Bloomberg Daybreak: August 26, 2022 - Hour 1 (Radio)

t a's congestion pricing plan in Manhattan. Hundreds of people on both sides signed up to speak on the matter. According to the m t A, the plan could cost drivers in Manhattan south of sixty Street as much as twenty three dollars during rush hour. The agency says it was designed to lessen traffic congestion by as much as Last evening's public hearing was the first of six. We may soon learn more about what made the Justice Department

search former President Donald Trump's Mara Lago home. The d o J is submitting a redacted version today of the affidavit out of concerns for the safety of the witnesses. Legal expert Lorie Levinson, it does look like the court felt that this was something of such great public interests that to the extent that the court could release information that did not compromise an ongoing investigation, it was inclined

to do so. And of course there's great public attention on what happened here, why the Department of Justice went so far to get a warrant to search the ex president's Marlago residents. Loyola Law School professor Laurie Levinson says the judge ordered it to be released to the public by noon. California's Air Quality Regulation Board voted yesterday to halt the sale of gas powered cars by five The board says it would dramatically lower emissions and air pollutants.

Governor Gavin Newsom this is the architecture for completely decarbonizing our economy. Change away to producing zoom energy, and it's the architecture for economic power, not just electric power. Governor Newsom says one tenth of all cars sold in the US arts Californians. However, not everyone is on board with the change. Tom Becker says he downs electric vehicles will be reliable enough. Even by that time. Battery failures and electric vehicles are very common, and guess what these people

are not going to honor their battery warranties. They don't honor him. Now you can have a battery failure in these electric vehicles that will cost dollars. Tom Becker was among those who spoke at the hearing Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists an analists, more than a hundred twenty countries. Michael Barr and this

is Bloomberg. Nathan, all right, Michael, thank you. Coming up to five ten on Wall Street time for the Bloomberg Sports Update. Good morning, John Stenshower, Good morning, Nathan. Good started to the Yankees ten game road trip there in Oakland. That the team that's twenty and forty two at home, and the Yanks teet off on the age twenty hits.

They were up ten nothing in the fourth in in the final thirteen to four, three hits for the red hot Andrew ben and ten d three for Josh Donaldson, three hits, three rbies for rookie Oswaldo Cabrera, plenty of run support for Jamison Town to get his team leading twelve. When Garrett Cole starts tonight, Esther Cortez was to start tomorrow, but he was placed on the injured list with a strained groin, not believed to be a serious injury. Done. Carlo Stanton came off the i L. He was back

in the Yankee line up last night. As for the Mets, Jacob Gram a lot of times with his career, has gotten no run support. He doesn't need a lot. He got all he needed with one swing of the bat. Basketball hit high in the air, deep to left field. Forget about it that way at it here fu the facing of the second deck. Need Alonso demolishes a two run homer in the Mets ll lead three nothing in the bottom of the third CBS thirty first on run for Alonso. He's got a hundred and four RBIs that

Mets beat the Rockies three. The one is the grom one six sittings gave up to three hits struck at nine. Mets now with a two game lead on Atlanta the US Open against Monday. It's all about Serena Williams and she learned her first round opponent in this her career ending tournament, will be Donka Convintage from Montenegro, rank edioth in the world. Meanwhile, the unvaccinated. Novak Djokovic made it official. He's not playing, not allowed to fly into the US

towards Yapagehip Golf in Atlanta. Sixty five for world number one Scottie Scheffler. He's got a five shot lead. John Stash, Edward Bloomberg Sports, Nathan, thank you, John SMP futures down down thirteen point, Staff features down sixty seven, Nastack futures down fifty nine points. The tenure treasuries down fourteen thirty seconds, the old three point zero seven percent. Ahead of Chairman Powell's keynote at the Jackson Hole Economic Symposium, what will

he say? We check in next with Sarah House of Wells Fargo. This is Bloomberg Bloomberg eleven three oh weather partly Sunday today, maybe some showers and storms this afternoon with a Higheer ninety degrees. Oper eight is a mix of sun clouds tomorrow Oper eighties sunshine for Sunday right now seventy six in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quick Tape. This is

a Bloomberg Business lash and I'm Karen Moscow. You watch Dock Index futures are slipping this morning. The dollar is climbing as a chorus of Federal Reserve hawks prepare the ground for a much anticipated speech by Chair Jerome Powell that's set to shape views on the pace of monetary tightening. We checked the markets every fifteen minutes throughout the trading day on bloomberg S and p futures are done about fourteen points this morning. Down futures down sixty eight and

NAS deck futures down sixty. The decks in Germany's down a tenth of upper sent ten. Your treasury down twelve thirty seconds. You'll three point oh seven percent. They yield on the two year three point three eight percent. Nin Max Screwed oil is up six tents percent or fifty eight cents at ninety three dollars ten cents of barrel comex School done about half percent or eight dollars at seventeen sixty three forty announced. The euro is at point

against the dollar. British found one point one eight one nine and again one thirty six point eight six and Bitcoin this morning it's down one per cent at thirty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, good Morning, Good Morning, Karen. A federal judge says the Justice Department has until noon to release an affidavit used to justify

the FBI search of former President Trump's Florida home. The judge says he's accepted the Justice Department's redactions and reasons for blacking out information about witnesses, agents, and uncharged parties in the document. A major nuclear power plant in Ukraine was temporarily cut off from the electricity grid. The Zaporiza nuclear plant, occupied by the Russians went offline, causing a blackout in the region and has caused more fears of

a nuclear disaster. In baseball, the Yankees beat the A's thirteen four, The Mets beat the Rockies three one. The Red Sox lost the Orioles one. Thursday Night NFL preseason action. The fort Is lost with the Texans seventeen. ZIP Global News twenty four hours a day on airrand on Bloomberg Quick Take power by more than seven hundred journalists analysts more than a hundred twenty countries, Michael bar This is

Bloomberg Nathan Michael, thank you. We are live from the Bloomberg Interactive Broker Studios where it is five nineteen on Wall Street, which puts us four hours in forty one minutes away from Chairman Jerome Powell's speech at the annual Jackson Hole Economic Symposium. Let's get you set four it this morning. Wells Fargo Senior economist Sarah House joins us ahead of the keynote address. Sarah, what do you think

Sherman Powell will say? What do you think he should say? Well, I think what we see is overall that reeration of the sell bringing baking back downs. I think we're gonna try to establish your line here, Sarah, there is a lot of static. Maybe joining us from Jackson Hole will try to clear that up with her this morning as we uh take a look at the markets ahead of the speech. Futures appointing to a little bit of losses here with SMP futures down thirteen points, Nasdaq futures leading

the declines. We've had seen a lot of volatility, of course, all week long ahead of Chairman Powell's addressed. NASTAC futures right now are down about a half percent or sixty three points. Lots of movement in the bond space as well. We've got the tenure treasury right now down thirteen thirty seconds for yield of three point zero seven percent, kneeled

on the two year three point three eight percent. A lot of Treasury watchers are looking for even more volatility coming off of Chairman Powell's speech later on this morning, and as we look ahead to more economic data ahead of the f O m c uh next meeting at the end of next month. Sair House is back with us this morning. Hope your line sounding a little bit better this morning, to make sure, Sarah that we get clarity on whether you think Chairman Powell is going to

deliver clarity later this morning. I think he's going to keep his options open and suggest that the Fed does remain nimble and we'll be reacting to the data. So I don't think we're going to get any strong hints about fifty or seventy five at the upcoming September meeting. The Committee agrees that rates need to go higher, but I think they're they're trying to acknowledge the fact that

we are beginning to see growth cool. There are some at least tentative signs of inflation beginning to ease, but there's still so much uncertainty about the path ahead, and so I think they're going to suggest that they will will do what is necessary to bring down inflation. Is that what you've been hearing from, Sorry, Sarah, is that what you've been hearing from some of the other FED speakers that we've gotten to hear from ahead of Chairman

Powell's speech this morning. A lot of hawkish talk ahead of this much watched address later today, a lot of pokished hawk when it relates to bringing down inflation. So you did have Bullard out yesterday reiterating that he's in favor of front loading, thinks we need to get rates up to a range of three seventy five or by

by the end of this year. So I think so, I think we're seeing that from from some of the said speakers, but those tended lean a little bit more hawkish than than Pow has I think, in some ways

is a little bit more hesitant. We saw that in the press conference coming out of the July meeting, where he was flagging the fact that we haven't seen the full effects of tightening to date, and so I think there there could be perhaps a little bit more of a of a balanced tone or some some hints of hesitation with within his speech, relatives to what we've seen

from some of the more hawkish members speaking before. Before today, obviously there's been a lot of attention on core PC as a data point for Powell and company to look at when it comes to whether they're winning the inflation fight. What other data points do you think the central banks should be looking at? So I think right now are really important. One is what we're seeing in terms of wages and labor costs. So we had another really strong

e c I last quarter. Average early wages also re accelerating, So we'll get another look at that next Friday with with the jobs report, and I think that's really important. Where we're certainly seeing some easy pressures in inflation coming from supply chain shipping costs going down, supplier delivery time easy, but we haven't seen that from the labor market, and so we're seeing labor costs still running out a pace

well above two inflation consistent levels. And this is the area of inflation that is well within the Fed's remit so I think there's there's still a lot of concern out there over how quickly inflation might cool and how easily it might get back to two percent. It's not going to be an easy path ahead, even with the titan that we've seen today. Again, Sarah, thanks for being with us this morning. Glad we got you back on with a clearer line there. That's Sarah house Wells Farges

senior economists. As we get set four Chairman Powell's address later on this morning ten am Wall Street time. Of course, we'll be hearing from a lot of head speakers ahead of that as well. So you want to stay with Bloomberg Radio for our complete coverage of the Jackson Hole Economic Symposium. It continues this morning on a special edition of Bloomberg Surveillance Live from Jackson Hole with Tom Keene, Jonathan Farrell, and Lisa Brahmoy. It's up begins at seven

am Wall Street time. Ahead of the remarks from Chairman Powell, will bring to you live at ten s ANDP Futures down fourteen points now down, Futures down seventy one. Nasdaq Future is lower by sixty two points. You are listening to Bloomberg Daybreak Bloomberg eleven three oh Weather partly sunny, some showers and storms developing this afternoon with highs in the upper eighties, mix of sun and clouds. Tomorrow upper eighties will be in the upper eighties with sunshine on Sunday.

Right now seventies six in Central Park. My from the Bloomberg into Ramptor Berger Studios. This is Bloomberg day Break for Friday, August twenty six two. Coming up this hour. FED officials take a hawkish stance ahead of j Powell's Jackson Whole speech. A judge orders Twitter to hand more data to Elon Musk. Guess their legal battle continues. Dell and salesforce slide as more tech companies report tighter times ahead. The first MTA hearing on congestion pricing in Manhattan is

in the books. Plus we should see soon and redacted AFFI David Search Trump's mora lago with State. I'm Michael Barr. More ahead, I'm stash in sports. Twenty hits for the Yankees and easy win at Oakland. Jake Graham pitched the

Mets to victory over Colorado. That's all stread ahead on Bloomberg day Break on Bloomberg eleven Tree, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Syrius x M one nineteen and around the world on blue Berg Radio dot com and via the Bloomberg Business Actor. And Good Friday morning. I'm Nathan Hager and I'm Karen Moscow US not index

futures are lower this morning. We are coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg SMP futures are down thirteen points down, futures down sixty nine, and NASDACK futures down fifty nine. The decks in Germany is that will change the ten year treasury down twelve thirty seconds. He'll three point oh seven percent and the

yield on the two year three point three seven percent. Nathan, Karen, it is the event Wall Street and global markets have been waiting for all week long. Federal Reserve Chairman Jerome Powell delivers the speech at the Jackson Hole Economic Symposium at ten am Wall Street time today. Bloomberg's Tom Keene is covering the event for us. Good morning, Tom, Karen and Nathan. Of course, all eyes on Chairman Paul. This will be a different speech, widely anticipated they all are.

But what's different this time is the stakes on interest rate policy. What's widely understood is it's not just the speech, it's a few and key reports that we're gonna see into September and that important FED meaning. So it's not just the speech, it's the data reports, but it's also the news around the world, the idea of what's going

on in Europe and China flat on their back. All around the world will be watching Chairman Paul this morning certainly will be Thank you for that, Tom, and please follow Bloomberg Radio and television all morning long for the latest from Jackson Hole. Are on site coverage to the kickoff of Powell speech begins at seven am with a special edition of Bloomberg Surveillance with Tom Keene, Lisa A. Bramowitz,

and Jonathan faroh Well. Nathan Central Banker is stressed the need to keep raising interest rates at Jackson Hall, St. Louis. FED chief James Bullard said officials should lift their policy benchmark to a three point seven five percent to four percent range by year end. Philadelphia Fed President Patrick Harker and Atlanta FED President Raphael Bostick also called for continued hikes. Can To City Fed President Es your George shared her

view on Bloomberg Television. Very important that we are clear in our communication about the destination we're headed. And I think that destination is important, which is we have to get interest rates higher to slow down demand and bring inflation back to our target. Kansas City Fed President Es Your George also said there was more room to go and asked how high the Fed should push borrowing costs. Well, Karen, Markets will be looking for any sort of signals Pal

might give when it comes to rate hikes. In his speech at ten am, BEMO Capital Market senior economist Jennifer Lee does not think the FED share will change his recent guidance. I think he's going to stay on the hawkers truck. I don't know why he would change his tone so quickly. Yes, we've had some weaker, you know, economic data, especially on the housing front. We finally saw some pullback on the headline inflation. But you know it's gonna be far, far too soon to bring the dovish bell.

Bemo Capital Market Senior economist Jennifer Lee says the next major event for the Fed to watch is the CPI report in three weeks. Nathan just as Well speech begins, we'll get a key economic report, and Bloomberg'svinnidale Judais has

the details. In early August, the university did for Michigan's consumer sentiment index hovard new a record low, and today's figures on late August aren't expected to be much better Bloomberg Economics, as Americans recognized, there will be challenging months just ahead, even with today's rising wages and low unemployment. Also on today's data calendar, government figures on July consumer spending and it could be tempid with inflation running hot.

Then he dealt Judais Bloomberg dey break Okayvinny, thank you. Overseas stocks in Asia rows helped by the tech sector after talks between Beijing and Washington to avoid the delisting of companies in New York was said to show signs of progress well the geo politics Now, Nathan Tennessee Senator Marsha Blackburn is in Taiwan, the third visit by an

American dignitary this month. Senator Blackburn held several meetings there, including with Taiwan's president, the opportunity to talk with her that hopes, dream plans, and approaches for Taiwan, and how they recame their independent. Tennessee Senator Marsha Blackburn says the US will continue to support Taiwan's independence. Back at Homecaen, President Biden campaign for Democrats in Maryland yesterday ahead of November's mid terms. The President aimed his attacks on former

President Trump and what he called ultra mega Republicans. Republicans don't just threaten our personal rights and economic security, they're a threat to our very democracy. They refused to accept the will of the people. They embrace, embrace political violence. President Biden also said the so called mega philosophy is semi fascism. On the Corporate news Now Nathan, a couple of tech companies released a bleak economic data and fell

at the close yesterday. Dell Technologies gave our revenue forecast I fell short of estimates, and Salesforce also slipped after its quarterly revenue fell short of analysts estimates. Dell shares are lower this morning, down four point two per cent, to Twitter Now Karen and its ongoing battle with Elon Musk. A judge has ordered the social media giant to hand over info. Delaware Chancery Court Judge Kathleen McCormick rolled the Twitter has to turn over information about nine thousand accounts

that surveyed last year. She wants the company to identify which had human beings attached to them. McCormick says Twitter also must produce documents sufficient to show how those nine thousand accounts were selected for review. At a hearing this week, must lawyers accused their Twitter counterparts of stonewalling on Bot's information. Musk thinks that gives him reason to exit his bid

for the platform. And another quick corporate note here, Nathan pharmaceutical giant Mark's pursuit to buy cancer drugmaker Sigen has stalled, threatening Murk's biggest deal in more than a decade. The companies have reportedly failed to agree on a price to this point. And futures Yeah, well check markets now, Karen, ahead of the uh uh, the much watched speech coming up from Fed chair Palace and p futures right now

are down fourteen points now, futures down seventy eight. NASDAC futures are lower by sixty one points the tenure treasure. He's down fourteen thirty seconds for yield of three point zero seven percent. Name x Screws hired by six tenths per cent to ninety three dollars eleven cents of barrel, and the euro right now zero point nine four against the dollar. Straight ahead, we'll have your latest local headlines

and a check of sports. You are listening to Bloomberg Daybreak, broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg Living free to Washington, d C, Bloomberg N one to Boston, Bloomberg one O six one to San Francisco, Bloomberg NUN sixteen to the country Sirius XM Chado one nineteen and around the globe to Bloomberg Business app in Bloomberg Radio dot Com. This is Bloomberg Daybreak. It is five thirty on Wall Street. Good morning. I'm Nathan Hager

and I'm Karen Moscow. We are just about four hours away from the open of US trading. Let's get you have to date on the news you need to know at this hour. We begin with the Federal Reserve Chair J. Powell's address at the Jackson Hole Economic Symposium this morning. Several FED speakers have discussed monetary policy at Jackson Hole. Kansas City Fan President Esther George told Bloomberg Television that once rates get higher, they may have to stay there

for a while. We have more room to go, that we would bring those rates down quickly, and I've seen that in some of the forecasts. Seems a bit remarkable to me. I think we will have to hold and Kansas City Fed President Esther George also said there was more room to go and asked how high the FED should push borrowing costs. Please follow Bloomberg Radio and Television all morning long for the latest from Jackson Hole. Are

on site. Coverage begins at seven am Wall Street Time with a special edition of Bloomberg Surveillance to Politics Now, Karen. President Biden campaign for Democrats in Maryland yesterday ahead of November's mid terms, and he aimed as attacks on former President Donald Trump and what he called ultra mega Republicans. We must be stronger, more determined, and more minute to saving America. Then the magar Republics are destroyed America. President by And also said the so called mega philosophy is

semi fascism. Meanwhile, Nathan overseas Tennessee Senator Marsha blackburnes in Taiwan, the third visit by an American dignitary this month. Senator Blackburn met with Taiwan's president and said the US will continue to support Taiwan's independence. To Corporate News Now, Karen and to Twitter with developments in its battle with Elon Musk, Bloomberg's Rnita Young joins US Live with the update. Good morning, Ranita,

Good morning Nathan. Yesterday, Delaware Chancery Court Judge Kathleen McCormick ruled Twitter must turnover information about nine thousand accounts it surveyed last year. She wants the company to identify which had human beings attached to them. McCormick said Twitter also must produce documents sufficient to show how those nine thousand

accounts were selected for review. At a Wednesday hearing, Musk's lawyers accused their Twitter counterparts of stone walling them on the bots information must believe that gives him reason to exit the bid for the platform. Live in New York, Live in Washington. I'm really need a Young Bloomberg daybreak ivery needed. Thanks in another corporate not a couple of

tech companies releasing bleak earnings and falling at the close. Yesterday, Dell Technologies gave a revenue forecast that fell short of estimates, and Cortantly revenue from SALESFORCET fell short of analysts estimates as well. Futures this morning are lower. SMP future is down about seventeen points now features down eighty seven, nasdack futures down seventy four straight. I had your latest local headlines plus a check of sports, and this is Bloomberg.

Thanks Karen. Three on Wall Street, seventy six degrees in Central Park on an accident if you're headed to laguardi a westbound Grand Central Airport at Ditmar's Boulevard of details coming up in traffic. First Michael Barr with a closure on forty four street. Michael, thank you very much. Nathan, Yeah, that act. That is not an accident. That off of

Eighth Avenue in Hill's Kitchen is a fatal stabbing. According to the NYPD, a nine year old man with a history of menacing people was fatally stabbed in a flight earlier this morning. The suspect, the twenty eight year old man, claims it was in self defense he was taken into custody. The first of six public hearings was last night about the m t a's congestion pricing plan in Manhattan. Hundreds of people on both sides signed up to speak on

the matter during the virtual meeting. Yet we're expected to pay for You're bloated and out of control. Agency seven ABC with the audio. According to the m t A, the plan could cost drivers in Manhattan South of Street

as much as twenty three dollars during rush hour. The agency says it was designed to lessen traffic congestion by as much as The Justice Department is set to release a heavily blacked out document explaining the justification for an FBI search of Donald Trump's Florida state earlier this month, when agents removed top secret to government records and other classified documents. The document is e affected by noon. Justice Department officials are expected to have removed sensitive details about

witnesses and the scope and direction of the probe. Legal expert Lourie Levinson. There's been an effort by the media and by Donald Trump to get more information from the affidavit, but the government has resisted that, in part because they have an ongoing investigation. However, it does look like there's at least a compromise that there's more information regarding the investigation of Donald Trump and its possession of classified information

that the public will get in the near future. Loyola law professor Laurie Levinson five people were observed at an area hospital after an incident had six Flags Great Adventure in Jackson Township, New Jersey. The park says several guests reported back pain after writing the El Toro roller Coaster Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists and analysts more than a d countries. I'm Michael bar This is

Bloomberg NA. Thanks Michael on Wall Street. Time for the Bloomberg Sports Update with John Thanks Days and the Yankees with as many wins in their last four games as they had in the first twenty one days of all this. They made it four wins in a row, the first three. We're all by the same score of four to two.

Last night in Oakland it was thirteen to four. A twenty hit attack, no home runs, but three hits, three RBIs for the rookie as Waldo Cabrera and easy win for Jamisonntyana Mets back at today Field started a long homestand they meet Colorado three to one. Six wrong ginnings from Jacob de Graham, one for Edwin Diaz. They played the trumpet song for Diaz in the eighth inning that left the ninth for Adam Outavin know Peter Alonso had

the big hit, two run homer in the third. Think it's important to win every game, whether you're playing the Yankees or Um or the Rockies or or whoever, or the Phillies. I mean, it doesn't matter. It's just that we need to do our job every single day. Come up and and execute a plan, come up and play together as a team. So we did a really good job of that tonight. Pitching was right. Uh, we did did enough as an offense to scoring up runs and win again. The Met's lead the Braves now by two.

The Jets in twenty twenties drafted white out Denzel Mims in the second round. He has fallen on the Jets death chard and now Mins has asked to be traded. Jets and Giants placed Sunday afternoon at MetLife. The two New York teams have had a joint practice and Daniel Jones went fourteen and fifteen, but Giants linebackers he's o Gilari limped off the field of the leg injury. US Open begins Monday. Novak Djokovic made it official he's unvaccinated. He's not allowed to fly into the US to play

golf in Atlanta. Scotti Scheffer took a big step towards an eighteen million dollar paycheck. He began the Tour Championship with the two shot lead based on leading the standings, and he now lead by fom John Stashwen Bomberg Sports. Thanks John seven on Wall Street Time for the Tri State Business Report with Boomberg's way Dey Gillette. New Jersey based Merk has hit the pause button in its talks

to buy cancer drugmaker Segon. It would be the pharmaceutical company's biggest deal in over a decade, but so far the two have not agreed on a price. According to sources who has to remain confidential, Murk invested in Segan, which used to be known as Seattle Genetics in the company has a market value of about thirty billion. Hundreds sounded off last night at the first virtual public meeting on the Metropolitan Transportation Authorities controversial proposed congestion pricing plan

for Manhattan. The goal is to lessen congestion in the Central Business District by charging up to twenty three dollars to drive south of sixtieth Street, aside from the West Side and FDR Highways. Five additional hearings are planned. Former President Trump's one time Connecticut estate is relisting for about half of its two thousand fourteen asking price. Dal Jones reports the Greenwich Waterfront of state is listing for almost thirty million dollars, down from fifty four million. That's the

Bloomberg Tri State Business Report. I'm Wendy to Let. Thanks Wendy, It's on Wall Street. Now. Let's check in with our global news team for some of the tough stories on our three D affiliate radio stations around the world. I'm Steve Photos and x A Laws Angeles. We're talking about the nation's largest operator of EV charging stations, ready to do battle to get AD dollars. I'm Gina Servetti in

for w BBM in Chicago. I'm reporting that after days of looking at corn crops in Iowa, Illinois, Nebraska, Minnesota, and South Dakota scouts are returning with discouraging news and that could mean even higher food prices. Famlis Matteo and on cam Ox and St. Louis, I'll be reporting on the world's most popular password manager getting hacked. I'm Stephen

carl on D A B Digital Radio in London. We've been reporting on how energy bills are set to rize a percent in October after the UK's regulator raised the price cop I'm ready to let on w T A M in Cleveland. I'm reporting on a big company pulling out of purchasing homes and those are some of the stories are d Bloomberg journalists and analysts who working on this morning. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was

written by the Bloomberg Editorial Board. Chinese leaders seized upon US House Speaker and Nancy Pelosi's high profile visit to Taiwan earlier this month to launch the largest military exercises ever conducted near the island. Although Chinese missiles are no longer arcing over Taiwan, things have hardly returned to normal to re establish a more favorable equilibrium. The U S will have to do more to both deter and reassure China.

That means moving military resources to the Indo Pacific and stepping up cooperation with regional allies, while also avoiding noisy symbolic gestures that needlessly provoked China. The aim should be a mutual understanding that Taiwan is a long term issue to be managed. However messy and unsatisfying such a compromise might be, it would be better than sliding into a conflict with incalculable cost. 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, and you can hear Bloomberg opinion editorials every weekday at this time. Terminal customers can read more at O P I n go. Ahead of Pal speech this morning, futures are pulling back. We've got SMP futures right now down fourteen points now futures down and Dansack futures lower by

sixty six points. Matt Maylie, chief market strategist at Miller, Tabac joins us. Next. This is Bloomberg Bloomberg eleven three oh weather sunshine with showers and storms this afternoon, going up to near ninety degrees uper eighties, mix of sun and clouds. Tomorrow sunny for Sunday with highs and the upper eightings right now seventy six in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg

Quick Take. He's a Bloomberg Business Flash and I'm camerin Moscow. US Stock Index futures are slippering and slipping, and treasuries retreating as a chorus of federies of hawks prepare the ground for a much anticipated speech by chairs your own Powell that's set to shape views on the pace of monetary tightening. We checked the markets every fifteen minutes throughout the trading day on Bloomberg U S and P future is down about fifteen points down, futures down seventy and

as dag features down sixty eight. The decks in Germany's down about two tenths of a percent, ten Your treasury down thirteen thirty seconds. He had three point oh seven percent yield on the two year three point three eight percent. Nimex screwed oil is a one in a quarter percent of a dollar twelve at ninety three dollars sixty five cents a barrel. Call mex School down half percent or eight dollars ten cents at seventeen sixty three thirty announced. The euro is at one point zero zero zero one

against the dollar. British found one point one eight three zero and he had one thirties six point nine one. And Bitcoin this morning is down one percent at twenty one thousand, four hundred twenty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, thank you very much. Karen. By noon, the Justice Department is set to release a heavily redacted affidavia explaining the justification for an FBI search of Donald

Trump's Florida A state. Earlier this month, agents removed top secret government records and other classified documents. Russian President Vladimir Putin appears to be trying to replenish his military by ordering a thirteen percent increase in the country's troops strength. Russian forces have suffered heavy losses in six months of war in Ukraine. In baseball, the Yankees beat the A's thirteen four, The Mets beat the Rockies three one. The

Red Sox lost the Orioles one Thursday night. NFL preseason action is lost to the Texans. Seventeen. ZIP Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barron, this is Bloomberg. Nathan, Okay, Michael, thank you. It is five nine on Wall Street Life

from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak as we continue the countdown to Chairman Pal's speech at Jackson Houlward, joined this morning by Matt Mayleie, chief market strategist at Miller Ta Back, Matt, It's great to have you back on with us. We've seen uh plenty of gyrations in the market in the days leading up to Chairman Powell's address. How do you view the market action

this week? Well, it's yeah, I mean we've had you had that huge rally uh from the middle of June until about a week ago. And uh, so I could see why people want to take a pull the market to pull back a little bit anyway, Uh, you know, taking a few chips off the table in front of that, in front of this big speech today, and then of course we bounced Bennet sense and Wally bounced back, just

kind of shows some of some of the uncertainty out there. Um, but it's gonna be uh, it's gonna be very interesting to see what he says today because the setup has certainly been very hawkish, very hawkish, and uh if he does not come off as pretty darted hawkish, Uh, I mean I personally, I think he's gonna make a FED speak uh pre irrelevant going forward because if you have a whole slew of people of either quite quite hawkish too extremely hawkish, and he comes out on the doubsh side, Uh,

why would you even listen to these people anymore? So it's it's gonna be very interesting to me. Is that your call? Do you think he's gonna soften the tone ahead of or after all that we've heard from the FED speakers this week? No? I don't, And I think the market is you know, and that's gonna be tough

for the market. I think he's gonna be I think he is gonna be hawkish, uh for for partially partially because why why would you why would all these other people come out and be as hawkish as they had been in unison. Uh if he wasn't on the same page, it just wouldn't make a whole lot of sense to me. Uh and uh And you know there's a good reason for it. I mean, we can all talk about it

fears a recession and we can't have a recession. But it's like, well, if you don't take and say don't don't take care of inflation first, the recession is going to be worse if you back off too soon. Uh So I do think and I guess my point is that I think that the stock market is not pricing in a oor pace of of of cutting rates. I'm sorry, of raising rates. I think it's pricing in uh an end of rates, the end of hiking rates by the end of the year, end up pivot to cutting rates

by next year. And I just I don't think that's what we're gonna get. So what does that mean for the market if the if the chairman does delivered that message. Yeah, I just don't think that the markets priced in for that, for that message, and and and we'll we'll we'll see a pullback you know again that would that would be okay. I mean, I think the markets, Uh, even if you're very very bullish on the on the economy and bullish on the market longer term. Uh, this rally has been

a very strong one. And uh, even even without the Jackson whole speech to day, the market is kind of ripe for a pullback anyway because it's getting overbought on a tentacle basis. So but when you combine it with the fact that uh that he I believe will be more hawkish, Uh, that does lead for it's kind of tough because we're heading into the September October time frame and we could get that kind of pullback. It could be a little bit bigger than people have been thinking.

Use it a pullback, it tests the jew low. Does it go further than that? Well, I I certainly think the chances are are there. Uh. And uh, I don't want to sound overly bearished, because you know the problem that we face is that the last time we had a big, bad bear market that lasted from you know, for a while. I mean two thousand twenty was kind

of one of those odd situations with the pandemic. But that was, of course during the financial crisis, and people think, oh, well, jeez, if you think it's going to go lower, you're looking for another financial crisis where the market goes down, and that's not what I'm looking for. But I do think we we can definitely test the lows and uh uh and maybe even letter cut them in at last minute here, Matt, Are there any sectors or styles that are better insulated

from a more difficult investment environment? Well, I just think that. One of the things that I said back in December and January this year is that the raising cash is a good idea right now. But as for the sectors, I still think the energy sector is that, you know, is it's doing quite well. You look at crude oil, it's very interesting. Um yeah, yes, it's come way down. You know. I don't some people still saying it's gonna bounce back to one fifty on crude oil. I don't

think that's gonna happen. But I do think that the energy sector is one that will do well. It's a good inflation hedge, and that's what I'm really worried about. I mean, we have to beat inflation first, and I think it's gonna stay at an elevated level even though Pete, we're past peat inflation. One of those reasons, I think that oil will not come down a lot further. So I think the energy sectors is a good place to play and as a place to you know, get some

hedges for that, for that elevated level of inflation. I think we'll stay with us. Thanks Matt, great having on with us once again. Matt Maylee, Chief market strategist at Miller Ta Back, Karen Allry, Nathan, thank you at it's five or fifty three on Wall Street. Time for our Bloomberg Law Report. Let's get to the legal stories we're

watching this morning. From Bloomberg's Jeff Bellinger. A federal magistrate in Manhattan handed Amazon and the nation's top publish houses a tentative victory, finding allegations of a conspiracy to inflate

book prices to be implausible. The federal court in Massachusetts will let consumers proceed with allegations that Gordon's misrepresented products made with Pelopia from China as sustainably sourced their healthcare filed the trademark infringement suit in New Jersey federal court charging that an unauthorized seller is distributing fake their products in storefronts run by Amazon and Walmart. 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. Another legal story we're watching. On Wednesday, President Joe Biden unveiled a sweeping student debt relief package that cancels as much as twenty thousand dollars in debt. First some For more on this and potential challenges to the bide An administration's plan, Bloomberg's Greg Store spoke with

Georgia's State University College of Law professor Eric Siegel. Let me ask you about the prospect that you mentioned about servicers loan servicers suing to challenge here. Have you seen any indication that there is a service or out there who might be motivated to challenge this. You mentioned that there might be some financial impact, but surely if there is a lawsuit here, it's going to be about ideology

as much as about money. Right, I don't think it would be very hard for groups who are devoted to dismantling the administrative state and both of you know, there are a lot of groups that want to do that. In general, they'll be able to find a service or somewhere who says, you know, I have X number of loans and I make X amount of money off of them, and now I'm going to have X minus that amount

of money. But we shouldn't criticize that because you know, that's how civil rights groups brought lawsuits that eventually led to the Brown Versu support of education. That's an equally true thing for both docks and in these kinds of ideological battles, public interest groups and normally fund the lawsuits. They find plainets who are outstanding, and that's something we shouldn't criticize, you know, unless we want a much weaker judiciary,

because this is how this is normally done. Now. I will also say, twenty years ago, the federal society would not have thought this was the kind of lawsuits people should bring, But they've changed their minds on that. And so there are a lot of groups who are very vested in limiting the amount of deference Congress can give to the executive branch. That's the kind of lawsuit this

would be. It would be that the secretary didn't have the authority that a secretary says they have, or if Congress wants to delegate this power, it has to do so tough, you know, much clearer statute, because it's called

a major question. All of that stuff is fairly new, so it's hard to say, but I'm sure there are plainets out there to be gotten by ideological groups who want to further limit the administrative state, as Georgia's State University College of Law professor Eric Siegel, speaking with Bloomberg's Gregg iss Store. 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 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 following s and P futures down seventeen points down features down A D two and NASDAG features down seventy four, ten year Treasury down thirteen thirty seconds held three point oh seven percent. They yield on the two year three

point three eight percent. NIMEX screwed oil higher, up one point one percent of a dollar four at ninety three dollars fifty six cents in barrel, and Comic School is done half percent at seventeen sixty two thirty announce and our top stories are straight ahead. This is Bloomberg