WEBVTT - Bloomberg Daybreak: September 13, 2022 - Hour 1 (Radio) 0:00:03.400 --> 0:00:06.680 Live from the Bloomberg Interact at Brooker Studios. Is Bloomberg 0:00:06.760 --> 0:00:10.560 day Break for Tuesday, September two Coming up this hour, 0:00:11.039 --> 0:00:14.480 Wall Street prepares for the latest reading on inflation. Coleman 0:00:14.520 --> 0:00:17.480 Sacks begins its biggest round of job cuts since the pandemic. 0:00:17.760 --> 0:00:21.759 The Justice Department ramps up its investigation into the election, 0:00:21.920 --> 0:00:24.279 and Ukraine might be turning the corner in the war 0:00:24.320 --> 0:00:27.320 with Russia. We're learning more about the mother accused of 0:00:27.360 --> 0:00:30.600 drowning her children at Coney Island Beach. Plus, Senator Graham 0:00:30.680 --> 0:00:34.920 plans to introduce national abortion restrictions on Michael Barr. More ahead, 0:00:35.560 --> 0:00:37.800 I'm Don Stage toward swards, the Mets Walk of the Cuve. 0:00:37.880 --> 0:00:40.600 The Yankees visit the Red Sox Tonight Monday Night Football 0:00:40.680 --> 0:00:46.960 Seattle Top, Denver. That's all s. Tradyhead on Bloomberg Daybreak 0:00:47.280 --> 0:00:51.600 on Bloomberg. He Live in Free on New York Bloomberg one, Washington, 0:00:51.720 --> 0:00:55.320 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.400 --> 0:00:59.640 sixties and Francisco Syrius x M one nineteen and around 0:00:59.640 --> 0:01:02.400 the world Old on Bloomberg Radio dot Com and via 0:01:02.440 --> 0:01:09.360 the Bloomberg Business App. Good Morning, I'm Nathan Hagar and 0:01:09.480 --> 0:01:12.400 I'm Karen Moscow. US DOT Index futures on the rise 0:01:12.560 --> 0:01:14.319 this morning. We're coming up to five o one on 0:01:14.360 --> 0:01:16.600 Wall Street, and we checked the markets every fifteen minutes 0:01:16.640 --> 0:01:20.480 throughout the trading day. On Bloomberg, SNP futures up sixteen 0:01:20.480 --> 0:01:23.680 points down, futures of a hundred seventeen and nasday futures 0:01:23.720 --> 0:01:26.880 up forty six. The tenure treasury up ten thirty seconds. 0:01:26.880 --> 0:01:29.600 You have three point three one per cent, Nathan Karen 0:01:29.680 --> 0:01:32.960 for markets today it is all about inflation. We get 0:01:32.959 --> 0:01:36.279 the latest read on US consumer prices at eight thirty am. 0:01:36.360 --> 0:01:40.039 Wall Street Time forecast call for inflation to ease, but 0:01:40.120 --> 0:01:43.080 Crawl Institute chief economist Megan Green says there is a 0:01:43.160 --> 0:01:45.840 risk prices go in the other direction. Well, I think 0:01:45.840 --> 0:01:49.800 we'll see headline inflation coming down thanks to lower gas crisis, 0:01:49.800 --> 0:01:52.160 but in terms of core inflation, we might see a 0:01:52.240 --> 0:01:54.800 take up very moderately. I actually think the risks are 0:01:54.840 --> 0:01:57.240 on the downside. There's a possibility it could fall, but 0:01:57.320 --> 0:02:00.400 generally I think it will take up very moderately, and 0:02:00.480 --> 0:02:03.640 that's good news that it's increasing at a slower rate. 0:02:03.760 --> 0:02:05.560 But I don't think that the fig can breathe a 0:02:05.640 --> 0:02:08.839 sigh of relief just yet. Megan Green at kral says 0:02:08.880 --> 0:02:11.680 an energy crunch could push prices higher in the coming months. 0:02:11.760 --> 0:02:14.800 Economist surveyed by Bloomberg expect inflation for August to come 0:02:14.840 --> 0:02:18.160 in an annual rate of eight point one. I headed 0:02:18.160 --> 0:02:20.600 that a report Nathan the mood and equity markets is 0:02:20.760 --> 0:02:23.960 risk on Stalks in the Asia Pacific climbed over night 0:02:23.960 --> 0:02:27.799 and Bloomberg. Juliette Sally joins us with the recap from Sydney, Australia. 0:02:27.840 --> 0:02:31.120 Good morning, Juliette, Good morning, Karen. Text stalks led the games, 0:02:31.120 --> 0:02:34.480 with Apple suppliers rallying amid strong preorder data for the 0:02:34.560 --> 0:02:37.240 latest iPhones South Korea has cost me rose more than 0:02:37.280 --> 0:02:39.919 two and a half percent as investors played catch up 0:02:39.960 --> 0:02:42.960 after Monday's holiday. If You'll show you one weekend. Despite 0:02:43.000 --> 0:02:46.520 yet another strong fixed from the PBOC four in a row, 0:02:46.960 --> 0:02:49.360 the bias was below two hundred PIPSLO for the first 0:02:49.360 --> 0:02:52.639 time in a week. M Life strategist highlighting this suggests 0:02:52.639 --> 0:02:56.200 that PBOC could be easing off slightly in its battering 0:02:56.280 --> 0:03:01.320 of you one bearish bits in Sydney. Juliette Sally Bloomberg Daybreak, Right, Juliet, 0:03:01.360 --> 0:03:03.360 thanks back here in the US. Couple of corporate names 0:03:03.360 --> 0:03:06.000 we're watching this morning. Shares of Peloton are down more 0:03:06.000 --> 0:03:08.840 than two percent in early trading. That's afterwards chairman and 0:03:08.880 --> 0:03:11.880 co founder John Folly is stepping down from the company. 0:03:12.000 --> 0:03:15.680 His resignation takes effect on Monday. Well, on the flip side, Nathan, 0:03:15.720 --> 0:03:18.679 we're seeing shares of Oracle Game. They're up almost two 0:03:18.720 --> 0:03:21.720 percent after earnings are in line with estimates. Sales for 0:03:21.800 --> 0:03:24.600 Oracle jumped eight percent in the recent quarter thanks to 0:03:24.840 --> 0:03:28.400 strength and cloud computing. Elsewhere on Wall Street, job cuts 0:03:28.400 --> 0:03:31.040 are in focus this morning. Goldman Sachs is going ahead 0:03:31.040 --> 0:03:33.160 with its biggest round of cutback since the start of 0:03:33.160 --> 0:03:36.240 the pandemic. Sources say the bank plans to eliminate several 0:03:36.320 --> 0:03:39.960 hundred roles starting this month. Bloomberg's Valerie Titel says the 0:03:39.960 --> 0:03:42.800 cuts will be based on performance. They usually have an 0:03:42.800 --> 0:03:45.440 annual calling cycle, but I think what's notable about this 0:03:45.480 --> 0:03:49.320 one is that they are resuming normal activity after the pandemic. 0:03:49.720 --> 0:03:53.320 This comes after some pretty steep declines and investment banking activities, 0:03:53.520 --> 0:03:57.400 notably I P O S and junk debt issuance, creating, 0:03:57.440 --> 0:04:00.600 you know, quite some conditions for some significant layoffs to 0:04:00.680 --> 0:04:04.200 begin post pandemic. Bloomberg's Valerie tits Hele says Goldman will 0:04:04.280 --> 0:04:06.600 use the cuts to weed out low performers. The move 0:04:06.640 --> 0:04:09.680 could signal a chill setting in across the finance industry 0:04:09.720 --> 0:04:13.720 as revenue slumps from record highs. Let's turn to politics now, Nathan. 0:04:13.720 --> 0:04:16.960 We're an investigation into the election is heating up. The 0:04:17.040 --> 0:04:19.560 Justice Department is ramping up its probe into the plot 0:04:19.600 --> 0:04:24.040 to overturn the presidential election, issuing dozens of subpoenas targeting 0:04:24.080 --> 0:04:27.960 campaign operatives and allies of former President Trump. Bloomberg's Amy 0:04:28.000 --> 0:04:31.839 Morris has details from our newsroom in Washington about forty 0:04:31.880 --> 0:04:34.479 new subpoenas were issued, the focus appearing to be the 0:04:34.520 --> 0:04:37.560 alleged scheme to have fake or alternate electors come to 0:04:37.600 --> 0:04:40.719 Washington to delay the certification of Joe Biden as president. 0:04:41.120 --> 0:04:44.239 The New York Times reports the Justice Department also seized 0:04:44.279 --> 0:04:48.360 the phones from Trump's lawyer Boris Epstein and campaign strategist 0:04:48.400 --> 0:04:50.719 Mike Roman. At the time says some of the new 0:04:50.800 --> 0:04:55.039 subpoenas focus on activities of the Save America political action Committee, 0:04:55.160 --> 0:04:58.040 which is the main political fundraising arm for Trump since 0:04:58.040 --> 0:05:02.239 he left office in Washington. Maybe more as Bloomberg Day Break. Okay, Amy, 0:05:02.240 --> 0:05:05.000 thank you, Let's turn our attention to Ukraine now. The 0:05:05.040 --> 0:05:07.680 country is asking for even more weapons to build on 0:05:07.720 --> 0:05:12.080 its recent successes in retaking territory from Russia. President vladimir's 0:05:12.120 --> 0:05:15.080 Lensky says forces have recaptured more than twenty three hundred 0:05:15.120 --> 0:05:18.880 square miles this month. Former US Defense Secretary Leon Panetta 0:05:18.920 --> 0:05:21.320 says this could market turning point in the war. I 0:05:21.360 --> 0:05:26.239 would say it's both pivotal and dangerous. It's pivotal because 0:05:27.160 --> 0:05:32.880 to have Ukraine conducting a strong offensive that's working is 0:05:33.240 --> 0:05:37.840 incredibly important to putting real pressure on both Putin and 0:05:37.880 --> 0:05:42.000 the Russians. It's dangerous because Putin, if he's boxed in, 0:05:42.440 --> 0:05:46.400 obviously will have to strike that. Former Defense Secretary Leon 0:05:46.440 --> 0:05:49.559 Panetta spoke with David Weston on Bloomberg's Balance of Power. 0:05:49.640 --> 0:05:52.640 Catch the program weekdays at noon Eastern on Bloomberg Radio 0:05:52.640 --> 0:05:55.800 and Television, plus the Balance of Power podcast on Apple, 0:05:55.880 --> 0:05:59.280 Spotify and anywhere else you get your podcasts. And finally, 0:05:59.360 --> 0:06:02.920 Nathan to the Okay, where ceremony is remembering Queen Elizabeth 0:06:02.960 --> 0:06:06.640 continue this week Morners in Scotland are paying respect to 0:06:06.640 --> 0:06:09.720 the Queen this morning and here with more is Bloombergley 0:06:09.760 --> 0:06:14.880 and Garran's. Thousands of people have been queuing through the 0:06:15.000 --> 0:06:17.920 night to see the queen's coffin at St Charles Cathedral 0:06:18.000 --> 0:06:21.520 in Edinburgh. The Queen's coffin will rest in the cathedral 0:06:21.640 --> 0:06:25.839 until about five pm local time today before beginning the 0:06:25.920 --> 0:06:28.359 journey back to London. It will then be taken to 0:06:28.400 --> 0:06:32.400 Buckingham Palace and then to Westminster Hall, where the Queen 0:06:32.440 --> 0:06:35.760 will lie in state for four days. A National Minutes 0:06:35.839 --> 0:06:38.839 silence will be held at eight pm on Sunday, the 0:06:38.960 --> 0:06:44.520 night before the Queen's funeral in Westminster Abbey. And Bloombergley 0:06:44.560 --> 0:06:47.600 and Garan's reporting from London. We'll bring you live coverage 0:06:47.600 --> 0:06:50.479 to the Queen's funeral coming up Monday, right here on 0:06:50.520 --> 0:06:53.640 bloomberg Daybreak. All right, Karen, thank you. Let's look ahead 0:06:53.640 --> 0:06:55.760 to the market open now. Futures are moving higher. We 0:06:55.800 --> 0:06:58.880 have SMP futures up eighteen points now, futures up a 0:06:58.960 --> 0:07:02.000 hundred thirty five now. Stack futures are higher by fifty 0:07:02.040 --> 0:07:04.520 three points. The tenure treasury is up nine thirty seconds 0:07:04.560 --> 0:07:08.520 yield three point nimex crude on the rise by one 0:07:08.520 --> 0:07:10.760 and a quarter percent of a dollar nine eighty eight 0:07:10.760 --> 0:07:13.640 dollars eighty seven cents of barrel the euro one point 0:07:13.680 --> 0:07:16.960 one zero five five against the dollar. Local headlines and 0:07:16.960 --> 0:07:23.320 a check of sports. Just ahead. This is Bloomberg and 0:07:23.440 --> 0:07:25.600 it's now five oh seven on Wall Street, seventy one 0:07:25.760 --> 0:07:28.880 rainy degrees in Central Park early dealing with accidents all 0:07:28.920 --> 0:07:31.600 these wet roads southbound west side highways. Got a crash 0:07:31.640 --> 0:07:35.200 on more coming up in traffic. First Michael Barr with 0:07:35.240 --> 0:07:36.880 what else is going on in New York and around 0:07:36.920 --> 0:07:39.320 the world. Good morning, Michael, Good morning, Nathan Attorney in 0:07:39.360 --> 0:07:42.000 A warning is just expired for people in the Breezy 0:07:42.000 --> 0:07:45.240 Point area. That's New York's Queen's County in King's County. 0:07:45.520 --> 0:07:48.360 It was issued until five am. So far, no early 0:07:48.400 --> 0:07:51.239 word yet of any damage. Keep in mind though flood 0:07:51.240 --> 0:07:54.000 warnings are in effect for a lot of the New 0:07:54.120 --> 0:07:57.160 York area. The mother of three children who were found 0:07:57.200 --> 0:08:00.560 dead at Coney Island Beach was questioned by the YPD 0:08:00.720 --> 0:08:03.160 for about six hours before she was taken to a 0:08:03.240 --> 0:08:07.560 hospital for a psychological evaluation. Yesterday, police found the bodies 0:08:07.600 --> 0:08:10.640 of seventy year old Zachary Murdy, four year old Liliana, 0:08:11.040 --> 0:08:14.880 and three month old Oliver Bunderev in yp D. Chief 0:08:14.920 --> 0:08:17.680 of Department Kenneth Corey says the thirty year old mother 0:08:17.960 --> 0:08:20.120 was found two miles down the board of walk from 0:08:20.120 --> 0:08:22.720 her home in what appeared to be a catatonic state. 0:08:23.280 --> 0:08:25.880 She was wet, she was barefoot, um, and she was 0:08:25.920 --> 0:08:29.400 not um communicative to the officers. The community was left 0:08:29.400 --> 0:08:32.560 in shock over the depths of the children into somebody, 0:08:32.760 --> 0:08:38.720 take them to somebody, police say. Family members claimed the 0:08:38.760 --> 0:08:41.480 mother confessed that she drowned her children, but she has 0:08:41.600 --> 0:08:46.040 not said anything directly to investigators. Republican Senator Lindsey Graham 0:08:46.080 --> 0:08:50.000 plans to introduce legislation to restrict abortion nationally. The South 0:08:50.000 --> 0:08:53.000 Carolina senator is scheduled an announcement at the capital for 0:08:53.120 --> 0:08:57.760 later today. Graham's action raises the profile of abortion rights 0:08:57.800 --> 0:09:01.520 as an issue for the midterm elections. Negotiations between the 0:09:01.600 --> 0:09:06.320 unions representing railroad workers and management have stalled. This means 0:09:06.320 --> 0:09:09.640 some amtrack riders could experience delays and could cause the 0:09:09.679 --> 0:09:13.080 rebounding economy to lose momentum. The deadline for a deal 0:09:13.200 --> 0:09:16.880 is just after midnight Frinday. And last night's Emmys on NBC, 0:09:17.280 --> 0:09:21.079 HBO took home the Top award for the sixth time 0:09:21.160 --> 0:09:24.560 in eight years, thanks to succession for Top Drama and 0:09:24.720 --> 0:09:28.880 White Lotus for Best Limited Series. Apple's Ted Lasso repeated 0:09:28.960 --> 0:09:32.680 as Best Comedy. Kawang Dong Yuk made history as the 0:09:32.720 --> 0:09:35.440 fourth South Korean director to win for Best Drama for 0:09:35.559 --> 0:09:39.360 Squid Game since Kid Game got footing nomination at the Emmy's. 0:09:39.960 --> 0:09:42.880 People keep telling me like I made a history, But 0:09:42.960 --> 0:09:45.800 I don't think I made a history by myself, because 0:09:45.800 --> 0:09:48.000 it was you who opened up the doors for Skid 0:09:48.040 --> 0:09:51.000 Game in Balios. Here tonight at the Emmys, Squid Games 0:09:51.160 --> 0:09:54.480 Lee Jung j One Outstanding Actor in a Drama. Global 0:09:54.480 --> 0:09:56.440 News twenty four hours a day on air and on 0:09:56.480 --> 0:10:00.000 Bloomberg Quick Take, powered by more than journalists and analyst 0:10:00.000 --> 0:10:03.760 for more than twenty countries. Michael Barron, This is Bloomberg, Nathan. 0:10:03.880 --> 0:10:10.640 Thanks Michael. Coming up to five ten on Wall Street 0:10:10.640 --> 0:10:13.560 time for the Bloomberg Sports Update. Good morning, John, Station morning. 0:10:13.640 --> 0:10:15.720 Nathan mets back home from a road trip that saw 0:10:15.760 --> 0:10:17.719 them win two or three in Pittsburgh two or three. 0:10:17.720 --> 0:10:20.319 In Miami, now facing another subpar team, the Cubs, but 0:10:20.440 --> 0:10:23.360 Chicago got to Chris Bassett pair of early home runs. 0:10:23.360 --> 0:10:25.720 Bassett gone on the fourth inning having allowed five runs. 0:10:25.760 --> 0:10:28.400 The Cubs won five to two, but Atlanta lost in 0:10:28.440 --> 0:10:30.800 San Francisco three to two. Brads third loss in a row. 0:10:30.880 --> 0:10:33.880 Mets remain game and a half ahead Yankees and Red Sox. 0:10:33.880 --> 0:10:36.000 Tonight in Boston, Garrett Cole on the mount, the two 0:10:36.000 --> 0:10:39.160 teams behind the Yanks met Toronto on a bow Buchette 0:10:39.160 --> 0:10:41.160 Ain't Sennying homer top Tampa Bay three to two, so 0:10:41.200 --> 0:10:43.480 the Blue Jays now in second place, five and a 0:10:43.480 --> 0:10:46.360 half games behind the Yanks and the race trail by six. 0:10:46.440 --> 0:10:49.640 The first NFL Sunday saw three teams Cleveland, Pittsburgh, New 0:10:49.760 --> 0:10:52.680 Orleans win games with last second field goals of over 0:10:52.760 --> 0:10:55.600 fifty yards. Last night in Seattle, Denver tried to win 0:10:56.040 --> 0:10:58.439 with a sixty four yard field goal it missed. In 0:10:58.480 --> 0:11:02.080 the Seahawks one seventeen sixteen, Broncos had time to try 0:11:02.160 --> 0:11:04.120 and get a first down move closer, but elected to 0:11:04.120 --> 0:11:07.160 try the long kicks of Russell Wilson loses in his 0:11:07.280 --> 0:11:09.800 return to Seattle in his first game with Denver. The 0:11:09.880 --> 0:11:13.440 Jets Sunday bring their thirteen game month of September, losing 0:11:13.480 --> 0:11:16.240 with Drake that Cleveland Jets offense struggled in the loss 0:11:16.280 --> 0:11:19.760 of Baltimore, but took rob Sala feels it will improve 0:11:20.000 --> 0:11:22.480 those little errors on the offense. Was was having the 0:11:22.520 --> 0:11:26.280 first half stop happening. It's going to be explosive and 0:11:26.320 --> 0:11:28.000 none it carries out in the second half. You're you're 0:11:28.040 --> 0:11:30.079 just gonna feel it. Uh and and in a way 0:11:30.120 --> 0:11:32.640 it does just click where you're just stacking up there 0:11:32.679 --> 0:11:35.800 after day after day and um and it's really really 0:11:35.800 --> 0:11:38.720 cool when it does happen because it just absolutely pops 0:11:38.720 --> 0:11:40.679 off the tape. Had Sunday facing the Brown's team that 0:11:40.720 --> 0:11:42.400 just wanted season open for the first time. It's two 0:11:42.480 --> 0:11:45.640 thousand four. Giants got their first in two thousand sixteen. 0:11:45.679 --> 0:11:49.000 This Sunday, they host Carolina. John stash were Bloomberg Sports, 0:11:49.440 --> 0:11:52.240 Thank you, John SMP futures right now up seventeen points. 0:11:52.240 --> 0:11:55.000 South futures of A hundred twenty three futures are higher 0:11:55.040 --> 0:11:58.880 by forty seven points. Ahead of August cp I, we 0:11:59.040 --> 0:12:02.839 preview the latest read on inflation next with Bloomberg's Michael McKee, 0:12:02.840 --> 0:12:09.320 This is Bloomberg Bloomberg eleven three oh weather. Showers and 0:12:09.360 --> 0:12:12.040 storms should end by right around lunchtime. We'll get up 0:12:12.040 --> 0:12:15.360 to the low eighties today, sunshine, low eighties tomorrow, sunny Thursday, 0:12:15.400 --> 0:12:18.160 but cooler with a high your seventy five degrees right now, 0:12:18.360 --> 0:12:24.199 some showers seventy one degrees. Markets, headlines and breaking news 0:12:24.280 --> 0:12:26.880 twenty four hours a day at Bloomberg dot com. The 0:12:26.960 --> 0:12:30.439 Bloomberg Business at end at Bloomberg Quick Tape is a 0:12:30.480 --> 0:12:39.480 Bloomberg Business Flash and I'm Karen Moscow. And US dot 0:12:39.520 --> 0:12:43.160 index futures are advancing ahead of key inflation data. Treasury 0:12:43.240 --> 0:12:45.520 yield to dipping in the dollar extending at a climb. 0:12:45.640 --> 0:12:49.240 Contracts on the SNP five and nausdack on rising this 0:12:49.440 --> 0:12:52.840 after the SNP completed its best four days search since June, 0:12:52.880 --> 0:12:57.160 following robust reordered data for Apple's iPhone fourteen pro Max. 0:12:57.400 --> 0:12:59.640 We check the markets every fifteen minutes throughout the trading 0:12:59.720 --> 0:13:02.199 day on Bloomberg s and P Future is up sixteen 0:13:02.200 --> 0:13:05.040 points right now, down futures up a hundred twenty NASDAG 0:13:05.120 --> 0:13:07.839 features up forty five. The decks in Germany's up a 0:13:07.880 --> 0:13:10.920 tenth of upper set ten, Your treasury up nine thirty seconds. 0:13:10.960 --> 0:13:13.000 You have three point three two percent. The yield on 0:13:13.080 --> 0:13:16.080 the two year three point five two percent. Ni Max 0:13:16.160 --> 0:13:18.480 Screwed oil is up one percent or eighty three cents 0:13:18.480 --> 0:13:21.120 at eighty eight dollars sixty one cents a barrel. Comics 0:13:21.160 --> 0:13:23.439 called down a quarter percent or four dollars forty cents 0:13:23.440 --> 0:13:26.680 is seventeen thirty six twenty announced the euro one point 0:13:27.080 --> 0:13:29.520 five zero against the dollar. British found one point one 0:13:29.600 --> 0:13:32.200 seven oh seven the end at one forty two points 0:13:32.200 --> 0:13:34.559 to eight, and Bitcoin and lower down a third of 0:13:34.679 --> 0:13:38.360 u percent at twenty two thousand, three hundred and thirty dollars, 0:13:38.440 --> 0:13:40.559 and a consumer price index is at an e thirty 0:13:40.600 --> 0:13:43.480 Wall Street time as a Bloomberg business flash. Now here's 0:13:43.520 --> 0:13:46.360 Michael Barr with more on what's going on around the world. Uncle, 0:13:46.400 --> 0:13:49.520 good morning, Good morning Karen. The coffin of Queen Elizabeth 0:13:49.559 --> 0:13:53.400 the Second will head from Edinburgh, Scotland to London. The 0:13:53.480 --> 0:13:56.760 Queen will lion state in Westminster Hall for four days. 0:13:56.800 --> 0:14:00.120 In London. More than thirty people associated with former as 0:14:00.120 --> 0:14:03.440 a been Trump and efforts to influence the election results. 0:14:03.679 --> 0:14:07.719 Have receive federal grand jury subpoenas. Meanwhile, Trump and the 0:14:07.760 --> 0:14:11.160 Department of Justice agreed that Judge Raymond Derry would be 0:14:11.200 --> 0:14:14.400 a suitable choice for an outside special master to review 0:14:14.440 --> 0:14:17.440 the documents taken from Trump's tomorrow law go Home as 0:14:17.480 --> 0:14:20.440 part of an investigation into his handling of government records. 0:14:20.800 --> 0:14:24.720 Monday Night Football, the Seahawks upset the Broncos seventeen sixteen 0:14:25.040 --> 0:14:27.280 in baseball, the mental loss to the Cubs five to 0:14:27.560 --> 0:14:30.560 the Giants. One Global News twenty four hours a day 0:14:30.760 --> 0:14:34.200 on air and on Bloomberg Quicktake, powered by more than 0:14:34.280 --> 0:14:36.720 twenty seven under journalist and analysts more than a hundred 0:14:36.760 --> 0:14:40.360 twenty countries. Michael bar this is Bloomberg, Nathan, Michael. Thanks, 0:14:40.360 --> 0:14:43.040 It's five nineteen on Wall Street Live from the Bloomberg 0:14:43.040 --> 0:14:46.520 Interactive Broker Studios. This is Bloomberg Daybreak and for markets 0:14:46.560 --> 0:14:49.600 this morning, it is all about inflation. We are just 0:14:49.720 --> 0:14:52.760 about three hours or so away from the release of 0:14:52.760 --> 0:14:56.080 the August Consumer Price Index. Read that is going to 0:14:56.160 --> 0:14:59.160 be very important. We assume for the Federal Reserve, it's 0:14:59.160 --> 0:15:02.400 fight against inflation. Joining us now ahead of the CPI print. 0:15:02.480 --> 0:15:07.200 Michael McKee, Bloomberg's economics and policy correspondent from Bloomberg Radio 0:15:07.200 --> 0:15:09.320 and Television, Mike, Good to have you with us in 0:15:09.400 --> 0:15:12.880 studio this morning. You look at the ECO screen, ECO 0:15:13.000 --> 0:15:16.720 go on the Bloomberg terminal. Looks like we're expecting a 0:15:16.880 --> 0:15:21.920 drop in overall inflation, but a slight uptick in the 0:15:22.000 --> 0:15:25.960 core reading. What the FED really cares about? Why is that? Well, 0:15:25.960 --> 0:15:28.080 the car gives you a better picture of where inflation 0:15:28.120 --> 0:15:30.480 is going, because, of course the headline is influenced by 0:15:30.480 --> 0:15:34.440 commodity prices, particularly energy, which is the reason we're going 0:15:34.480 --> 0:15:38.440 to see drop today. Probably is because energy prices, particularly 0:15:38.440 --> 0:15:42.520 gasoline prices in the US fell significantly during the month 0:15:42.600 --> 0:15:45.560 of August seven point seven. So we should see a 0:15:45.680 --> 0:15:48.040 drop in the headline. But there are a number of 0:15:48.080 --> 0:15:52.480 categories in the core where there is still strength, including housing. 0:15:52.920 --> 0:15:57.080 The rental price cost that goes into CPI is likely 0:15:57.120 --> 0:16:00.960 to keep that boosted. Plus there is a base effect 0:16:01.240 --> 0:16:05.120 high inflation last year so at this time, so the 0:16:05.160 --> 0:16:08.600 Fed is probably going to look at this as progress 0:16:08.640 --> 0:16:13.080 but not nearly sufficient. Is there anything that I mean 0:16:13.160 --> 0:16:15.200 that there's isn't anything that the FED can do about 0:16:15.200 --> 0:16:18.080 base effects that's going to roll into the reading. We 0:16:18.120 --> 0:16:20.760 get today. What can the FED do at this point 0:16:20.840 --> 0:16:25.640 to get more of a handle on that core inflation. Well, 0:16:25.640 --> 0:16:28.600 it's interesting because a lot of people on Wall Street 0:16:28.640 --> 0:16:31.200 are saying, it's not what the Fed does in reaction 0:16:31.240 --> 0:16:34.040 to this CPI report, but what the markets do. If 0:16:34.080 --> 0:16:36.360 the markets think the Fed is going to back off 0:16:36.960 --> 0:16:42.520 and react positively to dropping the headline cp I, the 0:16:42.560 --> 0:16:44.720 feeling is that might be a mistake because the FED 0:16:44.800 --> 0:16:48.280 seems committed to seventy basis points at the next meeting, 0:16:48.960 --> 0:16:52.760 and their view is going to be not you know, necessary, 0:16:52.760 --> 0:16:55.400 but not sufficient in terms of the drop in prices. 0:16:55.440 --> 0:16:59.520 They're gonna want to see continued progress and significant progress, 0:16:59.560 --> 0:17:02.240 particularly in the core. As to how they can bring 0:17:02.280 --> 0:17:06.040 that about, basically by keeping rates high enough that demands 0:17:06.080 --> 0:17:09.080 slows some and then waiting. There isn't much you can 0:17:09.119 --> 0:17:13.720 do about the speed with which housing goes into the CPI. 0:17:13.880 --> 0:17:16.920 It could be a year before we see the current declines, 0:17:17.000 --> 0:17:21.119 you know, prices and rents start to impact the CPI report. 0:17:21.480 --> 0:17:24.200 So the Fed's gotta keep the pedal to the metal 0:17:24.280 --> 0:17:29.240 and uh, keep their eyes on inflation and not celebrate 0:17:29.280 --> 0:17:33.200 too much. You talk to Fed speakers, central bankers, regularly, Mike. 0:17:33.240 --> 0:17:35.480 Have they given you any reason to think that if 0:17:35.520 --> 0:17:39.080 we did see a drop in the overall inflation print 0:17:39.119 --> 0:17:42.399 that it would give them reason to let up on 0:17:42.440 --> 0:17:46.919 the gas. Yeah. They they're not saying that they're basically 0:17:46.960 --> 0:17:50.560 committed to seventy five. The feeling at the Fed seems 0:17:50.600 --> 0:17:53.919 to have shifted over the last couple of weeks to UH, 0:17:54.080 --> 0:17:57.080 from reacting to the data on a month by month 0:17:57.160 --> 0:18:01.080 basis to deciding we're going to get to a slightly 0:18:01.119 --> 0:18:05.800 restrictive rate just some above neutral, which different members defined 0:18:05.880 --> 0:18:09.639 different ways. Some say that's four, some say it's just under. 0:18:10.040 --> 0:18:12.400 But the feeling is they're gonna get there, and then 0:18:12.440 --> 0:18:14.920 they're gonna turn data dependent. They're gonna want to have 0:18:14.960 --> 0:18:22.000 the economy UH contracting somewhat, maybe not shrinking, but growing 0:18:22.000 --> 0:18:24.880 at a much lower pace, and that should bring down 0:18:24.920 --> 0:18:27.239 some of the other price pressures out there. Then they 0:18:27.280 --> 0:18:29.600 leave it there for a while until they're convinced that 0:18:29.680 --> 0:18:34.440 inflation is definitely going down towards their two percent target. There, 0:18:34.560 --> 0:18:38.040 last minute here, Mike, Given all the factors that go 0:18:38.080 --> 0:18:41.159 into course cp I, what are you seeing, what are 0:18:41.160 --> 0:18:45.520 you looking for as the main drivers of core inflation 0:18:45.640 --> 0:18:48.520 and the reading we could get later this morning. Housing 0:18:48.600 --> 0:18:51.400 is going to be the main driver. It's of the CPI, 0:18:51.480 --> 0:18:53.440 so it has a huge weight, which is one of 0:18:53.480 --> 0:18:57.119 the differences between that and the feds pc index that 0:18:57.160 --> 0:18:59.600 they tend to watch has a lower weight out housing, 0:19:00.080 --> 0:19:04.080 but also new cars prices are still expected to be rising, 0:19:04.440 --> 0:19:06.520 and then we'll have to see if there's some categories 0:19:06.560 --> 0:19:10.720 where supply chains are still causing problems. That's hoping that's 0:19:10.720 --> 0:19:14.639 starting to normalize but hasn't so far, Yeah, or it 0:19:14.640 --> 0:19:17.760 cons back to that h T word. We we don't 0:19:17.800 --> 0:19:22.600 say anymore, right. Mike McKie are economics and policy correspondent 0:19:22.640 --> 0:19:25.679 for Bloomberg Radio and Television, helping us get ready for 0:19:25.880 --> 0:19:29.960 the all important August Consumer Price Index. The overall reading 0:19:30.000 --> 0:19:33.000 expected to drop four tenths percent, according to economist surveyed 0:19:33.000 --> 0:19:36.760 by Bloomberg, to an annual reading of eight point one percent, 0:19:36.880 --> 0:19:39.920 while the core that excludes food and energy is expected 0:19:40.000 --> 0:19:42.960 to rise just a bit, by two tenths of a 0:19:42.440 --> 0:19:47.240 percent to six point one year over year. Looking ahead 0:19:47.240 --> 0:19:50.360 to the market, open futures are showing a little bit 0:19:50.359 --> 0:19:52.440 of resilience. You've got us in p futures right now. 0:19:52.440 --> 0:19:54.840 Have fifteen points down, futures up A hundred fourteen and 0:19:54.920 --> 0:19:58.240 NASTAC futures are higher by forty two points tenure treasury 0:19:58.280 --> 0:20:02.600 up nine thirty seconds. The yield three point three. This 0:20:02.960 --> 0:20:09.440 is Bloomberg Bloomberg eleven three oh Whether any showers and 0:20:09.560 --> 0:20:11.480 storms should end by mid day today We'll get into 0:20:11.520 --> 0:20:15.920 the low eighties, sunshine low eighties tomorrow, sunny, mid seventies 0:20:16.200 --> 0:20:19.360 by Thursday. Right now seventy two degrees in Central Park. 0:20:21.960 --> 0:20:26.480 Broadcasting live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.600 --> 0:20:31.280 Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, 0:20:31.359 --> 0:20:34.639 Bloomberg one O six one to San Francisco, Bloomberg N 0:20:34.840 --> 0:20:38.080 sixteen to the Country Sirius XM SHDO one nineteen and 0:20:38.200 --> 0:20:41.520 around the globe the Bloomberg Business app and Bloomberg Radio 0:20:41.680 --> 0:20:50.960 dot Com. This is Bloomberg Daybreak. It's five thirty on 0:20:50.960 --> 0:20:54.240 Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. 0:20:54.320 --> 0:20:56.359 We're just about four hours away from the open of 0:20:56.440 --> 0:20:58.119 US trading. Let's get you up to date on the 0:20:58.160 --> 0:21:00.560 news you need to know at this shour you futures 0:21:00.600 --> 0:21:03.480 are higher ahead of the latest data on inflation. We 0:21:03.560 --> 0:21:06.000 get a reading on US consumer prices for August at 0:21:06.040 --> 0:21:09.639 eight thirty am. Wall Street Time forecast call for inflation 0:21:09.680 --> 0:21:12.040 to ease to an annual rate of eight point one 0:21:12.080 --> 0:21:15.960 per cent, and here with Moore is Bloomberg Economics correspondent 0:21:16.000 --> 0:21:20.280 Michael McKee. Falling energy prices likely held down headline inflation 0:21:20.320 --> 0:21:23.159 in August, but higher costs for housing and education or 0:21:23.200 --> 0:21:26.920 forecast to have pushed core inflation higher. Beneficials have all 0:21:26.920 --> 0:21:29.480 but said they're locked in on a three quarters percentage 0:21:29.480 --> 0:21:32.720 point increase for interest rates next week. Higher core rate 0:21:32.760 --> 0:21:35.320 won't affect their thinking, but it will serve as a 0:21:35.359 --> 0:21:39.199 reminder the fight against inflation is far from over. Michael McKee, 0:21:39.200 --> 0:21:41.920 Bloomberg Gay break all right, Mike, thanks. Global stocks are 0:21:41.920 --> 0:21:44.679 slightly higher ahead of that CPI report, stocks in Europe 0:21:44.680 --> 0:21:47.880 and Asia posting moderate gains. S ANDP futures are up 0:21:47.960 --> 0:21:51.960 sixteen points well elsewhere on Wall Street. Nathan job cuts 0:21:52.000 --> 0:21:54.840 are in focus this morning. Goldman Sachs is going ahead 0:21:54.840 --> 0:21:57.520 with its biggest round of cutback since the start of 0:21:57.560 --> 0:22:00.119 the pandemic. Sources tell us the bank plans to will 0:22:00.080 --> 0:22:04.200 eliminate several hundred roles starting this moth. Bloombery Sly big 0:22:04.280 --> 0:22:07.080 Well says the move could signal h hills setting in 0:22:07.119 --> 0:22:11.280 across the industry. The other investment banks they faced similar challenges. 0:22:11.320 --> 0:22:14.359 They're battling inflation. They have also seen a slump in 0:22:14.800 --> 0:22:18.560 dealmaking in investment banking, and we understand that a lot 0:22:18.560 --> 0:22:21.200 of the cuts with Goldman Sex were in that division. 0:22:21.480 --> 0:22:23.920 And so we can expect that this sets the tone 0:22:23.960 --> 0:22:26.280 a little bit for broader Wall Street and that week 0:22:26.359 --> 0:22:29.600 we might start see other banks following suit and Bloombery 0:22:29.640 --> 0:22:32.320 say big Well says the cursed Goldman will be used 0:22:32.320 --> 0:22:35.159