1 00:00:02,759 --> 00:00:05,920 Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 2 00:00:05,960 --> 00:00:09,760 Speaker 1: Day Bright for Wednesday, September four two. Coming up this hour, 3 00:00:10,119 --> 00:00:13,720 Speaker 1: futures rise following the worst day for stocks in two years, 4 00:00:14,080 --> 00:00:17,320 Speaker 1: positive inflation data in the UK as prices slipped from 5 00:00:17,360 --> 00:00:20,640 Speaker 1: forty year highs in London, Queen Elizabeth's coffin makes its 6 00:00:20,640 --> 00:00:23,200 Speaker 1: way to Buckingham Palace, and a rail strike in the 7 00:00:23,320 --> 00:00:26,440 Speaker 1: US threatens to halt shipments of farm products and autos. 8 00:00:26,680 --> 00:00:29,800 Speaker 1: Former New York Governor Cuomo files and ethics complain against 9 00:00:29,840 --> 00:00:32,760 Speaker 1: the a G BLUs Ukrainian troops keep up the pressure 10 00:00:32,760 --> 00:00:36,199 Speaker 1: on fleeing Russian forces. I'm Michael blarn More and I'm 11 00:00:36,240 --> 00:00:38,880 Speaker 1: John Steward's fourth Another big night for Aaron Judge. Two 12 00:00:38,920 --> 00:00:40,640 Speaker 1: arm runs in the Yankee win over the Red Sox. 13 00:00:40,680 --> 00:00:43,840 Speaker 1: The Mets lost again to the cold. That's all straight 14 00:00:43,880 --> 00:00:48,080 Speaker 1: ahead on Bloomberg Day Break on Bloomberg Eliven Frio, New York, 15 00:00:48,200 --> 00:00:52,960 Speaker 1: Bloomberg one, Washington, d C, Bloomberg one, O six one, Boston, 16 00:00:53,120 --> 00:00:58,080 Speaker 1: Bloomberg nine sixty, Francisco, Syrius x M one nineteen and 17 00:00:58,120 --> 00:01:01,240 Speaker 1: around the world on Bloomberg Radio dot Com and via 18 00:01:01,320 --> 00:01:09,320 Speaker 1: the Bloomberg Business Act and Good morning. I'm Karen Moscow, 19 00:01:09,520 --> 00:01:11,960 Speaker 1: I'm Nathan Hagar. Bloomberg Daybreak is brought to you by 20 00:01:12,040 --> 00:01:14,200 Speaker 1: B and Y Melon's Pershing learned why the world's most 21 00:01:14,200 --> 00:01:17,760 Speaker 1: sophisticated wealth management and institutional firms rely on Pershing to 22 00:01:17,800 --> 00:01:21,520 Speaker 1: help them improve profitability, create efficiency, attract talent and manager 23 00:01:21,600 --> 00:01:25,360 Speaker 1: risk at Pershing, dot Com and US futures are higher 24 00:01:25,360 --> 00:01:27,560 Speaker 1: this morning six oh one on Wall Street. We checked 25 00:01:27,560 --> 00:01:30,600 Speaker 1: the markets every fifteen minutes throughout the trading day on Bloomberg, 26 00:01:30,760 --> 00:01:33,400 Speaker 1: SNP futures up nineteen points and down, futures of A 27 00:01:33,480 --> 00:01:36,840 Speaker 1: hundred twelve NASDACK futures up sixties seven and the ten 28 00:01:36,920 --> 00:01:39,520 Speaker 1: year treasury down seven thirty seconds. You have three point 29 00:01:39,600 --> 00:01:41,760 Speaker 1: four or three percent, and they yield on the two 30 00:01:41,880 --> 00:01:45,640 Speaker 1: year three point seven seven percent. Nathan Karen's stocks are 31 00:01:45,680 --> 00:01:48,440 Speaker 1: coming off their worst day since twenty twenty. The SNP 32 00:01:48,560 --> 00:01:51,560 Speaker 1: five hundred dropped four point three percent, while the NASTAC 33 00:01:51,680 --> 00:01:54,360 Speaker 1: plunged more than five percent. It was all fueled by 34 00:01:54,400 --> 00:01:58,360 Speaker 1: hotter than expected inflation data, increasing bets for bigger rate 35 00:01:58,440 --> 00:02:01,280 Speaker 1: hikes from the Fed. Carol Schleiche, his Deputy Chief Investment 36 00:02:01,280 --> 00:02:04,960 Speaker 1: officer at Beimo Family Office. The market desperately wants to 37 00:02:05,000 --> 00:02:07,440 Speaker 1: figure out a bullish tone, and they've been fighting the 38 00:02:07,480 --> 00:02:11,600 Speaker 1: FED all year, and the FED has been unequivocal saying 39 00:02:11,639 --> 00:02:14,720 Speaker 1: we're gonna you know, they communicated pretty clearly that it's 40 00:02:14,760 --> 00:02:17,360 Speaker 1: the three quarters of basis point rise. And I think 41 00:02:17,760 --> 00:02:20,560 Speaker 1: this number took everybody by surprise, but the data has 42 00:02:20,600 --> 00:02:23,640 Speaker 1: been really sloppy month to month. Carol Schlife at Bimo 43 00:02:23,680 --> 00:02:26,560 Speaker 1: Family Office, says next week's FED meeting will be crucial 44 00:02:26,600 --> 00:02:30,440 Speaker 1: for markets. Well. Nathan Masseloff spread to Asia overnight, but 45 00:02:30,480 --> 00:02:33,000 Speaker 1: the price action was more muted than what we saw 46 00:02:33,040 --> 00:02:35,640 Speaker 1: in the US. Japan's NK dropped two point eight percent, 47 00:02:35,760 --> 00:02:38,480 Speaker 1: while Hong Kong's Hang Sang fell two and a half percent. 48 00:02:38,760 --> 00:02:41,680 Speaker 1: They get the recap from Bloomberg's Juliette Sally and Sydney. 49 00:02:41,680 --> 00:02:44,840 Speaker 1: Good morning, Juliette, Good morning, Karen. The yan rallied further 50 00:02:44,880 --> 00:02:47,120 Speaker 1: away from the closely watched a hundred and forty five 51 00:02:47,160 --> 00:02:49,320 Speaker 1: per dollar level after the NICK reported the Bank of 52 00:02:49,400 --> 00:02:52,280 Speaker 1: Japan conducted a so called RT check in the currency market, 53 00:02:52,520 --> 00:02:56,160 Speaker 1: a move considered a precursor for intervention. Officials in South 54 00:02:56,240 --> 00:02:59,359 Speaker 1: Korea also ramped up verbal intervention. Well, China Central Bank 55 00:02:59,440 --> 00:03:01,639 Speaker 1: said the day the reference rate on the one at 56 00:03:01,639 --> 00:03:05,120 Speaker 1: the strongest bias on record. Asian stocks had their biggest 57 00:03:05,160 --> 00:03:08,519 Speaker 1: drop since June Intra Day, with Australian, Chinese, tex Stalks, 58 00:03:08,600 --> 00:03:12,400 Speaker 1: and Japanese es the lagged's in Sydney Juliette Sally Bloomber 59 00:03:12,520 --> 00:03:15,840 Speaker 1: daybreak Our Juliet thanks his inflation and higher rates continued 60 00:03:15,840 --> 00:03:18,000 Speaker 1: away on markets. The FEDS still has a long way 61 00:03:18,000 --> 00:03:21,400 Speaker 1: to go. That's according to legendary investor Mark Mobius, who 62 00:03:21,480 --> 00:03:25,040 Speaker 1: says the FEDS benchmark interest rate could hit nine. Their 63 00:03:25,120 --> 00:03:29,000 Speaker 1: game plan is to make sure that the interest rate 64 00:03:29,080 --> 00:03:32,720 Speaker 1: is higher than inflation. That's the way they believe the 65 00:03:32,760 --> 00:03:36,840 Speaker 1: way to kill inflation. So you have eight percent CPI, 66 00:03:37,480 --> 00:03:41,600 Speaker 1: that means you have to have nine interest rates. If 67 00:03:41,640 --> 00:03:44,240 Speaker 1: that forecast from Mark Mobius is right, rates would climb 68 00:03:44,280 --> 00:03:46,880 Speaker 1: significantly higher than the current two and a half percent 69 00:03:46,920 --> 00:03:49,600 Speaker 1: target rate. Well, Nathan, the broad based sell off is 70 00:03:49,600 --> 00:03:52,480 Speaker 1: putting more pressure on the FED to keep up aggressive policy. 71 00:03:52,520 --> 00:03:55,240 Speaker 1: But when it comes to politics, President Biden says he's 72 00:03:55,360 --> 00:03:58,400 Speaker 1: not worried about the threat of inflation. The stock market 73 00:03:58,440 --> 00:04:00,560 Speaker 1: doesn't necessarily reflect the state of the economy, as you 74 00:04:00,600 --> 00:04:05,480 Speaker 1: well know, and the comedy is still strong. Unemployment slow, 75 00:04:05,800 --> 00:04:09,440 Speaker 1: jobs are up, Manufacturing is good. So I think it's uh. 76 00:04:09,720 --> 00:04:12,080 Speaker 1: I think we're gonna be fine. Worried about the inflation number. 77 00:04:12,120 --> 00:04:15,320 Speaker 1: Those are no, I'm not. The President spoke after hosting 78 00:04:15,360 --> 00:04:18,400 Speaker 1: a celebration at the White House for the Inflation Reduction Act. 79 00:04:18,480 --> 00:04:21,880 Speaker 1: After those are marks, Bloomberg political contributor Rick Davis says 80 00:04:22,120 --> 00:04:25,520 Speaker 1: Democrats are starting to look out of touch on the economy. 81 00:04:25,720 --> 00:04:28,000 Speaker 1: It's just they cannot get out of their own way. 82 00:04:28,040 --> 00:04:31,919 Speaker 1: This is a ad ready to be made. Every Republican 83 00:04:31,960 --> 00:04:33,600 Speaker 1: is going to have this near quiver and frankly, they 84 00:04:33,600 --> 00:04:37,040 Speaker 1: give back Republicans a message that was starting to dwindle, 85 00:04:37,080 --> 00:04:40,200 Speaker 1: which is, oh my god, we gotta quit talking about inflation. 86 00:04:40,279 --> 00:04:43,440 Speaker 1: Well not now. Rick Davis spoke at their Washington correspondent 87 00:04:43,520 --> 00:04:46,240 Speaker 1: Joe Matthew on Bloomberg Sound on Catch the program week 88 00:04:46,320 --> 00:04:49,360 Speaker 1: days at five pm Eastern on Bloomberg Radio. In the UK, 89 00:04:49,440 --> 00:04:52,640 Speaker 1: there's some slightly positive news on inflation. Karen prices went 90 00:04:52,680 --> 00:04:55,520 Speaker 1: down a bit, easing off the highest rate in four decades. 91 00:04:55,600 --> 00:04:58,040 Speaker 1: Today's consumer price index in the UK rose at an 92 00:04:58,040 --> 00:05:00,680 Speaker 1: annual rate of nine point nine percent, up from ten 93 00:05:00,760 --> 00:05:03,960 Speaker 1: point one in July. The Bank of England meets next week. 94 00:05:04,000 --> 00:05:06,480 Speaker 1: It is expected to raise interest rates either fifty or 95 00:05:06,600 --> 00:05:09,880 Speaker 1: seventy five basis points. But the bigger story in England 96 00:05:09,960 --> 00:05:13,000 Speaker 1: right now, Nathan centers on Queen Elizabeth the Second. Her 97 00:05:13,040 --> 00:05:16,480 Speaker 1: coffin is now at Buckingham Palace as people queue up 98 00:05:16,480 --> 00:05:18,240 Speaker 1: to pay their respect to the Queen, and we go 99 00:05:18,279 --> 00:05:20,679 Speaker 1: to London and get the latest from Bloombergy's un pass. 100 00:05:20,720 --> 00:05:23,960 Speaker 1: Good morning, un Good morning, Karen and Nathan. Queen Elizabeth 101 00:05:24,040 --> 00:05:26,360 Speaker 1: is set to leave bucking Palace today for the very 102 00:05:26,440 --> 00:05:29,960 Speaker 1: last time, departing at two twenty two pm. Her Majesty's 103 00:05:29,960 --> 00:05:33,159 Speaker 1: coffee will be transported by horse drawn gun carriage through 104 00:05:33,200 --> 00:05:36,880 Speaker 1: St James's Park and onto Westminster. Walking behind his mother's 105 00:05:36,880 --> 00:05:39,160 Speaker 1: coffin will be the new King, King Charles the Third, 106 00:05:39,520 --> 00:05:42,360 Speaker 1: followed by other scenior members of the royal family. The 107 00:05:42,440 --> 00:05:45,480 Speaker 1: Queen's coffin will line states in Westminster Hall, the ancient 108 00:05:45,520 --> 00:05:48,160 Speaker 1: heart of the British Parliament, for four days until her 109 00:05:48,200 --> 00:05:51,360 Speaker 1: funeral on Monday. As many as a million people are 110 00:05:51,360 --> 00:05:53,960 Speaker 1: expected to join the line to walk past her caskets 111 00:05:54,200 --> 00:05:56,440 Speaker 1: in London. I'm yourn part Splin by daybreak, thanks you, 112 00:05:56,600 --> 00:05:59,719 Speaker 1: and geo politics is also in focus this morning. President 113 00:05:59,800 --> 00:06:02,479 Speaker 1: she Jin Ping is making his first trip outside China 114 00:06:02,520 --> 00:06:04,479 Speaker 1: in more than two years. It gives him a chance 115 00:06:04,520 --> 00:06:06,800 Speaker 1: to beat Vladimir Putin in person for the first time 116 00:06:06,839 --> 00:06:09,280 Speaker 1: since Russia began its invasion of Ukraine. We get more 117 00:06:09,320 --> 00:06:12,440 Speaker 1: from Bloomberg Stephen Angle in Hong Kong. Obviously, for Putin 118 00:06:12,680 --> 00:06:17,039 Speaker 1: he needs China's support. Perhaps the war, according to many calculations, 119 00:06:17,120 --> 00:06:20,000 Speaker 1: is not going as planned. And for you know, she 120 00:06:20,120 --> 00:06:23,559 Speaker 1: didn Ping he is again steadfastly sticking to this plan 121 00:06:23,800 --> 00:06:29,120 Speaker 1: of decentralizing Western institutions and creating a narrative from a 122 00:06:29,240 --> 00:06:32,640 Speaker 1: Chinese perspective. Bloomberg Stephen Angle reports she and Putin meet 123 00:06:32,680 --> 00:06:35,599 Speaker 1: tomorrow in Uzbekistan on the sidelines of a security forum. 124 00:06:35,720 --> 00:06:39,479 Speaker 1: First President She is in Kazakhstan today and Nathan back 125 00:06:39,480 --> 00:06:41,320 Speaker 1: here in the U s a big labor fight is 126 00:06:41,360 --> 00:06:45,080 Speaker 1: making headlines. A threatened strike could prevent American railroads from 127 00:06:45,080 --> 00:06:48,320 Speaker 1: transporting farm products and other key goods as soon as 128 00:06:48,360 --> 00:06:51,599 Speaker 1: tomorrow and could cost the US economy two billion dollars 129 00:06:51,640 --> 00:06:54,599 Speaker 1: a day. President Inviting is personally trying to break the 130 00:06:54,640 --> 00:06:58,359 Speaker 1: long jam between railroads and labor unions. Labor Secretary Murty 131 00:06:58,400 --> 00:07:01,280 Speaker 1: Walsh will meet with Railroad and you and representatives today. 132 00:07:01,680 --> 00:07:03,880 Speaker 1: Futures are moving higher. Care and S and P futures 133 00:07:03,920 --> 00:07:06,360 Speaker 1: up nineteen points, STOW futures up a hundred ten, NASTEC 134 00:07:06,440 --> 00:07:09,520 Speaker 1: futures up sixty five points. The tenure treasuries down seven 135 00:07:09,560 --> 00:07:12,640 Speaker 1: thirty seconds, the yield three point for three, nim X 136 00:07:12,640 --> 00:07:15,280 Speaker 1: screwed up four ten percent. At eighty seven sixty seven 137 00:07:15,280 --> 00:07:18,200 Speaker 1: of Barrel. Local headlines in the check of Sports. Next, 138 00:07:18,800 --> 00:07:24,720 Speaker 1: this is Bloomberg. It is uh six oh seven on 139 00:07:24,760 --> 00:07:27,240 Speaker 1: Wall Street, sixty four degrees in Central Park. Got an 140 00:07:27,280 --> 00:07:30,000 Speaker 1: accident at westbound l I E at Maurice Avenue. We're 141 00:07:30,040 --> 00:07:32,360 Speaker 1: coming up in traffic. First, Michael Barr with what else 142 00:07:32,440 --> 00:07:33,920 Speaker 1: is going on in New York and around the world. 143 00:07:33,960 --> 00:07:36,600 Speaker 1: Good morning, Michael, Good morning Nathan. Former New York Governor 144 00:07:36,640 --> 00:07:39,960 Speaker 1: Andrew Cuomo filed an ethics complain against State Attorney General 145 00:07:40,000 --> 00:07:43,640 Speaker 1: Letitia James about the way she handled a sexual harassment 146 00:07:43,640 --> 00:07:47,880 Speaker 1: investigation that led to his resignation last year. Cuomo questioned 147 00:07:47,920 --> 00:07:52,560 Speaker 1: the accuracy and credibility of the investigations findings allegend James, 148 00:07:52,560 --> 00:07:56,000 Speaker 1: the fellow Democrat, used the probe to turnish him. Cuomo 149 00:07:56,040 --> 00:07:59,160 Speaker 1: says James, who briefly ran for governor, had her own 150 00:07:59,160 --> 00:08:03,240 Speaker 1: politically mode ofvate it and self interest driven agenda. Rhode 151 00:08:03,280 --> 00:08:07,720 Speaker 1: Island Governor Dan McKee won Tuesday's Democratic gubernatorial primary. He 152 00:08:07,840 --> 00:08:12,880 Speaker 1: thanks supporters to stand here before you tonight, not just 153 00:08:12,960 --> 00:08:17,560 Speaker 1: as your governor, but as the Democratic nomination nominee for 154 00:08:17,760 --> 00:08:21,280 Speaker 1: governor of Rhode Island. Governor McKee at the most with 155 00:08:21,320 --> 00:08:24,400 Speaker 1: thirty three percent. In the fall, McKee will face Republican 156 00:08:24,440 --> 00:08:28,920 Speaker 1: Ashley Kellis, who got eight In New Hampshire. The Republican 157 00:08:29,000 --> 00:08:32,520 Speaker 1: contest for Senate remains a tight race between conservative Donald 158 00:08:32,600 --> 00:08:37,199 Speaker 1: Buldock and the more moderate Chuck Morrise. Republicans see Democratic 159 00:08:37,240 --> 00:08:40,760 Speaker 1: incumbent Senator Maggie Hassan as beatable in the general election. 160 00:08:41,160 --> 00:08:45,280 Speaker 1: The final primaries two were also held in Delaware. The 161 00:08:45,360 --> 00:08:48,240 Speaker 1: Mayor of Boston this thanking law enforcement for a speedy 162 00:08:48,280 --> 00:08:52,320 Speaker 1: response last night after a package exploded on the campus 163 00:08:52,320 --> 00:08:56,240 Speaker 1: of Northeastern University, injuring a staff member. The forty five 164 00:08:56,320 --> 00:08:59,000 Speaker 1: year old man suffered minor injuries to his hand and 165 00:08:59,080 --> 00:09:01,920 Speaker 1: was taken to a local hospital their Michelle Woo, I 166 00:09:02,040 --> 00:09:05,200 Speaker 1: just want to thank all of our first responders for 167 00:09:06,160 --> 00:09:10,319 Speaker 1: very very swift, coordinated and effective response within minutes, our 168 00:09:10,760 --> 00:09:14,080 Speaker 1: police department and E M S and Fire department. We're here. 169 00:09:14,720 --> 00:09:17,559 Speaker 1: Mayor wo says. A search revealed a second similar package 170 00:09:17,640 --> 00:09:21,440 Speaker 1: that was ultimately rendered safe by the bomb squad. Ukrainian 171 00:09:21,480 --> 00:09:25,680 Speaker 1: troops continue to pressure retreating Russian forces, pressing deeper into 172 00:09:25,679 --> 00:09:29,880 Speaker 1: occupied territory and sending more Kremlin troops fleeing, depending on spokesman, 173 00:09:29,880 --> 00:09:34,320 Speaker 1: Brigadier General Pat Writer on Russia, Clearly they've demonstrated their 174 00:09:34,320 --> 00:09:38,199 Speaker 1: intent to keep fighting uh IN in Ukraine and to 175 00:09:38,480 --> 00:09:43,840 Speaker 1: prolong their illegal occupation. General Writer says the progress by 176 00:09:43,880 --> 00:09:47,000 Speaker 1: the Ukrainians in the field came as no surprise. Global 177 00:09:47,000 --> 00:09:49,440 Speaker 1: News twenty four hours a day on air and on 178 00:09:49,480 --> 00:09:53,000 Speaker 1: Bloomberg Quick Tank, powered by more than seven hundred journalists 179 00:09:53,000 --> 00:09:55,680 Speaker 1: and analysts more than a hundred twenty countries. Michael Barr, 180 00:09:55,760 --> 00:10:02,679 Speaker 1: this is Bloomberg, Nathan, Thank you. Michael six O nine 181 00:10:02,679 --> 00:10:04,520 Speaker 1: on Wall Street Time for the Bloomberg Sports Update with 182 00:10:04,600 --> 00:10:07,440 Speaker 1: John stashwar Pathan. Aaron Boone was asked last night to 183 00:10:07,480 --> 00:10:11,200 Speaker 1: describe Aaron Judge's performance in this remarkable season, he said, 184 00:10:11,240 --> 00:10:14,320 Speaker 1: I have run out of adjectives. In Boston, Judge hit 185 00:10:14,360 --> 00:10:16,319 Speaker 1: a solo home run six sitting and tied the game 186 00:10:16,360 --> 00:10:18,800 Speaker 1: at three, and then came up two innings later, one 187 00:10:18,920 --> 00:10:21,920 Speaker 1: long swung on there it goes. Keep the field. It 188 00:10:22,000 --> 00:10:26,040 Speaker 1: is hot. Yous far head has got out of the building. 189 00:10:27,080 --> 00:10:31,319 Speaker 1: Over the high green monster. Over the monster seats out 190 00:10:31,360 --> 00:10:36,640 Speaker 1: on Sir Landsbane. He is phenomenal. The second home run 191 00:10:36,960 --> 00:10:40,760 Speaker 1: of the night for Judge, his fifty seventh of the year, 192 00:10:41,120 --> 00:10:43,839 Speaker 1: and we're all tied at four an the game is 193 00:10:43,880 --> 00:10:46,839 Speaker 1: still four four tenth inning when Glabor Torres delivered a 194 00:10:46,880 --> 00:10:49,240 Speaker 1: three run double. The Red Sox got two back bottle 195 00:10:49,320 --> 00:10:52,719 Speaker 1: the tenth, but Wandy Peralta struck at Raphael Devers and 196 00:10:52,720 --> 00:10:55,440 Speaker 1: the Yanks won seven six. It's the tenth multi home 197 00:10:55,520 --> 00:10:57,959 Speaker 1: run game of the season for Judge. The record is 198 00:10:58,000 --> 00:11:01,800 Speaker 1: eleven Hank Greenberg n thirty eight and with fifty seven homers, 199 00:11:02,200 --> 00:11:05,560 Speaker 1: Judges inching closer to Roger Merris is sixty one at 200 00:11:05,559 --> 00:11:07,640 Speaker 1: City Field. Second straight Mets loss of the low Ley 201 00:11:07,760 --> 00:11:10,240 Speaker 1: Cubs four to one. Rare loss for Jacob de Graham. 202 00:11:10,559 --> 00:11:13,240 Speaker 1: Mets didn't help gaining only four hits in Atlanta won 203 00:11:13,320 --> 00:11:15,720 Speaker 1: five one at San Francisco. The Braids are only a 204 00:11:15,720 --> 00:11:19,200 Speaker 1: half game behind. Mike Trout did not homer for the Angels. 205 00:11:19,200 --> 00:11:21,240 Speaker 1: He was trying to tie the record for the homer 206 00:11:21,240 --> 00:11:23,520 Speaker 1: in eighth straight games. The Twins came up two out 207 00:11:23,559 --> 00:11:26,880 Speaker 1: short of a combined no hitter against Kansas City w 208 00:11:27,080 --> 00:11:30,480 Speaker 1: NBA Playoffs Las Vegas eighty five, Connecticut seventy one. So 209 00:11:30,559 --> 00:11:32,839 Speaker 1: the Aces are up two games to none. They can 210 00:11:32,920 --> 00:11:36,160 Speaker 1: win the w NBA Championship tomorrow night at the Mahigan Sun. 211 00:11:36,320 --> 00:11:40,280 Speaker 1: John stash Award, Bloomberg Sports Okay, John, thank you. SMP 212 00:11:40,400 --> 00:11:43,520 Speaker 1: futures moving higher by twenty one point, staff futures up 213 00:11:43,559 --> 00:11:47,160 Speaker 1: a hundred twenty seven. Nastack futures are higher by seventy 214 00:11:47,160 --> 00:11:51,040 Speaker 1: two points now. The tenure treasury is down seven thirty seconds. 215 00:11:51,200 --> 00:11:53,960 Speaker 1: The yield three point for three percent yield on the 216 00:11:53,960 --> 00:11:58,320 Speaker 1: two year three point seven seven percent. Context on this 217 00:11:58,480 --> 00:12:03,199 Speaker 1: market after yesterday's hotter than expected inflation, Sam stoveall of 218 00:12:03,280 --> 00:12:08,560 Speaker 1: cfr A with US next Bloomberg eleven three oh Weather 219 00:12:08,640 --> 00:12:10,719 Speaker 1: mostly sunny, turning less humid today with highs in the 220 00:12:10,760 --> 00:12:16,079 Speaker 1: low eighties. Abundant sunshine tomorrow upper seventies, sunny upper seventies 221 00:12:16,120 --> 00:12:18,240 Speaker 1: for Friday as well. Right now sixty four under a 222 00:12:18,240 --> 00:12:24,760 Speaker 1: clear sky in Central Park. Markets. Headlines and breaking news 223 00:12:24,840 --> 00:12:27,400 Speaker 1: twenty four hours a day at Bloomberg dot Com and 224 00:12:27,480 --> 00:12:30,920 Speaker 1: Bloomberg Business at and at Bloomberg Quick Tape. This is 225 00:12:30,960 --> 00:12:39,720 Speaker 1: a Bloomberg Business Flash and I'm Cameron Moscow. US stock 226 00:12:39,760 --> 00:12:42,320 Speaker 1: index futures set to recoup some of the losses brought 227 00:12:42,320 --> 00:12:44,719 Speaker 1: on by a hotter than expected inflation or fourth that 228 00:12:44,840 --> 00:12:47,120 Speaker 1: wiped out more than one and a half trillion dollars 229 00:12:47,120 --> 00:12:49,760 Speaker 1: from the SNP five hundred nearly are racing a four 230 00:12:49,840 --> 00:12:52,600 Speaker 1: day rally. We checked the markets every fifteen minutes throughout 231 00:12:52,600 --> 00:12:55,680 Speaker 1: the trading day. On Bloomberg, SNP future is up twenty 232 00:12:55,720 --> 00:12:58,120 Speaker 1: two points this morning. Dal futures of a hundred thirty two, 233 00:12:58,240 --> 00:13:01,400 Speaker 1: Nashtack futures up seventy six, and the jacks in Germany's 234 00:13:01,400 --> 00:13:04,360 Speaker 1: down three tenths of uppercent ten. Your treasury down six 235 00:13:04,400 --> 00:13:06,760 Speaker 1: thirty seconds. You have three point four three percent they 236 00:13:06,840 --> 00:13:09,400 Speaker 1: yield on the two year three point seven seven percent. 237 00:13:09,920 --> 00:13:12,160 Speaker 1: NIMEX Scrude oil is up a third of percent, or 238 00:13:12,160 --> 00:13:14,480 Speaker 1: twenty nine cents at eighty seven dollar sixty cents in 239 00:13:14,520 --> 00:13:16,880 Speaker 1: barrel Comic School, down a tenth of a percent on 240 00:13:16,960 --> 00:13:20,560 Speaker 1: a dollar eighty at seventeen fifteen sixty announced the euro 241 00:13:20,679 --> 00:13:23,040 Speaker 1: one point zero zero one eight against the dollar, British 242 00:13:23,080 --> 00:13:25,400 Speaker 1: found one point one five six three and again one 243 00:13:25,480 --> 00:13:28,679 Speaker 1: forty three point one three and Bitcoin this morning is 244 00:13:28,760 --> 00:13:31,360 Speaker 1: up seven tenths percent at twenty thousand and three hundred 245 00:13:31,440 --> 00:13:34,600 Speaker 1: seventy dollars. As a Bloomberg Business flash, Now here's Michael 246 00:13:34,600 --> 00:13:36,840 Speaker 1: Barr with Moore on what's going on around the world. 247 00:13:36,880 --> 00:13:39,640 Speaker 1: Michael Karen, thank you very much. Queen Elizabeth, the seconds 248 00:13:39,640 --> 00:13:43,120 Speaker 1: Coffin has arrived at Buckingham Palace ahead of today's procession 249 00:13:43,360 --> 00:13:46,880 Speaker 1: through London to Westminster Hall. She reily in state for 250 00:13:46,880 --> 00:13:50,679 Speaker 1: four days until her funeral. The final primaries for this 251 00:13:50,800 --> 00:13:54,440 Speaker 1: year are over. Rhode Island Democrat Dan McKee now has 252 00:13:54,480 --> 00:13:57,280 Speaker 1: the chance to be elected to his first full term 253 00:13:57,400 --> 00:14:00,960 Speaker 1: as governor. McKee assumed the states top office a year 254 00:14:00,960 --> 00:14:04,360 Speaker 1: and a half ago after Gina Romando joined the Biden 255 00:14:04,360 --> 00:14:07,960 Speaker 1: administration as Commerce Secretary. McKy got the most with thirty 256 00:14:07,960 --> 00:14:10,840 Speaker 1: three percent. The key is the favorite as he faces 257 00:14:10,880 --> 00:14:14,680 Speaker 1: off against Republican Ashley Kellis. In November. Primaries were also 258 00:14:14,760 --> 00:14:18,040 Speaker 1: held in Delaware and New Hampshire. In baseball, the Yankees 259 00:14:18,080 --> 00:14:20,320 Speaker 1: beat the Red Sox seven, six and ten innings. New 260 00:14:20,400 --> 00:14:23,040 Speaker 1: York's Serin judge at two homers to reach fifty seven. 261 00:14:23,480 --> 00:14:26,240 Speaker 1: The Mets lost, The Orioles beat the Nationals for three. 262 00:14:26,560 --> 00:14:30,080 Speaker 1: The A's and Giants lost. Global Needs twenty four hours 263 00:14:30,080 --> 00:14:33,040 Speaker 1: a day on air and on Bloomberg Quicktake, powered by 264 00:14:33,080 --> 00:14:35,520 Speaker 1: more than twenty seven hundred journalists and analysts more than 265 00:14:35,520 --> 00:14:39,440 Speaker 1: a hundred twenty countries. Michael lar This is Bloomberg. Nathan Okay, Michael, 266 00:14:39,440 --> 00:14:41,520 Speaker 1: thank you. At his six nineteen on Wall Street Live 267 00:14:41,600 --> 00:14:45,400 Speaker 1: from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. 268 00:14:45,440 --> 00:14:48,520 Speaker 1: As we continue to assess the market reaction to yesterday's 269 00:14:48,720 --> 00:14:51,960 Speaker 1: hotter than expected Consumer Price Index. Were joined live this 270 00:14:52,000 --> 00:14:55,880 Speaker 1: morning by Sam Stovall, chief investment strategist at c f 271 00:14:55,960 --> 00:14:58,200 Speaker 1: R A. It's great to speak with you. Sam. Was 272 00:14:58,240 --> 00:15:02,320 Speaker 1: at the right reaction for market to drop four the 273 00:15:02,400 --> 00:15:05,880 Speaker 1: SNP or was it an overreaction? Good morning, Nathan, No, 274 00:15:06,040 --> 00:15:09,480 Speaker 1: I think it was an overreaction. Um. Interesting how when 275 00:15:09,560 --> 00:15:12,880 Speaker 1: you compare the eight point three percent for August with 276 00:15:13,040 --> 00:15:16,440 Speaker 1: the eight five in July and nine one. In a sense, 277 00:15:16,480 --> 00:15:19,680 Speaker 1: the direction is correct, but when you do look at 278 00:15:19,680 --> 00:15:23,120 Speaker 1: the monthly numbers, there were surprises. Um. So I think 279 00:15:23,200 --> 00:15:27,320 Speaker 1: just too many people were leaning to an optimistic print 280 00:15:27,560 --> 00:15:29,800 Speaker 1: from c p I, and as a result, they just 281 00:15:29,920 --> 00:15:33,640 Speaker 1: bailed all at once. So what does this mean for 282 00:15:33,760 --> 00:15:36,960 Speaker 1: the Federal Reserve? We're getting into this debate now about 283 00:15:37,080 --> 00:15:40,520 Speaker 1: whether we're gonna see seventy five basis points again next week, 284 00:15:40,560 --> 00:15:42,640 Speaker 1: whether the Fed could go as high as a hundred. 285 00:15:42,680 --> 00:15:45,560 Speaker 1: What do you think the Fed's gonna do, sam? Um? 286 00:15:45,600 --> 00:15:49,000 Speaker 1: I think they're gonna go seventy basis points in September, 287 00:15:49,320 --> 00:15:52,040 Speaker 1: follow it up with fifty in November, and then right 288 00:15:52,080 --> 00:15:57,359 Speaker 1: now the estimate is in December. Uh. Since Alan Greenspan 289 00:15:57,520 --> 00:16:02,040 Speaker 1: started to offer transparency to FED rate moves, we've never 290 00:16:02,120 --> 00:16:05,760 Speaker 1: had anything higher than seventy five basis points. You have 291 00:16:05,840 --> 00:16:09,560 Speaker 1: to go back to the late nineties, seventies, early eighties. Uh, 292 00:16:09,600 --> 00:16:13,040 Speaker 1: and then we actually had seven times in which the 293 00:16:13,160 --> 00:16:16,440 Speaker 1: FED raised rates by a hundred basis points, but that 294 00:16:16,480 --> 00:16:20,160 Speaker 1: was with the discount rate. What's the precedent for the 295 00:16:20,240 --> 00:16:24,120 Speaker 1: kind of market reaction that we could see to this 296 00:16:24,320 --> 00:16:29,640 Speaker 1: kind of aggressive tightening we're seeing from this Federal Reserve 297 00:16:29,760 --> 00:16:32,840 Speaker 1: and to the persistent inflation that we've been seeing over 298 00:16:32,840 --> 00:16:36,480 Speaker 1: the last several months. Well, first, I think, you know, 299 00:16:36,600 --> 00:16:40,400 Speaker 1: let's talk about inflation. I mean, our expectation is, uh 300 00:16:40,440 --> 00:16:44,200 Speaker 1: that inflation will be coming down. Our belief is will 301 00:16:44,240 --> 00:16:48,200 Speaker 1: probably end up seeing inflation come in around six point 302 00:16:48,240 --> 00:16:51,800 Speaker 1: three percent at the end of this year on headline 303 00:16:51,840 --> 00:16:54,760 Speaker 1: cp I and then dropped to about two point four 304 00:16:54,840 --> 00:17:00,800 Speaker 1: percent by December of three, So the trajectory is still 305 00:17:00,880 --> 00:17:04,680 Speaker 1: favorable in our opinion. The Fed will be pushing rates 306 00:17:04,760 --> 00:17:08,760 Speaker 1: up to about four in Fed funds. Uh. So certainly 307 00:17:08,800 --> 00:17:12,920 Speaker 1: that is a target that has already been or will 308 00:17:12,960 --> 00:17:16,239 Speaker 1: soon be built into share prices. The real question, I 309 00:17:16,280 --> 00:17:19,199 Speaker 1: think will be what kind of erosion will occur in 310 00:17:19,359 --> 00:17:22,840 Speaker 1: earnings estimates? Right now, for all of this year, growth 311 00:17:22,960 --> 00:17:26,400 Speaker 1: is projected at six point nine, but it was eight 312 00:17:26,440 --> 00:17:29,840 Speaker 1: point nine, and for next year up seven four, but 313 00:17:29,960 --> 00:17:32,879 Speaker 1: it was eight point eight. So the real question I 314 00:17:32,920 --> 00:17:35,800 Speaker 1: think is what kind of an effect will happen to 315 00:17:36,160 --> 00:17:39,920 Speaker 1: forward earnings estimates? What is your call for forward earnings estimates? 316 00:17:39,920 --> 00:17:44,920 Speaker 1: How much further erosion could we see this year? Well, Traditionally, 317 00:17:45,000 --> 00:17:48,320 Speaker 1: we have seen an erosion of about one third in 318 00:17:48,440 --> 00:17:52,400 Speaker 1: terms of PE ratios during bear markets. Since World War Two. 319 00:17:52,800 --> 00:17:56,320 Speaker 1: We've pretty much already seen much of that when you 320 00:17:56,400 --> 00:18:01,480 Speaker 1: look to what's happening in the sector area, the market itself. 321 00:18:01,520 --> 00:18:05,600 Speaker 1: You know, we're still trading at a slight premium to 322 00:18:05,760 --> 00:18:08,960 Speaker 1: the long term average for the SMP five hundred, about 323 00:18:08,960 --> 00:18:11,919 Speaker 1: a four percent premium, you know, So we could end 324 00:18:12,000 --> 00:18:16,000 Speaker 1: up seeing that UH seventeen point seven pe uh come 325 00:18:16,040 --> 00:18:19,439 Speaker 1: down to the high fifteens, as we did back in 326 00:18:19,600 --> 00:18:22,919 Speaker 1: June before. I think that the all clear might be 327 00:18:23,000 --> 00:18:27,280 Speaker 1: sounded a last minute here, Sam, with the Fed potentially 328 00:18:27,680 --> 00:18:33,120 Speaker 1: on the gas pressing the gas down on interest rate hikes, 329 00:18:33,600 --> 00:18:37,200 Speaker 1: what's the possibility of recession? Can the Feds still pull 330 00:18:37,280 --> 00:18:40,480 Speaker 1: off a soft landing? Do you think? I think that's 331 00:18:40,720 --> 00:18:44,000 Speaker 1: a pretty big estimate. If if we were to say 332 00:18:44,040 --> 00:18:47,080 Speaker 1: that every time since World War Two that we have 333 00:18:47,160 --> 00:18:51,240 Speaker 1: had a six point six, six point five increase in 334 00:18:51,359 --> 00:18:54,840 Speaker 1: headline cp I, and remember we peeked out at nine 335 00:18:54,840 --> 00:18:57,840 Speaker 1: point one, we have had both a bear market and 336 00:18:57,960 --> 00:19:00,959 Speaker 1: a recession. So the real question is not whether we 337 00:19:01,000 --> 00:19:03,600 Speaker 1: will end up with the recession, but how deep or 338 00:19:03,760 --> 00:19:07,280 Speaker 1: shallow will it become um Our economists right now are 339 00:19:07,320 --> 00:19:12,000 Speaker 1: still pointing to a soft landing, but I still think 340 00:19:12,040 --> 00:19:16,680 Speaker 1: that there is the possibility of at least a mild recession. Alright, Sam, 341 00:19:16,720 --> 00:19:19,159 Speaker 1: as always great to get your thoughts. Looking forward to 342 00:19:19,400 --> 00:19:22,680 Speaker 1: getting more perspective from you on Bloomberg surveillance as well. 343 00:19:22,760 --> 00:19:26,600 Speaker 1: Sam Stovall, chief investment strategist at CFR a with us 344 00:19:26,760 --> 00:19:29,800 Speaker 1: this morning looking ahead to the market open. We are 345 00:19:29,840 --> 00:19:33,520 Speaker 1: seeing a bit of recovery after yesterday's slide. SMP futures 346 00:19:33,520 --> 00:19:35,240 Speaker 1: are up twenty one points. It's a game of about 347 00:19:35,240 --> 00:19:37,880 Speaker 1: a half percent right now. Deal futures are up six 348 00:19:38,320 --> 00:19:42,480 Speaker 1: NASDAC futures higher by seventy five points. The tenure Treasury 349 00:19:42,560 --> 00:19:45,320 Speaker 1: is down six thirty seconds. The three point for three 350 00:19:45,359 --> 00:19:48,600 Speaker 1: percent yield on the two year three point seven seven percent. 351 00:19:48,720 --> 00:19:51,760 Speaker 1: NIMEX crude is moving a bit higher, up four tents percent, 352 00:19:52,160 --> 00:19:55,760 Speaker 1: eighty seven dollars sixty five cents of barrel. The euro 353 00:19:56,160 --> 00:19:59,080 Speaker 1: just around parody at against the dollar at one point 354 00:19:59,160 --> 00:20:07,320 Speaker 1: zero zero. To you, you're listening to Bloomberg daybreak Bloomberg 355 00:20:07,320 --> 00:20:10,359 Speaker 1: eleven three oh weather mostly sunny, less humid today, glow 356 00:20:10,400 --> 00:20:14,200 Speaker 1: eighties abundant sunshine tomorrow for seventies for highs. We'll keep 357 00:20:14,240 --> 00:20:17,360 Speaker 1: it sunny upper seventies for Friday as well. Sixty four 358 00:20:17,400 --> 00:20:28,600 Speaker 1: is the current temperature. Broadcasting live from the Bloomberg Interactive 359 00:20:28,640 --> 00:20:32,480 Speaker 1: Broker Studio in New York, Bloomberg E Living Freedom to Washington, 360 00:20:32,560 --> 00:20:36,680 Speaker 1: d C, Bloomberg to Boston, Bloomberg one O six one 361 00:20:36,760 --> 00:20:40,240 Speaker 1: does San Francisco, Bloomberg nine sixty to the country, Sirius 362 00:20:40,359 --> 00:20:43,000 Speaker 1: XM Cho one nine ten, and around the globe the 363 00:20:43,000 --> 00:20:46,879 Speaker 1: Bloomberg Business at and Bloomberg Radio dot com. This is 364 00:20:46,920 --> 00:20:55,360 Speaker 1: Bloomberg Daybreak. It is six thirty on Wall Street. Good morning. 365 00:20:55,359 --> 00:20:58,119 Speaker 1: I'm Nathan Hager and I'm Karen Moscow. We are just 366 00:20:58,200 --> 00:21:00,920 Speaker 1: about three hours away from the open to US trading. 367 00:21:00,920 --> 00:21:02,840 Speaker 1: Time for the five things that you need to notice 368 00:21:02,880 --> 00:21:05,800 Speaker 1: start your day. Brought to you by I b KR. 369 00:21:05,920 --> 00:21:09,719 Speaker 1: Investment Advisers switched to Interactive Brokers for lowest cost global 370 00:21:09,760 --> 00:21:13,320 Speaker 1: trading and turnkey custody solutions, no ticket charges and no 371 00:21:13,400 --> 00:21:15,600 Speaker 1: conflicts of your interests at I b k R dot 372 00:21:15,640 --> 00:21:19,399 Speaker 1: com slash r i a U First US futures higher 373 00:21:19,400 --> 00:21:21,240 Speaker 1: in the wake of yesterday's sell off, which saw the 374 00:21:21,400 --> 00:21:23,760 Speaker 1: s and P five hundred dropped more than four percent, 375 00:21:24,080 --> 00:21:28,000 Speaker 1: and then ASDAC plunge over five Carol's schlife, Deputy Chief 376 00:21:28,040 --> 00:21:31,440 Speaker 1: Investment Officer at BIMO Family Office says, it may be startling, 377 00:21:31,800 --> 00:21:34,000 Speaker 1: but we should keep it in perspective. But I know 378 00:21:34,200 --> 00:21:37,280 Speaker 1: that the down days are scary, but I watch seven 379 00:21:37,359 --> 00:21:39,840 Speaker 1: happened that was pent in a day and the years 380 00:21:39,880 --> 00:21:43,240 Speaker 1: still closed up. Carol's Life at BIMO Family Office says 381 00:21:43,320 --> 00:21:46,520 Speaker 1: next week's FED meeting will be crucial for market sentiment. Well, 382 00:21:46,600 --> 00:21:49,920 Speaker 1: yesterday sell off spread virtually no corner of equity markets. Karen. 383 00:21:49,960 --> 00:21:53,520 Speaker 1: It also cost America's richest billionaires dearly. We get more 384 00:21:53,560 --> 00:21:56,840 Speaker 1: on that from Bloomberg's stug. Prisoner Jeff Bezo suffered the 385 00:21:56,920 --> 00:21:59,919 Speaker 1: biggest hit. Data from the Bloomberg Billionaire's Index show here 386 00:22:00,040 --> 00:22:03,280 Speaker 1: is wealth plunged by nine point eight billion dollars. Elon 387 00:22:03,440 --> 00:22:06,639 Speaker 1: Musk's net worth fell by eight point four billion, and 388 00:22:06,760 --> 00:22:10,080 Speaker 1: the fortunes of Mark Zuckerberg, Larry Page, Sir Gay Brenn, 389 00:22:10,119 --> 00:22:13,520 Speaker 1: and Steve Ballmer all declined by more than four billion dollars. 390 00:22:13,720 --> 00:22:17,560 Speaker 1: In total, the fortunes of America's richest tumbled by ninety 391 00:22:17,640 --> 00:22:20,520 Speaker 1: three billion dollars. You know, just last month the same 392 00:22:20,600 --> 00:22:23,520 Speaker 1: group lost seventy eight billion dollars in a day after 393 00:22:23,640 --> 00:22:26,320 Speaker 1: an eight minute speech from fit Share J Powell in 394 00:22:26,400 --> 00:22:29,000 Speaker 1: New York. I'm Dick Chrisener, Bloomberg Daybreak. All right, Dick, 395 00:22:29,040 --> 00:22:31,400 Speaker 1: thank you. In the UK, there's some slightly positive news 396 00:22:31,440 --> 00:22:34,399 Speaker 1: on inflation. Prices have gone down slightly, easing off the 397 00:22:34,480 --> 00:22:37,600 Speaker 1: highest rate in four decades. Today's Consumer price index rose 398 00:22:37,640 --> 00:22:40,440 Speaker 1: at an annual rate of nine point nine percent. That's 399 00:22:40,480 --> 00:22:43,000 Speaker 1: a drop from ten point one percent in July. The 400 00:22:43,000 --> 00:22:45,200 Speaker 1: bigger story in England right now, Karen centers on Queen 401 00:22:45,240 --> 00:22:48,159 Speaker 1: Elizabeth the Second. Her coffin has arrived at Buckingham Palace 402 00:22:48,240 --> 00:22:50,600 Speaker 1: that will soon be taken to Westminster Hall to lion 403 00:22:50,760 --> 00:22:53,880 Speaker 1: state for four days until her funeral Monday. The Army 404 00:22:54,000 --> 00:22:56,720 Speaker 1: is helping police and London authorities get ready for the event. 405 00:22:56,960 --> 00:22:59,600 Speaker 1: London Mayor City Khan says, it is a massive job. 406 00:23:00,119 --> 00:23:03,680 Speaker 1: We will have almost three hundred world leaders and their 407 00:23:03,760 --> 00:23:06,760 Speaker 1: team's law entorologies out thin else cities ever seen the 408 00:23:06,800 --> 00:23:08,280 Speaker 1: sort of presents are going to see over the next 409 00:23:08,320 --> 00:23:12,359 Speaker 1: few days. If you think about a marathon, carnival, previous 410 00:23:12,480 --> 00:23:16,600 Speaker 1: rule wedings the Olympics. It's all in one. London mayor 411 00:23:16,640 --> 00:23:19,600 Speaker 1: city concepts, rail companies of announced extra services. Thousands of 412 00:23:19,680 --> 00:23:22,160 Speaker 1: mourners head into the city. I'm back here in the US, 413 00:23:22,280 --> 00:23:25,080 Speaker 1: Nathan A threatened strike make his supply chains hard. He 414 00:23:25,119 --> 00:23:28,080 Speaker 1: could prevent railroads from transporting farm products and other key 415 00:23:28,119 --> 00:23:30,359 Speaker 1: goods as soon as tomorrow. That's the five things you 416 00:23:30,440 --> 00:23:32,360 Speaker 1: need to notice start your day. Brought to you by 417 00:23:32,800 --> 00:23:39,239 Speaker 1: Interactive Brokers than Thank you, Karing six thirty three Now 418 00:23:39,320 --> 00:23:41,680 Speaker 1: on Wall Street, sixty four degrees in Central Park. Still 419 00:23:41,720 --> 00:23:43,520 Speaker 1: in with that accident on the westbound l I at 420 00:23:43,560 --> 00:23:46,960 Speaker 1: Maurice Avenue. Details in traffic. First Michael Bart with what 421 00:23:47,040 --> 00:23:48,840 Speaker 1: else is going on in New York and around the world. 422 00:23:48,880 --> 00:23:51,800 Speaker 1: Good morning, Michael, Good morning Nathan. Former New York Governor 423 00:23:51,840 --> 00:23:55,040 Speaker 1: Andrew Cuomo filed and ethics complain against State Attorney General 424 00:23:55,200 --> 00:23:58,680 Speaker 1: Letitia James about the way she handled a sexual harassment 425 00:23:58,720 --> 00:24:03,040 Speaker 1: investigation that led to his resignation. Cuomo questioned the accuracy 426 00:24:03,119 --> 00:24:07,280 Speaker 1: and credibility of the investigations findings, allegend James, a fellow Democrat, 427 00:24:07,440 --> 00:24:10,440 Speaker 1: used the probe to tarnish him and further her own 428 00:24:10,520 --> 00:24:14,800 Speaker 1: political interests. Cuomo resigned in August of last year. The 429 00:24:14,880 --> 00:24:18,800 Speaker 1: final primaries for twenty two ended with voters in Republican 430 00:24:18,920 --> 00:24:22,600 Speaker 1: races choosing between moderates and far right candidates. In the 431 00:24:22,680 --> 00:24:25,680 Speaker 1: New Hampshire US House race, former Trump White House Aid 432 00:24:25,920 --> 00:24:30,399 Speaker 1: Caroline Lovett beat out fellow Trump administration official Matt Mowers 433 00:24:30,680 --> 00:24:33,280 Speaker 1: with thirty four point six percent of the vote. She 434 00:24:33,400 --> 00:24:37,359 Speaker 1: will face Democrat Chris Pappis in November. In the race 435 00:24:37,480 --> 00:24:41,080 Speaker 1: for governor of New Hampshire, Democratic nominee Tom Sherman, who 436 00:24:41,200 --> 00:24:45,920 Speaker 1: ran uncontested, will challenge GOP incumbent Kristinnu, who won his 437 00:24:46,080 --> 00:24:50,080 Speaker 1: primary with nearly seventy of the vote. And Rhode Island 438 00:24:50,160 --> 00:24:53,800 Speaker 1: Governor Dan McKee won the Democratic gubernatorial primary. He thanked 439 00:24:53,840 --> 00:24:57,520 Speaker 1: his supporters the world is gonna change tonight for Rhode Island. 440 00:24:57,640 --> 00:25:01,360 Speaker 1: It did for us, and now we're gonna take full avengement. 441 00:25:01,560 --> 00:25:05,640 Speaker 1: Thank you so much. Governor McKee will face Republican Ashley 442 00:25:05,800 --> 00:25:09,600 Speaker 1: call Us in November. Ukrainian forces have shown a remarkable 443 00:25:09,680 --> 00:25:13,280 Speaker 1: ability to take advantage of opportunities that present themselves on 444 00:25:13,320 --> 00:25:16,879 Speaker 1: the battlefield, as according to depending On spokesman, Brigadier General 445 00:25:17,080 --> 00:25:21,760 Speaker 1: pat Ryder, We've seen a number of Russian forces, especially 446 00:25:21,800 --> 00:25:25,159 Speaker 1: in the northeast in the Karkeev region, cross over the 447 00:25:25,200 --> 00:25:29,800 Speaker 1: border back into Russia as they've retreated from the Ukrainian 448 00:25:30,000 --> 00:25:33,760 Speaker 1: counter offensive. General Rider says the abilities demonstrated by the 449 00:25:33,880 --> 00:25:37,399 Speaker 1: Ukrainians in the field came as no surprise. Senator Lindsey 450 00:25:37,440 --> 00:25:40,399 Speaker 1: Graham says he's introducing a bill de ban abortions before 451 00:25:40,520 --> 00:25:44,920 Speaker 1: four months gestination, with a few exceptions. I feel comfortable 452 00:25:45,000 --> 00:25:49,040 Speaker 1: at fifteen weeks the science tells us that the nerve 453 00:25:49,200 --> 00:25:52,680 Speaker 1: endings are developed to the point that the unborn child 454 00:25:52,720 --> 00:25:56,200 Speaker 1: fills pay Senator Graham says the mid term elections will 455 00:25:56,280 --> 00:25:59,080 Speaker 1: probably determine whether his bill comes up for a vote. 456 00:25:59,440 --> 00:26:02,720 Speaker 1: Former into pended Console Ken Starr, who led the investigation 457 00:26:02,760 --> 00:26:05,919 Speaker 1: into Bill Clinton's affair with Monica Lewinsky, has died in Houston. 458 00:26:06,280 --> 00:26:09,399 Speaker 1: He died after complications from surgery. Again star with seventy 459 00:26:09,440 --> 00:26:12,240 Speaker 1: six Global News twenty four hours a day on air 460 00:26:12,400 --> 00:26:15,320 Speaker 1: and on Bloomberg Quick Take, powered by more than twenty 461 00:26:15,400 --> 00:26:18,280 Speaker 1: seven hundred journalist and analysts more than a hundred twenty countries. 462 00:26:18,640 --> 00:26:21,119 Speaker 1: Michael Barr and this is Bloomberg. Nathan, all right, Michael, 463 00:26:21,160 --> 00:26:27,960 Speaker 1: thank you. Just about six thirty six on Wall Street. 464 00:26:28,000 --> 00:26:30,399 Speaker 1: John stash Hour has the Bloomberg Sports Update. All right, 465 00:26:30,480 --> 00:26:32,760 Speaker 1: Nathan Yankees and Red Sox first of a mini two 466 00:26:32,800 --> 00:26:34,920 Speaker 1: game series in Boston. There are a lot of empty seats. 467 00:26:34,960 --> 00:26:36,480 Speaker 1: The Stocks are, after all in the last place. But 468 00:26:36,600 --> 00:26:39,640 Speaker 1: quite a game. Socks had three different leads, Yanks kept 469 00:26:39,680 --> 00:26:42,040 Speaker 1: coming back to tie. Both teams hit three home runs, 470 00:26:42,400 --> 00:26:44,239 Speaker 1: and the game is tied at four tenth and at 471 00:26:44,240 --> 00:26:46,080 Speaker 1: one one line. There is a face at the right 472 00:26:46,119 --> 00:26:48,560 Speaker 1: side of field in the alley will go all the 473 00:26:48,920 --> 00:26:52,320 Speaker 1: way to the wall, kind of full of the scores. 474 00:26:52,520 --> 00:26:56,800 Speaker 1: Judge scores, and the throw home is late three run 475 00:26:56,920 --> 00:27:00,680 Speaker 1: score floor Real scores. It is a facist clear three 476 00:27:00,880 --> 00:27:04,200 Speaker 1: run double w f A and the Socks got two 477 00:27:04,240 --> 00:27:06,080 Speaker 1: back bottom of the tamp. Gangs held on to win 478 00:27:06,160 --> 00:27:08,800 Speaker 1: seven six the Yankee home run from Marwin Gonzalez and 479 00:27:08,960 --> 00:27:12,160 Speaker 1: two solo seans for Aaron George sixth inning off Vic Pavetta. 480 00:27:12,440 --> 00:27:14,880 Speaker 1: That side the game at three, eighth inning off Garrett Whitlock. 481 00:27:15,000 --> 00:27:16,760 Speaker 1: That tide of the game at four. It left Fenway, 482 00:27:16,800 --> 00:27:19,480 Speaker 1: It landed on LANs Down Street, so Judge took a 483 00:27:19,560 --> 00:27:22,600 Speaker 1: big step towards Roger Marris nineteen games left. He's now 484 00:27:22,640 --> 00:27:25,879 Speaker 1: at fifty seven home runs. That's twenty more than anyone 485 00:27:25,960 --> 00:27:28,320 Speaker 1: else in baseball. This was supposed to be the easy 486 00:27:28,440 --> 00:27:31,840 Speaker 1: part of the Mets schedule, but against Washington, Pittsburgh, Miami, 487 00:27:31,920 --> 00:27:33,760 Speaker 1: and now the Cubs, Mets just four and six of 488 00:27:33,800 --> 00:27:36,080 Speaker 1: their last ten games at City Field. They had only 489 00:27:36,160 --> 00:27:38,760 Speaker 1: four hits. They lost four to one. Is Adrian Sampson 490 00:27:39,200 --> 00:27:41,760 Speaker 1: outfits Jacob mc graham and Atlanta won. The Braves are 491 00:27:41,800 --> 00:27:45,119 Speaker 1: only a half game behind two big NFL Week one injuries, 492 00:27:45,160 --> 00:27:47,600 Speaker 1: both perhaps not as serious his fear Dallas QB Dak 493 00:27:47,640 --> 00:27:50,000 Speaker 1: Prescott could be back in a month from his injured hand. 494 00:27:50,040 --> 00:27:52,560 Speaker 1: In Pittsburgh, t J. Watt has a torn peck muscle, 495 00:27:52,600 --> 00:27:54,960 Speaker 1: but he might be returned in six weeks. Denver coach 496 00:27:55,080 --> 00:27:58,000 Speaker 1: Nathaniel Hackett now admits he should not have tried a 497 00:27:58,119 --> 00:28:00,800 Speaker 1: failed game winning sixty four yard few role at the 498 00:28:00,880 --> 00:28:03,600 Speaker 1: end of their loss Monday night in Stata, John Stanard 499 00:28:03,640 --> 00:28:07,040 Speaker 1: Bloomberg Sports Nathan all Right, John thanks sixty seven on 500 00:28:07,160 --> 00:28:09,399 Speaker 1: Wall Street Time to take a look at stocks some 501 00:28:09,520 --> 00:28:12,080 Speaker 1: of the names moving in the pre market. Bloomberg Radio 502 00:28:12,160 --> 00:28:15,760 Speaker 1: and TV Markets correspondent Creaty Gupta is with us this 503 00:28:16,000 --> 00:28:19,679 Speaker 1: morning after the route. Can we call this recovery creaty 504 00:28:20,080 --> 00:28:23,280 Speaker 1: a little bit of pick up on the futures contracts? 505 00:28:23,320 --> 00:28:24,920 Speaker 1: What do you look at this point? Just a touch 506 00:28:24,920 --> 00:28:26,760 Speaker 1: about four tenths of one percent when you're looking at 507 00:28:26,800 --> 00:28:29,280 Speaker 1: SMP five features. I mean, look, yesterday was I believe 508 00:28:29,280 --> 00:28:31,040 Speaker 1: the worst day since going all the way back into 509 00:28:32,040 --> 00:28:35,080 Speaker 1: so um. There is a little bit of I want 510 00:28:35,119 --> 00:28:37,440 Speaker 1: to call it a spring effect. Almost essentially, when you 511 00:28:37,480 --> 00:28:39,240 Speaker 1: have a spring and you push it down really really hard, 512 00:28:39,720 --> 00:28:41,280 Speaker 1: it will have like a little bit of a technical 513 00:28:41,320 --> 00:28:43,840 Speaker 1: bounce back. That being said, one of major stock movers 514 00:28:43,960 --> 00:28:47,720 Speaker 1: this morning is the Starbucks story. S b u X 515 00:28:47,880 --> 00:28:50,480 Speaker 1: is the taker. It's up about two point six percent, Nathan. 516 00:28:50,600 --> 00:28:52,320 Speaker 1: And of course, you know Starbucks has had quite a 517 00:28:52,400 --> 00:28:55,040 Speaker 1: bit of movement in the last I want to say 518 00:28:55,040 --> 00:28:57,160 Speaker 1: a year or so, especially with their new CEO that's 519 00:28:57,200 --> 00:28:59,360 Speaker 1: now incoming. Howard Schulz, who had been the CEO and 520 00:28:59,400 --> 00:29:02,720 Speaker 1: and founders Starbucks for ages had kind of taken that 521 00:29:02,880 --> 00:29:05,840 Speaker 1: role as an interim position and then passed it on. 522 00:29:06,320 --> 00:29:08,280 Speaker 1: I think what's significant here though, is the fact that 523 00:29:08,520 --> 00:29:11,960 Speaker 1: is rising this morning because it raises three year outlook 524 00:29:12,040 --> 00:29:14,680 Speaker 1: for profit and sales. UH that's coming at an annual 525 00:29:14,720 --> 00:29:17,080 Speaker 1: presentation to investors. Of course, it's a big deal. We 526 00:29:17,200 --> 00:29:20,560 Speaker 1: know that their China sales have really been suffering spinecifically 527 00:29:20,600 --> 00:29:22,880 Speaker 1: because of the COVID lockdowns. We know China is also 528 00:29:22,960 --> 00:29:25,000 Speaker 1: one of their major growth markets, so that's really where 529 00:29:25,040 --> 00:29:28,520 Speaker 1: you see of that Starbucks exposure. Analysts though, talking pretty 530 00:29:28,560 --> 00:29:32,320 Speaker 1: positively about the upgrades. They are optimistic on that Starbucks company. 531 00:29:32,400 --> 00:29:35,720 Speaker 1: Jeffreys also finding the new three year targets achievable and 532 00:29:35,840 --> 00:29:37,960 Speaker 1: that is high praise coming from Jeffrey. So that is 533 00:29:38,200 --> 00:29:40,200 Speaker 1: all good news on star on Starbucks. Remember, this is 534 00:29:40,240 --> 00:29:42,840 Speaker 1: still going to be a question of global chains of 535 00:29:43,040 --> 00:29:45,720 Speaker 1: f X as well. The dollar story will impact Starbucks. 536 00:29:45,760 --> 00:29:48,400 Speaker 1: Remember in their last earnings call they warned about the 537 00:29:48,520 --> 00:29:50,920 Speaker 1: f X impact. So, Nathan, that is the stock I 538 00:29:51,000 --> 00:29:52,920 Speaker 1: have my eye on this morning. All right. Well, it's 539 00:29:52,960 --> 00:29:56,440 Speaker 1: interesting because we've been watching coffee prices of themselves as well, 540 00:29:56,520 --> 00:29:59,080 Speaker 1: and they've been hit pretty hard, a big rally in 541 00:29:59,320 --> 00:30:02,560 Speaker 1: UH in some coffee prices on the commodities market. So 542 00:30:02,680 --> 00:30:05,920 Speaker 1: you're also taking a look at Oracle. They just reported 543 00:30:05,960 --> 00:30:08,200 Speaker 1: some pretty solid earnings this week, didn't they They did? Um, 544 00:30:08,240 --> 00:30:09,600 Speaker 1: if I was to make a quick note on Starbucks, 545 00:30:09,640 --> 00:30:11,800 Speaker 1: really quick, because because we brought up you browed commodities 546 00:30:11,960 --> 00:30:15,320 Speaker 1: is really your fault. He browsed the commodities inflation type 547 00:30:15,320 --> 00:30:17,120 Speaker 1: about wage inflation as well as Starbucks dealing with a 548 00:30:17,200 --> 00:30:19,800 Speaker 1: lot of union issues, something to keep its eye on. 549 00:30:19,960 --> 00:30:22,160 Speaker 1: You talked about Oracle though, and that's a very important 550 00:30:22,160 --> 00:30:24,080 Speaker 1: stock to get to remember. Oracles seen as the old 551 00:30:24,160 --> 00:30:27,280 Speaker 1: guard of sorts O R c L when it comes 552 00:30:27,320 --> 00:30:29,560 Speaker 1: to tech investing down about six tenths of one percent. 553 00:30:29,880 --> 00:30:32,800 Speaker 1: It was initiated as a hold over a Barrenberg as 554 00:30:32,880 --> 00:30:36,120 Speaker 1: the broker saw some bowsed opportunities and risks for the 555 00:30:36,160 --> 00:30:38,200 Speaker 1: software fir. Remember Oracle is trying to get their foot 556 00:30:38,240 --> 00:30:40,920 Speaker 1: into cloud services at the moment and trying to get 557 00:30:41,080 --> 00:30:43,560 Speaker 1: more people to adapt kind of their hybrid system. So 558 00:30:44,280 --> 00:30:46,400 Speaker 1: right now it looks like just initiative as a whole 559 00:30:46,400 --> 00:30:49,040 Speaker 1: of Barenburg. Nothing super exciting, but they're not expecting a 560 00:30:49,120 --> 00:30:52,560 Speaker 1: major rerating in the medium term. All right, Boomberg Radio 561 00:30:52,600 --> 00:30:56,560 Speaker 1: on TV Markets correspondent Pretty Gupta always juiced on the caffeine. 562 00:30:56,720 --> 00:30:58,760 Speaker 1: Thanks for being here in the pre market and as 563 00:30:58,840 --> 00:31:01,040 Speaker 1: we take a look at stocks as a whole, Yeah, 564 00:31:01,040 --> 00:31:03,400 Speaker 1: I will call it a bit of recovery. SMP futures 565 00:31:03,440 --> 00:31:05,320 Speaker 1: up seventeen points right now. Now future is up a 566 00:31:05,400 --> 00:31:08,600 Speaker 1: hundred one Nastack futures up fifty eight points ten, Your 567 00:31:08,600 --> 00:31:11,800 Speaker 1: treasuries down seven thirty seconds, yield three point three percent 568 00:31:11,920 --> 00:31:14,000 Speaker 1: and the yield on the two year three point seven 569 00:31:14,200 --> 00:31:22,680 Speaker 1: eight per cent. You're listening to Bloomberg Daybreak Bloomberg eleven 570 00:31:22,720 --> 00:31:25,120 Speaker 1: three oh weather, sunshine, less humid today, low eighties for 571 00:31:25,120 --> 00:31:27,920 Speaker 1: afternoon highs. We'll get into the upper seventies maybe eighty 572 00:31:28,040 --> 00:31:32,360 Speaker 1: tomorrow and Friday with sunshine all around. Right now, sixty 573 00:31:32,600 --> 00:31:39,680 Speaker 1: to Grace in Central Park Markets. Headlines and breaking news 574 00:31:39,880 --> 00:31:42,480 Speaker 1: twenty four hours a day at Bloomberg dot Com, the 575 00:31:42,560 --> 00:31:46,040 Speaker 1: Bloomberg Business at and at Bloomberg Quicktape. This is a 576 00:31:46,080 --> 00:31:55,280 Speaker 1: Bloomberg business blash and I'm fair in Moscow and futures 577 00:31:55,360 --> 00:31:57,560 Speaker 1: are gaining. This morning we got to the first word 578 00:31:57,640 --> 00:32:00,600 Speaker 1: breaking news dance for today's morning call in here. Tatiana, 579 00:32:00,680 --> 00:32:04,600 Speaker 1: Daria Tardiana, good morning, Good morning, Karen. Like you said, 580 00:32:04,640 --> 00:32:07,120 Speaker 1: it's green on the screen this morning after that big 581 00:32:07,200 --> 00:32:09,760 Speaker 1: sell off with the doll features up eighty six points, 582 00:32:09,880 --> 00:32:12,840 Speaker 1: s and piece up sixteen and nas jack up fifty two. 583 00:32:13,200 --> 00:32:17,240 Speaker 1: Treasuries however, remain under pressure, extending glasses for a third session. 584 00:32:17,520 --> 00:32:20,840 Speaker 1: The tenure yield up three basis points through three spot 585 00:32:20,920 --> 00:32:24,120 Speaker 1: forty three percent. Looking process at the dollar is weaker, 586 00:32:24,240 --> 00:32:27,560 Speaker 1: while the Japanese yen is stronger After officials they're suggested 587 00:32:27,640 --> 00:32:30,520 Speaker 1: that they will respond to recent moves back in the US. 588 00:32:30,640 --> 00:32:34,000 Speaker 1: On the economic front, NBA mortgage applications at seven and 589 00:32:34,160 --> 00:32:37,720 Speaker 1: the Producer Price Index at eight thirty. In early trading 590 00:32:37,760 --> 00:32:40,960 Speaker 1: this morning, Starbucks up three percent after raising its three 591 00:32:41,120 --> 00:32:44,400 Speaker 1: or outlook, and Nicollege shares hired by five after an 592 00:32:44,480 --> 00:32:47,920 Speaker 1: upgrade from bt I G. In other news, Google lost 593 00:32:48,000 --> 00:32:51,600 Speaker 1: its bid to toppily record four billion dollar antitrust finding 594 00:32:51,680 --> 00:32:54,560 Speaker 1: Europe and IBM will take a five point nine a 595 00:32:54,680 --> 00:32:58,680 Speaker 1: billion one time pretext charged this quarter due to a 596 00:32:58,760 --> 00:33:02,440 Speaker 1: pension agreement and wrapping things up here here Oracle was 597 00:33:02,520 --> 00:33:06,280 Speaker 1: initiated at hold at Boomberg, Well Novartists and Bristol Myers 598 00:33:06,360 --> 00:33:09,040 Speaker 1: were cut to hold live from the first and Breaking 599 00:33:09,040 --> 00:33:12,800 Speaker 1: news desk. I'm Tatianataria, Karen, alright, Tatiana, thank you, ed 600 00:33:12,880 --> 00:33:15,760 Speaker 1: here lie breaking news of your Bloomberg type squawk on 601 00:33:15,880 --> 00:33:18,200 Speaker 1: your terminal, s U U A W K and that's 602 00:33:18,200 --> 00:33:20,960 Speaker 1: a Bloomberg business flash. Now here's Michael Barr with Moore 603 00:33:21,040 --> 00:33:23,560 Speaker 1: and what's going on around the world. Michael Karen, thank 604 00:33:23,560 --> 00:33:26,360 Speaker 1: you very much. Queen Elizabeth. The seconds coffin will lie 605 00:33:26,480 --> 00:33:29,600 Speaker 1: in state for four days from this afternoon. In London. 606 00:33:29,920 --> 00:33:32,200 Speaker 1: It comes a mid warnings that members of the public 607 00:33:32,320 --> 00:33:35,200 Speaker 1: wishing to attend to pay their respects at Westminster Hall 608 00:33:35,560 --> 00:33:38,960 Speaker 1: could face up to a thirty hour wait. The final 609 00:33:39,040 --> 00:33:42,160 Speaker 1: primaries for twenty two are over. In the New Hampshire 610 00:33:42,280 --> 00:33:45,520 Speaker 1: US House race, former Trump whine now said Caroline Lovett 611 00:33:45,560 --> 00:33:48,840 Speaker 1: beat out fellow Trump administration official Matt mauer Is with 612 00:33:48,960 --> 00:33:51,520 Speaker 1: thirty four point six percent of the vote. She will 613 00:33:51,600 --> 00:33:55,640 Speaker 1: face Democrat Chris Pappas. In November. Rhode Island Democratic Governor 614 00:33:55,720 --> 00:33:59,520 Speaker 1: Dan McKee faces off against Republican Ashley Kellis in the 615 00:33:59,600 --> 00:34:02,880 Speaker 1: full In baseball, the Yankees beat the Red Sox seven 616 00:34:02,960 --> 00:34:05,680 Speaker 1: six and ten innings, New York's Erin Jodge at two 617 00:34:05,720 --> 00:34:09,000 Speaker 1: homers to reach fifty seven the season. The Mets lost, 618 00:34:09,080 --> 00:34:11,640 Speaker 1: the Orioles beat the Nationals for three. The A's and 619 00:34:11,920 --> 00:34:15,120 Speaker 1: Giants lost. Global News twenty four hours a day on 620 00:34:15,360 --> 00:34:18,720 Speaker 1: air and on Bloomberg Quicktake powered by more than twenty 621 00:34:18,800 --> 00:34:21,600 Speaker 1: seven hundred journalists and analysts more than a hundred twenty countries. 622 00:34:21,960 --> 00:34:24,880 Speaker 1: Michael Barr and this is Bloomberg, Karonry, Michael, thank you 623 00:34:24,960 --> 00:34:27,120 Speaker 1: at at sixty nine on Wall Street, and we turned 624 00:34:27,120 --> 00:34:29,920 Speaker 1: to news and science and technology now at the Bloomberg 625 00:34:30,000 --> 00:34:32,680 Speaker 1: and j I t Stem Report, and here's just making 626 00:34:32,719 --> 00:34:36,480 Speaker 1: news in science, technology, engineering, and math. Hong Kong will 627 00:34:36,560 --> 00:34:41,920 Speaker 1: quit moving travelers with COVID to isolation hotels or quarantine camps. Instead, 628 00:34:41,960 --> 00:34:45,120 Speaker 1: they will be allowed to remain in designated quarantine hotels 629 00:34:45,480 --> 00:34:48,360 Speaker 1: and marks, another easing in the city's travel policy. The 630 00:34:48,440 --> 00:34:51,880 Speaker 1: move comes as Hong Kong prepares for several high profile events, 631 00:34:52,000 --> 00:34:55,880 Speaker 1: including a summit for global bankers at an international rugby tournament. 632 00:34:56,440 --> 00:34:59,520 Speaker 1: European Commissioned President Ursula vunder Lyon will call for a 633 00:34:59,640 --> 00:35:03,000 Speaker 1: radic goal steps today to send the energy crisis that 634 00:35:03,080 --> 00:35:06,200 Speaker 1: will edge closer to ratcheting measures and higher taxes on 635 00:35:06,360 --> 00:35:09,640 Speaker 1: energy companies. The key question is whether Vonda Leon's proposal 636 00:35:09,840 --> 00:35:13,560 Speaker 1: for a five percent reduction and gas consumption survives various 637 00:35:13,600 --> 00:35:17,600 Speaker 1: negotiations and with weather disasters costing two hundred million dollars 638 00:35:17,640 --> 00:35:21,400 Speaker 1: a day and irreversible climate catastrophe looming. A new report 639 00:35:21,440 --> 00:35:24,000 Speaker 1: by the United Nations says the world is quote heading 640 00:35:24,160 --> 00:35:28,759 Speaker 1: in the wrong direction. The World Meteorology Meteorological Organization, in 641 00:35:28,840 --> 00:35:32,280 Speaker 1: the latest stark warning about global warming, says weather related 642 00:35:32,320 --> 00:35:35,840 Speaker 1: disasters have increased fivefold over the last fifty years and 643 00:35:35,920 --> 00:35:39,080 Speaker 1: are killing a hundred fifteen per day on average, and 644 00:35:39,200 --> 00:35:42,480 Speaker 1: the fallout is poised to worsen. That's a Bloomberg and 645 00:35:42,560 --> 00:35:45,560 Speaker 1: j I p Stem report. Nathan, all right, Karen, thank you. 646 00:35:45,719 --> 00:35:48,480 Speaker 1: We are live from the Bloomberg Interactive Brokers studios where 647 00:35:48,480 --> 00:35:50,480 Speaker 1: it's just about six fifty one on Wall Street time 648 00:35:50,560 --> 00:35:52,880 Speaker 1: now to check what's going on in BC. Some of 649 00:35:52,920 --> 00:35:55,520 Speaker 1: the top stories in our nation's capital include President Biden 650 00:35:55,600 --> 00:35:58,760 Speaker 1: sank he's not worried about inflation after hotter than expected 651 00:35:58,800 --> 00:36:02,360 Speaker 1: consumer prices for on, the White House considering an emergency 652 00:36:02,440 --> 00:36:05,640 Speaker 1: decree in case of a railroad strike, the Justice Department 653 00:36:05,719 --> 00:36:09,080 Speaker 1: saying former President Trump is undercutting himself and his Mara 654 00:36:09,200 --> 00:36:12,759 Speaker 1: Lago secrets argument, and the Senate to wrestle with a 655 00:36:12,800 --> 00:36:16,840 Speaker 1: bill that would boost US ties with Taiwan, springing Bloomberg 656 00:36:16,880 --> 00:36:21,240 Speaker 1: government reporter Emily Wilkins joining us from the Nation's Capital. Emily. 657 00:36:21,440 --> 00:36:24,799 Speaker 1: So the data didn't go President Biden's way, but when 658 00:36:24,880 --> 00:36:27,239 Speaker 1: it comes to this economy, it sounds like he's at 659 00:36:27,320 --> 00:36:31,879 Speaker 1: least trying to stay on message. Yeah, Nathan, the White 660 00:36:31,920 --> 00:36:36,360 Speaker 1: House central the celebration for the Inflation Reduction Act. Remember 661 00:36:36,400 --> 00:36:39,880 Speaker 1: that was that healthcare, tax and climate bill that passed 662 00:36:40,200 --> 00:36:43,640 Speaker 1: UH back way back in August. But now the lawmakers 663 00:36:43,640 --> 00:36:45,120 Speaker 1: are back in town, the White House has got a 664 00:36:45,160 --> 00:36:47,600 Speaker 1: hold a celebration really say hey, look we did it. 665 00:36:48,080 --> 00:36:50,080 Speaker 1: But of course, on the same day that they're passing 666 00:36:50,120 --> 00:36:52,879 Speaker 1: a bill with the name the Inflation Reduction Act UH, 667 00:36:53,160 --> 00:36:56,720 Speaker 1: inflation for the previous month was reported to be higher 668 00:36:56,960 --> 00:37:01,439 Speaker 1: than it was expected. Consumer price is increased by point 669 00:37:01,480 --> 00:37:05,520 Speaker 1: one percent, for inflation increased by point six percent um. 670 00:37:05,800 --> 00:37:09,120 Speaker 1: I mean. Biden did note that these aren't exactly giant numbers. 671 00:37:09,200 --> 00:37:10,919 Speaker 1: He said he wasn't worried it was only a tenth 672 00:37:10,960 --> 00:37:14,040 Speaker 1: of a percent. But if that inflation continues to be 673 00:37:14,520 --> 00:37:17,719 Speaker 1: the issue that is really defining these mid terms. There 674 00:37:17,719 --> 00:37:20,040 Speaker 1: are a couple other ones, but if you talk with folks, 675 00:37:20,320 --> 00:37:23,160 Speaker 1: the economy just continually comes up as a big thing 676 00:37:23,239 --> 00:37:26,200 Speaker 1: that they're concerned about. And this is really showing that 677 00:37:26,320 --> 00:37:28,719 Speaker 1: for Democrats, it's not like inflation is suddenly going to 678 00:37:28,800 --> 00:37:31,840 Speaker 1: go down ahead of November. They're probably going to have 679 00:37:31,920 --> 00:37:35,839 Speaker 1: to deal with high inflation as they go into the election. Uh. 680 00:37:35,920 --> 00:37:39,560 Speaker 1: And even though they tried to name this bill inflation reduction, 681 00:37:39,640 --> 00:37:42,520 Speaker 1: this isn't something that Americans are seen. And even if 682 00:37:42,560 --> 00:37:45,160 Speaker 1: this bill does reduce this inflation, it's not going to 683 00:37:45,560 --> 00:37:48,719 Speaker 1: happen quickly within the next few weeks. And now we're 684 00:37:48,800 --> 00:37:52,759 Speaker 1: seeing this threat of a nationwide railroad strike, causing the 685 00:37:52,880 --> 00:37:57,240 Speaker 1: potential if it happens to add to price pressures even further. 686 00:37:57,480 --> 00:38:00,919 Speaker 1: What's the White House doing about that? So the White 687 00:38:00,960 --> 00:38:03,400 Speaker 1: House is beginning to prepare for a potential use of 688 00:38:03,480 --> 00:38:07,680 Speaker 1: emergency powers to ensure that critical materials that these railways 689 00:38:07,800 --> 00:38:11,680 Speaker 1: usually transport can still be delivered even if there's a strike. 690 00:38:12,000 --> 00:38:14,880 Speaker 1: They think things like chlorine that are neither for wastewater 691 00:38:15,040 --> 00:38:17,320 Speaker 1: treatment plants. It's something that if they don't get it, 692 00:38:17,440 --> 00:38:19,160 Speaker 1: they're not going to be able to put out water 693 00:38:19,280 --> 00:38:21,360 Speaker 1: that we can all drink. So there's a lot of 694 00:38:21,440 --> 00:38:25,040 Speaker 1: really critical materials here. Also, this goes back to the 695 00:38:25,120 --> 00:38:28,440 Speaker 1: inflation thing. If certain materials can't get out, can't get delivered. 696 00:38:28,560 --> 00:38:31,280 Speaker 1: That's going to lower the supply and jack up prices. 697 00:38:31,719 --> 00:38:34,920 Speaker 1: It's really something the White House needs to avoid. They 698 00:38:35,000 --> 00:38:37,640 Speaker 1: have until Friday to come up with an agreement for 699 00:38:37,800 --> 00:38:42,160 Speaker 1: these unions, unless Congress wants to bump that deadline back. Um, 700 00:38:42,400 --> 00:38:44,920 Speaker 1: but at this point, it's both the White House as 701 00:38:45,000 --> 00:38:48,080 Speaker 1: well as UH Congress is trying to prepare for a 702 00:38:48,160 --> 00:38:52,080 Speaker 1: potential strike for what that would mean. UM, it's fairly 703 00:38:52,200 --> 00:38:55,400 Speaker 1: really a big story right now. UH, as far as 704 00:38:55,480 --> 00:38:58,880 Speaker 1: what the implications could be if we hit Friday and 705 00:38:59,040 --> 00:39:02,320 Speaker 1: these two major unions still haven't reached a deal, and 706 00:39:02,400 --> 00:39:05,120 Speaker 1: all this is coming, of course, just less than two 707 00:39:05,239 --> 00:39:08,279 Speaker 1: months before a mid term election. What's the level of 708 00:39:08,400 --> 00:39:12,440 Speaker 1: concern at the White House about whether Democrats are going 709 00:39:12,480 --> 00:39:15,200 Speaker 1: to be able to try to stem any losses against 710 00:39:15,239 --> 00:39:18,120 Speaker 1: Republicans and the control or the fight for control of Congress. 711 00:39:19,239 --> 00:39:22,319 Speaker 1: I mean, certainly, if this robot strike happens, if these 712 00:39:22,640 --> 00:39:24,520 Speaker 1: materials aren't able to get out there, this is going 713 00:39:24,600 --> 00:39:27,440 Speaker 1: to impact Biden and this is going to impact Democrats. 714 00:39:27,480 --> 00:39:29,719 Speaker 1: I mean Biden came into the White House say that 715 00:39:29,840 --> 00:39:32,880 Speaker 1: he was a dealmaker. He is now meaning personally involved 716 00:39:33,040 --> 00:39:36,800 Speaker 1: in these negotiations. A lot really rests on him the 717 00:39:36,880 --> 00:39:39,120 Speaker 1: kind of show that that he can avert this potential 718 00:39:39,280 --> 00:39:42,760 Speaker 1: pricess um. You know, the mid terms, Democrats have gotten 719 00:39:42,760 --> 00:39:44,879 Speaker 1: a little bit of momentum that that that they didn't 720 00:39:44,920 --> 00:39:47,879 Speaker 1: have before, but that could easily be lost if something 721 00:39:48,000 --> 00:39:50,760 Speaker 1: like this occurred. Um, and we see some wide ranging 722 00:39:50,920 --> 00:39:55,080 Speaker 1: impacts on the economy up just because again they could. 723 00:39:55,160 --> 00:39:58,040 Speaker 1: Things are getting delivered when they need to be. All right, 724 00:39:58,080 --> 00:39:59,960 Speaker 1: let's turn to some of our other stories and watched 725 00:40:00,000 --> 00:40:02,400 Speaker 1: in DC. We got this new court filing in the 726 00:40:02,880 --> 00:40:06,960 Speaker 1: Moral Lago investigation, the Justice Department looking into that classified 727 00:40:07,040 --> 00:40:10,879 Speaker 1: material sees from former President Trump's home. What's the latest. Yeah, 728 00:40:10,960 --> 00:40:13,280 Speaker 1: so a lot of back and forth here, but basically, 729 00:40:13,360 --> 00:40:16,160 Speaker 1: what the Justice Department is trying to do is they're 730 00:40:16,200 --> 00:40:19,000 Speaker 1: trying to evince a federal judge to exclude about a 731 00:40:19,080 --> 00:40:23,400 Speaker 1: hundred classified documents from her order halting the Justice Department 732 00:40:23,719 --> 00:40:27,440 Speaker 1: from using the thousands of records, uh, while a special 733 00:40:27,520 --> 00:40:31,439 Speaker 1: Master reviews them. Remember that special master is that third party. 734 00:40:31,480 --> 00:40:35,040 Speaker 1: They're going to review the document with the intention of 735 00:40:35,280 --> 00:40:39,040 Speaker 1: making sure that that all of them do fit what 736 00:40:39,440 --> 00:40:42,160 Speaker 1: the Department of Justice is allowed to have um that 737 00:40:42,560 --> 00:40:45,080 Speaker 1: and that none of them are personal records as Trump 738 00:40:45,120 --> 00:40:48,279 Speaker 1: has claimed. The Department of Justice also kind of tried 739 00:40:48,280 --> 00:40:50,040 Speaker 1: to point out what they see as a bit of 740 00:40:50,080 --> 00:40:54,520 Speaker 1: a flaw in former President Trump's argument about these documents. 741 00:40:54,800 --> 00:40:59,000 Speaker 1: They're saying that if he did declassify them um as 742 00:40:59,080 --> 00:41:02,760 Speaker 1: his personal break hers, then he can't assert executive privilege 743 00:41:02,960 --> 00:41:05,719 Speaker 1: over those records um and the kind of saying that, 744 00:41:05,800 --> 00:41:08,680 Speaker 1: you know, this, this dual argument that that Trump is 745 00:41:08,800 --> 00:41:12,920 Speaker 1: making really doesn't hold water. Again, this is something that 746 00:41:13,080 --> 00:41:14,800 Speaker 1: works seen a lot of back and forth in the 747 00:41:14,920 --> 00:41:17,680 Speaker 1: courts over We saw it over the special Master. Now 748 00:41:17,760 --> 00:41:20,600 Speaker 1: we're seeing what over this special Master is allowed to review. 749 00:41:21,080 --> 00:41:23,400 Speaker 1: Of course, the Justice Department has said that there are 750 00:41:23,400 --> 00:41:26,160 Speaker 1: a lot of security concerns on the line, including national 751 00:41:26,239 --> 00:41:30,520 Speaker 1: security if they cannot review these documents assess what kind 752 00:41:30,560 --> 00:41:32,799 Speaker 1: of information was in mar A Lago and who might 753 00:41:32,840 --> 00:41:36,359 Speaker 1: have had access to that information. Just thirty seconds left here, Emily, 754 00:41:36,440 --> 00:41:38,719 Speaker 1: But tell us more about this Senate bill coming up 755 00:41:38,760 --> 00:41:41,920 Speaker 1: on Taiwan today. Yeah, So this bill is going to 756 00:41:42,000 --> 00:41:44,480 Speaker 1: be having a mark up today in the Foreign Affairs Panel, 757 00:41:44,560 --> 00:41:46,839 Speaker 1: and among other things, would give Taipe a four point 758 00:41:46,880 --> 00:41:49,719 Speaker 1: five billion for defense over four years as well as 759 00:41:49,760 --> 00:41:53,680 Speaker 1: recognized it's democratically elected government as a legitimate representative of 760 00:41:53,719 --> 00:41:56,920 Speaker 1: the people of Taiwan. Uh. This is just continuing what 761 00:41:57,040 --> 00:42:00,440 Speaker 1: we've already seen lawmakers at being very support of of 762 00:42:00,560 --> 00:42:03,960 Speaker 1: Taiwan for both parties, even at the risk of of 763 00:42:04,200 --> 00:42:07,480 Speaker 1: ingreen China and the government in Beijing. Thanks Emily good 764 00:42:07,520 --> 00:42:11,000 Speaker 1: having gone with us. Bloomberg Government reporter Emily Wilkins read 765 00:42:11,040 --> 00:42:14,040 Speaker 1: war at Bloomberg dot com or on the Bloomberg terminal, 766 00:42:14,160 --> 00:42:17,080 Speaker 1: and follow all the latest on Bloomberg Radio in Washington, 767 00:42:17,200 --> 00:42:21,440 Speaker 1: Bloomberg and one oh five point seven FM HD two. 768 00:42:22,040 --> 00:42:24,799 Speaker 1: Right now, SMP futures are hired by seventeen points down, 769 00:42:24,840 --> 00:42:28,480 Speaker 1: futures up a hundred six, Nasdaq futures up sixty one points. 770 00:42:28,560 --> 00:42:31,640 Speaker 1: The tenure Treasury is down seven thirty seconds. The yield 771 00:42:31,680 --> 00:42:34,839 Speaker 1: three point three percent, yield on the two year three 772 00:42:34,960 --> 00:42:39,239 Speaker 1: point seven seven percent. Bloomberg Surveillance is straight ahead with 773 00:42:39,320 --> 00:42:42,960 Speaker 1: Tom Keene, Jonathan Farroll, and Lisa Abramowitz for Karen Moscow. 774 00:42:43,160 --> 00:42:46,640 Speaker 1: I'm Nathan Hagar, and this is Bloomberg