Bloomberg Daybreak: August 16, 2022 - Hour 1 (Radio)

Sarah Palin in Alaska. And the d o J opposes the release of an affidavit in the search of Donald Trump's home stabbing issues, gauze headaches at New York City airports, plus former Trump attorney Rudy Giuliani is the target of a criminal pro On Michael barn More Ahead, I'm John Standstown. A sports rough night for New York baseball. The Yankees were shut out again. The Mets lost in Atlanta thirteen to one. That's alls training head on Bloomberg Daybreak on Bloomberg.

He liveing Free on New York Bloomberg one, Washington, d C Bloomberg one oh six one, Boston Bloomberg nine sixties and Francisco Sirius XM one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business app. Good Morning, I'm John Tucker and I'm Karen Moscow. US futures are little change this morning. We are coming up to five oh one on Wall Street, and we checked

the markets every fifteen minutes throughout the trading day. On Bloomberg right now it's in p futures are little change and so are down a nownsday features the decks in Germany is up eight ten seven percent. Ten Your treasury little change, yell two point seven eight percent. They yield

on the two year three point one nine percent. Nine Max screwed oils down one point one percent on a dollar one at eighty eight dollars thirty eight cents of barrel Comics gold is down four tenths percent, or seven dollars seventy cents at seventeen ninety announced and Bitcoin this morning is lower, down a third of a percent at twenty three thousand, nine hundred dollars. John and Karen, we begin today's session with US stocks at a three month high.

Spire his game for four straight weeks, its longest winning streak this year. Hanks Math is chief invest an Officer at Haverford Trust. Now, I think it's anticipating that we are beyond peak inflation um and that a lot of factors, including the federal reserves policy, is starting to unwind inflation and and perhaps perhaps the said might get lucky and

engineer is somewhat soft landing have for trust. Hank Smith says the next batch of retail earnings could be key for the markets, and John, we start hearing from some of those retailers today. Walmart reports less than two hours from now. We get a preview from Bloomberg's Jeff Bellinger. The giant retailer issued a business update less than a month ago in which it lowered its profit outlook, so

Bloomberg Intelligence says today's really should hold few surprises. Inflation has been a significant headwind for Walmart, causing customers to spend more on food and less on discretionary items. B I says a sales event in June may have helped to reduce some inventory, but Walmart will likely need further markdowns to move over stocks of clothing. Jeff Bullinger, bloom Bird Day Break. Thanks Jeff on Wall Street, we're learning what some of the world's biggest money managers doing with

their stock portfolios. Let's get the very latest lie from Bloomberg's Renva Good morning Reneita, Good morning John. During the latest quarter, Stanley drugcon Miller's family office offloaded Big Tech, selling its entire one million dollar position in Amazon and scaling back at steak in Microsoft. Sorel's fund management boosted

its steaks in Amazon Salesforce and Alphabet. Berkshire Hathaway eliminated a Verizon steak and boosted other bets, including Occidental Petroleum, increasing its investment there more than it did in any other firm. But Apple remains Perkshire's largest holding, and Michael Berry's Scion Asset Management exited all equity positions except one. It added, private prison operator Geo Group, Scion's only stockholding

as of the end of June. Live in New York, I'm rened a young Gimberg daybreak, I really need to thank you. While Apple is making news this morning, Bloomberg News has learned the company has laid off many of

its contract based recruiters in the past week. It's part of a push to rain in the tech giants hiring and spending, and in another development, Apple has said a September five deadline for corporate employees to be in the office at least three days a week COVID spikes disrupted Apple's previous attempts to have workers back in the office, and let's turn to politics now where it's primary thing.

In Wyoming and Alaska, Representative Liz Cheney is racing for a loss, while the former vice presidential Candida Sarah Palin looks the stage of political comeback, and Bloomberg's Amy Morris has more from our news room. In Washington, Cheney is all but certain to lose to challenger Harriet Hageman, who has former President Trump's support and leads by nearly thirty percentage points in the polls. The Cheney supporters say she's

already charting a rebound. In Alaska, former Governor Sarah Palin is trying for a comeback in the open race for the states sole seat in Congress. Her critics say she's been more visible on right wing TV in the lower forty eight than in her own home state, but she has Trump's endorsement. Also in Alaska, Senator Lisa Murkowski is in a re election fight against Trump supported candidate Kelly Shabaka.

In Washington, I'm any more, as Bloomberg Daybreak remy, thank you, we also have news about Donald Trump's battle with the Justice Department. The d o J says it's against the release of an affidavit justifying a search warrant for documents at the former president's Florida home. The search warrant itself has been released, but the Justice Department says that affidavit

includes sensitive information about the investigation. St. John's University law professor John Barrett says it's a standard move by the d J. It's the details of what surveillance information, what informant information, what choer course and dealings led the government to believe that there were classified documents in mar Laga,

and that's all highly confidential and actively part of an investigation. St. John's University law professor John Barrett was a guest on Bloomberg Sound on Catch the program weekdays at five pm Eastern on Bloomberg Radio and Geo Politics. Also in focus this morning, China says it's going to fight back against the latest congressional visits at Taiwan. That story from Bloomberg's and Baxter. It says it will increase patrols both air and c to provide a resolute response. In an exclusive

interview with Bloomberg editor in Chief John Micklethwaite. Singapore Deputy Prime Minister Lawrence Whang says China and the US mistakenly could sleepwalk into a conflict. We are starting to see a series of decisions being taken by both countries that will lead us into more and more dangerous territory. Wang says, neither side wants open conflict, but it's very concerned a mistake could happen. In San Francisco. I'm at Baxter Bloomberg daybreak, all right, and thank you. N S and P Futures

are starting to extend their declines. They're done about six points now down, futures down fourteen and as a future is down about eighteen. The decks in Germany is up about seven tenths of upper cent and the tenure treasury down one thirty second yeld two point seven nine percent, the yield on the two year three point to zero percent. Straight to had your latest local headlines plus the check

of sports, and this is Bloomberg. Thanks Wall Street. Time to bring in Michael Barr with more on what else is going on in New York and around the world. John, thank you very much. Travelers at New York City area airports, were told by the FAA to expect delays because of airline staffing shortages. Staffing at a facility that manages the air space for all three major New York airports is

said to be the problem. The f A later tweeted that the problem had been solved and things at the big airports in the New York City area we're getting back to normal. Not soon enough for these people they were grounded. Maybe we'll start driving, Maybe that'll be better,

and maybe we'll see. With the industry struggling with pent up demand for travel and a system that's understaff, post COVID airports, blame the airlines, and the airlines blame the f A. A. Prosecutors in Atlanta have told Rudy Giuliani's lawyers that he is a target of their criminal investigation and possible illegal attempts by then President Donald Trump and others to interfere in the general election in Georgia. Juliani says, you do this to a lawyer, we don't have America anymore.

Russia and Ukraine blame each other for the renewed shelling near a nuclear power plant in western Ukraine. State Department spokesperson ned Price says the US is closely monitoring the activity at the plant. We believe that the fighting there is dangerous, it's irresponsible, and we do continue to urge into all military operations out of near Ukraine's facilities in the return of full control of those facilities. Ukraine State

Department spokesperson ned Price. The efforts to continue to bring w n B A star Britney Grinder and fellow American detaining Paul Wheeland back from Russia but continues. Grinder's attorneys have filed an appeal who was recently sentenced to nine years in prison in Russia. Bill Richardson, who has worked in hostage negotiations through his position at the Richardson Center for Global Engagement, says he has talked to both sides.

It basically says the legal process is over except for the appeal, and it's reasonable to have this appeal nine years sentence in a penal Connolly. Now there can be negotiations between the United States and Russia. Bill Richardson believes Grinder's legal team has been effective. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven journalists and analysts in more than a hundred twenty countries. I'm Michael Barr, and this

is Bloomberg. John. Michael, thank you as a five cent of wal previous time for the Bluebird Sports Update. And good morning John. All right, good morning John. It's more than just a little slump now for the Yankees. This has been going on since the All Star break when the Yanks were flying high at sixty four and eight. But since then, twelve games, only two wins and shut out four times, including each of the last two nights they were back at the stadium. They lost four nothing

to Tampa Bay. The Rays used five pitchers, They took advantage of a misplaying center field by Aaron Hicks for one run, and they got three more with two outs in the ninth in a not a good situation. And yet, as always Aaron Boone looks on the bright st there's some good things happening. Our starters continue to really throw the ball well. A number of guys out of the pen um, you know, even though loose struggle tonight, are

are throwing the ball well. Um, we just gotta get some guys on tracked offensively right now, and and get guys that should be key contributors. Contributing like they're capable of Hicks in particular has been a real problem five for his last fifty three. Yanks had one story threat last night and then Hicks in and with double play. The Mets had not at a game like last night almost all year. They lost in Atlanta thirteen to one,

Braves with an eight run sixth inning. They hit three home runs, the top two in the Atlanta or to Ronald Lacuni and Dansby Swanson combined for six hits, six rbi. Seventh straight win for Atlantis, They'll end it. Pras are only four and a half games behind the Mets. Eightieth win of the year for the Dodgers. They've won thirteen and fourteen, and this after learning that Walker Bueller, was fourth of the Cy Young voting last season, is out

with an elbow injury. The Texas Rangers have fired their manager, Chris Woodward. Pete Carrill has died at nine two. He coached basketball at Princeton for twenty nine years, one thirteen IVY League championships. John Stashward Bloomberg Sports, John all Right, Thanks, John had ahead of the Cash Show called on Wall

Street futurest right now, they are in the red. The down futures down twenty six points at thirty three towns at eight hundred forty seven smp E Mini futures eight points lower, down about two tenths of a percent right now, and that as Tech futures twenty five points lower, that he is down two tenths of April Sat ten year

yield to seventy nine two year three twenty. This is Bloomberg just ahead on Bloomberg Daybreak, followed the Smart Money with something called the thirteen f Bloomberg's Alex what will be here to explain You're listening to Bloomberg 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 Flash, and I'm camerin Moscow.

US Dock Index futures are lower this morning. The dollar is rising as investors are concerned about signs of a sharp economic slowdown, even as the Federal Reserve stays in the path of monetary tightening. Check the markets every fifteen minutes throughout the trading day on Bloomberg Guess and p Futures down almost seven points down, futures little change and now stack futures down about twenty one. The jacks in

Germany's up six tensive up percent. The ten year treasury down three thirty seconds l two point seven nine percent. They yield on the two year three point to one percent. Nimex screwed oil is downe about three tents of upper cent or twenty seven cents at eighty nine dollars, sixteen cents of barrel co mix school is down a third of per cent or six dollar sixty cents at sevente fifty announce the euro one point one three eight against the dollar, British found one point to zero four nine

and the end one three point nine nine. And looking at bitcoin, it's down about about a tenth of a percent. It's at twenty four thousand dollars. Today, we'll still get a look at housing stars and building permits out at a thirty Wall Street time, Industrial production capacity utilization around at nine fifteen, and home Depot and Walmarter among companies schedule to report earnings today. That's a Bloomberg business flash. Now here's Michael Barrow with more on what's going on

around the world. Uncle good morning, Good morning, Karen. The Justice Department said it opposes the release of an FBI f A David justifying the search for it used removed documents from former President Donald Trump's Mara Lago home in Florida. Last week. The d o J asked the judge to keep the filing sealed due to the investigation that implicates national security. It is primary day in Wyoming and Alaska. Republican Congresswomenalist Cheney is fighting to keep her seat after

voting to impeach Trump. In baseball, the slumping Yankees lost to the Raise for Zip. The Braves put on What For and Why? Whipping on the Mets thirteen one, The Nationals Orioles and Giants won the A's lost. Global news twenty four hours a day on here and on Bloomberg Quick Tank, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Hi, Michael Barr, and this is Bloomberg's thank you. I think Michael. It

is now five twenty on Wall Street. We are lying from the Bloomberg Interactor Broker Studios. This is Bloomberg Daybreak. Regulations require institutional investors who manage more than a hundred million dollars to file something called a thirteen F forum. Uh. They lay out the firm's equity holdings as at the end of the most recent quarter. You can actually follow the smart money. Now we're joined by Alex Webber, a Bloomberg quick take, So give me the highlights. Were the

big names? Where are they holding or not holding? Alex? The two big I think takeaways were big names that we should be watching a really Berkshire Hathaway Michael Burry

Berkshire Hathway. Of course, we're in Buffett had made significant investments in the prior quarter, buying up forty one billion in net stock purchases this quarter, in the second quarter he made just three point eight billion dollars in purchases, which seems to suggest something about the direction of travel in his mind that maybe he thought the bottom was there he bought it previously. That's maybe an influence you

can take. Michael Burry meanwhile, of course, famously from the Big short, has cut all of his long stock holdings to just one this one. He has bought a company called the Geo Group, which runs prisons. It's a private prison for it, I would love to get a read from that on the logic behind that deal. But he's been getting a lot of attention on social media recently for his bearish calls saying that the situation could be

as direst the two thousand and eight financial crisis. So those are the two big names I think getting the headlines all right, Uh, dive a little deeper. You have Tiger Global Management and the Soros Fund Management. Um, what are they buying? They seem to have made quite a shrewd call. They piled into the some of the big text stocks and did so just before the big spike that occurred as the fed UM signal, or on the optimism that the FEDS tightening wouldn't be as aggressive as

previously thought. Tiger Global buying into Alphabet Docu, signed Zoom amongst others, and Sauros was I was checking my data here. I think getting into Amazon which others had not been doing. Others have been getting out of Amazon now. Obviously with the Amazon and stock, it depends whether you're playing it on its e commerce prospects or on its cloud opportunities, and the senses that maybe the cloud opportunities are slowed down.

But if if people's are turning to the more spendthrift opportunities for for commerce and maybe Amazon with maybe it's cheaper offerings, it is a good place to do that. You don't know why they are some exident or added these holdings and is this essentially a look in the rear view mirror. I mean, what as an individual adverse ture? How valuable is all this stuff? And it is almost in a sense, it's almost like the gossip pages of what's of the what's happening at these hedge funds. You

get a sense of, oh, they're doing this. Then it's almost like this person is dating that person, right. You get a little bit of insight into what they're doing. You don't necessarily hear the logic behind it unless they decided to come out and make a public statement. And of course, for every company that goes into one particular stock,

there might be another that leaves that particular stock. But for the direction of travel, you can sometimes get some useful insights, which is why I high I highlighted Berkshire Hathaway and Michael Burry, these two big names seen as you know, almost Bellweathers or certainly strong views on the market sense of direction and visa names that people are keen to follow. Also, it's find an interesting with Ray Dalio.

He's one of the he's been a long time ball on China, yet his recent positions reflect maybe a little different thinking when it comes to the world's second biggest economy and the companies he's held there. Yeah, he's got out of both Ali Baba and j D dot Com, huge e commerce sites in China. We've obviously seen a lot of confusion coming out of China on the way, particularly the way they are addressing their big text stocks, and there has been a crackdown which doesn't quite seem

as though it's over. We you know news recently on on ten Cent exiting some of its its portfolio companies, not least Matuan. The assumption for some is that is a response to the ongoing pressure these companies are facing as China tries to rain in the size of its of its tech giants. Alex, always a pleasure. We appreciate you being with us this morning, Alex Webb Bloomberg quick take, and of course you could read more about these thirteen

F filings. Who's buying, who's selling at, what are they buying and what are they selling on Bloomberg and ahead of the cash open on walstreef down futures right now twenty two points lower. Smp E mini futures they're down seven points, and the nast day features twenty five points lower.

As we look at the treasuries right now, the inversion between two's and tans out forty one basis points negative forty one basis points, the two year yield at three point to zero percent, the tenure at two seventy nine. And as we'll look at the commodities this morning, we have NAMEX cruded down thirty six cents right now at eighty nine oh five of barrel. And you are listening the Bloomberg's Game break and the Bloomberg Weather fort today

from Rob Carolin. Mostly Sunday. The high temperature in the mid eighties, so I partly cloudy, sixty to seventy. Tomorrow's outlook partly mostly Sunday, chance of some afternoon showers be high about eighty degrees. Broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg e Living Freedland to Washington, d C. Bloomberg to Boston Bloomberg one O six one to San Francisco, Bloomberg now sixteen to the country, Sirius XM Chad A one nineteen and around the globe, the

Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's by thirty on Wall Street. Good morning. I'm John Tucker and I'm Cameron Moscow. We are just about four hours away from the open of US trading. Let's get you have to date on the news you need to know at this hour, and we begin today's session with US stocked at a three month high as despite concerns over inflation, potential recession and tightening from the Fed.

Julie Bill is portfolio manager at Kane Anderson Redneck. The worries that you can kind of stay out of trouble, I think is investing in businesses that typically just serve other businesses. And I like software because they have high levels of recurring revenue and very good profitability. I think that makes them more durable. Julie bl with Kane Anderson Redneck says it's crucial for the FED to reign in inflation. Now, well, those concerns linger on Wall Street. We're also watching earnings

we hear from retail giant Walmart this morning. Bloomberg's Charlie Pellett has a preview analyst survey by Bloomberg. See Walmart reporting second quarter adjusted earnings per share of a dollar sixty three on revenue of one hundred fifty one point one billion dollars. Walmart's insights into shopper behavior will be under scrutiny. Was analysts clues about how soaring inflation will affect spending during the rest of the year. The retail

giant cut at earnings outlook three weeks ago. In New York, Charlie bloom Bird day break. All right, Charley, thank you about sticking with corporate news. Apple is turming its head count. The company laid off many contract based recruiters in the past week, and it's also set a September five deadline for corporate employee used to be in the office at least three days a week. Stocks sold off in the second quarter. We're learning what some of the world's biggest

money managers did with their portfolios. Bloomberg's We Need a Young Joints is live with more We need a good morning, Good Morning John. During the latest quarter Stanley Drugon. Miller's family office sold its entire one million dollar position in Amazon and scaled back at steak in Microsoft. Sorel's Fund Management meanwhile boosted its steaks in Amazon Salesforce and Alphabet berks Are Hathaway eliminated a Verizon steak and boosted its

other bets, including Occidental Petroleum and Michael Burry's Scion. Asset Management exited all equity positions except private prison operator Geo Group. It's only stock holding as at the end of Gin Live in New York. I'm gonna need to Young Bloomberg daybreak. I ready to thank you all to politics now. It's primary day for voters in Wyoming and Alaska. Representative List Cheney is bracing for a loss against Trump back challenger

Harriet Hageman. She leads Cheney by nearly thirty percentage points in polls. Former Vice presidential candidate Sarah Palin is vying for Alaska's soul seat in Congress and also has Trump's bagging, And Alaska Senator at Lisa Murkowski faces Trump back Kelly Chabaka and straight Ahead your latest local headlines. Senate check is sports and mr is Bloomberg. Well, thanks Karen three on Wall Street, and it's time to bringing Michael Barr with more on what else is going on to New

York and around the world. John, thank you very much, Sarah. Travelers at New York City area airports, including JFK, LaGuardia and Newark were told by the f a A to expect delays because of airline staffing shortages. The f a A leader tweeted that the problem had been solved and things at the big airports in the New York City area we're getting back to normal. Yesterday, this college student missed here connector from Newark to get to Syracuse, New York.

She told news for she had to spend the night at the airport. They only had like two hours at this airport and had to um change channels and the next flight to Circus is in the morning. The problem was said to be staffing at a facility that manages the airspace for all three major New York airports. Rudy Giuliani is a target of the criminal investigation into possible illegal attempts by then President Donald Trump and others to

interfere in the twenty general election in Georgia. Prosecutors informed attorneys for the former New York mayor turned Trump defender. Meanwhile, Fulton County District Attorney Fannie Willis is said that she is considering calling Trump himself to testify. Meanwhile, Allen Weiselberg, the Trump organizations longtime CFO, is said to be in plee talks with state prosecutors to resolve tax fraud charges.

The effort to bring w n B A star Britney Grinder and fellow American detainee Paul Wheeland back from Russia is ongoing. Grinder was recently sentenced to nine years in prison in Russia. Her attorneys have filed an appeal. Bill Richardson, who has worked in hostage negotiations through his position at the Richardson Center for Global Engagement, says he has talked to both sides and is optimistic both sides are moving

in the right direction because they've done it before. Despite the fact that the relationship between the United States and Russia is toxin. Bill Richardson believes Grinder's legal team has been effective. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. Michael Bard, this is Bloomberg, John, Michael. Thanks, it's now five.

I thought Wall Street. Met's time for the Bloomberg Sports Updake. Here's John stas Shower. Thanks John. First place, Matt's first place Yankees, And yet last night they both lost and by a combined score of seventeen to one. Mets pitching has been so good, just had back to back shutouts to the Phillies, eight games in a row where the Mets did not allow more than two runs, and yet the Braves last night three runs off Carlos Carrasco and then in eight run sixth inning to win thirteen to one.

Since those thing four or five at City Field, Braves had won seventh straight. They're backed within four and a half games with the Mets. Three more games remain in this series in Atlanta, and the Mets have lost infield of Luis ki Or made of a groin injury, and Mets manager Buck show Walt just played without shore Burn, Yankees playing without Stanton m These guys have played without people.

I mean, it is what is yea He's stable so it was so it's Jake de grom So it's uh, you know, Nemo has been down and Neil's been down. I mean, and this is what it is. Yankee injuries have certainly heard them. D J the Mere the latest to be added the line up. Still remarkable how poorly the Yankees of way lately. After being so good for three months, they dropped ten last twelve. They've been shut

out four times. Tampa Bay got a near perfect game on Sunday from Drew Asmuss, and last night the stadium they used five different pictures and one four to nothing. Garrett Cole last two starts has allowed a total of one run, has gotten no run support. Tampa Bay Blops have signed veteran defensive lineman Carl nasse If. He's the one who a year ago, while with the Raiders, came out as the NFL's first open the gay player. He

has been with the Bucks before. There was a report that Kevin Durant would retire before playing again for the Nets. Katie posted on social media not true. He has said he wants to be traded with the Nets. Don't fire coach Steve Nash, MGM, Shawn Marks, John Stashower Bloomberg Sports, John all Right, thanks, John and tutting Down for the Try and State Business Report. For that we're joined by

Bloomberg's Ed Quarry Robert Refkins Company. Compass spent more than a billion dollars to become a go to home seller in New York as well as Miami and l A, but it has yet degenerate an annual prophet it gets ready to brief investors on second quarter earnings, Compass will have to explain how affirm that couldn't make money in

the hottest housing market ever can turn a profit. As things cooled down, a gauge of New York state manufacturing plunged by the second most in data going back to two thousand one, with sharp declines in orders and shipments that indicate an abrupt downturn in demand. The Federal Reserve Bank of New York's August General Business Conditions Index slumped more than forty two points. New York City is scheduled to sell about a billion dollars worth of general obligation

bonds this week. It's also planning a billion dollars in revenue bond sales on August. According to a news release that your Bloomberg Trying State Business Report by ed Coreys five thirty eight hund Wall Street Bloomberg radios on the air from San Francisco to New York, London to Hong Kong. Let's check in now with our global news stand for some of the top stories heard on our three hundred affiliate radio stations around the world. Um when you Donahoe

on Cafebe and Omaha Berkshire. Hathaway cut its stake in Bison on the second quarter. I'm Gina Servetti and for Double News c CEO in Minneapolis. I'm reporting that three M has resumed its fight to halt lawsuits filed mostly by veterans who say the company's combat earplugs caused hearing damage. I'm Stephen Carol and Bloomberg DAB Digital Radio in London. We've been reporting on the latest UK jobs data showing the peak tartness and the labor markets may have passed.

I'm Ad Cory on w A T A M in Cleveland. I'm reporting Baron's calls progressive of the country's best run auto insurer, and those are some of these stories are twenty Bloomberg journalists and analysts are working on this morning around the world. Nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Six months into Russia's invasion of Ukraine, the democratic world has come together to impo was punishments

on President Vladimir Putin and his enablers. Yet that has not stopped the bloodshed, and Putin is betting that Western unity will crumble as winter sets in and Europeans find themselves squeezed by rising food and energy prices. Proving him wrong will require Europe's leaders to prepare their countries for a protracted war and increase support to those least able to shoulder its costs. Above all, Europe's leaders must urge

the public to be patient. The moral outrage and solidarity of the West has bolstered Ukraine's morale and helped its forces withstand rushes onslaught, but the fight to preserve the country's freedom won't and soon. The senatorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or O P I N go on the Bloomberg terminal. This has been Bloomberg open in and Bloomberg Opinion editorial is gonna be heard

every week day at this time terminal customers. You could read more at the O P I N Go head of the open on Wall Street futures see in the red right now down futures thirty two points, lower, SMP futures down to eight and the domesday futures down twenty seven points, and the Bloomberg Weather from meteorologist Rob Caroline expects sunny skies today in the mid eighties, partly cloudy, tonight low seventy and tomorrow's auto partly mostly sunny. Could

see some anthnon showers with the high temperature. Eight markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape He's a Bloomberg Business lash and I'm Karen Moscow and US Knock Index features are lower this morning. The dollar is rising. Investors are inserted about signs of a sharp economic slow down even as the Fed stays on the path of monetary tightening, and but check the markets

every fifteen minutes throughout the trading day. On Bloomberg, SNP future is down about eight points. Right now. DAL futures they're down to twenty five and as day futures down twenty eight. The decks in Germany's up six tenths of a percent. Ten. Your treasury down to thirty seconds yield two point seven nine percent, The yield on the two year three point to zero percent. Nine mex screwed oil is down half percent or forty two cents at eighty

eight dollars. Ninety nine cents of barrel comes go down four tenths percent or seven dollars seventy cents is seventeen ninety forty announce the euro one point zero one three against the dollar, British found one point two zero two four and again one thirty four point one five. And looking at bitcoin it is up the tenth of up percent at twenty four thousand, one hundred dollars. That's a bloomberg USUS slash. Now here's Michael Barr with more on

what's going on around the world. Michael Karen, thank you very much. The Justice Department as opposing calls to unseal the f David supporting the search of former President Trump Samara Lago Home. The o J has called a grand jury and has witnesses cooperating with its probe focus on the mishandling of those sensitive documents. Wyoming Congresswoman Liz Cheney, who is a leading face in the January six Ryant investigation, is fighting to save her seat in the House. Today.

Voters in Alaska as well as Wyoming are weighing in on the direction of the GOP in primaries. In baseball, the slumping Yankees lost to the raise for ZIP. The Braves put a what four and why whipping on the Mets thirteen one. The Nationals Orioles and Giants won the A's lost. Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than h twenty countries.

Michael Barr and this is Bloomberg Arran. All right, Michael bart thank you well. It's five of forty nine on Wall Street. It's time for the Bloomberg Law Report. We get to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger. The Internal Revenue Service announced that infest rates will increase in the fourth quarter, which starts October one. The rate of interest is determined on a quarterly basis

under the i R S Code. The Labor Department cited International Cushioning of Ohio for twenty five alleged serious safety and health violations after a worker was hospitalized with second degree burns. A federal court in Manhattan ruled that Bob's discount furniture can compel arbitration of claims over alleged misleading warranties. 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. Vanessa Bryant, the widow of basketball star Kobe Bryant, is suing Los Angeles County, saying her privacy was invaded when sheriff's deputies and firefighters shared photos of the crash side with their friends and colleagues. The trial is expected to last about two weeks. In witness says will likely include Vanessa Bryant and l A

counter sheriff, Alex Villanueva. For more in the case, Bloomberge dun Grosso speaks to Warrington Parker, a partner at Crowell and Mooring. A primary issue in the case is whether she suffered emotional distress as a result of the county's actions. So Los Angeles County officials are arguing that she suffered emotional distress from the death of her husband and daughter, rather than distress that the photos were leaked. How can a jury separate those well, emotional distress damages are always

a very difficult thing, both to prove and to disprove. Right, it's just how much are you hurt? And there's no clear marker for that. However, I think the county has a difficult time with that argument made, certainly without any dispute.

Someone suffers emotional distress when I loved one died. But I think it is within the realm of experience and probability that you can exact surveys that emotional distress by just treating the family of loved ones or taking photos really according to a pointness at least almost like there was a trophy hunting type of experience, And I don't think any rational person can separate out one trauma from another. Now,

does that impact your damages? Perhaps, yes, It doesn't make it impossible to conceive that she suffered additional emotional distress because of these photos. I don't think that's the true. Which side do you think has the better case here? Right now? I like pointest chances, And let me tell you what I'm thinking. You have a case where word photos were taken, and there is a history of these

photos being taken in the Google book. You have a case in which people have at least as points painted have lied outright lie about what they did with the photos and why. You have the defendant saying that these photos were taken and then distribute for the purposes of training. But you have them distributed at a bar, you have them distributed to a person playing a video game, you have them distributed at an awards ceremony. That doesn't make sense.

And I know that the defendants are saying that they immediately told people to remove it from their phone in order to mitigate any continuing harm, But there was no attempt to ensure that these photos were in fact destroyed, and it looks more like they were trying to cover up more than anything else. To add the extra spite is you have at least one of the deputy saying, should we really do this? We've gotten in trouble before for this and as Warrington Parker, a partner at Crowell

and Moorings being at Bloomberg Student Grosso. Catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading the show at Bloomberg dot com slash Podcasts. Attorneys can find exceptional legal research and business development tool is at Bloomberg Law dot com and on the Bloomberg terminal at b Law Go. This is the Big Take, the best to Bloomberg's in

depth original reporting from around the globe. This is a really fascinating story that's caused a lot of outrage among investors. This is so fascinating 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 and he in today's Big Take, the FEDS past crises hold secrets to tackling future recessions. Were joined now by David Wilcox, Director of

US Economic Research at Bloomberg Economics. He was formerly director of the FEDS Division of Research and Stats and served as a senior advisor to three FED. Cheers, David, thanks for being with us this morning at the Echoes Building in Washington, hanging on the wall or pictures of past chairs. I imagine j Pale passes the portrait of Arthur Burns and thanks to himself. Oh God, I don't want to be that guy. Is it going to be that guy? Absolutely? I'm sure that's his sentiment. He wants to be the

portrait of the next person too. Over Paul Voker, who came in after Burns in an extraordinary circumstance. Volker had attended a speech that Burns gave where he where Burns explained why no central bank could control inflation. Voker flew home from Belgrade, Yugoslavia, determined to demonstrate otherwise, and on October six nine, he and his colleagues unveiled a monetary policy revolution that did crush inflation. Tam Paul of t Neck, New Jersey. That was a painful period, but painful period

we had to live through. Are we going to go through the same period? It was a painful period, but let's keep in mind it gave birth to an era that matro economists called the Great Moderation. It was period the Great Moderation was a period of low volatility, solid growth, low and predictable inflation. I don't think we're doomed for

a repeat of the Voca recession. The main reason is because of the legacy that Voca and his successors left, which is a legacy of low inflation that breeds expectations of low inflation and inflation is a self fulfilling prophecy. Household and businesses expect the Fit to deliver on its promise of low inflation. There is a disconnect right now between what the markets believe and what some members of the Fellow Reserve are saying. Why is that? And is

how problematic is that? Well? I think you understandably. The members of the Open Market Committee are projecting a cost stance. They are determined to win the battle against inflation, and their main message right now is a sort of Mario Draggy style. Whatever it takes, they are bound and determined to conquer inflation, even if that comes at the cost of a recession. Again, if a recession comes, I don't think it will be anywhere near the depth or the

painfulness of the Vocal recession. What are the tradeoffs that j Pal faces? Does he have the torpedo employment? For instance, well, that certainly is not his goal. The trade off he faces is that he probably needs to engender a period of slow growth of more sluggish employment. The economy is overheated right now. It needs to cool off. But that

is the pathway to a sustainable future. Really, the worst outcome is not to have that period of low growth or arising unemployment, because that would signal that we're in for a more prolonged era of higher, higher than desirable inflation and more volatility. I wish we had more time. David Wilcox, Director of US Economic Research at Bloomberg Economics.

It was also formerly the director of the Federal Reserves Board Division of Research and Statistics, also serving as senior adviser to three FED chairs of That is today's big take ahead of the market opened on Wall Street. DAL futures right now fourteen points lower, smp E many futures down seven at the NAS day futures twenty five points lower.

As we look to treasuries right now, the inversion continues, of course, between two's and ten's negative forty one basis points between the two the two year yield at three twenty the ten year at two seventy nine. You are listening to Bloomberg day Break