Bloomberg Daybreak: August 17, 2022 - Hour 1 (Radio)

with Iran. New York City schools abandoned, COVID health screenings and PCR tests, plus Rudy Giuliana A will testified today before Grand Jury in Georgia. I'm Michael Barne. More ahead, I'm John Stage and sports. The Yankees slump continued, the Bats again quiet, the home loss to Tampa Bay, and

the Mets got shut out in Atlanta. That's all. Train ahead on Bloomberg day Break on Bloomberg Eliving Free on New York Bloomberg nineteen nine one, Washington, d C, Bloomberg one, those sixx one, Boston Bloomberg nine sixties, and Francisco Syrius x M one nineteen and around the world down Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning.

I'm John Tucker and I'm Karen Moscow and US DOT index futures are lower this morning, were 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, SMP futures are down about seventeen points, and DOWN futures down eighty nine and NASDACK futures down seventy five.

The decks in Germany is down four tenths of upper cent, the ten year treasury down seventeen thirty seconds, YE two point eight six percent, and it yield on the two year three point to nine percent. John and Karen, We're gonna have more on the markets at a moment, but

first we're gonna begin with politics. Republican Representative Liz Cheney has lost her primary in Wyoming, while former Alaska Governor Sarah Palin is staging a political comeback, and Bloomberg Sammy Morris has the tales from our news room in Washington. Cheney lost to lawyer Harriet Hagerman, who had been backed by Donald Trump. Cheney voted to in peach Trump and its co Chair of the House elect Committee investigating the January sixth insurrection. She warned her supporters about the future

of the Republican Party and the country. If we do not condemn the conspiracies and the lies, if we do not hold those responsible to accounts, we will be excusing this conduct and it will become a feature of all elections. America will never be the same. In Alaska, party primaries were replaced with open primaries. The top four vote getters in each race advances to the general election in November. Sarah Palin was among the candidates to advance in the

House race. Senator Lisa Murkowski and challenger Kelly Shibaka earned two of the slots in the Senate race. Results are still being tabulated to determine the final two slots in Washington. I'm anymore as Bloomberg daybreak. All right, Amy, thank you who was sticking with politics. President Biden has signed the Inflation Reduction Act into law. He's handling the landmark bill addressing tax, climate, and health policy. I'm keeping my campaign

commitment no one. Let me emphasize, no one earning lesson four hundred thousand dollars a year will pay a penny more in federal facts. President Biden signed the law with no GOP support from both chambers of Congress. Republican Congressman Adrian Smith and Nebraska discussed the bill's impact on the

deficit Laate yesterday on Bloomberg Radio. It's important that the President understand we cannot just continue without making any changes whatsoever, continue in the direction of this spending that I think has been very problematic. The American people expect us to

get that under control. And Nebraska Republican Congressman Adrian Smith made the comments on Bloomberg Sound on Catch the program weekdays at five pm Eastern on Bloomberg Radio and Karen to Markets Now, where the S and P five hunder posted a small game. Yesterday, earnings from Walmart and Home Depot boosted sentiment. Today, we're gonna be watching minutes from the Federal Reserve, which will test events on a pivot towards slower rate hikes. Let's get more from Bloomberg's Mike McKee.

After two moves of three quarters percent, the size of the heads next grade increases an open question. Investors may find some clues in the minutes of their last meeting. Those minutes likely won't settle the question, but they could indicate what kind of data officials would need to see to favor another unusually large increase. With Chairman j Powell expected to speak at the Kansas City FEDS Jackson Whole Conference a week from Friday, any post minutes market move

maybe short lived. Michael mckeed Bloomberg Daybreak. All right, Mike, thank you. All those minutes come around two pm Wall straight time. But this morning it's all about the consumer. We get data on US retail sales for July at eight thirty. MasterCard Advisor's chief economist Michelle Meyer expects another game. The surveys have shown that consumers are worried. They're trying to plan ahead. They're trying to think about how to navigate this economic environment. But in the interim, they are

still outspending. Michelle Meyer and MasterCard Advisors remains bullish on US spending. Economist predicted gain of just one tenth of a percent for July retail sales. Stay tuned for complete coverage and analysis of the data coming up on Bloomberg Surveillance. And when it comes to earnings, it's also about retail. To Karen Bloomberg's Jeff Belinger, reports that Target will deliver its earnings report this morning. Target made a strategic decision

to rapidly liquidate much of its success inventory. The second quarter results will indicate whether that was a good move and whether further mark downs are needed. Bloomberg Intelligence as Target may have continued to outpace its peers when it comes to store traffic, the chain has sought to be surgical and raising prices to protect the perception of value and maintain customer loyalty. B I says that may also

have weighed on gross margin. Jeff Bullinger, Bloomberg Daybreak, Thanks Jeff, and a day after Home Depot beat estimates were expected to get earnings from home improvement retailer lows today. Attorney to commodities now John Oil continues to drop as traders away the prospects of a few key geopolitical factors right now. West Texas screwed is up four tens per cent, or thirty six cents at eighties six owner's eighty nine cents a barrel blombards. You need a young joint us live

with that story. Need a good morning, Good morning, Karen W. T I. Futures dropped more than three percent yesterday closing below eighty seven dollars of barrel. They're also lowered this morning as talks between Iran and the European Unions signal progress toward a renewed nuclear deal that could open the

door to crude shipments from the Islamic Republic. Owanda Market Analysis says the potential for a deal creates a two way risk for the price of oil, but the primary driver of the current weakness is the threat of a global recession at coronavirus lockdowns in China, live in New York, I'm gonna need a Young Bloomberg daybreak. And in the UK today data shows the inflation accelerating again again. Consumer prices rose by double digits in July and annual pays

of ten point one percent. Bloombridge Leslie Burden in London says rising food prices are adding to the squeeze on UK consumers. Food was actually the biggest contributor, which means that the poorest households are going to be hit the hardest, but it is also broad faced recreation and culture with the next biggest contributors. And not worrying for the Bank of England because it indicates that this is going to

last longer. Bloomberg Selizzie Burdens traders are now ramping up as that the Bank of England will raise rates by fifty basis points come September. You're listening to Bloomberg Daybreak and East No Flanco settled on Wall Streets. Had to bring in Michael Barr with more. What else is going on to New York, Canada, around the world, John, thank

you very much. Sarah Rudy Giuliani a schedule to appear today and an Atlanta courthouse to testify before a special grand jury and an investigation into possible illegal attempts to influence the election in Georgia. The former New York mayor and attorney for former President Donald Trump is the target of the investigation. Any questioning will take place behind closed doors.

Nonprofits and New York City social services saying they've been stretched then trying to accommodate asylum seekers and migrants who often are buzzed in unannounced and in unknown numbers from Texas and Arizona. Catholic Charities executives say they're working with families to provide essentials and more. To Mike the Cardinal Dolan at dawns and me. These just aren't cases. These just aren't uh, these just aren't problems. These just aren't statistics.

These are not just refugees and asylum seekers in the plural. These are people with names Cardinal dolon As. New York City officials estimated around dred migrants have been transported recently into the city from border towns. The New York City Department of Education is relaxing COVID nineteen protocols for students and staff ahead of the start of the new school year. According to the guidelines, the district will no longer require daily health screenings to enter school buildings, nor will it

conduct in school PCR surveillance testing. Iranian officials have confirmed that they have submitted a written responds to the latest EU draft to revive the nuclear deal. Bloomberg's At Baxter reports the US is watching closely. Bloomberg sources are saying that it may ask for a couple of adjustments in the pact, to which the US State Department spokesman that Price says, there is a red line. We are committed.

President Biden has made a solemn commitment that Iran will never obtain a nuclear weapon that in its own right is something that UM redounds to our national security, but price as the US will go through the response with hopes of a deal. In San Francisco, I'm at Baxter Bloomberg Gabrie opening statements as schedule to begin today. In the latest federal trial for singer R Kelly in Chicago.

He is accused of enticing miners for sex, producing child bornography, and fixing his two thousand eight state child porn trial, at which he was acquitted. 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 a hundred twenty countries. Hi, Michael barn This is Burt John Michael, thank you. It's up five ten Ball Street. That's time for the Bloomberg Sports upthing. Good morning, John Stash,

all right, Good morning, John Tugh. Start to the week for New York baseball. The night after the Yankees and Mets lost games by a combined seven teen to one, they lost by a combined eight to one for the Yankees. That tailspin continues eleven losses in the last thirteen games. Going further back, just eleven wins in thirty three games, they're sure to losing a fifth consecutive series. Aaron Brune's

team lost to Tampa Bay three to one. You can't let the frustration get in your way of of you know, preparing and you know, getting ready to go every night. You know, we've got a few guys that are in a rut. We gotta we gotta prepare and get ready and fight our way out of it. You know, it's part of it. And uh, you know it's no fun when you're going through it. But that's where we are right now. Scored one run of the last three games and the Mets and two games in atlanta've only scored

one shut out by the Braves have nothing. Atlanta's eighth win in a row since losing four or five of the Mets at City Field, and that Met Division lead over the Braises down to three and a half. The good news for the Mats Max scherz Er pitches tonight, Jacob de Graham tomorrow. Good news for the Jet Zach Wilson's knee surgery went well, no additional damage was found. Still likely Wilson will miss the season opener, which would meet veteran Joe Flacco, would face his old team, the

Baltimore Ravens and the Giants preseason opener. They're they're veteran backup d be Tyrod Taylor looked good, and coach Brian dave All said Taylor will now get some reps with the first team, but he downplayed any significance to that, said Daniel Jones is the starter. The Athletic reports trade talks are again heating up between the Nicks and Utah Jazz for a deal that would bring all star Donovan

Mitchells in New York. John stash Hower Bloomberg Sports, John all Right, John tankas very much ahead of the cash show. Gold on Wall Street futures right now are in the red as traders wave minutes for the Federal reserves last meeting. Down futures right now eighty points slower. That's down two tenths of a percent. Smp E mini futures they're down sixteen in the next futures right now are sixty four points lower. This is Bloomberg Bloomberg Weather for Today from

meteorologist Rob Carolin. Partial sunshine could see an isolated shower this morning at eight tomorrow. Sunny five Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quicktake, this is a Bloomberg business lash and I'm Karen Moscow. US stock Index futures are following as concerns over the federal reserves, aggressive rate high path outweigh robust corporate earnings and China's stimulus plants.

We checked the markets every fifteen minutes throughout the trading day on Bloomberg. SNP futures down seventeen points, now futures down eighty nine and nasdack features down seventy one. The decks same. Germany is down four tenths of upper seven, the ten year treasury down fifteen thirty seconds, two point eight six percent, that yield on the two year three point to nine percent. NIMEX screwed oil is it'll change

at eighty six dollars fifty three cents of barrel. Comex schoold is it'll changed as well as seventeen eighty announced. The euro one pot one seven five against the dollar, British found one point two one oh seven, the yen one thirty four point six nine, and bitcoin this morning is down six cents of a percent at twenty three thousand,

eight hundred dollars. Today, we are watching for a FOURD on July retail sales at a day thirty Wall Street time at two minutes from the fence, latest meeting and Target and Lows are among companies scheduled to report earnings today. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, good morning,

Good morning, Karen. Wyoming Representative Liz Cheney, Donald Trump's versas Republican adversary in Congress has been defeated in the GOP primary Chiefel Tuesday to Harriet Hageman arrival back by the former president sixty six percent to twenty three percent. President Joe Biden signed a sweeping tax, climate, and healthcare measure into law. The measure, known as the Inflation Reduction Act, would also cap and lower the price of medicines for seniors.

In baseball, the Yankees and Mets lost the Red Sox and Orioles one. The Nationals lost the A's and Giants one. Global News twenty four hours a day on here and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts are more than a D twenty countries. Michael Barr And this is Bloomberg. Michael, thank you. It is five twenty on Wall Street. Were line from the

Bloomberg Interton Broker's studios. This is Bloomberg Daybreak. Well, as you heard, Republican Representative Liz Cheney called on Americans to unite across party lines to keep Donald Trump from winning the White House again. Following her crushing defeat, Let's take a closer look at the results of Tuesday's primary. Now we're joined by Julie Norman University College London, professor Julie. Always a pleasure, Thanks for being with us this morning.

Is Cheney's loss all because she you refused to bow down to Donald Trump? And what is this signal to other Republicans in the party? Oh? Well, absolutely, John, I mean, Cheney obviously has a long history in the state from both her own accomplishments and her father. She won her last primary by over seventy percent, and so this is not just a loss, but a crushing one by probably

over thirty five points when everything is tallied. And this is not just because of her impeachment vote against Trump, but her really being the face of opposition to Trump within the Republican Party co chair in the January sixth hearing, being very outspoken throughout her campaign that she saw her role as really pushing back at Trump and preventing him from from holding office again and challenging what she sees

as the US democracy. And so she really took a strong stance against him, and really from the start, Trump and his team targeted her very early. It was a very aggressive campaign against her and uh and unfortunately it worked in Wyoming, Um for for for for Cheney, and by this big loss, well what next for Liz Cheney. Well, it'll be interesting. So her speech was a very impassioned speech and suggested that this certainly wasn't the end um.

Some are asking if she'll be considering presidential run, even though many believe would be very difficult for her to succeed in the GOP primary. That is something that potentially might be on the table, but right now her focus seems to be on doing everything she can again to push back against this popularity of Trump within the party and his potential run in four So we'll see what kind of actions that that results in for her. Trump called her a loss a complete rebuke of the January

six Committee. I wonder from your perspective, is it a complete rebuke? And also uh to what it is the January six Committee somewhat diminished without the Liz Cheney or at least with the lame duck until next year. Sure, So I would say the Committee obviously has known that Cheney was likely to lose this primery, that was almost a given, and they were essentially planning to wrap up their work as much as they can going into this midterm season. So that's one reason we had the hearings

this summer. They will probably see the final report some time in September, so that timeline I think was pretty understood in terms of a review to the committee. You know, Wyoming itself went by went for Trump by over forty points in twenties, so it's a very heavy pro Trump state. I think the January six Committee where it makes in roads with Republicans will be in other areas, say, you know, suburbs in Virginia, these kinds of places where report where

voters are a bit more receptive to its messaging. But it's state like Wyoming that's probably not where it was going to get the biggest traction to begin with, it's switched to Alaska. Lusia Murkowski had a narrow lead over the Trumpec challenger. She of course, was one of the seven GOP senators who voted to convict him, and the impeachment trial followed the riot at the US Capital. Your

thoughts about the race in Alanska. Yes, so the Alaska race, it's interesting as much about process as well as the results. So it was an important race for Murkowski yesterday as the only senator who voted against against Trump and impeachment hearings, who is up for re election this year, so the fact that she does seem to be holding her lead

is notable. But Alaska has a really interesting system this year where they are doing an all party open primary where the top four candidates from all parties advance, and then there's going to be a ranked choice system in the general election. So we haven't really seen something like this before in Alaska. It will most likely benefit a more centrist moderate candidate like Murkowski in the generals, so we'll see if that holds. But the primary at least

was solid for her. She came out solid and likely win or two points ahead of her closest challenger, and Sarah Palin is back. What what are your thoughts about her? Yeah, so, um, Palin is actually kind of been in two elections right now in uh In Alaska won a special election for an open seat that will be in play through November, and then the actual primary for the November seat. And again this is a situation with this new Alaska system.

So Palin came in solid in both Um she pulled it about their got about the percentage and in both of those elections. But again with this ranked choice system, which we won't know the results until the end of August for that special election, UM, it could tip out of her favor there. So she's definitely still in the game. But this new system may may show that that there's some other ways for more centers moderate candidates to have an edge. Julie, thanks all, I appreciate it this morning.

Julie Norman, the University of College London protfessor and the hand of the Cansha love wall Street. The futures right now in the down futures, down, the seven s and evening futures seventeen points glower and the anset futures right

now down sixty nine points. You're listening to Bloomberg day Break and Bloomberg Weather for it today Marshal Sun developing chants of the shower this morning high seventy to eighty that I clear at low sixty five seventy and part of it mostly Sunday tomorrow, the high temperature topping up

at about eighty five degrees. Broadcasting live from the Bloomberg Interacted Broker's studio in New York, Bloomberg Living Free to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg NOME sixty to the Country Sirius XM Cho one nine and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg day Break. It's five thirty on Wall Street. Good morning.

I'm John Tucker and I'm Karen Moscall. We are just about four hours away from the open of US trading. Let's get you up to date on the news. You need to know what this where we begin with politics, Republican Representative List Chaney losing her primary in Wyoming to Trump Act Harriet Hageman. Cheney voted to impeach former President Trump and co chairs the House Select Committee investigating the January six insurrection. She says Trump's fanning the flames of violence.

Our nation is barreling once again towards crisis, lawlessness, and violence. Laz Janney Warren supporters had stolen election rhetoric could become

normalized if former President Trump is not held accountable. And in Alaska, former Governor Sarah Palin advanced to the general election of November for the state's open the House seat, and Alaska Senator at Lisa Murkowski and Trump Act challenger Kelley Shabaka earned two of these slots in the Senate race, with results still being tabulated to determine the final two slots. Whole stigiment politics John President Biden has signed the Inflation

Reduction Act into law. The landmark bill addresses tax, climate, and health policy. The measure garnered no GOP support from both chambers of Congress and to markets now Karen, where the SMP posted a small game yesterday. Now today, markets will be watching minutes from the FAD due out at two p m. Wall Street time, and US retail sales data for July at eight thirty this morning, economists predicted gain of just one tenth of a percent for retail sales.

Attorney to Commodities John oil slide continues as traders away the prospects of a few key geo political factors. Right now, West Texas crewed is some little change at eighty six dollars sixty cents of barrel, and Bloomberg's her need a young joins us Live with the story we need a good morning. Good morning, Karen w t I futures drop more than three percent yesterday, closing below eighty seven dollars

of barrel. They're also lowered this morning as talks between Iran and the European Union signal progress toward a renewed nuclear deal that could open the door to CREWE shipments from the Islamic Republic. A Wanda market analysis says the potential for a deal creates a two way risk for the price of oil, but the primary driver of the current weakness is the threat of a recession and a

coronavirus lockdown in China. Live in New York, I'm really need a young Bloomberg day break, real need a thanks. Overseas in the UK, inflation head of forty year high. Today, the July consumer price index rose ten point one percent, and Bloomberg's Lizzie Burden says the data is likely to impact Bank of England policy. Bomberg Economics has changed its base case and now these fifty basis points in September,

following upon that jumbo hike in August. That's Bloomberg's Lizzie Burden reporting from London saying rising food prices adding to the squeeze a UK consumers. And that brings us to three on Wall Street time to bring in Michael Barr with more of what else is going out of New York hand around the world. Jeah, thank you very much. Rudy Giuliani, former President Trump's personal attorney, is scheduled to testify today in the possible criminal activity surrounding those who

trying to overturn the Georgia election results. The former New York mayor is now the target of an investigation by Georgia prosecutors. Giuliani has pushed back on the investigation and has claim without evidence that Atlanta is a city known for corruption. With New York City officials estimating around twenty hundred asylum seekers and migrants have been busted into the

city from border towns along Texas and Arizona. Nonprofits and city social services they've been stretched then trying to accommodate the newcomers. Catholic charities say they're working with families provide services like scholarships for local schools for families, gift cards for food and other essentials, and more. Cardinal Timothy Dolan. Our perspective is not the political. Our perspective is not how did we get in this mess. Our perspective uh is simply to help them to reach out to them,

Cardinal Timothy Dolan. The reigning and officials confirmed this week that they have submitted their written response to the latest EU draft revived the Nuclear Accord. State Department spokesman Ned Ice says the US will provide its response to both Iran and the e USE text in private, but says they've been transparent about their ultimate goal to ensured Tehran limits their nuclear program. We are committed President Biden has made a solemn commitment that Iran will never obtain a

nuclear weapon. That in its own right is something that UM redounds to our national security. State Department spokesman Ned Price. The New York City Health Department says the West Nile virus has been detected and two people and a record number of mosquitoes in the city. The department says the two cases are in Brooklyn and Queen's 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 a hundred twenty countries. Michael bar and this is Bloomberg. Michael, thank you. It's five thirty six on Wall Street. That's not for the Bloomberg Sports Update. Now here's John Snashar Yanks. John. The Mets went down to Atlanta fly and High. Winners of seventeen of their last twenty games, they have come back to Earth as the Braves of one twice by a combined score of eighteen

to one. Mets had only three hits off Charlie Morton, who struck out twelve, and Atlanta's five nothing to win. That cuts the Mets Division lead down to three and a half and another starting pitcher is injured. The Mets just put Carlos Carrasco on the injured list and Taiwan Walker had to leave last night after just two innings with back spasms. Mets to have Max Scherz around the mounta tonight, Jacob to Graham tomorrow and those two aces

are scheduled. The next week faced the Yankees, who lost again. Tampa Bay's Randy and Rose Arena killed the Yanks two years ago in the playoffs. He had a three run homer first, didn't know off Nestra Cortez. It's all the Rays got or needed. And at three one winners, Yanks bats again very quiet, only four hits, even Aaron Judges in hitting one for his last four team. And you never want to lose, and I never know one in here is happy about it. Um. You know, having a

little bit of a cushion helps. With that cushion, we got a sound top of it. You guys are putting, the working guys are coming up, they're showing up, they're doing their things. So and that's just about going out there on the field and performing. Tanks have lost six of the last seven. Over those seven games, they scored a total of only nine runs. That Jets says. Zach Wilson's knee surgery went well. It's possible that Jets QB

could play the season opener. Tennis and Cincinnati. Serena Williams lost six four or six love to Ma Radicana, who's half Serena's age. She's the defending US Open champs. Serena now gets ready to come to New York to the Open, which she says will be the final tournament of her career. John Stash were Bloomberg Sports John John Thanks a lot five thirty settled on Wall Street time down for the Trying State Business Report, and for that we're joined by

Bloomberg's ed Quarry. New York City's pension costs will rise by about six billion dollars over the next three fiscal years. Inflation and fears of a recession of hammered the city's retirement plans. Five of the city's pension funds lost eight point six percent for the fiscal year, the most since

the financial crisis. Rockefeller Capital Management, the wealth and investment advisory hearn that emerged from the Rockefeller's family office, plans to add as many as one hundred fifteen wealth advisor teams in coming years as it expands through the US. The New York based firm currently has eighty five teams. More than a dozen were acquired this year. The pandemic has made parking in New York even tougher, with some

New Yorkers shunning the subway. During the COVID outbreak, one measure of car ownership in the city went up two hundred and twenty four percent in one The work from home trend means many cars still aren't being moved at all, and dining sheds continue to eat up street space that your Bloomberg Tries Date business report. I'm Ed Corey. It thanks a lot of five eight on Wall Street. Bloomberg Radio is on the year from San Francisco to New York,

London to Hong Kong. Let's check in now with their global news team for some of the top stories heard on our three hundred at Phillip Radio stations around the world. Ktr H in Houston. Amazon raising charges on third party fellers during the holidays time. Gina Servettian for w c CEO in Minneapolis. I'm reporting that a court order says three m can't use bankruptcy to dodge the decisions of a federal judge preparing more than two hundred thousand ear

Plug related lawsuits for trial. I'm Jeff Bullinger and on w G Y and Albany. I'm reporting that workers at an Amazon warehouse near Albany are seeking to join a union. I'm Stephen Carol on Bloomberg DAB Digital Radio in London. We've been reporting on inflation hitting a new forty year high in the UK as price rises hit double digits. Id Coy on w w J in Detroit. I'm reporting a new owner plans to redevelop the long vacant gross

Field building. And those are some of these 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. Cal Foregna teenagers can look forward to a welcome back to school gift when they return to class more time to sleep. A new state law will require that all public high

schools start classes at eight thirty am or later. The shift has the potential to improve students mental health and academic performance. As a rule, adolescence don't get enough sleep, and not just because they're avoiding it. Among many other physiological changes brought on by puberty, the body's circadian rhythms shift. That's why the American Academy of Pediatrics advocates pushing back

school start times for adolescence. Places that have done so have seen gains in both students sleep and their academic achievement. California's bold move could serve as a learning opportunity for other states. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or Opie I n go on the Bloomberg terminal. This has been Bloomberg Opinion and Bloomberg Opinion editorials can

be heard every weekday. At this time. Terminal customers can read more head Opie I n go. You're listening to Bloomberg day Break and just ahead, we'll get you set up for the market day a half with Joe Quillan of the Meryal Bank of America Private BAC SMP Futures right now down eighteen points. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland, at Bloomberg Victape. He's

a Bloomberg Business Flash and I'm Karen Moscow. Any West stock index future is falling this morning as concerns over the federal reserves, aggressive rate hike path out way robust corporate earnings in China's stimulus plans. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, S and P futures are down nineteen points down, futures down a hundred four and NASDAC features down seventy five.

The decks in Germany's down half percent. Ten year treasury down sixteen thirty seconds, held two point eight six percent, yield on the two year three points to eight percent. Nine X Screwed oil is up to ten percent or sixteen cents at eighty six dollars, sixty nine cents of barrel comic school down a tenth of a percent or two dollars ten cents at seventeen eighty seven sixty ounce. The Euro one point one seven five against the dollar, British pound one point to one, and the yen one

thirty four point eight four. Look at a bitcoin, it is down six tens percent at twenty three thousand, eight hundred thirty eight dollars. That's a Bloomberg Business Flash. Now here's Michael bar with more on what's going on around the world. Michael Karen, thank you very much. One of former President Trump's most vocal Republican opponents has gone down

to defeat. Liz Cheney lost the Republican primary to retain her seat in the House to Harry It Hagerman arrival back by Trump six to Alaska U S Senator Lisa Murkowski and her Trump endorsed Republican rival, Kelly Shivaka, have advanced from Tuesday's primary. Meanwhile, Republican Sarah Palin was among the candidates advancing to the November general election in the race for Alaska's only House seat. In baseball, the Yankees and Mets lost, the Red Sox and Orioles won, the

Nationals lost, the A's and Giants won. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg Jump. Michael, thank you. Nine on Wall Street. We are live from the Bloomberg Interact of Broker's Studios. Investors awaiting the minutes of the Fed's latest last policy meeting

for clues on policymakers path forward. Let's get you set up for the trading day now with Joe Quinlan, head of the c I O Market Strap to Jay for Merrill and Bank of America Private Bank OJO. The questions almost obligatory at this point. Have we passed the peak in inflation? Does the weaker data signal the Fed's job as close to being finished? Well, we've come a long way to the FED tightening cycle job, but we're not

done yet. We're still looking for the Fed to go fifty basis points again in September, fifty thereafter and coming in by the twenty five by the end of the year, an you get quantitative tightening, So the Feds, you know, it's not a mission accomplished yet. Lbit, the inflation data looks like it's peaked, but it's gonna plateau at a high level. So there's a lot of work to be done yet on the inflation front. What do you expected

glean from the FED minutes today? Yeah? I think the key will be you know who's hawk ish, who isn't the voting members. I think it's going to be pretty much uniform in the sense that they're not done. I think the FED is going to signal to the markets they're gonna be tough still yet LB at the inflation numbers are improving, so I think it's be a little bit more on a hawkish tone and be uniform in that sense company profits. They've encouraged an equity rebound from

the June lows doesn't have legs at this point. You know, we think it does, but it's sector specific. And when you take out energy from the Q two earnings, there was a lot of pain, a lot of red so but what you saw Walmart, some of these other companies working through the inventories. It's going to be a sector by sector, company by company into the second half of this year. How do you manage the tite labor market,

the rising input costs of bottles supply chains. We're still looking for your growth in earnings, but I do believe twenty three earnings estimates are still too high. LBA did come down, but they're a little bit too high yet. And as far as retail sales today that the figures we get this morning, what is the state of the U S consumer it's the state of US consumer gun, it's okay, not great. I would say it's weakening a little bit here. Disposable income, real wages are declining, but

they're using their credit card. They are in that pant post pandemic moods, so they're out there spending back to schools, commenting Christmas ahead of us. So I think consumer, you know, if they don't have the income, they will go deep into their savings or use the credit cards. So I think the consumer outlook is pretty pretty solid, albeit it's not as robust as as was a year ago with

all this all this pandemic spending that we saw. All right, So given all that, what's the investment thesis that you're following. We're buying the dips here, John, we the opportunistically when we get a pull back, whether it's technology, energy, we're stepping in and buying because if there, if there is a recession or not. Remember when the US comes out of recession, it's typically stronger, and that's going to happen again.

So we're buying. We're focused on the US by the dips, by quality, be diversified, own the intangibles of technology and the hard, hard assets of energy, minerals and metals. So the rally that we've seen not just a bear market rally in your opinion, No, I think we're putting in

a bottom. It's gonna be chopping though. Remember for whatever for lots of in September is a very choppy month heading into the fourth quarters, so expect that the hotility we've had a nice glide upwards, but don't be fooled by that. Stay diversified the quality and I do think we're putting in this bottom bar markt bottom, but it's it's gonna take some time yet. We're not out of the woods. You've got China weakening, Europe's heading for recession,

and the Fed is not done raising rate. So buckle up. We get from a week from Friday, the event that's held out west at Jackson Hall. Do you FED symposium out there? What are you supposed we're gonna hear out of that? Yeah, it's gonna be interesting in terms of how does the FED spread the needle of quantitative tightening? Um? What is there? What's the terminal rate? How do I think the biggest us like, what are they? What's the path of future inflation? How you know if we're at

peak inflation. That's fine, but how fast does it come down? Is the Fed gonna stick with that two percent target? That's going to be a key messaging point, the two percent target. Joe A pleasure as always, Joe Quillan, head of the Seat market Strategy for Marylynch at Bank of America Private Bank with us this morning. Karen, all right, John, thank you. It is five fifty three on Wall Street. It's time now for the Bloomberg Law Rapport. Let's get

to the legal stories we are watching this morning. From Bloomberg's Jeff Bellinger. The emergency board formed to prevent a strike against the nation's largest railroads is recommending wage hikes and expanded health coverage for workers. Immigration activists filed a complaint in an Illinois court accusing Lexus Nexus of collecting personal information from consumers and selling it to corporations, law enforcement,

and government agencies. A Jersey City, New Jersey ordinance restricting short term housing rentals through services like air B and B survived the legal test before the third Circuit. 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. The former head of the JP Morgan Chase and Company precious metals business and its top gold trader were convicted in Chicago and charges of fraud, spoofing, and market manipulation. It's a big victory for the government and it's long crackdown on spoofing in the precious metals market, even though a third defendant, as salesman, was acquitted for more Bloomberg's doom Grossos speak to James Park,

a professor at u c l A Law School. This is the highlight of the federal government's crackdown on spoofing in precious metals. How did they do all? In all, I think they did very well. They initially got h settlement from JP Morgan the institution, and they have also gotten a number of convictions, both through pre bargaining and also through jury trials. I think they're around ten individuals who have pleaded guilty or been convicted. And you know this is not just the case where they found the

misconduct and they penalized J. P. Morrigan the corporation. There are a lot of commentators, scholars, who have criticized federal prosecutors for not bringing the individual cases, not bringing cases against individuals for corporate wrongdoing, And this is a nice example where the government did bring cases against individuals and worked very hard to do so, and they've been successful

in holding individuals accountable for corporate wrongdoing. It's not just the case that JP Morgan is paying a nine million dollars fine and agreeing to various reforms. You are actually punishing the individuals who have committed wrongdoing, and that is more powerful deterrent than if you are just punishing a corporation that pays a large fine. So I think the government did very well in these cases. This case sort of ends the prosecutions into spoofing in precious metals. What

might be next? You know, it's interesting this see whether these types of cases will also be brought in the crypto asset space. I think that's a space where there, you know, is a lot of potential for spoofing and

manipulating markets. And several years ago the Department of Justice did announce that it was going to be looking into manipulative practices in crypto asset markets, and so it'll be interesting to see whether the success in commodities markets or more traditional commodity markets will then essentially be translated into cases in bitcoin and other crypto asset markets, which are

potentially very vulnerable to manipulation. So it'll be interesting to see what comes next out of these efforts and as James Parker, professor at u c l A Law School, speaking at the Bloombergy Student Grosso catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading the 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. Futurists this morning moving lower M S and P Future is down about twenty four points down, Futures down a hundred twenty seven at Nasty Eggs. Future is down in nineties seven ten year treasury down eighteen thirty seconds, YELD two point eight six percent, and the yield on A two years at three point to eight percent. NIMEX screude oil is up six tenths per center forty eight cents at eighty seven dollars one cent of barrel and the euro one

one eight one against the dollar still ahead. On Bloomberg day Break, a check on the business headlines and all the news you need to start your day. And this is Bloomberg.