Bloomberg Daybreak: August 11, 2022 - Hour 1 (Radio)

loads of migrants to the city. Plus former President Trump leads the fifth Michael Blair more ahead, I'm John stash Our. In sports, another win for the red hot Mets. The Yankees lost in Seattle. The Giants had their preseason opener tonight at New England. That's all s. Trady Ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius x AM one nineteen

and around the world on Bloomberg Radio Dot. Carmen By the Bloomberg Business app. Good morning, I'm Nathan Hager and I'm Karen Moscow and US Dock index futures are on the rise this morning. We are coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg. S and P futures up nine voice this morning. Down futures up one hundred four and nasday features are up nineteen and the tenure treasury up one thirty second. You have

two point seven seven percent. They yield on the two year three point one seven percent. Nathan, all right, Karen. Thanks. This rise in futures this morning is building on yesterday's powerful rally. The S and P five hundred closed at a three month high, while the Nasdaq one hundred is now up more than twenty percent from its June bottom,

all fueled by softer than expected inflation data. Alan Lands, director of research at Lands Global, This skeptical, all of a sudden, now should one CPI report, and now inflation is is calm and taking care of etcetera. So for some reason, investors, you know, memes stop sucks her back, and you know it's just it's just a total exaggeration now,

and Land says he still remains cautious. He was a guest on Bloomberg Business Week her weekday afternoons on Bloomberg Radio and streaming live on YouTube on Nathan, the Wall Street rally is now spilled overseas. Stocks in Hong Kong and China surged more than two percent overnight, and we get the recount from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good morning, Nathan, and Karen Tex shares bird gains in the regional index excluding Japan, which was closed for a holiday.

China's bullis has advanced even as investors digested a warning from the PBOC about inflation threats and a pledge to avoid massive stimulus. South Korea has one gained as much as one percent against the dollar as the nation's trade deficit one and while the Singapore dollar retreated as the Ministry of Trade and Industry lowered its twenty twenty two growth forecast following a contraction in the economy in the second quarter. In Singapore, Juliette Sally Bloomberg Daybreak, all right,

lead thanks all. Softening inflation data may be exciting markets,

but it's not changing minds at the FED. Let's get that story live from Bloomberg's John Tucker, John and Nathan Minneapolis FED President Neil cash car he wants the benchmark insist rate at three point nine percent by the end of this year and four point four percent by the end of three The idea that we're going to start cutting rates early next year when inflation is very likely going to be well, well, well in excess of our target,

I just think it's not realistic, carries. Counterpart Charles Evans of Chicago welcome the lower CPI print, but says the inflation remains unacceptably high. He wants to continue raising rates into next year. I think it'll be three and three quarters to four percent, So sort of a four percent top funds rate at the end of next year is what I'm thinking about. Mary Daily, also adding to that call, the San Francisco FED president tells the Financial Times it's

far too early to declare victory over the inflation. She's not ruling out a third consecutive seventy basis point increase. In September Live in New York, I'm John Tucker, Bloomberg Daybreak all right, John, thanks for that. Sentiment from FED officials was being echoed by the US Commerce Secretary Jenna Romando spoke of the Bloomberg's David Weston it is good news, although I do think we have to be cautious. A big reason for the good news gas prices are leveling off,

and that's certainly helpful to consumers. But as you point out, there are other issues wait like in housing, that we have to still keep our eye on the ball. As we've set all along, there's no silver bullet here. Commerce Secretary Jenna A. Mondo mentioned falling gasoline prices, and we

have more news on that front this morning. Triple A is reporting that the average price of gas in the US has now fallen below four dollars a gallon, and we'll get another read on US inflation this morning, Karen. Economists predict July's producer price index rose ten point four percent on a year over year basis. That's less than June's historic eleven percent increase. Bloomberg's Viny Delle Judas had more gasoline prices could be the theme of today's report.

Following gasoline prices they've been slashing around for two months and encountered for almost all of June's in grease and US wholesale prices outside of fuel, Bloomberg Economics as costs remain elevated, though the peak is probably behind us. We saw a similar pattern and Wednesday's data on July consumer prices. But there's a long way to go, Benney, Deryl Judae, Bloomberg Deprit All right, Thenny, thank you all. Back now to the equity market. Shares of Disney Or up almost

seven and a half percent in early trading. The media giants third quarter results beat estimates for sales, profit and subscriber growth. It's also raising the price of its flagship at Disney Plus streaming service by thirty eight percent. Begin

more from Bloomberg's Lucas Shaw. The thing that really Disney announced today is not only stronger growth than anybody expected in streaming, which kind of bucks the trend we saw everywhere else, whether its Netflix, HBO, Max, Paramount, UH Peacock, but but perhaps most importantly that it's raising prices across

the board for all of its services. And it feels like it's now, you know, established itself enough with the customers that it is able to do that and Bloomberg's Look at Shaw says Disney will introduce an AD supported version of its flagship streaming service and raise the price of the AD free option to eleven dollars a month. It's not just Disney on the move. This morning, shares of so No Nos are down twenty percent in early trading.

Let's get the details on that life from Bloomberg's Ornia Young. Good morning, Ronina, Good morning, Nathan. Audio products maker son Nos cut its annual revenue view. Company executives are citing a more challenging macroeconomic backdrop against an appreciating dollar and high inflation, and that's all pressuring consumer sentiment. As a result, the company extended its timeline to achieve its previously issue

targets to beyond fiscal year four. Sons also says CFO Brittany Bagley is stepping down to pursue another opportunity and names Eddie Lazarus in term CFO live in New York. I'm gonned a Young Bloomberg daybreak, All right, we needed thanks well. Shares a bumble are also following this morning. They're down more than seven per cent, and that's after the online dating company trimmed its revenue forecast for the year.

Futures this morning on the rise, S and P futures up nine points and straight to hand, your latest local headlines, plus the check of sports. And this is Bloomberg. All right, Karen, thank you. This five oh seven on Wall Street, Words, seventy six degrees in Central Park and dealing with an accident South and New York State through a exit twelve. Details coming up in traffic. First, Michael Barr with more on what's going on in New York and around the world,

including the ongoing spat between the mayor and the Texas governor. Michael, Yes, you are correct, Nathan. Another bus load of migrants have been shipped to New York City by Texas Governor Greg Abbott as a political message to the Biden administration and the city's leaders. Other bus loads to so called sanctuary cities have been sent to Washington. It is fueling a political battle between the Republican governor and the Democratic mayors

in the cities. Yesterday, nearly one hundred migrants arrived in New York City from Texas. New York Mayor Eric Adams says he might send a bus load of New Yorkers to Texas to help Democratic gubernatorial candidate better Or Rourke ounced Abbott from office. Abbott responded on Fox go ahead, Mayor, make my day. However, the mayor shot back on CBS two. I know he thinks he's Clint Eastwood, but he's not.

He is a anti American governant. Mayor Adam says there's nothing successful about treating people with this lack of dignity. Donald Trump says he invoked the Fifth Amendment and wouldn't answer questions under oath in the long running New York civil investigation into his business dealings. Trump was at New York Attorney General Letitia James's office yesterday. He sent out a statement saying he declined to answer the questions under the rights and privileges afforded to every citizen under the

United States Constitution. And Randy and Official is at large one and for the plot to allegedly assassinate former National Security Advisor John Bolton. Bolton says Iran cannot be trusted, especially when it comes to the nuclear arms deal. I think it's a totally untrustworthy government. I think there is no possibility they will comply with commitments that they make. They are enemies of America. They hate US as the great Satan, as they hate Israel as the little Satan.

The Department of Justice says forty five year old Iranian operative Shahram Borsafi offered three hundred thousand dollars to assassinate former National Security Advisor Bolton and retaliation for the killing of a top Iranian general in Kim John UN's sister revealed that North Korean leader Kim joan un suffered from a high fever and was seriously ill during a recent

covid U break. She vowed to eradicate South Korean authorities if they continued to tolerate propaganda leaflets the regime blames for spreading the virus. Global News twenty four hours a day on airand on Bloomberg Quick powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. On Michael bar this is Bloomberg, Nathan, Thank you, Michael. Coming up to five cent on Wall Street. Time for

the Bloomberg Sports Up. Thanko morning, John Stash alright, your morning, Nathan. That's still on fire. Another easy win. They led the Red six ductor in the third and Tham they won ten to two. They've won six in a row and the last five they've only allowed a total of nine runs. They've won fifteen of their last seventeen. All but two of those fifteen wins have been by three runs or more. The schedule does get tough for Phillies. Come into City

Field tomorrow. The Phills rally to win last night. They've won seven in a row, twelve of thirteen. Mets then go to Atlanta for four games. The Braves won in Boston, still thrill the Mets by seven. After that series, the Mets go to Philly for four. The Yankees off tonight and then in Boston. They'll try to salvage something out of this road trip that's been so far a disaster. Swept in St. Louis and in Seattle they win nineteen

innings without a run. Came alive in the seventh home runs by Kyle Agashioka and Aaron's judge hit number forty five, but Seattle came right back the bottom of the seventies. That ball is going back up. Carlos Santana a four three league. Carlos breaks it over for seventeen with whole number eleven and the Mariners. They happen en up here.

T Mobile Parks I wrote the call. The homer came off Alberta Brios for three of the final the Yankster ten and eighteen their last twenty eight games in Dyersville, Iowa. Tonight Field of Dreams game, the one the Yankees played in last year. Tonight it's the Cubs and Reds. Also tonight the Giants preseason opener at New England and the new coaching staff and only three preseason games now new

coach Briant Dable wants to play. His daughters Daniel Jones, say Kwan Barkley expected to play in the early going. John Stash warning Bloomberg Sports, Nathan Okay, John, thank you. SMP futures right now up seven points, South futures up ninety six. Insect futures are highed by eleven points ten. Your treasuries up on thirty second, the yield two point seven seven per cent. This is Bloomberg Bloomberg eleventh three

oh weather. Chance for a shower this morning, otherwise becoming partly sunny with high near eighty five degrees, low eighties, mostly sunny Tomorrow, sunshine high near eighty on Saturday, right now seventy six 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. This

is a Bloomberg Business Flash and I'm Karen Moscow. And stocks are trimming a rally spurred by software than expected US inflation data as investors, I guess comments from Federal Reserve officials who remain resolute on the need for further interest rate hikes. We check the markets every fifteen minutes throughout the trading day on Bloomberg and right now westn P futures they're up nine points down futures of nineties

seven and nowsday futures of twenty one. The Dacks in Germany is down about two tenths of upper cent ten year treasury up one thirty second deal two point seven six percent yield on the two year three point one seven percent. Nine X. Screwed oil is up about nine tenths per cent, up eighty two cents and ninety two

seventy four cents of barrel. Comic Schold is down half percent, or eight dollars eighty cents at eight ten o four and ninety announce the Euro one point oh three to eight against the dollar, British pound one point two to two zero, the yen is at one thirty two point six four and look at it, big coin, It's up two and a half percent to twenty four thousand, five

hundred dollars. And today we are watching for the weekly report on initial jobless claims at a thirty Wall Street time, along with the Producer Price Index as a Bloomberg business flash. Now here's Michael Barr with Moore on what's going on around the world. Michael, good morning, Good morning Karen. Former President Trump appeared before New York's Attorney General Force Warren deposition as part of a civil investigation into his family

real estate business. Trump sided the fifth, declining to answer any questions. North Korean to Kim John Un declared victory over COVID nineteen at a national meeting his sister, and an especially combative speech said Kim had suffered a fever himself and laid dubious blame against South Korea, vowing deadly retaliation. In baseball, the Yankees lost to the Mariners for three. The Mets beat the Reds ten to the Red Sox, Nationals,

Hayes and giants all lost. Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts are more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan him Michael, thank you. It's five nineteen on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg a daybreak. Let's get right into this

market this morning. We're joined down by St. Dwack, chief investment officer at Flow Bank ste It's great to speak with you this morning. I'd love to get your take on the rally off the back of yesterday's cooling consumer price print. Well, good morning. You know, I think we've had upside surprises for the last few months, and then we had that big upside surprise and the non farm payrolls, so to finally get an indicator that this inflation is

on its way. We've had a number of other smaller indicators with the i M prices paid and then the price index and the p M I S, so we're starting to get those signals, but we needed one sort of official data point to come in lower and to come in lower than expectations, both on the headline and on core. So it is something of a relief for markets, even if the FED is still saying that they're going to keep hiking. I don't think the market saying we're

at the end. I think they're saying, we might not need seventy five basis points at the next few meetings, and we're going to give it a little time to see. We have six weeks till the next FED meeting. We're gonna start to see some of those first hikes filter through into the economy as well. Well, what do you think there's going to be needed? As you mentioned, a lot of FED speakers are saying they're not done yet.

It's sounds like even some of the what people used to be doves like Neil cash Cary are still keeping seventy five basis points on the table in the next meeting. I think they don't want to, you know, say there they've they've got that inflation is beaten too soon, and they certainly don't want inflation and expectations to become an anchored again or to start lifting because the FED is lifting its foot off the pedals, so they're gonna keep talking hawk ish. Um we again, we have six weeks

till the next said meeting. It feels more probably like we should get fifty basis points, and that will depend on the non farm payrolls and the next inflation number, and then maybe a couple more basis points. But I'm not sure we're going to get those outside rate hikes anymore. In terms of the rally that we saw yesterday, do you see this as the start of a new bull market or is it just a bear market bounce? It's

always difficult to judge that. It does feel like we've we've passed some of those resistance levels and that June should prove to be the lows. Now. I don't think yesterday is going to be the you know, the start of the next straight line up. We're probably going to have some kind of headline that scares us a little more. Jackson Hole I think will prove to be something of a non event. But I don't think we get any change of tone from the Fed then, so we have

to wait a little more for those those headlines. Make sure we don't get another few more big scares from some of those those chip companies or from the retailers that are coming up in the next couple of weeks. So I think bumpy ride, but it's starting to feel more like the June was the bottom. How bumpy do you think? I mean, it seems like we've seen some pretty strong moves one way or the other, depending on what kind of headlines we get from the data. We're

definitely getting big knee jerk reactions. And let's not forget that we're in August, so volumes are always lower. We're geting sort of fewer data points, uh for now, at least, especially because the bulk of the earning season is behind us. Um it can move, you know, a couple of percentage points in either direction on a given day. We had a big bounce in July, so a little bit of

consolidation now makes sense. But I think as we move into September and the end of the year, the direction should be upward, just to keep it on the idea of a medium term outlook here in our last minute as the If the FED does stay aggressive and keeps with the talk that they've been putting out there, what is the market impact? Can stocks continue to power through on earnings. That's going to be a big question, and it will depend how much or how aggressive the Fed

wants to continue to be. We we've seen a peek at around three point six three point seven of a terminal rate expectations from the market, So if we go back towards that from where we are today, I don't think it's that big of a move. Um So I think markets can weather it. But would you have short term corrections or we'd have a little more of those growth fears coming back because we're really gone between inflation and growth fears back and forth. I think that can

last a little bit longer. Really great to get your thoughts, ste thanks again for being with us. S D. Dwack, chief investment Officer at Flow Bank. Right now, after yesterday's rally, SMP futures are pointing a little bit higher, up eight points, Stal futures up, NASDAC futures pairing some of their gains are up twenty points UH. The tech heavy NASDAC had led the rally UH that we saw yesterday off the back of July c p I tenure Treasury right now

is up one thirty second. The yield two point seven six percent yield on the two year three point one seven percent, nim X s crewde is higher up nine cents percent of seventy nine cents, ninety two dollars seventy two cents a barrel, and Comics goal down a half percent, down eight dollars fifty cents. At eighteen oh five twenty announce Stay with us. You're listening to Bloomberg Day Right Bloomberg eleven three oh weather. We could see a shower

this morning. Otherwise partly sunny, mid eighties for highs low eighties to end the week, Tomorrow, sunshine eighty for Saturday. Right now seventy six in Central Park. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine six to the country, Sirius XM to one, and around the globe the Bloomberg Business and 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're 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 shower, US Future is adding to yesterday's rally. I do present search in the S and P five hundred was fueled by softer than expected inflation data, and Stacey m Rosso, chief investment strategist at Capital, says

it might be time to add equity exposure. The time to do this was not in February and retrospect, when we still had three hundred basis points or more of rate hikes to go. But if we have seventy five or a hundred, that should not pressure the multiples as much anymore. So I would be selectively looking to add to some of the thematic stocks, to high growth stocks that have not worked in the last six months. My capitals and a Statia Murosso's as positioning will be important

for buyers and current market conditions well. Softening inflation data makes site markets, Karen, but it's not changing minds at the FED. Bloomberg's John Tucker joins US Live at that story. John Minip was FED President Neil cosh Car says the idea that FED is going to start cutting rates early next year is unrealistic. I think much more likely scenario if we will raise rates to some point and then we will sit there until you get convinced that inflation

is well on its way back down to two. At the separate events, Chicago Fed President Charles Evans that inflation remains unacceptably high. He expects the Central Bank to be increasing rates into next year, and San Francisco president Mary Daily didn't rule out at third consecutive bases point the increase in September. Daily, by the way, it's going to be on Bloomberg Radio and TV tonight at seven thirty Eastern live in New York on John Tucker Bloomberg Daybreak.

All right, John, thank you well. We get more inflation data today with the producer price ind Actually at eight thirty am Wall Street time. We're also seeing pressure ease at the pump. Triple A reports the average price of gas in the US has fallen below four dollars a Gallon the Corporate News Now, Karen Shares of Disney or up after it beat third quarter estimates and announced it's introducing an ad supported version of its flagship streaming service,

Disney Plus. There will also be a price increase if you don't want ads. Disney shares up almost seven and a half percent. All shares A Sons also moving this morning, Nathan down more than twenty percent. I'm Bloomberg's real need a young joins us live with that story. Ready to good morning, Good morning, Karen. Audio products maker so NOS

cut its annual revenue view. Company executives are signing a more challenging macroeconomic backdrop, and as a result, the company extended its timeline to achieve its previously issued targets to beyond fiscal year four. SOS is also undergoing a leadership change, with its CFO stepping down to pursue another opportunity. Live in New York, I'm really need a young Bloomberg day break all. I ready to thank you and your latest local headlines plus a check of sports, all straight ahead.

This is Bloomberg. Thanks on Wall Street seventy five degrees. Still dealing with the accident south on New York State three w Eggs at twelve. Michael Barr has more on what's going on in New York and around the world. Michael, Nathan, thank you very much. The spat continues between New York Mayor Eric Adams and Texas Governor Greg Abbott. Yesterday, another bus slow to migrants arrived in New York City from Texas.

Abbott says it's a message to the Biden of and illustration and the city's leaders about stopping the flow of migrants at the border. Mayor Adams responded, there's nothing successfulful about treating people with his lack of dignity. Along with Mayor Adams, City Abbot is also sending migrants to Washington, d C. Mayor Muriel Bowser. We have a growing humanitarian crisis that we expect that the federal government expects is going to only worsen. Washington D C. Mayor Muriel Bowser.

More than a hundred sixty five buses have left Texas since April. Donald Trump says he invoked the Fifth Amendment and would not answer questions under oath in the long running New York civil investigation into his business dealings. Trump was at New York Attorney General Letitia James's office. He sent out a statement saying he declined to answer the questions under the rights and privileges afforded to every citizen

under the U S Constitution. FBI Director Christopher Ray says he could not talk about FBI agents searching my a Lago, the home of former President Trump. Ray did say that he is concerned about the threats to law enforcement that have been voiced since then. Any threats made against law enforcement, including the men and women of the FBI, as with any law enforcement agency, are are deplorable and dangerous. FBI Director Christopher Ray spoke from his field office in Omaha, Nebraska.

The Justice Department has charged a member of Iran's Revolutionary Guard Corps with planning to assassinate John Bolton, Donald Trump's former national security adviser. The alleged plot against Bolton was likely revenge for the killing of a top Iranian general. Win Trump was president Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analyst in more than

a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan Okay, Michael, Thanks by thirty five on Wall Street. John Stashire has a Bloomberg Sports Sunday Right. Nathan Mets made it six in a row, fifteen of the last seven. Team Meat the Reds easily ten to two. Francisco Indoor had another big day. He's already tied Jose Reys his record for most RBIs in a season by a mex shortstop. Mets move thirty four games over five hundred, the Dodgers

the only MLB team of a better record. After a day off, the Mets will now take on the Phillies with the one to punch. Max Scherzer starts tomorrow. Jacob mcrom Saturday. Yankees sleeping in Seattle, nineteen straight hittings without a run. Finally in the seventh home runs by Kyle he gosh Yoka and Aaron Judge of this forty five, but Carlos Santana homer off Albert Debreo bottom of the seventh. Amritors won for three Yanks, wasting a good outing by

Nestor Cortez. He had a no hitter going in the sixth and the Yanks just one in five on this road trip, then now takes them to Boston starting tomorrow. The Giants tonight hit New England the preseason opener. Because Brian dave Ball asked about using his starters, at least in the early going, some guys have played a lot of football, some have played less. Everybody's in new systems here with our him on offense or system on defense.

The kicking game is similar, but I think that's important for you know, to play football, to have live reps all at one time. New England assistant. The Jets have their preseason opener tomorrow night in Philadelphia and also tomorrow Cleveland at Jacksonville, and Deshaun Watson expected to play for the Browns, his new team, even though he'll be suspended for the start of the regular season. Tennis in Toronto,

Serena Williams lost. She's gonna play the tournament in Cincinnati and then come to New York for apparently her swan song at the US Open. John Stashward Bloomberg Sports than all right, thank you, John. It's almost five thirty seven on Wall Street. Time for the Tri State Business Report. Here's Bloomberg's ed Corey In New York City, the m t A is one step closer to rolling out a

congestion pricing plan. It would charge some motorists as much as twenty three bucks to enter Manhattan Central Business District. The tolling scenarios for a plan of first for US City were outlined in an environmental assessment report released Wednesday. Gasolene inventories in the Central Atlantic, which includes New York Harbor home to NIMES, physical deliveries have following to their

lowest absolute level since November twelve. Aside from that year, Central Atlantic stockpiles are at their lowest seasonal level ever since record keeping began. In a popular in New York City based ice cream chain is coming to d C. Van lew And Ice Cream says it plans at least two locations there, a little more than two and a half years after the Brooklyn based business retained advisers to begin a national expansion. As your Bloomberg Trying State Business Report,

I'm Ed Corey. Thanks said, It's almost five thirty 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 affiliate radio stations around the world. I'm Steve Potis chen Chen Wins in New York. We're talking about another record high for average Manhattan's Department rent on k r H in Houston, the price at the pump Nationally, it's now below four

bucks a gallon. I'm Gina Servetti and for w c CEO in Minneapolis, I'm reporting that Cargill said annual revenues surge twenty three percent to a record one hundred sixty five billion in its latest fiscal year. Hanley's Matteo and I'm w Beazy in Boston. I'll be reporting on why You're Disney BLUs subscription is about to get more expensive. I'm Stephen Carroll on Bloomberg DAB Digital Radio in London.

We've been speaking to the UK's biggest water supplier about how it plans to cope as the country heads into another heat wave. Mid Chloring on w w J in Detroit. I'm reporting a Michigan distillery is closing its third northern Michigan location in the pan year. And those are some of the stories are 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. More than eight hundred thousand Americans suffer from end stage renal disease Without dialysis or a kidney transplant. The condition is fatal, but paying for treatment costs the government more than fifty billion dollars a year, in large part due to policy decisions and concentration in the dialysis industry. A recent Supreme Court decision risks driving the price even higher.

Congress should take steps to control costs, support innovation, and promote competition among dialysis providers. Expanding efforts to improve the supply of kidneys donated for transplant would be valuable as well. The wide availability of dialysis has provided life saving treatments to countless Americans, but at considerable public expense. Making the industry more competitive would benefit patients and taxpayers alike. This

editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go Tooomberg dot com, slash opinion or O P I n go on the Bloomberg terminal. These has been Bloomberg Opinion. You can hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at O P I n go. Futures moving higher this Thursday morning, You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather partly sunny, but I can't roll out a

shower this morning. We'll get up to your eighty five degrees sunshine, low eighties tomorrow, sunny near eighty on Saturday. Right now seventy five in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Dictape's a Bloomberg

Business Flash, and I'm kar in Moscow. U stock Index futures on the rise this morning after the S and P five hundred hit a three month high, which the markets every fifteen minutes throughout the trading day on Bloomberg. U S and P future is up fifteen points down. Futures have a hundred thirty seven nash DAG futures up forty six and the decks in Germany is that will changed. And your treasury up to thirty seconds held two point seven six percent yield on the two year three point

one seven percent. NIMEX screwed oil up one point one percent of ninety eight cents and ninety two dollars eighty nine cents of barrel. Comex schooled on a half percent or nine dollars twenty cents at eighteen o four fifty an ounce, the Euro one point oh three three five against the dollar British found one point to two zero, the yen one thirty two point six one, and Bitcoin this morning up two and a half percent at twenty four thousand, five d twenty five dollars. That's a Bloomberg

business flash. Now here's Michael Barr with more on what's going on around the world. Muchael Karen, thank you very much. Jim jan un sister revealed that the North Korean leaders suffered from a high fever during a recent COVID outbreak. She vowed to eradicate South Korean authorities if they continued to drop propaganda leaflets the regime blames for spreading the virus. Ukrainian officials says the attack on a Russian air base and occupied Crimea was the work of Ukrainian special forces.

The Washington Post reports the Ukrainian Air Force said that nine Russian military planes were destroyed at the base. In baseball, the Yankees lost to the Mariners four three. The Mets beat the Reds tend to the Red SOX, Nationals, A's and giants all lost. Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts more than a

dred twenty countries. Michael barn this is Bloomberg. Nathan Okay, Michael, thank you are close to five forty nine on Wall Street Live from the Bloomberg Interactive Broker Studios. This is a Bloomberg daybreak, and we continue to watch shares of

Walt Disney in the pre market. They're up nearly eight percent, adding to yesterday's UH post market gains following better than expected sales, profit and subscriber growth for the Disney Street lineup, and now the entertainment giants coming out with a plan to charge those subscribers even more at the end of the year. Let's get more on these Disney earnings. Can the owners with us this morning? Director of Equity Research

at c f R A Ken, Good morning. So I guess the plan is if you want to pay what you are paying now, you're going to have to deal with ads? Is that just the way now? In streaming? Well, there's UH, but you know Disney offers something for everyone, But they raised prices for the free Disney Plus thirty eight percent, and also for the Precious Life Sports ESPN

Plus they raised that as well. So I think Disney and its competitors are just getting their footing in terms of what do they want to offer, how much can they charge? And what we really didn't see is how much monthly turned there is in this new part of

media call streaming. And I think it was interesting to me that was that Disney says that it has basically a little bit more subscribers than Netflix, but it didn't really parse out whether those subscribers are all Disney Plus or whether some people might be getting more than one service.

How do you read that? Um So Disney, it's very diverse, and about the subscribers pay going forward only a dollar twenty a month, and that's Disney Plus hot Star in India, So not every subscriber is the same uh for their Disney Plus for North America and also for the rest of the world. They still expect growth, but they ratcheted down their target to two fifteen the two thirty million

by twenty four. I'm not sure investors care about the total subscriber account as to whether you can make money and keep this as a stable business with recurring revenue, and that's a narrative probably as we go into what do investors care about? Do you think does this sort of change the subscriber growth story after some of the lackluster growth numbers that we've seen over the last couple

of quarters from Netflix. I think it is, And coming out of the earning seasons and media companies, we found that if you're also on the creation side of programming and producing movies, you're going to put them in the theaters first and then put them in the premium higher plans, the ad free streaming plans first. Unlike Netflix, it's just good business because the duration of getting more banks for your buckets there, and I think that's a lesson learned

and streaming. You know, it's still something that's evolving, but the traditional linear networks, broadcasts and pay TV are still paying the rent for these companies um and for Disney of course, not that we should ignore it. The Parks was a blowout quarter, but it's likely that recession in three could put a damper and Parks attendant. As you say, it does seem like that Disney does have that sort of diversified base that it can build from, unlike some

of the other mainly streaming players here. But on our last minute here, do you think Disney is making a play to be the streaming leader? Now? I mean, as you mentioned, it's got quite the content library. It's not a total substitution from the other distributions that they have, and I'm not sure it's something you want to stout the most that you're a streaming leader simply because it's going to be a very high turned business and one

that everyone is still trying to figure out. Disney is Disney because of its blockbuster movies, um, it's ESPN Sports, and also it's networks like ABC. You know, so it's a leader because it has just a great portfolio of media assets. Thanks Ken, good having you on with us this morning. Ken ley On, director of Equity Research at c f R A. Karen Nathan, Thank you. It is five fifty three on Wall Street. It's time for the Bloomberg Law Report. Let's get to the legal stories we

are watching this morning from Bloomberg Jeff Billinger. Sources say the Federal Trade Commission is set to take its first step toward consumer data protection rules that would govern businesses like alphabet meta platforms. Oprah Winfrey's company is suing to college professors over the title of a podcast. The professors say they're fans of Winfrey and they call their podcast

Oprah Demis. Hooters of America has hired a Lisa Pittman Cleek, a labor and entertainment lawyer, as its new chief legal officer. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. All right, Jeff, thank you.

Now another legal story we're watching. Former President Donald Trump is now suggesting the FBI planted evidence when agents searched as Mara Lago home, while other Republicans are demanding a full accounting from the Justice Department about why the search

warrant was carried out. Not much is known about what evidence was gathered in the unprecedented search, which was part of an investigation into whether Trump and properly took documents from the White House, But the critical question appears to be whether classified documents were seized. For more of Bloomberg student Grosso's feased, a national security law expert Brad Moss, a partner at Mark Zaide. Brad tell us a little

about the Presidential Records Act. The Presidential Records Act, which was created in the aftermath of Watergate, provides the outline the mechanism by which presidential records, everything created during the course of any president's tenure, are documented, logs, stored, and ultimately released to the public over of course of time.

But it's the property of the National Archives. What the Presidential Records Acts made clear, and this was fight that Congress had with Richard Nixon during Watergate, was that a president's records are not his, they are the public's record. So Rett. Earlier this year, the National Archives retrieved fifteen boxes of documents from Moral Lago and it was reported that they contained classified documents. So how serious is it if the FBI finds more classified documents in this latest search.

Very serious. And so here's how this works is a lot of people are getting confused because when Donald Trump was president, there's a lot of things he could do with classified information you can't do as a private citizen. The moment Joe Biden took the oath of office and became the next president, Donald Trump's authority to classify or

declassified information was gone. Any document that was still labeled as classified and had not been properly declassified in accordance with procedure and protocol had to still be treated as classified, had to be still be maintained in classified spaces, secured and classified containers. When Donald Trump took all these boxes to Marra Lago haphazardly didn't ensure that class of information

was removed from them. He took classified documents out of a secure space at the White House and put it in an unsecure space at Mara Lago and it's sat there for months. That is a violation of multiple different provisions of the Espionage Act. That is a very serious threat to Donald Trump right now. And what the FBI is most likely looking into is one, if there's any information left and to how it was held and how it was ever brought to Morrow Lago in the first place.

So then this is not just a record keeping problem. It's criminal charges, yes. And I have no reason to believe necessarily that there will be a Presidential Records Act type criminal charge, even if they could find a way to make that, because that sectually doesn't definitely have a criminal provisions that would not imagine a criminal charge based off simply the issue of documents. If all the documents

have been unclassified, there'd be no criminal issues. In my view, this is a problem for Donald Trump because they found classified documents at Mara Lago. He was no longer authorized to have them there. They had not been properly transported or stored. That is his problem. And as Brad Morris Moss, a partner at Mark Zad, speaking at the Bloomberg Student Grosso, catch more in that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or

downloading this show at Bloomberg dot com Slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b Law go. SMP future is moving higher up fourteen points down. Futures have one D thirty two and nasday futures of thirty nine. Still ahead of Bloomberg daybreak and check on the business headlines and all the news you need to start your day. This as Bloomberg