WEBVTT - Bloomberg Daybreak: September 1, 2022 - Hour 1 (Radio) 0:00:00.840 --> 0:00:03.520 Live from the Bloomberg and Directed Brokers studios. This is 0:00:03.520 --> 0:00:07.400 Bloomberg Day Right for Thursday, September one, two Coming up 0:00:07.400 --> 0:00:10.639 this hour. The selling continues in September as global stocks 0:00:10.720 --> 0:00:13.320 hit a six week low. Still, one prominent Wall Street 0:00:13.400 --> 0:00:16.760 strategist says more pain is ahead for equities. Spawns also 0:00:16.840 --> 0:00:19.599 taking a tumble to your treasury yield hits the highest 0:00:19.720 --> 0:00:22.760 level in fifteen years, and three M becomes the latest 0:00:22.760 --> 0:00:25.800 company to cut jobs. New York City's new gun laws 0:00:25.840 --> 0:00:29.240 begin today. Plus former President Trump's lawyers and the d 0:00:29.360 --> 0:00:32.440 o J go to court the plassified documents in Mari Lango, 0:00:32.600 --> 0:00:35.360 I'm Michael barr More, I'm John stand Shown sports a 0:00:35.479 --> 0:00:37.919 Raino Williams put on a show and advanced the third 0:00:38.000 --> 0:00:40.040 round of the US Open. The Mets me the Dodgers. 0:00:40.080 --> 0:00:45.680 The Yankees lost to the Angel That's All's trading ahead 0:00:45.760 --> 0:00:49.320 on Bloomberg Day Break on Bloomberg eleven three on New York, 0:00:49.520 --> 0:00:54.160 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.480 --> 0:00:59.080 Bloomberg nine sixties, San Francisco, Syrius x M one nine team, 0:00:59.120 --> 0:01:02.040 and around the world on Bloomberg Radio dot Com and 0:01:02.200 --> 0:01:09.000 via the Bloomberg Business app. Good morning, I'm Amy Morris 0:01:09.560 --> 0:01:12.000 and I'm Karen Moscow any West dock in next. Futures 0:01:12.040 --> 0:01:14.319 are lower this morning. We are coming up to five 0:01:14.319 --> 0:01:16.040 oh one on Wall Street, and we checked the markets 0:01:16.080 --> 0:01:19.240 every fifteen minutes throughout the trading day on Bloomberg. Right now, 0:01:19.360 --> 0:01:21.520 S and P futures are down thirty one points down. 0:01:21.520 --> 0:01:25.200 Futures down a D eight, Nastack futures down one thirty nine. 0:01:25.480 --> 0:01:27.880 Ten year treasury down one thirty second. The yel three 0:01:27.920 --> 0:01:30.200 point one nine per cent, and they yield on the 0:01:30.200 --> 0:01:33.720 two year three point four nine percent. Amy Karen. Stocks 0:01:33.720 --> 0:01:37.280 are beginning September with the way they ended August with losses. 0:01:37.720 --> 0:01:40.680 In fact, global equities are trading at a six week 0:01:40.760 --> 0:01:43.360 low this morning. Bonds are also selling off to your 0:01:43.360 --> 0:01:45.720 Treasury yields touched three and a half percent for the 0:01:45.720 --> 0:01:49.640 first time in fifteen years. Brian levitts global market strategist 0:01:49.680 --> 0:01:55.360 at Investco. The economy has slowed pretty considerably. Inflationary pressure 0:01:55.400 --> 0:01:58.920 still remain elevated, so the Federal Reserve is tightening into 0:01:58.960 --> 0:02:02.800 a slowdown. We had a nice rally in July into 0:02:02.840 --> 0:02:06.280 the beginning of August, but the markets are recognizing that 0:02:06.440 --> 0:02:09.040 tighter policy is still ahead of US, and we still 0:02:09.040 --> 0:02:11.280 don't have certainty on where the terminal rate is going 0:02:11.320 --> 0:02:13.760 to be for the FED. That creates volatility and some 0:02:13.800 --> 0:02:18.480 pressure on markets. Investco Global strategist Brian Lovitt says he 0:02:18.520 --> 0:02:21.359 doesn't think the FED will keep rights elevated as long 0:02:21.400 --> 0:02:24.840 as most. Pierre well Amy, one prominent Wall Street bear, 0:02:25.040 --> 0:02:28.320 says there is more pain ahead for equity investors. Morgan 0:02:28.400 --> 0:02:32.920 Stanley chief US equity strategist Mike Wilson says earnings risks 0:02:33.000 --> 0:02:36.800 are still not priced in. The earnings risk is now 0:02:37.520 --> 0:02:39.800 US right. We're cutting numbers and we think the numbers 0:02:39.800 --> 0:02:41.880 are gonna come down even further the next two quarters. 0:02:41.880 --> 0:02:45.000 So bottom line for US is pe multiple is wrong again, 0:02:45.120 --> 0:02:47.120 not because the FED is going to be hawkish, but 0:02:47.240 --> 0:02:50.360 because the equity market is being too optimistic about the 0:02:50.400 --> 0:02:53.880 earnings outward. And Morgan Stanley's Mike Wilson says he sees 0:02:53.919 --> 0:02:57.040 major indexes quote down for at least the next quarter 0:02:57.240 --> 0:02:59.880 or two. And the sell off on Wall Street has 0:03:00.560 --> 0:03:03.519 spreading overseas. Starts and Asia fell to a six week 0:03:03.560 --> 0:03:06.800 low overnight. Let's get the recap from Bloomberg's Juliette Sally 0:03:06.919 --> 0:03:10.000 in Singapore, Good morning Juliette, Good morning Amy and Karen. 0:03:10.120 --> 0:03:12.720 China moved to lockdown cheng Do, a city of twenty 0:03:12.720 --> 0:03:15.840 one million residents, from Thursday night, to tackle COVID, and 0:03:15.960 --> 0:03:19.160 that weighed on market sentiment. Tech firms also declined following 0:03:19.200 --> 0:03:22.239 Loretta misters hawk Is commentary. A stronger dollar saw the 0:03:22.280 --> 0:03:26.280 yen fall to a low, while the offshore Chinese currency 0:03:26.320 --> 0:03:29.640 weaken further despite the PBOC of fixing yuan reference rates 0:03:29.639 --> 0:03:33.760 stronger for a seventh session in Singapore. Juliette Sally Bloomberg 0:03:33.800 --> 0:03:36.160 Daybreak a Julie if thank you. All stocks are also 0:03:36.240 --> 0:03:38.480 under pressure in Europe. This morning we go live to 0:03:38.600 --> 0:03:40.760 London and get the latest with the Bloomberg's You in 0:03:40.840 --> 0:03:43.400 parts good morning You and good morning Karen and Amy 0:03:43.480 --> 0:03:45.480 in the red will be the best way to describe 0:03:45.480 --> 0:03:48.040 the GMM screen on the Bloomberg today. With every major 0:03:48.040 --> 0:03:51.920 European stock market underwater. This morning's losses following month which 0:03:51.960 --> 0:03:55.440 saw the benchmark SOCIS hundred shed five point three percent 0:03:55.800 --> 0:03:59.440 on worries about soaring inflation, are looming energy crisis and 0:03:59.600 --> 0:04:03.040 tightening central banks. All those factors and more also in 0:04:03.160 --> 0:04:06.760 play in the UK. Brutal August for markets here in London, 0:04:06.960 --> 0:04:10.800 with stocks down and Sterling losing almost five cents, the 0:04:10.840 --> 0:04:14.080 most since the Brexit vote six years ago. UK government 0:04:14.120 --> 0:04:17.560 bond deals meanwhile posted their biggest monthly jump on records 0:04:17.839 --> 0:04:20.560 Live in London. I'm your potspoon bag day break, all 0:04:20.600 --> 0:04:22.760 right you and thank you. The weakness in the markets 0:04:22.839 --> 0:04:26.240 comes after JPL's hawk ish speech at Jackson Hole almost 0:04:26.240 --> 0:04:29.120 a week ago, and since then we have seen several officials, 0:04:29.160 --> 0:04:33.120 including Dallas FED President Lauria Logan, hammer hold the message 0:04:33.160 --> 0:04:38.480 on fighting inflation, hearing from central bankers and academics around 0:04:38.520 --> 0:04:42.920 the world. Um, the clear priority was bringing inflation down, 0:04:43.040 --> 0:04:45.600 and that really lines up with my own priority. Um, 0:04:45.960 --> 0:04:49.080 being president of the Dallas Fed and as a policymaker, 0:04:49.440 --> 0:04:53.719 our number one priority has to be to restore price stability. 0:04:54.279 --> 0:04:57.320 Those were Dallas FED President Laura Logan's first public remarks 0:04:57.360 --> 0:05:00.240 since taking office last week. She previously worked the New 0:05:00.320 --> 0:05:02.920 York Fed for more than two decades. Well, I mean 0:05:02.920 --> 0:05:06.520 defense aggressive battle against inflation has sparked fears of recession 0:05:06.560 --> 0:05:09.920 and higher unemployment. Well, this morning we get the second 0:05:09.920 --> 0:05:12.920 of this week reports and the labor market, initial jobless claims, 0:05:12.920 --> 0:05:15.799 and we get a preview from Bloomberg's Michael McKee. Jobless 0:05:15.800 --> 0:05:18.640 claims are seen as a canary in an economic coal mine. 0:05:18.800 --> 0:05:22.840 They should start to rise somewhat significantly if the unemployment 0:05:22.920 --> 0:05:25.400 rate is going up and if a recession is near. 0:05:25.680 --> 0:05:29.359 So far they haven't. After a brief and small summer rise, 0:05:29.440 --> 0:05:32.520 claims have stabilized, endless remain on guard. However, as the 0:05:32.520 --> 0:05:35.320 Fed's interest rate moves begin to slow the economy. What 0:05:35.440 --> 0:05:39.000 may be more important now is following continuing claims those 0:05:39.040 --> 0:05:42.280 who continue to get jobless benefits after their initial week. 0:05:42.440 --> 0:05:46.039 So far, those have remained relatively flat, suggesting people who 0:05:46.120 --> 0:05:48.560 do lose their jobs are able to get new ones 0:05:48.720 --> 0:05:52.839 rather quickly. Michael McKee, Bloomberg Daybreak. All right, thank you, Michael. 0:05:52.880 --> 0:05:56.000 Another note on the labor market this morning, more job cuts. 0:05:56.080 --> 0:05:59.160 Three M is planning to eliminate positions. We get that 0:05:59.200 --> 0:06:01.800 story from bloom Works Doug Prisoner. It's in reaction to 0:06:01.839 --> 0:06:05.440 a challenging macro economic environment. Three M says it's taking 0:06:05.480 --> 0:06:08.880 decisive actions to position the company for continued growth. The 0:06:08.920 --> 0:06:11.800 scope of the cuts could not be immediately determined three 0:06:11.920 --> 0:06:15.719 M employed about ninety people. At the end of the 0:06:15.800 --> 0:06:19.320 head of three M Safety and Industrial Division disclosed the plans. 0:06:19.560 --> 0:06:22.200 In a message to employees of the unit, he said, 0:06:22.240 --> 0:06:25.440 the business can't avoid this tough necessity. In New York, 0:06:25.480 --> 0:06:28.680 I'm Prisoner Bloomberg Daybreak, right, Doug Banks, and in politics today, 0:06:28.680 --> 0:06:31.320 President Biden jumping into the midterm election campaign at the 0:06:31.320 --> 0:06:33.479 prime timeage rest of the nation. Tonight, we get a 0:06:33.480 --> 0:06:36.800 preview from Bloomberg Daybreak anchor Nathan Hancher. The White House 0:06:36.839 --> 0:06:39.400 has built this as a speech on the continued battle 0:06:39.480 --> 0:06:42.560 for the soul of our nation. Press Secretary Karine Jean Pierre. 0:06:43.560 --> 0:06:46.320 As president, it is important for the President of the 0:06:46.360 --> 0:06:49.360 United States to have the strongest voice when we talk 0:06:49.440 --> 0:06:51.880 about fighting for our democracy, and the President has been 0:06:51.920 --> 0:06:54.720 ramping up that fight in recent weeks, referring to extreme 0:06:54.839 --> 0:06:58.960 mega Republicans and what he calls a semi fascist GOP agenda. 0:06:59.040 --> 0:07:02.720 He'll deliver this speed tonight from Independence National Historical Park 0:07:02.720 --> 0:07:05.159 in Philadelphia, the home of the Liberty Bell and the 0:07:05.160 --> 0:07:09.200 signing of the Declaration of Independence and the Constitution in Washington. 0:07:09.279 --> 0:07:12.560 I'm Nathan Hagar, Bloomberg Daybreak, Allry, Nathan, thank you. Future 0:07:12.600 --> 0:07:15.240 is lower this morning, straight ahead, your latest local headlines, 0:07:15.360 --> 0:07:23.640 plus a check of sports, and this is Bloomberg. Thank you, Karen. 0:07:23.720 --> 0:07:25.920 Five oh seven on Wall Street. Let's bring in Michael 0:07:25.960 --> 0:07:27.920 Barr with more on what else is going on in 0:07:27.960 --> 0:07:31.080 New York and around the world. Good morning, Michael, Good 0:07:31.080 --> 0:07:33.760 morning Amy. New gun laws take effect in New York 0:07:33.800 --> 0:07:37.119 this week, following the June Supreme Court decisions driking down 0:07:37.360 --> 0:07:40.400 a one year old state law restricting who can carry 0:07:40.480 --> 0:07:43.880 a weapon. At a news conference, Governor Kathy Oakel says, 0:07:43.920 --> 0:07:46.720 among other things, residents must beat when he wanted to 0:07:46.720 --> 0:07:50.600 purchase a semi automatic weapons, strength in the background checks 0:07:50.880 --> 0:07:54.920 and the gun safety training requirements for him, concealed carry 0:07:55.120 --> 0:08:00.000 in secure sensitive locations, and require permit renewals every three 0:08:00.080 --> 0:08:03.400 years instead of five years. The gun location restrictions in 0:08:03.400 --> 0:08:06.880 New York City take effect today and will include Times Square. 0:08:07.360 --> 0:08:10.960 Mayor Eric Adams, licensed gun carriers and others may not 0:08:11.280 --> 0:08:18.240 enter with the gun unless otherwise specifically authorized by law. Meanwhile, 0:08:18.280 --> 0:08:21.320 New York defeated an attempt by gun rights proponents to 0:08:21.400 --> 0:08:24.800 stop it from enforcing new restrictions on who and where 0:08:24.840 --> 0:08:28.000 people can carry concealed weapons. The U. S. District Judge 0:08:28.000 --> 0:08:31.360 and Syracuse rejected the request by gun Owners of America 0:08:31.720 --> 0:08:34.840 and others. A hearing today in a Florida federal court 0:08:34.920 --> 0:08:38.000 takes place over classified material found at the home of 0:08:38.040 --> 0:08:42.000 former President Trump. Trump's lawyers will argue for a special 0:08:42.040 --> 0:08:44.480 master in what was seized from his Mara Lago home. 0:08:44.920 --> 0:08:48.160 The Justice Department has said the material seized do not 0:08:48.320 --> 0:08:52.319 belong to Trump, but to the government. Democrat Mary Peltola 0:08:52.480 --> 0:08:56.000 beat former Republican Alaska Governor Sarah Palin for the state's 0:08:56.040 --> 0:08:59.520 loan House seat in a special election. Peltola will fill 0:08:59.559 --> 0:09:02.480 the seat replaced the late Representative Don Young at least 0:09:02.679 --> 0:09:05.080 until the end of the year. A team of UN 0:09:05.160 --> 0:09:09.040 inspectors is expected to reach Ukraine's nuclear power plant, hoping 0:09:09.080 --> 0:09:12.280 to secure the facility, which is in Russian held territory. 0:09:12.760 --> 0:09:17.360 International Autonic Energy Agency chief Raphael Grocy says they're seeking 0:09:17.360 --> 0:09:20.640 to establish a permanent presence at the plant to prevent 0:09:20.720 --> 0:09:25.320 a potential nuclear disaster. Waiting the pros and cons and 0:09:25.400 --> 0:09:28.240 having come so far, we are not stopping. We are 0:09:28.280 --> 0:09:31.520 moving now. The I a e A. S Raphael Grocy. 0:09:31.640 --> 0:09:34.160 The cost of the new York City area Gateway rail 0:09:34.160 --> 0:09:37.600 tunnel project climbed to sixteen point one billion dollars, and 0:09:37.679 --> 0:09:41.760 the expected start of construction was pushed too. The plan 0:09:41.880 --> 0:09:44.679 is to seek more federal aid to cover the rising costs. 0:09:45.080 --> 0:09:47.760 Global News twenty four hours a day on air and 0:09:47.920 --> 0:09:51.640 on Bloomberg Quicktake, powered by more than twenty journalists and 0:09:51.640 --> 0:09:54.719 analysts more than a hundred twenty countries. Michael Barr, this 0:09:54.840 --> 0:10:00.760 is Bloomberg Gaming. All right, Thank you, Michael. It's five 0:10:00.760 --> 0:10:02.960 o nine on Wall Street. Time now for the Bloomberg 0:10:03.000 --> 0:10:05.640 Sports Update. Here's John's dash. How thanks Amy. What a 0:10:05.760 --> 0:10:09.040 performance by Serena Williams. She put off her retirement again. 0:10:09.120 --> 0:10:11.959 She played like it was nine nine and the years 0:10:11.960 --> 0:10:14.520 she first won the US Open. Serena Surns forty one 0:10:14.640 --> 0:10:17.199 later this month, mother of a five year old. He 0:10:17.240 --> 0:10:20.080 had struggled to win matches all summer, and yet now 0:10:20.120 --> 0:10:22.800 with the crowd at ash Stadium going wild with every 0:10:22.800 --> 0:10:24.640 point she wins, she's into the third round. She'd beat 0:10:24.640 --> 0:10:28.319 the net continent. Who's the open second seed? Seven six 0:10:28.360 --> 0:10:31.000 two six six too. I think you can only have 0:10:31.040 --> 0:10:36.760 this experience, you know, once in a lifetime for sure. Um, 0:10:36.800 --> 0:10:39.840 I'm playing pretty good. I feel like like I saw 0:10:39.920 --> 0:10:43.920 the court up and practicing really well, but it hasn't 0:10:43.920 --> 0:10:48.920 been coming together and matches um. But you know, now 0:10:49.040 --> 0:10:51.120 it's kind of coming together, I guess. I mean, I 0:10:51.160 --> 0:10:54.040 had to bring it together today. So it worked out. 0:10:54.120 --> 0:10:56.360 Serena will be back at ASH tomorrow. She'll actually be 0:10:56.400 --> 0:10:58.800 there tonight playing doubles with their sister Venus. While she 0:10:58.960 --> 0:11:00.840 was doing her thing, Jay from the Ground was doing 0:11:00.880 --> 0:11:03.160 his just across the boardwalk in City Fielding Ground one 0:11:03.240 --> 0:11:06.360 seventies allowed only a Mookie Bets home run Darling Marte 0:11:06.400 --> 0:11:08.800 and early two run shot. Mets beat the Dodgers two 0:11:08.800 --> 0:11:11.680 to one. Brandon Nemo saved the day with a seventh 0:11:11.679 --> 0:11:14.199 inning catch over the wall, taking the home run from 0:11:14.200 --> 0:11:17.040 the Dodgers Justin Turner. Edwin Diaz then got the actual save. 0:11:17.400 --> 0:11:20.360 All season, they have played his theme song when he enters. 0:11:20.440 --> 0:11:23.240 Last night, it was a live performance by Tim he 0:11:23.360 --> 0:11:25.839 Trumpet in Adaheim. Yankees lost for the Angels three to 0:11:25.960 --> 0:11:28.800 two when Shoeotani had a three run home in the 0:11:28.840 --> 0:11:31.560 sixth inning off Garrett Cole. Seventy seven year old White 0:11:31.559 --> 0:11:34.480 Sox manager Tony Larusa taking tom offer of medical issue, 0:11:34.520 --> 0:11:38.199 John Stash were Bloomberg Sports team. All right, thank you, John, 0:11:38.200 --> 0:11:40.680 And now let's check the markets. S and P features 0:11:40.800 --> 0:11:44.559 down twenty nine points, DAL features down one hundred seventy eight, 0:11:44.640 --> 0:11:48.640 Nasdaq features down one hundred thirty five points. A ten 0:11:48.720 --> 0:11:51.720 year treasury down to thirty seconds to yield at three 0:11:51.760 --> 0:11:56.120 point two. Much more still to come on Bloomberg Daybreak 0:11:56.200 --> 0:11:59.720 on this Thursday morning. Stay with us. This is Bloomberg, 0:12:07.440 --> 0:12:09.920 Bloomberg eleven three oh weather. We've got sunny and less 0:12:09.960 --> 0:12:12.720 humid conditions today. We're going up to eighty five degrees. 0:12:13.080 --> 0:12:16.040 Up to eighty degrees tomorrow and then on Saturday, plenty 0:12:16.040 --> 0:12:18.720 of sunshine for your weekend, going up to eighty five degrees. 0:12:22.160 --> 0:12:25.520 Markets headlines and breaking new twenty four hours a day 0:12:25.640 --> 0:12:29.240 at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg 0:12:29.280 --> 0:12:39.320 Quick takes a Bloomberg Business Flash and I'm Karen Moscow 0:12:39.480 --> 0:12:41.960 knocks and bonds extending their sell off as a hawkish 0:12:42.080 --> 0:12:44.400 drum beat from central banks and a lockdown in China 0:12:44.520 --> 0:12:47.320 further freight investor nerves. We checked the markets every fifteen 0:12:47.360 --> 0:12:50.160 minutes throughout the trading day on Bloomberg. Right now U 0:12:50.200 --> 0:12:51.920 S and P futures are down thirty two points and 0:12:51.960 --> 0:12:54.520 down futures down a hundred nineties seven and NASDACK futures 0:12:54.559 --> 0:12:57.440 down one forty seven. That's down one point two percent. 0:12:57.800 --> 0:13:00.160 Adacks in Germany is down one and a half per set. 0:13:00.280 --> 0:13:02.920 Ten year treasury down to thirty seconds, held three point 0:13:02.960 --> 0:13:05.679 two percent yield on the two year three point four 0:13:05.720 --> 0:13:09.160 eight percent. DIMX Screwed oil is down one point seven percent, 0:13:09.240 --> 0:13:11.920 down a dollar forty nine at eighty eight dollars six 0:13:11.960 --> 0:13:14.480 cents of arrol comex school is down half percent or 0:13:14.480 --> 0:13:17.679 eight dollars ninety cents is seventeen seventeen thirty announced. The 0:13:17.760 --> 0:13:20.480 euro one point zero zero three seven against the dollar 0:13:20.480 --> 0:13:22.560 in British found one point one five nine nine and 0:13:22.600 --> 0:13:25.280 an one thirty nine point two four. And look at 0:13:25.280 --> 0:13:27.760 a bitcoin it's lower down one point seven percent and 0:13:27.920 --> 0:13:31.080 nineteen thousand, eight hundred fifty dollars. Today we are watching 0:13:31.120 --> 0:13:33.480 for the weekly report on initial jobless claims is at 0:13:33.480 --> 0:13:36.120 an eight thirty Wall Street time at ten it's hsen 0:13:36.200 --> 0:13:40.040 manufacturing and construction spending. That's a bloomberg business flash. Now 0:13:40.040 --> 0:13:42.360 here's Michael Barr with more on what's going on. Around 0:13:42.360 --> 0:13:45.080 the world. Michael, good morning, Good morning Karen, A Florida 0:13:45.160 --> 0:13:47.960 Federal court judge today a will decide whether a special 0:13:48.000 --> 0:13:50.960 master will carry out a third party review of those 0:13:51.000 --> 0:13:55.160 classified materials seized from former President Trump's mora lago with State. 0:13:55.559 --> 0:13:59.559 The Department of Justice has called the special master request unnecessary. 0:14:00.080 --> 0:14:02.680 President Biden will give a prime time address to the 0:14:02.760 --> 0:14:05.360 nation tonight. The White House says it will focus on 0:14:05.400 --> 0:14:08.200 what he calls the soul of the nation, including the 0:14:08.240 --> 0:14:12.760 threats of political violence. Not retired yet. Serena Williams continues 0:14:12.800 --> 0:14:15.480 her magical run at the US Open, winning round two. 0:14:15.960 --> 0:14:18.719 In baseball, the Yankees lost with the Angels three to 0:14:19.120 --> 0:14:21.880 The Mets beat the Dodgers too one, the Red Sox 0:14:22.000 --> 0:14:25.840 and Orioles one. The Nationals beat the A's five one, 0:14:26.160 --> 0:14:29.560 the Giants lost. Global News twenty four hours a day 0:14:29.640 --> 0:14:32.840 on air and on Bloomberg Quicktake, powered by more than 0:14:32.920 --> 0:14:35.120 twenty seven hundred journalists and analysts, are more than a 0:14:35.200 --> 0:14:38.640 hundred twenty countries. I'm Michael Barr, and this is Bloomberg Gaming. 0:14:38.880 --> 0:14:42.080 All right, thank you, Michael. It is five nineteen on 0:14:42.160 --> 0:14:45.360 Wall Street, where live from the Bloomberg Interactive Broker studios. 0:14:45.440 --> 0:14:49.000 This is Bloomberg Daybreak. President Biden making the big prime 0:14:49.080 --> 0:14:51.280 time speech to the nation tonight. We want to get 0:14:51.320 --> 0:14:53.720 a preview of that and a few other things. Bloomberg 0:14:53.720 --> 0:14:57.440 Government reporter Jack Fitzpatrick joins us. Now, Jack, it's pleasure, 0:14:57.480 --> 0:14:59.520 thanks for taking the time with us this morning. We 0:14:59.560 --> 0:15:01.920 know the pre resident will be in Philadelphia delivering that 0:15:01.960 --> 0:15:04.840 speech on what he is calling a battle for the 0:15:04.880 --> 0:15:08.880 soul of the nation. What will you be listening for, Well, 0:15:08.920 --> 0:15:11.080 you know we got a preview of this because he's 0:15:11.080 --> 0:15:13.800 spending a lot of time in Pennsylvania. You just had 0:15:13.840 --> 0:15:18.080 another speech that had a very similar focus, UH, in 0:15:18.120 --> 0:15:21.240 Pennsylvania a couple of days ago, on Tuesday. I I 0:15:21.280 --> 0:15:24.800 think the key takeaway here is that clearly the president 0:15:24.960 --> 0:15:28.720 is trying to get aggressive on the campaign trail and 0:15:28.840 --> 0:15:35.360 seemingly maybe shift the focus away from inflation, economic concerns, 0:15:35.400 --> 0:15:39.360 the possibility of a recession, UH, and drive home the 0:15:39.400 --> 0:15:44.920 message that that Republicans were, in his view, irresponsible. On 0:15:45.040 --> 0:15:50.760 January six, that the search of maral Lago and the 0:15:50.760 --> 0:15:54.840 the allegations that the former president Donald Trump kept top 0:15:54.880 --> 0:15:59.960 secret documents was also irresponsible, and and that the republic 0:16:00.040 --> 0:16:03.360 can party has gone awry. That's essentially the message Biden 0:16:03.480 --> 0:16:07.640 is taking out on the campaign trail. I don't know 0:16:07.680 --> 0:16:11.400 how much that digs in to the supposed advantage that 0:16:11.440 --> 0:16:15.320 Republicans have in this kind of mid term environment, especially 0:16:15.320 --> 0:16:18.480 where the economy is a concern, but you know, it's 0:16:18.720 --> 0:16:20.960 really I think the key is it's interesting to see 0:16:20.960 --> 0:16:25.080 the President gets so focused in one particular state in Pennsylvania, 0:16:25.080 --> 0:16:28.160 which as a swing state, uh, Senate race, and and 0:16:28.240 --> 0:16:31.640 try to redirect the message in that sense. Yeah, this 0:16:31.680 --> 0:16:34.960 is his third trip to Pennsylvania in just the past week. 0:16:35.040 --> 0:16:40.200 Is that significant? Well, it highlights the significance of Pennsylvania. 0:16:40.600 --> 0:16:42.880 They are trying to win the Senate race, trying to 0:16:42.880 --> 0:16:47.840 win the gubernatorial race coming up. Uh. He just showed 0:16:47.920 --> 0:16:51.560 up to wilkes Bury to also campaign for a swing 0:16:51.880 --> 0:16:55.600 seat in the House. Matt Cartwright, where he talked to 0:16:56.000 --> 0:16:59.160 the President, talked quite a bit about sort of tying 0:16:59.200 --> 0:17:03.400 in the port for police and police funding, local police 0:17:03.400 --> 0:17:08.520 funding with the idea that to support law enforcement. You 0:17:08.520 --> 0:17:12.080 you could not have had any doubts about the former 0:17:12.119 --> 0:17:16.920 president's role on January six, kind of tying these these 0:17:17.160 --> 0:17:22.720 democracy related arguments together into one package and for one 0:17:22.760 --> 0:17:26.280 reason or another. Obviously Pennsylvania is a very competitive state 0:17:26.320 --> 0:17:28.879 in a few races, but for one reason or another, 0:17:29.240 --> 0:17:32.400 Pennsylvania is the major focus right now for the president. 0:17:33.400 --> 0:17:36.080 Let's just briefly, if we could to Alaska, Democrats were 0:17:36.080 --> 0:17:39.879 able to flip Alaska's House seat, Mary Peltola defeating Sarah 0:17:39.920 --> 0:17:44.600 Palin in the special election fifty So yeah, a close race. 0:17:44.680 --> 0:17:47.879 But is there a message there for the GOP? I 0:17:47.920 --> 0:17:52.359 would I would mitigate any message that you think is 0:17:52.480 --> 0:17:56.200 clearly there for the Republicans. Uh, this is a really 0:17:56.240 --> 0:17:59.720 interesting race, but maybe a confusing one. This is ranked 0:17:59.760 --> 0:18:05.160 choice voice voting. Uh. Mary Paltola did win the first ballot, 0:18:05.240 --> 0:18:08.280 the you know, the people's first choice. She got about 0:18:08.280 --> 0:18:12.200 forty of the vote, So it then came down to uh, 0:18:12.400 --> 0:18:15.760 the second choice. Sarah Palin obviously is somebody with a 0:18:15.840 --> 0:18:19.400 significant following, but you probably wouldn't be surprised to learn 0:18:19.440 --> 0:18:22.280 she's not exactly a lot of people's second choice, sort 0:18:22.280 --> 0:18:25.600 of a lover or hater kind of political figure. And 0:18:25.720 --> 0:18:29.640 only about half of the people who chose the other 0:18:29.720 --> 0:18:34.119 Republican nick bagas uh for their first choice then chose 0:18:34.280 --> 0:18:37.160 Palin for their second choice. The rest either chose Mary 0:18:37.160 --> 0:18:40.040 Paltola the Democrat, or didn't choose anyone at all. So 0:18:40.080 --> 0:18:44.200 this tells us quite a bit about how ranked choice 0:18:44.320 --> 0:18:48.040 voting works, the possibilities that it can create for maybe 0:18:48.040 --> 0:18:51.520 a more moderate minority party at a Democrat running in 0:18:51.520 --> 0:18:55.359 Alaska in this case, um and she did run on 0:18:55.600 --> 0:18:58.800 abortion access to a significant degree. The Roe v. Wade 0:18:58.920 --> 0:19:01.760 decision to strike down Roe v. Wade was a significant 0:19:01.800 --> 0:19:04.880 factor in this. I don't know that that means this 0:19:05.000 --> 0:19:07.639 is going to be a great result for Democrats and 0:19:07.680 --> 0:19:09.760 all the other races, but it really is an interesting 0:19:09.800 --> 0:19:12.760 case study in ranked choice voting. All right, thank you 0:19:12.800 --> 0:19:16.200 so much, Bloomberg Government reporter Jack Fitzpatrick. Always a pleasure. 0:19:16.400 --> 0:19:18.520 We want to talk to you later again this morning, 0:19:18.520 --> 0:19:22.480 getting more information about tonight's speech from President Biden on 0:19:22.560 --> 0:19:25.280 what he is calling a battle for the soul of 0:19:25.359 --> 0:19:28.280 the nation, a theme that he has repeated pretty much 0:19:29.240 --> 0:19:32.440 repeatedly since Charlotte's Bill in seventeen. That's the first time 0:19:32.480 --> 0:19:35.080 we've heard him use that reference. So we'll be talking 0:19:35.080 --> 0:19:37.720 with Jack a little bit later in the program. Let's 0:19:37.800 --> 0:19:41.240 check the markets now, SMP futures down thirty five, Dal 0:19:41.400 --> 0:19:45.600 futures down two hundred, ten NASDAC futures down one hundred 0:19:45.840 --> 0:19:49.520 sixty five points. Ten year treasury down one thirty second, 0:19:49.640 --> 0:19:53.320 the yield at three point two percent, still ahead. On 0:19:53.400 --> 0:19:55.920 Bloomberg Daybreak, we'll be checking the markets and bringing you 0:19:55.960 --> 0:19:58.560 the latest in business economics and finance. Day with us. 0:19:58.720 --> 0:20:09.800 This is a Bloomberg Bloomberg eleven three oh weather sunny, 0:20:09.880 --> 0:20:12.360 less humid today, a break from that humidity. We're going 0:20:12.400 --> 0:20:14.600 up to eighty five today, down to eighty to grow 0:20:14.800 --> 0:20:17.280 down to eighty tomorrow and then on Saturday plenty of 0:20:17.320 --> 0:20:23.800 sunshine going up to eighty five. Broadcasting live from the 0:20:23.920 --> 0:20:27.880 Bloomberg Interactive Broker Studio in New York, Bloomberg e living 0:20:27.960 --> 0:20:30.880 three on to Washington, d C, Bloomberg ninety nine one 0:20:31.000 --> 0:20:34.240 to Boston, Bloomberg one O six one to San Francisco, 0:20:34.320 --> 0:20:37.760 Bloomberg NAM sixty to the country, Sirius XM Chadle one 0:20:37.840 --> 0:20:40.920 nine ten, and around the globe the Bloomberg Business and 0:20:41.000 --> 0:20:51.040 Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five 0:20:51.080 --> 0:20:53.920 thirty on Wall Street. Good morning. I'm Amy Morris and 0:20:54.000 --> 0:20:56.600 I'm Karen Moscow. We're just about four hours away from 0:20:56.640 --> 0:20:58.359 the open of US trading. Let's catch you up to 0:20:58.440 --> 0:21:00.200 date on the news you need to know at this hour. 0:21:00.280 --> 0:21:02.800 While stocks are beginning September the way they ended August 0:21:02.880 --> 0:21:06.800 with losses, Morgan Stanley Chief US equity strategist Mike Wilson 0:21:06.880 --> 0:21:11.400 tells US there's likely more pain ahead. The index usually 0:21:11.600 --> 0:21:14.720 is the lasting to fall, so meaning June probably was 0:21:14.800 --> 0:21:17.280 the low for the average stock, but the index we 0:21:17.359 --> 0:21:19.880 think still has to take out those June lows. We've 0:21:20.000 --> 0:21:22.280 used thirty four d for kind of the quote unquote 0:21:22.280 --> 0:21:24.800 growth recession or soft landing is you but I want 0:21:24.800 --> 0:21:27.480 to call it or a proper recession would be something 0:21:27.480 --> 0:21:30.280 closer to three thousand. The S and P five hundred 0:21:30.400 --> 0:21:33.080 is currently more than nine hundred points above that three 0:21:33.080 --> 0:21:36.479 thousand mark. Morgan Stanley's Mike Wilson says the market is 0:21:36.560 --> 0:21:40.359 not pricing in earnings risks, and global stocks are trading 0:21:40.400 --> 0:21:43.080 at a six week low as stocks in Europe and 0:21:43.280 --> 0:21:46.920 Asia post sharp declines. There are also fresh COVID concerns 0:21:46.920 --> 0:21:49.800 in China. The government is locking down the city of 0:21:49.880 --> 0:21:53.760 shang Do. Bloomberg's Colin Murphy in Beijing says the city 0:21:53.760 --> 0:21:57.359 of twenty one million people will experience the biggest lockdown 0:21:57.400 --> 0:22:00.920 since Shanghai earlier this year. Popely there will have been 0:22:01.040 --> 0:22:05.159 some lessons learned from Shanghai, because that was the complete 0:22:05.359 --> 0:22:08.880 chaotic handling of the crisis. And this is really an 0:22:08.880 --> 0:22:11.919 emerging hub in the western part of the country and 0:22:12.000 --> 0:22:15.919 had been pretty much immune until recently from COVID, So 0:22:15.960 --> 0:22:19.440 this is quite a disturbing development. Bloomberg's Callum Murphy says 0:22:19.440 --> 0:22:23.040 the Shindo lockdown comes after reporting one fifty seven new 0:22:23.119 --> 0:22:27.399 COVID cases yesterday. Meantime, this morning, Amy U S shipmakers 0:22:27.400 --> 0:22:31.040 stocks are sliding. That's after in video warned new roles 0:22:31.119 --> 0:22:34.560 governing the export of artificial intelligence ships to China could 0:22:34.600 --> 0:22:37.080 cost millions in revenue, and right now and video is 0:22:37.160 --> 0:22:40.160 down five and a half percent in early trading. Markets 0:22:40.200 --> 0:22:43.920 will also price in fresh economic data today. Weekly jobless 0:22:43.920 --> 0:22:46.640 claims come in at eight thirty a m. Wall Street time, 0:22:46.720 --> 0:22:49.880 followed by I S M manufacturing data at ten am, 0:22:49.920 --> 0:22:53.320 and it all comes before tomorrow morning's jobs report. To 0:22:53.440 --> 0:22:56.400