Bloomberg Daybreak: August 11, 2022 - Hour 2 (Radio)

loads of migrants to the city. Plus former President Trump leads the fifth I'm Michael Blaher. More ahead, I'm John stash Our. In sports, another win for the red hot Mets. The Yankees lost in Seattle. The Giants that their preseason opener tonight at New England. That's all's turning 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 Sirius XAM one nine team,

and around the world. The Bloomberg Radio Dot com and via the Bloomberg Business app. Think good morning, I'm Nathan Higger and I'm Karen Moscow. When US Dock Index futures are on the rise this morning. We are coming up to six o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg S and P Future is up about thirteen points now, Futures up one twenty five and NASDAG future is up

thirty three. Ten year treasury up to thirty seconds here two point seven six percent, and they yield on the two year three point one seven percent. Nathan, Well, Karen. The rise in futures this morning builds on yesterday's powerful rally. The SMP five hundred closed at a three month high, while the Nasdaq one hundreds up more than twenty percent now from its June bottom. It was all fueled by softer than expected inflation data. Alan Lands, director of research

at Lands Global, is skeptical all of a sudden. Now one CPI report and now you know, inflation is is calm and taking care of et cetera. So for some reason, investor, you know, ream stop sucks back, and you know it's just it's just a total exaggeration. Alan Land says he remains conscious. He was a guest on Bloomberg Business Week, herd Weekday afternoons on Bloomberg Radio and streaming live on YouTube. Well, Nathan,

the Wall Street rally is now spilled overseas. Stocks in Hong Kong and China search more than two percent overnight, and we get the recount from Bloomberg's Juliette Sally and Singapore. Good Morning, Juliette, Good morning, Nathan, and Karen Tex sches Bird gains in the regional index excluding Japan, which was closed for a holiday. China's bulls 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 wide 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, juliet thanks softening inflation data, Maybe exit adding markets but it's not changing minds at the FED.

Let's get that story live with Bloomberg's John Tucker John Nathan. Minneapolis Fed President Neil Cash car he wants the benchmark into his rate at three point nine percent by the end of this year and at four point four percent by the end of twenty 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 inflation remains unacceptably high and he wants to continue raising rates until 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 Daly, also adding to that call, the San Francisco FED president tells the Financial Times it's far too early to declare victory

over inflation. She's not ruling out a third consecutive bases point increase in September. Daily, by the way, is going to be on Bloomberg Radio and TV tonight at seven thirty Eastern Live in New York. I'm John Tucker, Bloomberg debreak. All right, John, thank you well. That sentiment from FED officials as being echoed by the U S. Commerce Secretary Gina Ramando spoke at 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 Ramando mentioned falling gasoline prices, and we

have more news on that front this morning. Triple A reporting the average price of gash in the US has now fallen below four dollars a gallon, and we get another reading 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 would be less than June's historic eleven percent increase. Bloomberg's Viny Del Judai says more gasoline prices could be the theme of today's report

falling gasoline prices. They've been slashing around for two months and accounted for almost all of June's and greasing US wholesale prices outside of fuel Bloomberg Economics as costs from Ain 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. Finney, Carl Judaic, Bloomberg debreak. All right, Finney, thank you. All Back now to the equity market. Shares of Disney up more than

eight 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 and Disney Plus streaming service by thirty eight percent. Beget 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 it was 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's able to do that, and Bloomberry so Luke as Shaw says,

Disney will introduce an and supported version of its flagship streaming service and raise the price of the ant free option to eleven dollars a month. Well, it's not just Disney on the move. This morning, Karen Shares of son Nos are plunging down nearly twenty percent in early training. Let's get the details live with Bloomberg. Tre need a Young, Good morning Grenita, 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 pressure and consumer sentiment. As a result, the company extended its timeline to achieve its previously issue targets to beyond fiscal year four. Sons is also saying CFO Brittany Badgeley is stepping down to pursue another opportunity and names Eddie Lazarus in term CFO Live

in New York. I'm reneed a Young Bloomberg Daybreak, I reneed a thanks Well, Shares a bumble are also following this morning, they're down more than seven percent. That's after the online dating app company trimmed its revenue forecast for the year. Again, futures this morning are on the rise. Straight ahead, we have your latest local headlines, plus a check of sports. And this is Bloomberg. Thank You're caring. At six oh seven on Wall Street, seventy five degrees

in Central Park. I got an accident in New York eastbound Root two at Freeland, His and Avenue. Michael Barr is here with more on what's going on in New York and around the world, including the latest on the migrant influx. Michael, yes here. Another bus load of migrants seven 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 a hundred migrants arrived in New York City from Texas. New York Mayor Eric Adam says he might send the bus load of New Yorkers to Texas to help Democratic gubernatorial candidate Beto O'Rourke ou Abbott from office. Abbott responded on Fox, go ahead, mayor, make my day. However, the mayor is 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 the Randy and official has had 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 has forty five year old Iranian operative Shahram por Safi offered three hundred thousand dollars to assassinate former National Security Advisor Bolton in retaliation for the killing of a top Iranian general in Kim Joanne's sister revealed that the North Korean leader suffered from a high fever and was seriously ill during a

recent COVID outbreak. She valed to eradicate South Korean authorities if they continue to tolerate propaganda leaflets the regime blames for spreading the virus. Global News twenty more hours a day on air and on Bloomberg Quick Take, powered by more than twenty d journalists and analysts or more than twenty countries. Michael Barr and this is Bloomberg. Nathan, Okay, Michael, Almost six ten on Wall Street. Time for the Bloomberg

Sports Update. Here's John Stannshower. All right, Nathan, the Mets still on fire. Another easy way, and they led the Red six to nothing in the third inning. They won ten to two. They've won six in a row and the last five and went allowed a total of nine runs. They've won fifteen of their last seventeen, and all but two of those fifteen wins have been by three wines or more. The schedule does get tough for Phillies are hot. They come to City Field tomorrow. They rallied to win

last night. The Fields have won seven a row twelve of thirteen. Mets then go to Atlanta for four games. The Braves won in Boston, they still filled the Mets by seven. After that series, the Mets will go to Philly for four. Yankees off tonight and then in Boston They'll try to salvage something out of this road chip that for the disaster so far. Swept in St. Louis.

In Seattle, they went nineteen innings without a run. Did come alive in the seventh with home runs by Kyla Gashioka Aaron Judge at his forty fifth of the year, but Seattle came right back bottom of the seven drives one right field. That ball is going Carlos Santana, a four three league. Carlos breaks it over for seven. Sea was whole non numbery eleven and the Mariners and they

chopping it up here the T Mobile Park. At four three of the final Cairo the call home one came off Alberta Breo after Nestor Cortez had pitched very well. He had a no hitter in the sixth. The Yanks just ten and eighteen or last twenty eight games. Dyersville, Iowa. Tonight the Field of Dreams game that the Yanks played in last year. It's that comes and the Reds Also

tonight the Giants preseason opener at New England. With a new coaching staff and only three preseason games now, new coach Brian Table wants to play his starters at least in the year over the going John's Dash Award Bloembrook Sports Nathan all Right, John, thank you. SMP futures up eleven points, Staff futures up a hundred twenty four Danastack futures higher by twenty one points. The tenure treasury is up to thirty seconds. The yield two point seven six percent.

This is Bloomberg Bloomberg eleven three oh weather. It will turn partly sunny this afternoon with highs near eighty five degrees. Mostly sunny, low eighties to end the week. Sunshine Saturday R eight right now seventy five and cloudy in Central Park. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Atland at Bloomberg Quicktake, This is a Bloomberg Business flash and I'm Karen Moscow.

US dot Index futures are on the rise this morning after the SNP five hundred hit a three month high. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. SNP futures up about ten points down, futures of A hundred fifteen and nastack future is up fifteen The decks in Germany's down at tenth of upper cent. Ten year Treasury up three thirty seconds, Yell two point seven six percent yield on a two year three point

one six percent. Nimex Screwede oil is up one cent or ninety one cent at ninety two dollars eighty five cents of Barrel Comics golled down four ten percent or seven dollars ten cents at eighteen o six sixty ounce. The euro one point oh three four zero against the dollar. British found one point to two one six the yen one thirty two point five eight. And look at a bitcoin this morning at two point one percent at twenty four thousand, four hundred twenty dollars. That's a Bloomberg business flash.

Now here's Michael Barr with more unless going on around the world. Michael Karen, thank you very much. Former President Trump appeared before New York's Attorney General force warned deposition as part of a civil investigation into his family real estate business. Trump signed at the fifth declining to answer any questions. US gas prices have dipped under four dollars a gallon for the first time in more than five months. Triple A says the national average is three nine nine

for a gallon of regular. In baseball, the Yankees lost to the marineris for 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 here and on Bloomberg Quick Take, powered by more than twenties seven hundred journalists and analysts, are more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan all right, Michael. Thanks At six nineteen on Wall Street Live from the

Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and that news we got this morning about gas prices falling finally below four dollars AGA and sets us up quite nicely for the conversation we've got teed up right now with Bloomberg Economics correspondent Michael McKee to talk about what else inflation? Mike, good morning. Uh, food and gas. Obviously, that's what a lot of consumers care about, you and me. But the Fed is looking past that, and it looks like the

market's kind of looking past the Fed. Yeah, it's a little bit odd that the market ure in disagreement with the Fed about two thousand twenty three. Mary Daily, the San Francisco Fed Bank President, makes marks yesterday to the Financial Times to that effect that she doesn't see any reason why you would be thinking you'd cut rates uh next year, given that the inflation fight is far from one.

All of the FEDE officials who spoke yesterday pointed out that, yes, we had a software than expected CPI report, but the year over year levels still eight and a half percent. Yeah, we're gonna hear more from San Francisco Fed President Mary Daily is gonna be on with Kathleen Hayes later on this evening, seven thirty Wall Street Time here on Bloomberg Radio. What more, Mike, do you want to hear from FEDE officials.

It seems like there's been h tell me if I'm wrong, a pretty fair amount of unanimity when it comes to staying aggressive keeping the fight up against inflation with aggressive rate hikes. Yeah, there's a general agreement that their work is not done, that rates need to go higher. We're in the range of two and a quarter to two and a half percent right now, and pretty much all of them are aiming to get to between three and three and a half percent by the end of the year,

so another hundred basis points. And then there's a bit of a division about how far you go beyond that. There seems to be a general feeling that once you get to three and a half, you can see what the data are telling you about inflation and about jobs, because of course they're they're keeping an eye on that as well. Uh, some like Neil cash Cary think they need to go as high as four and a half. So, uh, we'll have to wait and see where the terminal rate

turns out to be. But they've all made it clear that where we are now is not where we need to be. Yeah, there's a delicate balance, isn't there while they fight inflation while still trying to preserve I guess the strong jobs numbers that we've seen the labor market continues to thrive despite the more aggressive moves we've seen

from the Fed and the more aggressive talk. It's your surprised everybody with the July numbers earlier this month, and the question is can that continue a lot of job openings, but then you have the matching problem with the jobs that are open suitable for the kind of workers who are looking for jobs. We'll find that out as time goes on. But with unemployment falling to three and a half percent, even as inflation comes down, that's the best

of all worlds for the FED. Does that make the job tougher for the Fed to pull off the soft landing that everybody's looking for when we have this kind of strengthen the job market, It could work both ways. In a sense, the FED is happy because unemployment is so low that the labor market can absorb a little bit higher unemployment and a little bit less demand out there. But if we keep going the way we're going and unemployment stays low and companies can't find workers, that creates

more wage pressure. So if unemployment is not going up, you have to assume that wages are still rising, and that creates inflation pressure on its own. Expecting that we're going to get a little bit more clarity on the inflation picture later this morning when producer prices come out, because like you and many others have rightly noted, there's a lot of data between now and the next meeting, much less between now and Jackson Hole. Yeah, in terms of the p p I this morning, and it'll be

its own discrete indicator. It tells us what companies are receiving for their goods and services uh. And and that includes services, which is an important component of of all of this, and whether or not they are slowing the pace of rate hikes uh and not rate hikes, I'm sorry, price hikes. And so that's gonna be an interesting data

point for the FED to see. But because companies absorb a lot of their costs in their margins, this isn't going to tell us specifically what's going to happen to inflation going forward, but it is a data point along that road. Uh, you're absolutely right. Though. We have another CPI report, we have another jobs report, we have a retail el sales report coming up next week. All of

those will feed into FED thinking. So if you asked if ed official what they were going to do at the next meeting, they would tell you probably raise rates. But by how much that's an open question. And you have to think that all that data is going to feed into market volatility as well. Thanks for this, Mike, great having on with us this morning, Bloomberg Economics correspondent Michael McKee, As we await those producer prices doout eight

thirty Wall Street Time. And again another reminder, we'll be speaking live with San Francisco FED President Mary Daily seven thirty Wall Street Time this evening. Catch that conversation on Bloomberg Radio and on Bloomberg Television. Ahead of all that, futures still moving higher. SMP futures up ten points, some modest gains. STAL futures up a D eighteen. Nasdaq future is highed by eighteen points, but building off the rally that we saw yesterday off the back of consumer prices. Uh.

The tenure Treasury right now up four thirty seconds. The yield two point seven six yield on the two year three point one six percent Your list snake. It's a Bloomberg Daybreak Bloomberg eleven three oh weather partly Sunday today, mid eighties for an afternoon high low eighties, mostly sunny tomorrow for Friday sunshine Saturday high near eighty right now

seventy five and cloudy 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 oh six one to San Francisco, Bloomberg sixty to the country, Sirius XM chandle one nine team and around the globe the Bloomberg Business apt in Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's six thirty on Wall Street.

Good morning. I'm Nathan Hagger and I'm Karen Moscow. We're just about three hours away from the open of US trading. It's time for the five things you need to notice start your day. Brought to you by Interactive Brokers. Interactive Brokers charges margin loan rates from two point three percent to three point three percent. Their clients can also are an extra income by lending their fully paid shares of stock rate subject to change. Learn more at i dk

R dot com. Slash compare First US Future is adding to yesterday's rally if you'd by softer than expected inflation data and a Stajamroso, chief investment strategist and I 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. High Capital Center Stagia Muroso says positioning will be important for buyers and current market conditions. Really. Softening inflation data maybe exciting market scaren, but it's not changing minds. At the FED. We get that storyline from Bloomberg's John Talk

here John Nathan. Minneapolis FED President Neil kesh Carry says the idea of the FEDS 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 we get convinced that inflation is well on its way back down to two. At a separate event, the Chicago Fed President Charles Heavans said inflation remains unacceptably high. He expects the Central Bank

to be increasing rates into next year. San Francisco president Mary Daily didn't rule out a third consecutive seventy five basis point increase in September. Daily. By the way, It's gonna 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, you get more inflation data today with the producer price indext you out at eight thirty am, Wall Street Time, all right to Corverate News Now, Karen.

Shares of Disney or higher after beat third quarter estimates, and shares of son Nos are also moving this morning in the other direction, down now twenty percent. Bloomberg's You Need a Young joins us live with that Ranita. Good morning, Nathan Audio products makers. Still those cut its annual revenue view. Company executives are citing a more challenging macroeconomic backdrop. As a result, the company extended its timeline to achieve its

previously issued targets to beyond fiscal years. 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 right, we need to thank you. That's the five things that you need to notice start your day, Brought to you by Interactive Brokers and straight to hand your latest local headlines plus a check of sports. This is Bloomberg, all right, thank you. Karen six Wall Street,

seventy degrees in Central Park. Still got that accident new Ark. He's found twenty two at Freeland Haisen Avenue. More coming up in traffic. First, Michael Barr with what else is 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 load of about a hundred migrants arrived in New

York City from Texas. Abbott says it's a message to the Biden administration and the city's leaders about the flow of migrants at the border. Mayor Adams responded, there's nothing successful 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 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. 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 to Director Christopher Ray says he could not talk about FBI agents searching Mara 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, endangerous. FBI Director Christopher Ray spoke from his field office in Omaha, Nebraska.

The Justice Department has charged a member of a Rounds Revolutionary Guard Core with planning to assassinate John Bolton, Donald Trump's former national security advisor. The criminal complaint is against forty five year old Sharam por Safi, who remains at large abroad. Bolton says threats like these from Iran are par for the chorus for Americans to me the the Iranian nuclear weapons program and its support for this kind of terrorism are two sides of the same coin. This

is the real picture of the regime in Tehran. This is what it does. It threatens to kill him Americans. The alleged plot against former National security advisor Bolton was likely revenge for the killing of a top Iranian general when Trump was president. Global who was twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts, more than a hundred, twenty countries. Michael Barron, this is Bloomberg, Nathan Michael,

thanks almost six thirty six on Wall Street. John Sanshare has a Bloomberg Sports Up day and Yank Day there and Meti made six in a row fifteen of the last seventeen meet the Reds easily ten to two. Francisco Lindoor had another big game. He's already tied Jose Yas's record for most r b I s in a season by a Mets sorts stop. The Mets move thirty four games over five hundred. The Dodgers the only MLB team of the FEDA record. Dodgers last night won their tenth

in a row. They won on a pinch hit, three run homer by Joey Gallo when they just got from the Yankees. Nike's in Seattle went nineteen straight innings without a run, finally in the seventh home runs by gosh Yoka and Aaron Judge at his forty five, but Carlos Santana home at bottom of the seventh. The Mariners won four to three, Yanks, wasting good outing by Nestor Cortez. He had a no hitter going in the sixth Yanks just one in five on this road trip and now

takes them to Boston starting tomorrow. The Giants tonight Playette New England the preseason opening incase, Brian gay Ball asked about using his starter. Some guys have played a lot of football, some have played less. Everybody's in new systems here with with our system on offense, our system on defense. The kicking game is similar. But I think that's important for you know, to play football, to have live reptions. They've all at one time New England assistant as Giants coach.

Of course, from plays Joe Judge. He'll be on the other sideline tonight. He's not the Patriots quarterback coach. Jets have their preseason opener tomorrow night in Philadelphi and also tomorrow Cleveland at Jacksonville. Shaun Watson expected to play for the Browns, even though he'll be suspended for the start of the regular season. Tennis in Toronto, Serena Williams loss, He's gonna play the tournament in Cincinnati, then come to New York where apparently her swan song us John actually

at Bloomberg Sports our end of an era. Alright, thank you John. At six thirty seven on Wall Street. Time to take a look at stocks, some of the names moving in the pre market with Bloomberg's Laura, right, Laura, of course, the big corporate story this morning, Disney's earnings beat. We gotta dust stuff those happiest place on Earth metaphors again,

we ready do. We're in a whole new world of streaming to set Yes, Disney of eight nearly eight and a half percent in pre market trading, and look, total subscribers across all of Disney streaming platforms that include Disney Plus, ESPN Plus and Hulu is now two hundred and twenty one million. That is fractionally higher than its main competitor Netflix. And those games really came from the strength of the Disney Plus platform, which itself added over fourteen million subscribers

for the quarter, ahead of the Street's projections. But the losses are still heavy. At the direct to consume a business it law over a billion dollars. Disney have a solution though, They're going to introduce ads automatically on the Disney Plus flagship service and with their Disney Bundle. And if you want to avoid those adverts, you have to pay a little bit more. Three dollars extra a month on Disney Plus and two dollars extra a month for the Disney Bundle, So passing on that pursuit of growth

cost to customers. We saw some strength on the Disney park side as well. And I see you're keeping an eye on another travel name this morning. Yeah, the Cassa. So this is a name that was new to me. It has a market cap of around a billion dollars, up eighteen percent ahead of the US bell. It's a holiday rental company. The loss was much worse than feared here. It was a loss of two million dollars for the quarter, compared to the average analyst estimate of a loss of

seventeen million dollars. Now, the company has raised its four year guidance. That's off the back of strong demand. We've seen insatiable appetite to travel from customers. An analyst at jpmore going to say, look, the trends remained solid and the company may break even ahead of target potentially the end of this year. Now we have another big move on the downside this morning after a completely different earning story. Yes, down nearly. So this is the audio products maker known

for its premium home speaker Systems. I'm familiar with this company because my dad is obsessed with his installed speaker system. Every time my parents have a dinner party, he's putting his bespoke playlist on to impress the guests. But here the downside was looked strong dollar making exports more expensive, and inflation pressuring consumer sentiment. Now is these pre market losses hold Sons will face its biggest drop in value

in nearly four years. Analyst that stepl They admit these macro headwinds impacting consumer demand were far worse than they had originally expected, so not good news ahead of the open force on lull. My dad, Yeah, he's got to get more speakers around his room. Thanks Flaura, Thanks for this. Laura Right of Bloomberg News. With us checking out, the pre market futures are moving higher. SMP futures up eleven points, Staff futures up twenty nine Nasdaq futures higher by twenty

two points. This is Bloomberg Bloomberg eleven three oh Weather partly sunny, mid eighties today, low eighties, mostly sunny Tomorrow, sunshine Saturday with a high near eighties, low eighties, mostly sunny by Sunday. 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 Quicktake, He's a Bloomberg Business Flash and I'm Karen Moscow. And

Futures on the rise this morning. Let's go to the first word breaking news dance for today's morning call here as Tatiana Daria Tantiana, good morning, Good morning, Karen. Futures are higher, like you said, with a doubt leading the way. Those contracts up about one thirty four points, s and ps up twelve and nazjac app treasuries are also higher. The tenure Yale down about a basis point to two spot seventy six percent, Oil is up one and Bitcoin

is training above twenty four thousand. On the economic front today, jobless claims and p p I data at eight thirty. In early trading this morning, crypto stocks are higher. Marathon, Digital, Riot, Blockchain, and coin based Among the names regarding learnings, Disney app eight percent after reporting better than expected subscribers figures for Disney Plus and raised the price on the streaming service

by thirty eight percent. And dating at Bumble and Theme Park operators six flags, both down sharply after their numbers. In other news, Morgan Stanley cut its PC shipment estimates for the year, saying demand for the personal computers is weakening and wrapping things up here, first solo was Race to Overweight at Key Bank. Live from the First and Breaking News Desk. I'm Tatiana, Darya Karen Hery, Tatiana, thank you, and here live breaking news of your Bloomberg type squawk

on your terminal scue. You a w K and that's a Bloomberg business flash. Now here's Michael Barrow with Moore on what's going on around the world. Uncle Karen, thank you very much. Former President Donald Trump declined to answer questions related to business dealings in a scheduled deposition with New York State prosecutors. Trump invoked his Fifth Amendment rights

against self incrimination. The Justice Department has charged a member of around Revolutionary Guard Corps with planning to assassinate John Bolton, donald Trump's former national security advisor. Three people were killed when a house exploded in Evansville, Indiana. Almost forty other homes were damaged in the blast. In baseball, the Yankees lost to the Mariners, for 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 Quick Tank, powered by more than journalists and analysts more than twenty countries. I'm Michael Barren. This is Bloomberg, Karen Harry, Michael, thank you. It is sixty nine on Wall Street. We turned to news and science and technology now with the Bloomberg n j I

T STEM Report. It has brought to you by New Jersey Institute of Technology, ranked a top fifty national public university by US News and World Report and at top ten in the nation for engineering by money dot Com. Learned more at nj I T dot Edu and here's just making news and science, technology, engineering and math. Gas price is dipping to just under the four dollar mark for the first time in more than five months, triple Asia's The national average for a gallon of regular is

three dollars ninety nine cents. Prices have dropped fifteen cents in the past weekend sixty eight cents in the last month. COVID cases in China are at a three month high. Almost half of the nearly two thousand infections came from Haynan Island, where tourists had thronged in search of rest.

Spite the fast growing infection rate cast down in a and government school of achieving zero community transmission by tomorrow, and Apple stepping up it's spending on original podcast Its signed an agreement with a Pulitzer Prize winning studio, and it's holding talks with other companies about additional deals. The iPhone maker is looking to add original content to its podcast app that it hops could eventually turn into shows

on its Apple TV Plus service. Sources say the deal in agreement with Futuro Studios, the maker of the criminal justice series Swave, will fund development and production of podcasts and as a Bloomberg and j I t Stem report, Nathan,

all right, Karen, thank you. We are live from the Bloomberg Interactive Brokers Studios, where it's just about six fifty one on Wall Street Time Now to check what's going on in d C. Some of the top stories in our nation's capital include former President Trump leading the fifth with New York's Attorney General, Republicans vowing revenge for Trump probes if they take over Congress, Trump campaign staffer is released from nondisclosure agreements, and Speaker Pelosi warning against China

establishing a new normal in Taiwan. Let's get more on all these stories now with Bloomberg. Government congressional reporter Jack Fitzpatrick. Quite the breaking news yesterday, Jack, the former president invoking the Fifth Amendment something that he said in the past, means you're guilty. Yes, uh. For one, that there's a bit of hypocrisy. This is the kind of thing that doesn't play very well, uh for former President Trump on

the campaign trail if he were going to campaign. Also, it can matter in this case if they're going to bring a lawsuit. In a civil lawsuit, jurors are allowed to draw a negative inference about people pleading the Fifth whereas in a criminal suit they would be directed not to take that into consideration. So it's not a great a great sign for President former President Trump. We still don't know if they're going to bring the case and what's gonna happen next on the New York Attorney General side.

But yes, the the sort of imagery of it, as well as any potential legal repercussions are not really a positive thing for Trump. Does it change things Jack. For Republicans who up to now have been really rallying around the president, particularly after the FBI search of his home in mar Lago, Florida, it seems like they've really been circling the wagons, showing support for the former president against federal government that they say is overreaching. Yeah, it does

not seem that that has changed. Uh. You know, maybe there will be a little bit more of a reaction to Trump leading the fifth and this separate issue, the civil case. But there was quite an outpouring of support from high profile Republicans, uh following the FBI raid. You know, Kevin McCarthy tweeting at Merritt Garland saying preserved documents and

clear your calendar. Some very clear implications that if Republicans managed to win the House and or the Senate, UH, their oversight duties and their control of the probably House Oversight Committee and the judiciary committees in the House and Senate would focus on investigating this kind of thing. If there's not a clear answer by the d o J uh. So the pressure is definitely on the Department of Justice.

And it does seem that high profile, important Republicans on Capitol Hill are very much sticking by former President Trump. Does this turn into something that could galvanize voters heading into the general election in November? Is this something that energizes more than the GOP base? The idea of showing support for the former president by casting a vote for Republicans in Congress. It clearly seems to energize the base.

But is this the kind of thing that uh that gets independence or or people who may not be that motivated going. It's a bit inside baseball, uh to get into these, you know, it's it's a ray on his home. We still don't know exactly what information is going to come out from the FBI and when they're going to

provide more information. Uh, So between now and November, it's a bit hard to say how this plays into the mid terms, how it might play into But yes, clearly, people who were with Trump all along are are very very animated about this. It does seem as though Democrats, particularly of President Biden, are starting to feel like maybe the economy is something they can run on now, particularly after the consumer price index came in a little bit

cooler than expected. Yeah, I don't know if they're going to be running on the economy wholeheartedly. But you know, I think cautious optimism is essentially the response by the Biden administration. They've said that this is good news. It's essentially a month pause in the increase in prices from June to July. But obviously, you know, you look at the year over year number in July and that was an eight and a half percent increase. So this is

also something that Republicans are campaigning on. They're still saying the overall these numbers have been very bad, Uh, in the in the longer run over the last year plus. Uh, It's it ties in well though with the progress on this major tax and energy and prescription drug pricing bill that the House wants to pass on Friday. Uh. You know, there there's been some good news for Biden after a really rough stretch and for for Democrats running for re

election in the mid terms. I wouldn't say they're feeling great about the state of the economy and how it has reflected on them, but a lot better than you know, maybe a couple of months ago. Yeah, I'm sure the President is hoping that that Inflation Reduction Act is going to be sort of the capper on a string of bills that he's managed to be able to sign. Over the last few days, there's been quite a number of legislative progress moving forward for the president here. Is it

having any impact though on his approval ratings? Uh, it's not as if his approval rating has turned around entirely. We've seen a little bit of an uptick, but he was that's in the context of him being way down in the the low forties and many polls and uh, in the percentage of his approval rating. It's not the kind of thing that changes Biden into a major strength for vulnerable Democrats running for re election. You know, it

doesn't necessarily have been changing. You know, for example, you saw when there was progress made on this Inflation Reduction Act, you saw someone like Dean Phillips in Minnesota say that he doesn't think that President Biden should run for reelection. Uh. There there's still some wariness about exactly where Democrats stand heading into the mid terms. Uh. And yes, there's a bit of momentum for their legislative accomplishments now, but does

does that turn the economy around by November? Probably not. It's more long term issues they're having some six us with Okay, Jack. Thanks for this, as always, Bloomberg Government Congressional Reporter Jack Fitzpatrick, and you can read more about these stories on Bloomberg dot com or on the Bloomberg terminal. Follow all the latest on Bloomberg Radio in Washington. Bloomberg one and one oh five point seven FM, h D two SMP futures right now, they're up thirteen points. Staff

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