Speaker 1: Live from the Bloomberg and director Berger Studios. This is
Speaker 1: Bloomberg day Break for Monday, August twenty nine two. Coming
Speaker 1: up this hour, hockeysh Federal Reserve continues to weigh on markets.
Speaker 1: Global stock start the week at a one month low.
Speaker 1: The yield on two year treasuries hit a fifteen year high.
Speaker 1: Congress Way, He's in with Elizabeth Moren saying the Fed
Speaker 1: will tip the economy into recession and jobs are in
Speaker 1: focused as Wall Street braces for Friday's payrolls report. NASA's
Speaker 1: on Man Artemis one space capsule has expected to blast
Speaker 1: off to the moon. Plus UN Nuclear Watchdog monitors are
Speaker 1: on their way to Ukraine's Bower Plant. I'm Michael Barr
Speaker 1: more Ahead, I'm John Stashtower. In sports, the Meds and
Speaker 1: the Yankees blost the Jets beat the Giants. Rory mclroy
Speaker 1: won the golf in the US Open. Begins today. That's
Speaker 1: all Strady ahead on Bloomberg Daybreak on Bloomberg eleven Free
Speaker 1: on New York, Bloomberg nineteen nine one, Washington, d C,
Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and
Speaker 1: Francisco Sirius XM one nineteen and around the world on
Speaker 1: Bloomberg Radio dot com and via the Bloomberg Business App.
Speaker 1: Good morning, I'm Nathan Hagar and I'm Karen Moscow. US
Speaker 1: future is lower this morning, led by technology. Where coming
Speaker 1: up to find blow one on Wall Street and we
Speaker 1: checked the markets every fifteen minutes throughout the trading day
Speaker 1: on Bloomberg. Right now, U S and P futures are
Speaker 1: down forty one points down, futures down two hundred seventy
Speaker 1: four and NASTACK futures down one hundred sixty three. That's
Speaker 1: down one point three percent. The docks in Germany's down
Speaker 1: one and a half percent ten. Your treasury down nineteen
Speaker 1: thirty seconds here three point one percent, Nathan, Karen. We
Speaker 1: are still feeling the effects of a hawk is J. Powell.
Speaker 1: This morning, Global stocks are at a one month low.
Speaker 1: The last time we saw the yield on the two
Speaker 1: year treasury at this level was two thousand seven. This
Speaker 1: morning slump follows the worst day for US stocks since
Speaker 1: June thirteen. The major indexes all fell at least three percent,
Speaker 1: with the NASTAC plunging almost four percent. The catalyst for
Speaker 1: the sell off, Chairman Powell signaling interest rates will stay
Speaker 1: higher for some time. Katrina L senior economist at Moodies Analytics,
Speaker 1: says the fed shairs comments have broad implications. It makes
Speaker 1: sense to say that US recession odds have also increased
Speaker 1: because that lays a sharp focus on trying to bring
Speaker 1: down inflation is really the priority of the FED at
Speaker 1: this point, and so as a consequence of that, I mean,
Speaker 1: domestic demand just really has to to come down. Katrina
Speaker 1: L with Moody's Analytics says the Feds also uncomfortable with
Speaker 1: the current tightness in the labor market. One point to
Speaker 1: trillion dollars in market value was wiped out on Friday. Well, Nathan,
Speaker 1: the strong message by j Powell and the Fed last week,
Speaker 1: as some on Capitol Hill pushing back. Senator Elizabeth Warren
Speaker 1: says she's worried the Central Bank will tip the US
Speaker 1: economy into recession. Do you know what's worth than high
Speaker 1: prices and a strong economy is high prices and millions
Speaker 1: of people out of work. I'm very worried that the
Speaker 1: Fed is going to tip this economy into recession. Senator
Speaker 1: Elizabeth warrenel CNN she does not, but eve higher interest
Speaker 1: rates will curb current inflationary pressures well j Pallen. The
Speaker 1: Fed will have another key economic report to evaluate this week, Karen.
Speaker 1: On Friday, we get the August jobs report here with
Speaker 1: the preview is Bloomberg's Vinny Dell Judaice Economists a US
Speaker 1: payroll growth moderated after scoring a July gain, and more
Speaker 1: than a half million technology firms have been trimming payrolls
Speaker 1: and freezing hiring, but job openings continuous historic KIS. The
Speaker 1: US unemployment rate is also one of the lowest in decades.
Speaker 1: More numbers. This month's Conference board consumer confidence in DEX
Speaker 1: couldn't prove thanks to lower gasoline prices, while i SM
Speaker 1: data may show modest factory games. Then Eat Judace Bloomberg
Speaker 1: Day Break, Danny, thank you the Wall Street Sell office
Speaker 1: spreading overseas this Monday morning, and we begin our team
Speaker 1: coverage with Bloomberg's Danny Burger live in London. Good morning, Danny,
Speaker 1: Good morning Karen. Yea. It seems risk assets have finally
Speaker 1: gotten the message and from global central bankers that they
Speaker 1: can't be complacent on inflation and not of course will
Speaker 1: require more restrictive policy for some time. So stocks that
Speaker 1: were perhaps expecting a powerble pivot. It means they sell
Speaker 1: off for another trading day. US features those are weaker again,
Speaker 1: but it's also painful. In Europe, we had plenty of
Speaker 1: ECB speakers over the weekend, from sh Novel to Causacks
Speaker 1: to ren talking about the need to act forcefully. Despite
Speaker 1: that that's not giving a lift to the euro. Euro
Speaker 1: trades below parody and across the globe, bonds are under pressure,
Speaker 1: selling off. The one spot of relief UK markets, which
Speaker 1: are closed for the day for UK Bank holiday. Live
Speaker 1: in London, I'm Danny Burger, Bloomberg day breaking. That's what
Speaker 1: counts for relief here, Thank you, Danny. Stocks fell in
Speaker 1: Asia overnight as well. Japan's NIEK led declines with a
Speaker 1: drop of more than two and a half percent. We
Speaker 1: get the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliet,
Speaker 1: Good morning Nathan and Karen. The m s c I
Speaker 1: Asia Pacific Index slumped as much as two point three percent,
Speaker 1: the most since June, with tech, financials and industrials the
Speaker 1: worst performing. Sick is Key equity gauges in Japan and
Speaker 1: Taiwan led regional losses sliding close to three percent. H
Speaker 1: The p BOS said the on show you unfit stronger
Speaker 1: for a fourth session as the Off Show slid through
Speaker 1: six point nine to the dollar for the first time
Speaker 1: in two years, and South Korea is One fell the
Speaker 1: most in eleven weeks to hold it its lowest level
Speaker 1: since April two thousand and nine. In Singapore, Juliette Sale
Speaker 1: Bloomber Daybreak, Actually I thank you a while Staying in Asia,
Speaker 1: economists are turning more bearish on China. According to Bloomberg's
Speaker 1: latest quarterly survey, China's economy is now projected to grow
Speaker 1: just three and a half percent this year. That's down
Speaker 1: from a previous forecast at three point nine percent. Economisty
Speaker 1: lingering risks as turmoil and China's property market and COVID
Speaker 1: outbreaks persist. And one other note out of Asia this morning, Karen.
Speaker 1: Despite China and the US reaching a preliminary deal to
Speaker 1: resolve a standoff over audits, Goldman Sachs says markets are
Speaker 1: still pricing in a fifty percent chance of Chinese companies
Speaker 1: being delisted from US exchanges. Goldman says the risk of
Speaker 1: delisting has come down, but more still needs to be
Speaker 1: done as execution risk remains well Nathan. While there is
Speaker 1: uncertainty about the future of Chinese stocks, in the US,
Speaker 1: mean stocks are here to stay, according to our latest
Speaker 1: survey we get the details from Bloomberg's Jeff Bellinger, Wall
Speaker 1: Street says stocks like Game Stop, AMC Entertainment, and bed
Speaker 1: Beth and Beyond are here to stay. Nearly two thirds
Speaker 1: of the more than five hundred respondents in the latest
Speaker 1: M Live Pulse survey expect some version of the meme
Speaker 1: stock mania to stick around. Speculating in meme stocks has
Speaker 1: been painful this year. A basket of thirty seven retail
Speaker 1: trader favorites tracked by Bloomberg is down nearly forty percent
Speaker 1: in twenty two. The M Live Pulse survey found that
Speaker 1: while the meme stock phenomenon is likely to stick around,
Speaker 1: sixty nine percent said it is unlikely to see the
Speaker 1: trading volumes that did during its January twenty twenty one high,
Speaker 1: nor are such stocks seen as a good bet for
Speaker 1: the remainder of the year. Jeff Bellinger, Bloomberg debreak all right, Jeff,
Speaker 1: and we're watching Bitcoin follows stocks lower this morning. The
Speaker 1: digital tokens trading below twenty thousand is concerns about FED
Speaker 1: policy way on seniment, But for this weekend, Bitcoin hadn't
Speaker 1: been below twenty thousand since July fourteenth, That even crossed
Speaker 1: above twenty five thousand earlier this month. Right now, bitcoins
Speaker 1: trading at nineteen eight hundred dollars. Futures are moving lower
Speaker 1: as well. And straight ahead, we have your latest local
Speaker 1: headlines sand a check of sports. This is Bloomberg five
Speaker 1: oh seven on Wall Street where seventy five degrees in
Speaker 1: Central Park westbound cross Bronx Expressway is closed between White
Speaker 1: Plains Road and Bronx Harbord Parkway for an accident investigation.
Speaker 1: We'll tell you more in Traffic. First, Michael Barr has
Speaker 1: more on what else is going on in New York
Speaker 1: and around the world. Good morning, Michael, Good morning Nathan.
Speaker 1: A fuel leak interrupted NASA's launch countdown for its New
Speaker 1: Moon rocket early this morning, reappearing in the same place
Speaker 1: that saw Sea Page during a dress rehearsal back in
Speaker 1: the spring. Launch controllers halted the tanking operation, which already
Speaker 1: was running an hour late because of thunderstorms off shore.
Speaker 1: As for the excitement of out the mission, Taylor Leonard
Speaker 1: helped build part of the moon rocket that will eventually
Speaker 1: put Americans back on the Moon. I'm very pumped. So
Speaker 1: I was actually a part of the test team that
Speaker 1: tested the functionality of the racketed avionics. So it's super exciting.
Speaker 1: Um like seeing your work right here, you know, it's
Speaker 1: pretty cool, Taylor Leonard. The plan is for O'Rion, with
Speaker 1: three test dummies on board, to loop around the Moon
Speaker 1: and come back to Earth. The head of the International
Speaker 1: Atomic Energy Agency says that the UN Nuclear watch dogs
Speaker 1: long awaited expert mission to the power plan in Ukraine
Speaker 1: is now on its way. Russia and Ukraine have traded
Speaker 1: claims of strikes at or near the plan in recent days,
Speaker 1: intensifying figures that the fighting could cause a massive radiation leak.
Speaker 1: It was a violent weekend in New York City after
Speaker 1: more than a dozen people was shot, several fatally. That
Speaker 1: includes a shooting on the boarder walk on Coney Island
Speaker 1: that left one person dead and four others hurt. Police
Speaker 1: in Bend, Oregon and confirmed three people are dead following
Speaker 1: a shooting at the grocery store. The meal shooter killed
Speaker 1: two people at a Costco officers then entered the store
Speaker 1: and found the suspected shooter dead. Bend Police Chief Mike Krantz,
Speaker 1: as the suspect was armed with an a R fifteen
Speaker 1: style rifle. We have officers from every agency in central
Speaker 1: Oregon as well as the FBI, Ben Fire and Rescue
Speaker 1: and other agencies on scene and assistant. We are very
Speaker 1: preship of this home. Ben Police Chief Mike Rantz. Senate
Speaker 1: Majority Leader Chuck Schumer welcome President Joe Biden's federal Student
Speaker 1: Loan Forgiveness plan. Schumer urged loan processors to prepare for
Speaker 1: a wave of inquiries about the program. All on all
Speaker 1: of the loan processors to be at the ready for
Speaker 1: the wave of calls that's starting to come in and
Speaker 1: let students know how they apply and what their rights are.
Speaker 1: Senator Schumer of New York says college used to be
Speaker 1: a ladder up, but student debt has become an anchor
Speaker 1: around the ankles of our students. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven hundred journalists, analysts more
Speaker 1: than a hundred twenty countries. Michael are and this is
Speaker 1: Bloomberg Naked. Thanks Michael, throwing up to five ten on
Speaker 1: Wall Street. Time for the Bloomberg Sports up take Good morning,
Speaker 1: John Sesshire, Good morning. They depended when the Yankees were slumping,
Speaker 1: going three and fourteen, they weren't hitting, and they won
Speaker 1: five in a row. With those offensive woes resurfaced in Oakland,
Speaker 1: only one hit and an eleven inning lost Saturday, and
Speaker 1: then only four singles yesterday and the eight's won four
Speaker 1: to one. The Yanks moved down to Anaheim. They'll face
Speaker 1: the Angels tonight. The Mets man is only three hits,
Speaker 1: all of them singles against Herman Marquez and two relievers.
Speaker 1: Colorado scored in the seventh thirty off Max Scherzer and
Speaker 1: the Rockies won, wondering up into salvage the game in
Speaker 1: the series. Atlanta lost last night in St. Louis, the
Speaker 1: Mets remaining three games ahead. The annual Jets Giants preseason
Speaker 1: game not decided until the final minute that Chris Traveler
Speaker 1: touchdown passed with twenty two seconds left at Calvin Jackson
Speaker 1: for a thirty one seven back and forth Jets victory,
Speaker 1: second time in three preseason games that those two hooked
Speaker 1: up for a game winning TV in the final minute.
Speaker 1: The Jets went three and oh in the preseason, the
Speaker 1: Giant for two and one. They did not use Daniel Jones.
Speaker 1: They started to Eyrod Taylor and then he heard his back.
Speaker 1: Not believed to be a serious Inndon. The golf season
Speaker 1: ended in Atlanta with a big comeback by Rory McElroy.
Speaker 1: Back on Thursday, he was ten shots behind Scottie Scheffery,
Speaker 1: trailed by six when the final round began. He won
Speaker 1: by one, really giving myself much of a challenge stand
Speaker 1: off and the fourth rowned. I thought, you know, silver
Speaker 1: lining was I was playing in the last groups so
Speaker 1: I could at least keep an eye on what he
Speaker 1: was doing if if things didn't quite work out for him,
Speaker 1: and um, you know, thankfully I was in that last
Speaker 1: group because you know, I was able to put some
Speaker 1: pressure on him early on third Tour Championship victory. He
Speaker 1: wins eighteen million dollars. US Open begins today. Serena Williams
Speaker 1: plays tonight. John Dash Award, all right, John, thank you
Speaker 1: to sell off continues on Wall Street and around the world.
Speaker 1: SMP futures down thirty seven points down, futures down two
Speaker 1: hundred fifty eight. Nastack futures leading the declines, down one
Speaker 1: hundred fifty points. We check in next with Dennis Gartman,
Speaker 1: the former publisher of The Gardener Letter. This is Bloomberg
Speaker 1: Bloomberg eleven three oh weather morning Clouds Littles are mostly
Speaker 1: sunny today with highs in the upper eighties. Chance relate.
Speaker 1: They shower tomorrow, otherwise mostly sunny, uper eighties again mostly sunny.
Speaker 1: Opper eight is on Wednesday right now seventy five in
Speaker 1: Central Park markets. Headlines and breaking news twenty four hours
Speaker 1: a day at Bloomberg dot Com, at the Bloomberg Business
Speaker 1: out and at Bloomberg Quicktape is a Bloomberg Business Flash.
Speaker 1: And I'm Karen Moscow. Federal Reserve charge your own Powell's
Speaker 1: signal of higher for longer interest rates coursing through markets,
Speaker 1: sinking stocks and equity futures, and lifting two year treasury
Speaker 1: yields to levels less seen in two thousand seven. We
Speaker 1: checked the markets every fifteen minutes throughout the trading day
Speaker 1: on Bloomberg. Right now, MUST and P futures are down
Speaker 1: about thirty seven points down, futures down two fifty six,
Speaker 1: and as day futures down one hundred forty six the
Speaker 1: decks in Germany's down one point four percent. Ten year
Speaker 1: treasury down nineteen thirty seconds, you know, three point one
Speaker 1: one percent they yield on the two year three point
Speaker 1: four six percent. Ninemex screwed oils up one percent, or
Speaker 1: ninety two cents at ninety three dollars, ninety eight cents
Speaker 1: of barrel comes goal, down nine tenths per cent, or
Speaker 1: fifteen dollars twenty cents a seventeen thirty four sixty an ounce.
Speaker 1: The euro is at point nine three against the dollar,
Speaker 1: British bound one point one six six six and again
Speaker 1: one thirty eight point six four. And look at a
Speaker 1: bitcoin this morning. It is down nine tenths per cent
Speaker 1: in nineteen thousand, eight hundred dollars. And that's a bloomberg
Speaker 1: business flash. Now here's Michael Barr with Moore on what's
Speaker 1: going on around the world. Michael, good morning, Good morning, Karen.
Speaker 1: The Artemius Moon rocket launch is proceeding towards a morning
Speaker 1: lift off in the Kennedy Space Center in Florida. The
Speaker 1: goal is for the Orion capsule, with three test dummies
Speaker 1: on board, to loop around the Moon and come back
Speaker 1: to Earth. Top intelligence officials are working with the Justice
Speaker 1: Departments to conduct a quote risk assessment to see a
Speaker 1: former President Trump's handling of classified documents found that his
Speaker 1: more Lago home compromise national security. In baseball, the Yankees
Speaker 1: lost to the A's four one. The Mets lost along
Speaker 1: with the Red Sox, Orioles and Giants the Nationals one.
Speaker 1: In the final preseason NFL game, the Jets beat the
Speaker 1: Giants seven. Dennis The US Open begins today. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalists and analysts,
Speaker 1: are more than a hundred twenty countries. Michael Barr and
Speaker 1: this is Bloomberg. Nathan all right, Michael, thank you. It's
Speaker 1: five nineteen on Wall Street Life from the Bloomberg Interactive
Speaker 1: Broker Studios. This is Bloomberg daybreaking. When markets open on
Speaker 1: Wall Street this morning, we could see even more losses
Speaker 1: on the back of Chairman Palace comments at Jackson Hall
Speaker 1: ahead of that. We're joined by Dennis Gartman, the former
Speaker 1: publisher of the Gartment Letter, now chairman of the University
Speaker 1: of Akront Endowment Investment Committee. Dennis Risk Investors have been
Speaker 1: running for the hills. Since Chairman Powell's are marks at
Speaker 1: the mountains of Jackson Hole, Wyoming. How much further do
Speaker 1: you think this selloff has to go? How maybe it
Speaker 1: goes a lot lower. I've been running for the hills
Speaker 1: since December thirty one to last year as the chairman
Speaker 1: of the University of Acranson Downman, I actually moved with
Speaker 1: hard to get the other committee members to move twelve
Speaker 1: of our portfolio out of equities on December thirty one,
Speaker 1: and we did. Last February, we actually moved three percent
Speaker 1: of our portfolio out of stocks into gold two hedge
Speaker 1: against what I thought was going to be a ratcheting
Speaker 1: up of inflation. And clearly Chairman Powell was extraordinarily sacristanc
Speaker 1: extraordinarily concise, extraordinarily straightforward with his comments on Friday concerning inflation.
Speaker 1: I think stock prices go a lot lower from here.
Speaker 1: I think yields go at the two year go a
Speaker 1: lot higher from here. I think we're in for problems.
Speaker 1: So that's going to last for a quite some period
Speaker 1: of time. And if I've learned anything in the fifty
Speaker 1: years nearly fifty years of being involved in the markets,
Speaker 1: once the FED begins to age its policy, and the
Speaker 1: Fed changes policy six months ago from the easy monetary
Speaker 1: policy the tightening policy. It usually lasts not weeks, not months,
Speaker 1: but several years. So I think we're gonna see higher
Speaker 1: rates for a long period of time, and once they
Speaker 1: get beyond four percent in the overnight Said funds rate,
Speaker 1: we may stay there for a year or two. So
Speaker 1: be careful, be very careful. In a bear market. Here
Speaker 1: see who loses the least amount of money will be
Speaker 1: the winner, and thus far the University of Akron has
Speaker 1: lost a lot less than other endowments. In my own account,
Speaker 1: I'm basically neutral to slightly bearish for the stock market,
Speaker 1: so I think we go a lot lower. All I
Speaker 1: can urge, Just be careful out there. Things could get
Speaker 1: a lot worse before they get any any better, maybe
Speaker 1: a long period of time before we see the ted
Speaker 1: pivot on. It's the monetary policies, and it's going to
Speaker 1: take to the overnight Fed funds rate seventy five basis
Speaker 1: points higher in in September and at least a hundred
Speaker 1: fifty basis points higher before the end of the year.
Speaker 1: Interesting that you think that the Fed funds rate stays
Speaker 1: around four percent for a year or longer. So you
Speaker 1: don't think that this week, this week's payrolls report for
Speaker 1: August is going to have any impact on what the
Speaker 1: FED might do from here on out. It's going to
Speaker 1: be a very strong UH employment number, probably two hundred
Speaker 1: fifty three hundred thousand in not farm payrolls. But I
Speaker 1: think the FED is already looking past that. I think
Speaker 1: the FED has no choice but to look past that.
Speaker 1: I think it has to at the same time begin
Speaker 1: the policy which had said I was going to do,
Speaker 1: and it thus far hasn't, of reducing the size of
Speaker 1: its balance sheet. UH. The the assets on hand are
Speaker 1: still extraordinary high, almost over nine trillion dollars compared to
Speaker 1: nine billion a decade ago. They have to take sixty
Speaker 1: five They have to take billion dollars out of the
Speaker 1: out of their assets on the every month from here
Speaker 1: on for at least two to three years, and thus
Speaker 1: far they haven't been doing quite that. So there there
Speaker 1: had been some UH monetary policy changes, a lessening of
Speaker 1: monetary policy changes that I think have to become far
Speaker 1: more severe over the course of the next several years.
Speaker 1: So again, be very careful you in the past that
Speaker 1: the unwinded. The balance sheet is going to be more
Speaker 1: important for markets than the increases in interest rates. What
Speaker 1: do you think is going to happen when it comes
Speaker 1: to the balance sheet at the Fed's next meeting next month. Actually,
Speaker 1: thus far, I said that all they're gonna do is
Speaker 1: allowing assets to roll off, to mature off, to to
Speaker 1: simply two year no speak come over, and I said
Speaker 1: funds or hates in other words. But now I think
Speaker 1: then I actually turned to the point of actually beginning
Speaker 1: to sell from their from their balance sheet. We'll see
Speaker 1: if that if that happens, I hope they don't because
Speaker 1: that would even be more severe. But they said that
Speaker 1: they're gonna take nine billion dollars out of their balance
Speaker 1: sheet on a monthly basis. We'll see if they continue
Speaker 1: to do so. They have to do so over time,
Speaker 1: they have to reduce the size of their assets, and
Speaker 1: I think that that's far more severe than actually taking
Speaker 1: the overnight paid funds right beyond four percent. So pay
Speaker 1: attention to what they're doing when they're in their balance sheet,
Speaker 1: and thus far they have not been as aggressive as
Speaker 1: I think they should be. We'll see if they actually
Speaker 1: turn into selling from their balance sheet, which, as I
Speaker 1: said earlier, I hope they don't. I hope they just
Speaker 1: the things the mature offllon dollars a month, but they're
Speaker 1: nine trillion dollars is a lot when you're only taking
Speaker 1: nine billion out each month. Dennis Government with us for
Speaker 1: the hour here on Bloomberg Daybreak, the former publisher of
Speaker 1: the Gvernment Letter, of course, now chairman of the University
Speaker 1: of Akront Endowment Investment Committee. Will get more of Dennis's
Speaker 1: thoughts throughout this hour on the path for federal reserve
Speaker 1: policy and where risk assets could go from here. With
Speaker 1: the FED making it pretty clear at Jackson Hole last
Speaker 1: week that it is going to stay aggressive against inflation,
Speaker 1: keeping rates higher for longer, perhaps than markets had been
Speaker 1: pricing in. And as we look at futures this morning,
Speaker 1: we are seeing the selling continue, with SMP futures down
Speaker 1: thirty eight points down, futures down two hundred sixty six,
Speaker 1: Nasdaq futures are lower by a hundred fifty two points,
Speaker 1: the tenure Treasury down nineteen thirty seconds, the three point
Speaker 1: one percent, and the yield on the two year at
Speaker 1: a fifteen year high at three point four six per cent.
Speaker 1: You are our listening to Bloomberg day Break Bloomberg eleven
Speaker 1: three oh weather turning mostly sunny today with HIGs in
Speaker 1: the upper eighties. Can see a late day shower tomorrow
Speaker 1: upper eighties. Some thunderstorms tomorrow night possible. By Wednesday will
Speaker 1: be mostly sunny again with highs and the uper eighties.
Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York,
Speaker 1: Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston,
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg NOME
Speaker 1: sixty to the Country, Sirius XM to the one nine team,
Speaker 1: and around the globe the Bloomberg Business apt and Bloomberg
Speaker 1: Radio dot Com. This is Bloomberg Daybreak. It's five thirty
Speaker 1: on Wall Street. Good morning. I'm Nathan Hager and I'm
Speaker 1: Karin Moscow. We are just about four hours away from
Speaker 1: the open of US trading. Let's catch you up to
Speaker 1: day on the news. You need to know what this
Speaker 1: shower was. Still feeling the impact of a hawk ish
Speaker 1: fed this morning. US futures are falling in global stocks.
Speaker 1: You're at a one month low, not after Friday's major drop,
Speaker 1: which was the worst day for US stocks in student thirteenth.
Speaker 1: The catalyst for the sell off JP Powell signaling that
Speaker 1: interest rates will stay higher for some time. Katrina L
Speaker 1: Senior economist and Moody says the fed chairs comments have
Speaker 1: broad implications. The speech really brought home the fact that
Speaker 1: the Feed is taking no prisoners when it comes to
Speaker 1: wanting to buy inflation and sustainably bring it back down
Speaker 1: as a consequence of a recession. Results of that, then
Speaker 1: I mean, so be it. Katrina L with Moody says
Speaker 1: the Fed is also uncomfortable with the current tight labor market. Well. Meantime,
Speaker 1: Karen one of All Street's biggest bear, says weaker earnings,
Speaker 1: not higher rates, as the largest threat to US stocks.
Speaker 1: Morgan Stanley's Michael Wilson says the path for stocks will
Speaker 1: be determined by earnings and that's where investors focus should be.
Speaker 1: He has repeatedly warned the recent equity rally will be
Speaker 1: temporary due to tighter monetary policy and the outlook for
Speaker 1: corporate profits. Funnythan the Well Streets sell off is also
Speaker 1: spreading overseas. European stocks are extending last week's drop, with
Speaker 1: most indicries down more than one percent, and in Asia
Speaker 1: over night, Japan's NIK led the clients with the drop
Speaker 1: of more than two and a half percent. And economists
Speaker 1: are turning more barish about China's economy here and that's
Speaker 1: due to risks in its property market and potential COVID lockdowns.
Speaker 1: According to Bloomberg's latest quarterly survey, China's economy is now
Speaker 1: projected to grow just three and a half percent this year.
Speaker 1: Tyron Cam, had of China property at Fitch rating, says
Speaker 1: defaults could cause even more problems. What we really need
Speaker 1: is that the government to come in in the bigger way.
Speaker 1: They also are now showing that they want to rely
Speaker 1: on market based mechanism. They're not trying to battle the
Speaker 1: sector at all cost. That remains the problems that we
Speaker 1: were still monitoring him. Tyrn Cam with Fitch rating says
Speaker 1: he still thinks China is fully committed to stabilizing its
Speaker 1: property sector. But back here in the US, Nathan Meme
Speaker 1: stocks are here to stay. That's according to nearly two
Speaker 1: thirds of them were than five hundred respondents in our
Speaker 1: latest m Live Pulse survey. Respondents expect some version of
Speaker 1: the meme stock menia to stick around even if the
Speaker 1: outlook for stocks remains the leak. And we're seeing bitcoin
Speaker 1: follow stocks lower this morning, Karen trading below twenty thousand,
Speaker 1: adding to losses from last week. It's the first time
Speaker 1: Bitcoin slump below twenty k since mid July. And futures
Speaker 1: are also slumping. S and P futures down about thirty
Speaker 1: eight points down, futures down two d and nastack futures
Speaker 1: down one hundred forty nine. Straight ahead your latest local
Speaker 1: headlines plus the check of sports, and this is Bloomberg.
Speaker 1: Thanks Hearing five thirty three on Wall Street, seventy five
Speaker 1: degrees in Central Park still got the closure westbound cross
Speaker 1: Bronx between White Plains Road and the Bronx Server park Way.
Speaker 1: Michael Bars here with what else is going on in
Speaker 1: New York and around the world. Michael, thank you very much.
Speaker 1: Nathan Nassey is dealing with a fuel leak as it
Speaker 1: prepares its new Moon rocket for liftoff on its first
Speaker 1: test flight at Florida's Kennedy's Bay Center. No one inside
Speaker 1: the Orion capsule, just three test dummies. At least one
Speaker 1: hundred thousand people are expected to watch on the beaches
Speaker 1: as the powerful rocket lifts off, including Taylor Leonard. She
Speaker 1: helped build part of that Moon rocket and will eventually
Speaker 1: put Americans back on the Moon. I'm really not sure
Speaker 1: what to expect. I'm kind of anticipating in myself. UM,
Speaker 1: but I think it's just gonna be a lot of energy,
Speaker 1: a lot of people. Um just really excited about the
Speaker 1: space program. Taylor Leonard was part of the team that
Speaker 1: tested the functionality of the rocket. The head of the
Speaker 1: International Atomic Energy Agency says that the UN Nuclear watch
Speaker 1: dogs long awaited expert mission to the power plant in
Speaker 1: Ukraine is now on its way. Russia and Ukraine have
Speaker 1: traded claims of strikes and are near the plan in
Speaker 1: recent days, intensifying fears that the fighting could cause a
Speaker 1: massive radiation leak. Ukrainian for Minister to meetro Kuliba. We
Speaker 1: should all be united in demanding one thing, the withdrawal
Speaker 1: of Russia from the opporigin nuclear power land. Foreign Minister
Speaker 1: Kulbo was visiting Swedish leaders in Stockholm today. The FBI
Speaker 1: is joining the investigation into a deadly shooting at a
Speaker 1: supermarket in Bend, Oregon. Then police Chief Mike Rantz has
Speaker 1: a gunman arm with an a R fifteen style rifle
Speaker 1: killed at least two people inside the supermarket last night.
Speaker 1: Our hearts got to the victims and the families and
Speaker 1: this incident, and we know that this is a frightening
Speaker 1: thing for our community and something that we would never
Speaker 1: want to happen in our city. Chief Mike Krantz says
Speaker 1: the suspected gunman was found dead at the scene when
Speaker 1: officers arrived. Detroit Police say a man suspected of randomly
Speaker 1: shooting four people, three fatally, on the city's West Sign
Speaker 1: has been arrested. It happened during a two and a
Speaker 1: half hour period yesterday. Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than seven hundred journalists and analysts more than a hundred
Speaker 1: twenty countries. Michael barn this is Bloomberg, Nathan. Thanks Michael
Speaker 1: on Wall Street time for the Bloomberg Sports Update with
Speaker 1: John Show. Thanks to Nathan. Mets and Yankees yesterday combined
Speaker 1: for only one run, only seven hits, all of them singles.
Speaker 1: So the Yankees second game in a row where they
Speaker 1: failed ahead a four one loss in Oakland, so just
Speaker 1: a split of the four game series. Aaron judge yesterday
Speaker 1: over four three strike ass Tampa Bay one in Boston,
Speaker 1: the Razors seven and a half games behind the Yanks,
Speaker 1: Mets Stilly, the Braves by three is Atlanta lost in St. Louis.
Speaker 1: The Mets loss of the Rockies. Wondering up and can't
Speaker 1: play Max Jerzer. He struck out eleven but beaten by
Speaker 1: Colorado's hairman Marquez. Mets are off tonight and then the
Speaker 1: Dodgers come to town. L A. Fifty games over five hundred,
Speaker 1: Jets and Giants tied four different times. The Jets scored
Speaker 1: in the final minute and wont seven for a three
Speaker 1: and oh. Preseason Jets used three quarterbacks. Joe Flacco through
Speaker 1: an early pick six, it was Chris Streveler who, through
Speaker 1: the game winning TV passed to Calvin Jackson. Those two
Speaker 1: had hooked up for a game winning the finalment A
Speaker 1: two weeks ago. Giants did not use Daniel Jones, and
Speaker 1: then Tyrod Taylor heard his fact not believed to be
Speaker 1: a serious injury. The third stringer Davis Webb came in.
Speaker 1: He went thirty eight what I went for. Roy mcilroys
Speaker 1: had some disappointments in majors, but he's now won the
Speaker 1: Torch Championship three times in Atlanta. He had to dig
Speaker 1: out of a big hole. Credible day, Incredible week, you know,
Speaker 1: four over through two holes, attend shot side of the
Speaker 1: league at that point to call my way back and
Speaker 1: end up winning the winning the tournament. Um, incredible, just
Speaker 1: just a real um. You're really proud of my resilience
Speaker 1: and one the par one by one one eighteen million dollars.
Speaker 1: Will tonight be the last time we see Serena Williams.
Speaker 1: It's your first round match at the US Open and
Speaker 1: that's her final tournament. John stau Bloomberg Sports Nathan Well,
Speaker 1: thank you, John, five thirty seven on Wall Street time
Speaker 1: for the Tri State Business Report. Here's Bloomberg's Corey. The
Speaker 1: a ram Co Team Series women's golf event, which is
Speaker 1: separate from that live tour that upended the PG eight Tour,
Speaker 1: will be held at Trump Links at Ferry Point in
Speaker 1: the Bronx in October. The course is managed by former
Speaker 1: President Donald Trump's family business. Under New Jersey's Fair Chance
Speaker 1: and Housing Act, housing providers are prohibited from asking about
Speaker 1: an applicant's criminal history on an application form or in
Speaker 1: an interview before making a conditional offer of housing. The
Speaker 1: Division on Civil Rights in the state Attorney General's Office
Speaker 1: has issued thirty violation notices to housing providers around the
Speaker 1: state for allegedly contravening the law. Lichfield County, Connecticut School
Speaker 1: is the second most expensive high school in the country.
Speaker 1: That's according to personal finance website Go Banking Raids dot
Speaker 1: com says one year's tuition at Kent School and Kent
Speaker 1: will set you back about seventy thousand dollars. That your
Speaker 1: Bloomberg Trying State Business Report. I'm d Corey, Thanks, said
Speaker 1: five thirty eight on Wall Street. Bloomberg Radio is on
Speaker 1: the air from San Francisco to New York, London to
Speaker 1: Hong Kong. Let's check in with our global news team
Speaker 1: for some of the top stories heard on our three
Speaker 1: hundred affiliate radio stations around the world. Steve photos Can
Speaker 1: on ten Wins in New York, We're talking about how
Speaker 1: technology is helping more people become landlords far away from home.
Speaker 1: Um Corney Donahoe on KF A B and Omaha corn
Speaker 1: is on track to harvest its smallest crop in three years.
Speaker 1: I'm Stephen Corroll and Bloomberg DAB Digital Radio in London.
Speaker 1: We've been reporting on the continued market sell off as
Speaker 1: investors brace for rates to remain empire for longer. I'm
Speaker 1: Lisa Matteo and on w b Z in Boston. I'll
Speaker 1: be reporting on why you may not have to wait
Speaker 1: as long for that new electric vehicle. I'm in Corey,
Speaker 1: on w o AI and San Antonio. I'm reporting TIFFs streets.
Speaker 1: Employees have ended their average the union. I've those are
Speaker 1: some of the stories are twenty seven hundred Bloomberg journalists
Speaker 1: and analysts are working on this morning around the world.
Speaker 1: It's five thirty nine on Wall Street. The following is
Speaker 1: an editorial from Bloomberg Opinion. This editorial was written by
Speaker 1: the Bloomberg Editorial Board. If the COVID nineteen pandemic has
Speaker 1: shown anything it's that public health emergencies required two things.
Speaker 1: If fishing see and clear communication. When it comes to monkeypox,
Speaker 1: the u S response has fallen short on both counts.
Speaker 1: The Biden administration has been too slow to procure and
Speaker 1: distribute vaccines and too muddled in its outreach on the issue.
Speaker 1: Underlying all its missteps has been a lack of leadership,
Speaker 1: rather than accept responsibility, health and human Services Secretary Javier
Speaker 1: Basra has tried to deflect blame. It's fair to say
Speaker 1: that the past few years have presented public health officials
Speaker 1: with unprecedented challenges, but that's no excuse for repeating mistakes
Speaker 1: and failing to learn obvious lessons. President Joe Biden needs
Speaker 1: to demand better. This editorial was written by the Bloomberg
Speaker 1: Editorial Board. For more Bloomberg opinion, please go to Bloomberg
Speaker 1: dot com, slash opinion or O P I n go
Speaker 1: on the Bloomberg terminal. This has been Bloomberg Opinion. Listen
Speaker 1: for Bloomberg opinion editorials every weekday. At this time, terminal
Speaker 1: customers can read more at O P I n go.
Speaker 1: SMP futures are now down one percent to drop a
Speaker 1: forty one point, Style futures down two eighty nine points.
Speaker 1: NASTACK futures leading the declines, down one one hundred sixty
Speaker 1: point drop the ten. Your treasury is down y seconds,
Speaker 1: you'll three point one one percent. Dennis Gartman returns next,
Speaker 1: the former publisher of the Gartman Letter. On Bloomberg Daybreak
Speaker 1: Bloomberg eleven three oh Weather turning mostly sunny today with
Speaker 1: highs in the upper eighties, chance for a late day
Speaker 1: shower tomorrow, otherwise mostly sunny. Upper eighties could have some
Speaker 1: evening thunderstorms tomorrow, turning mostly sunny again on Wednesday. Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape.
Speaker 1: He's a Bloomberg Business Flash, and I'm Karen Moscow. Feed
Speaker 1: a reserve charge around Powell's signal of higher for longer
Speaker 1: interest rates, coursing through markets, sinking stocks and equity futures,
Speaker 1: and lifting two year treasury yields to levels last seen
Speaker 1: in two thousand seven. And we checked the markets every
Speaker 1: fifteen minutes throughout the trading day on Bloomberg. Right now,
Speaker 1: it's in p futures are down forty three points down,
Speaker 1: futures down three hundred and nasdack futures down one hundred
Speaker 1: sixty four. The decks in Germany is down one point
Speaker 1: six percent, the ten year treasury down nineteen thirty seconds,
Speaker 1: yeld three point one one percent. They yield on the
Speaker 1: two year three point four six percent. Nine mex screwed
Speaker 1: oil is up three quarters of a percent, up sixty
Speaker 1: seven cents at ninety three dollars seventy three cents of barrel.
Speaker 1: Comex school there is down one percent or sixteen dollars
Speaker 1: eighty cents at seventeen thirty three and ounce. The euro
Speaker 1: is at pot four against the dollar British found one
Speaker 1: point one six eight four and the yen at one
Speaker 1: thirty eight points six zero. And looking at bitcoin this
Speaker 1: morning down nine ten percent at nineteen thousand, eight hundred
Speaker 1: dollars As a Bloomberg business flash. Now here's Michael Barr
Speaker 1: with more on what's going on around the world. Michael Karen,
Speaker 1: thank you very much. A federal judge. We'll hear arguments
Speaker 1: on Thursday about possibly appointing an outsider to look at
Speaker 1: the classified documents that ex President Trump claims are covered
Speaker 1: under executive privilege. Separately, Intelligence agency specialists are looking at
Speaker 1: possible national security risks involved in Trump's taking and handling
Speaker 1: of classified material. US Navy warships transit it through the
Speaker 1: time the time on straight for the first time since
Speaker 1: our Speaker Nancy Pelosi's visit to the self ruled island,
Speaker 1: testing times between Washington and Beijing. In baseball, the Yankees
Speaker 1: lost to the A's four one the Mats lost along
Speaker 1: with the Red Sox, Orioles and Giants. The Nationals one
Speaker 1: in the final preseason NFL game, the Jets beat the
Speaker 1: Giants and Dennis The US Open begins today. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalists analysts more
Speaker 1: than a hundred twenty countries. Michael bar this is Bloomberg Naked. Okay, Michael, Thanks,
Speaker 1: It's five forty nine on Wall Street Live from the
Speaker 1: Bloomberg Interactive Broker Studios. This is a Bloomberg Daybreak and
Speaker 1: Dennis Artment is back with us now, former publisher of
Speaker 1: the Gartment Letter, now chairman of the University of acron
Speaker 1: Endowment Investment Committee. Dennis, I want to pick up on
Speaker 1: a call you made earlier this hour that the FED
Speaker 1: might have to keep its funds rate at four percent
Speaker 1: for a year or longer. I'm curious what makes you
Speaker 1: think the Fed does need to keep rates at that
Speaker 1: level for that long time. It needs to because it
Speaker 1: has not changed its balance sheets sufficiently yet, and it's
Speaker 1: told us that it shall, and it hasn't moved enough
Speaker 1: to to to surprise me or to suffice. So I
Speaker 1: think the FED has no choice but to can continue
Speaker 1: to fight the inflation that it itself has created. And
Speaker 1: if I've learned anything in the almost fifty years of
Speaker 1: being in the markets, once the FED begins to change
Speaker 1: its monetary policy, he usually embarks upon that new policy
Speaker 1: for several years, not months, not weeks, but years. So
Speaker 1: historically that's the tendency. That's been the trend that's been
Speaker 1: the history of the FED over the past several decades,
Speaker 1: and I've seen no reason to think they're going to change.
Speaker 1: Inflation is now uh well established here in the United States,
Speaker 1: it's well established internationally. It's a problem that I think
Speaker 1: all central banks are facing, and I think it's something
Speaker 1: that has to be dealt with over a protracted period
Speaker 1: of time. So historically, once they change policy, they changed
Speaker 1: for several years, not months, not weeks, and I think
Speaker 1: we have to understand the history. Now we do have
Speaker 1: have started to see signs of inflation easing a bit,
Speaker 1: meant maybe not necessarily in the core, but in food
Speaker 1: and energy prices. We've started to see some of the
Speaker 1: pressure ease a bit. Is that something that could move
Speaker 1: the Fed? Well, we've seen wheat prices fall from thirteen
Speaker 1: dollars a bushel down to eight dollars a bushel. We've
Speaker 1: seen corn prices fall almost in the course of the
Speaker 1: last over weeks. But I think food prices are going
Speaker 1: to go back higher. We've had drought, We've had some
Speaker 1: rain over the weekend, which is causing a little bit
Speaker 1: of weakness in the wheat market today. But on balance,
Speaker 1: I think wheat, corn, soybean prices are gonna are going
Speaker 1: to head higher again, probably two new highs, because drought
Speaker 1: has been a very severe problem and just a little
Speaker 1: bit of rain has not resolved that. And it's problematic
Speaker 1: over in European we producing and grain producing regions. The
Speaker 1: problems in Russia, the problems in Ukraine, the problems in
Speaker 1: France for their planting of their winter wheat crop, which
Speaker 1: begins in about two weeks. Drought has been severe problems
Speaker 1: in all of those areas. Those are major exporters of
Speaker 1: wheat to the world, and I think that problem is
Speaker 1: not going to go away. So I think that the
Speaker 1: we've had a beneficial decline in grain prices over the
Speaker 1: course the past two months, I think that's about run
Speaker 1: its course, and I think grain prices go a lot higher,
Speaker 1: So inflation coming from agriculture is going to be I think,
Speaker 1: far more severe than people have anticipated. But those aren't
Speaker 1: the kinds of pressures that the FED or any other
Speaker 1: central bank can have much of an impact on. Are
Speaker 1: they now that they don't have much of an impact
Speaker 1: at all? It's all the weather circumstance, but the fact
Speaker 1: that the FED has been as aggressive as it has
Speaker 1: been over the course of the past decade and raising
Speaker 1: its balance sheet, and as as we all know or
Speaker 1: should have learned in school, inflation is always an everywhere
Speaker 1: a monetary phenomenon. In the monetary aggregates continue to be
Speaker 1: the assets of the FED continue to be extraordinarily high,
Speaker 1: and they have not begun the process of very substantively
Speaker 1: of reducing those assets. So I'm far more fearful of
Speaker 1: the fact that the Fed's assets are much higher than
Speaker 1: I expected, and I think it's far more severe than
Speaker 1: the fact that they're gonna be raising the overnight did
Speaker 1: funds right past four percent by the end of the year.
Speaker 1: Are you concerned that the tightening of monetary policy leads
Speaker 1: to a recession. I think we're already intercession. I think
Speaker 1: that the classic definition is two consecutive quarters of negative
Speaker 1: GDP growth. We've already had that. I think we're going
Speaker 1: to be in recession. I think the numbers will start
Speaker 1: to be substantively worse as we get to the course
Speaker 1: of the year. But I'm of the belief that we're
Speaker 1: already in a a defined recession. It's not severe. I
Speaker 1: don't think it will be as nearly as severe as
Speaker 1: we went through in two thousand seven, eight and nine,
Speaker 1: but I think GDP growth will be lower for the
Speaker 1: next several quarters. Only about thirty seconds left here, Dennis,
Speaker 1: But what's the bigger risk for markets? Rising interest rates
Speaker 1: or a ramp up in the balance She runoff. Hey,
Speaker 1: I think the fact that the SAID may in fact
Speaker 1: begin to sell from its assets rather than just allowing
Speaker 1: them to mature office a far more severe circumstance. That
Speaker 1: act that the FET has allowed the balance sheet to
Speaker 1: get to nine trillion dollars up from nine hundred billion
Speaker 1: dollars a decade ago, is inflationary. The fact that the
Speaker 1: FETs had been calling inflation transitory, the FET was creating
Speaker 1: its own inflation. That's the real problem. So it'll be
Speaker 1: a long period of time that they have to reduce
Speaker 1: the size of the balance sheet. That's the fuel that
Speaker 1: has sponsored the bull market and equities, and that fuel
Speaker 1: is being taken away. Thanks, as always for your thoughts.
Speaker 1: Then it's really appreciate it that Escarpment chairman of the
Speaker 1: Endowment endow an investment committee at the University of acron
Speaker 1: And of course the former publisher of the Gartment Letter Karen. Sorry, Nathan,
Speaker 1: thank you. It's fifty three on Wall Street. Time for
Speaker 1: the Bloomberg's Law Report. Let's get to the legal stories
Speaker 1: we are watching this morning. From Bloomberg's Jeff Billinger. A
Speaker 1: federal appeals court ruled that housing regulators stayed within the
Speaker 1: legal and constitutional limits of their authority when they banned
Speaker 1: smoking in public housing projects that received federal funding. The
Speaker 1: Tenth Circuit rule that long haul truckers released their trucks
Speaker 1: from Pathway Leasing were independent contractors employee subject to minimum
Speaker 1: wage requirements. The Equal Employment Opportunity Commission says Lone Star
Speaker 1: Ambulance of Texas will pay ninety dollars to subtle a
Speaker 1: sexual harassment and retaliation lawsuit. Bloomberg Law everything you need,
Speaker 1: all on one legal research platform, including guidance analysis, and
Speaker 1: Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com.
Speaker 1: All right, Jeff, thank you. Now another legal story we're watching.
Speaker 1: According to a Senator report, rich Americans are hiding vast
Speaker 1: sums from the I R S by exploiting a loophole
Speaker 1: and a law designed to crack down an offshore tax evasion.
Speaker 1: For more on this, Bloomberg's Lydia Wheeler and Greg Store
Speaker 1: spoke with Bloomberg News reporter Neil Weinberg. Can you give
Speaker 1: us a sense of how widely this loopholes being used?
Speaker 1: There aren't clear numbers on exactly how much money is involved,
Speaker 1: but the report points out that eight jurisdictions it looked
Speaker 1: at h and these are places like the kyman Ila,
Speaker 1: Saint Kitts, and Nevis, Guernsey. These are well known offshore
Speaker 1: tax havens. And of these eight, there were a total
Speaker 1: of a hundred and twenty eight thousand of these entities.
Speaker 1: So it seems to be a very potentially large scale problem,
Speaker 1: shall we say, Neil, you're writing your story about this
Speaker 1: that the report grew out of an investigation of Robert Brackman,
Speaker 1: a billionaire software developer. Tell us a bit about him
Speaker 1: and about his case, sure, he was a very low
Speaker 1: profile software mobil. He made his original fortune selling software
Speaker 1: to automobile dealerships in the US and elsewhere so they
Speaker 1: could run their operations. He then became the original investor
Speaker 1: in vis To Equity Partners, of private equity firm which
Speaker 1: was launched by Robert Smith. Together they came up with
Speaker 1: a structure in which the profits, the income from the
Speaker 1: investments in Vist Equity Partners would remain off shore, and
Speaker 1: Vista was hugely successful has expanded greatly, investing in mostly
Speaker 1: enterprise software companies, which is Brockman's specialty. And Robert Brockman
Speaker 1: was indicted in on allegations according to the Justice Department,
Speaker 1: that he hid over two billion dollars in income, mostly
Speaker 1: earned at Vista Equity Partners UH and that according to
Speaker 1: the Widen report, the report that just came out, he
Speaker 1: was using this loophole we're referring to where he sets
Speaker 1: up off shore partnerships and then turns them into financial
Speaker 1: institutions which don't have to be reported back to the
Speaker 1: I r S. And as Bloomberg News reporter Neil Weinberg
Speaker 1: speaking at the Bloomberg's Lydio Wheeler and Greg Store. Catch
Speaker 1: more of that interview plus analysis of the latest legal
Speaker 1: news by subscribing to the Bloomberg Law podcast or downloading
Speaker 1: the show have Bloomberg dot Com Slade podcast. Attorneys can
Speaker 1: find exceptional legal research and business development tools at Bloomberg
Speaker 1: Law dot com and on the Bloomberg terminal at b
Speaker 1: Law Go and again. Future is lower this morning, SMP
Speaker 1: futures down thirty seven points down, futures down two hundred
Speaker 1: fifty eight and NASTAG futures down one hundred forty five.
Speaker 1: The ten year treasury down nineteen thirty seconds, yield three
Speaker 1: point one one per cent. They yield on the two
Speaker 1: year three point four six percent, and nine mex screwed
Speaker 1: oil is up one percent or eighty eight cents at
Speaker 1: ninety three dollars ninety four cents and barrel and we're
Speaker 1: watching Bitcoin, which is down seven ten percent at nineteen thousand,
Speaker 1: eight hundred forty dollars still ahead. On Bloomberg, Dave Reak,
Speaker 1: we have a check on the business headlines and all
Speaker 1: the news you need to start your day. And this
Speaker 1: is Bloomberg