Speaker 1: Live from the Bloomberg and Directed Brokers studios. This is
Speaker 1: Bloomberg Day Right for Thursday, September one, two Coming up
Speaker 1: this hour. The selling continues in September as global stocks
Speaker 1: hit a six week low. Still, one prominent Wall Street
Speaker 1: strategist says more pain is ahead for equities. Spawns also
Speaker 1: taking a tumble to your treasury yield hits the highest
Speaker 1: level in fifteen years, and three M becomes the latest
Speaker 1: company to cut jobs. New York City's new gun laws
Speaker 1: begin today. Plus former President Trump's lawyers and the d
Speaker 1: o J go to court the plassified documents in Mari Lango,
Speaker 1: I'm Michael barr More, I'm John stand Shown sports a
Speaker 1: Raino Williams put on a show and advanced the third
Speaker 1: round of the US Open. The Mets me the Dodgers.
Speaker 1: The Yankees lost to the Angel That's All's trading ahead
Speaker 1: on Bloomberg Day Break on Bloomberg eleven three on New York,
Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties, San Francisco, Syrius x M one nine team,
Speaker 1: and around the world on Bloomberg Radio dot Com and
Speaker 1: via the Bloomberg Business app. Good morning, I'm Amy Morris
Speaker 1: and I'm Karen Moscow any West dock in next. Futures
Speaker 1: are lower this morning. We are coming up to five
Speaker 1: oh one on Wall Street, and we checked the markets
Speaker 1: every fifteen minutes throughout the trading day on Bloomberg. Right now,
Speaker 1: S and P futures are down thirty one points down.
Speaker 1: Futures down a D eight, Nastack futures down one thirty nine.
Speaker 1: Ten year treasury down one thirty second. The yel three
Speaker 1: point one nine per cent, and they yield on the
Speaker 1: two year three point four nine percent. Amy Karen. Stocks
Speaker 1: are beginning September with the way they ended August with losses.
Speaker 1: In fact, global equities are trading at a six week
Speaker 1: low this morning. Bonds are also selling off to your
Speaker 1: Treasury yields touched three and a half percent for the
Speaker 1: first time in fifteen years. Brian levitts global market strategist
Speaker 1: at Investco. The economy has slowed pretty considerably. Inflationary pressure
Speaker 1: still remain elevated, so the Federal Reserve is tightening into
Speaker 1: a slowdown. We had a nice rally in July into
Speaker 1: the beginning of August, but the markets are recognizing that
Speaker 1: tighter policy is still ahead of US, and we still
Speaker 1: don't have certainty on where the terminal rate is going
Speaker 1: to be for the FED. That creates volatility and some
Speaker 1: pressure on markets. Investco Global strategist Brian Lovitt says he
Speaker 1: doesn't think the FED will keep rights elevated as long
Speaker 1: as most. Pierre well Amy, one prominent Wall Street bear,
Speaker 1: says there is more pain ahead for equity investors. Morgan
Speaker 1: Stanley chief US equity strategist Mike Wilson says earnings risks
Speaker 1: are still not priced in. The earnings risk is now
Speaker 1: US right. We're cutting numbers and we think the numbers
Speaker 1: are gonna come down even further the next two quarters.
Speaker 1: So bottom line for US is pe multiple is wrong again,
Speaker 1: not because the FED is going to be hawkish, but
Speaker 1: because the equity market is being too optimistic about the
Speaker 1: earnings outward. And Morgan Stanley's Mike Wilson says he sees
Speaker 1: major indexes quote down for at least the next quarter
Speaker 1: or two. And the sell off on Wall Street has
Speaker 1: spreading overseas. Starts and Asia fell to a six week
Speaker 1: low overnight. Let's get the recap from Bloomberg's Juliette Sally
Speaker 1: in Singapore, Good morning Juliette, Good morning Amy and Karen.
Speaker 1: China moved to lockdown cheng Do, a city of twenty
Speaker 1: one million residents, from Thursday night, to tackle COVID, and
Speaker 1: that weighed on market sentiment. Tech firms also declined following
Speaker 1: Loretta misters hawk Is commentary. A stronger dollar saw the
Speaker 1: yen fall to a low, while the offshore Chinese currency
Speaker 1: weaken further despite the PBOC of fixing yuan reference rates
Speaker 1: stronger for a seventh session in Singapore. Juliette Sally Bloomberg
Speaker 1: Daybreak a Julie if thank you. All stocks are also
Speaker 1: under pressure in Europe. This morning we go live to
Speaker 1: London and get the latest with the Bloomberg's You in
Speaker 1: parts good morning You and good morning Karen and Amy
Speaker 1: in the red will be the best way to describe
Speaker 1: the GMM screen on the Bloomberg today. With every major
Speaker 1: European stock market underwater. This morning's losses following month which
Speaker 1: saw the benchmark SOCIS hundred shed five point three percent
Speaker 1: on worries about soaring inflation, are looming energy crisis and
Speaker 1: tightening central banks. All those factors and more also in
Speaker 1: play in the UK. Brutal August for markets here in London,
Speaker 1: with stocks down and Sterling losing almost five cents, the
Speaker 1: most since the Brexit vote six years ago. UK government
Speaker 1: bond deals meanwhile posted their biggest monthly jump on records
Speaker 1: Live in London. I'm your potspoon bag day break, all
Speaker 1: right you and thank you. The weakness in the markets
Speaker 1: comes after JPL's hawk ish speech at Jackson Hole almost
Speaker 1: a week ago, and since then we have seen several officials,
Speaker 1: including Dallas FED President Lauria Logan, hammer hold the message
Speaker 1: on fighting inflation, hearing from central bankers and academics around
Speaker 1: the world. Um, the clear priority was bringing inflation down,
Speaker 1: and that really lines up with my own priority. Um,
Speaker 1: being president of the Dallas Fed and as a policymaker,
Speaker 1: our number one priority has to be to restore price stability.
Speaker 1: Those were Dallas FED President Laura Logan's first public remarks
Speaker 1: since taking office last week. She previously worked the New
Speaker 1: York Fed for more than two decades. Well, I mean
Speaker 1: defense aggressive battle against inflation has sparked fears of recession
Speaker 1: and higher unemployment. Well, this morning we get the second
Speaker 1: of this week reports and the labor market, initial jobless claims,
Speaker 1: and we get a preview from Bloomberg's Michael McKee. Jobless
Speaker 1: claims are seen as a canary in an economic coal mine.
Speaker 1: They should start to rise somewhat significantly if the unemployment
Speaker 1: rate is going up and if a recession is near.
Speaker 1: So far they haven't. After a brief and small summer rise,
Speaker 1: claims have stabilized, endless remain on guard. However, as the
Speaker 1: Fed's interest rate moves begin to slow the economy. What
Speaker 1: may be more important now is following continuing claims those
Speaker 1: who continue to get jobless benefits after their initial week.
Speaker 1: So far, those have remained relatively flat, suggesting people who
Speaker 1: do lose their jobs are able to get new ones
Speaker 1: rather quickly. Michael McKee, Bloomberg Daybreak. All right, thank you, Michael.
Speaker 1: Another note on the labor market this morning, more job cuts.
Speaker 1: Three M is planning to eliminate positions. We get that
Speaker 1: story from bloom Works Doug Prisoner. It's in reaction to
Speaker 1: a challenging macro economic environment. Three M says it's taking
Speaker 1: decisive actions to position the company for continued growth. The
Speaker 1: scope of the cuts could not be immediately determined three
Speaker 1: M employed about ninety people. At the end of the
Speaker 1: head of three M Safety and Industrial Division disclosed the plans.
Speaker 1: In a message to employees of the unit, he said,
Speaker 1: the business can't avoid this tough necessity. In New York,
Speaker 1: I'm Prisoner Bloomberg Daybreak, right, Doug Banks, and in politics today,
Speaker 1: President Biden jumping into the midterm election campaign at the
Speaker 1: prime timeage rest of the nation. Tonight, we get a
Speaker 1: preview from Bloomberg Daybreak anchor Nathan Hancher. The White House
Speaker 1: has built this as a speech on the continued battle
Speaker 1: for the soul of our nation. Press Secretary Karine Jean Pierre.
Speaker 1: As president, it is important for the President of the
Speaker 1: United States to have the strongest voice when we talk
Speaker 1: about fighting for our democracy, and the President has been
Speaker 1: ramping up that fight in recent weeks, referring to extreme
Speaker 1: mega Republicans and what he calls a semi fascist GOP agenda.
Speaker 1: He'll deliver this speed tonight from Independence National Historical Park
Speaker 1: in Philadelphia, the home of the Liberty Bell and the
Speaker 1: signing of the Declaration of Independence and the Constitution in Washington.
Speaker 1: I'm Nathan Hagar, Bloomberg Daybreak, Allry, Nathan, thank you. Future
Speaker 1: is lower this morning, straight ahead, your latest local headlines,
Speaker 1: plus a check of sports, and this is Bloomberg. Thank you, Karen.
Speaker 1: Five oh seven on Wall Street. Let's bring in Michael
Speaker 1: Barr with more on what else is going on in
Speaker 1: New York and around the world. Good morning, Michael, Good
Speaker 1: morning Amy. New gun laws take effect in New York
Speaker 1: this week, following the June Supreme Court decisions driking down
Speaker 1: a one year old state law restricting who can carry
Speaker 1: a weapon. At a news conference, Governor Kathy Oakel says,
Speaker 1: among other things, residents must beat when he wanted to
Speaker 1: purchase a semi automatic weapons, strength in the background checks
Speaker 1: and the gun safety training requirements for him, concealed carry
Speaker 1: in secure sensitive locations, and require permit renewals every three
Speaker 1: years instead of five years. The gun location restrictions in
Speaker 1: New York City take effect today and will include Times Square.
Speaker 1: Mayor Eric Adams, licensed gun carriers and others may not
Speaker 1: enter with the gun unless otherwise specifically authorized by law. Meanwhile,
Speaker 1: New York defeated an attempt by gun rights proponents to
Speaker 1: stop it from enforcing new restrictions on who and where
Speaker 1: people can carry concealed weapons. The U. S. District Judge
Speaker 1: and Syracuse rejected the request by gun Owners of America
Speaker 1: and others. A hearing today in a Florida federal court
Speaker 1: takes place over classified material found at the home of
Speaker 1: former President Trump. Trump's lawyers will argue for a special
Speaker 1: master in what was seized from his Mara Lago home.
Speaker 1: The Justice Department has said the material seized do not
Speaker 1: belong to Trump, but to the government. Democrat Mary Peltola
Speaker 1: beat former Republican Alaska Governor Sarah Palin for the state's
Speaker 1: loan House seat in a special election. Peltola will fill
Speaker 1: the seat replaced the late Representative Don Young at least
Speaker 1: until the end of the year. A team of UN
Speaker 1: inspectors is expected to reach Ukraine's nuclear power plant, hoping
Speaker 1: to secure the facility, which is in Russian held territory.
Speaker 1: International Autonic Energy Agency chief Raphael Grocy says they're seeking
Speaker 1: to establish a permanent presence at the plant to prevent
Speaker 1: a potential nuclear disaster. Waiting the pros and cons and
Speaker 1: having come so far, we are not stopping. We are
Speaker 1: moving now. The I a e A. S Raphael Grocy.
Speaker 1: The cost of the new York City area Gateway rail
Speaker 1: tunnel project climbed to sixteen point one billion dollars, and
Speaker 1: the expected start of construction was pushed too. The plan
Speaker 1: is to seek more federal aid to cover the rising costs.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty journalists and
Speaker 1: analysts more than a hundred twenty countries. Michael Barr, this
Speaker 1: is Bloomberg Gaming. All right, Thank you, Michael. It's five
Speaker 1: o nine on Wall Street. Time now for the Bloomberg
Speaker 1: Sports Update. Here's John's dash. How thanks Amy. What a
Speaker 1: performance by Serena Williams. She put off her retirement again.
Speaker 1: She played like it was nine nine and the years
Speaker 1: she first won the US Open. Serena Surns forty one
Speaker 1: later this month, mother of a five year old. He
Speaker 1: had struggled to win matches all summer, and yet now
Speaker 1: with the crowd at ash Stadium going wild with every
Speaker 1: point she wins, she's into the third round. She'd beat
Speaker 1: the net continent. Who's the open second seed? Seven six
Speaker 1: two six six too. I think you can only have
Speaker 1: this experience, you know, once in a lifetime for sure. Um,
Speaker 1: I'm playing pretty good. I feel like like I saw
Speaker 1: the court up and practicing really well, but it hasn't
Speaker 1: been coming together and matches um. But you know, now
Speaker 1: it's kind of coming together, I guess. I mean, I
Speaker 1: had to bring it together today. So it worked out.
Speaker 1: Serena will be back at ASH tomorrow. She'll actually be
Speaker 1: there tonight playing doubles with their sister Venus. While she
Speaker 1: was doing her thing, Jay from the Ground was doing
Speaker 1: his just across the boardwalk in City Fielding Ground one
Speaker 1: seventies allowed only a Mookie Bets home run Darling Marte
Speaker 1: and early two run shot. Mets beat the Dodgers two
Speaker 1: to one. Brandon Nemo saved the day with a seventh
Speaker 1: inning catch over the wall, taking the home run from
Speaker 1: the Dodgers Justin Turner. Edwin Diaz then got the actual save.
Speaker 1: All season, they have played his theme song when he enters.
Speaker 1: Last night, it was a live performance by Tim he
Speaker 1: Trumpet in Adaheim. Yankees lost for the Angels three to
Speaker 1: two when Shoeotani had a three run home in the
Speaker 1: sixth inning off Garrett Cole. Seventy seven year old White
Speaker 1: Sox manager Tony Larusa taking tom offer of medical issue,
Speaker 1: John Stash were Bloomberg Sports team. All right, thank you, John,
Speaker 1: And now let's check the markets. S and P features
Speaker 1: down twenty nine points, DAL features down one hundred seventy eight,
Speaker 1: Nasdaq features down one hundred thirty five points. A ten
Speaker 1: year treasury down to thirty seconds to yield at three
Speaker 1: point two. Much more still to come on Bloomberg Daybreak
Speaker 1: on this Thursday morning. Stay with us. This is Bloomberg,
Speaker 1: Bloomberg eleven three oh weather. We've got sunny and less
Speaker 1: humid conditions today. We're going up to eighty five degrees.
Speaker 1: Up to eighty degrees tomorrow and then on Saturday, plenty
Speaker 1: of sunshine for your weekend, going up to eighty five degrees.
Speaker 1: Markets headlines and breaking new twenty four hours a day
Speaker 1: at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg
Speaker 1: Quick takes a Bloomberg Business Flash and I'm Karen Moscow
Speaker 1: knocks and bonds extending their sell off as a hawkish
Speaker 1: drum beat from central banks and a lockdown in China
Speaker 1: further freight investor nerves. We checked the markets every fifteen
Speaker 1: minutes throughout the trading day on Bloomberg. Right now U
Speaker 1: S and P futures are down thirty two points and
Speaker 1: down futures down a hundred nineties seven and NASDACK futures
Speaker 1: down one forty seven. That's down one point two percent.
Speaker 1: Adacks in Germany is down one and a half per set.
Speaker 1: Ten year treasury down to thirty seconds, held three point
Speaker 1: two percent yield on the two year three point four
Speaker 1: eight percent. DIMX Screwed oil is down one point seven percent,
Speaker 1: down a dollar forty nine at eighty eight dollars six
Speaker 1: cents of arrol comex school is down half percent or
Speaker 1: eight dollars ninety cents is seventeen seventeen thirty announced. The
Speaker 1: euro one point zero zero three seven against the dollar
Speaker 1: in British found one point one five nine nine and
Speaker 1: an one thirty nine point two four. And look at
Speaker 1: a bitcoin it's lower down one point seven percent and
Speaker 1: nineteen thousand, eight hundred fifty dollars. Today we are watching
Speaker 1: for the weekly report on initial jobless claims is at
Speaker 1: an eight thirty Wall Street time at ten it's hsen
Speaker 1: manufacturing and construction spending. That's a bloomberg business flash. Now
Speaker 1: here's Michael Barr with more on what's going on. Around
Speaker 1: the world. Michael, good morning, Good morning Karen, A Florida
Speaker 1: Federal court judge today a will decide whether a special
Speaker 1: master will carry out a third party review of those
Speaker 1: classified materials seized from former President Trump's mora lago with State.
Speaker 1: The Department of Justice has called the special master request unnecessary.
Speaker 1: President Biden will give a prime time address to the
Speaker 1: nation tonight. The White House says it will focus on
Speaker 1: what he calls the soul of the nation, including the
Speaker 1: threats of political violence. Not retired yet. Serena Williams continues
Speaker 1: her magical run at the US Open, winning round two.
Speaker 1: In baseball, the Yankees lost with the Angels three to
Speaker 1: The Mets beat the Dodgers too one, the Red Sox
Speaker 1: and Orioles one. The Nationals beat the A's five one,
Speaker 1: the Giants lost. Global News twenty four hours a day
Speaker 1: on air and on Bloomberg Quicktake, powered by more than
Speaker 1: twenty seven hundred journalists and analysts, are more than a
Speaker 1: hundred twenty countries. I'm Michael Barr, and this is Bloomberg Gaming.
Speaker 1: All right, thank you, Michael. It is five nineteen on
Speaker 1: Wall Street, where live from the Bloomberg Interactive Broker studios.
Speaker 1: This is Bloomberg Daybreak. President Biden making the big prime
Speaker 1: time speech to the nation tonight. We want to get
Speaker 1: a preview of that and a few other things. Bloomberg
Speaker 1: Government reporter Jack Fitzpatrick joins us. Now, Jack, it's pleasure,
Speaker 1: thanks for taking the time with us this morning. We
Speaker 1: know the pre resident will be in Philadelphia delivering that
Speaker 1: speech on what he is calling a battle for the
Speaker 1: soul of the nation. What will you be listening for, Well,
Speaker 1: you know we got a preview of this because he's
Speaker 1: spending a lot of time in Pennsylvania. You just had
Speaker 1: another speech that had a very similar focus, UH, in
Speaker 1: Pennsylvania a couple of days ago, on Tuesday. I I
Speaker 1: think the key takeaway here is that clearly the president
Speaker 1: is trying to get aggressive on the campaign trail and
Speaker 1: seemingly maybe shift the focus away from inflation, economic concerns,
Speaker 1: the possibility of a recession, UH, and drive home the
Speaker 1: message that that Republicans were, in his view, irresponsible. On
Speaker 1: January six, that the search of maral Lago and the
Speaker 1: the allegations that the former president Donald Trump kept top
Speaker 1: secret documents was also irresponsible, and and that the republic
Speaker 1: can party has gone awry. That's essentially the message Biden
Speaker 1: is taking out on the campaign trail. I don't know
Speaker 1: how much that digs in to the supposed advantage that
Speaker 1: Republicans have in this kind of mid term environment, especially
Speaker 1: where the economy is a concern, but you know, it's
Speaker 1: really I think the key is it's interesting to see
Speaker 1: the President gets so focused in one particular state in Pennsylvania,
Speaker 1: which as a swing state, uh, Senate race, and and
Speaker 1: try to redirect the message in that sense. Yeah, this
Speaker 1: is his third trip to Pennsylvania in just the past week.
Speaker 1: Is that significant? Well, it highlights the significance of Pennsylvania.
Speaker 1: They are trying to win the Senate race, trying to
Speaker 1: win the gubernatorial race coming up. Uh. He just showed
Speaker 1: up to wilkes Bury to also campaign for a swing
Speaker 1: seat in the House. Matt Cartwright, where he talked to
Speaker 1: the President, talked quite a bit about sort of tying
Speaker 1: in the port for police and police funding, local police
Speaker 1: funding with the idea that to support law enforcement. You
Speaker 1: you could not have had any doubts about the former
Speaker 1: president's role on January six, kind of tying these these
Speaker 1: democracy related arguments together into one package and for one
Speaker 1: reason or another. Obviously Pennsylvania is a very competitive state
Speaker 1: in a few races, but for one reason or another,
Speaker 1: Pennsylvania is the major focus right now for the president.
Speaker 1: Let's just briefly, if we could to Alaska, Democrats were
Speaker 1: able to flip Alaska's House seat, Mary Peltola defeating Sarah
Speaker 1: Palin in the special election fifty So yeah, a close race.
Speaker 1: But is there a message there for the GOP? I
Speaker 1: would I would mitigate any message that you think is
Speaker 1: clearly there for the Republicans. Uh, this is a really
Speaker 1: interesting race, but maybe a confusing one. This is ranked
Speaker 1: choice voice voting. Uh. Mary Paltola did win the first ballot,
Speaker 1: the you know, the people's first choice. She got about
Speaker 1: forty of the vote, So it then came down to uh,
Speaker 1: the second choice. Sarah Palin obviously is somebody with a
Speaker 1: significant following, but you probably wouldn't be surprised to learn
Speaker 1: she's not exactly a lot of people's second choice, sort
Speaker 1: of a lover or hater kind of political figure. And
Speaker 1: only about half of the people who chose the other
Speaker 1: Republican nick bagas uh for their first choice then chose
Speaker 1: Palin for their second choice. The rest either chose Mary
Speaker 1: Paltola the Democrat, or didn't choose anyone at all. So
Speaker 1: this tells us quite a bit about how ranked choice
Speaker 1: voting works, the possibilities that it can create for maybe
Speaker 1: a more moderate minority party at a Democrat running in
Speaker 1: Alaska in this case, um and she did run on
Speaker 1: abortion access to a significant degree. The Roe v. Wade
Speaker 1: decision to strike down Roe v. Wade was a significant
Speaker 1: factor in this. I don't know that that means this
Speaker 1: is going to be a great result for Democrats and
Speaker 1: all the other races, but it really is an interesting
Speaker 1: case study in ranked choice voting. All right, thank you
Speaker 1: so much, Bloomberg Government reporter Jack Fitzpatrick. Always a pleasure.
Speaker 1: We want to talk to you later again this morning,
Speaker 1: getting more information about tonight's speech from President Biden on
Speaker 1: what he is calling a battle for the soul of
Speaker 1: the nation, a theme that he has repeated pretty much
Speaker 1: repeatedly since Charlotte's Bill in seventeen. That's the first time
Speaker 1: we've heard him use that reference. So we'll be talking
Speaker 1: with Jack a little bit later in the program. Let's
Speaker 1: check the markets now, SMP futures down thirty five, Dal
Speaker 1: futures down two hundred, ten NASDAC futures down one hundred
Speaker 1: sixty five points. Ten year treasury down one thirty second,
Speaker 1: the yield at three point two percent, still ahead. On
Speaker 1: Bloomberg Daybreak, we'll be checking the markets and bringing you
Speaker 1: the latest in business economics and finance. Day with us.
Speaker 1: This is a Bloomberg Bloomberg eleven three oh weather sunny,
Speaker 1: less humid today, a break from that humidity. We're going
Speaker 1: up to eighty five today, down to eighty to grow
Speaker 1: down to eighty tomorrow and then on Saturday plenty of
Speaker 1: sunshine going up to eighty five. Broadcasting live from the
Speaker 1: Bloomberg Interactive Broker Studio in New York, Bloomberg e living
Speaker 1: three on to Washington, d C, Bloomberg ninety nine one
Speaker 1: to Boston, Bloomberg one O six one to San Francisco,
Speaker 1: Bloomberg NAM sixty to the country, Sirius XM Chadle one
Speaker 1: nine ten, and around the globe the Bloomberg Business and
Speaker 1: Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five
Speaker 1: thirty on Wall Street. Good morning. I'm Amy Morris and
Speaker 1: I'm Karen Moscow. We're just about four hours away from
Speaker 1: the open of US trading. Let's catch you up to
Speaker 1: date on the news you need to know at this hour.
Speaker 1: While stocks are beginning September the way they ended August
Speaker 1: with losses, Morgan Stanley Chief US equity strategist Mike Wilson
Speaker 1: tells US there's likely more pain ahead. The index usually
Speaker 1: is the lasting to fall, so meaning June probably was
Speaker 1: the low for the average stock, but the index we
Speaker 1: think still has to take out those June lows. We've
Speaker 1: used thirty four d for kind of the quote unquote
Speaker 1: growth recession or soft landing is you but I want
Speaker 1: to call it or a proper recession would be something
Speaker 1: closer to three thousand. The S and P five hundred
Speaker 1: is currently more than nine hundred points above that three
Speaker 1: thousand mark. Morgan Stanley's Mike Wilson says the market is
Speaker 1: not pricing in earnings risks, and global stocks are trading
Speaker 1: at a six week low as stocks in Europe and
Speaker 1: Asia post sharp declines. There are also fresh COVID concerns
Speaker 1: in China. The government is locking down the city of
Speaker 1: shang Do. Bloomberg's Colin Murphy in Beijing says the city
Speaker 1: of twenty one million people will experience the biggest lockdown
Speaker 1: since Shanghai earlier this year. Popely there will have been
Speaker 1: some lessons learned from Shanghai, because that was the complete
Speaker 1: chaotic handling of the crisis. And this is really an
Speaker 1: emerging hub in the western part of the country and
Speaker 1: had been pretty much immune until recently from COVID, So
Speaker 1: this is quite a disturbing development. Bloomberg's Callum Murphy says
Speaker 1: the Shindo lockdown comes after reporting one fifty seven new
Speaker 1: COVID cases yesterday. Meantime, this morning, Amy U S shipmakers
Speaker 1: stocks are sliding. That's after in video warned new roles
Speaker 1: governing the export of artificial intelligence ships to China could
Speaker 1: cost millions in revenue, and right now and video is
Speaker 1: down five and a half percent in early trading. Markets
Speaker 1: will also price in fresh economic data today. Weekly jobless
Speaker 1: claims come in at eight thirty a m. Wall Street time,
Speaker 1: followed by I S M manufacturing data at ten am,
Speaker 1: and it all comes before tomorrow morning's jobs report. To
Speaker 1: politics now, Amy President Biden is jumping into the mid
Speaker 1: term election campaign with a primetime address to the nation tonight.
Speaker 1: Bloomberg Political contributor Genie shehan Zeno says, the speech comes
Speaker 1: at a critical time. This is a big test for him.
Speaker 1: This is going to be a peek into the closing
Speaker 1: argument that the Democrats are going to be making as
Speaker 1: they move into this really, really tough election year in
Speaker 1: which they're likely going to lose the House and may
Speaker 1: in fact lose the Senate. But they're giving it a
Speaker 1: really good try, and he's going to be leading that charge.
Speaker 1: Political contributor Genie shehan Zeno made the comments on Bloomberg
Speaker 1: Sound on Catch the program weeknates at five pm Eastern
Speaker 1: on Bloomberg Radio. And this is Bloomberg. Thank you, Karen.
Speaker 1: It's five thirty three on Wall three. Let's bring in
Speaker 1: Michael Barr with more on what else is going on
Speaker 1: in New York and around the world. Thank you very much. Amy.
Speaker 1: New gun laws take effect in New York this week,
Speaker 1: following the June Supreme Court decision striking down a one
Speaker 1: year old state law restricting who can carry a weapon.
Speaker 1: Governor Kathy Oakel says they include gun free zones. The
Speaker 1: whole concept that a good guy with a gun will
Speaker 1: stop the bad guys with a gun. It doesn't hold up,
Speaker 1: It doesn't hold up, and the data bears us up.
Speaker 1: New York City Mayor Eric Adams says the location restrictions
Speaker 1: take effect today. The city is posted signers around Times
Speaker 1: Square informing people that the area is a gun free zone. Meanwhile,
Speaker 1: a U. S. District judge and Syracuse defeated an attempt
Speaker 1: by gun rights proponents stop New York State from enforcing
Speaker 1: new restrictions on concealed weapons. You and inspectors are hoping
Speaker 1: to gain access to Europe's largest nuclear power plant today,
Speaker 1: after making their way through the war zone in Ukraine.
Speaker 1: The plant, recently hit by shelling, remains under Russian control.
Speaker 1: International Atomic Energy Agency chief Raphael Grossi, we have a
Speaker 1: very important mission to accomplish. As you know, we are
Speaker 1: going to start immediately an assessment of the security and
Speaker 1: the safety situation at the plan. The I A e. A. S.
Speaker 1: Raphael Grossy. Democrat Mary Peltola flipped Alaska's lone House seat
Speaker 1: in a special election, expanding the Democrats majority in the
Speaker 1: narrowly divided chamber. Peltola beat former Republican Governor Sarah Palin
Speaker 1: for the seat, and it sets up a rematch in November.
Speaker 1: In the end, Peltola got fifty one percent of the
Speaker 1: votes to Palin's. The Department of Justice and former President
Speaker 1: Trump's legal team meet in federal court in Florida today
Speaker 1: over last month's FBI surge and seizure of classified documents.
Speaker 1: They will be battling over Trump's request for a special
Speaker 1: master to review all those documents. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than twenty hundred journalist and analysts more than
Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg Gaming.
Speaker 1: All right, thank you, Michael. On Wall Street. Time now
Speaker 1: for the Bloomberg Sports Update. Here's John's dash our. Alright,
Speaker 1: any the greatest of all time not done yet, retirement awaits.
Speaker 1: But Serena Williams still going at the US Open, a
Speaker 1: stirring seven six two six six to second round victory
Speaker 1: over net Kantovitch eat the Open. Second scene. So if
Speaker 1: Serena can beat her, could she actually win the Open?
Speaker 1: I cannot think that far. I I don't. I'm here
Speaker 1: just like I said, it's I don't. I'm having fun
Speaker 1: and I'm enjoying it. And then um Honestly, I've had
Speaker 1: so many tough matches the last I don't know how
Speaker 1: long that. I just feel like just being prepared for
Speaker 1: everyone that I play is just gonna be really, really
Speaker 1: difficult and get through those moments. Tomorrow will bring another
Speaker 1: huge crowd at ash Stadium. They'll go wildly each winning
Speaker 1: point of Serena will take on Odda, Tom Jonovitch, Rant,
Speaker 1: Andy Murray thirty five. He's into the men's third round,
Speaker 1: lost the first set, drop only four games. After that
Speaker 1: easy win last night for the top seed in defending
Speaker 1: Champton Neil Medvedev, there was a playoff atmosphere at City
Speaker 1: Field Mets and Dodgers could meet. In the end, lcs them.
Speaker 1: That's one two to one, with Jacob Ground allowing only
Speaker 1: a Mookie Bets home run. Justin Turner nearly hit a
Speaker 1: game tie in homer off the ground seventh any, but
Speaker 1: Brandon Nimo went over the wall to make the catch.
Speaker 1: Darlene Markday provided the offense with a two run shot
Speaker 1: early on, and Edwin Diaz got to save his entering
Speaker 1: theme song, this time performed live by Timmy Trumpet and Anna.
Speaker 1: I'm Garrett Cole cruising along to five innings. Then in
Speaker 1: the sixth and infield single and error at a three
Speaker 1: run homer by the Amazing Show Ao Tani is three
Speaker 1: of the year. The Angels tought the Yankees three to two.
Speaker 1: John Stashwar Bloomberg Sports seem all right, Thank you, John.
Speaker 1: It is seven on Wall Street time now for the
Speaker 1: Try State Business Report. Here with that, Bloomberg's ed Corey
Speaker 1: Frontier Communications has agreed to expand high speed internet access
Speaker 1: in poor communities and an Internet surcharge and improved marketing
Speaker 1: and customer service. It's part of a sixty million dollar
Speaker 1: settlement announced Wednesday by Connecticut's attorney general. New Jersey state
Speaker 1: lawmakers this summer approved that tem Porker's Bill of Rights.
Speaker 1: It calls for staffing firms to register with the state,
Speaker 1: offer enhanced benefits, and provide pay equal to what full
Speaker 1: time workers at their workplaces receive. The legislation now sits
Speaker 1: on the desk of Governor Phil Murphy. Reports of five
Speaker 1: thousand dollar tickets for Bruce Springsteen's upcoming tour have upset
Speaker 1: a New Jersey congressman. He's demanding that Live Nation Entertainment
Speaker 1: explained what he calls its exorbitant markups and secretive pricing practices.
Speaker 1: Representative Bill Pascal alleges the company's ticket price practices rip
Speaker 1: off consumers. That's your Bloomberg Try State Business Report. I'm
Speaker 1: Ed Corey. All right, thank you, Ed. It's on Wall Street.
Speaker 1: Bloomberg Radio is on the air from San Francisco to
Speaker 1: New York, London to Hong Kong. Let's check in with
Speaker 1: our global news team for some of the top stories
Speaker 1: heard on our three hundred affiliate radio stations around the world.
Speaker 1: I'm Steve Potaskan ont X in Los Angeles. We're talking
Speaker 1: about reports of Disney consider ring an Amazon Prime style
Speaker 1: membership program. Um corney Tannahuan kerl d in Dallas. Sam's
Speaker 1: Club is raising its membership fee for the first time
Speaker 1: in nine years. Him Caroline had Bloomberg DAV Digital Radio
Speaker 1: in Londovot putting on the bond market sell off as
Speaker 1: markets price in bigger Great Heights from E C B.
Speaker 1: Bid coryon w w J in Detroit, I'm reporting this
Speaker 1: city plans to reopen it's adult use marijuana application process
Speaker 1: this week. And those are some of the stories our
Speaker 1: Bloomberg journalists and analysts are working on this morning. Around
Speaker 1: the world. It's five thirty nine on Wall Street. The
Speaker 1: following is an editorial from Bloomberg Opinion. This sedatorial was
Speaker 1: written by the Bloomberg Editorial Board. Mikhail Gorbachoff, who died
Speaker 1: this week at age ninety one, defied convention throughout some
Speaker 1: of the most tumultuous years of the Cold War. When
Speaker 1: he assumed leadership of the Soviet Union in he inherited
Speaker 1: the country that was economically moribund, stubbornly corrupt, and suffering
Speaker 1: through the final spasms of ideological failure. A lesser leader
Speaker 1: might have tried to ignore such challenges. Gorbachev took many
Speaker 1: of them head on. Perhaps his greatest achievement was overseeing
Speaker 1: the largely bloodless dissolution of his own empire. Millions of
Speaker 1: people across Central and Eastern Europe gained freedom as a result.
Speaker 1: Gorbachev's legacy is complex, to be sure. The final leader
Speaker 1: of the Soviet Union failed at most of his ambitions,
Speaker 1: but the world was better for them all the same.
Speaker 1: The senatorial was written by the Bloomberg Editorial Board. For
Speaker 1: more Bloomberg Opinion, please go to Bloomberg dot com, slash
Speaker 1: Opinion or opie I n go on the Bloomberg terminal.
Speaker 1: This has been Bloomberg Opinion. Bloomberg Opinion editorials can be
Speaker 1: heard every weekday at this time, and terminal customers can
Speaker 1: read more at opie I n oh SMP futures down
Speaker 1: thirty points, DAL futures down one hundred seventy five points,
Speaker 1: NASTAD futures down one hundred forty five points, the ten
Speaker 1: year treasury one thirty second higher, the yield at three
Speaker 1: point one eight per cent. Still ahead on Bloomberg Daybreak
Speaker 1: and check on all the news you need to start
Speaker 1: your day. This is Bloomberg. Bloomberg eleven three oh weather, sunny, less,
Speaker 1: humid today, going up to eighty five degrees. We'll get
Speaker 1: up to eighty degrees to start your weekend tomorrow, and
Speaker 1: then plenty of sunshine on Saturday going up to eighty five.
Speaker 1: Markets headlines and breaking news twenty four hours a day
Speaker 1: at Bloomberg dot Com, the Bloomberg Business at and at
Speaker 1: Bloomberg Quick Tape. This is a Bloomberg Business lash and
Speaker 1: I'm Karen Moscow stocks in Voluns extending their sell off
Speaker 1: as a hawk issue, drum dead from central banks in
Speaker 1: a lockdown in China. Further phrase investor nerves. Europe Stock
Speaker 1: six hundred index is sliding one and a half percent,
Speaker 1: led by miners in real estate, and US ship makers
Speaker 1: are falling in pre market trading, dragging down NASTAC futures
Speaker 1: after a sales warning from Nvidia, who checked the markets
Speaker 1: every fifteen minutes throughout the trading day. On Bloomberg right now,
Speaker 1: NASDAG futures, they're down one hundred thirty one point sets
Speaker 1: down about one point one percent, SMP futures down twenty
Speaker 1: five and down futures down a hundred forty two Tenure
Speaker 1: Treasury up one thirty second Yell three point one eight percent.
Speaker 1: They yield on the two year three point four seven percent.
Speaker 1: Nine Max screwed oils down one point six percent at
Speaker 1: a dollar forty five and eighty eight dollars ten cents
Speaker 1: of barrel call mex School down half percent or eight
Speaker 1: dollars forty cents at seventeen seventeen seventy an ounce. The
Speaker 1: euro is at one point zero zero three zero against
Speaker 1: the dollar, British pound one point one five nine seven
Speaker 1: and the end one thirty nine point one five, and
Speaker 1: Bitcoin is down one point four percent at nineteen thousand
Speaker 1: and nine hundred dollars as a Bloomberg business flash. Now
Speaker 1: here's Michael Barr with more on what's going on around
Speaker 1: the world. Michael darn, thank you very much. President Biden
Speaker 1: will deliver a national address tonight that will focus on
Speaker 1: what he calls the soul of the nation. The White
Speaker 1: House says he might discuss Republicans threatening violence if the
Speaker 1: Justice Department and Night's former President Trump the federal judge
Speaker 1: who signaled a preliminary intent to appoint a special master
Speaker 1: to oversee the review of the documents the FBI sees
Speaker 1: from Trump's Florida home as scheduled a hearing today. Serena
Speaker 1: Williams has advanced to the third round in the US Open.
Speaker 1: And baseball, the Yankees lost to the Angels three two.
Speaker 1: The Mets beat the Dodgers to one, the Red Sox
Speaker 1: and Orioles one. The Nationals beat the A's five one.
Speaker 1: The Giants lost. Global Needs twenty four hours a day
Speaker 1: on air and on Bloomberg Weikdake, 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 gaming, all right.
Speaker 1: Thank you. Michael. It is nine on Wall Street and
Speaker 1: we're live from the Bloomberg Interactive Broker Studios. This is
Speaker 1: Bloomberg Daybreak. We are joined live now by Michael Houston,
Speaker 1: Chief market an Analyst with CMC Markets. Michael, it is
Speaker 1: a pleasure. Thank you for taking the time with us
Speaker 1: this morning, as we just heard from here and the
Speaker 1: markets have gotten hammered since fed Share Poel's speech at
Speaker 1: Jackson Hall, and we just asking about your view first
Speaker 1: on this first trading day of September. Yeah, it's certainly
Speaker 1: not go off to a positive start. Hasard ain't here.
Speaker 1: I think it's like someone switched a light switch on Friday,
Speaker 1: because what we've seen with respect to equity markets has
Speaker 1: been quite start But I think most of the action
Speaker 1: has actually been in the bomb market, particularly here in Europe,
Speaker 1: or we've seen massive jumps in yields, not only on
Speaker 1: the long end but also on the short end. I
Speaker 1: think there's been a significant change in sentiment when it
Speaker 1: comes to the reaction function of not only the Bank
Speaker 1: of England but also the European Central Bank. I think
Speaker 1: people are now starting the price in the possibility seventy
Speaker 1: five basis points by the ECB next week. But also
Speaker 1: here in the UK, the markets are starting the price
Speaker 1: four point to five bank base rate from the Bank
Speaker 1: of England. Now we're at one point seven five at
Speaker 1: the moment, so I think market pricing has got slightly
Speaker 1: out ahead of its skis because even though inflation is
Speaker 1: high here, I'm struggling to think of any sort of
Speaker 1: scenario that would cause the Bank of England the hype
Speaker 1: rates to that extent. I see. So as we do
Speaker 1: start this new month, though you talked about barns, where
Speaker 1: do we go next for the equity markets, Well, I
Speaker 1: think it's quite likely that we're going to retest the loads.
Speaker 1: Um Certainly, I think that is going that's my base
Speaker 1: case for the US. Here in Europe, we're already back
Speaker 1: at July levels for the docks has seen some significant
Speaker 1: declines over the course of the past few days and
Speaker 1: has the potential to go a little bit lower. But certainly,
Speaker 1: I think we're going to retest the tune loads for
Speaker 1: the docks potentially the next week or so. Um As
Speaker 1: for the as the US markets, I think again we're
Speaker 1: probably going to see a retest of the loads at
Speaker 1: some point. Michael, is this a buying opportunity. Do we
Speaker 1: see a bartom coming anytime soon? I'm not inclined to
Speaker 1: buy at this point. No, And I think one of
Speaker 1: the reasons for that is until we get a clearer
Speaker 1: idea of what central banks are likely to do over
Speaker 1: the course of the next few months, I think it's
Speaker 1: going to be very, very choppy. I think it also
Speaker 1: depends on what energy prices are going to be doing.
Speaker 1: I think there's an awful lot of uncertainty around them.
Speaker 1: One of the good things I think over the course
Speaker 1: of the past few days, as we have seen a
Speaker 1: big drop not only in crude oil prices, but we
Speaker 1: also seen sharp falls in natural gas prices on both
Speaker 1: sides of the antic. But the problem with that is
Speaker 1: is there's still at very very high levels, even accounting
Speaker 1: for the twenty nine or drop that we've seen in
Speaker 1: the past week or so. You mentioned getting a clearer
Speaker 1: indication from the central Bank. What is it you're looking for.
Speaker 1: What are some of the flags out there? I think
Speaker 1: for me, the flags are first and foremost, what's going
Speaker 1: to happen in September. What's the Fed going to do
Speaker 1: in September? I think tomorrow's payrolls report is a little
Speaker 1: bit of a distraction, because I think ultimately we will
Speaker 1: get a seventy five basis point very high from the
Speaker 1: Fed in September Milly on the basis of the tone
Speaker 1: of pal speech last Friday, I think it's what happens
Speaker 1: after that, what is what is what is the inflation
Speaker 1: outlook likely to look like as we head into twenty three.
Speaker 1: They've indicated that they're not going to be cutting rates
Speaker 1: anytime soon, and I think for me, it's really about
Speaker 1: how fast inflation starts to fall back and how that
Speaker 1: influences central banks as they head into twenty three. I
Speaker 1: think September and October a very difficult months for equity
Speaker 1: markets historically, and I think that's likely to continue to
Speaker 1: be the case. So I think for me, it's really
Speaker 1: about what the outlook looked like looks like at the
Speaker 1: end of September, because I think before that it's going
Speaker 1: to be very, very difficult to really make a clear
Speaker 1: decision given the current sets of uncertainty that we've got
Speaker 1: with respect to not only monetary policy but also fiscal
Speaker 1: policy going forward. So do you anticipate inflation falling back?
Speaker 1: Maybe we buckle up for September October and then things
Speaker 1: will start to ease off. I think we will start
Speaker 1: to ease off. The problem we've got here in the
Speaker 1: UK is we've got a broken energy market and it's very,
Speaker 1: very difficult to really extrapolate what energy prices are going
Speaker 1: to look like three months out from now. We're already
Speaker 1: looking at an eight percent rise in energy prices here
Speaker 1: in the UK for October. Now, that's going to be
Speaker 1: very difficult. In fact, it's going to be impossible for
Speaker 1: consumers here in the UK to absorb. Next week we
Speaker 1: get a new Prime minister. The big question landing in
Speaker 1: that Prime Minister's inbox will be how do you mitigate
Speaker 1: some of the worst effects of that energy price spike
Speaker 1: and what happens to energy prices going forward. We still
Speaker 1: don't know whether or not pouting will allow gays from
Speaker 1: to reopen North Streme one, So what will the affect
Speaker 1: that I have energy process set against windsor in Europe?
Speaker 1: Just an incredible amount of uncertainty. We're gonna watch it
Speaker 1: with you. Michael Houston, Chief market analyst with CMC Markets.
Speaker 1: Always a pleasure to talk to you, sir. Thank you
Speaker 1: so much for joining us. Karen Amy. It is five
Speaker 1: fifty four on Wall Street Time. Now for the Bloomberg
Speaker 1: Law Report. Let's get to the legal stories we are
Speaker 1: watching this morning. From Bloomberg Jeff Bellinger. The Federal Circuit
Speaker 1: ruled that smartphones made by Apple and other tech companies
Speaker 1: do not infringe on patents held by I, n VT
Speaker 1: and U S. Sales of the devices can continue. The
Speaker 1: Second Amendment Foundation filed a federal lawsuit over California's ghost
Speaker 1: gun law that restricts individuals from making their own firearms.
Speaker 1: A federal appeals court rule that Burger King affiliates must
Speaker 1: face antitrust litigation over a pack that barred the fast
Speaker 1: food company and its franchisees from recruiting one another's employees.
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. Now.
Speaker 1: Another legal story that we're watching this morning. The expansion
Speaker 1: of the so called metaverse, accessible through immersive headsets is
Speaker 1: generating concerns about the information that's collected on people who
Speaker 1: wear the devices and how to protect it. For more,
Speaker 1: Bloomberg's Lydia Wheelers spoke with Bloomberg's law reporter Andrea Vittorio.
Speaker 1: There are a lot of potential applications UM. Gaming is
Speaker 1: definitely one of them. UM. That is learning. There are
Speaker 1: schools that are experimenting with virtual reality for students. There's
Speaker 1: also corporate training that can happen in virtual reality. You
Speaker 1: can help firefighters or doctors learned their craft UM just
Speaker 1: by practicing an additional environment. UM. And they're just a
Speaker 1: lot of different use cases that were kind of are
Speaker 1: seeing explored, but UM could broad now like theme parks,
Speaker 1: travel shopping. There's a lot going on there in the metaverse.
Speaker 1: So what kinds of data are our companies collecting from
Speaker 1: people who use these sorts of extended reality devices? And
Speaker 1: is any of its sensitive information? The data collected can
Speaker 1: depend on the device or how you're using it UM,
Speaker 1: But there are a lot of potential collection points, like
Speaker 1: when you wear a headset, can gather information about like
Speaker 1: how your head is moving, what you're looking at. UM.
Speaker 1: You can sometimes hold devices in your hands that will
Speaker 1: track your hands are moving or what sides they are
Speaker 1: even so UM these are all considered UM pretty personal
Speaker 1: pieces of information because they really varied by person um
Speaker 1: and can even the sort of amount to identifying the
Speaker 1: person if you have enough information about done than how
Speaker 1: they move and what they look like. So uh, prior
Speaker 1: to the advocates or concerned just about the um physical
Speaker 1: characteristics or traits that are being gathered about people as
Speaker 1: they use these devices. And that's Bloomberg the Law reporter
Speaker 1: Andrea Vittorio speaking at the Bloomberg so Lydio Wheeler. Catch
Speaker 1: more of that interview, plus analysis of the latest legal
Speaker 1: news by subscribing to the Bloomberg Law podcast or downloading
Speaker 1: this show at Bloomberg dot com slash podcast. Attorneys can
Speaker 1: find exceptional legal research and business development tools at Bloomberg
Speaker 1: Law dot com and on the Bloomberg terminal at b
Speaker 1: Law Go Futures lower this morning and so ahead on
Speaker 1: Bloomberg Daybreak, I checked on the business headlines and all
Speaker 1: the news you need to start your day. And this
Speaker 1: is Bloomberg