Bloomberg Daybreak: August 26, 2022 - Hour 2 (Radio)

pricing in Manhattan is in the books. Plus we should see soon every dacting Affidavid search Trump's maramago with State. I'm Michael Barr. More ahead, I'm Stash in sports. Twenty hits for the Yankees and easy win at Oakland. JAKEB.

De Graham pitched the Mets to victory over Colorado. That's all strad ahead on Bloomberg day Break on Bloomberg eleven Trio, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XM one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business. Actor and good Friday morning. I'm Nathan Hagar and I'm Karen Moscow, US not in next.

Futures are lower this morning. We are coming up to six o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg. Right now, SMP futures are down fifteen points down, Future is down seventy four and NASDAG futures down seventy. Ten year treasury down thirteen thirty seconds. He'll three point oh seven percent. They yield on the two year three point three eight percent, and NIMEX screwed oil is up one

point two percent. Nathan Karen, it's the event Wall Street and global markets have been awaiting all week. Federal Reserve Chairman Jerome Powell delivers his speech at the Jackson Hole Economic Symposium. Bloomberg's Tom Keene is covering the event for us. Good morning, Tom, Karen and Nathan. Of course, all eyes on Chairman Powell. 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 a not just a speech, just a few and key reports that we're gonna see into September and that important FED meeting. 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

Powell this morning certainly. Well, thanks for that, Tom, and please tune into Bloomberg Radio and television this morning starting at seven am Wall Street Time for a special edition of Bloomberg Surveillance for complete live coverage from Jackson Hole. We'll speak with St. Louis FED Chief James Bullard, Patrick Harker, who heads the Philadelphia Fed, and Atlanta FED Chief Rafael Bostick all leading up to j Powell's address, and you can hear that live starting at ten am on Bloomberg

Radio and TV. Well, Nathan Central bankers speaking at Jackson Hole so far half sounded hawkish. Kansas City FED President Inistor George, who hosts the event, 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 Fan president Ester George also said there was more room to go and asked how high the FED should push borrowing costs. All markets will be looking for any sort of signals how might give Karen when it comes to rate hikes. In his speech, 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 seon to ring the dovish fell the most. Senior economist Jennifer Lee says. The next major event for the FED to watch is the CPI report coming out in

three weeks. Well, just as Powell's speech begins, Nathan, we'll be getting key economic reports and Bloomberg's Vinney down Junie has the details. In early August, the University of Michigan's consumer sent them man named x Howard 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 they could be tempted with inflation running hot. Then he doubt you that ice, Bloomberg, Debriek Vinny thank you overseas stocks in Asia Rose, helped by the tech sector after talks between Beijing and Washington to avoid the de listing of companies in New York said the show signs of progress well the geo politics now Nathan Tennessee Senator Marsha Blackburn became the third American

dignitary to visit Taiwan this month. Senator Blackburn held several meetings there, including with Taiwan's president. The opportunity to talk with horror that hopes, dreams, plans and approaches for Taiwan and how they retain their independence. Tennessee Senator Marsha Blackburn

said the US will continue to support Taiwan's independence. Bike at Homecare and President Biden campaign for Democrats in Maryland Yes Your Day ahead of November's mid terms and he into his attacks on former President Trump and what he called ultra mega Republicans. Maga 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, and the corporate news Now Nathan, a couple of tech companies releasing bleak

earnings and falling at the close. Yesterday. Down Technologies gave a revenue forecast that fell short of estimates, and Salesforce also slipped after it's quarterly revenue also missed analysts estimates, and del shares are down about four point three percent this morning, And to Twitter Now Karen and it's battle with Elon Muska. Judge has ordered the social media giant to hand over info, and Bloomberg's Rnita Young joins US

Live with the latest. Good morning, Rnita, Good morning Nathan. Yesterday, Delaware Chancery Court Judge Kathleen McCormick ruled Twitter must turn over information about nine thousand accounts that surveyed last year. She wants the company to identify which had human beings attached to him. McCormick says Twitter also must produce documents sufficient to show how those nine thousand accounts were selected

for review. At a Wednesday hearing, Elon Musk's lawyers accused their Twitter counterparts of stone walling them on the bots information. Musk believes that gives him reason to exit his bid for the platform. Live in Washington, I'm renned a young Bloomberg daybreak. We need to thank you. Another quick corporate note, pharmaceutical giant Mark's pursued to buy cancer drug maker Sigen has stalled, threatening Merk's biggest deal in more than a decade.

The companies have reportedly failed to agree on a price. To this point. SMP futures are down sixteen points right now. Dal Future is down eighty two. NASDAC futures are lower by seventy five points ten. Your treasuries down fourteen thirty seconds. The old three point zero seven percent yield on the two year three point three eight percent. Nim X screwed is up one point three percent, up a dollar nineteen

to seventy one cents a barrel. Comex called down six tenths per cent, or eleven dollars seventeen sixty forty ounce, the Euro one point zero zero three against the dollar, the en one thirty six point nine too. Looking at bitcoin right now, it is down one percent, trading around for twenty one thousand, four hundred dollars. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg six oh seven on Wall Street, seventy six degrees

in Central Park. Still dealing with the accident westbound Grand Central Airport did Mars Boulevard. We'll get to the latest details in traffic shortly. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. The first hearing is in the books about the m t a's congestion pricing plan in Manhattan. Hundreds of people on both sides signed

up to speak on the matter. The plan could cost drivers in Manhattan south of sixty Street as much as twenty three dollars during rush hour, the m t A says 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 Departments search former President Donald Trump's Morla go Home. The d o J is submitting a redacted version by noon 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 residence, Loyola Law School professor Lourie Levinson.

The NYPD say as a man was fatally stabbed early this morning in Hell's kitchen and happened at eighth Avenue and West Street. Forty nine year old man with a history of menacing people was stabbed in a dispute, according to the police. The twenty eight year old suspect claims it was in self defense. California's Air Quality Regulation Board voted yesterday to halt the sale of gas powered cars by the board says it would dramatically lower emissions and

air pollutants. Governor Gavin Newsom, this is the architecture for completely decarbonizing our economy. Change the way to producing consume energy, and it's the architecture for economic power, not just electric power. Governor Newsom says one tenth of all cars sold in the U s R To Californians. However, not everyone is on board with a change. Tom Becker says he doubts 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 and analysts in more than a hundred twenty countries.

And Michael Barr this is Bloomberg, Nathan, Thank you, Michael, almost sixth tent of all street time for the Bloomberg Sports Update with John Stanshower. Thanks Nathan. Good start to the Yankees ten game road trip there in Oakland. That's a team that is just twenty and forty two at home, and the Yanks tet off on the age twenty hits. They were up ten nothing in the fourth, then in the final was thirteen to four. Three hits for the Red Odd Andrew Ben and ten d three for Josh Donaldson.

Three hits, three rbies for rookie as Waldo Cabrera, plenty of run supports with Jamison taylanned to get his team leading twelve win. Garrett Cole starts tonight. Esther Cortez was to start tomorrow, but he was placed on the injured list drain drawing, not believed to be a serious injury. John Carlos Stanton came off the i L. He was back in the Yankee lineup last night. Asked for the Mets. Jacob de Graham a lot of times in his career

has gotten no run support. He doesn't need a law and he got all he needed with one swing of the Batch banksball Hi their to left field. Forget about it. That's the way out of here. Fuck the facing of a second deck. See the lotso demolishes it too. Run Homer and the Mets now League three coping in the pot of CBS thirty first on run for Alonzo has got a hundred four RBIs. The Mets beat the Rockies three oh one. Is the ground one six Inians gave up this three hits struck out nine and the Mets

now with a two game lead on the Braves. US Open begins Monday. It's all about Serena Williams and she learned her first round, first round opponent and this her career ending tournament will be Donka Convintage from Montenegro, ranked eightieth in the world. Meanwhile, the unvaccinated no VAC tooka its beneficial not plane not allowed to fly into the U S Torch Championship Golf in Atlanta. Sixty five for world number one Scottie Scheffler. He's got a five shot league.

John stactually wear Bloomberg Sports, Nathan, thank you, John stash Our SMP futures right down down seventeen Pointstown futures down eighty eight. Nastack futures are lower by seventy five points ten. Your treasuries down fourteen thirty seconds yield very close to three point zero eight percent. This is Bloomberg Bloomberg eleven three hither sunshine, some showers and storms developing this afternoon with highs in the upper eighties. We'll be in the

upper eighties all weekend long tomorrow. Mix of sun and clouds. Sunday sunshine right now seventy six in Central Park, Broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one oh six one, to San Francisco, Bloomberg non sixteen to the country Sirius XM to have a one nine tea, and around the globe the Bloomberg Business apt 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, and we are just about three hours away from the open of US trading. Time to the five things that you need to know to start your

dave ronty you by Interactive Brokers. Investment advisers switched to Interactive Brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests and ibkr dot com slash r i a first Federal Reserve Chair J Powell's address at the Jackson Hole Economic Symposium this morning. Kansas City Fed President Esther George hosts the event, and she says, once rates gain 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 you will have to hold and Kansas City Fed President Ester George spoke with The Bloomberg yesterday. Tune into Bloomberg Radio and TV

this morning starting at seven am. Wall Street Time for a special edition of Surveillance will have live interviews with St. Louis Fed President James Bullard, Patrick Harker, who heads the Philadelphia Fed, and Atlanta Fed Chief Raphael ball Stick All Letting ball Stick all leading up to j. Powell's address. You can hear Powell's speech live at and am on Bloomberg Radio and TV. Multi Politics Now. Karen President Biden campaign for Democrats in Maryland yesterday ahead of November's mid terms.

He aimed his attacks on former President Trump and what he called Ultramega Republicans. We must be stronger, more determined, and more committed to saving America than the Maga Republics are destroyed America. President Biden said the so called Mega philosophy is semi fascism. I mean well overseas Nathan Tennessee Senator Marcia Blackburn became the third American dignitary to visit Taiwan this month. She met with Taiwan's president and said

the US will continue to support its independence. MC Corporate News This morning. Twitter has some developments in its battle with Elon Musk and Bloomberg. Ranita Young joins US Live Ranita Nathan. Yesterday, Delaware Chance to Recurt Judge Kathleen McCormick ruled Twitter must 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 those how those nine thousand accounts where selected for review. At a Wednesday hearing, Elon Musk lawyers accused their Twitter counterparts of stone walling them on the bots information. Musk believes that gives him reason to exit his bid for the platform. Live in Washington. I'm gonna need a young Bloomberg daybreak. Need to thanks.

In another quick corporate note, tech giants Dell and Salesforce fell at the close yesterday after missing analysts estimates. That's the five things that you need to notice start your day. Brought to you by Interactive Brokers, and futures are lower this morning. Straight ahead your latest local headlines, plus a check of sports. And this is Bloomberg. Thanks here in sixty three on Wall Street, seventy six degrees in Central Park still dealing with the accident on the Grand Central

Parkway did Mars Boulevard. More 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. Police activity early this morning at West forty four Avenue in Hell's Kitchen is from a fatal static. According to the NYPD, old man with a history of menacing people, was fatally stabbed in a fight. The suspect, 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. The plan could cost drivers in parts of Manhattan as much as

twenty three dollars during rush hour. The m t A 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 government of records. The document, expected by noon, is likely to offer at least some new details.

Justice Department officials are expected to have move sensitive details about witnesses and the scope and direction of the probe. Legal expert Lorie 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 Lourie Levinson. California regulators have proved a plan to ban the sale of new gas powered cars by the year. Governor Gavin Newsom calls it a historic win against climate change in California. This is a game

changers relates to the environment. There's nothing else that will move the needle on greenhouse gasses more than tail piper. Missions about amissions in California come out of the tailpipe. Governor Newsom spoke to ABC. New York State began accepting applications to open its first legal recreational pot shops. Its reserving about a hundred fifty retail dispensary licenses for people

with past pop convictions or their relatives. 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. This is Bloomberg NA. Thanks Michael. Almost six thirty six on Wall Street, John Stasher has some Bloomberg Sports update. Thanks They and the Yankees with as many wins in their last four games as they had in the first twenty one days.

Of all, if they made it four in a row the first three, we're all at the same score of four. At two last night in Oakland, it was thirteen to four, a twenty hit attack, no home runs, but three h three RBIs for rookie as Waldo Cabrera. Yanks got John Carlos Stanton back in the lineup and it was an easy win for Jamis Incio and the Yanks. Land tend to nothing in the fourth inning. The Mets back at

City Field, start of a long homestad. They beat Colorado three to one, six strong and ins from J. J. Graham, one for Edwin Diaz. They played the trumpets song for Diaz in the eighth inning. That left the ninth for at amount of you know, pe Alonso had the big hit. He had a two run homer in the third. 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 great. Uh we did did enough as an offense to score enough runs and win the game. The Mets lead the Braves now by two. The Jets in twenty drafted white out Denzel Mims in the second round. He has fallen on the Jets depth chart and now Mims has asked to be traded. The Jets and Giants will play Sunday afternoon MetLife. The two New York teams

has had a joint practice. Daniel Jones was impressive going fourteen and fifteen, but Giants linebacker ziz O Gilari limped off the field. With a legendary US Open begins Monday, Novak Djokovic made it official he's unback today that he's not allowed to fly into the US to play golf in Atlanta. Scottie Scheffler took a big step towards an eighteen million dollar paycheck. He began the Tour Championship with the two two shot lead based on the leading the standings,

and now he leads by five. John Stash where Bloomberg Sports stave Okay, John thanks six seven on Wall Street let's take a look at stock, some of the names moving in the pre market, and the pre chair pal's speech. We're joined now by Bloomberg Radio on TV Markets correspondent Create Gufta. Looking at earnings again. Create, I know it kind of feels like earning season is not quite ending. This one just keeps dragging on. But perhaps some good news as we are in a wait and c mode.

On the surface, Nathan, I would say things are pretty calm on the macro front once again, no one making any big moves. But then underneath you look at the micro and you are seeing some big moves. We'll start with del here. D E. L l is your taker. Shares are down about five percent in the pre market. This comes after their earnings picture, which by the way,

looks actually pretty good. Their revenue forecast did, however, fall short of estimates, but their second quarter sales did come in stronger US enterprise spending fueling about nine percent of growth there. Dell, however, declining after this comment executive signaling

tighter times ahead. They're saying they're observing more cautious customer behavior year as the quarter progressed, and of course they're saying that that's only going to get worse as we see more and more challenges throughout the end of the year. And some other earnings as well. From Workday, a pretty strong moved there as well. A pretty strong move w d a y is the taker that you want to keep an eye on. Shares are actually up eleven percent.

They were up as much as twelve percent earlier in the session, so seeing a little bit of volatility in Workday shares. This comes after the application software company, of course, reported earnings like we were talking about, and they topped them, and they topped them by quite a bit. Remember anythan one of the key themes right now is not just

about consumer spending but about business investment as well. And that's why companies like Dell and Workday and we're gonna talk about a firm in a second, are so important because it's are a lot of corporate America, the other kind of fuel of of spending actually putting their money to work, and for a long time they weren't. So to see that slowing down once again is not good news for Dell, but then it is good perhaps coming

in better from Workday. Analysting at the Workday beat was solid all around, but they are, however, seeing a little bit more of a slow down here. The good news for them is that it's the back to office modernization that is driving the demand, essentially something you're seeing in cloud companies as well, that a lot of people are saying, now that we're back in the office, we're gonna update our systems, etcetera. Nathan I mentioned a firm as well, A f RM is the taker you want to keep

an eye on. This is actually another downside story down about in the pre market. Their sales forecast for three coming out quite mediocre and missing the average annals estimate. So um, a pretty bad cherry on top of a pretty bad Sunday, although we got some pretty good news from another apparel company. Kind of interesting here given some of the mixed results we've seen from retail change. Yeah, we'll quickly hit this one. GPS is your taker for

gap shares. They are actually up seven point three percent, this coming after they reported a surprise profit and improving sales trends. Huge when we're talking about the retail sector, the build up of inventories alright. Bloomberg Radio and TV Markets correspondent Pretty Gupta is always saying really busy during the prolonged or season. Looking ahead to the market open and Chairman pal speech. Futures as a whole moving lower. We have SMP futures right now down seventeen points down,

futures down ninety three. NASTAC futures are lower by seventy two points ten. Your treasuries down thirteen and thirty seconds, the yield three point zero seven percent. This is Bloomberg Bloomberg eleven three oh weather sunshine with some showers and storms this afternoon. We'll get up to your ninety degrees upper eighties, mix of sun and clouds. Tomorrow, sunny for Sunday with a high near nine once again, right now

seventy six in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quick Take. He's a

Bloomberg Business Flash and I'm Karen Moscow. US Dock Index futures are slipping, Treasuries are at trading is a chorus of Federal Reserve hawks repair the g on for a much anticipated speech by chairs around Powell that's set to shape views on the pace of monetary tithing We checked the markets every fifteen minutes throughout the trading day on Bloomberg S and P Future is down about seventeen points down,

futures down eighty five, NASDAGG futures down seventy four. The decks in Germany is down a third of a percent. Ten year treasury down fifty and thirty seconds three point eight percent. They yield on the two year three point three eight percent. Nine max screwed oil at one point two percent of a dollar eleven and ninety three dollars sixty three cents of barrel comex school there is down seven ten percent or eleven dollar sixty cents at seventeen

sixty and ounce. The euro at one point zero zero one three against the dollar British found one point one eight three nine and the en one thirty six point nine. To look at a bitcoin this morning, it's lower down about one point one percent now at twenty one thou 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 Darren, thank you very much. A federal judge says the Justice Department has until noon to release an affidavit use 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 blocking out information about witnesses, agents, and uncharged parties in the document. A major nuclear power plan in Ukraine was temporarily cut off from the electricity grid.

The Zapparisha nuclear plan, occupied by the Russians went offline, causing a blackout in the region, and it 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. There is United 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. I'm Michael Barb. This is Bloomberg, Nathan. Thanks Michael. It's six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg day Break. Just a little more than three and a half hours away now from FED Chair J. Pale's keynote address at the Jackson Hole

Economic Symposium. Ahead of that, we are joined now by David Rosenberg, the president and chief economist of Rosenberg Research and Associates. David, what will we hear from J pal today? Well, I think we're probably going to hear that he's gonna explain what data dependency really means. That took him so long to explain what transitory meant, and then today he will lay bar what data dependency meant. Of course, a term that you brought up at the last death MC

meeting that might have been misconstrued. So I think he's going to basically say that, you know, the battle against inflation has not been one yet in DAEDA, dependency on this regard means more than just one month of relatively denin CPI and course CPI prints that the set's gonna have to see a string of these source of numbers and convinced that we are on the road back towards the two holy grail target. So I think that's what we'll hear more from them about flushing out what data

dependency really means. Is that the right definition of data dependency. Given that the Federal Reserve got transitory inflation apparently wrong. Well, it all depends, uh know, your definition of transitory, because there is no real definition in terms of the time stamp. As it turns out, transitory really meant, you know, sixteen months of accelerating inflation. I think that inflation, the trend

has broken. It's very interesting to me that the New York Fed, really on the eve of the Jackson Hoole Symposium, comes out and says that the supply bottle neck measures have receded to their lowest levels of January. Now, it wasn't just supply measures that caused the inflation, but all the demand stimulus that precipitated the inflation, especially the fiscal and mon terry stimulus, is in the rear view mirror. But the bottom line is that the Fed is embarrassed.

They're ashamed they did miss even the transitory mints sixteen months. Uh, they missed it, and so the clock is gonna rewind the other way. They are going to overdo the tightening as they overdid the stimulus. And the upflom C minutes that came out recently, so very clearly that the Fed is willing to put the economy as a sacrificial lamb in terms of demand destruction to get the inflation down to where they wanted. And I think that's what comes

out of all this. So I think, look, the bottom line is that you know you're asking me about what what what he is gonna say? He's had all his uh f MC brethren come out the biggest doves, whether it's a scary or it's daily or at Evans, never mind Bullard and the rest of them. They're all talking very offishly. So his colleagues on the uplom see, you've already blazed the trail for what's going to be I think a rather hawkish um rhetoric today coming out of

his speech. What's it gonna take then for the to pivot from a hockey's stance to something more devish? What data are they going to be? Depending on? I think they would They have to see a string? Is it three months? Four months, five months, six months? That's sort of a string of of the very low like the old days. Zero point one point to prints not just on the CPI but the core CPI. We know the CPI is going to be contained because of what's happened

on the energy side. Uh. And I think if we get several months of these sorts of numbers, that puts them on hold. Outside of that, look, they're they're putting everything on the economy. All their cards on the table come down to the labor market. Uh. They are were spring at the altar non farm payrolls. Uh. They don't truss the household survey, small sample tends to be volatile. They're looking at the job openings from the JOLT survey.

I think that once you start to see negative prints, if we start to see negative prints and not farm payrolls, the game is over. Uh. So that would be the other data release. They'll cost them to go on hold. Just about thirty seconds left here, David. Does the FED get back to a two percent inflation target or do we need to be looking at a new floor for inflation. I don't see the case. I know everybody says that. Everybody says that service sector pricing is sticky. Uh. You

know the rental measures, the rental measures are imputed. They will ultimately adjust with the lag. But I think that the overall price level is going to be a lot higher. The cost structure is going to be a lot higher. But inflation is a rate of change, it's not a level um. So we do believe that more quickly than what the markets at priced in. That inflation is going to come pretty quickly. Not the price level, but the

rate of change is when it subside very sharply. And that even under Volker, you know, and we have a modern day Volca on our hands right now. Uh certainly came down. I'm not saying the next year, but in the next two years the place is gonna come back down to target. All right. Thanks for this, David, great getting your thoughts ahead of fedshare pwell speech ten am. Wall Street Time. We'll have it live for you here

on Bloomberg Radio. David Rosenberg, President and chief economist at Rosenberg Research and Associates, joining us this morning on Bloomberg Daybreak Bloomberg eleven three oh weather, sunshine, some showers and storms developing this afternoon. We'll get up to near ninety degrees, will be in the oper eighties through the weekend, with a mix of sunning clouds tomorrow and sunshine prevailing on 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 Out and at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow. Futures are following this morning and we go to the first word breaking newsdask for today's morning call. Here's film at Onny Build. Good morning, Hey, good morning, Karen. That's right.

US features are in the red. FU yesterday's strong clothes without futures down ninety eight point says to be strop eighteen and as that futures declined by seventy four. The US ten year old at three point oh seven percent, gold is down eleven oil is in the green, and

bigcoin trading lower by one percent. Hong Kong jumped one point one percent overnight, while your pre markets are in the red this morning, and back in the US on the economic front at a thirty person income and pc E and at ten o'clock, Fits Powell speaks at Jackson Hole after the Bells night work Day reported shares are up eleven percent pre market and the firm holdings is down thirteen percent. In deal news, merch talks to acquire Siegen are said to hit a snag over price and

wrapping things up, Union Pacific was put to neutral. Over at Diowa Live from First Breaking News descom Bill Maloney. Karen, all right, Bill, thank you, and to hear live breaking news over your Bloomberg type squawk on your terminal, I'll ask you a w K and that's a Bloomberg business flash. Here's Michael Barr with more on what's going on around

the world. Karen, thank you very much. By noon, the Justice Department is set to release a heavily redacted affidavit explaining the justification for an FBI search of Donald Trump's Florida 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 mad Speed the Rockies three one. The Red Sox lost the Orioles one Thursday night NFL preseason action. The forty nine 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 journalist analysts more

than a hundred twenty countries. Michael Barr and this is Bloomberg, Karen, Michael, thank you. It is six one on Wall Street and we turned to news and science and technology now at the Bloomberg and j I T STEM Report. It has brought to you buy New Jersey Institute of Technology n j i T makes industry ready engineers and more than twenty fields. If it's engineering, is it n j I T. Learn more at n j I T dot E d U and here's just making news and science, technology, engineering

and math. NASA is aiming to use Boeing Starliner space vehicle for a crude mission to the International Space Station as soon as February. According to the agency, the plant eight day mission would be the star Liner's first with astronauts on board, a major milestone in its development, which has suffered several setbacks. Houdi is joining Formula one with

hopes to bolster its brand. Formula one intends to switch to cars running on synthetic fuel as part of a plan to become carbon neutral by the end of the decade. The car maker will make a decision on which team to partner with by the end of the year. And Afghanistan Central Bank imposed a nationwide ban on cryptocurrencies this month, and a Taliban has arrested several dealers who defined orders

to stop trading digital tokens. According to a senior police official, the crackdown comes after some Afghans turned to crypto to preserve wealth and keep it out of the Taliban's reach. And as a Bloomberg and j A t Stem report, Nathan, all right, Karen, thank you. We are live from the Bloomberg Interactive Brokers studios where it's six fifty 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 touting debt relief and climate wins in a test of his mid term message, a third congressional trip to Taiwan this months during China tensions, and the FBI's Trump search affidavit to be unsealed with redactions. Bloomberg government reporter Emily Wilkins joins US now from our studios in the nation's capital for more on all these stories. Emily.

Looks like the mid term campaign is officially underway now for President Biden. Oh yeah, I mean certainly. Biden has been trying to get out of DC and hit the campaign trail for a while now, but now he's really hoing in on his message now that we're in the final stretch. Um, he's casting the election as yet another battle for democracy. At a rally in Rockhael, Maryland yesterday, he called Republicans semi fascists and really kind of hit home the fact that it's calling a lot of the

candidates extreme. He's also trying to tell a democratic message of just a wide variety of things, um, preventing gun violence, allowing access to abortion, addressing climate change. Here's the thing, though, Nathan Biden does still remain pretty unpopular with the American public. Only of Americans approved of his job performance rating according to US looking up at polls up. That's slightly up

from July, but but overall still pretty low. And the projection is that Republicans are still going to win the House in the November midterms. It's just previously it looked like they were going to win the House by huge margin. Now it seems like that margin might be a little bit smaller. Yeah, it does seem as though the momentum has shifted, particularly after that highly watched race in Hudson Valley,

New York that focused on abortion rights. How are Republicans looking to try to regain some of their earlier momentum when they were focused so much on you know, how rough the economy is right now? So a lot of

the Republicans message still applies. Right Inflation is still at a historic high, there's still high prices in the grocery store, and for rents and mortgages, even though gas prices have come down, And so Republicans can still point to those things and say, hey, look, you know this is Biden's policies that have led us here, and we need someone new. Republicans also have an advantage. Mid Terms tend to be a little bit better for the party that's not currently

in power. But Republicans also have their own struggles here. They have a number of their Senate candidates who are behind in the polls, who have dealt with a number of personal conflicts or have been under criticism for how they run their campaigns. And now you've also got this whole affidavit that's being released today on the search warrant that the FBI used to search the Marrow Trump's Mara

Lago residents. And so there's a lot of factors I think that are up in the air that we're really going to see how they play out in the next several months. But at this point, Democrats are basically looking at as good as they have all year, and they kind of have this new confidence boost that might not eventually let them keep both chambers of Congress, but could

prevent them from facing massive Republican majorities. Since you brought up the Fidavid, let's talk about that now, because we are expecting at least a redacted affidavit from the Moral Lago search to be released sometime this morning. What are you going to be looking for from that, Emily, Yeah, so the federal judge has required that the Justice Department release it around noon or rather later than noon. So

definitely good at keeping an eye out. It's a really good question, Nathan, as far as what you're going to be looking for. Certainly, the big question is why did the Justice Department? What is their investor aation? What documents were they looking for? Is there a larger reason for this and for what they're investigating Trump. And I think we're going to see trying to at least get some

answers from the affidavit, but remember it's been redacted. The Department of Justice wanted to make sure that they weren't putting their entire investigation, which is still under way, into full view, and so they are going to be things that we're just not going to be able to access when this affidavit is released. Certainly, um, a lot of

folks have been following this. There's obviously going to be a lot of analysis from Bloomberg about, you know, what we are and aren't learning, But there's still going to be a lot that's not quite clear because of those redactions that the Justice Department has asked for. And I'm sure you're gonna be looking for political impact as well, because former President Trump has really been trying to capitalize on the Maral Lago searches. He continues to figure out

if and when he's going to announce another run for president. Oh, absolutely, Nathan, I mean this definitely goes into exactly how is going to be shape been up. You really saw the Republican Party come behind Trump and and very much support him after the search warrant was initially executed. But at the same point, there's still a lot of questions about what this could mean for Trump. Is he going to wind

up being charged with something? How is that going to impact his ability to run in So again, just a lot of questions right now. Hopefully there will be some answers at noon today when we do see that redacted affidavit released in our last minute or so here, Emily, let's close out on geopolitics. It seems like Taiwan has been the destination to go to if you're a member of Congress during his resays. Oh yeah, we are now in the third delegation of lawmakers going to Taiwan, after

Speaker Nancy Pelosi's historic trip earlier this month. I mean, honestly, Nathan, Congressional delegations to Taiwan are not exactly rare. A hundred and fifty houses and members have gone to Taiwan in the past decade, according to a Bloomberg analysis. Really Pelosi going though, it really led to a strong response from Beijing. You saw the planes, you saw the missile test, and that momentum has been kept up. You saw Senator Ed

Markey lead a bipartisan to delegation to Taiwan. And now you're seeing Senator Marshall Blackburn, she met on Friday morning with Taiwan President ty See Titan when and it really shows Nathan the bipartisan nature of this, I mean, Blackburn's the Republican marks a Democrat. You really kind of have this, this bipartisan support for Taiwan and this kind of willingness

for lawmakers to go there even though it has aggravated Beijing. Yeah, thanks for this as always, Emily Wilkins of Bloomberg Government giving us all the latest on politics domestically and globally from the nation's capital. And you can read more about all these stories on Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington Bloomberg and

one oh five point seven FM HD two. You'll want to keep it locked as week of continue with on site coverage of the Jackson Whole Symposium that's actually getting

underway once again in just minutes. Here with a special edition of Bloomberg Surveillance Live from Wyoming with Tom Keene, Jonathan Farrell, and Lisa abrama Witz Ahead of Chairman Pal's keynote address in Jackson Hole will have that for you live beginning right around ten am Wall Street time, and ahead of it, lots of FED speakers will be speaking to the surveillance team. So keep it right here for

full coverage of the Jackson Hole event. SMP futures right now down eighteen points, DAL futures down, n NASDAC futures are lower by seventy two points. The tenure treasuries down twelve thirty seconds, the yield three point zero seven percent. For Karen Moscow, I'm Nathan Hager. Have a great Friday. This is Bloomberg