Bloomberg Daybreak: August 29, 2022 - Hour 1 (Radio)

focused as Wall Street braces for Friday's payrolls report. NASA's on Man Artemis one space capsule has expected to blast off to the moon. Plus UN Nuclear Watchdog monitors are on their way to Ukraine's Bower Plant. I'm Michael Barr more Ahead, I'm John Stashtower. In sports, the Meds and the Yankees blost the Jets beat the Giants. Rory mclroy

won the golf in the US Open. Begins today. That's all Strady ahead on Bloomberg Daybreak on Bloomberg eleven Free on New York, Bloomberg nineteen nine 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 App. Good morning, I'm Nathan Hagar and I'm Karen Moscow. US

future is lower this morning, led by technology. Where coming up to find blow one on Wall Street and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, U S and P futures are down forty one points down, futures down two hundred seventy four and NASTACK futures down one hundred sixty three. That's down one point three percent. The docks in Germany's down one and a half percent ten. Your treasury down nineteen

thirty seconds here three point one percent, Nathan, Karen. We are still feeling the effects of a hawk is J. Powell. This morning, Global stocks are at a one month low. The last time we saw the yield on the two year treasury at this level was two thousand seven. This morning slump follows the worst day for US stocks since June thirteen. The major indexes all fell at least three percent,

with the NASTAC plunging almost four percent. The catalyst for the sell off, Chairman Powell signaling interest rates will stay higher for some time. Katrina L senior economist at Moodies Analytics, says the fed shairs comments have broad implications. It makes sense to say that US recession odds have also increased because that lays a sharp focus on trying to bring down inflation is really the priority of the FED at this point, and so as a consequence of that, I mean,

domestic demand just really has to to come down. Katrina L with Moody's Analytics says the Feds also uncomfortable with the current tightness in the labor market. One point to trillion dollars in market value was wiped out on Friday. Well, Nathan, the strong message by j Powell and the Fed last week, as some on Capitol Hill pushing back. Senator Elizabeth Warren says she's worried the Central Bank will tip the US

economy into recession. Do you know what's worth than high prices and a strong economy is high prices and millions of people out of work. I'm very worried that the Fed is going to tip this economy into recession. Senator Elizabeth warrenel CNN she does not, but eve higher interest rates will curb current inflationary pressures well j Pallen. The Fed will have another key economic report to evaluate this week, Karen.

On Friday, we get the August jobs report here with the preview is Bloomberg's Vinny Dell Judaice Economists a US payroll growth moderated after scoring a July gain, and more than a half million technology firms have been trimming payrolls and freezing hiring, but job openings continuous historic KIS. The US unemployment rate is also one of the lowest in decades. More numbers. This month's Conference board consumer confidence in DEX couldn't prove thanks to lower gasoline prices, while i SM

data may show modest factory games. Then Eat Judace Bloomberg Day Break, Danny, thank you the Wall Street Sell office spreading overseas this Monday morning, and we begin our team coverage with Bloomberg's Danny Burger live in London. Good morning, Danny, Good morning Karen. Yea. It seems risk assets have finally gotten the message and from global central bankers that they can't be complacent on inflation and not of course will require more restrictive policy for some time. So stocks that

were perhaps expecting a powerble pivot. It means they sell off for another trading day. US features those are weaker again, but it's also painful. In Europe, we had plenty of ECB speakers over the weekend, from sh Novel to Causacks to ren talking about the need to act forcefully. Despite that that's not giving a lift to the euro. Euro trades below parody and across the globe, bonds are under pressure, selling off. The one spot of relief UK markets, which

are closed for the day for UK Bank holiday. Live in London, I'm Danny Burger, Bloomberg day breaking. That's what counts for relief here, Thank you, Danny. Stocks fell in Asia overnight as well. Japan's NIEK led declines with a drop of more than two and a half percent. We get the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliet,

Good morning Nathan and Karen. The m s c I Asia Pacific Index slumped as much as two point three percent, the most since June, with tech, financials and industrials the worst performing. Sick is Key equity gauges in Japan and

Taiwan led regional losses sliding close to three percent. H The p BOS said the on show you unfit stronger for a fourth session as the Off Show slid through six point nine to the dollar for the first time in two years, and South Korea is One fell the most in eleven weeks to hold it its lowest level since April two thousand and nine. In Singapore, Juliette Sale Bloomber Daybreak, Actually I thank you a while Staying in Asia,

economists are turning more bearish on China. According to Bloomberg's latest quarterly survey, China's economy is now projected to grow just three and a half percent this year. That's down from a previous forecast at three point nine percent. Economisty lingering risks as turmoil and China's property market and COVID outbreaks persist. And one other note out of Asia this morning, Karen.

Despite China and the US reaching a preliminary deal to resolve a standoff over audits, Goldman Sachs says markets are still pricing in a fifty percent chance of Chinese companies being delisted from US exchanges. Goldman says the risk of delisting has come down, but more still needs to be

done as execution risk remains well Nathan. While there is uncertainty about the future of Chinese stocks, in the US, mean stocks are here to stay, according to our latest survey we get the details from Bloomberg's Jeff Bellinger, Wall Street says stocks like Game Stop, AMC Entertainment, and bed Beth and Beyond are here to stay. Nearly two thirds of the more than five hundred respondents in the latest M Live Pulse survey expect some version of the meme

stock mania to stick around. Speculating in meme stocks has been painful this year. A basket of thirty seven retail trader favorites tracked by Bloomberg is down nearly forty percent in twenty two. The M Live Pulse survey found that while the meme stock phenomenon is likely to stick around, sixty nine percent said it is unlikely to see the trading volumes that did during its January twenty twenty one high, nor are such stocks seen as a good bet for

the remainder of the year. Jeff Bellinger, Bloomberg debreak all right, Jeff, and we're watching Bitcoin follows stocks lower this morning. The digital tokens trading below twenty thousand is concerns about FED policy way on seniment, But for this weekend, Bitcoin hadn't been below twenty thousand since July fourteenth, That even crossed above twenty five thousand earlier this month. Right now, bitcoins trading at nineteen eight hundred dollars. Futures are moving lower

as well. And straight ahead, we have your latest local headlines sand a check of sports. This is Bloomberg five oh seven on Wall Street where seventy five degrees in Central Park westbound cross Bronx Expressway is closed between White Plains Road and Bronx Harbord Parkway for an accident investigation. We'll tell you more in Traffic. First, Michael Barr has more on what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan.

A fuel leak interrupted NASA's launch countdown for its New Moon rocket early this morning, reappearing in the same place that saw Sea Page during a dress rehearsal back in the spring. Launch controllers halted the tanking operation, which already was running an hour late because of thunderstorms off shore. As for the excitement of out the mission, Taylor Leonard helped build part of the moon rocket that will eventually

put Americans back on the Moon. I'm very pumped. So I was actually a part of the test team that tested the functionality of the racketed avionics. So it's super exciting. Um like seeing your work right here, you know, it's pretty cool, Taylor Leonard. The plan is for O'Rion, with three test dummies on board, to loop around the Moon

and come back to Earth. The head of the International Atomic Energy Agency says that the UN Nuclear watch dogs long awaited expert mission to the power plan in Ukraine is now on its way. Russia and Ukraine have traded claims of strikes at or near the plan in recent days, intensifying figures that the fighting could cause a massive radiation leak. It was a violent weekend in New York City after

more than a dozen people was shot, several fatally. That includes a shooting on the boarder walk on Coney Island that left one person dead and four others hurt. Police in Bend, Oregon and confirmed three people are dead following a shooting at the grocery store. The meal shooter killed two people at a Costco officers then entered the store and found the suspected shooter dead. Bend Police Chief Mike Krantz, as the suspect was armed with an a R fifteen

style rifle. We have officers from every agency in central Oregon as well as the FBI, Ben Fire and Rescue and other agencies on scene and assistant. We are very preship of this home. Ben Police Chief Mike Rantz. Senate Majority Leader Chuck Schumer welcome President Joe Biden's federal Student Loan Forgiveness plan. Schumer urged loan processors to prepare for

a wave of inquiries about the program. All on all of the loan processors to be at the ready for the wave of calls that's starting to come in and let students know how they apply and what their rights are. Senator Schumer of New York says college used to be a ladder up, but student debt has become an anchor around the ankles of our students. 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. Michael are and this is Bloomberg Naked. Thanks Michael, throwing up to five ten on Wall Street. Time for the Bloomberg Sports up take Good morning, John Sesshire, Good morning. They depended when the Yankees were slumping, going three and fourteen, they weren't hitting, and they won five in a row. With those offensive woes resurfaced in Oakland, only one hit and an eleven inning lost Saturday, and then only four singles yesterday and the eight's won four

to one. The Yanks moved down to Anaheim. They'll face the Angels tonight. The Mets man is only three hits, all of them singles against Herman Marquez and two relievers. Colorado scored in the seventh thirty off Max Scherzer and the Rockies won, wondering up into salvage the game in the series. Atlanta lost last night in St. Louis, the

Mets remaining three games ahead. The annual Jets Giants preseason game not decided until the final minute that Chris Traveler touchdown passed with twenty two seconds left at Calvin Jackson for a thirty one seven back and forth Jets victory, second time in three preseason games that those two hooked up for a game winning TV in the final minute. The Jets went three and oh in the preseason, the Giant for two and one. They did not use Daniel Jones.

They started to Eyrod Taylor and then he heard his back. Not believed to be a serious Inndon. The golf season ended in Atlanta with a big comeback by Rory McElroy. Back on Thursday, he was ten shots behind Scottie Scheffery, trailed by six when the final round began. He won by one, really giving myself much of a challenge stand

off and the fourth rowned. I thought, you know, silver lining was I was playing in the last groups so I could at least keep an eye on what he was doing if if things didn't quite work out for him, and um, you know, thankfully I was in that last group because you know, I was able to put some pressure on him early on third Tour Championship victory. He wins eighteen million dollars. US Open begins today. Serena Williams

plays tonight. John Dash Award, all right, John, thank you to sell off continues on Wall Street and around the world. SMP futures down thirty seven points down, futures down two hundred fifty eight. Nastack futures leading the declines, down one hundred fifty points. We check in next with Dennis Gartman, the former publisher of The Gardener Letter. This is Bloomberg Bloomberg eleven three oh weather morning Clouds Littles are mostly sunny today with highs in the upper eighties. Chance relate.

They shower tomorrow, otherwise mostly sunny, uper eighties again mostly sunny. Opper eight is on Wednesday right now seventy five in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, at the Bloomberg Business out and at Bloomberg Quicktape is a Bloomberg Business Flash.

And I'm Karen Moscow. Federal Reserve charge your own Powell's signal of higher for longer interest rates coursing through markets, sinking stocks and equity futures, and lifting two year treasury yields to levels less seen in two thousand seven. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, MUST and P futures are down about thirty seven points down, futures down two fifty six, and as day futures down one hundred forty six the

decks in Germany's down one point four percent. Ten year treasury down nineteen thirty seconds, you know, three point one one percent they yield on the two year three point four six percent. Ninemex screwed oils up one percent, or ninety two cents at ninety three dollars, ninety eight cents of barrel comes goal, down nine tenths per cent, or fifteen dollars twenty cents a seventeen thirty four sixty an ounce.

The euro is at point nine three against the dollar, British bound one point one six six six and again one thirty eight point six four. And look at a bitcoin this morning. It is down nine tenths per cent in nineteen thousand, eight hundred dollars. And that's a bloomberg business flash. Now here's Michael Barr with Moore on what's going on around the world. Michael, good morning, Good morning, Karen. The Artemius Moon rocket launch is proceeding towards a morning

lift off in the Kennedy Space Center in Florida. The goal is for the Orion capsule, with three test dummies on board, to loop around the Moon and come back to Earth. Top intelligence officials are working with the Justice Departments to conduct a quote risk assessment to see a former President Trump's handling of classified documents found that his more Lago home compromise national security. In baseball, the Yankees

lost to the A's four one. The Mets lost along with the Red Sox, Orioles and Giants the Nationals one. In the final preseason NFL game, the Jets beat the Giants seven. Dennis The US Open begins today. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts, are more than a hundred twenty countries. Michael Barr and

this is Bloomberg. Nathan all right, Michael, thank you. It's five nineteen on Wall Street Life from the Bloomberg Interactive Broker Studios. This is Bloomberg daybreaking. When markets open on Wall Street this morning, we could see even more losses on the back of Chairman Palace comments at Jackson Hall ahead of that. We're joined by Dennis Gartman, the former publisher of the Gartment Letter, now chairman of the University

of Akront Endowment Investment Committee. Dennis Risk Investors have been running for the hills. Since Chairman Powell's are marks at the mountains of Jackson Hole, Wyoming. How much further do you think this selloff has to go? How maybe it

goes a lot lower. I've been running for the hills since December thirty one to last year as the chairman of the University of Acranson Downman, I actually moved with hard to get the other committee members to move twelve of our portfolio out of equities on December thirty one, and we did. Last February, we actually moved three percent of our portfolio out of stocks into gold two hedge against what I thought was going to be a ratcheting

up of inflation. And clearly Chairman Powell was extraordinarily sacristanc extraordinarily concise, extraordinarily straightforward with his comments on Friday concerning inflation. I think stock prices go a lot lower from here. I think yields go at the two year go a lot higher from here. I think we're in for problems. So that's going to last for a quite some period

of time. And if I've learned anything in the fifty years nearly fifty years of being involved in the markets, once the FED begins to age its policy, and the Fed changes policy six months ago from the easy monetary policy the tightening policy. It usually lasts not weeks, not months, but several years. So I think we're gonna see higher rates for a long period of time, and once they get beyond four percent in the overnight Said funds rate, we may stay there for a year or two. So

be careful, be very careful. In a bear market. Here see who loses the least amount of money will be the winner, and thus far the University of Akron has lost a lot less than other endowments. In my own account, I'm basically neutral to slightly bearish for the stock market, so I think we go a lot lower. All I can urge, Just be careful out there. Things could get a lot worse before they get any any better, maybe a long period of time before we see the ted

pivot on. It's the monetary policies, and it's going to take to the overnight Fed funds rate seventy five basis points higher in in September and at least a hundred fifty basis points higher before the end of the year. Interesting that you think that the Fed funds rate stays around four percent for a year or longer. So you don't think that this week, this week's payrolls report for August is going to have any impact on what the

FED might do from here on out. It's going to be a very strong UH employment number, probably two hundred fifty three hundred thousand in not farm payrolls. But I think the FED is already looking past that. I think the FED has no choice but to look past that. I think it has to at the same time begin the policy which had said I was going to do, and it thus far hasn't, of reducing the size of

its balance sheet. UH. The the assets on hand are still extraordinary high, almost over nine trillion dollars compared to nine billion a decade ago. They have to take sixty five They have to take billion dollars out of the out of their assets on the every month from here on for at least two to three years, and thus

far they haven't been doing quite that. So there there had been some UH monetary policy changes, a lessening of monetary policy changes that I think have to become far more severe over the course of the next several years. So again, be very careful you in the past that the unwinded. The balance sheet is going to be more important for markets than the increases in interest rates. What do you think is going to happen when it comes

to the balance sheet at the Fed's next meeting next month. Actually, thus far, I said that all they're gonna do is allowing assets to roll off, to mature off, to to simply two year no speak come over, and I said funds or hates in other words. But now I think then I actually turned to the point of actually beginning to sell from their from their balance sheet. We'll see if that if that happens, I hope they don't because

that would even be more severe. But they said that they're gonna take nine billion dollars out of their balance sheet on a monthly basis. We'll see if they continue to do so. They have to do so over time, they have to reduce the size of their assets, and I think that that's far more severe than actually taking the overnight paid funds right beyond four percent. So pay attention to what they're doing when they're in their balance sheet, and thus far they have not been as aggressive as

I think they should be. We'll see if they actually turn into selling from their balance sheet, which, as I said earlier, I hope they don't. I hope they just the things the mature offllon dollars a month, but they're nine trillion dollars is a lot when you're only taking nine billion out each month. Dennis Government with us for the hour here on Bloomberg Daybreak, the former publisher of the Gvernment Letter, of course, now chairman of the University

of Akront Endowment Investment Committee. Will get more of Dennis's thoughts throughout this hour on the path for federal reserve policy and where risk assets could go from here. With the FED making it pretty clear at Jackson Hole last week that it is going to stay aggressive against inflation, keeping rates higher for longer, perhaps than markets had been

pricing in. And as we look at futures this morning, we are seeing the selling continue, with SMP futures down thirty eight points down, futures down two hundred sixty six, Nasdaq futures are lower by a hundred fifty two points, the tenure Treasury down nineteen thirty seconds, the three point one percent, and the yield on the two year at a fifteen year high at three point four six per cent.

You are our listening to Bloomberg day Break Bloomberg eleven three oh weather turning mostly sunny today with HIGs in the upper eighties. Can see a late day shower tomorrow upper eighties. Some thunderstorms tomorrow night possible. By Wednesday will be mostly sunny again with highs and the uper eighties.

Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg NOME sixty to the Country, Sirius XM to the one nine team, and around the globe the Bloomberg Business apt and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karin Moscow. We are just about four hours away from

the open of US trading. Let's catch you up to day on the news. You need to know what this shower was. Still feeling the impact of a hawk ish fed this morning. US futures are falling in global stocks. You're at a one month low, not after Friday's major drop, which was the worst day for US stocks in student thirteenth. The catalyst for the sell off JP Powell signaling that interest rates will stay higher for some time. Katrina L Senior economist and Moody says the fed chairs comments have

broad implications. The speech really brought home the fact that the Feed is taking no prisoners when it comes to wanting to buy inflation and sustainably bring it back down as a consequence of a recession. Results of that, then I mean, so be it. Katrina L with Moody says the Fed is also uncomfortable with the current tight labor market. Well. Meantime, Karen one of All Street's biggest bear, says weaker earnings, not higher rates, as the largest threat to US stocks.

Morgan Stanley's Michael Wilson says the path for stocks will be determined by earnings and that's where investors focus should be. He has repeatedly warned the recent equity rally will be temporary due to tighter monetary policy and the outlook for corporate profits. Funnythan the Well Streets sell off is also spreading overseas. European stocks are extending last week's drop, with most indicries down more than one percent, and in Asia over night, Japan's NIK led the clients with the drop

of more than two and a half percent. And economists are turning more barish about China's economy here and that's due to risks in its property market and potential COVID lockdowns. According to Bloomberg's latest quarterly survey, China's economy is now projected to grow just three and a half percent this year. Tyron Cam, had of China property at Fitch rating, says defaults could cause even more problems. What we really need is that the government to come in in the bigger way.

They also are now showing that they want to rely on market based mechanism. They're not trying to battle the sector at all cost. That remains the problems that we were still monitoring him. Tyrn Cam with Fitch rating says he still thinks China is fully committed to stabilizing its property sector. But back here in the US, Nathan Meme stocks are here to stay. That's according to nearly two thirds of them were than five hundred respondents in our

latest m Live Pulse survey. Respondents expect some version of the meme stock menia to stick around even if the outlook for stocks remains the leak. And we're seeing bitcoin follow stocks lower this morning, Karen trading below twenty thousand, adding to losses from last week. It's the first time Bitcoin slump below twenty k since mid July. And futures are also slumping. S and P futures down about thirty eight points down, futures down two d and nastack futures

down one hundred forty nine. Straight ahead your latest local headlines plus the check of sports, and this is Bloomberg. Thanks Hearing five thirty three on Wall Street, seventy five degrees in Central Park still got the closure westbound cross Bronx between White Plains Road and the Bronx Server park Way. Michael Bars here with what else is going on in New York and around the world. Michael, thank you very much.

Nathan Nassey is dealing with a fuel leak as it prepares its new Moon rocket for liftoff on its first test flight at Florida's Kennedy's Bay Center. No one inside the Orion capsule, just three test dummies. At least one hundred thousand people are expected to watch on the beaches as the powerful rocket lifts off, including Taylor Leonard. She helped build part of that Moon rocket and will eventually put Americans back on the Moon. I'm really not sure

what to expect. I'm kind of anticipating in myself. UM, but I think it's just gonna be a lot of energy, a lot of people. Um just really excited about the space program. Taylor Leonard was part of the team that tested the functionality of the rocket. The head of the International Atomic Energy Agency says that the UN Nuclear watch dogs long awaited expert mission to the power plant in

Ukraine is now on its way. Russia and Ukraine have traded claims of strikes and are near the plan in recent days, intensifying fears that the fighting could cause a massive radiation leak. Ukrainian for Minister to meetro Kuliba. We should all be united in demanding one thing, the withdrawal of Russia from the opporigin nuclear power land. Foreign Minister Kulbo was visiting Swedish leaders in Stockholm today. The FBI is joining the investigation into a deadly shooting at a

supermarket in Bend, Oregon. Then police Chief Mike Rantz has a gunman arm with an a R fifteen style rifle killed at least two people inside the supermarket last night. Our hearts got to the victims and the families and this incident, and we know that this is a frightening thing for our community and something that we would never want to happen in our city. Chief Mike Krantz says the suspected gunman was found dead at the scene when

officers arrived. Detroit Police say a man suspected of randomly shooting four people, three fatally, on the city's West Sign has been arrested. It happened during a two and a half hour period yesterday. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts more than a hundred twenty countries. Michael barn this is Bloomberg, Nathan. Thanks Michael on Wall Street time for the Bloomberg Sports Update with

John Show. Thanks to Nathan. Mets and Yankees yesterday combined for only one run, only seven hits, all of them singles. So the Yankees second game in a row where they failed ahead a four one loss in Oakland, so just a split of the four game series. Aaron judge yesterday over four three strike ass Tampa Bay one in Boston, the Razors seven and a half games behind the Yanks, Mets Stilly, the Braves by three is Atlanta lost in St. Louis. The Mets loss of the Rockies. Wondering up and can't

play Max Jerzer. He struck out eleven but beaten by Colorado's hairman Marquez. Mets are off tonight and then the Dodgers come to town. L A. Fifty games over five hundred, Jets and Giants tied four different times. The Jets scored in the final minute and wont seven for a three and oh. Preseason Jets used three quarterbacks. Joe Flacco through an early pick six, it was Chris Streveler who, through

the game winning TV passed to Calvin Jackson. Those two had hooked up for a game winning the finalment A two weeks ago. Giants did not use Daniel Jones, and then Tyrod Taylor heard his fact not believed to be a serious injury. The third stringer Davis Webb came in. He went thirty eight what I went for. Roy mcilroys had some disappointments in majors, but he's now won the Torch Championship three times in Atlanta. He had to dig

out of a big hole. Credible day, Incredible week, you know, four over through two holes, attend shot side of the league at that point to call my way back and end up winning the winning the tournament. Um, incredible, just just a real um. You're really proud of my resilience and one the par one by one one eighteen million dollars. Will tonight be the last time we see Serena Williams. It's your first round match at the US Open and

that's her final tournament. John stau Bloomberg Sports Nathan Well, thank you, John, five thirty seven on Wall Street time for the Tri State Business Report. Here's Bloomberg's Corey. The a ram Co Team Series women's golf event, which is separate from that live tour that upended the PG eight Tour, will be held at Trump Links at Ferry Point in the Bronx in October. The course is managed by former

President Donald Trump's family business. Under New Jersey's Fair Chance and Housing Act, housing providers are prohibited from asking about an applicant's criminal history on an application form or in an interview before making a conditional offer of housing. The Division on Civil Rights in the state Attorney General's Office has issued thirty violation notices to housing providers around the

state for allegedly contravening the law. Lichfield County, Connecticut School is the second most expensive high school in the country. That's according to personal finance website Go Banking Raids dot com says one year's tuition at Kent School and Kent will set you back about seventy thousand dollars. That your Bloomberg Trying State Business Report. I'm d Corey, Thanks, said five thirty eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to

Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. Steve photos Can on ten Wins in New York, We're talking about how technology is helping more people become landlords far away from home. Um Corney Donahoe on KF A B and Omaha corn is on track to harvest its smallest crop in three years. I'm Stephen Corroll and Bloomberg DAB Digital Radio in London.

We've been reporting on the continued market sell off as investors brace for rates to remain empire for longer. I'm Lisa Matteo and on w b Z in Boston. I'll be reporting on why you may not have to wait as long for that new electric vehicle. I'm in Corey, on w o AI and San Antonio. I'm reporting TIFFs streets. Employees have ended their average the union. I've those are some of the stories are twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world.

It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. If the COVID nineteen pandemic has shown anything it's that public health emergencies required two things. If fishing see and clear communication. When it comes to monkeypox, the u S response has fallen short on both counts.

The Biden administration has been too slow to procure and distribute vaccines and too muddled in its outreach on the issue. Underlying all its missteps has been a lack of leadership, rather than accept responsibility, health and human Services Secretary Javier Basra has tried to deflect blame. It's fair to say that the past few years have presented public health officials with unprecedented challenges, but that's no excuse for repeating mistakes

and failing to learn obvious lessons. President Joe Biden needs to demand better. 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. Listen for Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at O P I n go.

SMP futures are now down one percent to drop a forty one point, Style futures down two eighty nine points. NASTACK futures leading the declines, down one one hundred sixty point drop the ten. Your treasury is down y seconds, you'll three point one one percent. Dennis Gartman returns next, the former publisher of the Gartman Letter. On Bloomberg Daybreak Bloomberg eleven three oh Weather turning mostly sunny today with highs in the upper eighties, chance for a late day

shower tomorrow, otherwise mostly sunny. Upper eighties could have some evening thunderstorms tomorrow, turning mostly sunny again on Wednesday. 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. Feed a reserve charge around Powell's signal of higher for longer interest rates, coursing through markets, sinking stocks and equity futures, and lifting two year treasury yields to levels last seen in two thousand seven. And we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, it's in p futures are down forty three points down, futures down three hundred and nasdack futures down one hundred

sixty four. The decks in Germany is down one point six percent, the ten year treasury down nineteen thirty seconds, yeld three point one one percent. They yield on the two year three point four six percent. Nine mex screwed oil is up three quarters of a percent, up sixty seven cents at ninety three dollars seventy three cents of barrel. Comex school there is down one percent or sixteen dollars

eighty cents at seventeen thirty three and ounce. The euro is at pot four against the dollar British found one point one six eight four and the yen at one thirty eight points six zero. And looking at bitcoin this morning down nine ten percent at nineteen thousand, eight hundred dollars As a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen,

thank you very much. A federal judge. We'll hear arguments on Thursday about possibly appointing an outsider to look at the classified documents that ex President Trump claims are covered under executive privilege. Separately, Intelligence agency specialists are looking at possible national security risks involved in Trump's taking and handling

of classified material. US Navy warships transit it through the time the time on straight for the first time since our Speaker Nancy Pelosi's visit to the self ruled island, testing times between Washington and Beijing. In baseball, the Yankees lost to the A's four one the Mats lost along with the Red Sox, Orioles and Giants. The Nationals one in the final preseason NFL game, the Jets beat the

Giants and Dennis The US Open begins today. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. Michael bar this is Bloomberg Naked. Okay, Michael, Thanks, It's five forty nine on Wall Street Live from the

Bloomberg Interactive Broker Studios. This is a Bloomberg Daybreak and Dennis Artment is back with us now, former publisher of the Gartment Letter, now chairman of the University of acron Endowment Investment Committee. Dennis, I want to pick up on a call you made earlier this hour that the FED might have to keep its funds rate at four percent for a year or longer. I'm curious what makes you think the Fed does need to keep rates at that

level for that long time. It needs to because it has not changed its balance sheets sufficiently yet, and it's told us that it shall, and it hasn't moved enough to to to surprise me or to suffice. So I think the FED has no choice but to can continue to fight the inflation that it itself has created. And if I've learned anything in the almost fifty years of being in the markets, once the FED begins to change its monetary policy, he usually embarks upon that new policy

for several years, not months, not weeks, but years. So historically that's the tendency. That's been the trend that's been the history of the FED over the past several decades, and I've seen no reason to think they're going to change. Inflation is now uh well established here in the United States, it's well established internationally. It's a problem that I think all central banks are facing, and I think it's something that has to be dealt with over a protracted period

of time. So historically, once they change policy, they changed for several years, not months, not weeks, and I think we have to understand the history. Now we do have have started to see signs of inflation easing a bit, meant maybe not necessarily in the core, but in food and energy prices. We've started to see some of the pressure ease a bit. Is that something that could move the Fed? Well, we've seen wheat prices fall from thirteen

dollars a bushel down to eight dollars a bushel. We've seen corn prices fall almost in the course of the last over weeks. But I think food prices are going to go back higher. We've had drought, We've had some rain over the weekend, which is causing a little bit of weakness in the wheat market today. But on balance, I think wheat, corn, soybean prices are gonna are going to head higher again, probably two new highs, because drought has been a very severe problem and just a little

bit of rain has not resolved that. And it's problematic over in European we producing and grain producing regions. The problems in Russia, the problems in Ukraine, the problems in France for their planting of their winter wheat crop, which begins in about two weeks. Drought has been severe problems in all of those areas. Those are major exporters of wheat to the world, and I think that problem is

not going to go away. So I think that the we've had a beneficial decline in grain prices over the course the past two months, I think that's about run its course, and I think grain prices go a lot higher, So inflation coming from agriculture is going to be I think, far more severe than people have anticipated. But those aren't the kinds of pressures that the FED or any other central bank can have much of an impact on. Are they now that they don't have much of an impact

at all? It's all the weather circumstance, but the fact that the FED has been as aggressive as it has been over the course of the past decade and raising its balance sheet, and as as we all know or should have learned in school, inflation is always an everywhere a monetary phenomenon. In the monetary aggregates continue to be the assets of the FED continue to be extraordinarily high, and they have not begun the process of very substantively

of reducing those assets. So I'm far more fearful of the fact that the Fed's assets are much higher than I expected, and I think it's far more severe than the fact that they're gonna be raising the overnight did funds right past four percent by the end of the year. Are you concerned that the tightening of monetary policy leads to a recession. I think we're already intercession. I think that the classic definition is two consecutive quarters of negative

GDP growth. We've already had that. I think we're going to be in recession. I think the numbers will start to be substantively worse as we get to the course of the year. But I'm of the belief that we're already in a a defined recession. It's not severe. I don't think it will be as nearly as severe as we went through in two thousand seven, eight and nine, but I think GDP growth will be lower for the next several quarters. Only about thirty seconds left here, Dennis,

But what's the bigger risk for markets? Rising interest rates or a ramp up in the balance She runoff. Hey, I think the fact that the SAID may in fact begin to sell from its assets rather than just allowing them to mature office a far more severe circumstance. That act that the FET has allowed the balance sheet to get to nine trillion dollars up from nine hundred billion dollars a decade ago, is inflationary. The fact that the FETs had been calling inflation transitory, the FET was creating

its own inflation. That's the real problem. So it'll be a long period of time that they have to reduce the size of the balance sheet. That's the fuel that has sponsored the bull market and equities, and that fuel is being taken away. Thanks, as always for your thoughts. Then it's really appreciate it that Escarpment chairman of the Endowment endow an investment committee at the University of acron And of course the former publisher of the Gartment Letter Karen. Sorry, Nathan,

thank you. It's fifty three on Wall Street. Time for the Bloomberg's Law Report. Let's get to the legal stories we are watching this morning. From Bloomberg's Jeff Billinger. A federal appeals court ruled that housing regulators stayed within the legal and constitutional limits of their authority when they banned

smoking in public housing projects that received federal funding. The Tenth Circuit rule that long haul truckers released their trucks from Pathway Leasing were independent contractors employee subject to minimum wage requirements. The Equal Employment Opportunity Commission says Lone Star Ambulance of Texas will pay ninety dollars to subtle a sexual harassment and retaliation lawsuit. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis, and

Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. All right, Jeff, thank you. Now another legal story we're watching. According to a Senator report, rich Americans are hiding vast sums from the I R S by exploiting a loophole and a law designed to crack down an offshore tax evasion. For more on this, Bloomberg's Lydia Wheeler and Greg Store spoke with Bloomberg News reporter Neil Weinberg. Can you give us a sense of how widely this loopholes being used?

There aren't clear numbers on exactly how much money is involved, but the report points out that eight jurisdictions it looked at h and these are places like the kyman Ila, Saint Kitts, and Nevis, Guernsey. These are well known offshore tax havens. And of these eight, there were a total of a hundred and twenty eight thousand of these entities.

So it seems to be a very potentially large scale problem, shall we say, Neil, you're writing your story about this that the report grew out of an investigation of Robert Brackman, a billionaire software developer. Tell us a bit about him and about his case, sure, he was a very low profile software mobil. He made his original fortune selling software to automobile dealerships in the US and elsewhere so they

could run their operations. He then became the original investor in vis To Equity Partners, of private equity firm which was launched by Robert Smith. Together they came up with a structure in which the profits, the income from the investments in Vist Equity Partners would remain off shore, and Vista was hugely successful has expanded greatly, investing in mostly

enterprise software companies, which is Brockman's specialty. And Robert Brockman was indicted in on allegations according to the Justice Department, that he hid over two billion dollars in income, mostly earned at Vista Equity Partners UH and that according to the Widen report, the report that just came out, he was using this loophole we're referring to where he sets up off shore partnerships and then turns them into financial institutions which don't have to be reported back to the

I r S. And as Bloomberg News reporter Neil Weinberg speaking at the Bloomberg's Lydio Wheeler and Greg Store. Catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law podcast or downloading the show have Bloomberg dot Com Slade 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 again. Future is lower this morning, SMP futures down thirty seven points down, futures down two hundred fifty eight and NASTAG futures down one hundred forty five. The ten year treasury down nineteen thirty seconds, yield three

point one one per cent. They yield on the two year three point four six percent, and nine mex screwed oil is up one percent or eighty eight cents at ninety three dollars ninety four cents and barrel and we're watching Bitcoin, which is down seven ten percent at nineteen thousand, eight hundred forty dollars still ahead. On Bloomberg, Dave Reak, we have a check on the business headlines and all the news you need to start your day. And this is Bloomberg