Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 1: Oil's trading near its highest level since last November, but
Speaker 1: right now ninem Ex scrud's giving back some It's trading
Speaker 1: at eighty five dollars ninety nine cents a barrel. That's
Speaker 1: a decline of eight tenths of one percent. The global
Speaker 1: oil market is tightening, though, after OPEC plus leaders Saudi
Speaker 1: Arabia and Russia announced their extending supply curves through the end.
Speaker 3: Of this year.
Speaker 1: Bloomberg Oil reporter Julia Fanzeri says the surprise extension will
Speaker 1: tighten the market.
Speaker 4: Traders are really surprised, not by necessarily the quantity, but
Speaker 4: the fact that it has been extended until December. So
Speaker 4: they expected that Saudi Arabia was going to extend their
Speaker 4: production cuts one million barrels a day, but till December.
Speaker 4: That's really going to tighten the market to the end
Speaker 4: of twenty twenty three, and that's what really caught traders
Speaker 4: by surprise and what sent markets soaring to above ninety
Speaker 4: one dollars a barrel for Brent at one point.
Speaker 1: And Bloomberg's Julia Fanzeri says oil surge is stoking a
Speaker 1: fresh wave of infletion fears around the globe.
Speaker 2: Well Nathan, stocks in Europe are fallen a bit. Disappointing
Speaker 2: economic news this morning out of Germany, and we get
Speaker 2: the latest from Bloomberg's You and Potts You in Good morning, Good.
Speaker 5: Morning, Karon Nathan. Factory orders in Germany plummeted in July,
Speaker 5: assigned that Europe's biggest economy continue to struggle into the
Speaker 5: third quarter. Demand dropped by eleven point seven percent from
Speaker 5: the previous month, far worse than the drop expected by economists.
Speaker 5: Despite the data, ECB Governing Council member Klaus Cannot says
Speaker 5: investors betting against the Euro Area ratich next week are
Speaker 5: maybe underestimating the chances. He tells Bloomberg the meeting will
Speaker 5: be a close call live in London. I'm your pots
Speaker 5: Bloomberg Radio.
Speaker 1: Okay you and thank you. Over in Asia, the yen
Speaker 1: is trading You're a ten month low this morning. Dollar
Speaker 1: strength prompt to Japan's top currency official to say he
Speaker 1: would not rule out any options if currency moves continue.
Speaker 1: The Chinese Central Bank also moved to defend the yuan
Speaker 1: with another record strongest daily fixing.
Speaker 2: Meanwhile, Nathan Chinese property stocks are trading at a one
Speaker 2: month high. Investors are betting there will be more policy
Speaker 2: support for the sh struggling sector. China's housing crisis has
Speaker 2: produced a record wave of defaults. Authorities have recently rolled
Speaker 2: out a bunch of new measures to support the industry.
Speaker 1: Staying in China, Careen, there's word this morning the government
Speaker 1: in Beijing is barring staff from using Apple's iPhones at work.
Speaker 1: Let's get the story from Bloomberg' John Tucker, John.
Speaker 6: The Well Street journalist. As staff add some central government regulators'
Speaker 6: offices received instructions via chat groups and in meetings to
Speaker 6: stop bringing iPhones and other foreign branded devices into the office.
Speaker 6: China is Apple's biggest international market in iPhones, who among
Speaker 6: the country's bestsellers and are common in both the government
Speaker 6: and private sector. Foreign devices have long been discouraged the
Speaker 6: insensitive agencies. Beijing in recent years stepped up a campaign
Speaker 6: to reduce a reliance on technology from the US, and
Speaker 6: twenty twenty two, Beijing ordered central government agencies and state
Speaker 6: back corporations to replace foreign branded personal computers with domestic
Speaker 6: alternatives within two years. In New yorkom John Tucker.
Speaker 2: Radio, all right, John, thanks, Another high tech company is
Speaker 2: in the spotlight this morning. Bloomberg News has learned Amazon
Speaker 2: will likely be sued by the Federal Trade Commission later
Speaker 2: this month, and we get this story from Bloomberg's Jeff Bellinger.
Speaker 3: It caps a four year anti trust investigation into Amazon.
Speaker 3: Sources say the suit is expected to target the online
Speaker 3: retail giant's popular marketplace. That's where third party merchants, which
Speaker 3: now account for more than half of the company's online sales,
Speaker 3: pay a commission on each sale. Merchants have complained that
Speaker 3: Amazon unfairly ties access to its marketplace with its logistics service.
Speaker 3: Sources say company executives met with the FTC's three commissioners
Speaker 3: in mid August to discuss the suit, though no settlement
Speaker 3: was discussed. This will be the fourth complaint the agency
Speaker 3: has filed this year targeting Amazon. The Biden administration, which
Speaker 3: has focused on anti trust and competition as a keystone
Speaker 3: of its economic policy, is stepping up pressure on big
Speaker 3: tech companies. Jeff Bellinger, Bloomberg Radio.
Speaker 1: Thanks, Jeff. In politics, Senate Minority Leader Mitch McConnell's back
Speaker 1: at work in Bloomberg's Ed Baxster reports he did address
Speaker 1: the attention his health has received.
Speaker 7: Senator McConnell says he wants to put things in perspective.
Speaker 8: One particular moment of my time Backholme has received its
Speaker 8: fair share of attention in the press over the past week,
Speaker 8: but I assure you August was a busy and productive
Speaker 8: month for me and my staff back in the Commonwealth.
Speaker 7: It should be noted the Congressional doctor again has said
Speaker 7: that he shows no signs of stroke or Parkinson's and
Speaker 7: that those moments are common in some concussion cases. McConnell
Speaker 7: also said job one now deserving his full focus as
Speaker 7: keeping the government open and as he puts it, the
Speaker 7: lights on. I'm Ed Baxter, Bloomberg Radio.
Speaker 2: All right and thanks well. It's the toughest punishment yet
Speaker 2: over the attack at the US Capitol. Former Prown Boys
Speaker 2: leader Henry Henriguer Tarrio has been sentenced to twenty two
Speaker 2: years in prison for his role and a seditious conspiracy
Speaker 2: to block the peaceful transfer of power. On January sixth,
Speaker 2: twenty twenty one. Tario's lawyer Naive Hassan says he plans
Speaker 2: to appeal.
Speaker 9: We asked for a recommendation that's not greater than fifteen years.
Speaker 9: We saw sentences that were handed down last week, and
Speaker 9: that's what we thought was appropriate based upon the guidelines.
Speaker 2: Until now, the longest sentence for a January sixth conspirator
Speaker 2: was eighteen years. Prosecutors had been seeking thirty three years
Speaker 2: behind bars for Tario all Ry, Nathan, thanks time now
Speaker 2: for a look at some of the other stories making
Speaker 2: news around the world. For that, we're joined by Bloomberg's
Speaker 2: Amy Morris. Saymy, good morning, Good morning, Karen.
Speaker 10: America's top diplomat, Anthony Blincoln, has arrived in Kief and
Speaker 10: a show of US support. The surprise visit by the
Speaker 10: Secretary of State comes as Ukraine's forces continue a grinding
Speaker 10: counter offensive against entrenched Russian positions. Bloomberg's wrong Ross Matheson
Speaker 10: says the Biden administration is sending a clear signal to
Speaker 10: the world.
Speaker 11: Point of Lincoln's trip to Kiev is just sort of
Speaker 11: a public display of support for Ukraine, perhaps sending a
Speaker 11: message just as much to Ukraine's other allies as to
Speaker 11: Ukraine itself. There's been that sort of sense of creeping fatigue.
Speaker 10: Bloomberg's Ross Mathis and says it is likely that Anthony
Speaker 10: Blncoln will also use that trip to announce further aid
Speaker 10: for Ukraine. US security assistance to that country now totals
Speaker 10: more than forty three billion dollars since Russia's invasion early
Speaker 10: last year. President Biden is celebrating a labor deal for
Speaker 10: port workers at the White House today. He intends to
Speaker 10: use the event to underscore his economic agenda, known as
Speaker 10: Biden Onmics. Ohio Republican Senator jd Vance is making a
Speaker 10: push to ban federal mask mandates.
Speaker 12: This is coming back unless we stop it from happening.
Speaker 12: That's why I introduced this legislation, and I'm going to
Speaker 12: force the Democrats to vote on it. If they say
Speaker 12: that mask mandates are not coming back, then come to
Speaker 12: the Senate floor vote with us and say no more
Speaker 12: mask mandates.
Speaker 3: Let's make it bipartisan.
Speaker 10: He's calling it the Freedom to Breathe Act. It would
Speaker 10: also prevent industries from refusing service to people who choose
Speaker 10: not to wear a face covering. Health experts are warning
Speaker 10: about the triple threat of respiratory diseases picking up early
Speaker 10: as we head into colder months. Doctor Larisa Pisney is
Speaker 10: an infectious disease physician with you see health.
Speaker 13: What we saw in the southern hemisphere, so their winter
Speaker 13: is our summer. We saw that COVID peaked and then
Speaker 13: flu and RSK followed, so important to think about all
Speaker 13: of these now.
Speaker 8: Fcture.
Speaker 10: Pisney notes that respiratory disease tracking indicates a typical start
Speaker 10: of cold month viruses are going to pick up four
Speaker 10: to six weeks earlier. New research shows that a highly
Speaker 10: mutated strain of the coronavirus is actually less of a
Speaker 10: threat that previously feared. The Boston Globe reports about Israel's
Speaker 10: study found the immune response is robust against all variants,
Speaker 10: including this new one called BA two to eighty six
Speaker 10: if you've contracted COVID since December of twenty two. New
Speaker 10: boosters are set to be release east mid September. Global
Speaker 10: News twenty four hours a day, powered by more than
Speaker 10: twenty seven hundred journalists and analysts in more than one
Speaker 10: hundred twenty countries. I'm Amy Morrison. This is Bloomberg.
Speaker 6: Karen.
Speaker 2: All right, Amy, thank you. It is time now for
Speaker 2: the Bloomberg Sports updates. Laker's John Stashauer, John.
Speaker 14: Karen Terry Francona is sixty four years old. He's been
Speaker 14: a big league manager for twenty three seasons, and he
Speaker 14: went on MLB Radio and certainly implied that he's going
Speaker 14: to retire after the season. He's managed the Phillies to
Speaker 14: the Red Sox to two World Championships into the past
Speaker 14: eleven seasons he's been in Cleveland. He says he has
Speaker 14: told the Guardians to start preparing. Cleveland lost at home
Speaker 14: to Minnesota eight to three. That puts the Twins up
Speaker 14: by seven games in the Al Central. The Red Sox
Speaker 14: at Tampa Bay, they scored in the eleventh inning. They
Speaker 14: were up by one in the bottom of the eleventh,
Speaker 14: Swinging a try be for the redfield corner.
Speaker 10: Gone, the Rays.
Speaker 3: Has plugged it off w Dae with the calls.
Speaker 14: The Rays win eight to six. The Orioles also with
Speaker 14: an extra inning win in Tendings over the Angels five
Speaker 14: to four, fourth straight win for Baltimore. They're up by
Speaker 14: three and a half on Tampa Bay Giants loss of
Speaker 14: the Cubs at Wrigley eleven to eight. Toronto won seven
Speaker 14: to one at Oakland behind the former Oakland A pitcher
Speaker 14: Chris basst Yankees a five to one win over Detroit
Speaker 14: John Fellows Stanton snapping a time at the two run
Speaker 14: home of the sixth and eighth first Stanton career home
Speaker 14: run number four hundred US opened last night. The young
Speaker 14: American Ben Shelton with a four set victory over fellow
Speaker 14: American Francis Tiafo. He's off for the semifinals where he'll
Speaker 14: play Novak Djokovic. Coco Goff won her match easily. John
Speaker 14: Stashawa Bloomberg Sports.
Speaker 3: From coast to coast, from New York to San Francisco,
Speaker 3: Boston to Washington, d C.
Speaker 6: Nationwide on Syrias X, the Bloomberg Business app and Bloomberg
Speaker 6: dot Com.
Speaker 3: This is Bloomberg Daybreak.
Speaker 6: Good morning.
Speaker 1: I'm Nathan Hager. The tight global energy market could get
Speaker 1: even more squeezed for the rest of this year. Crude
Speaker 1: oil is trading near its highest level since last November.
Speaker 1: That's after Saudi Arabia and Russia both announced that they're
Speaker 1: extending production cuts that have been in effect for much
Speaker 1: of this year for another three months for more. Were
Speaker 1: joined by Will Kennedy, Senior Executive editor for Energy and
Speaker 1: Commodities at Bloomberg News. Will Good Morning, The duration of
Speaker 1: this announcement on Saudi and Russian supply cuts really seems
Speaker 1: to have taken the market by a bit of surprise.
Speaker 6: Here.
Speaker 1: Why extend those cuts into December rather than just another
Speaker 1: month as many analysts were expecting.
Speaker 15: Well, I think it shows Saudi Arabia's desire to keep
Speaker 15: a strong grip on the oil market and to make
Speaker 15: sure that prices stay relatively high. Clearly, they want to
Speaker 15: make sure that the impacts of bebbage factors in the market,
Speaker 15: the steady flow of crude from Iran more than offset
Speaker 15: by the cuts that they in Russia are making together.
Speaker 15: And it shows a willingness to really grip the oil market.
Speaker 15: And I think importantly it also shows that in an
Speaker 15: oil context, the alliance between read and Moscow remains strong.
Speaker 1: Certainly seems that way when you see the scope of
Speaker 1: apparent coordination on these announcements. Do we have a sense
Speaker 1: from some of the analysts that you're speaking to about
Speaker 1: what kind of price target Saudi Arabia and Russia may
Speaker 1: be looking for with these prolonged production cuts.
Speaker 15: I mean, Saudi Arabia will always tell you that they
Speaker 15: don't make a point of targeting prices, but I think
Speaker 15: if you look at the Saudi economy and the spending
Speaker 15: that Saudi Arabia needs to finance, they probably need a
Speaker 15: price that's closer to one hundred dollars than seventy. They're
Speaker 15: probably comfortable to see oil back in the nineties, and
Speaker 15: I think from their perspective, they feel that the world
Speaker 15: has gone through an inflationary period where prices for most
Speaker 15: things of ribs, and yet oil owe eighty to ninety
Speaker 15: dollars seems high in a historical context, it's not that high.
Speaker 15: I mean, in the wake of the financial crisis, more
Speaker 15: than ten years ago, oil had an extended period above
Speaker 15: one hundred dollars a barrel. So they think a ninety
Speaker 15: day price today is not the same as a ninety
Speaker 15: day price in the past.
Speaker 1: You mentioned Saudi Arabia trying to keep more of a
Speaker 1: grip on the oil market, away from some of the
Speaker 1: supply that could be coming back from Iran. What further
Speaker 1: rebalancing of the oil market could we see from an
Speaker 1: extended production cut like this from the Sadis and the Russians.
Speaker 15: Well, I think a lot of people expect the dev
Speaker 15: aren't that many extra sources supply. I mean there have been.
Speaker 15: The market has been relatively well supplied and been able
Speaker 15: to meet the strong extra demand we've seen as the
Speaker 15: whole world has fighly emerged from the pandemic. A lot
Speaker 15: of that supplies come from Ivana. As I say, Venezuela
Speaker 15: has managed to export more, Brazil has added a lot
Speaker 15: of production, and US has continued to climb. But I
Speaker 15: think most of those sources aren't going to go much
Speaker 15: further in the short term, at least that the expectation
Speaker 15: is that Ivan doesn't have an awful much more oil
Speaker 15: to give that Brazil's production grateful Veacha hiatus, for example,
Speaker 15: And in that context, I think that's why many observers
Speaker 15: of the market think that prices could well go high
Speaker 15: of them here, because Saudi Arabia is keeping those production
Speaker 15: cuts in place. Demand, despite concerns about the Chinese economy,
Speaker 15: seems fairly robust, and some of those extra sources to
Speaker 15: supply aren't going to be sustained. And I think for
Speaker 15: many people in the market, I mean time will tell,
Speaker 15: but for many people in the market that could be
Speaker 15: quite a bullish brew, and.
Speaker 1: I guess time will tell as well how much further
Speaker 1: price pressure this could put on a global economy that's
Speaker 1: still struggling to deal with reining in inflation. I mean,
Speaker 1: a move like this is going to make central bankers'
Speaker 1: lives even that much more difficult, isn't that.
Speaker 15: It definitely feeds in And of course the thing about
Speaker 15: oil is it feeds fake quickly through to gasoline prices,
Speaker 15: which is a price that everyone knows and sees quickly,
Speaker 15: and it makes people feel poorer, even if you know
Speaker 15: the general price level isn't vising quite as high. So
Speaker 15: it's a political issue as well as well. We know
Speaker 15: if oil price is at the pump or gasoline prices
Speaker 15: at the pump start climbing for consumers around the world.
Speaker 1: Our last minute here will Is there any way to
Speaker 1: game out what we should expect after December when the
Speaker 1: next potential decision comes down the line from Saudi Arabia,
Speaker 1: Russia and potentially other members of our PEC class And.
Speaker 15: Look, I think it's hard to say other you know,
Speaker 15: everyone is meeting their current commitments. I think that they
Speaker 15: will look at the market, They will look at how demand,
Speaker 15: how strong demand has been in the final quarter of
Speaker 15: the year. You know, they will want to assess where
Speaker 15: the Chinese economy is how bad those property wobbles have spread,
Speaker 15: and they'll think about what to do next. But I
Speaker 15: suspect it's too early to say. I'm afraid.
Speaker 1: This is Bloomberg Daybreak Today, your morning brief on the
Speaker 1: stories making news from Wall Street to Washington and beyond.
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