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Speaker 1: Good morning. I'm Abe Morris and I'm Karen Moscow. Here

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Speaker 1: are the stories we're following today.

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Speaker 2: We start with labor strikes across the country an attentative

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Speaker 2: deal for screenwriters in Hollywood. Bloomberg's Ed Baxter joins us

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Speaker 2: from California with the very latest on that story.

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Speaker 3: We've been hearing that areas regarding residuals, minimum staffing, revenue

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Speaker 3: sharing when shows hit streaming, as well as AI and

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Speaker 3: data transparency, but hammered out. As with all deals, union

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Speaker 3: members have to vote, and WGA member Alceptian says ratifications

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Speaker 3: should not be a problem.

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Speaker 2: We know that our negotiating committee is not going to

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Speaker 2: accept the deal then subpar, because we trust them and

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Speaker 2: they've led us through this.

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Speaker 3: The strike has been ongoing since early May in California.

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Speaker 3: I'm at Baxter Bloomberg Radio.

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Speaker 1: All right, Ed, thanks, and we're also monitoring developments in

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Speaker 1: the auto workers strike after the UAW expanded the work

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Speaker 1: stoppage Friday. This morning. The two sides remain far apart

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Speaker 1: on key issues, and Bloomberg's Ed Corey joins us from Detroit.

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Speaker 4: With the latest.

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Speaker 5: Those issues include pay, benefits and job protections in a

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Speaker 5: Sunday television appearance. US Transportation Secretary Pete Buddhaje Edge said

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Speaker 5: automakers can achieve a win win by sharing strong profits

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Speaker 5: with workers. President Joe Biden travels to Michigan Tuesday to

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Speaker 5: support striking UAW members. Meanwhile, union workers at Ford, Canada

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Speaker 5: have ratified a three year deal that locks in substantial

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Speaker 5: wage gains. In Detroit, ed Corey Bloomberg Radio, all right.

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Speaker 2: Ed, thank you, now, let's stay in Michigan Tomorrow. President

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Speaker 2: Biden will make another pitch to residents of the state

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Speaker 2: his economic record. Bloomberg political reporter Mark Niquette says it's

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Speaker 2: an issue on a lot of consumers' minds because how

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Speaker 2: the economy looks on paper does not match up with

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Speaker 2: what they are experiencing.

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Speaker 6: He has a record to run on. He's passed significant

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Speaker 6: legislation that is making investments in infrastructure and chips and

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Speaker 6: other things in the economy. The numbers are getting better,

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Speaker 6: but people are just starting feeling it.

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Speaker 2: Bloomberg's Mark Niquett says the chill for President Biden will

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Speaker 2: be convincing Americans that the economy is strengthening as inflation drops.

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Speaker 1: And amy as you know We're closely following developments on

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Speaker 1: Capitol Hill with a potential government is shut down by

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Speaker 1: the end of the week. House Speaker Kevin McCarthy has

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Speaker 1: been trying to rally hardline members of his own party

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Speaker 1: to pass a stopgap spending measure, but the speaker continues

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Speaker 1: to face pushback. Florida Republican Congressman Matt Gates told Fox

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Speaker 1: News over the weekend a shutdown may be needed for

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Speaker 1: a few days to meet the demands of Conservatives. Louisiana

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Speaker 1: representative and McCarthy. Ally, Garrett Graves has a message for

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Speaker 1: GOP holdouts.

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Speaker 7: If you want to empower Senator Schumer, if you want

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Speaker 7: to empower Joe Biden, then what you do is you

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Speaker 7: let government shut down. You don't pursue a continued resolution,

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Speaker 7: you don't pass the appropriations bills. That is the liberal solution.

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Speaker 1: Republican Representative Garrett Graves says he wants to see a

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Speaker 1: continuing resolution keeping the government open. The federal government's current

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Speaker 1: funding is set to run out on Saturday.

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Speaker 2: And the tech space is also info because this morning,

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Speaker 2: centering specifically on AI, Amazon will invest up to four

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Speaker 2: billion dollars into artificial intelligence startup Nthropic a major player

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Speaker 2: in the generative generative artificial intelligence space, and Thropic aims

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Speaker 2: to make a safer kind of chatbot for tasks like searching,

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Speaker 2: answering questions, and coding. The AI company will move most

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Speaker 2: of its software to Amazon Web Services data centers and

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Speaker 2: use the cloud computing company's homegrown chips to train the

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Speaker 2: models it uses to power chatbots and other applications. Founded

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Speaker 2: by OpenAI veterans, in Thropic has raised more than a

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Speaker 2: billion dollars so far.

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Speaker 1: Well e verses this morning, Amy. We're also following developments

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Speaker 1: in the banking industry. We spoke exclusively with UBS CEO

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Speaker 1: Sergio or Mati, who's making his first trip to China

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Speaker 1: since UBS took over credits Suites. Ramadi says he wants

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Speaker 1: to reiterate the firm's commitment to clients in China.

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Speaker 8: This is my first trip to Asia since taking on

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Speaker 8: again my role at UBS. Think it is very important

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Speaker 8: for me to reach out to all the Chinese stackholders

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Speaker 8: and reiterate our commitment to China, while also updating them

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Speaker 8: on the integration.

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Speaker 1: UBS CEO Sergio Ormadi also discussed the bank's effort to

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Speaker 1: regain funds from its credit sweet integration. In an exclusive

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Speaker 1: conversation with our John Low and Beijing. You can hear

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Speaker 1: the full conversation on the Bloomberg Talks podcast feed. Download

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Speaker 1: all our high profile conversations wherever you get your podcasts.

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Speaker 2: And we have news on a major victory for NASA

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Speaker 2: this morning, and NASA capsule containing chunks of an asteroid

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Speaker 2: that may hold clues to the Solar System landed in

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Speaker 2: the Utah Desert yesterday. Cosmo chemist doctor Natalie Starkey says

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Speaker 2: the findings will help scientists get a snapshot of what

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Speaker 2: materials were present when the Solar System first formed.

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Speaker 9: We don't have any other samples that can tell us

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Speaker 9: about those times. And the important thing is is they're

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Speaker 9: pristine because they haven't been through atmosphere entry. They're going

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Speaker 9: to be looked after in this cap that's come back

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Speaker 9: from the spacecraft, and they're just the perfect samples that

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Speaker 9: we could hope for.

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Speaker 2: Cosmo chemist doctor Natalie Starkey says the NASA mission has

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Speaker 2: been more than a decade in the making. Researchers plan

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Speaker 2: to study those rocks and use the mission to inform

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Speaker 2: future exploration.

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Speaker 1: And again, amy futures are lower this morning S and

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Speaker 1: P Future is down to tenth of up percent done

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Speaker 1: about six points down. Futures down to tenth of up

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Speaker 1: percent or forty six points, and nasday Future is down

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Speaker 1: to tenth of up percent or nineteen points. Ten year

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Speaker 1: Treasury down eleven thirty seconds. They yield at four point

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Speaker 1: four eight percent, and straight ahead. We have more global headlines,

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Speaker 1: plus a check of sports, and this is Bloomberg.

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Speaker 2: Thank you, Karen. Time now for a look at some

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Speaker 2: of the other stories making news in New York and

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Speaker 2: around the world. For that, we're joined by Bloomberg's Michael Barr.

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Speaker 2: Good morning, Michael, Good morning.

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Speaker 10: Amy. Aphelia may no longer be a tropical storm, but

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Speaker 10: it is still giving the Try and State area headaches

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Speaker 10: with wind and rain. Power companies across the Tri state

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Speaker 10: area have reported more than six thousand power outages. Many

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Speaker 10: residents woke up yesterday to flooded streets in Virginia and

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Speaker 10: neighboring North Carolina. Power for the most part, has been restored.

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Speaker 10: For Dominion Energy Customers, spokesperson Benita Billingsley.

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Speaker 11: Harris that combination of strong winds and heavy rain caused

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Speaker 11: a lot of damage from trees and tree limbs. Pulling

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Speaker 11: down power lines, breaking poles, and other equipment.

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Speaker 10: Dominion energies Benita Billingsley Harris as they brought an extra

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Speaker 10: cruise from other states to respond to the outages. The

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Speaker 10: mayor of El Paso, Texas, says his city is reaching

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Speaker 10: a breaking point over the droves of asylum seekers. The

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Speaker 10: strain is being felt by several border towns, with as

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Speaker 10: many as eight thousand migrants crossed again to the US

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Speaker 10: every day on CBS has faced the nation. Heard Sundays

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Speaker 10: on Bloomberg, Republican Congressman Tony Gonzalez of Texas blamed the

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Speaker 10: Biden administration for the crisis.

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Speaker 4: This border crisis is as if.

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Speaker 1: A Category four hurricane has hit. Well, we're just trying

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Speaker 1: to keep our head above water here in Texas.

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Speaker 10: But Homeland Security Secretary Alejandro Majorcis, who visited the border

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Speaker 10: over the weekend, blamed in action in Congress.

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Speaker 6: Our immigration system is absolutely broken, a fact on which

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Speaker 6: everyone agrees, and Congress needs to face it now.

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Speaker 10: Mexico says it's reached an agreement with the US to

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Speaker 10: deport migrants from its northern cities to stem the sharprize. Today,

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Speaker 10: authorities in Hawaii are expected to begin, allowing the first

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Speaker 10: residents to return to their devastated properties in Lehina, Many

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Speaker 10: for the first time since the historic town was demolished

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Speaker 10: by a wildfire nearly seven weeks ago. The wildfire killed

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Speaker 10: at least ninety seven people and destroyed more than two

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Speaker 10: thousand buildings, most of them homes. Global News twenty four

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Speaker 10: hours a day, powered by more than twenty seven hundred

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Speaker 10: journalist analyst in over one hundred and twenty countries. I'm

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Speaker 10: Michael Barr. This is Bloomberg Gaming.

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Speaker 2: All right, Thank you, Michael. We bring you news throughout

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Speaker 2: the day here on Bloomberg Radio. But now you can

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Speaker 2: get the latest news on demand whenever you want it.

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Speaker 2: Subscribe to Bloomberg News Now to get the latest headlines

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Speaker 2: at the click of a button. Get informed on your schedule,

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Speaker 2: Listen and subscribe to Bloomberg News Now on the Bloomberg

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Speaker 2: Business app, Bloomberg dot Com plus Apple, Spotify, and anywhere

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Speaker 2: else you get your podcasts. Time now for the Sports report,

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Speaker 2: brought to you by Tri State Autie. For that, we

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Speaker 2: bring in John'stash Hour.

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Speaker 4: Thanks Amy and Medlife Stadium. The Patriots only scored fifteen points,

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Speaker 4: it was enough to beat the Jets for the fifteenth

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Speaker 4: kids secutive time. Only one New England touchdown. It was

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Speaker 4: a long one.

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Speaker 5: Kisiki moves right to left.

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Speaker 12: Jones are the playfif Can I throw down the right seam?

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Speaker 13: It's put up by Farrell Brown racing to the twenty

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Speaker 13: fifteen ten chase by any five stretching out to the pylon,

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Speaker 13: put DIY for a touchdown Patriots.

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Speaker 4: That's radio. The Jets scored one TV That came fourth

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Speaker 4: quarter captain eighty seven yard drive, which was more yards

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Speaker 4: than the Jets and massed combining their thirteen other possessions.

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Speaker 4: They punted on eight of the first nine. It was

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Speaker 4: another rough day for Zach Wilson as the Pats beat

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Speaker 4: the Jets fifteen to ten. Both teams are one and two.

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Speaker 4: New England A voids what would have been their first

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Speaker 4: oh to three starts since two thousand. Denver is ozh

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Speaker 4: and three, having lost at Miami seventy to twenty. The

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Speaker 4: Dolphins scored ten touchdowns, five in each half. They had

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Speaker 4: seven hundred and twenty six yards of offense, the most

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Speaker 4: of the NFL since nineteen fifty one. The seventy points

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Speaker 4: the most in Chicago scored seventy three in the nineteen

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Speaker 4: forty championship game. These Bears are owing three. They've lost

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Speaker 4: thirteen straight going back to last season. Kansas City won

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Speaker 4: forty one to ten. Chiefs were ugh thirty four to

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Speaker 4: nothing at the half. Big upset in Phoenix. Arizona beat

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Speaker 4: Dallas twenty eight to sixteen. Cowboys were two another. They

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Speaker 4: had beaten the Jets and Giants by combined seventy to ten.

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Speaker 4: Last night, Pittsburgh won at Las Vegas twenty three to eighteen.

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Speaker 4: Mets lost in Philadelphia five to two. The Pills on

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Speaker 4: the verge of clinching a wildcard. Arizona leads for the

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Speaker 4: second NL wildcard. The Dbacks the Yankee seven to one upset.

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Speaker 4: In the WNBA playoffs, the Connecticut Sun took game one

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Speaker 4: of the best of five semifinals from the Liberty.

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Speaker 14: John Stashawer, Bloomberg.

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Speaker 2: Sports Amy All right, thank you, John. The Bloomberg Sports

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Speaker 2: Report was brought to you by Audi. Don't let someone

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Speaker 12: From coast to coast, from New York to San Francisco,

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Speaker 12: Boston to Washington, DC, nationwide on siriusxam, the Bloomberg Business

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Speaker 12: app in Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 2: Thank good morning to you. I'm Amy Morris. UBS CEO

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Speaker 2: Sergio Ermadi is on his first trip to Beijing since

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Speaker 2: returning to the bank. Both UBS and Credit Suees have

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Speaker 2: long standing joint ventures in China, where managing the assets

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Speaker 2: of the ultra wealthy is big business. Ermadi sat down

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Speaker 2: with Bloomberg's John lou for inni exclusive interview on the

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Speaker 2: Swiss giants plans in Asia. I started by discussing if

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Speaker 2: Chinese clients still have concerns about the integration of Credit Suisse.

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Speaker 8: Things are progressing very well. We made shift very swift

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Speaker 8: progress in integrating Credit Swiss. We close the transaction in

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Speaker 8: record times, also thanks to the big cooperation of regulators

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Speaker 8: across the globe. And that's one of the reasons why

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Speaker 8: I'm also here today in Beijing because I you know,

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Speaker 8: this is my first trip to Asia since taking on

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Speaker 8: again in my role at UBS, and I think it's

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Speaker 8: very important for me to reach out to all the

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Speaker 8: Chinese stakeholders and reiterate our commitment to China while also

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Speaker 8: updating them on the integration.

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Speaker 13: So I do know that here in China UBS has

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Speaker 13: a securities venture. Credit Swiss also had a securities venture.

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Speaker 13: It would seem to make sense to sell out of

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Speaker 13: the Credit Swiss venture. Is that something you're pursuing now?

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Speaker 8: Well, we are currently evaluating the best options. Of course,

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Speaker 8: we are not allowed to have to operations, but we

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Speaker 8: need to really understand exactly how to do that. We

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Speaker 8: are very happy with our historical operation here in China

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Speaker 8: that we were the first to get the license as

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Speaker 8: a foreign investors to own and a control stake. So

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Speaker 8: it's a very important element of our strategy in China.

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Speaker 8: And now we need to exactly evaluate how to integrate

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Speaker 8: or how to what to do with the CES operation.

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Speaker 13: Sort of how far have you progressed in that process?

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Speaker 13: Are you looking at potential buyers? Are you talking to

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Speaker 13: anyone yet or is it knock got into that place at.

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Speaker 8: This stage we are examining the situation, Okay.

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Speaker 13: In your second quarter results it mentioned specifically that client

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Speaker 13: confidence sentiment and activity here in Asia was muted. Are

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Speaker 13: you still finding that's the case into the third quarter.

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Speaker 8: Well, I think that we saw in general a little

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Speaker 8: pick up across the globe, also in Asia in terms

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Speaker 8: of client activity. So the most important topic for us

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Speaker 8: was to see the returns of assets that left credit SUITEE.

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Speaker 8: In Q four Q one this year, we started to

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Speaker 8: see assets coming back at pretty swiss towards the end

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Speaker 8: of the second quarter. We see also very good momentum

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Speaker 8: in Q three, So that's the most important issue. But

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Speaker 8: also in general, it's fair to say that investors are

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Speaker 8: more constructive than they have been uh recently.

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Speaker 13: So on the momentum you talked about in Q three

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Speaker 13: there was a net new money and flow about sixteen

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Speaker 13: billion US dollars and two Q you said at the

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Speaker 13: time you expected that to continue. What is it looking

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Speaker 13: like in twe Q What does good momentum mean?

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Speaker 8: Well, I mean we we are pursuing similar patterns, so

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Speaker 8: we are not going to be specific on numbers. The

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Speaker 8: quarter is still ongoing, but the most important issues that

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Speaker 8: we see we see see substantial substantially our forecast being

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Speaker 8: confirmed and we are getting the close of the quarters.

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Speaker 8: So I think that that's very encouraging to see that.

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Speaker 8: So quickly. Our clients are responding to our actions to

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Speaker 8: stabilize credit suits and and and to and to offer

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Speaker 8: them the best of the combined organizations and age.

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Speaker 13: I believe in the second quarters there was a net

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Speaker 13: money and flow about one point eight or so billion

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Speaker 13: US dollars in Asia. Do you see a similar sort

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Speaker 13: of trajectory in the third quarters.

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Speaker 8: Yeah, we see positive trends across the globe in each region.

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Speaker 13: What about here in China? What does the sentiment feel like,

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Speaker 13: not only here, but like globally, the perception of China

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Speaker 13: and Chinese assets.

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Speaker 8: Well, look in general in the globe, you know, we

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Speaker 8: are going through very challenging times in terms of macroeconomic

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Speaker 8: In terms of the macroeconomic picture, of course, the geopolitical

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Speaker 8: tensions are not helping at this stage, you know, but

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Speaker 8: I do believe that many investors still sees the long

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Speaker 8: term potential of China.

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Speaker 2: That's ubs CEO Sergia or Madi speaking exclusively with Bloomberg's

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Speaker 2: John lu in Beijing. Congress is heading into a make

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Speaker 2: or break week for avoiding a government shutdown. We are

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Speaker 2: joined now by Dennis Gardman, University of Akron Endowment Chairman

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Speaker 2: and former publisher of the Gartman Letter, Dennis, always a

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Speaker 2: pleasure to have. You want to take a broader look

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Speaker 2: at the markets as we start this trading week, But

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Speaker 2: there are so many factors impacting the markets, especially now,

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Speaker 2: not the least of which a possible government shutdown. Is

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Speaker 2: that a factor for you too?

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Speaker 14: Yes, it is a factor, and it should be a

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Speaker 14: factor for everybody. I hope that there are some resolution

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Speaker 14: to this before the week is out, that we actually

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Speaker 14: keep the government intact, but the markets right now seem

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Speaker 14: to think that that's not going to happen, that we're

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Speaker 14: going to continue to see dissension within the troops in Washington, DC,

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Speaker 14: and that there will be a government shutdown even if

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Speaker 14: we'd get one. I doubt that it lasts very long.

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Speaker 14: But right now the market wants to say it's deleterious

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Speaker 14: to share prices, and that's why we were having a

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Speaker 14: difficulty this morning. We had a little bit of a

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Speaker 14: rally in the futures overnight, but that gave up very quickly,

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Speaker 14: and we're making new lows as we speak. So it's disconcerting,

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Speaker 14: to say the very least. You also have the continued

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Speaker 14: UAW strikes that seem to be widening, not lessening, And

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Speaker 14: the only good thing is that the writer's strikes seems

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Speaker 14: to be making some progress. But strikes and government shutdowns

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Speaker 14: are never good for stock prices.

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Speaker 2: Now, you have been bearished for months now, and just

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Speaker 2: for a few days last week you were modestly bullish.

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Speaker 2: You were sort of dipping your toe in that water

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Speaker 2: on stocks. Has this kind of ruined that for you?

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Speaker 2: Are you bearish again?

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Speaker 14: Yes, it has ruined it for me. The only I

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Speaker 14: trade my own account, and right now I have a

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Speaker 14: very large position in less than two year notes, which

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Speaker 14: I'm comfortable with at seventy three years old income. It

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Speaker 14: seems to be more important to me then speculative trades.

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Speaker 14: But I'm short about eight percent of my portfolio at

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Speaker 14: this point, have been for a while, and as we

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Speaker 14: make new lows, my propensity is to add to that trade.

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Speaker 14: I'm short stocks and long a little bit of gold,

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Speaker 14: and I'm reasonably comfortable with usosition. But it scared me

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Speaker 14: being barish for a while. That we had a rally

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Speaker 14: two weeks ago, but it seemed to fail very quickly,

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Speaker 14: and the problem with the market was that the rallies

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Speaker 14: were on the very light volume. The brakes were on

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Speaker 14: heavier volume and we failed to make new highs. And

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Speaker 14: at the same time we had the CNN Fear and

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Speaker 14: Greed Index, which had gotten to eighty five, was beginning

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Speaker 14: to turn lower, and that's always a definitive signal that

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Speaker 14: Marcus want to go lower. So for about an hour

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Speaker 14: and a half, I got a little bit concerned. For

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Speaker 14: months and months, I've been very barish, and I continue

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Speaker 14: to be all right.

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Speaker 2: Then, oil, though, has rallied in recent weeks, and it

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Speaker 2: continues this morning, if not modestly, three tens seven percent

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Speaker 2: for NINEX crewede almost a half percent for Brent crude

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Speaker 2: as we speak for futures. Does that help support what

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Speaker 2: had been a modestly bullish.

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Speaker 14: Position for you, Well, the thing to watching the crude

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Speaker 14: oil market is the fact that the backwardation the inversion

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Speaker 14: continues to widen. And as long as the market continues

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Speaker 14: to be inverted, as long as the front months gain

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Speaker 14: on the back months on down days and gain on

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Speaker 14: the back months on updates, you have to err upon

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Speaker 14: the side of being bullish of crude oil. Ninety five

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Speaker 14: dollars WTI seems to be an extremely high price, but

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Speaker 14: it has surprised me the ability for crude to continue

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Speaker 14: to be inverted in the term structure, and it wants

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Speaker 14: to go higher and higher. For crude oil are always

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Speaker 14: deleterious to share prices generally, so it higher crude oil

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Speaker 14: prices tend to be an added various circumstance, so it

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Speaker 14: adds to my overt variousness and stock prices at this point.

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Speaker 2: Now we've been talking about inflation, We've been talking about

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Speaker 2: the oil prices, We've been talking about the strikes and

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Speaker 2: the possible government shutdown. There are so many X factors.

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Speaker 2: Where's the FED when it comes to driving these stock prices?

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Speaker 14: The set has been behind the eight ball for quite

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Speaker 14: a period of time. They were laid in understanding that

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Speaker 14: inflation was a problem, calling it transitory when it wasn't

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Speaker 14: really going to be transitory. And the SET is going

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Speaker 14: to continue to be I think detrimental to share prices.

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Speaker 14: It's going to continue to hold a tight monetary policy

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Speaker 14: for a much longer period of time than people want

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Speaker 14: to anticipate. It's going to be at least late into

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Speaker 14: twenty twenty four, maybe into twenty twenty five before the

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Speaker 14: SAD begins. The process of allowing the overnight Fed funds

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Speaker 14: rate to decline. So you have to prepare yourself for

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Speaker 14: an inverted you O curve for a long period of

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Speaker 14: time going forward. Not higher prices as far as or

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Speaker 14: not hired levels of interest rates, but high levels of

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Speaker 14: interest rates for a long period of time. So it's

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Speaker 14: high for longer and not higher for longer.

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Speaker 2: Ah, got it. That is a subtle difference, but a

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Speaker 2: significant one. Dennis, Thank you so much for taking the

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Speaker 2: time with us.

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Speaker 14: Amy always a pleasure, thank you, and an honor to

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Speaker 14: be on in the morning.

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Speaker 2: Dennis Gartman, the University of Akron and Dowman Chairman and

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Speaker 2: former publisher of The Gartman Letter. You are listening to

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Speaker 2: Bloomberg Daybreak today, your morning brief on the stories making

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Speaker 2: news from Wall Street to Washington and beyond.

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