Bloomberg Daybreak: August 25, 2022 - Hour 2 (Radio)

forgive a portion of student loans held by millions. The NYPD has ordered no unnecessary talking among police officers were lowing in the streets lust. The Uvaldi, Texas school police chief has been fired. I'm Michael bar More Ahead, I'm John Stashower and sports a long time giant back at practice the Mets, but get a homestand against Colorado. The

Yankees start a road trip in Oakland. That's all trended 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, Syrius XM one nine team and around the world. Old on Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning. I'm Nathan Hagar and I'm Karen Moscow. US DOT Index futures on the rise this morning. We are coming up to six

oh one on Wall Street. We take the markets every fifteen minutes throughout the trading day on bloomberg S and P futures up about nineteen points this morning, down futures of eighty one and nasday futures of sixty nine. The decks in Germany is little changed. Ten your treasury of five thirty seconds, you know, three point oh eight per cent, and they yield on the two year three point three six percent. Nine max screwed oil that'll change at cents

of barrel, Nathan, Karen. It is the event Wall Street's been waiting for all week. The Federal Reserves Annual Jackson Whole Economic Symposium kicks off today and Bloomberg's Tom Keen is in Jackson Hole covering it for us. Nathan and Karen hugely anticipated Jackson Hole. Some of them have been really pretty quiet. But we look out today and into the chairman speech Friday, and we can say this time

is different. We've got markets on the move, we've got foreign exchange in the move, but far more We've got this huge Transatlantic divide, the difference in the economies of Europe and a beleaguer United Kingdom and a relatively strong United States. All right, Tom, Thanks? Please stick with Tom Keene and the rest of the Bloomberg team for complete

live coverage of the Jackson Hole Symposium. Tom, along with Lisa Abramowitz and Jonathan Farrell, will have a special edition of Bloomberg Surveillance beginning next hour seven am on both Bloomberg Radio and television. Well, Nathan, As Tom mentioned that key event at Jackson Hole takes place tomorrow and Fed Sherman J. Powell delivers a highly anticipated speech. Charles Schwab, chief investment strategist Liz Anne Saunders does not think the

FED will change course and pivot to cutting rates. In my mind, the only condition under which the FED would so quickly move to a rate cutting mode would not just be a retreat and inflation. I think that would damage their credibility if they went to rate cutting simply because inflation has started to come down. That would only, I think, be preceded by a much more significant wortioning in the economy than what we already have here, and or a much more significant wortioning in the labor market.

Charles Schwaba, chief investment strategist Liz and Saunders says she could see the FED pivoting to slower rate hikes rather than rate cuts. As you mentioned, Karen, us futures are higher ahead of Jackson Hole. In Asia, stock shows for the first time in six sessions as investors welcomed an extra hundred forty six billion dollars in pledge stimulus from Chinese authorities. Let's get the recap from Bloomberg's Juliette Sally

in Singapore Morning. Juliette, Good morning, Karen and Nathan. The m s CI Asia Pacific Index jumped the most in two weeks, driven by gains across the region, including in Japan, China, Hong Kong, and South Korea. Trade in Hong Kong was shotted in the morning session due to a storm morning, but equities jumped the most in two weeks in the afternoon session on the back of the China stimulus announcement. The Aussie also Rosa's trade has met. The stimulus would

boost demand for commodities in Singapore. Juliette Sally Bloomberg Daybreak right Juliet, thank you. A couple of stocks here in the US on the move in the pre market, shares of in Video down four percent and early trading. The chip maker gave a disappointing forecast for the current quarter, and we get the details from Bloomberg's Doug Kristner. Just two weeks ago, in Video warned sales for its recent

quarter would come in well below original expectations. A drop in demand for PC gaming chips got to blame, along with challenging market conditions. Well now, guidance for the current quarter suggest the slump is going to last. For Q three, revenue will be about five point nine billion dollars, roughly a billion below the average analyist testament, and Video is contending with a rapid shift from supply shortages to ballooning stockpiles of unsold products. In New York on Doug Christner

Bloomberg Daybreak. All right, Doug. Thanks On the flip side, shares of Snowflake are surging more than seventeen percent. Let's get more on that life from Bloomberg's or Needy Young. Good morning, Granita, Good morning Nathan. The company which helps businesses organized data in the cloud projected quarterly products sales that will top estimates. Snowflake charges customers based on how much they use its data storage and analytics products, rather

than charging a flat rate subscription. Now you may recall, Snowflake rose to prominence in September of twenty with one of the biggest U s I p o s for a software company, but ever since reaching a record share price of almost four two dollars in the November, the stock has tumbled. Live in Washington, I'm really need a young Bloomberg daybreak, all right, Ray to thank you well. Shares of Tesla are up one and a half percent in early trading. We get the reason why from Bloomberg's

Jeff Bellinger. A three for one split of Tesla stock went into effect after the markets closed yesterday. The split adjusted shares begin trading today. Tesla said when it proposed the split that it wanted to be able to offer equity options to every employee, but stock in the electric vehicle maker will also be more affordable for retail investors looking to buy individual shares. Employees who are invested it in the company stand to benefit if you investors pushed

the stock higher. Jeff Budinger Bloomberg Day Break. All right, Jeff, Thanks, let's starting to Washington, where President Biden's made his long awaited announcement on student loan forgiveness. He's canceling ten thousand dollars in college debt for Americans who are in less than a hundred twenty five thousand, twenty thousand if they received a pell grant. And he's also extending the pause on repayments through the end of the year, capping them

at five percent of monthly income. All this means people can start finally crawl out from under that mountain of debt again on top of the rent and the utilities. But the move by President Biden's adding to concerns about inflation. Rick Davis is a contributor for Bloomberg Politics. It just took a year for Biden the past the Inflation Reduction Act, which which reduced the national debt by just under three

hundred billion dollars. He just added five hundred billion dollars including the extension maybe even more uh to replace that. Bloomberg Politics contributor Rick Davis spoke with our Washington correspondent Joe Matthew on Bloomberg Sound on Catch the Program weekdays at five pm Eastern on Bloomberg Radio. Well, Nathan, futures are higher this morning. S and P futures have nineteen points down, futures have eighty four and hasdeck futures up

seventy two. Ten year treasury of four thirty seconds held three eight percent straight. I had your latest local headlines plus a check of sports, and this is Bloomberg King. Thank you. Six oh seven on Wall Street, seventy four degrees in Central Park. Got an accident in the outbound Holland Tunnel. It will tell you that in traffic in just a few minutes. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. The MTA will hold

a meeting today about congestion pricing. The public will get a chance to speak about the controversial plan. Some drivers could see up to twenty three dollars every time they drive into certain parts of Manhattan. The NYPD ordered officers to stop unnecessary chatting while on the job. The New York Post reports the orders came from a department wide memo. Several weeks ago. Mayor Eric Adams was courted criticizing officers were standing around talking while working. Adam said they should

spread out for better coverage. The school district police chief in Yvaldi, Texas was fired last night. The school board voted unanimously to release police Chief pet Eredondo. The motion was introduced by Trustee Laura Perez and received unanimous support. Finally, I moved to authorize the superintendent to issue written notice to Mr. Rodondo of this board action, including filing any

needed reports required by the termination. Trustee Laura Perez and community members slammed Eredondo for what they said was his slow response and all of the children who died as a result of that mass shooting. The widow of the late Kobe Bryant has been awarded sixteen million dollars in a lawsuit against Los Angeles County. Vanessa Bryant had sue the county after pictures taken by a sheriff's deputy and firefighter at the Kobe Bryant helicopter crash site were shared

with a number of people. She called that an invasion of privacy, which led to emotional distrust. The Biden administration has one in Idaho judges order ensuring women abortions in medical emergencies. More from Bloomberg's head Baxter, the Idaho law had to find the right to abortion to a woman whose life was in danger. The judge ruled it too narrow and then ruled that there would be no prosecution of doctors who perform abortions in an emergency. Now, just yesterday,

a Texas judge ruled the other way. The conflicting ruling show the patchwork of abortion laws on the books, but it does give the Biden administration some precedent to continue to pursue cases in San Francisco. I'm at Baxter, Bloomberg day Break, Global News twenty four hours a day on air, end on Bloomberg Quick to empowered by more than journalists and analysts more than twenty countries. Michael bar this is Bloomberg, Nathan, Thank you, Michael six o nine on Wall Street. Time

for the Bloomberg Sports Update. Here's John Stish Alright, Nathan Well earned days off for the Mets and the Yankees back tonight. Metsal left, Jacob M. Graham on the mounta At City Field against Colorado, started a ten game homestand the Dodgers in Washington will follow in the Atlanta Braves one again, fourteen to two in Pittsburgh, and the Braves are only a game and a half behind the Mets. Yankees are tonight in Oakland. That's a team that is

twenty and forty one at home. The Yanks have won three in a row, all by the same score, a four to two. The Giants lost the wide receiver and got one back. Colin Johnson looked good in the two preseason wins. He had eleven catches, but he just tore his achilles in practice, just as Sterling Shepherd, entering his seventh season with the Giants, made his first appearance at practice back from his achilles injury suffered late last season.

Giants and Jets have their annual preseason games Sunday afternoon at Medlife. NFL Hall of Famer Lynn Dawson has died at eighties seven quarterback Kansas City to an upset win a Super Bowl four. The PGA Tour responded the players leaving for the new Live Tour with new policies and initiatives, more bigger events, a commitment from top players to play in them, more prize money at those events. For the commissioners, Jim Monahan, this is a remarkable time for the Tour.

We have and always will be the ultimate platform for player who wants to compete for the trophies and the titles that matter most. To now have our top players rally around this organization and commit to a portfolio of tournaments like never before. Ronahan worked with the likes of Tiger Woods and Rory McIlroy on these new policies. No lack of prize money on the line this weekend season. Any Tour championship teas off today in Atlanta in the

winner wins eighteen million dollars. John stash were Bloomberg Sports, Thanks John SMP futures up eighteen points, Staff futures up eighty NAZAC futures up seventy one p ten. Your treasury is up three thirty seconds. Deal three point zero nine percent yield on the two year three point three seven All this ahead of the kick off the the Jackson Whole Economic Symposium. Talk more about what Chairman Powell might have to say tomorrow morning. Ira Jersey, Chief US Right

Strategy for Bloomberg Intelligence joins us. Next, this is Bloomberg, Bloomberg eleven three o other sunny in your ninety today Maybe a late day shower storm Tomorrow opper eighties, mostly sunny oper eighties for Saturday, mid eighties, partly the mostly sunny by Sunday right now seventy four degrees in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape. He's a Bloomberg Business Flash and I'm

Karen Moscow. US stock index futures are on the rise as China's massive stimulus steady, some nerves in the anxious wait for a key speech by Federal Reserve Chair Jerome Powell. Treasury yields and the dollar gauge are dipping. We checked the markets every fifteen minutes throughout the trading day on Bloomberg SNP futures of nineteen points now futures of eighty three, NAS day futures of seventy four. The decks in Germany's up a tenth of uppercent ten year treasury of four

thirty seconds he three eight percent. They yield on the two year three point three six per cent. Nimex crude oil is up a tenth of upper cent or ten cents at ninety four dollars ninety nine cents of barrel COLLBX schooled up eight ten percent or fourteen dollars seventy cents is seventeen seventy six ten announced the euro is at poe against the dollar. British found one to eight and the end one thirty six point five four And look at a big coin. It's little change at six

ninety 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. Reaction to President Biden's announcement of ten thousand dollars in student loan forgiveness, some expected more debt cancelation. Others called it another handout, adding to the country's deficit woes. Senator Mitch McConnell called it a slap in the face to every family who sacrificed,

say for college, every graduate who paid their debt. Russian missile strike in Ukraine killed at least twenty two people on the day that the nation was celebrating thirty one years of independence from the Old Sylvia Union. In baseball, the Red Sox and Orioles lost the Nationals one the A's beat the Marlins in ten innings three to the

Giants Lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analyist more than a hundred twenty countries. Michael Laren, this is Bloomberg Nathan Alright, Michael, thank you to six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak as we get set for the kickoff of the Jackson Whole Economic Symposium and mere hours now. We're joined by Ira Jersey, chief

US rates strategist at Bloomberg Intelligence. Ira, good morning. We've seen a lot of movement in the rates market in the lead up to this con fab. What do you see treasury traders pricing in ahead of Pal's comments tomorrow? Yeah, so still pricing in additional interest rate hikes and and one hike at least in three which is a bit different than what we saw after the last Federal Reserve meeting when J. Powell's UM, I guess his his press

conference was taken a somewhat dovish um. So it'll be interesting to see what he says in terms of, you know, how what their propensity to really fight inflation is, how worried they are about some areas of the economy starting at the slow and UM, and just how serious they are in terms of um UH, in terms of getting inflation and inflation expectations back down because um, you know, one of the risks that they have at this point is that UM inflation and wages continue to grow pretty

significantly and you get a wage price spiral similar to what you had in the nineteen seventies. Are you expecting any clarity from the Chairman tomorrow? Well, I am, and I suspect that he will end up saying that, UM, that the FED is very serious about fighting inflation, that we're going to keep on hiking into three because I think with the market kind of missed in UH in their their pricing of expectations for the FED over the

next couple of years. UM since the last FED meeting is that when when j said they're going to slow the pace of purchases, yes, they're going to not be hiking at seventy five basis points every meeting. We you know, we had never expected them to continue to do that. But what the market. I think is getting is missing

is that they may go much further for longer. So in other words, they might only hike at base when increments come this fall, but they might go into the middle of next year and and and hike interest rates well above four percent, which is not being priced in the market right now. And I think that j. Powell is going to hint that that's the path that the Fed ultimately is going to take. You put out a note on Bloomberg Intelligence this week that the treasury curve

inversion could resume after the Jackson Whole address. It sounds like it's kind of what you're alluding to in terms of the chairman getting more clarity. But you know, I'm I'm just a simple guy. We've been in treasury curve and version for quite some time, haven't we. Well, it's it's been a couple of months, which isn't that long in the grand scheme of things. And I think the

magnitude of inversion matters at some level. Two and and will highlight um that how aggressive ultimately the Federal Reserve is going to be, so shorter term interest rates like two year notes, for example, might wind up moving up toward towards three point eight three point nine percent, so another you know, thirty forty basis points higher in terms

of yield. And I think longer term yields like the tenure yield might only move back up towards the call it three and a quarter percent um and UM, and on the expectation that at some point in the Federal Reserve is gonna cut interest rates quite a lot and wind up going back towards two and a half percent or so in terms of the Fed Fund rate after getting up to four and a half. So so the the curve is going to have to um. You know, I think price pretty aggressively a you know, a much

deeper inversion of the curve. And and that's that that wouldn't be a big surprise that that would be unusual for the last twenty years. But it's not that unusual in the whole history of the of the market, especially when inflation dynamics are much different than they have been um over the recent paths. You go back to the nineteen eighties and in the early nineties, and in versions of of fifty sixty basis points are not that unusual.

So our last minute here, Ira, you don't see a whole lot of wiggle room then for the Fed, given the weakness in some of the economic data we've seen of light. Well, so what's what's interesting is we've seen some sector some weakness. You know, housing market is is certainly a big one. But when you when when you look at the wage data and you think about how wage price vils tend to develop, um, there still is a significant amount of inflation at the core level that

seems to be accelerating. So you still have faster inflation at the core level. That means that, uh, it can be inflation in general can be much stickier, you know, not at eight percent, but you can wind up being stickier at three and a half or four percent, which is still way above where the Federal Reserve wants inflation to be, which is one of the reasons I think ultimately they'll have to hike a little bit further than

what the markets currently priced. Interesting to see whether we're going to get that kind of clarity from Sherman Powell tomorrow right around ten am Wall Street time when he makes that speech. Ira Jersey, chief US interest rate strategist at Bloomberg Intelligence, thanks for being with us this morning. As we get ready for the kickoff of the Jackson Whole Economic Symposium this morning. We're gonna have full coverage beginning with Bloomberg surveillance in Jackson Hole. That starts just

about a half hour from now. Is seven am. Wall Street time. Right here on Bloomberg Radio and on Bloomberg Television, SMP Future is up twenty one point, staff futures up nine danced futures up eighty five points ten. Your treasury yield right now three points zero eight per cent. This is Bloomberg Bloomberg eleven three oh weather sunny, going to near ninety today. We'll have a late day shower, thunderstorm tomorrow. Otherwise sunshine opper eighties, mostly Sunday, oper eighties, Saturday a

mid eighties, and sunshine on Sunday. Right now seventy two degrees. Broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Loving Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg Home sixty to the country. Sirius xm H had a one nineteen and around the globe. The Bloomberg business app in Bloomberg Radio dot com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm

Karen Moscow. He are just about three hours away from the open of US trading. It's time for the five things that you need to notice start your a brought to you by Interactive Brokers. Interactive Brokers Global Analysts helps you find new global investment opportunities to diversify your portfolio and discover undervalued companies they may have greater growth potential. Try ibk our Global Analysts today at ibk R dot

com slash g a up. First, the event Wall Street's been waiting for, The Federal Reserves Annual Jackson Hole Economic Symposium kicks off today. Bloomberg's Lisa Abramowitz is covering it for us in Jackson Hole. Join us at a monumental Jackson Hole Symposium hosted by the Kansas City Federal Reserve. This is going to be one of the most consequential meetings of Fed officials as they digest some of the changes facing the economy, facing inflation, facing monetary policy as

we know it. Some of the big questions J Powe will be addressing include where is the terminal rate? Where should rates end up in an economy beset by inflation? And what should we expect an employment market that still is strong it is showing signs of weakening and Lisa A Brama, It's Bloomberg day Break Current. Lisa, thanks, so please stick with Bloomberg for complete live coverage of the

Jackson Holes and Polsium. Lisa, along with Tom Keen and Dunathan Pharaoh, will have a special edition of Bloomberg Surveillance beginning at seven am on bloo both Bloomberg Radio on television. Of course, the key event, Karen has Fed shared j Pali's highly anticipated speech tomorrow morning. Morgan Stanley Chief investment Officer Mike Wilson tells Bloomberg he's not too concerned if

Pal signals a rate hike pivot. The big change this time versus a prior periods when markets got excited about a FED pivot is this time they're not going to So most investors, I think are realistic about the FED and inflation, but they're not realistic about is they're not accounting for the negative operating leverage that we're about to experience.

Morgan Stanley c I O Mike Wilson says he is bearish on equity markets because of quantitative Tighteningmall Street shares of in Video down three points six percent after the shipmaker released a week quarterly forecast. Bloomberg Jondy Young joins US Live with the details. Good morning Randa, Good morning Karen. In Video recently warned seals would come in well below expectations, and yesterday it gave a disappointing forecast for the current period,

adding to signs of weakness in the semiconductor industry. Fiscal third quarter revenue will be about five point nine billion, compared with average analysts estimates of six point nine two billion. The video claims declining blames declining demand for chips used in gaming computers. Live in Washington, I'm gonna need a young Bloomberg daybreak ivery need to thank you. That's the five things so you need to notice start your day. Brought to you by Interactive Brokers, straight ahead, your latest

local headlines, and this is Bloomberg. Thanks. Karen sixty three on Wall Street, seventy three degrees in Central Park. Got a crash in Farmingdale westbound Hempstead Turnpike a room one O nine. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. The NYPD ordered officers to stop unnecessary conversation while on the job. The New York Post reports the ortists came from a

department wide memo. Several weeks ago. Mayor Eric Adams was recorded criticizing officers for standing around talking while working. Adams said they should spread out for better coverage. Last night, Mayor Adams also held a community conversation about public safety. This city was a mess. Don't catch yourselves. It wasn't you. It was a city of just complete dysfunctionality. You couldn't even get a inspection done in time, and the Department

of buildinges you. You thought that every time someone walked aside a small business from an agency, they came with a fine book instead of saying, how do I keep your doors open? Mayor Adams held a meeting on Staten Island. You've all these school District Police Chief Pete Aredondo has been fired by the school board after the Many twenty four mass shooting at the town's rob elementary school. The sent a Salazar granddaughter, Leila, died that day determination coming.

I think I should have been done in immediately, but it wasn't. Took us three months to get this done. Presidente Salazar was one of many community members who spoke before the vote to fire at Redondo. The MTA will hold a meeting today about congestion pricing. The public will get a chance to speak about the controversial plan. Some drivers could see up to twenty three dollars every time

they drive into certain parts of Manhattan. More bus loads of migrants are expected to arrive today in New York City from Texas. Earlier, migrants were seen wearing would appear to be tracking bracelets from Texas. President Joe Biden is moving to a raise ten thousand dollars in federal student loan debt for those when then it comes below a hundred twenty five thousand dollars a year or households that

are in less than two hundred fifty thousand dollars. Republicans say the president is trying to bribe voters ahead of the mid terms and will only make inflation worse, but Biden said the cost of going to college has settled a generation of Americans with high debt. The burden is so heavy that if you graduate, you may not have access to mid class life at the college degree once provided. Many people. Many people can't qualify for mortgage to buy a home because of the debt they continue to carry.

President Biden is also canceling an additional ten thousand dollars for those who receive federal pell grants. 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 bar This is Bloomberg, Nathan, Thank you, Michael. Just about six thirty six on Wall Street,

John stash Our has the Bloomberg Sports Update. All right, Nathan will welcome sight that Giants practice veteran white out Sterling Shepherd back on the field, back from the achilles injury stuff for late last season. But it comes on the same day that another wide out, Colin Johnson, heard his achilles, so his season is over before it begins. And Johnson had looked good in the two Giants preseason

who wins. Giants looked at cap A three and oh preseason when they faced the Jets Sunday afternoon and met Life Hall of Famer Len Dawson has died at eighties seven. Grew up in Ohio, one of eleven kids. Six straight seasons the nineteen sixties, he had the AFL's highest completion percentage, lead the Chiefs to two Super Bowls, the lost to Green Bay in the first one and then the upset win in Super Bowl four. Yankees are in Oakland to

night first and four with the A's. It's a ten game road trip that'll see them also face the Angels and raised Iron. Brune's team seemingly snapped out of it slumped with three straight wins in a tough stretch. We're grinding. I think, I think these wins can go a long way and and kind of helping you build a little bit of confidence and and get that swagger back a little bit. Hopefully he's gonna return home until September five.

The Mets off a four and six road trip and souther NL East lead over Atlanta shrinked or a game and a half. Now home pretend straight againning tonight against Colorado. With Jacob Degram on the Mountain, Mets to try to avoid what would be only their third three game losing speak of the season. MLB at withe schedule, fewer division games, more inter league games. Yankees actually will start the season against the San Francisco Giants. Season any Torch Championship golf

teas off today in Atlanta. Top twenty nine players buying for prize money, but we'll see the winner collect eighteen million dollars. This is the PGA is increasing prize money next year in an Africa, key players from leaving for the lib cool John Stashya where Bloomberg Sports? All right, John, thank you, six thirty seven on Wall Street. Time to take a look at stock, some of the names moving in the pre market. A busy morning for Bloomberg Radio

TV Markets correspondent Create gooped. Given all the earnings news we've gotten this morning, createy and some new concerns or maybe adding to the concerns about a slump in the chip sector this morning. You know, Nathan, it feels kind of silly to talk our earnings as we all really gear it for Jackson Hole. Nevertheless, it is a big story, especially for one of the major heavyweights in the S

and P five hundred. Of course, I am talking about in video n v d A is your ticker dat about three and a half percent in pre market trading. We should also know that this is in an environment where the market is actually higher going in to today's session. So in video coming out and they say not only that they weren't worn earlier this month, that its sales would slip. On top of that, they gave up pretty

diasappointing forecast. And of course this comes, as you pointed out justly, that this is coming with a broader kind of background of chips demands slumping broadly. And the reason this is so important on a economic perspective is simply that chips and similar to the way that oil demand for example, in a way it kind of serves the proxy for the broader economy and where they expect the consumer spending picture, not just here in the United States,

but globally is going to go. And really that becomes the concerning part of Nvidia's numbers. They said their fiscal third quarter revenue will be about five point nine billion dollars. The average analyst estimate was much much higher, to shy about seven billion. So once again you do see a major myths there. The gross margin in the meantime, the percentage of sales that basically comes after you pull out

the cost of production. It's only sixty five percent. That is not a margin that you want in this chip sector. So once again, not great numbers coming out of Nvidia, and on top of that, likely to weigh on the market session today. But it's also in line, I would say, with what you're seeing in some of the other tech names. Salesforce, for example, also missing their revenue projection. CRM is your taker down six point four percent in the pre market.

But to kind of turn things around on the tech space, Nathan, you also have likes of Snowflake snow the software company surging up about seventeen and a half, or Saints and well they actually see a strong sales forecast and new customers on top of that. Now, I know in our last few seconds here, Crety, you're gonna be watching Tesla pretty closely after the stock split. You know, the stock split was announced a while back, so we knew that this was kind of coming, but this looks like the

effect is finally taking shape. T s l A is your taker up one point seven percent. This of course follows at three for one stock split. The idea here being the Tesla shares are now actually affordable. They're training at about three three oh two right now, once again making it far more easier for the retail based access. All right, Boom Brigradi on TV. Markets correspondent Pretty Gupta

with us this morning. As as you mentioned, yeah, we're all getting ready for the Jackson Whole symposium to kick off. But a lot of individual names to keep an eye on this morning. Looking ahead to the market, open futures are higher, SMP futures up twenty one points, down futures up nine two. NAZAC futures leading the games this morning up eighty seven points. The tenure treasury is up four thirty seconds. Heal now three point zero eight percent on

the benchmark ten year treasury note. This is Bloomberg Bloomberg eleven three O. Weather sunny, near nineties today, could see a late day shower storm tomorrow. Otherwise sunshine and hides in the oper eight is mostly sunny oper eighties Saturday, mid eighties sunshine Sunday right now seventy two degrees. Markets headlines and breaking news twenty four hours a day at Bloomberg dot com. The Bloomberg Business at Hand at Bloomberg Quicktake.

This is a Bloomberg business flash and I'm Cameron Moscow futures are on the rise this morning. We go to the First Word Breaking news desk for today's morning call. Here's Fill Maloney Bill, Good morning, Hey, good morning, Karen. That's right. US futures trading in the green right now. Debt futures up a hundred and six point SIPs game twenty four, wild nastic futures rise by nine seven, the US ten year old at three point o nine percent, Bold is up eleven, Oil is little changed, and bitcoin

is also trading little change. Hong Kong jump three point six percent overnight as trying to add it a hundred supporting six billion of more stimulus, and Europa markets are quiet right now. Back in the US on the economic front of the thirty initial jobs claims in g d P and after the bells night in video gave eight disappointing forecast salesforce revenue projections missed estimates, but Snowflake gave a strong sales forecast regarding airings this morning, Dollar general

EPs beat s and that's end wrapping things up. Lazy Boy was got to market perform over at Raymond James Live from the first Breaking News descom Bill Maloney, Karen, all right, Bil, thank you to hear live breaking news on your Bloomberg. Time to squawk on your terminal. That's s qu a w K and that's a Bloomberg business flash. Here's Michael Barr with more on what's going on around the world. My thought, Karen, thank you very much. Valdi.

Texas School District police chief Peter Rodondo has been fired following allegations that he made several critical mistakes during a mass shooting that left nineteen students and two teachers dead. A flash flood warning is in effect for much of Mississippi after torrential rains cost evacuations, washed out roads, and lent water rescues. Air regulators in California are expected to announce today that there will be a state wide ban on the sale of new gasoline vehicles by five. In baseball,

the Red Sox and Orioles lost the Nationals one. The A's beat the Marlins in ten innings three two. The Giants lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists, analyists more than a hundred twenty countries. Michael Barr and this is Bloomberg, Karen, Sorry, Michael Barr, thank you at A sixty nine on Wall Street, and we turned to news and science and technology Now at the Bloomberg. N j I T STEM report at BRONTI

U buy New Jersey Institute of Technology. N j i T makes industry ready engineers and more than twenty fields. If it's engineering, it's at n j I T. Learn more at nj I T dot E d U. And here's just making news and science, technology, engineering and math. Years late and billions over budget. Announces new Moon rocket makes its debut next week in a high stakes test

flight before astronauts get on top. The three two foot rocket will attempt to send an empty crew capsule into a far flung the lunar orbit, fifty years after NASA's

famed Apollo moon shots. If all goes well, astronauts good strap in as soon as four for a lap around the Moon, but NASA aiming to land two people on the lunar surface by the end of Liftoff is set for Monday morning from NASA's Kennedy Space Center, the price tag for this single mission more than four billion dollars more, size of weakness in the semiconductor industry and video giving a disappointing forecast for the are in period and that comes two weeks after the company we're in that sales

for the latest quarter would come in well below original expectations. And in the UK, two research groups said the government will have to draw a previously unthinkable measures on the energy crisis. The Resolution Foundation and the British Chambers of Congress are calling for COVID style emergency support to deal with soaring costs. Natural gas prices are now ten times higher than the last decades average. And as a Bloomberg and J. A. T. Stem report, Nathan, thank you, Karen.

We are live from the Bloomberg Interactive Broker Studios where it's almost sixty one on Wall Street time now to check what's going on in d C. Some of the top stories in our nation's capital include President Biden's student loan relief adding a new wrinkle to the inflation debate, the Biden administration winning an emergency abortion access ruling in Idaho, the Twitter whistleblower to be a star witness in Congress, and Homeland Security scrapping a this information board that Republicans

had blasted joining us Bloomberg Government Congressional reporter Jack Fitzpatrick, Jack and Morning. Of course, the big story of the moment is President Biden's long awaited announcement on student loan relief. I just saw a headline cross the Bloomberg terminal that student loan sites have crashed after the announcement. So certainly the beneficiaries potentially you're taking notice of this. But what's the reaction in Washington on Capitol Hill. It's fairly positive

among Democrats. Obviously, Republicans are opposed to this was something they were never on board with. There was a question as to how Biden would thread the needle between the progressives calling for much more than this. A Progressive members were calling for up to fifty thousand dollars forgiveness. And then there are some other Democrats who actually don't like this. Michael Bennett, the Senator from Colorado who's got a potentially tough re election campaign, UH said this should have been

targeted further. You see that hundred twenty five thousand dollar income limit potentially could have been lower. The White House has said the vast majority of this, about ninety of the benefits would go to people making no more than seventy five thousand dollars. But it has provoked that debate on how much, uh that top line amount of debt forgiveness they should have gone with, and how who that should apply to, and how they target that to people

who are are not just the top earners. Overall, not a ton of pushback from Democrats though, and it it was a key campaign promise from Biden that could be popular. You know, you look at someone like Senator Raphael Warnock, who's got a tough reelection campaign in Georgia and campaigned on this. So a number of Democrats are at least happy about it, and it is a sort of raising

questions as well about the debate on inflation. We had just heard from Bloomberg Politics contributor Rick Davis on sound on last night saying that, you know, the Inflation Reduction ACTUH cut three hundred billion dollars from the deficit. This

could potentially add even more than that to the deficit. Yes, uh, four hundred to six hundred billion dollars is the range put out initially by the Committee for a Responsible Federal budget, which fiscally conservative advocacy group that tends to be good on those kinds of uh numbers. Uh. It maybe even more inflationary in its effects than the disinflationary effects of the so called Inflation Reduction Act. You know, reducing the

deficit is one thing that has a disinflationary impact. But this, this is a policy that would seemingly go toward affecting consumption. It's something that gives people money, uh fairly directly, so it may be more inflationary than you know, an increase in the corporate minimum tax rate would be disinflationary. And overall, if you were to pair these two actions together, it is something that over the next ten years would slightly

increase the deficit. Both of those fairly minimal effects on inflation. The numbers that have come out from economists on this say it could drive inflation up by about point one to point three percentage points. But yeah, this is a policy that would be more inflationary rather than disinflationary, and that does cut against what the President has tried to emphasize in terms of him taking action to reduce inflation. Well, outside Washington, Jack, the Biden administration's gotten a legal win

in its ongoing effort to secure abortion access. Yes, in Idaho UH a judge sided with the Biden administration, arguing that the Idaho Idaho has a pretty strict abortion ban that went into place after the Dob's ruling that makes an exception for cases in which the life of the woman could be endangered, but there are federal requirements for UH medicare providers in any case to give sufficient emergency aid UH And in this ruling, the judge said that

waiting until it appears to threaten the life of the woman rather than just addressing potentially severe health effects is too strict. Now that there was actually a similar issue

in Texas where a judge held the opposite ruling. But this is one good news for the Biden administration as they try to push back on restrictions to access abortion UH and it kind of a way to highlight that the Biden administration and their lawyers are looking for any laws that might even be seemingly unrelated to abortion access that could have effects to chip away at some of these state laws. You know, last minute or so here, Jack,

let's talk about the Twitter whistle blower. Obviously, it's getting a lot of attention when it comes to Elon Musk's been to walk out of the Twitter buy out, but now his complaints have sparked a congressional hearing. Yes, so the Senate Judic Sherry Committee is going to hold a hearing, and uh we will include testimony from the Twitter whistleblower. It's gonna be September thirte Uh. There is bipartisan interest

in this. Dick Durban and Chuck grass Lee, to the two top members Democrat and Republican on that Senate committee, have both said that the allegations of security failures on potential foreign state interference at Twitter or are serious concerns for them. Uh. So that it's one potentially an explosive UH Senate Committee hearing and also an issue that clearly has bipartisan concern. And then one more thing to watch coming out of the August recess, which has been anything

but slow for Bloomberg Government Congressional reporter Jack Fitzpatrick. Jack, thanks for being with us this morning. Read more about all these stories on Bloomberg dot com or on the Bloomberg terminal, and of course you can follow all the latest on Bloomberg Radio in Washington Bloomberg one and Oh five point seven fm h D two. The focus turns now to Jackson Hole and the kickoff of the economic symposium. There.

Tom Keene, Jonathan Farrell, and Lisa Abramowitz are getting set for a full coverage on a special edition of Bloomberg Surveillance that begins in just minutes here on Bloomberg Radio. Ahead of that, futures are moving higher. We have SMP futures up twenty three point, Staff futures up one three. Nasdaq futures are higher by ninety eight points. The tenure Treasury is up three thirty seconds. The yield now three point zero nine percent, and the yield on the two

year three point three seven percent. For Karen Moscow, I'm Nathan Hagar. You have been listening to Bloomberg Daybreak. Good morning,