Bloomberg Daybreak: August 1, 2022 - Hour 1 (Radio)

to go to hit two percent inflation. Concern in China grows amid worse than expected economic data, and Senator Joe Manchin makes his pitch in favor of the climate tax film speeding cameras in New York City to gain operating two seven starting today blast the death toll rises from last week's flooding in Kentucky. I'm Michael barn a half, I'm John Stashower and fourth sixth straight win for the Mets. The Yankees lost to the ninth inning and widespread reaction

of the passing of the NBA legend Bill Russell. That's all straight ahead on Bloomberg Day Break on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one six one, Boston, Bloomberg nine sixties, San Francisco, Syrius x M one nineteen and around the world on Bloomberg Video dot Com and via the Bloomberg Business app. Good morning. I'm Nathan Hager and I'm Karen Moscow and US DOT

Index futures are lower this morning. We are coming up de Figo one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg S and P futures down fifteen points down, futures down seventy nine at ASDAG futures down fifty one. Ten year treasury down five thirty seconds, yield two point six six percent, and a yield on the two year two point nine

one percent. Nine X screwed oil is down two point two percent, down two dollars seventeen cents at ninety six cents of barrel, Nathan. Well, as you mentioned, Karen, futures are on the decline this morning as we kick off a new month, looking ahead to Friday's jobs report, and the debate continues on the health of the US economy. Regid Atlantic Capital Chief investment Officer Andy Kapern says the environment is uncertain, but he is still sticking with value.

You should continue to stick with what is we're for you so far this year, and that is precisely thinking with value, which is heavy on energy, heavy on materials and industrials. The underlying price of those commodities, they're fundamentally undersupplied. Andy Kapin with Region Atlantic Capital says focusing on value and quality can still generate returns in a volatile market. Hello. Over the weekend, Nathan, we got more comments on FED policy.

Minneapolis Fed President Neil cash Cary said he's not worried about whether the US is in a technical recession. He said the central bank is focused squarely on inflation. We're gonna do everything we can to try to avoid a recession, but we are committed to bringing inflation down and we're going to do what we need to do, and we are a long way away from achieving an economy that is back at two percent inflation, and that's where we need to get to. Neil cash Cary said he does

not see evidence of a US wage price spiral. He made the comments on CBSS Face the Nation heard some days on Bloomberg Radio. Well, stocks are coming off a banner month, Karen, but that trend may not continue. That's according to two high profile analysts. Let's get more in this live report from Bloomberg's John Tuck. Good morning, John, Good morning, Nathan. Earnings results are holding up better than feared. Of the fifty of the SMP five hundred companies that

have reported more than half of beaten estimates. Still, Goldman Sacks strategist David Constance is the rate of earning speeds is trailing the average pace set in the last five quarters, and Morgan Stanley's Mike Wilson says the rebounded stocks likely to be short lived as estimates are cut further and the economy heads into contraction. And a note this morning, Wilson also says the bomb market is assuming the Fed will get inflation under control, which is good for fixed

income but not stocks. Live in New York. I'm John Tucker, Bloomberg Daybreak. All right, John, thank you all. Another big week on Wall Street with economic data and earning set to be the main drivers again. And we get more from Bloomberg's Charlie Pillett. While investors keep an eye on the economic data, including a Job's report, they're also focused on what corporations are saying about the second half. Solita Marcelli is chief investment officer for the America's at UBS

Global Wealth Management. This earning season, we heard a lot of talk of recession, but we haven't seen any indication. And the results Lots of earnings this week across a broad swath of industries. Amongst some of the names A M D, Airbnb, Caterpillar, Lift, Uber, Marriott, Occidental, Petroleum, Starbucks, and Young Brands in New York. Charlie Pellett bloom Bird Day Break, Charlie, Thank you. US shale drillers are expected to post record profits this week, and after a decade

of steep losses, looks like shale is finally blossoming. Bloomberg's Grinita Young joins US Live with that Good morning, Grinina, Good morning Nathan. Estimate is compiled by Bloomberg Show. The top twenty eight publicly traded US independent oil producers generated twenty five point five billion dollars in free cash flow in the second quarter. That's about a quarter of what

they lost over the past decade. Fracking revolutionized global energy markets by enabling American drillers to harvest shale resources that had previously been untouchable. In just over ten years, the US went from a de climbing crude producer to the world's dominant oil and gas source. But at an astronomical cost. The twenty eight companies lost about a hundred fifteen billion dollars in the decade leading up to the COVID nineteen pandemic.

Live in New York. I'm really need a Young Bloomberg daybreak, all right, we need a thank you about turning overseas now. HSBC shares are up five point eight percent in London after the bank turned at US strong earning sir for it IP profit estimates, bound to restore quarterly dividends, and fended off a call to split up. HSBC CFO You and Stevenson spoke to Bloomberg from Hong Kong, rising rights is certainly beneficial to us. Interesting come was up twenty

Q two on G two. Revenues were up twelve for sant overall, we also kept cost flat, so we had an enormous amount of operating leverage. We also had a one off tax benefit too, so we're very pleased with these results. Chief financial Officer You and Stevenson says HSBC is paying close attention to its China real estate exposure. Let's say the Europe now, Karen, where the economic folk us this week is on the Bank of England Bloomberg

Daybreak europpost. Stephen Carroll joins us live from London with details. Good morning, Stephen, Good morning Nathan and Karen. The Bank of England was the first of the major central banks to high crates after the pandemic, but now it's playing catch up. Governor Andrew Bailey has promised to act forcefully to tackle inflation that's running at a forty year high in the UK. Markets now see a seventy chance of a fifty basis point hike on Thursday. That would be

the largest by the Bank in twenty seven years. This as it's warning that inflation cut it eleven percent this year. Live in London, I'm Stephen Carroll, Bloomberg Daybreak, Right, Stephen, Thank you all. Beck you're in the US. We're focused on politics. After doing a one A D on supporting a climate text bill last week, Senator Joe Manchin is now out pitching the measure, Bloomberg said, Baxter has that story.

Senator Mansion says it all just makes sense. We've taken three point five troyon of spending down to four million of investing without raising any taxes whatsoever. And he says he doesn't know now what all the dramas about, and know if we could get a deal. I did not know if we could come to an agreement, So why would I put people through this all this drama? And he's also making a public pitch to get Senator Kirsten's cinema on board. The vote expected this week in San Francisco.

I'm at Baxter Bloomberg daybreak. All right, ed, thanks straight ahead, your latest local headlines and the check of sports. This is Bloomberg and it's not five oh seven on Wall Street, sixty nine degrees in Central Park. Got slippery roads this morning, already an accident on the Connecticut Turnpike southbound your eggs at eighteen. We'll get to the details in traffic shortly, but first Michael Barr with another reason why you might want to take it easy on the roads this morning.

Good morning, Michael, Good morning, Nathan Smile. You're on traffic camera. Starting today, about two thousand speed cameras begin running twenty four hours a day every day across New York City. If you crossed speeding by the camera, you'll get a fifty dollar fine in the mail. However, experts say it

usually will not result with points on your license. Kentucky Governor Andy Bisher says housing, water, and cell phone service are among the priorities the state is focused on bringing back to people who have lost everything in last week's deadly flooding in eastern Kentucky. Are confirmed count of Kentuckians we've lost is now reached twenty eight and we expect that there will be more and that that number will grow.

Governor Bisher says about a hundred travel trailers are coming in to help people displaced by the disaster in Perry, Elector and Not counties. There are stepped up efforts to slow the spread of the monkeypox virus in the US to spite rise in case numbers and limited vaccine supplies. The first known depths from the global outbreak have been reported in Europe and Brazil over the weekend. There are now more than five thousand confirmed cases of monkeypox across

the US. Officials say cases are concentrated among men who have sex with other men, but because monkeypox is spread by skin to skin contact, Dr Alock Patel says an one could catch it individuals who are in an at risk community. We'll have come in contact with others who have symptoms of monkey pots are encouraged to go get a vaccine, but right now we're seeing long lines in order to get the vaccine. Dr Pertell spoke to ABC. It comes as the New York City Health Department declared

monkey potts at public health emergency over the weekend. Earlier, New York Governor Kathy hulk Will declared a disaster emergency in the state. We've lost some greats. NBA fans are remembering Celtics legend Bill Russell, who died at eighty eight. More in sports shortly star track actress Michelle Nichols, who broke ground for blacks playing Lieutenant O'Hara, has died at age eighty nine. And Pat Carroll, the voice of Ursula in the Disney classic The Little Mermaid, has died at

age nine. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael bar this is Bloomberg. Nathan Greats just scratches the surface and all three of them. Thank you, Michael. Coming up to five ten on Wall Street, time for

the Bloomberg Sports Uptake and Morning Johns. Alright, your morning, Nathan and his regious heard of course NBA legend Bill Russell dying yesterday at his home at the age of eighty eight. And you can argue where Russell ranks among the greatest players in NBA history. Certainly in the conversation from a defensive standpoint, he may well have been the best. As a rebounder, he averaged twenty three rebounds a game,

he once had fifty one. And what is not up for debate is it was the greatest winner in league history. Russell won eleven championships in thirteen years with the Celtics, eight in a row. In the last two. He not only played, he was the head coach. He played in ten game seven's. He won all ten during his career and after Russell, often a voice against racial and social injustice, Billie Jane King called him a once in a generation

activist athlete. Barack Obama statement yesterday read as tall as Russell stood, his legacy as a player in person rises higher. At stadium, Yankees trailed the Royals for nothing, then led six four after a d J le Mayhew two run homer and Anthony Rizzo three runs Chavo with two outs in the ninth, the three run homer by Kansas City Salvador Pereza play Homes, who had not given up a

homer all year. The Royals beat the Yanks eight to six in Miami season nine nineteen hits for the Mets, three each for Jeff McNeil, Marc Canne, Francince Gilden Door a nine to three route. So after a two game swee for the Yankees, a three game swee with the Marlins, Mets manager was Buck show Walter, how hard it is to win three games in a row on the road and Slaine Ballpark in the Major League. That's suppressive. Our

guys came out without talk with intensity. You need to facing a Lopez, Uh, you know it's you know, he

faces some good pitching here. I'm speaking a good pitching metser in Washington, Max schers Or tonight against his old team, and then tomorrow the season's debut of Jacob deGrom, John Stashower Bloomberg Sports, Nathan Alright, John thanks SMP futures down thirteen points, Staff features down sixty four, Nastack Futures down forty four points, ahead of the start of a new trading month, we bring in Dennis Carr, been the former

publisher of the Gartment letter. Next, this is Bloomberg Bloomberg eleven three oh weather mostly cloudy today with highs and your eighty degrees will bring back the chance of showers and storms tomorrow with a high near ninety, sunny and hot ninety for Wednesday. Right now sixty nine in Central Park Markets, headlines and breaking news twenty four hours a

day at Bloomberg dot com. The Bloomberg Business at and at Bloomberg Quick Tape is a Bloomberg Business lash and I'm Karen Moscow and Europeans stocks are taking higher as corporate earnings continue to deliver upside surprises. Will investor's assess or marks from central bankers at higher interest rates you're needed to bring inflation under control. Futures are lower. Last week. What's the best for the US stock market in more than two years. It is the first trading day of

the month. Last month, the S and P five gained about nine point two percent, growth stocks beating value stocks. There We check the markets every fifteen minutes throughout the trading day on Bloomberg Right now S and P futures down about twelve points and down futures down fifty six. NASDACK futures down thirty nine. The decks in Germany is at a third of a percent. Ten year treasury down five thirday seconds, yield two point six six percent. The

yield on the two year two point nine percent. Nim excrude oil is down two percent, down two dollars one cent and ninety six dollars sixty one cents a barrel. Comics called middle Change is eighty announce the Euro one point two five four against the dollar, British pound one point two to three eight and the end one thirty two point three nine. And looking at bitcoin, it's down two percent. It's at twenty three thousand, three hundred twenty dollars.

That's a bloomberg business flash. Now here's Michael Varr with Moore on what's going on around the world. Uncael, good morning, good morning here in the first ship carrying Ukrainian grain has said all from the port of Odessa. The park departure of the ship laden with corn follows an internationally broker deal to ease of growing hunger crisis, and Rick Stenson took home four million dollars from winning the controversial Live Golf's Bedminster Invitational. The Saudi Arabian funded league has

drawn criticism. Tickets at former President Trump's Bedminster course we're being sold for as little as a dollar among like crowds. In baseball, the Yankees lost to the Royals eight six. The Mats won their sixth right beating the Marlins. The Red Sox down the Brewers, the Cardinals shut out the Nationals. The Reds beat the Orioles, the White Sox beat the A's, the Giants down the Cubs. Bill Russell, who was the cornerstone of the Boston Celtics basketball dynasty in the fifties

and sixties, has died. He was eight global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Michael, thank you. It's almost five twenty on Wall Street Life

from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and as we kick off this new trading month, we are very pleased to be joined this morning by Dennis Gartman, chairman of the University of Akron Endowment Investment Committee, of course former publisher of the Gartment Letter. Always great to speak with you, Dennis, And as we heard from Karen Moscow just a moment ago, we are coming off the best month for U S stocks in about a year

and a half. Here where do you see the momentum for risk assets as we head into August? Well, May than I've embarrassed since the January five this year, and as the chairman of the University of Ackman's Endowment, I got the endowment to move about twelve of our portfolio out of stocks and thus far than fortunately correct. But I have to admit something that seems to be changing

psychologically in the market. I had been paying attention to the fact of the late last year and through most of this year that the rallies have occurred on the on declining volume and the breaks had come in on increasing volume. And as a technician, first of all, technicals always tend to leave the fundamentals in stock markets. They

tend to leave the psychology in the stock market. And the fact that Marcus would going down on big volume and rising on lesser volume was bearish, but in the course of the past month and a half or so, we've actually begun to see that shift. So I've changed my my perspective from being overtly barished being at least

neutral in the stock market. I must admit I was rather surprised by a nine percent gain in in in growth stocks last month, and I was a little surprised to see growth stocks advanced demonstrably stronger than the value stocks. So I have to admit that I'm I'm changing my my my terminology and my investment philosophy from being overly barished to being at least neutral. We're a little over

bought in the short term. We may have a little bit of a correction, but today is the first day of the month, and we're probably gonna see the stock market trade higher today just because the first and second days of the month always see inflows of capital into retirement accounts. So we're in go ahead. What are the technicals you're looking at that it made you change your view, Dennis.

The fact that we're going up now, at least in the past month and a month or so, we're going up on better volume and going down on lesser all which is a change in attitude and changing in philosophy, a change in style and changing demeanor. So that's the first thing I watch volume more than anything else. In the volume seems to be coming in on the upside. That's a good sign in terms of FED policy. Do you think that momentum can continue if we have if

we see a tighter FED. We did hear from a number of FED policymakers saying that they've got a long ways to go before they can reach that two percent inflation target, and I could potentially mean yet more rate hikes. There's no question there'll be more rate hikes, at least seventy five basis points in September and maybe fifty basis

points in the November meeting. No question they have to they have to follow through and what they said they were going to do in order to regain credibility, which they've lost with the idea of transitory inflation that was incumbent in their in their commentaries for the course of the past year or so. So there's no question rates are gonna go higher. But Marcuston Marcus have gone up on higher rates in the past, and and the races

have tended to be a lagging indicator. So the fact that the FED is going to continue to tie and take nine billion dollars per month out of its basic out of its assets it's balance sheet tells you that the fuel that had supplied the stock market is being taken away. But that's already understood and has been well stated by the Fed. So rates are gonna go higher, no question. It's just amoutter of time. Seventy five basis points in September and another fifty basis points in November.

We'll see what happens after that. What's your outlook on earnings? In our last minute here? Can companies continue to power through the headwinds that that have been out there? The manufacturing industries can? Banks will have a hard time to inverted eel curve, And the eel curve is now inverted and probably going to get more inverted before the end of the year. Bank arning has made the under pressure, but manufacturing earnings going to probably continue to do quite well,

to be quite honest. Dennis Gartman, former publisher of the Gartment Letter, now the chairman of the University of Akron Endowment Investment Committee, with us this morning as we get ready to kick off this new trading month of August, shifting his perspective going neutral on stocks now, Dennis, as always, thanks for your time, really appreciate it. Looking ahead to the market open this morning, we have futures moving a touch lower. SMP futures right now down eleven points down,

futures down fifty two. NASDAC futures are lower by thirty six points. Germany's decks the CAC in Paris both higher by three tents of one percent. Ten Your treasury right now down five thirty seconds. The yield two point six six percent on the tenure note and the yield on the two year right now UH two point nine one percent. Nimex screwed moving lower by one point nine percent, down to dollar ninety six dollars seventy one cents a barrel.

Comix Gold little changed up ten cents at nine announce UH. The euro right now one point zero two five five against the dollar, British pound one point two to three nine, the yen is at one thirty two point three three, and Bitcoin down one point nine percent on the session at twenty three thousand, three hundred dollars just to head. More on recession risk in this market and is boom time back in the shail patch. That's your top stories

of the morning. Just ahead on Bloomberg Daybreak, Bloomberg eleven three oh weather morning showers and turning mostly cloudy today with the high your eighty degrees will be near ninety tomorrow with the chance for an afternoon shower, thundershower, sunny and hot Wednesday high near ninety right now sixty nine

in Central Park. Broadcasting live from the Bloomberg Interactive Broker's studio in New York, Bloomberg E living free to Washington, d C, Bloomberg nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM to the one nine team, and around the globe the Bloomberg Business app in Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street.

Good morning. I'm Nathan Hagar and I'm Karen Moscow. We are just about four hours away from the open of US trading. Let's get you up to date on the news you need to know at this hour. US futures are lower this morning as we kick off a new month. Looking ahead to Friday's jobs report, to Bay continues on

the health of the US economy. Region Atlantic Capital chief investment officer Andy Kappern says there are still returns to be had, focusing on companies that are good at generating free cash flow and have the financial discipline to be able to deliver on it. But seven of the market that stands up the best here is dived impairs, and Andy Kappern with Region Atlantic Capital says he's not only sticking with quality stocks, but also value well. Over the weekend, Karen,

we got more comments on FED policy. Minneapolis President Neil cash Car. He said he's not worried about whether the US is in a technical recession, but we are committed to bringing inflation down and we're going to do what we need to do, and we are a long way away from achieving an economy that is back at two percent inflation. Neil cash Car he was a guest on

CBSS Face the Nation heard Sundays on Bloomberg Radio. Meantime, Nathan to Notable equity strategists say recession fears make camp further gay since stocks more in this live report from Bloomberg's John Tucker John Kareny. In a note to clients this morning, Morgan Stanley's Mike Wilson warrens the US economy could be headed for a recession. He says risk reward

is poor after the recent rally. As strategists at Goldman Sachs said, the rate of earnings beats is trailing the stent average pace that was set in the last five quarters. They suggest that stocks are not out of the woods yet, inter posting their strongest months since November of twenty twenty. Live in New York, I'm John Tucker, Bloomberg Daybreak. All right, John, Thanks, turning to big oil. Now, after a decade of steep blosses,

it looks like shale is blossoming again, Bloomberg. Johneda Young joins US Live with that Good morning, Good morning Nathan. Several shale companies are set to report earnings this week. Estimates compiled by Bloomberg show the top twenty eight publicly traded US independent oil producers generated twenty five point five billion dollars in free cash flow in the second quarter. Compare that to the last ten to fifteen years, when the companies lost about a hundred fifteen billion dollars leading

up to the COVID nineteen pandemic. Live in New York. I'm renned a young Bloomberg day break all right, rened to thank you, and a brief earnings note. HSBC shares are at five points seven per cent in London. If the bank turned in a strong earnings report. HSBC beat profit estimates, bound to restore quarterly dividends and fended off a call to split up. And futures are lower this morning. SMP futures down ten points, now futures down forty two.

NAS day futures down thirty five. Straight ahead your latest local headlines, plus a check of sports, and this is Bloomberg. Thanks on Wall Street, got some rain and sixty nine degrees in Central Park. We're still dealing with that crash southbound Connecticut Turnpike near Eggs at eighteen. Michael Barr is here with more on what's going on in New York and around the world. Michael, thank you very much. Nathan

drivers slow your role in New York City. About two thousand speed cameras now operating twenty four hours a day, seven days a week across the city, and he want to run up speeding by the camera can expect a fifty dollar ticket in the mail. Until now, the cameras were only running between six am and ten pm. However, experts say more than half of traffic depths happen overnight. Rescue crews continued to dig through piles of debris from deadly flooding last week in Kentucky. At least twenty eight

people are dead. Kentucky Governor Andy but Sheer warns they expect to find more bodies and the weeks ahead. Every day, every week, every month, and every year it takes to rebuild. We are committed to the people of eastern Kentucky. Governor Basher says search dogs are being used. No public events on President Biden's schedule today. He remains in isolation following his rebound with COVID nineteen after treatment with an anti

viral drug. Medical experts say pax Lovit is still preventing severe disease and deaths even when there's a rebound case. In Washington today, a judge can hand down the longest prison term so far. In the January sixth Capital riot case, secutors said Guy Refit of Texas carried a gun on his waist while confronting police had the Capitol. His own son testified against him. Prosecutors are seeking fifteen years in prison.

The very lucky winner of Friday's Mega Millions drawing as yet to claim the one point thirty four billion dollar prize, the third largest jackpot in US history. The winning tickets sold at a Speedway gas station in Illinois, near Chicago. Once the winner does come forward, financial expert Carter Cofield recommends saving some of the cash for tax payments. One average of people that win the lattery are broke within

the threes of five years. Seventy of people are broke with the three day five years, and of those people say if their life is actually worse at the one in the lottery, Reach financial expert Carter Coalfield. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael Barre.

This is Bloomberg. Thanks Michael. Five on Wall Street Time for the Bloomberg Sports Update with John stesh Alright, Nathan Bill Russell of course, NBA Legend, Boston's sports icon. He passed away yesterday at the age of eighty eight. Russell arrived in Boston in nineteen fifty six immediately began leading the Celtics to NBA championships. By the time he was finished, he had more championship rings than fingers to wear them

on eleven and all. This came after two n C Double A Championships the University of San Francisco, or he once won fifty five games in a row, also to California high school state titles and Olympic gold medal. In arguably the greatest winner in team sports history was NBA Commissioner Adam Silver said yesterday, Russell stood for something more than sports. There's a tireless activist against racial and social injustice.

At the stadium, Yankees trailed the Royals for nothing, then led six four d j Lemeo a two run homer, Anthony Rizzo three run shot at twenty fifth. Kansas City got a run in the eighth ning of Rob Marinaccio, who had been unhittable against and then we're one out in the ninth. A swing at a drive to center field and that ball is gonna be carrying, and it is out of here. Home run Salvador Perez. He puts the Royals in the lead in the top of the ninth.

How about that a c SP of the call three run shout the homer the first that Clay Holmes had allowed case one eighth and sixty. Yanks had been six and oh against the Royals. They host Seattle Tonight Metro in Washington. It's Max Jerzy Tonight, Jacob to Graham Tomorrow. That's have won six in a row. They beat the Marlins nine to three with a nineteen hit attack. They remained three games ahead of Atlanta on the PGA Tour.

Second straight win for Tony finale in Detroit under far In New Jersey the Live Tour winner Hendrick Stinson, John Stashward Bloomberg Sports Nathan Okay. John thanks five thirty seven on Wall Street Time for the Tri State Business Report. Here's Bloomberg's d cory the nation's highest RAN's art in New York. According to a report from rent dot Com.

It says Jersey City actually has the highest rant of the US for the average monthly rant, skyrocketing from thirty three hundred bucks in one to an eye watering fifty five hundred dollars in two cell phone services coming to New York's subway tunnels. The project comes at no public cost,

but will take ten years to finish. The six hundred million dollar project will be paid for and built by Transit Wireless, which already provides access to cell phone and WiFi service and all of the city's two hundred eighty one underground subway stations. GE Appliances has opened to micro factory in Connecticut. The manufacturing plant will anchor a facility known as co Create Stamford, which company officials also see as a hub for collaboration with colleges and universities. That's

your Bloomberg Trying State business Report. I'm in Corey, Thanks at eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred of the at radio stations around the world. I'm Steve Podas, got on ten ten Wins in New York. We're talking about Heineken saying rising prices haven't hurt beer sales yet.

Tom Corny, donahoan ktr H in Houston, firm shelve over two hundred fifty billion dollars in financing plans this year. I'm John Donnegret telling KMOX listeners in St. Louis about a double dose of good news for bowling. I'm Stephen Carroll on Bloomberg d a B Digical Radio in London. We've been reporting on England's victory and the Women's Euros football and what it means for the future of the sports. I'm at Gory on w p A M in Cleveland.

I'm reporting a real estate broker has purchased the landmark Nowcazar apartments of Cleveland Pikes. And those are some of the stories our twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Russian President Vladimir Putin is weaponizing energy exports

to undermine Europe's support for Ukraine. But while the European Union faces the prospect of a long winter without Russian gas, its emergency proposals are nowhere near adequate for a start, the EU should call a heads of State summit to negotiate a new near term strategy. Governments will need to help vulnerable households make it through the winter, think creatively about how best to manage demand and effectively communicate the stakes to the public. Importantly, the EU must also intensify

its efforts to permanently free itself of Russian energy. Its twenty thirty goal is too far away. In all likelihood, the coming winter will severely test European resolve. Only adequate preparation can forestall the worst. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, Splash Opinion or ope I N go on the Bloomberg terminal. This has been Bloomberg Opinion man.

Bloomberg Opinion editorials can be heard every weekday at this time terminal customers can read more an O, P I N go, and we'll bring in Bloomberg's William Wilkes and the Bloomberg Big Take story this morning on Germany scrambling to deal with that gas shut off. This is Bloomberg Bloomberg eleven three oh weather morning showers to give away to most of the clotty skies and a high near

eighty today. We'll be back near ninety tomorrow, though with another chance crafted in showers and hutter showers, sunny and hot for Wednesday. Right now sixty nine in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quick Take. He's a Bloomberg Business flash put on Karen. Moscow and European stocks are are taking higher this morning.

US stock index futures are lower. They're coming off the best week for the US stock market in more than two years, and we check the markets every fifteen minutes throughout the trading day on Bloomberg SMP Future is down about nine points right now. Down Future is down twenty eight. Nasdack futures down twenty eight as well. The decks in Germany's out the third of upper set ten year treasury down three thirty seconds, held two point six six percent.

The yield on the two year two point nine zero percent. Nine X screwed oil is down one point seven percent out of dollars seventy at ninety six dollars ninety one cents of barrel comic schooled up three ten percent or five dollars forty cents at seventeen eighty seven ten an ounce, the Euro one point two six six against the dollar, British found one point two two five four, the yen at one thirty one point nine four, and bitcoin is down one point nine percent at twenty three thousand, three

hundred fifty dollars because of Bloomberg Business Flash. Now here's Michael Barr with more on what's going on around the world. Unfael Darren, thank you very much. How Speaker Nancy Pelosi is in Singapore kicking off for Asian tour ask questions swirled over a possible stop in Taiwan at his fuel tension with Beijing. A Foreign Ministry spokesperson said Pelosi will

call on Singapore's President and Prime Minister. Bill Russell, who was the cornerstone of the Boston Celtics basketball dynasty in the nineteen fifties and sixties, has died. He was eight and Vic Stenson won the controversial Saudi Back Lived Golf's Bedminster Invitational at former President Trump's golf course. In baseball, the Yankees lost to the Royals eight six. The Mets won their sixth raight, beating the Marlins nine three. The Red Sox down the Brewers, the Cardinals shut out the

Nationals five zip. The Red Sox beat the Orioles, the White Sox beat the A's, and the Giants down the Cups. Global News twenty four hours a day on air and on Bloomberg Quickday, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg. This is the Big Take, the best of Bloomberg's in depth, original reporting from around the globe. Really fast moving story that's caused a lot

of outrage among investors. This is so fascinating. The market shutdown in a way it's never done before. That's gonna have consequences for years to come. The Big Take on Bloomberg Radio. It is five forty nine on Wall Street Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak, and our big take this morning is on the scramble underway in Europe to avert a heating crisis as the war in Ukraine grinds on and it may hit hardest

of all in Europe's economic engine Germany. For more, we're joined by Bloomberg Global Business reporter William Wilkes. William, good morning, And I guess this is because Germany has more exposure to the natural gas that Russia has already begun cutting

off to Europe. Is that right, Good morning, Nathan, Yeah, that that's that's kind of mainly the reason it's Germany isn't the most exposed country, but Jimny does have a lot of kind of gas intensive material industries like chemicals still ill aluminium, copper and similar and that's why Germany

is particularly exposed. So what is being done at this point to try to alleviate the crisis that is likely coming now that the flows have already begun to slow and so actually the first sign of defenses cutting energy usage wherever they can, which is what are big take, contains lots of details about kind of municipal governments cutting back on things like swimming pools and lighting buildings at night and kind of turning the firmer start and the

heat done on those buildings. Companies are also doing a similar thing that you know, trying to wherever they can cut gas, like superfluous gas out of production. And in addition to that, there's a lot of crisis planning going on at the moment, Like a lot of companies are looking at exactly what what they can do without. And it's kind of trying to model, particularly like gas shocks, like saying, you know, if gas, if we get zero gas in a particular cal day, would that mean for

our production? What do we have to shut down? You know, what kind of stockpiling of finished products do we have to do to to kind of offset that. Yeah, for people with long memories here in the US, it might bring back recollections of what happened in the nineties seventies during the Arab oil embargo when Americans were asked to cut on their energy use as well lead the long gas lines, that sort of thing. And that raises the question of a potential political component here for Germans as

they deal with what could be coming. Uh, this could put some pressure on Chancellor Schultz's government, couldn't it. Indeed, that's gonna be really interesting to see what happens that. Um. Yeah, Germans going to see the energy bills go up. Some of them might see, um, their companies swinking or cute jobs and the political implications of that, I think, I

think what will be really fascinating to see. Um, whether it will bring Germans out on the street, we'll have to see, or whether or fuel support are kind of some of the more extreme and less than right right parties and destabilize the coalition of kind of mainly centrist parties in the government. Um. Yeah, we're not sure what's going to happen with that. And and it's also possible the Germans, you know, are very it's a very orderly society where people don't typically take the tape to the

streets to riot. Um, it could be the you know, people back to the government measures and realize that this is you know, an external driver distance Russians doing it to us. But we'll have to see, well what alternatives in our last minute here Williams, does Germany have to Russian gas? Is there any way that they can backfill the cut off from nord Stream one and they can get gaffs from kind of other European UH sources. There's

like Norwegian pipeline gases and gas pipelines in the Netherlands. Netherlands. Unfortunately, Germany doesn't have a working at ellen g Terminal, So the it's planning to have them as soon as possible, but they're not going to really help in this early winter period um, so it's less kind of Germans looking at alternative fuels for certain things, one being bringing back multiples cold plants to generate electricity that will help save

on gas. The other potential alternative is whether it Germany lets some of its nuclear plants, which were all going to close by the end of this year, which is a reaction to the Fukushima disaster. Chancellor and former Chancellor Meracle want you know, ordered the closure of those nuclear plants and could they let those run until That would be controversial here, but it would free up some gas

for use elsewhere. Thanks for this, William, really appreciate your giving us more on this Big Take story and I Big Take go on the Bloomberg terminal to get more. That's Bloomberg Global Business reporter William Wilkes, Karen, Sorry, Nathan, thank you at It's five fifty four on Wall Street and it's time now for the daily of Bloomberg Law Brief, exploring legal issues in the news, and today we're looking at a milestone for a key legal issue in response

to several corporate and accounting scandals. Congress past the Sarbanes Oxley Act in two thousand two. If by purtising congressional support, Sarbanes Oxley is celebrating its platinum anniversary, but how effective has it been for more Bloomberg's doing. Grosso speaks to securities law expert James Park, A professor at u c l A Law School, tell us about the reasons for the law. Why it was passed. The law was the culmination of years of security spraud cases that the sec

basically pursued. Basically towards the end of the ninety nineties, there was significant ussure on public companies to deliver quarterly results to meet analysts projections of their revenue and earnings, and many of them were cheating. They were cheating by violating accounting rules so that they could report revenue that was a little bit higher profits that were a little bit higher. And this structural pressure to maintain your evaluation, in my view, was the main reason for the law,

the best justifications for the law. And then this is the time when security fraud was national news. It was really one of the major national concerns you have the December two thousand and one bankruptcy filing of Enron, and then the next month Global crossing files for bankruptcy that spring. In April two thousand and two, Elliott Sitser bring major case against Merrill Lynch for issuing false research recommendations with respect to stocks that it was promoting as part of

its investment banking business. June two thousand and two, Adelphia f file for bankruptcy. And then what really prompted the passage of the law is July two thousand into Worlds files for bankruptcy. So you have a string of major public company bankruptcy, so that really pushes Congress to act, and the law was passed virtually with unanimous approval. Do you think it's worked? Has it been successful? I think it has been successful. It is a tough law, though

to gauge with expect to how well it is working. UM, it's very hard to really measure exactly what the impact of the law has been. But we do have anecdotal evidence where public company managers report that they are more careful, more systematic about investing in internal controls to prevent securities frauds. So we have that sort of qualitative evidence that would support the idea that the law is working. We also

have evidence from accounting WE stayatement. WE statements are basically when a company acknowledges that there's a material misrepresentation in its financial statements, and we see accounting WE statements of sec filing company steadily declining. I'm over the last fifteen, twenty year and that may indicate that internal controls are catching some of these mistakes. Earlyear and at James Parker, professor at u c l A Law School, speaking at

the Bloomberg John Grasso. Catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast. Are downloading the show at Bloomberg dot com, Slash Podcast, Attorney's Confound, Exceptional legal research and business development tools at Bloomberg Law dot com, and on the Bloomberg terminal at black Go top Stories, straight Ahead. This is Bloomberg