WEBVTT - Bloomberg Daybreak: September 20, 2022 - Hour 1 (Radio) 0:00:02.560 --> 0:00:05.880 My from the Bloomberg Interacted Burger Studios is Bloomberg day 0:00:05.880 --> 0:00:08.959 Break for two day, September twenty. It's two coming up 0:00:09.000 --> 0:00:11.480 this hour, the Fed kicks off It's two day meeting 0:00:11.520 --> 0:00:14.319 with another seventy five basis point rate hike on the table. 0:00:14.480 --> 0:00:16.919 Treasury two year yields are poised to crack about four 0:00:16.960 --> 0:00:19.840 percent for the first time in fifteen years. British Prime 0:00:19.840 --> 0:00:22.680 Minister Liz trust is pessimistic about a trade deal with 0:00:22.720 --> 0:00:25.680 the US, and four chairs drop on concerns of higher 0:00:25.680 --> 0:00:28.560 supply costs. New York City is looking at legal action 0:00:28.600 --> 0:00:31.840 involving the influx of migrants from Texas. Plus Hurricane Fiona 0:00:31.880 --> 0:00:35.760 strengthens after devastating Puerto Rico. I'm Michael Barr More Ahead, 0:00:35.960 --> 0:00:38.440 I'm John Stashower and sports the Mets cliff to playoff 0:00:38.520 --> 0:00:41.000 Berth Max Scherzer picks them to victory, and Milwaukee Aaron 0:00:41.080 --> 0:00:44.520 judge the Yankees tonight host Big Burg. That's all straight 0:00:44.560 --> 0:00:48.760 Ahead on Bloomberg day Break on Bloomberg eleven, Treeo, New York, 0:00:48.920 --> 0:00:53.640 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:53.800 --> 0:00:58.760 Bloomberg nine, San Francisco, sirius x M one nineteen and 0:00:58.840 --> 0:01:01.960 around the world on Bloomberg Radio dot com and via 0:01:02.000 --> 0:01:09.600 the Bloomberg Business Actor. Good morning, I'm Nathan Hagart and 0:01:09.640 --> 0:01:12.880 I'm Karen Moscow and US dot Index futures are moving 0:01:12.920 --> 0:01:15.319 lower this morning. We are coming up to five oh 0:01:15.360 --> 0:01:17.960 one on Wall Street and we check the markets every 0:01:17.959 --> 0:01:20.800 fifteen minutes throughout the trading day on Bloomberg. Right now, 0:01:20.880 --> 0:01:24.480 SMP futures are down five points down, futures down nineteen, 0:01:24.560 --> 0:01:27.399 NAS day futures down thirty one, and the decks in 0:01:27.440 --> 0:01:29.560 Germany's down a third of u percent. The ten year 0:01:29.600 --> 0:01:32.600 treasury down seven thirty seconds, you know, three point five 0:01:32.680 --> 0:01:34.920 one percent, and they yield on the two year three 0:01:34.959 --> 0:01:38.119 point nine to six percent. Nathan here in the SMP 0:01:38.280 --> 0:01:41.240 five hundred snaffed to two day losing Street guest today. 0:01:41.280 --> 0:01:44.200 But right now futures are falling just a bit. Ten 0:01:44.319 --> 0:01:47.319 year treasury yields are hovering near three and a half percent, 0:01:47.319 --> 0:01:49.559 while the yield on the two years poised to crack 0:01:49.680 --> 0:01:53.000 four percent for the first time since two thousand seven. 0:01:53.320 --> 0:01:56.160 Jake Jolly is a senior investment strategist at B and Y. 0:01:56.240 --> 0:01:59.280 Melon I think it's going to be pretty toppy this week, right, 0:01:59.400 --> 0:02:03.760 We're all waiting for Wednesday. We're all very attentive to 0:02:03.960 --> 0:02:06.240 you know, what's going to be coming. Most notably, I 0:02:06.240 --> 0:02:08.720 think in the summary of economic projections. I think everybody 0:02:08.760 --> 0:02:11.200 feels like a FED watcher these days. But until then, 0:02:11.560 --> 0:02:13.519 I think it's going to be a little bit choppy. 0:02:13.639 --> 0:02:15.799 And the FED meeting mentioned by b n Y Melons 0:02:15.880 --> 0:02:19.520 Jake Jolly, kicks off today. According to economists surveyed by Bloomberg, 0:02:19.560 --> 0:02:22.280 the Central Bank will high grades by three quarters of 0:02:22.280 --> 0:02:25.840 a percentage point for the third straight time. Lori Calvacina's 0:02:25.880 --> 0:02:31.000 head of US equity strategy at RBC Capital Markets, they're 0:02:31.040 --> 0:02:33.079 still in the seventy days this point camp that they've 0:02:33.080 --> 0:02:35.280 certainly said that a hundred is on the table, and 0:02:35.440 --> 0:02:37.240 it does seem like there's been pains to make that 0:02:37.280 --> 0:02:40.320 messaging out there. It was a brutal day last week 0:02:40.360 --> 0:02:43.200 after that CPI print, we had a five percent drop 0:02:43.200 --> 0:02:45.720 in the mastack. So I do think that a lot 0:02:45.800 --> 0:02:47.480 is baked in at this point in time, and I 0:02:47.560 --> 0:02:50.320 think what the market continues to struggle with is not 0:02:50.400 --> 0:02:52.600 just the aggressive action from the FED, but there were 0:02:52.720 --> 0:02:57.280 economic ramification Lourie Calvacina at RBC says more companies could 0:02:57.320 --> 0:02:59.959 downgrade their earnings forecast and that could lead to more 0:03:00.080 --> 0:03:03.920 uncertainty for the markets. In Japan, Karen, inflation accelerated to 0:03:03.960 --> 0:03:06.520 its fastest pace in more than three decades, and that's 0:03:06.560 --> 0:03:09.079 creating headaches for the Bank of Japan. It will try 0:03:09.120 --> 0:03:12.600 to explain why it needs to continue with monetary stimulus 0:03:12.600 --> 0:03:15.919 when inflation is above its two percent goal. Consumer prices 0:03:15.960 --> 0:03:18.560 excluding fresh food rose at an annual rate of two 0:03:18.639 --> 0:03:22.320 point eight percent in August. Meantime, Nathan across Asia stocks 0:03:22.320 --> 0:03:25.200 snapped a five day losing streak. Hopes at Hong Kong 0:03:25.320 --> 0:03:29.720 will ease COVID restrictions helped boost sentiment, and we get 0:03:29.720 --> 0:03:33.280 the recap from Bloomberg's Juliette Sally and Singapore. Good morning, Juliet, 0:03:33.400 --> 0:03:35.840 Good morning, Nathan, and Karen. Indexes in Hong Kong, we're 0:03:35.880 --> 0:03:38.360 up more than one percent one key gauge, climbing from 0:03:38.400 --> 0:03:40.800 the edge of a bear market. As Hong Kong's chief 0:03:40.800 --> 0:03:43.960 executive said, the city wants to relax COVID travel curbs 0:03:44.000 --> 0:03:46.920 after nearly three years of restrictions. They off show you 0:03:46.920 --> 0:03:49.560 one weekend despite the p BOC setting a stronger than 0:03:49.600 --> 0:03:53.040 expected fix for a nineteenth day, and Chinese lenders kept 0:03:53.080 --> 0:03:57.880 their loan prime rates unchanged. In Singapore, Juliet Sally Bloomberg Daybreak. 0:03:57.960 --> 0:04:00.480 All right, Juliet, thank you. Let's turn to gel politics. 0:04:00.520 --> 0:04:03.120 Now there's word this morning a trade deal between the 0:04:03.240 --> 0:04:07.000 UK and the US is not likely anytime soon. Let's 0:04:07.040 --> 0:04:09.320 go live to London and get the details from Bloomberg's 0:04:09.360 --> 0:04:12.320 un Parts. Good morning, Good morning, Nathan and Karen. It's 0:04:12.360 --> 0:04:14.880 the first foreign trip for Liz trust since she became 0:04:14.920 --> 0:04:18.359 British Prime Minister two weeks ago, but touching down in 0:04:18.400 --> 0:04:21.279 New York for the UN General Assembly, she told reporters 0:04:21.320 --> 0:04:24.120 a trade deal between the UK and the US is 0:04:24.240 --> 0:04:27.880 unlikely in the short all the medium term. An agreement 0:04:27.960 --> 0:04:30.240 with the world's biggest economy has been an ambition for 0:04:30.279 --> 0:04:33.320 post Brexit trade policy, but for now the new PM 0:04:33.320 --> 0:04:36.479 accepts it's not going to happen anytime soon. In London, 0:04:36.480 --> 0:04:39.040 Immune Parts in Bag Daybreak, are you and thank you? 0:04:39.080 --> 0:04:41.440 Now to the latest and the war in Ukraine, the 0:04:41.480 --> 0:04:45.400 country's foreign minister dimitro Ko le Bas calling on Western 0:04:45.440 --> 0:04:48.279 allies to send even more weapons to Cement the gains 0:04:48.320 --> 0:04:51.760 from this month's counter offensive against Russia. He says it's 0:04:51.760 --> 0:04:55.320 been successful so far. It wasn't expected for some, but 0:04:55.400 --> 0:05:00.560 it was a thoroughly planned and well thought military operation. 0:05:01.520 --> 0:05:05.520 Um the next phase will be to continue liberating our territories. 0:05:05.640 --> 0:05:08.599 We will continue our counter offensive in the east of 0:05:08.640 --> 0:05:12.880 the country and Ukrainian Foreign Minister Dimitrio Kuleba spoke with 0:05:13.000 --> 0:05:15.919 Bloomberg in New York ahead of the UN General Assembly's 0:05:15.920 --> 0:05:19.599 annual meeting. Last week, President Biden announced another six hundred 0:05:19.600 --> 0:05:23.200 million dollar drawn down from US military stock biles to 0:05:23.279 --> 0:05:26.520 provide aid to Ukraine. In Corporate News this morning, Karen, 0:05:26.560 --> 0:05:29.159 a big legal battle is back in the spotlight. We 0:05:29.200 --> 0:05:32.359 have new developments in the lawsuit found by Twitter against 0:05:32.440 --> 0:05:35.719 Elon Musk. Twitter co founder Jack Dorsey will now be 0:05:35.800 --> 0:05:38.240 questioned under oath as part of the case, and we 0:05:38.240 --> 0:05:41.440 get the story from Bloomberg. Stud prisoner. Dorsey has been 0:05:41.440 --> 0:05:44.520 an energetic booster of Musk's fort four billion dollar bid 0:05:44.560 --> 0:05:47.599 for the company, but in July Musk retreated from his 0:05:47.640 --> 0:05:50.960 offer and accused the company of not providing information to 0:05:51.040 --> 0:05:54.320 assess the prevalence of bots. Twitter is now suing Musk 0:05:54.400 --> 0:05:57.880 to enforce the takeover agreement, even though Dorsey was subpoenaed 0:05:58.000 --> 0:06:01.200 last month by Musk. He will be question by attorneys 0:06:01.200 --> 0:06:04.680 from both sides via zoom. The push to gather information 0:06:04.760 --> 0:06:08.320 and interview key players comes ahead of an expedited schedule 0:06:08.400 --> 0:06:11.680 for a trial. It's lated to begin October sevent and 0:06:11.839 --> 0:06:14.440 last for five days in New York. I'm duck, prisoner 0:06:14.480 --> 0:06:16.880 Bloomberg daybreak, all right, Doug, thank you well for it 0:06:17.040 --> 0:06:20.040 is also front and center this morning. Shares down almost 0:06:20.040 --> 0:06:23.920 five percent in early training after the automaker said inflation 0:06:24.120 --> 0:06:28.040 is pushing supplier costs a billion dollars higher than expected 0:06:28.040 --> 0:06:31.200 in the current quarter. Ford expects adjusted earnings to be 0:06:31.320 --> 0:06:34.640 well below the three point seven billion it reported last quarter, 0:06:34.960 --> 0:06:37.680 and General Motors is getting a vote of confidence this morning. 0:06:37.720 --> 0:06:41.360 Karen from one big investor, Cathy Woods Fund, has scooped 0:06:41.440 --> 0:06:43.760 up shares of GM for the first time in more 0:06:43.800 --> 0:06:47.120 than four months. Following a fifty percent draw down this 0:06:47.200 --> 0:06:50.599 year through July, GM shares have been gradually recovering as 0:06:50.640 --> 0:06:54.760 the company bets on selling affordable electric vehicles, and Apple 0:06:54.920 --> 0:06:58.120 unveiled major increases to its price tiers on apps and 0:06:58.279 --> 0:07:01.320 app purchases from Europe to Asia, protecting its margins as 0:07:01.360 --> 0:07:05.120 major currencies tumble against the US dollar. Customers and nations 0:07:05.160 --> 0:07:07.640 that use the Euro, as well as those in Sweden, Japan, 0:07:08.040 --> 0:07:12.280 South Korea, Chile, Egypt, to Malaysia, Pakistan and Vietnam, we'll 0:07:12.320 --> 0:07:15.800 all see price six as early as October five. Futures 0:07:15.840 --> 0:07:23.440 are lower your local headlines straight ahead. This is Bloomberg, right, Karen, 0:07:23.480 --> 0:07:25.320 Thank you. It's five oh seven on Wall Street. We're 0:07:25.320 --> 0:07:27.760 at sixty nine degrees in Central Park, already dealing with 0:07:27.800 --> 0:07:30.600 an accident on the westbound Cross Bronx Expressway. It's by 0:07:30.640 --> 0:07:33.840 the Shared In Expressway. Details coming up in traffic. First, 0:07:33.920 --> 0:07:35.880 Michael Barr with what else is going on in New 0:07:35.960 --> 0:07:38.640 York and around the world. Good morning, Michael, Good morning Nathan. 0:07:38.720 --> 0:07:42.600 More migrants arrived by bus to New York from Texas yesterday, 0:07:42.640 --> 0:07:46.720 following six additional buses over the weekend. Mayor Eric Adams 0:07:46.720 --> 0:07:50.920 says this city is considering potential legal action. The situation 0:07:50.960 --> 0:07:53.840 in New York at certain tragic, with Mayor Adams confirming 0:07:53.880 --> 0:07:56.640 that an asylum seeker took her own life at a 0:07:56.680 --> 0:08:01.880 facility over the weekend. The failure was the governors that 0:08:02.080 --> 0:08:06.640 sent people on a multi day bus ride without of 0:08:07.160 --> 0:08:12.400 proper food, without medical care, without the basic necessities. Mayor 0:08:12.440 --> 0:08:15.920 Adams says, eleven thousand, six hundred asylum seekers and migrants 0:08:15.920 --> 0:08:19.480 are here in the city. Meanwhile, of Texas Democratic sheriff 0:08:19.480 --> 0:08:23.320 announced the criminal investigation has been opened into who was 0:08:23.400 --> 0:08:26.480 behind the recruitment of dozens of migrants in San Antonio 0:08:26.800 --> 0:08:29.320 to be flown on a charter plane to Florida and 0:08:29.400 --> 0:08:33.839 Martha's Vineyard in Massachusetts. Bear County Sheriff Javier Salazaras says 0:08:33.880 --> 0:08:36.840 they were lured, they were promised work, they were promised 0:08:36.880 --> 0:08:39.800 the solution to several of their problems. They were taken 0:08:39.880 --> 0:08:43.720 to Martha's Vineyard from what from what we can gather 0:08:44.480 --> 0:08:48.240 for nothing, for a little more than a photo video 0:08:48.320 --> 0:08:53.120 op and then they were unceremoniously stranded in Martha's Vineyard. 0:08:53.360 --> 0:08:56.960 Saraff Salazaris says it's believed that a Venezuelan migrant was 0:08:57.000 --> 0:09:00.200 paid what would be called a bird dog fee to 0:09:00.240 --> 0:09:03.480 recruit people from the area around a migrant resource center. 0:09:03.880 --> 0:09:07.079 Fiona strengthened to a Category three hurricane overnight with winds 0:09:07.120 --> 0:09:10.000 of a hundred fifteen miles per hour as it approached 0:09:10.000 --> 0:09:13.160 the Turks and Caicos Islands. In Puerto Rico, more than 0:09:13.200 --> 0:09:15.920 a million people are without power, and officials say roughly 0:09:16.120 --> 0:09:18.840 thirty five inches of rain could fall on some areas. 0:09:19.200 --> 0:09:22.080 In New York, Governor Cathy Hocle says, Puerto Rico needs 0:09:22.080 --> 0:09:24.880 assistance like any other state going through a natural disaster. 0:09:25.280 --> 0:09:28.320 Is our citizens, fellow citizens, and that is why we 0:09:28.600 --> 0:09:30.400 do this mutual late, as we would do if there were, 0:09:30.400 --> 0:09:34.480 you know, the flooding in Kentucky. Governor Hocle says, utility 0:09:34.480 --> 0:09:37.559 crews are ready to go down to help. UN Secretary 0:09:37.640 --> 0:09:40.480 General Antonio Guterres is warning that the world is in 0:09:40.559 --> 0:09:43.599 great peril. He says. World leaders, meeting in person for 0:09:43.640 --> 0:09:46.000 the first time in three years at the UN General 0:09:46.040 --> 0:09:50.559 Assembly in New York, must tackle conflicts and climate catastrophes. 0:09:51.000 --> 0:09:53.640 Global News twenty four hours a day on air and 0:09:53.760 --> 0:09:57.000 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:09:57.040 --> 0:09:59.319 journalist and analyst and more than a hundred twenty countries. 0:09:59.640 --> 0:10:06.800 Michael Are this is Bloomberg Natham. Thanks. Michael turned up 0:10:06.840 --> 0:10:08.680 to five ten on Wall Street time to the Bloomberg 0:10:08.720 --> 0:10:11.199 Sports Update. Good morning, John Stenshown, Good morning, Nathan. The 0:10:11.240 --> 0:10:13.760 Mets are now officially in the playoffs, and they are 0:10:13.760 --> 0:10:16.319 hoping that next month it's there one two punch that 0:10:16.400 --> 0:10:18.839 will take them for the night. After Jacob mcgraham began 0:10:18.920 --> 0:10:22.160 his start with five perfect innings and thirteen strike ats, 0:10:22.280 --> 0:10:25.200 it was Max Serser's turn. Came off the injured list 0:10:25.200 --> 0:10:28.600 in Milwaukee to hurl six perfect in as nine cages. 0:10:28.679 --> 0:10:31.439 Jersey has been taken out. Brewers scored twice in the 0:10:31.520 --> 0:10:34.000 seventh off. Tyler McGill, also just back from injury, but 0:10:34.000 --> 0:10:36.800 the Mets one seven to two, ers two hundredth career 0:10:36.840 --> 0:10:39.040 win Peter Alonso at the three run homers thirty six. 0:10:39.120 --> 0:10:42.360 The Braves also won. They remain a game behind even 0:10:42.440 --> 0:10:45.240 in the lost column. Yankees back home tonight to play Pittsburgh, 0:10:45.600 --> 0:10:48.040 and the hot ticket is for a seat in the bleachers, 0:10:48.080 --> 0:10:50.600 a chance to catch a ball hit out by Aaron Judge, 0:10:50.600 --> 0:10:53.400 sitting on fifty nine home runs is next one matches 0:10:53.800 --> 0:10:57.400 Babe Ruth from seven, and then it's on too Roger Marris. 0:10:57.800 --> 0:11:01.120 Judge continues to say it's not on his I'm focus 0:11:01.360 --> 0:11:05.560 to go out there and win a game. Numbers unless 0:11:05.960 --> 0:11:08.320 there is numbers, and you know I'm focused on newing. 0:11:08.360 --> 0:11:10.079 I can to be a good teammate, help the team win. 0:11:11.200 --> 0:11:13.920 That means homer and then it means the homer. But 0:11:14.960 --> 0:11:17.400 never never been more focus, ever been. You know, I 0:11:17.520 --> 0:11:19.720 managed I play this game in the Astros last night 0:11:19.760 --> 0:11:21.959 clinch the a L West. The Guardians won. They leave 0:11:21.960 --> 0:11:24.439 the Ale Central by four games para Monday night blowouts. 0:11:24.440 --> 0:11:27.839 Buffalo forty one to seven over Tennessee. Josh Allen and 0:11:27.880 --> 0:11:31.160 Stefan Diggs hooked up for touchdowns three times. Philadelphia all 0:11:31.160 --> 0:11:33.800 over Minnesota twenty four to seven. Jalen Hurts ran for 0:11:33.880 --> 0:11:36.199 two touchdowns through a fifty three rd TD pass. The 0:11:36.200 --> 0:11:38.319 Bills and Eagles both too and oh Jets go to 0:11:38.360 --> 0:11:40.839 Rob Sala, says Zach Wilson. Looks good in practice, but 0:11:41.320 --> 0:11:43.640 Jets might stick with last Sunday zero Joe Flacco for 0:11:43.679 --> 0:11:46.600 at least one more game Sunday against Cincinnati. John stash 0:11:46.679 --> 0:11:49.959 I Wenter Bloomberg Sports, Nathan Okay, John thanks SMP future 0:11:50.000 --> 0:11:52.439 is moving lower now down ten points, Stown futures down 0:11:52.480 --> 0:11:55.080 fifty four Nance deck futures, adding to their declines down 0:11:55.200 --> 0:11:57.880 fifty two points in the ten year Treasury yield right 0:11:57.920 --> 0:12:01.920 now three point five to per cent. You're listening to 0:12:02.040 --> 0:12:09.360 Bloomberg Day Bread Bloomberg eleven three oh weather. Sunshine today 0:12:09.360 --> 0:12:11.319 and hides in the low eighties, mostly sunny with a 0:12:11.400 --> 0:12:15.160 high near eighty tomorrow. By Thursday showers lightly hides them 0:12:15.200 --> 0:12:17.839 in the upper seventies. Right now sixty nine degrees in 0:12:17.920 --> 0:12:25.400 Central Park Markets, headlines and breaking news twenty four hours 0:12:25.440 --> 0:12:28.400 a day at Bloomberg dot com, the Bloomberg Business at 0:12:28.520 --> 0:12:32.280 and at Bloomberg Brictake. This is a Bloomberg Business flash 0:12:38.160 --> 0:12:40.920 and I'm Karen. Moscow stocks giving up early gains as 0:12:40.960 --> 0:12:44.439 traders gear up for another supersized US rate high, committed 0:12:44.559 --> 0:12:47.839 rising anxiety the Federal Reserve could overtighten and raise the 0:12:47.920 --> 0:12:50.760 odds of a hard landing. Fed policymakers open a two 0:12:50.840 --> 0:12:53.439 day meeting today with a decision on interest rates scheduled 0:12:53.480 --> 0:12:56.800 four tomorrow, and U S Dock index futures are lower. 0:12:56.880 --> 0:12:59.520 We checked the markets every fifteen minutes throughout the trading day. 0:12:59.640 --> 0:13:03.080 On Bomberg, SNP future is down about twelve points this morning, 0:13:03.120 --> 0:13:06.360 down features down fifty six and NASDAC futures down fifty three. 0:13:06.800 --> 0:13:10.000 The decks in Germany's down half percent. Ten year treasury 0:13:10.080 --> 0:13:12.600 down ten thirty seconds. You have three point five two percent. 0:13:12.679 --> 0:13:15.240 They yield on the two year three point nine seven percent. 0:13:15.760 --> 0:13:18.240 Nine X Screwed oil is up half percent or forty 0:13:18.280 --> 0:13:20.760 six cents at eighty six dollars. Nineteen cents of barrel. 0:13:21.080 --> 0:13:23.000 Comic school is down a tenth of upper cent or 0:13:23.000 --> 0:13:26.000 two dollars at sixteen seventy six twenty an ounce. The 0:13:26.080 --> 0:13:29.480 euro is at one point zero zero one zero against 0:13:29.480 --> 0:13:31.880 the dollar, British pound one point one three two and 0:13:31.960 --> 0:13:34.800 again one forty three point seven. To look at a 0:13:34.840 --> 0:13:37.520 bit coin, it's down one point two percent and nineteen thousand, 0:13:37.600 --> 0:13:40.199 two hundred ninety dollars. And today we are looking for 0:13:40.280 --> 0:13:42.720 reports on housing starts and building permits at a eight 0:13:42.760 --> 0:13:45.680 thirty Wall Street time. That's a bloomberg business flash. Now 0:13:45.720 --> 0:13:48.000 here's Michael Barr with more on what's going on around 0:13:48.000 --> 0:13:51.000 the world. Michael, good morning, Good morning, Kerin. Hurricane Fiona 0:13:51.080 --> 0:13:53.839 has strengthened into a Category three storm as it now 0:13:54.040 --> 0:13:58.360 heads towards the Turks and Caicos Islands. It continues to 0:13:58.400 --> 0:14:01.360 cause heavy winds and rain in the Dominican Republic. In 0:14:01.400 --> 0:14:05.000 Puerto Rico, where floodwaters rushed through the streets and many 0:14:05.040 --> 0:14:09.480 are without power. Border Crossing Sword In August, US Customs 0:14:09.559 --> 0:14:13.480 and Border Protections reported an increase in migrants from Venezuela, 0:14:13.720 --> 0:14:18.400 Cuba and Nickarava, stopping about fifty six thousand last month. 0:14:19.000 --> 0:14:22.240 It was a Monday night football doubleheader. The Bills put 0:14:22.320 --> 0:14:25.120 on What four and Why Women on the Titans forty 0:14:25.200 --> 0:14:28.360 one seven. The Eagles beat the Vikings twenty four seven. 0:14:28.720 --> 0:14:31.680 In baseball, the Mats one clinching a playoff birth the 0:14:31.760 --> 0:14:34.960 Nationals and Orioles lost the Giants one. Global news twenty 0:14:35.000 --> 0:14:37.360 four hours a day on air and on Bloomberg Quick Take, 0:14:37.440 --> 0:14:40.040 powered by more than twenty seven hundred journalists and analysts 0:14:40.080 --> 0:14:42.320 more than a hundred twenty countries. Michael bar this is 0:14:42.400 --> 0:14:44.920 Bloomberg Nager. Okay, Michael, thank you. We're coming up to 0:14:45.000 --> 0:14:47.640 five twenty on Wall Street Live from the Bloomberg Interactive 0:14:47.680 --> 0:14:51.640 Broker Studios. This is Bloomberg Daybreak. We've got sd Dweck 0:14:51.760 --> 0:14:54.840 with us this morning, chief investment officer at Flow Bank, 0:14:55.200 --> 0:14:58.320 with the focus on central banks this week and a 0:14:58.440 --> 0:15:02.280 FED decision tomorrow. See good morning. We're watching futures move 0:15:02.400 --> 0:15:06.080 lower the two year yield getting ever closer to four percent, 0:15:06.520 --> 0:15:09.920 Does this market have more pricing into whatever the Fed's 0:15:09.960 --> 0:15:14.960 gonna do tomorrow? Good morning, Well, it's certainty, certainly seems 0:15:15.000 --> 0:15:18.320 to be the case. I think the market is worried, 0:15:18.560 --> 0:15:21.520 is that the terminal rate in the dot plot that 0:15:21.600 --> 0:15:23.720 we're going to get tomorrow is going to be higher 0:15:23.840 --> 0:15:28.160 than um, you know, four four point five or something 0:15:28.280 --> 0:15:30.320 like that, And so there's a little bit of readjustment, 0:15:30.440 --> 0:15:34.160 especially well a lot of readjustment, especially at at the 0:15:34.240 --> 0:15:37.720 two year yields, waiting for the announcement tomorrow. So how 0:15:37.800 --> 0:15:40.960 much further do you think these this market could go? 0:15:41.040 --> 0:15:43.960 In the stock market, how much further could we see 0:15:44.440 --> 0:15:49.640 treasury yields go? Well, you know, it really depends if 0:15:49.680 --> 0:15:53.160 we get an even more hawkish uh surprise from the 0:15:53.240 --> 0:15:57.800 Fed or something as hawkish as uh Powell was it 0:15:58.160 --> 0:16:01.720 at Jackson Hole, or whether we have a dots plots 0:16:01.800 --> 0:16:04.240 that shows below four and a half, which is already 0:16:04.320 --> 0:16:07.840 basically priced in by the markets. Um, we've broken through 0:16:08.040 --> 0:16:11.960 those June highs on the tenure, so there is some 0:16:12.200 --> 0:16:14.720 room to the upside, but it is starting to feel 0:16:15.560 --> 0:16:21.080 again unless the Fed again resets those terminal rate expectations. 0:16:21.960 --> 0:16:23.840 It is starting to get a little bit stretched on 0:16:23.880 --> 0:16:26.760 the yield front. Now, we did get a hawkish surprise 0:16:26.880 --> 0:16:29.680 this morning from Sweden Central Bank coming in with a 0:16:29.800 --> 0:16:32.640 hundred basis point move. Does that have any impact on 0:16:33.160 --> 0:16:37.680 your expectations for the Fed tomorrow? I don't think so. 0:16:37.960 --> 0:16:41.240 The Fed is most likely going to do seventy five 0:16:41.480 --> 0:16:44.920 at this point again, even if they went a hundred, 0:16:45.920 --> 0:16:50.160 because they are trying to frontload these these rate hikes. UM, 0:16:50.440 --> 0:16:52.680 I think the market might not necessarily see it as 0:16:52.680 --> 0:16:57.400 a negative again, depending on how that terminal rate ends up. Uh, 0:16:57.520 --> 0:16:59.680 it's really a question of how high do we go 0:17:00.160 --> 0:17:03.200 and for how long do we stay there? UM the 0:17:03.280 --> 0:17:05.200 past higher Now we know it's going to be a 0:17:05.280 --> 0:17:08.520 lot of big hikes. We have seventy five basis points 0:17:09.760 --> 0:17:13.040 mostly planned in for November already, so we know a 0:17:13.160 --> 0:17:15.760 few of these are coming. Now, what does that mean 0:17:16.200 --> 0:17:20.399 for corporations going forward? Here we're hearing a number of 0:17:20.440 --> 0:17:23.400 earnings downgrades. Of course, you got that big report from 0:17:23.480 --> 0:17:27.880 FedEx last week and more gloomy picture from Ford as 0:17:27.920 --> 0:17:31.719 well this morning. Are we in uh setting ourselves up 0:17:31.760 --> 0:17:35.120 here for even further earnings downgrades? From companies getting into 0:17:35.160 --> 0:17:39.480 the last quarter. It's something we definitely need to watch. 0:17:39.680 --> 0:17:42.359 The Ford one is more question was more question of 0:17:42.440 --> 0:17:46.800 waiting for UH some parts and then UH they think 0:17:46.840 --> 0:17:49.080 their Q four deliveries are going to be fine. So 0:17:49.359 --> 0:17:52.160 we saw that with some other carmakers a few quarters ago. 0:17:52.240 --> 0:17:55.359 So the full year twenty two wasn't changed. FedEx was 0:17:55.480 --> 0:17:58.520 definitely a warning, but so far it's one of the 0:17:58.680 --> 0:18:01.960 only companies that has been as negative about the rest 0:18:02.040 --> 0:18:05.200 of the year. But we have to watch that and 0:18:05.280 --> 0:18:08.720 if it starts to become very big downgrades to the 0:18:08.840 --> 0:18:12.840 outlook and not just some downward adjustment, then I think 0:18:12.920 --> 0:18:15.280 that can be another worry for markets. So in our 0:18:15.359 --> 0:18:19.280 last minute, here SD what's the risk of economic slowdown 0:18:19.400 --> 0:18:23.479 or even recession given the strongest stance we're seeing from 0:18:23.560 --> 0:18:25.959 the FED, And where do you put your money at 0:18:26.000 --> 0:18:31.359 this point? Well, it's interesting because you you have a 0:18:31.480 --> 0:18:35.359 labor market that's holding up, you have growth data that 0:18:35.640 --> 0:18:38.240 appears to be holding up so far, so it doesn't 0:18:38.280 --> 0:18:41.520 feel like we're sort of stirling towards a recession and 0:18:41.640 --> 0:18:45.800 that's very elusive. Soft landing seems like a possibility at 0:18:45.840 --> 0:18:48.120 this point. Well, it's certainly going to have to watch 0:18:48.240 --> 0:18:50.920 that over the next few months. But in the short term, 0:18:51.000 --> 0:18:54.520 sentiment is negative. I think we probably have at least 0:18:54.560 --> 0:18:58.479 a few more weeks of downside risks. So for now, 0:18:58.640 --> 0:19:02.240 I mean, you know, dollar is still king, cash is 0:19:02.680 --> 0:19:06.680 obviously paying so uh for the Again for the short term, 0:19:07.200 --> 0:19:09.960 certainly more on the cautious side, and certainly are seeing 0:19:10.240 --> 0:19:13.520 even more dollars strength this morning as well. Thanks for this, 0:19:13.760 --> 0:19:15.959 s D. Again, great having you back on with us 0:19:16.040 --> 0:19:20.200 this morning. S D. Dwack, chief investment Officer at Flow Bank. 0:19:20.440 --> 0:19:23.640 As we watched the market this morning, we're seeing futures 0:19:23.720 --> 0:19:26.439 add to their declines. Right now, We've got SMP futures 0:19:26.480 --> 0:19:30.280 lower by fifteen points down, futures down eighty three, and 0:19:30.640 --> 0:19:33.719 Nasdaq future is a drop of six tenths percent sixty 0:19:33.840 --> 0:19:36.920 seven point decline on the tech heavy NASTAC futures. The 0:19:37.000 --> 0:19:39.800 ten year Treasury is down ten thirty seconds, with the 0:19:39.880 --> 0:19:42.480 yield close to three point five three percent, the yield 0:19:42.560 --> 0:19:44.800 on the two year getting ever closer to four percent 0:19:45.000 --> 0:19:48.600 right now at three point nine eight nime X screwed 0:19:48.720 --> 0:19:51.160 is up a half percent, or forty six cents eighty 0:19:51.240 --> 0:19:54.480 six dollars nineteen cents of barrel and looking at that 0:19:54.600 --> 0:19:57.520 dollar strength once again, the euro pretty much at parody 0:19:57.560 --> 0:20:00.600 against the dollar at one point zero zero zero around nine. 0:20:01.320 --> 0:20:08.480 This is Bloomberg and Bloomberg Daybreak is brought to you 0:20:08.560 --> 0:20:11.760 by Peapack Private Wealth Management. Peapack Private Wealth Management knows 0:20:11.800 --> 0:20:14.120 that the portfolio is more than a collection of assets, 0:20:14.160 --> 0:20:16.679 It's a path to your future. Visit Peapack Private dot 0:20:16.760 --> 0:20:23.760 com and begin your financial legacy today. Broadcasting live from 0:20:23.840 --> 0:20:27.639 the Bloomberg Interactive Broker Studio in New York, Bloomberg E 0:20:27.720 --> 0:20:31.639 Loving Freed to Washington, d C, Bloomberg on to Boston, 0:20:31.760 --> 0:20:35.160 Bloomberg one O six one to San Francisco, Bloomberg non 0:20:35.240 --> 0:20:38.320 sixteen to the Country Sirius XM to A one nineteen 0:20:38.480 --> 0:20:41.600 and around the globe the Bloomberg Business apt and Bloomberg 0:20:41.680 --> 0:20:50.840 Radio dot Com. This is Bloomberg Daybreak. It's five thirty 0:20:50.880 --> 0:20:53.120 on Wall Street. Good morning. I'm Nathan Hagar and I'm 0:20:53.160 --> 0:20:56.080 Karen Moscow. We are just about four hours away from 0:20:56.080 --> 0:20:58.040 the open of US trading. Let's get you up to 0:20:58.119 --> 0:20:59.560 date on the news. You need to know what this 0:20:59.600 --> 0:21:03.000 show or US futures are lower following a late day 0:21:03.119 --> 0:21:06.040 rally on Wall Street and US tenure reel yields rose 0:21:06.119 --> 0:21:09.520 to the highest, and the SNP five hundred snapped two 0:21:09.560 --> 0:21:12.320 day losing streak after sledding much of last week. The 0:21:12.400 --> 0:21:15.000 market uncertainty comes as the Fed cakes off it's to 0:21:15.280 --> 0:21:18.080 day policy meeting at The question now is whether the 0:21:18.160 --> 0:21:20.720 Central Bank hikes interest rates by seventy five or a 0:21:20.840 --> 0:21:24.479 hundred basis points. William Houston, as chief investment officer at 0:21:24.560 --> 0:21:28.560 Bay Street Capital, as soon as that trend reversed this course, 0:21:28.800 --> 0:21:31.280 you know, we stopped seeing this inversion in the yield 0:21:31.359 --> 0:21:34.800 curve where investors are being actually rewarded at a higher 0:21:34.920 --> 0:21:38.160 rate on these sorter term yields as opposed to longer 0:21:38.320 --> 0:21:40.560 term reels. As long as that's the case, Yeah, equity, 0:21:40.560 --> 0:21:44.320 they're going to perform poorly. William Houston with Bay Street Capital, 0:21:44.480 --> 0:21:47.520 thanks the Federal raise rates seventy five basis points tomorrow. 0:21:47.640 --> 0:21:51.200 An economists recently surveyed by Bloomberg degree trains for life 0:21:51.240 --> 0:21:53.760 coverage to that Fed decision tomorrow on a special edition 0:21:53.800 --> 0:21:56.800 of Bloomberg Surveillance starting at one thirty pm Wall Street 0:21:56.840 --> 0:21:59.760 time on Bloomberg Radio and television. The Fed is the 0:21:59.800 --> 0:22:03.040 only central bank making policy decisions this week Karen and Europe. 0:22:03.080 --> 0:22:06.359 Sweden central Bank high rates a larger than expected hundred 0:22:06.440 --> 0:22:09.040 basis points. Over in Asia, the Bank of Japan will 0:22:09.040 --> 0:22:11.880 have to decide whether to continue monetary stimulus this week 0:22:11.920 --> 0:22:14.479 after inflation accelerated to the fastest pace in more than 0:22:14.560 --> 0:22:17.680