WEBVTT - Bloomberg Daybreak: August 29, 2022 - Hour 1 (Radio) 0:00:00.480 --> 0:00:03.160 Live from the Bloomberg and director Berger Studios. This is 0:00:03.160 --> 0:00:06.800 Bloomberg day Break for Monday, August twenty nine two. Coming 0:00:06.840 --> 0:00:10.719 up this hour, hockeysh Federal Reserve continues to weigh on markets. 0:00:10.800 --> 0:00:13.240 Global stock start the week at a one month low. 0:00:13.440 --> 0:00:16.440 The yield on two year treasuries hit a fifteen year high. 0:00:16.560 --> 0:00:19.400 Congress Way, He's in with Elizabeth Moren saying the Fed 0:00:19.480 --> 0:00:22.320 will tip the economy into recession and jobs are in 0:00:22.400 --> 0:00:25.959 focused as Wall Street braces for Friday's payrolls report. NASA's 0:00:25.960 --> 0:00:28.920 on Man Artemis one space capsule has expected to blast 0:00:28.960 --> 0:00:32.120 off to the moon. Plus UN Nuclear Watchdog monitors are 0:00:32.120 --> 0:00:34.680 on their way to Ukraine's Bower Plant. I'm Michael Barr 0:00:34.760 --> 0:00:37.080 more Ahead, I'm John Stashtower. In sports, the Meds and 0:00:37.120 --> 0:00:39.800 the Yankees blost the Jets beat the Giants. Rory mclroy 0:00:39.840 --> 0:00:44.720 won the golf in the US Open. Begins today. That's 0:00:44.760 --> 0:00:48.720 all Strady ahead on Bloomberg Daybreak on Bloomberg eleven Free 0:00:48.720 --> 0:00:51.960 on New York, Bloomberg nineteen nine one, Washington, d C, 0:00:52.440 --> 0:00:56.040 Bloomberg one oh six one, Boston, Bloomberg nine sixties and 0:00:56.120 --> 0:01:00.240 Francisco Sirius XM one nineteen and around the world on 0:01:00.400 --> 0:01:03.680 Bloomberg Radio dot com and via the Bloomberg Business App. 0:01:07.480 --> 0:01:10.680 Good morning, I'm Nathan Hagar and I'm Karen Moscow. US 0:01:10.760 --> 0:01:13.759 future is lower this morning, led by technology. Where coming 0:01:13.800 --> 0:01:15.160 up to find blow one on Wall Street and we 0:01:15.240 --> 0:01:17.560 checked the markets every fifteen minutes throughout the trading day 0:01:17.720 --> 0:01:19.880 on Bloomberg. Right now, U S and P futures are 0:01:19.920 --> 0:01:22.840 down forty one points down, futures down two hundred seventy 0:01:22.840 --> 0:01:26.280 four and NASTACK futures down one hundred sixty three. That's 0:01:26.319 --> 0:01:28.880 down one point three percent. The docks in Germany's down 0:01:28.920 --> 0:01:31.639 one and a half percent ten. Your treasury down nineteen 0:01:31.720 --> 0:01:35.240 thirty seconds here three point one percent, Nathan, Karen. We 0:01:35.240 --> 0:01:38.000 are still feeling the effects of a hawk is J. Powell. 0:01:38.040 --> 0:01:40.360 This morning, Global stocks are at a one month low. 0:01:40.680 --> 0:01:42.320 The last time we saw the yield on the two 0:01:42.400 --> 0:01:45.440 year treasury at this level was two thousand seven. This 0:01:45.480 --> 0:01:48.200 morning slump follows the worst day for US stocks since 0:01:48.280 --> 0:01:51.880 June thirteen. The major indexes all fell at least three percent, 0:01:51.960 --> 0:01:55.560 with the NASTAC plunging almost four percent. The catalyst for 0:01:55.600 --> 0:01:58.720 the sell off, Chairman Powell signaling interest rates will stay 0:01:58.800 --> 0:02:02.840 higher for some time. Katrina L senior economist at Moodies Analytics, 0:02:02.880 --> 0:02:06.240 says the fed shairs comments have broad implications. It makes 0:02:06.280 --> 0:02:09.160 sense to say that US recession odds have also increased 0:02:09.200 --> 0:02:12.160 because that lays a sharp focus on trying to bring 0:02:12.200 --> 0:02:15.440 down inflation is really the priority of the FED at 0:02:15.440 --> 0:02:17.960 this point, and so as a consequence of that, I mean, 0:02:18.000 --> 0:02:21.519 domestic demand just really has to to come down. Katrina 0:02:21.639 --> 0:02:24.400 L with Moody's Analytics says the Feds also uncomfortable with 0:02:24.480 --> 0:02:27.160 the current tightness in the labor market. One point to 0:02:27.400 --> 0:02:31.600 trillion dollars in market value was wiped out on Friday. Well, Nathan, 0:02:31.639 --> 0:02:34.480 the strong message by j Powell and the Fed last week, 0:02:34.520 --> 0:02:37.800 as some on Capitol Hill pushing back. Senator Elizabeth Warren 0:02:37.919 --> 0:02:40.720 says she's worried the Central Bank will tip the US 0:02:40.800 --> 0:02:45.160 economy into recession. Do you know what's worth than high 0:02:45.240 --> 0:02:50.360 prices and a strong economy is high prices and millions 0:02:50.360 --> 0:02:53.720 of people out of work. I'm very worried that the 0:02:53.760 --> 0:02:57.400 Fed is going to tip this economy into recession. Senator 0:02:57.400 --> 0:03:00.919 Elizabeth warrenel CNN she does not, but eve higher interest 0:03:01.000 --> 0:03:04.560 rates will curb current inflationary pressures well j Pallen. The 0:03:04.600 --> 0:03:08.160 Fed will have another key economic report to evaluate this week, Karen. 0:03:08.240 --> 0:03:11.000 On Friday, we get the August jobs report here with 0:03:11.080 --> 0:03:14.519 the preview is Bloomberg's Vinny Dell Judaice Economists a US 0:03:14.560 --> 0:03:17.520 payroll growth moderated after scoring a July gain, and more 0:03:17.560 --> 0:03:21.160 than a half million technology firms have been trimming payrolls 0:03:21.200 --> 0:03:25.600 and freezing hiring, but job openings continuous historic KIS. The 0:03:25.680 --> 0:03:28.320 US unemployment rate is also one of the lowest in decades. 0:03:28.639 --> 0:03:31.959 More numbers. This month's Conference board consumer confidence in DEX 0:03:32.000 --> 0:03:35.200 couldn't prove thanks to lower gasoline prices, while i SM 0:03:35.280 --> 0:03:39.120 data may show modest factory games. Then Eat Judace Bloomberg 0:03:39.200 --> 0:03:41.920 Day Break, Danny, thank you the Wall Street Sell office 0:03:41.960 --> 0:03:44.880 spreading overseas this Monday morning, and we begin our team 0:03:44.920 --> 0:03:48.920 coverage with Bloomberg's Danny Burger live in London. Good morning, Danny, 0:03:49.000 --> 0:03:51.720 Good morning Karen. Yea. It seems risk assets have finally 0:03:51.760 --> 0:03:54.560 gotten the message and from global central bankers that they 0:03:54.600 --> 0:03:57.480 can't be complacent on inflation and not of course will 0:03:57.600 --> 0:04:01.320 require more restrictive policy for some time. So stocks that 0:04:01.360 --> 0:04:04.160 were perhaps expecting a powerble pivot. It means they sell 0:04:04.200 --> 0:04:07.600 off for another trading day. US features those are weaker again, 0:04:07.960 --> 0:04:10.120 but it's also painful. In Europe, we had plenty of 0:04:10.160 --> 0:04:13.560 ECB speakers over the weekend, from sh Novel to Causacks 0:04:13.560 --> 0:04:17.080 to ren talking about the need to act forcefully. Despite 0:04:17.120 --> 0:04:19.000 that that's not giving a lift to the euro. Euro 0:04:19.080 --> 0:04:23.320 trades below parody and across the globe, bonds are under pressure, 0:04:23.560 --> 0:04:26.560 selling off. The one spot of relief UK markets, which 0:04:26.560 --> 0:04:29.360 are closed for the day for UK Bank holiday. Live 0:04:29.400 --> 0:04:31.960 in London, I'm Danny Burger, Bloomberg day breaking. That's what 0:04:32.080 --> 0:04:34.599 counts for relief here, Thank you, Danny. Stocks fell in 0:04:34.640 --> 0:04:37.520 Asia overnight as well. Japan's NIEK led declines with a 0:04:37.600 --> 0:04:39.479 drop of more than two and a half percent. We 0:04:39.480 --> 0:04:43.239 get the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliet, 0:04:43.360 --> 0:04:45.039 Good morning Nathan and Karen. The m s c I 0:04:45.080 --> 0:04:47.880 Asia Pacific Index slumped as much as two point three percent, 0:04:48.000 --> 0:04:51.400 the most since June, with tech, financials and industrials the 0:04:51.400 --> 0:04:54.479 worst performing. Sick is Key equity gauges in Japan and 0:04:54.520 --> 0:04:57.960 Taiwan led regional losses sliding close to three percent. H 0:04:58.000 --> 0:05:00.360 The p BOS said the on show you unfit stronger 0:05:00.400 --> 0:05:03.080 for a fourth session as the Off Show slid through 0:05:03.160 --> 0:05:05.000 six point nine to the dollar for the first time 0:05:05.000 --> 0:05:07.359 in two years, and South Korea is One fell the 0:05:07.400 --> 0:05:09.880 most in eleven weeks to hold it its lowest level 0:05:09.920 --> 0:05:13.200 since April two thousand and nine. In Singapore, Juliette Sale 0:05:13.240 --> 0:05:16.159 Bloomber Daybreak, Actually I thank you a while Staying in Asia, 0:05:16.240 --> 0:05:19.640 economists are turning more bearish on China. According to Bloomberg's 0:05:19.680 --> 0:05:22.960 latest quarterly survey, China's economy is now projected to grow 0:05:23.080 --> 0:05:25.840 just three and a half percent this year. That's down 0:05:25.880 --> 0:05:29.360 from a previous forecast at three point nine percent. Economisty 0:05:29.520 --> 0:05:32.960 lingering risks as turmoil and China's property market and COVID 0:05:32.960 --> 0:05:36.159 outbreaks persist. And one other note out of Asia this morning, Karen. 0:05:36.200 --> 0:05:39.359 Despite China and the US reaching a preliminary deal to 0:05:39.400 --> 0:05:43.120 resolve a standoff over audits, Goldman Sachs says markets are 0:05:43.160 --> 0:05:45.919 still pricing in a fifty percent chance of Chinese companies 0:05:45.960 --> 0:05:49.480 being delisted from US exchanges. Goldman says the risk of 0:05:49.560 --> 0:05:52.200 delisting has come down, but more still needs to be 0:05:52.279 --> 0:05:56.000 done as execution risk remains well Nathan. While there is 0:05:56.080 --> 0:05:59.440 uncertainty about the future of Chinese stocks, in the US, 0:05:59.680 --> 0:06:02.400 mean stocks are here to stay, according to our latest 0:06:02.440 --> 0:06:06.039 survey we get the details from Bloomberg's Jeff Bellinger, Wall 0:06:06.080 --> 0:06:09.920 Street says stocks like Game Stop, AMC Entertainment, and bed 0:06:10.000 --> 0:06:13.280 Beth and Beyond are here to stay. Nearly two thirds 0:06:13.320 --> 0:06:15.880 of the more than five hundred respondents in the latest 0:06:16.040 --> 0:06:18.960 M Live Pulse survey expect some version of the meme 0:06:19.000 --> 0:06:23.120 stock mania to stick around. Speculating in meme stocks has 0:06:23.120 --> 0:06:26.400 been painful this year. A basket of thirty seven retail 0:06:26.480 --> 0:06:30.200 trader favorites tracked by Bloomberg is down nearly forty percent 0:06:30.440 --> 0:06:33.919 in twenty two. The M Live Pulse survey found that 0:06:33.960 --> 0:06:37.039 while the meme stock phenomenon is likely to stick around, 0:06:37.360 --> 0:06:40.200 sixty nine percent said it is unlikely to see the 0:06:40.240 --> 0:06:44.279 trading volumes that did during its January twenty twenty one high, 0:06:44.760 --> 0:06:47.159 nor are such stocks seen as a good bet for 0:06:47.200 --> 0:06:51.320 the remainder of the year. Jeff Bellinger, Bloomberg debreak all right, Jeff, 0:06:51.360 --> 0:06:54.400 and we're watching Bitcoin follows stocks lower this morning. The 0:06:54.480 --> 0:06:58.200 digital tokens trading below twenty thousand is concerns about FED 0:06:58.240 --> 0:07:01.559 policy way on seniment, But for this weekend, Bitcoin hadn't 0:07:01.560 --> 0:07:04.680 been below twenty thousand since July fourteenth, That even crossed 0:07:04.720 --> 0:07:08.600 above twenty five thousand earlier this month. Right now, bitcoins 0:07:08.600 --> 0:07:12.840 trading at nineteen eight hundred dollars. Futures are moving lower 0:07:12.920 --> 0:07:16.200 as well. And straight ahead, we have your latest local 0:07:16.240 --> 0:07:23.560 headlines sand a check of sports. This is Bloomberg five 0:07:23.560 --> 0:07:25.920 oh seven on Wall Street where seventy five degrees in 0:07:26.000 --> 0:07:29.800 Central Park westbound cross Bronx Expressway is closed between White 0:07:29.840 --> 0:07:33.320 Plains Road and Bronx Harbord Parkway for an accident investigation. 0:07:33.320 --> 0:07:35.880 We'll tell you more in Traffic. First, Michael Barr has 0:07:35.920 --> 0:07:37.560 more on what else is going on in New York 0:07:37.600 --> 0:07:40.080 and around the world. Good morning, Michael, Good morning Nathan. 0:07:40.240 --> 0:07:44.080 A fuel leak interrupted NASA's launch countdown for its New 0:07:44.320 --> 0:07:47.960 Moon rocket early this morning, reappearing in the same place 0:07:48.040 --> 0:07:51.160 that saw Sea Page during a dress rehearsal back in 0:07:51.280 --> 0:07:55.200 the spring. Launch controllers halted the tanking operation, which already 0:07:55.240 --> 0:07:58.040 was running an hour late because of thunderstorms off shore. 0:07:58.600 --> 0:08:01.320 As for the excitement of out the mission, Taylor Leonard 0:08:01.640 --> 0:08:04.320 helped build part of the moon rocket that will eventually 0:08:04.320 --> 0:08:07.000 put Americans back on the Moon. I'm very pumped. So 0:08:07.080 --> 0:08:08.720 I was actually a part of the test team that 0:08:08.840 --> 0:08:13.200 tested the functionality of the racketed avionics. So it's super exciting. 0:08:13.440 --> 0:08:16.400 Um like seeing your work right here, you know, it's 0:08:16.400 --> 0:08:20.120 pretty cool, Taylor Leonard. The plan is for O'Rion, with 0:08:20.160 --> 0:08:22.680 three test dummies on board, to loop around the Moon 0:08:22.720 --> 0:08:25.240 and come back to Earth. The head of the International 0:08:25.240 --> 0:08:28.600 Atomic Energy Agency says that the UN Nuclear watch dogs 0:08:28.640 --> 0:08:31.360 long awaited expert mission to the power plan in Ukraine 0:08:31.880 --> 0:08:35.480 is now on its way. Russia and Ukraine have traded 0:08:35.559 --> 0:08:38.679 claims of strikes at or near the plan in recent days, 0:08:39.040 --> 0:08:43.040 intensifying figures that the fighting could cause a massive radiation leak. 0:08:43.559 --> 0:08:45.760 It was a violent weekend in New York City after 0:08:45.800 --> 0:08:49.000 more than a dozen people was shot, several fatally. That 0:08:49.160 --> 0:08:51.880 includes a shooting on the boarder walk on Coney Island 0:08:51.880 --> 0:08:55.640 that left one person dead and four others hurt. Police 0:08:55.679 --> 0:08:58.280 in Bend, Oregon and confirmed three people are dead following 0:08:58.320 --> 0:09:01.000 a shooting at the grocery store. The meal shooter killed 0:09:01.000 --> 0:09:03.960 two people at a Costco officers then entered the store 0:09:04.000 --> 0:09:08.240 and found the suspected shooter dead. Bend Police Chief Mike Krantz, 0:09:08.320 --> 0:09:10.920 as the suspect was armed with an a R fifteen 0:09:10.960 --> 0:09:13.720 style rifle. We have officers from every agency in central 0:09:13.760 --> 0:09:16.559 Oregon as well as the FBI, Ben Fire and Rescue 0:09:16.920 --> 0:09:19.320 and other agencies on scene and assistant. We are very 0:09:19.440 --> 0:09:22.960 preship of this home. Ben Police Chief Mike Rantz. Senate 0:09:23.000 --> 0:09:26.240 Majority Leader Chuck Schumer welcome President Joe Biden's federal Student 0:09:26.280 --> 0:09:30.160 Loan Forgiveness plan. Schumer urged loan processors to prepare for 0:09:30.240 --> 0:09:33.160 a wave of inquiries about the program. All on all 0:09:33.240 --> 0:09:36.240 of the loan processors to be at the ready for 0:09:36.360 --> 0:09:39.320 the wave of calls that's starting to come in and 0:09:39.400 --> 0:09:43.120 let students know how they apply and what their rights are. 0:09:43.520 --> 0:09:46.280 Senator Schumer of New York says college used to be 0:09:46.320 --> 0:09:48.760 a ladder up, but student debt has become an anchor 0:09:48.800 --> 0:09:52.560 around the ankles of our students. Global News twenty four 0:09:52.600 --> 0:09:55.120 hours a day on air and on Bloomberg Quick Take, 0:09:55.200 --> 0:09:58.000 powered by more than twenty seven hundred journalists, analysts more 0:09:58.000 --> 0:10:00.800 than a hundred twenty countries. Michael are and this is 0:10:00.840 --> 0:10:08.160 Bloomberg Naked. Thanks Michael, throwing up to five ten on 0:10:08.200 --> 0:10:10.400 Wall Street. Time for the Bloomberg Sports up take Good morning, 0:10:10.480 --> 0:10:13.280 John Sesshire, Good morning. They depended when the Yankees were slumping, 0:10:13.320 --> 0:10:16.480 going three and fourteen, they weren't hitting, and they won 0:10:16.559 --> 0:10:19.400 five in a row. With those offensive woes resurfaced in Oakland, 0:10:19.440 --> 0:10:22.559 only one hit and an eleven inning lost Saturday, and 0:10:22.559 --> 0:10:25.280 then only four singles yesterday and the eight's won four 0:10:25.320 --> 0:10:27.439 to one. The Yanks moved down to Anaheim. They'll face 0:10:27.480 --> 0:10:30.160 the Angels tonight. The Mets man is only three hits, 0:10:30.200 --> 0:10:33.280 all of them singles against Herman Marquez and two relievers. 0:10:33.280 --> 0:10:36.439 Colorado scored in the seventh thirty off Max Scherzer and 0:10:36.480 --> 0:10:38.720 the Rockies won, wondering up into salvage the game in 0:10:38.720 --> 0:10:41.439 the series. Atlanta lost last night in St. Louis, the 0:10:41.480 --> 0:10:44.720 Mets remaining three games ahead. The annual Jets Giants preseason 0:10:44.760 --> 0:10:47.440 game not decided until the final minute that Chris Traveler 0:10:47.520 --> 0:10:50.680 touchdown passed with twenty two seconds left at Calvin Jackson 0:10:51.040 --> 0:10:54.319 for a thirty one seven back and forth Jets victory, 0:10:54.440 --> 0:10:57.600 second time in three preseason games that those two hooked 0:10:57.640 --> 0:10:59.400 up for a game winning TV in the final minute. 0:10:59.440 --> 0:11:01.280 The Jets went three and oh in the preseason, the 0:11:01.320 --> 0:11:03.680 Giant for two and one. They did not use Daniel Jones. 0:11:03.920 --> 0:11:06.120 They started to Eyrod Taylor and then he heard his back. 0:11:06.520 --> 0:11:08.640 Not believed to be a serious Inndon. The golf season 0:11:08.720 --> 0:11:11.120 ended in Atlanta with a big comeback by Rory McElroy. 0:11:11.160 --> 0:11:14.480 Back on Thursday, he was ten shots behind Scottie Scheffery, 0:11:14.520 --> 0:11:17.360 trailed by six when the final round began. He won 0:11:17.640 --> 0:11:20.120 by one, really giving myself much of a challenge stand 0:11:20.160 --> 0:11:23.920 off and the fourth rowned. I thought, you know, silver 0:11:24.000 --> 0:11:25.920 lining was I was playing in the last groups so 0:11:25.960 --> 0:11:28.120 I could at least keep an eye on what he 0:11:28.160 --> 0:11:31.760 was doing if if things didn't quite work out for him, 0:11:31.800 --> 0:11:34.800 and um, you know, thankfully I was in that last 0:11:34.800 --> 0:11:37.240 group because you know, I was able to put some 0:11:37.320 --> 0:11:40.040 pressure on him early on third Tour Championship victory. He 0:11:40.080 --> 0:11:44.480 wins eighteen million dollars. US Open begins today. Serena Williams 0:11:44.559 --> 0:11:48.600 plays tonight. John Dash Award, all right, John, thank you 0:11:48.640 --> 0:11:51.280 to sell off continues on Wall Street and around the world. 0:11:51.440 --> 0:11:54.320 SMP futures down thirty seven points down, futures down two 0:11:54.360 --> 0:11:57.920 hundred fifty eight. Nastack futures leading the declines, down one 0:11:58.000 --> 0:12:01.000 hundred fifty points. We check in next with Dennis Gartman, 0:12:01.400 --> 0:12:04.520 the former publisher of The Gardener Letter. This is Bloomberg 0:12:07.440 --> 0:12:10.079 Bloomberg eleven three oh weather morning Clouds Littles are mostly 0:12:10.120 --> 0:12:12.360 sunny today with highs in the upper eighties. Chance relate. 0:12:12.440 --> 0:12:16.440 They shower tomorrow, otherwise mostly sunny, uper eighties again mostly sunny. 0:12:16.480 --> 0:12:19.000 Opper eight is on Wednesday right now seventy five in 0:12:19.080 --> 0:12:25.240 Central Park markets. Headlines and breaking news twenty four hours 0:12:25.240 --> 0:12:28.000 a day at Bloomberg dot Com, at the Bloomberg Business 0:12:28.040 --> 0:12:37.600 out and at Bloomberg Quicktape is a Bloomberg Business Flash. 0:12:38.040 --> 0:12:40.960 And I'm Karen Moscow. Federal Reserve charge your own Powell's 0:12:40.960 --> 0:12:44.600 signal of higher for longer interest rates coursing through markets, 0:12:44.600 --> 0:12:47.600 sinking stocks and equity futures, and lifting two year treasury 0:12:47.640 --> 0:12:50.959 yields to levels less seen in two thousand seven. We 0:12:51.120 --> 0:12:53.560 checked the markets every fifteen minutes throughout the trading day 0:12:53.679 --> 0:12:55.960 on Bloomberg. Right now, MUST and P futures are down 0:12:56.000 --> 0:12:59.200 about thirty seven points down, futures down two fifty six, 0:12:59.559 --> 0:13:02.120 and as day futures down one hundred forty six the 0:13:02.200 --> 0:13:05.199 decks in Germany's down one point four percent. Ten year 0:13:05.240 --> 0:13:07.960 treasury down nineteen thirty seconds, you know, three point one 0:13:07.960 --> 0:13:10.400 one percent they yield on the two year three point 0:13:10.400 --> 0:13:14.000 four six percent. Ninemex screwed oils up one percent, or 0:13:14.080 --> 0:13:16.360 ninety two cents at ninety three dollars, ninety eight cents 0:13:16.360 --> 0:13:18.920 of barrel comes goal, down nine tenths per cent, or 0:13:18.920 --> 0:13:22.160 fifteen dollars twenty cents a seventeen thirty four sixty an ounce. 0:13:22.559 --> 0:13:25.600 The euro is at point nine three against the dollar, 0:13:25.679 --> 0:13:28.360 British bound one point one six six six and again 0:13:28.440 --> 0:13:30.920 one thirty eight point six four. And look at a 0:13:30.960 --> 0:13:34.040 bitcoin this morning. It is down nine tenths per cent 0:13:34.120 --> 0:13:38.559 in nineteen thousand, eight hundred dollars. And that's a bloomberg 0:13:38.559 --> 0:13:41.160 business flash. Now here's Michael Barr with Moore on what's 0:13:41.160 --> 0:13:44.000 going on around the world. Michael, good morning, Good morning, Karen. 0:13:44.080 --> 0:13:47.600 The Artemius Moon rocket launch is proceeding towards a morning 0:13:47.640 --> 0:13:50.440 lift off in the Kennedy Space Center in Florida. The 0:13:50.559 --> 0:13:53.520 goal is for the Orion capsule, with three test dummies 0:13:53.559 --> 0:13:56.000 on board, to loop around the Moon and come back 0:13:56.040 --> 0:13:59.440 to Earth. Top intelligence officials are working with the Justice 0:13:59.480 --> 0:14:03.319 Departments to conduct a quote risk assessment to see a 0:14:03.400 --> 0:14:06.760 former President Trump's handling of classified documents found that his 0:14:06.840 --> 0:14:11.400 more Lago home compromise national security. In baseball, the Yankees 0:14:11.440 --> 0:14:15.040 lost to the A's four one. The Mets lost along 0:14:15.080 --> 0:14:18.240 with the Red Sox, Orioles and Giants the Nationals one. 0:14:18.679 --> 0:14:21.640 In the final preseason NFL game, the Jets beat the 0:14:21.680 --> 0:14:26.640 Giants seven. Dennis The US Open begins today. Global News 0:14:26.640 --> 0:14:29.640 twenty four hours a day on air and on Bloomberg Quicktake, 0:14:29.840 --> 0:14:32.840 powered by more than twenty seven hundred journalists and analysts, 0:14:32.840 --> 0:14:35.400 are more than a hundred twenty countries. Michael Barr and 0:14:35.480 --> 0:14:38.160 this is Bloomberg. Nathan all right, Michael, thank you. It's 0:14:38.160 --> 0:14:40.880 five nineteen on Wall Street Life from the Bloomberg Interactive 0:14:40.880 --> 0:14:44.440 Broker Studios. This is Bloomberg daybreaking. When markets open on 0:14:44.440 --> 0:14:47.720 Wall Street this morning, we could see even more losses 0:14:47.840 --> 0:14:50.360 on the back of Chairman Palace comments at Jackson Hall 0:14:50.760 --> 0:14:53.240 ahead of that. We're joined by Dennis Gartman, the former 0:14:53.240 --> 0:14:55.840 publisher of the Gartment Letter, now chairman of the University 0:14:55.840 --> 0:14:59.960 of Akront Endowment Investment Committee. Dennis Risk Investors have been 0:15:00.080 --> 0:15:02.960 running for the hills. Since Chairman Powell's are marks at 0:15:03.000 --> 0:15:06.080 the mountains of Jackson Hole, Wyoming. How much further do 0:15:06.120 --> 0:15:09.040 you think this selloff has to go? How maybe it 0:15:09.080 --> 0:15:11.000 goes a lot lower. I've been running for the hills 0:15:11.000 --> 0:15:13.960 since December thirty one to last year as the chairman 0:15:13.960 --> 0:15:16.840 of the University of Acranson Downman, I actually moved with 0:15:16.960 --> 0:15:19.600 hard to get the other committee members to move twelve 0:15:20.400 --> 0:15:22.840 of our portfolio out of equities on December thirty one, 0:15:22.880 --> 0:15:25.960 and we did. Last February, we actually moved three percent 0:15:26.000 --> 0:15:29.680 of our portfolio out of stocks into gold two hedge 0:15:29.720 --> 0:15:32.320 against what I thought was going to be a ratcheting 0:15:32.400 --> 0:15:37.600 up of inflation. And clearly Chairman Powell was extraordinarily sacristanc 0:15:37.760 --> 0:15:43.760 extraordinarily concise, extraordinarily straightforward with his comments on Friday concerning inflation. 0:15:44.280 --> 0:15:46.480 I think stock prices go a lot lower from here. 0:15:46.520 --> 0:15:49.080 I think yields go at the two year go a 0:15:49.120 --> 0:15:51.880 lot higher from here. I think we're in for problems. 0:15:51.920 --> 0:15:53.920 So that's going to last for a quite some period 0:15:53.920 --> 0:15:56.040 of time. And if I've learned anything in the fifty 0:15:56.120 --> 0:15:58.360 years nearly fifty years of being involved in the markets, 0:15:58.800 --> 0:16:01.080 once the FED begins to age its policy, and the 0:16:01.080 --> 0:16:04.600 Fed changes policy six months ago from the easy monetary 0:16:04.640 --> 0:16:08.360 policy the tightening policy. It usually lasts not weeks, not months, 0:16:08.360 --> 0:16:10.960 but several years. So I think we're gonna see higher 0:16:11.040 --> 0:16:13.560 rates for a long period of time, and once they 0:16:13.600 --> 0:16:16.640 get beyond four percent in the overnight Said funds rate, 0:16:17.000 --> 0:16:18.800 we may stay there for a year or two. So 0:16:18.960 --> 0:16:22.000 be careful, be very careful. In a bear market. Here 0:16:22.080 --> 0:16:23.960 see who loses the least amount of money will be 0:16:23.960 --> 0:16:26.400 the winner, and thus far the University of Akron has 0:16:26.440 --> 0:16:30.000 lost a lot less than other endowments. In my own account, 0:16:30.000 --> 0:16:34.040 I'm basically neutral to slightly bearish for the stock market, 0:16:34.440 --> 0:16:36.520 so I think we go a lot lower. All I 0:16:36.560 --> 0:16:38.840 can urge, Just be careful out there. Things could get 0:16:38.840 --> 0:16:40.880 a lot worse before they get any any better, maybe 0:16:41.080 --> 0:16:43.480 a long period of time before we see the ted 0:16:43.760 --> 0:16:46.640 pivot on. It's the monetary policies, and it's going to 0:16:46.720 --> 0:16:48.920 take to the overnight Fed funds rate seventy five basis 0:16:48.960 --> 0:16:52.240 points higher in in September and at least a hundred 0:16:52.280 --> 0:16:54.680 fifty basis points higher before the end of the year. 0:16:54.960 --> 0:16:57.920 Interesting that you think that the Fed funds rate stays 0:16:58.000 --> 0:17:01.320 around four percent for a year or longer. So you 0:17:01.360 --> 0:17:05.239 don't think that this week, this week's payrolls report for 0:17:05.280 --> 0:17:08.520 August is going to have any impact on what the 0:17:08.520 --> 0:17:11.040 FED might do from here on out. It's going to 0:17:11.119 --> 0:17:14.680 be a very strong UH employment number, probably two hundred 0:17:14.680 --> 0:17:18.000 fifty three hundred thousand in not farm payrolls. But I 0:17:18.040 --> 0:17:19.880 think the FED is already looking past that. I think 0:17:19.880 --> 0:17:21.600 the FED has no choice but to look past that. 0:17:22.119 --> 0:17:24.200 I think it has to at the same time begin 0:17:24.280 --> 0:17:26.439 the policy which had said I was going to do, 0:17:26.480 --> 0:17:28.879 and it thus far hasn't, of reducing the size of 0:17:28.920 --> 0:17:31.959 its balance sheet. UH. The the assets on hand are 0:17:32.000 --> 0:17:35.240 still extraordinary high, almost over nine trillion dollars compared to 0:17:35.320 --> 0:17:38.720 nine billion a decade ago. They have to take sixty 0:17:38.760 --> 0:17:40.840 five They have to take billion dollars out of the 0:17:40.920 --> 0:17:42.960 out of their assets on the every month from here 0:17:43.000 --> 0:17:45.680 on for at least two to three years, and thus 0:17:45.720 --> 0:17:48.440 far they haven't been doing quite that. So there there 0:17:48.480 --> 0:17:53.359 had been some UH monetary policy changes, a lessening of 0:17:53.400 --> 0:17:55.640 monetary policy changes that I think have to become far 0:17:55.680 --> 0:17:57.560 more severe over the course of the next several years. 0:17:57.560 --> 0:18:00.679 So again, be very careful you in the past that 0:18:00.760 --> 0:18:03.080 the unwinded. The balance sheet is going to be more 0:18:03.119 --> 0:18:07.720 important for markets than the increases in interest rates. What 0:18:07.840 --> 0:18:09.879 do you think is going to happen when it comes 0:18:09.880 --> 0:18:14.640 to the balance sheet at the Fed's next meeting next month. Actually, 0:18:14.960 --> 0:18:16.520 thus far, I said that all they're gonna do is 0:18:16.520 --> 0:18:20.119 allowing assets to roll off, to mature off, to to 0:18:20.280 --> 0:18:22.600 simply two year no speak come over, and I said 0:18:22.640 --> 0:18:24.920 funds or hates in other words. But now I think 0:18:24.920 --> 0:18:27.320 then I actually turned to the point of actually beginning 0:18:27.359 --> 0:18:29.680 to sell from their from their balance sheet. We'll see 0:18:29.680 --> 0:18:32.359 if that if that happens, I hope they don't because 0:18:32.359 --> 0:18:34.560 that would even be more severe. But they said that 0:18:34.560 --> 0:18:36.800 they're gonna take nine billion dollars out of their balance 0:18:36.800 --> 0:18:39.240 sheet on a monthly basis. We'll see if they continue 0:18:39.240 --> 0:18:41.160 to do so. They have to do so over time, 0:18:41.560 --> 0:18:43.399 they have to reduce the size of their assets, and 0:18:43.440 --> 0:18:46.080 I think that that's far more severe than actually taking 0:18:46.080 --> 0:18:49.080 the overnight paid funds right beyond four percent. So pay 0:18:49.119 --> 0:18:51.280 attention to what they're doing when they're in their balance sheet, 0:18:51.320 --> 0:18:54.000 and thus far they have not been as aggressive as 0:18:54.040 --> 0:18:56.040 I think they should be. We'll see if they actually 0:18:56.040 --> 0:18:58.159 turn into selling from their balance sheet, which, as I 0:18:58.160 --> 0:18:59.800 said earlier, I hope they don't. I hope they just 0:18:59.800 --> 0:19:03.320 the things the mature offllon dollars a month, but they're 0:19:03.760 --> 0:19:05.840 nine trillion dollars is a lot when you're only taking 0:19:05.920 --> 0:19:09.320 nine billion out each month. Dennis Government with us for 0:19:09.359 --> 0:19:12.240 the hour here on Bloomberg Daybreak, the former publisher of 0:19:12.240 --> 0:19:15.040 the Gvernment Letter, of course, now chairman of the University 0:19:15.080 --> 0:19:18.280 of Akront Endowment Investment Committee. Will get more of Dennis's 0:19:18.320 --> 0:19:21.800 thoughts throughout this hour on the path for federal reserve 0:19:21.880 --> 0:19:25.640 policy and where risk assets could go from here. With 0:19:25.720 --> 0:19:29.280 the FED making it pretty clear at Jackson Hole last 0:19:29.280 --> 0:19:32.919 week that it is going to stay aggressive against inflation, 0:19:33.119 --> 0:19:36.520 keeping rates higher for longer, perhaps than markets had been 0:19:36.560 --> 0:19:39.359 pricing in. And as we look at futures this morning, 0:19:39.640 --> 0:19:42.840 we are seeing the selling continue, with SMP futures down 0:19:42.880 --> 0:19:46.120 thirty eight points down, futures down two hundred sixty six, 0:19:46.200 --> 0:19:49.320 Nasdaq futures are lower by a hundred fifty two points, 0:19:49.600 --> 0:19:52.680 the tenure Treasury down nineteen thirty seconds, the three point 0:19:52.720 --> 0:19:54.840 one percent, and the yield on the two year at 0:19:54.840 --> 0:19:59.000 a fifteen year high at three point four six per cent. 0:19:59.600 --> 0:20:08.200 You are our listening to Bloomberg day Break Bloomberg eleven 0:20:08.200 --> 0:20:10.359 three oh weather turning mostly sunny today with HIGs in 0:20:10.400 --> 0:20:12.600 the upper eighties. Can see a late day shower tomorrow 0:20:12.640 --> 0:20:16.480 upper eighties. Some thunderstorms tomorrow night possible. By Wednesday will 0:20:16.520 --> 0:20:18.679 be mostly sunny again with highs and the uper eighties. 0:20:22.440 --> 0:20:27.000 Broadcasting live from the Bloomberg Interactive Broker Studio in New York, 0:20:27.080 --> 0:20:31.760 Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, 0:20:31.840 --> 0:20:35.240 Bloomberg one O six one to San Francisco, Bloomberg NOME 0:20:35.359 --> 0:20:38.440 sixty to the Country, Sirius XM to the one nine team, 0:20:38.560 --> 0:20:41.720 and around the globe the Bloomberg Business apt and Bloomberg 0:20:41.800 --> 0:20:51.359 Radio dot Com. This is Bloomberg Daybreak. It's five thirty 0:20:51.359 --> 0:20:53.800 on Wall Street. Good morning. I'm Nathan Hager and I'm 0:20:53.840 --> 0:20:56.640 Karin Moscow. We are just about four hours away from 0:20:56.640 --> 0:20:58.440 the open of US trading. Let's catch you up to 0:20:58.520 --> 0:20:59.840 day on the news. You need to know what this 0:21:00.000 --> 0:21:02.560 shower was. Still feeling the impact of a hawk ish 0:21:02.560 --> 0:21:05.919 fed this morning. US futures are falling in global stocks. 0:21:05.920 --> 0:21:09.200 You're at a one month low, not after Friday's major drop, 0:21:09.240 --> 0:21:12.160 which was the worst day for US stocks in student thirteenth. 0:21:12.359 --> 0:21:14.960