1 00:00:00,480 --> 00:00:03,160 Speaker 1: Live from the Bloomberg and director Berger Studios. This is 2 00:00:03,160 --> 00:00:06,800 Speaker 1: Bloomberg day Break for Monday, August twenty nine two. Coming 3 00:00:06,840 --> 00:00:10,719 Speaker 1: up this hour, hockeysh Federal Reserve continues to weigh on markets. 4 00:00:10,800 --> 00:00:13,240 Speaker 1: Global stock start the week at a one month low. 5 00:00:13,440 --> 00:00:16,440 Speaker 1: The yield on two year treasuries hit a fifteen year high. 6 00:00:16,560 --> 00:00:19,400 Speaker 1: Congress Way, He's in with Elizabeth Moren saying the Fed 7 00:00:19,480 --> 00:00:22,320 Speaker 1: will tip the economy into recession and jobs are in 8 00:00:22,400 --> 00:00:25,959 Speaker 1: focused as Wall Street braces for Friday's payrolls report. NASA's 9 00:00:25,960 --> 00:00:28,920 Speaker 1: on Man Artemis one space capsule has expected to blast 10 00:00:28,960 --> 00:00:32,120 Speaker 1: off to the moon. Plus UN Nuclear Watchdog monitors are 11 00:00:32,120 --> 00:00:34,680 Speaker 1: on their way to Ukraine's Bower Plant. I'm Michael Barr 12 00:00:34,760 --> 00:00:37,080 Speaker 1: more Ahead, I'm John Stashtower. In sports, the Meds and 13 00:00:37,120 --> 00:00:39,800 Speaker 1: the Yankees blost the Jets beat the Giants. Rory mclroy 14 00:00:39,840 --> 00:00:44,720 Speaker 1: won the golf in the US Open. Begins today. That's 15 00:00:44,760 --> 00:00:48,720 Speaker 1: all Strady ahead on Bloomberg Daybreak on Bloomberg eleven Free 16 00:00:48,720 --> 00:00:51,960 Speaker 1: on New York, Bloomberg nineteen nine one, Washington, d C, 17 00:00:52,440 --> 00:00:56,040 Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and 18 00:00:56,120 --> 00:01:00,240 Speaker 1: Francisco Sirius XM one nineteen and around the world on 19 00:01:00,400 --> 00:01:03,680 Speaker 1: Bloomberg Radio dot com and via the Bloomberg Business App. 20 00:01:07,480 --> 00:01:10,680 Speaker 1: Good morning, I'm Nathan Hagar and I'm Karen Moscow. US 21 00:01:10,760 --> 00:01:13,759 Speaker 1: future is lower this morning, led by technology. Where coming 22 00:01:13,800 --> 00:01:15,160 Speaker 1: up to find blow one on Wall Street and we 23 00:01:15,240 --> 00:01:17,560 Speaker 1: checked the markets every fifteen minutes throughout the trading day 24 00:01:17,720 --> 00:01:19,880 Speaker 1: on Bloomberg. Right now, U S and P futures are 25 00:01:19,920 --> 00:01:22,840 Speaker 1: down forty one points down, futures down two hundred seventy 26 00:01:22,840 --> 00:01:26,280 Speaker 1: four and NASTACK futures down one hundred sixty three. That's 27 00:01:26,319 --> 00:01:28,880 Speaker 1: down one point three percent. The docks in Germany's down 28 00:01:28,920 --> 00:01:31,639 Speaker 1: one and a half percent ten. Your treasury down nineteen 29 00:01:31,720 --> 00:01:35,240 Speaker 1: thirty seconds here three point one percent, Nathan, Karen. We 30 00:01:35,240 --> 00:01:38,000 Speaker 1: are still feeling the effects of a hawk is J. Powell. 31 00:01:38,040 --> 00:01:40,360 Speaker 1: This morning, Global stocks are at a one month low. 32 00:01:40,680 --> 00:01:42,320 Speaker 1: The last time we saw the yield on the two 33 00:01:42,400 --> 00:01:45,440 Speaker 1: year treasury at this level was two thousand seven. This 34 00:01:45,480 --> 00:01:48,200 Speaker 1: morning slump follows the worst day for US stocks since 35 00:01:48,280 --> 00:01:51,880 Speaker 1: June thirteen. The major indexes all fell at least three percent, 36 00:01:51,960 --> 00:01:55,560 Speaker 1: with the NASTAC plunging almost four percent. The catalyst for 37 00:01:55,600 --> 00:01:58,720 Speaker 1: the sell off, Chairman Powell signaling interest rates will stay 38 00:01:58,800 --> 00:02:02,840 Speaker 1: higher for some time. Katrina L senior economist at Moodies Analytics, 39 00:02:02,880 --> 00:02:06,240 Speaker 1: says the fed shairs comments have broad implications. It makes 40 00:02:06,280 --> 00:02:09,160 Speaker 1: sense to say that US recession odds have also increased 41 00:02:09,200 --> 00:02:12,160 Speaker 1: because that lays a sharp focus on trying to bring 42 00:02:12,200 --> 00:02:15,440 Speaker 1: down inflation is really the priority of the FED at 43 00:02:15,440 --> 00:02:17,960 Speaker 1: this point, and so as a consequence of that, I mean, 44 00:02:18,000 --> 00:02:21,519 Speaker 1: domestic demand just really has to to come down. Katrina 45 00:02:21,639 --> 00:02:24,400 Speaker 1: L with Moody's Analytics says the Feds also uncomfortable with 46 00:02:24,480 --> 00:02:27,160 Speaker 1: the current tightness in the labor market. One point to 47 00:02:27,400 --> 00:02:31,600 Speaker 1: trillion dollars in market value was wiped out on Friday. Well, Nathan, 48 00:02:31,639 --> 00:02:34,480 Speaker 1: the strong message by j Powell and the Fed last week, 49 00:02:34,520 --> 00:02:37,800 Speaker 1: as some on Capitol Hill pushing back. Senator Elizabeth Warren 50 00:02:37,919 --> 00:02:40,720 Speaker 1: says she's worried the Central Bank will tip the US 51 00:02:40,800 --> 00:02:45,160 Speaker 1: economy into recession. Do you know what's worth than high 52 00:02:45,240 --> 00:02:50,360 Speaker 1: prices and a strong economy is high prices and millions 53 00:02:50,360 --> 00:02:53,720 Speaker 1: of people out of work. I'm very worried that the 54 00:02:53,760 --> 00:02:57,400 Speaker 1: Fed is going to tip this economy into recession. Senator 55 00:02:57,400 --> 00:03:00,919 Speaker 1: Elizabeth warrenel CNN she does not, but eve higher interest 56 00:03:01,000 --> 00:03:04,560 Speaker 1: rates will curb current inflationary pressures well j Pallen. The 57 00:03:04,600 --> 00:03:08,160 Speaker 1: Fed will have another key economic report to evaluate this week, Karen. 58 00:03:08,240 --> 00:03:11,000 Speaker 1: On Friday, we get the August jobs report here with 59 00:03:11,080 --> 00:03:14,519 Speaker 1: the preview is Bloomberg's Vinny Dell Judaice Economists a US 60 00:03:14,560 --> 00:03:17,520 Speaker 1: payroll growth moderated after scoring a July gain, and more 61 00:03:17,560 --> 00:03:21,160 Speaker 1: than a half million technology firms have been trimming payrolls 62 00:03:21,200 --> 00:03:25,600 Speaker 1: and freezing hiring, but job openings continuous historic KIS. The 63 00:03:25,680 --> 00:03:28,320 Speaker 1: US unemployment rate is also one of the lowest in decades. 64 00:03:28,639 --> 00:03:31,959 Speaker 1: More numbers. This month's Conference board consumer confidence in DEX 65 00:03:32,000 --> 00:03:35,200 Speaker 1: couldn't prove thanks to lower gasoline prices, while i SM 66 00:03:35,280 --> 00:03:39,120 Speaker 1: data may show modest factory games. Then Eat Judace Bloomberg 67 00:03:39,200 --> 00:03:41,920 Speaker 1: Day Break, Danny, thank you the Wall Street Sell office 68 00:03:41,960 --> 00:03:44,880 Speaker 1: spreading overseas this Monday morning, and we begin our team 69 00:03:44,920 --> 00:03:48,920 Speaker 1: coverage with Bloomberg's Danny Burger live in London. Good morning, Danny, 70 00:03:49,000 --> 00:03:51,720 Speaker 1: Good morning Karen. Yea. It seems risk assets have finally 71 00:03:51,760 --> 00:03:54,560 Speaker 1: gotten the message and from global central bankers that they 72 00:03:54,600 --> 00:03:57,480 Speaker 1: can't be complacent on inflation and not of course will 73 00:03:57,600 --> 00:04:01,320 Speaker 1: require more restrictive policy for some time. So stocks that 74 00:04:01,360 --> 00:04:04,160 Speaker 1: were perhaps expecting a powerble pivot. It means they sell 75 00:04:04,200 --> 00:04:07,600 Speaker 1: off for another trading day. US features those are weaker again, 76 00:04:07,960 --> 00:04:10,120 Speaker 1: but it's also painful. In Europe, we had plenty of 77 00:04:10,160 --> 00:04:13,560 Speaker 1: ECB speakers over the weekend, from sh Novel to Causacks 78 00:04:13,560 --> 00:04:17,080 Speaker 1: to ren talking about the need to act forcefully. Despite 79 00:04:17,120 --> 00:04:19,000 Speaker 1: that that's not giving a lift to the euro. Euro 80 00:04:19,080 --> 00:04:23,320 Speaker 1: trades below parody and across the globe, bonds are under pressure, 81 00:04:23,560 --> 00:04:26,560 Speaker 1: selling off. The one spot of relief UK markets, which 82 00:04:26,560 --> 00:04:29,360 Speaker 1: are closed for the day for UK Bank holiday. Live 83 00:04:29,400 --> 00:04:31,960 Speaker 1: in London, I'm Danny Burger, Bloomberg day breaking. That's what 84 00:04:32,080 --> 00:04:34,599 Speaker 1: counts for relief here, Thank you, Danny. Stocks fell in 85 00:04:34,640 --> 00:04:37,520 Speaker 1: Asia overnight as well. Japan's NIEK led declines with a 86 00:04:37,600 --> 00:04:39,479 Speaker 1: drop of more than two and a half percent. We 87 00:04:39,480 --> 00:04:43,239 Speaker 1: get the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliet, 88 00:04:43,360 --> 00:04:45,039 Speaker 1: Good morning Nathan and Karen. The m s c I 89 00:04:45,080 --> 00:04:47,880 Speaker 1: Asia Pacific Index slumped as much as two point three percent, 90 00:04:48,000 --> 00:04:51,400 Speaker 1: the most since June, with tech, financials and industrials the 91 00:04:51,400 --> 00:04:54,479 Speaker 1: worst performing. Sick is Key equity gauges in Japan and 92 00:04:54,520 --> 00:04:57,960 Speaker 1: Taiwan led regional losses sliding close to three percent. H 93 00:04:58,000 --> 00:05:00,360 Speaker 1: The p BOS said the on show you unfit stronger 94 00:05:00,400 --> 00:05:03,080 Speaker 1: for a fourth session as the Off Show slid through 95 00:05:03,160 --> 00:05:05,000 Speaker 1: six point nine to the dollar for the first time 96 00:05:05,000 --> 00:05:07,359 Speaker 1: in two years, and South Korea is One fell the 97 00:05:07,400 --> 00:05:09,880 Speaker 1: most in eleven weeks to hold it its lowest level 98 00:05:09,920 --> 00:05:13,200 Speaker 1: since April two thousand and nine. In Singapore, Juliette Sale 99 00:05:13,240 --> 00:05:16,159 Speaker 1: Bloomber Daybreak, Actually I thank you a while Staying in Asia, 100 00:05:16,240 --> 00:05:19,640 Speaker 1: economists are turning more bearish on China. According to Bloomberg's 101 00:05:19,680 --> 00:05:22,960 Speaker 1: latest quarterly survey, China's economy is now projected to grow 102 00:05:23,080 --> 00:05:25,840 Speaker 1: just three and a half percent this year. That's down 103 00:05:25,880 --> 00:05:29,360 Speaker 1: from a previous forecast at three point nine percent. Economisty 104 00:05:29,520 --> 00:05:32,960 Speaker 1: lingering risks as turmoil and China's property market and COVID 105 00:05:32,960 --> 00:05:36,159 Speaker 1: outbreaks persist. And one other note out of Asia this morning, Karen. 106 00:05:36,200 --> 00:05:39,359 Speaker 1: Despite China and the US reaching a preliminary deal to 107 00:05:39,400 --> 00:05:43,120 Speaker 1: resolve a standoff over audits, Goldman Sachs says markets are 108 00:05:43,160 --> 00:05:45,919 Speaker 1: still pricing in a fifty percent chance of Chinese companies 109 00:05:45,960 --> 00:05:49,480 Speaker 1: being delisted from US exchanges. Goldman says the risk of 110 00:05:49,560 --> 00:05:52,200 Speaker 1: delisting has come down, but more still needs to be 111 00:05:52,279 --> 00:05:56,000 Speaker 1: done as execution risk remains well Nathan. While there is 112 00:05:56,080 --> 00:05:59,440 Speaker 1: uncertainty about the future of Chinese stocks, in the US, 113 00:05:59,680 --> 00:06:02,400 Speaker 1: mean stocks are here to stay, according to our latest 114 00:06:02,440 --> 00:06:06,039 Speaker 1: survey we get the details from Bloomberg's Jeff Bellinger, Wall 115 00:06:06,080 --> 00:06:09,920 Speaker 1: Street says stocks like Game Stop, AMC Entertainment, and bed 116 00:06:10,000 --> 00:06:13,280 Speaker 1: Beth and Beyond are here to stay. Nearly two thirds 117 00:06:13,320 --> 00:06:15,880 Speaker 1: of the more than five hundred respondents in the latest 118 00:06:16,040 --> 00:06:18,960 Speaker 1: M Live Pulse survey expect some version of the meme 119 00:06:19,000 --> 00:06:23,120 Speaker 1: stock mania to stick around. Speculating in meme stocks has 120 00:06:23,120 --> 00:06:26,400 Speaker 1: been painful this year. A basket of thirty seven retail 121 00:06:26,480 --> 00:06:30,200 Speaker 1: trader favorites tracked by Bloomberg is down nearly forty percent 122 00:06:30,440 --> 00:06:33,919 Speaker 1: in twenty two. The M Live Pulse survey found that 123 00:06:33,960 --> 00:06:37,039 Speaker 1: while the meme stock phenomenon is likely to stick around, 124 00:06:37,360 --> 00:06:40,200 Speaker 1: sixty nine percent said it is unlikely to see the 125 00:06:40,240 --> 00:06:44,279 Speaker 1: trading volumes that did during its January twenty twenty one high, 126 00:06:44,760 --> 00:06:47,159 Speaker 1: nor are such stocks seen as a good bet for 127 00:06:47,200 --> 00:06:51,320 Speaker 1: the remainder of the year. Jeff Bellinger, Bloomberg debreak all right, Jeff, 128 00:06:51,360 --> 00:06:54,400 Speaker 1: and we're watching Bitcoin follows stocks lower this morning. The 129 00:06:54,480 --> 00:06:58,200 Speaker 1: digital tokens trading below twenty thousand is concerns about FED 130 00:06:58,240 --> 00:07:01,559 Speaker 1: policy way on seniment, But for this weekend, Bitcoin hadn't 131 00:07:01,560 --> 00:07:04,680 Speaker 1: been below twenty thousand since July fourteenth, That even crossed 132 00:07:04,720 --> 00:07:08,600 Speaker 1: above twenty five thousand earlier this month. Right now, bitcoins 133 00:07:08,600 --> 00:07:12,840 Speaker 1: trading at nineteen eight hundred dollars. Futures are moving lower 134 00:07:12,920 --> 00:07:16,200 Speaker 1: as well. And straight ahead, we have your latest local 135 00:07:16,240 --> 00:07:23,560 Speaker 1: headlines sand a check of sports. This is Bloomberg five 136 00:07:23,560 --> 00:07:25,920 Speaker 1: oh seven on Wall Street where seventy five degrees in 137 00:07:26,000 --> 00:07:29,800 Speaker 1: Central Park westbound cross Bronx Expressway is closed between White 138 00:07:29,840 --> 00:07:33,320 Speaker 1: Plains Road and Bronx Harbord Parkway for an accident investigation. 139 00:07:33,320 --> 00:07:35,880 Speaker 1: We'll tell you more in Traffic. First, Michael Barr has 140 00:07:35,920 --> 00:07:37,560 Speaker 1: more on what else is going on in New York 141 00:07:37,600 --> 00:07:40,080 Speaker 1: and around the world. Good morning, Michael, Good morning Nathan. 142 00:07:40,240 --> 00:07:44,080 Speaker 1: A fuel leak interrupted NASA's launch countdown for its New 143 00:07:44,320 --> 00:07:47,960 Speaker 1: Moon rocket early this morning, reappearing in the same place 144 00:07:48,040 --> 00:07:51,160 Speaker 1: that saw Sea Page during a dress rehearsal back in 145 00:07:51,280 --> 00:07:55,200 Speaker 1: the spring. Launch controllers halted the tanking operation, which already 146 00:07:55,240 --> 00:07:58,040 Speaker 1: was running an hour late because of thunderstorms off shore. 147 00:07:58,600 --> 00:08:01,320 Speaker 1: As for the excitement of out the mission, Taylor Leonard 148 00:08:01,640 --> 00:08:04,320 Speaker 1: helped build part of the moon rocket that will eventually 149 00:08:04,320 --> 00:08:07,000 Speaker 1: put Americans back on the Moon. I'm very pumped. So 150 00:08:07,080 --> 00:08:08,720 Speaker 1: I was actually a part of the test team that 151 00:08:08,840 --> 00:08:13,200 Speaker 1: tested the functionality of the racketed avionics. So it's super exciting. 152 00:08:13,440 --> 00:08:16,400 Speaker 1: Um like seeing your work right here, you know, it's 153 00:08:16,400 --> 00:08:20,120 Speaker 1: pretty cool, Taylor Leonard. The plan is for O'Rion, with 154 00:08:20,160 --> 00:08:22,680 Speaker 1: three test dummies on board, to loop around the Moon 155 00:08:22,720 --> 00:08:25,240 Speaker 1: and come back to Earth. The head of the International 156 00:08:25,240 --> 00:08:28,600 Speaker 1: Atomic Energy Agency says that the UN Nuclear watch dogs 157 00:08:28,640 --> 00:08:31,360 Speaker 1: long awaited expert mission to the power plan in Ukraine 158 00:08:31,880 --> 00:08:35,480 Speaker 1: is now on its way. Russia and Ukraine have traded 159 00:08:35,559 --> 00:08:38,679 Speaker 1: claims of strikes at or near the plan in recent days, 160 00:08:39,040 --> 00:08:43,040 Speaker 1: intensifying figures that the fighting could cause a massive radiation leak. 161 00:08:43,559 --> 00:08:45,760 Speaker 1: It was a violent weekend in New York City after 162 00:08:45,800 --> 00:08:49,000 Speaker 1: more than a dozen people was shot, several fatally. That 163 00:08:49,160 --> 00:08:51,880 Speaker 1: includes a shooting on the boarder walk on Coney Island 164 00:08:51,880 --> 00:08:55,640 Speaker 1: that left one person dead and four others hurt. Police 165 00:08:55,679 --> 00:08:58,280 Speaker 1: in Bend, Oregon and confirmed three people are dead following 166 00:08:58,320 --> 00:09:01,000 Speaker 1: a shooting at the grocery store. The meal shooter killed 167 00:09:01,000 --> 00:09:03,960 Speaker 1: two people at a Costco officers then entered the store 168 00:09:04,000 --> 00:09:08,240 Speaker 1: and found the suspected shooter dead. Bend Police Chief Mike Krantz, 169 00:09:08,320 --> 00:09:10,920 Speaker 1: as the suspect was armed with an a R fifteen 170 00:09:10,960 --> 00:09:13,720 Speaker 1: style rifle. We have officers from every agency in central 171 00:09:13,760 --> 00:09:16,559 Speaker 1: Oregon as well as the FBI, Ben Fire and Rescue 172 00:09:16,920 --> 00:09:19,320 Speaker 1: and other agencies on scene and assistant. We are very 173 00:09:19,440 --> 00:09:22,960 Speaker 1: preship of this home. Ben Police Chief Mike Rantz. Senate 174 00:09:23,000 --> 00:09:26,240 Speaker 1: Majority Leader Chuck Schumer welcome President Joe Biden's federal Student 175 00:09:26,280 --> 00:09:30,160 Speaker 1: Loan Forgiveness plan. Schumer urged loan processors to prepare for 176 00:09:30,240 --> 00:09:33,160 Speaker 1: a wave of inquiries about the program. All on all 177 00:09:33,240 --> 00:09:36,240 Speaker 1: of the loan processors to be at the ready for 178 00:09:36,360 --> 00:09:39,320 Speaker 1: the wave of calls that's starting to come in and 179 00:09:39,400 --> 00:09:43,120 Speaker 1: let students know how they apply and what their rights are. 180 00:09:43,520 --> 00:09:46,280 Speaker 1: Senator Schumer of New York says college used to be 181 00:09:46,320 --> 00:09:48,760 Speaker 1: a ladder up, but student debt has become an anchor 182 00:09:48,800 --> 00:09:52,560 Speaker 1: around the ankles of our students. Global News twenty four 183 00:09:52,600 --> 00:09:55,120 Speaker 1: hours a day on air and on Bloomberg Quick Take, 184 00:09:55,200 --> 00:09:58,000 Speaker 1: powered by more than twenty seven hundred journalists, analysts more 185 00:09:58,000 --> 00:10:00,800 Speaker 1: than a hundred twenty countries. Michael are and this is 186 00:10:00,840 --> 00:10:08,160 Speaker 1: Bloomberg Naked. Thanks Michael, throwing up to five ten on 187 00:10:08,200 --> 00:10:10,400 Speaker 1: Wall Street. Time for the Bloomberg Sports up take Good morning, 188 00:10:10,480 --> 00:10:13,280 Speaker 1: John Sesshire, Good morning. They depended when the Yankees were slumping, 189 00:10:13,320 --> 00:10:16,480 Speaker 1: going three and fourteen, they weren't hitting, and they won 190 00:10:16,559 --> 00:10:19,400 Speaker 1: five in a row. With those offensive woes resurfaced in Oakland, 191 00:10:19,440 --> 00:10:22,559 Speaker 1: only one hit and an eleven inning lost Saturday, and 192 00:10:22,559 --> 00:10:25,280 Speaker 1: then only four singles yesterday and the eight's won four 193 00:10:25,320 --> 00:10:27,439 Speaker 1: to one. The Yanks moved down to Anaheim. They'll face 194 00:10:27,480 --> 00:10:30,160 Speaker 1: the Angels tonight. The Mets man is only three hits, 195 00:10:30,200 --> 00:10:33,280 Speaker 1: all of them singles against Herman Marquez and two relievers. 196 00:10:33,280 --> 00:10:36,439 Speaker 1: Colorado scored in the seventh thirty off Max Scherzer and 197 00:10:36,480 --> 00:10:38,720 Speaker 1: the Rockies won, wondering up into salvage the game in 198 00:10:38,720 --> 00:10:41,439 Speaker 1: the series. Atlanta lost last night in St. Louis, the 199 00:10:41,480 --> 00:10:44,720 Speaker 1: Mets remaining three games ahead. The annual Jets Giants preseason 200 00:10:44,760 --> 00:10:47,440 Speaker 1: game not decided until the final minute that Chris Traveler 201 00:10:47,520 --> 00:10:50,680 Speaker 1: touchdown passed with twenty two seconds left at Calvin Jackson 202 00:10:51,040 --> 00:10:54,319 Speaker 1: for a thirty one seven back and forth Jets victory, 203 00:10:54,440 --> 00:10:57,600 Speaker 1: second time in three preseason games that those two hooked 204 00:10:57,640 --> 00:10:59,400 Speaker 1: up for a game winning TV in the final minute. 205 00:10:59,440 --> 00:11:01,280 Speaker 1: The Jets went three and oh in the preseason, the 206 00:11:01,320 --> 00:11:03,680 Speaker 1: Giant for two and one. They did not use Daniel Jones. 207 00:11:03,920 --> 00:11:06,120 Speaker 1: They started to Eyrod Taylor and then he heard his back. 208 00:11:06,520 --> 00:11:08,640 Speaker 1: Not believed to be a serious Inndon. The golf season 209 00:11:08,720 --> 00:11:11,120 Speaker 1: ended in Atlanta with a big comeback by Rory McElroy. 210 00:11:11,160 --> 00:11:14,480 Speaker 1: Back on Thursday, he was ten shots behind Scottie Scheffery, 211 00:11:14,520 --> 00:11:17,360 Speaker 1: trailed by six when the final round began. He won 212 00:11:17,640 --> 00:11:20,120 Speaker 1: by one, really giving myself much of a challenge stand 213 00:11:20,160 --> 00:11:23,920 Speaker 1: off and the fourth rowned. I thought, you know, silver 214 00:11:24,000 --> 00:11:25,920 Speaker 1: lining was I was playing in the last groups so 215 00:11:25,960 --> 00:11:28,120 Speaker 1: I could at least keep an eye on what he 216 00:11:28,160 --> 00:11:31,760 Speaker 1: was doing if if things didn't quite work out for him, 217 00:11:31,800 --> 00:11:34,800 Speaker 1: and um, you know, thankfully I was in that last 218 00:11:34,800 --> 00:11:37,240 Speaker 1: group because you know, I was able to put some 219 00:11:37,320 --> 00:11:40,040 Speaker 1: pressure on him early on third Tour Championship victory. He 220 00:11:40,080 --> 00:11:44,480 Speaker 1: wins eighteen million dollars. US Open begins today. Serena Williams 221 00:11:44,559 --> 00:11:48,600 Speaker 1: plays tonight. John Dash Award, all right, John, thank you 222 00:11:48,640 --> 00:11:51,280 Speaker 1: to sell off continues on Wall Street and around the world. 223 00:11:51,440 --> 00:11:54,320 Speaker 1: SMP futures down thirty seven points down, futures down two 224 00:11:54,360 --> 00:11:57,920 Speaker 1: hundred fifty eight. Nastack futures leading the declines, down one 225 00:11:58,000 --> 00:12:01,000 Speaker 1: hundred fifty points. We check in next with Dennis Gartman, 226 00:12:01,400 --> 00:12:04,520 Speaker 1: the former publisher of The Gardener Letter. This is Bloomberg 227 00:12:07,440 --> 00:12:10,079 Speaker 1: Bloomberg eleven three oh weather morning Clouds Littles are mostly 228 00:12:10,120 --> 00:12:12,360 Speaker 1: sunny today with highs in the upper eighties. Chance relate. 229 00:12:12,440 --> 00:12:16,440 Speaker 1: They shower tomorrow, otherwise mostly sunny, uper eighties again mostly sunny. 230 00:12:16,480 --> 00:12:19,000 Speaker 1: Opper eight is on Wednesday right now seventy five in 231 00:12:19,080 --> 00:12:25,240 Speaker 1: Central Park markets. Headlines and breaking news twenty four hours 232 00:12:25,240 --> 00:12:28,000 Speaker 1: a day at Bloomberg dot Com, at the Bloomberg Business 233 00:12:28,040 --> 00:12:37,600 Speaker 1: out and at Bloomberg Quicktape is a Bloomberg Business Flash. 234 00:12:38,040 --> 00:12:40,960 Speaker 1: And I'm Karen Moscow. Federal Reserve charge your own Powell's 235 00:12:40,960 --> 00:12:44,600 Speaker 1: signal of higher for longer interest rates coursing through markets, 236 00:12:44,600 --> 00:12:47,600 Speaker 1: sinking stocks and equity futures, and lifting two year treasury 237 00:12:47,640 --> 00:12:50,959 Speaker 1: yields to levels less seen in two thousand seven. We 238 00:12:51,120 --> 00:12:53,560 Speaker 1: checked the markets every fifteen minutes throughout the trading day 239 00:12:53,679 --> 00:12:55,960 Speaker 1: on Bloomberg. Right now, MUST and P futures are down 240 00:12:56,000 --> 00:12:59,200 Speaker 1: about thirty seven points down, futures down two fifty six, 241 00:12:59,559 --> 00:13:02,120 Speaker 1: and as day futures down one hundred forty six the 242 00:13:02,200 --> 00:13:05,199 Speaker 1: decks in Germany's down one point four percent. Ten year 243 00:13:05,240 --> 00:13:07,960 Speaker 1: treasury down nineteen thirty seconds, you know, three point one 244 00:13:07,960 --> 00:13:10,400 Speaker 1: one percent they yield on the two year three point 245 00:13:10,400 --> 00:13:14,000 Speaker 1: four six percent. Ninemex screwed oils up one percent, or 246 00:13:14,080 --> 00:13:16,360 Speaker 1: ninety two cents at ninety three dollars, ninety eight cents 247 00:13:16,360 --> 00:13:18,920 Speaker 1: of barrel comes goal, down nine tenths per cent, or 248 00:13:18,920 --> 00:13:22,160 Speaker 1: fifteen dollars twenty cents a seventeen thirty four sixty an ounce. 249 00:13:22,559 --> 00:13:25,600 Speaker 1: The euro is at point nine three against the dollar, 250 00:13:25,679 --> 00:13:28,360 Speaker 1: British bound one point one six six six and again 251 00:13:28,440 --> 00:13:30,920 Speaker 1: one thirty eight point six four. And look at a 252 00:13:30,960 --> 00:13:34,040 Speaker 1: bitcoin this morning. It is down nine tenths per cent 253 00:13:34,120 --> 00:13:38,559 Speaker 1: in nineteen thousand, eight hundred dollars. And that's a bloomberg 254 00:13:38,559 --> 00:13:41,160 Speaker 1: business flash. Now here's Michael Barr with Moore on what's 255 00:13:41,160 --> 00:13:44,000 Speaker 1: going on around the world. Michael, good morning, Good morning, Karen. 256 00:13:44,080 --> 00:13:47,600 Speaker 1: The Artemius Moon rocket launch is proceeding towards a morning 257 00:13:47,640 --> 00:13:50,440 Speaker 1: lift off in the Kennedy Space Center in Florida. The 258 00:13:50,559 --> 00:13:53,520 Speaker 1: goal is for the Orion capsule, with three test dummies 259 00:13:53,559 --> 00:13:56,000 Speaker 1: on board, to loop around the Moon and come back 260 00:13:56,040 --> 00:13:59,440 Speaker 1: to Earth. Top intelligence officials are working with the Justice 261 00:13:59,480 --> 00:14:03,319 Speaker 1: Departments to conduct a quote risk assessment to see a 262 00:14:03,400 --> 00:14:06,760 Speaker 1: former President Trump's handling of classified documents found that his 263 00:14:06,840 --> 00:14:11,400 Speaker 1: more Lago home compromise national security. In baseball, the Yankees 264 00:14:11,440 --> 00:14:15,040 Speaker 1: lost to the A's four one. The Mets lost along 265 00:14:15,080 --> 00:14:18,240 Speaker 1: with the Red Sox, Orioles and Giants the Nationals one. 266 00:14:18,679 --> 00:14:21,640 Speaker 1: In the final preseason NFL game, the Jets beat the 267 00:14:21,680 --> 00:14:26,640 Speaker 1: Giants seven. Dennis The US Open begins today. Global News 268 00:14:26,640 --> 00:14:29,640 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 269 00:14:29,840 --> 00:14:32,840 Speaker 1: powered by more than twenty seven hundred journalists and analysts, 270 00:14:32,840 --> 00:14:35,400 Speaker 1: are more than a hundred twenty countries. Michael Barr and 271 00:14:35,480 --> 00:14:38,160 Speaker 1: this is Bloomberg. Nathan all right, Michael, thank you. It's 272 00:14:38,160 --> 00:14:40,880 Speaker 1: five nineteen on Wall Street Life from the Bloomberg Interactive 273 00:14:40,880 --> 00:14:44,440 Speaker 1: Broker Studios. This is Bloomberg daybreaking. When markets open on 274 00:14:44,440 --> 00:14:47,720 Speaker 1: Wall Street this morning, we could see even more losses 275 00:14:47,840 --> 00:14:50,360 Speaker 1: on the back of Chairman Palace comments at Jackson Hall 276 00:14:50,760 --> 00:14:53,240 Speaker 1: ahead of that. We're joined by Dennis Gartman, the former 277 00:14:53,240 --> 00:14:55,840 Speaker 1: publisher of the Gartment Letter, now chairman of the University 278 00:14:55,840 --> 00:14:59,960 Speaker 1: of Akront Endowment Investment Committee. Dennis Risk Investors have been 279 00:15:00,080 --> 00:15:02,960 Speaker 1: running for the hills. Since Chairman Powell's are marks at 280 00:15:03,000 --> 00:15:06,080 Speaker 1: the mountains of Jackson Hole, Wyoming. How much further do 281 00:15:06,120 --> 00:15:09,040 Speaker 1: you think this selloff has to go? How maybe it 282 00:15:09,080 --> 00:15:11,000 Speaker 1: goes a lot lower. I've been running for the hills 283 00:15:11,000 --> 00:15:13,960 Speaker 1: since December thirty one to last year as the chairman 284 00:15:13,960 --> 00:15:16,840 Speaker 1: of the University of Acranson Downman, I actually moved with 285 00:15:16,960 --> 00:15:19,600 Speaker 1: hard to get the other committee members to move twelve 286 00:15:20,400 --> 00:15:22,840 Speaker 1: of our portfolio out of equities on December thirty one, 287 00:15:22,880 --> 00:15:25,960 Speaker 1: and we did. Last February, we actually moved three percent 288 00:15:26,000 --> 00:15:29,680 Speaker 1: of our portfolio out of stocks into gold two hedge 289 00:15:29,720 --> 00:15:32,320 Speaker 1: against what I thought was going to be a ratcheting 290 00:15:32,400 --> 00:15:37,600 Speaker 1: up of inflation. And clearly Chairman Powell was extraordinarily sacristanc 291 00:15:37,760 --> 00:15:43,760 Speaker 1: extraordinarily concise, extraordinarily straightforward with his comments on Friday concerning inflation. 292 00:15:44,280 --> 00:15:46,480 Speaker 1: I think stock prices go a lot lower from here. 293 00:15:46,520 --> 00:15:49,080 Speaker 1: I think yields go at the two year go a 294 00:15:49,120 --> 00:15:51,880 Speaker 1: lot higher from here. I think we're in for problems. 295 00:15:51,920 --> 00:15:53,920 Speaker 1: So that's going to last for a quite some period 296 00:15:53,920 --> 00:15:56,040 Speaker 1: of time. And if I've learned anything in the fifty 297 00:15:56,120 --> 00:15:58,360 Speaker 1: years nearly fifty years of being involved in the markets, 298 00:15:58,800 --> 00:16:01,080 Speaker 1: once the FED begins to age its policy, and the 299 00:16:01,080 --> 00:16:04,600 Speaker 1: Fed changes policy six months ago from the easy monetary 300 00:16:04,640 --> 00:16:08,360 Speaker 1: policy the tightening policy. It usually lasts not weeks, not months, 301 00:16:08,360 --> 00:16:10,960 Speaker 1: but several years. So I think we're gonna see higher 302 00:16:11,040 --> 00:16:13,560 Speaker 1: rates for a long period of time, and once they 303 00:16:13,600 --> 00:16:16,640 Speaker 1: get beyond four percent in the overnight Said funds rate, 304 00:16:17,000 --> 00:16:18,800 Speaker 1: we may stay there for a year or two. So 305 00:16:18,960 --> 00:16:22,000 Speaker 1: be careful, be very careful. In a bear market. Here 306 00:16:22,080 --> 00:16:23,960 Speaker 1: see who loses the least amount of money will be 307 00:16:23,960 --> 00:16:26,400 Speaker 1: the winner, and thus far the University of Akron has 308 00:16:26,440 --> 00:16:30,000 Speaker 1: lost a lot less than other endowments. In my own account, 309 00:16:30,000 --> 00:16:34,040 Speaker 1: I'm basically neutral to slightly bearish for the stock market, 310 00:16:34,440 --> 00:16:36,520 Speaker 1: so I think we go a lot lower. All I 311 00:16:36,560 --> 00:16:38,840 Speaker 1: can urge, Just be careful out there. Things could get 312 00:16:38,840 --> 00:16:40,880 Speaker 1: a lot worse before they get any any better, maybe 313 00:16:41,080 --> 00:16:43,480 Speaker 1: a long period of time before we see the ted 314 00:16:43,760 --> 00:16:46,640 Speaker 1: pivot on. It's the monetary policies, and it's going to 315 00:16:46,720 --> 00:16:48,920 Speaker 1: take to the overnight Fed funds rate seventy five basis 316 00:16:48,960 --> 00:16:52,240 Speaker 1: points higher in in September and at least a hundred 317 00:16:52,280 --> 00:16:54,680 Speaker 1: fifty basis points higher before the end of the year. 318 00:16:54,960 --> 00:16:57,920 Speaker 1: Interesting that you think that the Fed funds rate stays 319 00:16:58,000 --> 00:17:01,320 Speaker 1: around four percent for a year or longer. So you 320 00:17:01,360 --> 00:17:05,239 Speaker 1: don't think that this week, this week's payrolls report for 321 00:17:05,280 --> 00:17:08,520 Speaker 1: August is going to have any impact on what the 322 00:17:08,520 --> 00:17:11,040 Speaker 1: FED might do from here on out. It's going to 323 00:17:11,119 --> 00:17:14,680 Speaker 1: be a very strong UH employment number, probably two hundred 324 00:17:14,680 --> 00:17:18,000 Speaker 1: fifty three hundred thousand in not farm payrolls. But I 325 00:17:18,040 --> 00:17:19,880 Speaker 1: think the FED is already looking past that. I think 326 00:17:19,880 --> 00:17:21,600 Speaker 1: the FED has no choice but to look past that. 327 00:17:22,119 --> 00:17:24,200 Speaker 1: I think it has to at the same time begin 328 00:17:24,280 --> 00:17:26,439 Speaker 1: the policy which had said I was going to do, 329 00:17:26,480 --> 00:17:28,879 Speaker 1: and it thus far hasn't, of reducing the size of 330 00:17:28,920 --> 00:17:31,959 Speaker 1: its balance sheet. UH. The the assets on hand are 331 00:17:32,000 --> 00:17:35,240 Speaker 1: still extraordinary high, almost over nine trillion dollars compared to 332 00:17:35,320 --> 00:17:38,720 Speaker 1: nine billion a decade ago. They have to take sixty 333 00:17:38,760 --> 00:17:40,840 Speaker 1: five They have to take billion dollars out of the 334 00:17:40,920 --> 00:17:42,960 Speaker 1: out of their assets on the every month from here 335 00:17:43,000 --> 00:17:45,680 Speaker 1: on for at least two to three years, and thus 336 00:17:45,720 --> 00:17:48,440 Speaker 1: far they haven't been doing quite that. So there there 337 00:17:48,480 --> 00:17:53,359 Speaker 1: had been some UH monetary policy changes, a lessening of 338 00:17:53,400 --> 00:17:55,640 Speaker 1: monetary policy changes that I think have to become far 339 00:17:55,680 --> 00:17:57,560 Speaker 1: more severe over the course of the next several years. 340 00:17:57,560 --> 00:18:00,679 Speaker 1: So again, be very careful you in the past that 341 00:18:00,760 --> 00:18:03,080 Speaker 1: the unwinded. The balance sheet is going to be more 342 00:18:03,119 --> 00:18:07,720 Speaker 1: important for markets than the increases in interest rates. What 343 00:18:07,840 --> 00:18:09,879 Speaker 1: do you think is going to happen when it comes 344 00:18:09,880 --> 00:18:14,640 Speaker 1: to the balance sheet at the Fed's next meeting next month. Actually, 345 00:18:14,960 --> 00:18:16,520 Speaker 1: thus far, I said that all they're gonna do is 346 00:18:16,520 --> 00:18:20,119 Speaker 1: allowing assets to roll off, to mature off, to to 347 00:18:20,280 --> 00:18:22,600 Speaker 1: simply two year no speak come over, and I said 348 00:18:22,640 --> 00:18:24,920 Speaker 1: funds or hates in other words. But now I think 349 00:18:24,920 --> 00:18:27,320 Speaker 1: then I actually turned to the point of actually beginning 350 00:18:27,359 --> 00:18:29,680 Speaker 1: to sell from their from their balance sheet. We'll see 351 00:18:29,680 --> 00:18:32,359 Speaker 1: if that if that happens, I hope they don't because 352 00:18:32,359 --> 00:18:34,560 Speaker 1: that would even be more severe. But they said that 353 00:18:34,560 --> 00:18:36,800 Speaker 1: they're gonna take nine billion dollars out of their balance 354 00:18:36,800 --> 00:18:39,240 Speaker 1: sheet on a monthly basis. We'll see if they continue 355 00:18:39,240 --> 00:18:41,160 Speaker 1: to do so. They have to do so over time, 356 00:18:41,560 --> 00:18:43,399 Speaker 1: they have to reduce the size of their assets, and 357 00:18:43,440 --> 00:18:46,080 Speaker 1: I think that that's far more severe than actually taking 358 00:18:46,080 --> 00:18:49,080 Speaker 1: the overnight paid funds right beyond four percent. So pay 359 00:18:49,119 --> 00:18:51,280 Speaker 1: attention to what they're doing when they're in their balance sheet, 360 00:18:51,320 --> 00:18:54,000 Speaker 1: and thus far they have not been as aggressive as 361 00:18:54,040 --> 00:18:56,040 Speaker 1: I think they should be. We'll see if they actually 362 00:18:56,040 --> 00:18:58,159 Speaker 1: turn into selling from their balance sheet, which, as I 363 00:18:58,160 --> 00:18:59,800 Speaker 1: said earlier, I hope they don't. I hope they just 364 00:18:59,800 --> 00:19:03,320 Speaker 1: the things the mature offllon dollars a month, but they're 365 00:19:03,760 --> 00:19:05,840 Speaker 1: nine trillion dollars is a lot when you're only taking 366 00:19:05,920 --> 00:19:09,320 Speaker 1: nine billion out each month. Dennis Government with us for 367 00:19:09,359 --> 00:19:12,240 Speaker 1: the hour here on Bloomberg Daybreak, the former publisher of 368 00:19:12,240 --> 00:19:15,040 Speaker 1: the Gvernment Letter, of course, now chairman of the University 369 00:19:15,080 --> 00:19:18,280 Speaker 1: of Akront Endowment Investment Committee. Will get more of Dennis's 370 00:19:18,320 --> 00:19:21,800 Speaker 1: thoughts throughout this hour on the path for federal reserve 371 00:19:21,880 --> 00:19:25,640 Speaker 1: policy and where risk assets could go from here. With 372 00:19:25,720 --> 00:19:29,280 Speaker 1: the FED making it pretty clear at Jackson Hole last 373 00:19:29,280 --> 00:19:32,919 Speaker 1: week that it is going to stay aggressive against inflation, 374 00:19:33,119 --> 00:19:36,520 Speaker 1: keeping rates higher for longer, perhaps than markets had been 375 00:19:36,560 --> 00:19:39,359 Speaker 1: pricing in. And as we look at futures this morning, 376 00:19:39,640 --> 00:19:42,840 Speaker 1: we are seeing the selling continue, with SMP futures down 377 00:19:42,880 --> 00:19:46,120 Speaker 1: thirty eight points down, futures down two hundred sixty six, 378 00:19:46,200 --> 00:19:49,320 Speaker 1: Nasdaq futures are lower by a hundred fifty two points, 379 00:19:49,600 --> 00:19:52,680 Speaker 1: the tenure Treasury down nineteen thirty seconds, the three point 380 00:19:52,720 --> 00:19:54,840 Speaker 1: one percent, and the yield on the two year at 381 00:19:54,840 --> 00:19:59,000 Speaker 1: a fifteen year high at three point four six per cent. 382 00:19:59,600 --> 00:20:08,200 Speaker 1: You are our listening to Bloomberg day Break Bloomberg eleven 383 00:20:08,200 --> 00:20:10,359 Speaker 1: three oh weather turning mostly sunny today with HIGs in 384 00:20:10,400 --> 00:20:12,600 Speaker 1: the upper eighties. Can see a late day shower tomorrow 385 00:20:12,640 --> 00:20:16,480 Speaker 1: upper eighties. Some thunderstorms tomorrow night possible. By Wednesday will 386 00:20:16,520 --> 00:20:18,679 Speaker 1: be mostly sunny again with highs and the uper eighties. 387 00:20:22,440 --> 00:20:27,000 Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York, 388 00:20:27,080 --> 00:20:31,760 Speaker 1: Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, 389 00:20:31,840 --> 00:20:35,240 Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg NOME 390 00:20:35,359 --> 00:20:38,440 Speaker 1: sixty to the Country, Sirius XM to the one nine team, 391 00:20:38,560 --> 00:20:41,720 Speaker 1: and around the globe the Bloomberg Business apt and Bloomberg 392 00:20:41,800 --> 00:20:51,359 Speaker 1: Radio dot Com. This is Bloomberg Daybreak. It's five thirty 393 00:20:51,359 --> 00:20:53,800 Speaker 1: on Wall Street. Good morning. I'm Nathan Hager and I'm 394 00:20:53,840 --> 00:20:56,640 Speaker 1: Karin Moscow. We are just about four hours away from 395 00:20:56,640 --> 00:20:58,440 Speaker 1: the open of US trading. Let's catch you up to 396 00:20:58,520 --> 00:20:59,840 Speaker 1: day on the news. You need to know what this 397 00:21:00,000 --> 00:21:02,560 Speaker 1: shower was. Still feeling the impact of a hawk ish 398 00:21:02,560 --> 00:21:05,919 Speaker 1: fed this morning. US futures are falling in global stocks. 399 00:21:05,920 --> 00:21:09,200 Speaker 1: You're at a one month low, not after Friday's major drop, 400 00:21:09,240 --> 00:21:12,160 Speaker 1: which was the worst day for US stocks in student thirteenth. 401 00:21:12,359 --> 00:21:14,960 Speaker 1: The catalyst for the sell off JP Powell signaling that 402 00:21:15,080 --> 00:21:18,440 Speaker 1: interest rates will stay higher for some time. Katrina L 403 00:21:18,600 --> 00:21:21,800 Speaker 1: Senior economist and Moody says the fed chairs comments have 404 00:21:22,000 --> 00:21:26,640 Speaker 1: broad implications. The speech really brought home the fact that 405 00:21:26,920 --> 00:21:29,399 Speaker 1: the Feed is taking no prisoners when it comes to 406 00:21:29,680 --> 00:21:33,520 Speaker 1: wanting to buy inflation and sustainably bring it back down 407 00:21:33,920 --> 00:21:36,560 Speaker 1: as a consequence of a recession. Results of that, then 408 00:21:36,600 --> 00:21:39,760 Speaker 1: I mean, so be it. Katrina L with Moody says 409 00:21:39,800 --> 00:21:44,000 Speaker 1: the Fed is also uncomfortable with the current tight labor market. Well. Meantime, 410 00:21:44,080 --> 00:21:47,040 Speaker 1: Karen one of All Street's biggest bear, says weaker earnings, 411 00:21:47,080 --> 00:21:50,000 Speaker 1: not higher rates, as the largest threat to US stocks. 412 00:21:50,040 --> 00:21:52,800 Speaker 1: Morgan Stanley's Michael Wilson says the path for stocks will 413 00:21:52,840 --> 00:21:55,919 Speaker 1: be determined by earnings and that's where investors focus should be. 414 00:21:56,080 --> 00:21:58,639 Speaker 1: He has repeatedly warned the recent equity rally will be 415 00:21:58,680 --> 00:22:01,760 Speaker 1: temporary due to tighter monetary policy and the outlook for 416 00:22:01,800 --> 00:22:05,120 Speaker 1: corporate profits. Funnythan the Well Streets sell off is also 417 00:22:05,240 --> 00:22:08,879 Speaker 1: spreading overseas. European stocks are extending last week's drop, with 418 00:22:08,960 --> 00:22:12,040 Speaker 1: most indicries down more than one percent, and in Asia 419 00:22:12,080 --> 00:22:14,400 Speaker 1: over night, Japan's NIK led the clients with the drop 420 00:22:14,440 --> 00:22:17,000 Speaker 1: of more than two and a half percent. And economists 421 00:22:17,000 --> 00:22:19,399 Speaker 1: are turning more barish about China's economy here and that's 422 00:22:19,480 --> 00:22:22,800 Speaker 1: due to risks in its property market and potential COVID lockdowns. 423 00:22:22,920 --> 00:22:26,040 Speaker 1: According to Bloomberg's latest quarterly survey, China's economy is now 424 00:22:26,040 --> 00:22:28,680 Speaker 1: projected to grow just three and a half percent this year. 425 00:22:28,920 --> 00:22:31,520 Speaker 1: Tyron Cam, had of China property at Fitch rating, says 426 00:22:31,600 --> 00:22:35,000 Speaker 1: defaults could cause even more problems. What we really need 427 00:22:35,040 --> 00:22:37,640 Speaker 1: is that the government to come in in the bigger way. 428 00:22:37,800 --> 00:22:40,560 Speaker 1: They also are now showing that they want to rely 429 00:22:40,640 --> 00:22:44,359 Speaker 1: on market based mechanism. They're not trying to battle the 430 00:22:44,400 --> 00:22:47,560 Speaker 1: sector at all cost. That remains the problems that we 431 00:22:47,560 --> 00:22:51,120 Speaker 1: were still monitoring him. Tyrn Cam with Fitch rating says 432 00:22:51,119 --> 00:22:53,760 Speaker 1: he still thinks China is fully committed to stabilizing its 433 00:22:53,800 --> 00:22:56,560 Speaker 1: property sector. But back here in the US, Nathan Meme 434 00:22:56,640 --> 00:22:59,320 Speaker 1: stocks are here to stay. That's according to nearly two 435 00:22:59,400 --> 00:23:01,639 Speaker 1: thirds of them were than five hundred respondents in our 436 00:23:01,720 --> 00:23:05,359 Speaker 1: latest m Live Pulse survey. Respondents expect some version of 437 00:23:05,359 --> 00:23:08,000 Speaker 1: the meme stock menia to stick around even if the 438 00:23:08,040 --> 00:23:11,160 Speaker 1: outlook for stocks remains the leak. And we're seeing bitcoin 439 00:23:11,240 --> 00:23:14,399 Speaker 1: follow stocks lower this morning, Karen trading below twenty thousand, 440 00:23:14,480 --> 00:23:16,800 Speaker 1: adding to losses from last week. It's the first time 441 00:23:16,800 --> 00:23:20,720 Speaker 1: Bitcoin slump below twenty k since mid July. And futures 442 00:23:20,720 --> 00:23:23,240 Speaker 1: are also slumping. S and P futures down about thirty 443 00:23:23,280 --> 00:23:27,120 Speaker 1: eight points down, futures down two d and nastack futures 444 00:23:27,200 --> 00:23:30,879 Speaker 1: down one hundred forty nine. Straight ahead your latest local 445 00:23:30,920 --> 00:23:34,639 Speaker 1: headlines plus the check of sports, and this is Bloomberg. 446 00:23:38,280 --> 00:23:40,520 Speaker 1: Thanks Hearing five thirty three on Wall Street, seventy five 447 00:23:40,560 --> 00:23:43,480 Speaker 1: degrees in Central Park still got the closure westbound cross 448 00:23:43,480 --> 00:23:46,400 Speaker 1: Bronx between White Plains Road and the Bronx Server park Way. 449 00:23:46,440 --> 00:23:48,480 Speaker 1: Michael Bars here with what else is going on in 450 00:23:48,480 --> 00:23:50,760 Speaker 1: New York and around the world. Michael, thank you very much. 451 00:23:50,840 --> 00:23:53,480 Speaker 1: Nathan Nassey is dealing with a fuel leak as it 452 00:23:53,560 --> 00:23:56,960 Speaker 1: prepares its new Moon rocket for liftoff on its first 453 00:23:57,000 --> 00:24:00,600 Speaker 1: test flight at Florida's Kennedy's Bay Center. No one inside 454 00:24:00,640 --> 00:24:03,960 Speaker 1: the Orion capsule, just three test dummies. At least one 455 00:24:04,040 --> 00:24:06,520 Speaker 1: hundred thousand people are expected to watch on the beaches 456 00:24:06,560 --> 00:24:10,159 Speaker 1: as the powerful rocket lifts off, including Taylor Leonard. She 457 00:24:10,359 --> 00:24:13,440 Speaker 1: helped build part of that Moon rocket and will eventually 458 00:24:13,480 --> 00:24:16,399 Speaker 1: put Americans back on the Moon. I'm really not sure 459 00:24:16,480 --> 00:24:19,520 Speaker 1: what to expect. I'm kind of anticipating in myself. UM, 460 00:24:19,560 --> 00:24:21,600 Speaker 1: but I think it's just gonna be a lot of energy, 461 00:24:21,640 --> 00:24:24,080 Speaker 1: a lot of people. Um just really excited about the 462 00:24:24,119 --> 00:24:26,919 Speaker 1: space program. Taylor Leonard was part of the team that 463 00:24:27,040 --> 00:24:30,200 Speaker 1: tested the functionality of the rocket. The head of the 464 00:24:30,280 --> 00:24:34,000 Speaker 1: International Atomic Energy Agency says that the UN Nuclear watch 465 00:24:34,080 --> 00:24:36,840 Speaker 1: dogs long awaited expert mission to the power plant in 466 00:24:36,960 --> 00:24:41,040 Speaker 1: Ukraine is now on its way. Russia and Ukraine have 467 00:24:41,080 --> 00:24:43,639 Speaker 1: traded claims of strikes and are near the plan in 468 00:24:43,640 --> 00:24:47,520 Speaker 1: recent days, intensifying fears that the fighting could cause a 469 00:24:47,640 --> 00:24:52,119 Speaker 1: massive radiation leak. Ukrainian for Minister to meetro Kuliba. We 470 00:24:52,160 --> 00:24:57,199 Speaker 1: should all be united in demanding one thing, the withdrawal 471 00:24:57,480 --> 00:25:01,080 Speaker 1: of Russia from the opporigin nuclear power land. Foreign Minister 472 00:25:01,160 --> 00:25:05,320 Speaker 1: Kulbo was visiting Swedish leaders in Stockholm today. The FBI 473 00:25:05,520 --> 00:25:07,960 Speaker 1: is joining the investigation into a deadly shooting at a 474 00:25:08,000 --> 00:25:11,800 Speaker 1: supermarket in Bend, Oregon. Then police Chief Mike Rantz has 475 00:25:11,800 --> 00:25:14,639 Speaker 1: a gunman arm with an a R fifteen style rifle 476 00:25:15,080 --> 00:25:17,720 Speaker 1: killed at least two people inside the supermarket last night. 477 00:25:17,880 --> 00:25:19,680 Speaker 1: Our hearts got to the victims and the families and 478 00:25:19,720 --> 00:25:22,240 Speaker 1: this incident, and we know that this is a frightening 479 00:25:22,280 --> 00:25:25,440 Speaker 1: thing for our community and something that we would never 480 00:25:25,480 --> 00:25:28,400 Speaker 1: want to happen in our city. Chief Mike Krantz says 481 00:25:28,520 --> 00:25:30,959 Speaker 1: the suspected gunman was found dead at the scene when 482 00:25:31,040 --> 00:25:35,320 Speaker 1: officers arrived. Detroit Police say a man suspected of randomly 483 00:25:35,440 --> 00:25:38,639 Speaker 1: shooting four people, three fatally, on the city's West Sign 484 00:25:38,720 --> 00:25:41,080 Speaker 1: has been arrested. It happened during a two and a 485 00:25:41,119 --> 00:25:44,679 Speaker 1: half hour period yesterday. Global News twenty four hours a 486 00:25:44,760 --> 00:25:47,960 Speaker 1: day on air and on Bloomberg Quicktake, powered by more 487 00:25:48,000 --> 00:25:50,680 Speaker 1: than seven hundred journalists and analysts more than a hundred 488 00:25:50,720 --> 00:25:54,199 Speaker 1: twenty countries. Michael barn this is Bloomberg, Nathan. Thanks Michael 489 00:25:59,600 --> 00:26:01,760 Speaker 1: on Wall Street time for the Bloomberg Sports Update with 490 00:26:01,840 --> 00:26:04,719 Speaker 1: John Show. Thanks to Nathan. Mets and Yankees yesterday combined 491 00:26:04,760 --> 00:26:07,920 Speaker 1: for only one run, only seven hits, all of them singles. 492 00:26:07,920 --> 00:26:09,800 Speaker 1: So the Yankees second game in a row where they 493 00:26:09,800 --> 00:26:12,199 Speaker 1: failed ahead a four one loss in Oakland, so just 494 00:26:12,320 --> 00:26:15,359 Speaker 1: a split of the four game series. Aaron judge yesterday 495 00:26:15,359 --> 00:26:18,000 Speaker 1: over four three strike ass Tampa Bay one in Boston, 496 00:26:18,040 --> 00:26:20,960 Speaker 1: the Razors seven and a half games behind the Yanks, 497 00:26:20,960 --> 00:26:23,920 Speaker 1: Mets Stilly, the Braves by three is Atlanta lost in St. Louis. 498 00:26:23,920 --> 00:26:26,320 Speaker 1: The Mets loss of the Rockies. Wondering up and can't 499 00:26:26,320 --> 00:26:29,399 Speaker 1: play Max Jerzer. He struck out eleven but beaten by 500 00:26:29,440 --> 00:26:32,239 Speaker 1: Colorado's hairman Marquez. Mets are off tonight and then the 501 00:26:32,280 --> 00:26:36,000 Speaker 1: Dodgers come to town. L A. Fifty games over five hundred, 502 00:26:36,200 --> 00:26:39,240 Speaker 1: Jets and Giants tied four different times. The Jets scored 503 00:26:39,240 --> 00:26:42,080 Speaker 1: in the final minute and wont seven for a three 504 00:26:42,080 --> 00:26:45,040 Speaker 1: and oh. Preseason Jets used three quarterbacks. Joe Flacco through 505 00:26:45,040 --> 00:26:47,600 Speaker 1: an early pick six, it was Chris Streveler who, through 506 00:26:47,640 --> 00:26:50,800 Speaker 1: the game winning TV passed to Calvin Jackson. Those two 507 00:26:50,800 --> 00:26:52,399 Speaker 1: had hooked up for a game winning the finalment A 508 00:26:52,440 --> 00:26:54,560 Speaker 1: two weeks ago. Giants did not use Daniel Jones, and 509 00:26:54,600 --> 00:26:57,199 Speaker 1: then Tyrod Taylor heard his fact not believed to be 510 00:26:57,200 --> 00:26:59,600 Speaker 1: a serious injury. The third stringer Davis Webb came in. 511 00:26:59,640 --> 00:27:02,679 Speaker 1: He went thirty eight what I went for. Roy mcilroys 512 00:27:02,720 --> 00:27:04,960 Speaker 1: had some disappointments in majors, but he's now won the 513 00:27:04,960 --> 00:27:07,920 Speaker 1: Torch Championship three times in Atlanta. He had to dig 514 00:27:07,920 --> 00:27:12,240 Speaker 1: out of a big hole. Credible day, Incredible week, you know, 515 00:27:12,480 --> 00:27:15,600 Speaker 1: four over through two holes, attend shot side of the 516 00:27:15,680 --> 00:27:18,080 Speaker 1: league at that point to call my way back and 517 00:27:18,200 --> 00:27:24,119 Speaker 1: end up winning the winning the tournament. Um, incredible, just 518 00:27:24,119 --> 00:27:28,720 Speaker 1: just a real um. You're really proud of my resilience 519 00:27:28,720 --> 00:27:32,280 Speaker 1: and one the par one by one one eighteen million dollars. 520 00:27:32,280 --> 00:27:35,000 Speaker 1: Will tonight be the last time we see Serena Williams. 521 00:27:35,000 --> 00:27:36,919 Speaker 1: It's your first round match at the US Open and 522 00:27:36,960 --> 00:27:40,800 Speaker 1: that's her final tournament. John stau Bloomberg Sports Nathan Well, 523 00:27:40,880 --> 00:27:43,280 Speaker 1: thank you, John, five thirty seven on Wall Street time 524 00:27:43,320 --> 00:27:46,359 Speaker 1: for the Tri State Business Report. Here's Bloomberg's Corey. The 525 00:27:46,400 --> 00:27:49,280 Speaker 1: a ram Co Team Series women's golf event, which is 526 00:27:49,320 --> 00:27:53,200 Speaker 1: separate from that live tour that upended the PG eight Tour, 527 00:27:53,520 --> 00:27:55,800 Speaker 1: will be held at Trump Links at Ferry Point in 528 00:27:55,880 --> 00:27:59,119 Speaker 1: the Bronx in October. The course is managed by former 529 00:27:59,160 --> 00:28:03,280 Speaker 1: President Donald Trump's family business. Under New Jersey's Fair Chance 530 00:28:03,320 --> 00:28:06,800 Speaker 1: and Housing Act, housing providers are prohibited from asking about 531 00:28:06,840 --> 00:28:10,480 Speaker 1: an applicant's criminal history on an application form or in 532 00:28:10,560 --> 00:28:14,439 Speaker 1: an interview before making a conditional offer of housing. The 533 00:28:14,480 --> 00:28:17,679 Speaker 1: Division on Civil Rights in the state Attorney General's Office 534 00:28:17,960 --> 00:28:22,000 Speaker 1: has issued thirty violation notices to housing providers around the 535 00:28:22,080 --> 00:28:26,879 Speaker 1: state for allegedly contravening the law. Lichfield County, Connecticut School 536 00:28:26,960 --> 00:28:29,600 Speaker 1: is the second most expensive high school in the country. 537 00:28:30,000 --> 00:28:33,640 Speaker 1: That's according to personal finance website Go Banking Raids dot 538 00:28:33,640 --> 00:28:37,040 Speaker 1: com says one year's tuition at Kent School and Kent 539 00:28:37,080 --> 00:28:40,360 Speaker 1: will set you back about seventy thousand dollars. That your 540 00:28:40,360 --> 00:28:43,960 Speaker 1: Bloomberg Trying State Business Report. I'm d Corey, Thanks, said 541 00:28:44,000 --> 00:28:46,320 Speaker 1: five thirty eight on Wall Street. Bloomberg Radio is on 542 00:28:46,360 --> 00:28:48,680 Speaker 1: the air from San Francisco to New York, London to 543 00:28:48,800 --> 00:28:51,120 Speaker 1: Hong Kong. Let's check in with our global news team 544 00:28:51,160 --> 00:28:52,800 Speaker 1: for some of the top stories heard on our three 545 00:28:52,880 --> 00:28:59,320 Speaker 1: hundred affiliate radio stations around the world. Steve photos Can 546 00:28:59,360 --> 00:29:02,040 Speaker 1: on ten Wins in New York, We're talking about how 547 00:29:02,080 --> 00:29:06,400 Speaker 1: technology is helping more people become landlords far away from home. 548 00:29:07,200 --> 00:29:09,920 Speaker 1: Um Corney Donahoe on KF A B and Omaha corn 549 00:29:10,040 --> 00:29:13,000 Speaker 1: is on track to harvest its smallest crop in three years. 550 00:29:13,720 --> 00:29:16,880 Speaker 1: I'm Stephen Corroll and Bloomberg DAB Digital Radio in London. 551 00:29:16,920 --> 00:29:19,400 Speaker 1: We've been reporting on the continued market sell off as 552 00:29:19,440 --> 00:29:23,520 Speaker 1: investors brace for rates to remain empire for longer. I'm 553 00:29:23,600 --> 00:29:26,120 Speaker 1: Lisa Matteo and on w b Z in Boston. I'll 554 00:29:26,160 --> 00:29:28,280 Speaker 1: be reporting on why you may not have to wait 555 00:29:28,280 --> 00:29:31,520 Speaker 1: as long for that new electric vehicle. I'm in Corey, 556 00:29:31,560 --> 00:29:35,520 Speaker 1: on w o AI and San Antonio. I'm reporting TIFFs streets. 557 00:29:35,600 --> 00:29:39,400 Speaker 1: Employees have ended their average the union. I've those are 558 00:29:39,400 --> 00:29:42,200 Speaker 1: some of the stories are twenty seven hundred Bloomberg journalists 559 00:29:42,200 --> 00:29:44,400 Speaker 1: and analysts are working on this morning around the world. 560 00:29:44,440 --> 00:29:47,240 Speaker 1: It's five thirty nine on Wall Street. The following is 561 00:29:47,240 --> 00:29:51,080 Speaker 1: an editorial from Bloomberg Opinion. This editorial was written by 562 00:29:51,120 --> 00:29:54,920 Speaker 1: the Bloomberg Editorial Board. If the COVID nineteen pandemic has 563 00:29:55,000 --> 00:29:59,120 Speaker 1: shown anything it's that public health emergencies required two things. 564 00:29:59,480 --> 00:30:03,560 Speaker 1: If fishing see and clear communication. When it comes to monkeypox, 565 00:30:03,600 --> 00:30:06,400 Speaker 1: the u S response has fallen short on both counts. 566 00:30:06,760 --> 00:30:09,760 Speaker 1: The Biden administration has been too slow to procure and 567 00:30:09,800 --> 00:30:13,680 Speaker 1: distribute vaccines and too muddled in its outreach on the issue. 568 00:30:14,120 --> 00:30:17,160 Speaker 1: Underlying all its missteps has been a lack of leadership, 569 00:30:17,640 --> 00:30:21,760 Speaker 1: rather than accept responsibility, health and human Services Secretary Javier 570 00:30:21,840 --> 00:30:25,360 Speaker 1: Basra has tried to deflect blame. It's fair to say 571 00:30:25,360 --> 00:30:28,200 Speaker 1: that the past few years have presented public health officials 572 00:30:28,360 --> 00:30:32,880 Speaker 1: with unprecedented challenges, but that's no excuse for repeating mistakes 573 00:30:33,120 --> 00:30:36,880 Speaker 1: and failing to learn obvious lessons. President Joe Biden needs 574 00:30:36,920 --> 00:30:40,080 Speaker 1: to demand better. This editorial was written by the Bloomberg 575 00:30:40,160 --> 00:30:43,520 Speaker 1: Editorial Board. For more Bloomberg opinion, please go to Bloomberg 576 00:30:43,600 --> 00:30:46,280 Speaker 1: dot com, slash opinion or O P I n go 577 00:30:46,480 --> 00:30:50,240 Speaker 1: on the Bloomberg terminal. This has been Bloomberg Opinion. Listen 578 00:30:50,240 --> 00:30:53,600 Speaker 1: for Bloomberg opinion editorials every weekday. At this time, terminal 579 00:30:53,640 --> 00:30:56,640 Speaker 1: customers can read more at O P I n go. 580 00:30:57,360 --> 00:30:59,960 Speaker 1: SMP futures are now down one percent to drop a 581 00:31:00,080 --> 00:31:02,800 Speaker 1: forty one point, Style futures down two eighty nine points. 582 00:31:02,920 --> 00:31:07,720 Speaker 1: NASTACK futures leading the declines, down one one hundred sixty 583 00:31:07,800 --> 00:31:10,760 Speaker 1: point drop the ten. Your treasury is down y seconds, 584 00:31:10,800 --> 00:31:14,800 Speaker 1: you'll three point one one percent. Dennis Gartman returns next, 585 00:31:14,880 --> 00:31:18,520 Speaker 1: the former publisher of the Gartman Letter. On Bloomberg Daybreak 586 00:31:22,320 --> 00:31:24,840 Speaker 1: Bloomberg eleven three oh Weather turning mostly sunny today with 587 00:31:24,880 --> 00:31:26,520 Speaker 1: highs in the upper eighties, chance for a late day 588 00:31:26,560 --> 00:31:29,920 Speaker 1: shower tomorrow, otherwise mostly sunny. Upper eighties could have some 589 00:31:30,200 --> 00:31:37,600 Speaker 1: evening thunderstorms tomorrow, turning mostly sunny again on Wednesday. Markets, 590 00:31:37,680 --> 00:31:40,760 Speaker 1: headlines and breaking news twenty four hours a day at 591 00:31:40,800 --> 00:31:44,760 Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape. 592 00:31:45,320 --> 00:31:54,800 Speaker 1: He's a Bloomberg Business Flash, and I'm Karen Moscow. Feed 593 00:31:54,840 --> 00:31:57,760 Speaker 1: a reserve charge around Powell's signal of higher for longer 594 00:31:57,800 --> 00:32:01,480 Speaker 1: interest rates, coursing through markets, sinking stocks and equity futures, 595 00:32:01,480 --> 00:32:04,080 Speaker 1: and lifting two year treasury yields to levels last seen 596 00:32:04,480 --> 00:32:06,720 Speaker 1: in two thousand seven. And we checked the markets every 597 00:32:06,720 --> 00:32:09,800 Speaker 1: fifteen minutes throughout the trading day on Bloomberg. Right now, 598 00:32:09,800 --> 00:32:12,440 Speaker 1: it's in p futures are down forty three points down, 599 00:32:12,480 --> 00:32:15,640 Speaker 1: futures down three hundred and nasdack futures down one hundred 600 00:32:15,760 --> 00:32:18,800 Speaker 1: sixty four. The decks in Germany is down one point 601 00:32:18,880 --> 00:32:21,760 Speaker 1: six percent, the ten year treasury down nineteen thirty seconds, 602 00:32:22,040 --> 00:32:24,520 Speaker 1: yeld three point one one percent. They yield on the 603 00:32:24,600 --> 00:32:27,920 Speaker 1: two year three point four six percent. Nine mex screwed 604 00:32:27,960 --> 00:32:30,200 Speaker 1: oil is up three quarters of a percent, up sixty 605 00:32:30,200 --> 00:32:32,800 Speaker 1: seven cents at ninety three dollars seventy three cents of barrel. 606 00:32:33,000 --> 00:32:35,480 Speaker 1: Comex school there is down one percent or sixteen dollars 607 00:32:35,520 --> 00:32:38,440 Speaker 1: eighty cents at seventeen thirty three and ounce. The euro 608 00:32:38,640 --> 00:32:41,560 Speaker 1: is at pot four against the dollar British found one 609 00:32:41,600 --> 00:32:43,920 Speaker 1: point one six eight four and the yen at one 610 00:32:44,000 --> 00:32:46,520 Speaker 1: thirty eight points six zero. And looking at bitcoin this 611 00:32:46,680 --> 00:32:50,000 Speaker 1: morning down nine ten percent at nineteen thousand, eight hundred 612 00:32:50,080 --> 00:32:53,080 Speaker 1: dollars As a Bloomberg business flash. Now here's Michael Barr 613 00:32:53,200 --> 00:32:56,120 Speaker 1: with more on what's going on around the world. Michael Karen, 614 00:32:56,160 --> 00:32:58,760 Speaker 1: thank you very much. A federal judge. We'll hear arguments 615 00:32:58,800 --> 00:33:02,080 Speaker 1: on Thursday about possibly appointing an outsider to look at 616 00:33:02,080 --> 00:33:05,880 Speaker 1: the classified documents that ex President Trump claims are covered 617 00:33:06,000 --> 00:33:10,920 Speaker 1: under executive privilege. Separately, Intelligence agency specialists are looking at 618 00:33:10,960 --> 00:33:15,120 Speaker 1: possible national security risks involved in Trump's taking and handling 619 00:33:15,160 --> 00:33:19,120 Speaker 1: of classified material. US Navy warships transit it through the 620 00:33:19,400 --> 00:33:22,520 Speaker 1: time the time on straight for the first time since 621 00:33:22,560 --> 00:33:26,040 Speaker 1: our Speaker Nancy Pelosi's visit to the self ruled island, 622 00:33:26,120 --> 00:33:29,960 Speaker 1: testing times between Washington and Beijing. In baseball, the Yankees 623 00:33:30,080 --> 00:33:32,480 Speaker 1: lost to the A's four one the Mats lost along 624 00:33:32,520 --> 00:33:35,640 Speaker 1: with the Red Sox, Orioles and Giants. The Nationals one 625 00:33:36,200 --> 00:33:39,280 Speaker 1: in the final preseason NFL game, the Jets beat the 626 00:33:39,360 --> 00:33:43,040 Speaker 1: Giants and Dennis The US Open begins today. Global News 627 00:33:43,160 --> 00:33:46,520 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 628 00:33:46,800 --> 00:33:49,600 Speaker 1: powered by more than twenty seven hundred journalists analysts more 629 00:33:49,640 --> 00:33:53,720 Speaker 1: than a hundred twenty countries. Michael bar this is Bloomberg Naked. Okay, Michael, Thanks, 630 00:33:53,760 --> 00:33:55,840 Speaker 1: It's five forty nine on Wall Street Live from the 631 00:33:55,880 --> 00:33:59,440 Speaker 1: Bloomberg Interactive Broker Studios. This is a Bloomberg Daybreak and 632 00:33:59,560 --> 00:34:02,080 Speaker 1: Dennis Artment is back with us now, former publisher of 633 00:34:02,120 --> 00:34:05,000 Speaker 1: the Gartment Letter, now chairman of the University of acron 634 00:34:05,120 --> 00:34:07,680 Speaker 1: Endowment Investment Committee. Dennis, I want to pick up on 635 00:34:07,720 --> 00:34:09,879 Speaker 1: a call you made earlier this hour that the FED 636 00:34:10,040 --> 00:34:12,600 Speaker 1: might have to keep its funds rate at four percent 637 00:34:12,760 --> 00:34:16,239 Speaker 1: for a year or longer. I'm curious what makes you 638 00:34:16,360 --> 00:34:19,840 Speaker 1: think the Fed does need to keep rates at that 639 00:34:20,040 --> 00:34:23,520 Speaker 1: level for that long time. It needs to because it 640 00:34:23,600 --> 00:34:26,600 Speaker 1: has not changed its balance sheets sufficiently yet, and it's 641 00:34:26,640 --> 00:34:29,080 Speaker 1: told us that it shall, and it hasn't moved enough 642 00:34:29,160 --> 00:34:32,600 Speaker 1: to to to surprise me or to suffice. So I 643 00:34:32,640 --> 00:34:34,840 Speaker 1: think the FED has no choice but to can continue 644 00:34:34,840 --> 00:34:37,560 Speaker 1: to fight the inflation that it itself has created. And 645 00:34:37,640 --> 00:34:39,759 Speaker 1: if I've learned anything in the almost fifty years of 646 00:34:39,840 --> 00:34:42,319 Speaker 1: being in the markets, once the FED begins to change 647 00:34:42,360 --> 00:34:46,800 Speaker 1: its monetary policy, he usually embarks upon that new policy 648 00:34:46,880 --> 00:34:50,080 Speaker 1: for several years, not months, not weeks, but years. So 649 00:34:50,280 --> 00:34:53,359 Speaker 1: historically that's the tendency. That's been the trend that's been 650 00:34:53,400 --> 00:34:55,800 Speaker 1: the history of the FED over the past several decades, 651 00:34:56,200 --> 00:34:57,879 Speaker 1: and I've seen no reason to think they're going to change. 652 00:34:57,920 --> 00:35:01,919 Speaker 1: Inflation is now uh well established here in the United States, 653 00:35:01,920 --> 00:35:06,640 Speaker 1: it's well established internationally. It's a problem that I think 654 00:35:06,680 --> 00:35:09,080 Speaker 1: all central banks are facing, and I think it's something 655 00:35:09,120 --> 00:35:11,240 Speaker 1: that has to be dealt with over a protracted period 656 00:35:11,280 --> 00:35:14,439 Speaker 1: of time. So historically, once they change policy, they changed 657 00:35:14,440 --> 00:35:16,520 Speaker 1: for several years, not months, not weeks, and I think 658 00:35:16,520 --> 00:35:18,920 Speaker 1: we have to understand the history. Now we do have 659 00:35:19,200 --> 00:35:22,759 Speaker 1: have started to see signs of inflation easing a bit, 660 00:35:22,920 --> 00:35:25,520 Speaker 1: meant maybe not necessarily in the core, but in food 661 00:35:25,600 --> 00:35:27,920 Speaker 1: and energy prices. We've started to see some of the 662 00:35:28,040 --> 00:35:30,839 Speaker 1: pressure ease a bit. Is that something that could move 663 00:35:30,920 --> 00:35:34,360 Speaker 1: the Fed? Well, we've seen wheat prices fall from thirteen 664 00:35:34,400 --> 00:35:36,399 Speaker 1: dollars a bushel down to eight dollars a bushel. We've 665 00:35:36,400 --> 00:35:38,800 Speaker 1: seen corn prices fall almost in the course of the 666 00:35:38,880 --> 00:35:41,359 Speaker 1: last over weeks. But I think food prices are going 667 00:35:41,400 --> 00:35:43,719 Speaker 1: to go back higher. We've had drought, We've had some 668 00:35:43,840 --> 00:35:45,839 Speaker 1: rain over the weekend, which is causing a little bit 669 00:35:45,880 --> 00:35:48,760 Speaker 1: of weakness in the wheat market today. But on balance, 670 00:35:48,800 --> 00:35:51,640 Speaker 1: I think wheat, corn, soybean prices are gonna are going 671 00:35:51,719 --> 00:35:54,680 Speaker 1: to head higher again, probably two new highs, because drought 672 00:35:54,719 --> 00:35:56,640 Speaker 1: has been a very severe problem and just a little 673 00:35:56,680 --> 00:35:59,440 Speaker 1: bit of rain has not resolved that. And it's problematic 674 00:35:59,560 --> 00:36:03,640 Speaker 1: over in European we producing and grain producing regions. The 675 00:36:04,080 --> 00:36:06,400 Speaker 1: problems in Russia, the problems in Ukraine, the problems in 676 00:36:06,719 --> 00:36:09,239 Speaker 1: France for their planting of their winter wheat crop, which 677 00:36:09,280 --> 00:36:12,120 Speaker 1: begins in about two weeks. Drought has been severe problems 678 00:36:12,160 --> 00:36:14,520 Speaker 1: in all of those areas. Those are major exporters of 679 00:36:15,200 --> 00:36:17,279 Speaker 1: wheat to the world, and I think that problem is 680 00:36:17,280 --> 00:36:18,759 Speaker 1: not going to go away. So I think that the 681 00:36:19,280 --> 00:36:21,719 Speaker 1: we've had a beneficial decline in grain prices over the 682 00:36:21,760 --> 00:36:23,799 Speaker 1: course the past two months, I think that's about run 683 00:36:23,880 --> 00:36:25,839 Speaker 1: its course, and I think grain prices go a lot higher, 684 00:36:26,320 --> 00:36:29,440 Speaker 1: So inflation coming from agriculture is going to be I think, 685 00:36:29,520 --> 00:36:32,320 Speaker 1: far more severe than people have anticipated. But those aren't 686 00:36:32,320 --> 00:36:34,480 Speaker 1: the kinds of pressures that the FED or any other 687 00:36:34,560 --> 00:36:36,560 Speaker 1: central bank can have much of an impact on. Are 688 00:36:36,600 --> 00:36:39,000 Speaker 1: they now that they don't have much of an impact 689 00:36:39,040 --> 00:36:41,200 Speaker 1: at all? It's all the weather circumstance, but the fact 690 00:36:41,239 --> 00:36:42,920 Speaker 1: that the FED has been as aggressive as it has 691 00:36:42,960 --> 00:36:45,200 Speaker 1: been over the course of the past decade and raising 692 00:36:45,239 --> 00:36:47,440 Speaker 1: its balance sheet, and as as we all know or 693 00:36:47,520 --> 00:36:50,960 Speaker 1: should have learned in school, inflation is always an everywhere 694 00:36:50,960 --> 00:36:53,840 Speaker 1: a monetary phenomenon. In the monetary aggregates continue to be 695 00:36:53,960 --> 00:36:56,439 Speaker 1: the assets of the FED continue to be extraordinarily high, 696 00:36:56,880 --> 00:36:59,400 Speaker 1: and they have not begun the process of very substantively 697 00:36:59,440 --> 00:37:02,320 Speaker 1: of reducing those assets. So I'm far more fearful of 698 00:37:02,360 --> 00:37:04,920 Speaker 1: the fact that the Fed's assets are much higher than 699 00:37:04,960 --> 00:37:08,319 Speaker 1: I expected, and I think it's far more severe than 700 00:37:08,360 --> 00:37:10,000 Speaker 1: the fact that they're gonna be raising the overnight did 701 00:37:10,040 --> 00:37:12,040 Speaker 1: funds right past four percent by the end of the year. 702 00:37:12,760 --> 00:37:15,960 Speaker 1: Are you concerned that the tightening of monetary policy leads 703 00:37:16,000 --> 00:37:19,359 Speaker 1: to a recession. I think we're already intercession. I think 704 00:37:19,400 --> 00:37:22,800 Speaker 1: that the classic definition is two consecutive quarters of negative 705 00:37:22,800 --> 00:37:25,319 Speaker 1: GDP growth. We've already had that. I think we're going 706 00:37:25,400 --> 00:37:27,239 Speaker 1: to be in recession. I think the numbers will start 707 00:37:27,280 --> 00:37:29,799 Speaker 1: to be substantively worse as we get to the course 708 00:37:29,800 --> 00:37:31,879 Speaker 1: of the year. But I'm of the belief that we're 709 00:37:31,880 --> 00:37:35,080 Speaker 1: already in a a defined recession. It's not severe. I 710 00:37:35,120 --> 00:37:36,799 Speaker 1: don't think it will be as nearly as severe as 711 00:37:36,840 --> 00:37:38,600 Speaker 1: we went through in two thousand seven, eight and nine, 712 00:37:39,000 --> 00:37:40,759 Speaker 1: but I think GDP growth will be lower for the 713 00:37:40,800 --> 00:37:44,040 Speaker 1: next several quarters. Only about thirty seconds left here, Dennis, 714 00:37:44,120 --> 00:37:47,640 Speaker 1: But what's the bigger risk for markets? Rising interest rates 715 00:37:47,880 --> 00:37:51,000 Speaker 1: or a ramp up in the balance She runoff. Hey, 716 00:37:51,120 --> 00:37:53,319 Speaker 1: I think the fact that the SAID may in fact 717 00:37:53,520 --> 00:37:56,240 Speaker 1: begin to sell from its assets rather than just allowing 718 00:37:56,280 --> 00:37:59,800 Speaker 1: them to mature office a far more severe circumstance. That 719 00:38:00,000 --> 00:38:01,600 Speaker 1: act that the FET has allowed the balance sheet to 720 00:38:01,640 --> 00:38:03,919 Speaker 1: get to nine trillion dollars up from nine hundred billion 721 00:38:03,960 --> 00:38:06,840 Speaker 1: dollars a decade ago, is inflationary. The fact that the 722 00:38:06,880 --> 00:38:10,720 Speaker 1: FETs had been calling inflation transitory, the FET was creating 723 00:38:10,719 --> 00:38:13,320 Speaker 1: its own inflation. That's the real problem. So it'll be 724 00:38:13,360 --> 00:38:14,960 Speaker 1: a long period of time that they have to reduce 725 00:38:15,000 --> 00:38:17,000 Speaker 1: the size of the balance sheet. That's the fuel that 726 00:38:17,080 --> 00:38:19,279 Speaker 1: has sponsored the bull market and equities, and that fuel 727 00:38:19,360 --> 00:38:22,359 Speaker 1: is being taken away. Thanks, as always for your thoughts. 728 00:38:22,400 --> 00:38:24,880 Speaker 1: Then it's really appreciate it that Escarpment chairman of the 729 00:38:25,000 --> 00:38:27,760 Speaker 1: Endowment endow an investment committee at the University of acron 730 00:38:27,840 --> 00:38:32,120 Speaker 1: And of course the former publisher of the Gartment Letter Karen. Sorry, Nathan, 731 00:38:32,160 --> 00:38:34,360 Speaker 1: thank you. It's fifty three on Wall Street. Time for 732 00:38:34,400 --> 00:38:36,880 Speaker 1: the Bloomberg's Law Report. Let's get to the legal stories 733 00:38:36,920 --> 00:38:42,920 Speaker 1: we are watching this morning. From Bloomberg's Jeff Billinger. A 734 00:38:43,000 --> 00:38:46,160 Speaker 1: federal appeals court ruled that housing regulators stayed within the 735 00:38:46,280 --> 00:38:49,839 Speaker 1: legal and constitutional limits of their authority when they banned 736 00:38:49,880 --> 00:38:53,440 Speaker 1: smoking in public housing projects that received federal funding. The 737 00:38:53,560 --> 00:38:56,680 Speaker 1: Tenth Circuit rule that long haul truckers released their trucks 738 00:38:56,760 --> 00:39:01,760 Speaker 1: from Pathway Leasing were independent contractors employee subject to minimum 739 00:39:01,800 --> 00:39:05,839 Speaker 1: wage requirements. The Equal Employment Opportunity Commission says Lone Star 740 00:39:06,000 --> 00:39:09,440 Speaker 1: Ambulance of Texas will pay ninety dollars to subtle a 741 00:39:09,520 --> 00:39:14,440 Speaker 1: sexual harassment and retaliation lawsuit. Bloomberg Law everything you need, 742 00:39:14,719 --> 00:39:18,719 Speaker 1: all on one legal research platform, including guidance analysis, and 743 00:39:18,800 --> 00:39:22,680 Speaker 1: Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. 744 00:39:24,640 --> 00:39:27,400 Speaker 1: All right, Jeff, thank you. Now another legal story we're watching. 745 00:39:27,440 --> 00:39:30,799 Speaker 1: According to a Senator report, rich Americans are hiding vast 746 00:39:30,920 --> 00:39:33,880 Speaker 1: sums from the I R S by exploiting a loophole 747 00:39:34,000 --> 00:39:36,960 Speaker 1: and a law designed to crack down an offshore tax evasion. 748 00:39:37,360 --> 00:39:40,080 Speaker 1: For more on this, Bloomberg's Lydia Wheeler and Greg Store 749 00:39:40,400 --> 00:39:44,000 Speaker 1: spoke with Bloomberg News reporter Neil Weinberg. Can you give 750 00:39:44,080 --> 00:39:47,120 Speaker 1: us a sense of how widely this loopholes being used? 751 00:39:47,719 --> 00:39:52,239 Speaker 1: There aren't clear numbers on exactly how much money is involved, 752 00:39:52,600 --> 00:39:56,560 Speaker 1: but the report points out that eight jurisdictions it looked 753 00:39:56,640 --> 00:39:59,920 Speaker 1: at h and these are places like the kyman Ila, 754 00:40:00,640 --> 00:40:04,440 Speaker 1: Saint Kitts, and Nevis, Guernsey. These are well known offshore 755 00:40:04,520 --> 00:40:07,600 Speaker 1: tax havens. And of these eight, there were a total 756 00:40:07,800 --> 00:40:11,280 Speaker 1: of a hundred and twenty eight thousand of these entities. 757 00:40:11,680 --> 00:40:15,920 Speaker 1: So it seems to be a very potentially large scale problem, 758 00:40:16,000 --> 00:40:19,200 Speaker 1: shall we say, Neil, you're writing your story about this 759 00:40:19,600 --> 00:40:23,040 Speaker 1: that the report grew out of an investigation of Robert Brackman, 760 00:40:23,280 --> 00:40:27,000 Speaker 1: a billionaire software developer. Tell us a bit about him 761 00:40:27,200 --> 00:40:31,279 Speaker 1: and about his case, sure, he was a very low 762 00:40:31,480 --> 00:40:37,520 Speaker 1: profile software mobil. He made his original fortune selling software 763 00:40:37,600 --> 00:40:41,920 Speaker 1: to automobile dealerships in the US and elsewhere so they 764 00:40:41,960 --> 00:40:46,120 Speaker 1: could run their operations. He then became the original investor 765 00:40:46,320 --> 00:40:49,879 Speaker 1: in vis To Equity Partners, of private equity firm which 766 00:40:50,000 --> 00:40:54,040 Speaker 1: was launched by Robert Smith. Together they came up with 767 00:40:54,120 --> 00:40:58,239 Speaker 1: a structure in which the profits, the income from the 768 00:40:58,360 --> 00:41:02,279 Speaker 1: investments in Vist Equity Partners would remain off shore, and 769 00:41:03,120 --> 00:41:09,440 Speaker 1: Vista was hugely successful has expanded greatly, investing in mostly 770 00:41:09,600 --> 00:41:14,600 Speaker 1: enterprise software companies, which is Brockman's specialty. And Robert Brockman 771 00:41:14,719 --> 00:41:20,080 Speaker 1: was indicted in on allegations according to the Justice Department, 772 00:41:20,440 --> 00:41:24,440 Speaker 1: that he hid over two billion dollars in income, mostly 773 00:41:24,800 --> 00:41:28,759 Speaker 1: earned at Vista Equity Partners UH and that according to 774 00:41:29,440 --> 00:41:32,560 Speaker 1: the Widen report, the report that just came out, he 775 00:41:32,800 --> 00:41:36,720 Speaker 1: was using this loophole we're referring to where he sets 776 00:41:36,800 --> 00:41:40,880 Speaker 1: up off shore partnerships and then turns them into financial 777 00:41:40,920 --> 00:41:44,480 Speaker 1: institutions which don't have to be reported back to the 778 00:41:44,600 --> 00:41:48,080 Speaker 1: I r S. And as Bloomberg News reporter Neil Weinberg 779 00:41:48,160 --> 00:41:51,160 Speaker 1: speaking at the Bloomberg's Lydio Wheeler and Greg Store. Catch 780 00:41:51,239 --> 00:41:54,040 Speaker 1: more of that interview plus analysis of the latest legal 781 00:41:54,160 --> 00:41:57,719 Speaker 1: news by subscribing to the Bloomberg Law podcast or downloading 782 00:41:57,760 --> 00:42:01,640 Speaker 1: the show have Bloomberg dot Com Slade podcast. Attorneys can 783 00:42:01,680 --> 00:42:05,000 Speaker 1: find exceptional legal research and business development tools at Bloomberg 784 00:42:05,080 --> 00:42:07,560 Speaker 1: Law dot com and on the Bloomberg terminal at b 785 00:42:07,800 --> 00:42:11,359 Speaker 1: Law Go and again. Future is lower this morning, SMP 786 00:42:11,560 --> 00:42:14,600 Speaker 1: futures down thirty seven points down, futures down two hundred 787 00:42:14,680 --> 00:42:17,600 Speaker 1: fifty eight and NASTAG futures down one hundred forty five. 788 00:42:17,719 --> 00:42:21,080 Speaker 1: The ten year treasury down nineteen thirty seconds, yield three 789 00:42:21,160 --> 00:42:23,759 Speaker 1: point one one per cent. They yield on the two 790 00:42:23,880 --> 00:42:27,320 Speaker 1: year three point four six percent, and nine mex screwed 791 00:42:27,360 --> 00:42:29,840 Speaker 1: oil is up one percent or eighty eight cents at 792 00:42:29,920 --> 00:42:32,879 Speaker 1: ninety three dollars ninety four cents and barrel and we're 793 00:42:32,880 --> 00:42:36,600 Speaker 1: watching Bitcoin, which is down seven ten percent at nineteen thousand, 794 00:42:36,760 --> 00:42:40,600 Speaker 1: eight hundred forty dollars still ahead. On Bloomberg, Dave Reak, 795 00:42:40,719 --> 00:42:42,879 Speaker 1: we have a check on the business headlines and all 796 00:42:42,920 --> 00:42:45,719 Speaker 1: the news you need to start your day. And this 797 00:42:46,280 --> 00:42:46,960 Speaker 1: is Bloomberg