Bloomberg Audio Studios, Podcasts, radio News. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today, Karen.
Stocks are coming off their worst week since March of last year after another disappointing jobs report revived concerns the economy is cooling and the Fed is moving too slowly to rescue it. But speaking with Bloomberg's David Gura over the weekend of the Texas Tribune Festival, Treasury Secretary Janet Yellen said she is not yet worried overall.
I would say for the US the kinds of metrics that we would monitor that would summarize risks, whether it's asset valuations or the degree of leverage. Things look good. There are not I don't see red lights flashing.
Treasury Secretary Janet Yellen, speaking with Bloomberg's David Gurra, she reiterated her view that the US economy has reached a soft landing, even as job growth weekends.
Well, Nathan, traders will now be keeping a close eye on the next key economic data point. On Wednesday, we get the Consumer Price Index report for the month of August, and we get more from Bloomberg Market's Live strategist Mary Nicola.
It was almost up until a labor market report that the CPI was dismissed, that labor market was going to give us an inclination of what the Fed was going to do. And of course now that that's not the case, really the onus goes back on CPI. If you get a weaker number, then obviously it could precipitate expectations of a jumbo rit cut of fifty basis points because of the fact that it tells you that the FED should
no longer be concerned about inflation. However, you get an upside surprise, and then it makes the FED a little bit more cautious because of the fact that the inflation genie is not fully back in the bottle.
Bloomberg Market's Live strategist Mary Nicola says, a day after we get the CPI, investors will get another infla reading on Thursday with producer prices.
For the month of August when Asia karen deflation risk is rising in China. We get more on that from Bloomberg Daybreak Asia anchor Brian Curtis and Hong Kong.
China's consumer prices rose less than expected. Last month, it's more data showing that households are simply not spending. The CPI gained six tenths of a percent from a year earlier, compared to a forecast of seven tenths of a percent. In the meantime, factory gate price has slid one point eight percent from a year ago. Economists had expected a drop of one point five percent. Former Central Bank Governor E Gung has called on policymakers to fight deflationary pressures
and do it right now. In Hong Kong. Brian Curtis, Bloomberg Radio, All.
Right, Brian, thank you. Now let's get the latest in the presidential race. Kamala Harris and Donald Shrump are getting ready for their first and for now only debate tomorrow night in Philadelphia, and the race is air tied with fifty seven days until the election. The latest New York Times Siena College pull has Trump in the lead over Harris among registered voters by just one percentage point forty eight percent forty seven percent. Nikki Hayley was the last
Republican to challenge Trump in the primary. She says Harris is vulnerable.
Tomorrow night, you look at Kamala Harrison. It's quite remarkable. She never had a debate, she never had a primary, she never had anyone vote for her, and they basically took her and in forty eight hours they put her back out there and she was this whole new candidate.
And following the debate, Harris plans to travel to key battleground states, including North Carolina on Thursday. That state's Democratic governor, Roy Cooper says he knows the race is tied.
There's no question about it.
It's close here in North Carolina it always is.
This was Biden Harris's closest loss.
In twenty twenty, only one point three percent. Roy Cooper and Nikki Haley were both guests on CBS's Face the Nation, which can be heard Sundays on Bloomberg Radio. Our coverage of the ABC News presidential debate begins tomorrow night at eight pm Wall Street Time on a special edition of Balance of Power on Bloomberg Radio and Television.
In company News, Karen, it is a big day for Apple. The company unveils its iPhone sixteen today. While the new iPhone line will be the focus of the product launch, its slumping wearable device business is poised to get a boost as well. For the first time since the end of twenty twenty two, Apple is unveiling major changes to
the Apple Watch and air Pod earbuds. All three versions of the smart watch, the se the Standard series line, and the Ultra, will be upgraded, and the two lower end air Pods will get the most significant update in their history.
Well Nathan Shares a Boeing up three point four percent this morning. The planemaker and its largest union say they've hammered out a landmark deal to potentially avoid a strike. Begin more from Bloomberg's Doun Krisner.
The breakthrough came after a marathon marketing session. The current contract expires at midnight September twelfth, and a possible strike is looming. The deal includes a twenty five percent wage increase over four years, as well as a commitment to build Boeing's next plane in the Seattle area. There are sweeteners if workers accept the accord, and immediate eleven percent pay bump, along with a three thousand dollars bonus to
be paid at the end of the month. Boeing CEO Kelly Ortberg has pledged to reset long contentious labor relations, but it's too soon to know if workers will go along or buck their leadership. In New York, I'm Doug Prisner, Bloomberg Radio.
Thanks Doug. Circle K is trying to keep its takeover bid for seven eleven alive. The Canadian owner of Circle K, Kushtard, has told Japan's Seven and I Holdings it wants to work together on a friendly takeover after the Japanese convenience store operator pushed back on Kushtard's initial proposal. Seven and I is the operator of seven to eleven shops. It rejected Kushtard's prices too low in front with regulatory risk, and made clear that price was the issue, not the
idea of an acquisition itself. A potential deal would create a global convenience store behemoth with more than one hundred thousand stores. It would represent the biggest ever foreign takeover of a Japanese company.
And Nathan discount retailer Big Losses found for bankruptcy Big Losses among a number of troubled retailers that have been hurt by a slowdown in home spending. Collins and LL Flooring Holdings also filed bankruptcies in recent months. Time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's John Tucker, John, Good Morning and Good Morning, Karen.
The White House today is taking steps to lower mental healthcare costs. We get more of this report from Bloomberg's Jeff Bellinger.
New guidelines seek to ensure that Americans have the same access to mental health and substance use benefits that they have two physical health benefits. The proposal seeks to build on the two thousand and eight Mental Health Parity and Addiction Equity Act, which required insurance companies to provide the same access to mental and physical treatment when the bill passed, it did not require some non federal government health plans, like those offered to state and local government employees, to
comply with its requirements. Jeff Bellinger, Bloomberg Radio.
Republican lawmakers accused the Biden administration of lying to Americans and sacrificing the safety of US soldiers during the twenty twenty one Afghanistan withdrawal. The accusation comes in a report that seeks to implicate Vice President Kamala Harris before the election.
Is as President Joe Biden's team misled and in some instances directly lied to the American people at every stage of the Afghanistan withdrawal a gun and killed three Israelis at a terminal on Jordan's border with the Israeli occupied West Bank on Sunday. It's the first such incident since the Gods of War began in October. Israel's army sent the gunman accused access the allenby Pridge Crossing also known as the King Hussain Bridge from the Jordanian side, fired
shots before he was killed by Israeli guards. Jerry selection is set to begin today in the federal trial of three former Memphis police officers charged with violating the civil rights of Tyree Nichols. He's the twenty nine year old man whose fatal beating last year was caught on police cameras,
also triggering protests and calls for police reform. A storm system in the Gulf of Mexico forecast to strengthen into a hurricane early this week, bringing heavy rain, damaging winds, and potentially life threatening storm surges departs of the Texas and Louisiana coastlines. If it continues to strengthen, it'll be named tropical storm France scene and a good Samaritan with a familiar name helped to save a choking man at the Hampton Beach Lobster roll eating competition in New Hampshire Sunday.
Governor Chris Sanunu was at the event. He says he was the first to notice a contestant having trouble breathing. The Governor performed the Heimlich maneuver before first responders took over and helped free the stuck piece of lobster.
She went right back to the contest for who would I couldn't believe he had another seven lobster after that, right down the gullet.
Governor Snuno speaking there to wm R Global News twenty four hours a day, whatever you want it with Bloomberg News. Now, I'm John Tucker and this is Bloomberg Nathan and.
Karen another seven lobster roswell, John, thank you time now for the Bloomberg Sports Update with John stash Hour.
John, Good morning, Good morning Karen.
It was the Giants one hundred season opener and one of their worst. They left the Vikings score in the first quarter. They game a ninety nine yard drive in the second. Minnesota scored again early in the third. One later, the Giants had the ball deep in their own territory Spike's Lee twenty one to six.
Jones holy threw it to ben Gekle touchdown. That's book four touchdown in Andrew ben Gikle's career, and he read Daniel Jones like a book, and that book had a happy ending seven to six Minnesota.
On k Fan twenty eight six the final. Many of the fans headed for the exit early, and the ones that stuck around spend much of their time booing the Giants effort, especially in left offensively under one hundred yards in the first half. Daniel Jones severely outplayed by the Viking Sam Darnold, the x jeed, who completed his first twelve passes two for touchdown. Jones at his last two seasons has only two TD passes, eight interceptions, and only one victory the Patriots and a surprise one for new
coach to Rod Meos sixteen to ten at Cincinnati. The Commanders lost at Tampa Bay thirty seven to twenty. Dallas won thirty three seventeen at Cleveland after Dak Prescott got a new sixty million dollars a year contract Miami on a last second field goal by Jacksonville Tyreek Hill had an eighty yard catch after getting stopped for speeding and getting handcuffed on his way to the stadium. Last night overtime,
Detroit beat the Rams twenty six to twenty one. Game left in Week one that's the Jets and forty nine Ers tonight ed Reigley Cubzel. The four Heads had only seven hits of the three game series, where they scored twice. In the first Name North Garrett Cole topped the Yankees two to one, a game with no scoring after the top of the second. The Mets nine game winning streak end in Cincinnati scored two of the ninth to win three to one. US Open final. Yannick Sinner showed why
he's ranked number one, straight sets over Taylor Fritz. Still, no American man has won of Grand Slam in twenty one years. John Stashiellward, Bloomberg Sports, Karen Nathan.
Coast to Coast on Bloomberg Radio nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app.
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Treasury Secretary Janet Yellen is reiterating her view that the US economy has reached a soft landing per comments followed last week's stock sell off in months of soft jobs data. In an interview with Bloomberg's David Gura at the Texas Tribune Festival in Austin, Yellen also underscored the importance of US engagement with China. We now want to bring you part of their discussion.
But when I look at it, the economy broadly speaking, is very strong growth deep into a recovery. With the economy operating it basically at full employment. We're still seeing three percent growth roughly over the last year, and it continues consumer spending, investment, spending, solid, inflation coming down substantially, and I believe headed back to the FIDS two percent goal. And what I describe as a strong, solid labor market. Clearly, the pace of job creation has gone down, and that's
something we should expect. The unemployment rate has moved up somewhat off it's very low level of I think it got down to three point four percent, but it's not common in the United States to have unemployment rates in the four and it's what I think of is a employment economy.
You say, many people would call that a soft landing. So that is the FED being able to get high inflation under control without triggering a deep downturn or recession.
That's right.
Many people would say that. Do you say that as well? Do you think that it's Are you fairly confident that we're going to get done?
I think what we're seeing now is consistent with that. While there are risks, it really has been amazing to be able to get inflation down as meaningfully as we have. And I'd say also, wages are going up at a decent clip, and real wages adjusted for inflation are rising, and they well, a lot of especially low income households, are under stress. Aspects of the cost of living for them are genuinely challenging, and it's our administration's top priority
to try to address that. It's still true that wages have gone up since before the pandemic in real or inflation adjusted terms, and continuing to rise at a decent basic.
What is your secret as you think of embracing this role as a diplomat? What has made you particularly i'll say particularly good or have the.
Facility for well, well, thank you for the compliment. I've seen this sort of diplomatic initiative, both with China and with other countries as really critical because we need to work together collaboratively to solve every global problem that we face, from climate change to Russia's aggression, to issues that we
have with China. And during the previous administration, I'm sorry to say, our alliance is fred and you know, it was America first, and that should really never be America alone, and it was necessary to rebuild alliances to work with allies around the world. And that's been a broad that's been a broad effort, and I think we really have succeeded.
And perhaps we'll talk about this, but when Russia attacked Ukraine, we had an alliance that came together in a matter of a day or two to strongly counter what Russia was doing. We've stayed together and we've worked together to address and this is broad effort G twenty or larger to address climate change and problems afflicting poor countries around the world, to address pandemics, created a pandemic fund knowing the properly be another pandemic unfortunately, and we need to
be better prepared than we were for COVID. So on many different fronts, we've tried to rebuild alliances, and with respect to China, relations had really deteriorated during the pandemic and we went for a period of close to two years without any meaningful senior level contact between US and Chinese, and that was really a very dangerous state of affairs. President Biden met with President she In Bali. I was at that meeting, and they agreed that it was important to re establish relationships.
And that was the Secretary of the US Treasury Janet Yellen, speaking with Bloomberg's David Gera. You can listen to their entire interview on the Bloomberg Talks podcast. Subscribed to hear all our high profile conversations on Apple, Spotify, or anywhere else you get your podcasts. And David is here with us now for more on his conversation with the US
Treasury Secretary. David, good morning, thanks for being here. Wide ranging discussion, but a lot of focus on the Treasury secretary saying that a soft landing has been achieved even with job growth slowing. How does she square that circle?
Yeah, she said in that bit of tape that you played, and we had our conversation a day after those jobs numbers came out. She feels very confident that we're getting back to a level that would be considered more normal in regular times. And all the while we did talk about the trend that we've seen over the course of the year. So obviously, if you look at the three month average of what we've seen, it is dramatically lower in those non farm payrolls than what we had at
the beginning of this year. She acknowledges that I asked her if there is any chance or if she sees any risk of us getting a negative print in those numbers by the end of the year, and she didn't bite it that question. But she's a labor economist by training,
of course, Nathan, this is her bread and butter. And in a conversation that we had there on stage and the day before when I accompanied her on a tour of a big IRS facility in Austin, right after those numbers came out, she continued to express confidence in the
health or the strength of the labor market. So she acknowledges that there are those who are fearful that we're headed, perhaps to her higher unemployment, but at this point feels confident that things are indeed going in the right direction.
You have to think that the Treasury Secretary was cognizant of the selloff happening after those numbers came out, and perhaps trying to soothe the markets to some extent. Was there some of that involved.
Do you think she was projecting calm and she speaks in a very matter of fact and careful way. You heard that in that tape as well. Another question that I asked her over the course of that hour long conversation is from her vantage, does she see pockets of risk elsewhere in the financial system? And she brought up money market funds, which she, under her stewardship of the Financial of ESSOK, the kind of overarching financial regulation board
has worked to tackle. She talked about cybersecurity, so she said she saw no flashing red lights when she looks at the financial system broadly. But I think you're right, Nathan. I think she was actively trying to assure the markets there.
Now, although interesting to hear say no flashing lights a day after we did see that big sell off, the worst sell off since the last time we saw flashing lights in the financial system around the time of the regional bank crisis.
We talked about that as well. And there are a couple of moments over the course of her tenure when she and her colleagues at Treasury, colleagues around the world have had to get together and deal with crises. Certainly the war in Ukraine is one of them. But she did talk about that kind of compressed moment when we saw the collapse of First Republic. There was so much concern about contagion and they had to get together, so it was safe. I didn't introduce the subject of those failed banks.
She did.
It's safe to assume it still feels quite raw for her and is kind of a signal moment in her career. I mean, it was so wonderful to have so much time with her. She I kind of off handedly asked her, if there's any chance that she remains in office after January twenty fifth, If you know Kamala Harris would be reelected, would she stay in the job. She didn't bat that away entirely, but made it seem like she probably she
probably would be done. But it was a moment to both look ahead to what she hopes to accomplish here in these next few months presumably of her tenure, her final months of her tenure, but also back on some of those crisis moments, including what happened with those regional banks.
Yeah, I did want to ask you if it felt more like an exit interview to speak with Treasury Secretary Yellen at this point, or whether she is thinking about perhaps staying on a little bit longer. Is she running through the tape, or is this sort of the end for her?
She made it seem like she was. I mean, the interview was an hour and we had two or three minutes left, and I said, you have this to do. List what's on and give me a couple of things, and she gave quite a long answer of things that she hopes to accomplish. But it gave me more perspective on just the breadth of that job, what you have to do when you are the Treasury Secretary. And it's something that she expressed to me she's had to learn
along the way. She is obviously incredibly accomplished and has had all of these key jobs, of course, the chief Economic Advisor to Preston Clinton, Federal Reserve Vice Chair and chair head of the San Francisco Federal Reserve Bank, and now the Treasury secretary, all of these new and novel she had trained academic economists who has really embraced and
found her way in each of these roles. She did not make it seem like that she'll be resting on her laurels and in any sense here in the next few months.
Yeah, and certainly I know you're not going to be resting heading right over to Philadelphia for tomorrow night's first debate and perhaps only debate between Vice President Harris and former President Trump. Does this conversation with Secretary Yellen inform what you're going to be thinking about as we head into this encounter tomorrow, Knight.
Yeah, she Janet Yellen stuiously avoids talking about politics, but did talk a lot about the Biden administration, Biden Harris administration's economic priorities. And I'm very interested in Nathan and hearing how much concrete policy comes up over the course
of this debate. But as you point out, this is on the calendar the only time that these two candidates are supposed to meet face to face, and quite deliciously, they've never been in the same room together before, So there is the drama in theat of that the two
candidates facing each other on stage. But yes, I think that what I heard from gannet Yellen was a lot of pride and emphasis in the policies that they have been able to put in place since the COVID pandemic, and obviously a sense of urgency as well as she looks kind of unfinished business, mindful of what would happen to those initiatives if Vice President Harris loses this election and former President Trump were to win.
This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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