WEBVTT - Bloomberg Daybreak: September 7, 2022 - Hour 2 (Radio) 0:00:01.680 --> 0:00:05.000 Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:05.040 --> 0:00:08.840 day Break for Wednesday, September seven. Coming up this hour, 0:00:09.000 --> 0:00:13.119 Global stocks slump and the dollar strengthens as financial conditions tighten. 0:00:13.400 --> 0:00:16.360 UK Prime Minister List Trust starts filling her cabinet and 0:00:16.360 --> 0:00:19.800 takes her first questions from Parliament. Apple prepares to unveil 0:00:19.840 --> 0:00:24.120 its latest iPhone, and California braces for potential Blackhouse. Former 0:00:24.160 --> 0:00:27.360 White House strategy Steve Bennett was surrendered a face criminal 0:00:27.440 --> 0:00:30.120 churches in New York. The new guidance from the White 0:00:30.120 --> 0:00:34.280 House on COVID vaccines. I'm John Tucker. Those stories straight ahead, 0:00:34.640 --> 0:00:37.360 I'm John Stashow. In sports, the Mets lost in Pittsburgh. 0:00:37.360 --> 0:00:40.560 Co Co Golf and Nick Carrios both lost their quarterfinal 0:00:40.600 --> 0:00:45.000 matches last night at the US Open. That's all s 0:00:45.000 --> 0:00:48.720 train ahead on Bloomberg Daybreak on Bloomberg eleven three on 0:00:48.800 --> 0:00:53.199 New York, Bloomberg one, Washington, d C, Bloomberg one oh 0:00:53.280 --> 0:00:57.800 six one, Boston, Bloomberg nine sixties and Francisco Sirius x 0:00:57.960 --> 0:01:00.840 M one nine team and around the world down Bloomberg 0:01:00.920 --> 0:01:07.960 Radio dot Com and via The Bloomberg Business. Good Morning, 0:01:07.959 --> 0:01:11.320 I'm Nathan Hagar and I'm Karen Moscow. When US futures 0:01:11.319 --> 0:01:13.479 are higher. This morning, we are coming up to six 0:01:13.480 --> 0:01:15.360 show one on Wall Street, and we check the markets 0:01:15.400 --> 0:01:18.920 every fifteen minutes throughout the trading day. On Bloomberg. Right now, 0:01:19.000 --> 0:01:21.880 SNP futures are up about nine points down futures of 0:01:22.000 --> 0:01:25.319 forty six and NASDAG futures at forty one. The decks 0:01:25.319 --> 0:01:27.840 in Germany's down four tenths of upper cent, cat in 0:01:27.880 --> 0:01:29.720 Paris down a third of upper cent, and the foot 0:01:29.760 --> 0:01:32.840 Sea one hundred down six tenths of upper cent. Ten 0:01:32.920 --> 0:01:35.280 your treasury of twelve thirty seconds, you have three point 0:01:35.360 --> 0:01:37.800 three zero percent they yield on the two year three 0:01:37.840 --> 0:01:41.120 point four or five percent. Nine max Screwed oil is 0:01:41.200 --> 0:01:43.400 up half percent or forty one cents at eighty seven 0:01:43.440 --> 0:01:46.280 dollars twenty nine cents. Of barrel comes gold is up 0:01:46.319 --> 0:01:48.960 a quarter percent or four dollars thirty cents at seventeen 0:01:49.040 --> 0:01:53.160 seventeen twenty announced the euro point nine nine eight against 0:01:53.160 --> 0:01:55.480 the dollar. Nathan no, Karen stocks in. You're a bar 0:01:55.560 --> 0:01:58.840 falling is the US dollar continues it's strong run. The 0:01:58.840 --> 0:02:02.160 Bloomberg dollar spot dex hit another record overnight that is 0:02:02.240 --> 0:02:05.800 leading to tighter financial conditions weighing on risk assets around 0:02:05.840 --> 0:02:08.280 the world. Janet Movie is head of market analysis at 0:02:08.280 --> 0:02:11.799 Bruin Dolphin. There is just disinflationary impact from strong U 0:02:11.840 --> 0:02:15.480 West older there are other disinflationary impacts, for example lower 0:02:15.520 --> 0:02:18.960 Gesselin prices, So we do think that UH inflation is 0:02:19.080 --> 0:02:23.000 more likely to peak and slow will rapidly compared to 0:02:23.040 --> 0:02:25.880 the other ponies. Janet Movie with Bruin Dolphin says she 0:02:25.960 --> 0:02:28.400 still expects the FED to increase interest rates at this 0:02:28.440 --> 0:02:31.920 month's meeting. Meantime, Nathan May gets him inside from the Fed, 0:02:32.000 --> 0:02:34.200 but the release of its Beige Book today that comes 0:02:34.200 --> 0:02:36.600 at two pm Wall Street time, a day before we 0:02:36.680 --> 0:02:39.240 hear from FED chair j Powelly speaks at the Cato 0:02:39.320 --> 0:02:42.880 Institutes Monetary Conference tomorrow to an into Bloomberg Radio and 0:02:42.880 --> 0:02:45.600 Television for live coverage of US comments around nine a m. 0:02:45.639 --> 0:02:48.520 Eastern Now turning overseas now Karen. Markets in Europe are 0:02:48.560 --> 0:02:50.400 feeling the pain of the stronger dollar. It comes at 0:02:50.400 --> 0:02:53.560 a precarious time for the UK. New Prime Minister Liz 0:02:53.560 --> 0:02:56.200 Trust is filling her cabinet and working on solutions to 0:02:56.200 --> 0:02:59.560 address her country's cost of living crisis Bloomberg. Stephen Carroll 0:02:59.639 --> 0:03:01.959 joins us live from London with the Latest Morning Stephen, 0:03:02.080 --> 0:03:04.680 Good Morning, Nathan and Karen. Liz Truss holding the first 0:03:04.720 --> 0:03:07.040 meeting of her new cabinet as we speak, after a 0:03:07.120 --> 0:03:10.920 sweeping reshuffle that saw her supporters elevated to the top jobs. 0:03:11.120 --> 0:03:14.000 Quasi quart hang as a new chancellor what Jacob riesmock 0:03:14.120 --> 0:03:17.160 takes over his business secretary Naturals faces the leader of 0:03:17.200 --> 0:03:19.760 the opposition Labor Party in Parliament later as we wait 0:03:19.800 --> 0:03:23.480 details of her package to tackle soaring energy costs. People 0:03:23.520 --> 0:03:25.840 familiar with the plan telling Bloomberg that it could see 0:03:25.880 --> 0:03:28.880 the government spending as much as two hundred billion pounds 0:03:28.880 --> 0:03:32.680 to cap prices, adding ten percent to the UK's national debt. 0:03:32.919 --> 0:03:36.640 In London, I'm Stephen Carroll, Bloomberg Daybreak, Stephen, Thanks for 0:03:36.760 --> 0:03:39.400 the strong dollar. Wait on now sets in Asia overnight 0:03:39.560 --> 0:03:42.920 sh Sheldon lows from they have twenty while Asian currencies 0:03:42.960 --> 0:03:46.400 weakened sharply and Bloomberg. Juliet Salley joins us from Singapore 0:03:46.440 --> 0:03:49.200 with the latest. Good Morning, Juliet, Good morning, Nathan and Karen. 0:03:49.240 --> 0:03:52.400 In Japan, the yen sank one with officials warning they're 0:03:52.400 --> 0:03:55.920 concerned about rapid one sided moves. China meanwhile said it's 0:03:55.920 --> 0:03:58.600 you on reference rate with the strongest bias on record, 0:03:58.680 --> 0:04:02.160 a signal of discomfort with the swooning currency. South Korea's 0:04:02.200 --> 0:04:06.000 one was the worst performing Asian currency, prompting speculation of intervention. 0:04:06.160 --> 0:04:09.279 The Kiwi and Singapore dollars fell to two year lows, 0:04:09.320 --> 0:04:12.200 adding to the downbeat sentiment. The latest China data showing 0:04:12.240 --> 0:04:15.360 the nation's export growth sloide more than expected in August, 0:04:15.400 --> 0:04:18.719 adding to signs of a flagging world economy in Singapore. 0:04:18.800 --> 0:04:22.120 Juliette Sally Bloomberg Daybreak, All right, Juliet thanks sticking with 0:04:22.160 --> 0:04:23.880 the end for a moment. The currency slumped to a 0:04:23.960 --> 0:04:26.520 level leaving it on track for its worst year on record, 0:04:26.560 --> 0:04:29.559 and that is prompting signals from government officials that Japan 0:04:29.600 --> 0:04:31.839 would need to take action if the rapid one sided 0:04:31.839 --> 0:04:35.080 the moves continue. Bloomberg FX reporter Ruth Carson says, at 0:04:35.080 --> 0:04:38.600 this point we could see government intervention. Policymakers haven't changed 0:04:38.640 --> 0:04:41.560 their language to indicate such a move would happen anytime soon, 0:04:41.839 --> 0:04:44.839 but look out for phrases like we won't rule out 0:04:44.920 --> 0:04:48.120 any options to combat excessive movements, or we're ready to 0:04:48.160 --> 0:04:52.280 take decisive, bold action to counter excessive or speculative moves. 0:04:52.320 --> 0:04:55.279 Bloomberg's Ruth Carson says, the end could get weaker still 0:04:55.400 --> 0:04:58.080 from here and checking it right now, it's trading at 0:04:58.080 --> 0:05:01.240 a hundred forty four point one nine against the dollar. Well, 0:05:01.320 --> 0:05:04.119 let's move to corporate news now, Nathan, where all eyes 0:05:04.160 --> 0:05:06.640 are on Apple. The tech giant is holding a launch 0:05:06.640 --> 0:05:10.120 event today to unveil the new iPhone fourteen. New iPhones 0:05:10.160 --> 0:05:13.400 traditionally kick off a busy fall products season, which also 0:05:13.480 --> 0:05:16.640 includes new max iPads and Apple Watch models. He then 0:05:16.720 --> 0:05:18.840 kicks off at one pm Wall Street Time, and we'll 0:05:18.839 --> 0:05:21.360 bring you live updates from Cooper Tino throughout the day 0:05:21.560 --> 0:05:24.240 on Bloomberg Radio and television. And we've got more earnings 0:05:24.240 --> 0:05:27.240 on the way today, Karen popular Meme Stock game Stop 0:05:27.400 --> 0:05:30.159 is among companies out with results after the close. Bloomberg's 0:05:30.200 --> 0:05:33.280 Charlie Pellett has a preview. The analyst surveyed by Bloomberg 0:05:33.320 --> 0:05:36.560 see the video game retailer reporting on adjusted earnings per 0:05:36.600 --> 0:05:39.839 share loss of thirty four cents on revenue of one 0:05:39.880 --> 0:05:43.279 point to seven billion dollars. Analysts at Webb Bush say 0:05:43.360 --> 0:05:48.760 game Stop may trail consensus expectations, citing ongoing hardware constraints 0:05:48.760 --> 0:05:52.039 for gaming consoles. Game Stop has been among the most 0:05:52.080 --> 0:05:55.360 popular retail trader favorites this year, but the stock for 0:05:55.400 --> 0:06:00.080 all of two is down thirty two percent. In New York, Chile, 0:06:00.160 --> 0:06:02.680 Pelic Bloom Bird pay break a right, Charlie, thanks well. 0:06:02.680 --> 0:06:05.320 It's shaping up to be another rough day in California. 0:06:05.400 --> 0:06:08.000 The state's electric grid will once again be tested after 0:06:08.040 --> 0:06:12.320 a narrowly avoided blackouts for two consecutive days. Blistering temperatures 0:06:12.360 --> 0:06:16.040 pushed electricity demand to record levels Lady yesterday. That prompted 0:06:16.040 --> 0:06:19.480 California to enact its highest level of energy emergency, and 0:06:19.600 --> 0:06:22.080 much of the state remains under an excessive heat warning. 0:06:22.200 --> 0:06:24.240 It's like a look at oil now, Karen Crude is 0:06:24.240 --> 0:06:27.320 trading lower as the dollar surges, and concern over global 0:06:27.360 --> 0:06:29.800 demand is also weighing on sentiment. W t E s 0:06:29.839 --> 0:06:31.640 off to a week starts of the month, extending a 0:06:31.720 --> 0:06:34.279 run of three monthly losses. That's it's worst streak in 0:06:34.320 --> 0:06:37.520 more than two years. Checking prices now, w t I 0:06:37.640 --> 0:06:40.039 is up six cents per cent, forty nine cents higher 0:06:40.040 --> 0:06:42.440 now at eighty seven dollars thirty seven cents of barrel. 0:06:42.720 --> 0:06:46.120 But we're also watching cryptocurrencies this morning, Nathan. Bitcoin flirting 0:06:46.120 --> 0:06:49.000 with a test of this year's lows following another sell 0:06:49.080 --> 0:06:52.839 off that's pushed the sector's overall market valuablelow one trillion dollars. 0:06:53.080 --> 0:06:55.799 The largest digital token has shed more than six percent 0:06:55.920 --> 0:06:58.839 so far this week. Is surging real interest rates, cut 0:06:58.880 --> 0:07:02.520 into risk assets and checking Bitcoin right now, it's down 0:07:02.520 --> 0:07:06.280 about one pent is at eighteen thousand, seven eight dollars. 0:07:06.680 --> 0:07:09.760 Future is moving higher this morning, with SNP futures up 0:07:09.760 --> 0:07:13.000 almost seven point, staff futures of twenty eight, NASDAG futures 0:07:13.040 --> 0:07:16.240 up thirty Straight ahead, your latest local headlines, plus a 0:07:16.320 --> 0:07:23.760 check of sports, and this is Bloomberg. Thanks Karen. Six 0:07:23.800 --> 0:07:25.960 o seven On Wall Street. We're at sixty six degrees 0:07:26.000 --> 0:07:29.200 in Central Park. Gotta crash eastbound twenty four at brute 0:07:29.280 --> 0:07:32.160 seventy eight in Springfield. Details coming up in traffic. First 0:07:32.240 --> 0:07:34.120 John Tucker with what else is going on in New 0:07:34.160 --> 0:07:36.400 York and around the world. Good morning, John, and former 0:07:36.400 --> 0:07:39.720 White House strategist Steve Bannon will surrender to face criminal 0:07:39.880 --> 0:07:42.360 charges in New York. Let's get more on the story. 0:07:42.400 --> 0:07:46.360 From Bloomberg's Jeff Bellinger. Sources tell Bloomberg that Bannon has 0:07:46.400 --> 0:07:49.400 been indicted and will be charged by the Manhattan District 0:07:49.440 --> 0:07:53.720 Attorney's office. Manhattan prosecutors were working early last year with 0:07:53.760 --> 0:07:57.000 New York Attorney General Letitia James, new York's top law 0:07:57.080 --> 0:08:00.200 enforcement officer, to gather information for a pro been to 0:08:00.280 --> 0:08:03.880 weather bannoned defrauded contributors for that We Build the Wall. 0:08:04.320 --> 0:08:07.840 Bannon was charged with fraud and federal court in twenty 0:08:07.960 --> 0:08:11.240 over the alleged scheme, leading to a pardon hours before 0:08:11.280 --> 0:08:14.080 Donald Trump left the White House. But Trump could not 0:08:14.240 --> 0:08:17.960 shield his former Raid from the state level probe. Jeff Bellinger, 0:08:18.080 --> 0:08:21.120 Bloomberg day Break, and we're hearing more surrounding the documents 0:08:21.120 --> 0:08:24.960 discovered of the former president's Florida state. The Washington Post 0:08:24.960 --> 0:08:28.960 reports and document APPII agencies at Mara Lago describes the 0:08:29.040 --> 0:08:34.800 foreign government's military defenses and nuclear capabilities. A development in 0:08:34.840 --> 0:08:38.320 the investigation into the alleged effort by some Trump supporters 0:08:38.559 --> 0:08:42.960 to overturn the twenty twenty election results. In Georgia, Investigators 0:08:43.000 --> 0:08:47.160 say video shows a local Republican party leader allegedly allowing 0:08:47.200 --> 0:08:50.320 two men into the Coffee counties election offices the day 0:08:50.400 --> 0:08:53.720 after the January six insurrection. It's also the same day 0:08:53.720 --> 0:08:57.559 authorities say the offices voting machines were breached. The Biden 0:08:57.600 --> 0:09:01.760 administrations as COVID nineteen vaccines will largely become an annual 0:09:01.840 --> 0:09:06.000 vaccination akin to the flu shot. Dr Chi's Jazz, the 0:09:06.040 --> 0:09:09.960 Coronavirus Response Coordinator, we the administration will make sure that 0:09:10.120 --> 0:09:14.079 vaccines are free, that they're widely available, and they are 0:09:14.240 --> 0:09:18.200 easy to access for everybody. The administration urging Americans to 0:09:18.240 --> 0:09:21.240 seek out newly authorized booster shots Taylor to find the 0:09:21.320 --> 0:09:25.559 omicron subvariants that are now dominant. About half of US 0:09:25.600 --> 0:09:29.240 workers could be described as quiet quitters. That's according to 0:09:29.280 --> 0:09:32.680 new research by Gallop. It means they fulfill their job 0:09:32.720 --> 0:09:37.400 description but are psychologically detached from their work. According to 0:09:37.440 --> 0:09:40.480 Gallup survey of over fifteen thousand full and part time 0:09:40.559 --> 0:09:43.679 US workers, not a half of respondence met the definition 0:09:43.720 --> 0:09:48.640 of quiet quitting. More evidence the pandemic has vented employees, priorities, 0:09:48.640 --> 0:09:52.839 and companies workplace policies. Global News twenty four hours a 0:09:52.920 --> 0:09:55.720 day on air and on Bloomberg Quicktake. We're powered by 0:09:55.760 --> 0:09:58.280 more than seven hundred journalists and analysm more than one 0:09:58.679 --> 0:10:02.200 twenty countries on John Tucker and this is Bloomberg, so 0:10:02.280 --> 0:10:04.800 you turned your volume up on that story. Thank you, John. 0:10:09.360 --> 0:10:12.240 Almost six ten on Wall Street Time for the Bloomberg 0:10:12.280 --> 0:10:14.640 Sports Update with John stash Our. Thanks they send so 0:10:14.720 --> 0:10:16.400 much for us to being the easy part of the 0:10:16.440 --> 0:10:18.959 Mets schedule. Back to back losses to lowly Washington and 0:10:19.000 --> 0:10:21.240 an eight two lost last night in Pittsburgh. Mets have 0:10:21.400 --> 0:10:23.640 just their second three game losing Threek of the season. 0:10:23.679 --> 0:10:26.199 The other came back in June. Taiwan Walker gave a 0:10:26.280 --> 0:10:28.520 four runs and five innings. The Pirates put it away 0:10:28.559 --> 0:10:31.080 with four runs in the eighth inning. Brandon Neimo homeward 0:10:31.120 --> 0:10:33.559 for the Mets, who drop into a first place tie 0:10:33.559 --> 0:10:36.480 with red hot Atlanta. Mets and Pirates have a doubleheader 0:10:36.559 --> 0:10:39.080 today making up Monday's rain out, and Yankees and twins 0:10:39.080 --> 0:10:40.679 of a twin bill in the Bronx to make up 0:10:40.760 --> 0:10:43.720 last night's rain out. Yanksters put Anthony Rizzo on their 0:10:43.800 --> 0:10:47.800 extremely crowded injured list. There are fifteen names on it. 0:10:47.920 --> 0:10:49.960 Rizzo has missed time with the bad back. Now he's 0:10:50.000 --> 0:10:52.800 suffering from migraine headaches. Now the late night at the 0:10:52.880 --> 0:10:55.559 US Open. This one ended at one am with Karen 0:10:55.679 --> 0:10:58.720 catch sean Off winning the fifth set from Nick Curios. 0:11:01.120 --> 0:11:06.880 Um but old credit to Karen. He just he's a fot, 0:11:06.960 --> 0:11:09.000 he's in. He's a warrior, you know, he's he's although 0:11:09.040 --> 0:11:12.520 he saved really good today. Um, honestly, probably the best 0:11:12.520 --> 0:11:14.760 several play this tournament, to be honest, the way he 0:11:14.760 --> 0:11:16.800 was hitting his spots under pressure. A lot of new 0:11:16.920 --> 0:11:19.679 names emerging at this year's Open, catch Shanoff will now 0:11:19.679 --> 0:11:23.640 play Norway's Casper Route, and unlike these semifinal women's winners, 0:11:23.720 --> 0:11:26.920 yesterday Ons Jabber, who was from Tunisia, and last night 0:11:26.960 --> 0:11:30.440 Caroline Garcia took out Coco got w NBA playoff wins 0:11:30.440 --> 0:11:33.280 for Connecticut headed in with decisive Game five of Chicago 0:11:33.320 --> 0:11:36.199 and Las Vegas has reached the finals, beating Sea at 0:11:36.200 --> 0:11:38.000 all the final game the long career of Long Island 0:11:38.080 --> 0:11:40.680 native Sue Burg. Chicago Bears announced their intention to move 0:11:41.160 --> 0:11:43.880 to an indoor state, even the suburbs, although not until 0:11:43.920 --> 0:11:47.680 two thousand and thirty four. John Stash award Bloomberg's voice, Nathan, 0:11:47.800 --> 0:11:51.080 thank you, john S andp futures right now up four 0:11:51.200 --> 0:11:54.120 points stout futures up thirteen nan Stack future is higher 0:11:54.400 --> 0:11:57.880 by twenty five points, but European stocks continue their slide 0:11:57.920 --> 0:12:00.320 on a stronger dollar. We'll look at this market next 0:12:00.360 --> 0:12:08.360 with Bloomberg's Danny Burger. This is Bloomberg, Bloomberg eleven three 0:12:08.360 --> 0:12:11.000 oh weather scattered showers, low seventies today, we'll clear out 0:12:11.000 --> 0:12:14.080 Tomorrow'll get into the upper seventies by Friday week with 0:12:14.120 --> 0:12:16.760 sunshine and a high. And you're eighty right now, cloudy 0:12:16.920 --> 0:12:23.680 sixty six degrees in Central Park. Markets, headlines and breaking 0:12:23.679 --> 0:12:26.600 news twenty four hours a day at Bloomberg dot com. 0:12:26.720 --> 0:12:30.920 The Bloomberg Business Outland at Bloomberg Quicktape is a Bloomberg 0:12:31.000 --> 0:12:40.160 Business Flash, and I'm Karen Moscow. Stocks and commodities are 0:12:40.240 --> 0:12:44.000 dropping as the prospect of aggressive Federal Reserve monetary tightening 0:12:44.040 --> 0:12:47.160 lifts a dollar gauge to another record. Meanwhile, the US 0:12:47.240 --> 0:12:50.040 DON Index futures are a little change now. We checked 0:12:50.080 --> 0:12:53.720 the markets every fifteen minutes throughout the trading day on Bloomberg. 0:12:53.840 --> 0:12:57.520 Right now, SMP futures or down futures, they're both little changed. 0:12:57.640 --> 0:13:00.520 Nowsday futures are higher, They're up a body et points 0:13:00.520 --> 0:13:03.320 sets up almost two tenths of upper set. The decks 0:13:03.320 --> 0:13:06.160 in Germany's down seven tenths of upper cent. Ten year 0:13:06.200 --> 0:13:08.719 treasury up eight thirty seconds. You know, three point three 0:13:08.840 --> 0:13:11.120 one percent they yield on the two year three point 0:13:11.120 --> 0:13:13.880 four six per set. Nine max Screwed oil is up 0:13:13.880 --> 0:13:16.360 half percent or forty four cents at eighty seven dollars 0:13:16.400 --> 0:13:19.679 thirty one center barrel comes gold is up two tens 0:13:19.679 --> 0:13:22.280 per cent or three dollars thirty cents, and seventeen sixteen 0:13:22.360 --> 0:13:25.640 ten announced the euro at point nine eight nine eight 0:13:25.720 --> 0:13:28.640 against the dollar, British found one point one four eight 0:13:28.760 --> 0:13:31.640 seven and again one forty four point to six. And 0:13:31.720 --> 0:13:34.280 looking at a bitcoin this morning down one percent at 0:13:34.320 --> 0:13:37.680 eighteen thousand seven dty dollars. Today we are watching for 0:13:37.679 --> 0:13:39.760 the trade balance out at eight thirty Wall Street time 0:13:39.800 --> 0:13:41.679 that at two the Federal Reserve at least as its 0:13:41.720 --> 0:13:44.439 page book and as a Bloomberg business flash. Now, here's 0:13:44.480 --> 0:13:46.959 John Tucker with more on what's going on around the world. 0:13:47.120 --> 0:13:50.560 John and Karen. Former White House strategist Steve Bennon will 0:13:50.600 --> 0:13:55.120 surrender to face criminal charges in New York tomorrow. California 0:13:55.240 --> 0:13:58.160 narrowly avoided Blackhouse for a second day. This comes to 0:13:58.200 --> 0:14:01.000 even as dangerous temperatures push the actricity demand to a 0:14:01.200 --> 0:14:04.360 record and she Shnpeg will meet his rush and counterpart 0:14:04.600 --> 0:14:08.079 Vladimir Putin next week. It would mark the Chinese leader's 0:14:08.120 --> 0:14:11.360 first trip abroad in two and a half years. Sports 0:14:11.480 --> 0:14:14.840 last night, Matts lose to the Pirates, the Red Sox 0:14:14.920 --> 0:14:17.360 lost to the Rays, Orioles beat the Blue Jays, and 0:14:17.440 --> 0:14:19.800 Nasals lost to the Cardinals. The A's Field of the 0:14:19.840 --> 0:14:23.000 Braves Giants lost to the Dodgers, and the Yankees game 0:14:23.040 --> 0:14:25.120 against the Twins that was rained out to try to 0:14:25.160 --> 0:14:27.840 make that up. Today, Global News twenty four hours day 0:14:27.880 --> 0:14:30.880 on air and Bloomberg Quicktake where powered by more than 0:14:30.920 --> 0:14:33.880 twenty seven hundred journalists and analysts. It more than one 0:14:34.280 --> 0:14:38.160 twenty countries. I'm John Tucker. This is Bloomberg, Nathan Okay, John, 0:14:38.200 --> 0:14:40.840 Thanks six nineteen Now on Wall Street Life in the 0:14:40.880 --> 0:14:45.120 Bloomberg Interactive Brokers Studios. This is a Bloomberg Daybreak. Let's 0:14:45.160 --> 0:14:47.600 take a look at this market A closer look with 0:14:47.680 --> 0:14:52.120 Danny Berger, Bloomberg television anchor and markets correspondent for Bloomberg 0:14:52.120 --> 0:14:55.440 News or the story this morning. Danny really does seem 0:14:55.480 --> 0:14:58.720 to be dollar strength, and we're watching it play out, 0:14:58.720 --> 0:15:04.560 particularly in European stocks. Yeah, I mean dollar strength almost 0:15:04.640 --> 0:15:07.560 literally against everything. I mean, whether you want to look 0:15:07.600 --> 0:15:11.040 at the europound, Asian currencies. Asian currencies are doing so 0:15:11.120 --> 0:15:14.280 bad this morning. Um, And I think sort of the 0:15:14.480 --> 0:15:18.200 fall and stocks is just a reflection of of that 0:15:18.560 --> 0:15:21.600 type of environment where we're flowing into the haven of 0:15:21.640 --> 0:15:24.760 the dollar, where we're looking at a persistently tight said 0:15:24.800 --> 0:15:28.320 and one that's forcing other countries like the ECB tomorrow 0:15:28.360 --> 0:15:32.560 to titan as well. Along with this economic deterioration both 0:15:32.560 --> 0:15:34.640 in Europe which we've been talking about NonStop with the 0:15:34.720 --> 0:15:38.000 energy crisis and negative data out from China. So you 0:15:38.040 --> 0:15:42.040 combined a weak economic data with persistent strength from central 0:15:42.040 --> 0:15:45.000 banks and you get the ugliness and dollar strength that 0:15:45.040 --> 0:15:47.320 we're seeing today. Yeah. I was just talking with the 0:15:47.440 --> 0:15:50.120 kid Jukes over at sock Jen last hour. He told 0:15:50.120 --> 0:15:53.760 me that he doesn't think we're gonna see much erosion 0:15:53.840 --> 0:15:56.480 to king dollar until there's some kind of resolution to 0:15:56.600 --> 0:16:00.080 the energy crisis in Europe. So maybe dollar strength this 0:16:00.200 --> 0:16:02.680 is going to be with us for a while yet. Yeah, 0:16:02.760 --> 0:16:06.120 the fundamentals really are still there. Um. I mean, look, 0:16:06.120 --> 0:16:09.440 you could say, Okay, on evaluation level, this looks overstretched, 0:16:09.720 --> 0:16:13.400 But those sorts of things don't matter in times of crises. 0:16:13.480 --> 0:16:16.040 It can continue to go. I mean, what would the 0:16:16.040 --> 0:16:19.240 dollar deteriorate against. I'm looking at agen that's at one. 0:16:20.480 --> 0:16:24.280 It's unlikely there'll be any verbal intervention there because or 0:16:24.560 --> 0:16:27.640 there has been verbal intervention that's been irrelevant. Maybe they'll 0:16:27.640 --> 0:16:31.800 have a unilateral intervention, but that probably won't do much either. 0:16:31.880 --> 0:16:35.440 They need something of a coordinated effect. So I'm having 0:16:35.440 --> 0:16:38.960 a hard time seeing you know what could beat out 0:16:39.000 --> 0:16:41.440 the dollar in this environment right now? Yeah, I'm looking 0:16:41.480 --> 0:16:44.560 at the offshore you want the Chinese currencyclorting with that 0:16:44.640 --> 0:16:48.840 psychological seven handle as well. It makes you wonder whether 0:16:48.880 --> 0:16:51.480 we could see some kind of intervention not just from 0:16:51.520 --> 0:16:55.720 the People's Bank of China, but from the Bank of Japan. Yeah, 0:16:55.760 --> 0:16:58.840 certainly so. Bank of Japan. Last intervention, I believe was 0:16:58.840 --> 0:17:00.880 when we're at this level to four years ago. It 0:17:00.920 --> 0:17:03.720 was it was coordinated between the US and Japan, and 0:17:03.800 --> 0:17:07.600 that's probably what we would need to see for any change. Um. 0:17:07.680 --> 0:17:10.320 The question though, is how much longer can Japan afford 0:17:10.359 --> 0:17:12.879 to let this go on to some degree? You know, 0:17:12.840 --> 0:17:15.959 a weaker currency does mean inflation is higher, and Japan 0:17:16.080 --> 0:17:18.439 is kind of rare in terms of a country that 0:17:18.680 --> 0:17:22.639 isn't dealing with outside inflation, So perhaps intervention might not 0:17:22.720 --> 0:17:24.560 come as soon as many people think when they look 0:17:24.600 --> 0:17:27.520 at the level. But yeah, China, the UN so close 0:17:27.600 --> 0:17:31.480 to seven um. It's clear that the PBOC is willing 0:17:31.560 --> 0:17:33.920 to let that weaken as much, but it just doesn't 0:17:33.960 --> 0:17:36.280 want to lose control, and I think that's clear by 0:17:36.280 --> 0:17:38.440 the strong fixing we saw in it this morning. Now 0:17:38.440 --> 0:17:41.280 we've got central bank decisions from the e c V first, 0:17:41.320 --> 0:17:43.680 of course, we're waiting for the fed's decision later on 0:17:43.760 --> 0:17:46.120 this month as well. And I guess the question now 0:17:46.280 --> 0:17:48.919 is whether the tightening of financial conditions that we're starting 0:17:48.960 --> 0:17:51.399 to see is going to have any impact on whether 0:17:51.440 --> 0:17:54.920 we continue to see really strong jumbo sized rate high 0:17:55.280 --> 0:17:58.879 central banks. Yeah, absolutely, because the type of environment it 0:17:58.960 --> 0:18:02.239 creates by really tight financial conditions or tightening in the 0:18:02.320 --> 0:18:05.200 US is what we're talking about. It's a weak currency. 0:18:05.280 --> 0:18:08.439 So you look at someone uh like the ECB for example, 0:18:08.480 --> 0:18:10.639 they're looking at a weak currency. For them, that means 0:18:10.640 --> 0:18:13.439 more inflation which they're trying to combat. And so what 0:18:13.440 --> 0:18:15.159 do you do you hike rates more, and that's what 0:18:15.240 --> 0:18:18.080 the market is pricing in. We've got uh sixty five 0:18:18.119 --> 0:18:20.240 basis points is the implied rate at the moment, which 0:18:20.280 --> 0:18:22.800 means that there's a lot of folks betting on seventy 0:18:22.840 --> 0:18:25.879 five from the ECB. And you have this toxic mix 0:18:25.920 --> 0:18:29.160 where yes, this kind of chatter is sending yields higher. 0:18:29.520 --> 0:18:32.120 Usually that means a stronger currency, but this time it's 0:18:32.160 --> 0:18:35.440 not so. How much does the e c D need 0:18:35.520 --> 0:18:39.280 to hike to move rates higher to actually attract investors 0:18:39.320 --> 0:18:42.679 into Europe to send the euro higher. I mean, I 0:18:42.720 --> 0:18:44.480 realize a lot of this is sort of like I 0:18:44.520 --> 0:18:46.399 feel like I'm talking in circles a bit, but but 0:18:46.440 --> 0:18:48.560 it is. It's just a fed and a dollar that's 0:18:48.600 --> 0:18:51.640 giving everyone a headache. Only about thirty seconds left here, Danny, 0:18:51.680 --> 0:18:53.920 But I'm really curious to hear what analysts are telling 0:18:53.920 --> 0:18:57.240 you about whether we could see the June low tested. 0:18:57.320 --> 0:18:59.639 I mean, we got this no doubt from Goldman Sachs 0:18:59.760 --> 0:19:03.520 this morning saying that the bottom might not have been 0:19:04.240 --> 0:19:06.919 reached at this point. I gotta tell you, I'm just 0:19:06.960 --> 0:19:09.480 caring a lot of doom and gloom. Everyone's worried, not 0:19:09.560 --> 0:19:12.560 just about the economy, economy, but earnings as well at 0:19:12.640 --> 0:19:15.240 the second half of this year. Yeah, all right, thank 0:19:15.280 --> 0:19:18.719 you for this. Danny really appreciated. Danny Burger, our markets correspondent, 0:19:18.960 --> 0:19:23.560 Bloomberg television anchor with us this morning as we watch markets, 0:19:23.680 --> 0:19:28.160 UH continue to react to this strong dollar. Futures UH 0:19:28.280 --> 0:19:31.720 seeing a little bit attraction this morning to the upside. 0:19:31.840 --> 0:19:34.960 Right now, SMP futures are up six points, STAU futures 0:19:35.000 --> 0:19:38.440 up thirty six. Nasdaq futures are highed by thirty one points. 0:19:38.440 --> 0:19:41.800 But European equities are still moving lower. We got the 0:19:41.840 --> 0:19:44.280 decks in Germany down about a half percent, Footsie in 0:19:44.320 --> 0:19:47.200 London down six tenths of one percent. Ten. Your treasury 0:19:47.280 --> 0:19:49.240 is up seven thirty seconds for a yield of three 0:19:49.240 --> 0:19:51.400 point three two percent. The yield on the two year 0:19:51.760 --> 0:19:55.800 three point four six percent. Starting to see crude, UH 0:19:56.119 --> 0:19:59.520 get a bid with Nimex crude right now up six 0:19:59.560 --> 0:20:02.240 tents for cent to eighty seven dollars forty three cents 0:20:02.240 --> 0:20:08.400 of barrel. This is Bloomberg Bloomberg eleven three oh Weather. 0:20:08.440 --> 0:20:11.080 Scattered showers today with highs in the low seventies, clearing 0:20:11.119 --> 0:20:14.400 tomorrow upper seventies for Thursday highs. By Friday, we could 0:20:14.440 --> 0:20:17.479 hit eighty under sunshine. Right now, it's cloudy in sixty 0:20:17.560 --> 0:20:27.679 six in Central Park. Broadcasting live from the Bloomberg Interactive 0:20:27.720 --> 0:20:31.560 Broker Studio in New York, Bloomberg in voom Free to Washington, 0:20:31.640 --> 0:20:35.760 d C. Bloomberg on to Boston, Bloomberg one oh six one, 0:20:35.840 --> 0:20:39.280 does San Francisco, Bloomberg N sixteen to the country Sirius 0:20:39.440 --> 0:20:42.080 xm ch A one nineteen, and around the globe the 0:20:42.080 --> 0:20:45.960 Bloomberg Business app and Bloomberg Radio dot com. This is 0:20:46.000 --> 0:20:54.760 Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm 0:20:54.840 --> 0:20:57.919 Nathan Hagar and I'm Karen Moscow. We are just about 0:20:57.920 --> 0:21:00.480 three hours away from the open of us eating time 0:21:00.520 --> 0:21:02.080 for the five things so you need to know to 0:21:02.160 --> 0:21:06.240 start your day. Brought to you by Interactive Brokers. Interactive 0:21:06.240 --> 0:21:09.320 Brokers charges marchin loan rates from two point three percent 0:21:09.359 --> 0:21:11.760 to three point a three percent. Their clients can also 0:21:11.800 --> 0:21:14.879 earn extra income by lending their fully paired shares of 0:21:14.960 --> 0:21:18.320 stock or fully paid shares of stock. Rates subject to change. 0:21:18.400 --> 0:21:21.600 Learn more at ibk R dot com. Slash compare for 0:21:21.840 --> 0:21:24.480 stungs in Europe are falling as the US dollar continues 0:21:24.520 --> 0:21:27.600 it's strong run. The Bloomberg Dollars Spot index hit another 0:21:27.640 --> 0:21:31.080 record overnight, and that's leading to tighter financial conditions that 0:21:31.160 --> 0:21:34.160 are weighing on risk assets around the world. Janet Moue 0:21:34.280 --> 0:21:37.159 has had a market analysis at Brewin Dolphin. There are 0:21:37.200 --> 0:21:41.000 increasing signs that countries are worried about the dollar strength. 0:21:41.119 --> 0:21:44.600 I think government officials they will have to come together 0:21:44.800 --> 0:21:47.639 to discuss what they may do about it, but maybe 0:21:47.720 --> 0:21:50.760 they don't actually have a load of solutions. Janet Movie 0:21:50.760 --> 0:21:53.480