Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 1: The powerful storm off Florida's Gulf Coast has our attention
Speaker 1: this morning. It is prompting a red headline just crossing
Speaker 1: the Bloomberg Terminal. Hurricane Edalia has been upgraded to category
Speaker 1: four strength. That is, according to the National Hurricane Center,
Speaker 1: top wins one hundred and thirty miles an hour, and
Speaker 1: Dahlia is expected to make landfall later this morning. Florida
Speaker 1: Governor Ronda Santis is warning golf residents.
Speaker 3: This is a crunch time right now.
Speaker 4: We're going to get hit with the major hurricane.
Speaker 1: And Bloomberg Meteorologist Rob Carolyn is monitoring this storm for us.
Speaker 3: What is the latest, Rob, Nathan and Kareny.
Speaker 5: Dahlia continues to strengthen as it tracks towards the Big
Speaker 5: Bend area of Florida. It looks like it'll make landfall
Speaker 5: later this morning, somewhere between Appalachicola and cedar Key. The
Speaker 5: good news is this area is not very heavily populated.
Speaker 5: The bad news is it's kind of shallow, so the
Speaker 5: storm surge is going to cause some signifying damage. And
Speaker 5: that storm surge is going to be ten to fifteen feet.
Speaker 5: We also have tornado watches up along the path of
Speaker 5: the storm that'll continue throughout the day up into North Florida,
Speaker 5: eventually South Georgia. It looks like we're going to see
Speaker 5: a pote storm system this morning. It won't really start
Speaker 5: to weaken a whole lot until lead to this afternoon.
Speaker 1: So what can we expect from the storm once that happens, Rob, Well.
Speaker 5: We'll see a switch from the problems with the storm
Speaker 5: Serve this morning on high winds to heavy rainfall lead
Speaker 5: to the saft noon as the storm works its way
Speaker 5: up towards South Georgia and eventually into the eastern Carolinas.
Speaker 5: Those areas are more at risk for heavy rain, though
Speaker 5: there will be some gusty winds, particularly along the Carolina coast.
Speaker 5: Once the storm system moves off shore tomorrow, We'll be
Speaker 5: keeping on whether or not it tracks out to sea
Speaker 5: or tries to move towards the south and east.
Speaker 1: All right, Bloomberg Meteorologists Rob Carolin, and we'll be checking
Speaker 1: back with you on hurricane and daily. Yet throughout the morning.
Speaker 2: Well, it looks like the hurricane could have a financial
Speaker 2: impact on one of the world's richest people. And we
Speaker 2: get this story from Bloomberg's John Tucker, John and Karen Warren.
Speaker 6: Buffett's Berkshire Hathaway earlier this year made a bath at
Speaker 6: Florida's reinsurance market would deliver huge premiums with minimal losses.
Speaker 6: The firms exposed to as much as fifteen billion dollars
Speaker 6: of losses in the event of a major storm. Auji Jane,
Speaker 6: the vice chair of insurance operations, said at Berkshire's investor
Speaker 6: event in May that they had a very unbalanced portfolio.
Speaker 6: What that means, he said at the time, if there's
Speaker 6: a big hurricane in Florida, we will have various substantial losses.
Speaker 6: Hurricane Adeli is about to test Buffett's bet, with months
Speaker 6: of potential storms still left this season. I'm John Tucker,
Speaker 6: Bloomberg Daybreak.
Speaker 1: All right, John, thank you. Turning to markets now, stocks
Speaker 1: are coming off their biggest gains since June, while bond
Speaker 1: yields retreat. It's after the latest economic reports bolstered speculation
Speaker 1: the FED is nearing an end to raising rates. Today,
Speaker 1: the Fed and investors will have more data to digest,
Speaker 1: including second quarter gross domestic product. Bloomberg's Vinians del Judice
Speaker 1: reports and.
Speaker 7: It's initial estimate. The government peg US economic growth at
Speaker 7: a healthy two point four percent, up from last year's
Speaker 7: first quarter pace. Bloomberg Canomic says the economy's momentum carried
Speaker 7: into the third quarter. However, high interest rates could cause
Speaker 7: the US to falter late this year. Bloomberg Economics as
Speaker 7: a recession could be in the cards. Also today, in
Speaker 7: the US Payroll Process or ADP issues data on August
Speaker 7: business hiring, while the National Association of Fieldtur's reports on
Speaker 7: July penning home sales. There's trade data too for July.
Speaker 7: Finny Dell Judais Bloomberg day.
Speaker 2: Break, Finny, thanks well. There's plenty of economic data out
Speaker 2: of Europe this morning. The Consumer Price Index and a
Speaker 2: key part of Germany, indicates that country's overall inflation is
Speaker 2: accelerating and inflation quickened again in Spain. Consumer prices there
Speaker 2: rose two point four percent in August from a year earlier.
Speaker 3: That's up from two point one percent the prior month.
Speaker 1: On the earnings front, Karen shares of HP are down
Speaker 1: nearly nine percent in early trading.
Speaker 3: The companies reducing its.
Speaker 1: Full year cash flow and profit outlook. HP says a
Speaker 1: rebound in the market for personal computers will take longer
Speaker 1: than expected. We hear from another major player in the
Speaker 1: tech space later today, Salesforce reports earnings after the closing bell,
Speaker 1: and we're.
Speaker 2: Also following the crypto space this morning. This after Grayscale,
Speaker 2: when a key cored battle it's pushed to launch a
Speaker 2: bitcoin exchange traded fund. The victory brings to the crypto
Speaker 2: industry closer to tapping billions of dollars from everyday investors.
Speaker 2: In Bloomberg'skaylee Lines breaks down what it all means for
Speaker 2: the sector.
Speaker 8: Grayscale has moved closer to launching a spot based bitcoin
Speaker 8: ETF in the US and what is potentially a watershed
Speaker 8: moment for the crypto industry, a DC Circuit court handing
Speaker 8: them a victory when a three judge appellate panel overturned
Speaker 8: a decision by the SEC to block the ETF. They
Speaker 8: said in the ruling this is a quote. The denial
Speaker 8: of Greyscale's proposal was arbitrary and capricious because the Commission
Speaker 8: failed to explain its different treatment of similar products. In
Speaker 8: the absence of a coherent explanation, This unlike regulatory treatment
Speaker 8: of products is unlawful. Basically, they're poking a hole in
Speaker 8: the SEC's argument that a futures bitcoin ETF, which already
Speaker 8: has been approved in the US, should be treated differently
Speaker 8: than a spot based product.
Speaker 2: Bloomberg Canlee Sis Knows Grayscale Investments Bitcoin trust search seventeen percent.
Speaker 1: Yesterday, and Apple said its biggest product event of the year.
Speaker 1: Here's Bloomberg's Charlie Pellett.
Speaker 9: The date is September twelfth, and Apple will unveil the
Speaker 9: iPhone fifteen line and next generation smartwatches. The company announced
Speaker 9: the plans on its website and via email under the
Speaker 9: tagline Wonderlust. The presentation will be streamed online at ten
Speaker 9: am Pacific, with an accompanying event at Apple's Steve Jobs
Speaker 9: Theater in Koopertino. Apple is under more pressure than usual
Speaker 9: with this iPhone launch. Its sales of slip for three
Speaker 9: straight quarters as the company contends with shaky demand for
Speaker 9: smartphones and other devices in New York. Charlie Pellett Bloomberg Daybreak.
Speaker 2: All right, Charlie, thanks time now for a look at
Speaker 2: some of the other stories making news around the world.
Speaker 2: For that, we're joined by Bloomberg's Amy Morris Amy, good morning.
Speaker 10: Good morning, Karen. President Biden's administration is criticizing New York
Speaker 10: York City and the state for how they've handled the
Speaker 10: migrant crisis. Homeland Security Secretary Alejandro new Yorkist wrote letters
Speaker 10: to Mayor Eric Adams and Governor Kathy Hochel pointing out
Speaker 10: structural and operational issues following an assessment of the program. Now,
Speaker 10: Mayor Adams and Governor Hokel appear to be placing the
Speaker 10: blame on each other. Adams to HOCl to task publicly
Speaker 10: during his talk at NYU Law School just yesterday.
Speaker 7: Governor Hockle has been a partner on subway safety, on crime,
Speaker 7: on a host of things.
Speaker 3: But I think this issue, I think the governor is wrong.
Speaker 11: Every county in this state should be part of.
Speaker 10: This local rejected that request last week, noting a nineteen
Speaker 10: eighty one agreement between the city and a homeless group
Speaker 10: that the city would provide shelter to anyone who needs it,
Speaker 10: but she says that only applies to New York City
Speaker 10: and not the other counties in the state. A newly
Speaker 10: filed lawsuit is asking a judge to deem former President
Speaker 10: Donald Trump ineligible for the twenty twenty four ballot in
Speaker 10: New Hampshire, The Boston Global Sports The lawsuit filed by
Speaker 10: Republican John Anthony Castro of Texas argues that Trump is
Speaker 10: ineligible to hold public office because he quote provided aid
Speaker 10: or comfort to the insurrectionists from the January sixth attack
Speaker 10: on the Capitol. Castro also filed a federal lawsuit in
Speaker 10: Florida back in January seeking to have Trump disqualified, but
Speaker 10: that lawsuit was dismissed. A powerful member of Congress has
Speaker 10: announced a tough fight for his health. President Biden has
Speaker 10: called Representative Scalise to wish him a swift recovery. House
Speaker 10: Speaker Kevin McCarthy says he's talked with Scalice, who remains
Speaker 10: in good spirits. Scalie is often mentioned as a potential
Speaker 10: successor to House Speaker Kevin McCarthy.
Speaker 3: Global News twenty.
Speaker 10: Four hours a day, powered by more than twenty seven
Speaker 10: hundred journalists and analysts in more than one hundred twenty countries.
Speaker 10: I'm Amy Morris, and this is Bloomberg.
Speaker 2: Karen all right, Amy, thank you, and it's time now
Speaker 2: for the Bloomberg Sports Update.
Speaker 3: And here's John Stashaur John good Morning.
Speaker 4: Jaran and hitter. In San Francisco, the Giants Alex Cobb
Speaker 4: had it going with two outs in the ninth inning,
Speaker 4: Spencer Steer of the Reds broke it up with a double.
Speaker 4: Com threw one hundred and thirty one pitches all the
Speaker 4: way on a one hit of The Giants beat the
Speaker 4: Reds six to one. The Orioles hosting the White Sox,
Speaker 4: one one, seventh and eighty two pitch round ball. They
Speaker 4: shit down the right field line. It'll score one.
Speaker 11: It'll store two. Henderson flying around.
Speaker 2: Third, he will make it a.
Speaker 3: Three run double for Anthony Suntine.
Speaker 2: Dare breaks the tie.
Speaker 4: Ubaal had the call and the Oriols would go on
Speaker 4: to win nine to three. They've got a two and
Speaker 4: a half game lead on Tampa Bay in the AL East.
Speaker 4: There's now a three way tie for first in the
Speaker 4: AL West, as Seattle lost for just the second time
Speaker 4: in the last fourteen games, beaten by Oakland three to one,
Speaker 4: now tied for first with Texas and Houston. The Astros
Speaker 4: one in Boston six to two. The Nationals won in
Speaker 4: Toronto five to four. Baseball Players Association and asking for
Speaker 4: a review of safety protocols after that incident in Denver
Speaker 4: on Monday, when fans came onto the field and went
Speaker 4: to Atlanta Star outfield Ronald Acunya Junior, one of them
Speaker 4: embracing Acunya, another knocking him over. Both were arrested. Last Friday,
Speaker 4: at a White Sox game in Chicago, two female fans
Speaker 4: were wounded in a shooting. US Ryder Cup captain Zach
Speaker 4: Johnson filling out his roster with Sam Byrn, Ricky Faller,
Speaker 4: brooks Kepta, Colin Morrikawa, Jordan Speeth, and Justin Thomas johnstsh
Speaker 4: Award Bloomberg.
Speaker 11: Sports from coast to coast, from New York to San Francisco,
Speaker 11: Boston to Washington, d C. Nationwide on Sirius Exam, the
Speaker 11: Bloomberg Business app in Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 11: Good morning, I'm Nathan Hager.
Speaker 1: We continue to keep an eye on Hurricane Adalia, now
Speaker 1: a Category four storm aiming at Florida's Big Bend, where
Speaker 1: the Peninsula meets the Panhandle. President Biden says he's keeping
Speaker 1: an eye on the storm.
Speaker 7: We're worried about that.
Speaker 9: The surge, the ocean surge, we don't know exactly.
Speaker 4: Hour to hour.
Speaker 1: We're watching this also watching, of course, Bloomberg meteorologist Rob Carolyn,
Speaker 1: who joins me. Now, Rob, it seems as though this
Speaker 1: storm is gaining strength and speed really quickly.
Speaker 3: What's the latest track.
Speaker 5: Well, the track now, Nathan, as of the five am
Speaker 5: statement from the Hurricane Center has the storm moving towards
Speaker 5: the north northeast at eighteen miles an hour. It's about
Speaker 5: sixty miles due west of Cedar Key, Florida. It is
Speaker 5: going to make landfall later this morning in Appalachi Bay.
Speaker 5: The good news about that area is it's not overly populated.
Speaker 5: There's a big National Wildlife preserve there. Looks like that's
Speaker 5: where the worst of the winds in storm surge will
Speaker 5: go inland this morning. But such a powerful hurricane with
Speaker 5: winds of one hundred and thirty miles an hour, and
Speaker 5: it may strengthen a little bit more before it makes landfall.
Speaker 5: It's going to be a dangerous storm as it goes
Speaker 5: inland into North Florida. The Severe Storm Prediction Center has
Speaker 5: a tornado watching effect for much of Central Florida and
Speaker 5: the Big Bend area that will extend later today on
Speaker 5: up into North Florida and South Georgia. Nathan, storm surge
Speaker 5: should be about ten to fifteen feet in that portion
Speaker 5: of the Big Bay Big Bend area this morning. The
Speaker 5: bay there is fairly shallow, so they think the water
Speaker 5: is going to be able to extend fairly far inland
Speaker 5: and that will certainly cause some issues. Look for gus
Speaker 5: over one hundred and thirty miles an hour as the
Speaker 5: storm goes inland, probably between about seven and eight o'clock
Speaker 5: this morning, and then it looks like the big threat
Speaker 5: then becomes heavy rains which will be spreading from North
Speaker 5: Georgia into the Carolinas along the path of the storm,
Speaker 5: at least four to eight inches of rain, and that
Speaker 5: is certainly going to lead to lots of flesh flooding
Speaker 5: across North Florida Southern Georgia this morning and then on
Speaker 5: up into eastern Georgia and the Carolinas later today and tomorrow.
Speaker 1: So it's not just that Big Bend area of Florida
Speaker 1: where we're expecting a lot of impacts. When we think
Speaker 1: about the storm surge, Rob you mentioned that some of
Speaker 1: the worst of it is going to be in that
Speaker 1: less populated but shallow area. Are there other parts of
Speaker 1: the Florida Gulf Coast that need to be concerned about
Speaker 1: storm surge, even if it's not dire levels is ten
Speaker 1: to fifteen feet, but possibly a more shallow, potentially storm surge.
Speaker 5: North of Tampa Bay, there's going to be a storm
Speaker 5: surge of about four to eight feet, Nathan to the
Speaker 5: west of Apalachicola. There's not going to be a problem
Speaker 5: with the storm surge since the winds are offshore and
Speaker 5: it's actually blowing the tide out into the Gulf. But
Speaker 5: it's those areas north of Tampa Bay all the way
Speaker 5: to about Apalachicola that are going to be problems. Again,
Speaker 5: about a four to eight foot storm surge, I would
Speaker 5: say south of cedar Key, and then it's ten to
Speaker 5: fifteen feet between cedar Key and Apalachicola.
Speaker 1: Why is this storm seeming like it's building so much
Speaker 1: strength so quickly. We've heard warnings from the National Hurricane
Speaker 1: Center that this storm is unlike anything that they've really
Speaker 1: seen before.
Speaker 9: Why is that?
Speaker 5: Well, I disagree with that statement because Katrina was a
Speaker 5: Category one storm on the east coast of Florida in
Speaker 5: two thousand and five. Thirty six hours later, it was
Speaker 5: a Category five. So we have been seeing these storms
Speaker 5: get stronger much more quickly in the last twenty years,
Speaker 5: and it's due to the fact that the ocean are
Speaker 5: much warmer right now than they were twenty years ago.
Speaker 5: That's what's fueling this system. This storm has been moving
Speaker 5: over waters the last thirty six hours that are at
Speaker 5: ninety degrees fahrenheit that extend down to a depth of
Speaker 5: three or four hundred feet. That's like rocket fuel for
Speaker 5: a hurricane. They breed on water temperatures above eighty degrees
Speaker 5: and every degree you get above eighty is just fuel
Speaker 5: on top of the fire for these storms. That's why
Speaker 5: we're seeing them intensify so quickly, and it's been going
Speaker 5: on for a number of years now. We had it
Speaker 5: happen with Irma and Maria back several years ago. Katrina
Speaker 5: do the same thing. This has been the trend with
Speaker 5: these storms to develop very quickly and get very strong
Speaker 5: in a hurry.
Speaker 1: Does that mean that we could see even further intensification
Speaker 1: before this storm makes landfall a little bit.
Speaker 5: The core of the storm is still over water, but
Speaker 5: a lot of its circulation now is over the Florida
Speaker 5: Peninsula or Panhandles. So I don't expect rapid deepening, but
Speaker 5: I certainly could see it at you with winds of
Speaker 5: about one hundred and thirty five or one hundred and
Speaker 5: forty miles now by the time it makes landfall, which
Speaker 5: would put it on the same order as Hurricane Hugo
Speaker 5: which Charleston in ninety nine.
Speaker 9: Wow.
Speaker 1: And of course we are watching just daily. There are
Speaker 1: a number of other named storms of the Atlantic right now.
Speaker 1: What other systems are you keeping an eye on that
Speaker 1: could potentially have an impact on the US.
Speaker 5: None of them other than some big star Franklin is
Speaker 5: passing west of the island of Bermuda. It'll bring them
Speaker 5: tropical storm force Windnesday, but it stays out in the Atlantic.
Speaker 5: There's a coal front dropping down from the north and east, Nathan,
Speaker 5: that eventually is going to push both of these storms
Speaker 5: out into the Atlantic, a tropical depression number eleven. No
Speaker 5: threat to anyone. That's a fish storm out in the
Speaker 5: south central Atlantic.
Speaker 1: This is Bloomberg Daybreak Today, your morning brief on the
Speaker 1: story's making news from Wall Street to Washington and beyond.
Speaker 2: Look for us on your podcast feed at six am
Speaker 2: Eastern each morning, on Apple, Spotify, and anywhere else you
Speaker 2: get your podcasts.
Speaker 1: You can also listen live each morning starting at five
Speaker 1: am Wall Street Time, on Bloomberg eleven three to zero
Speaker 1: in New York, Bloomberg ninety nine to one in Washington,
Speaker 1: Bloomberg one oh six to one in Boston, and Bloomberg
Speaker 1: nine sixty in San Francisco.
Speaker 2: Our flagship New York station is also available on your
Speaker 2: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.
Speaker 1: Listen coast to coast on the Bloomberg Business app, serious
Speaker 1: XM Channel one nineteen, the iHeartRadio app, and on Bloomberg
Speaker 1: dot com.
Speaker 3: I'm Nathan Hager and I'm Karen Moscow.
Speaker 2: Join us again tomorrow morning for all the news you
Speaker 2: need to start your day right here on Bloomberg Daybreak