Bloomberg Daybreak: August 19, 2022 - Hour 1 (Radio)

a Ukrainian nuclear power plants suicide. I'm Michael Blogger. More ahead, I'm John stad Shower and sports. The Yankees suffer at a one sided loss to the Blue Jays. The Braves beat Jacob de gramin the Mets. That's all s training ahead on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg on Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius x M 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 and US DOT Index futures are lower this morning. We're coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg right now, SNP futures are down thirty two points, in DOWN futures down a hundred ninety four and NASDACK futures

down one twenty seven. The decks same. Germany is down eight tenth seven percent, ten year treasury down eleven thirty seconds, YE two point nine and two percent, and they yield on the two year three point to four per cent, and Nimex Screwed oil is down one three percent, down a dollar twenty two at eighty nine dollars twenty eight cents of barrel. John and Karen markets this morning. Reacting

to mix signals from Fed officials. St. Louis FED Governor Jim Bullard is leaning hawk ish, urging a seventy bases point move in September, while the Kansas City's Esther George is sounding more cautious. San Francisco's Mary Daily is open to fifty or have any five basis points and many Appolis chief Neil Cush Kari says the Central Bank remains laser focused on combating inflation. Good question right now is can we bring inflation down without triggering a recession? And

my answer that question is I don't know. Neil cash carry making the comments a day after the release of July's Fed Minutes, where showed officials wing exactly when to slow the pace of rate hikes, lowering inflation and avoiding a recession as the best case scenario for the Federal Reserve. John with prices already read hot, Former FED Governor Randy Krosner said the Central Bank will be lucky to meet

their inflation target. It's very difficult to know exactly where you are because, as I said, the data always coming with a lag, and there could be a lot of shocks that come in. So I'm sure they're not going to get it exactly right. I think if they're going to make a mistake, it's going to be on tightening a little bit too much. And former Fed Governor Randy Krosner made the comments on Bloomberry's Balance of Power. Catch the program Weak It is at noon Eastern on Bloomberg

Radio and Television. Let's look at the action overseas stocks in the Asia fell over nine to post a weekly decline. China growth concerns continued to weigh on sediment Bloomberge Juliet Sally joins us from Singapore with the latest Good morning, Juliet, Good morning John and Karena. Jump in Chinese textures and energy stocks helped cap deeper losses on the regional benchmark index.

Nickel stocks in the region rose after Indonesia, the world's biggest producer of the commodity, told Bloomberg it plans to impose attacks on exports this year. Investors now look ahead to the Jackson Wholesomposium and close at a Home are likely cut by Chinese lenders to the loan prime rate concerns about China's slowing economy sending the MSCI Asia Pacific Index down for the week. In Singapore, Juliet Sale Bloomberg daybreak. All right, Juliet, thank you. Now taking a look at

oil prices are slumping this morning. Nix screwed oil is down one in a third percent on a dollar twenty two with at eighty nine dollars twenty eight cents of barrel oil is on track for a weekly loss with lingering concerns over an economic slowdown. Crewed has now given up all gains that followed Russia's invasion of Ukraine. Most actively traded in the pre market this morning, shares of

bed Bathroom Beyond down forty one cent. This move comes after activist investor Ryan Cohen, extended excited, exited his entire stake in the company. Cohen pocket at sixty eight million dollars in profits after holding Bad Bathroom Beyond shares for seven months. It's setting up a repeat of other meme stock moments, with the price drop for retail investors who relate to the trade being just as dramatic as its ascent.

But we take a look at the labor market now, John A new survey from p w C is painting a bleak picture. It says layoffs are in the works at half of US companies, and Bloomberg Charlie Pellett has that story. Last month, PwC pulled more than seven d US executives and board members across a range of industries.

Half of respondents said they are reducing headcount or plan too, and fifty two percent of implemented hiring freeze is more than four in ten are rescinding job offers, and a similar amount are reducing or eliminating the sign on bonuses that have become common to attract talent in a tight job market in New York. Charlie Pea Bloomberg Daybreak, Charlie, thanks turning to the pandemic. Now we're seeing more signs

that corporate America is turning away from prior policies. Days after the CDC shifted its COVID quarantine guidance, Amazon reportedly scrapping its COVID leaf policy. Bloomberus Rinida Young joins US Live with that story. Good morning Rnita, Good morning John. The two weeks of paid lead for COVID nineteen cases

that Amazon offered employees is now gone. Amazon is returning to standard sick leaf policies beginning today, and an internal memo published by Business Insider shows the company is also scrapping contact tracing across much of its network of warehouses. Now this could affect hundreds of thousands of employees at Amazon. It applies to all US employees except for those living in California, New York, Colorado, and Philadelphia. Live in New York.

I'm really need a young Bloomberg, daybreak. I re need to thank you all. Earning season is winding down, but we get one more report of note this morning. Firming machinery maker deer Or publishes results shortly. Bloomberg Intelligence says higher production and supply chain easing should support accelerated growth the company. And finally, let's talk politics. The legal troubles

circling former President Trump now. The judge of the Mara Longo FBI search warrant hearing is indicating he'd like to unseal at least parts of the search warrant at the heart of the search. Bloomberg's ad Baxter has details. The judges ordered the dj back to court next week with suggested redactions. One of the attorneys for media group seeking the release of the document, Diana Shulman, says she feels

good about the hearing. He understands that the public is going to likely be entitled to some parts of this warrants application and its affidavit. So the next hearing is next Thursday, and it seems most likely scenario oh is that something will be released in very heavily redacted form in San Francisco. I'm at Baxter Bloomberg day Break, All right,

thanks ahead of the cash showupen on Wall Street. Down futures one points, lower HANDSMP Evening futures down thirty two and the Nasdack futures down one hundred twenty six points. This is Bloomberg Day break That for insis to five oh seven on Wall Street. Time to bring in Michael Barr with more on what else is going on to New York and around the world. John, thank you very much, sir. New York City Mayor Eric Adams says, while outdoor dining is here to stay in the city, will remove abandoned

dining sheds. Adams says that abandoned or dangerous outdoor dining structures must be torn down quickly. When a dining shed is no longer in use, and if it's abandoned, it's a safety has it, we have to turn it tear it down. It can't be a safe haven for rats, it can't be a safe haven for illegal behavior. It has to be a place to allow people to enjoy dyning, Mayor Anams. The United Nations is urging Russia to stand down and not proceed with its mission to carry out

military action at a nuclear power plant in Ukraine. Secretary General Antonio Guterres adjusted any action there would be, in his words, suicide policess must be any actions that Mican they had safety, r S, unity and Lucian plants, and must not be used the spot of any need fed inferation. UN Secretary General Guterres repeatedly urged for the plan to be demilitarized. A former top executive of the Trump organization

has pleaded guilty to tax evasion. Alan Weislberg's guilty plea as part of a larger deal to testify against former President Trump's real estate company. Weislberg will served five months in jail and pay nearly two million dollars and taxes, penalties and interest. The number of migrants apprehended entering the U. S Coad hit a record two million this year, and the air release to await processing as Texas government of Greg Abbott sending bus loads of them to Washington, d C.

And New York City. The bus load of migrants is expected soon in New York City. Climate change is being considered a factor in the recent return of a brain eating amba, often found in freshwater sources, that's being linked to the death of the child in eastern Nebraska. It is the second such probable death in the Midwest this summer, with another incident suspected in Missouri last month. In Nebraska, Douglas County Health Director Dr Lindsay Hughes and just being

mindful of your exposure and freshwater sources. We are urging the public to simply be aware and to take precautions when they are being exposed to any warm freshwater sources out in public so lakes, streams, ponds. Dr Hugh says, though the illness is rare. Global News twenty four hours a day on air and on Bloomberg Quicktake power by more than seven hundred journalists analysts more than a hundred

twenty countries. I'm like of bar this is Bloomberg. John all right, Michael, thank you, and it brings us to five on Wall Street Time down for the Bloomberg Sports up tape and good morning John Staff. All right, Good morning John. The Medicine Braise just played nine games in fifteen days. The Mets one four or five in New York.

The Braves won three or four in Atlanta. They beat Jacob mc graham storing in the seventh in Name for a three two victory that gets them back to three and a half games behind the Mets in the n L as the Yankee lead a l east to helping nine games, but at the stadium the night after that dramatic en and he went over to Tampa Bay. Toronto got the new Yanks starter Frankie Montess with a five runs second in name and include a three run homber by Vladimir Guerrero Junior. Blue Jays went on to win

nine to two. George Bringer had four hits with the Jays Montes and three starts with the Yanks. Has pitched fourteen innings and has allowed fourteen runs. The guy he replaced in the Yankee rotation, Jordan Montgomery, now of St. Louis, has made three starts with the Cardinals and in seventeen meanings he's given up one run. Speaking of the Cardinals, they beat Colorado thirteen and nothing. That Finch had grand slam for forty two year old Albert Poohle's career home

run number six ninety. If big NFL story resolution and how long does Shawn Watson's suspension will be, NFL wanted it longer than the six games originally ruled by an arbitrat of the two sides settled on eleven games, a record fine of five million. Watson apologized but did not admit to committing any sexual in this conduct. I'm moving over my cer in my life and I'll continue to stand on my innocence. Just because you know, settlements and things like that happened, doesn't mean that a person is

is guency for anything. I feel like person has an opportunity to stand on his innocence and proved that, and we proved that on the legal side, and we're just gonna continue to push forward as an individual as a person. Watson's first game with this new team Cleveland will be Week thirteen against his old team Houston. John Stash Edward Blue Work Sports John, all right, thanks John, ahead of

the cat show up. All of Walstreet futures in the red right now down futures down two hundred eight points, the sub me eat many futures thirty four points slower, and the NASTAC futures are down one hundred deep points almost one percent. You're listening to Bloomberg day Break, and just ahead we'll get you set up for the trading day. We'll be joined by Kitchuks, the chief fex strategist at

Society General. You're listening to Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, to Bloomberg Business at and at Bloomberg Quicktake, this is a Bloomberg Business lash and I'm Karen Moscow. US Knock Index futures are falling this morning along with treasuries after a chorus of Federal Reserve officials reiterated they're resolved to

continue rate hikes. We checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P futures down thirty points this morning. Down features down a hundred seventy eight NASDACK futures down a hundred sixteen. The decks in Germany's down seven tenths of upper set ten. Your treasury down eleven thirty seconds, held two point nine two percent. They yield on the two year three point to four

per cent. N Max Screwed oil is down one per cent or ninety one cents at eighty nine dollars, fifty nine cents of Arrol Comic School down a quarter per cent or four dollars is seventeen sixty seven twenty announced the euro one point zero zero eight five against the dollar, British found one point eight one and again one thirty six point five too. And Bitcoin this morning down more than seven percent at twenty one thousand, seven hundred dollars.

And today we get earnings from during company. And that's a Bloomberg business flash. Now here's Michael Barr with more and what's going on around the world. Munchacle, Good morning, Good morning, Karen. A federal judge has ordered the Justice Department to put forward proposed redactions as he committed to making public at least part of the affidavit supporting the search warrant for former President Trump's estate in Florida. The judge gave prosecutors a week to submit a copy of

the affidavit. After being accused by more than two dozen women of sexual misconduct, Evelon Brown's quarterback to Shaun Wants it will now serve in eleven games suspension and pay a five million dollar fine. In baseball, the Yankees and Mets lost the Red Sox, Orioles and Giants also lost the Nationals. One Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists,

analysts more than a hundred twenty countries. Michael barn this is Bloomberg, John Michael, thank you, five twenty on Well Street. We are live for the Bloomberg Interact and Brokers Studios. This is Bloomberg Daybreak. Well you heard Karen Federal Reserve of his was reiterating the resolve to continue rate hikes. Traders raising tightening wagers for other major central banks around the world. Let's try to get you set up for the trading day head. We're joined now by Kitchos, chief

FIC strategist at sock Chen. Um. I gotta start on your home turf kit and uh, I'm waiting for a plague locust to hit there in the UK. What's the path forward for the Bank of England? And uh, fighting inflation? Does it? What cost to the UK economy? I think the cost is the cost is likely to be severe and the danger of the way that we that we pay for our energy bills and so for our electricity, which is seaxed on on a rolling basis, means that we're going to get a cap on energy bills that

goes up every few months. And the peak is looking higher and higher and so so we probably haven't seen peak inflation yet by some distance. And that's that's the source of massive concern um to everybody in the UK economy because obviously has less money for anything else. Um For the Bank of England. I think that they're caught really because there's a perfectly good argument that you should say that if the economy is heading to a recession,

why bother they going on raising rates? You know that will look after the inflation numbers for you in the next twelve months and rate rises now affect the economy and twelve to eighteen months time by then it will

be different. But but that that you know, any backing down from the red hikes that are priced in, and we've got we've got plenty of radar expressing in the coming m and we we look as if we're going to get to four before the Federal Reserve does just weakens the currency, and small open economy or medium sized open economy, the week of the currency, the more important inflation there is in random around we go in the circle.

So we are we are left for a central bank with Hobson's choice tighten more than they should too late in the cycle, because they have to be seen to fight inflation really hard, to maintain their credibility, both in the foreign exchange market and frankly in front of the press. We all saw yesterday in markets how the Central Bank of Turkey cut rates in the face of eight percent inflation, and the markets treated their currency accordingly. So it's yeah,

it's not good. I hope we don't get well that that's a I would argue, that's a central bank that's not anywhere near independent. Back to the UK though, raising rates, the sterling is falling, how much farther can it fall? Um? Look, I think anything, I don't. I mean, I don't think we'll get down to one tan you know, I don't think we're going to go back to the to to to the worst kind of of those kinds of levels, but um levels of my use. But the but I

think we'll get you somewhere like one fifteen. Is it's quite possible you have to overshoot in this process, you know. So so it's whatever I thought before, plus a temporary overshoot from which you come back. And one fifteen sounds like it sounds like a reasonal level. It will make London so cheap for you people, Uh yeah, well, King dollar, is that going to get dethroned anytime soon? Doesn't look

like it does it. It's hard, you know, I mean, firstly, because the second most important currency in the world is still you know, fighting, it's fight against against natural gas prices as a result of what's going on in Ukraine. And you know, even even if we get all the storage up to sevent full in time for winter in Germany, that's still two and a half maybe three months of storage if things get worse and Russian gas stops flowing.

And in the meantime, we've pushed up the global price of liquid natural gas really dramatically, So we're getting enough gas into get three months of extra extra supplies at a big economic cost. And that's that's going to you know, either either governments take that on as a huge fiscal hit or they parted onto consumers as a massive inflation hit. So Europe is Europe is still hurt. Let's pivot to

the US. Is a string of seemingly weak economic data can to encourage anything close to a dovish pit pivot from the FED. I think the FED suffers the same kind of problem as as you know, it's just a lesser degree of this credibility problem. If monetary policy works with an eighteen months lead, then frankly, Um, they should probably pivot more dovishly. But I don't think they can do that until all the measures of core underlying inflay sans start to behave and the most important one of

those this wage growth. They need wage growths to top out in a more clear fashion than it is before they'll have it. My sense is as soon as the market talks about the Fed pivoting Davish Lee, Fed officials come out to reinforce their credibility. That's a recipe for a smaller version of what we have here, where policy ends up being tighter than the economy needs it. The hasing marketself is more, the economic slowdown is a little deeper than it would be Um, and and then we

go through that cycle. You know, that's the price for but for maintaining central bank credibility these days, Okay, Kit, You's always a pleasure a chief Fax strategist as society general this morning Sterling one eighteen right now down about half a percent. Kit also mentioned the year on bets almost a parody. It is down right now, just slightly

against the U. S. Dollar. You are listening to Bloomberg Daybreak and Bloomberg Weather for met round just Robb Carolin, mostly sully warmed the hind temperature ninety degrees, partly cloudy to light lows in the mid seventies. Tomorrow partly sunny, maybe a late day shower by eighty five to ninety degrees.

Broadcasting live from the Bloomberg Interactive Brokery Studio in New York, Bloomberg E Living free on to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine six to the country, Sirius XM Chado one nine and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm John Tucker and I'm Karen Moscow. We are just about four hours away from

the open of US trading. We get you up to date on the news you need to know at this shower and you. Futures are lower this morning as traders react to mixed signals from the Fed. It's unclear exactly how big the Central banks next move will be on interest rates. St. Louis Fed Governor James Bullard once as seventy five basis point move in September. Kansas City's Enter

George is more conscious. San Francisco's Mary Daily is open to fifty or seventy five basis points, and Minneapolis Fed Chief Neil cash Curry warrants a recession could be on the horizon as we continue to raise rates, as we continue to raise costs, sort of speak of borrowing across the economy. It should be putting tapping the brakes on the US economy, and that makes it more likely that

we would end up in a recession. Neil cash Curry made the comments a day after the release of July's FED minutes, which showed officials weighing exactly when to show the pace of too slow rather the pace of rate hikes. And looking at the labor market, a new p WC survey paints a bleak picture on the future of the US labor market. The results showed layoffs or in the works at about half of US companies despite a tight

labor market. The more than seven US executives and board members polled said they're reducing headcount or planned to and over half implemented hiring freezes. I'll taking a look at a major market mover. This morning shares a bad bath and Beyond down forty one percent. It follows news that activist investor Ryan Cohen exited his entire stake in the company. He pocketed sixty eight million dollars in profits from the sale, and days after the CDC shifted as COVID quarantine guidance,

Amazon is reportedly removing it's COVID leave policy. Let's get more from Bloomberg's Rinita Young, who joins us Live this morning. Good morning, Rinita, Good morning John. Two weeks of paid lead for Amazon's COVID nineteen cases that Amazon offered employees now gone. Amazon is returning to standard sick leaf policies beginning today. An internal memo published by Business Insider shows the companies also scrapping contact tracing across much of its

network of warehouses. This affects all you Amazon employees, except for those living in California, New York, Colorado, and Philadelphia. Live in New York, I'm gonna need to Young Bloomberg day break. All right, thanks for Rena, and today we're also going to get earnings from Deer and Company and ahead of the cash open on Wall Street. Down futures right now one nine point slower. That's down six tenths

of a percent. Smp E Mini futures they're down thirty two, down three quarters of a percent, and the Nanzac futures right now one one point slower. That's down nine tenths of a percent. You're listening to Bloomberg daybreak and that brings us to five thirty three on Wall Street, and that is time to bring in Michael Barr with more on what else is going on to New York hend

around the world. John, Thank you very much, sir. New York City Mayor Eric Adams says a new multi agency enforcement initiative will focus on removing a band and outdoor dining sheds. Adam says, though outdoor dining is here to stay and New York is love dining out, and we need to do it in the right way to make sure that is safe, clean, and respectable to our neighbors and those who live in the communities where we have

these structures. Mayor Adams made the announcement in front of an unused shed in Midtown before taking a sledge hammer to help bring the structure down. European intelligence officials say Russia is likely using the Zamparezza nuclear power plant in southern Ukraine to shield its troops and equipment, undermining the safety of the plant's operations. U N Secretary General Antonio Guterres repeatedly urged for the plan to be demilitarized. Potential

suicide gu terrists spoke in Lviv. The former chief financial officer of the Trump organization pleaded guilty to not paying taxes on almost two million dollars in compensation in the Manhattan, New York Court. Alan Weisselberg could be called to town to find against the organization as early as this fall. Weiselberg will spend five months at Riker's prison in exchange for the plea deal. Monkeypox cases continued to climb in

the US, now topping fourteen thousand. The White House monkey pox Response Team announced an additional one point eight million vaccine doses will be available starting early next week. The head of the World Health Organization's monkey pox response Dr. Rosamund Lewis, said it is not clear why the US has so many cases. There are other countries in the Americas that are also seeing it steep increases in the

number of cases. Part of that maybe, of course the spread of the virus, so another component maybe, of course increasing access to testing. The w h S. Dr Lewis says the US accounts were about a third of all cases worldwide. Global News twenty four hours a day on airand on Bloomberg Quick Take, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. Michael bar this is Bloomberg, John Michael, thank you, and

it's now five thirty six on Wall Street. That's time for the Bluebird Sports Update. Good morning John Stashowerd and

Morning John. Mets lost those first two games in Atlanta, but then had the one to punch on the Mount Maxers there one hit start, but a rare Jacob Degram lost the Braves, a couple of early runs driven in by Dan's by Swanson and Austin Riley, Mark Canna a game time to run over fifth any but Atlanta Sporting in the seventh off to Gram and one three two comes down to two pitches um the one uh Dansby just a bad slider over over the middle, and then the wonder Riley, So um, you know that's those are

two mistakes I wish I had back, but you know they had the life on it, and uh, you know it's frustrating, but that is what it is. Leave the Braves mat by three and a half. That start a four game weekend series tonight in Philadelphia. Then it's the Subway series in the Bronx and Surser and de Gram will be the Mets starters. And the Yankees even won two games in a row since July at the Stadium, all Blue Jays nine to two or five run second in hey Off. Frankie Mantas's first home start with the

Yanks did not go well. The lone Yankee bright spot the first two major league hits the rookie as Waldo Cabrera. Yanks falled three and a half games behind Houston for best records in America. Lady Yastro was just one in Chicago to five. Week to the NFL preseason has home games for the Giants Sunday again Cincinnati and the Jets Monday night versus Atlanta. Tom Brady was not with Tampa Bay all week and it's not known when he's going

to return. Bucks coach Todd Bowle said, we'll see. It's not known why Brady left the team, but bol said he's not concerned. We do now know when Deshaun Watson will started pointing for Cleveland week thirteen against his old team Houston. Watson's suspension for sexual misconduct was raised from the original six games to a mutually agreed to eleven book John stash ellis louverg st John. Alright, thanks, Shaan,

head of the cast Showpen on Wall Street. We have right now the Dell futures downed one hundred eighty three points, and right now it is five thirty seven. The odd spree Bloomberg radios on the air from San Francisco to New York, London to Hong Kong. And let's do our tri state business reports, and so that here's Ed Quarry. Madison Square Garden Entertainment is thinking about a spinoff of

its arena and theaters along with its cable networks. The businesses include Madison Square Garden, Radio, City Music Hall, The Beacon in Chicago theaters. It also includes the MSG and MSG plus cable networks. Gateway, a series of tunnel and bridge projects to improve connections between New York and New Jersey is ramping up hiring in order to gain access

to billions in funding over the next year. It's required to show it has sufficient technical staff and controls in place in order to be eligible for its next round of federal grants. A person close to the project says the hiring could run into the dozens. Suffolk County, New York, on Long Island had its General Obligation bond rating raised two levels by S and P Global. The move comes as federal stimulus cash and higher sales tax collections boost

its finances. That your Bloomberg Try State Business Report. I'm Ed Corey. All right, thanks said. It is now five thirty eight on Wall Street. Let's check in now with our global news Tune for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm John Donneger telling ten ten Wins listeners. There's talk

of spinning off the rockets. I'm Gina Servetti and for w b b M in Chicago, I'm reporting that Ribbyan plans to stop selling it's less expensive version of its electric pickup truck. I'm Jeff Golinger and on wtv N in Columbus. I'm reporting that Columbus based Express is expanding its spinoff chain of Edit clothing shops. I'm klin Heca on BlueBag dab Dish Radio in London. We are reporting on record low consumer confidence in Britain and retail sales

that see shoppers pay more to buy less. I'm ed Corey on w w J and Detroit Time reporting GM and Ford want to deploy a limited number of self driving vehicles without steering wheels or brake pedals. It is by thirty Died on Wall Street. The following is an editorial from Bloomberg Opinion. This sedatorial was written by the Bloomberg Editorial Board. Around the world, delays in visa processing

are preventing countless foreigners from coming to the US. While processing times vary greatly from consulate to consulate, the average wait for an appointment to obtain a US visitor visa is nearly eight months. These delays hurt the US economy, sap investment, and undermine America's image. But unlike more politically fraught immigration issues, this problem is eminently fixable. The Biden administration should intensify its efforts to speed up the visa

Processing System. The global competition for investment, talent, and influence is only going to grow fiercer in coming years. The U S should embrace any measures that help it stay in the game. This editorial 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 Opinion. This

is Bloomberg Day Break. A Futures this morning point to a lower open on Wall Street down, Futures down one seventy points. That's down, the camp of percent SMP even in futures down twenty nine points, and the NAZAC futures one hundred seven points. Lower. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the

Bloomberg Business Atland. At Bloomberg Quick Tape, This is a Bloomberg Business Flash and I'm Cameron Moscow, and you want to stock index futures following this morning along with treasuries. After a chorus of Federal Reserve officials readit reiterated their resolved to continue rate hikes. We checked the markets every

fifteen minutes. Throughout the trading day on Bloomberg SMP futures are down twenty eight points down, futures down a hundred fifty seven and AS day futures down one hundred nine. The decks in Germany's down four tenths of upper cent, and your treasury down twelve thirty seconds, held two point nine two percent. They yield on the two year three

point two four percent. Nine max Screwed oil is down one point four percent on a dollar twenty three at eighty nine twenty five cents of barrel comic school, there's down a quarter percent or four dollars ten cents a seventeen sixty seven ten an ounce, the euro one point zero zero seven six against the dollar, British bound one point one eight seven four the end one thirty six point five nine, and bitcoins down more than seven percent. It's a twenty one thousand, seven hundred dollars. That's a

Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. A federal magistrate judge is giving the Justice Department one week to propose redactions to the half of David, which led to the FBI search of President Trump's home in maur Longo. The NFL and the Players Association handed down in eleven games is spension to Cleveland Brown's quarterback to Shaun Watson, he was accused by more than two

dozen women of sexual misconduct. In baseball, the Yankees and Mets lost the Red Sox, Orioles A's and Giants also lost the Nationals one and just not a good measure. The Astros put at what four and y whipping on the White Sox one. Global news twenty four hours a day on air and on Bloomberg Quicktake Power by more than twenty seven hundred journalists and analysts more than a

hundred twenty countries. I'm Michael Barr, and this is Bloomberg, John Hose Baseball, nut football and they did play football, isn't it? Oh? Okay? It is five forty night on Wall Street. We are live in the Bloomberg Interactive Broker studios. As time now to take a look at some of the latest headlines at a d C. Longtime Trump CFO Weislberg pleading guilty to tax fraud and the Trump search affidavit could be partly unsealed. At least that's according to

a federal judge. Let's stick a deeper diving into these stories. This morning, we're joined by Bloomberg Washington reporter Jack Fitzpatrick. Jack factual me with us this morning. What's the next step in uh, this trial in New York where the CFO for the Trump organization has pleaded guilty and now is headed to Rikers Island. Presumably yes, Uh, he is headed to Rikers Island. He took the deal that gives him a maximum or I guess the standard of five months,

but with good behavior that could be a hundred days. Uh. That's opposed to he faced as much as fifteen years for these The next step is part of this plea deal is him testifying against the Trump organization. Uh. That that that is part of the agreement. Now that is not testifying against the former as it in himself. Um. But there clearly is another shoe to drop as it pertains to these tax broad charges because he took this

deal uh pleading guilty. Uh to you know, the the the issue is essentially a system of unreported payments giving people houses and cars and that kind of thing instead of reporting their uh, their taxes there the payments that they're supposed to pay taxes on. Uh. So there this will become a bit more broad as he potentially implicates others in the Trump organization as part of that plea deal, the Trump organization, the business potentially could be dissolved at

some point because of all this. Is that correct? Uh? That that is I think not out of uh not out of the question. Um hard to say exactly how this will affect the organization. I mean, you know, the the CFO, the long time CFO is not a small bit player. Uh and if he is going to testify against uh, the organization more broadly in these tax schemes, then it's it's hard to even really place a limit

on the effect on the organization itself. I think the the questions we can't answer right now are who else specifically does this lead to? But as it pertains to the Trump organization on the whole, it's it's very bad news for the CFO to take this deal into plan to uh cooperate and provide more information about the extent of the the tax fraud charges. Yeah, I've lost count the number of people in the orbit of Donald Trump who who have gone to jail. At this point, let's

move on to the the search warrant. There's the warrant itself, which we know about, and then the affid David surrounding two separate things. But what's happening on that front. Yeah, so it looks like at least part of the affidavit will end up UH coming to the federal judge in this case said he is not inclined to to keep that affidavit fully sealed. This would be the justification behind getting the search warrant to search marl Lago last week. UH. This this is in response to a push by several

media organizations that want to see it. It is typically very unusual for this kind of affidavit to be made public, but obviously this is these are unusual circumstances. It's extremely high profile, it regards a former president. So the the judges said that, you know, a partial revealing of the information in this affidavit UH is possible. The question then is how much does d o J seek to UH to keep secret. And if they try to keep essentially the whole thing secret, it may be taken out of

their hands. The judge could make the final decision on how much is released, but for now it's up to d o J to make a proposal on how much of this they want to redact before presumably at least some of this would be made public. I expect we're going to hear the phrase heavily redacted the association with this. Jack a pleasure. Thanks for being with us this morning, Bloomberg's Jack Fitzpatrick, Karen Ry John. Thanks. It's fifty three

on Wall Street Time. Now for the Bloomberg Law Report, we get to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger. The California Supreme Court refused to toss a lawsuit against Sony Music over the authenticity of songs on a Michael Jackson album that was released after

the singer's death. John Hancock Insurance will pay twenty six million dollars to resolve New York's claims that the company terminated long term care policies before policy holders exhausted benefits. Miami Marlin's general counsel Ashwin Krishnan is leaving the team to become the head of legal at the sports betting start up Better Bloomberg Law. Everything you need, all on one legal research platform. Including guidance analysis and Bloomberg market intelligence.

Find out more at Bloomberg Lawn dot com. All right, Jess, thank you. Now let's get more on the legal implications of Allen Weiselberg's guilt deeply. The Trump Organization's longtime chief financial officer pleaded guilty to evading taxes on a free apartment and other perks, striking a deal with prosecutors that can make him a star witness against the company at a trial this fall. But it's part of his agreement.

The seventy five year old will spend five months behind bars, followed by five years of probation, and will pay nearly two million dollars in back taxes, penalties and interest. For more in the development, June Grosso speaks to Greg Farrell, a Bloomberg investigative reporter for our legal enforcement team. Is

this plea deal Weislberg flipping on Trump? No, not in the sense that we understand flipping as being Let's say Michael Cohen several years ago, where this Cohen describes he decided to plead guilty, and he testified the best of his knowledge, including against Trump in the Stormy Daniel's case and related cases and eventually has really been aggressive in promoting that. Whitelberg's trying to walk a fine line he wants to and succeeded in reducing exposure to like five

months maximum. He's the guys seventy five that matters. I mean, he might get, you know, less than that. And he's putting guilty to fifteen charges and he'll be required, if called, to testify in the rest of the trial against the

Trump organization to testify about what he did. So it's not like ratting out Donald Trump personally saying I was in the room with him and did this, but just providing testimony that as an official, the guy who actually controlled the finances and the payments, etcetera of the company, it's going to be very damaging to the organization and

implicitly to Trump himself. He didn't implicate Trump or his family, and he's not going to testify about Trump and his family, and he hasn't cooperated with prosecutors in their broader investigation

into Trump, So why give him a deal? I think the prosecutors a must have realized that despite the fact that he's facing fifteen years a guy his age on something like this where there's not a lot of case history is probably not get anywhere near that, and then the effort and manpower going into prosecuting him versus the value he would have to testify in court about his role there, Like public relations wise, it's already a victory, you know, because everybody's giving up on Alvin Bragg when

the investigation of Trump were dead, you know, when those two star appointees of Saivance left, and now this is very much back in the game. So it's a momentum for the d A's office if they want to continue pursuing Trump himself. It cuts out a very toilsome part of the trial against an individual, and it's much stuffer to get a criminal conviction of a guy who's seventy five years old, and you've generated some sympathy for him that it isn't an organization. People just don't care about

finding an organization guilty. The organization is not going to jail. So there were several upsides, you know, embedded in this for the prosecution. And that's Greg Ferrell, the Bloomberg investigative reporter for our Legal Enforcement team, speaking with June 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 tools at Bloomberg Law dot com and on the Bloomberg terminal at b law. Go and futures this morning, they're lower. S and P futures down about thirty two points down. Futures are down one eighty four and NASDAG futures down one hundred and nineteen. The ten year Treasury down eleven thirty seconds,

held two point nine percent. Still ahead. On Bloomberg Dave Break, we have a check up, the business headlines and all the news you need to start your day, and this is Bloomberg