Bloomberg Daybreak: August 22, 2022 - Hour 1 (Radio)

under the age of eighteen plus. A car bomb has killed the daughter of a prominent ally of Vladimir Putin. I'm Michael Barber. More ahead, I'm John Stam showering sports. An amazing win for the Mets, a much needed one for the Yankees. The Subway Series begins tonight. The Giants

won their preseason game. That's all Train ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning, I'm Nathan Hager and I'm Karen Moscow.

US DOT Index futures are lower this morning. We are coming up to five o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day on Bloomberg right now, S and P futures are down forty eight points down, futures down three hundred and nownsday futures down two hundred to the decks. In Germany is down about one point eight percent. Ten year treasury it'll change yeld two point nine seven percent, and the yield on the two year three point to eight percent.

Nine x screwede oil is down one point seven percent, Nathan, Karen, It is all about the FED this week. The annual Jackson Hole Symposium begins on Thursday. FED Chair J Powell may use his speech on Friday to push back on speculation that interest rates will fall in three. Benchmark ten year treasury yields came within a whisk or three percent, with traders betting policymakers will double down on their hawk is stance still. Jablonski is co founder of Defiant c

t FS. You know what I would expect is that you know, he'll kind of follows to what he's sort of been doing before, and you know, we'll probably hang on every word and trying to determine whether or not we thought he was he was devilish or whether he was he was hawkish. But you know, the message we've been getting is very much it depends on the data defiance. Ct F. Silvia Jablonski does not think the market will get a clear cut message from the Fed. We of course,

will have complete coverage of the Jackson Hoole Symposium. Bloomberg's Surveillance will be there live beginning on Thursday, with Tom Keene, Lisa Ramo Witz, and Jonathan Farrell. Well Nathan, The FED is still on a collision course with financial markets. According to the latest m L I V. Paul survey, stunks and bonds are set to tumble once more, even though

inflation has likely peaked. Eight four percent of respondents in the survey say it may take two years or longer for the Fed to bring inflation down to its official long term target of two Well. Wall Street's focus will be on the Fed this week. Karen will still get a number of earnings reports from tech companies, and we a preview from Bloomberg's Charlie Pellett. Those tech names this week will include Autodesk, Dell Into its sales force, Snowflake,

and vm Ware. Questions abound about the outlook for corporate earnings given federal Reserve efforts to quell inflation with higher interest rates. Alan zafron Is co CEO at I e Q capital earnings aren't as bad as people fear. Inflation is starting to come down. You have a remarkably over sold short term technical condition and if you do read the chartists and technical analysts are out there, they'll tell you that the set up right now is for a

continuation of this rally. Also reporting this week, Dollar General, Dollar Tree, and Zoom Video Communications in New York, Charlie Pellet, Bloomberg day Break Charlie Thanks. In Asia, Chinese banks have cut their loan of prim rates, and Bloomberg Daybreak Asia anchor Bryan Kurdish has more from Hong Kong. The one year rate was lowered just five basis points to three point six five percent. The five year rate reference for mortgages was cut fifteen basis points to four point three percent.

The rate cuts follow news on Friday of additional financing to prop up the real estate sector. Chinese developer stocks jumped in Hong Kong. It comes as the economy faces pressure on a number of fronts. In the maintime, authorities have extended power cuts in Sichuan Province. They have activated the highest emergency response in Hong Kong. Brian Curtis Sloomberg gabriak Okay Brian, thank you. Oil is following this morning. West Texas Intermediates down one point seven percent to eighty

nine dollars one cents of barrel. The move comes as negotiations move forward to revive a nuclear deal with Iran. Details from Amy Morris in our Bloomberg newsroom. In Washington, President Biden spoke with leaders from Germany, France, and the UK for of the original signatories of the Iran nuclear deal, which also include Russia and China. The four discussed ongoing negotiations.

Iran has released its response to the latest framework earlier this month, and the US State tai lipped on its position. The EU took it as constructive. One advisor to Iran's nuclear negotiating team, says tron Once the US penalized if it backs out again. In Washington, I'm anymore as Bloomberg Daybreak,

All right, Amy, thank you. Back in East Asia, the US and South Korea are planning their biggest drills since North Korean leader Kim Jonglen's summit with then President Donald Trump, and Bloomberg said Baxter has that story the biggest in about five years because the Trump Kim summit apparently did not work in enticing Kim Jongon to cut back on his nuclear programs. The drills are called Bullschief Freedom Shield

and are expected to involve thousands of military personnel. The US and South Korea say they're defensive in nature and will coordinate forces to respond to the possible invasion by North Korea. An angry response from the Kim regime is expected. In San Francisco, I'm at Baxter Bloomberg Daybreak, all right, and thank you. In corporate news, the takeover battle for Signify Health is heating up. To get the latest on that live from Bloomberg, Jo need a Young, Good morning, Nita,

good morning, Nathan. Sources say Amazon dot Com, United Health, CVS Health, and optioned care Health are all vying to acquire signify Health now. United Health submitted the highest bid at more than thirty dollars a share, while Amazon's offer is close behind. Signify closed above twenty one dollars on Friday, which values the company at nearly five billion dollars. None of the plans are finalized yet, and the bidders plans

could still change. Also, Signify could always opt to remain independent. Sources tell Bloomberg that Signifies holding a board meeting today to discuss the bids. Live in New York. I'm real need a young Bloomberg dabreak. I re need to thank you. I get ready to pay more for Tesla's self driving system. CEO Elon must tweeted the price will rise three thousand dollars to fifteen thousand in North America. Ian grease will take effect on September five. It's a second price hike

for Tesla's self driving this year. And finally, Karen was tough for some Gay the Thrones fans to enter the House of the Dragon through HBO Max. The Fantasy Prequels debut episode overwhelmed the streaming service last night. More than three thousand outages were reported as of nine pm Eastern. HBO's parent company says some viewers had trouble connecting through

Amazon Fire TV devices. You're listening to Bloomberg Daybreak in South five oh seven on Wall Street where seventy three degrees in Central Park on an accident southbound West Side Highway by a hut. Saying more about that in traffic shortly. First, Michael Bars here with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York has its first confirmed case of

monkeypox in someone under the age of eighteen. Officials from the New York Department of Health say the virus was detected in a child or teenager living outside of New York City. The virus is primarily spread through skin to skin contact, and the majority of the cases have affected gay men, but it also has been detected into women outside of New York City and sixteen women living in

the city. With the school year about to begin, New York City schools saying they have not yet received any official guidance about monkey pocks mean while starting today, an additional three sixty thousand vials of monkeypox vaccine will be available nationwide. That's potentially enough vaccine for one point eight million shots and arms using the Biden administration's new approach to stretch limited supplies. In Kansas City, Missouri, health official

Scott Clarity is addressing privacy concerns. The city now has an online survey to help identify people who may qualify for the vaccine. If you're concerned that you may have been exposed to to to monkey pox, get online fill out that form. Health official Scott Clarity says, according to data, there are more than fourteen thousand monkey pox cases nationwide. Republican Congresswoman Liz Cheney says that her focused al is

keeping former President Trump out of the White House. Following her election loss, Cheney said that President Joe Biden Phoneder and they had a very good talk. Cheney spoke to ABC just days after her primary loss in Wyoming. No regrets, UM, you know, I I feel. I feel sad about where my party is. I feel sad about the way that UM too many of my colleagues have responded to what I think is a great moral test and challenge of our time. Liz Cheney spoke on ABC's This Week, which

can be heard Sundays on Bloomberg. Ukrainian officials are denying the country's Russian allegations that they were behind the car bomb attack that killed the daughter of a prominent Vladimir putin Alle in Russia. Daria Dugina, the daughter of a staunch supporter of the war, killed by a car barb near Moscow. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than journalists,

an analyists, more than entrees. Michael barn This is Bloomberg, Nathan, Michael, Thank you Almost five ten on Wall Street time for the Bloomberg Sports updates. Good morning, John stanshown All, Good morning, Nathan. Subway series tonight. The Mets won both games last month at Citi Field. Now they played two in the Bronx and no question who the hotter team is coming in. The Yankees did win yesterday. It was just their fifth

win in the month of Angus. While the Mets, who did lose three of four in Atlanta, one three or four in Philadelphia and yesterday's win was amazing. They had to start a rookie Jose Buddha. He served up two three run homers with the Phillies Alec Bone and the Mets traield for nothing and later seven to four Mark Kenna to the rescue game time, three run omer seventh inning. And then Canada came up in the night with the

Mets trailing by iron. Robertson delivers swinging and Crill left Doc don't pay to leave this, and again they take the lead. Mark Hanna with his arm, He's going to his head between Harston second as he rounds the pass to call them AT's one, ten to nine. Yankees been while finally beat Toronto at the Stadium four to two to avoid a Blue Jay's four games swing. Finally a clutch hit. It came from Andrew Benn and Tandy has

been quiet since his arrival from Kansas City. His first Yankee home run game winning two run shot seventh to name the win to Lou Trevino. Another recent pickup he got the last seven out Subway Series pitching matchups favorite the Mets, Max Cheryser Ghost tonight, Mac Jacob to Graham

Tomorrow it MetLife. The Giants third string quarterback Davis Webb rallied Big Blue two preseason win over Cincinnati, Webb through to fourth quarter touchdown passes and another game that met life Tonight, It's the Jets in the Atlanta Falcons, John stash Were Bloomberg Sports Nathan Okay, John Thanks. Futures moving lower to start the week. SMP futures down forty eight points, STOUT futures down two undred ninety six. Nasdaq futures leading

the declines this morning, down two undred points. That is a drop of one and a half percent. We check in live next with recalvasin ahead of US equity strategy at RBC Capital. This is Bloomberg Bloomberg eleven three oh weather. Lots of cloud, scattered showers and storms today with a high in your seventy five degrees. A few more scattered showers and storms tomorrow with a high your eighty five, sunny near ninety for Wednesday right now seventy three in

Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business Allan at Bloomberg Quick Take. This is a Bloomberg Business flash and I'm Karen Moscow. Stops in Europe are treating along with US stock index futures is the Federal reserves commitment to tighter monetary settings and worries about the effect on economic growth way on investor sentiment. We check the markets

every fifteen minutes throughout the trading day. On bloomberg S and P futures down forty eight points down, futures down two four, NASTAG futures down one six and the decks

in Germany is down one point eight percent. The ten year treasury that'll change you'ld two point nine seven percent yield on the two year three point to eight percent nine max Screwed oil is down one point seven percent on a dollar fifty six at eighty nine dollars, twenty one cents of barrel comics goll down nine tenth per cent or sixteen dollars fifty cents at seventeen forty six

fifty an ounce. The Euro is at one point zero zero one zero against the dollar, the N one thirty six point eight U and Bitcoin is up a tenth of uper It's well, actually it's down down one and a half percent at twenty one thousand, one d sixty dollars. Game Stop and had Beth and Beyond are leading to clines and meme stocks is the latest frenzy and the shares loses. Steam, Ben, Beth and Beyond is down nine

percent this morning. Game Stop is down five and a half percent, and AMC Entertainment is falling down thirty five p and as a Bloomberg Business Flash, now here's Michael Barr with more on what's going on around the world. Minchael, good morning, Good morning Karen. The White Owls saying during a joint phone call the leaders so the U S, UK, France and Germany the Sky how to revive the around nuclear deal. Previously, Tehran had curbed its nuclear program in

exchange for relief from economic sunctions. Ukrainian officials are the nine Russian allegations that they were behind the car bomb attack that killed the daughter of a prominent Vladimir Putin. Ally. In baseball, the Yankees beat the Blue Jays four to The Mets beat the Phillies ten nine, The Orioles beat the Red Sox five three, The Nationals lost, The A's

beat the Mariners five three, the Giants one. NFL preseason yesterday, the Giants and Ravens won global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists and antilists and more than a hundred twenty countries. How Michael bar this is Bloomberg. Nathan, Okay, Michael, thank you. It is coming up to five twenty on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak as we get a new trading week

started with a focus on the FED. We are joined this morning by Lori Calvacina, ahead of US Equity Strategy at RBC Capital Markets. LORI great to speak with you as always, So we are seeing a pretty strong dip in futures contracts. Is this the case of a market no longer fighting the Fed? As we get ready for Jackson Hole, Well, thanks for having me as always, it's

always great to be here. Look, as I was talking to investors last week, um, I was hearing less about the FED, frankly, and I was hearing more about simply the state of valuations, with investors telling me they simply thought, if you if markets look cheap back in June's that they were no longer looking cheap today and really questioning whether or not for the uh challenging economic backdrop was

still baked into share prices at current level. So I think the FED is always a source of volatility for markets, but I think valuation is really what was concerning investors as last week came to an end, Well, where do you see valuations at this point? Looking at the SNP right now, it's pretty close to your target around right. We've gone a little bit above our target recently, and you know our view, and remember we are trying to

guess where the market is going to be on December thirty. First, we're not, you know, sort of marking the entry year, you know, sort of ups and downs with that number. UM. But what we found is that if you look at valuations, there's still a tremendous amount of uncertainty around the earnings outlooks.

That makes it tricky to peg valuations UM. But we do think things are getting close to around twenty times around nineteen eight, nineteen nine, nineteen point nine, depending on whether or not you're looking at our two or three EPs forecasts. And while that is rich and that is above average and definitely a big, you know, sort of move off the recent loath, importantly, it's not back to the peaks that we've seen over the last four or

five years. So I think if you're trying to use valuation as a reason to say this value rally has to end now, I really don't think that's sufficient evidence. The concerning data point. Yes, um, sort of a silver bullet for turning more bearish in the short term. Now we're getting close to the end of earning season here, where do you see earnings going at this point? Our revision is going to need to keep being lowered. The

great question. It was something that was definitely coming up a lot in our meetings last week, and we did actually over the weekend just go back and do an analysis and look at where major bottoms have happened in big crises like the tech bubble, they een sell off, the pandemic industrial recession, and we actually found that markets tend to bottom well before earnings estimates start turning back up again. Um. Usually there's the lead time varies, but

usually by a number of months. So you know, we are concerns that earnings expectations will need to come down. We are concerned it could be a source of volatility for stocks in the months ahead, but we don't think it necessarily precludes the idea that we saw the lows back in June. Does that have you looking at different styles of looking closer to small cap versus large cap? You know that actually earning stack DRAFF is one of

the reasons why we like small over large. We do think small caps have really baked in a short, shallow, mild recession and perhaps something even more extreme than that. UM. But we've also found that if you look at earning sentiment recently, we're not getting as big a downgrades in

the small cap space as we are the large cap space. UM. I think that really because small caps didn't enjoy the same kind of melt up in expectations for large subsidity and this last year early this year, but certainly in an indirect way, it is a tail went for small caps at the moment. Is that because you're thinking that the there's a prospect of an economic slowdown providing more

of a lift for small caps. What's the impact potentially of slow down in the economy on stocks more generally, Well, I think that a lot of it is baked in at this point in time. I mean, again, assuming that it's something that plays out largely this year and is of the short, shallow type variety. We've actually compared SMP five hundred pricing and RUSTLE two thousand pricing against moves

and jobless claims, and they're already baking. They actually tend to trend together pretty closely on your re year basis, and they're already baking in a rather significant spike and jobless claims when to go forward basis beyond what we've already seen. Um So, what I've been telling investors is, if you think this recession is going to happen largely next year or the middle of or end this next year,

that's probably not in the market right now. But if we really expect this downturn to play out in coming months and quarders, we probably did pay for the price for that back in June. Just thirty seconds left here, Lauria, what kind of clarity are you expecting clarity from Chairman Powell when it comes to rates or the path of the economy when he speaks on Friday. Probably not the kind of clarity that would allow me to just sort of take next week off and really enjoy the end

of the summer. Um. I think there's always the potential for the Fed to add to volatility and stocks. I think markets have been trading up on the idea that we've seen the peak and inflation and the FED can start to ease up or move to the pause. Uh, you know, sometime in the force sable future, and when that's a consensus argument, that's always sort of room for markets to just, you know, kind of move away from that view and add from volatility. But we'll see what

he has to say. And indeed on Friday, coming up here Lori Calvasin ahead of US Equity RBC Capital Markets always great to get your thoughts. SP futures right now down forty eight points. Staff futures down thereunder one Nastack future is lower by one hundred ninety nine points your list. Think to Bloomberg Daybreak, Good morning, Bloomberg eleven three oh weather.

Lots of clouds today, scattered showers and storms of the high near seventy five, will get up to the mid eighties tomorrow, with a few scattered showers and storms possible

by Wednesday. Sunshine at the high in your ninety right now seventy three in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg in Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixteen to the country, Sirius XM Chad A one nineteen and around the globe the Bloomberg Business app in Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street.

Good morning. I'm Nathan Hagar and I'm Karen Moscow. We are just about four hours away from the open of U West Trading. Let's get you up to date on the news you need to know at this sohour. It's all about the FED. This week the annual Jackson Hole Symposium against Thursday, and we'll hear from FED share J

Powell in a speech there on Friday. Bloomberg's Vinnie down Judas has a preview the FED chairs battling inflation after the central bank fumbled at the onset of the worst price surgeon decades bloombrig Economics as Powell attempt to steady the message on interest rates and his talk at Jackson Hall and dissuade Wall Street that the FED is made of devish pivot by signaling the central Bank is far

from done in this year's tightening campaign. So far, the Fed is lifted its benchmark rate from near zero to two point five percent. Bene dryl Judais Bloomberg day Break. Al right, Bennie, thank you, and we'll have complete coverage of the Jackson Hole sympose on Bloomberg. Surveillance will be there live well with Wall Street focus on the Fed this week, Karen, we're also getting more earnings reports. Dell, Salesforce and Zoom are among notable tech names reporting. We

also hear from Peloton later this week. Well overseas, Nathan, Shinese banks have cut their loane prime rates as Beijing pledges to offer developers more financing. Hid Chen is head of investment strategy at Hi Tong International. I think we've already reached a point that the central government really need to step in and announcement over the weekend on the potest things. This executive good star. I think that really

need to provide a backstop. And Hi Chan with High Tong International says markets want to see how the Chinese government will prop up it's struggling property space. Geopolitical note in Asia as well this morning, Karen, the US and South Korea are planning military drills, their biggest since North Korean leader Kim Jong An's summit with then President Donald Trump. Well incorporate news now, Nathan, The takeover battle for Signify Health is heating up, and we get the latest life

from Bloomberg Shore. I need a young Good morning, Nina, Good morning, Karen. Sources say Amazon dot Com, United Health, CVS Health, and option Care Health are all vying to acquire Signify Health. United submitted the highest bid at more than thirty dollars a share, while Amazon's offer is closed behind. Signify closed above twenty one dollars on Friday, valuing the company at nearly five billion dollars. Now, no plans are finalized yet, and the bidders plans could still change it.

Signified could always opt to remain independent. Sources till Bloomberg that Signify is holding a board meeting today to discuss the bids live in New York. I'm gonna need a young Bloomberg day break, all right, we need to thanks Oils following this morning, down nine tenths percent of barrel as negotiations move forward to revive a nuclear deal with Iran, and again futures are lower. S ANDP futures down fifty

two points down. Futures down three hundred twenty six, nasday futures down two hundred ten straight A hand your latest local headlines, and this is Bloomberg. Karen, thanks thirty three on Wall Street, seventy three degrees in Central Park. Still got that accident south found West Side Highway A hundred fifty eight. Michael Bars here with Moar on what's going on in New York and around the world. Michael, thank

you very much. Nathan. New York City schools say they have not yet received any official guidance about monkey Box. It comes as New York has its first confirmed case of monkey box and someone under the age of eighteen. The New York Department of Health says the virus was detected and a child or teenager living outside in New York City. The virus is primarily spread through skin to

skin contact. Ukrainian officials are denying the Russian allegations that they were behind the car bomb attack that killed the daughter of prominent Vladimir Putin ally Alexander Duggan Verriot. Do Gina's family said she borrowed her father's car, suggesting he was the target. House January six, Committee Vice chair List Cheney has said she thinks former Vice President Mike Fence

should testify before the committee. Just days after her Republican primary loss in Wyoming, Cheney says that her focus now is keeping former President Trump out of the White House. Our party has abandoned principle and abandoned value, and abandoned fundamental fidelity to the Constitution in order to embrace a cult of personality, and I think that's really dangerous for

a whole bunch of reasons. Liszt. Cheney spoke on ABC This Week, which can be heard Sundays on Bloomberg Parental Rights Front and Center in Florida as Republican governor around the Santis campaign in Durrell, supporting school board candidates who back his controversial educational agenda. We are not going to surrender to woke. We are gonna prevail, and Florida is the state where woke goes to die. Meanwhile, tomorrow is Florida's primary. Former GOP Governor Charlie Christ is now running

as a Democrat for his old seat. My party left me. I didn't leave. It started with the Tea Party and it's only metastasized now. I'm very comfortable being a proud Florida Democratic. It's where I should have been a long time ago. I'm glad to be here now and thank God for it all. Chris spoke to ABC Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. I'm Michael Barr,

and this is Bloomberg NACOLN. Thank you, Michael on Wall Street. Time for the Bloomberg Sports seven Day with John Sepshaw. All right, Nathan, much needed win for the Yankees and an amazing win for the Mets, and have the two teams meet tonight in the Bronx star of the two

game Subway series. The Yankees came into Paul O'Neill Day at the Stadium of the worst record in the month of August of any team in the Major's four and fourteen a shirt of losing a sixth series in a row for the first time in twenty seven years, just trying to avoid getting swept Yanks in Blue Jays two to seventh inning, and Andrew Bennett tendee at the plate. Here's the oh one, it's going on. There comes keep riding is hot? Fuck good? He hit his first home

Ronson Nick Putton have cut it up better. Time Benny Bennett and the right deal scene and Yanks one for to two Mets. Meanwhile one in Philadelphia ten to nine. They trailed forward nothing later seven four. Mark Kenna had a game time three run homer in the seventh, Then of the ninth Canada again two run shot to put the Mets ahead. And now the Mets come at the Yankees with their one two punch match sers around the Mount tonight. Jacob to Grom tomorrow, So what it's worth?

Giants or two and all the preseason to meet Cincinnati at MetLife twenty two, a game with three fourth quarter league changes. Davis Webb led the Giants to victory after Daniel Jones started and looked good going sixteen of eighteen. Rookie edge Russia Cavon Thibodeaux left with the knee injury that did not appear to be serious. The Jets hos the Falcons tonight. Patrick Cantley won the BMW Golf in Delaware. Tom Weiskoff has died at seventy nine. He won sixteen

PGA events Between the British Open. He was the runner up at the Masters four times. John stash Award Bloomberg Sports NAPI okay, John, thank you. It's five thirty seven on Wall Street. Time for the Trice State Business Report. Here's Bloomberg's when Diy Gillette, It's dogg eat dog. In the New York City apartment and rental world these days, brokers tell The Guardian they're working insane hours to keep up with the incredible demand. Many apartments rent site unseen.

The average price had a record high last month, five thousand dollars, up twenty nine percent over last year. The vacancy rate in Manhattan is just one nine percent, down a staggering forty six percent from one. Virtual. Public hearing start Thursday on the m t a's proposed congestion pricing program. Six hearings will be held through September nine. The first meeting runs from five to eight p m. Inflation and gas prices are not keeping tourists away from the Jersey

Shore this summer. Many towns and cities tell NJ Spotlight News this season is meeting or beating expectations. And in Atlantic City casinos wins are up sixteen percent this here in eight percent last month, in indication gamblers are spending money. That's the Bloomberg Tri State Business Report. I'm Wendy to Let, Thanks Wall Street. Bloomberg Radio is on the air from

San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories here in our three hundred affiliate radio stations around the world. I Steve Potos got on ten ten Wins in New York. We're talking about what could be a tough day for that bath and beyond shares, as some suppliers called shipments. I'm John Donnager telling k f AV listeners in Ovaha Warren Buffett probably wollted for control of Occidental Petroleum. I'm Jina Serbetti and for w

c c O in Minneapolis. I'm talking about United Health, which is said to have submitted the highest bid among companies buying to acquire Signify Health Frinley Simteo. And on KYW and Philadelphia, I'll be reporting on how much more you'll have to pay for Tesla's autopilot systems. I'm Jeff Bullinger and on w y O D in Miami, I'm reporting some Miami McDonald's will be serving the Chicken Big Mac starting later this month. I'm Wendy to let on

w w J and Detroit. I'm reporting on Ford's intention to appeal of billion dollars civil verdict against the auto company, and those are some of the stories our 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. Editorial was written by the Bloomberg Editorial Board. Liz Trusts, who looks likely to become the UK's new Prime Minister, has stirred

controversy with recent statements on the Bank of England. To gather support in the Conservative Party's leadership contest. She's proposing a departure from business as usual economic strategy and wants to review the central banks mandate. Nobody would claim all's well with Britain's military policy, but calling the bank's independence into question will only dig the economy into a deeper hole. Undermining its credibility is also likely to backfire politically. The

Bank of England is not above criticism. It was too slow to raise interest rates and should learn from its mistakes, but it has also been faced with enormous economic shocks that have made its job exceptionally difficult. Trusts should not make its job even harder by interfering with its independence. This sedatorial 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. You can hear Bloomberg opinion editorials every weekday at this time. Terminal customers can read more at opie I n Go Bloomberg. Eleven three oh weather lots of cloud, scattered showers and storms behind her seventy five today, mid eighties tomorrow with a few scattered showers, thundershowers, sunshine near ninety by Wednesday. We're now seventy three in

Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot com, blo Bloomberg Business at and at Bloomberg Quicktape. This is your Bloomberg Business Flash and I'm Karen Moscow. Stocks in Europe are retreading along with US stock index futures is the Federal reserves commitment to tighter monetary settings and worries about the effect on economic growth. Way on investors sentiment. We checked the markets

every fifteen minutes throughout the trading day. On Bloomberg right now, S ANDP futures are down fifty four points and DOWN futures down three hundred thirty nine and NASDAG futures down two hundred eleven. The decks in Germany's down one point nine percent. The ten year treasury of three thirties seconds yield two point nine six percent yield on a two year three point to seven percent. Nive X screwed oil is down one point one percent on a dollar one

at eighty nine dollars seventy six cents a barrel. Comex school down nine ten percent, or fifteen dollars seventy cents is seventeen forty seven twenty announced. The euro is at one point zero zero seven against the dollar, British found one point one eight oh four, the n one thirty six point eight four, and bitcoin is down what and a half percent at twenty one thousand, one hundred forty dollars.

For watching theme socks this morning, Bed Bath and Beyond is down about ten percent, an AMC entertainment falling down thirty three percent ahead of the debut of its ape shares. And 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. President Joe Biden spoke yesterday with fellow Western leaders looking to revive a nuclear deal with Ron. Biden spoke with his counterparts in Germany, France, and the UK.

Basketball Hall of Famer Dennis Rodman says he intends to visit Russia to try to help w n b A star Britney Griner get back home. Brinder was sentenced to nine years following her conviction on drug charges earlier this month. In baseball, the Yankees beat the Blue Jays four two, The Mets beat the Phillies ten nine, The Orioles beat the Red Sox five three, The Nationals lost, The A's beat the Mariners five three, the Giants one. In NFL

preseason yesterday, the Giants and Ravens one. Global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than hundred journalists analysts more than a hundred twenty countries. Michael Barr, and this is Bloomberg, Nathan. Thanks Michael, It's five forty nine on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Day Breaking.

We're watching oil prices this morning, moving lower, as Karen mentioned, down one point one percent on the prospect of potentially more Iranian crude entering the market if that nuclear deal with the West comes back to life. Joining us now for more Bloomberg News Oil strategist Julian Lee. Julian, as we heard, we did get that conversation over the weekend between President Biden and the leaders of Germany, France and

the UK. But I mean the idea of a new nuclear agreement is still very much up in the air, isn't it? Yes, it is. I mean, there seems to have been some progress. There was what the European Union build as a final um proposal that they put to everybody involved. The Iranians have responded to that. Their response has been constructive, but we know very little more than

that about it. Um. It's being looked at by the US and other parties to this this deal UM and we're waiting for their response, and it seems as though the way they could continue. I mean, I saw a headline that Iran is accusing the US of stalling on its response. So is this a matter of the market sort of getting ahead of where negotiations are right now given that we are seeing this, Uh, there's so much

significant driven oil risers this morning. Yeah, I mean, I'm not sure how much that is due to hopes or or fears, depending on which side of this you're on, of a resumption of the deal, and how much it's due to other things that the market is looking at. Particularly I think a piece of news out of China that they have have gone back from drawing oil stock piles to rebuilding them. There are still very serious concerns about demanding China going forwards, as there are about demanding

in Europe and some other parts of the world. And it may be that, as much as um any sort of perception of progress around the Iranian nuclear deal, that's actually driving prices at the moment. All Right, an interesting point there, But if we do see Iranian oil return to the market, as we say, it is a pretty big if. Is there going to be enough of a backstop for the European market given all the Russian oil that's been taken out? I think it would certainly help.

I mean, I I've wrote a column about this that was published on Sunday, looking back at what Iran did during that that period when this nuclear deal was in operation before President Trump effectively tore it up. They were sending at that time somewhere in the region of six hundred thousand barrels a day of crude to European markets, predominantly the Mediterranean. I think if if Iranian production comes back, we can see or expect to see at least that

amount heading westwards to to Europe. They are going to have to fight harder, I think to secure markets in some of them more traditional um Asian customers. I mean, they would be competing with subsidized Russian crewed in India, um and perhaps in China as well. That may well end up seeing more Iranian oil going westwards. If this deal is revived, would it be able to get back on the market in time for the European winter? I mean, is that something that's even possible for for that amount

of Iranian crew to get back into the market. I think it's certainly possible. UM much will depend on on what kind of delays are built into any agreement. There's been some suggestion that there would be a sort of, um, a sort of proof of good intent period if you like, where Iran is required to do certain things around it's it's nuclear program before the sanctions on on oil exports

are fully lifted. But the estimate is that they have somewhere in the region of a hundred million barrels of oil already pumped out of the ground and in storage. Some of that in in tanks on land, a lot of it in in tankers off the Iranian coast. That could move very very quickly. Um. And if you look back at the last time that that Iran was sort of freed from the shackles of sanctions, their production came

back much much more quickly than people had anticipated. UM. They they'd added close to a million barrels a day within twelve months, UM, and a good half of that within six. Thanks for this, Julian, great having on with us this morning. Bloomberg News oil strategist Julian Lee, Karen Pathan. It is five ft three on Wall Street. It's time for our Bloomberg lag rapport. Let's get to the legal

stories we are watching this morning. From Bloomberg's Jeff Bellinger proposed class action filed in federal court in California accused of Twitter of inducing users to disclose personal information under the pretext of securing their accounts. The suit charges the information was sold to marketers. State Farm will pay one hundred million dollars to settle a suit that accused the company of improperly submitting claims for flood damage to FEMA

following Hurricane Katrina. Federal court records in Louisiana show the Postal Service and a black letter carrier reached a settlement. The letter carrier accused her supervisors of racial harassment. 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, thanks now another legal story we're watching the John you approved the

unprecedented search of former President Donald Trump. Samarra Lago Estate has decided that he will release portions of the sealed FBI off A David used to secure the search. Warrant has given the Justice Department until noon on Thursday to propose what information in the affidavit should be kept secret. For more, Bloomberg jun Grass Space to former federal prosecutor

Jennifer Rogers of Columbia Law School. The Justice Department argued that releasing this information could jeopardize not only the investigation, but FBI agents and witnesses. So what do you think the redactions will look like? And that's why it's so critical what the judge does with the request for redaction, because you know, there's really no point in releasing a document if virtually everything in it is redacted and you

can't learn anything. I mean, that doesn't assist the public and this matter of great importance, as the judge has determined. On the other hand, I think the judge should take seriously the Justice departments concerns about its investigation and the integrity of the investigation, and of course the safety of most primarily witnesses, not just their safety, but that they should not be tampered with, of course. So you know, weighing all of that, the question is how extensive will

the redactions speak. You know, there's some information in the public already about these negotiations between Trump's team and the National Archives and then eventually the SBI. Some of that seems like it could come out and not be redacted. That would be safe. You know, the things I expect to be redacted are whatever source information they received that these documents are still at Moral Lago and exactly where they are. That's the sort of information you would think

would be redacted. And then of course anything else sensitive that they think would jeffordize the ongoing nature of the investigation will likely be redacted to But I expect they can release some of this, particularly about the back and forth with Team Trump and his lawyers and the National Archives and FBI. I think we'll see some of that now. He said he'd allow the government time to appeal his ruling. Is that something you think the Justice Department might actually

do appeal? I think they might appeal if in the end they feel that the judges ruling releases too much information. So we'll we'll have to wait and see what the outcome of that is. But yet, certainly, if they think that their investigation is uppardies or certainly any classified material is jeopardized by what the judge wants to be released,

I think they will appeal. And as former federal prosecutor Jennifer Rogers speaking at the Bloomberg Student Grosso catch more in that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading this show at Bloomberg dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg law dot com and on the Bloomberg terminal at b law Go. And futures this morning are on the decline, moving lower.

Tenure treasury is up three thirty seconds, the yel two point nine five and the yield on the two year three point to seven per cent. And we have our top stories straight ahead as Bloomberg Daybreak continues. And this is Bloomberg