Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg
Speaker 1: day Break for Friday, September two two. Coming up this hour,
Speaker 1: global bond slump into a bear market. Investors brace for
Speaker 1: the August jobs report. President Biden takes a McDonald Trump
Speaker 1: and his supporters in a primetime speech, and we'll tell
Speaker 1: you which chipmaker is bucking the trend with a strong forecast.
Speaker 1: A former New York police officer receives the longest sentence
Speaker 1: yet in the January six Capital of Riot Plus. The
Speaker 1: CDC signs off on new COVID booster shops. I'm Michael Blah.
Speaker 1: What we're ahead, I'm John stash Howard. Sports. The Mets
Speaker 1: meet the Dodgers, the Yankees to get a big series
Speaker 1: tonight at Tampa Bay. And Serena Williams play tonight at
Speaker 1: the US Open. That's all's trading ahead on Bloomberg day
Speaker 1: Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties,
Speaker 1: San Francisco, Sirius XM one nine Team and around the
Speaker 1: world Old on Bloomberg Radio dot Com and Bloomberg Business Ship.
Speaker 1: Good Friday morning. I'm Any Morris and I'm Karen Moscow.
Speaker 1: US futures are little change this morning, where coming up
Speaker 1: to five o one on Wall Street, and we check
Speaker 1: the markets every fifteen minutes throughout the trading day on
Speaker 1: Bloomberg and again futures little change. The ten year Treasury
Speaker 1: that will changed as well. The yield is at three
Speaker 1: point to five percent, and they yield on the two
Speaker 1: year three point five zero percent. Nine X screwed oil
Speaker 1: is up two point nine percent or two dollars fifty
Speaker 1: five cents at eighty nine dollars sixteen cents of barrel
Speaker 1: Bitcoin this morning at twenty thousand, ninety dollars. Amy, Well, Karen,
Speaker 1: We begin with some stability in the equity markets this
Speaker 1: morning as we close out the trading week. D S
Speaker 1: and P five hundred in Dow Jones Industrial Average both
Speaker 1: snapped four day losing streaks yesterday. Still, we are in
Speaker 1: a traditionally tough period for stocks. The SNP has average
Speaker 1: declines of six and seven tenths of a percent for
Speaker 1: August and September over the past five years. Liz Young
Speaker 1: is head of investment Strategy at Sophie going into the
Speaker 1: end of August, and now we've started September. Next week,
Speaker 1: everybody sort of comes back into the fold, and that's
Speaker 1: when I would expect volatility to kick back up again.
Speaker 1: We're certainly not out of the woods. I don't think
Speaker 1: that we're going to get out of a trading range
Speaker 1: for a while and until we at least hear that
Speaker 1: inflation has cooled so fis Liz Young puts the odds
Speaker 1: at fifty fifty four recession next year. Meantime, maybe global
Speaker 1: bonds have slumped into their first bear market in a generation.
Speaker 1: The Bloomberg Global Aggregate Total Return Index of government and
Speaker 1: investment grade corporate bonds has following more than twenty first
Speaker 1: cent from its peak last year. Officials from the US
Speaker 1: to Europe have hammered home the importance of higher interest rates,
Speaker 1: building on a hawkish message from Fed share J. Powell
Speaker 1: at the Jackson Hole Symposium last week. The direction of
Speaker 1: today's bonded equity markets may be determined in about three
Speaker 1: and a half hours. That's when we get the US
Speaker 1: jobs report for August that kind mists forecast a gain
Speaker 1: of two thousand jobs. We get a preview from Bloomberg's
Speaker 1: Michael Thankee, the jobs data are something of a one
Speaker 1: way bet for Wall Street. If the number is surprisingly high,
Speaker 1: as it was last month, it probably locks in a
Speaker 1: FED rate hike of seventy five basis points at the
Speaker 1: next meeting. A weaker than expected report won't necessarily guarantee
Speaker 1: only a fifty basis point move. A big increase in
Speaker 1: consumer prices. Data yet to come could change views. After
Speaker 1: financial conditions loosened in August. Payrolls may give a little
Speaker 1: more clarity on how much impact the FEDS tightening has
Speaker 1: already had watched the changes in the unemployment and participation
Speaker 1: rates and in the number of people who lost their
Speaker 1: jobs during the month. Michael McKey, Bloomberg Daybreak. All right,
Speaker 1: Thank you, Mike, and please stick with Bloomberg Radio and
Speaker 1: Television all morning for full coverage of the August jobs report,
Speaker 1: and join us at Wall Street time. We'll speak live
Speaker 1: with Labor Secretary Marty walah Well. Investors look for US
Speaker 1: slowdown in jobs amy Inflation is still front and center
Speaker 1: for the At Atlanta, Fan president Raphael Bostage says the
Speaker 1: US Central Banks campaign to cool inflation is still not complete.
Speaker 1: He told students to Georgia Tech. The current pace of
Speaker 1: inflation was a long way from the fed stupor sent goal.
Speaker 1: Another major story we're following this morning, President Biden taking
Speaker 1: aim at Donald Trump and so called mega Republicans. Last night,
Speaker 1: in a primetime address, the President urged Americans to reject
Speaker 1: any Trump backed candidate in the November midterm elections. Too
Speaker 1: much of what's happening in our country today is not normal.
Speaker 1: Donald Trump and the marga Republicans representative extremism that threatens
Speaker 1: the very foundations of our republic. As President Biden takes
Speaker 1: him on Donald Trump's ideology, House Minority Leader Kevin McCarthy
Speaker 1: is calling on Biden to apologize for invoking fascism when
Speaker 1: describing the former president. In the past two years, Joe
Speaker 1: Biden has launched an assault on the soul of America.
Speaker 1: McCarthy made his remarks before President Biden's speech. So what's
Speaker 1: the potential impact from President Biden's primetime speech? Amy While
Speaker 1: Bloomberg Politics contributor Rick Davis as the President is trying
Speaker 1: to create a wedge between mainstream Republicans and those who
Speaker 1: embrace them make America Great Again ideology, This kind of
Speaker 1: you know, sort of setting up the wedge, you know, independence,
Speaker 1: don't be drawn into that Republican party. These are run
Speaker 1: by MAGA And what he's trying to do is probably
Speaker 1: go that he got in a general election two years ago,
Speaker 1: and he needs that to show up on the midterms.
Speaker 1: And Bloomberg Politics contributor Rick Davis said President Biden traditionally
Speaker 1: tends to avoid wedge politics, as seen by his partisan
Speaker 1: legislative accomplishments over the past few months. Now, let's turn
Speaker 1: from politics to corporate America, where we have a couple
Speaker 1: of changes in the c suite. Starbucks has named Record
Speaker 1: ben Keys their chief executive Lacksman Narrasment to be its
Speaker 1: next CEO. Wisman is a veteran of the consumer industry,
Speaker 1: and he'll joins Starbucks next month while longtime leader Howard
Speaker 1: Schult stays in charge. Narisman will fully take over in April. Meantime,
Speaker 1: Shall is shortlisted candidates to succeed CEO Ben van der Buren.
Speaker 1: He is preparing to step down in three after almost
Speaker 1: a decade at the oil giant. Reuter says. Candidates include
Speaker 1: While Sawan, the company's head of integrated Gas and Renewables,
Speaker 1: as well as hibert v g v No, the head
Speaker 1: of downstream refining operations. And now let's check out some
Speaker 1: stocks on the move this morning. Shares Broadcom or up
Speaker 1: more than two percent. The chip maker gave a strong
Speaker 1: sales forecast for the current quarter. The outlook suggests Broadcom
Speaker 1: is sidestepping a broader decline and ship demand at least
Speaker 1: for now. Other suppliers, including in video, Intel and Micron Technology,
Speaker 1: have predicted a steep sales slowdown, and shares a Lulu
Speaker 1: Lemon are up almost ten percent, the maker of athletic attire,
Speaker 1: raising its full year outlook. The company's seeks to double
Speaker 1: its sales by six by selling more goods to men
Speaker 1: and expanding Lulu Lemon's footprint abroad. Futures this morning they
Speaker 1: are little change, Imax, screwed oil is on the rise,
Speaker 1: and straight ahead, we have your latest local headlines, plus
Speaker 1: a check of sports, and this is Bloomberg. All right,
Speaker 1: thank you, Karen. It's five or seven on Wall Street.
Speaker 1: Let's bring in Michael barn Now with more on what
Speaker 1: else is going on in New York and around the world.
Speaker 1: Good morning, Michael, Good morning Amy. A stiff sentence was
Speaker 1: handed down for a former New York City police officer
Speaker 1: convicted of assaulting a police officer during the January sixth
Speaker 1: capital attack at the during the riot, Thomas Webster faces
Speaker 1: ten years in prison for brutally assaulting a law enforcement
Speaker 1: officer on January six It is the longest prison sentence
Speaker 1: to date for a defendant during the Capitol riot. Webster
Speaker 1: sobbed in court, saying he wishes he never had gone
Speaker 1: to the Capitol. That day, lawyers for the Justice Department
Speaker 1: and former President Trump faced off in the Florida court
Speaker 1: room over whether there should be a special master assigned
Speaker 1: to review top secret documents the FBI sas last month
Speaker 1: at Trump's Mara Lago estate. The judge did not issue
Speaker 1: an immediate ruling. You and inspectors have braved the cross
Speaker 1: fire of Ukraine and Russian forces to get inside Europe's
Speaker 1: largest nuclear plant. The long away to visit to the
Speaker 1: Russian occupied facility comes as one of its reactors was
Speaker 1: shut down temporarily due to the fighting. Raphael Grocy is
Speaker 1: leading the International Atomic Energy Agency team inspecting the plant.
Speaker 1: I have just completed a first tour of the key
Speaker 1: areas that we wanted to see in this first approach
Speaker 1: to the whole facility. The I A E. A. S.
Speaker 1: Raphael Grocy COVID booster shots that are the most common
Speaker 1: new variants of the virus should become available in the
Speaker 1: US within days. The Center There's were Disease Control and
Speaker 1: Prevention signed off on the rollout of updated vaccines. Dr
Speaker 1: David AGAs these are the first time has been a
Speaker 1: change to the COVID nineteen vaccines since they were launched
Speaker 1: in December of twenty and the hope is this booster,
Speaker 1: which includes the B A four and B A five
Speaker 1: spike protein as well as the original Ulhunt spike protein,
Speaker 1: will cause a broader immune response to enable protection from
Speaker 1: the current variants in the United States as well as
Speaker 1: future variants. Dr Vegas spoke to CBS the boosters will
Speaker 1: will be made by Fiser and rival Molderna. A man
Speaker 1: was arrested in Argentina after pointing a gun at Vice
Speaker 1: President Christina Fernandez de Kirchener as she greeted supporters outside
Speaker 1: of residents and Buenos Sary's. The incident comes at a
Speaker 1: time in which Argentina is bitterly polarized after years of
Speaker 1: economic crisis and political in fighting global news twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than twenty seven hundred journalists and analysts, are
Speaker 1: more than a hundred twenty countries. Michael Barr and this
Speaker 1: is Bloomberg. Amy, all right, thank you, Michael, five O
Speaker 1: nine on Wall Street Time. Now for the Bloomberg Sports Update.
Speaker 1: Here's John stash Our. Thanks Amy. A trade of Donovan
Speaker 1: Mitchell to the Knicks made perfect sense. The Utah Jazz
Speaker 1: were looking to deal their star guard and the Knicks
Speaker 1: need a big time player. Mitchell's and New Yorker's father
Speaker 1: worked many years for the Mets. Two teams did a
Speaker 1: lot of talking. But when the Jazz traded Mitchell, he
Speaker 1: went to Cleveland. The Calves gave up Colin Sexton Lauri
Speaker 1: Market in three first round draft picks. Good news for
Speaker 1: the Mets. Not only there come from behind five to
Speaker 1: three win over the MLB leading Dodgers to win the series.
Speaker 1: Chris bassonketting the twelve win Mets, winning with two runs
Speaker 1: of the sixth inning, two more in the seventh. The
Speaker 1: Mets next sixteen games, twenty one of their next twenty
Speaker 1: four or all against sub five hundred teams. That starts
Speaker 1: tonight at City Field against Washington and that should help
Speaker 1: them hold off Atlanta in the NL East of Brave
Speaker 1: Skill three games behind. They shut out Colorado three nothing
Speaker 1: for Atlanta rookie Spencer Strider eight scoreless innings, lad On
Speaker 1: two hits, no walks, and he struck out sixteen. A
Speaker 1: month ago, the Yankees led Tampa Bay by fifteen and
Speaker 1: a half games. Their lead is now six, but they
Speaker 1: get swept this weekend. It is down to three. Jam
Speaker 1: leeno Herman faces the race tonight for the third night
Speaker 1: this week. It is Serena Williams Night at the US Open.
Speaker 1: Serena tonight taking on Alja tom Janovitch from Croatia. She's
Speaker 1: ranked forty eight. There'll be another huge pro Serena crowd
Speaker 1: at Arthur S Stadium. Serena and Venus Williams lost their
Speaker 1: first round doubles match last night. Also last night, Raphaela
Speaker 1: daw one in four sets. John stash Award Bloomberg Sports, AM,
Speaker 1: all right, thank you, John. Checking the market's now s
Speaker 1: and P futures up to Dell futures up seven NASDAK
Speaker 1: futures of four and a half ten year Treasury unchanged
Speaker 1: the yield at three point to five the two year
Speaker 1: heels at three point four nine percent. Much more still
Speaker 1: to come. On this Friday morning on Bloomberg Daybreak, This
Speaker 1: is Bloomberg Bloomberg eleven three oh weather today, abundant sunshine
Speaker 1: to start your long holiday weekend, going up to eighty
Speaker 1: degrees eight five tomorrow nine degrees on Sunday, Labor Day,
Speaker 1: a cloudy one flowing up to eight markets, headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business Outland at Bloomberg Quick Tape. He's a
Speaker 1: Bloomberg Business Flash and I'm Karen Onscow and US dont
Speaker 1: index futures are little change this morning ahead of a
Speaker 1: key US job support that could stir expectations for another
Speaker 1: sharp Federal Reserve interest rate hike. We check the markets
Speaker 1: every fifteen minutes throughout the trading day on Bloomberg Right now,
Speaker 1: SMP down, nastack futures all little change. The decks in
Speaker 1: Germany is up one and a third percent. Ten your
Speaker 1: trade she read down one thirty second you have three
Speaker 1: point to five percent. They yield on the two year
Speaker 1: three point four nine percent. Nimex screwed oil is up
Speaker 1: two point four percent, up two dollars five cents at
Speaker 1: eighty eight dollars seventy cents a barrel. Comics gold is
Speaker 1: up four tenths per cent, or six dollars forty cents
Speaker 1: at seventeen fifteen seventy an ounce. The euro is at
Speaker 1: point eight against the dollar, British pound one point one
Speaker 1: five five one, and the yen at one forty point
Speaker 1: three three bitcoin. And this morning is Smith's Li'll change
Speaker 1: at twenty thousand, eighty dollars in the August jobs report
Speaker 1: at an eight thirty Wall Street time, factory orders and
Speaker 1: durable goods orders around of ten. That's a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Michael, good morning, Good morning Karen. President
Speaker 1: Joe Biden stepped up attacks on former President Trump and
Speaker 1: GOP lawmakers during his prime time speech by mccues Trump
Speaker 1: and his supporters of endangering US democracy. The US called
Speaker 1: around response to the latest effort to revive the nuclear
Speaker 1: accord not construct active, raising questions about whether the two
Speaker 1: sides can reach a deal that would free more oil
Speaker 1: for Global Markets. At the US Open, Serena and Venus
Speaker 1: Williams were eliminated after losing their doubles match. Serena Williams
Speaker 1: will play tonight in the third round of singles. In baseball,
Speaker 1: the Mets, Red Sox and Orioles one the Nationals. BTA
Speaker 1: seven five Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quick Take, powered by more than
Speaker 1: twenty journalists analysts more than a hundred twenty countries. I'm
Speaker 1: Michael bar This is Bloomberg Gaming. All right, Thank you, Michael.
Speaker 1: It is five nineteen on Wall Street. We're live from
Speaker 1: the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. We're
Speaker 1: joined now by senior economist Jennifer Lee at BEMO Capital Markets. Jennifer,
Speaker 1: thank you for taking the time with us on this
Speaker 1: Friday morning. As you know, we're waiting for this critical
Speaker 1: jobs report. It's just a few hours from now. How
Speaker 1: much is writing on this report? Oh, good morning? UM,
Speaker 1: you know what it's Uh, it's always a market moving report, clearly,
Speaker 1: but in terms of for the Fed, I think it
Speaker 1: holds second place to what is probably more important for
Speaker 1: the Federal Reserve and that will be the September CPI report.
Speaker 1: Having said that, you know, obviously jobs are are are
Speaker 1: super important just for the health of the overall US
Speaker 1: economy and for the consumer. What are you going to
Speaker 1: be looking for today? So obviously the headline we're actually
Speaker 1: a bit below consensus at two UM. I'm actually very
Speaker 1: interested in what happens to the revisions um um. Sometimes
Speaker 1: you know, I think we always have missed what happens
Speaker 1: behind the scenes. But that's studying five increase in July, UM,
Speaker 1: whatever of the not that is going to hold. And
Speaker 1: you know the over three thousand jobs for a few
Speaker 1: months before that as well, So revisions for sure, the
Speaker 1: job was great. Our hourly earnings as a measure of
Speaker 1: inflation would be good news if it's if it's pretty solid,
Speaker 1: because again good news for consumers, for for household spending,
Speaker 1: but of course bad news for the Fed because it
Speaker 1: um suggest that they would have to tighten a bit
Speaker 1: further um and maybe a bit of a bit longer
Speaker 1: as well, depending on how much of the increase will be.
Speaker 1: I've heard you talk about that before. A strong number
Speaker 1: may be good for the economy, Uh, the FED would
Speaker 1: have to keep tightening, though whereas a weak number maybe
Speaker 1: not so delightful. However, the FED maybe not having to
Speaker 1: be so aggressive. So then would the bottom line be
Speaker 1: maybe higher employment not so bad. Higher employment is always
Speaker 1: good for the macro economy. But you know, these days
Speaker 1: it's it's so it's so warped off posts that you know,
Speaker 1: we're you know, we're we're looking for almost hoping for
Speaker 1: us someone. I don't know if I can say that,
Speaker 1: but for a weaker figure, just to suggest that the
Speaker 1: FED will can kind of breathe a little bit easier
Speaker 1: and have a bit more breathing room. But of course,
Speaker 1: you know, nobody wants to see, uh like a very
Speaker 1: negative jobs report. So something you know, almost goldilocks is
Speaker 1: you know something you know, like I said, two or
Speaker 1: fifty thous and you know, for our call is is
Speaker 1: still a strong number, but you know it wouldn't be head.
Speaker 1: It is enough for the FED to, you know, for
Speaker 1: people to start thinking about, you know, anything bigger than right.
Speaker 1: That's a fine line to have to walk. But the
Speaker 1: FED share himself had said that the labor market was imbalanced.
Speaker 1: That's how he had described it, imbalanced. Now people do
Speaker 1: seem to be waiting on the sidelines. But the jobs
Speaker 1: are out there. I mean, we know that, But when
Speaker 1: will things start to loosen up in terms of the
Speaker 1: ventures of monetary policy or in terms of the job market.
Speaker 1: I think for the job market, and once people start, um,
Speaker 1: I mean, there's still eleven million jobs out there, you know,
Speaker 1: waiting for for for takers. It is, it's crazy, and
Speaker 1: you know it's almost um um double the number of
Speaker 1: unemployed Americans, and it's uh, you know, you just need
Speaker 1: to get those people back on, you know, off the sidelines,
Speaker 1: back into the into the job market. You know, people
Speaker 1: have retired early, for example, and you know they might
Speaker 1: have to be enticed, you know too, you know with
Speaker 1: you know, different types of curates to to be brought
Speaker 1: back in. And at some point, you know, you know,
Speaker 1: you can't stay off forever, and at some point you're
Speaker 1: gonna have to come in for what of a reason.
Speaker 1: But you know, once they'll start those jobs opening start declining,
Speaker 1: I think, you know, we'll probably be an indication that
Speaker 1: it's you know, that's not as tight as it used
Speaker 1: to be. Now. When we started this interview, you mentioned
Speaker 1: that even more important than today's jobs report is the
Speaker 1: CPI report coming out in September. Are you already looking
Speaker 1: ahead to September and that CPI report. We are, so
Speaker 1: you know, we're we're looking I mean, we're I don't
Speaker 1: think we're going to go back to that nine point
Speaker 1: one UM peak that we saw a couple of months ago.
Speaker 1: So the fact that we're just pulled away from that
Speaker 1: is is very encouraging news. At the same time, you know, um,
Speaker 1: I think inftation is going to remain elevated, like elevated
Speaker 1: enough so that the Fed will continue to raise rates
Speaker 1: over the course of the rest of So we're looking
Speaker 1: for you know, a fifty basis point hike uh in September,
Speaker 1: um the month after that, and then in December. But
Speaker 1: you know, there's if there's a risk it would be
Speaker 1: that day tighten a bit more. But again, it all
Speaker 1: it will probably settle on whatever happens to the August
Speaker 1: cp Alright, Senior economists Jennifer Lee at BEMO Capital Markets.
Speaker 1: Always a pleasure. Thank you for taking the time with
Speaker 1: us on this Friday morning, as we look ahead to
Speaker 1: the August jobs report that is coming out just a
Speaker 1: couple of hours from now. We're gonna keep you posted
Speaker 1: with those numbers still ahead on Bloomberg Daybreak, we'll be
Speaker 1: checking the markets and bring you the latest news in business,
Speaker 1: economics and finance. Let's do a quick day to check
Speaker 1: for U S and P futures UH down a quarter,
Speaker 1: Dow futures down to NASDAC futures down seven, and a
Speaker 1: quarter of the ten year treasury down one thirty second,
Speaker 1: the yield at three point to six percent, the two
Speaker 1: year yield at three point five percent. Much more still
Speaker 1: to come. On this Friday morning edition of Bloomberg Daybreak,
Speaker 1: We're gonna take a closer look at what President Biden
Speaker 1: said about former President Trump in his primetime speech last night,
Speaker 1: some of the reaction to that, and we'll continue to
Speaker 1: look ahead at today today's August jobs report. Much more
Speaker 1: still to come on Bloomberg Daybreaks with us. This is
Speaker 1: Bloomberg Bloomberg eleven three oh weather. Abundant sunshine today going
Speaker 1: up to eighty degrees, eighty five tomorrow for Sunday, sunshine
Speaker 1: going up to ninety and then eighty degrees on Labor
Speaker 1: Day with Cloudy's Guys, broadcasting live from the Bloomberg Interactive
Speaker 1: Broker Studio in New York. Bloomberg e Living Free on
Speaker 1: to Washington, d C, Bloomberg to Boston, Bloomberg one six
Speaker 1: one to San Francisco, Bloomberg M sixty to the country
Speaker 1: Sirius XM CHADO one nine team and around the globe
Speaker 1: the Bloomberg Business app and Bloomberg Radio dot Com. This
Speaker 1: is Bloomberg Daybreak. It's five thirty on Wall Street. Good
Speaker 1: Friday morning. I'm Any Morris and I'm Karen Most. Were
Speaker 1: just about four hours away from the open of US trading.
Speaker 1: Let's get you up to date on the news you
Speaker 1: need to know at this hour. We begin with some
Speaker 1: stability and equity markets to close the trading week. The
Speaker 1: SNP and DAB both snapping four day losing streaks yesterday.
Speaker 1: Still August in September are traditionally tough months for investors.
Speaker 1: Ther pandit is Global Market Strategist with JP Morgan Asset Management.
Speaker 1: We need to be really careful about how we're looking
Speaker 1: at stocks and very much looking at the bottoms up basis,
Speaker 1: being selective about earnings, being selective about valuations. There are
Speaker 1: still areas of froth in the market that we need
Speaker 1: to to see come down, but a lot of that
Speaker 1: has taken place already, so I do think we don't
Speaker 1: want to be overly defensive or overly cautious JP morgan'st
Speaker 1: Mirra Pandit says investors should be focusing on high quality companies. Meantime,
Speaker 1: global bonds have slumped into their first bear market in
Speaker 1: a generation. The Bloomberg Global Aggregate Total Return Index of
Speaker 1: Government and Investment GREG corporate bonds has fallen more than
Speaker 1: from its peak. The direction of today's bond and equity
Speaker 1: session may be determined by the August two jobs your
Speaker 1: or game even get the reading at eight thirty Wall
Speaker 1: Street time. Nila Richardson is a DPS Chief Economist. I'm
Speaker 1: looking at two hundred and ninety thousand jobs. The key
Speaker 1: numbers to watch within that report is the wage gains,
Speaker 1: because that's what's important to the Fed and whether or
Speaker 1: not the tightness of the labor market is actually leading
Speaker 1: to a wage price spiral that the FED has to
Speaker 1: take control. Hey, DPS Nila Richardson says, their softness in
Speaker 1: the labor market and some sectors, specifically those sensitive to
Speaker 1: interest rates. And please do stick with Bloomberg Radio and
Speaker 1: television all morning for full coverage of the August jobs
Speaker 1: report and join us at Wall Street time when we
Speaker 1: speak live with US Labor Secretary Marty Walsh. Let's turn
Speaker 1: to politics now, where President Biden is taking aim at
Speaker 1: Donald Trump and so called maga Republicans, and last night's
Speaker 1: primetime TV address, he urged Americans to fight Trump backed
Speaker 1: candidates in the November midterms and reject those who deny
Speaker 1: the election results. They're working right now as I speak,
Speaker 1: and state after state to give power to decide elections
Speaker 1: in America to partisans and cronies, and powering election to
Speaker 1: niers to undermine democracy itself. President Biden also said the
Speaker 1: majority of Republicans are not so called extreme mega Republicans.
Speaker 1: And a quick note Amy on corporate leadership this morning,
Speaker 1: Starbucks has named a luxman Nerrassment as its next CEO.
Speaker 1: Futures this morning are little Chaine straight. I had your
Speaker 1: latest local headlines, plus a check of sports, and this
Speaker 1: is Bloomberg. Thank you care, and it's by thirty three
Speaker 1: on Wall Street. Let's bring in Michael bar with more
Speaker 1: on what else is going on in New York and
Speaker 1: around the world. Thank you very much. Amy. A former
Speaker 1: New York City police officer, says he wishes he had
Speaker 1: never gone to the Capitol. On January six, a court
Speaker 1: gave Thomas Webster the longest prison sentence yet for that attack.
Speaker 1: Webster will spend the next ten years in prison, three
Speaker 1: years longer than the most severe punishment given any of
Speaker 1: the January six Capital rioters. Webster, sobbing and Chords, says
Speaker 1: that he was overwhelmed and frustrated by the false stolen
Speaker 1: election claims. A u N inspection team has arrived at
Speaker 1: Ukraine's nuclear power plant that is occupied by Russian troops.
Speaker 1: The team from the International Atomic Energy Agency reached the
Speaker 1: site amid fighting between Russian and Ukrainian forces that prompted
Speaker 1: the shutdown of one reactor. I a e H. Chief
Speaker 1: Raffael Grossy. Of course there's a lot more to do.
Speaker 1: My team is staying on and more importantly and most importantly,
Speaker 1: we are establishing a continued presence by the from the
Speaker 1: i e A i a e H Chief Raffael Groscy.
Speaker 1: The CDC endorsed updated COVID nineteen boosters that tweaked shots
Speaker 1: made by Fiser and rival Moderna offer Americans a chance
Speaker 1: to get the most up to date protection. Dr A.
Speaker 1: Lock Patel. We're not going to eradicate COVID night a team,
Speaker 1: but we have to do what we can to hedge
Speaker 1: our behavior against any potential infections. False surgeon also long
Speaker 1: COVID and all these other complications. Dr and Lock Patel
Speaker 1: spoke to ABC. The pandemic has taken a toll on
Speaker 1: public education. A new federal study shows declines in the
Speaker 1: reading and math scores of nine year olds compared to
Speaker 1: Dr Peggy Carr with the U. S Department of Education
Speaker 1: says access to instructors could be part of the problem.
Speaker 1: Lower income students and students who are already struggling academically
Speaker 1: said they were less likely to say they had access
Speaker 1: to teachers. This is not good. Dr Carr says the
Speaker 1: average math score fell seven points while the average reading
Speaker 1: score fell five points. To Level's last scene two decades ago.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred
Speaker 1: journalists and analysts in more than a hundred twenty countries.
Speaker 1: How Michael bar this is Bloomberg Gaming? All right? Thank you,
Speaker 1: Michael on Wall Street Time now for the Bloomberg Sports update.
Speaker 1: Here's John stash Our. Thanks Amy. When Knicks fans see
Speaker 1: their team play Cleveland, and they watched Donovan Mitchell playing
Speaker 1: for the Cavs. They're gonna wonder why he's not wearing
Speaker 1: a Knicks uniform instead. Mitchell's New York native wanted to
Speaker 1: come home. The Knicks clearly wanted to acquire him, but
Speaker 1: they kept filling Utah was asking for too much in return,
Speaker 1: and now he's off to the cast the Jazz instead
Speaker 1: taking the Cleveland offer. Colin Sexton Larry Market in first
Speaker 1: round draft picks in two thousand, twenty five, seven, and
Speaker 1: twenty nine in City Field, Mets facing Clayton kerschar just
Speaker 1: came off the injury list. They trailed at Dodgers three
Speaker 1: to one, but they got to the l a bullpen
Speaker 1: two runs in the sixth in ain't two more in
Speaker 1: the seventh, the five three win for Chris Passon's twelve victory.
Speaker 1: Let's take two of three from a Dodger team whose
Speaker 1: record is ninety and forty. Mets her home tonight for Washington.
Speaker 1: The Nationals are the MLB's worst team, and the let's
Speaker 1: play sixteen games in a row now versus sub five
Speaker 1: hundred teams. Atlanta still three games behind Frays. Rookie Spencer
Speaker 1: Strider shut out Colorado when eight only two hits and
Speaker 1: he struck out sixteen meserable month of August over for
Speaker 1: the Yankees, they went ten and eighteen. It was their
Speaker 1: worst months since nineteen and they're a last leaders, down
Speaker 1: to six over Tampa Bay and they visit the Rays
Speaker 1: this weekend. At the US Open, Raphael Nadal playing last night,
Speaker 1: his racquet hit his nose on his follow through. His
Speaker 1: nose was bloody and it all felt dizzy. He said
Speaker 1: later that had never happened before. He was able to
Speaker 1: finish the match and winning fours. That's the third seedon
Speaker 1: Spaniard Carlos Alcarez won his Master to the American Frances Tfo.
Speaker 1: On the women's side, Danielle Collins, Jesspergua Venus and Serena
Speaker 1: Williams lost their doubles match. Serena back at Arthur Ashe
Speaker 1: Stadium tonight. John Stashward Bloomberg Sports. All right, thank you, John,
Speaker 1: It's five thirty seven on Wall Street Time now for
Speaker 1: the Tri State Business Report. Here with that is Bloomberg's
Speaker 1: Ed Corey the Amazon Labor Union's victory at the Staten
Speaker 1: Island Warehouse should be upheld, according to the US Labor
Speaker 1: Board official. That deals a major setback to Amazon's efforts
Speaker 1: to have the vote over turned. A hearing officers says
Speaker 1: the company has not shown any objectionable conduct that affected
Speaker 1: the results of the election. Casanovia College, a small private
Speaker 1: school in New York, missed a bond payment to Thursday.
Speaker 1: The college entered into a forbearance agreement with a trustee.
Speaker 1: On the bond sale, the college sold twenty five million
Speaker 1: dollars worth of tax exempt and taxable bonds. In New
Speaker 1: Jersey's Economic Development Authority want to jump start the redevelopment
Speaker 1: of underused government buildings and other publicly owned properties. A
Speaker 1: new program offers grants worth up to fifty thou dollars,
Speaker 1: which are being offered to pay for things like feasibilities studies,
Speaker 1: market analysis, and other programs at your Bloomberg Try and
Speaker 1: State Business Report. I'm Ed Corey. All right, thank you, Ed.
Speaker 1: It is on Wall Street. Bloomberg Radio is on the
Speaker 1: air from San Francisco to New York, London to Hong Kong.
Speaker 1: Let's check in with our global news team for some
Speaker 1: of the top stories heard on our three hundred affiliate
Speaker 1: radio stations around the world. I'm Steve podas Gan on
Speaker 1: K and X in Los Angeles. We're talking about NBC
Speaker 1: Universal exploring massive television budget cuts. I'm Corney Donahuan k
Speaker 1: Fabian Omaha. The cost of growing food in the US
Speaker 1: is set to rise by the most ever this year.
Speaker 1: I'm Stephen Carroll on DAB Digital Radio and London. We've
Speaker 1: been reporting on hopes that gas flows will return through
Speaker 1: the North Stream pipeline from Russia on Saturday, and Lisa
Speaker 1: Matteo and on w b Z in Boston, I'll be
Speaker 1: reporting on Starbucks naming a new chief. I'm a Gory
Speaker 1: on w w J in Detroit. I'm reporting Myers launching
Speaker 1: a neo small format grocery store. And those are some
Speaker 1: of the stories our Bloomberg journalists and analysts are working
Speaker 1: on this morning around the world. It's five thirty nine
Speaker 1: on Wall Street. The following is an editorial from Bloomberg Opinion.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. Federal
Speaker 1: Reserve Chair Jerome Powell's speech at last week's Central Banking
Speaker 1: Conference in Wyoming was brief, but financial markets took notice.
Speaker 1: The SMP five hundred fell sharply as investors adjusted their
Speaker 1: thinking on how tough the Fed is willing to be
Speaker 1: to reign in inflation. Powell said that restoring price stability
Speaker 1: is the Fed's over arching focus, which investors saw as
Speaker 1: a new message. Yet the central Bank still has work
Speaker 1: to do and explaining itself intelligibly, particularly since last week's
Speaker 1: speech contained hints of a commitment to keeping rates high
Speaker 1: regardless of circumstances. The fact remains the Fed can do
Speaker 1: forward guidance or it can be nimble, but not both.
Speaker 1: With the economy so hard to read, it should not
Speaker 1: suggest that there's any set path high or low for
Speaker 1: interest rates. The editorial was written by the Bloomberg Editorial Board.
Speaker 1: For more Bloomberg opinion, please go to Bloomberg Calm Slash
Speaker 1: Opinion or ope I n Go on the Bloomberg terminal.
Speaker 1: This has been Bloomberg Opinion. Bloomberg Opinion editorials can be
Speaker 1: heard every weekday at this time, and terminal customers can
Speaker 1: read more at Opie I n go. What's more still
Speaker 1: to com stay with us on Bloomberg Daybreak. This is
Speaker 1: Bloomberg Bloomberg eleven three oh weather, abundant sunshine, We're going
Speaker 1: up to eighty degrees today, sunshine tomorrow going up to
Speaker 1: eighty five. It will be nithe on Sunday and Labor
Speaker 1: Day eighty degrees with clouds, markets, headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot Com, the
Speaker 1: Bloomberg Business Outland at Bloomberg Quick Takes a Bloomberg Business Flash,
Speaker 1: and I'm Karen Moscow. US Dock Index futures are little
Speaker 1: change this morning ahead of key US john data that
Speaker 1: could stir expectations for another sharp Federal Reserve interest rate hike.
Speaker 1: We checked the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg SNP and down futures about little change
Speaker 1: nowasday futures are now moving a bit lower, down about
Speaker 1: thirteen points. The decks in Germany is higher of one
Speaker 1: point three percent, The ten year Treasury down one thirty
Speaker 1: second yield three point to five percent. The yield on
Speaker 1: the two year three point four nine percent. Nine X
Speaker 1: Screwed oil is up two percent of a dollar seventy
Speaker 1: seven at eighty eight dollars thirty eight cents of barrel
Speaker 1: comes gold a half percent or seven dollar seventy cents
Speaker 1: is seventeen seventeen ten an ounce, the euro is at
Speaker 1: point against the dollar, British found one point one five
Speaker 1: six two, the yen one forty point three four and
Speaker 1: Bitcoin this morning is higher up three ten percent to
Speaker 1: twenty thousand, one thirty dollars and as of Bloomberg Business Flash. Now,
Speaker 1: here's Michael Barr with more on what's going on around
Speaker 1: the world. Michael Karen, thank you very much. Holding back
Speaker 1: little President Joe Biden is sounding an alarm about what
Speaker 1: he views as extremist threats to the names democracy from
Speaker 1: former President Trump and maga Republicans. In a primetime speech
Speaker 1: last night, Biden frame the November elections as part of
Speaker 1: an ongoing battle for the soul of the nation. A
Speaker 1: man was arrested after pointing a gun at Argentina's vice
Speaker 1: president and Buenos Aires. The man pulled the trigger, but
Speaker 1: the gun did not fire. In tennis, Serena and Venus
Speaker 1: Williams were eliminated after losing their doubles match in round
Speaker 1: one at the US Open last night. Serena Williams will
Speaker 1: play tonight in the third round of singles. In baseball,
Speaker 1: the Mets, Red Sox and Orioles one the Nationals Beat,
Speaker 1: the A seven five Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake Power about more
Speaker 1: than hundred journalists and analysts more than a hundred twenty countries.
Speaker 1: I'm Michael Barr, and this is Bloomberg Gaming. All right,
Speaker 1: Thank you, Michael. It is on Wall Street. We're live
Speaker 1: from the Bloomberg Interactive Brokers studios on Bloomberg Daybreak. President
Speaker 1: Biden's primetime addressed to the nation last night sounded in
Speaker 1: a law about what he viewsed as extremist threats to
Speaker 1: the nation's democracy. We're joined live now by Bloomberg Government
Speaker 1: reporter Jack Fitzpatrick and Jack. President Biden seems to want
Speaker 1: to make voters angry, for lack of a better word,
Speaker 1: over extremism, kind of take their frustration out at the
Speaker 1: ballot box. What struck you about the president's speech last night?
Speaker 1: You know, I I didn't go into it expecting any
Speaker 1: huge surprises because he had given a similar speech two
Speaker 1: days before, and I actually think that the main takeaway
Speaker 1: here is just the fact that the President is trying
Speaker 1: to use the most high profile, means possible prime time
Speaker 1: speech at the site of the signing of the Constitution
Speaker 1: in Philadelphia to emphasize this. But I will say the
Speaker 1: fact that he named former President Donald Trump early on
Speaker 1: directly in the speech, whereas President Biden previously had talked about,
Speaker 1: you know, mega Republicans extremists January six without invoking Trump's name,
Speaker 1: kind of trying to sidestep the idea that this is
Speaker 1: a personal battle. In this case, he almost immediately mentioned
Speaker 1: Donald Trump by name and said, that's the issue, That's
Speaker 1: who I'm talking about. I don't know if it's possible
Speaker 1: for him to, I guess metaphorically put Trump on the
Speaker 1: ballot box, but he wants to communicate to people, Uh,
Speaker 1: the centrality that Trump has in the Republican Party right now,
Speaker 1: the influence he has on their primaries. Uh, and the
Speaker 1: fact that the legal issues around Trump and his his
Speaker 1: role on January six are are very relevant still. And
Speaker 1: that stood out to me that he he almost immediately
Speaker 1: mentioned Trump by name. We heard some concerns about this
Speaker 1: possibly creating even deeper divisions within the country. Have you
Speaker 1: been hearing similar reactions, Well, that's the Republican reaction. Uh,
Speaker 1: you know, at this point, heading towards uh, the November
Speaker 1: mid terms, I don't think you're going to get anything
Speaker 1: but a pretty partisan response to a president's speech. And
Speaker 1: the president's speech was fairly partisan. He was criticizing an
Speaker 1: aspect of the Republican Party that he thinks is a
Speaker 1: threat to democracy, and that's his argument. So we can't
Speaker 1: exactly predict how will the general public respond to this,
Speaker 1: Will it deepen divisions or not? But clearly the president
Speaker 1: wanted to get the American people to focus more on
Speaker 1: the threat of political violence. Uh, the remind people of
Speaker 1: January six and uh And I guess it just flagged
Speaker 1: that concern that it didn't go away with the election. Jack,
Speaker 1: we only have about a minute here, but I wanted
Speaker 1: to ask if he's trying to widen the tent. He
Speaker 1: mentioned the difference between mainstream Republicans and MAGA Republicans. Is
Speaker 1: he trying to get them in the democratic tent if
Speaker 1: only for an election cycle? Yeah, this did seem to
Speaker 1: be a speech focused not just on the Democratic core voters,
Speaker 1: but maybe Republicans who don't like the direction of the
Speaker 1: party in the last six years or so. Uh and
Speaker 1: and probably any persuadable independence this this was a bit
Speaker 1: of a very enthusiastic speech, but it was a speech
Speaker 1: focused on persuading whoever might be persuadable on these issues,
Speaker 1: rather than just speaking to Democrats. So he's making an
Speaker 1: attempt in that regard. Alright, Bloomberg Government reporter Jack Fitzpatrick,
Speaker 1: want to thank you for joining us, taking the time
Speaker 1: with us on this Friday morning, talking to us about
Speaker 1: President Biden's primetime address to the nation that last night.
Speaker 1: Karen Amy, it is five fifty two on Wall Street.
Speaker 1: It's time now for the Bloomberg Law Report. Let's get
Speaker 1: to the legal stories we're launching this morning from Bloomberg.
Speaker 1: Jeff Bellinger. A federal lawsuit a munch as Wells Fargo
Speaker 1: is responsible for a one data breach that exposed sensitive data,
Speaker 1: including social security numbers of thousands of customers. A Florida
Speaker 1: pension fund issuing Avid Laboratories claiming company hid problems that
Speaker 1: a baby formula plant that led to a recall, and
Speaker 1: the nationwide formula shortage the music and streaming industries will
Speaker 1: skip further legal wrangling. The two sides have a deal
Speaker 1: that locks in streaming royalty rates for the next five years.
Speaker 1: Bloomberg Law everything you need, all on one legal research platform,
Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more
Speaker 1: at Bloomberg Law dot com. All right, Jeff, thanks Now,
Speaker 1: another legal news that we're watching this morning brings us
Speaker 1: to investigations centered on Donald Trump. The former president is
Speaker 1: fighting legal battle so the government on several fronts, and
Speaker 1: we're learning those fights will not be resolved before the
Speaker 1: midterm elections. For more of the reasons why and what
Speaker 1: it could mean in November, Kimberly Robinson and Lydia Wheeler
Speaker 1: speak with Bloomberg News reporter Chris Strom. There's two primary
Speaker 1: reasons that we're not likely to see charges anytime soon.
Speaker 1: The first one is that there's still a extensive amount
Speaker 1: of work that needs to be done. Um. The government
Speaker 1: has said in court filings just recently that with regard
Speaker 1: to the investigations of the classified documents, they are in
Speaker 1: the early stages of their investigation and new information continues
Speaker 1: to come forward. The government is still collecting evidence, reviewing
Speaker 1: evidence to determine the scope of any breaches, and there's
Speaker 1: just not um uh, there's there's still a lot of
Speaker 1: work for them to do in in both the Classified
Speaker 1: Documents investigation, in the January six investigation, the second reason
Speaker 1: is that UM, the Justice Department also has a policy
Speaker 1: that no public actions should be taken in high profile
Speaker 1: cases UM right before an election. UM that could be
Speaker 1: seen as influencing the outcome of that election, and the
Speaker 1: November elections are just around the corner. Traditionally, UM prosecutors
Speaker 1: have looked at that policy as taking place sixty days
Speaker 1: before an election, which in this case would be September ten. Now,
Speaker 1: Trump is not on the ballot, but Trump's candidates are
Speaker 1: on the ballot, and Trump represents a very significant political
Speaker 1: force in this country, under which people in the Justice
Speaker 1: Department UM believe that the policy applies to Trump in
Speaker 1: this case. So you mentioned this policy that the DOJ has,
Speaker 1: haven't There been some pretty high profile times though in
Speaker 1: the past of the Department has ignored that policy. Yes, uh,
Speaker 1: and department officials have come under criticism for doing so.
Speaker 1: The most one of the most notable ones was when
Speaker 1: James Coby, the former head of the FBI, UM, revealed
Speaker 1: that the FBI was reopening the investigation into Hillary Clinton
Speaker 1: h ten days before the two thousand and sixteen election. UM.
Speaker 1: And so uh uh Comey was criticized UM really from
Speaker 1: all corners or um making that decision in a lot
Speaker 1: and doing it in a way that it became public
Speaker 1: um and then um also in the election UM, the
Speaker 1: former Attorney General Bill barr Uh came out right in
Speaker 1: the in the days right before that election and said
Speaker 1: that it would be okay for uh US prosecutors to
Speaker 1: begin to talk publicly about investigations into election fraud and
Speaker 1: their finding. And as Bloomberg News reporter Chris Strom speaking
Speaker 1: with the Bloomberg's Kimberly Robinson and Lydia Wheeler. Catch more
Speaker 1: in that interview plus analysis of the latest legal news
Speaker 1: by subscribing to the Bloomberg Law Podcast or downloading the
Speaker 1: show at Bloomberg dot com slash podcast. Attorneys can find
Speaker 1: exceptional legal research and business development tools at Bloomberg Law
Speaker 1: dot com and on the Bloomberg terminal at the Law Go.
Speaker 1: And we're watching futures this morning. They are little change
Speaker 1: that ahead of the Augusted jobs report. And if you're
Speaker 1: looking at Europe, stocks are higher. The decks in Germany
Speaker 1: is a one in a third percent to Cack and
Speaker 1: baris a half percent. In the foot Sea one hundred
Speaker 1: is up seven tenths of a percent n K to
Speaker 1: twenty five in Japan. Little change today. The tenure treasury
Speaker 1: down to two thirties seconds. You have three point to
Speaker 1: six percent They yield on the two year three point
Speaker 1: four and nine percent nine max Screwed oil is up
Speaker 1: two point one percent, up a dollar eighty three at
Speaker 1: eighty eight dollars forty four cents of barrel coll mex
Speaker 1: schooled up half percent or eight dollars thirty cents at
Speaker 1: one thousand and seven hundred seventeen dollars sixty cents. Announced
Speaker 1: Bitcoin this morning is a twenty thousand, one hundred forty
Speaker 1: dollars and still ahead on Bloomberg day break and check
Speaker 1: on the business headlines and all the news you need
Speaker 1: to start your day. And this is Bloomberg