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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Good morning, I'm Nathan Hager and and I'm John Tucker.

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Speaker 2: Here are these stories we're following today.

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Speaker 3: Well, John, the S and P five hundred is coming

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Speaker 3: off its biggest four day rally of the year. It's

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Speaker 3: gained four and a half percent during that stretch. Yesterday,

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Speaker 3: the Nasdaq one hundred climb two and a half percent.

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Speaker 3: In Wall Street's favorite volatility gauge, the VIS, tumbled to

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Speaker 3: around eighteen. Sema Shaw, Chief Global strategistic Principal Asset Management,

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Speaker 3: is still bullish on the markets even if there.

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Speaker 4: Is a genuine economic slowdown coming through. Given the resilience

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Speaker 4: and the balance sheet strength of households and corporates, is

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Speaker 4: it likely that EFFED can't come to save the US

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Speaker 4: economy with various red cuts. So I put the chance

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Speaker 4: of recession fairly low, which means an after a bit

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Speaker 4: of volatility and pullback, I think the actually market can

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Speaker 4: still ecout some positive gains.

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Speaker 3: Principal Asset Management Sema Shaw notes that swaps trade is

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Speaker 3: a priced in about forty basis points in FED cuts

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Speaker 3: in September and a total rate reduction of more than

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Speaker 3: one hundred and five basis points for twenty twenty four.

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Speaker 2: Well, yesterday's rally was fueled in part by producer prices

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Speaker 2: rising less than expected, and later this morning we're gonna

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Speaker 2: get the latest reading on consumer prices. Sarah House is

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Speaker 2: in your ACOUNTABIS at Wells Fargo Corporate and Investment Banking.

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Speaker 5: We're looking for a zero point two percent increase on booth,

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Speaker 5: the headline and the core. So that's in line with

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Speaker 5: the consensus, but I think the details are going to

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Speaker 5: be really important. So to what extent are we still

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Speaker 5: seeing outright goods deflation and are we seeing more progress

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Speaker 5: on the services side, both in housing but also the

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Speaker 5: non housing services that have been such a such a

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Speaker 5: concern for the Fed.

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Speaker 2: Wells Fargo's Sarah House. Now, if the consensus holds, it

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Speaker 2: would mark the smallest three month increase for core inflation

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Speaker 2: since early twenty twenty one.

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Speaker 3: And inflation is also in focus in Europe this morning.

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Speaker 3: Let's get the latest on that with Bloomberg's w and

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Speaker 3: Potts in London.

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Speaker 6: You and Nathan and John. The headline rates of UK

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Speaker 6: inflation ticked up in July, but by less than expected,

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Speaker 6: with consumer prices two point two percent higher. Than a

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Speaker 6: year ago, But it was a sharp drop in services

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Speaker 6: inflation that really got the attention of traders. That measure

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Speaker 6: fell from five point seven percent to five point two percent.

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Speaker 6: Core inflation also fell to its lowest since September twenty

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Speaker 6: twenty one. The better than expected data saw investors fully

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Speaker 6: price two more quarter point cuts in UK interst rates

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Speaker 6: this year. In London, I'm une parts Bloomberg Radio.

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Speaker 2: All right, thanks to you and staying in Europe. Shares

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Speaker 2: of UBS up almost two percent. The Swiss Bank posting

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Speaker 2: higher than expended profit in the second quarter as strong

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Speaker 2: client inflows in investment banking revenue help bolster chief executive

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Speaker 2: officers Sergio or Mahdi's efforts to return capital to shareholders.

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Speaker 2: A year after completing the takeover of Credit Squeeze, the

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Speaker 2: bank says it's on track for pre merger levels of profitability,

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Speaker 2: something Sergio or Madi tails Bloomberg he can deliver.

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Speaker 7: Of course, is going to take a lot of time,

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Speaker 7: i am but to restore the profitability because the amount

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Speaker 7: of task to be done is huge. But I'm confident

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Speaker 7: that we are on a good way to deliver.

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Speaker 2: But despite Sergio Armandi's optimism, ubsays it's also expects to

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Speaker 2: book another one point one billion dollars in integration related

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Speaker 2: expenses in the third quarter.

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Speaker 3: In Asia, John Japan is going to be looking for

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Speaker 3: a new leader once again. Fumio Kashida is withdrawing from

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Speaker 3: his ruling LDP parties leadership race in September. That paves

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Speaker 3: the way for someone else to become Japan's premier. The

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Speaker 3: successor would be the third prime minister for the country

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Speaker 3: since Shinzo Abe stepped down in twenty twenty.

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Speaker 2: Now to the latest from the Middle East, the United

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Speaker 2: Nations Security Council held a meeting of the tensions in

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Speaker 2: the region as Israel waits for a potential reprisal attack

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Speaker 2: from Iran. US Ambassador Linda Thomas Greenfield repeating calls for

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Speaker 2: a cease fire deal in Gaza.

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Speaker 8: We've called on both sides to resume urgent discussion on Thursday,

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Speaker 8: August fifteenth in Doha for Cairo to close all remaining

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Speaker 8: gaps and commence implementation of the deal without further delay.

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Speaker 2: Ambassador Linda Thomas Greenfield says a ceasefire is the best

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Speaker 2: way to bring immediate rely to the people in Gaza. Meantime,

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Speaker 2: the Biden administration has approved a more than twenty billion

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Speaker 2: dollar weapons sale to Israel. We get more of that

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Speaker 2: from Bloomberg's Roz Matheson, Well, this.

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Speaker 9: Is the approval of a big event still that we

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Speaker 9: knew was in the works, and it's involves up to

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Speaker 9: fifty fighter jets and fifteen fighter jets, upgrades for existing

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Speaker 9: fighter jets, everything from vehicles, ammunition, radar equipment.

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Speaker 10: It's a big deal.

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Speaker 9: It's got a lot in it, but the reality is

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Speaker 9: that these planes are not going to come at least

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Speaker 9: until twenty twenty nine, so there's some years away.

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Speaker 2: Bloomberg's Rhons Mathison reports the US paused weapons shipments to

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Speaker 2: Israel and May over concerns that could be used against

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Speaker 2: civilians in Gaza. Two key Democrats drop their opposition to

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Speaker 2: this weapon sale in June.

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Speaker 3: Well John, a progressive member of Congress who has been

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Speaker 3: outspoken against Israel's conduct in Gaza, has won her primary

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Speaker 3: in Minnesota with ninety nine percent of the votes counted.

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Speaker 3: Democrat Illin Omar defeated former Minneapolis council member Don Samuels

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Speaker 3: fifty six point two percent to forty two point nine percent.

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Speaker 3: Omar told her supporters her campaign was about joy.

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Speaker 11: We know it is joyful to want to live in

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Speaker 11: a peaceful and equitable world.

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Speaker 1: So I am.

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Speaker 2: Incredibly, incredibly honored by this victory.

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Speaker 12: Tonight.

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Speaker 3: Congresswoman Ellan Omar's victory buck's a trend for progressives in

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Speaker 3: Congress to other members of the so called squad. New

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Speaker 3: York's Jamal Bowman and Corey Bush of Missouri lost their primaries.

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Speaker 3: Unlike those races, Pro Israel groups decided not to get

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Speaker 3: seriously involved in the Minnesota race and.

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Speaker 2: Turning back to the markets now, Dathan shares of Alphabet

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Speaker 2: down almost one percent in early trading. The Justice Department

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Speaker 2: is considering whether to force alphabets Google to break up.

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Speaker 2: More from Bloomberg's Amy Morrison Washington.

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Speaker 12: Officials with the DOJ are considering what would be a

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Speaker 12: rare bid to break up a big tech company after

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Speaker 12: a landmark court ruling found that company monopolized the online

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Speaker 12: search market. Sources tell Bloomberg that less severe options include

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Speaker 12: forcing Google to share more data with competitors and measures

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Speaker 12: to prevent it from gaining an unfair advantage in AI products. Now,

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Speaker 12: even if it does not pursue a breakup, the government

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Speaker 12: will likely seek a ban on the type of exclusive

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Speaker 12: contracts that were at the center of its case against

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Speaker 12: Google in Washington, Amy Morris Bloomberg Radio.

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Speaker 3: All right, Amy, thank you. Meantime, a merger is getting closer.

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Speaker 3: Perhaps in the grocery ole. We're watching shares of Kelenova.

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Speaker 3: They're up about seven percent. The Wall Street Journals reporting

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Speaker 3: Mars is expected to unveil a nearly thirty billion dollar

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Speaker 3: deal for the food maker today. Keleanova was spun off

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Speaker 3: from Kellogg last year. Its brands include pop Tarts, Springles

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Speaker 3: and Cheese Its.

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Speaker 2: And activist investors pushing for sweeping changes at Southwest Airlines,

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Speaker 2: Elliott Investment Management has nominated ten of its own candidates

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Speaker 2: to the board of the struggling carrier. They include the

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Speaker 2: former hands of Virgin West Jet and Eric Canada. Elliott

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Speaker 2: has previously demanded the oulster of Southwest Airline CEO Bob Jordan,

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Speaker 2: and that brings us to five the wait on Wall

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Speaker 2: Street Time down for a look at some of the

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Speaker 2: other stories making news in New York and around the world.

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Speaker 2: For that, we're joined by Bloomberg's Michael Barr. Michael, Good Morning,

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Speaker 2: Good morning John. The United Autoworkers Union has filed federal

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Speaker 2: labor charges against both Donald Trump and Elon Musk. The

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Speaker 2: charges are tied to particular comments made during Trump's ex

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Speaker 2: interview with Musk on Monday, UAW President Sean Fain, the rich.

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Speaker 13: Keep getting richer at the expense of the working class,

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Speaker 13: and people like Donald Trump and Elon Musk, they sneer

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Speaker 13: at labor law, but they don't care about labor law

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Speaker 13: because they don't care about working class people.

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Speaker 14: The senior advisor for the Trump campaign released a statement saying,

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Speaker 14: in part, the lawsuit is a shameless political stunt to

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Speaker 14: eroad President Trump's overwhelming support among America's workers. Hunter Biden

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Speaker 14: is facing new criticism this morning. The New York Times

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Speaker 14: reports that the president's son wrote a letter to the

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Speaker 14: US ambassador to Italy in twenty sixteen to seek help

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Speaker 14: for a foreign business venture. Hunter Biden's lawyer called the

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Speaker 14: letter to the ambassador a proper request and insisted no

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Speaker 14: project materialized. Tropical Storm Ernesto is expected to grow to

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Speaker 14: a hurricane as it turns in the Caribbean. Officials in

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Speaker 14: Puerto Rico closed schools and open shelters. Ernesto is on

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Speaker 14: a path toward Bermuda deryl ingestion with the Virgin Islands

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Speaker 14: Territorial Emergency Management Agency.

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Speaker 7: The hurricane washing is being issued for US Virgin Islands

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Speaker 7: to Burgess, Virgia Islands vehicles and Calebra to anticipate a

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Speaker 7: rapid intensification.

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Speaker 14: Just days ago, Debbie passed through the area, leaving storm damage.

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Speaker 14: Opening statements are expected to begin today in the murder

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Speaker 14: trial of a Las Vegas area politician accused of killing

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Speaker 14: an investigative reporter. Prosecutors accused former Clark County Public administrator

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Speaker 14: Robert Tellis of killing Las Vegas Review Journal reporter Jeff

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Speaker 14: Jerman in September of twenty twenty two Loyola Law School

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Speaker 14: professor and former federal prosecutor Lori Levinson.

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Speaker 10: The allegations are at the politician. The defendant here, Robert Tellis,

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Speaker 10: was upset at a reporter who had said negative things

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Speaker 10: about him, and in fact, that seems to have been

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Speaker 10: the motive alleged for this crime.

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Speaker 14: Former federal prosecutor Lori Levinson. Former Houston Mayor Sylvester Turner

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Speaker 14: was picked as the Democrat's nominee to succeed the late

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Speaker 14: US Representative Sheila Jackson Lee, who died last month of

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Speaker 14: pancreatic cancer. Turner will be appearing on the November ballot

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Speaker 14: after securing the most support from local Democratic precinct chairs.

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Speaker 14: Global News twenty four hours a day and whenever you

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Speaker 14: want it with Bloomberg News. Now. I'm Michael Barr, and

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Speaker 14: this is Bloomberg.

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Speaker 2: John, Michael. Yeah, it's tigned out for the Bloomberg Sports Update.

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Speaker 2: An for that, we said, good warning, John stash Ewer,

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Speaker 2: All right, John.

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Speaker 15: Had the White Sox one last night. That would have

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Speaker 15: been two wins and two nights after one win the

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Speaker 15: previous month.

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Speaker 14: Didn't happen.

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Speaker 15: Yankees won four to one in Chicago thanks to Nester Cortez,

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Speaker 15: who through seven scoreless hittings and Juan Soto, who provided

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Speaker 15: the entire Yankee offense. He was the only Yank to

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Speaker 15: have an extra base hit. Soto had the best home

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Speaker 15: run hitting game of his career, two run shot to

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Speaker 15: left field thirty night solo blast also the opposite way

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Speaker 15: of the Fens solo home run to right in the seventh,

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Speaker 15: actually had a chance in the ninth for a four

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Speaker 15: home run game. He now has thirty three home runs

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Speaker 15: and his teammate Aaron.

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Speaker 14: Judge has forty two. Here's Soto on the two of.

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Speaker 16: Them were just coming here and tried to do large

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Speaker 16: jobs down with the day. You know, it's it's really

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Speaker 16: impressive what we've been doing. But at the end of

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Speaker 16: the day, we forget about what we've done.

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Speaker 14: In the past.

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Speaker 16: We tried to come every day, tried to focus in

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Speaker 16: that day, and tried to win games.

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Speaker 14: So for us is.

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Speaker 16: Really it's really good that you guys appreciate everything.

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Speaker 2: That we do.

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Speaker 16: But definitely we come in here every day hungry for.

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Speaker 15: More Yankee win. Coming after news of Jazz Chisholm's elbow

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Speaker 15: injury suffered Monday night on the head first slide home.

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Speaker 15: He is gonna have further test but the MRI is

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Speaker 15: gonna land Chisham on the injured list with surgery and option.

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Speaker 15: Chism has been a nice addition since the trade was Miami.

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Speaker 15: The Orioles lost to Washington nine to three. The anksor

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Speaker 15: back ahead of ball the More by a half game.

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Speaker 15: In City Field, Oakland beat the Mets nine to four.

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Speaker 15: Paul Blackburn, facing his old team, gave up sixer and

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Speaker 15: runs met to their last four games have an outscored

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Speaker 15: thirty one to five. JJ McCarthy, the former Michigan quarterback

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Speaker 15: draft of the first round by Minnesota's gonna miss the

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Speaker 15: start of the season due to a knee injury. Vikings

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Speaker 15: had already planned to have the veteran Sam Donold be

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Speaker 15: the week one starting to be the forty nine Ers

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Speaker 15: appear closer to pulling the trigger on a trade of

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Speaker 15: white Out Brandon Ayuk to Pittsburgh. Terms have been agreed

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Speaker 15: to and now it's just the question of if the

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Speaker 15: Niners make the move. By you unhappy with his contract,

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Speaker 15: wants a trade. John Stashawa Bloomberg Sports, Johnny.

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Speaker 14: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 14: and around the world on Bloomberg dot Com and the

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Speaker 14: Bloomberg Business app.

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Speaker 17: This is Bloomberg Daybreak.

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Speaker 3: Good morning, I'm Nathan Hager. On a morning of big

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Speaker 3: bank earnings. UBS posted higher than expected profit in the

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Speaker 3: second quarter as investment banking revenue and progress in the

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Speaker 3: integration of Credit Suite helped CEO Sergio or Mahdi's efforts

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Speaker 3: to return capital to shareholders. Sergio or Mahdi joined Bloomberg's

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Speaker 3: Fancy in Lanqua to talk about the results and how

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Speaker 3: higher volatility could be good for client portfolios. Let's listen

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Speaker 3: in for the.

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Speaker 17: Markets and for many investors.

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Speaker 7: You know, what happened early on this month has been

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Speaker 7: a week up cal away up cool right, So I

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Speaker 7: mean you look at the magnitude of the movements should

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Speaker 7: make people think carefully about.

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Speaker 17: Having a proper diversification and being very total about the

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Speaker 17: way you invest. More so, in that sense, the fact

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Speaker 17: that we have.

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Speaker 7: Basically made back everything within one week or two cannot

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Speaker 7: be taken as a you know, temporary issues. In my

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Speaker 7: point of view, one has to really think that probably

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Speaker 7: is a sign of some elements of fragility in the system.

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Speaker 11: Does it get easier as maybe we get a FED cut,

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Speaker 11: or does it get more complicated as we go to

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Speaker 11: the US election?

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Speaker 17: But look, you know.

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Speaker 7: When central bank cuts, it depends how they cut and

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Speaker 7: why they cut.

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Speaker 17: So if.

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Speaker 7: You know, of course there is now a capacity probably

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Speaker 7: to accommodate cuts based on lower.

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Speaker 17: Inflation, but it's also you know, we need to watch.

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Speaker 7: Exactly also what are the underlying economic drivers.

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Speaker 17: And to the extent that the FED is.

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Speaker 7: Forced to cut more aggressively because of economic downturns, that

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Speaker 7: would not really be good for the market, so we

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Speaker 7: need to really watch why rates would come down and

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Speaker 7: how quickly they come down. In general, we do expect

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Speaker 7: and we see room for a potential rate cuts in

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Speaker 7: the foreseable future, but I wouldn't really be in the

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Speaker 7: camp of predicting that the FED will go as far

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Speaker 7: as the market wants the.

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Speaker 17: FED to go.

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Speaker 11: There's been a lot of focus on private markets. How

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Speaker 11: does that interplay actually change and what does it mean

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Speaker 11: for ubs now?

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Speaker 17: The big change in client.

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Speaker 7: Behaviors we saw in the last twenty four months was

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Speaker 7: clearly more diversification towards fixed income and so on and

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Speaker 7: so forth.

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Speaker 17: When the rates comes down, of course, maybe part of

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Speaker 17: it will go to search for higher yield in maybe

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Speaker 17: in private credit, but not only.

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Speaker 7: But we do believe that as rates comes down, you

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Speaker 7: will see also potentially people moving back to more alternative assets.

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Speaker 17: And also, which is.

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Speaker 7: Important to understand the ed winds we face in the industry,

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Speaker 7: but also at US in NII in margins on interest

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Speaker 7: rates will be also upset by clients taking more leverage potentially,

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Speaker 7: So it depends how it plays out, It depends what

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Speaker 7: are the underlying economic dynamics.

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Speaker 11: Do you worry that there could be a systemic risk

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Speaker 11: for semi systemic risks.

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Speaker 17: I don't think so. No, I don't think I don't

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Speaker 17: see systemic risk. But volatility.

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Speaker 7: High volatility doesn't mean that you have systemic risks.

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Speaker 11: But what does it mean? High volatility means you need.

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Speaker 17: To be higher volatility? I mean, to be honest, I

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Speaker 17: think if you look at high.

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Speaker 7: Volatility can be an absolute or a relative concept. So

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Speaker 7: because we have seen solo volatility in the last few quarters,

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Speaker 7: you know, I do believe that we're going to see

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Speaker 7: higher volatility. If this is very high and permanently, it's

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Speaker 7: another matter, but I do believe we're going to see

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Speaker 7: more volatility.

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Speaker 12: So it can be quarterly results.

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Speaker 11: If I don't ask you about hiring or actually job losses,

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Speaker 11: can you give us an update on what the next

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Speaker 11: six and then twelve months will bring well you, so that.

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Speaker 17: You know the restructuring.

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Speaker 7: And fixing the elements of problems in the integration are

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Speaker 7: unfortunately driving job losses. We are We took down around

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Speaker 7: three thousand counties quarter, so I think that we will

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Speaker 7: continue to do that in order to restore the profitability

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Speaker 7: UBS had before the appuisition.

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