WEBVTT - Bloomberg Daybreak: September 13, 2022 - Hour 2 (Radio) 0:00:03.440 --> 0:00:06.680 Live from the Bloomberg Interactive Berger Studios. This is Bloomberg 0:00:06.760 --> 0:00:10.600 day Break for Tuesday, September two. Coming up this hour, 0:00:11.080 --> 0:00:14.520 Wall Street prepares for the latest reading on inflation. Cooman 0:00:14.560 --> 0:00:17.520 Sacks begins its biggest round of job cuts since the pandemic. 0:00:17.800 --> 0:00:21.799 The Justice Department ramps up its investigation into the election, 0:00:21.960 --> 0:00:24.319 and Ukraine might be turning the corner in the war 0:00:24.360 --> 0:00:27.360 with Russia. We're learning more about the mother accused of 0:00:27.440 --> 0:00:30.680 drowning her children at Coney Island Beach. Plus Senator Graham 0:00:30.720 --> 0:00:34.960 plans to introduce national abortion restrictions On Michael Blar More Ahead, 0:00:35.600 --> 0:00:38.000 I'm John Stash towards wards the Mets walk because the 0:00:38.080 --> 0:00:41.800 Yankees visit the Red Sox Tonight Monday Night Football Seattle, Top, Denver. 0:00:44.560 --> 0:00:48.479 That's all trading ahead on Bloomberg day Break on Bloomberg eleven, 0:00:48.560 --> 0:00:53.040 Free on New York, Bloomberg on Washington, d C, Bloomberg 0:00:53.040 --> 0:00:56.760 one oh six one Boston, Bloomberg nine sixties, San Francisco, 0:00:57.240 --> 0:01:00.000 Syrius X M one nine Team, and around the world. 0:01:00.000 --> 0:01:03.080 Old on Bloomberg Radio dot Com and via the Bloomberg 0:01:03.120 --> 0:01:10.200 Business App. Good morning, I'm Nathan Hagar, and I'm Karen Moscow, 0:01:10.360 --> 0:01:12.880 US DOT in Next futures on the rise this morning. 0:01:12.920 --> 0:01:14.600 We're coming up to six o one on Wall Street, 0:01:14.600 --> 0:01:16.800 and we check the markets every fifteen minutes throughhou the 0:01:16.840 --> 0:01:19.480 trading day on Bloomberg. Right now, S and B futures 0:01:19.480 --> 0:01:23.119 are up about seventeen points. Gall futures have one seven 0:01:23.160 --> 0:01:26.600 A NAUNSDAG futures of forty five ten year treasury of 0:01:26.680 --> 0:01:29.200 eleven thirty seconds. You have three point three one percent 0:01:29.280 --> 0:01:31.600 and they yield on the two year three point five 0:01:31.680 --> 0:01:34.760 two at NIME. Ex Scrude oil at eighty eight dollars 0:01:34.760 --> 0:01:37.760 eighty cents a barrel Nathan Karen For markets today, it 0:01:37.800 --> 0:01:40.360 is all about inflation, and we get the latest reading 0:01:40.400 --> 0:01:43.639 on US consumer prices at eight thirty am. Wall Street 0:01:43.720 --> 0:01:47.200 Time forecast call for inflation to ease, but Coral Institute 0:01:47.240 --> 0:01:50.000 Chief economist Megan Green says there is a risk prices 0:01:50.040 --> 0:01:52.680 go the other direction. Well, I think we'll see headline 0:01:52.720 --> 0:01:56.280 inflation coming down thanks to lower gas crisis, but in 0:01:56.360 --> 0:01:58.800 terms of core inflation we might see it take up 0:01:59.160 --> 0:02:01.600 very moderately. Actually think the risks are on the downside. 0:02:01.680 --> 0:02:04.040 There's a possibility it could fall, but generally I think 0:02:04.080 --> 0:02:07.880 it will take up very moderately, and that's good news 0:02:07.920 --> 0:02:10.440 that it's increasing at a slower rate. But I don't 0:02:10.440 --> 0:02:12.640 think that the Fed can breathe a sigh of relief 0:02:12.720 --> 0:02:15.519 just yet. Megan Green and Coral says an energy crunch 0:02:15.560 --> 0:02:18.440 could push prices higher in the coming months. Economists surveyed 0:02:18.440 --> 0:02:20.960 by Bloomberg expect inflation for August to come in at 0:02:21.000 --> 0:02:23.800 an annual rate of eight point one percent. Well, I 0:02:23.800 --> 0:02:26.360 had a better report, Nathan. The mood and equity markets 0:02:26.480 --> 0:02:29.440 is risk gone. Stalks in the Asia Pacific climbed overnight, 0:02:29.480 --> 0:02:33.040 and Bloomberg Juliette Sally joins us with the recap from Sydney, Australia. 0:02:33.080 --> 0:02:36.320 Good morning, Juliette, Good morning. Karen tech Stokes led the games, 0:02:36.320 --> 0:02:39.679 with Apple supplies rallying amid strong preorder data for the 0:02:39.760 --> 0:02:42.440 latest iPhones. South Korea has cast ME rose more than 0:02:42.480 --> 0:02:45.079 two and a half percent as investors played catch shop 0:02:45.160 --> 0:02:48.160 after Monday's holiday. If He'll show you one weekend. Despite 0:02:48.200 --> 0:02:51.720 yet another strong fixed from the PBOC four in a row, 0:02:52.120 --> 0:02:54.560 the bias was below two hips slow for the first 0:02:54.560 --> 0:02:57.800 time in a week. M Life strategist highlighting this suggests 0:02:57.800 --> 0:03:01.400 that PBOC could be easing off slowly in its battering 0:03:01.440 --> 0:03:05.680 of you on bearish bits in Sidney. Juliette Sally Bloomberg Daybreak. 0:03:05.760 --> 0:03:07.680 All right, juliet thank you back here in the US. 0:03:07.760 --> 0:03:10.240 A couple of corporate names we're watching this morning. Shares 0:03:10.280 --> 0:03:13.040 of Peloton are down about a half percent in early trading. 0:03:13.040 --> 0:03:15.760 That's afterwards. Chairman and co founder John Folly is stepping 0:03:15.760 --> 0:03:19.320 down from the company. His resignation takes effect Monday. And 0:03:19.320 --> 0:03:22.160 on the flip side, Nathan, we're seeing shares of Oracle gain. 0:03:22.200 --> 0:03:24.919 They are up almost two percent after earnings that were 0:03:24.960 --> 0:03:27.880 in line with estimate. Sales for Oracle jumped eighteen percent 0:03:27.960 --> 0:03:30.880 of the recent quarter thanks to strength and cloud computing. 0:03:31.080 --> 0:03:33.640 Else Around Wall Street, Karen job cuts are in focus. 0:03:33.680 --> 0:03:36.040 Goldman Sachs is going ahead with its biggest round of 0:03:36.040 --> 0:03:38.800 cutback since the start of the pandemic. Sources say the 0:03:38.800 --> 0:03:41.920 bank plans to eliminate several hundred roles starting this month. 0:03:42.160 --> 0:03:45.760 Bloomberg's Valerie Titel says the cuts will be based on performance. 0:03:46.000 --> 0:03:48.640 They usually have an annual calling cycle, but I think 0:03:48.680 --> 0:03:51.560 what's notable about this one is that they are resuming 0:03:51.600 --> 0:03:55.120 normal activity after the pandemic. This comes after some pretty 0:03:55.120 --> 0:03:58.960 steep declines and investment banking activities, notably I P O 0:03:59.080 --> 0:04:03.160 s and junk issuance, creating, you know, quite some conditions 0:04:03.200 --> 0:04:07.200 for some significant layoffs to begin post pandemic. Bloomberg's Valerie 0:04:07.200 --> 0:04:09.480 Titele says Goldman will use the cuts to weed out 0:04:09.480 --> 0:04:12.160 low performers. The move could signal a chill setting in 0:04:12.200 --> 0:04:16.039 across the finance industry as revenue slumps from record highs. Well, 0:04:16.120 --> 0:04:18.880 let's learn to boats. Turn to politics now, Dathan. We're 0:04:18.880 --> 0:04:22.119 an investigation into the election is heating up. The Justice 0:04:22.160 --> 0:04:24.520 Department is ramping up its probe and the plot to 0:04:24.600 --> 0:04:28.760 overturn the presidential election, issuing dozens of subpoenas targeting campaign 0:04:28.839 --> 0:04:32.599 operatives and allies of former President Trump and Bloomberg's Amy 0:04:32.600 --> 0:04:36.800 Morris has details from our newsroom in Washington about forty 0:04:36.839 --> 0:04:39.440 news subpoenas were issued, the focus appearing to be the 0:04:39.440 --> 0:04:42.520 alleged scheme to have fake or alternate electors come to 0:04:42.560 --> 0:04:45.640 Washington to delay the certification of Joe Biden as president. 0:04:46.080 --> 0:04:49.200 The New York Times reports the Justice Department also seized 0:04:49.240 --> 0:04:53.320 the phones from Trump's lawyer Boris Epstein and campaign strategist 0:04:53.360 --> 0:04:56.320 Mike Roman. The time says some of the new subpoenas 0:04:56.360 --> 0:05:00.000 focus on activities of the Save America Political Action Committee, 0:05:00.120 --> 0:05:03.000 which is the main political fundraising arm for Trump since 0:05:03.000 --> 0:05:06.520 he left office in Washington. I'm Amy Moore as Bloomberg Daybreak. 0:05:06.600 --> 0:05:09.039 Thanks Amy, Let's turn our attention to Ukraine now. The 0:05:09.080 --> 0:05:11.640 country's asking for more weapons to build on its recent 0:05:11.640 --> 0:05:15.839 successor retaking territory from Russia. President vladimir's Lensky says forces 0:05:15.839 --> 0:05:19.000 have recaptured more than twenty three hundred square miles this month. 0:05:19.279 --> 0:05:22.080 Former Defense Secretary Leon Panetta says this could mark a 0:05:22.160 --> 0:05:24.560 turning point in the war. I would say it's both 0:05:24.800 --> 0:05:31.480 pivotal and dangerous. It's pivotal because to have Ukraine conducting 0:05:31.520 --> 0:05:37.800 a strong offensive that's working is incredibly important to putting 0:05:37.839 --> 0:05:42.039 real pressure on both Putin and the Russians. It's dangerous 0:05:42.120 --> 0:05:46.240 because Putin, if he's boxed in, obviously will have to 0:05:46.279 --> 0:05:49.600 strike back. Former Defense Secretary Leon Panetta spoke with David 0:05:49.600 --> 0:05:52.839 Weston on Bloomberg's Balance of Power. Catch the program weekdays 0:05:52.839 --> 0:05:55.560 at noon Eastern on Bloomberg Radio and Television. Plus the 0:05:55.600 --> 0:05:58.680 Balance of Power podcast on Apple, Spotify and anywhere else 0:05:58.720 --> 0:06:01.719 you get your podcasts. And finally Nathan to the UK, 0:06:01.920 --> 0:06:06.200 where ceremony is remembering Queen Elizabeth continue this week. Mourners 0:06:06.320 --> 0:06:09.000 in Scotland are paying respect to the queen this morning, 0:06:09.040 --> 0:06:14.640 and here with more is Bloomberg's Leanne Garrans. Thousands of 0:06:14.680 --> 0:06:17.120 people have been queuing through the night to see the 0:06:17.200 --> 0:06:21.159 queen's coffin at St Charles Cathedral in Edinburgh. The Queen's 0:06:21.200 --> 0:06:24.920 coffin will rest in the cathedral until about five pm 0:06:25.000 --> 0:06:28.440 local time today before beginning the journey back to London. 0:06:28.720 --> 0:06:31.280 It will then be taken to Buckingham Palace and then 0:06:31.320 --> 0:06:34.960 to Westminster Hall, where the Queen will lie in state 0:06:35.040 --> 0:06:38.359 for four days. A National Minutes silence will be held 0:06:38.360 --> 0:06:41.719 at eight pm on Sunday, the night before the Queen's 0:06:41.760 --> 0:06:47.240 funeral in Westminster Abbey, and Bloomberg's Leanne Garran's reporting from 0:06:47.320 --> 0:06:50.000 London will bring you live coverage of the Queen's funeral 0:06:50.160 --> 0:06:53.680 coming up on Monday. Right here on Bloomberg daybreak and 0:06:53.760 --> 0:06:56.160 ahead of the market open, Karen futures are moving higher, 0:06:56.320 --> 0:07:00.280 SMP futures are up sixteen point, STAW futures up six 0:07:00.640 --> 0:07:03.200 NASTAC futures on the rise by forty six points. The 0:07:03.200 --> 0:07:05.839 tenure treasury is up eleven thirty seconds yield three point 0:07:05.920 --> 0:07:09.640 three one Nimex crudes highed by one percent or ninety 0:07:09.680 --> 0:07:13.160 cents at eighty eight dollars sixty seven cents a barrel. 0:07:13.520 --> 0:07:16.760 Straight ahead, your latest local headlines plus the check of sports. 0:07:17.280 --> 0:07:25.000 This is Bloomberg six oh seven on Wall Street where 0:07:25.000 --> 0:07:27.440 at seventy one degrees in Central Park. I got an 0:07:27.480 --> 0:07:31.720 accident in Westport. It's on the southbound Connecticut Turnpike. Eggs 0:07:31.760 --> 0:07:34.360 at seventeen. Details coming up in traffic. First Michael Barr 0:07:34.400 --> 0:07:35.960 with what else is going on in New York and 0:07:36.000 --> 0:07:38.120 around the world. Michael, thank you very much. Nathan, the 0:07:38.160 --> 0:07:40.880 mother of three children who were found dead at Coney 0:07:40.920 --> 0:07:44.160 Island Beach could be charged today. The thirty year old woman, 0:07:44.240 --> 0:07:47.320 who has not been identified, was questioned by the NYPD 0:07:47.480 --> 0:07:49.920 for about six hours before she was taken to a 0:07:50.000 --> 0:07:54.560 hospital for a psychological evaluation. Yesterday, police found the bodies 0:07:54.600 --> 0:07:57.560 of seven year old Zachary Murdy, four year old la Llana, 0:07:57.920 --> 0:08:02.240 and three month old Oliver Bonderev. NYPD Chief of Department, 0:08:02.360 --> 0:08:05.520 Keith Corey says that Kenneth Corey I should say says 0:08:05.560 --> 0:08:07.760 that the thirty year old mother was found two miles 0:08:07.800 --> 0:08:10.240 down the boardwalk from her home in would appeared to 0:08:10.240 --> 0:08:13.760 be a catatonic state. She was wet, she was barefoot, um, 0:08:13.800 --> 0:08:17.080 and she was not um communicative to the officers. The 0:08:17.120 --> 0:08:19.840 community was left in shock over the deaths of the children, 0:08:20.160 --> 0:08:26.360 even to somebody take them to somebody, police say. Family 0:08:26.400 --> 0:08:29.440 members claimed the mother confessed that she drowned her children, 0:08:29.840 --> 0:08:33.679 but she has not said anything directly to investigators. Republican 0:08:33.720 --> 0:08:38.000 Senator Lindsey Graham plans to introduce legislation to restrict abortion nationally. 0:08:38.440 --> 0:08:41.240 The South Carolina senator has scheduled an announcement at the 0:08:41.280 --> 0:08:45.520 capitol for later today. Graham's action raises the profile of 0:08:45.559 --> 0:08:48.920 abortion rights as an issue for the midterm elections. A 0:08:48.920 --> 0:08:52.040 Connecticut jury us lately to begin hearing evidence today in 0:08:52.040 --> 0:08:56.160 a trial to decide how much money conspiracy theorist Alex 0:08:56.280 --> 0:08:59.760 Jones should pay relatives of the victims of the Sandy 0:08:59.760 --> 0:09:04.199 Hook Elementary School shooting for spreading a live massacre that 0:09:04.360 --> 0:09:07.120 left twenty six people dead was a hoax. It is 0:09:07.120 --> 0:09:10.319 the second such trialpha Jones, who was ordered by a 0:09:10.440 --> 0:09:13.440 Texas jury last month to pay nearly fifty million dollars 0:09:13.480 --> 0:09:16.760 to the parents of one of the slain children. Negotiations 0:09:16.800 --> 0:09:20.480 between the unions representing railroad workers and management have stalled. 0:09:21.040 --> 0:09:24.040 This means some am track writers could experience delays and 0:09:24.080 --> 0:09:28.160 good cause the rebounding economy to lose momentum. The deadline 0:09:28.160 --> 0:09:31.080 for a deal is just after midnight Friday, and last 0:09:31.160 --> 0:09:34.800 night's Emmys on NBC. HBO took home the top award 0:09:34.880 --> 0:09:37.640 for the sixth time in eight years, thanks to succession 0:09:37.720 --> 0:09:41.240 for Top Drama and the White Lotus for Best Limited Series. 0:09:41.440 --> 0:09:44.800 Apple's Ted Last So repeated as Best Comedy, and Buying 0:09:44.880 --> 0:09:48.199 Don Yoke made history as the first South Korean director 0:09:48.280 --> 0:09:51.640 to win for Best Drama for Squid Game since Kid Game. 0:09:51.960 --> 0:09:55.360 Footing nomination at the Emmy's people keep telling me like 0:09:55.800 --> 0:09:57.800 I made the history, But I don't think I made 0:09:57.920 --> 0:10:01.240 history by myself, because it was you who opened up 0:10:01.280 --> 0:10:03.719 the doors for skid Game. Embody here tonight at the 0:10:03.760 --> 0:10:06.200 Dammy's Global News twenty four hours a day on Area 0:10:06.200 --> 0:10:08.559 on Bloomberg Quick Take power by more than seven hundred 0:10:08.600 --> 0:10:10.880 journalists analysts more than a hundred twenty countries. I'm Michael 0:10:10.920 --> 0:10:17.600 bar this is Bloomberg Naken. Thank you, Michael. Six ten 0:10:17.640 --> 0:10:19.480 on Wall Street. Time for the Bloomberg Sports Update with 0:10:19.559 --> 0:10:21.599 johns Tsh. All right, Nathan Mets back home from a 0:10:21.720 --> 0:10:24.079 road trip that saw the win two of three in Pittsburgh, 0:10:24.080 --> 0:10:26.720 two or three in Miami. Now facing another subpar team, 0:10:26.760 --> 0:10:29.880 the Cubs, Chicago got the Chris Bassett pair of early 0:10:29.920 --> 0:10:32.199 home runs. Bassett gone on the fourth endy having allowed 0:10:32.240 --> 0:10:35.120 five runs. The Cubs won five to two, but Atlanta 0:10:35.200 --> 0:10:37.360 lost in San Francisco three to two. That's the Braves 0:10:37.360 --> 0:10:38.959 third loss in a row, and the Mets remain a 0:10:39.040 --> 0:10:41.520 game and a half ahead. Yankees and Red sax tonight 0:10:41.559 --> 0:10:43.800 in Boston Garett Cole on the Mountain. The two teams 0:10:43.800 --> 0:10:46.960 behind the Yanks met Toronto on a bobus Yette Eighthenny 0:10:46.960 --> 0:10:48.719 in Homer top Tampa Bay three to two. So the 0:10:48.760 --> 0:10:50.640 Blue Jays now in the second place, five and a 0:10:50.640 --> 0:10:53.559 half games behind the Yanks, and the Rays trail by six. 0:10:53.679 --> 0:10:57.480 The first NFL Sunday saw three teams, Cleveland, Pittsburgh, and 0:10:57.520 --> 0:10:59.760 New Orleans all win games with last second field goals 0:10:59.800 --> 0:11:03.400 of over fifty yards. Last night in Seattle. Denver tried 0:11:03.440 --> 0:11:05.480 to win with a sixty four yard field goal, it 0:11:05.600 --> 0:11:09.000 missed Seahawks one seventeen sixteen. The Broncos had time to 0:11:09.000 --> 0:11:10.720 try and get a first down, moved closer, but they 0:11:10.760 --> 0:11:13.840 elected to try that long kick, so Russell Wilson loses 0:11:14.280 --> 0:11:17.240 in his return to Seattle his first game with Denver. 0:11:17.360 --> 0:11:20.559 The Jets Sunday bring their thirteen game month of September, 0:11:20.600 --> 0:11:24.199 losing straight to Cleveland. Jets offense struggled in the loss 0:11:24.200 --> 0:11:27.080 of Baltimore, but coach Rob Sala feels it will improve 0:11:27.120 --> 0:11:29.520 those little errors on the offense. Was was having the 0:11:29.559 --> 0:11:33.319 first half stop happening. It's going to be explosive, and 0:11:33.360 --> 0:11:35.040 then it carries out in the second half. You're you're 0:11:35.080 --> 0:11:37.160 just gonna feel it. Uh and and in a way 0:11:37.360 --> 0:11:39.679 it does just click where you're just stacking up there 0:11:39.720 --> 0:11:42.840 after day after day and um and it's really really 0:11:42.840 --> 0:11:45.760 cool when it does happen because it just absolutely pops 0:11:45.800 --> 0:11:47.720 off the table. Jet Sunday takes of the Browns team 0:11:47.720 --> 0:11:49.240 that just want its opener for the first time. It's 0:11:49.240 --> 0:11:51.520 in two thousand four. Giants got their first in two 0:11:51.559 --> 0:11:55.080 thousand sixteen. This Sunday Day host Carolina, John Stash Howard, 0:11:55.120 --> 0:11:58.679 Bloomberg Sports, Nathan all Right, John, thanks, Futures moving higher 0:11:58.720 --> 0:12:01.600 ahead of inflation Ada that we'll talk about next with 0:12:01.720 --> 0:12:08.920 Bloomberg's Michael McKee. This is Bloomberg Bloomberg day Break, brought 0:12:08.920 --> 0:12:11.600 to you by the Jewish Communal Fund j CFS. Donor 0:12:11.600 --> 0:12:14.120 advised fund is the smart choice to manage your philanthropy, 0:12:14.240 --> 0:12:17.439 especially in times of crisis. Make your giving impactful. Visit 0:12:17.520 --> 0:12:23.440 j c F n Y dot org. Markets headlines and 0:12:23.600 --> 0:12:26.880 breaking news twenty four hours a day at Bloomberg dot com, 0:12:27.000 --> 0:12:31.199 the Bloomberg Business aland at Bloomberg Quicktape. He's a Bloomberg 0:12:31.280 --> 0:12:39.760 Business lash and I'm Karen Moscow and we did at 0:12:39.760 --> 0:12:42.840 this headline crossing the Bloomberg Buyer, also known as Bear 0:12:42.920 --> 0:12:45.920 in the US, quietly starting to search for a successor 0:12:46.000 --> 0:12:49.320 to chief executive officer of Werner Baumann, raising the prospect 0:12:49.320 --> 0:12:51.840 of an early departure this according to people familiar with 0:12:51.880 --> 0:12:54.880 the matter. Futures, meanwhile, are on the rise this morning, 0:12:54.880 --> 0:12:57.719 with SMP futures of about nineteen points down futures of 0:12:57.760 --> 0:13:00.680 a hundred forty three, and NASDACK futures of fifty six 0:13:01.040 --> 0:13:03.640 ten year Treasury up ten thirty seconds year three point 0:13:03.720 --> 0:13:05.800 three one percent the yield, then the two year three 0:13:05.840 --> 0:13:09.120 point five two percent. NIMEX screwed oil is up one 0:13:09.120 --> 0:13:11.240 point two percent of a dollar two at eighty eight 0:13:11.280 --> 0:13:14.719 dollars eighty cents of barrel comex schoold is down a 0:13:14.760 --> 0:13:16.840 tenth of a percent, down two dollars forty cents at 0:13:16.880 --> 0:13:20.880 seventy twenty announced the Euro one one six nine against 0:13:20.880 --> 0:13:23.400 the dollar, British pound one point one seven oh nine 0:13:23.640 --> 0:13:26.199 and the end one two point one seven And look 0:13:26.240 --> 0:13:28.720 at it bit coin this morning, little changed at twenty 0:13:28.800 --> 0:13:32.840 two thousand, three ninety dollars. And as a Bloomberg business flash. 0:13:32.880 --> 0:13:35.040 Now here's Michael Barr with Moore on what's going on 0:13:35.120 --> 0:13:37.760 around the world. Michael Karen, thank you very much. The 0:13:37.800 --> 0:13:41.240 coffin of Queen Elizabeth the Second both had from Edinburgh, 0:13:41.320 --> 0:13:45.000 Scotland to London. The Queen will Lion state in Westminster 0:13:45.120 --> 0:13:48.560 Hall for four days in London. More than thirty people 0:13:48.600 --> 0:13:51.720 associated with former President Trump and efforts to influence the 0:13:52.360 --> 0:13:56.920 election results have received federal grand jury subpoenas. Meanwhile, Trump 0:13:57.000 --> 0:14:00.680 and the Department of Justice agreed that Judge Raymond Deery 0:14:00.760 --> 0:14:04.040 would be a suitable choice for an outside special master 0:14:04.440 --> 0:14:06.920 to review the documents taken from Trump's Marrow Law go 0:14:07.040 --> 0:14:10.200 Home as part of an investigation into his handling of 0:14:10.280 --> 0:14:14.240 government records. In Monday Night football, the Seahawks upset the 0:14:14.240 --> 0:14:17.520 Broncos seventeen sixteen. In baseball, the Mets lost to the 0:14:17.559 --> 0:14:20.760 Cubs five to The Giants. Won Global News twenty four 0:14:20.760 --> 0:14:23.960 hours a day on air and on Bloomberg Quicktake, powered 0:14:24.000 --> 0:14:26.880 by more than hundred journalists and analysts more than a 0:14:26.920 --> 0:14:31.200 hundred twenty countries. Michael bar and this is Bloomberg. Nathan Okay, Michael, 0:14:31.240 --> 0:14:33.480 thanks at his six nineteen on Wall Street Live from 0:14:33.520 --> 0:14:37.400 the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and 0:14:37.520 --> 0:14:40.680 markets are looking for a clearer picture on where things 0:14:40.760 --> 0:14:43.880 stand in the federal reserves fight against inflation. When we 0:14:43.920 --> 0:14:47.840 get the August consumer price index in just about two 0:14:47.840 --> 0:14:50.920 hours and ten minutes. Here ahead of that with us 0:14:51.000 --> 0:14:55.120 is Michael McKee, Bloomberg Economics and Policy correspondent. So Mike 0:14:55.160 --> 0:14:58.520 walk us through what economists we've surveyed are expecting we 0:14:58.600 --> 0:15:01.760 we are going to hear when those consumer prices come 0:15:01.800 --> 0:15:04.480 down at eight thirty Wall Street Time. Well, the number 0:15:04.480 --> 0:15:07.400 that a lot of Americans will focus on its headline inflation, 0:15:07.440 --> 0:15:10.280 which is expected to go down a tenth of a percent, 0:15:10.400 --> 0:15:13.400 and that would drag me year over year rate down 0:15:13.440 --> 0:15:16.040 from eight and a half percent to eight point one percent. 0:15:16.200 --> 0:15:21.120 Later this morning, President Biden has a speech some remarks 0:15:21.200 --> 0:15:25.160 on the economy and on the Inflation Reduction Act that 0:15:25.240 --> 0:15:27.560 they passed, and so no doubt he will be citing 0:15:27.600 --> 0:15:32.120 that the core rate, however, is expected to be up 0:15:32.120 --> 0:15:37.920 about three tents, which would be a reasonably small increase 0:15:38.000 --> 0:15:41.280 given what we've seen before, But because of base effects, 0:15:41.560 --> 0:15:44.600 the year over year rate goes up to five point 0:15:44.640 --> 0:15:48.120 one percent from four point nine. So on that basis, 0:15:48.760 --> 0:15:52.080 it won't be quite as good news. The question that 0:15:52.200 --> 0:15:56.120 everybody who is in the economics profession and over the 0:15:56.120 --> 0:15:57.840 fete is going to be asking is not so much 0:15:57.840 --> 0:16:03.240 what the the numbers are, what the underlying inflation dynamics are, 0:16:03.360 --> 0:16:06.280 what's rising in price, what's falling in price? What does 0:16:06.280 --> 0:16:08.760 that tell us about what's going to happen in the future. Well, 0:16:08.800 --> 0:16:12.920 what our economists expecting when it comes to those underlying dynamics, Mike, 0:16:12.920 --> 0:16:15.520 what are some of the biggest drivers potentially we could 0:16:15.600 --> 0:16:20.120 see for core inflation. Well, the good news side is 0:16:20.240 --> 0:16:23.720 we are expecting used car prices to fall. They've dropped 0:16:23.800 --> 0:16:26.920 significantly on a wholesale level, so the hope is that 0:16:26.960 --> 0:16:31.040 translates into the retail level as well. Apparel. There's been 0:16:31.040 --> 0:16:34.720 a story that retailers stocked up too much on clothing 0:16:34.840 --> 0:16:36.640 because so much of it was jammed up in the 0:16:36.680 --> 0:16:39.080 pipeline and then it came through, so they have to 0:16:39.120 --> 0:16:41.440 discount to get rid of some of their inventories. So 0:16:41.560 --> 0:16:44.880 we might see some declines there. Of course, on the 0:16:44.960 --> 0:16:48.640 headline basis, gasoline prices, the big driver of inflation, has 0:16:48.680 --> 0:16:52.480 followed a lot. On the bad news side, housing prices 0:16:52.680 --> 0:16:55.680 are still going to be rising in the CPI because 0:16:55.720 --> 0:16:58.680 it takes a long time for housing prices in that 0:16:58.760 --> 0:17:01.680 index to change. You don't sell a house or buy 0:17:01.680 --> 0:17:04.719 a house every day the way you buy gasoline, and 0:17:04.800 --> 0:17:08.040 so the rise in home prices we've seen the last 0:17:08.119 --> 0:17:09.840 couple of years is still going to be with us. 0:17:09.880 --> 0:17:12.920 And housing prices are going to be the biggest measure 0:17:12.960 --> 0:17:17.520 of the core because they are thirty percent of the CPI, 0:17:18.000 --> 0:17:22.359 and so that's a significant upward pressure. Yeah, given how 0:17:22.440 --> 0:17:25.760 much weight of housing prices do have on core inflation, 0:17:25.880 --> 0:17:28.680 does that sort of lower the possibility that we could 0:17:28.680 --> 0:17:32.840 see a downside surprise on core inflation. That's one reason 0:17:32.880 --> 0:17:35.840 a lot of people aren't expecting a downside surprise on 0:17:35.960 --> 0:17:38.920 the core. Although there are a number of categories that 0:17:39.240 --> 0:17:43.120 fall under that dreaded t word transitory, you're not supposed 0:17:43.119 --> 0:17:45.679 to we're not supposed to say that we're supposed to 0:17:45.680 --> 0:17:49.240 retire it according to example, but things that could fall 0:17:49.560 --> 0:17:54.480 and aren't tracked closely enough to get a sense of 0:17:54.840 --> 0:17:57.760 where they are on a month to month basis, things 0:17:57.800 --> 0:18:01.600 like airfares and hotels. We know that the prices have 0:18:01.680 --> 0:18:04.480 gone down, but enough to make a difference. Uh, that's 0:18:04.520 --> 0:18:08.760 a key question. One wild card is UH the seasonal 0:18:08.920 --> 0:18:12.720 impact of college is reopening, because there is a sense 0:18:12.800 --> 0:18:16.639 that tuition prices went up, and if that's the case, 0:18:17.040 --> 0:18:20.320 then that could put upward pressure on the core as well. 0:18:20.359 --> 0:18:24.200 One of the chances that we could see UH consumer 0:18:24.280 --> 0:18:29.560 price index that lowers the risk of a another jumbo 0:18:29.640 --> 0:18:31.720 sized rate hike from the FED. I only asked that 0:18:31.800 --> 0:18:34.639 might because we've heard from so many FED speakers ahead 0:18:34.680 --> 0:18:37.760 of this reading that really seemed to be leaning into 0:18:37.800 --> 0:18:40.480 this idea that they're open to another seventy five basis 0:18:40.520 --> 0:18:42.440 point move. We got about a minute left here. They've 0:18:42.440 --> 0:18:45.959 been talking about that for quite some time. JAYL went 0:18:46.000 --> 0:18:49.000 to Jackson Hole and and suggested that, and then everybody 0:18:49.000 --> 0:18:51.800 who spoke after him up to the quiet period beginning 0:18:51.840 --> 0:18:55.840 last Saturday seemed to endorse the idea of a strong 0:18:56.000 --> 0:18:58.159 rate move. The feeling is that if they're going to 0:18:58.240 --> 0:19:01.600 get to a restrict level just above the neutral rate, 0:19:01.680 --> 0:19:04.439 maybe four percent or a little below, they might as 0:19:04.440 --> 0:19:06.800 well do it quickly, get it over with, get there, 0:19:06.960 --> 0:19:09.200 and then wait and see what happens with the data. 0:19:09.280 --> 0:19:11.400 So that seems to be the plan. And I don't 0:19:11.400 --> 0:19:14.920 think anything that happens in the CPI report that's out 0:19:14.960 --> 0:19:18.080 today is going to change that. They'll watch for data 0:19:18.119 --> 0:19:20.720 down the road. Thanks for this, Mike, great having on 0:19:20.800 --> 0:19:22.919 with us again this morning ahead of August cp I 0:19:23.000 --> 0:19:25.640 do out eight thirty am Wall Street time. Of course, 0:19:25.680 --> 0:19:29.000 we will have full coverage for you here on Bloomberg Radio. 0:19:29.040 --> 0:19:34.320 Michael McKee, Economics and Policy correspondent for Bloomberg Radio and Television. 0:19:34.760 --> 0:19:37.600 Just reiterating the red headline across the Bloomberg terminal. A 0:19:37.640 --> 0:19:40.800 few minutes ago, Buyer a k A. Bayer, the drug maker, 0:19:41.200 --> 0:19:45.440 quietly starting a search for a successor to cel Werner Bauman, 0:19:45.560 --> 0:19:49.080 according to people familiar with the matter, raising the prospect 0:19:49.080 --> 0:19:52.200 that Bauman could leave before his contract expires in April. 0:19:53.840 --> 0:19:58.119 Buyer shares are higher by nearly two percent. In Frankfurt, 0:19:58.480 --> 0:20:02.560 SMP futures are higher by eighteen points. On Wall Street, 0:20:03.080 --> 0:20:08.399 You're listening to Bloomberg day Break Bloomberg eleven three oh 0:20:08.400 --> 0:20:10.880 weather any showers and storms in by midday today. We'll 0:20:10.880 --> 0:20:13.560 get up to the low eighties this afternoon, sunshine, low 0:20:13.640 --> 0:20:18.040 eighties tomorrow, sunny, mid seventies on Thursday. Right now, seventy 0:20:18.119 --> 0:20:28.080 one in Central Park, broadcasting live from the Bloomberg Interactive 0:20:28.080 --> 0:20:31.960 Broker Studio in New York. Bloomberg E Living Free to Washington, 0:20:32.040 --> 0:20:35.880 d C, Bloomberg one to Boston, Bloomberg on A six 0:20:35.960 --> 0:20:39.159 one to San Francisco, Bloomberg N sixty to the country, 0:20:39.240 --> 0:20:42.200 Sirius XM Cho one nine teen and around the blooe 0:20:42.359 --> 0:20:46.359 the Bloomberg Business and Bloomberg Radio dot Com. This is 0:20:46.359 --> 0:20:55.040 Bloomberg Daybreak. Damn. It's six thirty on Wall Street. Good morning, 0:20:55.040 --> 0:20:57.800 I'm Nathan Hagar and I'm Karen Moscow. We are just 0:20:57.880 --> 0:21:00.439 about three hours away from the open of US trading. 0:21:00.480 --> 0:21:02.359 Time for the five things that you need to notice 0:21:02.400 --> 0:21:06.119 start your day. Brought to you by Interactive Brokers. Interactive 0:21:06.160 --> 0:21:09.480 Brokers Simple IBKR Global Trader app deposit in your local 0:21:09.520 --> 0:21:12.040 currency and trade stocks in the US, Europe and Asia. 0:21:12.320 --> 0:21:15.080 Start your free trial at ibk r dot com Slash 0:21:15.080 --> 0:21:18.680 Global Trader. First, US futures are higher ahead of the 0:21:18.760 --> 0:21:21.320 latest data on inflation, we get a reading on US 0:21:21.400 --> 0:21:24.280 consumer prices for August at eight thirty am. Wall Street 0:21:24.280 --> 0:21:27.800 Time forecast call for inflation to ease to an annual 0:21:27.880 --> 0:21:30.360 rate of eight point one percent. Here with Moore as 0:21:30.359 --> 0:21:35.160 Bloomberg Economics corresponded Michael McKee. Falling energy prices likely held 0:21:35.160 --> 0:21:38.280 down headline inflation in August, but higher costs for housing 0:21:38.280 --> 0:21:41.360 and education our forecast to have pushed core inflation higher. 0:21:41.840 --> 0:21:44.320 Beneficials have all but said they're locked in on a 0:21:44.359 --> 0:21:47.320 three quarters percentage point increase for interest rates next week. 0:21:47.800 --> 0:21:50.800 Higher core rate won't affect their thinking, but it will 0:21:50.840 --> 0:21:53.720 serve as a reminder the fight against inflation is far 0:21:53.800 --> 0:21:57.399 from over. Michael McKee Bloomberg Daybreak, alright, Mike, thanks. Global 0:21:57.440 --> 0:21:59.960 stocks are slightly higher ahead of that CPI report. Stock 0:22:00.040 --> 0:22:03.439 in Europe and Asia are posting moderate gains. SMP futures 0:22:03.440 --> 0:22:06.480 are up about a half percent. Well elsewhere on Wall Street, 0:22:06.560 --> 0:22:09.600 Nathan John cuts are in focus this morning. Goldman's actually 0:22:09.600 --> 0:22:12.000 is going ahead with its biggest round of cutback since 0:22:12.040 --> 0:22:14.760 it started the pandemic. Sources tell us the bank plans 0:22:14.760 --> 0:22:18.600 to eliminate several hundred roles starting this month. Bloombergh Sally 0:22:18.680 --> 0:22:21.840 Bagwell says the move cut signal a chill setting in 0:22:21.920 --> 0:22:26.160