 0:18:58.480 --> 0:19:01.720 think it's that big of a move. Um So I 0:19:01.760 --> 0:19:04.520 think markets can weather it. But would you have short 0:19:04.640 --> 0:19:06.800 term corrections or we'd have a little more of those 0:19:06.840 --> 0:19:10.400 growth fears coming back because we're really gone between inflation 0:19:10.440 --> 0:19:12.960 and growth fears back and forth. I think that can 0:19:13.040 --> 0:19:15.679 last a little bit longer. Really great to get your thoughts, 0:19:15.720 --> 0:19:17.920 ste thanks again for being with us. S D. Dwack, 0:19:18.119 --> 0:19:23.399 chief investment Officer at Flow Bank. Right now, after yesterday's rally, 0:19:23.440 --> 0:19:26.760 SMP futures are pointing a little bit higher, up eight points, 0:19:26.840 --> 0:19:31.639 Stal futures up, NASDAC futures pairing some of their gains 0:19:31.640 --> 0:19:34.880 are up twenty points UH. The tech heavy NASDAC had 0:19:35.240 --> 0:19:37.919 led the rally UH that we saw yesterday off the 0:19:37.960 --> 0:19:41.360 back of July c p I tenure Treasury right now 0:19:41.480 --> 0:19:43.880 is up one thirty second. The yield two point seven 0:19:43.960 --> 0:19:46.720 six percent yield on the two year three point one 0:19:46.800 --> 0:19:49.399 seven percent, nim X s crewde is higher up nine 0:19:49.440 --> 0:19:52.359 cents percent of seventy nine cents, ninety two dollars seventy 0:19:52.400 --> 0:19:55.639 two cents a barrel, and Comics goal down a half percent, 0:19:55.680 --> 0:19:58.680 down eight dollars fifty cents. At eighteen oh five twenty 0:19:58.800 --> 0:20:02.800 announce Stay with us. You're listening to Bloomberg Day Right 0:20:07.280 --> 0:20:09.439 Bloomberg eleven three oh weather. We could see a shower 0:20:09.480 --> 0:20:12.560 this morning. Otherwise partly sunny, mid eighties for highs low 0:20:12.600 --> 0:20:16.439 eighties to end the week, Tomorrow, sunshine eighty for Saturday. 0:20:17.119 --> 0:20:23.840 Right now seventy six in Central Park. Broadcasting live from 0:20:23.840 --> 0:20:27.679 the Bloomberg Interactive Broker Studio in New York, Bloomberg E 0:20:27.720 --> 0:20:32.359 Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg 0:20:32.440 --> 0:20:35.520 one O six one to San Francisco, Bloomberg nine six 0:20:35.720 --> 0:20:39.080 to the country, Sirius XM to one, and around the 0:20:39.080 --> 0:20:43.160 globe the Bloomberg Business and Bloomberg Radio dot Com. This 0:20:43.480 --> 0:20:52.320 is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. 0:20:52.320 --> 0:20:55.520 I'm Nathan Hagar and I'm Karen Moscow. We're just about 0:20:55.560 --> 0:20:58.520 four hours away. From the open of US trading. Let's 0:20:58.520 --> 0:20:59.880 get you up to date on the news you need 0:20:59.880 --> 0:21:02.119 to know. At this shower, US Future is adding to 0:21:02.240 --> 0:21:04.960 yesterday's rally. I do present search in the S and 0:21:05.000 --> 0:21:08.560 P five hundred was fueled by softer than expected inflation data, 0:21:08.800 --> 0:21:12.480 and Stacey m Rosso, chief investment strategist at Capital, says 0:21:12.760 --> 0:21:15.960 it might be time to add equity exposure. The time 0:21:16.000 --> 0:21:18.480 to do this was not in February and retrospect, when 0:21:18.520 --> 0:21:20.520 we still had three hundred basis points or more of 0:21:20.600 --> 0:21:22.840 rate hikes to go. But if we have seventy five 0:21:23.040 --> 0:21:25.800 or a hundred, that should not pressure the multiples as 0:21:25.880 --> 0:21:29.520 much anymore. So I would be selectively looking to add 0:21:29.640 --> 0:21:31.879 to some of the thematic stocks, to high growth stocks 0:21:31.920 --> 0:21:34.000 that have not worked in the last six months. My 0:21:34.160 --> 0:21:37.520 capitals and a Statia Murosso's as positioning will be important 0:21:37.520 --> 0:21:41.240 for buyers and current market conditions well. Softening inflation data 0:21:41.280 --> 0:21:44.040 makes site markets, Karen, but it's not changing minds at 0:21:44.080 --> 0:21:47.160 the FED. Bloomberg's John Tucker joins US Live at that story. 0:21:47.240 --> 0:21:50.280 John Minip was FED President Neil cosh Car says the 0:21:50.320 --> 0:21:52.320 idea that FED is going to start cutting rates early 0:21:52.359 --> 0:21:55.400 next year is unrealistic. I think much more likely scenario 0:21:55.720 --> 0:21:58.120 if we will raise rates to some point and then 0:21:58.160 --> 0:22:01.879 we will sit there until you get convinced that inflation 0:22:02.000 --> 0:22:04.240 is well on its way back down to two. At 0:22:04.240 --> 0:22:07.560 the separate events, Chicago Fed President Charles Evans that inflation 0:22:07.600 --> 0:22:11.000 remains unacceptably high. He expects the Central Bank to be 0:22:11.080 --> 0:22:14.600