WEBVTT - Bloomberg Daybreak: September 15, 2022 - Hour 1 (Radio) 0:00:02.560 --> 0:00:05.960 My from the Bloomberg Interactive Burker's Studios is Bloomberg Day 0:00:06.080 --> 0:00:10.240 Right for Thursday, September two. Coming up. This shour stock 0:00:10.360 --> 0:00:14.400 stabilizes investors await another key economic report. Talks continue in 0:00:14.440 --> 0:00:16.400 an effort to have heard a freight rail strike in 0:00:16.440 --> 0:00:19.400 the US. Vladimir Plutin and Shi Jin ping me for 0:00:19.400 --> 0:00:21.919 the first time since the invasion of Ukraine, and we'll 0:00:21.920 --> 0:00:24.919 tell you which business school is ranked tops in the country. 0:00:24.920 --> 0:00:27.120 One of the women who accused former New York Governor 0:00:27.160 --> 0:00:30.800 Cuomo of sexual harassment is suing him. Plushoom Braine assesses 0:00:30.920 --> 0:00:34.879 damage liberated cities from Russia's occupation on my foolar more 0:00:34.960 --> 0:00:38.720 ahead boards Another winds of the Yankees in Boston. Another 0:00:38.840 --> 0:00:41.360 loss for the Mets that comes finished the city fields. 0:00:41.400 --> 0:00:45.640 Weel that's all straight ahead on Bloomberg day Break on 0:00:45.840 --> 0:00:50.440 Bloomberg Eliven Trio, New York, Bloomberg one, Washington, d C 0:00:50.840 --> 0:00:55.160 Bloomberg one oh six one, Boston, Bloomberg nine six seven, Francisco, 0:00:55.560 --> 0:00:58.800 Sirius x M one ninet and around the world on 0:00:58.920 --> 0:01:02.360 Bloomberg Radio. To come and via the Bloomberg Business app. 0:01:07.959 --> 0:01:11.000 Good morning, I'm Nathan Hagar and I'm Karen Moscow. US 0:01:11.000 --> 0:01:14.039 stock index futures. They're little change this morning. We are 0:01:14.120 --> 0:01:15.800 coming up to five oh one on Wall Street. We 0:01:15.920 --> 0:01:18.560 checked the markets to every fifteen minutes throughout the trading day. 0:01:18.720 --> 0:01:22.120 On Bloomberg. Right now, SNP futures again are little changed 0:01:22.200 --> 0:01:24.800 and so are down in Nasdack future is pretty much 0:01:24.880 --> 0:01:27.120 the decks in Germany is up a quarter of a percent. 0:01:27.520 --> 0:01:30.440 Ten year Treasury down ten thirty seconds, yield three point 0:01:30.520 --> 0:01:32.959 four four percent, and the yield on the two year 0:01:33.080 --> 0:01:36.319 three point eight one percent. Nathan, Karen, We're seeing equities 0:01:36.360 --> 0:01:40.000 continue to stabilize following Tuesday's sell off. Yesterday's late day 0:01:40.080 --> 0:01:42.800 rally saw the SNP five close up a third of 0:01:42.880 --> 0:01:45.759 a percent. As for bonds, the US two to thirty 0:01:45.840 --> 0:01:49.280 year curve has reached the most inverted level this century. 0:01:49.760 --> 0:01:53.440 Megan Horneman is chief investment officer Adverdence Capital. You're gonna 0:01:53.480 --> 0:01:55.080 see a lot of this choppings. It's just going to 0:01:55.160 --> 0:01:58.720 be an ugly market over the next week. The markets 0:01:58.760 --> 0:02:01.560 just waiting for that FED report, and then even between 0:02:01.640 --> 0:02:04.240 now and then, we have quite a bit of economic 0:02:04.320 --> 0:02:06.280 data to digest, So I think you're just going to 0:02:06.360 --> 0:02:08.799 see a very sideways choppy market until we get a 0:02:08.880 --> 0:02:10.920 little bit more clarity on exactly what the Fed's going 0:02:10.960 --> 0:02:13.880 to do Burden's capitals. Megan Hornaman says we're all waiting 0:02:13.919 --> 0:02:17.120 for Wednesday's FED decision. Market surprising in a seventy five 0:02:17.200 --> 0:02:20.320 basis point rate hike. Well, Nathan. A gloomy prediction for 0:02:20.400 --> 0:02:23.519 equities this morning from Ray Dalio, the billionaire founder of 0:02:23.560 --> 0:02:27.760 Bridgewater Associate, says stocks could fall about twenty percent as 0:02:27.800 --> 0:02:30.720 if the Fed's target rate reaches four and a half percent. 0:02:30.840 --> 0:02:33.600 The comments and a LinkedIn article followed this week's hotter 0:02:33.680 --> 0:02:36.639 than expected inflation data. Well, busy week on the economic 0:02:36.720 --> 0:02:39.320 front continues this morning, Karen. With the release of US 0:02:39.400 --> 0:02:42.680 retail sales for August, we get a preview from Bloomberg's 0:02:42.720 --> 0:02:45.720 Michael McKee. As it did with the CPI report, gasoline 0:02:45.720 --> 0:02:48.519 will have a major impact on the August retail report. 0:02:48.960 --> 0:02:51.280 Retail sales are reported in dollars, and the drop in 0:02:51.400 --> 0:02:54.440 gas prices will mean a big drop in service station sales. 0:02:54.639 --> 0:02:57.960 The question is whether consumers redirected any of their savings 0:02:58.080 --> 0:03:01.120 to spending on other things. It is back to school season, 0:03:01.400 --> 0:03:04.880 retailers expect a jump in sales. Beyond that, the issue 0:03:04.919 --> 0:03:08.680 is whether Americans continued their switch to spending on services, which, 0:03:08.960 --> 0:03:11.880 with the exception of bars and restaurants, aren't included in 0:03:12.040 --> 0:03:15.480 this number. The retail figures aren't adjusted for inflation, so 0:03:15.600 --> 0:03:19.160 sales will look stronger than they actually were. Michael McKay, 0:03:19.280 --> 0:03:22.600 Bloomberg Daybreak, Right, MC, thank you. Another major story where 0:03:22.639 --> 0:03:25.960 following this morning could have big implications for the economy 0:03:26.080 --> 0:03:29.639 and the market's a possible freight rail strike. Rail and 0:03:29.760 --> 0:03:32.200 union negotiators are still at the table, but it is 0:03:32.320 --> 0:03:35.080 not clear yet if there's been any progress in averting 0:03:35.080 --> 0:03:37.840 a strike set to begin as early as tomorrow. They 0:03:37.880 --> 0:03:41.120 get the latest from Bloomberg's Amy Morris from our newsroom 0:03:41.160 --> 0:03:45.480 in Washington. Talks led by Labor Secretary Marty Waltz, continued 0:03:45.560 --> 0:03:48.840 through the night. Still, officials are making contingency plans in 0:03:48.920 --> 0:03:52.600 case one five thousand freight rail workers walk off the job, 0:03:52.880 --> 0:03:55.600 which some estimates say could cost the US more than 0:03:55.680 --> 0:03:58.840 two billion dollars a day. This setdown would be the 0:03:58.920 --> 0:04:03.120 largest of its kinds and would impact travel and the 0:04:03.200 --> 0:04:06.600 supply chain. Now, industry groups want Congress to step in 0:04:06.760 --> 0:04:10.040 to help avoid In their words, a catastrophic shutdown of 0:04:10.080 --> 0:04:13.440 the freight rail system in Washington. I'm anymore as Bloomberg 0:04:13.520 --> 0:04:16.640 Daybreak thanks Amy, the strike could have a wide ranging impact. 0:04:16.760 --> 0:04:20.279 Treasury Secretary Janet Yellen is warning about the potential economic 0:04:20.400 --> 0:04:24.440 damage from a labor stoppage. It would be a significant 0:04:24.960 --> 0:04:30.760 impediment to shipping goods and to create supply chain challenges. 0:04:31.160 --> 0:04:34.760 It's certainly something we don't want to see happen. In 0:04:34.839 --> 0:04:37.839 an interview with CBS, Secretary Yellen also says she thinks 0:04:37.880 --> 0:04:40.760 inflation will improve substantially over the next year due to 0:04:40.960 --> 0:04:44.480 current actions by the Fed. And we turn overseas now, 0:04:44.680 --> 0:04:48.480 Nathan to geopolitics, where Chinese President Sheijin Ping and Russian 0:04:48.520 --> 0:04:51.760 President Vladimir Putin our center stage. The leaders are taking 0:04:51.800 --> 0:04:54.359 a new step today and there are no limits friendship. 0:04:54.640 --> 0:04:57.880 Bloomberg Daybreak Asia anchor Bryan Curtis has more from Hong Kong. 0:04:58.320 --> 0:05:01.200 Putin probably shouldn't expect to much at his first meeting, 0:05:01.240 --> 0:05:03.880 was she Since the Winter Olympics, China was caught off 0:05:03.960 --> 0:05:07.800 guard when Russia invaded Ukraine a few weeks later. Beijing 0:05:07.839 --> 0:05:11.839 struggled to offer support while avoiding endorsing a clear violation 0:05:11.920 --> 0:05:15.280 of sovereignty, but China came to grips with it, especially 0:05:15.320 --> 0:05:19.440 after Nancy Pelosi visited Taiwan. Now, China says it fully 0:05:19.520 --> 0:05:23.520 understands all measures by Russia to protect his interests. Beijing 0:05:23.680 --> 0:05:26.720 has stopped short of military support for Russia, but the 0:05:26.760 --> 0:05:29.360 Alliance will continue to serve as a check on the 0:05:29.440 --> 0:05:32.840 West in Hong Kong. Brian Curtis Bloomberg Daybreak. All right, Brian, 0:05:32.920 --> 0:05:35.440 thank you in the UK Tota eight man all week. Really, 0:05:35.560 --> 0:05:38.919 it's all about the Queen. Queen Elizabeth's coffin is now 0:05:39.000 --> 0:05:41.840 in Westminster as she lies in state for four days. 0:05:42.200 --> 0:05:44.520 Let's get the latest live with Bloomberg's You and Potts. 0:05:44.560 --> 0:05:47.480 Good morning, Good morning, Nathan and Karen. The British are 0:05:47.560 --> 0:05:50.320 famous for waiting in line, and that is exactly what 0:05:50.520 --> 0:05:53.360 thousands are doing right now as they wait patiently to 0:05:53.400 --> 0:05:55.799 pay their respects to the late Queen Elizabeth, the country's 0:05:55.920 --> 0:05:59.279 longest ever serving monarch. Imagine these coffein is now lying 0:05:59.320 --> 0:06:01.479 in state at the Hearts of the Palace of Westminster, 0:06:01.839 --> 0:06:05.080 where it will remain until Monday morning ahead of the funeral. 0:06:05.560 --> 0:06:07.880 Morna is a big omitted twenty four hours a day, 0:06:07.960 --> 0:06:11.039 but with hundreds of thousands of people expected, the line 0:06:11.080 --> 0:06:15.239 currently stretching three miles could grow very much longer. In London, 0:06:15.279 --> 0:06:17.280 I'm you and part spoon by daybreak, all right, new 0:06:17.360 --> 0:06:19.400 and thank you. Well, we have some corporate news out 0:06:19.440 --> 0:06:22.520 of Europe this morning. The CEO of shell will step 0:06:22.600 --> 0:06:24.760 down at the end of the year. Ben Van Burden 0:06:24.880 --> 0:06:27.760 has been at the energy giant for almost forty years 0:06:28.040 --> 0:06:30.120 and it's been CEO for the past eight will now 0:06:30.200 --> 0:06:33.640 be replaced by Shells Head of Gas and Renewables. Well 0:06:33.680 --> 0:06:36.360 el so on well. The annual list of top business 0:06:36.400 --> 0:06:39.680 schools in the country is out from Bloomberg Business Week Karen, 0:06:40.000 --> 0:06:43.480 and this year Stanford is again number one. Its results 0:06:43.520 --> 0:06:46.840 remained consistent with past years, as it scored highest in compensation, 0:06:46.960 --> 0:06:50.640 networking in entrepreneurship. The University of Chicago's Booth School and 0:06:50.839 --> 0:06:54.919 Harvard Business School tied for second place. And speaking of Chicago, Nathan, 0:06:54.960 --> 0:06:57.400 when it comes to housing, that city, along with New York, 0:06:57.440 --> 0:06:59.680 and the most vulnerable to price to clients in a 0:06:59.800 --> 0:07:03.440 potential economic downturn. That's according to a report by real 0:07:03.600 --> 0:07:07.560 estate data analytics firm ADAM. Of the fifty counties most 0:07:07.680 --> 0:07:10.360 at risk, nine are in and around New York and 0:07:10.560 --> 0:07:13.880 six are in the Chicago metropolitan area. Straight I had 0:07:13.960 --> 0:07:17.320 your latest local headlines, plus a check of sports, and 0:07:17.640 --> 0:07:24.840 this is Bloomberg and itsself. Five oh seven on Wall 0:07:24.880 --> 0:07:28.440 Street or sixteenth degrees in Central Park. Got a tractor 0:07:28.600 --> 0:07:31.400 trailer fire clean up underway in the North Bend New 0:07:31.480 --> 0:07:34.360 Jersey Turnpike, passed eggs and eight details coming up in traffic. 0:07:34.640 --> 0:07:36.600 First Michael Barr with what else is going on in 0:07:36.680 --> 0:07:38.720 New York and around the world. Good morning, Michael, Good 0:07:38.840 --> 0:07:41.720 morning Nathan. One time, a to former New York Governor 0:07:41.760 --> 0:07:45.800 Andrew Cuomo sued him, saying he sexually harassed her and 0:07:45.880 --> 0:07:49.200 then smeared her reputation after she became the second moment 0:07:49.240 --> 0:07:53.600 to publicly accuse him of misconduct. Charlotte Bennett's lawsuit, filed 0:07:53.680 --> 0:07:56.160 in a federal court in New York City, repeats many 0:07:56.240 --> 0:07:59.560 of the allegations she has talked about publicly. She said 0:07:59.560 --> 0:08:03.440 the governor subjected her to unwanted advances, including telling her 0:08:03.800 --> 0:08:06.640 that he was lonely and on the hunt for a girlfriend. 0:08:07.280 --> 0:08:10.160 The New York City Commissioner of Immigration Affairs says that 0:08:10.320 --> 0:08:13.200 many of the vigrants who are being bussted from Texas 0:08:13.280 --> 0:08:16.200 did not want to go to New York. Commissioner Manuel 0:08:16.280 --> 0:08:19.280 Castro says the city is helping them get to other states. 0:08:19.680 --> 0:08:23.080 Castro told Fox five many want to go to places 0:08:23.200 --> 0:08:26.920 like Florida, where the largest community of Venezuelans live. A 0:08:27.040 --> 0:08:30.960 charter flight with about fifty Venezuelan migrants, including children, landed 0:08:31.000 --> 0:08:36.000 on Martha's Vineyard. Yesterday's charter flight was arranged by Florida 0:08:36.040 --> 0:08:39.319 Governor around the Santas's office, saying they sent the immigrants 0:08:39.480 --> 0:08:44.000 from Texas to sanctuary states as part of their relocation program. 0:08:44.480 --> 0:08:47.120 Officials on the islands say they had no prior notice, 0:08:47.280 --> 0:08:50.280 but as soon as they learned what was happening, they rallied. 0:08:50.720 --> 0:08:54.520 Berbera Rush is with St. Andrew's Parish. We've received calls 0:08:54.559 --> 0:08:59.080 from restaurants offering food, stores offering food, people offering space, 0:08:59.440 --> 0:09:02.040 you know, private people showing up saying what can I 0:09:02.120 --> 0:09:05.120 do to help? But it's been amazing. Barbara Rush with St. 0:09:05.160 --> 0:09:09.040 Andrew's Parish. Some state officials in Massachusetts have blasted the scantists, 0:09:09.200 --> 0:09:12.120 calling it a political stunt. A Brooklyn mother has been 0:09:12.160 --> 0:09:15.199 officially charged with drownding of three children who were later 0:09:15.280 --> 0:09:18.040 found on the beach in Coney Island, and when Murdy 0:09:18.120 --> 0:09:21.840 faces several charges, including three counts of murder, President Voladimir 0:09:21.920 --> 0:09:25.160 Zelenski went outside the capital of Kiev to assess the 0:09:25.280 --> 0:09:29.360 damage in cities once again in Ukrainian control. He says, 0:09:29.520 --> 0:09:33.560 Isium was left largely devastated, with apartment buildings blackened by 0:09:33.679 --> 0:09:37.880 fire and pock marked by artillery strikes. The main thing 0:09:38.000 --> 0:09:41.840 that not me here, our soldiers here. That is very 0:09:41.880 --> 0:09:47.080 important thing that its supports supports people. I see how 0:09:47.200 --> 0:09:53.319 people UH meet them. That is you know, uh, we 0:09:53.440 --> 0:09:56.920 are a sensitive moment, President Zelenski. Global name is twenty 0:09:56.960 --> 0:09:58.839 four hours a day on air and on Bloomberg quick 0:09:58.840 --> 0:10:01.160 take power by more than twenties, have a hundred journalists, analysts, 0:10:01.200 --> 0:10:03.839 more than a hundred, twenty countries. Michael bar this is 0:10:03.960 --> 0:10:06.440 Bloomberg Nather. All right, Michael, thank you, very important. Red 0:10:06.480 --> 0:10:09.720 headline just crossing the Bloomberg terminal. The Labor Department says, 0:10:09.840 --> 0:10:12.920 US rail companies and union negotiators have come to a 0:10:13.120 --> 0:10:16.679 tentative agreement to avert a nationwide freight rail strike. We 0:10:16.679 --> 0:10:18.920 will have much more details coming up for you in minutes. 0:10:18.960 --> 0:10:26.600 Here on Bloomberg Daybreak five ten on Wall Street. Now 0:10:26.679 --> 0:10:29.040 time for the Bloomberg Sports Update with John Stashower. Thanks 0:10:29.160 --> 0:10:31.079 Nathans so much for the Mats being able to take 0:10:31.120 --> 0:10:34.400 advantage of playing inferior opponents. Last eleven games have been 0:10:34.400 --> 0:10:38.160 against Washington, Pittsburgh, Miami, and the Cubs for the worst 0:10:38.200 --> 0:10:40.040 in the league in those games, and that's just four 0:10:40.120 --> 0:10:42.959 and seven swept at home by the lowly Cubs. Last 0:10:43.040 --> 0:10:45.200 night's Chicago had six to nothing in the first inning, 0:10:45.600 --> 0:10:48.319 David Peterson Phase six batters got only one out. Cubs 0:10:48.360 --> 0:10:50.160 went on to win sixth three. That's still in first 0:10:50.200 --> 0:10:52.880 place only because Atlanta has suddenly lost four out of 0:10:52.920 --> 0:10:54.439 five ments lead by a half game that host the 0:10:54.480 --> 0:10:57.240 Pirates Tonight. Yankees with a sweep of the many two 0:10:57.320 --> 0:10:59.839 game series in Boston. No Aaron Judge home runs, but 0:11:00.280 --> 0:11:01.959 the big night for Glaver tore As he had the 0:11:02.000 --> 0:11:04.400 winning hit Tuesday. Three more hits last night, the one 0:11:04.440 --> 0:11:07.040 in the fifth inning snapped a scoreless tie, and when 0:11:07.120 --> 0:11:11.200 Boston capture Connor Wong through the ball wildly, three runs 0:11:11.280 --> 0:11:13.560 scored in putting Torres circling in the bases. The Yanks 0:11:13.600 --> 0:11:17.280 one five to three. Donovan Mitchell introduced in Cleveland, traded 0:11:17.320 --> 0:11:19.439 by Utah. The New York native was asked about a 0:11:19.480 --> 0:11:21.679 trade to the next I thought for sure I was 0:11:21.840 --> 0:11:23.880 going back home, not gonna lie about that. But you know, 0:11:23.920 --> 0:11:26.160 when I found out where I was headed, who I 0:11:26.240 --> 0:11:28.360 was playing with, the group, the team, the coaching staff, 0:11:28.400 --> 0:11:30.640 I couldn't be more happier to be here, to be 0:11:30.679 --> 0:11:32.040 a part of this organization, to be a part of 0:11:32.080 --> 0:11:34.640 this group, to join these phenomenal guys man and adds 0:11:34.640 --> 0:11:36.160 who you know. And I think that for me is 0:11:36.200 --> 0:11:38.760 what I'm truly excited. The meanwhile, controversy in the NBA, 0:11:38.880 --> 0:11:42.199 Lebron James critical of Commissioner Adam Silver's decision to to 0:11:42.320 --> 0:11:45.280 spend Phoenix Suns owner Robert Sarver for only one year. 0:11:45.600 --> 0:11:49.880 Starver was found up conducted racist and misogynistic behavior. John Stashward, 0:11:49.880 --> 0:11:52.680 Bloomberg Sports Nathan all Right, John, thanks again. The breaking 0:11:52.760 --> 0:11:56.839 news tentative deal reached between freight rail companies and the 0:11:56.960 --> 0:12:00.080 union to potentially avert a nationwide rail strike. Will at 0:12:00.120 --> 0:12:03.240 the details next with Bloomberg Government's Jack Fitzpatrick in Washington. 0:12:03.640 --> 0:12:09.520 This is Bloomberg Bloomberg eleven three oh Weather mostly sunny 0:12:09.520 --> 0:12:12.800 today with higher seventy five degrees sunshine up or seventies tomorrow. 0:12:13.000 --> 0:12:15.679 We'll get into the low eighties Saturday and bring in 0:12:15.720 --> 0:12:17.840 some clouds Sunday with a high near eighty five. Right 0:12:17.840 --> 0:12:24.040 now sixty eight in Central Park Markets. Headlines and breaking 0:12:24.120 --> 0:12:26.960 news twenty four hours a day at Bloomberg dot Com, 0:12:27.120 --> 0:12:30.719 the Bloomberg Business Outland at Bloomberg Quick Tape. He's a 0:12:30.800 --> 0:12:39.800 Bloomberg Business Flash And I'm Karen Moscow, and we're watching 0:12:39.840 --> 0:12:42.920 futures this morning as they drift. This is investors await 0:12:42.960 --> 0:12:45.960 the latest batch of economic data met expectations of large 0:12:46.000 --> 0:12:48.840 interest rate hikes by the Federal Reserve. Treasury yields are 0:12:48.960 --> 0:12:51.559 rising the Dollar study, and we check the markets every 0:12:51.600 --> 0:12:54.200 fifteen minutes throughout the trading day on Bloomberg. Right now, 0:12:54.360 --> 0:12:57.080 S and P futures again are little change. DAL futures 0:12:57.080 --> 0:12:59.920 are higher of forty, while Nastack futures are little chain. 0:13:00.200 --> 0:13:02.440 The decks in Germany's up three tenths of upper set. 0:13:02.760 --> 0:13:05.199 Can your treasury down ten thirty seconds you have three 0:13:05.240 --> 0:13:07.040 point four or four percent and they yield on the 0:13:07.120 --> 0:13:10.240 two year three point eight two percent. Ninemex screwed oil 0:13:10.320 --> 0:13:12.440 down two tenths per cent, or fifteen cents at eighty 0:13:12.480 --> 0:13:15.160 eight dollars, thirty five cents of barrel comics goal down 0:13:15.200 --> 0:13:17.640 three quarters of a percent on twelve dollars eighty cents 0:13:17.640 --> 0:13:20.640 at sixteen ninety six thirty announced. The euro is at 0:13:20.679 --> 0:13:23.760 point seven against the dollar, British found one point one 0:13:23.840 --> 0:13:26.760 five oh four, the yen one forty three point four too, 0:13:27.240 --> 0:13:29.520 and Bitcoin is of nine tenths of upper cent at 0:13:29.559 --> 0:13:32.640 twenty thousand, one d twenty five dollars. That's a Bloomberg 0:13:32.679 --> 0:13:35.400 business flash. Now here's Michael Barr with more I'm going 0:13:35.440 --> 0:13:38.040 on around the world. Uncle, good morning, Good morning Karen. 0:13:38.120 --> 0:13:40.880 This just in. It looks like a freight rail strike 0:13:41.000 --> 0:13:44.560 will be averted. The Labor Department says US reel companies 0:13:44.600 --> 0:13:48.679 and union negotiators have reached a tentative agreement. The statement 0:13:48.800 --> 0:13:52.599 says they have an agreement that balances the needs of workers, businesses, 0:13:52.720 --> 0:13:56.160 and the economy. Strike had been looming as soon as tomorrow, 0:13:56.280 --> 0:13:58.880 which could have cost the U. S economy as much 0:13:58.920 --> 0:14:02.599 as two billy and dollars a day. Mourners continue to 0:14:02.640 --> 0:14:05.840 file past the casket of Queen Elizabeth at Westminster Hall 0:14:05.920 --> 0:14:08.800 in London. Some people have waited in long lines were 0:14:08.880 --> 0:14:12.040 up to thirty hours. Baseball, the Yankees beat the Red 0:14:12.080 --> 0:14:15.319 Sox five three, the Mets lost, The Orioles beat the 0:14:15.400 --> 0:14:19.600 Nationals six two, the A's and Giants one Global News 0:14:19.680 --> 0:14:23.120 twenty four hours a day on air and on Bloomberg Quicktake, 0:14:23.360 --> 0:14:26.440 powered by more than journalists and analyists more than a 0:14:26.520 --> 0:14:30.360 hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Michael, 0:14:30.400 --> 0:14:32.840 thank you. It's five nineteen on Wall Street Live from 0:14:32.880 --> 0:14:36.640 the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak, and 0:14:36.720 --> 0:14:39.120 let's get more now on the news that just broke 0:14:39.280 --> 0:14:42.560 minutes ago, the White House and the Labor Department announcing 0:14:42.640 --> 0:14:45.920 at tentative agreement reached between freight rail companies and their 0:14:46.040 --> 0:14:49.720 unions that could potentially avert a nationwide rail strike that 0:14:49.760 --> 0:14:52.160 could have taken effect as soon as midnight tonight. Let's 0:14:52.200 --> 0:14:55.240 bring in Bloomberg. Government Congressional reporter Jack Fitzpatrick has been 0:14:55.560 --> 0:14:58.760 following these negotiations from the nation's capital and joins us 0:14:58.840 --> 0:15:01.960 now from our Bloomberg ninety on one studios in Washington, 0:15:02.080 --> 0:15:05.160 d C. Jack, Good morning, Uh, this couldn't have come 0:15:05.160 --> 0:15:08.280 at a better time for the Viden administration and I 0:15:08.320 --> 0:15:11.000 guess for the U. S. Economy as a whole. Yeah, 0:15:11.160 --> 0:15:15.360 not a moment too soon. Essentially, the statement from Labor 0:15:15.400 --> 0:15:18.160 Secretary Marty Walsh that just came out a few minutes 0:15:18.200 --> 0:15:21.960 ago said this happened after more than twenty consecutive hours 0:15:22.080 --> 0:15:25.280 of negotiations. Uh. They just announced this a little after 0:15:25.400 --> 0:15:29.800 five am this morning. Uh. The the deadline was tonight 0:15:30.120 --> 0:15:32.080 and it appears that you know, they're they're calling this 0:15:32.200 --> 0:15:35.000 attentative agreement, but it appears that there will not have 0:15:35.240 --> 0:15:37.520 to be a strike and that there's enough of an 0:15:37.520 --> 0:15:40.000 agreement in place so that we have a statement from 0:15:40.040 --> 0:15:43.240 the White House. Uh it says the rail workers are 0:15:43.240 --> 0:15:45.880 going to get better pay, improved working conditions, and in 0:15:45.960 --> 0:15:49.480 the presence were uh, peace of mind around their healthcare costs. 0:15:49.520 --> 0:15:53.840 A big part of this was about paid medical leave 0:15:54.320 --> 0:15:57.560 and work time flexibility and the demands that have been 0:15:57.640 --> 0:16:02.560 put on rail workers uh during the pandemic about having 0:16:02.640 --> 0:16:05.360 to come into work on very short notice. Uh. So 0:16:06.040 --> 0:16:08.640 it would appear there's going to be something in there 0:16:09.080 --> 0:16:12.480 for them that goes beyond the initial recommendations from the 0:16:12.520 --> 0:16:15.440 President's Emergency Board. But it's it's very big news and 0:16:15.760 --> 0:16:18.120 it you know, they could not have waited much longer 0:16:18.680 --> 0:16:21.040 before a strike would have happened. And I have to 0:16:21.120 --> 0:16:24.840 imagine it's pretty important news as well for President Biden himself, 0:16:24.920 --> 0:16:28.120 who we've heard many times from the President that he 0:16:28.280 --> 0:16:31.600 wants to be the most pro union president in history, 0:16:31.920 --> 0:16:35.400 and now it looks like, uh, he's potentially gotten a 0:16:35.480 --> 0:16:39.440 big win for a major labor union in this country. Yeah, 0:16:39.520 --> 0:16:43.840 and especially this close to the midterm elections. One, this 0:16:44.240 --> 0:16:49.400 was an issue that threatened to, uh, potentially undermine President 0:16:49.480 --> 0:16:53.560 Biden's standing with unions if this all fell apart. The 0:16:53.680 --> 0:16:58.440 fact that they did not immediately wholeheartedly sign on to 0:16:58.520 --> 0:17:02.160 the emergency boards recommendations was was not a good thing. 0:17:02.840 --> 0:17:07.720 But also, even more broadly, the the possibility of economic 0:17:07.840 --> 0:17:10.359 damage from this so close to the mid terms was 0:17:10.520 --> 0:17:13.600 another big threat for the president and for Democrats on 0:17:13.640 --> 0:17:17.480 the campaign trail. Uh. The real officials had estimated this 0:17:17.560 --> 0:17:21.200 would cause about two billion dollars per day of economic 0:17:21.359 --> 0:17:24.719 damage that would probably be significantly worse than even if 0:17:24.760 --> 0:17:27.480 there were a government shut down. Uh. It just for 0:17:27.560 --> 0:17:31.159 the context of the deadlines that that that we're coming up. Uh. 0:17:31.240 --> 0:17:35.000 So it's it's a big crisis averted. It seems as 0:17:35.080 --> 0:17:37.080 long as they're not putting the cart before the horse, 0:17:37.160 --> 0:17:41.040 and this tentative agreement becomes a wholehearted agreement. Yeah. It's 0:17:41.080 --> 0:17:43.879 a significant news as well, coming on the heels of 0:17:44.080 --> 0:17:46.720 the inflation print we just got this week that shows 0:17:46.760 --> 0:17:50.359 that higher prices continue to be an issue in this 0:17:50.520 --> 0:17:54.760 economy and potentially politically for the president as well. Yeah, 0:17:55.119 --> 0:17:57.080 you know it. It's a bit of a case study 0:17:58.000 --> 0:18:03.320 on the inflation uh impact on on wages and what 0:18:03.480 --> 0:18:08.280 the wage demands are. UH. Significant pay increases offered in 0:18:08.440 --> 0:18:12.600 this deal, even before the tentative deal that they're discussing now. 0:18:13.119 --> 0:18:17.359 It also it gets to what workers are demanding in 0:18:17.560 --> 0:18:21.639 terms of time time off, paid, time off, flexibility, that 0:18:21.800 --> 0:18:24.480 kind of thing, UH, and how much pushback there are 0:18:25.040 --> 0:18:28.840 there is from uh from critical workers like rail workers, 0:18:29.280 --> 0:18:32.760 UH against the constraints that were put on them during 0:18:32.840 --> 0:18:37.040 the pandemic. So these are very unique economic times right now, 0:18:37.240 --> 0:18:39.560 and this is a bit of a case study in 0:18:39.760 --> 0:18:44.639 how these negotiations go forward and show what workers demand 0:18:44.760 --> 0:18:48.760 and what workers can realistically get UH in a time 0:18:48.800 --> 0:18:54.040 with continued significant inflation and questions about what the workplace 0:18:54.200 --> 0:18:56.240 looks like for a lot of people during the pandemic. 0:18:56.440 --> 0:18:58.600 Only about thirty seconds left here, Jack, But again, we've 0:18:58.600 --> 0:19:01.359 just gotten this tentative agreement announced just minutes ago. What 0:19:01.440 --> 0:19:04.400 are you looking for next? Uh? Does it go through? 0:19:04.600 --> 0:19:08.960 Because there's not a clear path for Congress to step in? 0:19:09.160 --> 0:19:12.200 This came up yesterday. There there's not clear willingness for 0:19:12.280 --> 0:19:16.120 Congress to pass something to force both sides to accept 0:19:16.200 --> 0:19:19.040 a certain offer. Uh, you know, can the White House 0:19:19.160 --> 0:19:22.680 get this absolutely across the finish line? Uh? Does it 0:19:22.840 --> 0:19:25.960 not only get the thumbs up from labor leaders, but 0:19:26.160 --> 0:19:29.720 do the labor votes from the workers get this across 0:19:29.880 --> 0:19:35.120 the board? Does a tentative agreement turn into an agreement? Agreement? Thanks? Jack, 0:19:35.200 --> 0:19:37.200 great having one with us, as always been our government 0:19:37.200 --> 0:19:41.400 Congressional reporter Jack Fitzpatrick with us from our Bloomberg studios 0:19:41.520 --> 0:19:44.120 in Washington, d C. On the breaking news a tentative 0:19:44.119 --> 0:19:46.560 agreement announced by the White House and the Labor Department 0:19:46.640 --> 0:19:50.360 to potentially avert a nationwide freight rail strike that could 0:19:50.400 --> 0:19:54.960 have snarled of the U S supply chain if that 0:19:55.040 --> 0:19:57.600 strike had gone into effect around midnight tonight, but again 0:19:58.080 --> 0:20:02.360 tentative agreement announced between the unions and the freight rail companies. 0:20:02.840 --> 0:20:09.439 This is Bloomberg Bloomberg eleven three oh weather, mostly sunny, 0:20:09.480 --> 0:20:14.360 mid seventies today, sunny, upper seventies Tomorrow, low eighties Saturday 0:20:14.400 --> 0:20:17.080 and Sunday with a mix of sun and clouds. Right 0:20:17.160 --> 0:20:24.240 now sixty eight in Central Park, broadcasting live from the 0:20:24.359 --> 0:20:28.320 Bloomberg Interactive Broker Studio in New York. Bloomberg E Living 0:20:28.400 --> 0:20:32.720 free to Washington, d C. Bloomberg on to Boston, Bloomberg 0:20:32.800 --> 0:20:35.960 one oh six, one to San Francisco, Bloomberg nun sixty 0:20:36.119 --> 0:20:38.879 to the country, Sirius XM Chando one nine ten, and 0:20:39.000 --> 0:20:42.880 around the globe the Bloomberg Business and Bloomberg Radio dot Com. 0:20:43.320 --> 0:20:51.960 This is Bloomberg Daybreak. It's five thirty on Wall Street. 0:20:52.000 --> 0:20:54.879 Good morning. I'm Nathan Hagar and I'm Karen Moscow, and 0:20:54.920 --> 0:20:57.359 we're just about four hours away from the open of 0:20:57.480 --> 0:20:59.119 US trading. Let's get you up to date on the 0:20:59.160 --> 0:21:01.000 news you need to know at this hour. We have 0:21:01.160 --> 0:21:03.520 breaking news this morning. As we've been telling you, it 0:21:03.560 --> 0:21:06.920 looks like Afraid rail strike will not happen tomorrow. The 0:21:07.040 --> 0:21:10.399 Labor Department says US rail companies and union negotiators have 0:21:10.520 --> 0:21:13.639 reached a tentative deal to avert of strike. Bloomberg Government 0:21:13.680 --> 0:21:16.840 reporter Jack That's Patrick joins us with the latest. The 0:21:16.960 --> 0:21:20.439 real officials had estimated this would cause about two billion 0:21:20.520 --> 0:21:24.280 dollars per day of economic damage. That would probably be 0:21:24.400 --> 0:21:27.200 significantly worse than even if there were a government shut down. 0:21:27.560 --> 0:21:30.600 It's a big crisis averted, it seems as long as 0:21:30.640 --> 0:21:32.639 they're not putting the cart before the horse, and this 0:21:32.800 --> 0:21:37.280 tentative agreement becomes a wholehearted agreement. Bloomberg's Jack Fitzpatrick says, 0:21:37.320 --> 0:21:41.040 the Labor Department believes the agreement balances the needs of workers, businesses, 0:21:41.160 --> 0:21:43.080 and the economy. And we'll keep you up to date 0:21:43.119 --> 0:21:46.000 on those details throughout the morning here on Bloomberg Radio. 0:21:46.119 --> 0:21:48.920 But first let's get you caught up on markets. Equities 0:21:48.960 --> 0:21:51.399 are stabilizing in the wake up Tuesdays sell off right now, 0:21:51.560 --> 0:21:55.040 SMP futures are little changed. Still, Concerns over inflation and 0:21:55.119 --> 0:21:58.040 the Fed remain front and center. Robert Teeters, head of 0:21:58.119 --> 0:22:01.359 investment policy with Silver Crest, asked that management overall, it 0:22:01.400 --> 0:22:03.360 really took us back just about a week in terms 0:22:03.400 --> 0:22:05.200 of where the SMP had been, and so that says 0:22:05.200 --> 0:22:07.560 that there was a lot of optimism built into that report. 0:22:08.000 --> 0:22:09.760 Didn't come through quite as planned, But I think the 0:22:09.800 --> 0:22:13.000 CPI print wasn't quite as bad as numbers in isolation 0:22:13.040 --> 0:22:14.800 would have made it out to be really more reversal 0:22:14.880 --> 0:22:17.080 of the prior week. So again this concept of patients 0:22:17.119 --> 0:22:18.960 and sort of looking through the numbers a little bit, 0:22:19.040 --> 0:22:20.760 things are going to take some time to settle down. 0:22:21.000 --> 0:22:23.679 Robert Teoter with Silver Crest says markets could rebound if 0:22:23.720 --> 0:22:27.560